Local Government - Notes

HISTORICAL BACKGROUND OF LOCAL

GOVERNMENTS IN THE PHILIPPINES
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*notes from Tapales’ article*

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 Local Government - Notes
NATURE AND STATUS
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DEFINITIONS
Local Governments - as per Alvarez v. Guingona (1996)
• political subdivision of the State
• constituted by law
• possessed of substantial control over its own affairs
Autonomous
• given more powers, authority, responsibilities and resources
• once highly centralised power is decentralised, enabling
especially the peripheral LGUs to not only develop at their
own pace and discretion, but also w/ their own assets and
resources
Municipal Corporation - as per Basco v. PH Amusement &
Gaming
• mere creatures of Congress
• Congress has the power to create and abolish such
corporations thru general legislative powers
• its powers are as provided by its charter (no inherent right
to tax in this case)
LGU: interchangeable with Municipal Corporation
• both are mere creatures of the State
• cannot defeat national policies, as mere “intra sovereign
subdivisions of a sovereign nation”
• only difference: respective histories (based on Tapales)
*from BP 337 (1983) to RA 7160 (1991); a change in focus*
NATURE & STATUS OF MUNICIPAL CORPORATIONS
KINDS OF MUNICIPAL CORPORATIONS
Juridical Persons, whether Private or Public; State and
Political Subdivisions
Art. 44, CC. - The following are juridical persons:
(1) The State and its political subdivisions;
(2) Other corporations, institutions and entities for public
interest or purpose, created by law, their personality begins as
soon as they have been constituted according to law;
(3) Corporations, partnerships and associations for private
interest or purpose to which the law grants a juridical
personality, separate and distinct from that of each
shareholder, partner or member.
Art. 45, CC. - Juridical persons mentioned in Nos. 1 and 2 of the
preceding article are governed by the laws creating or recognising
them.
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Private corporations are regulated by laws of general application
on the subject.
Partnerships and associations for private interest or purpose are
governed by the provisions of this Code concerning partnerships.
Art. 46, CC. - Juridical persons may acquire and possess property
of all kinds, as well as incur obligations and bring civil or criminal
actions, in conformity with the laws and regulations of their
organisation.
Art. 47, CC. - Upon the dissolution of corporations, institutions
and other entities for public interest or purpose mentioned in No.
2 of Article 44, their property and other assets shall be disposed
of in pursuance of law or the charter creating them. If nothing has
been specified on this point, the property and other assets shall be
applied to similar purposes for the benefit of the region, province,
city or municipality which during the existence of the institution
derived the principal benefits from the same.
Municipal Corporation Proper
• body politic and corporate constituted by the incorporation
of inhabitants for the purpose of local gov’t
• not ‘limited’ as a mere subdivision of the State
• general term w/c refers to incorporated cities, towns, or
villages vested w/ power of local legislation
Local Government Power
• distinctive purpose + distinguishing feature of a municipal
corporation
Twin Functions:
• serve as instrumentality of the State re carrying out gov’t
functions
• act as agency of the community in the admin of local affairs
Quasi-Municipal Corporation
*another term for quasi-corporation*
• public agency, created for the sole purpose of performing 1
public function; or
• public entity created by law to deliver limited public services
• has for most purposes the status and powers of municipal
corporations, but not that of municipal corporations proper
• ex: water services; school districts
• public corporations created as agencies of the state for a
narrow and limited purpose
• not possessed of the powers and liabilities of self-governing
corporations
Municipal Corp.Proper Quasi-Municipal Corp.
public corporation SAME
has power of local gov’t agent of state for limited and
narrow purposes
 Local Government - Notes

national government and as a corporate entity representing the

Municipal Corp.Proper
has powers and liabilities of
self-government
Quasi-Municipal Corp.
inhabitants of its territory.
vested w/ few of
characteristics of corporate *as provided in Villas v. City of MNL (1911)*
existence, for the purpose of
civil administration As a Governmental Subdivision

called into existence either at sometimes involuntary

the direct solicitation of, by
the free consent of the persons
composing them
Public Corporation
• instrumentality of State re carrying out gov’t functions
corporations, created by the
• for this purpose it exercises by delegation a part of state
sovereign legislative power of
sovereignty
its own sovereign will w/o
solicitation, consent or
concurrent action of the As a Mere Legal Entity/Juristic Person
people who inherit them
• agent of its community re administration of local affairs,
wholly beyond the sphere of the public purposes for w/c its
governmental powers are conferred

Tolentino Lidasan v. COMELEC (1967)

• such only as are founded by gov’t for public purposes, where
the whole interests belong also to the gov’t
Black, et al.
• created by gov’t for political purposes
• has both subordinate and local powers of legislation
• a category thereof is actually the QMC
Regents of University v. Williams
• those organised for political purposes w/ political powers
exercised for purposes connected w/ the public good in the
admin of civil gov’t
• instrument of the gov’t, subject to the control of the
legislature and its members, officers of the gov’t, for the
admin or discharge of public duties as in the case of cities
and towns
Non-Municipal Public Corporation
• created by the State as its own agency/instrumentality to
carry-out a certain public purpose, other than the local gov’t
carried on in a designated portion of its territory by
municipal corporations
Municipal Corporation Public Corporation
formed/organised for the gov’t
of a portion of the State
all are public corporations not all are municipal
Section 21 of Art. VI of the (then) Constitution contains dual
limitations upon legislative power. First, that Congress is to
refrain from conglomeration, under one statute, of heterogenous
subjects; and, second, that the title of the bill is to be couched in a
language sufficient to notify the legislators and the public and
those concerned of the import of the single subject thereof.
Republic v. City of Davao (2002)
Section 15 of Republic Act 7160, otherwise known as the Local
Government Code, defines a local government unit as a body
politic and corporate endowed with powers to be exercised by it in
conformity with law. As such, it performs dual functions,
governmental and proprietary. Governmental functions are those
that concern the health, safety and the advancement of the public
good or welfare as affecting the public generally. Proprietary
functions are those that seek to obtain special corporate benefits
or earn pecuniary profit and intended for private advantage and
benefit. When exercising governmental powers and performing
governmental duties, an LGU is an agency of the national
government. When engaged in corporate activities, it acts as an
agent of the community in the administration of local affairs.
City of Bacolod v. Phuture Visions (2018)
The issuance of business licenses and permits by a municipality or
city is essentially regulatory in nature. The authority, which
devolved upon local government units to issue or grant such
licenses or permits, is essentially in the exercise of the police
power of the State within the contemplation of the general
welfare clause of the Local Government Code.
Purposes - 2-fold:

Governmental Private
DUAL NATURE
rep of the State, for the gov’t acts in a similar category as a
Dual Nature and Functions of Municipal Corporations of the territory and the business corporation,
inhabitants w/in the performing functions not
municipal limits strictly governmental or
Sec. 15, LGC. - Every local government unit created or
political
recognized under this Code is a body politic and corporate
endowed with powers to be exercised by it in conformity with law.
As such, it shall exercise powers as a political subdivision of the

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 Local Government - Notes

Governmental Private Division and Merger. - Sec. 8.

exercises by delegation a part stands for the community in Complies with Same Reqs as Creation, provided:
of the sovereignty of the State the admin of local affairs, w/c • division shall not reduce income, population or land area;
is wholly beyond the sphere of • income classification of original LGU shall not fall below its
the public purposes for w/c current income classification prior to such division
the governmental powers are
conferred *income classification of an LGU shall be updated w/in 6 mos.
from the Code’s effectivity*
General Powers and Attributes
Abolition of LGUs. - Sec. 9.
*as found in secs. 6-24; check Codal*
When
Authority to Create LGUs - Sec. 6. • its income, population, or land area’s been irreversibly
reduced to < minimum standards prescribed for its creation
*LGU may be created, divided, merged, abolished, or its
boundaries substantially altered* Certification
• by national agencies in section 7
How: • either to Congress or to the concerned Sanggu

Law Ordinance
*shall specify the province, city, municipality; barangay with
enacted by Congress by Sannguniang Panlalawigan w/c the LGU sought to be abolished will be incorporated/
or Panglungsod merged*

for province, city, municipality, for barangay located w/in its What do not cause Dissolution:
or any other political territorial jurisdiction • non-user or surrender of charter
subdivision
• failure to elect municipal officer
• change of sovereignty
*subject to limitations and requirements prescribed by LGC* • change of name

Creation and Conversion. - Sec. 7. Plebiscite Requirement. - Sec. 10.

GR: based on verifiable indicators of viability and projected Requirement

capacity to provide services:
Income
• sufficient to provide for all essential government facilities
and special functions commensurate w/ population
• based on acceptable standards
Population
• total number must be w/in territorial jurisdiction
Land Area
• must be contiguous, unless (a) comprised of 2 or more
islands, or (b) separated by LGU independent of the others
• must be properly identified by metes and bounds, w/
technical descriptions
• must be sufficient to provide for basic services and facilities
• no creation, division, merger, abolition, or substantial
alteration of boundaries of LGUs shall take effect w/o
approval from majority of the votes cast in a plebiscite
Conditions of Plebiscite
• called for that purpose;
• in the political unit(s) directly affected;
• conducted by COMELEC;
• w/in 120 days from its effectively;
• on date fixed by law/ordinance effecting such action
Selection and Transfer of LG Sites, Offices & Facilities. - Sec.
11.
Law/Ordinance creating/merging LGUs shall specific seat of gov’t,
from where governmental and corporate services shall be delivered

Compliance to Indicators - attested to by: Factors to select site:

• DOF; • geographical centrality;
• NSO; • accessibility;
• LMB; • availability of transportation and communication;
• DENR • drainage and sanitation;
• other relevant considerations

