legal and historical background foundation of local government

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LEGAL AND HISTORICAL BACKGROUND/FOUNDATI

ON OF LOCAL GOVERNMENT


I. HISTORICAL BACKGROUND

Local Government Administration from the Spanish regime to the Fourth Republic were characterized by a highly centralized regime Spaniards (1521) – faced with Filipino revolts and was forced to lose the Philippines to the United States of America in 1898

*(First Philippine Republic 1896-1898)

Americans – attempts in a short – lived policy of decentralization and was overtaken by the centralist policies of government during Philippine Commonwealth in 1935


Japanese (1941 – WW II) – Japanese Sponsored Government

(conquerors) - never accepted in the provinces and elsewhere 3rd Philippine Republic (1946) – gained independence from United States

- the issue of the local autonomy became meaningless

Local Autonomy Act of 1959, Barrio Charter and Decentralization Act of 1967

- were the national legislations passes in response for a self – rule concept


September 1972 – Martial Law was declared

During Marcos Authoritarian years (1972-1986), a ministry of Local Government was instituted to invigorate provincial, municipal and barangay governments.

October 15, 198 - a new constitution was adopted

October 10, 1991 - RA 7160 otherwise known as the Local Government Code of 1991 was approved which was

took effect on January 1, 1992.


II. RELEVANT PROVISION OF LOCAL GOVERNMENT

CODE

A.Constitutional Provision

The constitution basis in the enactment of the Local Government Code of 1991

ARTICLE X of the 1987 PHILIPPINE CONSTITUTION

“LOCAL GOVERNMENT”


Section 1. The territorial and political subdivision of the Republic of the Philippines is the provinces, cities, municipalities, and barangay. There shall be autonomous regions in Muslim Mindanao and the Cordilleras as hereinafter provided.

LGUs (Local Government Units)•Provinces

Largest local administrative unit headed by an elective governor and aided by a vice-governor, also electedAnnual income of not less than 20M, contiguous territory of at least 2,000 sq. km. and population of not less than 250,000


MunicipalitiesSubordinate to the provinceAnnual income of 2.5M, contiguous territory of at least 50 sq. km. and population of not less than 25,000

BarangaysLowest level of local administrative unitContiguous territory 2,000 inhabitants

CitiesAnnual income of not less than 50M, and a

population of not less than 20,000Component cities : subject to general supervision by the province


Autonomous Regional GovernmentCreated by special lawARMM/Cordillera Region

Section 2. The territorial and political subdivision shall enjoy local autonomy.Section 3. The Congress shall enact a local government code which shall provide for a more responsive and accountable local government structure instituted through a system of decentralization with effective mechanism of recall, initiative, and referendum, allocate among different local government units their powers, responsibilities, and resources, and provide for the qualification, election, appointment and removal, term, salaries, powers and functions and duties of local officials, and all other matters relating to the organization and operation of the local units.


Section 4. The President of the Philippines shall exercise general supervision over local government. Provinces with respect to component cities and municipalities, and cities and municipalities with respect to component barangays, shall ensure that the acts of their component units are within the scope of their prescribed powers and functions.

Section 5. Each local government unit shall have the power to create its own sources of revenues and to levy taxes, fees and charges subject to such guidelines and limitations as the congress may provide, consistent with the basic policy of local autonomy. Such taxes, fees and charges shall accrue exclusively to the local governments.


Section 6. Local government units shall have a just share, as determined by law, in the national taxes which shall be automatically released to them.

Section 7. Local governments shall be entitled to an equitable share in the proceeds of the utilization and development of the national wealth within their respective areas, in the manner provided by law, including sharing the same with the inhabitants by way of direct benefits.


POWERS/ATTRIBUTES OF LGUs

Power to create, divide, merge barangaysDelivery of basic services and facilitiesCreate own sources of revenue and wealthPower of Eminent DomainCorporate or Municipal PowersPower to negotiate and accept grants and donationsPower to reclassify agricultural lands


B.The Major Features of RA 7160

1. Section 17 of LGC 1991. Basic Services and Facilities

Local government units shall endeavor to be self – reliant and shall continue exercising the powers and discharge the duties and functions currently vested upon them. They shall also discharge the functions and responsibilities of national agencies and offices devolved to them pursuant to this code. Local government shall likewise exercise such

other power and discharge such other functions and responsibilities as are necessary, appropriate or incidental to efficient and effective provision of the basic services and facilities enumerated therein.


Devolved Basic Services

1. Agricultural Extension & on-site research2. Community based forestry projects3. Field health and hospital service and other tertiary health services4. Public works and infrastructure projects funded out of local funds5. School building program6. Tourism facilities and tourism promotion and development7. Telecommunication service for provinces and cities8. Housing projects for provinces and cities


Devolve Regulatory functions

1. Inspection of Food Products2. Adoption of quarantine

regulations3. Enforcement of National

Building Code4. Regulation of tricycle operation5. Licensing of cockpits

2.Local government code granted LGUs the power to develop their own organizational structure, staffing pattern and appoint officials wholly paid by the local government.


