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THE LOCAL GOVERNMENT CODE OF THE PHILIPPINES BOOK I GENERAL PROVISIONS TITLE ONE. - BASIC PRINCIPLES CHAPTER 1. - THE CODE:POLICY AND APPLICATION SECTION1.Title.-ThisActshallbeknownandcitedasthe"Local Government Code of 1991".SEC.2.DeclarationofPolicy.-(a)Itisherebydeclaredtheolicyo!the Statethattheterritorialandoliticals"bdi#isionso!theStateshallen$oy %en"ine and &eanin%!"l local a"tono&y to enable the& to attain their !"llest de#elo&entassel!-reliantco&&"nitiesand&akethe&&oree!!ecti#e artners in the attain&ent o! national %oals. Toward this end' the State shall ro#ide!ora&oreresonsi#eandacco"ntablelocal%o#ern&entstr"ct"re instit"tedthro"%hasyste&o!decentrali(ationwherebylocal%o#ern&ent "nits shall be %i#en &ore owers' a"thority' resonsibilities' and reso"rces. The rocess o! decentrali(ation shall roceed !ro& the national%o#ern&ent to the local %o#ern&ent "nits.cralaw (b)Itisalsotheolicyo!theStatetoens"retheacco"ntabilityo!local %o#ern&ent"nitsthro"%htheinstit"tiono!e!!ecti#e&echanis&so!recall' initiati#e and re!erend"&.cralaw (c)Itislikewisetheolicyo!theStatetore)"ireallnationala%enciesand o!!icestocond"cteriodiccons"ltationswitharoriatelocal%o#ern&ent "nits'non-%o#ern&entalandeole*sor%ani(ations'andotherconcerned sectorso!theco&&"nitybe!oreanyro$ectorro%ra& isi&le&entedin their resecti#e $"risdictions.cralaw SEC.+.OperativePrinciplesofDecentralization.-The!or&"lationand i&le&entation o! olicies and &eas"res on local a"tono&y shall be %"ided by the !ollowin% oerati#e rinciles,chanrobles #i rt"al law library(a)Thereshallbeane!!ecti#eallocationa&on%thedi!!erentlocal %o#ern&ent "nits o! their resecti#e owers' !"nctions' resonsibilities' and reso"rces-(b)Thereshallbeestablishedine#erylocal%o#ern&ent"nitan acco"ntable'e!!icient'anddyna&icor%ani(ationalstr"ct"reandoeratin% &echanis& that will &eet the riority needs and ser#ice re)"ire&ents o! its co&&"nities-(c)S"b$ecttoci#ilser#icelaw'r"lesandre%"lations'localo!!icialsand e&loyeesaidwhollyor&ainly!ro&local!"ndsshallbeaointedor re&o#ed'accordin%to&eritand!itness'bythearoriateaointin% a"thority-(d)The#estin%o!d"ty'resonsibility'andacco"ntabilityinlocal %o#ern&ent"nitsshallbeacco&aniedwithro#ision!orreasonably ade)"ate reso"rces to dischar%e their owers and e!!ecti#ely carry o"t their !"nctions- hence' they shall ha#e the ower to create and broaden their own so"rceso!re#en"eandtheri%httoa$"stshareinnationalta.esandan e)"itableshareintheroceedso!the"tili(ationandde#elo&ento!the national wealth within their resecti#e areas-(e) /ro#inces with resect to co&onent cities and &"nicialities' and cities and&"nicialitieswithresecttoco&onentbaran%ays'shallens"rethat theactso!theirco&onent"nitsarewithinthescoeo!theirrescribed owers and !"nctions-(!) 