TITLE I

BASIC PRINCIPLES

CHAPTER I

The Code, Policy and Application

SECTION 1. Title. - This Act shall be known and cited as the “Bangsamoro Local Governance Code of 2020” [1]

SECTION 2. Declaration of Policy. - (a) It is hereby declared the policy of the Bangsamoro Autonomous Region in Muslim Mindanao that its territorial and political subdivisions shall enjoy genuine and meaningful local autonomy to enable them to attain full development as self-reliant communities and become effective partners in the attainment of holistic Bangsamoro development. Toward this end, the Bangsamoro Government, pursuant to the principles of moral governance, shall provide for a more responsive and accountable local government structure instituted through a system of decentralization whereby constituent local government units shall be given more powers, authority, responsibilities, and resources in a gradual and systematic approach. The process of decentralization shall proceed from the Bangsamoro regional government to its constituent local government units.

(b) It is also the policy of the Bangsamoro Government to ensure the accountability of local government units through the institution of effective mechanisms of recall, initiative referendum, and administrative supervision.

(c) It is likewise a policy of the Bangsamoro Autonomous Region that regional agencies and offices conduct mandatory public consultations with the constituent local government units, non-governmental and people's organizations, and other concerned sectors of the community, before any project or program is approved for implementation by the concerned regional agencies, offices, or government-owned or -controlled corporations in their respective jurisdictions.

(d) Finally, the mandatory public consultations required for the implementation of all programs and projects funded by the National Government in the constituent local government units of the BARMM shall be governed by policies that may be enacted by the Bangsamoro Government, subject to agreement by the National and the Bangsamoro Government through the  Intergovernmental Relations Body, in accordance with Republic Act No. 11054, otherwise known as the Organic Law for the Bangsamoro Autonomous Region in Muslim Mindanao. [2]

SECTION 3. Operative Principles of Decentralization. - The formulation and implementation of policies and measures on local autonomy shall be guided by the following operative principles:

(a) There shall be an effective and systematic allocation among the different constituent local government units of their respective powers, functions, responsibilities, and resources;

(b) There shall be established in every constituent local government unit an accountable, efficient, and dynamic organizational structure and operating mechanism that will meet the priority needs and service requirements of its communities;

(c) Local officials and employees whose salaries are fully charged against the local funds shall, unless otherwise provided under this Code, be appointed by the Governor, Mayor, or Punong Barangay, or the Vice Governor or Vice Mayor, as the case may be, according to merit and fitness, and may only be removed for cause, subject to the civil service law, rules, and regulations in the Bangsamoro Civil Service Code that may be enacted by the Parliament.

(d) The vesting of duty, responsibility, and accountability in constituent local government units shall be accompanied with provision for reasonably adequate resources to discharge their powers and effectively carry out their functions; hence, they shall have the power to create and broaden their own sources of revenue and the right to a just share in the national taxes, through the system of Internal Revenue Allotment and regional taxes; and an equitable share in the proceeds of the utilization and development of the national and regional wealth within their respective areas;

(e) 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. Correspondingly, the Ministry of the Interior and Local Government shall ensure faithful compliance by the constituent local government units with their obligations through the proper use of their prescribed powers and accomplishment of their functions.

(f) Constituent local government units, regional agencies, and other organizations may group themselves, consolidate or coordinate their efforts, services, and resources for purposes of promoting the general welfare and the common good;

(g) The capabilities of constituent local government units in the Autonomous Region, especially the municipalities and barangays, shall be strengthened by providing them with opportunities to participate actively in the planning and implementation of regional policies, programs and projects;

(h) There shall be a continuing mechanism to enhance local autonomy not only by legislative enabling acts but also by administrative and organizational reforms;

(i) Constituent local government units shall share with the Bangsamoro Government the responsibility in the management and maintenance of ecological balance within their territorial jurisdiction, subject to the provisions of this Code and national and regional policies;

(j) Effective mechanisms for ensuring the accountability of constituent local government units to their respective constituents shall be strengthened in order to upgrade continually the quality of local leadership;

(k) The realization of local autonomy shall be facilitated through improved coordination of regional government policies and programs and extension of adequate financial, technical, and material assistance to less developed and deserving constituent local government units;

(l) The participation of the private sector in local governance, particularly in the delivery of basic services, shall be strengthened to ensure the viability of local autonomy as a primary regional strategy for sustainable Bangsamoro development; and

(m) The Bangsamoro Government shall ensure that gradual decentralization contributes to the continuing improvement of the performance of constituent local government units and the quality of life of the Bangsamoro people.

SECTION 4. Scope of Application. - This Code shall apply to all constituent provinces, cities, municipalities, barangays, and other political subdivisions as may be created by law, and, to the extent herein provided, officials, offices, or agencies of the Bangsamoro Government.

SECTION 5. Rules of Interpretation. - In the interpretation of the provisions of this Code, the following rules shall apply:

(a) Any provision on a power of a constituent local government unit shall be liberally interpreted in its favor, and in case of doubt, any question thereon shall be resolved in favor of devolution of powers and of the lower local government unit. Any fair and reasonable doubt as to the existence of the power shall be interpreted in favor of the constituent local government unit concerned;

(b) In case of doubt, any tax ordinance or revenue measure shall be construed strictly against the local government unit enacting it, and liberally in favor of the taxpayer. Any tax exemption, incentive or relief granted by any local government unit pursuant to the provisions of this Code shall be construed strictly against the person claiming it.

