LGC Selected Sections PDF

Section 6. Authority to Create Local Government Units. - A local government unit may be created, divided, merged, abolished, or its boundaries substantially altered either by law enacted by Congress in the case of a province, city, municipality, or any other political subdivision, or by ordinance passed by the sangguniang panlalawigan or sangguniang panlungsod concerned in the case of a barangay located within its territorial jurisdiction, subject to such limitations and requirements prescribed in this Code. Section 7. Creation and Conversion. - As a general rule, the creation of a local government unit or its conversion from one level to another level shall be based on veriﬁable indicators of viability and projected capacity to provide services, to wit: (a) Income. - It must be suCicient, based on acceptable standards, to provide for all essential government facilities and services and special functions commensurate with the size of its population, as expected of the local government unit concerned; (b) Population. - It shall be determined as the total number of inhabitants within the territorial jurisdiction of the local government unit concerned; and (c) Land Area. - It must be contiguous, unless it comprises two or more islands or is separated by a local government unit independent of the others; properly identiﬁed by metes and bounds with technical descriptions; and suCicient to provide for such basic services and facilities to meet the requirements of its populace. Compliance with the foregoing indicators shall be attested to by the Department of Finance (DOF), the National Statistics OCice (NSO), and the Lands Management Bureau (LMB) of the Department of Environment and Natural Resources (DENR). Section 8. Division and Merger. - Division and merger of existing local government units shall comply with the same requirements herein prescribed for their creation: Provided, however, That such division shall not reduce the income, population, or land area of the local government unit or units concerned to less than the minimum requirements prescribed in this Code: Provided, further, That the income classiﬁcation of the original local government unit or units shall not fall below its current classiﬁcation prior to such division. The income classiﬁcation of local government units shall be updated within six (6) months from the eCectivity of this Code to reﬂect the changes in their ﬁnancial position resulting from the increased revenues as provided herein. Section 9. Abolition of Local Government Units. - A local government unit may be abolished when its income, population, or land area has been irreversibly reduced to less than the minimum standards prescribed for its creation under Book III of this Code, as certiﬁed by the national agencies mentioned in Section 7 hereof to Congress or to the sangguniang concerned, as the case may be. The law or ordinance abolishing a local government unit shall specify the province, city, municipality, or barangay with which the local government unit sought to be abolished will be incorporated or merged. Section 10. Plebiscite Requirement. - No creation, division, merger, abolition, or substantial alteration of boundaries of local government units shall take eCect unless approved by a majority of the votes cast in a plebiscite called for the purpose in the political unit or units directly aCected. Said plebiscite shall be conducted by the Commission on Elections (COMELEC) within one hundred twenty (120) days from the date of eCectivity of the law or ordinance eCecting such action, unless said law or ordinance ﬁxes another date. Section 11. Selection and Transfer of Local Government Site, ODices and Facilities. - (a) The law or ordinance creating or merging local government units shall specify the seat of government from where governmental and corporate services shall be delivered. In selecting said site, factors relating to geographical centrality, accessibility, availability of transportation and communication facilities, drainage and sanitation, development and economic progress, and other relevant considerations shall be taken into account. (b) When conditions and developments in the local government unit concerned have signiﬁcantly changed subsequent to the establishment of the seat of government, its sanggunian may, after public hearing and by a vote of two-thirds (2/3) of all its members, transfer the same to a site better suited to its needs. Provided, however, That no such transfer shall be made outside the territorial boundaries of the local government unit concerned. (c) The old site, together with the improvements thereon, may be disposed of by the sale or lease or converted to such other use as the sangguniang concerned may deem beneﬁcial to the local government unit concerned and its inhabitants. (d) Local government oCices and facilities shall not be transferred, relocated, or converted to other uses unless public hearings are ﬁrst conducted for the purpose and the concurrence of the majority of all the members of the sanggunian concerned is obtained. Section 13. Naming of Local Government Units and Public Places, Streets and Structures. - (a) The sangguniang panlalawigan may, in consultation with the Philippine Historical Commission (PHC), change the name of the following within its territorial jurisdiction: 1. Component cities and municipalities, upon the recommendation of the sanggunian concerned; 2. Provincial roads, avenues, boulevards, thoroughfares, and bridges; 3. Public vocational or technical schools and other post-secondary and tertiary schools; 4. Provincial hospitals, health centers, and other health facilities; and 5. Any other public place or building owned by the provincial government. (b) The sanggunian of highly urbanized cities and of component cities whose charters prohibit their voters from voting for provincial elective oCicials, hereinafter referred to in this Code as independent component cities, may, in consultation with the Philippine Historical Commission, change the name of the following within its territorial jurisdiction: 1. City barangays, upon the recommendation of the sangguniang barangay concerned; 2. City roads, avenues, boulevards, thoroughfares, and bridges; 3. Public elementary, secondary and vocational or technical schools, community colleges and non- chartered colleges; 4. City hospitals, health centers and other health facilities; and 5. Any other public place or building owned by the city government. (c) The sanggunians of component cities and municipalities may, in consultation with the Philippine Historical Commission, change the name of the following within its territorial jurisdiction: 1. City and municipal barangays, upon recommendation of the sangguniang barangay concerned; 2. City, municipal and barangay roads, avenues, boulevards, thoroughfares, and bridges; 3. City and municipal public elementary, secondary and vocational or technical schools, post- secondary and other tertiary schools; 4. City and municipal hospitals, health centers and other health facilities; and 5. Any other public place or building owned by the municipal government. (d) None of the foregoing local government units, institutions, places, or buildings shall be named after a living person, nor may a change of name be made unless for a justiﬁable reason and, in any case, not oftener than once every ten (10) years. The name of a local government unit or a public place, street or structure with historical, cultural, or ethnic signiﬁcance shall not be changed, unless by a unanimous vote of the sanggunian concerned and in consultation with the PHC. (e) A change of name of a public school shall be made only upon the recommendation of the local school board concerned. (f) A change of name of public hospitals, health centers, and other health facilities shall be made only upon the recommendation of the local health board concerned. (g) The change of name of any local government unit shall be eCective only upon ratiﬁcation in a plebiscite conducted for the purpose in the political unit directly aCected. (h) In any change of name, the OCice of the President, the representative of the legislative district concerned, and the Bureau of Posts shall be notiﬁed. Section 14. Beginning of Corporate Existence. - When a new local government unit is created, its corporate existence shall commence upon the election and qualiﬁcation of its chief executive and a majority of the members of its sanggunian, unless some other time is ﬁxed therefor by the law or ordinance creating it. Section 15. Political and Corporate Nature of Local Government Units. - Every local government unit created or recognized under this Code is a body politic and corporate endowed with powers to be exercised by it in conformity with law. As such, it shall exercise powers as a political subdivision of the national government and as a corporate entity representing the inhabitants of its territory. Section 16. General Welfare. - Every local government unit shall exercise the powers expressly granted, those necessarily implied therefrom, as well as powers necessary, appropriate, or incidental for its eCicient and eCective governance, and those which are essential to the promotion of the general welfare. Within their respective territorial jurisdictions, local government units shall ensure and support, among other things, the preservation and enrichment of culture, promote health and safety, enhance the right of the people to a balanced ecology, encourage and support the development of appropriate and self-reliant scientiﬁc and technological capabilities, improve public morals, enhance economic prosperity and social justice, promote full employment among their residents, maintain peace and order, and preserve the comfort and convenience of their inhabitants. Section 17. Basic Services and Facilities. - a. Local government units shall endeavor to be self-reliant and shall continue exercising the powers and discharging the duties and functions currently vested upon them. They shall also discharge the functions and responsibilities of national agencies and oCices devolved to them pursuant to this Code. Local government units shall likewise exercise such other powers and discharge such other functions and responsibilities as are necessary, appropriate, or incidental to eCicient and eCective provisions of the basic services and facilities enumerated herein. b. Such basic services and facilities include, but are not limited to, the following: For Barangay: i. Agricultural support services which include planting materials distribution system and operation of farm produce collection and buying stations; ii. Health and social welfare services which include maintenance of barangay health center and day-care center; iii. Services and facilities related to general hygiene and sanitation, beautiﬁcation, and solid waste collection; iv. Maintenance of katarungang pambarangay; v. Maintenance of barangay roads and bridges and water supply systems; vi. Infrastructure facilities such as multi-purpose hall, multipurpose pavement, plaza, sports center, and other similar facilities; vii. Information and reading center; and viii. Satellite or public market, where viable; For a Municipality: i. Extension and on-site research services and facilities related to agriculture and ﬁshery activities which include dispersal of livestock and poultry, ﬁngerlings, and other seedling materials for