UST Golden Notes Law On Public Corporations PDF

UST GOLDEN NOTES 2011
L.LOCALGOVERNMENTS Note: Every LGU created or recognized under this

code is a body politic and corporate endowed with
a.PUBLICCORPORATIONS powerstobeexercisedbyitinconformitywithlaw.
As such, it shall exercise powers as a political
subdivision of the national government and has a
Q:Whatisapubliccorporation?
corporate entity representing the inhabitants of its

territory(Sec.15,LGC)
A:ItisonecreatedbytheStateeitherbygeneral
or special act for purposes of administration of
Q:Whataretheclassesofcorporations?
local government or rendering service in the
th
publicinterest.(Rodriguez,p.2,LGC5 Edition) A:
1.Quasipublic corporations public
Q: Distinguish public corporation from private corporationscreatedasagenciesofthe
corporation. State for narrow and limited purposes
without the powers and liabilities of
A: selfgoverningcorporations.
PUBLIC
PRIVATECORPORATION
CORPORATION 2. Municipal corporations body politic
Purpose and corporate constituted by the
Administrationof incorporation of inhabitants for
Privatepurpose purposes of local government. It is
localgovernment
established by law partly as an agency
Whocreates
of the State to assist in the civil
Bythestateeitherby Byincorporatorswith government of the country, but chiefly
generalorspecialact recognizanceofthestate to regulate and administer the local or
internal affairs of the city, town or
Howcreated district which is incorporated. (Dillon,
Municipal Corporations, Vol.2, pp. 58
Bylegislation Byagreementofmembers
59.)

Q:WhatisaGovernmentOwnedandControlled
Q:Whatisthecriteriontodeterminewhethera
Corporation(GOCC)?
corporationisapubliccorporation?
A: any agency organized as a stock or nonstock
A: By the relationship of the corporation to the
corporation vested with functions relating to
state;ifcreatedbytheStateasitsownagencyto
public needs whether governmental or
helpitincarryingoutitsgovernmentalfunctions,
proprietary in nature, and owned by the
itispublic,otherwise,itisprivate.
government directly or indirectly through its
Q: What are the dual characteristics of a public instrumentalities either wholly, or where
corporation? applicableasinthecaseofstockcorporationsto
the extent of at least 51% of its capital stock.
A: (Section 2 (13) of Executive Order No. 292
1. Public or governmental acts as an (AdministrativeCodeof1987)
agent of the State for the government
oftheterritoryanditsinhabitants. Q:WhataretherequisitesofaGOCC?

2. Privateorproprietaryactsasanagent A:
ofthecommunityintheadministration 1. Anyagencyorganizedasastockornon
of local affairs. As such, it acts as stockcorporation
separate entity for its own purposes, 2. Vestedwithfunctionsrelatingtopublic
andnotasubdivisionoftheState.(Bara needs whether governmental or
Lidasan vs. COMELEC G.R. No. L28089, proprietaryinnature
October 25, 1967 citing McQuillin, 3. Owned by the Government directly or
MunicipalCorporations,3ded.,pp.456 through its instrumentalities either
464) wholly, or, where applicable as in the

182
POLITICALLAWTEAM:
ADVISER:ATTY.EDWINREYSANDOVAL;SUBJECTHEAD:RACHELMARIEL.FELICES;ASST.SUBJECTHEADS:WIVINOE.BRACEROII&
HERAZEUSCHRISTINEY.UY;MEMBERS :LAWRENCEPAULOH.AQUINO,LEANDRORODELV.ATIENZA,MARINETHEASTERAND.AYOS,
CARLOR.BALA,WILFREDOT.BONILLA,JR.,KEELACHERNARR.DINOY,APRILV.ENRILE,KENNETHJAMESCARLOC.HIZON,JOSEMARIA
G.MENDOZA,ROGERCHRISTOPHERR.REYES,ROMILINDAC.SIBAL,JASMINM.SISON,ZARAHPATRICIAT.SUAREZ,RALPHJULIOUSL.
VILLAMOR.
LOCAL GOVERNMENTS
caseofstockcorporations,totheextent andmunicipalities,upontherecommendationofthe
of at least fiftyone (51) of its capital sangguniangconcernedprovidedthatthesameshall
stock. (Leyson, Jr. v. Office of the be effective only upon ratification in a plebiscite
Ombudsman,G.R.No.134990,April27, conducted for the purpose in the political unit
2000) directlyaffected.(R.A.7160,Sec.13)
Q: What laws may govern GOCCs and how do Q: What is the nature and function of a
youdeterminewhichwillgovern? municipalcorporation?
A: Government corporations may be created by A: It is body politic and corporate constituted by

special charters or by incorporation under the the incorporation of inhabitants for purposes of
generalcorporationlaw.Thosecreatedbyspecial local government. It is established by law partly
charters are governed by the Civil Service Law as an agency of the State to assist in the civil
while those incorporated under the general government of the country, but chiefly to
corporationlawaregovernedbytheLaborCode. regulate and administer the local or internal
(Blaquera vs. Alcala, G.R. No. G.R. No. 109406. affairs of the city, town or district which is
September11,1998) incorporated. (Dillon, Mun. Corp., Vol.2, pp. 58
59.)
Q:DistinguishpubliccorporationfromaGOCC.
Q: What are the different types of municipal
A:
corporations?
PUBLIC
GOCCs
CORPORATION
Purpose A:
Performanceoffunctions 1. De jure municipal corporations
Administrationof relatingtopublicneeds created or recognized by operation of
localgovernment whetherGovernmentalor law.
Proprietaryinnature 2. Municipalcorporationsbyprescription
Whocreates exercised their powers from time
immemorial with a charter, which is
Bythestateeitherby ByCongressorby presumed to have been lost or
generalorspecialact incorporators destroyed.
3. De facto municipal corporations
Howcreated
where the people have organized
(1)Originalchartersor
themselves, under color of law, into
speciallawsor(2)general
Bylegislation ordinary municipal bodies, and have
corporationlawasastock
ornonstockcorporation gone on, year after year, raising taxes,
making improvements, and exercising
their usual franchises, with their rights
dependent quite as much on
b.MUNICIPALCORPORATIONS
acquiescence as on the regularity of
their origin. (Rodriguez, pp.1718, LGC
Q: What are the essential elements of a th
5 Edition)
municipalcorporation?
Note: An inquiry into the legal existence of a de
A: facto corporation is reserved to the State in a
1. Legalcreation proceeding for quo warranto or other direct
2. Corporatename proceeding. (The Municipality of Malabang, Lanao
3. Inhabitants constituting the population del Sur vs. Pangandapun Benito, G.R. No. L28113,
who are vested with political and March28,1969)
corporatepowers
th
4. Territory (Rodriguez, p.4, LGC 5 Q:Whataretheessentialrequisitesofadefacto
Edition) corporation?

Note: The sangguniang panlalawigan may, in
A:VACA
consultation with the Philippine Historical
1. Validlawauthorizingincorporation
Commission change the name of component cities
183
ACADEMICSCHAIR:LESTERJAYALANE.FLORESII UNIVERSITYOFSANTOTOMAS
VICECHAIRSFORACADEMICS:KARENJOYG.SABUGO&JOHNHENRYC.MENDOZA
V ICECHAIRFORADMINISTRATIONANDFINANCE:JEANELLEC.LEE Facultad de Derecho Civil
VICECHAIRSFORLAYOUTANDDESIGN:EARLLOUIEM.MASACAYAN&THEENAC.MARTINEZ

2. Attemptingoodfaithtoorganizeunder b. HighlyUrbanizedCityP50M
it c. CityP20M(100MRA.9009
3. Colorablecompliancewithlaw amendingSec450ofLGC)
4. Assumption of corporate powers d. MunicipalityP2.5M
(Rodriguez,p.18,LGC5thEdition)
3. Population requirement to be
determined as the total number of
c.CREATION inhabitants within the territorial
jurisdictionofthelocalgovernmentunit
Q: Who has the authority to create municipal concerned. The required minimum
corporations? How is a public corporation populationshallbe:

created?
a. Barangay2K

But5Kin:
A: A Local Government Unit may be created,
i. MetroManila
divided, merged, abolished or its boundaries ii. Highlyurbanizedcities
substantiallyalteredeitherby: b. Municipality25K
c. City150K
1. Law enacted by Congress in case of d. Province250K
province,city,municipalityoranyother
politicalsubdivision; 4. Land requirement must be
2. By an ordinance passed by the contiguous, unless it comprises two or
Sangguniang Panlalawigan or more islands or is separated by a local
Sangguniang Panlungsod concerned in governmentunit;properlyidentifiedby
thecaseofabarangaylocatedwithinits metes and bounds; and sufficient to
territorial jurisdiction, subject to such provide for such basic services and
limitationsandrequirementsprescribed facilities.Arearequirementsare:
intheLGC.(Sec.6,R.A.7160)

a. Municipality 50 sq. km (Sec.442
Q: What are the requisites or limitations
R.A.7160)
imposed on the creation or conversion of b. City 100 sq. km (Sec.450 R.A.
municipalcorporations? 7160)
c. Province 2,000 sq.km (Sec.461
A: R.A.7160)
1. Plebiscite requirement must be
approved by majority of the votes cast Q: Are the Internal Revenue Allotments (IRAs)
inaplebiscitecalledforsuchpurposein considered income and, therefore, to be
the political unit or units directly
included in the computation of the average
affected.
annualincomeofamunicipalityforpurposesof

Note: Theplebiscitemustbeparticipated its conversion into an independent component
inbytheresidentsofthemotherprovince city?
in order to conform to the constitutional
A: Yes. The IRAs are items of income because
requirement.
theyformpartofthegrossaccretionofthefunds
2. Income requirement must be oftheLGU.TheIRAsregularlyandautomatically
sufficient on acceptable standards to accrue to the local treasury without need of any
provide for all essential government furtheractiononthepartofthelocalgovernment
facilities and services and special unit.Theythusconstituteincomewhichthelocal
functions commensurate with the size government can invariably rely upon as the
of its population as expected of the source of much needed funds. (Alvarez v.
local government unit concerned.
Guingona,G.R.No.118303,Jan.31,1996)
Average annual income for the last
consecutiveyearshouldbeatleast:
Q:Whendoescorporateexistencebegin?

a. ProvinceP20M
184
POLITICALLAWTEAM:
VILLAMOR.
LOCAL GOVERNMENTS
A:Upontheelectionandqualificationofitschief 2. The challenged cities claim that it

executive and a majority of the members of its was the intent of Congress anyway to
sanggunian, unless some other time is fixed grant them exemption from the
income requirement, as per the
thereforbylaworordinancecreatingit.(Sec.14,
deliberations of the 11th Congress.
R.A.7160) Whatbecameofthecityhoodbillsand
their deliberations that were pending
th
Q: What is the rule relative to the merger and at the adjournment of the 11
divisionoflocalgovernmentunits? Congress?

A: A:
1. Suchdivisionormergershallnotreduce 1.Yes,The16citiescoveredbytheCityhoodLaws
the income, population or land area of not only had conversion bills pending during the
the LGC concerned to less than the 11th Congress, but have also complied with the
minimumrequirement requirements of the LGC prescribed prior to its
2. That the income classification of the amendment by R.A. No. 9009. Congress
original LGU/s shall not fall below its undeniablygavethesecitiesalltheconsiderations
current income classification prior to
that justice and fair play demanded. Hence, this
thedivision
3. A plebiscite must be held in LGUs Court should do no less by stamping its
affected imprimatur to the clear and unmistakable
4. Assetsandliabilitiesofcreationshallbe legislative intent and by duly recognizing the
equitablydistributedbetweentheLGUs certaincollectivewisdomofCongress.(Leagueof
affectedandnewLGU Cities of the Philippines (LCP) v. COMELEC, G.R.

No.176951,April12,2011)
Note: When a municipal district of other territorial
2. Notwithstanding that both the 11th and 12th
divisionsisconvertedorfusedintoamunicipalityall
Congressfailedtoactuponthependingcityhood
property rights vested in original territorial
bills,boththeletterandintentofSection450of
organizationshallbecomevestedinthegovernment
ofthemunicipality.(R.A.688)
the LGC, as amended by R.A. No. 9009, were
carried on until the 13th Congress, when the
Q: At the end of the 11th Congresss existence, Cityhood Laws were enacted. The exemption
several bills aiming to convert certain clausesfoundintheindividualCityhoodLawsare
municipalities into cities were pending. The the express articulation of that intent to exempt
samewerenotenteredintolaw. respondent municipalities from the coverage of
R.A.No.9009.(LeagueofCitiesofthePhilippines
th
The 12 Congress enacted R.A. No. 9009, (LCP)v.COMELEC,G.R.No.176951,February15,
amending the Local Government Code (LGC) by 2011)
increasing the income requirement for
conversionofmunicipalitiesintocities.Congress Note: On November 18, 2008, the SC ruled the
cityhood laws unconstitutional. On December 21,
deliberated on exempting the municipalities
2009, it reversed the ruling. Then again, on August
mentioned earlier from the new income 24, 2010, it decided to uphold the original ruling.
requirement;however,noconcreteactioncame And finally, last April 12, 2011 it upheld the
outofsuchdeliberations. constitutionalityofthecreationofthe16newcities.

Themunicipalitiesfiled,throughtheirrespective Q: May Congress validly delegate to the ARMM
sponsors, individual cityhood bills containing a Regional Assembly the power to create
commonprovisoexemptingthemfromthenew provinces, cities, and municipalities within the
incomerequirement.TheCongressapprovedthe ARMM, pursuant to Congresss plenary
same. Concerned parties protested such laws legislativepowers?
allowing a wholesale conversion of
municipalitiesasbeingunconstitutional.Decide. A: No. There is no provision in the Constitution
that conflicts with the delegation to regional
1. Arethecityhoodlawsvalid? legislative bodies of the power to create
185

municipalities and barangays. However, the Constitution. (Aladaba v. Comelec, G.R. No.
creationofprovincesandcitiesisanothermatter. 188078,Jan.25,2010)
Only Congress can create provinces and cities
because the creation of the same necessarily Q: Congress enacted a law reapportioning the
includes the creation of legislative districts, a composition of the Province of Camarines Sur
poweronlyCongresscanexerciseunderSection5 andcreated legislative districts thereon. Aquino
Art. VI of the Constitution and Section 3 of the challenged the law because it runs afoul to the
Ordinanceappendedtoit.(BaiSandraS.A.Sema constitutional requirement that there must be
v.COMELEC,etal.G.R.No.178628,July18,2008) 250,000 population create a legislative districts.
Comelec argued that the mention requirement
Q: Considering the legislative power validly does not apply to provinces. Is the 250,000
delegated to the ARMM Regional Assembly, population standard an indispensible
what is the limitation of such that prevents the requirement for the creation of a legislative
sametocreatelegislativedistricts? districtinprovinces?
A: The ARMM Regional Assembly cannot enact a A: No. Section 5(3), Article VI of the 1987
law creating a national office like the office of a Constitution which requires 250,000 minimum
district representative of Congress because the populationrequirementapplyonlyforacitytobe
legislative powers of the ARMM Regional entitled to a representative but not for a
Assembly operate only within its territorial province.
jurisdictionasprovidedinSection20Art.Xofthe
Constitution. (Sema v. COMELEC, G.R. No. The provision draws a plain and clear distinction
178628,July16,2008) betweentheentitlementofacitytoadistricton
onehand,andtheentitlementofaprovincetoa
Q: Congress enacted a law creating the district on the other. For while a province is
legislative district of Malolos based on a entitledtoatleastarepresentative,withnothing
certificationofthedemographicprojectionfrom mentioned about population, a city must first
NSOstatingthatby2010,Malolosisexpectedto meetapopulationminimumof250,00inorderto
reachthepopulationof250,000,henceentitling be similarly situated. (Aquino and Robredo v.
ittoonelegislativedistrict.Isthelawvalid? Comelec,G.R.No.189793,April7,2010)
A:No.Congresscannotestablishanewlegislative Q: Congress passed a law providing for the

district based on a projected population of the apportionment of a new legislative district in
National statistics Office (NSO) to meet the CDO City. The COMELEC subsequently issued a
populationrequirementoftheConstitutioninthe resolutionimplementingsaidlaw.Bnowassails
reapportionmentoflegislativedistricts. the resolution, contending that rules for the
conduct of a plebiscite must first be laid down,
Acitythathasattainedapopulationof250,000is as part of the requirements under the
entitled to a legislative district only in the Constitution.AccordingtoB,theapportionment
immediately following election. In short, a city is a conversion and division of CDO City, falling
must first attain the 250,000 population, and underSection10ArtXoftheConstitution,which
thereafter,intheimmediatelyfollowingelection, provides for the rule on creation, division,
such city shall have a district representative. merger,andabolitionofLGUs.Decide.
There is no showing in the present case that the
City of Malolos has attained or will attain a A: There is no need for a plebiscite. CDO City
population of 250,000, whether actual or politically remains a single unit and its
projected, before May 10, 2010 elections. Thus, administration is not divided along territorial
the City of Malolos is not qualified to have a lines.Itsterritoryremainswholeandintact.Thus,
legislative district of its own under Section 5(3), Section 10 Art. X of the Constitution does not
Article VI of the 1987 Constitution and Section 3 comeintoplay.(Bagabuyov.COMELEC,G.R.No.
of the Ordinance appended to the1987 17690,Dec.82008)
186
POLITICALLAWTEAM:
VILLAMOR.
LOCAL GOVERNMENTS
d.DIVISION,MERGER,ABOLITION 2. Approvedbyamajorityofthevotescastina
plebiscite called for the purpose in the
Q: What are the requirements for division and political unit or units directly affected.
mergeroflocalgovernmentunits? (Sec.10R.A.7160)

A: Same requirements as creation of LGU
e.LOCALGOVERNMENTCODE
provided:

1. It shall not reduce the income, population
orlandareaoftheLGU/Sconcernedtoless Q: How should the Local Government Code be
thanminimumrequirementsprescribed; interpreted?
2. Income classification of the original LGU/S
shall not fall below its current income A:
classification prior to division. (Sec.8 R.A. GR: That any doubt or question on a power of
7160) local government shall be resolved in favor of
3. Plebiscite be held in LGUs affected (Sec.10
devolution of powers and in favor of the LGU.
R.A.7160)
4. Assets and liabilities of creation shall be (Sec.5(a)R.A.7160)
equitably distributed between the LGUs
affectedandnewLGU.(R.A.688) XPN: In case of tax measures enacted by local
government,anydoubtsshallberesolvedstrictly
Q:WhenmayanLGUbeabolished? againstthelocalgovernmentandliberallyinfavor
ofthetaxpayer.(Sec.5(b)R.A.7160)
A: When its income, population or land area has
been irreversibly reduced to less than the Q: What are the other rules in interpreting the
minimumstandardsprescribedforitscreation,as LocalGovernmentCode?
certified by the national agencies mentioned.
(Sec.9,R.A.7160) A:
1. General Welfare provisions liberally
Note: A barangay may officially exist onrecord and interpretedtogivemorepowerstothe
the fact that nobody resides in the place does not local government units in accelerating
result in its automatic cessation as a unit of local economic development and upgrading
government. (Sarangani vs. COMELEC, G.R. No. the quality of life for the people in the
community
135927.June26,2000)
2. Rights and obligations existing on
effectivityofthisLGCandarisingoutof
Q:WhomayabolishaLGU?
contracts governed by the original
terms and conditions of said contracts
A:
or the law in force at the time such
1. Congress in case of provinces, city, rightswerevested
municipality, or any other political 3. Resolution of controversies where no
subdivision. legal provision or jurisprudence applies
2. Sangguniang Panlalawigan or Sangguniang Resort to the customs and traditions
Panglungsodincaseofabarangay,except of the place where the controversies
in Metropolitan Manila area and in cultural takeplace.(Sec.5,R.A.7160)
communities.(Sec.9R.A.7160)
Q:Whataretherequirementsprescribedbylaw 1.PRINCIPLESOFLOCALAUTONOMY
inabolishingLGUs?
Q:Whatistheprincipleoflocalautonomy?
A:

1. The law or ordinance abolishing a local
A: Under the 1987 Constitution, it simply means
government unit shall specify the province,
city, municipality, or barangay with which decentralization; it does not make the local
the local government unit sought to be governments sovereign within the state or an
abolished will be incorporated or merged. imperium in imperio. (Basco v. PAGCOR, G.R.
(Sec.9R.A.7160) 91649,May14,1991)

187

Q:Distinguishdecentralizationofadministration 2. Where the law is silent, LGU have the
(DA)fromdecentralizationofpower(DP). discretion to select reasonable means
andmethodstoexercise(Rodriguez,pp.
th
910,LGC5 Edition)
A:

DA DP

Consistsmerelyinthe Involvesabdicationby
Q:Whatarethedifferentgovernmentalpowers
delegationof thenational
oftheLGU?
administrativepowersto governmentofpolitical

broadenthebaseof powerinfavorofLGUs
governmentalpower. declaredautonomous. A:
1. Policepower
2. Basicservicesandfacilities
3. Powertogenerateandapplyresources
Q: Define devolution with respect to local
4. Powerofeminentdomain
governmentunits.
5. TaxingPower
6. ReclassificationofLand
A: The act by which the national government 7. Locallegislativepower
confers power and authority upon the various 8. Closureandopeningofroads
local government units to perform specific 9. CorporatePowers
functionsandresponsibilities. 10. LiabilityofLGUs
11. SettlementofBoundaryDisputes

12. SuccessionofLocalOfficials
13. DisciplineofLocalOfficials
2.GENERALPOWERSANDATTRIBUTESOFA 14. Authorityoverpoliceunits
LOCALGOVERNMENTUNIT

2.a.PolicePower
Q: What are the sources of powers of a
municipalcorporation? Q:Whatisthenatureofthepolicepowerofthe
LGU?
A:
A: The police power of the LGU is not inherent.
1. Constitution
2. Statutes(e.g.LGC) LGUsexercisethepolicepowerunderthegeneral
3. Charter welfareclause.(Sec16,R.A.7160)
4. DoctrineofrighttoSelfGovernment
(butonlytothosewhereitcanbe Q: What are the requisites/limitations for the
applied) exercise of the police power for it to be
consideredasproperlyexercised?
Q:Whataretheclassificationsofmunicipal
powers? A:
1. Theinterestsofthepublicgenerally,as
A: distinguishedfromthoseofaparticular
class, require the interference of the
1. Express,Implied,Inherent
state.(Equalprotectionclause)
2. Governmentorpublic,Corporateor
2. The means employed are reasonably
private
necessary for the attainment of the
3. Intramural,extramural
object sought to be accomplished and
4. Mandatory,directory;ministerial,
not duly oppressive. (Due process
discretionary
clause)

3. Exercisable only within the territorial
Q:Howarepowerstobeexecuted?
limitsoftheLGU,exceptforprotection
ofwatersupply(Sec16,R.A.7160)
A:
4. Must not be contrary to the
1. Wherestatuteprescribesthemannerof Constitutionandthelaws.
exercise,proceduremustbefollowed.

188
POLITICALLAWTEAM:
VILLAMOR.
LOCAL GOVERNMENTS
Q: May a nuisance be abated without a judicial profession. (Acebedo Optical v. CA, G.R. No.
proceeding? 100152,Mar.31,2000)

A: Yes, provide it is nuisance per se. The
abatement of nuisances without judicial 2.b.EminentDomain
proceedings applies to nuisance per se or those
whichaffecttheimmediatesafetyofpersonsand Q:Whataretherequisitesforavalidexerciseof
propertyandmaybesummarilyabatedunderthe powerofeminentdomainbyLGU?
undefined law of necessity. (Tayaban v. People,
G.R.No.150194,Mar.6,2007) A:OPOC
1. An Ordinance is enacted by the local
Note:Thelocalsangguniandoesnothavethepower
legislative council authorizing the local
tofind,asafact,thataparticularthingisanuisance chief executive, in behalf of the local
per se, a thing which must be determined and governmentunit,toexercisethepower
resolvedintheordinarycourtsoflaw(ACEnterprise, of eminent domain or pursue
Inc. v. Frabelle Properties Corporation, G.R. No. expropriation proceeding over a
166744,Nov.2,2006) particularproperty.

Q: What does the power to issue licenses and Note: A resolution will not suffice for a
permitsinclude? LGU to be able to expropriate private
property; a municipal ordinance is
A: It includes the power to revoke, withdraw or different from a resolution in that an
restrict through the imposition of certain ordinance is a law while a resolution is
conditions. However, the conditions must be merely a declaration of the sentiment
reasonable and cannot amount to an arbitrary oropinionofalawmakingauthorityon
interference with the business. (Acebedo Optical aspecificmatter.
Company,Inc.vs.CA,G.R.No.100152.March31,
2000) 2. ForPublicuse,purposeorwelfareoffor
thebenefitofthepoororlandless
Note: Only the Sanggunian, not the mayor of the 3. PaymentofjustCompensation
city,hasthepowertoallowcockpits,stadiums,etc. 4. A valid and definite Offer has been
Without an ordinance, he cannot compel mayor to previously made to the owner of the
issuehimabusinesslicense(Canetv.Decena,G.R. propertysoughttobeexpropriated,but
No.155344,Jan.20,2004) said offer was not accepted.
(Municipality of Paranaque vs. V.M.
Realty Corporation G.R. No. 127820.
Q:Distinguishbetweenthegrantofalicenseor
July20,1998)
permit to do business and the issuance of a
license to engage in the practice of a particular Q. What are the due process requirements in
profession. eminentdomain?
A: A:Offermustbeinwritingspecifying:
LICENSE/PERMITTODO LICENSETOENGAGEIN 1. Propertysoughttobeacquired
BUSINESS APROFESSION 2. Thereasonfortheacquisition
BoardorCommission 3. Thepriceoffered
Grantedbythelocal
taskedtoregulatethe
authorities
particularprofession Note:
Authorizesthepersonto Authorizesanatural
a. If owner accepts offer: a contract of
engageinthebusiness persontoengageinthe
salewillbeexecuted
orsomeformof practiceorexerciseof

commercialactivity hisorherprofession
b. If owner accepts but at a higher
price: Local chief executive shall call
Note:Abusinesspermitcannot,bytheimpositionof
a conference for the purpose of
condition, be used to regulate the practice of a reachinganagreementontheselling
price; If agreed, contract of sale will
bedrawn.(Article35ofLGCIRR)
189

Q: What are the requisites for an authorized these limits, it usurps the legislative functions of
immediateentry? themunicipalcouncilorpresident.Suchhasbeen
the consistent course of executive authority.
(Velazcov.BlasG.R.No.,L30456July30,1982)
A:

1. The filling of a complaint for
expropriation sufficient in form and 2.c.Taxation
substance

2. The deposit of the amount equivalent
to fifteen percent (15%) of the fair Q:Whatisthenatureofthepoweroftaxation?
market value of the property to be InLGUs?
expropriated based on its current tax
declaration. (City of Iloilo vs Legaspi: A: A municipal corporation, unlike a sovereign
G.R.No.154614,November25,2004) state, is clothed with no inherent power of
taxation.Thecharterorstatuemustplainlyshow
Note: Upon compliance, the issuance of writ of
anintenttoconferthatpowerorthemunicipality
possession becomes ministerial. (City of Iloilo vs
cannotassumeit.Andthepowerwhengrantedis
Legaspi,G.R.No.154614,November25,2004)

tobeconstruedstrictissimijuris.(Medinavs.City
Q: What are the two phases of expropriation ofBaguio,G.R.No.L4060August29,1952)
proceedings?
Q: Under the Constitution, what are the three
A: main sources of revenues of local government
1. The determination of the authority to units?
exercise the power of eminent domain A:
and the propriety of its exercise in the 1. Taxes,fees,andcharges.(Sec.5,Art.X,
contextofthefactsinvolvedinthesuit. 1987Constitution)
2. Share in the national taxes. (Share in
2. Thedeterminationbythecourtofjust the proceeds of the utilizations and
compensation for the property sought development of the national wealth
to be taken. (Brgy. Son Roque, Talisay, within their areas. (Sec. 7, Art. X, 1987
Cebu v. Heirs of Francisco Pastor, G.R. Constitution)
No.138896,June20,2000) 3. Sec.6,Art.X,1987Constitution)

Q: May the Sangguniang Panlalawigan validly Q: What are the fundamental principles that
disapprove a resolution or ordinance of a shall govern the exercise of the taxing and
municipality calling for the expropriation of revenueraising powers of local government
private property to be made site of a Farmers units?
centerandothergovernmentsportsfacilitieson

the ground that said expropriation is
unnecessary considering that there are still A:
available lots of the municipality for the 1. Taxation shall be uniform in each local
establishmentofagovernmentcenter? governmentunit
2. Taxes, fees, charges and other
A: No, The only ground upon which a provincial impositions shall be equitable and
board may declare any municipal resolution, based as far as practicable on the
ordinance or order invalid is when such taxpayers ability to pay; be levied and
resolution, ordinance, or order is beyond the collected only for public purpose; not
powers conferred upon the council or president be unjust, excessive, oppressive, or
making the same. A strictly legal question is confiscatory; not be contrary to law,
beforetheprovincialboardinitsconsiderationof public policy, national economic policy,
a municipal resolution, ordinance, or order. The orrestraintoftrade;
provincial boards disapproval of any resolution, 3. The collection of local taxes, fees,
ordinance,orordermustbepremisedspecifically charges and other impositions shall in
upon the fact that such resolution, ordinance, or nocasebelefttoanyprivateperson
order is outside the scope of the legal powers 4. Therevenuecollectedshallinuresolely
conferred by law. If a provincial board passes to the benefit of and be subject to
190
POLITICALLAWTEAM:
VILLAMOR.
LOCAL GOVERNMENTS
disposition by, the local government imposedbythenationalgovernmentforwhatever

unit, unless specifically provided purpose."Asarule,theterm"shall"isawordof
therein; command that must be given a compulsory
5. Each local government, as far as meaning. The provision is, therefore, imperative.
practicable, evolves a progressive (Pimentel,Jr.v.Aguirre,G.R.No.132988,July19,
systemoftaxation.(Sec.130,R.A.7160) 2000)

Q: Under the Constitution, what is the basis of Q: What are the fundamental principles
ARMMstaxingpower? governing financial affairs, transactions and
operationsofLGUs?
A:TheARMMhasthelegislativepowertocreate
sources of revenues within its territorial A:
jurisdiction and subject to the provisions of the 1. Nomoneyshallbepaidoutofthelocal
1987 Constitution and national laws. (Sec. 20[b], treasury except in pursuance of an
Art.X) appropriationordinanceorlaw;

Q: Distinction between the power to tax by 2. Local government funds and monies
shall be spent solely for public
ordinary LGUs and that of the Autonomous
purposes;
Regions.
3. Local revenue is generated only from
A: sources expressly authorized by law or
LGUsoutside LGUsinsideautonomous ordinance, and collection thereof shall
autonomousregions regions(i.e.ARMM) atalltimesbeacknowledgedproperty
BasisofTaxingPower
OrganicActwhichSec. 4. All monies officially received by a local
Sec.5,ArticleX,1987 20(b),ArticleX,1987 government officer in any capacity or
Constitution Constitutionallows on any occasion shall be accounted for
Congresstopass as local funds, unless otherwise
GoverningGuidelinesandlimitatitons provided
LocalGovernment
RespectiveOrganicAct 5. Trust funds in the local treasury shall
Codeof1991
notbepaidoutexceptinthefulfillment
of the purpose for which the trust was
Note:UnlikeSec.5,ArticleX,Sec.20,ArticleXofthe createdorthefundsreceived
1987 Constitution is not selfexecuting. It merely
authorizes Congress to pass the Organic Act of the 6. Every officer of the local government
unitwhosedutiespermitorrequirethe
autonomous regions which shall provide for
possession or custody of local funds
legislative powers to levy taxes upon their
shall be properly bonded, and such
inhabitants.
officer shall be accountable and
responsible for said funds and for the
Q: The president, through AO 372, orders the safekeeping thereof in conformity with
withholding of 10 percent of the LGUs' IRA theprovisionsoflaw;
"pending the assessment and evaluation by the
DevelopmentBudgetCoordinatingCommitteeof 7. Local governments shall formulate a
sound financial plans and local budgets
the emerging fiscal situation" in the country. Is
shall be based on functions, activities
theAOvalid? and projects, in terms of expected
results
A: No, A basic feature of local fiscal autonomy is
theautomaticreleaseofthesharesofLGUsinthe 8. Local budget plans and goals shall, so
nationalinternalrevenue.Thisismandatedbyno far as practicable, be harmonized with
lessthantheConstitution.TheLocalGovernment national development plans, goals and
Code specifies further that the release shall be strategies in order to optimize the
made directly to the LGU concerned within five utilization of resources and to avoid
(5)daysaftereveryquarteroftheyearand"shall duplication in the use of fiscal and
notbesubjecttoanylienorholdbackthatmaybe physicalresources
191

ii. Componentcityor
9. Local budgets shall operationalize municipalitywhereitwas
approvedlocaldevelopmentplans extracted30%
iii. Barangaywhereitwas
10. Local government units shall ensure extracted40%(Sec.138R.A.
that their respective budgets 7160)
incorporate the requirements of their
component units and provide for e. Professionaltax:notexceeding
equitableallocationofresourcesamong P300.00.(Sec.139R.A.7160)
thesecomponentunits f. Amusementtax:notmorethan
30%ofthegrossreceipts.(Sec.140
11. National planning shall be based on R.A.7160)
localplanningtoensurethattheneeds g. Annual fixed tax for every delivery
and aspirations of the people as truck or van of manufacturers or
articulated by the local government producers,wholesalersof,dealers,
units in their respective local orretailersincertainproducts:not
development places, are considered in exceeding P500.00 (Sec. 141 R.A.
the formulation of budgets of national 7160)
lineagenciesoroffices
2. FormunicipalitiesMaylevytaxes,fees,
12. Fiscal responsibility shall be shared by and charges not otherwise levied by
all those exercising authority over the provinces,exceptasprovidedforinthe
financial affairs, transactions and LGC.
operations of the local government a. Tax on business. (Sec. 143 R.A.
units;and 7160)
b. Fees and charges on business and
13. Thelocalgovernmentunitshall occupation except those reserved
endeavortohaveabalancedbudgetin for the province. (Sec. 147 R.A.
eachfiscalyearofoperation(Sec.305, 7160)
R.A.7160) c. Fees for sealing and licensing of
weights and measures. (Sec. 148
Q: What are the taxes that may be imposed by R.A.7160)
theLGUs? d. Fishery rentals, fees and charges.
(Sec.149R.A.7160)
A:
1. Forprovinces 1.For cities May levy taxes, fees and
a. Tax on transfer of real property charges which the province and
ownership (sale, donation, barter, municipalitymayimposeprovided:
or any other mode of transferring a. That the taxes, fees and charges
ownership):notmorethan50%of levied and collected of highly
1% of the total consideration urbanized and independent
involved in the acquisition of the component cities shall accrue to
property(Sec.135R.A.7160) them,and
b. Tax on business of printing and b. Thattheratethatthecitymaylevy
publication: not exceeding 50% of may exceed the maximum rates
1% of the gross annual receipt allowed for the province or
(Sec.136R.A.7160) municipalitybynotmorethan50%
c. Franchise tax: not exceeding 50% except the rates of professional
of 1% of the gross annual receipt and amusement taxes. (Sec. 151
(Sec.137R.A.7160) R.A.7160)
d. Tax on sand, gravel and other
quarry resources: not more than Q: What are the taxes, fees and charges that
10% of the fair market value per maybeimposedbythebarangay?
cubic meter. Proceeds will be
distributedasfollows: A:
i. Province30% 1. Taxes on stores and retails with fixed
businessestablishmentwithgrosssales
192
POLITICALLAWTEAM:
VILLAMOR.
LOCAL GOVERNMENTS
of the preceding calendar year of ensuing quarter and the taxes, fees, or charges
P50,000orless,inthecaseofcitiesand dueshallbegintoaccruetherefrom.(Art.276,IRR
P30,000 or less, in the case of ofLGC)
municipalities, at a rate not exceeding
1%onsuchgrosssalesorreceipts. Q:TheProvinceofPalawanpassesanordinance
2. servicesrendered
requiringallowners/operatorsoffishingvessels
3. barangayclearances
4. commercial breeding of fighting cocks, that fish in waters surrounding the province to
cockfightsandcockpits investtenpercent(10%)oftheirnetprofitsfrom
5. places of recreation which charge operations therein in any enterprise located in
admissionfees Palawan. NARCO Fishing Corp., a Filipino
6. Billboards, signboards, neon signs and corporation with head office in Navotas, Metro
outdoor advertisements. (Sec. 152 R.A.
Manila, challenges the ordinance as
7160)
unconstitutional.Decidethecase.
Note: Where the Secretary of Justice reviews,

