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Published by: Monique Eveleen Salazar on Aug 02, 2011
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RULES AND REGULATIONS IMPLEMENTING THE LOCAL GOVERNMENT CODE OF 1991RULE IPolicy and ApplicationARTICLE 1.Title. — These Rules shall be known and cited as the Rules andRegulations Implementing the Local Government Code of 1991.ARTICLE 2.Purpose. — These Rules are promulgated to prescribe the proceduresand guidelines for the implementation of the Local Government Code of 1991 inorder to facilitate compliance therewith and achieve the objectives thereof.ARTICLE 3.Declaration of Policy. — (a) It is hereby declared the policy of the Statethat the territorial and political subdivisions of the State shall enjoy genuine andmeaningful local autonomy to enable them to attain their fullest development asself-reliant communities and make them more effective partners in the attainmentof national goals. Toward this end, the State shall provide for a more responsive andaccountable local government structure instituted through a system of decentralization whereby local government units (LGUs) shall be given morepowers, authority, responsibilities, and resources. The process of decentralizationshall proceed from the National Government to the LGUs.(b)It is also the policy of the State to ensure the accountability of LGUs throughthe institution of effective mechanisms of recall, initiative and referendum.(c)It is likewise the policy of the State to require all national governmentagencies and offices (NGOs) to conduct periodic consultations with appropriateLGUs, nongovernmental organizations (NGOs) and people's organizations, and otherconcerned sectors of the community before any project or program is implementedin their respective jurisdictions. casia(d)Every LGU shall exercise the powers expressly granted, those necessarilyimplied therefrom, as well as powers necessary, appropriate, or incidental for itsefficient and effective governance, and those which are essential to the promotionof the general welfare. Within their respective territorial jurisdictions, LGUs shallensure and support, among other things, the preservation and enrichment of culture, promote health and safety, enhance the right of the people to a balancedecology, encourage and support the development of appropriate and self-reliantscientific and technological capabilities, improve public morals, enhance economicprosperity and social justice, promote full employment among their residents,maintain peace and order, and preserve the comfort and convenience of theirinhabitants.ARTICLE 4.Scope of Application. — These Rules shall apply to the following:
(a)All provinces, cities, municipalities, barangays, and such other politicalsubdivisions as may be created by law;(b)All LGUs in the Autonomous Region in Muslim Mindanao and otherautonomous political units as may be created by law, until such time that they shallhave enacted their own local government code; and(c)NGAs and other government instrumentalities including government-ownedand -controlled corporations (GOCCs) to the extent provided in the Code.ARTICLE 5.Rules of Interpretation. — In the interpretation of the provisions of theCode, the following rules shall apply:(a)The general welfare provisions, any provision on the powers of an LGU, andany question regarding the devolution of powers shall be liberally interpreted andresolved in their favor of the LGU.(b)Any fair and reasonable doubt on the powers of LGUs shall be liberallyinterpreted and resolved in their favor; and in cases involving lower and higher levelLGUs, in favor of the lower level LGU.(c)Rights and obligations existing on the date of effectivity of the Code andarising out of contracts or any other source of prestation involving an LGU shall begoverned by the original terms and conditions of said contracts or the law in forceat the time such rights were vested.(d)In the resolution of controversies arising under the Code where no legalprovision or jurisprudence applies, the customs and traditions in the place wherethe controversies take place may be resorted to.(e)In case of doubt, any tax ordinance or revenue measure shall be construedstrictly against the LGU enacting it, and liberally in favor of the taxpayer. Any taxexemption, incentive, or relief granted by any LGU pursuant to the provisions of theCode shall be construed strictly against the person claiming it.RULE IICreation, Conversion, Division, Merger, Abolition,and Alteration of Boundaries of Local Government UnitsARTICLE 6.Common Provisions. — (a) Authority to create LGUs — An LGU may becreated, converted, divided, merged, abolished, or its boundaries substantiallyaltered either by Act of Congress, in the case of a province, city, municipality, orany other political subdivision, or by ordinance passed by the sangguniangpanlalawigan or sangguniang panlungsod concerned, in the case of a barangaylocated within its territorial jurisdiction, subject to such limitations and requirementsprescribed in this Rule.
Notwithstanding the population requirement, the Congress may create barangays inindigenous cultural communities to enhance the delivery of basic services in saidareas and in the municipalities within the Metropolitan Manila Area (MMA).(b)Creation or conversion (1)The creation of an LGU or its conversion from one level to another shall bebased on the following verifiable indicators of viability and projected capacity toprovide services:(i)Income — which must be sufficient, based on acceptable standards, toprovide for all essential government facilities and services and special functionscommensurate to the size of its population, as expected of the LGU. The incomeshall be based on 1991 constant prices, as determined by the Department of Finance (DOF).(ii)Population — which shall be the total number of inhabitants within theterritorial jurisdiction of the LGU.(iii)Land area — which must be contiguous, unless it comprises two (2) or moreislands or is separated by an LGU independent of the others; properly identified bymetes and bounds with technical descriptions; and sufficient to provide for suchbasic services and facilities to meet the requirements of its populace. cdasia(2)Compliance with the foregoing indicators shall be attested by:(i)The Secretary of Finance as to the income requirement in the case oprovinces and cities, and the provincial treasurer in the case of municipalities;(ii)The Administrator of the National Statistics Office (NSO) as to the populationrequirement; and(iii)The Director of the Lands Management Bureau (LMB) of the Department oEnvironment and Natural Resources (DENR) as to the land area requirement.(c)Division or merger — Division or merger of existing LGUs shall comply withthe same requirements for their creation. Such division or merger shall not reducethe income, population, or land area of the original LGU or LGUs to less than theprescribed minimum requirements and that their income classification shall not fallbelow their current income classification prior to the division or merger.(d)Abolition — An LGU may be abolished when its income, population, or landarea has been irreversibly reduced during the immediately preceding three (3)consecutive years to less than the requirements for its creation, as certified by DOF,in the case of income; by NSO, in the case of population; and by LMB, in the case of land area. The law or ordinance abolishing an LGU shall specify the province, city,

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