(c) The general welfare provisions in this Code shall be liberally interpreted to give more powers to constituent local government units in accelerating economic development and upgrading the quality of life for the people in the community.

(d) In the resolution of controversies arising under this Code where no legal provision or jurisprudence applies, resort may be had to the customs and traditions in the place where the controversies take place.

CHAPTER II

General Powers and Attributes of Local Government Units

SECTION 6. Authority to Create Local Government Units. – A municipality or a barangay may be created, divided, merged, abolished, or its boundaries substantially altered by law to be enacted by the Parliament. The municipalities or barangays created, divided, merged, or whose boundaries are substantially altered, shall be entitled to their appropriate Internal Revenue Allotment: Provided, That the criteria laid down in this code shall be satisfied. Provided further, that it shall be approved by a majority of the votes cast in a plebiscite in the political units directly affected.

The authority to create, divide, merge, abolish, or substantially alter the boundaries of a provide, or a city shall remain in Congress, through the Philippine Congress – Bangsamoro Parliament Forum.

SECTION 7. Creation and Conversion. - As a general rule, the creation of a local government unit or its conversion from one level to another level shall be based on verifiable indicators of viability and projected capacity to provide services, to wit:

(a) Income. - It must be sufficient, based on acceptable standards, to provide for all essential government facilities and services and special functions commensurate with the size of its population, as expected of the local government unit concerned;

(b) Population. - It shall be determined as the total number of inhabitants within the territorial jurisdiction of the local government unit concerned; and

(c)(c) Land Area. - It must be contiguous, unless it comprises of two or more islands or is separated by a local government unit independent of the others; properly identified by metes and bounds with technical descriptions; and sufficient to provide for such basic services and facilities to meet the requirements of its populace. Compliance with the foregoing indicators shall be attested to by the Ministry of Finance, and Budget and Management, the Philippine Statistics Authority, and the Lands Management Bureau of the Ministry of Environment, Natural Resources and Energy.

SECTION 8. Division and Merger. - Division and merger of existing local government units shall comply with the same requirements herein prescribed for their creation: Provided however, That such division shall not reduce the income, population, or land area of the local government unit or units concerned to less than the minimum requirements prescribed in this Code: Provided, further, That the income classification of the original local government unit or units shall not fall below its current income classification prior to such division.

SECTION 9. Abolition of Local Government Units. - A constituent local government unit may be abolished when its income, population, or land area has been irreversibly reduced to less than the minimum standards prescribed for its creation under Book III of this Code, as certified by the regional agencies mentioned in Section 7 hereof to Parliament.

The law abolishing a constituent local government unit shall specify the province, city, municipality, or Barangay with which the local government unit sought to be abolished will be incorporated or merged.

SECTION 10. Plebiscite Requirement. - No creation, division, merger, abolition, or substantial alteration of boundaries of local government units shall take effect unless approved by a majority of the votes cast in a plebiscite called for the purpose in the political unit or units directly affected. Said plebiscite shall be conducted by the Commission on Elections (Comelec) within one hundred twenty (120) days from the date of effectivity of the law effecting such action, unless said law fixes another date.

SECTION 11.  Selection and Transfer of Constituent Local Government Site, Offices and Facilities. – (a) The law or ordinance creating or merging local government units shall specify the seat of government from where governmental and corporate services shall be delivered. In selecting said site, factors relating to historical significance, geographical centrality, accessibility, availability of transportation and communication facilities, drainage and sanitation, development and economic progress, and other relevant considerations shall be considered.

(b) When conditions and developments in the local government unit concerned have significantly changed subsequent to the establishment of the seat of government, its Sanggunian may, after public hearing and by a two-thirds (2/3) vote of all its members, transfer the same to a site better suited to its needs. Provided that no such transfer shall be made outside the territorial jurisdiction of the concerned local government unit, more than once every twenty (20) years, and without prior authorization from the Office of the Chief Minister, through the Ministry of the Interior and Local Government.

The old site, together with the improvements thereon, may be disposed of by sale or lease or converted to such other use as the Sanggunian concerned may deem beneficial to the local government unit concerned and its inhabitants.

(c) Local government offices and facilities shall not be transferred, relocated, or converted to other uses unless public hearings are first conducted for the purpose and the concurrence of the majority of all the members of the Sanggunian concerned is obtained.

SECTION 12. Government Centers. - Provinces, cities, and municipalities shall endeavor to establish a government center where offices, agencies, or branches of the national and regional government, local government units, or government-owned or -controlled corporations may, as far as practicable, be located. In designating such a center, the local government unit concerned shall consider the existing facilities of national, regional and local agencies and offices which may serve as the government center as contemplated under this Section. The national and regional government, local government unit or government-owned or -controlled corporation concerned shall bear the expenses for the construction of its buildings and facilities in the government center.

