LOCAL GOVERNMENT CODE OF THE PHILIPPINES

SECTION 6. Authority to Create Local Government Units. – A local government unit may be created, divided, merged, abolished, or its
boundaries substantially altered either by law enacted by Congress in the case of a province, city, municipality, or any other political
subdivision, or by ordinance passed by the sangguniang panlalawigan or sangguniang panlungsod concerned in the case of a barangay
located within its territorial jurisdiction, subject to such limitations and requirements prescribed in this Code.

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) Land Area. – It must be contiguous, unless it comprises two (2) 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 Department of Finance (DOF), the National Statistics Office (NSO), and
the Lands Management Bureau (LMB) of the Department of Environment and Natural Resources (DENR).

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.
The income classification of local government units shall be updated within six (6) months from the effectivity of this Code to reflect the
changes in their financial position resulting from the increased revenues as provided herein.

SECTION 9. Abolition of Local Government Units. – A 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
national agencies mentioned in Section 7 hereof to Congress or to the sanggunian concerned, as the case may be.
The law or ordinance abolishing a 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 or ordinance effecting such action, unless said law or ordinance fixes another date.

SECTION 22. Corporate Powers. – (a) Every local government unit, as a corporation, 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) Local government units may continue using, 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 Department of
the Interior and Local Government: Provided, further, That any change of corporate seal shall also be registered as provided hereon.
(c) Unless otherwise provided in this Code, no 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) 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
National Government or from any higher local government unit: Provided, That projects financed by such grants or assistance with national
security implications shall be approved by the national agency concerned: Provided, further, That when such national agency fails to act on
the request for approval within thirty (30) days from receipt thereof, the same shall be deemed approved.
The local chief executive shall, within thirty (30) days upon signing of such grant agreement or deed of donation, report the nature, amount,
and terms of such assistance to both Houses of Congress and the President.
SECTION 24. Liability for Damages. – Local government units and their officials are not exempt from liability for death or injury to persons
or damage to property.

SECTION 25. National Supervision over Local Government Units. – (a) Consistent with the basic policy on local autonomy, the President
shall exercise general supervision over local government units to ensure that their acts are within the scope of their prescribed powers and
functions.
The President shall exercise supervisory 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.
(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 cropland, 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 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 the provisions of Republic Act Numbered Sixty-nine hundred seventy-five (R.A. No. 6975), otherwise
known as “The Department of the Interior and Local Government Act of 1990”, and the rules and regulations issued pursuant thereto.

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 32. City and Municipal Supervision over Their Respective Barangays. – The city or municipality, through the city or municipal
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 57. Review of Barangay Ordinances by the Sangguniang Panlungsod or Sangguniang Bayan. – (a) Within ten (10) days after its
enactment, the sangguniang barangay shall furnish copies of all barangay ordinances to the sangguniang panlungsod or sangguniang bayan
concerned for review as to whether the ordinance is consistent with law and city or municipal ordinances.
(b) If the sangguniang panlungsod or sangguniang bayan, as the case may be, fails to take action on barangay ordinances within thirty (30)
days from receipt thereof, the same shall be deemed approved.
(c) If the sangguniang panlungsod or sangguniang bayan, as the case may be, finds the barangay ordinances inconsistent with law or city or
municipal ordinances, the sanggunian concerned shall, within thirty (30) days from receipt thereof, return the same with its comments and
recommendations to the sangguniang barangay concerned for adjustment, amendment, or modification; in which case, the effectivity of the
barangay ordinance is suspended until such time as the revision called for is effected.

SECTION 59. Effectivity of Ordinances or Resolutions. – (a) Unless otherwise stated in the ordinance or the resolution approving the local
development plan and public investment program, the same shall take effect after ten (10) days from the date a copy thereof is posted in a
bulletin board at the entrance of the provincial capitol or city, municipal, or barangay hall, as the case may be, and in at least two (2) other
conspicuous places in the local government unit concerned.
(b) The secretary to the sanggunian concerned shall cause the posting of an ordinance or resolution in the bulletin board at the entrance of
the provincial capitol and the city, municipal, or barangay hall in at least two (2) conspicuous places in the local government unit concerned
not later than five (5) days after approval thereof.
The text of the ordinance or resolution shall be disseminated and posted in Filipino or English and in the language or dialect understood by
the majority of the people in the local government unit concerned, and the secretary to the sanggunian shall record such fact in a book kept
for the purpose, stating the dates of approval and posting.
(c) The gist of all ordinances with penal sanctions shall be published in a newspaper of general circulation within the province where the
local legislative body concerned belongs. In the absence of any newspaper of general circulation within the province, posting of such
ordinances shall be made in all municipalities and cities of the province where the sanggunian of origin is situated.
(d) In the case of highly urbanized and independent component cities, the main features of the ordinance or resolution duly enacted or
adopted shall, in addition to being posted, be published once in a local newspaper of general circulation within the city: Provided, That in the
absence thereof the ordinance or resolution shall be published in any newspaper of general circulation.

SECTION 60. Grounds for Disciplinary Actions. – An elective local official may be disciplined, suspended, or removed from office on any of
the following grounds:
(a) Disloyalty to the Republic of the Philippines;
(b) Culpable violation of the Constitution;
(c) Dishonesty, oppression, misconduct in office, gross negligence, or dereliction of duty;
(d) Commission of any offense involving moral turpitude or an offense punishable by at least prision mayor;
(e) Abuse of authority;
(f) Unauthorized absence for fifteen (15) consecutive working days, except in the case of members of the sangguniang panlalawigan,
sangguniang panlungsod, sangguniang bayan, and sangguniang barangay;
(g) Application for, or acquisition of, foreign citizenship or residence or the status of an immigrant of another country; and
(h) Such other grounds as may be provided in this Code and other laws.
An elective local official may be removed from office on the grounds enumerated above by order of the proper court.

