PUBCORP
Atty. Alex Gamboa
I. INTRODUCTION
Brief History
Public Corporation
 An entity formed and organized for the government as a
portion of the state (Sec 6, LGC)
 Juridical persons include the state and its political
subdivision (Art. 37 & 44, Chap 3, Book 1, NCC)
Municipality of Catbalogan v. Director of Lands
 Land of the court house = public property
 A political subdivision has an independent juridical
entity. As a political entity, it exercises both
governmental and proprietary functions
 A municipality has both a governmental and proprietary
function
 Properties owned by municipality
o Public – for public purpose
o Patrimonial – for raising revenue
Mondano v. Silvosa
 Criminal action for an admin complaint; personal
criminal liability is different from discharge of
responsibility as mayor
 Provincial governor can only investigate mayor on crime
relating to him being mayor (not for rape)
Magtajas v. Pryce Properties
 Ordinances should not contravene statues
 National government over LGUs
Trisha Ruzol
o You can’t make some illegal to legal in your LGU
and vice versa (ex. Vico wanted to allow tricycles
in Pasig during COVID-19, Du30 said no)
 Delegate cannot be superior over principal (congress)
because Congress gives power and delegation
 Ordinances in question contravene PD 1869 and the
public policy embodied therein insofar as they prevent
PAGCOR from exercising the power conferred on it to
operate a casino in Cagayan de Oro City
Constitution
Art. VII, Sec. 1, 17
 Executive power is vested in the President
 President shall have control of all executive dept,
bureaus, and offices
a. Does not apply to LGUs = general supervision
Province of Negros v. COA
 Healthcare insurance
 LGU can use surplus funds to their discretion (fiscal
autonomy)
Art. X, Sec 1-14
 Provinces, cities, municipalities, barangays, and
autonomous regions
 Shall enjoy local autonomy
 Congress to enact LGC
a. Responsive and accountable LGU
b. System of decentralization

c. Recall, initiative, and referendum
 President = exercises general supervision
 LGU has power to create its own sources of revenue, levy
tax and fees
 LGU has just share in national taxes and equitable share
in proceeds of national wealth
 Term of elective local officials = 3 years, no more than 3
consecutive terms
a. XPN: barangay officials
 No LGU can be created, divided, merged, abolished etc
Buklod ng Magbubukid sa Lupaing Ramos v. E.M Ramos
 LGU may reclassify lands without intervention of office of
the President
a. EMRASON applied for application = reclassified
from agricultural to non-agricultural land
 HLURB is tasked to provide technical assistance in the
formulation of zoning ordinance
 Vested right theory
Holy Trinity Realty v. Dela Cruz
 An ordinance is required in order to reclassify
agricultural lands and may only be passed after public
hearing
 Resolution
a. Declaration of opinion of lawmaking body
(temporary)
 Ordinance
a. Required to reclassify agricultural lands (in this
case, no showing that land had agri activity)
PUBCORP
Atty. Alex Gamboa
Trisha Ruzol
b. + Public hearing (no showing in this case)
Kulayan v. Gov. Tan
 Governor cannot exercise commander-in-chief powers of
the President (solely vested on President)
Art. XVIII, Sec 9
 A sub-province continues to exist and operate until it is
converted into a regular province/ its component
municipalities are reverted to mother province
Local Government Code
Extent of Application – Sec. 4, LGC
 LGC applies to all provinces, cities, municipalities,
barangays, and political subdivisions
 All under executive; are municipal corporations
Rules of Interpretation – Sec. 5, LGC
 Construed in favor of local autonomy
 In favor of devolution
 Tax ordinance = strictly against LGU, liberal against
taxpayer
 General welfare provision = liberally construed
Harmonization of laws
 Zoning ordinance may prevail over national law (CARP)
if local ordinance was enacted prior to effectivity of
national law (Davao New Town v. Sps Espino)