SECTION 13. Naming of Local Government Units and Public Places, Streets and Structures, and Declaring Local Public Holidays. – (a) The Sangguniang Panlalawigan may, in consultation with the Bangsamoro Commission for the Preservation of Cultural Heritage, change the name of the following within its territorial jurisdiction:

(1) Component cities and municipalities, upon the recommendation of the Sanggunian concerned;

(2) Provincial roads, avenues, boulevards, thorough-fares, and bridges

(3) Public vocational or technical schools and other post- secondary and tertiary schools;

(4) Provincial hospitals, health centers, and other  health facilities; and

(5) Any other public place or building owned by the provincial government.

(b) The Sanggunian of highly urbanized cities and of component cities whose charters prohibit their voters from voting for provincial elective officials, hereinafter referred to in this Code as independent component cities, may, in consultation with the Bangsamoro Commission for the Preservation of Cultural Heritage, change the name of the following within its territorial jurisdiction:

(1) City Barangays, upon the recommendation of the Sangguniang Barangay concerned;

(2) City roads, avenues, boulevards, thorough fares, and bridges;

(3) Public elementary, secondary and vocational or technical schools, community colleges and non-chartered colleges;

(4) City hospitals, health centers and other health facilities; and

(5) Any other public place or building owned by the city government.

(c) The Sanggunian of component cities and municipalities may, in consultation with the Bangsamoro Commission for the Preservation of Cultural Heritage, change the name of the following within its territorial jurisdiction:

(6) barangays, upon recommendation of the Sangguniang Barangay concerned;

(7) city, municipal and Barangay roads, avenues, boulevards, thorough fares, and bridges;

(8) city and municipal public elementary, secondary and vocational or technical schools, post-secondary and other tertiary schools;

(9) hospitals, health centers and other health facilities, and any other public place or building owned by the municipal government.

(d) None of the foregoing local government units, institutions, places, or buildings shall be named after a living person, nor may a change of name be made unless for a justifiable reason and, in any case, not oftener than once every ten (10) years. The name of a local government unit or a public place, street or structure with historical, cultural, or ethnic significance shall not be changed, unless by a unanimous vote of the Sanggunian concerned and in consultation with the NHP.

(e) A change of name of a public school shall be made only upon the recommendation of the local school board concerned.

(f) A change of name of public hospitals, health centers, and other health facilities shall be made only upon the recommendation of the local health board concerned.

(g) The change of name of any local government unit shall be effective only upon ratification in a plebiscite conducted for the purpose in the political unit directly affected. In any change of name, the Office of the Chief Minister, the representative of the legislative district concerned, and the Philippine Postal Corporation shall be notified.

(h) The Sangguniang Panlalawigan, Panlungsod or Bayan, upon consultation with the Bangsamoro Commission for the Preservation of Cultural Heritage and Local Historical Associations, if any, and the Ministry of Labor and Employment, through an ordinance duly approved by 2/3 vote of all their respective members, may declare the Founding Anniversary of their locality as working or non-working public holidays. [3]

SECTION 14. Beginning of Corporate Existence. - When a new local government unit is created, its corporate existence shall commence upon the election and qualification of its chief executive and a majority of the members of its Sanggunian, unless otherwise provided by the law creating it.

SECTION 15. Political and Corporate Nature of Local Government Units. - Every local government unit created or recognized under this Code is a body politic and corporate endowed with powers to be exercised by it in conformity with law. As such, it shall exercise powers as a political subdivision of the regional government and as a corporate entity representing the inhabitants of its territory.

SECTION 16. General Welfare. - Every local government unit shall exercise the powers expressly granted, those necessarily implied therefrom, as well as powers necessary, appropriate, or incidental for its efficient and effective governance, and those which are essential to the promotion of the general welfare. Within their respective territorial jurisdictions, local government units shall ensure and support, among other things, the preservation and enrichment of culture, promote health and safety, enhance the right of the people to a balanced ecology, encourage and support the development of appropriate and self-reliant scientific and technological capabilities, improve public morals, enhance economic prosperity and social justice, promote full employment among their residents, maintain peace and order, and preserve the comfort and convenience of their inhabitants.

SECTION 17. Basic Services and Facilities. – (a) Local government units shall endeavor to be self-reliant and shall continue to exercise the powers and discharge the duties and functions currently vested upon them. They shall also discharge the powers, functions and responsibilities of regional agencies and offices devolved to them pursuant to this Code. Constituent local government units shall likewise exercise such other powers and discharge such other functions and responsibilities as are necessary, appropriate, or incidental to efficient and effective local governance.