SECTION 61. Form and Filing of Administrative Complaints. – A verified complaint against any erring local elective official shall be
prepared as follows:
(a) A complaint against any elective official of a province, a highly urbanized city, an independent component city or component city shall be
filed before the Office of the President;
(b) A complaint against any elective official of a municipality shall be filed before the sangguniang panlalawigan whose decision may be
appealed to the Office of the President; and
(c) A complaint against any elective barangay official shall be filed before the sangguniang panlungsod or sangguniang bayan concerned
whose decision shall be final and executory.

SECTION 62. Notice of Hearing. – (a) Within seven (7) days after the administrative complaint is filed, the Office of the President or the
sanggunian concerned, as the case may be, shall require the respondent to submit his verified answer within fifteen (15) days from receipt
thereof, and commence the investigation of the case within ten (10) days after receipt of such answer of the respondent.
(b) When the respondent is an elective official of a province or highly urbanized city, such hearing and investigation shall be conducted in
the place where he renders or holds office. For all other local elective officials, the venue shall be the place where the sanggunian concerned
is located.
(c) However, no investigation shall be held within ninety (90) days immediately prior to any local election, and no preventive suspension
shall be imposed within the said period. If preventive suspension has been imposed prior to the 90-day period immediately preceding local
election, it shall be deemed automatically lifted upon the start of aforesaid period.

SECTION 63. Preventive Suspension. – (a) Preventive suspension may be imposed:

(1) By the President, if the respondent is an elective official of a province, 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
(3) By the mayor, if the respondent is an elective official of the barangay.
(b) Preventive suspension may be imposed at any time after the issues are joined, when the evidence of guilt is strong, and given the gravity
of the offense, there is great probability that the continuance in office of the respondent could influence the witnesses or pose a threat to the
safety and integrity of the records and other evidence: Provided, That, any single preventive suspension of local elective officials shall not
extend beyond sixty (60) days: Provided, further, That in the event that several administrative cases are filed against an elective official, he
cannot be preventively suspended for more than ninety (90) days within a single year on the same ground or grounds existing and known at
the time of the first suspension.
(c) Upon expiration of the preventive suspension, the suspended elective official shall be deemed reinstated in office without prejudice to the
continuation of the proceedings against him, which shall be terminated within one hundred twenty (120) days from the time he was
formally notified of the case against him. However, if the delay in the proceedings of the case is due to his fault, neglect, or request, other
than the appeal duly filed, the duration of such delay shall not be counted in computing the time of termination of the case.
(d) Any abuse of the exercise of the power of preventive suspension shall be penalized as abuse of authority.

SECTION 64. Salary of Respondent Pending Suspension. – The respondent official preventively suspended from office shall receive no
salary or compensation during such suspension; but upon subsequent exoneration and reinstatement, he shall be paid full salary or
compensation including such emoluments accruing during such suspension.

SECTION 89. Prohibited Business and Pecuniary Interest. – (a) It shall be unlawful for any local government official or employee, directly
or indirectly, to:
(1) Engage in any business transaction with the local government unit in which he is an official or employee or over which he has the power
of supervision, or with any of its authorized boards, officials, agents, or attorneys, whereby money is to be paid, or property or any other
thing of value is to be transferred, directly or indirectly, out of the resources of the local government unit to such person or firm;
(2) Hold such interests in any cockpit or other games licensed by a local government unit;
(3) Purchase any real estate or other property forfeited in favor of such local government unit for unpaid taxes or assessment, or by virtue of
a legal process at the instance of the said local government unit;
(4) Be a surety for any person contracting or doing business with the local government unit for which a surety is required; and
(5) Possess or use any public property of the local government unit for private purposes.
(b) All other prohibitions governing the conduct of national public officers relating to prohibited business and pecuniary interest so
provided for under Republic Act Numbered Sixty-seven thirteen (R.A. No. 6713) otherwise known as the “Code of Conduct and Ethical
Standards for Public Officials and Employees” and other laws shall also be applicable to local government officials and employees.

SECTION 90. Practice of Profession. – (a) All governors, city and municipal mayors are prohibited from practicing their profession or
engaging in any occupation other than the exercise of their functions as local chief executives.
(b) Sanggunian members may practice their professions, engage in any occupation, or teach in schools except during session hours:
Provided, That sanggunian members who are also members of the Bar shall not:
(1) Appear as counsel before any court in any civil case wherein a local government unit or any office, agency, or instrumentality of the
government is the adverse party;
(2) Appear as counsel in any criminal case wherein an officer or employee of the national or local government is accused of an offense
committed in relation to his office.
(3) Collect any fee for their appearance in administrative proceedings involving the local government unit of which he is an official; and
(4) Use property and personnel of the government except when the sanggunian member concerned is defending the interest of the
government.
(c) Doctors of medicine may practice their profession even during official hours of work only on occasions of emergency: Provided, That the
officials concerned do not derive monetary compensation therefrom.

SECTION 92. Oath of Office. – (a) All elective and appointive local officials and employees shall, upon assumption to office, subscribe to an
oath or affirmation of office in the prescribed form. The oath or affirmation of office shall be filed with the office of the local chief executive
concerned. A copy of the oath or affirmation of office of all elective and appointive local officials and employees shall be preserved in the
individual personal records file under the custody of the personnel office, division, or section of the local government unit concerned.

SECTION 93. Partisan Political Activity. – No local official or employee in the career civil service shall engage directly or indirectly in any
partisan political activity or take part in any election, initiative, referendum, plebiscite, or recall, except to vote, nor shall he use his official
authority or influence to cause the performance of any political activity by any person or body. He may, however, express his views on
current issues, or mention the names of certain candidates for public office whom he supports. Elective local officials may take part in
partisan political and electoral activities, but it shall be unlawful for them to solicit contributions from their subordinates or subject these
subordinates to any of the prohibited acts under the Omnibus Election Code.