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 Local Government - Notes
When Conditions and Developments in LGU have significantly changed
subsequent to Establishment of Seat of Gov’t, the LGU Sanggu may
transfer the same to a Site better suited to its needs
How:
• public hearing;
• vote of 2/3 members
Conditions:
• no such transfer shall be made outside its territorial
boundaries
• old site and its improvements may be disposed of by sale or
lease or converted dos such other uses as he Sanggunian
may deem beneficial
LG Offices and Facilities shall not be transferred, relocated or converted
to other uses
Unless:
• public hearings are first conducted; and
• w/ concurrence of majority of sanggunian members
Government Centers. - Sec. 12.
• provinces, cities and municipalities shall endeavour to
establish a gov’t centre where offices, agencies or branches
of the national gov’t, LGUs, or government-owned or
controlled corporations may, as far as practicable, be located
• in designating such a center, the LGU concerned shall take
into account the existing facilities of national and local
agencies and offices w/c may serve as the gov’t centre as
contemplated under this section
• national gov’t, lGU or government-owned or controlled
corporation concerned shall bear the expenses for the
construction of its buildings and facilities in the gov’t centre
Naming of LGUs and Public Places, Streets and Structures. -
Sec. 13.
*super long provision, better to just familiarise summary w/
codal or C2017 reviewer*
• Sanggu Panlalawigan may change the name of a component
city, if done upon the recommendation of the Sanggu
concerned
• Sanggu Panlungsod changing the name of barangays can
only do so upon recommendation of the barangay concerned
• cannot be named after a living person, nor may change of
name be made unless for a justifiable reason; in any case,
not oftener than once every 10 years
• name of a LGU or public place, sweet or structure w/
historical, cultural or ethnic significance shall not be
changed, unless by unanimous vote of the sanggu concerned
and in consultation w/ PHC
• change of public school’s name shall be made only upon the
recommendation of the local school board concerned
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• for public hospitals, health centres and other health
facilities, change shall be made upon the recommendation of
the local health board concerned
• change of name of any LGU shall be effective only upon
ratification in a plebiscite conducted for the purpose in the
political unit directly affected
• in any change of name, the OP and rep of the legislative
district concerned, and Bureau of Posts, shall be notified
Beginning of Corporate Existence. - Sec. 14.
*for new local LGUs*
• upon election and qualification of its (a) chief executive and
(b) majority of the sanggu members;
• unless another time is fixed by the law/ordinance creating it
Political and Corporate Nature of LGUs. - Sec. 15. (supra)
General Welfare. - Sec. 16.
Powers that each LGU may exercise:
• those expressly granted;
• those necessarily implied therefrom;
• those necessary, appropriate, or incidental for its efficient
and effective governance; and
• those w/c are essential to the promotion of the gen. welfare
Responsibility w/in Territorial Jurisdiction - ensure +
support:
• preservation and enrichment of culture
• promote health and safety
• enhance the right of the people to a balanced ecology
• encourage and support the development of appropriate and
self-reliant scientific tech capabilities
• improve public morals
• enhance economic prosperity and social justice
• promote full employment among their residents
• maintain peace and order
• preserve comfort and convenience of their inhabitants
Basic Services and Facilities - Sec. 17.
*way too long to type so just familiarise yourself w/ codal*
Different sets for:
• barangay;
• municipality;
• province; and
• city
Thrusts of LGU
• discharge the functions and responsibilities of central
agencies and offices that are now devolved to them
• strive for reliance
 Local Government - Notes
• continue exercising the powers and discharging the duties
that are currently vested upon them
• exercise such other owners and discharge such other
functions and responsibilities as are necessary, appropriate,
or incidental to efficient and effective provision of the basic
services and facilities enumerated
*list is not exclusive*
Barangay
• power to admin the katarungang pambarangay
Municipality
• agriculture and aquaculture
• health services
• social services
• other services, including info dissemination on investment
needs and job placements
City
• of all the LGUs, the city has been granted the most powers
• LGC devolved to it ALL the services and facilities w/c the
barangay, municipality, province, had been empowered to
deliver
• exc: power to admin the katarungang barangay
• additional express powers: (a) adequate communication and
transportation services; and (b) support for education,
police and fire services and facilities
Province
Varied Services, such as:
• industrial development services;
• health care and tertiary healthcare;
• computerising tax information and collection services;
• intra-municipal telecomm services
Power to Generate and Apply Resources - Sec. 18.
LGUs have power and authority to:
• establish an org that shall be responsible for the efficient
and effective implementation of their development plans,
program objectives and priorities;
• to create their own sources of revenues and to levy taxes,
fees, and charges w/c shall accrue exclusively for their use
and disposition and w/c shall be retained by them;
• to have a just share in national taxes w/c shall be
automatically and directly released to them w/o need of any
further action;
• to have an equitable share in the proceeds from the
utilisation and development of the national wealth and
resources w/in respective territorial jurisdictions including
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sharing the same w/ the inhabitants by way of direct
benefits;
• to acquire, develop, lease, encumber, alienate or otherwise
dispose of real or personal property held by them in their
proprietary capacity and to apply their resources and assets
for productive, developmental, or welfare purposes, in the
exercise or furtherance of their governmental or proprietary
powers and functions and thereby ensure their development
into self-reliant communities and active participants in the
attainment of national goals
Eminent Domain. - Sec. 19.
• thru its chief executive and acting pursuant to an ordinance
• for public use, purpose or welfare for the benefit of the poor
and the landless
• upon payment of just compensation
• consistent w/ Constitution and pertinent laws
Other Conditions
• power may not be exercised, unless a valid and definite offer
has been previously made to the owner, and such offer was
not accepted;
• LGU may immediately take possession of the property upon
the filing of the expropriation proceedings and upon making
a deposit w/ the proper court of at least 15% of FMV of
property based on current tax declaration;
• amount to be paid for the expropriated property shall be
determined by the proper court, based on the FMV at the
time of the taking of the property
Reclassification of Lands - Sec. 20.
City/Municipality - may, thru ordinance passed by sanggu,
after conducting public hearings for the purpose, authorise
the reclassification of agricultural lands and provide for the
manner of their utilisation or disposition in the ff. cases:
• when land ceases to be economically feasible and sound for
agricultural purposes as determined by the Dept. of
Agriculture;
• where the land shall have substantially greater economic
value for residential, commercial, or industrial purposes, as
determined by the sanggu concerned;
• such reclassification shall be limited to the ff. percentage of
the total agricultural land area at the time of the passage of
the ordinance:
• 15% for Highly Urbanised and Independent Component
Cities;
• 10% for component cities and 1st to 3rd class
municipalities; and
• 5% for 4th to 6th class municipalities
• provided further that agricultural lands distributed to
agrarian reform beneficiaries pursuant to RA 6657 shall
not be affected by the said reclassification and the
conversion of such lands into other purposes shall be
governed by sec. 65 (of said Act)
 Local Government - Notes
President - may authorise a city/municipality to reclassify
lands in excess of the limits set in previous paragraph:
• when public interest so requires; and
• upon recommendation of the National Economic and
Development Authority
LGUs - shall, in conformity w/ existing laws, continue to
prepare their respective comprehensive land use plans enacted
thru zoning ordinances w/c shall be the:
• primary and dominant bases for the future use of land
resources;
• provided, that the req for food production, human
settlements, and industrial expansion shall be taken into
consideration in the prep of such plans
Where Approval by National Agency is required for
Reclassification, such shall:
• not be unreasonably withheld;
• failure to act on a proper and complete application for
reclassification w/in 3 months from receipt of the same shall
be deemed as approval thereof
*provision is not to convert land for any purpose contrary to
the CARL, but merely to reclassify land*
Closure and Opening of Roads - Sec. 21.
• pursuant to an ordinance
• may be permanent or temporary closure/opening
• upon any local road, alley, park or square falling w/in its
jurisdiction
• if permanent closure, such ordinance must be approved by
at least 2/3 of all members of sanggu, and when necessary,
an adequate substitute for the public facility that is subject
to closure is provided
• making provisions for maintenance of public safety is
needed for permanent closure
Temp. Closure of National/Local Road, Alley, Park, or Square
• actual emergency
• fiesta celebrations
• public rallies
• agricultural/industrial fairs
• undertaking of public works and highways, telecomm and
waterworks projects
*no such closure for athletic, cultural, or civic activities not
officially sponsored. recognised, or approved by the LGU
concerned*
*any city, municipality or brgy. may, by a duly enacted
ordinance, temporarily close and regulate the use of any local
street, road, thoroughfare, or any other public place where
shopping malls, Sunday, flea or night markets, or shopping
areas may be established and where goods, merchandise,
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foodstuffs, commodities, or articles of commerce may be sold
and dispensed to the general public*
Corporate Powers - Sec. 22.
• to have continuous succession in its corporate name;
• to sue and be sued;
• to have and use a corporate seal;
• to acquire and convey real/personal property;
• to enter into contracts; and
• to exercise such other powers as are granted to
corporations, subject to the limitations provided in this
Code and other laws
LGUs - may continue using, modify, or change their existing
corporate seals, provided:
• newly established LGUs or those w/o corporate seals may
create their own corporate seals w/c shall be registered w/
the DILG;
• any change of corporate seal shall also be registered as
provided hereon
How to Enter into Contracts
• by local chief executive in LGU’s behalf
• w/ prior authorisation from concerned sanggu; exceptions:
(a) provided otherwise in Code; (b) legible copy of such
contract shall be posted at a conspicuous place in the
provincial capital or the city, municipal or barangay hall
Enjoyment of Full Autonomy in Exercise of:
• proprietary functions;
• management of economic enterprises
*subject to the limitations provided in this Code and other
applicable laws*
Other Notes:
• no hard and fast rule for purposes of determining the true
nature of an undertaking or function of an LGU, w/ the
surrounding circumstances to be considered
• basic element, however beneficial to the public undertaking
may be, is that it is governmental in essence; otherwise, it is
proprietary
Authority to Negotiate and Secure Grants - Sec. 23.
Local Chief Execs may negotiate and secure such grants/
donations in kind:
• for the support of the basic services or facilities in sec. 17;
• from local and foreign assistance agencies w/o necessity of
securing clearance or approval therefor from any
department, agency, or office of the National Gov’t, or from
any higher LGU (upon authority of the Sanggu);
• provided, that projects financed by such grants/assistance
w/ national security implications shall be approved by the
national agency concerned
 Local Government - Notes

*when such national agency fails to act on the request for

approval w/in 30 days from receipt thereof, same shall be
deemed approved*

When Approved
• local chief exec shall, w/in 30 days upon signing of such
grant agreement or deed of donation, report the nature,
amount, and terms of such assistance to both Houses of
Congress and the President

Liability for Damages - Sec. 24.

• LGUs and their officials are not exempt from liability for the
death or injury to persons or damage to property

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 Local Government - Notes
GENERAL PRINCIPLES AND POLICIES
———————————————————————
Art. X, sec. 1. - The territorial and political subdivisions of the
Republic of the Philippines are the provinces, cities,
municipalities, and barangays. There shall be autonomous regions
in Muslim Mindanao and the Cordilleras as hereinafter provided.
LGUs
• divisions of the RP
• intra-sovereign subdivision of a sovereign nation
• not intended to be an imperium in imperio
• autonomous in a sense, as it is given more powers,
authority, responsibilities and resources
Autonomous Regions
• one for Muslim Mindanao (won in plebiscite)
• one for Cordilleras (but the ‘A’ is Administrative)
Art. X, sec. 3. - The Congress shall enact a local government code
which shall provide for a more responsive and accountable local
government structure instituted through a system of
decentralisation with effective mechanisms of recall, initiative,
and referendum, allocate among the different local government
units their powers, responsibilities, and resources, and provide for
the qualifications, election, appointment and removal, term,
salaries, powers and functions and duties of local officials and all
other matters relating to the organisation and operation of local
units.
Art. X, sec. 11. - The Congress may, by law, create special
metropolitan political subdivisions, subject to a plebiscite as set
forth in section 10 hereof. The component cities and
municipalities shall retain their basic autonomy and shall be
entitled to their own local executive and legislative assemblies.
The jurisdiction of the metropolitan authority that will thereby be
created shall be limited to basic services requiring coordination.
• NOT just another territorial political subdivision
• jurisdiction is limited to basic services requiring
coordination
Art. X, sec. 12. - Cities that are highly urbanised, as determined
by law, and component cities whose charters prohibit their voters
from voting for provincial elective officials, shall be independent
of the province. The voters of component cities within a province,
whose charters contain no such prohibition, shall not be deprived
of their right to vote for elective provincial officials.
Classification of Cities
• based on their regular income
• indicative of its capability to develop as relatively
independent social, economic and political unit
Page 9
List:
• Highly Urbanised;
• Independent Component; and
• Component
Sec. 1, LGC. - This Act shall be known and cited as the “Local
Government Code of 1991.”
Sec. 2, LGC. -
(a) It is hereby declared the policy of the State that the territorial
and political subdivisions of the State shall enjoy genuine and
meaningful local autonomy to enable them to attain their
fullest development as self-reliant communities and make
them more effective partners in the attainment of national
goals. Toward this end, the State shall provide for a more
responsive and accountable local government structure
instituted through a system of decentralization whereby local
government units shall be given more powers, authority,
responsibilities, and resources. The process of decentralization
shall proceed from the National Government to the local
government units.
(b) It is also the policy of the State to ensure the accountability of
local government units through the institution of effective
mechanisms of recall, initiative and referendum.
(c) It is likewise the policy of the State to require all national
agencies and offices to conduct periodic consultations with
appropriate local government units, nongovernmental and
people’s organizations, and other concerned sectors of the
community before any project or program is implemented in
their respective jurisdictions.
Sec. 3, LGC. - The formulation and implementation of policies
and measures on local autonomy shall be guided by the following
operative principles:
(a) there shall be an effective allocation among the different local
government units of their respective powers, functions,
responsibilities, and resources;
(b) there shall be established in every local government unit an
accountable, efficient, and dynamic organizational structure
and operating mechanism that will meet the priority needs
and service requirements of its communities;
(c) subject to civil service law, rules and regulations, local officials
and employees paid wholly or mainly from local funds shall be
appointed or removed, according to merit and fitness, by the
appropriate appointing authority;
(d) the vesting of duty, responsibility, and accountability in local
government units shall be accompanied with provision for
reasonably adequate resources to discharge their powers and
effectively carry out their functions; hence, they shall have the
power to create and broaden their own sources of revenue and
the right to a just share in national taxes and an equitable
share in the proceeds of the utilization and development of the
national wealth within their respective areas;
(e) provinces with respect to component cities and municipalities,
and cities and municipalities with respect to component
barangays, shall ensure that the acts of their component units
are within the scope of their prescribed powers and functions;
(f) local government units may group themselves, consolidate or
coordinate their efforts, services, and resources for purposes
commonly beneficial to them;
 Local Government - Notes
(g) the capabilities of local government units, especially the
municipalities and barangays, shall be enhanced by providing
them with opportunities to participate actively in the
implementation of national programs and projects;
(h) there shall be a continuing mechanism to enhance local
autonomy not only by legislative enabling acts but also by
administrative and organizational reforms;
(i) local government units shall share with the national
government the responsibility in the management and
maintenance of ecological balance within their territorial
jurisdiction, subject to the provisions of this Code and
national policies;
(j) effective mechanisms for ensuring the accountability of local
government units to their respective constituents shall be
strengthened in order to upgrade continually the quality of
local leadership;
(k) the realization of local autonomy shall be facilitated through
improved coordination of national government policies and
programs and extension of adequate technical and material
assistance to less developed and deserving local government
units;
(l) the participation of the private sector in local governance,
particularly in the delivery of basic services, shall be
encouraged to ensure the viability of local autonomy as an
alternative strategy for sustainable development; and
(m)the national government shall ensure that decentralization
contributes to the continuing improvement of the
performance of local government units and the quality of
community life.
Sec. 4, LGC. - This Code shall apply to all provinces, cities,
municipalities, barangays, and other political subdivisions as may
be created by law, and, to the extent herein provided, to officials,
offices, or agencies of the National Government.
Sec. 5, LGC. - In the interpretation of the provisions of this
Code, the following rules shall apply:
(a) any provision on a power of a local government unit shall be
liberally interpreted in its favor, and in case of doubt, any
question thereon shall be resolved in favor of devolution of
powers and of the lower local government unit. Any fair and
reasonable doubt as to the existence of the power shall be
interpreted in favor of the local government unit concerned;
(b) in case of doubt, any tax ordinance or revenue measure shall
be construed strictly against the local government unit
enacting it, and liberally in favor of the taxpayer. Any tax
exemption, incentive or relief granted by any local government
unit pursuant to the provisions of this Code shall be construed
strictly against the person claiming it;
(c) the general welfare provisions in this Code shall be liberally
interpreted to give more powers to local government units in
accelerating economic development and upgrading the quality
of life for the people in the community;
(d) rights and obligations existing on the date of effectivity of this
Code and arising out of contracts or any other source of
prestation involving a local government unit shall be governed
by the original terms and conditions of said contracts or the
law in force at the time such rights were vested; and
(e) in the resolution of controversies arising under this Code
where no legal provision or jurisprudence applies, resort may
Page 10
be had to the customs and traditions in the place where the
controversies take place.
LOCAL AUTONOMY
Art. II, sec. 25. - The State shall ensure the autonomy of local
governments.
Art. X, sec. 2. - The territorial and political subdivisions shall
enjoy local autonomy.
Art. X, sec. 4. - The president of the Philippines shall exercise
general supervision over local governments. Provinces with
respect to component cities and municipalities, and cities and
municipalities with respect to component barangays, shall ensure
that the acts of their component units are within the scope of
their prescribed powers and functions.
Power of Supervision =/= Control
• means he exercises gen. supervision but only to ensure that
local affairs are administered according to law
Supervision Control
overseeing or the authority of power to amend, correct, or
an officer to see that substitute subordinate
subordinate officers perform officer’s judgment(s)
their duties
Art. X, sec. 11. - supra.
Art. X, sec. 12. - supra.
San Juan v. CSC (1991)
Where a law is capable of 2 interpretations, one in favour of
centralised power and the other beneficial to local autonomy, the
scales must be weighed in favour of the latter.
Pimentel v. Aguirre (2000)
Local autonomy signified a more responsive and accountable local
government structure instituted thru a system of decentralisation;
decentralisation just means the devolution of national
administration (not power) to local governments. Local officials
remain accountable to the central government as the law may
provide. As per the PH concept of local autonomy, the national
government has not completely relinquished all its powers over
local governments, including autonomous regions; only admin
powers over local affairs are delegated to political subdivisions.
The purpose of the delegation is to make governance more
directly responsive and effective at the local levels.
Ganzon v. CA (1990)
The change in constitutional language - with respect to the
supervision clause - was meant to only deny legislative control
over local governments, and did not exempt the latter from
legislative regulations, provided that regulation is consistent with
the fundamental premise of autonomy. Since local governments
remain accountable to the national authority, the latter may, by
law, and in the manner set forth therein, impose disciplinary
action against local officials.
 Local Government - Notes