aquaculture; palay, corn, and vegetable seed farms; medicinal plant gardens; fruit tree, coconut, and other kinds of seedling nurseries; demonstration farms; quality control of copra and improvement and development of local distribution channels, preferably through cooperatives; interbarangay irrigation system; water and soil resource utilization and conservation projects; and enforcement of ﬁshery laws in municipal waters including the conservation of mangroves; ii. Pursuant to national policies and subject to supervision, control and review of the DENR, implementation of community-based forestry projects which include integrated social forestry programs and similar projects; management and control of communal forests with an area not exceeding ﬁfty (50) square kilometers; establishment of tree parks, greenbelts, and similar forest development projects; iii. Subject to the provisions of Title Five, Book I of this Code, health services which include the implementation of programs and projects on primary health care, maternal and child care, and communicable and non-communicable disease control services, access to secondary and tertiary health services; purchase of medicines, medical supplies, and equipment needed to carry out the services herein enumerated; iv. Social welfare services which include programs and projects on child and youth welfare, family and community welfare, women's welfare, welfare of the elderly and disabled persons; community-based rehabilitation programs for vagrants, beggars, street children, scavengers, juvenile delinquents, and victims of drug abuse; livelihood and other pro-poor projects; nutrition services; and family planning services; v. Information services which include investments and job placement information systems, tax and marketing information systems, and maintenance of a public library; vi. Solid waste disposal system or environmental management system and services or facilities related to general hygiene and sanitation; vii. Municipal buildings, cultural centers, public parks including freedom parks, playgrounds, and other sports facilities and equipment, and other similar facilities; viii. Infrastructure facilities intended primarily to service the needs of the residents of the municipality and which are funded out of municipal funds including but not limited to, municipal roads and bridges; school buildings and other facilities for public elementary and secondary schools; clinics, health centers and other health facilities necessary to carry out health services; communal irrigation, small water impounding projects and other similar projects; ﬁsh ports; artesian wells, spring development, rainwater collectors and water supply systems; seawalls, dikes, drainage and sewerage, and ﬂood control; traCic signals and road signs; and similar facilities; ix. Public markets, slaughterhouses and other municipal enterprises; x. Public cemetery; xi. (xi) Tourism facilities and other tourist attractions, including the acquisition of equipment, regulation and supervision of business concessions, and security services for such facilities; and xii. (xii) Sites for police and ﬁre stations and substations and municipal jail; For a Province: i. Agricultural extension and on-site research services and facilities which include the prevention and control of plant and animal pests and diseases; dairy farms, livestock markets, animal breeding stations, and artiﬁcial insemination centers; and assistance in the organization of farmers and ﬁshermen's cooperatives, and other collective organizations, as well as the transfer of appropriate technology; ii. Industrial research and development services, as well as the transfer of appropriate technology; iii. Pursuant to national policies and subject to supervision, control and review of the DENR, enforcement of forestry laws limited to community-based forestry projects, pollution control law, small-scale mining law, and other laws on the protection of the environment; and mini-hydroelectric projects for local purposes; iv. Subject to the provisions of Title Five, Book I of this Code, health services which include hospitals and other tertiary health services; v. Social welfare services which include programs and projects on rebel returnees and evacuees; relief operations; and population development services; vi. Provincial buildings, provincial jails, freedom parks and other public assembly areas and similar facilities; vii. Infrastructure facilities intended to service the needs of the residence of the province and which are funded out of provincial funds including, but not limited to, provincial roads and bridges; inter- municipal waterworks, drainage and sewerage, ﬂood control, and irrigation systems; reclamation projects; and similar facilities; viii. Programs and projects for low-cost housing and other mass dwellings, except those funded by the Social Security System (SSS), Government Service Insurance System p. 172 (GSIS), and the Home Development Mutual Fund (HDMF): Provided, That national funds for these programs and projects shall be equitably allocated among the regions in proportion to the ratio of the homeless to the population; ix. Investment support services, including access to credit ﬁnancing; x. Upgrading and modernization of tax information and collection services through the use of computer hardware and software and other means; xi. Inter-municipal telecommunications services, subject to national policy guidelines; and xii. Tourism development and promotion programs; For a City: All the services and facilities of the municipality and province, and in addition thereto, the following: (1) Adequate communication and transportation facilities; c. Notwithstanding the provisions of subsection (b) hereof, public works and infrastructure projects and other facilities, programs and services funded by the national government under the annual General Appropriations Act, other special laws, pertinent executive orders, and those wholly or partially funded from foreign sources, are not covered under this Section, except in those cases where the local government unit concerned is duly designated as the implementing agency for such projects, facilities, programs, and services. d. The designs, plans, speciﬁcations, testing of materials, and the procurement of equipment and materials at P170 from both foreign and local sources necessary for the provision of the foregoing services and facilities shall be undertaken by the local government unit concerned, based on national policies, standards and guidelines. e. National agencies or oCices concerned shall devolve to local government units the responsibility for the provision of basic services and facilities enumerated in this Section within six (6) months after the eCectivity of this Code. As used in this Code, the term "devolution" refers to the act by which the national government confers power and authority upon the various local government units to perform speciﬁc functions and responsibilities. f. The national government or the next higher level of local government unit may provide or augment the basic services and facilities assigned to a lower level of local government unit when such services or facilities are not made available or, if made available, are inadequate to meet the requirements of its inhabitants. g. The basic services and facilities hereinabove enumerated shall be funded from the share of local government units in the proceeds of national taxes and other local revenues and funding support from the national government, its instrumentalities and government-owned or controlled corporations which are tasked by law to establish and maintain such services or facilities. Any fund or resource available for the use of local government units shall be ﬁrst allocated for the provision of basic services or facilities enumerated in subsection (b) hereof before applying the same for other purposes, unless otherwise provided in this Code. h. Regional oCices of national agencies or oCices whose functions are devolved to local government units as provided herein shall be phased out within one (1) year from the approval of this Code. Said national agencies and oCices may establish such ﬁeld units as may be necessary for monitoring purposes and providing technical assistance to local government units. The properties, equipment, and other assets of these regional oCices shall be distributed to the local government units in the region in accordance with the rules and regulations issued by the oversight committee created under this Code. i. The devolution contemplated in this Code shall include the transfer to local government units of the records, equipment, and other assets and personnel of national agencies and oCices corresponding to the devolved powers, functions, and responsibilities. Personnel of said national agencies or oCices shall be absorbed by the local government units to which they belong or in whose areas they are assigned to the extent that it is administratively viable as determined by the said oversight committee: Provided, That the rights accorded to such personnel pursuant to civil service law, rules and regulations shall not be impaired: Provided, further, That regional directors who are career executive service oCicers and other oCicers of similar rank in the said regional oCices who cannot be absorbed by the local government unit shall be retained by the national government, without any diminution of rank, salary or tenure. j. To ensure the active participation of the private sector in local governance, local government units may, by ordinance, sell, lease, encumber, or otherwise dispose of public economic enterprises owned by them in their proprietary capacity. Costs may also be charged for the delivery of basic services or facilities enumerated in this Section. Section 19. Eminent Domain. - A local government unit may, through its chief executive and acting pursuant to an ordinance, exercise the power of eminent domain for public use, or purpose or welfare for the beneﬁt of the poor and the landless, upon payment of just compensation, pursuant to the provisions of the Constitution and pertinent laws: Provided, however, That the power of eminent domain may not be exercised unless a valid and deﬁnite oCer has been previously made to the owner, and such oCer was not accepted: Provided, further, That the local government unit may immediately take possession of the property upon the ﬁling of the expropriation proceedings and upon making a deposit with the proper court of at least ﬁfteen percent (15%) of the fair market value of the property based on the current tax declaration of the property to be expropriated: Provided, ﬁnally, That, the amount to be paid for the expropriated property shall be determined by the proper court, based on the fair market value at the time of the taking of the property. Section 20. Reclassiﬁcation of Lands. - a) A city or municipality may, through an ordinance passed by the sanggunian after conducting public hearings for the purpose, authorize the reclassiﬁcation of agricultural lands and provide for the manner of their utilization or disposition in the following cases: (1) when the land ceases to be economically feasible and sound for agricultural purposes as determined by the Department of Agriculture or (2) where the land shall have substantially greater economic value for residential, commercial, or industrial purposes, as determined by the sanggunian concerned: Provided, That such reclassiﬁcation shall be limited to the following percentage of the total agricultural land area at the time of the passage of the ordinance: (1) For highly urbanized and independent component cities, ﬁfteen percent (15%); (2) For component cities and ﬁrst to the third class municipalities, ten percent (10%); and (3) For fourth to sixth class municipalities, ﬁve percent (5%): Provided, further, That agricultural lands distributed to agrarian reform beneﬁciaries pursuant to Republic Act Numbered Sixty-six hundred ﬁfty- seven (R.A. No. 6657). otherwise known as "The Comprehensive Agrarian Reform Law", shall not be aCected by the said reclassiﬁcation and the conversion of such lands into other purposes shall be governed by Section 65 of said Act. b) The President may, when public interest so requires and upon recommendation of the National Economic and Development Authority, authorize a city or municipality to reclassify lands in excess of the limits set in the next preceding paragraph. c) The local government units shall, in conformity with existing laws, continue to prepare their respective comprehensive land use plans enacted through zoning ordinances which shall be the primary and dominant bases for the future use of land resources: Provided. That the requirements for food production, human settlements, and industrial expansion shall be taken into consideration in the preparation of such plans. d) Where approval by a national agency is required for reclassiﬁcation, such approval shall not be unreasonably withheld. Failure to act on a proper and complete application for reclassiﬁcation within three (3) months from receipt of the same shall be deemed as approval thereof. e) Nothing in this Section shall be construed as repealing, amending, or modifying in any manner the provisions of R.A. No. 6657. f) Section 21. Closure and Opening of Roads. - (a) A local government unit may, pursuant to an ordinance, permanently or temporarily close or open any local road, alley, park, or square falling within its jurisdiction: Provided, however, That in case of permanent closure, such ordinance must be approved by at least two-thirds (2/3) of all the members of the sanggunian, and when necessary, an adequate substitute for the public facility that is subject to closure is provided. (b) No such way or place or any part thereof shall be permanently closed without making provisions for the maintenance of public safety therein. A property thus permanently withdrawn from public use may be used or conveyed for any purpose for which other real property belonging to the local government unit concerned may be lawfully used or conveyed: Provided, however, That no freedom park shall be closed permanently without provision for its transfer or relocation to a new site. (c) Any national or local road, alley, park, or square may be temporarily closed during an actual emergency, or ﬁesta celebrations, public rallies, agricultural or industrial fairs, or an undertaking of public works and highways, telecommunications, and waterworks projects, the duration of which shall be speciﬁed by the local chief executive concerned in a written order: Provided, however, That no national or local road, alley, park, or square shall be temporarily closed for athletic, cultural, or civic activities not oCicially sponsored, recognized, or approved by the local government unit concerned. (d) Any city, municipality, or barangay may, by a duly enacted ordinance, temporarily close and regulate the use of any local street, road, thoroughfare, or any other public place where shopping malls, Sunday, ﬂea or night markets, or shopping areas may be established and where goods, merchandise, foodstuCs, commodities, or articles of commerce may be sold and dispensed to the general public. Section 22. Corporate Powers. - (a) Every local government unit, as a corporation, shall have the following powers: 1. To have continuous succession in its corporate name; 2. To sue and be sued; 3. To have and use a corporate seal; 4. To acquire and convey real or personal property; 5. To enter into contracts; and 6. To exercise such other powers as are granted to corporations, subject to the limitations provided in this Code and other laws. (b) Local government units may continue using, modify, or change their existing corporate seals: Provided, That newly established local government units or those without corporate seals may create their own corporate seals which shall be registered with the Department of the Interior and Local Government: Provided, further, That any change of corporate seal shall also be registered as provided hereon. (c) Unless otherwise provided in this Code, no contract may be entered into by the local chief executive in behalf of the local government unit without prior authorization by the sanggunian concerned. A legible copy of such contract shall be posted at a conspicuous place in the provincial capitol or the city, municipal or barangay hall. (d) Local government units shall enjoy full autonomy in the exercise of their proprietary functions and in the limitations provided in this Code and other applicable laws, Section 28. Powers of Local Chief Executives over the Units of the Philippine National Police. - The extent of operational supervision and control of local chief executives over the police force, ﬁre protection unit, and jail management personnel assigned in their respective jurisdictions shall be governed by the provisions of Republic Act Numbered Sixty-nine hundred seventy-ﬁve (R.A. No. 6975), otherwise known as "The Department of the Interior and Local Government Act of 1990", and the rules and regulations issued pursuant thereto. Section 29. Provincial Relations with Component Cities and Municipalities. - The province, through the governor, shall ensure that every component city and municipality within its territorial jurisdiction acts within the scope of its prescribed powers and functions. Highly urbanized cities and independent component cities shall be independent of the province. Section 30. Review of Executive Orders. - (a) Except as otherwise provided under the Constitution and special statutes, the governor shall review all executive orders promulgated by the component city or municipal mayor within his jurisdiction. The city or municipal mayor shall review all executive orders promulgated by the punong barangay within his jurisdiction. Copies of such orders shall be forwarded to the governor or the city or municipal mayor, as the case may be, within three (3) days from their issuance. In all instances of review, the local chief executive concerned shall ensure that such executive orders are within the powers granted by law and in conformity with provincial, city, or municipal ordinances. (b) If the governor or the city or municipal mayor fails to act on said executive orders within thirty (30) days after their submission, the same shall be deemed consistent with law and therefore valid. Section 39. Qualiﬁcations. - a. An elective local oCicial must be a citizen of the Philippines; a registered voter in the barangay, municipality, city, or province or, in the case of a member of the sangguniang panlalawigan, sangguniang panlungsod, or sangguniang bayan, the district where he intends to be elected; a resident therein for at least one (1) year immediately preceding the day of the election; and able to read and write Filipino or any other local language or dialect. b. Candidates for the position of governor, vice-governor, or member of the sangguniang panlalawigan, or mayor, vice-mayor or member of the sangguniang panlungsod of highly urbanized cities must be at least twenty-one (21) years of age on election day. c. Candidates for the position of mayor or vice-mayor of independent component cities, component cities, or municipalities must be at least twenty-one (21) years of age on election day. d. Candidates for the position of member of the sangguniang panlungsod or sangguniang bayan must be at least eighteen (18) years of age on election day. e. Candidates for the position of punong barangay or member of the sangguniang barangay must be at least eighteen (18) years of age on election day. f. Candidates for the sangguniang kabataan must be at least ﬁfteen (15) years of age but not more than twenty-one (21) years of age on election day. Section 40. Disqualiﬁcations. - The following persons are disqualiﬁed from running for any elective local position: (a) Those sentenced by ﬁnal judgment for an oCense involving moral turpitude or for an oCense punishable by one (1) year or more of imprisonment, within two (2) years after serving sentence; (b) Those removed from oCice as a result of an administrative case; (c) Those convicted by ﬁnal judgment for violating the oath of allegiance to the Republic; (d) Those with dual citizenship; (e) Fugitives from justice in criminal or non-political cases here or abroad; (f) Permanent residents in a foreign country or those who have acquired the right to reside abroad and continue to avail of the same right after the eCectivity of this Code; and (g) The insane or feeble-minded. Section 44. Permanent Vacancies in the ODices of the Governor, Vice-Governor, Mayor, and Vice-Mayor. – (a) If a permanent vacancy occurs in the oCice of the governor or mayor, the vice-governor or vice-mayor concerned shall become the governor or mayor. If a permanent vacancy occurs in the oCices of the governor, vice-governor, mayor, or vice-mayor, the highest ranking sanggunian member or, in case of his permanent inability, the second highest ranking sanggunian member, shall become the governor, vice-governor, mayor or vice-mayor, as the case may be. Subsequent vacancies in the said oCice shall be ﬁlled automatically by the other sanggunian members according to their ranking as deﬁned herein. (b) If a permanent vacancy occurs in the oCice of the punong barangay, the highest ranking sanggunian barangay member or, in case of his permanent inability, the second highest ranking sanggunian member, shall become the punong barangay. (c) A tie between or among the highest ranking sanggunian members shall be resolved by the drawing of lots. (d) The successors as deﬁned herein shall serve only the unexpired terms of their predecessors. (e) For purposes of this Chapter, a permanent vacancy arises when an elective local oCicial ﬁlls a higher vacant oCice, refuses to assume oCice, fails to qualify, dies, is removed from oCice, voluntarily resigns, or is otherwise permanently incapacitated to discharge the functions of his oCice. For purposes of succession as provided in the Chapter, ranking in the sanggunian shall be determined on the basis of the proportion of votes obtained by each winning candidate to the total number of registered voters in each district in the immediately preceding local election. Section 45. Permanent Vacancies in the Sanggunian. - a. Permanent vacancies in the sanggunian where automatic succession provided above do not apply shall be ﬁlled by appointment in the following manner: i. The President, through the Executive Secretary, in the case of the sangguniang panlalawigan and the sangguniang panlungsod of highly urbanized cities and independent component cities; ii. The governor, in the case of the sangguniang panlungsod of component cities and the sangguniang bayan; iii. The city or municipal mayor, in the case of sangguniang barangay, upon recommendation of the sangguniang barangay concerned. b. Except