SECTION 94. Appointment of Elective and Appointive Local Officials; Candidates Who Lost in an Election. – (a) No elective or appointive
local official shall be eligible for appointment or designation in any capacity to any public office or position during his tenure.
Unless otherwise allowed by law or by the primary functions of his position, no elective or appointive local official shall hold any other office
or employment in the government or any subdivision, agency or instrumentality thereof, including government-owned or -controlled
corporations or their subsidiaries;
(b) Except for losing candidates in barangay elections, no candidate who lost in any election shall, within one (1) year after such election, be
appointed to any office in the government or any government-owned or -controlled corporations or in any of their subsidiaries.

SECTION 95. Additional or Double Compensation. – No elective or appointive local official or employee shall receive additional, double, or
indirect compensation, unless specifically authorized by law, nor accept without the consent of Congress, any present, emoluments, office, or
title of any kind from any foreign government. Pensions or gratuities shall not be considered as additional, double, or indirect compensation.

SECTION 96. Permission to Leave Station. – (a) Provincial, city, municipal, and barangay appointive officials going on official travel shall
apply and secure written permission from their respective local chief executives before departure. The application shall specify the reasons
for such travel, and the permission shall be given or withheld based on considerations of public interest, financial capability of the local
government unit concerned and urgency of the travel. Should the local chief executive concerned fail to act upon such application within four
(4) working days from receipt thereof, it shall be deemed approved.
(b) Mayors of component cities and municipalities shall secure the permission of the governor concerned for any travel outside the province.
(c) Local government officials traveling abroad shall notify their respective sanggunian: Provided, That when the period of travel extends to
more than three (3) months, during periods of emergency or crisis or when the travel involves the use of public funds, permission from the
Office of the President shall be secured.
(d) Field officers of national agencies or offices assigned in provinces, cities, and municipalities shall not leave their official stations without
giving prior written notice to the local chief executive concerned. Such notice shall state the duration of travel and the name of the officer
whom he shall designate to act for and in his behalf during his absence.

SECTION 97. Annual Report. – On or before March 31 of each year, every local chief executive shall submit an annual report to the
sanggunian concerned on the socio-economic, political and peace and order conditions, and other matters concerning the local government
unit, which shall cover the immediately preceding calendar year. A copy of the report shall be forwarded to the Department of the Interior
and Local Government. Component cities and municipalities shall likewise provide the sangguniang panlalawigan copies of their respective
annual reports.

SECTION 118. Jurisdictional Responsibility for Settlement of Boundary Dispute. – Boundary disputes between and among local
government units shall, as much as possible, be settled amicably. To this end:
(a) Boundary disputes involving two (2) or more barangays in the same city or municipality shall be referred for settlement to the
sangguniang panlungsod or sangguniang bayan concerned.
(b) Boundary disputes involving two (2) or more municipalities within the same province shall be referred for settlement to the sangguniang
panlalawigan concerned.
(c) Boundary disputes involving municipalities or component cities of different provinces shall be jointly referred for settlement to the
sanggunians of the provinces concerned.
(d) Boundary disputes involving a component city or municipality on the one hand and a highly urbanized city on the other, or two (2) or
more highly urbanized cities, shall be jointly referred for settlement to the respective sanggunians of the parties.
(e) In the event the sanggunian fails to effect an amicable settlement within sixty (60) days from the date the dispute was referred thereto, it
shall issue a certification to that effect. Thereafter, the dispute shall be formally tried by the sanggunian concerned which shall decide the
issue within sixty (60) days from the date of the certification referred to above.

SECTION 119. Appeal. – Within the time and manner prescribed by the Rules of Court, any party may elevate the decision of the
sanggunian concerned to the proper Regional Trial Court having jurisdiction over the area in dispute. The Regional Trial Court shall decide
the appeal within one (1) year from the filing thereof. Pending final resolution of the disputed area prior to the dispute shall be maintained
and continued for all legal purposes.

SECTION 129. Power to Create Sources of Revenue.  – Each local government unit shall exercise its power to create its own sources of
revenue and to levy taxes, fees, and charges subject to the provisions herein, consistent with the basic policy of local autonomy. Such taxes,
fees, and charges shall accrue exclusively to the local government units.

SECTION 130. Fundamental Principles. – The following fundamental principles shall govern the exercise of the taxing and other revenue-
raising powers of local government units:
(a) Taxation shall be uniform in each local government unit;
(b) Taxes, fees, charges and other impositions shall:
(1) be equitable and based as far as practicable on the taxpayer’s ability to pay;
(2) be levied and collected only for public purposes;
(3) not be unjust, excessive, oppressive, or confiscatory;
(4) not be contrary to law, public policy, national economic policy, or in restraint of trade;
(c) The collection of local taxes, fees, charges and other impositions shall in no case be let to any private person;
(d) The revenue collected pursuant to the provisions of this Code shall inure solely to the benefit of, and be subject to the disposition by, the
local government unit levying the tax, fee, charge or other imposition unless otherwise specifically provided herein; and,
(e) Each local government unit shall, as far as practicable, evolve a progressive system of taxation.

