Section 1. Lupong Tagapayapa. —

1. Creation. —

   There is hereby created in each barangay a body to be known as Lupong Tagapayapa (hereinafter referred to as Lupon) composed of the Barangay Captain as chairman and not less than ten (10) nor more than twenty (20) members, to be constituted every two years in the following manner:

   1. Any suitable person actually residing or working in the barangay, not otherwise expressly disqualified by law, and taking into account considerations of integrity, impartiality, independence of mind, sense of fairness, and reputation for probity, including educational attainment, may be appointed member;

   2. 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 Barangay Captain within thirty (30) days after this Decree shall have become effective, and thereafter within the first ten (10) days of January of every other year. Such notice shall be posted in three (3) conspicuous places in the barangay continuously for a period of not less than three (3) weeks;

   3. The Barangay Captain, taking into consideration any opposition to the proposed appointment or any recommendation/s 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;

   4. Appointments shall be in writing signed by the Barangay Captain and attested by the Barangay Secretary;

   5. 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;

   6. When used herein:

      Barangay refers not only to barrios which were declared barangays by virtue of Presidential Decree No. 557 but also to barangays otherwise known as citizens assemblies pursuant to Presidential Decree No. 86.

      Barangay Captain refers to the Barangay Captains of the barrios which were declared barangay by virtue of Presidential Decree No. 557 and to the Chairmen of barangays otherwise known as citizens assemblies pursuant to Presidential Decree No. 86.

2. Oath and Term of Office. —

   Upon appointment, each member shall take an oath of office before the Barangay Captain. He shall hold office until December 31 of the calendar year subsequent to the year of his appointment unless sooner terminated by resignation, transfer of residence or place of work, or withdrawal of appointment by the Barangay Captain with the concurrence of the majority of all the members of the Lupon.

3. Vacancy, Lupon. —

   Should a vacancy occur in the Lupon for any cause the Barangay Captain shall as soon as possible appoint a suitable replacement. The person appointed shall hold office only for the unexpired portion of the term of the member whom he replaces.

4. Functions. —

   The Lupon shall exercise administrative supervision over the conciliation panels hereinafter provided for. It shall meet regularly once a month (1) to provide a forum for the exchange of ideas among its members and the public on matters relevant to the amicable settlement of disputes; and (2) to enable the various panels to share with one another their observation and experiences in effecting speedy resolution of disputes.

5. Secretary of the Lupon. —

   The Barangay Secretary shall concurrently be the Secretary of the Lupon. He shall note the results of the mediation proceedings before the Barangay Captain and shall submit a report thereon to the proper city or municipal court. He shall also receive and keep the records of proceedings submitted to him by the various conciliation panels. He shall issue the certification referred to in Section 6 hereof.

6. Conciliation Panels. —

   There shall be constituted for each dispute brought before the Lupon a conciliation panel to be known as Pangkat ng Tagapagkasundo (hereinafter referred to as Pangkat) consisting of three (3) members who shall be chosen by agreement of the parties to the dispute from the list of membership of the Lupon.

   Should the parties fail to agree, they shall, in the presence of the Barangay Captain or Secretary, make the selection in the following manner: one party, determined by lot, shall strike out from the list one name; the other party shall in turn strike out another; the parties shall thereafter continue alternately to strike out names until there shall remain on the list only four (4), three (3) of whom shall be the members of the Pangkat, and the fourth, to be determined by lot, shall be the alternate.

   In the event any of the four (4) remaining names is, for cause to be passed upon solely by the Barangay Captain, still objected to by any party, the procedure provided for in paragraph (g) hereunder shall be followed.

   Should there be more than one complainant or respondent, each side to the dispute shall choose its representative to such striking-out process.

   The three (3) members shall elect from among themselves the chairman and the secretary of the Pangkat.

   The secretary of the Pangkat shall keep minutes of its proceedings attested by the chairman and submit a copy thereof to the Lupon Secretary and to the proper city or municipal court. He shall issue and cause to be served notices to the parties and give certified true copies of any public record in his custody that is not by law otherwise declared confidential.

7. Vacancy, Pangkat. —

   Any vacancy in the Pangkat shall be filled by the Barangay Captain from among the other members of the Lupon, to be determined by lot.

8. Succession to or substitution for Barangay Captain. —

   In the event the Barangay Captain ceases to hold office or is unable to perform his duties herein provided, the order of succession/substitution to his position as provided by law shall be followed.

9. Character of Office. —

   The members of the Lupon shall be deemed public officers and persons in authority, within the meaning of the Revised Penal Code.

10. Character of Service. —

    The members of the Lupon or Pangkat shall serve without any compensation or allowance whatsoever. Such service by any Lupon or Pangkat member, whether he be in public or private employment, shall be deemed to be on official time and no such member shall suffer any diminution in compensation or allowances by reason thereof.

11. Legal advice. —

    The Barangay Captain or any member of the Lupon or the Pangkat may, whenever he deems it necessary in the exercise of his functions under this Decree, seek the advice of the legal adviser of the provincial/city/municipal government.