                        (b) Such basic services and facilities include, but are not limited to, the following:

(1) For a Barangay:

(i) Agricultural support services such as planting materials distribution system and operation of farm produce collection and buying stations, and maintenance of “Gulayan sa Barangay” at the barangay centers;

(ii) Health and social welfare services such as maintenance of Barangay health center and day-care center;

(iii) Educational promotion and information drive on general hygiene and sanitation and beautification;

(iv) Segregation and collection of biodegradable, compostable and reusable wastes;

(v) Administration, operation, and maintenance of Katarungang Pambarangay;

(vi) Organization of community disaster response volunteers;

(vii) Operation and maintenance of Barangay roads and bridges and water supply systems;

(viii) Operation and maintenance of barangay multi- purpose hall, multipurpose pavement, plaza, sports center, and other barangay facilities;

(ix) Establishment and operation of information and reading area within the barangay government center; and

(x) Satellite or public market, where viable; [4]

(2) For a municipality:

(i) Extension and on-site research services and facilities related to agriculture and fishery activities such as dispersal of livestock and poultry, fingerlings, and other seeding materials for aquaculture; palay, corn, and vegetable seed farms; medicinal plant gardens; fruit tree, coconut, and other kinds of seedling nurseries; demonstration farms; quality control of copra and improvement and development of local distribution channels, preferably through cooperatives; inter-barangay irrigation system; water and soil resource utilization and conservation projects; and enforcement of fishery laws in municipal waters including the conservation of mangroves;

(ii) Pursuant to regional policies and subject to supervision, control and review of the MENRE, implementation of community-based forestry projects such as integrated social forestry programs and similar projects; management and control of communal forests with an area not exceeding fifty (50) square kilometers; establishment of tree parks, greenbelts, and similar forest development projects;

(iii) Subject to the provisions of Title Five, Book I of this Code, health services such as implementation of programs and projects on primary health care, maternal and child care, and communicable and non-communicable disease control services; access to secondary and tertiary health services; purchase of medicines, medical supplies, and equipment needed to carry out the services herein enumerated;

(iv) Social welfare services such as programs and projects on child and youth welfare, family and community welfare, women's welfare, welfare of the elderly and disabled persons; community-based rehabilitation programs for vagrants, beggars, street children, scavengers, juvenile delinquents, and victims of drug abuse; livelihood and other pro-poor projects; nutrition services; and family planning services;

(v) Information services which include investments and job placement information systems, tax and marketing information systems, and maintenance of a public library;

(vi) Solid waste management systems, environmental management systems, and facilities related to general hygiene and sanitation;

(vii) Construction and/or maintenance of Municipal buildings, cultural centers, public parks including freedom parks, playgrounds, and sports facilities and equipment, and other similar facilities;

(viii) Infrastructure facilities intended primarily to service the needs of the residents of the municipality and which are funded out of municipal funds including, but not limited to, municipal roads and bridges; school buildings and other facilities for public elementary and secondary schools; clinics, health centers and other health facilities necessary to carry out health services; communal irrigation, small water impounding projects and other similar projects; fish ports; artesian wells, spring development, rainwater collectors and water supply systems; seawalls, dikes, drainage and sewerage, and flood control; traffic signals and road signs; and similar facilities;

(ix) Public markets, slaughterhouses and other municipal enterprises;

(x) Public cemetery;

(xi) Tourism facilities and other tourist attractions, including the acquisition of equipment, regulation and supervision of business concessions, and security services for such facilities; and

(xii) Provision of sites for police and fire stations and substations and the municipal jail;

(3) For a Province:

(i) Agricultural extension and on-site research services and facilities such as prevention and control of plant and animal pests and diseases; dairy farms, livestock markets, animal breeding stations, and artificial insemination centers; and assistance in the 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 transfer of appropriate technology;

(iii) Pursuant to regional policies and subject to supervision, control and review of the MENRE, enforcement of forestry laws limited to community- based forestry projects, pollution control law, small- scale mining law, and other laws on the protection of the environment; and mini-hydroelectric projects for local purposes;

(iv) Subject to the provisions of Title Five, Book I of this Code, health services such as operation and maintenance of district hospitals and other tertiary health services;

(v) Social welfare services such as programs and projects on rebel returnees and evacuees; relief operations; and, population development services;

(vi) Provincial buildings, provincial jails, freedom parks and other public assembly areas, and other similar facilities;

(vii) Maintenance of provincial roads and bridges; inter-municipal waterworks, drainage and sewerage, flood control, and irrigation systems; reclamation projects; and similar facilities;

(viii) Programs and projects for low-cost housing and other mass dwellings;

(ix) Investment support services, including access to credit financing;

(x) Upgrading and modernization of tax information and collection services through the use of computer hardware and software and other means;

(xi) Inter-municipal telecommunications services, subject to regional policy guidelines; and

(xii) Tourism development and promotion programs;

(4) For a City:

All the services and facilities of the municipality and province, and in addition thereto, the following:

(i) Adequate communication and transportation facilities;

(ii) Support for education, police and fire services and facilities.

(c) Where the local government unit concerned is duly designated as the implementing agency, it shall implement the public works and infrastructure projects and other facilities funded by the National Government under the Annual General Appropriations Act or those regionally funded under the Bangsamoro Appropriations Act, other special laws, pertinent executive orders; and those wholly or partially funded from foreign sources. [5]

(d) The designs, plans, specifications, testing of materials, and the procurement of equipment and materials from both foreign and local sources necessary for the provision of the foregoing services and facilities shall be undertaken by the local government unit concerned, based on regional policies, standards and guidelines.