A: The ordinance is invalid. The ordinance was
pursuant to law, a tax measure enacted by a local
apparently enacted pursuant to Art. X, Sec. 7 of
government unit to determine if the officials
the Constitution, which entitles local
performed their functions in accordance with law,
i.e,withtheprescribedprocedurefortheenactment governments to an equitable share in the
oftaxordinancesandthegrantofpowersunderthe proceeds of the utilization and development of
LocalGovernmentCode,thesameisanactofmere thenationalwealthwithintheirrespectiveareas.
supervisionandnotcontrol(Drilonvs.Lim,G.R.No. However,thisshouldbemadepursuanttolaw.A
112497,Aug.4,1994). law is needed to implement this provision and a
local government cannot constitute itself unto a
Q:WhatproceduresmustaLGUcomplywithfor law. In the absence of a law the ordinance in
arevenueordinancetobevalid? questionisinvalid.
A: Q:Whodeterminesthelegalityorproprietyofa
1. A prior public hearing on the measure localtaxordinanceorrevenuemeasure?
conducted according to prescribed
rules. A: It is the Secretary of Justice who shall
2. Publicationofthetaxordinance,within determine questions on the legality and
10 days after their approval, for 3 constitutionality of ordinances or revenue
consecutive days in a newspaper of measures. Such questions shall be raised on
local circulation provided that in appealwithinthirty(30)daysfromtheeffectivity
provinces, cities, and municipalities thereof to the Secretary of Justice who shall
wheretherearenonewspapersoflocal render a decision within sixty (60) days from the
circulation, the same may be posted in dateofreceiptoftheappeal:Provided,however,
at least two (2) conspicuous and That such appeal shall not have the effect of
publiclyaccessibleplaces. suspending the effectivity of the ordinance and
theaccrualandpaymentofthetax,fee,orcharge
Note:Ifthetaxordinanceorrevenuemeasure leviedtherein:Provided,finally,Thatwithinthirty
contains penal provisions as authorized in (30)daysafterreceiptofthedecisionorthelapse
Article 280 of this Rule, the gist of such tax of the sixtyday period without the Secretary of
ordinance or revenue measure shall be Justice acting upon the appeal, the aggrieved
publishedinanewspaperofgeneralcirculation party may file appropriate proceedings with a
within the province where the sanggunian court of competent jurisdiction (RTC). (Sec. 187
concernedbelongs.(Art.276,IRRofLGC) R.A.7160)

Q:Whenshallataxordinancetakeeffect? Q:Whatisthenatureofacommunitytax?
A: In case the effectivity of any tax ordinance or A:Communitytaxisapollorcapitationtaxwhich

revenuemeasurefallsonanydateotherthanthe is imposed upon person who resides within a
beginning of the quarter, the same shall be specifiedterritory.
consideredasfallingatthebeginningofthenext
193

Q:Whoareexemptedfromthepaymentofthe Q: What are the requisites for a real estate tax
communitytax? protest?
A: A:
1. Diplomatic and consular 1. Thetaxpayerhasalreadypaidthetax
representatives; 2. Theprotestmustbeinwriting
2. Transientvisitorswhentheirstayinthe 3. Must be filed within 30 days from
Philippines does not exceed 3 months. payment of the tax to the local
(Sec.159R.A.7160) treasurer concerned who shall decide
thesamewithin60daysfromreceiptof
Q: What are the remedies available to the local suchprotest.

government units to enforce the payment of
Note: Payment of tax is precondition in protest
taxes?
questioningthereasonablenessoftheassessmentor

amountoftax;butnotwhentheissueraisedisthe
A:
authority of assessor or treasurer. (Ursal, Philippine
1. Imposing penalties (surcharges and
LawonLocalGovernmentTaxation,2000Ed.)
penaltyinterest)incaseofdelinquency
(Sec.167R.A.7160)
Q: How much real property tax can be imposed
2. Availing local governments liens (Sec.
173R.A.7160) bythelocalgovernmentunits?
3. Administrative action through distraint
of goods, chattels, and other personal A: A real estate levy may be imposed by the
property(Sec.174(a)R.A.7160) province or city or a municipality w/in metro
4. Judicialaction(Sec.174(b)R.A.7160) manilaasfollows:

Q:Whataretheothersourcesofrevenue? 1. Bytheprovince,notexceeding1%ofthe
assessedvalueoftheproperty;and
A: The local government units are entitled to 2. By the city or a municipality w/in metro
manila,notexceeding2%oftheassessed
definitesharesin:
value of the property. (Sec. 233 R.A.
7160)
1. The proceeds from development and
utilizationofmines,forests,andmarine Q: Bayantel was granted by Congress after the
resources up to 40% of the gross effectivity of the Local Government Code (LGC),
collections there from by the national
a legislative franchise with tax exemption
government.(Sec.290R.A.7160)
privileges which partly reads the grantee, its
2. The proceeds of government owned or successors or assigns shall be liable to pay the
controlled corporations engaged in the same taxes on their real estate, buildings and
utilization and development of the personalproperty,exclusiveofthisfranchise,as
national wealth up to 1% of the gross other persons or corporations are now or
sales or 40% of the gross collections hereafter may be required by law to pay. This
madebythenationalgovernmentthere
provision existed in the companys franchise
from,whicheverishigher.(Sec.291R.A.
7160) prior to the effectivity of the LGC. Quezon City
then enacted an ordinance imposing a real
Q:Whatarerealpropertytaxes? propertytaxonallrealpropertieslocatedwithin
the city limits and withdrawing all exemptions
A:Thesearedirectlyimposedonprivilegetouse previously granted. Among properties covered
real property such as land, building, machinery, are those owned by the company. Bayantel is
and other improvements, unless specifically imposingthatitspropertiesareexemptfromtax
exempted. underitsfranchise.IsBayantelcorrect?

Note: Real property taxes are local taxes and not A:Yes.Thepropertiesareexemptfromtaxation.
nationaltaxes.(Pimentel,2007Edition,p.415) The grant of taxing powers to local governments
under the Constitution and the LGC does not
194
POLITICALLAWTEAM:
VILLAMOR.
LOCAL GOVERNMENTS
affect the power of Congress to grant tax

exemptions. 3. And the corresponding
recommendation of the secretaries of
The term "exclusive of the franchise" is theDepartmentofFinance,Interiorand
interpreted to mean properties actually, directly Local Government, and Budget and
Management. (Pimentel, Jr. vs. Aguirre,
and exclusively used in the radio and
G.R.No.132988,July19,2000)
telecommunications business. The subsequent
piece of legislation which reiterated the phrase Q: May a local government unit (LGU) regulate
exclusiveofthisfranchisefoundintheprevious the subscriber rates charged by cable tv
taxexemptiongranttothecompanyisanexpress operatorswithinitsterritorialjurisdiction?
andrealintentiononthepartoftheCongressto
once against remove from the LGCs delegated A: No. Under E.O. No. 205, the National
taxingpower,allofthecompanyspropertiesthat Telecommunications Commission has exclusive
are actually, directly and exclusively used in the jurisdiction over matters affecting CATV
pursuit of its franchise. (The City Government of operation, including specifically the fixing of
Quezon City, et al., v. Bayan Telecommnications, subscriberrates.CATVsystemisnotamerelocal
Inc.,G.R.No.162015,Mar.6,2006) concern. The complexities that characterize this
newtechnologydemandthatitberegulatedbya
Note: An ordinance levying taxes, fees or charges
specializedagency.Thisisparticularlytrueinthe
shallnotbeenactedwithoutanypriorpublichearing
area of ratefixing. However, there is nothing
conducted for the purpose. (Figuerres v. CA, G.R.
underE.O.205precludesLGUsfromexercisingits
No.119172,Mar.25,1999)
generalpower,underR.A.No.7160,toprescribe
Q:Whatarethespecialleviesonrealproperty? regulations to promote health, morals, peace,
education, good order or safety and general
A: welfare of their constituents. (Batangas CATV,
1.A special education fund may also be Inc.v.CA,G.R.No.138810,Sept.29,2004)
assessed in provinces, cities, or
Metropolitan Manila municipalities up
to a maximum of 1% of the assessed 2.d.ClosureofRoads
value of a real property. (Sec. 235 R.A.

7160)
Q: What are subject to the power of an LGU to
2. Idle lands in provinces, cities or openorclosearoad?
municipalities in Metro Manila may be
additionally taxed at not exceeding 5% A: Any local road, alley, park, or square falling
of their assessed value. (Sec. 236 R.A. within its jurisdiction may be closed, either
7160) permanentlyortemporary.(Sec21(a)R.A.7160)
3. Lands benefited by public works

projects or improvements in provinces,
citiesandmunicipalitiesmaybelevieda Q:Whatarethelimitationsincaseofpermanent
specialtaxofnotexceeding60%ofthe andtemporaryclosure?
actualcostoftheproject.(Sec.240R.A.
7160) A:
1. Incaseofpermanentclosure:
Q:WhataretherequisitessothatthePresident a. Must be approved by at least 2/3
mayinterfereinlocalfiscalmatters? of all the members of the
sanggunian and when necessary
A: provideforanadequatesubstitute
1. An unmanaged public sector deficit of forthepublicfacility
thenationalgovernment; b. Adequate provision for the public
safetymustbemade
2. Consultationswiththepresidingofficers c. The property may be used or
of the Senate and the House of conveyed for any purpose for
Representatives and the presidents of which other real property may be
thevariouslocalleagues;
195

lawfully used or conveyed, but no Note: He shall certify within 10 days from the
freedom park shall be closed passage of ordinances enacted and resolutions
permanently without provision for adoptedbythesanggunianinthesessionoverwhich
its transfer or relocation to a new hetemporarilypresided.(Sec.49(b)R.A.7160)
site.(Sec21(a&b)R.A.7160)

Q: May an incumbent ViceGovernor, while
2. Incaseoftemporaryclosure:
a. For actual emergency, fiesta concurrently the acting governor, continue to
celebration, public rallies, preside over the sessions of the Sangguniang
agriculturalorindustrialworksand Panlalawigan? If not, who may preside in the
highway telecommunications and meantime?
waterworkprojects
b. Duration of which shall be
A: A vicegovernor who is concurrently an acting
specified
c. Except for those activities not governor is actually a quasigovernor. For
officiallysponsoredorapprovedby purposesofexercisinghislegislativeprerogatives
the LGU concerned (Sec 21(c) R.A. and powers, heis deemed a nonmember of the
7160) SPforthetimebeing.

Note: Any city, municipality or barangay may, by In the event of inability of the regular presiding
ordinance,temporarilycloseandregulatetheuseof officer to preside at the sanggunian session, the
alocalstreet,road,thoroughfareoranyotherpublic memberspresentandconstitutingaquorumshall
placewhereshopping,Sunday,fleaornightmarkets
elect from among themselves a temporary
maybeestablishedandwherearticlesofcommerce
presiding officer.(Gamboa v. Aguirre, G.R. No.
maybesoldordispensedwithtothegeneralpublic.
134213,July20,1999)
(Sec21(d)R.A.7160)

Q:Whatisthequoruminthesanggunian?

2.e.LocalLegislativePower
A: A majority of all the members of the

sanggunianwhohavebeenelectedandqualified.
Q: Who exercises local legislative power and
(Sec.53(a)R.A.7160)
theirpresidingofficer(PO)?

Q: What are the procedural steps or actions to
A:
be taken by the presiding officer if there is a
Sangguniang
Province Vicegovernor questionofquorumandifthereisnoquorum?
panlalawigan

Sangguniang Cityvice
City A: Should there be a question of quorum raised
panlungsod mayor
Sangguniang Municipality during a session, the PO shall immediately
Municipality proceed to call the roll of the members and
bayan vicemayor
Sangguniang Punong thereafter announce the results. (Sec. 53(a) R.A.
Barangay 7160)
barangay barangay

Note:ThePOshallvoteonlytobreakatie.(Sec. Ifthereisnoquorum:
49(a)R.A.7160) 1. Declare a recess until such time that
quorumisconstituted
2. Compel attendance of the member
Q:Intheabsenceoftheregularpresidingofficer,
absentwithoutjustifiablecause
whopresidesinthesanggunianconcerned? 3. Declare the session adjourned for lack
of quorum and no business shall be
A: The members present and constituting a transacted(Sec.53(b)R.A.7160)
quorum shall elect from among themselves a
temporarypresidingofficer. Q:Howaresessionsfixed?

196
POLITICALLAWTEAM:
VILLAMOR.
LOCAL GOVERNMENTS
A: sentimentoropinionofa
IFREGULARSESSIONS IFSPECIALSESSIONS lawmakingbodyonaspecific
Whenpublicinterests matter
Byresolutiononthe1st sodemandmaybe Generaland
dayofthesession calledbythelocalchief permanent Temporaryinnature
immediatelyfollowingthe executiveorbya character
electiontheelectionsof majorityofthe GR:Notnecessaryinresolution
itsmembers membersofthe
sanggunian XPN:unlessdecidedotherwise
Thirdreadingis
byamajorityofallthe
necessaryforan
Q: What are the requirements of a sanggunian sangguniangmembers(Article
ordinance
session? 107,pars.aandc,
ImplementingRulesand
A: RegulationsofRA7160)
1. Shall be open to public unless it is a
closeddoorsession Q. What are the requisites for validity? (must
2. Notwosessions,regularorspecial,may notbeCUPPU,mustbeGC)
beheldinasingleday
3. Minutesofthesessionberecordedand A:
each sanggunian shall keep a journal 1. Must not Contravene the constitution
and record of its proceedings which
andanystatute
may be published upon resolution of
2. MustnotbeUnfairoroppressive
thesanggunianconcerned.
3. MustnotbePartialordiscriminatory
4. Incaseofspecialsessions:
4. Must not Prohibit, but may regulate

trade
a. Written notice to the members 5. MustnotbeUnreasonable
must be served personally at least 6. Must be General in application and
24hoursbefore Consistentwithpublicpolicy.(Magtajas
b. Unless otherwise concurred in by vs. Pryce Properties Corporation, Inc,
2/3 votes of the sanggunian G.R.No.111097July20,1994)
members present, there being no
quorum, no other matters may be
considered at a special session LocalInitiativeandReferendum
except those stated in the notice.

(Sec.52R.A.7160)
Q:Distinguishlocalinitiativefromreferendum.
Q: On its first regular session, may the
Sanggunian transact business other than the A:
matterofadoptingorupdatingitsexistingrules INITIATIVE REFERENDUM
orprocedure? Thelegalprocess Thelegalprocess
wherebytheregistered wherebytheregistered
votersofaLGUmay votersoftheLGUmay
A: Yes. There is nothing in the language of the
directlypropose,enact approve,amendorreject
LGC that restricts the matters to be taken up
oramendany anyordinanceenactedby
during the first regular session merely to the
ordinance.(Sec.120 thesanggunian.(Sec.126
adoption or updating of the house rules. R.A.7160) R.A.7160)
(Malonzo v. Zamora, G.R. No. 137718, July 27,

1999).
Q:Whatarethelimitationsonlocalinitiative?

Q:Whataretheproductsoflegislativeaction
A:
andtheirrequisitesforvalidity?
1. It shall not be exercised for more than
onceayear.
A: 2. It shall extend only to subjects or
ORDINANCE RESOLUTION matters which are within the legal
Law Merelyadeclarationofthe
197

powers of the sanggunian to enact. effected(Sec.56and
(Sec.124R.A.7160) 58,R.A.7160)

Note: Any proposition or ordinance approved
Q: What is the effect of the enforcement of a
through an initiative and referendum shall not be
disapprovedordinanceorresolution?
repealed, modified or amended by the sanggunian

within6monthsfromthedateofapprovalthereof,
A:Itshallbesufficientgroundforthesuspension
andmaybeamended,modifiedorrepealedwithin3
yearsthereafterbyavoteofofallitsmembers.In or dismissal of the official or employee (Sec. 58,
case of barangays, the period shall be 18 months R.A.7160)
aftertheapprovalthereof.(Sec.125R.A.7160)
Q: When is the effectivity of ordinances or
Q: How is a review of the ordinances or resolutions?
resolutionsdone?
A:
A: GR: Within 10 days from the date a copy is
REVIEWOF posted in a bulletin board and in at least 2
COMPONENTCITYAND conspicuousspaces.(Sec.59(a)R.A.7160)
REVIEWOFBARANGAY
MUNICIPAL
ORDINANCES
ORDINANCESOR XPN: Unless otherwise stated in the
RESOLUTIONS ordinance or resolution. (Sec. 59(a) R.A.
Whoreviews 7160)
Sangguniang
SanggunianPanlalawigan Panglungsodor Q: What ordinances require publication for its
SangguniangBayan effectivity?
Whencopiesofordinanceorresolutionsbe
forwarded A:
Within3daysafter Within10daysafter 1. Ordinances that carry with them penal
approval itsenactment sanctions.(Sec.59(c)R.A.7160)
Periodtoexamine 2. Ordinances and resolutions passed by
Within30daysafterthe highly urbanized and independent
receipt;mayexamineor componentcities.(Sec.59(d)R.A.7160)
maytransmittothe
provincialattorneyor Q: What are the instances of approval of
provincialprosecutor. Within30daysafter ordinances?
Ifthelatter,mustsubmit thereceipt
hiscommentsor A:
recommendationswithin 1. If the chief executive approves the
10daysfromreceiptofthe same,affixinghissignatureoneachand
document everypagethereof
Whendeclaredvalid 2. If the local chief executive vetoes the
Ifnoactionhasbeentaken
same,andthevetoisoverriddenby2/3
voteofallmembersofthesanggunian.
within30daysafter Same

submission
Note: Local Chief Executive may veto the
Wheninvalid(grounds)
ordinance only once on the ground that
Ifinconsistentwith
theordinanceisultraviresandprejudicial
thelaworcityor
to public welfare. The veto must be
municipalordinance
Ifbeyondthepower communicatedtothesanggunianwithin

conferredonthe a. 15days=province
Effect:Brgyordinance
sangguniangpanlungsod b. 10days=cityormunicipality
issuspendeduntil
suchtimeasthe Q: What are the items that the local chief
revisioncalledis
executivemayveto:
198
POLITICALLAWTEAM:
VILLAMOR.
LOCAL GOVERNMENTS
Q: What is the difference between the suability

A: andliabilityoftheLocalGovernment?
1. Item/sofanappropriationordinance.
2. Ordinance/resolution adopting local A: Where the suability of the state is conceded
development plan and public
andbywhichliabilityisascertainedjudicially,the
investmentprogram
stateisatlibertytodetermine foritselfwhether
3. Ordinance directing the payment of
moneyorcreatingliability to satisfy the judgment or not. (Municipality of
HagonoyBulacanvs.Hon.SimeonDumdum,G.R.
Note: Ordinances enacted by the sangguniang No.168289March22,2010)
barangayshall,uponapprovalbyamajorityofallits
members be signed by the punong barangay. The Q: May LGU funds and properties be seized
latterhasnovetopower. under writs of execution or garnishment to
satisfyjudgmentsagainstthem?

