C2017

Local Government Law

Midterms Reviewer
C2017 / LAW 154 / Local Government Law / Midterm Reviewer

Table of Contents
I. HISTORICAL BACKGROUND OF LOCAL GOVERNMENTS IN THE PHILIPPINES .......................................................................................... 3
HISTORY OF PHILIPPINE OF LOCAL GOVERNMENT AND ADMINISTRATION (TAPALES) ................................................................................ 3
II. NATURE AND STATUS ...................................................................................................................................................................... 4
A. MUNICIPAL CORPORATION, LOCAL GOVERNMENT, DEFINED, LOCAL GOVERNMENT INTERCHANGEABLE WITH MUNICIPAL
CORPORATIONS............................................................................................................................................................................................... 4
B. NATURE AND STATUS OF MUNICIPAL CORPORATIONS ............................................................................................................................. 4
C. KINDS OF MUNICIPAL CORPORATIONS....................................................................................................................................................... 4
D. DUAL NATURE ............................................................................................................................................................................................. 5
1. DUAL NATURE AND FUNCTIONS OF MUNICIPAL CORPORATIONS ......................................................................................................... 5
2. PURPOSE .................................................................................................................................................................................................. 5
3. GENERAL POWERS AND ATTRIBUTES ..................................................................................................................................................... 6
III. GENERAL PRINCIPLES AND POLICIES...............................................................................................................................................14
A. LOCAL AUTONOMY ..................................................................................................................................................................................... 15
B. DECENTRALIZATION ................................................................................................................................................................................... 17
IV. CREATION OF MUNICIPAL CORPORATIONS ......................................................................................................................................18
A. NATURE AND POWES TO CREATE MUNICIPAL CORPORATION ................................................................................................................. 18
B. CREATION OF MUNICIPAL COPORATIONS ................................................................................................................................................. 18
1. CONSTITUTIONAL PROVISIONS ............................................................................................................................................................... 18
3. REVISED ADMIN CODE, SEC 68. ............................................................................................................................................................. 20
4. MUNICIPAL CORPOATION BY PRESCRIPTION ........................................................................................................................................ 21
5. DE FACTO MUNICIPAL CORPORATIONS ................................................................................................................................................. 21
6. ATTACK AGAINST VALIDITY OF MUNICIPAL CORPORATIONS ................................................................................................................ 21
7. BEGINNING OF CORPORATE EXISTENCE OF MUNICIPAL CORPORATIONS............................................................................................ 21
V. ALTERATION AND DISSOLUTION OF MUNICIPAL CORPORATIONS ...................................................................................................... 22
A. NATURE OF POWER ................................................................................................................................................................................... 22
1. NECESSITY FOR DEFINING TERRITORIAL BOUNDARIES ........................................................................................................................ 22
B. MANNER OR MODE .................................................................................................................................................................................... 22
C. EFFECTS ..................................................................................................................................................................................................... 23
1. EFFECTS OF ANNEXATION OR CONSOLIDATION OF MUNICIPAL CORPORATIONS............................................................................... 23
2. EFFECTS OF DIVISION OF MUNICIPAL CORPORATIONS ........................................................................................................................ 23
D. WHEN THERE IS NO DISSOLUTION............................................................................................................................................................ 23
1. NON-USER OR SURRENDER OF CHARTER ............................................................................................................................................. 23
2. FAILURE TO ELECT MUNICIPAL OFFICERS ............................................................................................................................................. 23
3. CHANGE OF SOVEREIGNTY .................................................................................................................................................................... 23
VI. PLEBISCITE REQUIREMENTS .......................................................................................................................................................... 25
VII. GENERAL POWERS OF LOCAL GOVERNMENTS ............................................................................................................................... 26
A. POLICE POWER .......................................................................................................................................................................................... 26
GENERAL WELFARE ................................................................................................................................................................................... 26
CLOSURE AND OPENING OF ROADS ......................................................................................................................................................... 29