SECTION 133. Common Limitations on the Taxing Powers of Local Government Units. – Unless otherwise provided herein, the exercise of
the taxing powers of provinces, cities, municipalities, and barangays shall not extend to the levy of the following:
(a) Income tax, except when levied on banks and other financial institutions;
(b) Documentary stamp tax;
(c) Taxes on estates, inheritance, gifts, legacies and other acquisitions morris causa,  except as otherwise provided herein;
(d) Customs duties, registration fees of vessel and wharfage on wharves, tonnage dues, and all other kinds of customs fees, charges and dues
except wharfage on wharves constructed and maintained by the local government unit concerned;
(e) Taxes, fees, and charges and other impositions upon goods carried into or out of, or passing through, the territorial jurisdictions of local
government units in the guise of charges for wharfage, tolls for bridges or otherwise, or other taxes, fees, or charges in any form whatsoever
upon such goods or merchandise;
(f) Taxes, fees or charges on agricultural and aquatic products when sold by marginal farmers or fishermen;
(g) Taxes on business enterprises certified to by the Board of Investments as pioneer or non-pioneer for a period of six (6) and four (4)
years, respectively from the date of registration;
(h) Excise taxes on articles enumerated under the National Internal Revenue Code, as amended, and taxes, fees or charges on petroleum
products;
(i) Percentage or value-added tax (VAT) on sales, barters or exchanges or similar transactions on goods or services except as otherwise
provided herein;
(j) Taxes on the gross receipts of transportation contractors and persons engaged in the transportation of passengers or freight by hire and
common carriers by air, land or water, except as provided in this Code;
(k) Taxes on premiums paid by way of reinsurance or retrocession;
(l) Taxes, fees or charges for the registration of motor vehicles and for the issuance of all kinds of licenses or permits for the driving thereof,
except tricycles;
(m) Taxes, fees, or other charges on Philippine products actually exported, except as otherwise provided herein;
(n) Taxes, fees, or charges, on Countryside and Barangay Business Enterprises and cooperatives duly registered under R.A. No. 6810 and
Republic Act Numbered Sixty-nine hundred thirty-eight (R.A. No. 6938) otherwise known as the “Cooperative Code of the Philippines”
respectively; and
(o) Taxes, fees or charges of any kind on the National Government, its agencies and instrumentalities, and local government units.

SECTION 150. Situs of the Tax. – (a) For purposes of collection of the taxes under Section 143 of this Code, manufacturers, assemblers,
repackers, brewers, distillers, rectifiers and compounders of liquor, distilled spirits and wines, millers, producers, exporters, wholesalers,
distributors, dealers, contractors, banks and other financial institutions, and other businesses, maintaining or operating branch or sales
outlet elsewhere shall record the sale in the branch or sales outlet making the sale or transaction, and the tax thereon shall accrue and shall
be paid to the municipality where such branch or sales outlet is located. In cases where there is no such branch or sales outlet in the city or
municipality where the sale or transaction is made, the sale shall be duly recorded in the principal office and the taxes due shall accrue and
shall be paid to such city or municipality.
(b) The following sales allocation shall apply to manufacturers, assemblers, contractors, producers, and exporters with factories, project
offices, plants, and plantations in the pursuit of their business:
(1) Thirty percent (30%) of all sales recorded in the principal office shall be taxable by the city or municipality where the principal office is
located; and
(2) Seventy percent (70%) of all sales recorded in the principal office shall be taxable by the city or municipality where the factory, project
office, plant, or plantation is located.
(c) In case of a plantation located at a place other than the place where the factory is located, said seventy percent (70%) mentioned in
subparagraph (b) of subsection (2) above shall be divided as follows:
(1) Sixty percent (60%) to the city or municipality where the factory is located; and
(2) Forty percent (40%) to the city or municipality where the plantation is located.
(d) In cases where a manufacturer, assembler, producer, exporter or contractor has two (2) or more factories, project offices, plants, or
plantations located in different localities, the seventy percent (70%) sales allocation mentioned in subparagraph (b) of subsection (2) above
shall be prorated among the localities where the factories, project offices, plants, and plantations are located in proportion to their
respective volumes of production during the period for which the tax is due.
(e) The foregoing sales allocation shall be applied irrespective of whether or not sales are made in the locality where the factory, project
office, plant, or plantation is located.

SECTION 157. Individuals Liable to Community Tax. – Every inhabitant of the Philippines eighteen (18) years of age or over who has been
regularly employed on a wage or salary basis for at least thirty (30) consecutive working days during any calendar year, or who is engaged
in business or occupation, or who owns real property with an aggregate assessed value of One thousand pesos (P1,000.00) or more, or who
is required by law to file an income tax return shall pay an annual additional tax of Five pesos (P5.00) and an annual additional tax of One
peso (P1.00) for every One thousand pesos (P1,000.00) of income regardless of whether from business, exercise of profession or from
property which in no case shall exceed Five thousand pesos (P5,000.00).
In the case of husband and wife, the additional tax herein imposed shall be based upon the total property owned by them and the total gross
receipts or earnings derived by them.

SECTION 158. Juridical Persons Liable to Community Tax. – Every corporation no matter how created or organized, whether domestic or
resident foreign, engaged in or doing business in the Philippines shall pay an annual community tax of Five hundred pesos (P500.00) and an
annual additional tax, which, in no case, shall exceed Ten thousand pesos (P10,000.00) in accordance with the following schedule:
(1) For every Five thousand pesos (P5,000.00) worth of real property in the Philippines owned by it during the preceding year based on the
valuation used for the payment of real property tax under existing laws, found in the assessment rolls of the city or municipality where the
real property is situated – Two pesos (P2.00); and
(2) For every Five thousand pesos (P5,000.00) of gross receipts or earnings derived by it from its business in the Philippines during the
preceding year – Two pesos (P2.00).
The dividends received by a corporation from another corporation however shall, for the purpose of the additional tax, be considered as part
of the gross receipts or earnings of said corporation.

SECTION 159. Exemptions. – The following are exempt from the community tax:
(1) Diplomatic and consular representatives; and
(2) Transient visitors when their stay in the Philippines does not exceed three (3) months.

SECTION 160. Place of Payment. – The community tax shall be paid in the place of residence of the individual, or in the place where the
principal office of the juridical entity is located.

