BOOK I

GENERAL PROVISIONS (b) There shall be established in every local government unit an
TITLE I accountable, efficient, and dynamic organizational structure and
BASIC PRINCIPLES operating mechanism that will meet the priority needs and service
requirements of its communities;
CHAPTER I
The Code: Policy and Application (c) Subject to civil service law, rules and regulations, local officials
and employees paid wholly or mainly from local funds shall be
Section 1. Title. - This Act shall be known and cited as the "Local appointed or removed, according to merit and fitness, by the
Government Code of 1991". appropriate appointing authority;

Section 2. Declaration of Policy. – (d) The vesting of duty, responsibility, and accountability in local
government units shall be accompanied with provision for reasonably
(a) It is hereby declared the policy of the State that the territorial and adequate resources to discharge their powers and effectively carry
political subdivisions of the State shall enjoy genuine and meaningful out their functions: hence, they shall have the power to create and
local autonomy to enable them to attain their fullest development as broaden their own sources of revenue and the right to a just share in
self-reliant communities and make them more effective partners in national taxes and an equitable share in the proceeds of the
the attainment of national goals. Toward this end, the State shall utilization and development of the national wealth within their
provide for a more responsive and accountable local government respective areas;
structure instituted through a system of decentralization whereby
local government units shall be given more powers, authority, (e) Provinces with respect to component cities and municipalities,
responsibilities, and resources. The process of decentralization shall and cities and municipalities with respect to component barangays,
proceed from the national government to the local government units. shall ensure that the acts of their component units are within the
scope of their prescribed powers and functions;
(b) It is also the policy of the State to ensure the accountability of
local government units through the institution of effective (f) Local government units may group themselves, consolidate or
mechanisms of recall, initiative and referendum. coordinate their efforts, services, and resources commonly beneficial
to them;
(c) It is likewise the policy of the State to require all national agencies
and offices to conduct periodic consultations with appropriate local (g) The capabilities of local government units, especially the
government units, nongovernmental and people's organizations, and municipalities and barangays, shall be enhanced by providing them
other concerned sectors of the community before any project or with opportunities to participate actively in the implementation of
program is implemented in their respective jurisdictions.1awphil.net national programs and projects;

Section 3. Operative Principles of Decentralization. - The (h) There shall be a continuing mechanism to enhance local
formulation and implementation of policies and measures on local autonomy not only by legislative enabling acts but also by
autonomy shall be guided by the following operative principles: administrative and organizational reforms;
(a) There shall be an effective allocation among the different local
government units of their respective powers, functions, (i) Local government units shall share with the national government
responsibilities, and resources; the responsibility in the management and maintenance of ecological
balance within their territorial jurisdiction, subject to the provisions of relief granted by any local government unit pursuant to the provisions
this Code and national policies; of this Code shall be construed strictly against the person claiming it.

(j) Effective mechanisms for ensuring the accountability of local (c) The general welfare provisions in this Code shall be liberally
government units to their respective constituents shall be interpreted to give more powers to local government units in
strengthened in order to upgrade continually the quality of local accelerating economic development and upgrading the quality of life
leadership; for the people in the community;

(k) The realization of local autonomy shall be facilitated through (d) Rights and obligations existing on the date of effectivity of this
improved coordination of national government policies and programs Code and arising out of contracts or any other source of presentation
an extension of adequate technical and material assistance to less involving a local government unit shall be governed by the original
developed and deserving local government units; terms and conditions of said contracts or the law in force at the time
such rights were vested; and
(l) The participation of the private sector in local governance,
particularly in the delivery of basic services, shall be encouraged to (e) In the resolution of controversies arising under this Code where
ensure the viability of local autonomy as an alternative strategy for no legal provision or jurisprudence applies, resort may be had to the
sustainable development; and customs and traditions in the place where the controversies take
place.
(m) The national government shall ensure that decentralization
contributes to the continuing improvement of the performance of CHAPTER II
local government units and the quality of community life. General Powers and Attributes of Local Government Units