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B. EMINENT DOMAIN....................................................................................................................................................................................... 31
RULE 67 EXPROPRIATION ........................................................................................................................................................................... 31
C. TAXATION AND FISCAL ADMINISTRATION ................................................................................................................................................ 35
1. LOCAL TAXATION .................................................................................................................................................................................... 35
2. REAL PROPERTY TAXATION ................................................................................................................................................................... 39
3. SHARES OF LGUS IN THE PROCEEDS OF NATIONAL TAXES ................................................................................................................... 41
4. CREDIT FINANCING, LOANS, CREDITS AND OTHER FORMS OF INDEBTEDNESS OF LGUS .................................................................. 42
5. LOCAL FISCAL ADMINSTRATION............................................................................................................................................................ 42
VIII. LOCAL GOVERNMENT UNITS ........................................................................................................................................................ 44
A. THE BARANGAY ......................................................................................................................................................................................... 46
1. KATARUNGANG PAMBARANGAY............................................................................................................................................................ 47
2. SANGGUNIANG KABATAAN.................................................................................................................................................................... 50
B. THE MUNICIPALITY..................................................................................................................................................................................... 53
C. THE CITY ..................................................................................................................................................................................................... 54
C. THE PROVINCE ........................................................................................................................................................................................... 54
E. APPLICATION OF THE CODE TO LGU IN AUTONOMOUS REGION ............................................................................................................. 54
F. THE AUTONOMOUS REGION IN MUSLIM MINDANAO ............................................................................................................................... 54
G. CORDILLERA ADMINISTRATIVE REGION ................................................................................................................................................... 56
H. THE METROPOLITAN MANILA DEVELOPMENT AUTHORITY ......................................................................................................................57
IX. MUNICIPAL OFFICERS AND EMPLOYEES ......................................................................................................................................... 58
A. ELECTIVE OFFICIALS .................................................................................................................................................................................. 58
1. QUALIFICATIONS ..................................................................................................................................................................................... 58