SECTION 161. Time for Payment; Penalties for Delinquency. – (a) The community tax shall accrue on the first (1st) day of January of each
year which shall be paid not later than the last day of February of each year. If a person reaches the age of eighteen (18) years or otherwise
loses the benefit of exemption on or before the last day of June, he shall be liable for the community tax on the day he reaches such age or
upon the day the exemption ends. However, if a person reaches the age of eighteen (18) years or loses the benefit of exemption on or before
the last day of March, he shall have twenty (20) days to pay the community tax without becoming delinquent.
Persons who come to reside in the Philippines or reach the age of eighteen (18) years on or after the first (1st) day of July of any year, or who
cease to belong to an exempt class on or after the same date, shall not be subject to the community tax for that year.
(b) Corporations established and organized on or before the last day of June shall be liable for the community tax for that year. But
corporations established and organized on or before the last day of March shall have twenty (20) days within which to pay the community
tax without becoming delinquent. Corporations established and organized on or after the first day of July shall not be subject to the
community tax for that year.
If the tax is not paid within the time prescribed above, there shall be added to the unpaid amount an interest of twenty-four percent (24%)
per annum from the due date until it is paid.

SECTION 384. Role of the Barangay. – As the basic political unit, the barangay serves as the primary planning and implementing unit of
government policies, plans, programs, projects, and activities in the community, and as a forum wherein the collective views of the people
may be expressed, crystallized and considered, and where disputes may be amicably settled.

SECTION 386. Requisites for Creation. – (a) A barangay may be created out of a contiguous territory which has a population of at least two
thousand (2,000) inhabitants as certified by the National Statistics Office except in cities and municipalities within Metro Manila and other
metropolitan political subdivisions or in highly urbanized cities where such territory shall have a certified population of at least five
thousand (5,000) inhabitants: Provided, That the creation thereof shall not reduce the population of the original barangay or barangays to
less than the minimum requirement prescribed herein.
To enhance the delivery of basic services in the indigenous cultural communities, barangays may be created in such communities by an act of
Congress, notwithstanding the above requirement.
(b) The territorial jurisdiction of the new barangay shall be properly identified by metes and bounds or by more or less permanent natural
boundaries. The territory need not be contiguous if it comprises two (2) or more islands.
(c) The governor or city mayor may prepare a consolidation plan for barangays, based on the criteria prescribed in this section, within his
territorial jurisdiction. The plan shall be submitted to the sangguniang panlalawigan or sangguniang panlungsod concerned for appropriate
action.
In the case of municipalities within the Metropolitan Manila Area and other metropolitan political subdivisions, the barangay consolidation
plan shall be prepared and approved by the sangguniang bayan concerned.

SECTION 387. Chief Officials and Offices. – (a) There shall be in each barangay a punong barangay, seven (7) sangguniang barangay
members, the sangguniang kabataan chairman, a barangay secretary, and a barangay treasurer.
(b) There shall also be in every barangay a lupong tagapamayapa. The sangguniang barangay may form community brigades and create such
other positions or offices as may be deemed necessary to carry out the purposes of the barangay government in accordance with the needs
of public service, subject to the budgetary limitations on personal services prescribed under Title Five, Book II of this Code.

SECTION 388. Persons in Authority.  – For purposes of the Revised Penal Code, the punong barangay, sangguniang barangay members,
and members of the lupong tagapamayapa in each barangay shall be deemed as persons in authority in their jurisdictions, while other
barangay officials and members who may be designated by law or ordinance and charged with the maintenance of public order, protection
and security of life and property, or the maintenance of a desirable and balanced environment, and any barangay member who comes to the
aid of persons in authority, shall be deemed agents of persons in authority.

SECTION 389. Chief Executive: Powers, Duties, and Functions.  – (a) The punong barangay, as the chief executive of the barangay
government, shall exercise such powers and perform such duties and functions, as provided by this Code and other laws.
(b) For efficient, effective and economical governance, the purpose of which is the general welfare of the barangay and its inhabitants
pursuant to Section 16 of this Code, the punong barangay shall:
(1) Enforce all laws and ordinances which are applicable within the barangay;
(2) Negotiate, enter into, and sign contracts for and in behalf of the barangay, upon authorization of the sangguniang barangay;
(3) Maintain public order in the barangay and, in pursuance thereof, assist the city or municipal mayor and the sanggunian members in the
performance of their duties and functions;
(4) Call and preside over the sessions of the sangguniang barangay and the barangay assembly, and vote only to break a tie;
(5) Upon approval by a majority of all the members of the sangguniang barangay, appoint or replace the barangay treasurer, the barangay
secretary, and other appointive barangay officials;
(6) Organize and lead an emergency group whenever the same may be necessary for the maintenance of peace and order or on occasions of
emergency or calamity within the barangay;
(7) In coordination with the barangay development council, prepare the annual executive and supplemental budgets of the barangay;
(8) Approve vouchers relating to the disbursement of barangay funds;
(9) Enforce laws and regulations relating to pollution control and protection of the environment;
(10) Administer the operation of the katarungang pambarangay in accordance with the provisions of this Code;
(11) Exercise general supervision over the activities of the sangguniang kabataan;
(12) Ensure the delivery of basic services as mandated under Section 17 of this Code;
(13) Conduct an annual palarong barangay which shall feature traditional sports and disciplines included in national and international
games, in coordination with the Department of Education, Culture and Sports;
(14) Promote the general welfare of the barangay; and
(15) Exercise such other powers and perform such other duties and functions as may be prescribed by law or ordinance.
(b) In the performance of his peace and order functions, the punong barangay shall be entitled to possess and carry the necessary firearm
within his territorial jurisdiction, subject to appropriate rules and regulations.

SECTION 390. Composition. – The sangguniang barangay, the legislative body of the barangay, shall be composed of the punong barangay
as presiding officer, and the seven (7) regular sangguniang barangay members elected at large and sangguniang kabataan chairman, as
members.