2.f.CorporatePowers A: No, The universal rule that where the State
gives its consent to be sued by private parties
Q:WhatarethecorporatepowersofanLGU? either by general or special law, it may limit
claimants action only up to the completion of
A: proceedings anterior to the stage of execution
1. To have continuous succession in its andthatthepoweroftheCourtsendswhenthe
corporatename judgment is rendered, since government funds
2. Tosueandbesued
and properties may not be seized under writs of

execution or garnishment to satisfy such
Note: Only the Provincial Fiscal or the Municipal
Attorneycanrepresentaprovinceormunicipalityin judgments,isbasedonobviousconsiderationsof
lawsuits. This is mandatory. Hence, a private publicpolicy.Disbursementsofpublicfundsmust
attorney cannot represent a province or be covered by the corresponding appropriations
municipality. as required by law. The functions and public
servicesrenderedbytheStatecannotbeallowed
3. Tohaveanduseacorporateseal to be paralyzed or disrupted by the diversion of
public funds from their legitimate and specific
Note: Any new corporate seals or changes on objects. (Traders Royal Bank v. Intermediate
suchshallberegisteredwithDILG. Appellate Court, G.R. No. 68514, December 17,
1990)
4. To acquire and convey real or personal
property Q: What is the exception to the above stated
5. Toenterintocontracts;and rule?
6. To exercise such other powers as

granted to corporations (Sec. 21, R.A.
A:Theruleontheimmunityofpublicfundsfrom
7160)
seizureorgarnishmentdoesnotapplywherethe
Q:Whoistheproperofficertorepresentthecity funds sought to be levied under execution are
incourtactions? already allocated by law specifically for the
satisfaction of
the money judgment against the
A: The city legal officer is supposed to represent government. In such a case, the monetary
thecityinallcivilactionsandspecialproceedings judgment may be legally enforced by judicial
wherein the city or any of its officials is a party, processes. (City of Caloocan v. Allarde, G.R. No.
but where the position is as yet vacant, the City 107271,September10,2003)
Prosecutor remains the citys legal adviser and
officer for civil cases. (Asean Pacific Planners vs. Q: What are the requisites of a valid municipal
CityofUrdaneta,G.R.No.162525,September23, contract?
2008)

199

A: Q: Is Public bidding required when LGUs enter
1. The local government unit has the intocontracts?
express, implied or inherent power to
enterintotheparticularcontract A:Yes,intheawardofgovernmentcontracts,the

law requires competitive public bidding. It is
2. The contract is entered into by the
proper department board, committee, aimedtoprotectthepublicinterestbygivingthe
officeroragent. public the best possible advantages thru open
competition. It is a mechanism that enables the
Note: Nocontractmaybeenteredintobythelocal government agency to avoid or preclude
chief executive on behalf of the local government anomalies in the execution of public contracts.
without prior authorization by the sanggunian (Garcia vs.Burgos, G.R. No. 124130,June 29,
concerned, unless otherwise provided. (Sec 22(c) 1998)
R.A.7160)
Q:Whenisthereafailureofbidding?
3. The contract must comply with certain
substantiverequirements: A:whenanyofthefollowingoccurs:
a. Actualappropriation;and
1. Thereisonlyoneofferor
b. certificateofavailabilityoffunds
2. When all the offers are noncomplying

or unacceptable. (Bagatsing vs.
4. The contract must comply with the
Committee on Privatization, G.R. No.
formal requirements of written
112399July14,1995)
contracts

Note:Thisincludesthepowertoacquireandconvey Q:Canamunicipalcontractberatified?
propertiesbytheLGUthroughwrittencontracts.
A:No,whenthelocalchiefexecutiveentersinto
Q:Whatareultravirescontracts? contracts, he needs prior authorization or
authority from the Sanggunian and not
A: These are contracts entered into without the ratification. (Vergara vs. Ombudsman, G.R. No.
first and third requisites. Such are null and void 174567,March12,2009)
andcannotberatifiedorvalidated.
Q:WhatpropertiesmaybealienatedbyLGUs?
Q: What documents must support the contract
ofsaleenteredintobytheLGU? A: Only Properties owned in its private or
proprietary capacity (Patrimonial Property).
A: (Province of Zamboanga del Norte vs. City of
1. Resolution of the sanggunian Zamboanga,G.R.No.L24440,March28,1968)
authorizingthelocalchiefexecutiveto
enter into a contract of sale. The Article 424 of the Civil Code lays down the basic
resolution shall specify the terms and
principle that properties of public dominion
conditions to be embodied in the
contract; devoted to public use and made available to the
2. Ordinance appropriating the amount public in general are outside the commerce of
specifiedinthecontract man and cannot be disposed ofor leased by the
3. Certificationofthelocaltreasurerasto local government unit to private persons.
availability of funds together with a (Macasiano vs. Diokno, G.R. No. 97764, August
statement that such fund shall not be 10,1992)
disbursed or spent for any purpose

other than to pay for the purchase of
the property involved. (Jesus is Lord Q: Give important rules regarding LGUs power
Christian School Foundation, Inc. vs. toacquireandconveyrealorpersonalproperty.
MunicipalityofPasig,G.R.No.152230,
August9,2005)

200
POLITICALLAWTEAM:
VILLAMOR.
LOCAL GOVERNMENTS
A: Q:Whatistherulewithrespecttotheliabilities
1. In the absence of proof that the of(LGUs)andtheirofficials?
property was acquired through
corporate or private funds, the A: LGUs and their officials are not exempt from
presumption is that it came from the
liabilityfordeathorinjurytopersonsordamage
State upon the creation of the
municipality and, thus, is governmental toproperty(Sec.24,R.A.7160).
or public property. (Salas vs. Jarencio,
G.R. No. L29788, August 30, 1972; Q:WhatarethespecificprovisionsmakingLGUs
Rabuco vs. Villegas, G.R. No. L24661, liable?
February28,1974)
2. Town plazas are properties of public A:
dominion; they may be occupied
1. LGU shall be liable for damages for the
temporarily,butonlyforthedurationof
death of, or injuries suffered by, any
an emergency (Espiritu vs. Municipal
person by reason of the defective
Council of Pozorrubio, Pangasinan, G.R.
condition of roads, streets, bridges,
No.L11014,January21,1958).
publicbuildings,andotherpublicworks
3. Publicplazasarebeyondthecommerce
undertheircontrolorsupervision.(Art.
of man, and cannot be the subject of
2189,NewCivilCode)
lease or other contractual undertaking.

And, even assuming the existence of a
Note:LGUisliableeveniftheroaddoesnotbelong
valid lease of the public plaza or part
thereof, the municipal resolution to it as long as it exercises control or supervision
effectively terminated the agreement, oversaidroads.
for it is settled that the police power
cannot be surrendered or bargained 2. The State is responsible when it acts
away through the medium of a through a special agent. (Art. 2180,
contract. (Villanueva vs. Castaneda, NCC)
G.R.No.L61311,September2l,1987)
3. When a member of a city or municipal
Q: Who has the authority to negotiate and police force refuses or fails to render
securegrants? aid or protection to any person in case
ofdangertolifeorproperty,suchpeace
A: The local chief executive may, upon authority officer shall be primarily liable for
damages and the city or municipality
ofthesanggunian,negotiateandsecurefinancial
shall be subsidiarily responsible
grants or donations in kind, in support of the therefor.(Art.34,NCC)
basic services and facilities enumerated under
Sec. 17, R.A. 7160 from local and foreign Q:Whatarethebasesformunicipalliabilities?
assistanceagencieswithoutnecessityofsecuring
clearanceorapprovalofanydepartment,agency, A:
orofficeofthenationalgovernmentorfromany 1. Liabilityarisingfromviolationoflaw
higher local government unit; Provided that
projects financed by such grants or assistance Note: Liability arising from violation of
with national security implications shall be law such as closing municipal streets
without indemnifying persons
approvedbythenationalagencyconcerned.
prejudiced thereby, nonpayment of
wagestoitsemployeesoritsrefusalto
abide a temporary restraining order
2.g.MunicipalLiability mayresultincontemptchargeandfine.

Q:Whatisthescopeofmunicipalliability? 2. Liabilityoncontracts

Note:LGUisliableonacontractitenters
A:Municipalliabilitiesarisefromvarioussources into provided that the contract is intra
in the conduct of municipal affairs, both vires.Ifitisultravirestheyarenotliable.
governmentalandproprietary.
201

3. Liabilityfortort A:
1. LGUengaged (governmental function)
Note: Liability for tort may be held for notliable
torts arising from the performance of its 2. LGUengaged (proprietary function)
private and proprietary functions under th
liable(Rodriguez,p.105,LGC5 Edition)
theprincipleofrespondeatsuperior.They
are also liable for back salaries for
employees illegally dismissed/separated
orforitsrefusaltoreinstateemployees. 2.h.SettlementofBoundaryDisputes

Q: What are the conditions under which a local Q: State how the two local government units
executivemayenterintoacontractinbehalfof shouldsettletheirboundarydispute.
hisgovernmentunit?
A: Boundary disputes between local government
A:WAFAC units should, as much as possible, be settled
1. ThecontractmustbeWithinthepower amicably.Aftereffortsatsettlementfail,thenthe
ofthemunicipality disputemaybebroughttotheappropriateRTCin
2. Thecontractmustbeenteredintobyan the said province. Since the LGC is silent as to
Authorized officer (e.g. mayor with what body has exclusive jurisdiction over the
proper resolution by the Sangguniang
settlement of boundary disputes between a
Bayan,Sec.142LGC)
3. There must be appropriation and municipalityandanindependentcomponentcity
Certificateofavailabilityoffunds of the same province, the RTC have general
4. The contract must conform with the jurisdictiontoadjudicatethesaidcontroversy.
Formal requisites of a written contract
asprescribedbylaw;and Q: What bodyor bodies are vested by law with
5. In some cases the contract must be theauthoritytosettledisputesinvolving:
Approved by the President and/or
1. Two or more owns within the same
provincial governor (Sec. 2068 and Sec.
province
2196,RevisedAdm.Code)
2. Twoormorehighlyurbanizedcities.

Q: What is the doctrine of Implied Municipal
A:
Liability?
1. Boundary disputes involving two or
more municipalities within the same
A:Amunicipalitymaybecomeobligateduponan province shall be settled by the
implied contract to pay the reasonable value of sangguniang panlalawigan concerned.
thebenefitsacceptedorappropriatedbyitasto (Section 118[b], Local Government
which it has the general power to contract. Code)
2. Boundary disputes involving two or
(Province of Cebu v. IAC, G.R. No. L72841, Jan.
more highly urbanized cities shall be
29,1987) settled by the sangguniang panlungsod
of the parties. (Section 118[d], Local
Note:Estoppelcannotbeappliedagainstamunicipal GovernmentCode)
corporationinordertovalidateacontractwhichthe
municipal corporation has no power to make or Q:Statetheimportanceofdrawingwithprecise
whichitisauthorizedtomakeonlyunderprescribed strokes the territorial boundaries of a local
limitations or in a prescribed mode or manner governmentunit.
even if the municipal corporations has accepted
benefits thereunder. (Favis vs. Municipality of A: The boundaries must be clear for they define
Sabangan,G.R.No.L26522,February27,1969)
the limits of the territorial jurisdiction of a local

government unit. It can legitimately exercise
Q:Statetherulesonmunicipalliabilityfortort.
powersofgovernmentonlywithinthelimitsofits

territorial jurisdiction. Beyond these limits, its

acts are ultra vires. Needless to state, any

uncertainty in the boundaries of local
202
POLITICALLAWTEAM:
VILLAMOR.
LOCAL GOVERNMENTS
government units will sow costly conflicts in the Atleast23yearsoldonelectionday

exercise of governmental powers which
1. Governor
ultimately will prejudice the peoples welfare.
2. ViceGovernor
ThisistheevilsoughttobeavoidedbytheLocal 3. Mayor
GovernmentCodeinrequiringthatthelandarea 4. ViceMayor
ofalocalgovernmentunitmustbespelledoutin 5. MemberofSangguniangPanlungsodin
metes and bounds, with technical descriptions. highlyurbanizedcities
(Mariano,Jr.v.COMELEC,G.R.No.,118577,Mar. Atleast21yearsold
7,1995)
1. Mayor
2. ViceMayorofIndependentcomponent
3.LOCALOFFICIALS citiesormunicipalities
Atleast18yearsold
3.a.ElectiveOfficials
a. MemberofSangguniangPanglungsod
Q: What are the qualifications of elective b. MemberofSangguniangBayan
governmentofficial? c. PunongBarangay
d. MemberofSangguniangBarangay
A: Atleast15yearsofagebutnotmorethan18years
1. MustbeaFilipinocitizen ofageonelectionday(asamendedunderR.A.
2. Mustbearegisteredvoterin: 9164)
a. Thebarangay,municipality,cityor
CandidatesfortheSangguniangKabataan
province where he intends to be
elected
b. Thedistrictwhereheintendstobe Q: When should the citizenship requirement be
electedincaseofamemberifthe
possessed?
Sangguniang Panlalawigan,
Sangguniang Panlungsod, or
SangguniangBayan A:ThecitizenshiprequirementintheLGCistobe
possessedbytheelectiveofficial,atthelatest,as
3. Mustbearesidentthereinforatleast1 of the time he is proclaimed and at the start of
year immediately preceding the day of the term of office to which he has been elected.
theelection; The LGC does not specify any particular date or
time when the candidate must possess
Note: The term residence under Section 39(a) of
citizenship,unliketherequirementsforresidence
the LGC of 1991 is to be understood not in its
and age. Repatriation under PD 825 is valid and
common acceptation as referring to dwelling or
effective and retroacts to the date of the
habitation, but rather to domicile or legal
application. (Frivaldo v. COMELEC, G.R. No.
residence that is, the place where a party actually
orconstructivelyhashispermanenthome,wherehe, 120295,June28,1996)
nomatterwherehemaybefoundatanygiventime,
eventually intends to return and remain (animus Note:Filingofcertificateofcandidacyissufficientto
manendi)( Coquilla v. COMELEC, G.R. No. 151914, renounce foreign citizenship. However the Court
July31,2002). rulinghasbeensupersededbytheenactmentofR.A.
No. 9225in 2003.R.A. No. 9225 Sec. 5 expressly
provides for the conditions before those who re
4. Able to read and write Filipino/ any
otherlocallanguageordialect acquired Filipino citizenship may run for a public
officeinthePhilippines.(Lopezv.COMELEC,G.R.No.
5. Agerequirement:(Sec.39,LGC) 182701,June23,2008)

Upon repatriation, a former naturalborn Filipino is
deemed to have recovered his original status as a
naturalborncitizen.(BengzonIIIv.HRET,GR142840
May7,2001)
203

Q:XwasanaturalbornFilipinowhowenttothe more of imprisonment, within 2 years
USA to work and subsequently became a afterservingsentence
naturalized American citizen.However, prior to 2. Removed from office as a result of an
administrativecase
filing his Certificate of Candidacy for the Office
3. Convicted by final judgment for
of Mayor of the Municipality of General violating the oath of allegiance of the
Macarthur,EasternSamar,on28March2007,he Republic
applied for reacquisition of his Philippine 4. Withdualcitizenship
Citizenship. Such application was subsequently
granted.YfiledapetitiontodisqualifyXonthe Note: The phrase dual citizenship as a
ground of failure to comply with the 1year disqualification in R.A. No. 7160, 40(d) and in R.A.
residency requirement. Y argues that No. 7854, 20 must be understood as referring to
reacquisition of Philippine citizenship, by itself, dual allegiance. (Mercado v. Manzano, G.R. No.
does not automatically result in making X a 135083,May26,1999)
residentofthelocality.IsYcorrect?
5. Fugitivesfromjusticeincriminalornon
politicalcaseshereorabroad
A: Yes. Xs reacquisition of his Philippine
citizenshipunderR.A.No.9225hadnoautomatic Note: Fugitives from justice in criminal and non
impact or effect on his residence/domicile. He criminal cases here and abroad include not only
could still retain his domicile in the USA, and he thosewhofleeafterconvictiontoavoidpunishment,
did not necessarily regain his domicile in the but likewise those who after being charged, flee to
Municipality of General Macarthur, Eastern avoid prosecution (Marquez v. COMELEC, G.R. No.
Samar, Philippines. X merely had the option to 112889, April 18, 1995; Rodriguez v. COMELEC, GR
againestablishhisdomicileintheMunicipalityof 120099July24,1996)
General Macarthur, Eastern Samar, Philippines,
said place to have become his new domicile of 6. Permanent residents in a foreign
choice. The length of his residence therein shall countryorthosewhohaveacquiredthe
be determined from the time he made it his right to reside abroad and continue to
avail of the same right after the
domicileofchoice,anditshallnotretroacttothe
effectivelyofthisLGC;
timeofhisbirth.Itisthefactofresidencethatis 7. Insaneorfeebleminded(Sec.40,LGC)
thedecisivefactorindeterminingwhetherornot 8. Othergroundsfordisqualification:
an individual has satisfied the residency a. Vote buying (upon determination
qualificationrequirement. in a summary administrative
proceeding) (Nolasco v COMELEC,
GRNos.122250&122258July21,
However, even if Ys argument is correct, this
1997)
does not mean that X should be automatically b. Removal by administrative
disqualifiedaswell,sincethereisproofthataside proceedings (perpetual
from reacquisition of his Philippine Citizenship, disqualification) (Lingating v
there are other subsequent acts executed by X COMELEC, G.R. No. 153475, Nov.
which show his intent to make General Arthur, 13,2002)