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I. HISTORICAL BACKGROUND OF LOCAL GOVERNMENTS
IN THE PHILIPPINES
History of Philippine of Local Government and
Administration (Tapales)
The Malolos Constitution provided for the creation of the municipal
assemblies to administer the affairs of the towns and provincial assemblies
for the provinces. It provided for autonomous local units but recognized a
certain degree of supervision or intervention from the central government.
Local Government in the Post-War Era
’35 Constitution and Act Nos. 82 and 83 which were incorporated the
Administrative Code became the legal basis for the system of the local
governance in the country even after political independence from America in
1946, and until the Constitution was revised and Martial Law decreed in 1972.
The ’35 Constitution mentioned local government only in connection with the
President’s power of general supervision in Art 7 Sec 10. This provision was a
result of a compromise. It provides that Presidential supervision over local
government “as may be provided by law”.
Thus, while the President has the power of general supervision, Congress
may determine the parameters of the supervision through legislation.
Exercising its authority, Congress passed several measures affecting local
government:
 RA 2259 (Omnibus Law on Cities) - Provides for some uniformity in the
governance of cities
 RA 2370 as amended by RA 3590 (The Barrio Charter) - Provided for the
election of barrio officials
 RA 2264 (Local Autonomy Act) – Pertained to greater taxing powers to
cities and municipalities
 RA 5185 (The Decentralization Act) – Authorized local governments to
supplement the national government’s efforts in agricultural extension
and rural health work.
 Municipalities were governed by Act No.82 and the provinces, by Act No.
83. The cities were governed by their own charters which were enacted by
Congress
 ’35 Constitution and Act No.82 and 83: Legal Basis of Local Gov’t ’46-’72.
Supervision was delegated to the Department of the Interior. However, The
department was abolished after the notorious Presidential elections of 1949.
During this time the LGUs had the following main sources of revenue to tap:
(1) Taxation, including IRA from national government; real property tax,
municipal or city taxes and other taxes
(2) Leasing public utilities such as markets, waterworks, electricity, and
transportation;
(3) Intergovernmental revenue sources, including direct national aid and
other types of assistance; and
(4) Miscellaneous sources, like tuition fees and sale of bonds
Local Government Under Martial Law
The government embarked upon an Integrated Reorganization Plan. It had
the following features which would affect local governments:
(1) A regional delineation of 11 regions, where a regional center was
located for each, to house the deconcentrated agencies
(2) Department of Local Government and Community Development which
would put together under one roof of agencies having direct
relationships with local government
Bautista, Gastanes, Lopez, Sulit
In the ’71 Constitutional Convention in the draft Constitution a separate
article on local government was provided giving emphasis on the process of
local governance. The article also mandated that congress should enact a
Local Government Code which would serve as guide in the organization,
powers and functions of local authorities.
The Constitution was ratified in early ’73 by citizen assemblies. The President
named the barrios into barangays and designated 15 year-old and older
barangay residents as members of citizen assemblies
Here, there was also a creation of a region-wide government for Metropolitan
Manila it was the result of studies and proposals made by urban experts who
prepared different organization models.
Taken together with PD 826 (alters membership of local development
councils which expended the membership of local councils and made many
of Metro Manila councils too big and the strong personality of Metro Manila
Governor, PD 824 brought about a weakening of the cities and municipalities
of Metro Manila. Moreover, the MMC derived its funds for the integrated
services from their contributions in the amount of 20% each of their annual
income, thus crippling the delivery of their local basic services.
PD 826 renamed local councils into Sanggunians including the sectoral
representatives, barangay captains, kabataang barangay.
In ’83 the Local Gov’t Code BP 337 was enacted. Noteworthy of all the
presidential decrees were: PD 144 which pertained to the sharing of internal
revenue allotments, along with PD 231 or the Local Tax Code which
enumerated te revenue-raising powers and fund sources of each level of local
authority and PD 464 the decree on local fiscal taxation. These and other
laws on local government were codified in BP 337.
People Power at EDSA
Pimentel became senator in ’87 he started work on the new LGC. The Code
was not enacted until congress reached almost the end of its first term. It was
signed into law on 10 Oct 1991 and it was implemented in 1992.
Its most important feature is the decentralization of 5 basic services- health,
agriculture, social welfare, public works, and environmental and natural
resources. The decentralization mandated in’91 Code goes beyond the
devolution of local services. It increased participation in the process of
governance and local development through 1) sectoral representation in the
local legislative councils; 2) membership of non-governmental
organizations’ representatives in local boards and committees; 3)
participation in the political exercises like plebiscite, referendum, and recall;
and 4) involvement in the planning and implementation of development
programs
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II. NATURE AND STATUS
A. MUNICIPAL CORPORATION, LOCAL
GOVERNMENT, DEFINED, LOCAL GOVERNMENT
INTERCHANGEABLE WITH MUNICIPAL
CORPORATIONS
Alvarez v Guingona
Facts: RA 7720 was passed converting the municipality of Santiago
into an ICC. The petitioners are assailing the constitutionality of the
law on the ground that the income of Santiago, after deducting the
IRA, does not meet the income requirement for conversion. Court
ruled that IRA is included in the computation for the income
requirement
Held: the IRA regularly and automatically accrues to the local
treasury without need of any further action on the part of the local
government unit. It is the local government’s source of income so it
is part of the income requirement.