SECTION 391. Powers, Duties, and Functions.  – (a) The sangguniang barangay, as the legislative body of the barangay, shall:
(1) Enact ordinances as may be necessary to discharge the responsibilities conferred upon it by law or ordinance and to promote the general
welfare of the inhabitants therein;
(2) Enact tax and revenue ordinances, subject to the limitations imposed in this Code;
(3) Enact annual and supplemental budgets in accordance with the provisions of this Code;
(4) Provide for the construction and maintenance of barangay facilities and other public works projects chargeable to the general fund of the
barangay or such other funds actually available for the purpose;
(5) Submit to the sangguniang panlungsod or sangguniang bayan such suggestions or recommendations as it may see fit for the
improvement of the barangay or for the welfare of the inhabitants thereof;
(6) Assist in the establishment, organization, and promotion of cooperative enterprises that will improve the economic condition and well-
being of the residents;
(7) Regulate the use of multi-purpose halls, multi-purpose pavements, grain or copra dryers, patios and other post-harvest facilities,
barangay waterworks, barangay markets, parking areas or other similar facilities constructed with government funds within the jurisdiction
of the barangay and charge reasonable fees for the use thereof;
(8) Solicit or accept monies, materials and voluntary labor for specific public works and cooperative enterprises of the barangay from
residents, land owners, producers and merchants in the barangay; monies from grants-in-aid, subsidies, contributions, and revenues made
available to the barangays from national, provincial, city or municipal funds; and monies from other private agencies and individuals:
Provided, however, That monies or properties donated by private agencies and individuals for specific purposes shall accrue to the barangay
as trust fund;
(9) Solicit or accept, in any or all the foregoing public works and cooperative enterprises, such cooperation as is made available by national,
provincial, city, or municipal agencies established by law to render financial, technical, and advisory assistance to barangays and to barangay
residents: Provided, however, That in soliciting or accepting such cooperation, the sangguniang barangay need not pledge any sum of money
for expenditure in excess of amounts currently in the barangay treasury or encumbered for other purposes;
(10) Provide compensation, reasonable allowances or per diems as well as travel expenses for sangguniang barangay members and other
barangay officials, subject to the budgetary limitations prescribed under Title Five, Book II of this Code: Provided, however, That no increase
in the compensation or honoraria of the sangguniang barangay members shall take effect until after the expiration of the full term of all
members of the sangguniang barangay approving such increase;
(11) Hold fund-raising activities for barangay projects without the need of securing permits from any national or local office or agency. The
proceeds from such activities shall be tax-exempt and shall accrue to the general fund of the barangay: Provided, That in the appropriation
thereof, the specific purpose for which such fund-raising activity has been held shall be first satisfied: Provided, further, That no fund-raising
activities shall be held within a period of sixty (60) days immediately preceding and after a national or local election, recall, referendum, or
plebiscite: Provided, finally, That said fund-raising activities shall comply with national policy standards and regulations on morals, health,
and safety of the persons participating therein. The sangguniang barangay, through the punong barangay, shall render a public accounting of
the funds raised at the completion of the project for which the fund-raising activity was undertaken;
(12) Authorize the punong barangay to enter into contracts in behalf of the barangay, subject to the provisions of this Code;
(13) Authorize the barangay treasurer to make direct purchases in an amount not exceeding One thousand pesos (P1,000.00) at any one
time for the ordinary and essential administrative needs of the barangay;
(14) Prescribe fines in amounts not exceeding One thousand pesos (P1,000.00) for violation of barangay ordinances;
(15) Provide for the administrative needs of the lupong tagapamayapa and the pangkat ng tagapagkasundo;
(16) Provide for the organization of community brigades,  barangay tanod, or community service units as may be necessary;
(17) Organize regular lectures, programs, or fora on community problems such as sanitation, nutrition, literacy, and drug abuse, and
convene assemblies to encourage citizen participation in government;
(18) Adopt measures to prevent and control the proliferation of squatters and mendicants in the barangay;
(19) Provide for the proper development and welfare of children in the barangay by promoting and supporting activities for the protection
and total development of children, particularly those below seven (7) years of age;
(20) Adopt measures towards the prevention and eradication of drug abuse, child abuse, and juvenile delinquency;
(21) Initiate the establishment of a barangay high school, whenever feasible, in accordance with law;
(22) Provide for the establishment of a non-formal education center in the barangay whenever feasible, in coordination with the Department
of Education, Culture and Sports;
(23) Provide for the delivery of basic services; and
(24) Exercise such other powers and perform such other duties and functions as may be prescribed by law or ordinance.

SECTION 392. Other Duties of Sangguniang Barangay Members. – In addition to their duties as members of the sangguniang barangay,
sangguniang barangay members may:
(a) Assist the punong barangay in the discharge of his duties and functions;
(b) Act as peace officers in the maintenance of public order and safety; and
(c) Perform such other duties and functions as the punong barangay may delegate.