for the sangguniang barangay, only the nominee of the political party under which the sanggunian member concerned had been elected and whose elevation to the position next higher in rank created the last vacancy in the sanggunian shall be appointed in the manner hereinabove provided. The appointee shall come from the same political party as that of the sanggunian member who caused the vacancy and shall serve the unexpired term of the vacant oCice. In the appointment herein mentioned, a nomination and a certiﬁcate of membership of the appointee from the highest oCicial of the political party concerned are conditions sine qua non, and any appointment without such nomination and certiﬁcation shall be null and void ab initio and shall be a ground for administrative action against the oCicial responsible therefore. c. In case or permanent vacancy is caused by a sanggunian member who does not belong to any political party, the local chief executive shall, upon recommendation of the sanggunian concerned, appoint a qualiﬁed person to ﬁll the vacancy. d. In case of vacancy in the representation of the youth and the barangay in the sanggunian, said vacancy shall be ﬁlled automatically by the oCicial next in rank of the organization concerned. Section 46. Temporary Vacancy in the ODice of the Local Chief Executive. - (a) When the governor, city or municipal mayor, or punong barangay is temporarily incapacitated to perform his duties for physical or legal reasons such as, but not limited to, leave of absence, travel abroad, and suspension from oCice, the vice-governor, city or municipal vice-mayor, or the highest ranking sangguniang barangay member shall automatically exercise the powers and perform the duties and functions of the local chief executive concerned, except the power to appoint, suspend, or dismiss employees which can only be exercised if the period of temporary incapacity exceeds thirty (30) working days. (b) Said temporary incapacity shall terminate upon submission to the appropriate sanggunian of a written declaration by the local chief executive concerned that he has reported back to oCice. In cases where the temporary incapacity is due to legal causes, the local chief executive concerned shall also submit necessary documents showing that said legal causes no longer exist. (c) When the incumbent local chief executive is traveling within the country but outside his territorial jurisdiction for a period not exceeding three (3) consecutive days, he may designate in writing the oCicer-in-charge of the said oCice. Such authorization shall specify the powers and functions that the local oCicial concerned shall exercise in the absence of the local chief executive except the power to appoint, suspend, or dismiss employees. (d) In the event, however, that the local chief executive concerned fails or refuses to issue such authorization, the vice-governor, the city or municipal vice-mayor, or the highest ranking sangguniang barangay member, as the case may be, shall have the right to assume the powers, duties, and functions of the said oCice on the fourth (4th) day of absence of the said local chief executive, subject to the limitations provided in subsection (c) hereof. (e) Except as provided above, the local chief executive shall in no case authorize any local oCicial to assume the powers, duties, and functions of the oCice, other than the vice-governor, the city or municipal vice-mayor, or the highest ranking sangguniang barangay member, as the case may be. Section 47. Approval of Leaves of Absence. - a. Leaves of absence of local elective oCicials shall be approved as follows: i. Leaves of absence of the governor and the mayor of a highly urbanized city or an independent component city shall be approved by the President or his duly authorized representative; ii. Leaves of absence of vice-governor or a city or municipal vice-mayor shall be approved by the local chief executive concerned: Provided, That the leaves of absence of the members of the sanggunian and its employees shall be approved by the vice-governor or city or municipal vice-mayor concerned; iii. Leaves of absence of the component city or municipal mayor shall be approved by the governor; and iv. Leaves of absence of a punong barangay shall be approved by the city or municipal mayor: Provided, That leaves of absence of sangguniang barangay members shall be approved by the punong barangay. b. Whenever the application for leave of absence hereinabove speciﬁed is not acted upon within ﬁve (5) working days after receipt thereof, the application for leave of absence shall be deemed approved. Section 48. Local Legislative Power. - Local legislative power shall be exercised by the sangguniang panlalawigan for the province; the sangguniang panlungsod for the city; the sangguniang bayan for the municipality; and the sangguniang barangay for the barangay. Section 49. Presiding ODicer. - (a) The vice-governor shall be the presiding oCicer of the sangguniang panlalawigan; the city vice-mayor, of the sangguniang panlungsod; the municipal vice-mayor, of the sangguniang bayan; and the punong barangay, of the sangguniang barangay. The presiding oCicer shall vote only to break a tie. (b) In the event of the inability of the regular presiding oCicer to preside at a sanggunian session, the members present and constituting a quorum shall elect from among themselves a temporary presiding oCicer. He shall certify within ten (10) days from the passage of ordinances enacted and resolutions adopted by the sanggunian in the session over which he temporarily presided. Section 50. Internal Rules of Procedure. - a. On the ﬁrst regular session following the election of its members and within ninety (90) days thereafter, the sanggunian concerned shall adopt or update its existing rules of procedure. b. The rules of procedure shall provided for the following: i. The organization of the sanggunian and the election of its oCicers as well as the creation of standing committees which shall include, but shall not be limited to, the committees on appropriations, women and family, human rights, youth and sports development, environmental protection, and cooperatives; the general jurisdiction of each committee; and the election of the chairman and members of each committee; ii. The order and calendar of business for each session; iii. The legislative process; iv. The parliamentary procedures which include the conduct of members during sessions; v. The discipline of members for disorderly behavior and absences without justiﬁable cause for four (4) consecutive sessions, for which they may be censured, reprimanded, or excluded from the session, suspended for not more than sixty (60) days, or expelled: Provided, That the penalty of suspension or expulsion shall require the concurrence of at least two-thirds (2/3) vote of all the sanggunian members: Provided, further, That a member convicted by ﬁnal judgment to imprisonment of at least one (1) year for any crime involving moral turpitude shall be automatically expelled from the sanggunian; and vi. Such other rules as the sanggunian may adopt.lawphil™ Section 52. Sessions. - a. On the ﬁrst day of the session immediately following the election of its members, the sanggunian shall, by resolution, ﬁx the day, time, and place of its regular sessions. The minimum numbers of regular sessions shall be once a week for the sangguniang panlalawigan, sangguniang panlungsod, and sangguniang bayan, and twice a month for the sangguniang barangay. b. When public interest so demands, special sessions may be called by the local chief executive or by a majority of the members of the sanggunian. c. All sanggunian sessions shall be open to the public unless a closed-door session is ordered by an aCirmative vote of a majority of the members present, there being a quorum, in the public interest or for reasons of security, decency, or morality. No two (2) sessions, regular or special, may be held in a single day. d. In the case of special sessions of the sanggunian, a written notice to the members shall be served personally at the member's usual place of residence at least twenty-four (24) hours before the special session is held. Unless otherwise concurred in by two-thirds (2/3) vote of the sanggunian members present, there being a quorum, no other matters may be considered at a special session except those stated in the notice. e. Each sanggunian shall keep a journal and record of its proceedings which may be published upon resolution of the sanggunian concerned. Section 53. Quorum. - (a) A majority of all the members of the sanggunian who have been elected and qualiﬁed shall constitute a quorum to transact oCicial business. Should a question of quorum be raised during a session, the presiding oCicer shall immediately proceed to call the roll of the members and thereafter announce the results. (b) Where there is no quorum, the presiding oCicer may declare a recess until such time as a quorum is constituted, or a majority of the members present may adjourn from day to day and may compel the immediate attendance of any member absent without justiﬁable cause by designating a member of the sanggunian to be assisted by a member or members of the police force assigned in the territorial jurisdiction of the local government unit concerned, to arrest the absent member and present him at the session. (c) If there is still no quorum despite the enforcement of the immediately preceding subsection, no business shall be transacted. The presiding oCicer, upon proper motion duly approved by the members present, shall then declare the session adjourned for lack of quorum. Section 54. Approval of Ordinances. - (a) Every ordinance enacted by the sangguniang panlalawigan, sangguniang panlungsod, or sangguniang bayan shall be presented to the provincial governor or city or municipal mayor, as the case may be. If the local chief executive concerned approves the same, he shall aCix his signature on each and every page thereof; otherwise, he shall veto it and return the same with his objections to the sanggunian, which may proceed to reconsider the same. The sanggunian concerned may override the veto of the local chief executive by two-thirds (2/3) vote of all its members, thereby making the ordinance or resolution eCective for all legal intents and purposes. (b) The veto shall be communicated by the local chief executive concerned to the sanggunian within ﬁfteen (15) days in the case of a province, and ten (10) days in the case of a city or a municipality; otherwise, the ordinance shall be deemed approved as if he had signed it. (c) Ordinances enacted by the sangguniang barangay shall, upon approval by the majority of all its members, be signed by the punong barangay. Section 56. Review of Component City and Municipal Ordinances or Resolutions by the Sangguniang Panlalawigan. (a) Within three (3) days after approval, the secretary to the sanggunian panlungsod or sangguniang bayan shall forward to the sangguniang panlalawigan for review, copies of approved ordinances and the resolutions approving the local development plans and public investment programs formulated by the local development councils. (b) Within thirty (30) days after the receipt of copies of such ordinances and resolutions, the sangguniang panlalawigan shall examine the documents or transmit them to the provincial attorney, or if there be none, to the provincial prosecutor for prompt examination. The provincial attorney