CAB v. COA (1990)
EO 220 does not create the autonomous region as contemplated
in the Constitution, but merely provides for transitory measures.
It only created a region, covering a specified area, for admin
purposes w/ the objective of coordinating the planning and
implementation of programs and services. The constitutional
guarantee of local autonomy refers to the admin autonomy of
LGUs or the decentralisation of government authority. The
creation of autonomous regions contemplates the grant of
political autonomy, and not just admin autonomy to these
regions. The CAR is a mere transitory coordinating agency that
would prepare the sage for political autonomy for the Cordilleras.
SEMA v. COMELEC (2008)
Only an act of Congress can create a province, as per the Code.
The delegation of Congress to the ARMM to create provinces and
cities is unconstitutional for being a non-delegable power.
• also relieves central gov’t of the burden of managing local
affairs and enables it to concentrate on national concerns
• President exercises “gen. supervision” over them but only to
“ensure that local affairs are administered according to law,”
as he has no control over their acts in the sense that he can
sub their judgments w/ his own
Of Power
• abdication of political power in favour of LGUs declared to
be autonomous
• the autonomous gov’t in that case is free to chart its own
“destiny” and “shape its future” w/ minimum intervention
from central authorities
• amounts to “self-immolation,” since in that event, the
autonomous gov’t becomes accountable not to the central
authorities but to its constituency

DECENTRALIZATION
Autonomy

Art. X, sec. 3. - The Congress shall enact a local government code

which shall provide for a more responsive and accountable local In 2 Senses:
government with effective mechanisms of recall, initiative, and • an autonomous gov’t that enjoys autonomy of the latter
referendum, allocate among, the different local government units category is subject alone to the decree of the organic act
their powers, responsibilities, and resources, and provide for the creating it, and accepted principles on the effects ad limits of
qualifications, election, appointment and removal, term, salaries, autonomy
powers and functions and duties of local officials and all other • one that enjoys autonomy of the former category is under
matters relating to the organisation and operation of local units. the supervision of the national government acting thru the
President
Art. X, sec. 14. - The President shall provide for regional
development councils or other similar bodies composed of local
government officials, regional heads of departments and other
government offices, and representatives from non-governmental
organisations within the region for purposes of administrative
decentralisation to strengthen the autonomy of the units therein
and to accelerate the economic and social growth and
development of the units in the region.

LGUs’ relationship w/ Regional Development Councils

• in matters w/c concern their own development

Limbona v. Mangellin (1989)

PD 1619, creating the autonomous gov’t of Mindanao,
persuades us that they were never meant to exercise
autonomy in the second sense. That “the President shall have
the power of general supervision and control over
Autonomous Regions” is provided is indicative of this. The
Sanggu Pampook is made to discharge chiefly admin services.

Decentralisation

Of Administration
• central gov ’t delegates admin powers to political
subdivisions to broaden the base of gov’t power
• in the process it makes local governments “more responsive
and accountable,” and “ensure their fullest development as
self-reliant communities and make them more effective
partners in the pursuit of national development and social
progress”

Page 11
 Local Government - Notes
CREATION OF MUNICIPAL CORPORATIONS
———————————————————————
NATURE AND POWERS TO CREATE MUNICIPAL
CORPORATIONS
Pelaez v. Auditor General (1965)
Under the Barrio Charter Act, barrios may not be created or their
boundaries altered, or names changed, except by an act of
Congress, or he corresponding provincial board upon petition of a
majority of voters and recommendation by municipal council. If
barrios may not be created by President, then there is more reason
to deny him of the bigger power to create municipalities, which
are groups of several barrios. Whereas the power to fix a
boundary, in order to avoid or settle conflicts of jurisdiction
between adjoining municipalities, may partake of an admin nature
- involving, as it does, the adoption of means and ways to carry
into effect the law creating said municipalities - the authority to
create municipal corporations is essentially legislative in nature.
The Constitution merely confers upon the President the power of
supervision over LGUs, as distinguished form the presidential
grant of power of control over executive departments, bureaus
and offices. If sec. 68 were valid, he could in effect remove any of
its officials by creating a new municipality and including therein
the barrio where the official resides, for his office would become
vacant.
Municipality of Kapalong v. Moya (1988)
As held, the President has no power to create municipalities.
Thus, the Municipality of Sto. Tomas, as a creation of the
President, had no legal personality to file a suit, and the motion to
dismiss is granted.
CREATION OF MUNICIPAL CORPORATIONS
Constitutional Provisions
Art. X, sec. 1. - The territorial and political subdivisions of the
Republic of the Philippines are the provinces, cities,
municipalities, and barangays. There shall be autonomous regions
in Muslim Mindanao and the Cordilleras as hereinafter provided.
Art. X, sec. 10. - No province, city, municipality, or barangay may
be created, divided, merged, abolished, or its boundary
substantially altered, except in accordance with the criteria
established in the Local Government Code and subject to approval
by a majority of the votes cast in a plebiscite in the political units
directly affected.
Art. X, sec. 11. - The Congress may, by law, create special
metropolitan political subdivisions, subject to a plebiscite as set
forth in Section 10 thereof. The component cities and
municipalities shall retain their basic autonomy and shall be
entitled to their own local executive and legislative assemblies.
The jurisdiction of the metropolitan authority that will thereby be
created shall be limited to basic services requiring coordination.
Page 12
Art. X, sec. 15. - There shall be created autonomous regions in
Muslim Mindanao and in the Cordilleras consisting of provinces,
cities, municipalities, and geographical areas sharing common and
distinctive historical and cultural heritage, economic and social
structures, and other relevant characteristics within the
framework of this Constitution and the national sovereignty as
well as the territorial integrity of the Republic of the Philippines.
Art. X, sec. 18. - The Congress shall enact an organic act for each
autonomous region with the assistance and participation of the
regional consultative commission composed of representatives
appointed by the President from a list of nominees form multi-
sectoral bodies. The organic act shall define the basic structure of
government for the region consisting of the executive department
and legislative assembly, both of which shall be elective and
representative of the constituent political units. The organic act
shall likewise provide for special courts with personal, family, and
property law jurisdiction consistent with the provisions of
Constitution and national laws.
The creation of the autonomous region shall be effective when
approved by majority of the votes cast by the constituent units in
a plebiscite called for the purpose, provided that only provinces,
cities, and geographic areas voting favourably in such plebiscite
shall be included in the autonomous region.
Art. X, sec. 19. - The first Congress elected under this
Constitution shall, within eighteen months from the time of
organisation of both Houses, pass the organic acts for the
autonomous regions in Muslim Mindanao and the Cordilleras.
Alvarez v. Guingona (supra)
It is true that for a municipality to be converted into a component
city, it must, among others, have an average annual income of at
least Twenty Million Pesos for the last two consecutive years
based on 1991 constant prices. Such income must be duly
certified by the Department of Finance.
Although a bill of local application like HB No. 8817 should, by
constitutional prescription,16 originate exclusively in the House
of Representatives, the claim of petitioners that Republic Act No.
7720 did not originate exclusively in the House of Representatives
because a bill of the same import, SB No. 1243, was passed in the
Senate, is untenable because it cannot be denied that HB No.
8817 was filed in the House of Representatives first before SB No.
1243 was filed in the Senate. Petitioners themselves cannot
disavow their own admission that HB No. 8817 was filed on April
18, 1993 while SB No. 1243 was filed on May 19, 1993. The filing
of HB No. 8817 was thus precursive not only of the said Act in
question but also of SB No. 1243. Thus, HB No. 8817, was the bill
that initiated the legislative process that culminated in the
enactment of Republic Act No. 7720. No violation of Section 24,
Article VI, of the 1987 Constitution is perceptible under the
circumstances attending the instant controversy.
Navarro v. Ermita (April 2010)
The Constitution clearly mandates that the creation of local
government units must follow the criteria established in the Local
Government Code. Any derogation of or deviation from the
criteria prescribed in the Local Government Code violates Sec. 10,
Art. X.
 Local Government - Notes

Navarro v. Ermita (May 2010) Further Notes:

As the law-making branch of the government, indeed, it was the • for the creation of brgys by the Sanggu Panlalawigan, the
Legislature that imposed the criteria for the creation of a province recommendation of the Sanggu Bayan concerned shall be
as contained in Section 461 of the Local Government Code. No necessary creation of new LGUs shall not reduce the
law has yet been passed amending Section 461 of the Local
population of the orig LGUs to < minimum req
Government Code, so only the criteria stated therein are the bases
prescribed in the LGC
for the creation of a province. The Constitution clearly mandates
that the criteria in the Local Government Code must be followed • territorial jurisdiction of a newly-created LGU shall be
in the creation of a province; hence, any derogation of or deviation properly identified by metes and bounds
from the criteria prescribed in the Local Government Code • average annual income shall include the income accruing
violates Section 10, Article X of the Constitution. to gen. fund of the LGU concerned, exclusive of special
funds, transfers and non-recurring income
Navarro v. Ermita (2011)
It must be borne in mind that the central policy considerations in Statutory Provisions
the creation of local government units are economic viability,
efficient administration, and capability to deliver basic services to Sec. 6, LGC. - A local government unit may be created, divided,
their constituents. The criteria prescribed by the LGC, i.e., merged, abolished, or its boundaries substantially altered either
income, population and land area, are all designed to accomplish by law enacted by Congress in the case of a province, city,
these results. In this light, Congress, in its collective wisdom, has municipality, or any other political subdivision, or by ordinance
debated on the relative weight of each of these three criteria, passed by the sangguniang panlalawigan or sangguniang
placing emphasis on which of them should enjoy preferential panlungsod concerned in the case of a barangay located within its
consideration. Without doubt, the primordial criterion in the territorial jurisdiction, subject to such limitations and
creation of local government units, particularly of a province, is requirements prescribed in the Code.
economic viability. This is the clear intent of the framers of the
LGC. Sec. 7, LGC. - As a general rule, the creation of a local
Consistent with the declared policy to provide local government government unit or its conversion from one level to another level
units genuine and meaningful local autonomy, contiguity and shall be based on verifiable indicators of viability and projected
minimum land area requirements for prospective local capacity to provide services, to wit:
government units should be liberally construed in order to achieve (a) Income. - It must be sufficient, based on acceptable standards,
the desired results. The strict interpretation adopted by the to provide for all essential government facilities and services
February 10, 2010 Decision could prove to be counter-productive, and special functions commensurate with the size of its
if not outright absurd, awkward, and impractical. population, as expected of the local government unit
concerned;
SEMA v. COMELEC (supra) (b) Population. - It shall be determined as the total number of
As mentioned, only an act of Congress can create a province, as inhabitants within the territorial jurisdiction of the local
per the LGC; the delegation of Congress to the ARMM to create government unit concerned; and
provinces and cities is unconstitutional for being a non-delegable (c) Land Area. - It must be contiguous, unless it comprises two or
power. more islands or is separated by a local government unit
independent of the others; properly identified by metes and
*Requisites for the Creation of LGUs* bounds with technical descriptions; and sufficient to provide
for such basic services and facilities to meet the requirement
Barangay Municipality City Province
of its populace.
Population Compliance with the foregoing indicators shall be attested to by
not < 2k not < 25k not < 150k not < 250k
inhabitants inhabitants inhabitants inhabitants the Department of Finance (DOF), the National Statistics Office
(5k for (NSO), and the Lands Management Bureau (LMB) of the
cities and Department of Environmental and Natural Resources (DENR).
muns. w/in
MM & Sec. 385, LGC. - A barangay may be created, divided, merged,
other abolished, or its boundary substantially altered, by law or by an
metropoli ordinance of the sangguniang panlalawigan or panlungsod, subject
subdivs or
to approval by a majority of the votes cast in a plebiscite to be
HUCs
conducted by the COMELEC in the local government unit or units
Land at least 50 at least 100 at least 2k directly affected within such period of time as may be determined
Area sq. km sq. km sq. km by the the law or ordinance creating said barangay. In the case of
the creation of barangays by the sangguniang panlalawigan, the
Annual at least at least at least recommendation of the sangguniang bayan concerned shall be
Income P2.5M P100M P20M necessary.

