LocalGovernmentpoliticalsubdivisionofanationorstatewhichisconstituted

bylawandhassubstantialcontroloflocalaffairs
LocalGovernmentUnitabodypoliticandcorporate
- one endowed with powers as a political subdivision of the National
Government and as a corporate entity representing the National
Government and asacorporateentityrepresenting the inhabitantsofits
territory
- COMPOSED:Provinces,cities,municipalitiesandbarangays
- Territorialandpoliticalsubdivisionofthestate
DevelopmentoflocalgovernmentsinthePhilippines
-

theunitoflocaladministrationwasthepueblowhichordinarilyembraced
anareaofmanysquaremiles
containednumerousbarriosorvillages

Spaniards
continuednativebarangays(Cabezabarangays)
Gobernadorcillolittlegovernor(capitanorthehead)
- He is the representative of the provincial governor, arbiter of local
questionsEXCEPTthoseassumingaseriouslegalaspect.Responsiblefor
thecollectionoftaxes,wasboundtoassisttheparishpriestandentertained
allvisitingofficials.
Assistantsofgobernadorcillo
1. Tenientes(dputies)
2. Alguciles(subordinateemployees)
3. Chiefsofpolice
4. Fields
5. Cattle
[Electionsformunicipalofficeswereheldannuallybytheoutgoinggobernadorcillo
andtwelvecabezasdebarangay,chosenbylotandpresidedoverbythprovincial
governor,withparishpriestpermittedtobepresent]
PluralityvoteOfficeofGobernadorcillo
SenttotheGovernorGeneralorinoutlyingprovincestothegovernor,whoselectd
onefortheposition.
Othermunicipalofficeswerechosendirectlybytheconvention

1893MauraLaw
- appliedtothetownsofLuzonandVisayanIslandswheremorethanone
thousandcedulaswerepaid
- Municipalcounciloffive,thecaptainandfourlieutenants,wasconstituted
andperformedcertainspecifiedduties
o Gactivework
o Governedthemunicipality
o Administrationofpublicworks
o Detailsoftaxation
o EACH OF ITS MEMBERS was required to have special
qualifications
- Thesepositionswerehonorary
- Termofoffice:4years
- Officers,togetherwithtwosubstituteswereelectedbytwelvedelegatesof
principalia
- Principaliacomposedofallpersonswhohadheldcertainpositionsorwho
hadpaidalandtaxof50pesos
- GovernorGeneralandprovincialgovernor RETAINEDdisciplinary
jurisdictionoverthecouncilanditsindividualmembers
- ProvincialCouncilhadsupervisionofthemunicipalcouncil
o Exception: OrganizationoftheCityofManilauptothetimeof
Maura Law, of other principal cities such as Iloilo and Cebu,
whosegovernmentfollowedquitecloselythatwhichprevailedin
SpanishAmerica,whichinturnwasderivedfromSpain
AmericanOccupation
-

GeneralOrderNo.43(1899)governmentofmunicipalitieswasprovided
bythis
SupersededbyGeneralOrderNo.40(1900)promulgatedbytheMilitary
Governor in accordance with the report of the Board headed by Chief
JusticeCayetanoArellano
PresidentMcKinleysInstructionstotheSecondPhilippineCommissionof
April7,1900urgedanddirectedthatbodytodevotetheirattentioninthe
firstinstancetotheestablishmentofmunicipalcorporationsinwhichthe
nativesoftheIslands,bothinthecitiesandruralcommunicates,shallbe
affordedtheopportunitytomanagetheirownlocal affairstothefullest
extent of which they are capable, and subject of the least degree of
supervision and control which a careful study of their capacities and
observationoftheworkingsofnativecontrolsshowtobeconsistentwith
themaintenanceoflaw,order,andloyalty

PhilippineCommissionpassedAct82 onJanuary31,1901providingforthe
organizationandgovernmentofmunicipalities.
Act83onFebruary5,1901organizationofprovinces

EmbodiedwithmodificationsinAdministrativeCodeof1916asChapters
56,57,64,67

Administrative Code replaced by Revised Adminstrative Code of 1917 and

AssessmentLaw
- then1935Constitutioncameintoforce
1935Constitutionhadnospecificarticleonlocalautonomy
Constitutionlimitedlawmayprovidetheexecutivepoweroverlocalgovernmentsto
generalsupervisionasmaybeprovidedbylaw
1973 incorporated state policy : guarantee and promote the autonomy of local
governmentunitsandanentirearticleonlocalgovernment
- Calledforthepassageoflocalgovernmentcodedefiningmoreresponsive
andaccountablelocalgovernmentstructures
- The creation, merger, abolition, or substantial boundary alteration could
onlybedoneinaccordancewiththelocalgovernmentanduponapprovalby
aplebiscite
-

Thepowertocreatesourcesofrevenueandtolevytaxeswasspecifically
delegatedtolocalgovernments.

