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ROLE AND CREATION OF THE BARANGAY

Sec. 384. Role of the Barangay. - As the basic political unit, the Barangay serves asthe primary planning and implementing unit of government policies, plans,programs, proects, and activities in the community, and as a forum !herein thecollective vie!s of the people may be e"pressed, crystalli#ed and considered, and

!here disputes may be amicably settled.Sec. 38$. %anner of &reation. - A Barangay may be created, divided, merged,abolished, or its boundary substantially altered, by la! or by an ordinance of theSangguniang 'anlala!igan or Sangguniang 'anlungsod, subect to approval by amaority of the votes cast in a plebiscite to be conducted by the &omelec in thelocal government unit or units directly affected !ithin such period of time as maybe determined by the la! or ordinance creating said Barangay. (n the case of thecreation of Barangays by the Sangguniang 'anlala!igan, the recommendation ofthe Sangguniang Bayan concerned shall be necessary.Sec. 38). Re*uisites for &reation. -A Barangay maybe created out of a contiguous territory !hich has a population ofat least t!o thousand +, inhabitants as certified by the /ational Statistics

0ffice e"cept in cities and municipalities !ithin %etro %anila and other metropolitanpolitical subdivisions or in highly urbani#ed cities !here such territory shall have acertified population of at least five thousand+$, inhabitants1 'rovided, 2hat thecreation thereof shall not reduce the population of the original Barangay orBarangays to less than the minimum re*uirement prescribed herein.

2o enhance the delivery of basic services in the indigenous cultural communities,Barangays may be created in such communities by an Act of &ongress,not!ithstanding the above re*uirement.

2he territorial urisdiction of the ne! Barangay shall be properly identified by metesand bounds or by more or less permanent natural boundaries. 2he territory neednot be contiguous if it comprises t!o + or more islands.

2he governor or city mayor may prepare a consolidation plan for Barangays, basedon the criteria prescribed in this Section, !ithin his territorial urisdiction. 2he planshall be submitted to the Sangguniang 'anlala!igan or Sangguniang 'anlungsodconcerned for appropriate action. (n the case of municipalities !ithin the %etropolitan %anila area and othermetropolitan political subdivisions, the Barangay consolidation plan shall beprepared and approved by the Sangguniang Bayan concerned.

BARANGAY OFFICIALS AND OFFICES

Sec. 38. &hief 0fficials and 0ffices. -2here shall be in each Barangay a 'unong Barangay, seven + SangguniangBarangay members, the Sangguniang abataan chairman, a Barangay Secretary,and a Barangay treasurer.

2here shall also be in every Barangay a 5upong 2agapamayapa. 2he SangguniangBarangay may form community brigades and create such other positions or officesas may be deemed necessary to carry out the purposes of the Barangay

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government in accordance !ith the needs of public service, subect to thebudgetary limitations on personal services prescribed under 2itle 6ive, Boo7 (( ofthis &ode.Sec. 388. 'ersons in Authority. - 6or purposes of the Revised 'enal &ode, the'unong Barangay, Sangguniang Barangay members, and members of the 5upong

2agapamayapa in each Barangay shall be deemed as persons in authority in their

urisdictions, !hile other Barangay officials and members !ho may be designatedby la! or ordinance and charged !ith the maintenance of public order, protectionand security of life and property, or the maintenance of a desirable and balancedenvironment, and any Barangay member !ho comes to the aid of persons inauthority, shall be deemed agents of persons in authority.

PUNONG BARANGAY

Sec. 38. &hief 9"ecutive1 'o!ers, :uties, and 6unctions. -2he 'unong Barangay, as the chief e"ecutive of the Barangay government, shalle"ercise such po!ers and perform such duties and functions, as provided by this&ode and other la!s.

6or efficient, effective and economical governance, the purpose of !hich is thegeneral !elfare of the Barangay and its inhabitants pursuant to Section ;) of this&ode, the 'unong Barangay shall19nforce all la!s and ordinances !hich are applicable !ithin the Barangaye shall hold office until a ne!lupon is constituted on the third year follo!ing his appointment unless soonerterminated by resignation, transfer of residence or place of !or7, or !ithdra!al ofappointment by the 'unong Barangay !ith the concurrence of the maority of all themembers of the lupon.

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Sec. 4;. Eacancies. - Should a vacancy occur in the lupon for any cause, the'unong Barangay shall immediately appoint a *ualified person !ho shall hold officeonly for the une"pired portion of the term.Sec. 4. 6unctions of the 5upon. - 2he lupon shall19"ercise administrative supervision over the conciliation panels provided hereinundred /inety-9ight +'.:. /o. ;8, other!ise

7no!n as @2he 'rovincial Fater =tility Act of ;3,@ to the 5ocal Fater =tilitiesAdministration +5F=A may be devolved in toto to the e"isting local !ater districtsshould they opt or choose to e"ercise, in !riting, such po!ers, functions andattributes1 'rovided, 2hat all obligations of the local government unit concerned tothe 5F=A shall first be settled prior to said devolution.Sec. $3;. :ebt Relief for 5ocal overnment =nits. -=nremitted national collections and statutory contributions. - All debts o!ed by localgovernment units to the national government in unremitted contributions to the(ntegrated /ational 'olice 6und, the Special 9ducation 6und, and other statutorycontributions as !ell as in unremitted national government shares of ta"es,charges, and fees collected by the local government units, are hereby !ritten off infull.

