SECTION 1. Declaration of Policy.—The State shall ensure the autonomy of local governments. For this purpose, it shall provide for a more responsive and accountable local government structure instituted through a system of decentralization. The allocation of powers and resources to local government units shall be promoted, and inter-local government grouping, consolidation and coordination of resources shall be encouraged. The State shall guarantee the local government units their just share in national taxes and their equitable share in proceeds from the use of natural resources, and afford them a wider latitude for resources generation.
SECTION 2. Mandate.—The Department shall assist the President in the exercise of general supervision over local governments and in ensuring autonomy, decentralization and community empowerment.
SECTION 3. Powers and Functions.—To accomplish its mandate, the Department shall:
(1) Advise the President on the promulgation of policies, rules, regulations and other issuances relative to the general supervision of local government units;
(2) Establish and prescribe rules, regulations and other issuances and implementing laws on the general supervision of local government units and on the promotion of local autonomy and monitor compliance thereof by said units;
(3) Provide assistance in the preparation of national legislation affecting local government units;
(4) Establish and prescribe plans, policies, programs and projects to strengthen the administrative, technical and fiscal capabilities of local government offices and personnel;
(5) Formulate and implement policies, plans, programs and projects to meet national and local emergencies arising from natural and man-made disasters; and
(6) Perform such other functions as may be provided by law.
SECTION 4. Organizational Structure.—The Department, shall be composed of the Office of the Secretary, and the staff and line offices which shall consist of the following:
(1) Bureau of Local Government Supervision;
(2) Bureau of Local Government Development;
(3) National Barangay Operations Office;
(4) Project Development Services;
(5) Department Services;
(6) Office of Public Affairs; and
(7) Regional and Field Offices.