0ocal %o#ern&ent "nits &ay %ro" the&sel#es' consolidate or coordinate theire!!orts'ser#ices'andreso"rces!or"rosesco&&onlybene!icialto the&-(%)Thecaabilitieso!local%o#ern&ent"nits'eseciallythe&"nicialities andbaran%ays'shallbeenhancedbyro#idin%the&withoort"nitiesto articiate acti#ely in the i&le&entation o! national ro%ra&s and ro$ects-(h)Thereshallbeacontin"in%&echanis&toenhancelocala"tono&ynot onlybyle%islati#eenablin%actsb"talsobyad&inistrati#eand or%ani(ational re!or&s-(i)0ocal%o#ern&ent"nitsshallsharewiththenational%o#ern&entthe resonsibilityinthe&ana%e&entand&aintenanceo!ecolo%icalbalance within their territorial $"risdiction' s"b$ect to the ro#isions o! this Code and national olicies-($) E!!ecti#e &echanis&s !or ens"rin% the acco"ntability o! local %o#ern&ent "nitstotheirresecti#econstit"entsshallbestren%thenedinorderto "%radecontin"ally the )"ality o! local leadershi-(k)Thereali(ationo!locala"tono&yshallbe!acilitatedthro"%hi&ro#ed coordination o! national %o#ern&ent olicies and ro%ra&s and e.tension o! ade)"ate technical and &aterial assistance to less de#eloed and deser#in% local %o#ern&ent "nits-(l) The articiation o! the ri#ate sector in local %o#ernance' artic"larly in the deli#ery o! basic ser#ices' shall be enco"ra%ed to ens"re the #iability o! local a"tono&y as an alternati#e strate%y !or s"stainablede#elo&ent- and cralaw(&)Thenational%o#ern&entshallens"rethatdecentrali(atioontrib"testo thecontin"in%i&ro#e&ento!theer!or&anceo!local%o#ern&ent"nits and the )"ality o! co&&"nity li!e.cralaw SEC. 1. Scope of Application. - This Code shall aly to all ro#inces' cities' &"nicialities' baran%ays' and other olitical s"bdi#isions as &ay be created by law' and' to the e.tent herein ro#ided' to o!!icials' o!!ices' or a%encies o! the national %o#ern&ent.cralaw SEC.2.!lesof"nterpretation.-Intheinterretationo!thero#isionso! this Code' the !ollowin% r"les shall aly,chanrobles #i rt"al law li brary(a)Anyro#isiononaowero!alocal%o#ern&ent"nitshallbeliberally interreted in its !a#or' and in case o! do"bt' any )"estion thereon shall be resol#ed in !a#or o! de#ol"tion o! owers and o! the lower local %o#ern&ent "nit. Any !air and reasonable do"bt as to the e.istence o! the ower shall be interreted in !a#or o! the local %o#ern&ent "nit concerned-(b)Incaseo!do"bt'anyta.ordinanceorre#en"e&eas"reshallbe constr"ed strictly a%ainst the local %o#ern&ent "nit enactin% it' and liberally in!a#oro!theta.ayer.Anyta.e.e&tion'incenti#eorrelie!%rantedby anylocal%o#ern&ent"nit"rs"anttothero#isionso!thisCodeshallbe constr"ed strictly a%ainst the erson clai&in% it.cralaw (c) The %eneral wel!are ro#isions in this Code shallbe liberally interreted to%i#e&oreowerstolocal%o#ern&ent"nitsinacceleratin%econo&ic de#elo&entand"%radin%the)"alityo!li!e!ortheeoleinthe co&&"nity-(d) 3i%hts and obli%ations e.istin% on the date o! e!!ecti#ity o! this Code and arisin%o"to!contractsoranyotherso"rceo!restationin#ol#in%alocal %o#ern&ent"nitshallbe%o#ernedbytheori%inalter&sandconditionso! said contracts or the law in !orce at the ti&e s"ch ri%hts were #ested- and cralaw(e)In the resol"tion o! contro#ersies arisin% "nder this Code where no le%al ro#isionor$"risr"dencealies'resort&aybehadtothec"sto&sand traditions in the lace where the contro#ersies take lace.cralawCHAPTER 2. - GENERAL POWERS AND ATTRIBUTES OF LOCAL GOVERNMENT UNITS SEC.4.A!t#oritytoCreateLocalGovernment$nits.