Eastern Samar his domicile, thus making him
Q: May an official removed from office as a
qualified to run for Mayor. (Japzon v. COMELEC,
result of an administrative case, before the
G.R.No.180088,Jan.19,2009)
effectivity of the LGC be disqualified under

Section40ofsaidlaw?
Q: Who are persons disqualified from running

foranyelectivelocalposition?
A: No. Section 40 (b) of the LGC has no

retroactiveeffectandtherefore,disqualifiesonly
A:
those administratively removed from office after
1. Sentenced by final judgment for an
offenseinvolvingmoralturpitudeorfor January 1,1992 when LGC took effect (Greco v.
an offense punishable by 1 year or COMELEC, G.R. No. 125955, June 19, 1997). The
administrative case should have reached a final
204
POLITICALLAWTEAM:
VILLAMOR.
LOCAL GOVERNMENTS
determination. (Lingating v. COMELEC, G.R. No. A:

153475,Nov.13,2002) TEMPORARY
PERMANENTVACANCY
VACANCY
Q: What is the significance of possession of a Ariseswhen: Ariseswhenan
green card by a candidate for an elective electivelocalofficial: electedofficialis
position? 1. Fillsahighervacant temporarily
office incapacitatedto
2. Refusestoassume performtheirduties
A:Possessionofagreencardisampleevidence office
to show that the person is an immigrant to or a duetolegalor
3. Failstoqualify
4. Dies physicalreasonssuch
permanent resident of the U.S. Hence,
5. Removedfromoffice as:
immigrationtotheUSbyvirtueofaGreencard
6. Voluntarilyresigns 1. Physicalsickness,
which entitles one to reside permanently in that 2. Leaveofabsence,
7. Permanently
country, constitutes abandonment of domicile in incapacitatedto 3. Travelabroador
thePhilippines.(Ugdoracionv.COMELEC,G.R.No. dischargethefunctions 4. Suspensionfrom
179851,April18,2008) ofhisoffice(Sec.44, office.(Sec.46,
LGC) LGC)

Q: Can a candidate receiving the next highest
Q:Whatarethetwowaysoffillingthevacancy?
votebedeclaredthewinnerafterthecandidate

receiving the majority of votes is declared
A:
ineligible?
1. Automaticsuccession
2. Byappointment(Sec.45,LGC)
A:
GR: No. The ineligibility of a candidate Q: State the rules of succession in case of
receiving the majority of votes does not permanentvacancies.
entitle the eligible candidate receiving the
next highest number of votes to be declared A:
winner. 1. Incaseofpermanentvacancyin:
a. Office of the governor: vice
XPN: The rule would be different if the governor
electorate, fully aware of a candidates b. Officeofthemayor:vicemayor
disqualificationsoastobringsuchawareness c. Office of the governor, vice
within the realm of notoriety, would governor, mayor or vicemayor:
highest ranking Sanggunian
nonetheless cast the votes in favor of the
member or in case of his
ineligible candidate. In such case, the permanent inability, the second
electorate may be said to have waived the highest ranking Sanggunian
validity and efficacy of their votes by member successor should have
notoriously applying their franchises or come from the same political
throwing away their votes in which case, the party.
d. Officeofthepunongbarangay:the
eligible candidate obtaining the next highest
highest ranking sangguniang
number of votes may be deemed elected.
barangaymembersuccessormay
(Labo v. COMELEC, G.R. No. 105111, July 3, or may not have come from the
1992) samepoliticalparty.

Note:Forpurposesofsuccession,ranking
3.b.VacanciesandSuccession intheSanggunianshallbedeterminedon
the basis of the proportion of the votes
Q: What are the two classesof vacancies in the obtainedbyeachwinningcandidatetothe
electivepost? total number of registered voters in each
districtintheprecedingelection.
205

In case of tie between and among the A:
highest ranking Sangguniang members, 1. In case of temporary vacancy of the
resolvedbydrawinglots(Section44,LGC). post of the local executive (leave of
The general rule is that the successor (by absence, travel abroad, suspension):
appointment)shouldcomefromthesame vice governor, vice mayor, highest
political party as the Sangunian member ranking sangguniang barangay shall
whose position has become vacant. The automatically exercise the powers and
exceptionwouldbeinthecaseofvacancy
performthefunctionsofthelocalChief
Executiveconcerned.
intheSangguniangbarangay.

GR: He cannot exercise the power to
2. In case automatic succession is not appoint,suspendordismissemployees
applicable and there is vacancy in the
membershipofthesanggunian: XPN: If the period of temporary
incapacityexceeds30workingdays.
a. The President thru the Executive
Secretaryshallappointthepolitical 2. If travelling within the country, outside
nominee of the local executive for his jurisdiction, for a period not
the sangguniang exceeding 3 days: he may designate in
panlalawigan/panlungsod of highly writing the officerincharge. The OIC
urbanized cities/independent cannot exercise the power to appoint,
componentcities suspendordismissemployee.
b. The Governor, shall appoint the
political nominees for the 3. If without said authorization, the vice
sanggunian panlungsod of governor, vicemayor or the highest
componentcities/bayanconcerned rankingsangguniangbarangaymember
th
c. The city/municipal mayor shall shallassumethepowersonthe4 day
appoint the recommendee of the ofabsence.(Sec.46,LGC)
sangguniangbarangayconcerned.
Q:Howistemporaryincapacityterminated?
Note: The last vacancy in the
Sanggunian refers to that created by the A:
elevation of the member formerly
1. It shall terminate upon submission to
occupyingthenexthigherinrankwhichin theappropriatesanggunianofawritten
turnalsohadbecomevacantbyanyofthe declaration by the local chief executive
causes already enumerated. The term concernedthathehasreportedbackto
lastvacancyisthususedinSection45(b) officeIfthetemporaryincapacitywas
to differentiate it from the other vacancy dueto:
previouslycreated.Thetermbynomeans a. Leaveofabsence
referstothevacancyintheNo.8position b. Travelabroad
which occurred with the elevation of 8th c. Suspension.
placer to the seventh position in the 2. If the temporary incapacity was due to
legal reasons, the local chief executive
Sanggunian. Such construction will result
should also submit necessary
in absurdity. (Navarro v. CA, G.R. No.
documentsshowingthatthelegalcause
141307,Mar.28,2001) nolongerexist.(Sec.46[b],LGC)

Incaseofvacancyintherepresentationof Q: May the local chief executive authorize any
the youth and the barangay in the
local official to assume the powers, duties and
Sanggunian, vacancies shall be filled
functions of the office other than the vice
automaticallywiththeofficialnextinrank
governor, city or municipal vicemayor, or
oftheorganizationconcerned.
highest ranking sangguniang barangay member

asthecasemaybe?
Q:Statetherulesincaseoftemporaryvacancies

inlocalpositions.
A:

GR:No.
206
POLITICALLAWTEAM:
VILLAMOR.
LOCAL GOVERNMENTS
Note:Anelectivelocalofficialmayberemovedfrom
XPN:Iftravellingwithinthecountry,outside officeonthegroundenumeratedabovebyorderof
hisjurisdiction.(Sec.46[c],LGC) thepropercourtonly.TheOfficeofthePresidentis
withoutanypowertoremoveelectedofficials,since
Note: A vicegovernor who is concurrently an suchpowerisexclusivelyvestedinthepropercourts
acting governor is actually a quasigovernor. as expressly provided for in the last paragraph of
For the purpose of exercising his legislative Section 60, LGC. (Salalima v. Guingona, G.R. No.
prerogativesandpowers,heisdeemedanon 117589,May22,1996)
member of the sangguninang panlalawigan for
the time being. (Gamboa v. Aguirre, G.R. No. Q:Whatisremoval?
134213,July20,1999)
A:Removalimportstheforcibleseparationofthe
incumbent before the expiration of his term and
3.c.DisciplinaryActions can be done only for cause as provided by law.
(Dariov.Mison,G.R.No.81954,August8,1989)
Q:Whatarethegroundsfordisciplinaryactions?
Note: The removal not for a just cause or non
A: An elective local official may be disciplined, compliance with the prescribed procedure
constitutes reversible error and this entitles the
suspendedorremovedfromofficeonanyofthe
officer or employee to reinstatement with back
followinggrounds:
salariesandwithoutlossofseniorityrights.Basis

1. Disloyalty to the Republic of the
Philippines Q: Does the Sangguniang Panglungsod and
Sangguniang Bayan have the power to remove
Note:Anadministrative,notcriminal,case electiveofficials?
fordisloyaltytotheRepubliconlyrequires
substantialevidence(Aguinaldov.Santos, A: No. The pertinent legal provisions and cases
G.R.No.94115,August21,1992) decided by this Court firmly establish that the
Sanggunaing Bayan is not empowered to do so.
2. CulpableviolationoftheConstitution Section 60 of the Local Government Code
3. Dishonesty, oppression, misconduct in conferred upon the courts the power to remove
office, gross negligence, dereliction of elective local officials from office. (The
duty
Sangguniang Barangay of Don Mariano Marcos
4. Commission of nay offense involving
moral turpitude or an offense vs.Martinez,G.R.No.170626,March3,2008)
punishablebyatleastprisionmayor
5. Abuseofauthority Q:Whomayfileanadministrativeaction?
6. GR: Unauthorized absence for 15
consecutiveworkingdays, A:
1. Any private individual or any
XPN: in the case of members of the government officer or employee by
Sangguniang: filling a sworn written complaint
a. Panlalawigan (verified);
b. Panglunsod 2. Office of the President or any
c. Bayan government agency duly authorized by
d. Barangay lawtoensurethatLGUsactwithintheir
prescribed powers and functions.
7. Applicationfororacquisitionofforeign (ADMINISTRATIVE ORDER NO. 23, Rule
citizenshiporresidenceorthestatusof 3Sec.1,December17,1992)
animmigrantofanothercountry;
8. Suchothergroundsasmaybeprovided Q:Whereshouldanadministrativecomplaintbe
bytheCode/otherlaws.(Sec.60,LGC) filed?

207

A: A verified complaint shall be filed with the recordsandotherevidence.(Sec.63[b],
following: LGC)
1. OfficeofthePresidentagainstelective
official of provinces, HUC, ICC, Q:Whocanimposepreventivesuspension?
componentcities.
2. Sangguniang Panlalawigan elective A:
officialsofmunicipalities;and Authorityto
3. Sangguniang Panglunsod or Bayan impose
elective barangay officials. (Sec. 61,
suspension RespondentLocalOfficial
LGC)
belongsto

the
Note: A reelected local official may not be held
administratively accountable for misconduct Electiveofficialofaprovince,
committed during his prior term of office. There is President highlyurbanizedorindependent
no distinction as to the precise timing or period componentcity
when the misconduct was committed, reckoned Electiveofficialofacomponentcity
Governor
fromthedateoftheofficialsreelection,exceptthat ofmunicipality
itmustbepriortosaiddate.(Garciav.Mojica,G.R. Electiveofficialofabarangay.(Sec
Mayor
No.139043,Sept.10,1999) 63[a],LGC)

Q:Whenissubsequentreelectionconsidereda Q:Statetheruleonpreventivesuspension.
condonation?
A:
A: When proceeding is abated due to elections 1. Asinglepreventivesuspensionshallnot
andthereisnofinaldeterminationofmisconduct extendbeyond60days;
2. In the event that there are several
yet.(MalinaovReyes,GR117618Mar.29,1996)
administrative cases filed, the elective
official cannot be preventively
Note: Subsequent reelection cannot be deemed a suspended for more than 90 days
condonation if there was already a final withinasingleyearonthesameground
determination of his guilt before the reelection. or grounds existing and known at the
(Reyesv.COMELEC,G.R.No.120905March7,1996) timeofhisfirstsuspension.(Sec.63[b],
LGC)
The rule that public official cannot be removed for
administrativemisconductcommittedduringaprior Q:Statetherulesonadministrativeappeals.
term, since his reelection to office operates as a

condonationoftheofficerspreviousmisconductto
A: Decisions in administrative cases may, within
the extent of cutting off the right to remove him
30daysfromreceiptthereof,beappealedtothe
therefore, has no application to pending criminal
following:
cases against petitioner for the acts he may have

committed during a failed coup. (Aguinaldo v.
Santos,G.R.No.94115,Aug.21,1992) 1. The Sangguniang panlalawigan, in case
of decisions of the sangguniang

panlungsodofcomponentcitiesandthe
Q: When should preventive suspension be
sangguniangbayan;and
imposed? 2. TheOfficeofthePresident,in thecase
of decisions of the sangguniang
A: panlalawigan and the sangguniang
1. Aftertheissuesarejoined; panlungsod of highly urbanized cities
2. Whentheevidenceofguiltisstrong; and independent component cities.
3. Giventhegravityoftheoffense,thereis (Sec.67,LGC)
great probability that the continuance
in office of the respondent could Note: Decisions of the President shall be final and
influencethewitnessesorposeathreat executory.
to the safety and integrity of the
208
POLITICALLAWTEAM:
VILLAMOR.
LOCAL GOVERNMENTS
Q: When is resignation of a public elective Q: Does the LGC withdraw the power of the
officialeffective? Ombudsman under R.A. 6770 to conduct
administrativeinvestigation?
A: Resignation of elective officials shall be
deemed effective only upon acceptance by the A:No.Hence,theOmbudsmanandtheOfficeof
followingauthorities: the President have concurrent jurisdiction to
conduct administrative investigations over
1. The President, in case of governors, electiveofficials.(Hagadv.GozoDadole,G.R.No.
vicegovernors, and mayors and vice 108072,Dec.12,1995)
mayors of highly urbanized cities and
independentandcomponentcities
Q: Who may sign an order preventively
2. The Governor, in the case of municipal
mayors and vicemayors, city mayors suspendingofficials?
andvicemayorsofcomponentcities
3. The Sanggunian concerned, in case of A: It is not only the Ombudsman, but also his
sangguninanmembers Deputy, who may sign an order preventively
4. TheCityorMunicipalMayor,incaseof suspendingofficials.Also,thelengthoftheperiod
barangayofficials.(Sec.82,LGC) of suspension within the limits provided by law

and the evaluation of the strength of the
Q: What is the difference between the
evidence both lie in the discretion of the
preventivesuspensionprovidedunderR.A.6770
Ombudsman. It is immaterial that no evidence
andunderLGC?
has been adduced to prove that the official may
influence possible witnesses ormay tamper with

A:
thepublicrecords.Itissufficientthatthereexists
PREVENTIVE PREVENTIVE
suchapossibility.(CastiloCov.Barbers,G.R.No.
SUSPENSIONUNDERRA SUSPENSIONUNDER
6770 LGC 129952June16,1998)
Requirements:
1.Theevidenceofguiltis Q. What is the effect of an appeal on the
strong;and preventive suspension ordered by the
Requirements:
2.Thatanyofthe 1. There is reasonable
Ombudsman?
followingcircumstances ground to believe
arepresent: that the respondent A. An appeal shall not stop the decision from
a. Thechargeagainst has committed the beingexecutory.Incasethepenaltyissuspension
the officer of act or acts orremovalandtherespondentwinssuchappeal,
employee should complainedof; he shall be considered as having been under
involve 2. The evidence of preventivesuspensionandshallbepaidthesalary
dishonesty, culpabilityisstrong;
and such other emoluments that he did not
oppression or 3. The gravity of the
receivebyreasonofthesuspensionorremoval.A
grave misconduct offensesowarrants;
decision of the Office of the Ombudsman in
or neglect in the 4. The continuance in
performance of office of the administrativecasesshallbeexecutedasamatter
duty; respondent could of course. (Office of the Ombudsman vs.
b. The charges influence the Samaniego,G.R.No.175573,October5,2010)
should warrant witnesses or pose a
removal from threat to the safety
office;or and integrity of the 3.d.Recall
c. The respondents records and other
continued stay in evidence.
Q:Whatisrecall?
office would
prejudice the case
filedagainsthim. A: It is a mode of removal of a public officer by
Maximumperiod:60 the people before the end of his term. The
Maximumperiod:6 days.(Hagadv.Gozo peoplesprerogativetoremoveapublicofficeris
months Dadole,G.R.No.108072
anincidentoftheirsovereignpower,eveninthe
Dec.12,1995)
absence of constitutional restraint; the power is
209

impliedinallgovernmentaloperations.(Garciav. term of office for loss of confidence;
Comelec,G.R.No.111511October5,1993) and

Note: Expenses for the conduct of recall elections: 2. No recall shall take place within one
Annual General Appropriations Act has a year from the date of the officials
contingency fund at the disposal of the COMELEC assumption to office or one year
immediately preceding a regular
(Sec.75,LGC)
election.(Sec.74,LGC)

Q:Whatisthegroundforrecall?Isthissubject
Q: Section 74 of the Local Government Code
tojudicialinquiry?
provides that no recall shall take place within

one year immediately preceding a regular local
A:Theonlygroundforrecalloflocalgovernment
election. What does the term regular local
officialsislossofconfidence.No,itisnotsubject
election,asusedinthissection,mean?
to judicial inquiry, the Court ruled that loss of

confidence as a ground for recall is a political
A: It refers to one where the position of the
question. (Evardone v. COMELEC, G.R. No. 94010
official sought to be recalled is to be actually
Dec.2,1991).
contested and filled by the electorate. (Paras v.

Comelec,G.R.No.123169,Nov.4,1996)
Q: Upon whom and how may a recall be

initiated?
The oneyear time bar will not apply where the

localofficialsoughttoberecalledisaMayorand
A:
the approaching election is a barangay election.
1.Who:anyelective
(Angobungv.COMELEC,G.R.No.126576,Mar.5,
a.Provincial
1997)
b.City

c.Municipal
Q.Statetheinitiationoftherecallprocess.
d.Barangayofficial

A:
2.How:byapetitionofaregisteredvoterinthe
1. PetitionofaregisteredvoterintheLGU
LGU concerned and supported by the registered concerned,supportedbypercentageof
voters in the LGU concerned during the election registered voters during the election in
in which the local official sought to be recalled which the local official sought to be
waselected.(Sec.70ofR.A.7160,asamendedby recalled was elected.(% decreases as
R.A.9244) population of people in area increases.
Also,thesupportingvotersmustallsign

thepetition).
Note:ByvirtueofR.A.9244,Secs.70and71ofthe
2. Within 15 days after filing, COMELEC
Local Government Code were amended, and the must certify the sufficiency of the
PreparatoryRecallAssemblyhasbeeneliminatedas required number of signatures. Failure
a mode of instituting recall of elective local to obtain required number
governmentofficials. automaticallynullifiespetition.
3. Within 3 days of certification of
Allpendingpetitionsforrecallinitiatedthroughthe sufficiency, COMELEC provides official
Preparatory Recall Assembly shall be considered with copy of petition and causes its
dismissedupontheeffectivityofRA9244(Approved publication for three weeks (once a
Feb.19,2004) week) in a national newspaper and a
local newspaper of general circulation.