A Local Government Unit is a political subdivision of the State
which is constituted by law and possessed of substantial control
over its own affairs. Remaining to be an intra-sovereign subdivision
of one sovereign nation, but not intended, however, to be an
imperium in imperio, the local government unit is autonomous in the
sense that it is given more powers, authority, responsibilities and
resources.
Basco v PAGCOR
Facts: Petitioners filed a petition seeking to annul the PAGCOR
charter for being contrary to morals, public policy and order. Also
that it is a waiver of a right prejudicial to Manila City government’s
right to impose taxes and license fees, which is recognized by law 2)
this is in contravention of constitutionally enshrined principle of
local autonomy 3) it violates the equal protection clause. Court ruled
for PAGCOR.
Held: SC upheld the validity of the charter. It does not contravene
the principle of local autonomy because municipal corporations are
mere creatures of Congress, which the power to create and abolish
municipal corporations due to its general legislative powers.
Congress thus may control Local Governments. If Congress can
grant the City the power to tax, then it may provide exemptions or
even take back the power. The principle of local autonomy does not
make local governments an imperium in imperio. It is a measure for
decentralization of the functions of the government.
B. NATURE AND STATUS OF MUNICIPAL
CORPORATIONS
Bautista, Gastanes, Lopez, Sulit
C. KINDS OF MUNICIPAL CORPORATIONS
Provisions
New Civil Code
Article 44. 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.
Article 45. Juridical persons mentioned in Nos. 1 and 2 of the
preceding article are governed by the laws creating or recognizing
them.
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.
Article 46. 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 organization.
(38a)
Article 47. 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.
Notes
(1) Municipal Corporation Proper
 Generally term refers to incorporated cities, towns, or villages
invested with the power of local legislation
 The power of local government is the distinctive purpose and
distinguishing feature of a municipal corporation
(2) Quasi-Municipal Corporation
 This is another terms for quasi- corporation
 Quasi-Corporation are public corporations created as agencies of
the state for a narrow and limited purpose
o Unlike other public corporations they are not possessed of the
powers and liabilities of self-governing corporations
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o Their power generally related to matters of State, as political subdivision of the national government and as a corporate
distinguished from municipal concern entity representing the inhabitants of its territory.
o They possess a limited number of corporate powers and have
a low grade of corporate existence Breakdown of Sec 15, LGC:
o The main purpose of their creation is to aid the state in, or to Every LGU created or recognized under the LGC is a body politic and
take charge of, some public, or state work other than corporate
community government, for the general welfare A. Endowed with powers to be exercised in conformity with
o EXAMPLES: NPC, NAWASA, DBP, Boy Scouts of the PH law
B. It shall exercise powers as:
(3) Distinguish Municipal Corporation Proper from Quasi-Municipal o Political Subdivision of the National Government
Corporation o Corporate Entity representing the inhabitants of
Municipal Corporation Proper Quasi- Municipal Corporation/ its territory
Quasi- Corporation
A public corporation Also a public Corporation 2. Purpose
Has the power of local Agents of the state for limited
government and narrow, purposes
It is created for a 2-Fold purpose:
Has the powers and liabilities Invested with a few of
of self-government characteristics of corporates Governmental Private
existence for purpose of civil It is a representative of the Its act in a similar category as a
administration State for the government of business corporation,
Called into existence either at Sometimes involuntary the territory and the performing functions not
the direct solicitation of by the corporations, created by the inhabitants within the strictly governmental or
free consent of the persons sovereign legislative power of municipal limits political
composing them its own sovereign will without It exercises by delegation a It stands for the community in
solicitation, consent or part of the sovereignty of the the administration of local
concurrent action of the State affairs which is wholly beyond
people who inherit them the sphere of the public
purposes for which the
(4) Distinguish Municipal Corporation from Public Corporation governmental powers are
conferred
 Public Corporations are those formed or organized for the
government of a portion of the State
Villas v City of Manila
 Those organized for political purposes, with political powers to be
Facts: Manila City, under Spanish rule, owed debts to Villas, et al.
exercised for purposes connected with the public good in the
Villas now claims the debts against Manila, which is now under
administration of civil government; an instrument of the
American rule. Manila asserts that it is a separate entity from the
government, subject to the control of the legislature and its
Spanish Manila and should not be made liable for the latter’s
members, officers of the government, for the administration or
liabilities. US SC rules in favor of Villas.
discharge of public duties as in the case of cities and towns.
(Regents of University v Williams)
Held: Municipal governments have a dual character – governmental
 All municipal corporations are public corporations but not all
and private/business. In view of this dual character, there is no
public corporations are municipal corporations. Municipal
reason for presuming their dissolution of municipal corps. as a mere
Corporations are a subset of public Corporations.
consequence of territorial cession. With respect to laws affecting
 A non-municipal public corporations is one created by the state (among others) possession, use, and transfer of property, which are
as its own agency or instrumentality to carry-out a certain public
strictly of a municipal character, the general rule is that a change of
purpose other than the local government carried on in a government leaves them in force until, by direct action of the new
designated portion of its territory by municipal corporations
government, they are altered or repealed