-Alocal%o#ern&ent "nit&aybecreated'di#ided'&er%ed'abolished'oritsbo"ndaries s"bstantiallyalteredeitherbylawenactedbyCon%ressinthecaseo!a ro#ince'city'&"niciality'oranyotheroliticals"bdi#ision'orby ordinanceassedbythesan%%"nian%anlalawi%anorsan%%"nian% anl"n%sod concerned in the case o! a baran%ay located within its territorial $"risdiction's"b$ecttos"chli&itationsandre)"ire&entsrescribedinthis Code.SEC. 5. Creation and Conversion. - As a %eneral r"le' the creation o! alocal %o#ern&ent"nitoritscon#ersion!ro&onele#eltoanotherle#elshallbe basedon#eri!iableindicatorso!#iabilityandro$ectedcaacitytoro#ide ser#ices' to wit,chanrobles #i rt"al law library(a)Inco&e.-It&"stbes"!!icient'basedonaccetablestandards'to ro#ide!orallessential%o#ern&ent!acilitiesandser#icesandsecial !"nctions co&&ens"- rate with the si(e o! its o"lation' as e.ected o! the local %o#ern&ent "nit concerned-(b)/o"lation.-Itshallbedeter&inedasthetotaln"&bero!inhabitants within the territorial $"risdiction o! the local %o#ern&ent "nit concerned- and cralaw(c)0andArea.-It&"stbeconti%"o"s'"nlessitco&risestwoor&ore islandsorissearatedbyalocal%o#ern&ent"nitindeendento!the others- roerly identi!ied by &etes and bo"nds with technical descritions- ands"!!icienttoro#ide!ors"chbasicser#icesand!acilitiesto&eetthe re)"ire&ents o! its o"lace. Co&liance with the !ore%oin% indicators shall beattestedtobythe6eart&ento!7inance(6O7)'theNationalStatistics O!!ice (NSO)' and the 0ands 8ana%e&ent 9"rea"(089) o! the 6eart&ent o! En#iron&ent and Nat"ral 3eso"rces(6EN3).cralaw SEC.:.Divisionand%er&er.-6i#isionand&er%ero!e.istin%local %o#ern&ent"nitsshallco&lywiththesa&ere)"ire&entsherein rescribed !or their creation, /ro#ided' howe#er' That s"ch di#ision shall not red"ce the inco&e' o"lation' or land area o! the local %o#ern&ent "nit or "nitsconcernedtolessthanthe&ini&"&re)"ire&entsrescribedinthis Code,/ro#ided'!"rther'Thattheinco&eclassi!icationo!theori%inallocal %o#ern&ent "nit or "nits shall not !all below its c"rrent inco&e classi!ication riortos"chdi#ision.Theinco&eclassi!icationo!local%o#ern&ent"nits shallbe"datedwithinsi.(4)&onths!ro&thee!!ecti#ityo!thisCodeto re!lectthechan%esintheir!inancialositionres"ltin%!ro&theincreased re#en"es as ro#ided herein.cralaw SEC. ;. A'olition of Local Government $nits. - A local %o#ern&ent "nit &ay be abolished when its inco&e' o"lation' or land area has been irre#ersibly red"cedtolessthanthe&ini&"&standardsrescribed!oritscreation "nder 9ook III o! this Code' as certi!ied by the national a%encies &entioned inSection15hereo!toCon%ressortothesan%%"nianconcerned'asthe case &ay be.cralaw Thelaworordinanceabolishin%alocal%o#ern&ent"nitshallseci!ythe ro#ince'city'&"niciality'orbaran%aywithwhichthelocal%o#ern&ent "nitso"%ht to be abolished will be incororated or &er%ed.cralaw SEC.1