Petition must also be posted for 10 to
Q:Whatarethelimitationsonrecall? 20 days at conspicuous places. Protest
should be filed at this point and ruled
A: withfinality15daysafterfiling.
1. Anyelectivelocalofficialmaybesubject 4. COMELECverifiesandauthenticatesthe
ofarecallelectiononlyonceduringhis signature
210
POLITICALLAWTEAM:
VILLAMOR.
LOCAL GOVERNMENTS
5. COMELEC announces acceptance of Q:WhatisthetermlimitofBarangayofficials?

candidates.
6. COMELEC sets election within 30 days A: The term of office of barangay officials was
upon completion of previous section in
fixed at three years under R.A. No. 9164 (19
barangay/city/municipality proceedings
and 45 days in the case of provincial March 2002). Further, Sec.43 (b) provides that
officials. Officials sought to be recalled "nolocalelectiveofficialshallserveformorethan
are automatically candidates. (Sec 70, three(3)consecutivetermsinthesameposition.
R.A.7160) TheCourtinterpretedthissectionreferringtoall
local elective officials without exclusions or
Q: May an elective local official sought to be exceptions. (COMELEC v. Cruz, G.R. No. 186616,
recalledresign? Nov.19,2009)

A:Theelectivelocalofficialsoughttoberecalled
shall not be allowed to resign while the recall 3.f.AppointiveOfficials
processisinprogress.(Sec.73,LGC)
Q:Mayagovernordesignateanactingassistant
Q.Whendoesrecalltakeeffect? treasurer?

A: Only upon the election and proclamation of a A:No.UndertheLGCandRevisedAdministrative
successorinthepersonofthecandidatereceiving Code, provincial governor is not authorized to
the highest number of votes cast during the appoint or even designate a person in cases of
electiononrecall.Shouldtheofficialsoughttobe temporaryabsenceordisability.Powerresidesin
recalled receive the highest number of votes, thePresidentorSecretaryofFinance.(Dimaandal
confidence in him is thereby affirmed, and he v.COAG.R.No.122197,June26,1998)
shallcontinueinoffice.(Sec.72,LGC)
Q:MaythemayorofOlongapobeappointedas
Q.WillitbeproperfortheCOMELECtoactona SBMAchairmanforthefirstyearofoperation?
petitionforrecallsignedbyjustoneperson?
A: No. This violates constitutional prohibition
A:Apetitionforrecallsignedbyjustoneperson against appointment or designation of elective
is in violation of the statutory 25% minimum officials to other government posts. Appointive
requirement as to the number of signatures officials may be allowed by law or primary
supporting any petition for recall. (Angobung v. functions of his position to hold multiple offices.
COMELEC,G.R.No.126576,March5,1997) Elective officials are not so allowed, except as
otherwise recognized in the Constitution. The
provisionalsoencroachesontheexecutivepower
3.e.TermLimits toappoint.(Floresv.Drilon,G.R.No.104732,June
22,1993)
Q:Whatisthetermofofficeofanelectedlocal
official? Q:WhatistheroleofCSCinappointingofficials?

A: Three (3) years starting from noon of June 30 A: CSC cannot appoint but can determine
following the election or such date as may be qualification. In disapproving or approving
providedbylaw,exceptthatofelectivebarangay appointments,CSConlyexamines:
officials, for maximum of 3 consecutive terms in 1. The conformity of the appointment
sameposition(Section43,LGC). withapplicableprovisionsoflaw;
2. Whether or not appointee possesses
The term of office of Barangay and Sangguniang theminimumqualificationsandnoneof
Kabataan elective officials, by virtue of R.A. No. the disqualifications.(Debulgado v. CSC,
G.R.No.111471Sept.26,1994)
9164,isthree(3)years.

211

Q: What are the grounds for recall of A: No. Mayor is not allowed even if the wife is
appointment? qualified because of prohibition against nepotic
appointments. (Sec. 59, Book 5 of RAC) This
A: prohibition covers all appointments, original and
1. Noncompliance with procedure or personnel actions (promotion, transfer,
criteria provided in the agencys merit reinstatement, reemployment). (Debulgado v.
promotionplan; CSC,G.R.No.111471,Sept.26,1994)
2. Failure to pass through agencys

selection/promotionboard;
Note: The boyfriend of the daughter of the mayor
3. Violation of existing collective
agreement between management and wasappointedtoapost.Whenhisappointmentwas
employeesrelativetopromotion; temporary, he became the soninlaw. Mayor then
4. Violation of other existing civil service recommended that his appointment become
law rules and regulations. (Maniebo v. permanent. This was considered nepotism and was
CA,G.R.No.158708,August10,2010) disallowed(CSCv.Tinaya,GR154898Feb.16,2005)

Q: Does the Governor have the authority to
terminateorcancelappointmentsofcasual/job 3.g.ProvisionsApplicabletoElectiveand
order employees of the Sangguniang AppointiveOfficials
Panlalawigan Members and Office of the Vice
Governor? Q: What are the prohibited business and
pecuniaryinterest?
A: No. While the Governor has the authority to
appoint officials and employees whose salaries A:
arepaidoutoftheprovincialfunds,thisdoesnot 1. Engageinanybusinesstransactionwith
extend to the officials and employees of the thelocalgovernmentunitinwhichheis
SangguniangPanlalawiganbecausesuchauthority anofficialoremployeeoroverwhichhe
is lodged with the ViceGovernor. In the same has the power of supervision, or with
manner, the authority to appoint casual and job anyofitsunauthorizedboards,officials,
order employees of the Sangguniang agents,orattorneys,wherebymoneyis
Panlalawigan belongs to the ViceGovernor. This to be paid, or property or any other
authorityisanchoredonthefactthatthesalaries thing of value is to be transferred
of these employees are derived from the directly or indirectly, out of the
appropriation specifically allotted for the said resources of the local government unit
local legislative body (Atienza v. Villarosa, G.R. tosuchpersonorfirm.
No.161081,May10,2005)
2. Hold such interests in any cockpit or
Q: Does the constitutional prohibition on other games licensed by a local
midnightappointmentsapplytoLGUs? governmentunit;

A:No.Theprohibitionappliesonlytopresidential 3. Purchase any real estate or other
appointments.TheydonotapplytoLGUs,aslong propertyforfeitedinfavorofsuchlocal
as the appointments meet all the requisites of a government unit for unpaid taxes or
assessment, or by virtue of a legal
valid appointment. Once an appointment has
processattheinstanceofthesaidlocal
been made and accepted, the appointing governmentunit.
authority cannot unilaterally revoke it. But the
CSCmaydosoifitdecidesthattherequirements 4. Beasuretyforanypersoncontactingor
were not met. (De Rama v. CA, G.R. No. 131136 doing business with the local
Feb.28,2001) government unit for which a surety is
required;and

Q: May a mayor appoint his wife as head of
5. Possess or use any public property of
OfficeofGeneralServices?
the local government unit for private
purposes.(Sec.89LGC)

212
POLITICALLAWTEAM:
VILLAMOR.
LOCAL GOVERNMENTS
Q: What are the elements of unlawful concerned do not derive monetary compensation
interventionandprohibitedinterests? therefrom.(Section90[c],LGC)

A: Q: May a municipality adopt the work already
ELEMENTSOF performed in good faith by a private lawyer,
ELEMENTSOF
UNLAWFUL whichworkprovedbeneficialtoit?
PROHIBITEDINTEREST
INTERVENTION
1.Accusedisapublic
1.Publicofficer A:Althoughamunicipalitymaynothireaprivate
officer
2.Accusedhasdirector lawyertorepresentitinlitigations,intheinterest
2.Hehasdirector ofsubstantialjustice,however,itwasheld,thata
indirectfinancialor
indirectfinancialor
pecuniaryinterestinany municipality may adopt the work already
pecuniaryinterestinany
business,contract,or performed in good faith by such private lawyer,
business,contract,
transaction,Whetheror
transaction which work is beneficial to it, provided that no
notprohibitedbylaw
3.Heintervenesortakes injustice is thereby headed on the adverse party
3.Heisprohibitedfrom andprovidedfurtherthatnocompensationinany
partinhisofficial
havingsuchinterestby
capacityinconnection guiseispaidthereforebysaidmunicipalitytothe
theConstitutionorlaw.
withsuchinterest private lawyer. Unless so expressly adopted, the
(Tevesv.
(Tevesv.
Sandiganbayan,G.R.No. private lawyers work cannot bind the
Sandiganbayan,G.R.No.
154182,Dec.17,2004) municipality (Ramos v. CA, G.R. No. 99425, Mar.
154182,Dec.17,2004)
3,1997)
Q: Can local chief executives practice their
profession? Q: May a municipality be represented by a
private law firm which had volunteered its
A: No. All governors, city and municipal mayors services for free, in collaboration with the
areprohibitedfrompracticingtheirprofessionor municipalattorneyandthefiscal?
engaging in any occupation other than the
exercise of their functions as local chief A:SuchrepresentationwillbeviolativeofSection
executives.(Sec.90[a],LGC) 1983 of the old Administrative Code. Private
lawyersmaynotrepresentmunicipalitiesontheir
Q: Can Sanggunian members practice their own. Neither may they do so even in
profession? collaboration with authorized government
lawyers. This is anchored on the principle that
A:Yes.Subjecttocertainlimitations: only accountable public officers may act for and
1. Cannot appear in civil case where the in behalf of public entities and that public funds
localgovernmentunit,officeroragency should not be expended to hire private lawyers.
orinstrumentalityistheadverseparty (Ramosv.CA,G.R.No.99425,Mar.3,1997)
2. Cannotappearincriminalcasewherein
anofficeroremployeeisaccusedofan Note: The municipalitys authority to employ a
offense committed in relation to his
privatelawyerisexpresslylimitedonlytosituations
office
where the provincial fiscal is disqualified to
3. Cannotcollectfeesfortheirappearance
in administrative proceedings involving representit.Fortheexceptiontoapply,thefactthat
localgovernmentunitofwhichheisan the provincial fiscal was disqualified to handle the
official municipalitys case must appear on record. The
4. Cannot use property and personnel of refusal of the provincial fiscal to represent the
the government except when the municipalityisnotalegaljustificationforemploying
sanggunian member concerned is the services of private counsel. Instead of engaging
defending the interest of the the services of special attorney, the municipal
government.(Sec.90[b],LGC) council should request the Secretary of Justice to
appoint an acting provincial fiscal in place of the
Note: Doctors of medicine may practice their provincial fiscal who has declined to handle and
professionevenduringofficialhoursofworkonlyon prosecute its case in court. (Pililla v. CA, G.R. No.
occasions of emergency: Provided, that the officials 105909,June28,1994)
213

Q:Whataretheinstanceswhenaprivatelawyer provinceinaccordancewiththeprovisionsofR.A.
canrepresentanLGU? 7160. The same statute vests upon the Vice
Governorthepowertobethepresidingofficerof
the Sangguniang Panlalawigan and sign all
A:
warrants drawn on the provincial treasury for all
1. When the municipality is an adverse expenditures appropriated for the operation of
party in a case involving the provincial the Sangguniang Panlalawigan. (Atienza v.
government or another municipality or VillarosaG.R.161081,May10,2005)
citywithintheprovince
Q: May the punongbarangay validly appoint or
2. Whereoriginaljurisdictionisvestedwith remove the barangay treasurer, the barangay
theSC.
secretary, and other appointive barangay

officialswithouttheconcurrenceofthemajority
Q: What is the test in determining whether a
of all the members of the Sangguniang
localgovernmentofficialcansecuretheservices
Barangay?
ofprivatecounsel?

A: No. The LGC explicitly vests on the Punong
A: In resolving whether a local government
barangay, upon approval by a majority of all the
officialmaysecuretheservicesofprivatecounsel
members of the Sangguniang Barangay, the
in an action filed against him in his official
power to appoint or replace the barangay
capacity, the nature of the action and the relief
treasurer, the barangay secretary, and other
sought are to be considered. (Mancenido v. CA,
appointivebarangayofficials.Verily,thepowerof
G.R.No.118605,Apr.12,2000)
appointment is to be exercised conjointly by the

Q: State the rule on prohibition against punong barangay and a majority of all the
appointment of elective officials to another members of the sangguniang barangay. Without
office. such conjoint action, neither appointment nor
A: replacement can be effectual. (Ramon Alquizoia,
1. No elective official shall be eligible for Sr. v. Gallardo Ocol, G.R. No. 132413, Aug. 27,
appointment or designation in any 1999)
capacitytoanypublicofficeorposition
during his tenure (Flores v. Drilon, G.R.
104732,June22,1993) 4.INTERGOVERNMENTALRELATIONS

2. Exceptforlosingcandidatesinbarangay
Q:Discusstheinterlocalgovernmentrelations.
elections, no candidate who lost in any

election shall, within one year after
A:Thegovernorshallreviewall executiveorders
such election, be appointed to any
promulgatedbythecomponentcityormunicipal
office in the government or any GOCC
mayor within his jurisdiction within 3 days from
ortheirsubsidiaries.(Sec.94,LGC)
their issuance. So do with the city or municipal

mayorovertheexecutiveorderspromulgatedby
Q: Who between the Governor and the Vice thepunongbarangay.
Governor is authorized to approve purchase
orders issued in connection with the If the executive orders concerned are not acted
procurement of supplies, materials, equipment, upon by the referred local executives, it shall be
including fuel, repairs, and maintenance of the deemedconsistentwithlawandthereforevalid.
SangguniangPanlalawigan?

A: ViceGovernor. Under R.A. 7160, local
legislativepowerfortheprovinceisexercisedby
the Sangguniang Panlalawigan and the Vice
Governor is its presiding officer. Being vested
with legislative powers, the Sangguniang
Panlalawigan enacts ordinances, resolutions and
appropriatesfundsforthegeneralwelfareofthe
214
POLITICALLAWTEAM:
VILLAMOR.
NATIONAL ECONOMY AND PATRIMONY
M.NATIONALECONOMYANDPATRIMONY indigenous peoples.Its purpose is definitional

andnotdeclarativeofarightortitle.
Q: What are the policies of the national
economy? The specification of what areas belong to the
ancestral domains is, to our mind, important to
A: ensure that no unnecessary encroachment
1. Moreequitabledistributionofwealth onprivate propertiesoutside the ancestral
2. Increased wealth for the benefit of the domains will result during the delineation
people process.The mere fact that Section 3(a) defines
3. Increasedproductivity ancestral domains to include the natural
resources found therein does notipso
Q:Whatismeantbypatrimony? factoconvert the character of such natural
resources as private property of the indigenous
A:Itrefersnotonlytonaturalresourcesbutalso peoples.Similarly,Section5inrelationtoSection
toculturalheritage.(ManilaPrinceHotelv.GSIS, 3(a) cannot be construed as a source of
G.R.No.122156,Feb.3,1997) ownership rights of indigenous people over the
natural resources simply because it recognizes
ancestral domains as their private but
a.REGALIANDOCTRINE communityproperty.

Q:WhatistheRegalianDoctrine(juraregalia)? The phrase private but community property is
merely descriptive of the indigenous peoples
A: It is the doctrine which reserves to the State concept of ownership as distinguished from that
the full ownership of all natural resources or provided in the Civil Code.In contrast, the
natural wealth that may be found in the bowels indigenous peoples concept of ownership
oftheearth.(Albano,PoliticalLawReviewer) emphasizes the importance of communal or
group ownership.By virtue of the communal
Note: All lands of the public domain, waters, character of ownership, the property held in
minerals,coal,petroleum,andothermineraloils,all commoncannotbesold,disposedordestroyed
forces of potential energy, fisheries, forests, or because it was meant to benefit the whole
timber, wildlife, flora and fauna, and natural indigenous community and not merely the
resourcesbelongtotheState.Withtheexceptionof individualmember.
agricultural lands, all other natural resources shall
notbealienated.(Sec.2,Art.XII,1987Constitution) That IPRA is not intended to bestow ownership
overnaturalresourcestotheindigenouspeoples
Q:WhatistheexceptiontotheprovisionofSec. is also clear from the deliberations of the
2,Art.XII,1987Constitution? bicameral conference committee on Section 7
which recites the rights of indigenous peoples
A:Anylandinthepossessionofanoccupantand overtheirancestraldomains.
of his predecessorsininterest since time
immemorial.(OhChov.DirectorofLand,G.R.No. Further,Section7makesnomentionofanyright
48321,Aug.31,1946) of ownership of the indigenouspeoples over the
natural resources.In fact, Section 7(a) merely
Q: Does R.A. 8371, otherwise known as the recognizes the right to claim ownership over
Indigenous Peoples Rights Act infringe upon lands, bodies of water traditionally and actually
theStatesownershipoverthenaturalresources occupied by indigenous peoples, sacred places,
withintheancestraldomains? traditional hunting and fishing grounds, and all
improvements made by them at any time within
A: No. Section 3(a) of R.A. 8371 merely defines the domains.Neither does Section 7(b), which
thecoverageofancestraldomains,anddescribes enumerates certain rights of the indigenous
the extent, limit and composition of ancestral peoples over the natural resources found within
domains by setting forth the standards and their ancestral domains, contain any recognition
guidelines in determining whether a particular of ownershipvisvisthe natural
areaistobeconsideredaspartofandwithinthe resources.(SeparateOpinion,Kapunan,J.,inCruz
ancestral domains.In other words, Section 3(a) v. Secretary of Environment andNatural
serves only as a yardstick which points out what Resources,G.R.No.135385,Dec.6,2000,EnBanc
properties are within the ancestral domains.It [PerCuriam])
does not confer or recognize any right of
ownership over the natural resources to the
215