SECTION 393. Benefits of Barangay Officials. – (a) Barangay officials, including barangay tanods and members of the lupong
tagapamayapa, shall receive honoraria, allowances, and such other emoluments as may be authorized by law or barangay, municipal or city
ordinance in accordance with the provisions of this Code, but in no case shall it be less than One thousand pesos (P1,000.00) per month for
the punong barangay and Six hundred pesos (P600.00) per month for the sangguniang barangay members, barangay treasurer, and
barangay secretary: Provided, however, That the annual appropriations for personal services shall be subject to the budgetary limitations
prescribed under Title Five, Book II of this Code;
(b) The punong barangay, the sangguniang barangay members, the barangay treasurer, and the barangay secretary shall also:
(1) Be entitled to Christmas bonus of at least One thousand pesos (P1,000.00) each, the funds for which shall be taken from the general fund
of the barangay or from such other funds appropriated by the National Government for the purpose;
(2) Be entitled, during their incumbency, to insurance coverage which shall include, but shall not be limited to temporary and permanent
disability, double indemnity, accident insurance, death and burial benefits, in accordance with Republic Act Numbered Sixty-nine hundred
forty-two (R.A. No. 6942), entitled “An Act Increasing the Insurance Benefits of Local Government Officials and Providing Funds Therefor”;
(3) Be entitled to free medical care including subsistence, medicines, and medical attendance in any government hospital or institution:
Provided, That such hospital care shall include surgery or surgical expenses, medicines, X-rays, laboratory fees, and other hospital expenses;
In case of extreme urgency where there is no available government hospital or institution, the barangay official concerned may submit
himself for immediate medical attendance to the nearest private clinic, hospital or institution and the expenses not exceeding Five thousand
pesos (P5,000.00) that may be incurred therein shall be chargeable against the funds of the barangay concerned;
(4) Be exempted during their incumbency from paying tuition and matriculation fees for their legitimate dependent children attending state
colleges or universities. He may likewise avail of such educational benefits in a state college or university located within the province or city
to which the barangay belongs; and
(5) Be entitled to appropriate civil service eligibility on the basis of the number of years of service to the barangay, pursuant to the rules and
regulations issued by the Civil Service Commission.
(c) Elective barangay officials shall have preference in appointments to any government position or in any government-owned or -controlled
corporations, including their subsidiaries, after their tenure of office, subject to the requisite qualifications and the provisions of the
immediately preceding paragraph.
(d) All duly appointed members of the barangay tanod brigades, or their equivalent, which shall number not more than twenty (20) in each
barangay, shall be granted insurance or other benefits during their incumbency, chargeable to the barangay or the city or municipal
government to which the barangay belongs.

SECTION 394. Barangay Secretary: Appointment, Qualifications, Powers and Duties. – (a) The barangay secretary shall be appointed by
the punong barangay with the concurrence of the majority of all the sangguniang barangay members. The appointment of the barangay
secretary shall not be subject to attestation by the Civil Service Commission.
(b) The barangay secretary shall be of legal age, a qualified voter and an actual resident of the barangay concerned.
(c) No person shall be appointed barangay secretary if he is a sangguniang barangay member, a government employee, or a relative of the
punong barangay within the fourth civil degree of consanguinity of affinity.
(d) The barangay secretary shall:
(1) Keep custody of all records of the sangguniang barangay and the barangay assembly meetings;
(2) Prepare and keep the minutes of all meetings of the sangguniang barangay and the barangay assembly;
(3) Prepare a list of members of the barangay assembly, and have the same posted in conspicuous places within the barangay;
(4) Assist in the preparation of all necessary forms for the conduct of barangay elections, initiatives, referenda or plebiscites, in coordination
with the COMELEC;
(5) Assist the municipal civil registrar in the registration of births, deaths, and marriages;
(6) Keep an updated record of all inhabitants of the barangay containing the following items of information: name, address, place and date of
birth, sex, civil status, citizenship, occupation, and such other items of information as may be prescribed by law or ordinance;
(7) Submit a report on the actual number of barangay residents as often as may be required by the sangguniang barangay; and
(8) Exercise such other powers and perform such other duties and functions as may be prescribed by law or ordinance.
SECTION 395. Barangay Treasurer: Appointment, Qualifications, Powers and Duties. – (a) The barangay treasurer shall be appointed by
the punong barangay with the concurrence of the majority of all the sangguniang barangay members. The appointment of the barangay
treasurer shall not be subject to attestation by the Civil Service Commission.
(b) The barangay treasurer shall be of legal age, a qualified voter, and an actual resident of the barangay concerned.
(c) No person shall be appointed barangay treasurer if he is a sangguniang barangay member, a government employee, or a relative of the
punong barangay within the fourth civil degree of consanguinity or affinity.
(d) The barangay treasurer shall be bonded in accordance with existing laws in an amount to be determined by the sangguniang barangay
but not exceeding Ten thousand pesos (P10,000.00), premiums for which shall be paid by the barangay.
(e) The barangay treasurer shall:
(1) Keep custody of barangay funds and properties;
(2) Collect and issue official receipts for taxes, fees, contributions, monies, materials, and all other resources accruing to the barangay
treasury and deposit the same in the account of the barangay as provided under Title Five, Book II of this Code;
(3) Disburse funds in accordance with the financial procedures provided in this Code;
(4) Submit to the punong barangay a statement covering the actual and estimates of income and expenditures for the preceding and ensuing
calendar years, respectively, subject to the provisions of Title Five, Book II of this Code.
(5) Render a written accounting report of all barangay funds and property under his custody at the end of each calendar year, and ensure
that such report shall be made available to the members of the barangay assembly and other government agencies concerned;
(6) Certify as to the availability of funds whenever necessary;
(7) Plan and attend to the rural postal circuit within his jurisdiction; and
(8) Exercise such other powers and perform such other duties and functions as may be prescribed by law or ordinance.

SECTION 396. Other Appointive Officials. – The qualifications, duties, and functions of all other barangay officials appointed by the punong
barangay shall be governed by the provisions of this Code and other laws or by barangay ordinances.

SECTION 399. Lupong Tagapamayapa. – (a) There is hereby created in each barangay a lupong tagapamayapa, hereinafter referred to as
the lupon, composed of the punong barangay, as chairman and ten (10) to twenty (20) members. The lupon shall be constituted every three
(3) years in the manner provided herein.
(b) Any person actually residing or working in the barangay, not otherwise expressly disqualified by law, and possessing integrity,
impartiality, independence of mind, sense of fairness, and reputation for probity, may be appointed a member of the lupon.
(c) A notice to constitute the lupon, which shall include the names of proposed members who have expressed their willingness to serve, shall
be prepared by the punong barangay within the first fifteen (15) days from the start of his term of office. Such notice shall be posted in three
(3) conspicuous places in the barangay continuously for a period of not less than three (3) weeks;
(d) The punong barangay, taking into consideration any opposition to the proposed appointment or any recommendations for appointment
as may have been made within the period of posting, shall within ten (10) days thereafter, appoint as members those whom he determines
to be suitable therefor. Appointments shall be in writing, signed by the punong barangay, and attested to by the barangay secretary.
(e) The list of appointed members shall be posted in three (3) conspicuous places in the barangay for the entire duration of their term of
office; and
(f) In barangays where majority of the inhabitants are members of indigenous cultural communities, local systems of settling disputes
through their councils of datus or elders shall be recognized without prejudice to the applicable provisions of this Code.