(e) Ministries or regional offices concerned shall gradually devolve to local government units the responsibility for the provision of basic services and facilities enumerated in this Section, seven (7) years after the effectivity of this Code, subject to the guidelines in the implementation of the process of devolution as a result of the comprehensive assessment on the financial viability and technical capacity of the local government units, to be conducted by an inter-agency committee on devolution. The members of the committee shall be representatives from the Ministry of Health, Ministry of Agriculture, Fisheries and Agrarian Reform, and the Ministry of Social Services and Development. The Ministry of the Interior and Local Government shall sit as the Chairman of the said inter-agency committee. As used in this Code, the term "devolution" refers to the act by which the Bangsamoro Government confers power and authority upon the various constituent local government units to perform specific functions and responsibilities. [6]

(f) The Cities of Marawi, Cotabato and Lamitan and the Province of Basilan including its municipalities shall continue to enjoy their full devolution status. This is without prejudice to the power of the Bangsamoro Government to set up its offices in the said local government units for purposes of delivering its services.

(g) The Ministries or regional offices or the next higher constituent local government unit shall provide or augment the basic services and 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 acceptable standards and requirements of its inhabitants.

(h) The basic services and facilities hereinabove enumerated shall be funded from the share of the constituent local government units in the proceeds of national taxes and other local revenues and funding support from the Bangsamoro Government, its instrumentalities and government- owned or -controlled corporations which are tasked by law to establish and maintain such services or facilities. Any fund or resource available for the use of the local government units shall be first allocated for the provision of basic services or facilities enumerated in subsection (b) hereof before applying the same for other purposes, unless otherwise provided in this Code.

(i) Upon the effectivity of this Code, the Bangsamoro Government shall continue to provide for the compensation of the heads in the agriculture, health, and social welfare offices of the constituent local government units. On the other hand, these local government units shall appoint and provide for the compensation of supporting personnel or other employees in the said offices. The local government units shall also allocate resources for the local programs and projects in their agriculture, health, and social welfare offices.

(j) The gradual devolution contemplated in this Code shall include the transfer to local government units of the records, equipment, and other assets and personnel of agencies and offices corresponding to the devolved powers, functions, and responsibilities. The concerned Ministries or regional offices of the Bangsamoro Government shall continue to provide technical and financial assistance to all local government units to ensure quality standards of services. Personnel of said Ministries or regional offices shall be absorbed by the local government units to which they belong or in whose areas they are assigned to the extent that it is administratively viable as determined by a committee to be established for the purpose: Provided, that the non-diminution of rights and privileges accorded to such personnel pursuant to civil service law, rules and regulations shall not be impaired: Provided further, that the affected agencies shall review their mandates and functions, and re-organized their structures accordingly.

(k) To ensure the active participation of the private sector in local governance, local government units may, by ordinance, sell, lease, encumber, or otherwise dispose of public economic enterprises owned by them in their proprietary capacity.

SECTION 18. Power to Generate and Apply Resources. – Constituent local government units shall have the power and authority to establish an organization that shall be responsible for the efficient and effective implementation of their development plans, program objectives and priorities; to create their own sources of revenue and to levy taxes, fees, and charges which shall accrue exclusively for their use and disposition and which shall be retained by them; to have a just share in national taxes which shall be automatically and directly released to them without need of any further action; to have an equitable share in the proceeds from the utilization and development of the national wealth and resources within their respective territorial jurisdictions including sharing the same with the inhabitants by way of direct benefits; to acquire, develop, lease, encumber, alienate, or otherwise dispose of real or personal property held by them in their proprietary capacity and to apply their resources and assets for productive, developmental, or welfare purposes, in the exercise or furtherance of their governmental or proprietary powers and functions and thereby ensure their development into self-reliant communities and active participants in the attainment of national goals.

SECTION 19. Eminent Domain. - A local government unit may, through its chief executive acting pursuant to an ordinance, exercise the power of eminent domain for public use, or purpose, or welfare for the benefit of the poor and the landless, upon payment of just compensation, pursuant to the provisions of the Constitution and pertinent laws: Provided, however, That the power of eminent domain may not be exercised unless a valid and definite offer has been previously made to the owner, and such offer was not accepted: Provided, further, That the local government unit may immediately take possession of the property upon the filing of the expropriation proceedings and upon making a deposit with the 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 expropriated property shall be determined by the proper court, based on the fair market value at the time of the taking of the property.

SECTION 20. Reclassification of Lands. – (a) A city or municipality may, through an ordinance passed by the Sanggunian after conducting public hearings for the purpose, authorize the reclassification of agricultural lands and provide for the manner of their utilization or disposition in the following cases: (1) when the land ceases to be economically feasible and sound for agricultural purposes as determined by the Ministry of Fisheries Agriculture and Agrarian Reform or (2) where the land shall have substantially greater economic value for residential, commercial, or industrial purposes, as determined by the Sanggunian concerned: Provided, That such reclassification shall be limited to the following percentage of the total agricultural land area at the time of the passage of the ordinance:

(1) For highly urbanized and independent component cities, fifteen percent (15%);

(2) For component cities and first to third class municipalities, ten percent (10%); and

(3) For fourth to sixth class municipalities, five percent (5%): Provided, That agricultural lands distributed to agrarian reform beneficiaries shall be reclassified upon application of the beneficiary or the landowner, with due notice to the affected parties, and upon full payment of the obligation by the beneficiary.