Q:WhatdoestheIPRAprotect? 5. Utilizationofnaturalresourcesinrivers,
lakes,bays,andlagoonsmaybeallowed
A: What is evident is that the IPRA protects the on a small scale Filipino citizens or
indigenouspeoplesrightsandwelfareinrelation cooperatives with priority for
to the natural resources found within their subsistence fishermen and fishworkers
ancestral domains, including the preservation of (The bias here is for the protection of
theecological balance therein and the need to the little people). (Bernas, The 1987
ensure that the indigenous peoples will not be Philippines Constitution: A Reviewer
unduly displaced when the Stateapproved Primer,2006)
activities involving the natural resources located
thereinareundertaken.(Ibid.) Q:Whatisthepresumptionincaseofabsenceof
proofofprivateownership?
Q: What is the consequence of the Regalian
DoctrineinSection2,Art.XII,1987Constitution? A: The presumption is that the land belongs to
the State. Thus, where there is no showing that
A:Anypersonclaimingownershipofaportionof the land had been classified as alienable before
alandofthepublicdomainmustbeabletoshow the title was issued, any possession thereof, no
title from the State according to any of the matterhowlengthy,cannotripenintoownership.
recognized modes of acquisition of title. (Lee (Republic v. Sayo, G.R. No. L60413, October 31,
Hong Kok v. David, G.R. No. L30389, December 1990).
27,1972).
And all lands not otherwise appearing to be
Q:WhatarethelimitsimposedbySection2that clearlywithinprivateownershiparepresumedto
embodiestheJuraRegaliaoftheState? belong to the State. (Seville v. National
DevelopmentCompany,GRno.129401,February
A: 2,2001)
1. Only agricultural lands of the public
domainmaybealienated. Q: Do the courts have jurisdiction over
classificationofpubliclands?
2. The exploration, development, and
utilization of all natural resources shall A: In our jurisdiction, the task of administering
be under the full control and anddisposinglandsofthepublicdomainbelongs
supervision of the State either by to the Director of Lands and, ultimately, the
directly undertaking such exploration, SecretaryofEnvironmentandNaturalResources.
development,andutilizationorthrough The classification of public lands is, thus, an
coproduction, joint venture, or exclusive prerogative of the Executive
productionsharing agreements with Department through the Office of the President.
qualifiedpersonsorcorporations. (Republicv.RegisterofDeedsofQuezon,G.R.No.
73974,31May1995)
3. All agreements with the qualified
privatesectormaybeforonlyaperiod Q:WhatistheStewardshipDoctrine?
not exceeding 25 years, renewable for
another 25 years. (The 25 year limit is A:Privatepropertyissupposedtobeheldbythe
not applicable to water rights for individual only as a trustee for the people in
irrigation, water supply, fisheries, or general,whoareitsrealowners.
industrial uses other than the
development of water power, for
which beneficial use may be the b.NATIONALISTANDCITIZENSHIP
measureandthelimitofthegrant.) REQUIREMENTPROVISIONS

4. The use and enjoyment of marine Q:WhataretheFilipinizedactivitiesasprovided
wealth of the archipelagic waters, inArticleXIIoftheConstitution?
territorial sea, and exclusive economic
zone shall be reserved for Filipino A:
citizens. (It would seem therefore that 1. Coproduction, joint venture or
corporations are excluded or at least production sharing agreement for
mustbefullyownedbyFilipinos.) exploration, development and
utilization(EDU)ofnaturalresources:
216
POLITICALLAWTEAM:
VILLAMOR.
GR: Filipino citizens or entities with c.EXPLORATION,DEVELOPMENTAND

60%capitalization; UTILIZATIONOFNATURALRESOURCES

XPN: For largescale EDU of minerals, Q: What is the State policy regarding
petroleum and other mineral oils, the exploration, development and utilization of
President may enter into agreements NaturalResources?
with foreignowned corporations
involving technical or financial A: The exploration, development, and utilization
agreements. ofnaturalresourcesshallbeunderthefullcontrol
and supervision of the State. The State may
Note: These agreements refer to service directlyundertakesuchactivities,oritmayenter
contracts which involve foreign into coproduction, joint venture, or production
managementandoperationprovidedthat sharing agreements with Filipino citizens, or
the Government shall retain that degree corporations or associations at least 60 per
ofcontrolsufficienttodirectandregulate centum of whose capital is owned by such
the affairs of individual enterprises and citizens.(Sec.2,ArtXII,1987Constitution)
restrain undesired activities. (La Bugal
BlaanTribalAssoc.v.DENRSecretary,G.R.
Q: Section 2 speaks of coproduction, joint
No.127882,Dec.1,2004)
venture, or production sharing agreements as

modes of exploration, development, and
2. Use and enjoyment of nations marine
utilization of inalienable lands. Does this
wealth within the territory: Exclusively
effectivelyexcludetheleasesystem?
forFilipinocitizens.

A: Yes, with respect to mineral and forest lands
3. Alienablelandsofthepublicdomain:
(Agricultural lands may be subject of lease).
a. Only Filipino citizens may acquire
(Bernas, The 1987 Philippines Constitution: A
not more than 12 hectares by
ReviewerPrimer,2006)
purchase, homestead or grant, or

leasenotmorethan500hectares.
Q: Who are qualified to take part in the
b. Privatecorporationsmayleasenot
exploration, development and utilization of
more than 1000 hectares for 25
naturalresources?
years renewable for another 25

years;
A: Filipino citizens and corporations or

associationsatleastsixtypercent(60%)ofwhose
4. Certain areas of investment: reserved
capitalisownedbyFilipinocitizens.
forFilipinocitizensorentitieswith60%

owned by Filipinos, although Congress
Note: However, that as to marine wealth, only
mayprovideforhigherpercentage;
Filipino citizens are qualified. This is also true of
In the Grant of rights, privileges and
natural resources in rivers, bays, lakes and
concessions covering the national
lagoons, but with allowance for cooperatives.
economy and patrimony, State shall
(Bernas, The 1987 Philippines Constitution: A
give preference to qualified Filipinos;
ReviewerPrimer,2006)
and

Q: If natural resources, except agricultural land,

5. Franchise, certificate or any other form
cannotbealienated,howmaytheybeexplored,
of authorization for the operation of a
developed,orutilized?
publicutility;onlytoFilipinocitizensor

entitieswith60%ownedbyFilipinos;
A:

1.DirectundertakingofactivitiesbytheStateor
Note:Suchfranchise,etc.,shallneitherbe
exclusive,norforaperiodlongerthan50
2. Coproduction, joint venture, or production
years and subject to amendment, sharing agreements with the State and all
alteration or repeal by Congress; All under the full control and supervision of the
executive and managing officers must be State. (Miners Association of the Philippines v.
Filipinocitizens. Factoran,G.R.No.98332,January16,1995)

Q:IftheStateentersintoaservicecontractwith
BULLET,aforeignownedcorporation,isitvalid?

217

A:Yes,butsubjecttothestrict limitationsinthe A:Yes,Section10,RA776revealstheclearintent
last two paragraphs of Section 2. Financial and ofCongresstodelegatetheauthoritytoregulate
technical agreements are a form of service the issuance ofa license to operate domestic air
contract. Such service contacts may be entered transport services. (Philippine Airlines v. Civil
into only with respect to minerals, petroleum, Aeronautics Board, G.R. No. 119528, March 26,
and other mineral oils. The grant of such service 1997)
contractsissubjecttoseveralsafeguards,among
them: Also,theSupremeCourtacknowledgedthatthere
1. That the service contract be crafted in is a trend towards delegating the legislative
accordancewithagenerallawsettingstandardof power to authorize the operation of certain
uniformterms,conditionsandrequirements; public utilities to administrative agencies and
2. The President be the signatory for the dispensing with the requirement of a
government;and congressional franchise. However, in this case, it
3. The President report the executed agreement washeldthatinviewoftheclearrequirementfor
to Congress within thirty days. (La Bugal Blaan a legislative franchise under PD 576A, the
Tribal Association v. DENR, G.R. No. 127882, authorization of a certificate of public
December1,2004) convenience by the NTC for the petitioner to
operate television Channel 25 does not dispense
with the need for a franchise. (Associated
d.FRANCHISES,AUTHORITYANDCERTIFICATES Communications and Wireless Services United
FORPUBLICUTILITIES Broadcasting Networks v. National
TelecommunicationsCommission,GRNo.144109,
Q: Who are qualified to acquire a Franchise, February17,2003)
certificateoranyotherformofauthorizationfor
theoperationofapublicutility? Q:Whatisapublicutiliy?

A:Filipinocitizensorcorporationsatleast60%of A:Apublicutilityisabusinessorserviceengaged
whose capital is Filipino owned. (Art. XII, Section in regularly supplying the public with some
11,1987Constitution) commodity or service of public consequence,
such as electricity, gas, water, transportation,
Q: Does a public utility franchise have the telephone or telegraph service. To constitute a
characteristicofexclusivity? public utility, the facility must be necessary for
the maintenance of life and occupation of the
A:No,Afranchisetooperateapublicutilityisnot residents. As the name indicates, public utility
an exclusive private property of the franchisee. implies public use and service to the public. (JG.
Nofranchiseecandemandoracquireexclusivitly Summit Holdings v. Court of Appeals, G.R. No.
in the operation of a public utility. Thus, a 124293,September24,2003)
franchiseecannotcomplainofseizureortakingof
property because of the issuance of another Q: Is a franchise required before one can own
franchise to a competitor. (Pilipino Telephone thefacilitiestooperateapublicutility?
Corporationv.NRC,G.R.No.138295,2003)
A:Afranchiseisnotrequiredbeforeonecanown
Q: Is the power to grant licenses for or to thefacilitiesneededtooperateapublicutilityso
authorize the operation of public utilities solely long as it does not operate them to serve the
vestedtocongress? public.(Tatadv.Garcia,G.R.No.114222,April6,
1995)
A:No,thelawhasgrantedcertainadministrative
agencies such power (See E.O. nos. 172& 202), Q:Isashipyardapublicutility?
SupremeCourtsaidthatCongressdoesnothave
the exclusive power to issue such authorization. A: A shipyard is not a public utility. Its nature
Administrative bodies, e.g. LTFRB, ERB, etc., may dictates that it serves but a limited clientele
be empowered to do so., Franchises issued by whom it may choose to serve at its discretion. It
congressarenotrequiredbeforeeachandevery has no legal obligation to render the services
public utility may operate. (Albano v. Reyes 175 sought by each and every client. (JG. Summit
SCRA264) Holdings v. CA, G.R. No. 124293, September 24,
2003)
Q: Can the Congress validly delegate its
authoritytoissuefranchisesandlicenses?
218
POLITICALLAWTEAM:
VILLAMOR.
Q: Can the government amend a radio or 4. The State may take over or direct the
television franchise to grant free airtime to operationofanyprivatelyownedpublic
COMELEC? utility or business affected with public
interest. (Sec. 17, Article XII, 1987
A: Yes, all broadcasting, whether by radio or Constitution)
televisionstations,islicensedbytheGovernment.
Radio and television companies do not own the Q:WhohastheprerogativeintheClassification
airwaves and frequencies; they are merely given ofPublicLands?
temporaryprivilegeofusingthem.Afranchiseisa
privilege subject to amendment, and the A: The prerogative of classifying public lands
provision of BP 881 granting free airtime to the pertains to administrative agencies which have
COMELEC is an amendment of the franchise of been specially tasked by statutes to do so and
radio and television stations. (TELEBAP v. the courts will not interfere on matters which
COMELEC,G.R.No.132922,April21,1998) are addressed to the sound discretion of
government and/or quasijudicial agencies
Q: May a foreigner who owns substantial entrusted with the regulation of activities
stockholdings in a corporation engaged in the coming under their special technical knowledge
advertising industry sit as a treasurer of said and training. (Republic v. Mendoza, GR
corporation? no.153727.March28,2007)

A: No, because a treasurer is an executive or a
managing officer. Sec. 11 (2), Art. XVI provides e.Acquisition,OwnershipandTransferofPublic
that the participation of the foreign investors in andPrivateLands
thegoverningbodiesofentitiesshallbelimitedto
their proportionate share in the capital thereof, Q:Whendoeslandofthepublicdomainbecome
and all the managing and executive officers of privateland?
suchentitiesmustbecitizensofthePhilippines.
A: When it is acquired from the government
Q:Whatistheownershiprequirementimposed eitherbypurchaseofbygrant.(OhChov.Director
by the Constitution upon business entities ofLands,G.R.No.48321,Aug.31,1946)
engagedinadvertising?
Q: What is the requirement for the
A:70%oftheirequitymustbeownedbyFilipino reclassification or conversion of lands of public
citizens.(Sec.11(2),Art.XVI,1987Constitution) domain?

Q:Whatistheownershiprequirementimposed A: There must be a positive act of government;
bytheConstitutionuponMassMedia? mere issuance of title is not enough. (Sunbeam
ConvenienceFoodv.CA,G.R.No.50464,Jan.29,
A: It must be wholly owned by Filipino citizens. 1990)
(Sec.11(1),Art.XVI,1987Constitution)
Q: Can public land be transformed into private
Q:Whatistheownershiprequirementimposed landthruprescription?
by the Constitution upon educational
institutions. A: Yes, if it is alienable land. OCENCO for more
than 30 years must, however, be conclusively
A:60%oftheirequitymustbeownedbyFilipino established.Thisquantumofproofisnecessaryto
citizens.(Sec.4[2],Art.XIV,1987Constitution) avoid erroneous validation of actually fictitious
claimsorpossessionoverthepropertyindispute.
Q: What are the requisites for the State to (San Miguel Corporation v. CA, GR No. 57667,
temporarily take over a business affected with May28,1990)
publicinterest?
Q:Whatistheruleonprivatelands?
A:
1. Thereisnationalemergency; A:
2. Thepublicinterestsorequires; GR: No private land shall be transferred or
3. During the emergency and under conveyed except to individuals, corporations or
reasonabletermsprescribedbyit; associations qualified to acquire or hold lands of
thepublicland.
219

XPNs: treatment as regards natural resources.The
1. Foreigners who inherit through unique value of natural resources has been
intestatesuccession; acknowledgedbytheStateandistheunderlying
2. Former naturalborn citizen may be a reason for its consistent assertion of ownership
transferee of private lands subject to and control over said natural resources from the
limitationsprovidedbylaw; Spanish regime up to the present. (Noblejas,
3. Ownershipincondominiumunits; Philippine Law on Natural Resources, 1961
4. Parity right agreement, under the 1935 RevisedEd.,p.6)
Constitution.
On the other hand, the United States viewed
Q: Can a natural born citizen of the Philippines natural resources as a source of wealth for its
who has lost his Philippine citizenship be a nationals.Astheownerofnaturalresourcesover
transfereeofprivatelands? the Philippines after the latters cession from
Spain, the United States saw it fit to allow both
A:Yes,subjecttothelimitationsimposedbyLaw, Filipino and American citizens to explore and
Thus, even if private respondents were already exploit minerals in public lands, and to grant
Canadians when they applied for registration of patents to private mineral lands. x x xThe
thepropertiesinquestion,therecouldbenolegal framers of the 1935 Constitution found it
impediment for the registration thereof, necessarytomaintaintheStatesownershipover
considering that it is undisputed that they were naturalresourcestoinsuretheirconservationfor
formerly naturalborn citizens. (Republic of the futuregenerationsofFilipinos,topreventforeign
Philippines v. CA, G.R. No. 108998, August 24, control of the country through economic
1984) domination;andtoavoidsituationswherebythe
Philippines would become a source of
Q: Can private corporations and associations international conflicts, thereby posing danger to
acquirepubliclands? itsinternalsecurityandindependence.

A:No.Theyareonlyallowedtoleasepubliclands. The declaration of State ownership and control
(Sec.3,Art.XII) over minerals and other natural resources in the
1935Constitutionwasreiteratedinboththe1973
Q: Does the constitutional policy of a self and 1987 Constitutions.(Separate Opinion,
reliantandindependentnationaleconomyrule Kapunan, J., in Cruz v. Secretary of Environment
outforeigncompetition? and Natural Resources, G.R. No. 135385, Dec. 6,
2000,EnBanc[PerCuriam])
A: No. It contemplates neither economic
seclusion nor mendicancy in the international Q: Is a religious corporation qualified to have
community. landsinthePhilippinesonwhichitmaybuildits
church and make other improvements provided
Aside from envisioning a trade policy based on these are actually, directly, exclusively used for
equality and reciprocity, the fundamental law religiouspurposes?
encourages industries that are competitive in
both domestic and foreign markets, thereby A: No. The mere fact that a corporation is
demonstrating a clear policy against a sheltered religiousdoesnotentitleittoownpublicland.As
domestic trade environment, but one in favor of held in Register of Deeds v. Ung Siu Si Temple
thegradualdevelopmentofrobustindustriesthat (G.R.No.L6776),landtenureisnotindispensable
cancompetewiththebestintheforeignmarkets. to the free exercise and enjoyment of religious
(Taadav.Angara,G.R.No.118295,May2,1997) profession of worship. The religious corporation
can own private land only if it is at least 60%
Q: Has the concept of native title to natural ownedbyFilipinocitizens.
resources, like native title to land, been
recognizedinthePhilippines? Q:Isacorporationsolequalifiedtopurchaseor
ownlandsinthePhilippines?
A: No. While native title tolandor private
ownership by Filipinos of land by virtue of time A: Yes. Sec. 113, BP Blg. 68 states that any
immemorial possession in the concept of an corporation sole may purchase and hold real
owner was acknowledged and recognized as far estate and personal property for its church,
back during theSpanish colonization of the charitable, benevolent or educational purposes,
Philippines, there was no similar favorable and may receive bequests or gifts for such
220
POLITICALLAWTEAM:
VILLAMOR.
purposes. There is no doubt that a corporation Q: What does Section 14, Article XII of the
sole by the nature of its Incorporation is vested Constitutionseektoachieve?
with the right to purchase and hold real estate
and personal property. It need not therefore be A: Section 14 reflects the desire not only to
treated as an ordinary private corporation develop a ready reservoir of Filipino
becausewhetherornotitbesotreatedassuch, professionals, scientists and skilled workers but
the Constitutional provision involved will, alsotoprotecttheirwelfare.(ibid.)
nevertheless, be not applicable. (Republic of the
Philippinesv.IAC.,G.R.No.75042,Nov.29,1988)
g.ORGANIZATIONANDREGULATIONOF
Q: Is a religious corporation allowed to lease CORPORATIONS,PRIVATEANDPUBLIC
privatelandinthePhilippines?
Q: May Congress provide for the organization
A:Yes.UnderSec.1ofP.D.471,corporationsand andregulationofprivatecorporations?
associationsownedbyaliensareallowedtolease
private lands up to 25 years, renewable for a A:TheCongressshallnot,exceptbygenerallaw,
period of 25 years upon the agreement of the provide for the formation, organization, or
lessorandthelessee.Hence,evenifthereligious regulation of private corporations. (Sec. 16, Art.
corporation is owned by aliens, it may still lease XII,1987Constitution)
privatelands.
Q:Whatisthepurposeofthisprovision?
Q: Are lands devoted to swine, poultry and
livestock raising included in the definition of A: Its purpose is to insulate Congress against
agriculturalland? pressures from special interests. To permit the
lawmakingbodybyspeciallawtoprovideforthe
A:No.(LuzFarmsv.SecretaryofAgrarianReform, organizationorformationorregulationofprivate
G.R.No.86889,Dec.4,1990) corporationsxxxwouldbeineffecttooffertoit
the temptation in many cases to favor certain
Q:Isfishpondconsideredwithinthedefinitionof groups to the prejudice of others or to the
agriculturalland? prejudiceoftheinterestsofthecountry.(Bernas,
The 1987 Constitution of the Philippines: A
A:Yes,accordingtothedefinitionadoptedbythe Commentary)
ConstitutionalCommission.
Q: May Congress enact a law creating
GovernmentOwned and Controlled
f.PRACTICEOFPROFESSION corporations?