Section 4. Scope of Application. - This Code shall apply to all Section 6. Authority to Create Local Government Units. - A local
provinces, cities, municipalities, barangays, and other political government unit may be created, divided, merged, abolished, or its
subdivisions as may be created by law, and, to the extent herein boundaries substantially altered either by law enacted by Congress
provided, to officials, offices, or agencies of the national government. in the case of a province, city, municipality, or any other political
subdivision, or by ordinance passed by the sangguniang
Section 5. Rules of Interpretation. - In the interpretation of the panlalawigan or sangguniang panlungsod concerned in the case of a
provisions of this Code, the following rules shall apply: barangay located within its territorial jurisdiction, subject to such
limitations and requirements prescribed in this Code.
(a) Any provision on a power of a local government unit shall be
liberally interpreted in its favor, and in case of doubt, any question Section 7. Creation and Conversion. - As a general rule, the creation
thereon shall be resolved in favor of devolution of powers and of the of a local government unit or its conversion from one level to another
lower local government unit. Any fair and reasonable doubt as to the level shall be based on verifiable indicators of viability and projected
existence of the power shall be interpreted in favor of the local capacity to provide services, to wit:
government unit concerned;
(a) Income. - It must be sufficient, based on acceptable standards, to
(b) In case of doubt, any tax ordinance or revenue measure shall be provide for all essential government facilities and services and
construed strictly against the local government unit enacting it, and special functions commensurate with the size of its population, as
liberally in favor of the taxpayer. Any tax exemption, incentive or expected of the local government unit concerned;
(b) Population. - It shall be determined as the total number of in a plebiscite called for the purpose in the political unit or units
inhabitants within the territorial jurisdiction of the local government directly affected. Said plebiscite shall be conducted by the
unit concerned; and Commission on Elections (COMELEC) within one hundred twenty
(120) days from the date of effectivity of the law or ordinance
(c) Land Area. - It must be contiguous, unless it comprises two or effecting such action, unless said law or ordinance fixes another
more islands or is separated by a local government unit independent date.
of the others; properly identified by metes and bounds with technical
descriptions; and sufficient to provide for such basic services and Section 11. Selection and Transfer of Local Government Site,
facilities to meet the requirements of its populace. Compliance with Offices and Facilities. -
the foregoing indicators shall be attested to by the Department of
Finance (DOF), the National Statistics Office (NSO), and the Lands (a) The law or ordinance creating or merging local government units
Management Bureau (LMB) of the Department of Environment and shall specify the seat of government from where governmental and
Natural Resources (DENR). corporate services shall be delivered. In selecting said site, factors
relating to geographical centrality, accessibility, availability of
Section 8. Division and Merger. - Division and merger of existing transportation and communication facilities, drainage and sanitation,
local government units shall comply with the same requirements development and economic progress, and other relevant
herein prescribed for their creation: Provided, however, That such considerations shall be taken into account.
division shall not reduce the income, population, or land area of the
local government unit or units concerned to less than the minimum (b) When conditions and developments in the local government unit
requirements prescribed in this Code: Provided, further, That the concerned have significantly changed subsequent to the
income classification of the original local government unit or units establishment of the seat of government, its sanggunian may, after
shall not fall below its current classification prior to such division. public hearing and by a vote of two-thirds (2/3) of all its members,
The income classification of local government units shall be updated transfer the same to a site better suited to its needs. Provided,
within six (6) months from the effectivity of this Code to reflect the however, That no such transfer shall be made outside the territorial
changes in their financial position resulting from the increased boundaries of the local government unit concerned.The old site,
revenues as provided herein. together with the improvements thereon, may be disposed of by the
sale or lease or converted to such other use as the sangguniang
Section 9. Abolition of Local Government Units. - A local concerned may deem beneficial to the local government unit
government unit may be abolished when its income, population, or concerned and its inhabitants.
land area has been irreversibly reduced to less than the minimum
standards prescribed for its creation under Book III of this Code, as (c) Local government offices and facilities shall not be transferred,
certified by the national agencies mentioned in Section 7 hereof to relocated, or converted to other uses unless public hearings are first
Congress or to the sangguniang concerned, as the case may be. conducted for the purpose and the concurrence of the majority of all
The law or ordinance abolishing a local government unit shall specify the members of the sanggunian concerned is obtained.
the province, city, municipality, or barangay with which the local
government unit sought to be abolished will be incorporated or Section 12. Government Centers. - Provinces, cities, and
merged. municipalities shall endeavor to establish a government center where
Section 10. Plebiscite Requirement. - No creation, division, merger, offices, agencies, or branches of the national government, local
abolition, or substantial alteration of boundaries of local government government units, or government-owned or controlled corporations
units shall take effect unless approved by a majority of the votes cast may, as far as practicable, be located. In designating such a center,
the local government unit concerned shall take into account the (2) City roads, avenues, boulevards, thoroughfares, and bridges;
existing facilities of national and local agencies and offices which
may serve as the government center as contemplated under this (3) Public elementary, secondary and vocational or technical
Section. The national government, local government unit or schools, community colleges and non-chartered colleges;
government-owned or controlled corporation concerned shall bear
the expenses for the construction of its buildings and facilities in the (4) City hospitals, health centers and other health facilities; and
government center.
(5) Any other public place or building owned by the city government.
Section 13. Naming of Local Government Units and Public Places,
Streets and Structures. - (c) The sanggunians of component cities and municipalities may, in
consultation with the Philippine Historical Commission, change the
(a) The sangguniang panlalawigan may, in consultation with the name of the following within its territorial jurisdiction:
Philippine Historical Commission (PHC), change the name of the
following within its territorial jurisdiction: (1) City and municipal barangays, upon recommendation of the
sangguniang barangay concerned;
(1) Component cities and municipalities, upon the recommendation
of the sanggunian concerned; (2) City, municipal and barangay roads, avenues, boulevards,
thoroughfares, and bridges;
(2) Provincial roads, avenues, boulevards, thoroughfares, and
bridges; (3) City and municipal public elementary, secondary and vocational
or technical schools, post- secondary and other tertiary schools;
(3) Public vocational or technical schools and other post-secondary
and tertiary schools; (4) City and municipal hospitals, health centers and other health
facilities; and
(4) Provincial hospitals, health centers, and other health facilities;
and (5) Any other public place or building owned by the municipal
government.
(5) Any other public place or building owned by the provincial
government. (d) None of the foregoing local government units, institutions, places,
or buildings shall be named after a living person, nor may a change
(b) The sanggunian of highly urbanized cities and of component of name be made unless for a justifiable reason and, in any case, not
cities whose charters prohibit their voters from voting for provincial oftener than once every ten (10) years. The name of a local
elective officials, hereinafter referred to in this Code as independent government unit or a public place, street or structure with historical,
component cities, may, in consultation with the Philippine Historical cultural, or ethnic significance shall not be changed, unless by a
Commission, change the name of the following within its territorial unanimous vote of the sanggunian concerned and in consultation
jurisdiction: with the PHC.