 Ordinances must conform with existing laws (Veloso v.
COA)
Declaration of Policy – Sec. 2, LGC
 Local autonomy
a. Decentralization
 Accountability
a. Recall, initiative, referendum
 Periodic consultation
Devolution (Sec 17, 4e, i, LGC)
 Act of conferring power to LGU
 Efficient delivery of services
 Government confers power to LGUs for basic services:
agriculture, health, tourism, building of schools
 Transfer of assets to who has power to deliver basic
services
Decentralization (Sec 2, LGC)
 System, framework, general term for devolution
 Decision of the central government to empower its
subordinates to exercise authority, a delegated power
a. Political decentralization = devolution
 transfer of powers, responsibilities, and
resources from government to the LGUs
for the performance of certain functions
 to make them self-reliant and improve
their capabilities
PUBCORP
Atty. Alex Gamboa
Trisha Ruzol
b. Administrative decentralization =
deconcentration
 delegation of authority and responsibility
from the national office to the regional
and local offices
 ex. Local school boards, health boards
c. Fiscal decentralization
 LGU has the power to create own sources
of revenue in addition to their share in
national taxes
 Power to allocate accordance with their
priorities
d. Policy/decision-making decentralization
 Exclusive authority to make decisions on
at least 1 policy issue
Pimentel v. Executive Secretary Ochoa
 The implementation of a program of national
government under the GAA does not violate local
autonomy
 National government has not relinquished all powers to
LGUs but has only delegated powers
Overview, Local Governments
Art. X, Sec 2, 4
 Sec. 2 – local autonomy
 Sec. 4 – general supervision
Sec 25, LGC

 General supervision of President on LGUs
 National agencies with project implementation functions
will coordinate with LGU
 Upon request of LGU, President can direct a national
agency to provide assistance to LGU
Province of Batangas v. Romulo
 Share in IRA (internal revenue allotment) must be
released without any condition = local (admin and fiscal)
autonomy
II. PUBLIC CORPORATIONS
Concept
 Created by the state as its own device and agency for the
accomplishment of parts of its own public works
 Created by law
LGUs
 Barangay > Municipality > City > Province > Autonomous
Region
 LGUs exercise local governance over inhabitants
 An agency of the state for assistant in civil government of
the country for regulation of local and internal affairs
Greenhills East Association v. EGI
 A barangay can exercise regulatory powers but Office of
the Mayor may overrule such action
PUBCORP
Atty. Alex Gamboa
Trisha Ruzol
 Local legislative body may enact ordinances but
barangay may overrule such action
 Hierarchy of pubcorps
Public Corp vs. GOCC
 Corporate form but no government functions
NAWASA v. NWSA Union
 GOCCs are agencies of the State for limited purpose to
take charge of some public or state work other than
community work
Classifications
1. Quasi-corporations
 State agencies having corporate form but with merely
independent powers but under control of the state
 Has both governmental and police functions
2. Municipal corporations
 Is a body corporate and politic organized for the
government of a definite locality
 To regulate and administer internal affairs of a locality
 Assist in the civil government of the country
a. De jure – organized by law considering
population, area, and income
b. De facto – exists in fact but not in law (has defects
in creation)
i. Collateral attack not allowed
Municipality of San Narciso v. Mendez
 PUBCORP
Atty. Alex Gamboa
Trisha Ruzol

 A law creating an LGU by a former president is on its face Vilas v. City of Manila
defective but the transitory provision under the LGC
provides for a curative measure to transform the LGU  Juristic identity of the city is not affected by change of
into a de jure political subdivision sovereignty. Liability of old city attaches to new city
 Operative fact doctrine must be applied  Unless there is a clear showing that a political
a. Even if unconstitutional, the law recognizes the subdivision is abolished, the presumption is that it
effects of such act continues to have its juridical personality and can be held
liable for its subsisting obligations
Requisites
Elements of a loc gov
1. Apparently valid law under which corporation may be
formed 1. Legal creation or incorporation
2. Attempt in good faith to organize the corporation 2. Corporate name
3. Colorable compliance with law 3. Population
4. Assumption of corporate powers 4. Territory