or provincial prosecutor shall, within a period of ten (10) days from receipt of the documents, inform the sangguniang panlalawigan in writing of his comments or recommendations, which may be considered by the sangguniang panlalawigan in making its decision. (c) If the sangguniang panlalawigan ﬁnds that such an ordinance or resolution is beyond the power conferred upon the sangguniang panlungsod or sangguniang bayan concerned, it shall declare such ordinance or resolution invalid in whole or in part. The sangguniang panlalawigan shall enter its action in the minutes and shall advise the corresponding city or municipal authorities of the action it has taken. (d) If no action has been taken by the sangguniang panlalawigan within thirty (30) days after submission of such an ordinance or resolution, the same shall be presumed consistent with law and therefore valid. Section 57. Review of Barangay Ordinances by the Sangguniang Panlungsod or Sangguniang Bayan. - (a) Within ten (10) days after its enactment, the sangguniang barangay shall furnish copies of all barangay ordinances to the sangguniang panlungsod or sangguniang bayan concerned for review as to whether the ordinance is consistent with law and city or municipal ordinances. (b) If the sangguniang panlungsod or sangguniang bayan, as the case may be, fails to take action on barangay ordinances within thirty (30) days from receipt thereof, the same shall be deemed approved. (c) If the sangguniang panlungsod or sangguniang bayan, as the case may be, ﬁnds the barangay ordinances inconsistent with law or city or municipal ordinances, the sanggunian concerned shall, within thirty (30) days from receipt thereof, return the same with its comments and recommendations to the sangguniang barangay concerned for adjustment, amendment, or modiﬁcation; in which case, the eCectivity of the barangay ordinance is suspended until such time as the revision called for is eCected. Section 58. Enforcement of Disapproved Ordinances or Resolutions. - Any attempt to enforce any ordinance or any resolution approving the local development plan and public investment program, after the disapproval thereof, shall be suCicient ground for the suspension or dismissal of the oCicial or employee concerned. Section 59. EDectivity of Ordinances or Resolutions. - (a) Unless otherwise stated in the ordinance or the resolution approving the local development plan and public investment program, the same shall take eCect after ten (10) days from the date a copy thereof is posted in a bulletin board at the entrance of the provincial capitol or city, municipal, or barangay hall, as the case may be, and in at least two (2) other conspicuous places in the local government unit concerned. (b) The secretary to the sanggunian concerned shall cause the posting of an ordinance or resolution in the bulletin board at the entrance of the provincial capitol and the city, municipal, or barangay hall in at least two (2) conspicuous places in the local government unit concerned not later than ﬁve (5) days after approval thereof. The text of the ordinance or resolution shall be disseminated and posted in Filipino or English and in the language understood by the majority of the people in the local government unit concerned, and the secretary to the sanggunian shall record such fact in a book kept for the purpose, stating the dates of approval and posting. (c) The gist of all ordinances with penal sanctions shall be published in a newspaper of general circulation within the province where the local legislative body concerned belongs. In the absence of any newspaper of general circulation within the province, posting of such ordinances shall be made in all municipalities and cities of the province where the sanggunian of origin is situated. (d) In the case of highly urbanized and independent component cities, the main features of the ordinance or resolution duly enacted or adopted shall, in addition to being posted, be published once in a local newspaper of general circulation within the city: Provided, That in the absence thereof the ordinance or resolution shall be published in any newspaper of general circulation. Section 60. Grounds for Disciplinary Actions. - An elective local oCicial may be disciplined, suspended, or removed from oCice on any of the following grounds: (a) Disloyalty to the Republic of the Philippines; (b) Culpable violation of the Constitution; (c) Dishonesty, oppression, misconduct in oCice, gross negligence, or dereliction of duty; (d) Commission of any oCense involving moral turpitude or an oCense punishable by at least prision mayor; (e) Abuse of authority; (f) Unauthorized absence for ﬁfteen (15) consecutive working days, except in the case of members of the sangguniang panlalawigan, sangguniang panlungsod, sangguniang bayan, and sangguniang barangay; (g) Application for, or acquisition of, foreign citizenship or residence or the status of an immigrant of another country; and (h) Such other grounds as may be provided in this Code and other laws. An elective local oCicial may be removed from oCice on the grounds enumerated above by order of the proper court. Section 61. Form and Filing of Administrative Complaints. - A veriﬁed complaint against any erring local elective oCicial shall be prepared as follows: (a) A complaint against any elective oCicial of a province, a highly urbanized city, an independent component city or component city shall be ﬁled before the OCice of the President; (b) A complaint against any elective oCicial of a municipality shall be ﬁled before the sangguniang panlalawigan whose decision may be appealed to the OCice of the President; and (c) A complaint against any elective barangay oCicial shall be ﬁled before the sangguniang panlungsod or sangguniang bayan concerned whose decision shall be ﬁnal and executory. Section 62. Notice of hearing. - (a) Within seven (7) days after the administrative complaint is ﬁled, the OCice of the President or the sanggunian concerned, as the case may be, shall require the respondent to submit his veriﬁed answer within ﬁfteen (15) days from receipt thereof, and commence the investigation of the case within ten (10) days after receipt of such answer of the respondent. (b) When the respondent is an elective oCicial of a province or highly urbanized city, such hearing and investigation shall be conducted in the place where he renders or holds oCice. For all other local elective oCicials, the venue shall be the place where the sanggunian concerned is located. (c) However, no investigation shall be held within ninety (90) days immediately prior to any local election, and no preventive suspension shall be imposed within the said period. If preventive suspension has been imposed prior to the 90-day period immediately preceding local election, it shall be deemed automatically lifted upon the start of aforesaid period. Section 63. Preventive Suspension. - a. Preventive suspension may be imposed: i. By the President, if the respondent is an elective oCicial of a province, a highly urbanized or an independent component city; ii. By the governor, if the respondent is an elective oCicial of a component city or municipality; or iii. By the mayor, if the respondent is an elective oCicial of the barangay. b. Preventive suspension may be imposed at any time after the issues are joined, when the evidence of guilt is strong, and given the gravity of the oCense, there is great probability that the continuance in oCice of the respondent could inﬂuence the witnesses or pose a threat to the safety and integrity of the records and other evidence: Provided, That, any single preventive suspension of local elective oCicials shall not extend beyond sixty (60) days: Provided, further, That in the event that several administrative cases are ﬁled against an elective oCicial, he cannot be preventively suspended for more than ninety (90) days within a single year on the same ground or grounds existing and known at the time of the ﬁrst suspension. c. Upon expiration of the preventive suspension, the suspended elective oCicial shall be deemed reinstated in oCice without prejudice to the continuation of the proceedings against him, which shall be terminated within one hundred twenty (120) days from the time he was formally notiﬁed of the case against him. However, if the delay in the proceedings of the case is due to his fault, neglect, or request, other than the appeal duly ﬁled, the duration of such delay shall not be counted in computing the time of termination of the case. d. Any abuse of the exercise of the power of preventive suspension shall be penalized as abuse of authority. Section 64. Salary of Respondent Pending Suspension. - The respondent oCicial preventively suspended from oCice shall receive no salary or compensation during such suspension; but upon subsequent exoneration and reinstatement, he shall be paid full salary or compensation including such emoluments accruing during such suspension. Section 65. Rights of Respondent. - The respondent shall be accorded full opportunity to appear and defend himself in person or by counsel, to confront and cross-examine the witnesses against him, and to require the attendance of witnesses and the production of documentary process of subpoena or subpoena duces tecum. Section 65. Rights of Respondent. - The respondent shall be accorded full opportunity to appear and defend himself in person or by counsel, to confront and cross-examine the witnesses against him, and to require the attendance of witnesses and the production of documentary process of subpoena or subpoena duces tecum. Section 66. Form and Notice of Decision. - (a) The investigation of the case shall be terminated within ninety (90) days from the start thereof. Within thirty (30) days after the end of the investigation, the OCice of the President or the sanggunian concerned shall render a decision in writing stating clearly and distinctly the facts and the reasons for such decision. Copies of said decision shall immediately be furnished the respondent and all interested parties. (b) The penalty of suspension shall not exceed the unexpired term of the respondent or a period of six (6) months for every administrative oCense, nor shall said penalty be a bar to the candidacy of the respondent so suspended as long as he meets the qualiﬁcations required for the oCice. (c) The penalty of removal from oCice as a result of an administrative investigation shall be considered a bar to the candidacy of the respondent for any elective position. Section 67. Administrative Appeals. - Decisions in administrative cases may, within thirty (30) days from receipt thereof, be appealed to the following: (a) The sangguniang panlalawigan, in the case of decisions of the sangguniang panlungsod of component cities and the sangguniang bayan; and (b) The OCice of the President, in the case of decisions of the sangguniang panlalawigan and the sangguniang panlungsod of highly urbanized cities and independent component cities. (c) Decisions of the OCice of the President shall be ﬁnal and executory. Section 68. Execution Pending Appeal. - An appeal shall not prevent a decision from becoming ﬁnal or executory. The respondent shall be considered as having been placed under preventive suspension during the pendency of an appeal in the event he wins such appeal. In the event the appeal results in an exoneration, he shall be paid his salary and such other emoluments during the pendency of