(1) City barangays, upon the recommendation of the sangguniang (e) A change of name of a public school shall be made only upon the
barangay concerned; recommendation of the local school board concerned.
(f) A change of name of public hospitals, health centers, and other Section 17. Basic Services and Facilities. -
health facilities shall be made only upon the recommendation of the (a) Local government units shall endeavor to be self-reliant and shall
local health board concerned. continue exercising the powers and discharging the duties and
functions currently vested upon them. They shall also discharge the
(g) The change of name of any local government unit shall be functions and responsibilities of national agencies and offices
effective only upon ratification in a plebiscite conducted for the devolved to them pursuant to this Code. Local government units
purpose in the political unit directly affected. shall likewise exercise such other powers and discharge such other
functions and responsibilities as are necessary, appropriate, or
(h) In any change of name, the Office of the President, the incidental to efficient and effective provisions of the basic services
representative of the legislative district concerned, and the Bureau of and facilities enumerated herein.
Posts shall be notified.
(b) Such basic services and facilities include, but are not limited to,
Section 14. Beginning of Corporate Existence. - When a new local the following:
government unit is created, its corporate existence shall commence
upon the election and qualification of its chief executive and a (1) For Barangay:
majority of the members of its sanggunian, unless some other time is
fixed therefor by the law or ordinance creating it. (i) Agricultural support services which include planting materials
distribution system and operation of farm produce collection and
Section 15. Political and Corporate Nature of Local Government buying stations;
Units. - Every local government unit created or recognized under this
Code is a body politic and corporate endowed with powers to be (ii) Health and social welfare services which include maintenance of
exercised by it in conformity with law. As such, it shall exercise barangay health center and day-care center;
powers as a political subdivision of the national government and as a
corporate entity representing the inhabitants of its territory. (iii) Services and facilities related to general hygiene and sanitation,
beautification, and solid waste collection;
Section 16. General Welfare. - Every local government unit shall
exercise the powers expressly granted, those necessarily implied (iv) Maintenance of katarungang pambarangay;
therefrom, as well as powers necessary, appropriate, or incidental for
its efficient and effective governance, and those which are essential (v) Maintenance of barangay roads and bridges and water supply
to the promotion of the general welfare. Within their respective systems;
territorial jurisdictions, local government units shall ensure and
support, among other things, the preservation and enrichment of (vi) Infrastructure facilities such as multi-purpose hall, multipurpose
culture, promote health and safety, enhance the right of the people to pavement, plaza, sports center, and other similar facilities;
a balanced ecology, encourage and support the development of
appropriate and self-reliant scientific and technological capabilities, (vii) Information and reading center; and
improve public morals, enhance economic prosperity and social
justice, promote full employment among their residents, maintain (viii) Satellite or public market, where viable;
peace and order, and preserve the comfort and convenience of their
inhabitants. (2) For a Municipality:
(i) Extension and on-site research services and facilities related to (vi) Solid waste disposal system or environmental management
agriculture and fishery activities which include dispersal of livestock system and services or facilities related to general hygiene and
and poultry, fingerlings, and other seedling materials for aquaculture; sanitation;
palay, corn, and vegetable seed farms; medicinal plant gardens; fruit
tree, coconut, and other kinds of seedling nurseries; demonstration (vii) Municipal buildings, cultural centers, public parks including
farms; quality control of copra and improvement and development of freedom parks, playgrounds, and other sports facilities and
local distribution channels, preferably through cooperatives; equipment, and other similar facilities;
interbarangay irrigation system; water and soil resource utilization
and conservation projects; and enforcement of fishery laws in (viii) Infrastructure facilities intended primarily to service the needs of
municipal waters including the conservation of mangroves; the residents of the municipality and which are funded out of
municipal funds including but not limited to, municipal roads and
(ii) Pursuant to national policies and subject to supervision, control bridges; school buildings and other facilities for public elementary
and review of the DENR, implementation of community-based and secondary schools; clinics, health centers and other health
forestry projects which include integrated social forestry programs facilities necessary to carry out health services; communal irrigation,
and similar projects; management and control of communal forests small water impounding projects and other similar projects; fish
with an area not exceeding fifty (50) square kilometers; ports; artesian wells, spring development, rainwater collectors and
establishment of tree parks, greenbelts, and similar forest water supply systems; seawalls, dikes, drainage and sewerage, and
development projects; flood control; traffic signals and road signs; and similar facilities;