(b) The Chief Minister may, when public interest so requires and upon recommendation of the Bangsamoro Economic and Development Council, authorize a city or municipality to reclassify lands in excess of the limits set in the next preceding paragraph.

(c) The local government units shall, in conformity with existing laws, continue to prepare their respective comprehensive land use plans enacted through zoning ordinances which shall be the primary and dominant bases for the future use of land resources: Provided, That the requirements for food production, human settlements, and industrial expansion shall be taken into consideration in the preparation of such plans.

(d) Where approval by a regional agency is required for reclassification, such approval shall not be unreasonably withheld. Failure to act on a proper and complete application for reclassification within three (3) months from receipt of the same shall be deemed as approval thereof.

SECTION 21. Closure and Opening of Roads. – (a) A constituent local government unit may, pursuant to an ordinance, permanently or temporarily close or open any local road, alley, park, or square falling within its jurisdiction: Provided, however, That in case of permanent closure, such ordinance must be approved by at least two-thirds (2/3) of all the members of the Sanggunian, and when necessary, an adequate substitute for the public facility that is subject to closure is provided.

(b) No such way or place or any part thereof shall be permanently closed without making provisions for the maintenance of public safety therein. A property thus permanently withdrawn from public use may be used or conveyed for any purpose for which other real property belonging to the local government unit concerned may be lawfully used or conveyed: Provided, however, That no freedom park shall be closed permanently without provision for its transfer or relocation to a new site.

(c) Any national, regional or local road, alley, park, or square may be temporarily closed during an actual emergency, or fiesta celebrations, public rallies, agricultural or industrial fairs, or an undertaking of public works and highways, telecommunications, and waterworks projects, the duration of which shall be specified by the local chief executive concerned in a written order: Provided, however, That no national, regional or local road, alley, park, or square shall be temporarily closed for athletic, cultural, or civic activities not officially sponsored, recognized, or approved by the local government unit concerned.

(d) Any city, municipality, or Barangay may, by a duly enacted ordinance, close and regulate the use of any local ordinance, temporarily street, road, thoroughfare, or any other public place where shopping malls, Sunday, flea or night markets, or shopping areas may be established and where goods, merchandise, foodstuffs, commodities, or articles of commerce may be sold and dispensed to the general public.

SECTION 22. Corporate Powers. – (a) Every constituent local government unit, as a corporate entity, shall have the following powers:

(1) To have continuous succession in its corporate name;

(2) To sue and be sued;

(3) To have and use a corporate seal;

(4) To acquire and convey real or personal property;

(5) To enter into contracts; and

(6) To exercise such other powers as are granted to corporations, subject to the limitations provided in this Code and other laws.

(b) Constituent local government units may continue to use, modify, or change their existing corporate seals: Provided, That newly established local government units or those without corporate seals may create their own corporate seals which shall be registered with the Ministry of the Interior and Local Government: Provided, further, That any change of corporate seal shall also be registered as provided herein.

(c) Unless otherwise provided in this Code, contract may be entered into by the local chief executive in behalf of the local government unit without prior authorization by the Sanggunian concerned. A legible copy of such contract shall be posted at a conspicuous place in the provincial capitol or the city, municipal or barangay hall.

(d) Constituent local government units shall enjoy full autonomy in the exercise of their proprietary functions and in the management of their economic enterprises, subject to the limitations provided in this Code and other applicable laws.

SECTION 23. Authority to Negotiate and Secure Grants. - Local chief executives may, upon authority of the Sanggunian, negotiate and secure financial grants or donations in kind, in support of the basic services or facilities enumerated under Section 17 hereof, from local and foreign assistance agencies without necessity of securing clearance or approval therefor from any department, agency, or office of the regional government or from any higher constituent local government unit.

The local chief executive shall, within thirty (30) days from the signing of such grant, agreement, or deed of donation, report the nature, amount, and terms of such assistance to the Office of the Chief Minister, through the Ministry of the Interior and Local Government.

SECTION 24. Liability for Damages. – Constituent local government units and their officials are not exempt from liability for death or injury to persons or damage to property.

CHAPTER III

Intergovernmental Relations

Article I

Bangsamoro Government and its Constituent Local Government Units

SECTION 25. Regional Supervision and Regulation over Local Government Units.

(a) Consistent with the basic policy on regional autonomy, the Chief Minister shall exercise general supervision over its constituent local government units to ensure that their acts are within the scope of their prescribed powers and functions, without prejudice to the authority of the Chief Minister to regulate the affairs of its constituent local government units, as guaranteed by Republic Act No. 11054. The Chief Minister shall exercise supervisory and regulatory authority directly over provinces, highly urbanized cities, and independent component cities; through the province with respect to component cities and municipalities; and through the city and municipality with respect to Barangays. [7]

The authority of the Chief Minister to supervise and regulate the affairs of the constituent local government units shall be exclusive. The implementation of all national policies and standards concerning the constituent local government units shall be agreed between the National Government and the Bangsamoro Government, as may be provided in the Intergovernmental Relations Mechanism. [8]

(b) The Bangsamoro Government may by law establish a sub-regional office in order to improve efficiency and coordination with constituent local government units and allocate appropriate funding for this purpose; provided, it negotiates successfully with the National Government or a sub-national entity or a local government unit within or outside the Bangsamoro Autonomous Region in Muslim Mindanao for the location of such office.