the appeal. Section 71. Election on Recall. - Upon the ﬁling of a valid resolution or petition for recall with the appropriate local oCice of the COMELEC, the Commission or its duly authorized representative shall set the date of the election on recall, which shall not be later than thirty (30) days after the ﬁling of the resolution or petition for recall in the case of the barangay, city, or municipal oCicials. and forty-ﬁve (45) days in the case of provincial oCicials. The oCicial or oCicials sought to be recalled shall automatically be considered as duly registered candidate or candidates to the pertinent positions and, like other candidates, shall be entitled to be voted upon. Section 72. EDectivity of Recall. - The recall of an elective local oCicial shall be eCective only upon the election and proclamation of a successor in the person of the candidate receiving the highest number of votes cast during the election on recall. Should the oCicial sought to be recalled receive the highest number of votes, conﬁdence in him is thereby aCirmed, and he shall continue in oCice. Section 73. Prohibition from Resignation. - The elective local oCicial sought to be recalled shall not be allowed to resign while the recall process is in progress. Section 74. Limitations on Recall. - (a) Any elective local oCicial may be the subject of a recall election only once during his term of oCice for loss of conﬁdence. (b) No recall shall take place within one (1) year from the date of the oCicial's assumption to oCice or one (1) year immediately preceding a regular local election. Section 75. Expenses Incident to Recall Elections. - All expenses incident to recall elections shall be borne by the COMELEC. For this purpose, there shall be included in the annual General Appropriations Act a contingency fund at the disposal of the COMELEC for the conduct of recall elections. Section 79. Limitation to Appointments. - No person shall be appointed in the career service of the local government if he is related within the fourth civil degree of consanguinity or aCinity to the appointing or recommending authority. Section 81. Compensation of Local ODicials and Employees. - The compensation of local oCicials and personnel shall be determined by the sanggunian concerned: Provided, That the increase in compensation of elective local oCicials shall take eCect only after the terms of oCice of those approving such increase shall have expired: Provided, further, That the increase in compensation of the appointive oCicials and employees shall take eCect as provided in the ordinance authorizing such increase: Provided, however, That said increases shall not exceed the limitations on budgetary allocations for personal services provided under Title Five, Book II of this Code: Provided, ﬁnally, That such compensation may be based upon the pertinent provisions of Republic Act Numbered Sixty-seven ﬁfty-eight (R.A. No 6758), otherwise known as the "Compensation and Position Classiﬁcation Act of 1989". The punong barangay, the sangguniang barangay member, the sangguniang kabataan chairman, the barangay treasurer, and the barangay secretary shall be entitled to such compensation, allowances, emoluments, and such other privileges as provided under Title One Book III of this Code. Elective local oCicials shall be entitled to the same leave privileges as those enjoyed by appointive local oCicials, including the cumulation and commutation thereof. Section 82. Resignation of Elective Local ODicials. - (a) Resignations by elective local oCicials shall be deemed eCective only upon acceptance by the following authorities: 1. The President, in the case of governors, vice-governors, and mayors and vice-mayors of highly urbanized cities and independent component cities; 2. The governor, in the case of municipal mayors, municipal vice-mayors, city mayors and city vice- mayors of component cities; 3. The sanggunian concerned, in the case of sanggunian members; and 4. The city or municipal mayor, in the case of barangay oCicials. (b) Copies of the resignation letters of elective local oCicials, together with the action taken by the aforesaid authorities, shall be furnished the Department of the Interior and Local Government. (c) The resignation shall be deemed accepted if not acted upon by the authority concerned within ﬁfteen (15) days from receipt thereof. (d) Irrevocable resignations by sanggunian members shall be deemed accepted upon presentation before an open session of the sanggunian concerned and duly entered in its records: Provided, however, That this subsection does not apply to sanggunian members who are subject to recall elections or to cases where existing laws prescribed the manner of acting upon such resignations. Section 84. Administrative Discipline. - Investigation and adjudication of administrative complaints against appointive local oCicials and employees as well as their suspension and removal shall be in accordance with the civil service law and rules and other pertinent laws. The results of such administrative investigations shall be reported to the Civil Service Commission. Section 86. Administrative Investigation. - In any local government unit, administrative investigation may be conducted by a person or a committee duly authorized by the local chief executive. Said person or committee shall conduct hearings on the cases brought against appointive local oCicials and employees and submit their ﬁndings and recommendations to the local chief executive concerned within ﬁfteen (15) days from the conclusion of the hearings. The administrative cases herein mentioned shall be decided within ninety (90) days from the time the respondent is formally notiﬁed of the charges. Section 87. Disciplinary Jurisdiction. - Except as otherwise provided by law, the local chief executive may impose the penalty of removal from service, demotion in rank, suspension for not more than one (1) year without pay, ﬁne in an amount not exceeding six (6) months salary, or reprimand and otherwise discipline subordinate oCicials and employees under his jurisdiction. If the penalty imposed is suspension without pay for not more than thirty (30) days, his decision shall be ﬁnal. If the penalty imposed is heavier than suspension of thirty (30) days, the decision shall be appealable to the Civil Service Commission, which shall decide the appeal within thirty (30) days from receipt thereof. Section 90. Practice of Profession. - (a) All governors, city and municipal mayors are prohibited from practicing their profession or engaging in any occupation other than the exercise of their functions as local chief executives. (b) Sanggunian members may practice their professions, engage in any occupation, or teach in schools except during session hours: Provided, That sanggunian members who are also members of the Bar shall not: 1. Appear as counsel before any court in any civil case wherein a local government unit or any oCice, agency, or instrumentality of the government is the adverse party; 2. Appear as counsel in any criminal case wherein an oCicer or employee of the national or local government is accused of an oCense committed in relation to his oCice. 3. Collect any fee for their appearance in administrative proceedings involving the local government unit of which he is an oCicial; and 4. Use property and personnel of the government except when the sanggunian member concerned is defending the interest of the government. (c) Doctors of medicine may practice their profession even during oCicial hours of work only on occasions of emergency: Provided, That the oCicials concerned do not derive monetary compensation therefrom. Section 94. Appointment of Elective and Appointive Local ODicials; Candidates Who Lost in an Election. - (a) No elective or appointive local oCicial shall be eligible for appointment or designation in any capacity to any public oCice or position during his tenure. Unless otherwise allowed by law or by the primary functions of his position, no elective or appointive local oCicial shall hold any other oCice or employment in the government or any subdivision, agency or instrumentality thereof, including government-owned or controlled corporations or their subsidiaries. Section 95. Additional or Double Compensation. - No elective or appointive local oCicial or employee shall receive additional, double, or indirect compensation, unless speciﬁcally authorized by law, nor accept without the consent of Congress, any present, emoluments, oCice, or title of any kind from any foreign government. Pensions or gratuities shall not be considered as additional, double, or indirect compensation. Section 118. Jurisdictional Responsibility for Settlement of Boundary Dispute. - Boundary disputes between and among local government units shall, as much as possible, be settled amicably. To this end: (a) Boundary disputes involving two (2) or more barangays in the same city or municipality shall be referred for settlement to the sangguniang panlungsod or sangguniang bayan concerned. (b) Boundary disputes involving two (2) or more municipalities within the same province shall be referred for settlement to the sangguniang panlalawigan concerned. (c) Boundary disputes involving municipalities or component cities of diCerent provinces shall be jointly referred for settlement to the sanggunians of the province concerned. (d) Boundary disputes involving a component city or municipality on the one hand and a highly urbanized city on the other, or two (2) or more highly urbanized cities, shall be jointly referred for settlement to the respective sanggunians of the parties. (e) In the event the sanggunian fails to eCect an amicable settlement within sixty (60) days from the date the dispute was referred thereto, it shall issue a certiﬁcation to that eCect. Thereafter, the dispute shall be formally tried by the sanggunian concerned which shall decide the issue within sixty (60) days from the date of the certiﬁcation referred to above. Section 119. Appeal. - Within the time and manner prescribed by the Rules of Court, any party may elevate the decision of the sanggunian concerned to the proper Regional Trial Court having jurisdiction over the area in dispute. The Regional Trial Court shall decide the appeal within one (1) year from the ﬁling thereof. Pending ﬁnal resolution of the disputed area prior to the dispute shall be maintained and continued for all legal purposes. Section 120. Local Initiative Deﬁned. - Local initiative is the legal process whereby the registered voters of a local government unit may directly propose, enact, or amend any ordinance. Section 121. Who May Exercise. - The power of local initiative and referendum may be exercised by all registered voters of the provinces, cities, municipalities, and barangays. Section 122. Procedure in Local Initiative. - (a) Not less than one thousand (1,000) registered voters in case of provinces and cities, one hundred (100) in case of municipalities, and ﬁfty (50) in case of barangays, may ﬁle a petition with the sanggunian concerned proposing the adoption, enactment, repeal, or amendment of an ordinance. (b) If no favorable action thereon is taken by the sanggunian concerned within thirty (30) days from its presentation, the proponents, through their duly authorized and registered representatives, may invoke their power of initiative, giving notice thereof to the sanggunian concerned. (c) The proposition shall be numbered serially starting from