(iii) Subject to the provisions of Title Five, Book I of this Code, health (ix) Public markets, slaughterhouses and other municipal
services which include the implementation of programs and projects enterprises;
on primary health care, maternal and child care, and communicable
and non-communicable disease control services, access to (x) Public cemetery;
secondary and tertiary health services; purchase of medicines,
medical supplies, and equipment needed to carry out the services (xi) Tourism facilities and other tourist attractions, including the
herein enumerated; acquisition of equipment, regulation and supervision of business
concessions, and security services for such facilities; and
(iv) Social welfare services which include programs and projects on
child and youth welfare, family and community welfare, women's (xii) Sites for police and fire stations and substations and municipal
welfare, welfare of the elderly and disabled persons; community- jail;
based rehabilitation programs for vagrants, beggars, street children,
scavengers, juvenile delinquents, and victims of drug abuse; (3) For a Province:
livelihood and other pro-poor projects; nutrition services; and family
planning services; (i) Agricultural extension and on-site research services and facilities
which include the prevention and control of plant and animal pests
(v) Information services which include investments and job and diseases; dairy farms, livestock markets, animal breeding
placement information systems, tax and marketing information stations, and artificial insemination centers; and assistance in the
systems, and maintenance of a public library; 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 (xi) Inter-municipal telecommunications services, subject to national
transfer of appropriate technology; policy guidelines; and

(iii) Pursuant to national policies and subject to supervision, control (xii) Tourism development and promotion programs;
and review of the DENR, enforcement of forestry laws limited to
community-based forestry projects, pollution control law, small-scale (4) For a City:
mining law, and other laws on the protection of the environment; and All the services and facilities of the municipality and province, and in
mini-hydroelectric projects for local purposes; addition thereto, the following:

