AN ACT GRANTING FURTHER AUTONOMOUS POWERS TO LOCAL GOVERNMENTS

Case Overview and Summary

Summary of Republic Act No. 5185 (Decentralization Act of 1967)

Declaration of Policy (Section 2)
- Transform local governments into effective instruments for self-governance
- Grant greater autonomy and resources to local governments

Additional Powers and Functions (Section 3)
- Provincial and city governments can undertake agricultural extension and rural health work
- They can retain funds previously contributed for these services
- Personnel performing these services shall be absorbed by local governments

Appointment of Local Officials (Section 4)
- Provincial/city heads of offices paid by local funds shall be appointed by governor/mayor
- Vacancies shall be filled from list of 5 eligible persons certified by Civil Service
- Other employees shall be appointed by governor/mayor on office head's recommendation
- Salary scales can be applied to lower class local governments after 2 years

Suspension and Removal of Elective Officials (Section 5)
- Grounds: disloyalty, dishonesty, oppression, misconduct
- Charges filed before President (provincial/city officials) or governor (municipal officials)
- Investigation within 10 days, decision within 30 days after investigation
- Suspension not exceeding unexpired term, not a bar to candidacy

Prohibition Against Practice (Section 6)
- Local officials cannot appear as counsel against their local government

Succession to Vacant Offices (Sections 7-10)
- Vice-governor/mayor succeeded by highest-ranking board/council member (Section 7)
- Vacancies in board/council filled by next highest-ranking members (Section 8)
- Vacancies before 60 days of presidential election filled by special election (Section 8)
- Vacancies after 60 days filled by appointment from officer's party (Section 8)
- Newly created local government units filled by election (Sections 9-10)

Actions Effective Without National Approval (Section 11)
- Lists actions by provincial/city/municipal officials effective without national approval
- Budgets effective upon approval by local legislative bodies
- Consolidation of special funds into general fund

Duties of Local Executives (Section 12)
- Certain duties of local executives not subject to national direction/review

Increase in Regular Allotment (Section 13)
- Provincial/city allotment increased from 10% to 13%
- Municipal allotment increased from 2% to 4%

Release of Allotments (Sections 14-17)
- Internal revenue allotment released monthly by BIR (Section 14)
- Income tax from wages credited equally to municipalities (Section 15)
- Highway fund shares released quarterly by BPH (Section 16)
- Sweepstakes/horse race/lottery shares released monthly (Section 17)

Creation of Positions (Sections 18-19)
- Positions of Provincial Engineer and City Public Works Supervisor created (Section 18)
- Positions of Provincial Attorney and City Legal Officer created (Section 19)

Creation of Municipalities (Section 20)
- Municipalities/municipal districts created only by Congress

Joint Local Government Reform Commission (Section 21)
- Commission created to study local government role and prepare local government code

Penalties (Section 22)
- Violations punishable by imprisonment (6 months - 1 year) and/or fine (₱1,000 - ₱2,000)
- Violations also ground for suspension/dismissal and perpetual disqualification

Rights Maintained (Section 23)
- Rights, benefits and privileges of officials/employees maintained
- Liberal interpretation in favor of local government powers