Roman numeral I. The COMELEC or its designated representative shall extend assistance in the formulation of the proposition. (d) Two (2) or more propositions may be submitted in an initiative. (e) Proponents shall have ninety (90) days in case of provinces and cities, sixty (60) days in case of municipalities, and thirty (30) days in case of barangays, from notice mentioned in subsection (b) hereof to collect the required number of signatures. (f) The petition shall be signed before the election registrar. or his designated representatives, in the presence of a representative of the proponent, and a representative of the sanggunian concerned in a public place in the local government unit, as the case may be. Stations for collecting signatures may be established in as many places as may be warranted. (f) Upon the lapse of the period herein provided, the COMELEC, through its oCice in the local government unit concerned, shall certify as to whether or not the required number of signatures has been obtained. Failure to obtain the required number defeats the proposition. (g) If the required number of signatures is obtained, the COMELEC shall then set a date for the initiative during which the proposition shall be submitted to the registered voters in the local government unit concerned for their approval within sixty (60) days from the date of certiﬁcation by the COMELEC, as provided in subsection (g) hereof, in case of provinces and cities, forty-ﬁve (45) days in case of municipalities, and thirty (30) days in case of barangays. The initiative shall then be held on the date set, after which the results thereof shall be certiﬁed and proclaimed by the COMELEC. Section 123. EDectivity of Local Propositions. - If the proposition is approved by a majority of the votes cast, it shall take eCect ﬁfteen (15) days after certiﬁcation by the COMELEC as if aCirmative action thereon had been made by the sanggunian and local chief executive concerned. If it fails to obtain said number of votes, the proposition is considered defeated. Section 124. Limitations on Local Initiative. - (a) The power of local initiative shall not be exercised more than once a year. (b) Initiative shall extend only to subjects or matters which are within the legal powers of the sanggunian to enact. (c) If at any time before the initiative is held, the sanggunian concerned adopts in toto the proposition presented and the local chief executive approves the same, the initiative shall be cancelled. However, those against such action may, if they so desire, apply for initiative in the manner herein provided. Section 125. Limitations upon Sanggunians. - Any proposition or ordinance approved through the system of initiative and referendum as herein provided shall not be repealed, modiﬁed or amended by the sanggunian concerned within six (6) months from the date of the approval thereof, and may be amended, modiﬁed or repealed by the sanggunian within three (3) years thereafter by a vote of three-fourths (3/4) of all its members: Provided, That in case of barangays, the period shall be eighteen (18) months after the approval thereof. Section 126. Local Referendum Deﬁned. - Local referendum is the legal process whereby the registered voters of the local government units may approve, amend or reject any ordinance enacted by the sanggunian. The local referendum shall be held under the control and direction of the COMELEC within sixty (60) days in case of provinces and cities, forty-ﬁve (45) days in case of municipalities and thirty (30) days in case of barangays. The COMELEC shall certify and proclaim the results of the said referendum. Section 127. Authority of Courts. - Nothing in this Chapter shall prevent or preclude the proper courts from declaring null and void any proposition approved pursuant to this Chapter for violation of the Constitution or want of capacity of the sanggunian concerned to enact the said measure. Section 129. Power to Create Sources of Revenue. - Each local government unit shall exercise its power to create its own sources of revenue and to levy taxes, fees, and charges subject to the provisions herein, consistent with the basic policy of local autonomy. Such taxes, fees, and charges shall accrue exclusively to the local government units. Section 130. Fundamental Principles. - The following fundamental principles shall govern the exercise of the taxing and other revenue-raising powers of local government units: (a) Taxation shall be uniform in each local government unit; (b) Taxes, fees, charges and other impositions shall: 1. be equitable and based as far as practicable on the taxpayer's ability to pay; 2. be levied and collected only for public purposes; 3. not be unjust, excessive, oppressive, or conﬁscatory; 4. not be contrary to law, public policy, national economic policy, or in the restraint of trade; (c) The collection of local taxes, fees, charges and other impositions shall in no case be let to any private person; (d) The revenue collected pursuant to the provisions of this Code shall inure solely to the beneﬁt of, and be subject to the disposition by, the local government unit levying the tax, fee, charge or other imposition unless otherwise speciﬁcally provided herein; and, (e) Each local government unit shall, as far as practicable, evolve a progressive system of taxation. Section 132. Local Taxing Authority. - The power to impose a tax, fee, or charge or to generate revenue under this Code shall be exercised by the sanggunian of the local government unit concerned through an appropriate ordinance. Section 133. Common Limitations on the Taxing Powers of Local Government Units. - Unless otherwise provided herein, the exercise of the taxing powers of provinces, cities, municipalities, and barangays shall not extend to the levy of the following: (a) Income tax, except when levied on banks and other ﬁnancial institutions; (b) Documentary stamp tax; (c) Taxes on estates, inheritance, gifts, legacies and other acquisitions mortis causa, except as otherwise provided herein; (d) Customs duties, registration fees of vessel and wharfage on wharves, tonnage dues, and all other kinds of customs fees, charges and dues except wharfage on wharves constructed and maintained by the local government unit concerned; (e) Taxes, fees, and charges and other impositions upon goods carried into or out of, or passing through, the territorial jurisdictions of local government units in the guise of charges for wharfage, tolls for bridges or otherwise, or other taxes, fees, or charges in any form whatsoever upon such goods or merchandise; (f) Taxes, fees or charges on agricultural and aquatic products when sold by marginal farmers or ﬁshermen; (g) Taxes on business enterprises certiﬁed to by the Board of Investments as pioneer or non-pioneer for a period of six (6) and four (4) years, respectively from the date of registration; (h) Excise taxes on articles enumerated under the national Internal Revenue Code, as amended, and taxes, fees or charges on petroleum products; (i) Percentage or value-added tax (VAT) on sales, barters or exchanges or similar transactions on goods or services except as otherwise provided herein; (j) Taxes on the gross receipts of transportation contractors and persons engaged in the transportation of passengers or freight by hire and common carriers by air, land or water, except as provided in this Code; (k) Taxes on premiums paid by way or reinsurance or retrocession; (l) Taxes, fees or charges for the registration of motor vehicles and for the issuance of all kinds of licenses or permits for the driving thereof, except tricycles; (m) Taxes, fees, or other charges on Philippine products actually exported, except as otherwise provided herein; (n) Taxes, fees, or charges, on Countryside and Barangay Business Enterprises and cooperatives duly registered under R.A. No. 6810 and Republic Act Numbered Sixty-nine hundred thirty-eight (R.A. No. 6938) otherwise known as the "Cooperative Code of the Philippines" respectively; and (o) Taxes, fees or charges of any kind on the National Government, its agencies and instrumentalities, and local government units. Section 135. Tax on Transfer of Real Property Ownership. (a) The province may impose a tax on the sale , donation, barter, or on any other mode of transferring ownership or title of real property at the rate of not more than ﬁfty percent (50%) of the one percent (1%) of the total consideration involved in the acquisition of the property or of the fair market value in case the monetary consideration involved in the transfer is not substantial, whichever is higher. The sale, transfer or other disposition of real property pursuant to R.A. No. 6657 shall be exempt from this tax. (b) For this purpose, the Register of Deeds of the province concerned shall, before registering any deed, require the presentation of the evidence of payment of this tax. The provincial assessor shall likewise make the same requirement before cancelling an old tax declaration and issuing a new one in place thereof, Notaries public shall furnish the provincial treasurer with a copy of any deed transferring ownership or title to any real property within thirty (30) days from the date of notarization. (c) It shall be the duty of the seller, donor, transferor, executor or administrator to pay the tax herein imposed within sixty (60) days from the date of the execution of the deed or from the date of the decedent's death. Section 136. Tax on Business of Printing and Publication. - The province may impose a tax on the business of persons engaged in the printing and/or publication of books, cards, posters, leaﬂets, handbills, certiﬁcates, receipts, pamphlets, and others of similar nature, at a rate not exceeding ﬁfty percent (50%) of one percent (1%) of the gross annual receipts for the preceding calendar year. In the case of a newly started business, the tax shall not exceed one-twentieth (1/20) of one percent (1%) of the capital investment. In the succeeding calendar year, regardless of when the business started to operate, the tax shall be based on the gross receipts for the preceding calendar year, or any fraction thereof, as provided herein. The receipts from the printing and/or publishing of books or other reading materials prescribed by the Department of Education, Culture and Sports as school texts or references shall be exempt from the tax herein imposed. Section 137. Franchise Tax. - Notwithstanding any exemption granted by any law or other special law, the province may impose a tax on businesses enjoying a franchise, at the rate not exceeding ﬁfty percent (50%) of one percent (1%) of the gross annual receipts for the preceding calendar year based on the incoming receipt, or realized, within its territorial jurisdiction. In the case of a newly started business, the tax shall not exceed one-twentieth (1/20) of one percent (1%) of the capital investment. In the succeeding calendar year, regardless of when the business started to operate, the tax shall be based on the gross receipts for the preceding calendar year, or any fraction thereon, as provided herein. Section 138. Tax on Sand, Gravel and Other Quarry Resources. - The province may levy and collect not more than ten percent (10%) of fair market value in the locality per cubic meter of ordinary stones, sand, gravel, earth, and other quarry resources, as deﬁned under the National Internal Revenue Code, as amended, extracted from public lands or from the