III. LOCAL GOVERNMENT Requirements for creation, conversion, division, merger,

dissolution
Nature
1. Under Consti (Sec. 10, Art. 10)
Sec. 15 of LGC a. No LGU can be divided, merged etc
b. XPN
 LGU has a political and corporate nature i. In accordance with LGC
 Dual function: governmental and proprietary function ii. Via a plebiscite in the political unit
2. General Reqs
Homeowners Association of Talayan v. JM Tuason
a. Applicable to all LGUs
 Donation of common areas in a private subdivision to a b. Law or ordinance
local government unit must be perfected with c. Plebiscite
acceptance. (The QC govt did not accept and notarize the d. Election of officials
deed of donation) 3. Creation of LGU is legislative in nature
 Every LGU enjoys powers as a juridical entity (law/ordinance)
a. Law

i. Enacted by Congress for provinces, cities,
municipalities, and political subdivisions
b. Ordinance
i. Passed by the Sangguniang
Panlalawigan/Panlunsod (barangay
within its jurisdiction) (Sec. 6, LGC)
ii. S.Panlalawigan nneeds recommendation
of S. Bayan is needed (Sec. 385, LGC)
4. Conduct of Plebiscite
a. Role of COMELEC
i. Conducted within 120 days from date of
effectivity of law/ordinance unless law
fixes another day (Sec. 10, LGC)
Cagas v. COMELEC
 The COMELEC has residual power to conduct a plebiscite
even beyond the deadline prescribed by law.
When Plebiscite is required
 When LGU is created, divided, merged, abolished, altered
(Sec. 10, LGC)
b. Conversion
i. Income
ii. Population
iii. Land area
Tobias v. Abalos
 Convert municipality to city of Mandaluyong (creation of
a new legislative district)
PUBCORP
Atty. Alex Gamboa
Trisha Ruzol
 Complies with the “one-city-one representative” proviso
of the Constitution
 Only inhabitants of LGU being upgraded are required to
participate in plebiscite
c. Downgrading – from independent component
city to component city
Miranda v. Aguirre
 Downgrading of Santiago, Isabela Plebiscite is still
required when downgrading
d. Upgrading – component city to HUC
Gov. Umali v. COMELEC
 Upgrade Cabanatuan from a component city to HUC.
LGUs whose boundaries are to be altered and whose
economy would be affected are entitled to participate in
the plebiscite. All registered voters of Nueva Ecija are
allowed to participate in plebiscite and not just those in
Nueva Ecija because they stand to be affected by the
change.
When Plebiscite is not required
e. Legislative Districts
Bagabuyo v. COMELEC
 Legislative districts are not political subdivisions
 Apportionment – determination of # of reps to be sent to
legislative body

 Reapportionment – every 5 years (from census)
 Apportionment/Reapportionment = under Art VI, Sec 5
 Compare to Tobias v. Abalos
 Conversion v. reapportionment
o Conversion – income and population/land area –
Art. X
o Reapportionment – population - Art. VI
City
- 250k population
Province
- No need for population req (given when created)
f. Administrative Regions
Abbas v. COMELEC
 Administrative regions are not territorial or political
subdivisions
 Power to merge and create admin regions is vested in the
President
 Merger of provinces that did not vote to be included in
the ARMM do not require a plebiscite
Plebiscite Requirement
Sec. 10, LGC
 In creating, division, merger, and abolition requires 2/3
votes in a plebiscite
 Conducted by the COMELEC within 100 days from date of
effectivity unless law fixes another date
Samson v. Aguirre
PUBCORP
Atty. Alex Gamboa
Trisha Ruzol
 In creating a city, all constituents must ratify the law thru
a plebiscite
5. Factors to Consider
a. Population
 A duly-certified census which indicates the total number
of inhabitants within the territorial jurisdiction of the
LGU is essential in the creation of the LGU (Sec. 7b, LGC)
 Chief Statistician of the PSA is the only person authorized
to issue population cert for
o All barangays in MM and Highly Urbanized Areas
o Municipalities
o City
o Provinces
Aldaba v. COMELEC
 Congress must ensure that all statutory requisites in
amending the charter of Malolos City including the
creation of a new congressional district are complied
with
 In case of the population requirement, a certification as
to census of population must be issued by the public
officer designated by law. The population must be based
on actual number of inhabitants.
Aquino & Robredo v. COMELEC
 The creation of new congressional districts in a province
need not meet the 250,000 inhabitant threshold. The
threshold applies only to HUCs