(c) Regional agencies and offices with project implementation functions shall coordinate with one another and with the constituent 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 projects.

(d) The Chief Minister may, upon request of the constituent local government unit concerned, thru the MILG, direct the appropriate regional 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.

(e) Regional 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 Regional Government Agencies in the Maintenance of Ecological Balance. - It shall be the duty of every regional 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 constituent local government units, nongovernmental organizations, and other sectors concerned and explain the goals and objectives of 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.

ARTICLE II

Relations with the Philippine National Police

SECTION 28. - Powers of Local Chief Executives over the Units of the Philippine National Police. - The extent of operational supervision and control of local chief executives over the police force, fire protection unit, and jail management personnel assigned in their respective jurisdictions shall be governed by applicable national law and the Organic Law for the Bangsamoro Autonomous Region in Muslim Mindanao.

ARTICLE III

Inter-Local Government Relations

SECTION 29. Provincial Relations with Component Cities and Municipalities. - The province, through the governor, shall ensure that every component city and municipality within its territorial jurisdiction acts within the scope of its prescribed powers and functions. Highly urbanized cities and independent component cities shall be independent of the province.

SECTION 30. Review of Executive Orders. - (a) Except as otherwise provided under the Constitution and special statutes, the governor shall review all executive orders promulgated by the component city or municipal mayor within his jurisdiction. The city or municipal mayor shall review all executive orders promulgated by the punong barangay within his jurisdiction. Copies of such orders shall be forwarded to the governor or the city or municipal mayor, as the case may be, within three (3) days from their issuance. In all instances of review, the local chief executive concerned shall ensure that such executive orders are within the powers granted by law and in conformity with provincial, city, or municipal ordinances.

(b) If the governor or the city or municipal Mayor fails to act on said executive orders within thirty (30) days after their submission, the same shall be deemed consistent with law and therefore valid.

(c) Copies of all executive issuances shall be furnished to the Ministry of the Interior and Local Government, through the Local Government Operations Officer assigned in the concerned constituent local government unit.

SECTION 31. Submission of Municipal Questions to the Provincial Legal Officer or Prosecutor. - In the absence of a municipal legal officer, the municipal government may secure the opinion of the provincial legal officer or, in the absence of the latter, that of the provincial prosecutor on any legal question affecting the municipality.

SECTION. 32. City and Municipal Supervision over Their Respective Barangays. - The city or municipality, through the Mayor concerned, shall exercise general supervision over component Barangays to ensure that said barangays act within the scope of their prescribed powers and functions.

SECTION 33. Cooperative Undertakings Among Constituent Local Government Units. – Constituent local government units may, through appropriate ordinances, group themselves, consolidate, or coordinate their efforts, services, and resources for purposes commonly beneficial to them. In support of such undertakings, the local government units involved may, upon approval by the Sanggunian concerned after a public hearing conducted for the purpose, contribute funds, real estate, equipment, and other kinds of property, and appoint or assign personnel under such terms and conditions as may be agreed upon by the participating local units through a Memorandum of Agreement.

CHAPTER IV

Relations with People's and Non-Governmental Organizations

SECTION 34. Role of People's and Nongovernmental Organizations. - Local government units shall promote the establishment and operation of people's and nongovernmental organizations to become active partners in the pursuit of local autonomy.

SECTION 35. Linkages with People's and Non-Governmental Organizations.

Local government units may enter into joint ventures and such other cooperative arrangements with people's and nongovernmental organizations 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.

SECTION 36. Assistance to People's and Nongovernmental Organizations. - A local government unit may, through its local chief executive and with the concurrence of its Sanggunian, provide assistance, financial or otherwise, to such people's and nongovernmental organizations for economic, socially-oriented, environmental, or cultural projects to be implemented within its territorial jurisdiction.

CHAPTER V

Local Bids and Awards Committee

SECTION 37. Local Bids and Awards Committee. - (a) There is hereby created a local bids and awards committee in every province, city, and municipality, which shall be primarily responsible for the procurement of government programs and projects. The committee shall have at least five (5) members but not more than seven (7) members and shall elect among themselves the Chairman and Vice Chairman. 

(1) One representative from each regular office under the office of Local Chief Executive such as but not limited to the following: Administrator, Budget Office, Engineering Office, Legal Office and General Services Office;

(2) A representative from the end user unit.