Page 13
 Local Government - Notes
Sec. 441, LGC. - A municipality may be created, divided, merged,
abolished, or its boundary substantially altered only by an Act of
Congress and subject to the approval by a majority of the votes
cast in a plebiscite to be conducted by the COMELEC in the local
government unit or units directly affected. Except as may
otherwise be provided in the said Act, the plebiscite shall be held
within one hundred twenty (120) days from the date of its
effectivity.
Sec. 442, LGC. -
(a) A municipality may be created if it has an average annual
income, as certified by the provincial treasurer, of at least Two
million five hundred thousand pesos (P=2,500,000.00) for
the last two (2) consecutive years based on the 1991 constant
prices; a population of at least twenty-five thousand (25,000)
inhabitants as certified by the National Statistics Office; and a
contiguous territory of at least fifty (50) square kilometers as
certified by the Lands Management Bureau: Provided, That
the creation thereof shall not reduce the land area, population
or income of the original municipality or municipalities at the
time of said creation to less than the minimum requirements
prescribed herein.
(b) The territorial jurisdiction of a newly-created municipality
shall be properly identified by metes and bounds. The
requirement on land area shall not apply where the
municipality proposed to be created is composed of one (1) or
more islands. The territory need not be contiguous if it
comprises two (2) or more islands.
(c) The average annual income shall include the income accruing
to the general fund of the municipality concerned, exclusive of
special funds, transfers and non-recurring income.
(d) Municipalities existing as of the date of the effectivity of this
Code shall continue to exist and operate as such. Existing
municipal districts organized pursuant to presidential
issuances or executive orders and which have their respective
set of elective municipal officials holding office at the time of
the effectivity of this Code shall henceforth be considered as
regular municipalities.
Sec. 449, LGC. - A city may be created, divided, merged,
abolished, or its boundary substantially altered, only by an Act of
Congress, and subject to approval by a majority of the votes cast
in a plebiscite to be conducted by the COMELEC in the local
government unit or units directly affected. Except as may be
provided in such Act, the plebiscite shall be held within one
hundred twenty (120) days from the date of its effectivity.
Sec. 450, LGC. -
(a) A municipality or a cluster of barangays may be converted into
a component city if it has a locally generated average annual
income, as certified by the Department of Finance, of at least
One hundred million pesos (P100M) for the last two (2)
consecutive years based on 2000 constant prices, and if it has
either of the following requisites: (i) a contiguous territory of
at least 100 square kilometers, as certified by the Land
Management Bureau; or (ii) a population of not less than
150,000 inhabitants, as certified by the National Statistics
Office. The creation thereof shall not reduce the land area,
population and income of the original unit or units at the time
of said creation to less than the minimum requirements
prescribed therein.
Page 14
(b) The territorial jurisdiction of a newly created city shall be
properly identified by metes and bounds. The requirement on
land area shall not apply where the city proposed to be created
is composed of 1 or more islands. The territory need not be
contiguous if it comprises 2 or more islands.
(c) The average annual income shall include the income accruing
to the general fund, exclusive of special funds, transfers, and
non-recurring income.
Sec. 460, LGC. - A province may be created, divided, merged,
abolished, or its boundary substantially altered, only by an Act of
Congress and subject to approval by a majority of the votes cast in
a plebiscite to be conducted by the COMELEC in the local
government unit or units directly affected. The plebiscite shall be
held within 120 days from the date of effectivity of said Act,
unless otherwise provided therein.
Sec. 461, LGC. -
(a) A province may be created if it has an average annual income,
as certified by the Department of Finance, of not less than
P20M, based on 1991 constant prices and either of the
following requisites: (i) a contiguous territory of at least 2000
square kilometers, as certified by the Land Management
Bureau; or (ii) a population of not less than 250,000
inhabitants by the National Statistics Office. Provided, That the
creation thereof shall not reduce the land area, population,
and income of the original unit or units at the time of said
creation to less than the minimum requirements prescribed
therein.
(b) The territory need not be contiguous if it comprises 2 or more
islands or is separated by a chartered city or cities which do
not contribute to the income of the province.
(c) The average annual income shall include the income accruing
to the general fund, exclusive of special funds, trust funds,
transfers, and non-recurring income.
Summary:
LGU may be created, divided, merged, abolished, or its
boundaries substantially altered:
• province, city, municipality, or any other political
subdivision: by law enacted by Congress
• barangay: by law enacted by Congress or by ordinance
passed by Sanggu Panlalawigan/Panlungsod, located w/in
territorial jurisdiction
• IN ALL CASES, subject to approval by a majority of votes
cast in a plebiscite to be conducted by COMELEC in LGUs
directly affected
Verifiable Indicators of Viability and Projected Capacity to
provide services:
• income - sufficient to provide for all essential gov’t facilities
and services and special f(x)ns commensurate w/ size of its
population, as expected of the LGU concerned;
• population - total number of inhabitants w/in territorial
jurisdiction of LGU concerned; and
• land area - contiguous (unless comprises 2 or more lands or
is separated by an independent LGU), properly identified by
metes and bounds w/ technical descriptions, and sufficient
 Local Government - Notes
to provide for basic services and facilities to meet the reqs of
its populace
Breakdown of “League of Cities v. COMELEC*
2008 - Cityhood bills are unconstitutional
• applying the P100M income req in RA 9009 is a prospective
application, as the law took effect in 2001 while the bills
became law more than 5 years later
• the Constitution requires that Congress shall prescribe all
the criteria for the creation of a city in the LGC, and not in
any other law, including the Cityhood Laws
• Cityhood Laws violate Art. X, sec. 6, as they prevent a fair
and just distribution of the national taxes to the LGUs
• criteria prescribed in sec. 450 of the LGC, as amended by
RA 9009, for converting a municipality into a city, are clear,
plain and unambiguous, needing no resort to any statutory
construction
• intent of 11th Congress’ members to exert certain
municipalities from the coverage of RA 9009 remained an
intent, and was never written into sec. 450 of the LGC
• deliberations of the 11th or 12th Congress on unapproved
bills or resolutions are not extrinsic aids in interpreting a
law passed in the 13th
• even if the exemption in the Cityhood Laws were written in
sec. 450, the exemption would still be unconstitutional for
violation of the equal protection clause
2009 - laws are not unconstitutional
• from the Drilon-Pimentel exchange during the deliberations,
Congress did not intend to give RA 9009 retroactive effect
• operative fact finds application
• existence of the cities consequent to the approval of the
creating (but challenged) Cityhood Laws in the plebiscites
held in the affected LGUs is now an operative fact
• new cities appear to have been organised and are
functioning accordingly, w/ new sets of officials and
employees
2010 - unconstitutional
• Constitution mandates that LGUs shall be created by
Congress in accordance w/ the criteria provided in the LGC
• exemptions granted to the 16 municipalities are contained
in separate laws and not in the LGC
• RA 9009 meanwhile, w/c increased the income threshold to
P100M, amended the LGC, making it a part of the latter
• hence, upon RA 9009’s taking effect, all municipalities had
to follow this req to be able to convert into a component city
Feb 2011 - not unconstitutional
• Congress intended to exempt cities from the LGC, as Bills
are legislative acts, and may be basis to maned the LGC
(another legislative act)
• Congress saw wisdom of exempting the 16 municipalities
from complying w/ higher income req from RA 9009
Page 15
• Bills do not violate the equal protection clause since there
was a valid classification as to the municipalities w/ pending
Cityhood Bills against those without
• As the P100M amount was arbitrarily made, there is no
reason to prevent these cities pending bills from being
enacted into law, being as the purpose of preventing the
“mad rush” was not yet enacted into law when the Bills
were introduced in Congress
April 2011 - not unconstitutional
• newly created cities were intend by Congress to be
exempted from req of P100M income as per RA 9009, w/c
amended the LGC
Cawaling v. COMELEC (2001)
Petitioner’s constricted reading of Section 450(a) of the Code is
erroneous. The phrase “A municipality or a cluster of barangays
may be converted into a component city” is not a criterion but
simply one of the modes by which a city may be created. Section
10, Article X of the Constitution, quoted earlier and which
petitioner cited in support of his posture, allows the merger of
local government units to create a province, city, municipality or
barangay in accordance with the criteria established by the Code.
Quite plainly, the last sentence of Section 10 mandates that the
plebiscite shall be conducted within 120 days from the date of the
effectivity of the law, not from its approval. While the same
provision allows a law or ordinance to fix “another date” for
conducting a plebiscite, still such date must be reckoned from the
date of the effectivity of the law.
Samson v. Aguirre (1999)
The representative from the Bureau of Local Government Finance
estimated the combined average annual income of the 13
barangays for the years 1995 and 1996 to be around
P26,952,128.26. Under the Local Government Code, a proposed
city must have an average annual income of only at least
P20,000,000.00 for the immediately preceding two years. The
representative from the NSO estimated the population in the
barangays that would comprise the proposed City of Novaliches to
be around 347,310. This figure is more than the 150,000 required
by the Implementing Rules. There is no need to consider the land
area, given these figures, since under the Local Government Code,
the proposed city must comply with requirements as regards
income and population or land area. Other than the income
requirement, the proposed city must have the requisite number of
inhabitants or land area. Compliance with either requirement, in
addition to income, is sufficient. Judicial notice may also be taken
that Novaliches is now highly urbanized.
A reading of R.A. No. 8535 will readily show that it does not
provide for a seat of government. However, this omission, to our
mind, is not as fatal to the validity of R.A. No. 8535 as petitioner
makes it to be. We agree with respondents that under Section 12
of the Local Government Code, which applies to the proposed
City of Novaliches by virtue of Section 54 of R.A. No. 8535, the
City of Novaliches can still establish a seat of government after its
creation. While Section 12 speaks of the site of government
centers, such site can very well also be the seat of government,
“from where governmental and corporate service shall be
delivered.”
 Local Government - Notes
Under the Revised Admin. Code
Sec. 68, RAC. - The (Governor-General) President of the
Philippines may by executive order define the boundary, or
boundaries, of any province, subprovince, municipality,
[township] municipal district, or other political subdivision, and
increase or diminish the territory comprised therein, may divide
any province into one or more subprovinces, separate any political
subdivision other than a province, into such portions as may be
required, merge any of such subdivisions or portions with
another, name any new subdivision so created, and may change
the seat of government within any subdivision to such place
therein as the public welfare may require: Provided, That the
authorisation of the (Philippine Legislature) National Assembly of
the Philippines shall first be obtained whenever the boundary of
any province or subprovince is to be defined or any province is to
be divided into one or more subprovinces. When any action by the
(Governor-General) President of the Philippines in accordance
herewith makes necessary a change of the territory under the
jurisdiction of any administrative officer or any judicial officer, the
(Governor-General) President of the Philippines, with the
recommendation and advice of the head of the Department having
executive control of such officer, shall redistrict the territory of the
several officers affected and assign such officers to the new
districts so formed.
Upon the changing of the limits of political divisions in pursuance
of the foregoing authority, an equitable distribution of the funds
and obligations of the divisions thereby affected shall be made in
such manner as may be recommended by the (Insular Auditor)
Auditor General and approved by the (Governor-General)
President of the Philippines.
Pelaez v. Auditor General (supra)
The creation of municipalities, is not an administrative function,
but one which is essentially and eminently legislative in character.
The question of whether or not "public interest" demands the
exercise of such power is not one of fact.
Municipality of Condijay Bohol v. CA (1995)
Respondent municipality's situation in the instant case is
strikingly similar to that of the municipality of San Andres.
Respondent municipality of Alicia was created by virtue of
Executive Order No. 265 in 1949, or ten years ahead of the
municipality of San Andres, and therefore had been in existence
for all of sixteen years when Pelaez vs. Auditor General was
promulgated. And various governmental acts throughout the
years all indicate the State's recognition and acknowledgment of
the existence thereof. For instance, under Administrative Order
No. 33 above-mentioned, the Municipality of Alicia was covered
by the 7th Municipal Circuit Court of Alicia-Mabini for the
province of Bohol.
Inasmuch as respondent municipality of Alicia is similarly
situated as the municipality of San Andres, it should likewise
benefit from the effects of Section 442 (d) of the Local
Government Code, and should henceforth be considered as a
regular, de jure municipality.
Page 16
Municipal Corporation by Prescription
• an MC may exist by prescription
• existence will be presumed where it is shown that the
community’s claimed and exercised corporate functions w/o
interruption or objection for a period long enough to afford
title by prescription
De Facto Municipal Corporations
• corporation may exist in fact, although not in point of law,
as certain defects in some essential features of its
organisation
• as such it may still be regarded as an existing corporation de
facto
Requisites for Consideration
• valid law authorising incorporation;
• an attempt, in GF, to organise under it;
• colourable compliance w/ the law; and
• assumption of corporate powers
*considering sec. 44(d) of the LGC, no de facto municipal
corporations or municipal corporations by prescription
continue to exist*
Sec. 44(d), LGC. - The successors as defined herein shall serve
only the unexpired terms of their predecessors.
Attack Against the Validity of Incorporations
• when a corporation is de jure, it is impregnable to any attack
• validity of incorporation and corporate existence of a
municipal corporation may not be attacked collaterally
• may be challenged only by the State in a direct proceeding
such as quo warranto
• however, where the corporation is an absolute nullity, it is
subject to collateral attack
Beginning of Corporate Existence of Municipal
Corporations
Sec. 14, LGC. - When a new local government unit is created, its
corporate existence shall commence upon the election and
qualification of its chief executive and a majority of the members
of its sanggunian, unless some other time is fixed therefore by the
law or ordinance creating it.
• legal existence is to be determined by its creating law
• where law is silent, existence shall commence upon the
election of its chief exec. and a majority of its sanggu
members
 Local Government - Notes
ALTERATION AND DISSOLUTION OF
MUNICIPAL CORPORATIONS
———————————————————————
NATURE OF POWER
Necessity for Defining Territorial Boundaries
• municipal corporation cannot, w/o legal authorisation,
exercise its powers beyond its own corporate limits
• necessary that it has its boundaries fixed, definite, certain,
so that they may be identified, and that all may know the
exact scope/section of territory or geographical division
embraced w/in the corporate limits and over w/c the local
corporation has jurisdiction
• incorporation is void where the boundaries of the MC are
not described w/ certainty
Apportioning
• legislature may apportion the common property/assets and
the common borders between or among the corporations in
a reasonable and equitable manner
• this may be done in the law dividing the corporations, or it
may be left to the executive and admin authorities for
determination
Basic Procedure for Boundary Disputes
Disputes bet. Municipal Governments over Areas/Barangays
• heard and decided by the Sanggu Panlalawigan of the
province where the municipalities are situated
• if the municipalities are in different provinces, the SP of
both provinces shall jointly hear and decide the dispute
• if not settlement is reached w/in 60 days from referral to
the SP, the dispute shall be brought to the RTC w/c shall
decide the case w/in 1 year from start of the proceedings
Disputes w/in Barangays
• heard and decided by the SP or SB concerned
• in case no settlement is reached w/in 60 days, the case shall
be heard and decided by the RTC w/in 1 year from the start
of court proceedings
Calanza v. PICOP (2009)
The settlement of a boundary dispute involving municipalities or
component cities of different provinces shall be jointly referred for
settlement to the respective sanggunians or the provincial boards
of the different provinces involved, with the dissatisfied party
being given an avenue to question the decision of the sanggunian
to the Regional Trial Court (RTC) having jurisdiction over the
area.
The RTC cannot assume original jurisdiction over boundary
disputes since the LGC allocates such power to the sanggu
panlalawigans of the provinces involved. Neither can it exercise its
appellate jurisdiction as no petition had been filed and decided by
the said sanggus.
Page 17
Brgy. Sangalang v. Brgy. Magian (2009)
The sanggu decision may be appealed to the RTC having
jurisdiction over the area in dispute. When the RTC takes
cognisance of a case in the exercise of its appellate jurisdiction any
further appeal must be thru a petition for review under Rule 42.
MANNER OR MODE
Sec. 7, LGC. - As a general rule, the creation of a local
government unit or its conversion from one level to another level
shall be based on verifiable indicators of viability and projected
capacity to provide services, to wit:
(a) Income. - It must be sufficient, based on acceptable standards,
to provide for all essential government facilities and services
and special functions commensurate with the size of its
population, as expected of the local government unit
concerned;
(b) Population. - It shall be determined as the total number of
inhabitants within the territorial jurisdiction of the local
government unit concerned; and
(c) Land Area. - It must be contiguous, unless it comprises 2 or
more islands or is separated by a local government unit
independent of the others; properly identified by metes and
bounds with technical descriptions; and sufficient to provide
for such basic services and facilities to meet the requirements
of its populace.
Compliance with the foregoing indicators shall be attested to by
the Department of Finance (DOF), the National Statistics Office
(NSO), and the Lands Management Bureau (LMB) of the
Department of Environmental Resources (DENR).
Sec. 8, LGC. - Division and merger of existing local government
units shall comply with the same requirements herein prescribed
for their creation: Provided, however, That such division shall not
reduce the income, population, or land area of the local
government unit(s) concerned to less than the minimum
requirements prescribed in this Code: Provided, further, That the
income classification of the original local government unit(s) shall
not fall below its current income classification prior to such
division.
The income classification of local government units shall be
updated within 6 months from the effectivity of this Code to
reflect the changes in their financial position resulting from the
increased revenues as provided herein.
Sec. 9, LGC. - A local government unit may be abolished when
its income, population, or land area has been irreversibly reduced
to less than the minimum standards prescribed for its creation
under Book III of this Code, as certified by national agencies
mentioned in section 17 hereof to Congress or to the sanggunian
concerned, as the case may be.
The law or ordinance abolishing a local government unit shall
specify the province, city, municipality, or barangay with which
the local government unit sought to be abolished will be
incorporated or merged.
Sec. 10, LGC. - No creation, division, merger, abolition, or
substantial alteration of boundaries of local government units
shall take effect unless approved by a majority of the votes cast in
a plebiscite called for the purpose in the political unit(s) directly
affected. Said plebiscite shall be conducted by the COMELEC
 Local Government - Notes
within 120 days from the date of effectivity of the law or
ordinance effecting such action, unless said law or ordinance fixes
another date.
Art. X, s. 10. - No province, city, municipality, or barangay may
be created, divided, abolished, or its boundary substantially
altered, except in accordance with the criteria established in the
Local Government Code and subject to approval by a majority of
the votes cast in a plebiscite in the political units directly affected.
EFFECTS
O f A n n ex a t i o n o r C o n s o l i d a t i o n o f M u n i c i p a l
Corporations
Subject Matter Effect
Legal Existence of the unless otherwise provided, the
Territory Annexed annexation of 1 municipal
corporation to another will
dissolve the annexed territory
Laws and Ordinances of the in the absence of a provision to
Annexed Corporations the contrary, the annexed
territory shall become subject to
the laws + ordinances by w/c
the annexing corporation is
governed
Right of Officers or subj. to what the legislature
Employees of the Annexed provides upon annexation, the
Corporation to Continue to officers and employees of the
annexed territory shall
Hold their Offices
terminate their official relation
w/ their offices
Title to the Property of the annexing territory shall acquire
Annexed Territory title to the property of the
annexed territory at the time of
the annexation, unless the
annexing statute provides
otherwise
when the annexed territory
forms part of a municipality
from w/c it is taken, the
legislature may provide for the
payment of compensation for
the indebtedness incurred on
account of the property taken
public buildings and
improvements in the annexed
territory are not required to be
paid for by the annexing
territory, as they have already
been paid for by said
territory;However, if any
indebtedness on these exists,
the annexing territory must be
req’d to share in the payment of
said indebtedness
Page 18
Subject Matter Effect
those contracted prior to the
On Debts and Obligations of
Annexed Territory annexation shall be assumed by
the annexing territory in the
absence of any provision to the
contrary
Of Division of Municipal Corporations
Subject Matter Effect
Legal Existence of the OG corporate existence of the
Municipal Corporation original municipality is
extinguished
Property, Powers and Rights unless law provides otherwise,
of the OG Corporation when a mun. corporation is
divided into 2 or more
municipalities, each one
acquires title to all the property,
powers, rights and obligations
falling w/in its territorial limits
WHEN THERE IS NO DISSOLUTION
Non-User or Surrender of Charter
• municipal corporations cannot bring about their own
dissolution by a mere surrender of charter
• municipal corporation is not ipso facto dissolved/destroyed
by non-use of its powers in whole/part, or for its failure for
a number of years to exercise the functions of a municipality
• in such cases, the municipal corporation would be
suspended but not civilly dead, as its dormant functions
could be revived w/o action on account of the sovereignty
from w/c, in theory of law, corporate life originally came
Failure to Elect Municipal Officers
• in absence of a statute, a municipal corporation is not
dissolved by mere failure to elect or appoint its officers and
agents to conduct its gov’t
• officers do not constitute a corporation; rather, the
inhabitants of the designated locality are the incorporators
Change of Sovereignty
Vilas v. City of Manila (supra)
While there is a total abrogation of the former political relations
of inhabitants of ceded territory, and an abrogation of laws in
conflict with the political character of the substituted sovereign,
the great body of municipal law regulating private and domestic
rights continues in force until abrogated or changed by the new
ruler. Although the United States might have extinguished every
municipality in the territory ceded by Spain under the Treaty of
1898, it will not, in view of the practice of nations to the contrary,
be presumed to have done so.
 Local Government - Notes