(iv) Subject to the provisions of Title Five, Book I of this Code, health (1) Adequate communication and transportation facilities;
services which include hospitals and other tertiary health services;
(c) Notwithstanding the provisions of subsection (b) hereof, public
(v) Social welfare services which include programs and projects on works and infrastructure projects and other facilities, programs and
rebel returnees and evacuees; relief operations; and population services funded by the national government under the annual
development services; General Appropriations Act, other special laws, pertinent executive
orders, and those wholly or partially funded from foreign sources, are
(vi) Provincial buildings, provincial jails, freedom parks and other not covered under this Section, except in those cases where the
public assembly areas and similar facilities; local government unit concerned is duly designated as the
implementing agency for such projects, facilities, programs, and
(vii) Infrastructure facilities intended to service the needs of the services.
residence of the province and which are funded out of provincial
funds including, but not limited to, provincial roads and bridges; inter- (d) The designs, plans, specifications, testing of materials, and the
municipal waterworks, drainage and sewerage, flood control, and procurement of equipment and materials at P170 from both foreign
irrigation systems; reclamation projects; and similar facilities; and local sources necessary for the provision of the foregoing
services and facilities shall be undertaken by the local government
(viii) Programs and projects for low-cost housing and other mass unit concerned, based on national policies, standards and guidelines.
dwellings, except those funded by the Social Security System (SSS),
Government Service Insurance System p. 172 (GSIS), and the (e) National agencies or offices concerned shall devolve to local
Home Development Mutual Fund (HDMF): Provided, That national government units the responsibility for the provision of basic services
funds for these programs and projects shall be equitably allocated and facilities enumerated in this Section within six (6) months after
among the regions in proportion to the ratio of the homeless to the the effectivity of this Code. As used in this Code, the term
population; "devolution" refers to the act by which the national government
confers power and authority upon the various local government units
(ix) Investment support services, including access to credit financing; to perform specific functions and responsibilities.

(x) Upgrading and modernization of tax information and collection (f) The national government or the next higher level of local
services through the use of computer hardware and software and government unit may provide or augment the basic services and
other means; 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 (j) To ensure the active participation of the private sector in local
be funded from the share of local government units in the proceeds governance, local government units may, by ordinance, sell, lease,
of national taxes and other local revenues and funding support from encumber, or otherwise dispose of public economic enterprises
the national government, its instrumentalities and government-owned owned by them in their proprietary capacity.Costs may also be
or controlled corporations which are tasked by law to establish and charged for the delivery of basic services or facilities enumerated in
maintain such services or facilities. Any fund or resource available this Section.
for the use of local government units shall be first allocated for the
provision of basic services or facilities enumerated in subsection (b) Section 18. Power to Generate and Apply Resources. - Local
hereof before applying the same for other purposes, unless government units shall have the power and authority to establish an
otherwise provided in this Code. organization that shall be responsible for the efficient and effective
implementation of their development plans, program objectives and
(h) Regional offices of national agencies or offices whose functions priorities; to create their own sources of revenues and to levy taxes,
are devolved to local government units as provided herein shall be fees, and charges which shall accrue exclusively for their use and
phased out within one (1) year from the approval of this Code. Said disposition and which shall be retained by them; to have a just share
national agencies and offices may establish such field units as may in national taxes which shall be automatically and directly released to
be necessary for monitoring purposes and providing technical them without need of any further action; to have an equitable share
assistance to local government units. The properties, equipment, and in the proceeds from the utilization and development of the national
other assets of these regional offices shall be distributed to the local wealth and resources within their respective territorial jurisdictions
government units in the region in accordance with the rules and including sharing the same with the inhabitants by way of direct
regulations issued by the oversight committee created under this benefits; to acquire, develop, lease, encumber, alienate, or otherwise
Code. dispose of real or personal property held by them in their proprietary
capacity and to apply their resources and assets for productive,
(i) The devolution contemplated in this Code shall include the developmental, or welfare purposes, in the exercise or furtherance of
transfer to local government units of the records, equipment, and their governmental or proprietary powers and functions and thereby
other assets and personnel of national agencies and offices ensure their development into self-reliant communities and active
corresponding to the devolved powers, functions, and participants in the attainment of national goals.
responsibilities.
Section 19. Eminent Domain. - A local government unit may,
Personnel of said national agencies or offices shall be absorbed by through its chief executive and acting pursuant to an ordinance,
the local government units to which they belong or in whose areas exercise the power of eminent domain for public use, or purpose or
they are assigned to the extent that it is administratively viable as welfare for the benefit of the poor and the landless, upon payment of
determined by the said oversight committee: Provided, That the just compensation, pursuant to the provisions of the Constitution and
rights accorded to such personnel pursuant to civil service law, rules pertinent laws: Provided, however, That the power of eminent
and regulations shall not be impaired: Provided, further, That domain may not be exercised unless a valid and definite offer has
regional directors who are career executive service officers and other been previously made to the owner, and such offer was not
officers of similar rank in the said regional offices who cannot be accepted: Provided, further, That the local government unit may
absorbed by the local government unit shall be retained by the immediately take possession of the property upon the filing of the
national government, without any diminution of rank, salary or expropriation proceedings and upon making a deposit with the
tenure. 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 the requirements for food production, human settlements, and
expropriated property shall be determined by the proper court, based industrial expansion shall be taken into consideration in the
on the fair market value at the time of the taking of the property. preparation of such plans.