 A congressional district is not a political subdivision = no
need for plebiscite
b. Income
 Income must be sufficient to provide essential
government services (Sec. 7a, LGC)
 Average annual income
o Income accruing to the general fund, exclusive of
special funds, transfers, and non-recurring
income
o For municipalities (Sec. 442, LGC)
 At least 2.5M for the last 2 consecutive
years
 Population of at least 25k
 Contiguous territory of at least 50 sq. km
o For cities (Sec. 450, LGC)
 At least 100M income for last 2
consecutive years and
 Contiguous territory of at least 100 sq. km
OR
 Population of at least 150k
o For provinces (Sec. 461, LGC)
 Income of not less than 20M and
 Contiguous territory of at least 2000 sq
km OR
 Not less than 250k population
Alvarez v. Guingona
 IRA forms part of the average annual income of the LGU
League of Cities
PUBCORP
Atty. Alex Gamboa
Trisha Ruzol
 The new requirements under a congressional act will not
affect the cityhood laws which are pending prior to the
effectivity of the new law. Thus, all measures introduced
prior to the new law are exempt from the higher income
requirement
 April 2011
o The two-year average income of an LGU must be
certified by the Secretary of Finance. The share in
IRA forms part of income of a LGU
o This ruling has been modified by Gov Mandanas
v. Ochoa
c. Land area
 Properly identified by metes and bounds with technical
descriptions
 Sufficient to provide basic services (Sec. 7c, LGC)
 Sec. of DENR – certify land area of LGU
o Municipality – 50 sq km
o City – 100 sq km
o Province – 2000 sq km
Navarro v. Ermita
 The creation of Dinagat Island as a province is valid
despite the fact that it did meet the land area
requirement. Island provinces need not meet the 2,000
sq. km. requirement because by their very nature islands
do not form a mass that could be contiguous and
adjacent.
Province of Palawan v Secretary of Energy
 PUBCORP
Atty. Alex Gamboa
Trisha Ruzol

 LGU territorial jurisdiction MMDA v. Bel-Air Village

o Only refers to land area
 MMDA has no law-making powers because it is not a
o Jurisdiction can only be enforced within the
political subdivision
15km limit of municipal waters, after that, it is
 They cannot enforce RA 7924 for Bel-Air to open its
under jurisdiction of national government
roads because they are not authorized with police power
 National territory
or legislative powers
 Camago-Malampaya is outside the territorial jurisdiction
 7 basic services (PUSH-DTF)
of Palawan
o Development planning
o Transport and trac management
6. Creation of autonomous regional bodies
o Solid waste disposal and management
Art X, Sec. 1 o Flood control and sewerage management
o Urban renewal, zoning and land use planning,
 RP has provinces, cities, municipalities and barangays
and shelter services
 There shall be autonomous regions in Muslim Mindanao
o Health and sanitation, urban protection and
and Cordilleras
pollution control
Art.X, Sec. 4 o Public safety

 The President shall exercise general supervision over MMDA v. Garin

LGUs
 MMDA has no police powers and cannot impound an
Art.X, Sec. 13 illegally parked vehicle nor can it confiscate the driver’s
license of an individual
 LGUs may group themselves, consolidate, or coordinate  The LGU must deputize MMDA enforcers to implement
their efforts,, services, and resources for purposes the Traffic Ordinance of a local government unit within
commonly beneficial to them its territorial jurisdiction
 Sec. 5f of RA 7924 grants the MMDA with the duty to
Art.X, Sec. 14
enforce existing traffic rules and regulations
 President shall provide for regional development
MMDA v. Viron
councils
 PUBCORP
Atty. Alex Gamboa
Trisha Ruzol