The legal entity of the City of Manila survived both its military
occupation by, and its cession to, the United States, and, as in law,
the present city, as the successor of the former city, is entitled to
the property rights of its predecessor, it is also subject to its
liabilities.

Sultan Usman Sarangani v. COMELEC (2000)

Determination of whether or not a certain election precint actually
exists, and whether the voters registered in the precint are real
voters, is a factual matter. Under the LGC, the abolition of an
LGU may be done by Congress in the case of a province, city,
municipality, or any other political subdivision. In the case of a
barangay, except in Metro Manila and in cultural communities, it
may be done by the Sanggu Panlalawigan or Panlungsod
concerned, subject to the mandatory requirement of a plebiscite
conducted for the purpose in the political units affected.

Page 19
 Local Government - Notes

PLEBISCITE REQUIREMENTS The creation of a separate congressional district for Mandaluyong

——————————————————————— is not a subject separate and distinct from the subject of its
conversion into a highly urbanized city but is a natural and logical
Art. X, s. 10. - No province, city, municipality, or barangay may
consequence of its conversion into a highly urbanized city. Verily,
be created, divided, merged, abolished, or its boundary
the title of R.A. No. 7675, “An Act Converting the Municipality of
substantially altered, except in accordance with the criteria
Mandaluyong Into a Highly Urbanized City of Manda-luyong”
established in the Local Government Code and subject to approval
necessarily includes and contemplates the subject treated under
by a majority of the votes cast in a plebiscite in the political units
Section 49 regarding the creation of a separate congressional
directly affected.
district for Mandaluyong.
Sec. 10, LGC. - No creation, division, merger, abolition, or
Municipality of Nueva Era, Ilocos v. Marcos (2008)
substantial alteration of boundaries of local government units
The plebiscite is an instance where the people in their sovereign
shall take effect unless approved by a majority of the votes cast in
capacity decide on a matter which affects them - direct democracy
a plebiscite called for the purpose in the political unit(s) directly
of the people as opposed to democracy thru people’s
affected. Said plebiscite shall be conducted by the COMELEC
representatives. This plebiscite requirement is also in accord with
within 120 days from the date of effectivity of the law or
the philosophy of the Constitution granting more autonomy to
ordinance effecting such action, unless said law or ordinance fixes
LGUs. Moreover, it is prospective in character, and cannot apply to
another date.
municipalities already created.
Padilla v. COMELEC (1992)


When the law states that the plebiscite shall be conducted “in the
political units directly affected,” it means that residents of the
political entity who would be economically dislocated by the
separation of a portion thereof have a right to vote in said
plebiscite. Evidently, what is contemplated by the phrase “political
units directly affected,” is the plurality of political units which
would participate in the plebiscite.
The plebiscite here is valid as the phrase mentioned means that
residents of the political entity who would be economically
dislocated by the separation of a portion thereof have a right to
vote. Logically, this includes the mother Municipality.

Tan v. COMELEC (1996)

A plebiscite for creating a new province should include the
participation of the residents of the mother province for the
plebiscite to conform to the constitutional requirements.
Boundaries of the existing province of Negros Occidental would
necessarily be substantially altered by the division of its existing
boundaries in order that there can be created the proposed new
province of Negros del Norte. Therefore, both the new province
and the Mother province come within the meaning of “political
units affected.”

Miranda v. Aguirre (1999)

Both the Constitution and the LGC require for a plebiscite. The
rule covers all conversions, whether upward or downward, so long
as they result in a material change in the LGU directly affected,
especially a change in political and economic rights of the people.
RA 8528 is then unconstitutional.

Tobias v. Abalos (1994)

The statutory conversion of Mandaluyong into a highly urbanized
city with a population of not less than two hundred fifty thousand
indubitably ordains compliance with the “one city-one
representative” proviso in the Constitution: “x x x Each city with
a population of at least two hundred fifty thousand, or each
province, shall have at least one representative” (Article VI,
Section 5(3), Constitution). Hence, it is in compliance with the
aforestated constitutional mandate that the creation of a separate
congressional district for the City of Mandaluyong is decreed
under Article VIII, Section 49 of R.A. No. 7675.