'rogram loans. -'rogram loans secured by local government units !hich !ere relent to privatepersons, natural or uridical, shall li7e!ise be !ritten off from the boo7s of the localgovernment units concerned1 'rovided, ho!ever, 2hat the national governmentagency tas7ed !ith the implementation of these programs shall continue to collectfrom the debtors belonging to the private sector concerned.

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'rogram loans granted to local government units by national government agenciesand !hich !ere utili#ed by the local units for community development, livelihood,and other small-scale proects are hereby !ritten off in full.

Settlement of debts due to government financing institutions +6(s, government-o!ned and controlled corporations +0&&s, and private utilities. - 2he national

government shall assume all debts incurred or contracted by local government unitsfrom 6(s, 0&&s, and private utilities that are outstanding as of :ecember 3;,;88, in accordance !ith the follo!ing schemes1:ebts due 6(s. - 2he national government may buy outstanding obligationsincurred by local government units from government financing institutions at adiscounted rate.

:ebts due 0&&s. - 2he national government may settle such obligations atdiscounted rate through offsetting, only to the e"tent of the obligations of localgovernments against the outstanding advances made by the /ational 2reasury inbehalf of the government-o!ned and controlled corporations concerned.

:ebts :ue 'rivate =tilities.- 2he national government may settle these obligationsat a discounted rate by offsetting against the outstanding obligations of suchprivate utilities to government-o!ned corporations. 0&&s may in turn offset theseobligations against the outstanding advances made by the /ational 2reasury intheir behalf.(n the case of obligations o!ed by local government units to private utilities !hichare not indebted to any 0&& or national government agency, the nationalgovernment may instead buy the obligations of the local government units from theprivate utilities at a discounted rate, upon concurrence by the private utilitiesconcerned.5imitations. - 0bligations to the >ome :evelopment and %utual 6und +'ag-ibig,%edicare, and those pertaining to premium contributions and amorti#ation

payments of salary and policyloans to the overnment Service (nsurance Systemare e"cluded from the coverage of this Section.

Recovery schemes for the national government. - 5ocal government units shall paybac7 the national government !hatever amounts !ere advanced or offset by thenational government to settle their obligations to 6(s, 0&&s, and private utilities.

2he national government shall not charge interest or penalties on the outstandingbalance o!ed by the local government units.

2hese outstanding obligations shall be restructured and an amorti#ation scheduleprepared, based on the capability of the local government unit to pay, ta7ing intoconsideration the amount o!ed to the /ational overnment.

2he /ational overnment is hereby authori#ed to deduct from the *uarterly shareof each local government unit in the internal revenue collections an amount to bedetermined on the basis of the amorti#ation schedule of the local unit concerned1'rovided, 2hat such amount shall not e"ceed five percent +$D of the monthlyinternal revenue allotment of the local government unit concerned.As incentive to debtor-local government units to increase the efficiency of theirfiscal administration, the national government shall !rite off the debt of the localgovernment unit concerned at the rate of five percent +$D for every one percent

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+;D increase in revenues generated by such local government unit over that of thepreceding year. 6or this purpose, the annual increase in local revenue collectionshall be computed starting from the year ;88.Appropriations. - Such amount as may be necessary to implement the provisions ofthis Section shall be included in the annual eneral Appropriations Act.Sec. $3. 9lections for the Sangguniang abataan. -

2he first elections for the Sangguniang 7abataan to be conducted under this &odeshall be held thirty +3 days after the ne"t local elections1 'rovided, 2hat, theregular elections for the Sangguniang 7abataan shall be held one hundred t!enty+; days after the Barangay elections thereafter.

2he amount pertaining to the ten percent +;D allocation for the 7abataangBarangay as provided for in Section ;3 of Batas 'ambansa Blg. 33 is herebyreappropriated for the purpose of funding the first elections mentioned above. 2hebalance of said funds, if there be any after the said elections, shall be administeredby the 'residential &ouncil for Iouth Affairs for the purpose of training the ne!lyelected Sangguniang 7abataan officials in the discharge of their functions.

6or the regular elections of the Sangguniang 7abataan, funds shall be ta7en fromthe ten percent +;D of the Barangay funds reserved for the Sangguniang7abataan, as provided for in Section 38 of this &ode.

All seats reserved for the pederasyon ng mga Sangguniang 7abataan in thedifferent Sanggunians shall be deemed vacant until such time that the Sangguniang7abataan chairmen shall have been elected and the respective pederasyonpresidents have been selected1 'rovided, 2hat, elections for the 7abataangBarangay conducted under Batas 'ambansa Blg. 33 at any time bet!een Ganuary;, ;88 and Ganuary ;, ; shall be considered as the first elections provided for inthis &ode. 2he term of office of the 7abataang Barangay officials elected !ithin thesaid period shall be e"tended correspondingly to coincide !ith the term of office of

those elected under this &ode.Sec. $33. 6ormulation of (mplementing Rules and Regulations. -Fithin one +; month after the approval of this &ode, the 'resident shall convenethe 0versight &ommittee as herein provided for. 2he said &ommittee shallformulate and issue the appropriate rules and regulations necessary for the efficientand effective implementation of any and all provisions of this &ode, therebyensuring compliance !ith the principles of local autonomy as defined under the&onstitution.

2he &ommittee shall be composed of the follo!ing12he 9"ecutive Secretary, !ho shall be the &hairman