Section 20. Reclassification of Lands. - (d) Where approval by a national agency is required for
(a) A city or municipality may, through an ordinance passed by the reclassification, such approval shall not be unreasonably withheld.
sanggunian after conducting public hearings for the purpose, Failure to act on a proper and complete application for
authorize the reclassification of agricultural lands and provide for the reclassification within three (3) months from receipt of the same shall
manner of their utilization or disposition in the following cases: (1) be deemed as approval thereof.
when the land ceases to be economically feasible and sound for
agricultural purposes as determined by the Department of Agriculture (e) Nothing in this Section shall be construed as repealing,
or (2) where the land shall have substantially greater economic value amending, or modifying in any manner the provisions of R.A. No.
for residential, commercial, or industrial purposes, as determined by 6657.
the sanggunian concerned: Provided, That such reclassification shall
be limited to the following percentage of the total agricultural land Section 21. Closure and Opening of Roads. -
area at the time of the passage of the ordinance:
(a) A local government unit may, pursuant to an ordinance,
(1) For highly urbanized and independent component cities, fifteen permanently or temporarily close or open any local road, alley, park,
percent (15%); or square falling within its jurisdiction: Provided, however, That in
case of permanent closure, such ordinance must be approved by at
(2) For component cities and first to the third class municipalities, ten least two-thirds (2/3) of all the members of the sanggunian, and
percent (10%); and when necessary, an adequate substitute for the public facility that is
subject to closure is provided.
(3) For fourth to sixth class municipalities, five percent (5%):
Provided, further, That agricultural lands distributed to agrarian (b) No such way or place or any part thereof shall be permanently
reform beneficiaries pursuant to Republic Act Numbered Sixty-six closed without making provisions for the maintenance of public
hundred fifty-seven (R.A. No. 6657). otherwise known as "The safety therein. A property thus permanently withdrawn from public
Comprehensive Agrarian Reform Law", shall not be affected by the use may be used or conveyed for any purpose for which other real
said reclassification and the conversion of such lands into other property belonging to the local government unit concerned may be
purposes shall be governed by Section 65 of said Act. lawfully used or conveyed: Provided, however, That no freedom park
shall be closed permanently without provision for its transfer or
(b) The President may, when public interest so requires and upon relocation to a new site.
recommendation of the National Economic and Development
Authority, authorize a city or municipality to reclassify lands in excess (c) Any national or local road, alley, park, or square may be
of the limits set in the next preceding paragraph. temporarily closed during an actual emergency, or fiesta
celebrations, public rallies, agricultural or industrial fairs, or an
(c) The local government units shall, in conformity with existing laws, undertaking of public works and highways, telecommunications, and
continue to prepare their respective comprehensive land use plans waterworks projects, the duration of which shall be specified by the
enacted through zoning ordinances which shall be the primary and local chief executive concerned in a written order: Provided,
dominant bases for the future use of land resources: Provided. That however, That no national or local road, alley, park, or square shall
be temporarily closed for athletic, cultural, or civic activities not (d) Local government units shall enjoy full autonomy in the exercise
officially sponsored, recognized, or approved by the local of their proprietary functions and in the limitations provided in this
government unit concerned. Code and other applicable laws,