Page 20
 Local Government - Notes
GEN. POWERS OF LOCAL GOVERNMENTS
———————————————————————
POLICE POWER
General Welfare
Sec. 16, LGC. - Every local government unit shall exercise the
powers expressly granted, those necessarily implied therefrom, as
well as powers necessary, appropriate, or incidental for its efficient
and effective governance, and those which are essential to the
promotion of the general welfare. Within their respective
territorial jurisdictions, local government units shall ensure and
support, among other things, the preservation and enrichment of
culture, promote health and safety, enhance the right of the
people to a balanced ecology, encourage and support the
development of appropriate and self-reliant scientific and
technological capabilities, improve public morals, enhance
economic prosperity and social justice, promote full employment
among their residents, maintain peace and order, and preserve the
comfort and convenience of their inhabitants.
Powers, Duties and Functions of LGUs
Sanggu Barangay
• enact ordinances
• enact tax and revenue ordinances
• enact annual and supplemental budget
• provide for the construction and maintenance of facilities
and projects chargeable to the general fund of the barangay
• submit to the sanggu panlungsod/bayan suggestions or
recommendations
• assist in establishment of coop enterprises w/c will improve
the economic condition and well-being of the residents
• regulate the use of facilities constructed w/ gov’t funds and
charge reasonable fees
• solicit or accept monies, materials and voluntary labor
• solicit or accept cooperation by national, provincial, city, or
municipal agencies to render financial, technical, and
advisory assistance to barangays and to barangay residents
Sanggu Bayan
• enact ordinances, approve resolutions and appropriate funds
• generate and maximise use of resources and revenues
• grant franchises, enact ordinances authorising the issuance
of permits or licenses, or enact ordinances levying taxes, fees
and charges upon such conditions
• regulate activities relative to the use of land, buildings and
structures w/in the municipality
• approve ordinances to ensure the efficient and effective
delivery of the basic services and facilities
• exercise such other powers and perform such other duties
and functions as may be prescribed by law or ordinance
Page 21
Sanggu Panlungsod
• approve ordinances and pass resolutions necessary for an
efficient and effective city gov’t
• generate and maximise the use of resources and revenues
• enact ordinances granting franchises and authorising the
issuance of permits or licenses
• regulate activities relative to the use of land, buildings and
structures w/in the city
• approve ordinances w/c shall ensure the efficient and
effective delivery of the basic services and facilities
• exercise such other powers and perform such other duties
and functions as may be prescribed by law or ordinance
Sanggu Panlalawigan
• approve ordinances and pass resolutions
• generate and maximise the use of resources and revenues
• adopt measures to enhance the full implementation of the
national agrarian reform program in coordination w/ DAR
• grant franchises, approve issuance of permits or licenses, or
enact ordinances levying taxes, fees and charges
• approve ordinances w/c shall ensure the efficient and
effective delivery of the basic services and facilities
City of Manila v. Laguio (2005)
The police power granted to local government units must always
be exercised with utmost observance of the rights of the people to
due process and equal protection of the law; Due process requires
the intrinsic validity of the law in interfering with the rights of the
person to his life, liberty and property. A reasonable relation must
exist between the purposes of the police measure and the means
employed for its accomplishment, for even under the guise of
protecting the public interest, personal rights and those
pertaining to private property will not be permitted to be
arbitrarily invaded.
An ordinance which permanently restricts the use of property that
it can not be used for any reasonable purpose goes beyond
regulation and must be recognized as a taking of the property
without just compensation. The Ordinance does not specify the
standards to ascertain which establishments “tend to disturb the
community,” “annoy the inhabitants,” and “adversely affect the
social and moral welfare of the community.” The cited case
supports the nullification of the Ordinance for lack of
comprehensible standards to guide the law enforcers in carrying
out its provisions.
White Light v. City of Manila (2009)
Police power, while incapable of exact definition, has been
purposely veiled in such general terms so as to underscore its
comprehensiveness to meet all exigencies and prove enough room
for an efficient and flexible response as the conditions warrant. It
is based upon the concept of necessity of the State and its
corresponding right to protect itself and its people.
To be a valid measure, the ff. requisites must occur: (i) appears
that the interests of the public generally, as distinguished from
those of a particular class, require an interference w/ private
rights; (ii) evident that no other alternative for the
accomplishment of the purpose less intrusive of private rights can
 Local Government - Notes
work; (iii) reasonable relation must exist bet. the purpose of the
measure and the means employed for its accomplishment.
Malate v. City of Manila (1967)
To satisfy the due process requirement, an official action must not
outrun the bounds of reason and result in sheer oppression; due
process after all is freedom from arbitrariness.
Dela Cruz v. Paras (1983)
Police Power may be exercised by a municipality, however it must
be read in connection w/ the constitution and pertinent laws.
Municipalities have no power to prohibit, but only to regulate.
Technology Developers v. CA (1991)
A town mayor has as much responsibility to protect its
inhabitants from pollution, and by virtue of his police power he
may deny the application for a permit to operate a business, or
otherwise close the same, unless appropriate measures are taken
to control and/or avoid injury to the health of the residents of the
community from the emissions in the operation of the business.
Chua Huat v. CA (1991)
The power to condemn and remove the buildings and structures is
an exercise of the police power granted to the City, in order to
promote public safety.
Tatel v. Municipality of Virac (1992)
For an ordinance to be valid, it must not only be within the
corporate powers of the municipality to enact but must also be
passed according to the procedure prescribed by law, and must be
in consonance with certain well established and basic principles of
a substantive nature. These principles require that a municipal
ordinance (1) must not contravene the Constitution or any statute
(2) must not be unfair or oppressive (3) must not be partial or
discriminatory (4) must not prohibit but may regulate trade (5)
must be general and consistent with public policy, and (6) must
not be unreasonable. Ordinance No. 13, Series of 1952, meets
these criteria.
Judge Tamin v. CA (1992)
The LGC allows the municipality, thru the legislative body, to pass
an ordinance in order to summarily abate a public nuisance.
Binay v. Domingo (1991)
Municipal corporations are agencies of the State for the
promotion and maintenance of local self-government and as such
are endowed with police powers in order to effectively accomplish
and carry out the declared objects of their creation.
To be valid, it must not only be within the corporate powers of the
municipality to enact but must also be passed according to the
procedure prescribed by law, and must be in consonance with
certain well established and basic principles of a substantive
nature. These principles require that a municipal ordinance (1)
must not contravene the Constitution or any statute (2) must not
be unfair or oppressive (3) must not be partial or discriminatory
(4) must not prohibit but may regulate trade (5) must be general
and consistent with public policy, and (6) must not be
unreasonable. Ordinance No. 13, Series of 1952, meets these
criteria.
Page 22
Patalinhug v. CA (1994)
The declaration of the area as a commercial zone thru a municipal
ordinance is an exercise of police power, to promote the good
order and general welfare of the people in the locality. The state,
to promote the general welfare, may interfere with personal
liberty, with property, and with business and occupations.
Parayno v. Jovellanos (2006)
The requisites to consider that a local government has managed to
properly exercise its police powers are the ff.: (a) interests of the
public generally, as distinguished from those of a particular class,
require the interference of the State; and (b) the means employed
are reasonably necessary for the attainment of the object sought
to be accomplished and not unduly oppressive.
Greater Balanga Dev’t Corp. v. Municipality Balanga (1994)
The sanggu bayan has the duty, in the exercise of its police
powers, to regulate any business subject to municipal license fees
and prescribe the conditions under which a municipal license
already issued may be revoked. In this case, the claim that the EO
and the Resolution were measures “designed to promote peace
and order and protect the general welfare of the people” was
considered by the Court to be too amorphous and convenient an
excuse to justify the respondents’ acts.
Tano v. Socrates (1997)
Indispensable to the system of decentralisation is devolution. One
of the devolved powers enumerated in the LGC re Devolution is
the enforcement of fishery laws in municipal waters, including the
conservation of mangroves. This necessarily includes enactment
of ordinances to effectively carry out such fishery laws within the
municipal waters.
Roble v. Villaflor (2006)
Here the Mayor’s power to issue licenses is pursuant to the
General Welfare Clause, which encapsulates the delegated police
power to local governments. Municipal mayor has the power to
issue licenses and permits, as well as to suspend or revoke the
same for any violation of the conditions upon which said licenses
or permits had been issued, pursuant to law or ordinance.
LGUs exercise police power thru their respective legislative
bodies. Thru the general welfare clause, LGUs may prescribe
regulations to protect the lives, health, and property of their
constituents and maintain peace and order within their respective
territorial jurisdictions.
Closure and Opening of Roads
Sec. 21, LGC. -
(a) A local government unit may, pursuant to an ordinance,
permanently or temporarily close or open any local road, alley,
park, or square falling within its jurisdiction: Provided,
however, That in case of permanent closure, such ordinance
must be approved by at least 2/3 of all the members of the
sanggunian, and when necessary, an adequate substitute for
the public facility that is subject to closure is provided.
(b) No such way or place or any part thereof shall be permanently
closed without making provisions for the maintenance of
public safety therein. A property thus permanently withdrawn
from public use may be used or conveyed for any purpose for
which other real property belonging to the local government
 Local Government - Notes
unit concerned may be lawfully used or conveyed: Provided,
however, That no freedom park shall be closed permanently
without provision for its transfer or relocation to a new site.
(c) Any national or local road, alley, park, or square may be
temporarily closed during an actual emergency, or fiesta
celebrations, public rallies, agricultural or industrial fairs, or
an undertaking of public works and highways,
telecommunications, and waterworks projects, the duration of
which shall be specified by the local chief executive concerned
in a written order: Provided, however, That no national or
local road, alley, park, or square shall be temporarily closed for
athletic, cultural, or civic activities not officially sponsored,
recognised, or approved by the local government unit
concerned.
(d) Any city, municipality, or barangay may, by a duly enacted
ordinance, temporarily close and regulate the use of any local
street, road, thoroughfare, or any other public place where
shopping malls, Sunday, flea or night market, or shopping
areas may be established and where goods, merchandise,
foodstuffs, commodities, or articles of commerce may be sold
and dispensed to the general public.
Cabrera v. CA (1991)
The provincial board has the duty of maintaining such roads for
the comfort and convenience of its inhabitants. This authority is
inferred from the grant by the national legislature of the funds to
the Province for the construction of provincial roads.
Dacanay v. Asistio (1992)
The public street is property for public use, hence outside the
commerce of man. Being outside the commerce of man, it may
not be the subject of lease or other contract. The right of the
public to use the city streets may not be bargained away thru
contract.
Macasiano v. Diokno (1992)
Roads and streets which are available to the public in general and
ordinarily used for vehicular traffic are still considered public
property devoted to public use. In such case, the local government
has no power to use it for another purpose or to dispose of or
lease it to private persons.
Pilapil v. CA (1992)
A camino vecinal is a municipal road; here, the municipality had
the unassailable authority to (a) prepare and adopt a land use
map; (b) promulgate a zoning ordinance which may consider,
among other things, the municipal roads to be constructed,
maintained, improved or repaired; and (c) close any municipal
road. No private party can interfere with such a right.
Sangalang v. IAC (1989)
Unlike the power of eminent domain, police power is exercised
without provision for just compensation. However, it may not be
done arbitrarily or unreasonably. But the burden of showing that
it is unjustified lies on the aggrieved party.
MMDA v. Bel Air Village Assn. (2000)
The national legislature may delegate police power to the
President, and admin boards as well as lawmaking bodies of
municipal corporations or local government units. Once
Page 23
delegated, the agents can only exercise such legislative powers
conferred upon them by the national lawmaking body.
The MMDA has limited powers which does not include police
power. Not being a political subdivision, the MMDA is limited to
the administration and implementation of basic services, provided
in its charter and cannot open Neptune Street without the proper
ordinance.
Sun Valley Home Owners’ Assn. v. Barangay Sun Valley
(2011)
Once roads are donated or turned over to the city government, the
road lots shall take the nature of public roads, which are
withdrawn from the commerce of man, and hence placed beyond
the private rights or claims of private party.
EMINENT DOMAIN
Sec. 19, LGC. - All local government unit may, through its chief
executive and acting pursuant to an ordinance, exercise the power
of eminent domain for public use, or purpose or welfare for the
benefit of the poor and the landless, upon payment of just
compensation, pursuant to the provisions of the Constitution and
pertinent laws: Provided, however, That the power of eminent
domain may not be exercised unless a valid and definite offer has
been previously made to the owner, and such offer was not
accepted: Provided, further, That the local government unit may
immediately take possession of the property upon the filing of the
expropriation proceedings and upon making a deposit with the
proper court of at least 15% of the fair market value of the
property to be expropriated: Provided, finally, That, the amount to
be paid for the expropriated property shall be determined by the
proper court, based on the fair market value at the time of the
taking of the property.
Art. III, s. 9. - Private property shall not be taken for public use
without just compensation.
Summary of Rule 67 (Expropriation)
Verified Complaint
Entry of Plaintiff
Defences and Objections w/ objections and defences:
answer w/in time stated in the
summons
if none: notice of appearance
Order of Expropriation ascertainment of compensation
uncertain ownership; conflicting
claims
commissioners provide their
report to determine judgment
Rights of Plaintiff after enter and appropriate (not
Judgment and Payment - delayed by an appeal)
either:
retain
 Local Government - Notes
Contents of Complaint
• right and purpose of expropriation
• description of real or personal property
• join defendants - all persons owning/claiming to own or
occupying any part or interest
• make averments, if (i) title is w/ Republic but occupied by
private individuals, or (ii) title is obscure or doubtful
Entry of Plaintiff
• upon filing of complaint and after due notice to defendant(s)
• deposit of amount equivalent to the assessed value
Defences and Objections
No Objections
• file notice of appearance and manifestation
• contents: (a) manifestation to the effect that he has no
objection or defense; and (b) specifically designating/
identifying the property in which he claims to be interested
W/ Objections
• file answer to complaint, w/in time stated in summons
• contents: (a) specifically designating/identifying the
property in w/c he claims to have an interest in; (b) nature
and extend of interest; and (c) all objections and defences to
the complaint or any allegation
• no counterclaim, cross-claim or 3PC alleged/allowed
Order of Expropriation
When Issued
• objections/defenses against the right of plaintiff to
expropriate are overruled; or
• no party appears to defend the case
Ascertainment of Compensation
• court appoints at most 3 Commissioners who will ascertain
the jus compensation for property
Objections to Appointment
• to be filed w/in 10 days;
• to be resolved w/in 30 days
Commissioners
• take and subscribe to an oath
• view and examine the property sought to be expropriated
• assess the consequential damages and benefits
Report
• to be filed w/in 60 days from time of appointment
• parties are allowed to object to findings of report w/in 10
days
Page 24
Court Action
• either to accept the report, or recommit the same for further
acts
• may also set aside report and appoint new commissioners
• may also accept and reject it in part
Uncertain Ownership; Conflicting Claims
If Ownership of Property is Uncertain/there are Conflicting
Claims:
• court may order sums awarded as compensation
• judgment shall require payment of sums awarded to
defendant before the plaintiff can enter property or retain it
for public use
Plaintiff ’s Rights
Upon Payment of Compensation, w/ Legal Interest:
• right to enter;
• right to retain (if he took immediate possession)
Entry not Delayed by Appeal
If Appellate Court decides that Plaintiff had no Right to
Expropriate:
• order the RTC to restore defendant of his possession
• determine the damages
Moday v. CA (1993)
The limitations on the power of Eminent Domain are that: (i) the
use must be public; (ii) compensation be made; and (iii) due
process of law is observed.
Camarines Sur v. CA (1993)
While the LGU’s delegated power of Eminent Domain is only of
limited authority, it is complete within its limits. The limitations
on the exercise of the delegated power must be clearly expressed,
either in the law conferring the power or in other legislations.
Statutes that confer the power of Eminent Domain to political
subdivisions cannot be broadened or constricted by implication.
Municipality of Meycauayan v. IAC (1988)
The foundation of the right to use Eminent Domain is Genuine
Necessity, and such necessity must be of public character. The
condemnation of private property is justified only if it is for the
public good, and there is genuine necessity; thus, the courts have
the power to inquire into the legality of the exercise of the right of
eminent domain, and to determine whether or not there is
genuine necessity.
The government may not capriciously choose what private
property should be taken. With due recognition then of the power
of Congress to designate, the particular property to be taken and
how much thereof may be condemned in the exercise of the
power of expropriation, it is still a judicial question whether in
the exercise of such competence, the part adversely affected is the
victim of partiality and prejudice.
 Local Government - Notes
QC v. Ericta (1983)
It is not within the police powers of the City, as it constitutes
confiscation and not merely regulation - confiscation in the
context of police powers would lead to destruction, and not public
use.. Neither is it expropriation, as there is no just compensation
when “lots are donated.”
The State’s exercise of the power of expropriation requires
payment of just compensation. Passing the ordinance without
benefiting the owner of the property with just compensation or
due process, would amount to unjust taking of a real property.
Since the property that is needed to be taken will be used for the
public's benefit, then the power of the state to expropriate will
come forward and not the police power of the state.
City of Manila v. Arellano College (1950)
To authorise the condemnation of any particular land by a grantee
of the power of Eminent Domain, a necessity must exist for the
taking thereof for the proposed uses and purposes. The very
foundation of the right to exercise Eminent Domain is a genuine
necessity, and that such necessity be of public character. The
ascertainment of necessity must precede or accompany, and not
follow, the taking of the land.
Necessary does not mean an absolute but only a reasonable or a
practical necessity, such as would combine the greatest benefit to
the public with the least inconvenience and expense to the
condemning party and property owner consistent with such
benefit.
City of Manila v. Chinese Community (1920)
If the expropriation is of a certain or particular parcel of land, for
some specified public purpose, then the courts would be without
jurisdiction to inquire into the purpose of that legislation. If, upon
the other hand, however, the Legislature should grant general
authority to a municipal corporation to expropriate private land
for public purposes, the courts have the ample authority to make
an inquiry and to hear proof, upon an issue properly presented,
concerning whether or not the lands were private and whether the
purpose was, in fact, of a public nature.
Municipality of Paranaque v. VM Realty (1998)
With the enactment of the LGC, an ordinance is now required to
exercise the power of Eminent Domain. A mere resolution is
insufficient.
The principles of res judicata and ‘law of the case’ cannot bar the
State’s exercise of such power.
Beluso v. Panay (2006)
LGUs do not have the inherent power of Eminent Domain; rather,
the power delegated to them is in reality inferior, as it must
conform to the limits imposed by the delegation, and thus
partakes only of a share in Eminent Domain. The national
legislature is still the principal of the LGU, and the latter cannot
go against the principals’ will, or modify the same.
Requisites for an LGU to properly exercise Eminent Domain: (a)
an ordinance, enacted by the local legislative council authorising
the chief executive, in behalf of the LGU, to exercise the power or
pursue expropriation proceedings over a particular private
property; (b) for public use, purpose of welfare, or for the benefit
of the poor and the landless; (c) payment of just compensation;
and (d) a valid and definite offer was previously made to the
Page 25
owner of the property sought to be expropriated, but said offer
was not accepted.
The Court is not precluded from considering the fact of lack of a
proper ordinance for expropriation, despite being raised for the
first time on appeal.
City of Cebu v. Spouses Apolonio and Blasa Dedamo (2002)
Eminent Domain is a fundamental state power inseparable from
sovereignty. It is the government’s right to appropriate, in the
nature of a compulsory sale to the State, private property for
public use or purpose. However, the Government must pay the
owner thereof just compensation - to be determined at the time of
taking - as consideration.
Republic v. CA (2002)
For local governments to be able to use the power, it must, by
enabling law, be delated to it by the national legislature. But even
then, this delegated power is not a power of eminent, but only of
inferior, domain.
Expropriated lots cannot be recovered since they have already
taken the character of public property, so the proper remedy is to
demand for their fair market value.
TAXATION AND FISCAL ADMINISTRATION
Local Taxation
Art. X, s. 5. - Each local government unit shall have the power to
create its own sources of revenues and to levy taxes, fees, and
charges subject to such guidelines and limitations as the Congress
may provide, consistent with the basic policy of local autonomy.
Such taxes, fees, and charges shall accrue exclusively to the local
governments.
Art. X, s. 6. - Local government units shall have a just share, as
determined by law, in the national taxes which shall be
automatically released to them.
Art. X, s. 7. - Local governments shall be entitled to an equitable
share in the proceeds of the utilisation and development of the
national wealth within their respective areas, in the manner
provided by law, including sharing the same with the inhabitants
by way of direct benefits.
Secs. 128-196, LGC. (summary)
Taxing Power of LGUs in General
Fundamental Principles
Taxation:
• uniform in each LGU
Taxes, Fees, Charges and Other Impositions, shall:
• be equitable and based as far as practicable on the taxpayer’s
ability to pay;
• be levied and collected only for public purposes;
• not be unjust, excessive, oppressive, or confiscatory; and
• not contrary to law, public policy, national economic policy,
or in the restraint of trade
 Local Government - Notes