2.1 Section 76 of LGC 1991. Organization Structure & Staffing Pattern Every local government unit shall design and implement own organizational structure and staffing pattern taking consideration its service requirements and financial, subject to the minimum standards and guidelines prescribed by the Civil Service Commission.

2.2Section 447 of LGC 1991. Power, duties, functions and compensation a. The Sangguniang Bayan as the Legislative Body of the municipality shall enact ordinances, approved resolutions and appropriate funds for the general welfare of the municipality and its inhabitants pursuant to the section 16 of this code and in the power exercise of the corporate powers of the municipality and provided for under section 22 of this code shall


i. Review all ordinances approved by the sangguniang and executive order issued by the Punong Barangay to determine whether these are within the scope of the powers of the Sanggunian and Punong Barangay,

ii. Subject to the provision of this code and pertinent laws, determine the powers and duties of officials and employees of the municipality,

iii. Determine position and the salaries, wages, allowances and other emoluments and benefit of officials and employees paid wholly o mainly from municipal fund and provide for expenditures necessary for the proper conduct of programs, projects, services and activities of the

municipal government


3. It increased the share of the local government units in the share in the internal revenue taxes as well as taxes in the utilization and development of national wealth.

3.1 Section 284 of PCG 1991. Allotment of Internal Revenue Taxes

Local government units shall have a share in the national internal revenue taxes based on the collection of the 3rd fiscal year preceding the current fiscal year as follows:

a. on the 1st year of the effectivity, 30%b. on the 2nd year, 35%c. on the 3rd year and thereafter, 40%


3.2 Section 285 of LGC 1991. Allocation of Local Government Units

The share of local government units in the IRA shall be allocated in the following manner: a. Provinces – 23%

b. Cities – 23%c. Municipalities – 34%d. Barangays – 20%

Provided, however, that the share of each province, city and municipality shall be determined on the basis of the following formula:

a. Population – 50%b. Land area – 25%c. Equal sharing – 25%


Provided further that the share of each Barangay with a population of not less than 100 inhabitants shall not be less than Php 80,000.00 per annum chargeable against the 20% share of the barangay from the IRA, and the balance to be allocated on the basis of the following formula:

a. On the 1st year of effectivity1. Population – 40%2. Equal sharing – 60%

b. On the 2nd year

1. Population – 50%2. Equal sharing – 50%


c. On the 3rd year and thereafter1. Population – 60%2. Equal sharing – 40%

3.3 Section 290 of PGC 1991. Amount of share of Local Government Unit Local government units shall in addition to the IRA have a share of 40% of the gross collection derived by the national government from the preceding fiscal year from mining taxes, royalties, forestry charges, and such other taxes, fees or charges, including related surcharges, interest, or fines and from its share in any co-production, joint venture or production sharing agreement in the utilization and development of the national wealth within their territorial jurisdiction.


SOURCES OF REVENUES National Government1.IRA2.Share from taxes, fees and charges collected from the development and utilization of national wealth3.Other grants and subsidies4.Debt relief program Locally Generated1.Real Property taxes2.Business taxes3.Other local taxes4.Regulatory fees5.Operation of Local Economic Enterprises6.Tolls and users charges


Other Income1.Sales/Lease of Assets2. Credits3.BOT scheme4.Grants

3.4 Section 18 of LGC 1991. Power to generate and apply resources

Local government unit shall have the power and authority to establish an organization that shall be responsible for the efficient and effective implementation of their development plans, programs, objectives and priorities, to create their own sources of revenue and to levy taxes, fees and charges.


4. The code encouraged active and direct participation of civil society, non-governmental organizations and the private sector in the process of local governance by making them formal members of several local special bodies such as local development council.

4.1 Section 34 of LGC 1991. Role of people and non-governmental Organization

Local government units shall promote the establishment and operation of people and non-governmental organizations to become active partners in the pursuit of local autonomy.


MEMBERSHIP IN THE LOCAL SPECIAL BODIES

1.Local Development Council2.Local Health Board3.Local School Board4.Local Peace and Order Council5.Local pre-qualification, Bids and Awards Committee


5. The local government code of 1991 provide the policy context for the emergence of intrepreneural local government by encouraging LGUs to enter into joint venture and partnership with the private sector such as build-operate-transfer arrangement and bond flotation 5.1 Section 35 of LGC 1991. Linkages with people and NGOs

The local government unit may enter into joint venture of such other cooperative arrangements with people and non-governmental organization to engage in the delivery of certain basic services, capability-building and livelihood projects and to develop local enterprises designed to improve productivity and income, diversify agriculture, spur rural industrialization, promote ecological balance and enhance the economic and social well being of the people


SPACES FOR CITIZENS PARTICIPATION

1. Mandatory consultation2. Mandatory public hearing3. Recall4. Initiative and referendum5. Local sectoral representation