Problemsoccurred:
1. Inadequatetaxbase
2. Lackoffiscalcontroloverexternalsourcesofincome
3. Limitedauthoritytoprioritizeandapprovedevelopmentprojects
4. Heavydependenceonexternalsourcesofincome
5. Limitedsupervisorycontroloverpersonnelofnationallineagencies
The1987Constitutionadoptedtheconstitutionalguaranteeoflocalautonomyand
delegationoftaxingauthorityin1973ConstitutionandlimitedthePresidentspower
overlocalgovernmentsandautonomousregionstogeneralsupervision.
Alsoaddedthefollowing:
1. DirectivetoCongressenactanewlocalgovernmentcodeandorganizacts
forautonomousregionsinMuslimMindanaoandCordilleras
2. Entitlementoflocalgovernmentstojustsharesinnationaltaxeswhichshall
beautomaticallyreleasedtothem

3.

Entitlementoflocalgovernmentstoanequitableshareintheproceedsof
utilizationanddevelopmentofnationalwealthwithintheirrespectiveareas

InlinewiththisConstitutionaldirectice,CongressdraftedtheLocalGovernment
Codeof1991
-

consideredasthemostrevolutionarypieceoflegislationonlocalautonomy
the Code effectively dealt with the fiscal constraints faced by local
governmentunitstoincludetaxes
which were prohibited laws such as the imposition of taxes of forest
products,forestconcessionaires,mineralproducts,mining,andthelike.
Providedflexibilitytotheproposetaxratesinaccordancewiththeirneeds
andcapabilities
Didnotprescribedgraduatedfixedratesbutmerelyspecifiedtheminimum
andmaximumtaxratesandleftthedeterminationofthactualratestothe
respectivesanggunian

ThecreationofautonomousregionsinMuslimMinadanoandCordillerasgranted
politicalautonomyandnotmereadministrativeautonomy
-

theprovisionintheconstitutionforanautonomousregionalgovernment
with a basic structure consisting of an executive department and a
legislativeassemblyandspecialcourtswithpersonal,family,andproperty
lawjurisdictionineachofautonomousregions

ApplicabilityofUSjurisprudence:Sinceourlawonmunicipalcorporationsis,in
principle,patternedafterthatoftheUS,therulesthereinshouldbeconsideredapart
oflegalsystem
EffectivitydateoftheCode:TheLocalGovernmentCodeof1991tookeffecton
January1,1991afterpublicationinanewspaperofgeneralcirculation

Section2:DeclarationofPolicy
(a)ItisherebydeclaredthepolicyoftheStatethattheterritorialandpolitical
subdivisionsoftheStateshallenjoygenuineandmeaningfullocalautonomyto
enablethemtoattaintheirfullestdevelopmentasselfreliantcommunitiesand
makethemmoreeffectivepartnersintheattainmentofnationalgoals.Toward
thisend,theStateshallprovideforamoreresponsiveandaccountablelocal
governmentstructureinstitutedthroughasystemofdecentralizationwhereby
localgovernmentunitsshallbegivenmorepowers,authority,responsibilities,

andresources.Theprocessofdecentralizationshallproceedfromthenational
governmenttothelocalgovernmentunits.
(b) It is also the policy of the State to ensure the accountability of local
government units through the institution of effective mechanisms of recall,
initiativeandreferendum.
(c) It is likewise the policy of the State to require all national agencies and
offices to conduct periodic consultations with appropriate local government
units,nongovernmentalandpeople'sorganizations,andotherconcernedsectors
of the community before any project or program is implemented in their
respectivejurisdictions.1awphil.net

Importanceofpolicysection:thepolicysectionikthepreambleisavailableforthe
clarificationofambiguousprovisionsofthestatute,butmaynotbeusedtocreate
ambiguity
- thedeclarationofpolicyisNOTpartofthesubstantiveportionofstatute

Decentralizationprocessbywhichlocalgovernmentunitsaregivenmorepowers,
authority,responsibilitiesandresourcesbythenationalgovernment
- itissubstantiallysimilartodevolution
- meansdevolutionofnationaladministrationbutnotpowertothelocal
levels
Recall amodeofremovalofpublicofficer,bythepeoplebeforetheendofhis
termofoffice
Initiative anelectoralprocesswherebydesignatedpercentagesoftheelectorate
may initiate legislative or constitutional changes through the filing of formal
petitionstobeactedbythelegislatureorthetotalelectorate
- LGCinitiativeistheLEGALPROCESSwherebytheregisteredvotersof
alocalgovernmentunitmaydirectlypropose,enact,oramendanordinance