Collection Distribution of Proceeds

• in no case shall it be left to any private person
Revenue Collected
• shall inure solely to the benefit of + subj. to the disposition
by the LGU levying imposition
• unless otherwise specifically provided herein
Others
• each LGU shall, as far as practicable, evolve a progressive
system of taxation
• power to impose a tax, fee, or charge or to generate revenue
in this Code shall be exercised by the sanggu of the
concerned LGU thru an appropriate ordinance
*BIR is tasked w/ printing community tax certificates*
Proceeds
• accrue to LGU’s general funds; however, portion shall accrue
to the national gov’t to cover the actual cost of printing and
distribution of the forms and other related expenses
• those actually and directly collected by the city/municipality
treasurer shall accrue entirely to the general fund of the city
or municipality concerned, IF:
• collected thru barangay treasurer, apportioned as:
• 50% to general fund of LGU concerned + 50% to
barangay where tax is collected

Common Limitations Special Provisions on LGUs

LGUs may not levy taxes enumerated in sec. 133, including: Provinces
• income taxes (except banks); Special Tax Provisions for Provinces
• DST;
• taxes on acquisitions mortis causa; Tax on Transfer of Ownership tax base is the higher amount
• taxes on exported PH products; of Real Property bet. the total consideration
• customs, fees, and charges in general; involved in the transfer of FMV
• taxes on agricultural/aquatic products when sold by Tax on Printing and base is either:
marginal farmers/fishermen; Publication Business gross annual receipts (existing
• excise taxes under the Tax Code, and those on petrol businesses), or capital
products; investment (new businesses)
• taxes on persons engaged in transportation; books or reading materials
• percentage or VAT on sales or similar transactions; prescribed by DepEd as school
• charges for motor vehicle registration; texts or references are exempted
• taxes on the national government, its agencies and
Franchise Tax base is either:
instrumentalities gross annual receipts (existing
businesses), or capital
Common Revenue - Raising Powers investment (new businesses)

exemption: those provided by

• reasonable fees and charges for services rendered law
• rates for operation of public utilities owned, operated, and
maintained by LGUs Tax on Sand, Gravel and other Division of Proceeds:
Quarry Resources 30% to province;
• toll fees or charges for the use of any public road, pier, or
30% to CC/municipality;
wharf, waterway, bridge, ferry or telecommunication system
40% to barangay
funded and constructed by the LGU concerned;
• except those enumerated as by law Most fought over by LGUs

Community Tax Professional Tax place of payment: province

where he practices profession or
maintains his principal office
*poll tax is part of this*
payment of tax in any province
Who are Liable entitles taxpayer to practice his
profession in any part of the PH
w/o being subjected to any
Natural Persons other tax for his practice
• P5 annual tax + P1 per P1k income, w/c shall not > P5k
employers must req payment of
• liable to pay the community tax in their place of residence
professional tax before hiring an
employee
Juridical Persons
• P500 annual community tax w/c shall not > P10k
• liable to pay the community tax in their principal place

Page 26

Special Tax Provisions for Provinces
Amusement Tax
Tax for Every Delivery Truck /
Van of Manufacturers or
Producers, Wholesalers of,
Dealers, or Retailers in,
Certain Products
Municipalities
*those in Metro Manila may levy taxes at rates not exceeding
50% of the max rates prescribed by the LGC*
Special Tax Provisions for Municipalities
Tax on Business
Local Government - Notes
collected from proprietors,
lessees, or operators of theatres,
cinemas, concert halls, circuses,
boxing stadia, and other places
of amusement
base: gross receipts from
admission fees
for theatres/cinemas, tax shall
first be deducted and withheld
by taxpayers and paid to the
provincial treasurer before the
gross receipts are divided bet.
the taxpayers and the
distributors of the
cinematographic films
exemption: operas, concerts,
dramas, recitals, painting and art
exhibitions, flower shows,
musical programs, literary and
oratorical presentations…
except pop, rock or similar
concerts
Division of Proceeds: shared
equally by the province and the
municipality
products covered:
distilled spirits, fermented
liquors, soft drinks, cigars and
cigarettes, and others products
as determined by the sanggu
panlalawigan
taxpayers herein shall be exempt
from the tax on peddlers
Manufacturers, assemblers,
repackers, processors, brewers,
distillers, rectifiers, and
compounders of liquors, distilled
spirits, and wines or
manufacturers of any article of
commerce of whatever kind or
nature;
wholesalers, distributors, or
dealers in any article of
commerce of whatever kind or
nature;
Page 27
Special Tax Provisions for Municipalities
Situs of Taxation and
Distribution of Proceeds for
Business Taxes
Other Fees and Charges that
may be Imposed by Municipal
Government
exporters, and on
manufacturers, millers,
producers, wholesalers,
distributors, dealers or retailers
of essential commodities
enumerated hereunder:
rice and corn / wheat or cassava
flour / cooking oil / laundry soap /
agricultural implements / feeds /
school supplies / cement / etc;
retailers;
contractors and other
independent contractors;
rate for banks and other financial
institutions;
peddlers engaged in the sale of
any merchandise or article of
commerce;
businesses subject to the excise,
value-added or percentage tax
under the NIRC;
other businesses not otherwise
specified in the LGC, w/c the
sanggu concerned may deem
proper to tax
For branches of taxpayers of
business tax:
100% to LGU, where branch is
located
(if sale commenced in LGU
where no branch exists, then the
LGU where principal)
taxpayers w/ factories, project
offices, plants, and plantations in
the pursuit of their business:
30% where principal office is at;
70% where factory/project office
is located
(if plantation is located at a place
other than where factory is: 70%
will be divided 60-40, 60 to
location of factory and 40 to
location of plantation)
(if > 2 factories/plantations/etc.,
70% will be divided pro rata
among localities in proportion to
their respective volumes of
production during taxable period)
on any business/occupation on
the practice of any profession or
calling (except those reserved to
the province under sec. 139)
fees for sealing and licensing of
weights and measures
 Local Government - Notes

Special Tax Provisions for Municipalities Civil Remedies

• distraint of personal property
fishery rentals, fees, and • levy no real property
charges are exclusive w/ • judicial action
municipalities

Miscellaneous Provisions
may be imposed on:
grant of fishery privileges to
erect aquatic beds of bangus Conditions for LGU’s Power to Levy Taxes not imposed in
fury areas; either NIRC or LGC:
grant of privilege to gather, take
• taxes are not unjust, excessive, oppressive, confiscatory, or
or catch fisheries using certain
contrary to national policy;
means; and
issuance of licenses for • ordinance levying the taxes shall not be enacted w/o public
operation of fishing vessels hearing conducted for the purpose

Questions re Validity of Tax Ordinance

Cities
• may be raised on appeal to DOJ Sec w/in 30 days from the
effectivity thereof
Special Tax Provisions for Cities • DOJ Sec shall render a decision w/in 60 days from date of
receipt of the appeal
cities may levy the taxes, fees, and charges w/c provinces or
municipalities may impose
Publication of Tax Ordinance
exception: otherwise provided by the LGC • in full;
• for 3 consecutive days;
taxes, fees and charges levied and collected by HUCs and ICCs
• in a newspaper of local circulation
shall accrue to them and distributed in accordance w/ the provisions
of the LGC
*copies shall be furnished to the respective local treasurers for
rates may exceed maximum rates allowed for the province or public dissemination*
municipality by not > 50% except the rates of professional and
amusement taxes
LGU’s Authority to Adjust Tax Rates
• not oftener than once every 5 years
• but adjustments must never > 10% of rates under LGC

Barangays *unless otherwise provided in the LGC, tax exemptions/

Special Tax Provisions for Barangays
Business taxes for business establishments w/ gross sales of
receipts of the preceding calendar year:
P50k or less, for cities;
P30k or less, for municipalities
What may be levied upon by barangays, as long as the charges and
fees are reasonable:
services rendered in connection w/ regulations or the use of
barangay-owned properties or service facilities such as palay, copra
or tobacco dryers;
commercial breeding of fighting cocks, cockfights and cockpits;
places of recreation w/c charge admission fees;
billboards, signboards, neon signs, and outdoor advertisements;
barangay clearance for any business or activity to be located or
conducted w/in the barangay
Civil Remedies for Collection of Revenues (on LGU’s part)
Lien - whether:
• administrative; or
• judicial
Page 28
incentives granted to or presently enjoyed by all persons,
including government-owned or controlled corporations
(except local water districts, coops duly registered under RA
6938, nonstick and nonprofit hospitals and educational
institutions) are hereby withdrawn upon the effectivity of this
Code*
Taxpayer’s Remedies
Local Taxes
• assessed w/in 5 years from date they become due
• collected w/in 5 years from date of assessment
Prescription Periods - suspended, when:
• treasurer is legally prevented from making assessment of
collection;
• taxpayer requests for a reinvestigation and executes a waiver
in writing before expiration of the period w/in w/c to assess
or collect; and
• taxpayer is out of the country or otherwise cannot be
located
 Local Government - Notes

Protest
• re deficiency, surcharges, or other defective assessment
• w/in 60 days from receipt of notice of assessment

Written Claim for Refund or Credit

• needs to be filed w/ local treasurer for a case to be
maintained in court for the recovery of erroneously collected
tax
• no case or proceeding shall be entertained in any court after
the expiration of 2 years from the date of the payment of
such tax or from the date the taxpayer is entitled to a refund
or credit

Real Property Taxation

General Provisions

Fundamental Principles

• real property shall be appraised at its current FMV

• real property shall be classified for assessment purposes on
the basis of its actual use
• assessment shall be based on a uniform classification w/in
each LGU
• appraisal, assessment, levy and collection shall not be let to
any private person
• appraisal and assessment of real property shall be equitable
• provinces and cities (and municipalities w/in Metro Manila)
shall be primarily responsible for the proper, efficient, and
effective admin of the real property tax

Appraisal and Assessment

*purpose of these provisions is to determine the tax base*

Duties

Persons owning/administering Real Property

• to prepare a sworn statement declaring true value of
property
• includes those persons acquiring any real property

Local Assessor
• to make such declarations, if the owner/acquirer defaults in
his duty