Q: What is the State policy with regard to A: Governmentowned and controlled
professionalsandskilledworkers? corporations may be created or established by
special charters in the interest of the common
A: The sustained development of a reservoir of goodandsubjecttothetestofeconomicviability.
national talents consisting of Filipino scientists, (Sec.14,Art.XII,1987Constitution)
entrepreneurs, professionals, managers, high
leveltechnicalmanpowerandskilledworkersand Q: What does the phrase in the interest of the
craftsmen in all fields shall be promoted by the publicgoodandsubjecttothetestofeconomic
State.(Par.1,Sec.14,Art.XII,1987Constitution) viabilitymean?

Q: Who may practice their profession in the A: It means that governmentowned and
Philippines? controlled corporations must show capacity to
function efficiently in business and that they
A: should not go into activities which the private
GR: The practice of all professions in the sector can do better. Moreover, economic
PhilippinesshallbelimitedtoFilipinocitizens. viability is more than financial viability but also
included capability to make profit and generate
XPN: In cases provided by law. (Par. 2, Sec. 14, benefits not quantifiable in financial terms.
Art.XII,1987Constitution) (Bernas,The1987ConstitutionofthePhilippines:
ACommentary)

221

h.MONOPOLIES,RESTRAINTOFTRADEAND competition, among producers who will
UNFAIRCOMPETITION manufacture it. (Energy Regulatory Board v. CA
G.R.No.113079,April20,2001)
Q: What is the State policy regarding
monopolies? Q: Are monopolies prohibited by the
Constitution?
A:TheStateshallregulateorprohibitmonopolies
when the public interest so requires. No A: Monopolies are not per se prohibited by the
combination in restraint of trade or unfair Constitutionbutmaybepermittedtoexisttoaid
competition shall be allowed. (Sec. 19, Art. XII, thegovernmentincarryingonanenterpriseorto
1987Constitution) aid in the interest of the public. However,
because monopolies are subject to abuses that
Q: What is meaning of the phrase Unfair caninflictsevereprejudicetothepublic,theyare
ForeignCompetitionAndTradePractices? subjected to a higher level of State regulation
thananordinarybusinessundertaking.(Agan,Jr.
A:Thephraseisnottobeunderstoodinalimited v.PIATCO,G.R.No.155001,May5,2003)
legal and technical sense but in the sense of
anythingthatisharmfultoPhilippineenterprises. Q:Arecontractsrequiringexclusivityvoid?
Atthesametime,however,theintentionisnotto
protect local inefficiency. Nor is the intention to A: Contracts requiring exclusivity are not per se
protect local industries from foreign competition void. Each contract must be viewed visvis all
attheexpenseoftheconsumingpublic.(Bernas, thecircumstancessurroundingsuchagreementin
The 1987 Philippines Constitution: A Reviewer deciding whether a restrictive practice should be
Primer,2006) prohibitedasimposinganunreasonablerestraint
oncompetition.(Avonv.Luna,G.R.No.153674,
Q:Whatisamonopoly? December20,2006)

A:Amonopolyisaprivilegeorpeculiaradvantage Q:WhatisprohibitedbySection19?
vested in one or more persons or companies,
consisting in the exclusive right (or power) to A: Combinations in restraint of trade and unfair
carry on a particular business or trade, competition are prohibited by the Constitution.
manufacture a particular article, or control the (Sec.19,Art.XII,1987Constitution)
sale of a particular commodity. (Agan, Jr. v.
PIATCO,G.R.No.155001,May5,2003) Q: When is a monopoly considered in restraint
of trade and thus prohibited by the
Q:Whatistherationalebehindtheprovision? Constitution?

A:Theprovisionisastatementofpublicpolicyon A: From the wordings of the Constitution, truly
monopolies and on combinations in restraint of then, what is brought about to lay the test on
trade.Section19isantitrustinhistoryandspirit. whether a given an unlawful machination or
It espouses competition. Only competition which combination in restraint of trade is whether
is fair can release the creative forces of the under the particular circumstances of the case
market.Competitionunderliestheprovision.The andthenatureoftheparticularcontractinvolved,
objective of antitrust law is to assure a such contract is, or is not, against public policy.
competitive economy based upon the belief that (Avon v. Luna, G.R. No. 153674, December 20,
through competition producers will strive to 2006)
satisfy consumer wants at the lowest price with
thesacrificeofthefewestresources.Competition Q: Does the government have the power to
among producers allows consumers to bid for intervene whenever necessary for the
goods and services, and, thus matches their promotionofthegeneralwelfare?
desires with societys opportunity costs.
Additionally, there is a reliance upon the A: Yes, although the Constitution enshrines free
operationofthemarketsystem(freeenterprise) enterpriseasapolicy,itneverthelessreservesto
todecidewhatshallbeproduced,howresources the Government the power to intervene
shall be allocated in the production process, and whenever necessary for the promotion of the
towhomvariousproductswillbedistributed.The generalwelfare,asreflectedinSections6and19
market system relies on the consumer to decide of Article XII. (Association of Philippine Coconut
what and how much shall be produced, and on
222
POLITICALLAWTEAM:
VILLAMOR.
Desiccators v. Philippine Coconut Authrotiy, G.R.

No.110526,February10,1998)
Q: Does the WTO agreement violate Article II

Section19oftheConstitution?
A: No, the WTO agreement does not violate

Article II Section 19, nor Sections 19 and 12 of
ArticleXII,becausethesesectionsshouldberead
andunderstoodinrelationtoSections1and13of
Article XII, which require the pursuit of trade
policy that serves the general welfare and
utilizes all forms and arrangements of exchange
onthebasisofequalityandreciprocity.(Taada
v.Angara,G.R.No.118295,May2,1997)
223

N.SOCIALJUSTICEANDHUMANRIGHTS 6. Women
7. Roleandrightsofpeoplesorganization
Q:Whatarethegoalsofsocialjusticeunderthe 8. Humanrights
Constitution?
Q: Are workers in the private sector entitled to
A: therighttostrike?
1. Equitable diffusion of wealth and
politicalpowerforcommongood; A: Yes, but the same must be exercised in
2. Regulation of acquisition, ownership, accordance with the law. (Sec. 3, Art. XII, 1987
use and disposition of property and its Constitution)
increments;and
3. Creation of economic opportunities Q: What are the provisions of the Constitution
basedonfreedomofinitiativeandself onwomen?
reliance. (Sec. 1 and 2, Art. XIII, 1987
Constitution) A:
1. The State shall equally protect the life
ofthemotherandthelifeoftheunborn
a.CONCEPT from conception. (Sec. 12, Art II, 1987
Constitution)
Q:Whatissocialjustice?
2. TheStaterecognizestheroleofwomen
A: Social justice is neither communism, nor in nationbuilding, and shall ensure the
despotism, nor atomism, nor anarchy, but the fundamentalequalitybeforethelawof
humanization of laws and the equalization of women andmen. (Sec. 14, Art. II, 1987
social and economic force by the State so that Constitution)
justice in its rational and objectively secular
conception may at least be approximated. Social 3. TheStateshallprotectworkingwomen
justicemeansthepromotionofthewelfareofall byprovidingsafeandhealthfulworking
the people, the adoption by the Government of conditions, taking into account their
measures calculated to insure economic stability maternal functions, and such faculties
ofallcompetentelementsofsociety,throughthe and opportunities that will enhance
maintenance of a proper economic and social theirwelfareandenablethemtorealize
equilibrium in the interrelations of the members their full potential in the service of the
of the community, constitutionally, through the nation. (Sec. 14, Art. XIII, 1987
adoptionofmeasureslegallyjustifiable,orextra Constitution)
constitutionally, through the exercise of powers
underlying the existence of all governments on Q:Isthereaneedforconsultationbeforeurban
the timehonored principle of salus populi est andruraldwellerscanberelocated?
suprema lex. (Calalang v. Williams, 70 Phil 726,
[1940]) A: Yes. The urban and rural dwellers and the
communitieswheretheyaretoberelocatedmust
Social justice simply means the equalization of be consulted. Otherwise, there shall be no
economic,political,andsocialopportunitieswith resettlement.(Sec.15[2],Art.XIII)
special emphasis on the duty of the state to tilt
the balance of social forces by favoring the Q:Whatismeantbypeoplesorganization?
disadvantaged in life. (Bernas, The 1987
Philippines Constitution: A Reviewer Primer, A: Peoples Organizations are bona fide
2006) associations of citizens with demonstrated
capacity to promote the public interest and with
Q: What aspects of human life are covered by identifiable leadership, membership and
Art.XIII? structure.(Sec.15[2],Art.XIII)

A:
1. Socialjustice b.COMMISSIONONHUMANRIGHTS
2. Labor
3. Agrarianandnaturalresourcesreform Q: What is the composition of the Commission
4. Urbanlandreformandhousing onHumanRights?
5. Health
224
POLITICALLAWTEAM:
VILLAMOR.
SOCIAL JUSTICE AND HUMAN RIGHTS
A:
1. Chairman
2. 4Members
Q: What are the qualifications of members of

theCHR?
A:
1. Naturalborncitizens
2. MajoritymustbemembersoftheBar.
Q:DoestheCHRhavethepowertoinvestigate?
A: Yes. The CHR has the power to investigate all

forms of human rights violations involving civil
and political rights and monitor the compliance
by the government with international treaty
obligations on human rights. (Sec. 18, Art. XIII,
1987Constitution)
Q:DoestheCHRhavethepowertoissueTRO?
A: No. It also has no power to cite for contempt

for violation of the restraining order or a writ of
preliminary injunction. (Simon v. CHR, G.R. No.
100150,Jan.5,1994)
225

O.EDUCATION,SCIENCEANDTECHNOLOGY, A: The State cannot require children to attend
ARTS,CULTURE,ANDSPORTS only public schools before they reach a certain
age.ThechildisnotamerecreatureoftheState.
Q: What are the principal characteristics of Those who nurture him and direct his destiny
education which the State must promote and have the right to recognize and prepare him.
protect? (Piercev.SocietyofSisters268US510)

A: Q: What are the principal characteristics of
1. Qualityeducation education which the State must promote and
2. Affordableeducation(Sec.1,Art.XIV) protect?
3. Education that is relevant to the needs
ofthepeople.(Sec.2[1],Art.XIV) A:
1. Qualityeducation
Q: What is Parens Patriae with regards to 2. Affordableeducation(Sec.1,Art.XIV)
education? 3. Education that is relevant to the needs
ofthepeople.(Sec.2[1],Art.XIV)
A:TheStatehastheauthorityanddutytostepin
where parents fail to or are unable to cope with Q: What are the nationalized educational
theirdutiestotheirchildren. activities?

Q: What is the basis for the requirement that a A:
school or educational institution first obtain 1. Ownership:
governmentauthorizationbeforeoperating? a. FilipinoCitizensor
b. Corporationsorassociationswhere
A:ItisbasedontheStatepolicythateducational atleast60%ofthecapitalisowned
programs and/or operations shall be of good by Filipino citizens except those
quality and, therefore, shall at least satisfy establishedbyreligiousgroupsand
minimum standards with respect to curricula, missionboards;
teaching staff, physical plant and facilities and
administrative and management viability. 2. Controlandadministration;and
(Philippine Merchant Marine School Inc. v. Court 3. Studentpopulation(Sec.4[2],Art.XIV)
ofAppeals,G.R.No.112844,June2,1995)
Note: The Congress may increase Filipino equity
Q:CantheStateregulatetherightofacitizento participationinalleducationalinstitutions.
selectaprofessionorcourseofstudy?
Q: What language shall be used as official
A: Yes, while it is true that the Court has upheld mediumofcommunicationandinstruction?
theconstitutionalrightofeverycitizentoselecta
profession or course of study subject to fair, A: The official languages are Filipino and, until
reasonable and equitable admission and otherwise provided by law, English. The regional
academicrequirements,theexerciseofthisright languages are the auxiliary official languages in
mayberegulatedpursuanttothepolicepowerof the regions and shall serve as auxiliary media of
the State to safeguard health, morals, peace, instruction therein. Spanish and Arabic shall be
education, order, safety and general welfare. promotedonavoluntaryandoptionalbasis.(Sec.
Thus, persons who desire to engage in the 7,Art.XIV,1987Constitution)
learned professions requiring scientific or
technical knowledge may be required to take an
examinationasaprerequisitetoengagingintheir a.ACADEMICFREEDOM
chosen careers. This regulation assumes
particular pertinence in the field of medicine, in Q:WhataretheaspectsofAcademicFreedom?
order to protect the public from the potentially
deadly effects of incompetence and ignorance. A:Thereare3views:
(PRC v. De Guzman, GR No. 144681, june 21,
2004) 1. From the standpoint of the educational
institutionToprovidethatatmosphere
Q:CantheStaterequireacitizentoattendonly whichismostconducivetospeculation,
PublicSchool? experimentationandcreation;

226
POLITICALLAWTEAM:
VILLAMOR.
EDUCATION, SCIENCE AND TECHNOLOGY, ART, CULTURE AND SPORTS
2. Fromthestandpointofthefaculty request for the approval of the penalty of

a. Freedom in research and in automatic expulsion imposed on Aguilar et al.
the publication of the results, and ruled that they be reinstated. Lowering the
subject to the adequate penaltyfromexpulsiontoexclusion.
performance of his other
academicduties Was DLSU within its rights in expelling the
students?
b. Freedom in the classroom in
discussing his subject less A:No.ThepenaltyofexpulsionimposedbyDLSU
controversial matters which on private respondents is disproportionate to
bearnorelationtothesubject theirdeeds.Itistruethatschoolshavethepower
to instil discipline in their students as subsumed
c. Freedom from institutional in their academic freedom and that the
censorship or discipline, establishment of rules governing university
limited by his special position student relations particularly those pertaining to
inthecommunity student discipline, may be regarded as vital, not
merely to the smooth and efficient operation of
3. Fromthestandpointofthestudent theinstitutionbuttoitsverysurvival.Thispower
right to enjoy in school the does not give them the untrammelled discretion
guarantee of the Bill of Rights. to impose a penalty which is not commensurate
(Non v. Dames, G.R. No. 89317, withthegravityofthemisdeed.Iftheconceptof
May20,1990) proportionality between the offense committed
and the sanction imposed is not followed, an
Q:Whatarethelimitations? element of arbitrariness intrudes. (De La Salle
University,Inc.v.CA)
A:
1. DominantpolicepoweroftheState
2. SocialInterestofthecommunity
Q: What are the freedoms afforded to

educational institutions relating to its right to
determineforitselfonacademicgrounds?
A:
1. Whomayteach
2. Whatmaybetaught
3. Howshallitbetaught
4. Whomaybeadmittedtostudy(Miriam
College Foundation v. CA, G.R. No.
127930,Dec.15,2000)
Q: James Yap et al., students of De La Salle

University (DLSU) and College of Saint Benilde
are members of the Domingo Lux Fraternity.
They lodged a complaint with the Discipline
Board of DLSU charging Alvin Aguilar et al. of
Tau Gamma Phi Fraternity with direct assault
because of their involvement in an offensive
action causing injuries to the complainants
whichwereresultofafraternitywar.
The DLSUCSB Joint Discipline Board found

Aguilaretal.guiltyandweremetedthepenalty
of automatic expulsion. On a petition for
certiorari filedwith the RTC, it ordered DLSUto
allow them toenroll andcomplete their degree
courses until their graduation. The Commission
onHigherEducation(CHED)disapprovedDLSUs
227

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UST GOLDEN NOTES 2011

L.LOCALGOVERNMENTS Note: Every LGU created or recognized under this

A: Government corporations may be created by A: It is body politic and corporate constituted by

A:Upontheelectionandqualificationofitschief 2. The challenged cities claim that it

A:No.Congresscannotestablishanewlegislative Q: Congress passed a law providing for the

disposition by, the local government imposedbythenationalgovernmentforwhatever

Note: Where the Secretary of Justice reviews,

A: In case the effectivity of any tax ordinance or A:Communitytaxisapollorcapitationtaxwhich

affect the power of Congress to grant tax

Q: What is the difference between the suability

government units will sow costly conflicts in the Atleast23yearsoldonelectionday

determination. (Lingating v. COMELEC, G.R. No. A:

influence possible witnesses ormay tamper with

5. COMELEC announces acceptance of Q:WhatisthetermlimitofBarangayofficials?

M.NATIONALECONOMYANDPATRIMONY indigenous peoples.Its purpose is definitional

GR: Filipino citizens or entities with c.EXPLORATION,DEVELOPMENTAND

Q: If natural resources, except agricultural land,

Desiccators v. Philippine Coconut Authrotiy, G.R.

Q: Does the WTO agreement violate Article II

A: No, the WTO agreement does not violate

Q: What are the qualifications of members of

A: Yes. The CHR has the power to investigate all

A: No. It also has no power to cite for contempt

2. Fromthestandpointofthefaculty request for the approval of the penalty of

Q: What are the freedoms afforded to

Q: James Yap et al., students of De La Salle

The DLSUCSB Joint Discipline Board found

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