(b) The LBAC shall have the following functions: advertise and/or post the invitation to bid, conduct pre-procurement and pre-bid conferences, determine the eligibility of prospective bidders, receive bids, conduct the evaluation of bids, undertake post-qualification proceedings, recommend award of contracts to the Head of the Procuring Entity of his duly authorized representative: Provided, That in the event the Head of the Procuring shall disapprove such recommendation, such disapproval shall be based only on valid, reasonable and justifiable grounds to be expressed in writing, copy furnished the LBAC; recommend to the Head of the Procuring Entity the use of Alternative Methods of Procurement as provided for in the procurement law or RA 9184; and perform such other related functions as may necessary. [9]

SECTION 38. Local Technical Committee. - (a) There is hereby created a local technical committee in every province, city and municipality to provide technical assistance to the local prequalification, bids and awards committees. It shall be composed of the three (3) permanent officials preferably from the third ranking and rank and file staff as may be designated by the local bids and awards committee.

(b) The chairman of the local technical committee shall be designated   by the local bids and awards committee and shall attend its meeting in order to present the reports and recommendations of the local technical committee.

(e) Abuse of authority;

(1) By the Office of the Chief Minister, through the Ministry of the Interior and Local Government, if the respondent is an elective official of a province, or a highly urbanized or an independent component city;

(2) By the governor, if the respondent is an elective official of a component city or municipality; or

TITLE IV

LOCAL SCHOOL BOARDS

(1) The provincial school board shall be composed of the governor and the division superintendent of schools as co- chairmen; the chairman of the education committee of the Sangguniang Panlalawigan, the provincial treasurer, the representative of the Pederasyon ng mga Sangguniang Kabataan in the Sangguniang Panlalawigan, the duly elected president of the provincial federation of parents-teachers association, the duly elected representative of the teachers' organization in the province, and the duly elected representative of the non-academic personnel of public schools in the province, as members;

(2) The city school board shall be composed of the city mayor and the city superintendent of schools as co-chairmen; the chairman of the education committee of the Sangguniang Panlungsod, the city treasurer, the representative of the pederasyon ng mga Sangguniang Kabataan in the Sangguniang Panlungsod, the duly elected president of the city federation of parents-teachers associations, the duly elected representative of the teachers' organizations in the city, and the duly elected representative of the non-academic personnel of public schools in the city, as members; and

(3) The municipal school board shall be composed of the municipal mayor and the district supervisor of schools as co-chairmen; the chairman of the education committee of the Sangguniang bayan, the municipal treasurer, the representative of the Pederasyon ng mga Sangguniang Kabataan in the Sangguniang Bayan, the duly elected president of the municipal federation of parents-teachers associations, the duly elected representative of the teachers' organizations in the municipality, and the duly elected representative of the non-academic personnel of public schools in the city, as members;

(c) In the event that a province or city has two (2) or more school superintendents, and in the event that a municipality has two (2) or more district supervisors, the co-chairman of the local school board shall be determined as follows:

(1) The Ministry of Basic, Higher, and Technical Education shall designate the co-chairman for the provincial and city school boards; and

(2) The division superintendent of schools shall designate the district supervisor who shall serve as co-chairman of the municipal school board.

(d) The performance of the duties and responsibilities of the abovementioned officials in their respective local school boards shall not be delegated.

SECTION 101. Functions of Local School Boards. - The provincial, city or municipal school board shall:

(a) Determine, in accordance with the criteria set by the Ministry of Basic, Higher, and Technical Education, the annual supplementary budgetary needs for the operation and maintenance of public schools within the province, city or municipality, as the case may be, and the supplementary local cost of meeting such needs, which shall be reflected in the form of an annual school board budget corresponding to its share in the proceeds of the special levy on real property constituting the Special Education fund and such other sources of revenue as this Code and other laws or ordinances may provide;

(b) Authorize the provincial, city or municipal treasurer, as the case may be, to disburse funds from the Special Education fund pursuant to the budget prepared and in accordance with existing rules and regulations;

(c) Serve as an advisory committee to the Sanggunian concerned on educational matters such as, but not limited to, the necessity for and the uses of local appropriations for educational purposes; and

(d) Recommend changes in the names of public schools within the territorial jurisdiction of the local government unit for enactment by the Sanggunian concerned.

(e) Act as promotion and selection committee for the hiring of teaching, non-teaching personnel, and other school officials in the concerned localities, subject to the discretion of the Minister of the Ministry of Basic, Higher, and Technical Education.

The Ministry of Basic, Higher, and Technical Education shall consult the concerned local school board on the appointment of division superintendents, district supervisors, school principals, and other school officials.

SECTION 102. Meetings and Quorum; Budget. - (a) The local school board shall meet at least once every quarter or as often as may be necessary.

(b) Any of the co-chairmen may call a meeting. A majority of all its members shall constitute a quorum. However, when both co- chairmen are present in a meeting, the local chief executive concerned, as a matter of protocol, shall be given preference to preside over the meeting. The division superintendent, city superintendent or district supervisor, as the case may be, shall prepare the budget of the school board concerned. Such budget shall be supported by programs, projects, and activities of the school board for the ensuing fiscal year. The affirmative vote of the majority of all its members shall be necessary to approve the budget.

SHARES OF LOCAL GOVERNMENT UNITS IN THE PROCEEDS OF NATIONAL TAXES

Allotment of Internal Revenue

a.Twenty percent (20%) to the provinces;