 MMDA cannot exercise powers exclusively reserved by Sema v. COMELEC

law to a national agency. The institution of a
comprehensive traffic management scheme is within the
powers of the DOTC
 The issuance of an admin order of the President
designating MMDA to adopt and implement such traffic
scheme is ultra vires
 MMDA has no authority because they get their franchise
from LTFRB; DOTC is the agency who regulates traffic
MMDA v. Trackworks
 MMDA has no power to remove billboards and
advertising materials installed by Trackworks
 Trackworks has an agreement with MRTC under the BLT
agreement
 Non-impairment of contracts – it is a contract between
MRTC and Trackworks = you can alter that
 Under Art. 10, Sec. 11 of the Constitution, MMDA’s
powers are limited to the formulation, coordination,
regulation, implementation, preparation, management,
monitoring, setting of policies, installing a system, and
administration. Nothing in Republic Act No. 7924 granted
MMDA police power, let alone legislative power.
Disomangcop v. Datumanong
 The grant of certain executive powers in ARMM must be
respected by a national agency. The Secretary of DPWH is
precluded from making appointment or designations
within the territorial jurisdiction of ARMM
 The creation of political subdivisions vested by the
Constitution in Congress cannot be delegated.
 The SC struck down a provision in the Organic Act
creating ARMM which enabled the ARMM Legislative
Assembly to create a province. This is an invalid
delegation of power
Ordillo v. COMELEC
 An autonomous region cannot be created with only one
province
 The province of Ifugao, being the only province which
voted favorably for the creation of the Cordillera
7. Division and Merger
Sec. 8, LGC

8. Abolition
Sec. 9, LGC
IV. LGU AND LOCAL AUTONOMY
Principle of Local Autonomy = decentralization
 Sec. 2 of LGC
o Principal objective of empowering LGUs
o Shall enjoy genuine and meaningful local
autonomy
 PUBCORP
Atty. Alex Gamboa
Trisha Ruzol

Declaration of Policy (Sec. 2, LGC) Gov. Mandanas v. Exec Sec

 More responsive and accountable local government Decentralization

structure through decentralization
 Accountability of LGUs through recall, initiative and  Administrative
referendum o When the central government delegates admin
 Periodic consultations with LGUs, NGOs, people’s orgs powers to political subdivisions = more
and concerned sectors before any project is implemented responsive

Decentralization and Devolution, distinguished
Devolution
 Act by which the national gov’t confers power and
authority upon various LGUs to perform specific
functions and responsibilities (Sec. 17, LGC)
Province of Rizal v. Exec Sec
 Implementation of a program implemented by national
government must be done in consultation of the LGU
Limbona v. Magellin
 Political
o Abdication of political power in favor of the LGUs
declared to be autonomous regions
o LGU is no longer accountable to the national
government but to its constituency
Ganzon v. CA
V. Settlement of Boundary Disputes
Sec. 118, LGC

Pimentel v. Aguirre Sec 15-19, IRR

 No conditions may be imposed on the release of IRA City of Pasig v. COMELEC

Batangas CATV Inc. v. CA Municipality of Kananga v. Madrona

 The regulation of businesses in the locality is expressly VI. GENERAL POWERS AND ATTRIBUTES OF LGUS
provided in the LGC Sources of Powers
Province of Palawan v. Sec. of Energy 1. Constitution
 PUBCORP
Atty. Alex Gamboa
Trisha Ruzol

2. Charter New Sun Valley Homeowners v. Sangguniang Brgy.

3. LGC
4. Other laws City of Manila v. Chinese Community

Kinds of Power B. Eminent Domain

A. Police Power

General Welfare Clause

 Sec. 16, LGC

Rimando v. Naguilan Emission Testing Center

Art. 1267, NCC

SPARK v. QC

Holy Trinity Realty & Development Corp v. Dela Cruz

Social Justice Society v. Atienza, Jr,

Lucena Grand Central Terminal v. JAC

White Light Corp v. City of Manila

Albon v. Fernando

Boracay Foundation v. Province of Aklan

Power to Open and Close Roads

 Sec 21, LGC

 Art. 34-45, IRR

Factors to consider in vacating a street