SECTION 402. Functions of the Lupon. – The lupon shall:

(a) Exercise administrative supervision over the conciliation panels provided herein;
(b) Meet regularly once a month to provide a forum for exchange of ideas among its members and the public on matters relevant to the
amicable settlement of disputes, and to enable various conciliation panel members to share with one another their observations and
experiences in effecting speedy resolution of disputes; and
(c) Exercise such other powers and perform such other duties and functions as may be prescribed by law or ordinance.

SECTION 408. Subject Matter for Amicable Settlement; Exception Thereto. – The lupon of each barangay shall have authority to bring
together the parties actually residing in the same city or municipality for amicable settlement of all disputes except:
(a) Where one party is the government, or any subdivision or instrumentality thereof;
(b) Where one party is a public officer or employee, and the dispute relates to the performance of his official functions;
(c) Offenses punishable by imprisonment exceeding one (1) year or a fine exceeding Five thousand pesos (P5,000.00);
(d) Offenses where there is no private offended party;
(e) Where the dispute involves real properties located in different cities or municipalities unless the parties thereto agree to submit their
differences to amicable settlement by an appropriate lupon;
(f) Disputes involving parties who actually reside in barangays of different cities or municipalities, except where such barangay units adjoin
each other and the parties thereto agree to submit their differences to amicable settlement by an appropriate lupon;
(g) Such other classes of disputes which the President may determine in the interest of justice or upon the recommendation of the Secretary
of Justice.
The court in which non-criminal cases not falling within the authority of the lupon under this Code are filed may, at any time before trial,
motu proprio refer the case to the lupon concerned for amicable settlement.

SECTION 410. Procedure for Amicable Settlement. – (a) Who may initiate proceeding – Upon payment of the appropriate filing fee, any
individual who has a cause of action against another individual involving any matter within the authority of the lupon may complain, orally
or in writing, to the lupon chairman of the barangay.
(b) Mediation by lupon chairman – Upon receipt of the complaint, the lupon chairman shall, within the next working day, summon the
respondent(s), with notice to the complainant(s) for them and their witnesses to appear before him for a mediation of their conflicting
interests. If he fails in his mediation effort within fifteen (15) days from the first meeting of the parties before him, he shall forthwith set a
date for the constitution of the pangkat in accordance with the provisions of this Chapter.
(c) Suspension of prescriptive period of offenses – While the dispute is under mediation, conciliation, or arbitration, the prescriptive periods
for offenses and cause of action under existing laws shall be interrupted upon filing of the complaint with the punong barangay. The
prescriptive periods shall resume upon receipt by the complainant of the complaint or the certificate of repudiation or of the certification to
file action issued by the lupon or pangkat secretary: Provided, however, That such interruption shall not exceed sixty (60) days from the
filing of the complaint with the punong barangay.
(d) Issuance of summons; hearing; grounds for disqualification – The pangkat shall convene not later than three (3) days from its
constitution, on the day and hour set by the lupon chairman, to hear both parties and their witnesses, simplify issues, and explore all
possibilities for amicable settlement. For this purpose, the pangkat may issue summons for the personal appearance of parties and witnesses
before it. In the event that a party moves to disqualify any member of the pangkat by reason of relationship, bias, interest, or any other
similar grounds discovered after the constitution of the pangkat, the matter shall be resolved by the affirmative vote of the majority of the
pangkat whose decision shall be final. Should disqualification be decided upon, the resulting vacancy shall be filled as herein provided for.
e) Period to arrive at a settlement – The pangkat shall arrive at a settlement or resolution of the dispute within fifteen (15) days from the day
it convenes in accordance with this section. This period shall, at the discretion of the pangkat, be extendible for another period which shall
not exceed fifteen (15) days, except in clearly meritorious cases.

SECTION 411. Form of Settlement. – All amicable settlements shall be in writing, in a language or dialect known to the parties, signed by
them, and attested to by the lupon chairman or the pangkat chairman, as the case may be. When the parties to the dispute do not use the
same language or dialect, the settlement shall be written in the language known to them.

SECTION 412. Conciliation. – (a) Pre-condition to Filing of Complaint in Court. – No complaint, petition, action, or proceeding involving any
matter within the authority of the lupon shall be filed or instituted directly in court or any other government office for adjudication, unless
there has been a confrontation between the parties before the lupon chairman or the pangkat, and that no conciliation or settlement has
been reached as certified by the lupon secretary or pangkat secretary as attested to by the lupon or pangkat chairman or unless the
settlement has been repudiated by the parties thereto.
(b) Where Parties May Go Directly to Court. – The parties may go directly to court in the following instances:
(1) Where the accused is under detention;
(2) Where a person has otherwise been deprived of personal liberty calling for habeas corpus proceedings;
(3) Where actions are coupled with provisional remedies such as preliminary injunction, attachment, delivery of personal property and
support pendente lite; and
(4) Where the action may otherwise be barred by the statute of limitations.
(c) Conciliation Among Members of Indigenous Cultural Communities.  – The customs and traditions of indigenous cultural communities
shall be applied in settling disputes between members of the cultural communities.

SECTION 414. Proceedings Open to the Public; Exception. – All proceedings for settlement shall be public and informal: Provided,
however, That the lupon chairman or the pangkat chairman, as the case may be, may motu proprio or upon request of a party, exclude the
public from the proceedings in the interest of privacy, decency, or public morals.

SECTION 536. Effectivity Clause. – This Code shall take effect on January first, Nineteen Hundred Ninety-Two, unless otherwise provided
herein, after its complete publication in at least one (1) newspaper of general circulation.