beds of seas, lakes, rivers, streams, creeks, and other public waters within its territorial jurisdiction. The permit to extract sand, gravel and other quarry resources shall be issued exclusively by the provincial governor, pursuant to the ordinance of the sangguniang panlalawigan. The proceeds of the tax on sand, gravel and other quarry resources shall be distributed as follows: (1) Province - Thirty percent (30%); (2) Component City or Municipality where the sand, gravel, and other quarry resources are extracted - Thirty percent (30%); and (3) Barangay where the sand, gravel, and other quarry resources are extracted - Forty percent (40%). Section 139. Professional Tax. - (a) The province may levy an annual professional tax on each person engaged in the exercise or practice of his profession requiring government examination at such amount and reasonable classiﬁcation as the sangguniang panlalawigan may determine but shall in no case exceed Three hundred pesos (P300.00). (b) Every person legally authorized to practice his profession shall pay the professional tax to the province where he practices his profession or where he maintains his principal oCice in case he practices his profession in several places: Provided, however, That such person who has paid the corresponding professional tax shall be entitled to practice his profession in any part of the Philippines without being subjected to any other national or local tax, license, or fee for the practice of such profession. (c) Any individual or corporation employing a person subject to professional tax shall require payment by that person of the tax on his profession before employment and annually thereafter. (d) The professional tax shall be payable annually, on or before the thirty-ﬁrst (31st) day of January. Any person ﬁrst beginning to practice a profession after the month of January must, however, pay the full tax before engaging therein. A line of profession does not become exempt even if conducted with some other profession for which the tax has been paid. Professionals exclusively employed in the government shall be exempt from the payment of this tax. (e) Any person subject to the professional tax shall write in deeds, receipts, prescriptions, reports, books of account, plans and designs, surveys and maps, as the case may be, the number of the oCicial receipt issued to him. Section 140. Amusement Tax. - (a) The province may levy an amusement tax to be collected from the proprietors, lessees, or operators of theaters, cinemas, concert halls, circuses, boxing stadia, and other places of amusement at a rate of not more than thirty percent (30%) of the gross receipts from admission fees. (b) In the case of theaters or cinemas, the tax shall ﬁrst be deducted and withheld by their proprietors, lessees, or operators and paid to the provincial treasurer before the gross receipts are divided between said proprietors, lessees, or operators and the distributors of the cinematographic ﬁlms. (c) The holding of operas, concerts, dramas, recitals, painting and art exhibitions, ﬂower shows, musical programs, literary and oratorical presentations, except pop, rock, or similar concerts shall be exempt from the payment of the tax hereon imposed. (d) The sangguniang panlalawigan may prescribe the time, manner, terms and conditions for the payment of tax. In case of fraud or failure to pay the tax, the sangguniang panlalawigan may impose such surcharges, interest and penalties as it may deem appropriate. (e) The proceeds from the amusement tax shall be shared equally by the province and the municipality where such amusement places are located. Section 141. Annual Fixed Tax For Every Delivery Truck or Van of Manufacturers or Producers, Wholesalers of, Dealers, or Retailers in, Certain Products. - (a) The province may levy an annual ﬁxed tax for every truck, van or any vehicle used by manufacturers, producers, wholesalers, dealers or retailers in the delivery or distribution of distilled spirits, fermented liquors, soft drinks, cigars and cigarettes, and other products as may be determined by the sangguniang panlalawigan, to sales outlets, or consumers, whether directly or indirectly, within the province in an amount not exceeding Five hundred pesos (P500.00). (b) The manufacturers, producers, wholesalers, dealers and retailers referred to in the immediately foregoing paragraph shall be exempt from the tax on peddlers prescribed elsewhere in this Code. Section 143. Tax on Business. - The municipality may impose taxes on the following businesses: (a) On manufacturers, assemblers, repackers, processors, brewers, distillers, rectiﬁers, and compounders of liquors, distilled spirits, and wines or manufacturers of any article of commerce of whatever kind or nature (b) On wholesalers, distributors, or dealers in any article of commerce of whatever kind or nature (c) On exporters, and on manufacturers , millers, producers, wholesalers, distributors, dealers or retailers of essential commodities enumerated hereunder at a rate not exceeding one-half (½) of the rates prescribed under subsection (a), (b) and (d) of this Section: \ 1. Rice and corn; 2. Wheat or cassava flour, meat, dairy products, locally manufactured, processed or preserved food, sugar, salt and other agricultural, marine, and fresh water products, whether in their original state or not; 3. Cooking oil and cooking gas; 4. Laundry soap, detergents, and medicine; 5. Agricultural implements. equipment and post-harvest facilities, fertilizers, pesticides, insecticides, herbicides and other farm inputs; 6. Poultry feeds and other animal feeds; 7. School supplies; and 8. Cement. (d) On retailers (e) On contractors and other independent contractors (f) On banks and other financial institutions, at a rate not exceeding fifty percent (50%) of one percent (1%) on the gross receipts of the preceding calendar year derived from interest, commissions and discounts from lending activities, income from financial leasing, dividends, rentals on property and profit from exchange or sale of property, insurance premium. (g) On peddlers engaged in the sale of any merchandise or article of commerce, at a rate not exceeding Fifty pesos (P50.00) per peddler annually. (h) On any business, not otherwise specified in the preceding paragraphs, which the sanggunian concerned may deem proper to tax: Provided, That on any business subject to the excise, value-added or percentage tax under the National Internal Revenue Code, as amended, the rate of tax shall not exceed two percent (2%) of gross sales or receipts of the preceding calendar year. Section 146. Payment of Business Taxes. - (a) The taxes imposed under Section 143 shall be payable for every separate or distinct establishment or place where business subject to the tax is conducted and one line of business does not become exempt by being conducted with some other business for which such tax has been paid. The tax on a business must be paid by the person conducting the same. (b) In cases where a person conducts or operates two (2) or more of the businesses mentioned in Section 143 of this Code which are subject to the same rate of tax, the tax shall be computed on the combined total gross sales or receipts of the said two (2) or more related businesses. (c) In cases where a person conducts or operates two (2) or more businesses mentioned in Section 143 of this Code which are subject to diCerent rates of tax, the gross sales or receipts of each business shall be separately reported for the purpose of computing the tax due from each business. Section 147. Fees and Charges. - The municipality may impose and collect such reasonable fees and charges on business and occupation and, except as reserved to the province in Section 139 of this Code, on the practice of any profession or calling, commensurate with the cost of regulation, inspection and licensing before any person may engage in such business or occupation, or practice such profession or calling. Section 148. Fees for Sealing and Licensing of Weights and Measures. - (a) The municipality may levy fees for the sealing and licensing of weights and measures at such reasonable rates as shall be prescribed by the sangguniang bayan. (b) The sangguniang bayan shall prescribe the necessary regulations for the use of such weights and measures, subject to such guidelines as shall be prescribed by the Department of Science and Technology. The sanggunian concerned shall, by appropriate ordinance, penalize fraudulent practices and unlawful possession or use of instruments of weights and measures and prescribe the criminal penalty therefor in accordance with the provisions of this Code. Provided, however, That the sanggunian concerned may authorize the municipal treasurer to settle an oCense not involving the commission of fraud before a case therefor is ﬁled in court, upon payment of a compromise penalty of not less than Two hundred pesos (P200.00). Section 149. Fishery Rentals, Fees and Charges. - (a) Municipalities shall have the exclusive authority to grant ﬁshery privileges in the municipal waters and impose rentals, fees or charges therefor in accordance with the provisions of this Section. (b) The sangguniang bayan may: 1. Grant ﬁshery privileges to erect ﬁsh corrals, oysters, mussels or other aquatic beds or bangus fry areas, within a deﬁnite zone of the municipal waters, as determined by it: Provided, however, That duly registered organizations and cooperatives of marginal ﬁshermen shall have the preferential right to such ﬁshery privileges: Provided, further, That the sangguniang bayan may require a public bidding in conformity with and pursuant to an ordinance for the grant of such privileges: Provided, ﬁnally, That in the absence of such organizations and cooperatives or their failure to exercise their preferential right, other parties may participate in the public bidding in conformity with the above cited procedure. 2. Grant the privilege to gather, take or catch bangus fry, prawn fry or kawag-kawag or fry of other species and ﬁsh from the municipal waters by nets, traps or other ﬁshing gears to marginal ﬁshermen free of any rental, fee, charge or any other imposition whatsoever. 3. Issue licenses for the operation of ﬁshing vessels of three (3) tons or less for which purpose the sangguniang bayan shall promulgate rules and regulations regarding the issuances of such licenses to qualiﬁed applicants under existing laws. Provided, however, That the sanggunian concerned shall, by appropriate ordinance, penalize the use of explosives, noxious or poisonous substances, electricity, muro-ami, and other deleterious methods of ﬁshing and prescribe a criminal penalty therefor in accordance with the provisions of this Code: Provided, ﬁnally, That the sanggunian concerned shall have the authority to prosecute any violation of the provisions of applicable ﬁshery laws. Section 150. Situs of the Tax. - (a) For purposes of collection of the taxes under Section 143 of this Code, manufacturers, assemblers, repackers, brewers, distillers, rectiﬁers and compounders of liquor, distilled spirits and wines, millers, producers, exporters, wholesalers, distributors, dealers, contractors, banks and other ﬁnancial institutions, and other businesses, maintaining or operating branch or sales outlet elsewhere shall record the sale in the branch or sales outlet making the sale or transaction, and the tax thereon shall

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