UNPACKING THE LOCAL GOVERNMENT CODE OF 1991 | i Republic Act 7160 ii | UNPACKING THE LOCAL GOVERNMENT CODE OF 1991 Unpacking the Local Government Code of 1991 A comprehensive research and up to date evaluation of the Local Government Code of 1991 conducted by the Local Government Academy Articles may be used for education and training purposes. When using the articles from this publication, the credit line “Articles from Unpacking the Local Government Code of 1991” should be mentioned somewhere in the publications or learning materials. The Project Team Project Advisor Dr. Gaudioso C. Sosmeña Jr. Project Manager Mr. Leovigildo C. Resol Writers/Researchers Mr. Silvestre Z. Barrameda Jr. Mr. Melchor L. Nacario Jr. Bibliography and References Ms. Lizbeth A. Jalimao Editor Mr. Simon Peter Gregorio Cover and Layout design Mr. Russel C. Gonzales Republic Act 7160 UNPACKING THE LOCAL GOVERNMENT CODE OF 1991 | iii Office of the President of the Philippines Malacañang MESSAGE We took a bold step, and a giant leap, on the road towards local autonomy when Congress enacted into law Republic Act 7160, more popularly known as the Local Government Code of 1991. Never before in the history of our country had our local government units been granted such wide latitude of local autonomy than under the provisions of the said law. This document entitled Unpacking the Local Government Code of 1991 contains a wealth of information vital to the on-going programs of strengthening local autonomy and local government units. I challenge all local stakeholders to increasingly strive for a meaningful, equitable, and sustainable local development as we continue to intensify our efforts in reducing poverty. Congratulations to the Local Government Academy of the Department of the Interior and Local Government (LGA-DILG), with the aid of the United Nations Development Programme (UNDP) and United Nations Habitat (UN-Habitat) for initiating this relevant and useful document as a tool for our local governments in adopting and implementing the kind of governance we are visualizing for the 21st century. ALBERTO ROMULO Executive Secretary Chairman, Oversight Committee on the Local Government Code of 1991 Republic Act 7160 iv | UNPACKING THE LOCAL GOVERNMENT CODE OF 1991 Republic Act 7160 UNPACKING THE LOCAL GOVERNMENT CODE OF 1991 | v Department of the Interior and Local Government MESSAGE The enactment of the Local Government Code of 1991 brought about radical reforms in the administration and development of our local government units. In fact, these reforms are in response to the clamor of our people for genuine decentralization and local autonomy. Hence, it is time for us to look back at the lessons learned on decentralization, recognize the collective gains and milestones in local governance, and move forward in setting the strategic directions towards strengthening local autonomy. While the Code may have been in place for more than a decade now, still there is an urgent need for a better understanding and appreciation of the issues and concerns on local administration as well as a unified interpretation of some of its provisions. But beyond understanding the provisions, it is also significant that the Code serves as the tool in creating a difference in the lives of our people who are the ultimate beneficiaries of decentralization and local autonomy. It is in this context that I commend the Local Government Academy for initiating the publication of a study entitled “Unpacking the Local Government Code of 1991” which could be useful for our local and barangay officials in carrying out their respective functions. At the same time, I extend my appreciation to the United Nations Development Program and the United Nations - Habitat for supporting this initiative. I am confident that the recommendations incorporated in this publication will go a long way in our quest for excellence in local governance. Mabuhay ang ating mga lokal na pamahalaan! JOSE D. LINA, JR. Secretary Republic Act 7160 vi | UNPACKING THE LOCAL GOVERNMENT CODE OF 1991 Republic Act 7160 UNPACKING THE LOCAL GOVERNMENT CODE OF 1991 | vii Local Government Academy MESSAGE The Local Government Code of 1991, otherwise known as RA 7160, set forth the process of redefining and reinventing the course of Philippine local governance. It has also paved the way towards local autonomy through the decentralization of powers and functions from the national government to the local government units (LGUs). The existence of the Code for more than a decade has unleashed the full potentials of the LGUs and its constituents, long held captive by a centralized administrative system. While some LGUs are now reaping the benefits of devolution with unprecedented developments, others are still hanging on to