(d) Any city, municipality, or barangay may, by a duly enacted Section 23. Authority to Negotiate and Secure Grants. - Local chief
ordinance, temporarily close and regulate the use of any local street, executives may, upon authority of the sanggunian, negotiate and
road, thoroughfare, or any other public place where shopping malls, secure financial grants or donations in kind, in support of the basic
Sunday, flea or night markets, or shopping areas may be established services or facilities enumerated under Section 17 hereof, from local
and where goods, merchandise, foodstuffs, commodities, or articles and foreign assistance agencies without necessity of securing
of commerce may be sold and dispensed to the general public. clearance or approval therefor from any department, agency, or
office of the national government of from any higher local
Section 22. Corporate Powers. - government unit: Provided, That projects financed by such grants or
assistance with national security implications shall be approved by
(a) Every local government unit, as a corporation, shall have the the national agency concerned: Provided, further, That when such
following powers: national agency fails to act on the request for approval within thirty
(30) days from receipt thereof, the same shall be deemed approved.
(1) To have continuous succession in its corporate name; The local chief executive shall, within thirty (30) days upon signing of
(2) To sue and be sued; such grant agreement or deed of donation, report the nature,
(3) To have and use a corporate seal; amount, and terms of such assistance to both Houses of Congress
(4) To acquire and convey real or personal property; and the President.
(5) To enter into contracts; and
(6) To exercise such other powers as are granted to corporations, Section 24. Liability for Damages. - Local government units and their
subject to the limitations provided in this Code and other laws. officials are not exempt from liability for death or injury to persons or
damage to property.
(b) Local government units may continue using, modify, or change
their existing corporate seals: Provided, That newly established local CHAPTER III
government units or those without corporate seals may create their Intergovernmental Relations
own corporate seals which shall be registered with the Department of ARTICLE I
the Interior and Local Government: Provided, further, That any National Government and Local Government Units
change of corporate seal shall also be registered as provided
hereon. Section 25. National Supervision over Local Government Units. -

(c) Unless otherwise provided in this Code, no contract may be (a) Consistent with the basic policy on local autonomy, the President
entered into by the local chief executive in behalf of the local shall exercise general supervision over local government units to
government unit without prior authorization by the sanggunian ensure that their acts are within the scope of their prescribed powers
concerned. A legible copy of such contract shall be posted at a and functions. The President shall exercise supervisory authority
conspicuous place in the provincial capitol or the city, municipal or directly over provinces, highly urbanized cities, and independent
barangay hall. component cities; through the province with respect to component
cities and municipalities; and through the city and municipality with
respect to barangays.
(b) National agencies and offices with project implementation
functions shall coordinate with one another and with the local
government units concerned in the discharge of these functions.
They shall ensure the participation of local government units both in
the planning and implementation of said national projects.

(c) The President may, upon request of the local government unit
concerned, direct the appropriate national agency to provide
financial, technical, or other forms of assistance to the local
government unit. Such assistance shall be extended at no extra cost
to the local government unit concerned.

(d) National agencies and offices including government-owned or

controlled corporations with field units or branches in a province, city,
or municipality shall furnish the local chief executive concerned, for
his information and guidance, monthly reports including duly certified
budgetary allocations and expenditures.

Section 26. Duty of National Government Agencies in the

Maintenance of Ecological Balance. - It shall be the duty of every
national agency or government-owned or controlled corporation
authorizing or involved in the planning and implementation of any
project or program that may cause pollution, climatic change,
depletion of non-renewable resources, loss of crop land, rangeland,
or forest cover, and extinction of animal or plant species, to consult
with the local government units, nongovernmental organizations, and
other sectors concerned and explain the goals and objectives of the
project or program, its impact upon the people and the community in
terms of environmental or ecological balance, and the measures that
will be undertaken to prevent or minimize the adverse effects thereof.

Section 27. Prior Consultations Required. - No project or program

shall be implemented by government authorities unless the
consultations mentioned in Sections 2 (c) and 26 hereof are
complied with, and prior approval of the sanggunian concerned is
obtained: Provided, That occupants in areas where such projects are
to be implemented shall not be evicted unless appropriate relocation
sites have been provided, in accordance with the provisions of the
Constitution.