*AH FUCK THIS RELY NA LANG ON THE REVIEWER*

Page 29
 Local Government - Notes
LOCAL LEGISLATION
Sec. 48, LGC. - Local legislative power shall be exercised by the
sangguniang panlalawigan for the province; the sangguniang
panlungsod for the city; the sangguniang bayan for the
municipality; and the sangguniang barangay for the barangay.
Sec. 49, LGC. -
(a) The vice-governor shall be the presiding officer of the
sangguniang panlalawigan; the city vice-mayor, of the
sangguniang panlungsod; the municipal vice-mayor, of the
sangguniang bayan; and the punong barangay, of the
sangguniang barangay. The presiding officer shall vote only to
break a tie.
(b) In the event of the inability of the regular presiding officer to
preside at a sanggunian session, the members present and
constituting a quorum shall elect from among themselves a
temporary presiding officer. He shall certify within 10 days
form the passage of ordinances enacted and resolutions
adopted by the sanggunian in the session over which he
temporarily presided.
Sec. 50, LGC. -
(a) On the first regular session following the election of its
members and within 90 days thereafter, the sanggunian
concerned shall adopt or update its existing rules of
procedure.
(b) The rules of procedure shall provide for the following: (i) the
organization of the sanggunian and the election of its officers
as well as the creation of standing committees which shall
include, but shall not be limited to, the committees on
appropriations, women and family, human rights, youth and
sports development, environmental protection, and
cooperatives; the general jurisdiction of each committee; and
the election of the chairman and members of each committee;
(ii) the order and calendar of business for each session; (iii)
the legislative process; (iv) the parliamentary procedures
which include the conduct of members during sessions; (v)
the discipline of members for disorderly behavior and
absences without justifiable cause for four (4) consecutive
sessions, for which they may be censured, reprimanded, or
excluded from the session, suspended for not more than sixty
(60) days, or expelled: Provided, That the penalty of
suspension or expulsion shall require the concurrence of at
least two-thirds (2/3) vote of all the sanggunian members:
Provided, further, That a member convicted by final judgment
to imprisonment of at least one (1) year for any crime
involving moral turpitude shall be automatically expelled from
the sanggunian; and (vi) such other rules as the sanggunian
may adopt.
Sec. 51, LGC. -
(a) Every sanggunian member shall, upon assumption to office,
make a full disclosure of his business and financial interests,
or professional relationship or any relation by affinity or
consanguinity within the fourth civil degree, which he may
have with any person, firm, or entity affected by any ordinance
or resolution under consideration by the sanggunian of which
he is a member, which relationship may result in conflict of
interest. Such relationship shall include: (i) Ownership of
stock or capital, or investment, in the entity or firm to which
Page 30
the ordinance or resolution may apply; and (ii) contracts or
agreements with any person or entity which the ordinance or
resolution under consideration may affect. In the absence of a
specific constitutional or statutory provision applicable to this
situation, “conflict of interest” refers in general to one where
it may be reasonable deduced that a member of a sanggunian
may not act in the public interest due to some private,
pecuniary, or other personal considerations that may tend to
affect his judgment to the prejudice of the service of the
public.
(b) The disclosure required under this Act shall be made in
writing and submitted to the secretary of the sanggunian or
the secretary of the committee of which he is a member. The
disclosure shall, in all cases, form part of the record of the
proceedings and shall be made in the following manner: (i)
Disclosure shall be made before the member participates in
the deliberations on the ordinance or resolution under
consideration: Provided, That, if the member did not
participate during the deliberations, the disclosure shall be
made before voting on the ordinance or resolution on second
and third readings; and (ii) Disclosure shall be made when a
member takes a position or makes a privilege speech on a
matter that may affect the business interest, financial
connection, or professional relationship described herein.
Sec. 52, LGC. -
(a) On the first day of the session immediately following the
election of its members, the sanggunian shall, by resolution,
fix the day, time, and place of its regular sessions. The
minimum numbers of regular sessions shall be once a week
for the sangguniang panlalawigan, sangguniang panlungsod,
and sangguniang bayan, and twice a month for the
sangguniang barangay.
(b) When public interest so demands, special sessions may be
called by the local chief executive or by a majority of the
members of the sanggunian.
(c) All sanggunian sessions shall be open to the public unless a
closed-door session is ordered by an affirmative vote of a
majority of the members present, there being a quorum, in
the public interest or for reasons of security, decency, or
morality. No two (2) sessions, regular or special, may be held
in a single day.
(d) In the case of special sessions of the sanggunian, a written
notice to the members shall be served personally at the
member's usual place of residence at least twenty-four (24)
hours before the special session is held. Unless otherwise
concurred in by two-thirds (2/3) vote of the sanggunian
members present, there being a quorum, no other matters
may be considered at a special session except those stated in
the notice.
(e) Each sanggunian shall keep a journal and record of its
proceedings which may be published upon resolution of the
sanggunian concerned.
Sec. 53, LGC. -
(a) A majority of all the members of the sanggunian who have
been elected and qualified shall constitute a quorum to
transact official business. Should a question of quorum be
raised during a session, the presiding officer shall immediately
proceed to call the roll of the members and thereafter
announce the results.
 Local Government - Notes
(b) Where there is no quorum, the presiding officer may declare a
recess until such time as a quorum is constituted, or a
majority of the members present may adjourn from day to day
and may compel the immediate attendance of any member
absent without justifiable cause by designating a member of
the sanggunian to be assisted by a member or members of the
police force assigned in the territorial jurisdiction of the local
government unit concerned, to arrest the absent member and
present him at the session.
(c) If there is still no quorum despite the enforcement of the
immediately preceding subsection, no business shall be
transacted. The presiding officer, upon proper motion duly
approved by the members present, shall then declare the
session adjourned for lack of quorum.
Sec. 54, LGC. -
(a) Every ordinance enacted by the sangguniang panlalawigan,
sangguniang panlungsod, or sangguniang bayan shall be
presented to the provincial governor or city or municipal
mayor, as the case may be. If the local chief executive
concerned approves the same, he shall affix his signature on
each and every page thereof; otherwise, he shall veto it and
return the same with his objections to the sanggunian, which
may proceed to reconsider the same. The sanggunian
concerned may override the veto of the local chief executive by
two-thirds (2/3) vote of all its members, thereby making the
ordinance or resolution effective for all legal intents and
purposes.
(b) The veto shall be communicated by the local chief executive
concerned to the sanggunian within fifteen (15) days in the
case of a province, and ten (10) days in the case of a city or a
municipality; otherwise, the ordinance shall be deemed
approved as if he had signed it.
(c) Ordinances enacted by the sangguniang barangay shall, upon
approval by the majority of all its members, be signed by the
punong barangay.
Sec. 55, LGC. -
(a) The local chief executive may veto any ordinance of the
sanggunian panlalawigan, sangguniang panlungsod, or
sanggunian bayan on the ground that it is ultra vires or
prejudicial to the public welfare, stating his reasons therefor
in writing.
(b) The local chief executive, except the punong barangay, shall
have the power to veto any particular item or items of an
appropriations ordinance, an ordinance or resolution adopting
a local development plan and public investment program, or
an ordinance directing the payment of money or creating
liability. In such a case, the veto shall not affect the item or
items which are not objected to. The vetoed item or items
shall not take effect unless the sanggunian overrides the veto
in the manner herein provided; otherwise, the item or items
in the appropriations ordinance of the previous year
corresponding to those vetoed, if any, shall be deemed
reenacted.
(c) The local chief executive may veto an ordinance or resolution
only once. The sanggunian may override the veto of the local
chief executive concerned by two-thirds (2/3) vote of all its
members, thereby making the ordinance effective even
without the approval of the local chief executive concerned.
Page 31
Sec. 56, LGC. -
(a) Within three (3) days after approval, the secretary to the
sanggunian panlungsod or sangguniang bayan shall forward to
the sangguniang panlalawigan for review, copies of approved
ordinances and the resolutions approving the local
development plans and public investment programs
formulated by the local development councils.
(b) Within thirty (30) days after the receipt of copies of such
ordinances and resolutions, the sangguniang panlalawigan
shall examine the documents or transmit them to the
provincial attorney, or if there be none, to the provincial
prosecutor for prompt examination. The provincial attorney or
provincial prosecutor shall, within a period of ten (10) days
from receipt of the documents, inform the sangguniang
panlalawigan in writing of his comments or
recommendations, which may be considered by the
sangguniang panlalawigan in making its decision.
(c) If the sangguniang panlalawigan finds that such an ordinance
or resolution is beyond the power conferred upon the
sangguniang panlungsod or sangguniang bayan concerned, it
shall declare such ordinance or resolution invalid in whole or
in part. The sangguniang panlalawigan shall enter its action in
the minutes and shall advise the corresponding city or
municipal authorities of the action it has taken.
(d) If no action has been taken by the sangguniang panlalawigan
within thirty (30) days after submission of such an ordinance
or resolution, the same shall be presumed consistent with law
and therefore valid.
Sec. 57, LGC. -
(a) Within ten (10) days after its enactment, the sangguniang
barangay shall furnish copies of all barangay ordinances to the
sangguniang panlungsod or sangguniang bayan concerned for
review as to whether the ordinance is consistent with law and
city or municipal ordinances.
(b) If the sangguniang panlungsod or sangguniang bayan, as the
case may be, fails to take action on barangay ordinances
within thirty (30) days from receipt thereof, the same shall be
deemed approved.
(c) If the sangguniang panlungsod or sangguniang bayan, as the
case may be, finds the barangay ordinances inconsistent with
law or city or municipal ordinances, the sanggunian concerned
shall, within thirty (30) days from receipt thereof, return the
same with its comments and recommendations to the
sangguniang barangay concerned for adjustment, amendment,
or modification; in which case, the effectivity of the barangay
ordinance is suspended until such time as the revision called
for is effected.
Sec. 58, LGC. - Any attempt to enforce any ordinance or any
resolution approving the local development plan and public
investment program, after the disapproval thereof, shall be
sufficient ground for the suspension or dismissal of the official or
employee concerned.
Sec. 59, LGC. -
(a) Unless otherwise stated in the ordinance or the resolution
approving the local development plan and public investment
program, the same shall take effect after ten (10) days from
the date a copy thereof is posted in a bulletin board at the
entrance of the provincial capitol or city, municipal, or
 Local Government - Notes
barangay hall, as the case may be, and in at least two (2) other
conspicuous places in the local government unit concerned.
(b) The secretary to the sanggunian concerned shall cause the
posting of an ordinance or resolution in the bulletin board at
the entrance of the provincial capitol and the city, municipal,
or barangay hall in at least two (2) conspicuous places in the
local government unit concerned not later than five (5) days
after approval thereof. The text of the ordinance or resolution
shall be disseminated and posted in Filipino or English and in
the language understood by the majority of the people in the
local government unit concerned, and the secretary to the
sanggunian shall record such fact in a book kept for the
purpose, stating the dates of approval and posting.
(c) The gist of all ordinances with penal sanctions shall be
published in a newspaper of general circulation within the
province where the local legislative body concerned belongs.
In the absence of any newspaper of general circulation within
the province, posting of such ordinances shall be made in all
municipalities and cities of the province where the sanggunian
of origin is situated.
(d) In the case of highly urbanized and independent component
cities, the main features of the ordinance or resolution duly
enacted or adopted shall, in addition to being posted, be
published once in a local newspaper of general circulation
within the city: Provided, That in the absence thereof the
ordinance or resolution shall be published in any newspaper
of general circulation.
Art. X, s. 9. - Legislative bodies of local government shall have
sectoral representation as may be prescribed by law.
Casino v. CA (1991)
Although the general law requires only majority, the higher
requisite in Resolution 49 shall govern, as municipal authorities
are in a better position to determine the evils sought to be
prevented by the inclusion or operation of particular provisions in
enacting a particular statute and, therefore, to pass the
appropriate ordinance to attain the main objective of the law.
Gamboa v. Aguirre (supra)
An incumbent vice-governor, while concurrently the acting
governor, cannot continue to preside over the sessions of the
sangguniang panlalawigan.
A vice-governor concurrently an acting governor is actually a
quasi-governor. For the purposes of exercising his legislative
prerogatives and powers, he is deemed as a non-member of the SP
for the time being. By tradition, the offices of the provincial
governor and vice-governor are essentially executive in nature,
whereas plain members of the provincial board perform legislative
functions, because the authority vested by law in said boards
involves primarily a delegation of some legislative powers of
Congress.
Local Initiative and Referendum
Sec. 120, LGC. - Local initiative is the legal process whereby the
registered voters of a local government unit may directly propose,
enact, or amend any ordinance.
Page 32
Sec. 121, LGC. - The power of local initiative and referendum
may be exercised by all registered voters of the provinces, cities,
municipalities, and barangays.
Sec. 122, LGC. -
(a) Not less than 1000 registered voters incase of provinces and
cities, 100 in case of municipalities, and 50 in case of
barangays, may file a petition with the sanggunian concerned
proposing the adoption, enactment, repeal, or amendment of
an ordinance.
(b) If no favourable action thereon is taken by the sanggunian
concerned within 30 days from its presentation, the
proponents, through their duly authorised and registered
representatives, may invoke their power of initiative, giving
notice thereof to the sanggunian concerned.
(c) The proposition shall be numbered serially starting from
Roman numeral I. The COMELEC or its designated
representative shall extend assistance in the formulation of
the proposition.
(d) 2 or more propositions may be submitted in an initiative.
(e) Proponents shall have 90 days in case of provinces and cities,
60 days in case of municipalities, and 30 days in case of
barangays, from notice mentioned in subsection (b) hereof to
collect the required number of signatures.
(f) The petition shall be signed before the election registrar, or
his designated representatives, in the presence of a
representative of the proponent, and a representative of the
sanggunian concerned in a public place in the local
government unit, as the case may be. Stations for collecting
signatures may be established in as many places as may be
warranted.
(g) Upon the lapse of the period herein provided, the COMELEC,
through its office in the local government unit concerned,
shall certify as to whether or not the required number of
signatures has been obtained. Failure to obtain the required
number defeats the proposition.
(h) If the required number of signatures is obtained, the
COMELEC shall then set a date for the initiative during which
the proposition shall be submitted to the registered voters in
the local government unit concerned for their approval within
60 days from the date of certification by the COMELEC, as
provided in subsection (g) hereof, in case of provinces and
cities, 45 days in case of municipalities, and 30 days in case of
barangays. The initiative shall then be held on the date set,
after which the results thereof shall be certified and
proclaimed by the COMELEC.
Sec. 123, LGC. - If the proposition is approved by a majority of
the votes cast, it shall take effect 15 days after certification by the
COMELEC as if affirmative action thereon had been made by the
sanggunian and local chief executive concerned. If it fails to obtain
said number of votes, the proposition is considered defeated.
Sec. 124, LGC. -
(a) The power of local initiative shall not be exercised more than
once a year.
(b) Initiative shall extend only to subjects or matters which are
within the legal powers of the sanggunian to enact.
(c) If at any time before the initiative is held, the sanggunian
concerned adopts in toto the proposition presented and the
local chief executive approves the same, the initiative shall be
 Local Government - Notes

cancelled. However, those against such action may, if they so

desire, apply for initiative in the manner herein provided.

Sec. 125, LGC. - Any proposition or ordinance approved through

the system of initiative and referendum as herein provided shall
not be repealed, modified or amended by the sanggunian
concerned within 6 months from the date of approval thereof, and
may be amended, modified or repealed by the sanggunian within
3 years thereafter by a vote of 3/4 of all its members: Provided,
that in case of barangays, the period shall be 18 months after the
approval thereof.

Sec. 126, LGC. - Local referendum is the legal process whereby

the registered voters of the local government units may approve,
amend or reject any ordinance enacted by the sanggunian.
The local referendum shall be held under the control and
direction of the COMELEC within 60 days in case of provinces
and cities, 45 days in case of municipalities and 30 days in case of
barangays.
The COMELEC shall certify and proclaim the results of the said
referendum

Sec. 127, LGC. - Nothing in this Chapter shall prevent or

preclude the proper courts from declaring null and void any
proposition approved pursuant to this Chapter for violation of the
Constitution or want of capacity of the sanggunian concerned to
enact said measure.

*Compare w/ RA 6735 (Initiative and Referendum Act)

Garcia v. COMELEC (1994)

The Constitution clearly includes not only ordinance but also
resolutions as appropriate subjects of a local initiative. Sec. 32 of
Art. VI provides in luminous language: “The Congress shall, as
early as possible, provide for a system of initiative and
referendum, and the exceptions therefrom, whereby the people
can directly propose and enact laws or approve or reject any act or
law or part thereof passed by the Congress, or local legislative
body…” An act includes a resolution.

Subic Bay Metropolitan Authority v. COMELEC (1996)

As defined, “Initiative” is the power of the people to propose bills
and laws, and to enact or reject them at the polls independent of
the legislative assembly; on the other hand, “Referendum” is the
right reserved to the people to adopt or reject any act or measure
which has been passed by a legislative body, and w/c in most
cases would w/o action on the part of electors become a law.
In initiative and referendum, the COMELEC exercises
administration and supervision of the process itself, making to its
powers over the conduct of elections. These law-making powers
belong to the people, hence the respondent Commission cannot
control or charge the substance or content of legislation.

Acts of Sanggunian

Ordinance and Resolution

New Sounds Broadcasting v. Dy (2009)

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