the clutches of the central government. It is within this context that the Unpacking of Local Government Code of 1991 shall guide the local government units to optimize their maximum capacity en route to sustainable development. Together with the United Nations development Programme (UNDP), and United Nations Center for Human Settlements- Habitat (UNCHS-Habitat), the Local Government Academy embarked on the arduous journey of reviewing the salient features as well as unearthing the dark areas of the Code. In the subsequent pages, readers will find different issues and concerns in the implementation and interpretation of the aforementioned law. The simplifications and omnibus recommendations compiled in this document will aid the national government, local authorities, private sectors, civil society groups, and other stakeholders, enabling them to play more effective roles in the implementation of the policy. With the incorporation of the Millennium Development Goals (MDGs) in the analyses and discussions herein, this review will serve as a policy tool in monitoring and evaluating the Code as basis for proposing amendments on provisions which are not utilized to its full extent. It is the hope of the Academy, that this piece of work will find meaning and purpose among the local government officials, and all stakeholders in making local governments in the country effective and viable institutions for national development. MARIVEL C. SACENDONCILLO Executive Director Republic Act 7160 viii | UNPACKING THE LOCAL GOVERNMENT CODE OF 1991 Republic Act 7160 UNPACKING THE LOCAL GOVERNMENT CODE OF 1991 | ix Union of Local Authorities of the Philippines MESSAGE Local governance in the Philippines has taken a dramatic turn since the enactment of the Republic Act No. 7160, known as the Local Government Code of 1991. The Code has injected local governments with vigor and dynamism, creating the environment for innovations in local governance. Considered the most substantial legislation ever passed on the subject, the Code has granted intense debate and opened opportunities for political clarification, and legislative and administrative innovation as local administrators and legislators, national agencies, non- governmental and people’s organizations and sectoral groups struggle to interpret the statute in many ways that protect and further their respective interests. Expectedly, the result is a myriad of decisions, rules, regulations, administrative orders, circulars, opinions, and rulings that interpret, implement and clarify. The Unpacking of Local Government Code of 1991 fills in a critical void in providing a useful reference on local administration. As a reference material it will serve both national and local legislators, administrators and practitioners in the formulation of amendments to the Code. By compiling the recommendation from various sectors, providing simplifications, and citing other reading materials on decentralization, this work shows that there is a need to look into the salient features, as well as the dark areas in the Code. We therefore welcome this research done by the Local Government Academy (LGA) through the support of the United Nations Development Programme (UNDP) and United Nations Center for Human Settlements-Habitat (UNCHS-Habitat), as a guiding material for the members of the Union of Local Authorities of the Philippines (ULAP). GOV. RODOLFO P. DEL ROSARIO National President Republic Act 7160 x | UNPACKING THE LOCAL GOVERNMENT CODE OF 1991 Republic Act 7160 UNPACKING THE LOCAL GOVERNMENT CODE OF 1991 | xi HABITAT MESSAGE The United Nations Center for Human Settlements-Habitat (UNCHS-Habitat) is pleased to be partners with the Local Government Academy in promoting excellence in local governance in the Philippines. Among our efforts in this area is in connection with addressing the issues of improving the living environment for all people by attaining the twin goals of “Adequate shelter for all” and “Sustainable development in an urbanizing world.” We commend the Local Government Academy-Department of the Interior and Local Government for the sustained effort in inspiring more communities to adapt good governance practices in their respective areas. With the inclusion of documented best practices, the Unpacking of Local Government Code of 1991 is a fitting legacy that will serve as a guiding instrument for the promotion of decentralization, and empowerment of the local government units. We may look forward to seeing this document adapted and utilized by more local governments around the Philippines. Further, may this document serve as a valuable material for policy makers in their effort to strengthen and deepen local autonomy in the Philippines. To this end, the lessons learned and the valuable