D. DUAL NATURE Lidasan v COMELEC

Facts: RA 4790, an act creating the Municipality of DIanaton in the
1. Dual Nature and Functions of Municipal Province of Lanao Del Sur, was being challenged as unconstitutional
Corporations for incorporation 12 barrios of the Province of Cotabato. The
Supreme Court declared the RA null and void for having a
misleading title since the title did not reflect the transfer of a
Provisions sizeable portion of one province to another.

SECTION 15. Political and Corporate Nature of Local Government Units. Held: With regard to the argument that the statute could be
Every local government unit created or recognized under this Code salvaged by removing the 12 provinces outside Lanao Del Sur, the
is a body politic and corporate endowed with powers to be exercised SC declared that it could not since it was the intent of the legislature.
by it in conformity with law. As such, it shall exercise powers as a It further stated that Municipal corporations perform twin functions.

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Firstly, they serve as an instrumentality of the State in carrying out
the functions of government. Secondly, they act as an agency of the
community in the administration of local affairs. It is in the 2nd
character that they are a separate entity acting for their own purposes
and not a subdivision of the State. The Court considered income and
population of the remaining 9 states and doubted if they could
maintain an independent municipality.
Republic of the PH v City of Davao
Facts: The City of Davao filed an application for a Certificate of Non-
Coverage for its proposed project, the Davao City Artica Sports
Dome. The Environmental Management Bureau denied the
application, finding that the 7 proposed project was within an
environmentally critical area. Davao City filed a petition for
mandamus and injunction with RTC Davao for the issuance of the
CNC, which was granted by the court.
Held: The SC held that the City of Davao was entitled to a CNC. The
Court found that Davao City cannot claim exemption from the
coverage of P.D. 1586 (Environmental Impact Statement System).
As a body politic and corporate endowed with powers to be exercised
by it in conformity with law, it performs dual functions:
governmental and proprietary. As an LGU it has the duty to promote
the people’s right to a balanced ecology. However, it is still entitled
to the CNC as the trial court found that the Artica Sports Dome is
not within an environmentally critical area, nor is it an
environmentally critical project.
3. General Powers and Attributes
Provisions
Local Government Code (PD 7160)
SECTION 6. Authority to Create Local Government Units.
A local government unit may be created, divided, merged,
abolished, or its boundaries substantially altered either by law
enacted by Congress in the case of a province, city, municipality, or
any other political subdivision, or by ordinance passed by the
sangguniang panlalawigan or sangguniang panlungsod concerned
in the case of a barangay located within its territorial jurisdiction,
subject to such limitations and requirements prescribed in this Code.
Breakdown of Sec 6, LGC:
An LGU may be created, divided, merged, abolished, or its
boundaries substantially altered either by:
(1) Law enacted by congress- for province, city, municipality, or any
other political subdivision, or
(2) Ordinance by Sangguiang Panlalawigan or Sangguniang
Panglungsod- for barangay located within its territorial
jurisdiction
Subject to limitations and requirements prescribed by LGC
SECTION 7. Creation and Conversion. 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:
Bautista, Gastanes, Lopez, Sulit
(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 two (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 Environment and Natural
Resources (DENR).
Breakdown of Sec 7, LGC:
GEN RULE: Creation of LGU or its conversion from one level to
another shall be based on verifiable indicators of viability and
projected capacity to provide services:
(a) Income
 It must be sufficient to provide for all essential government
facilities and special functions commensurate with population
 Based on acceptable standards
(b) Population- Total number must be within territorial jurisdiction
(c) Land Area
 Must be contiguous UNLESS:
o Comprises of 2 or more islands, or
o Separated by LGU independent of the others
 Must be properly Identified by metes and bounds with technical
descriptions
 Must be sufficient to provide for basic services and facilities
(d) Compliance to these indicators shall be attested to by:
 DOF
 NSO
 LMB
 DENR
SECTION 8. Division and Merger. 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 or units concerned to less than the minimum
requirements prescribed in this Code: Provided, further, That the
income classification of the original local government unit or units
shall not fall below its current income classification prior to such
division.
The income classification of local government units shall be
updated within six (6) months from the effectivity of this Code to
reflect the changes in their financial position resulting from the
increased revenues as provided herein.
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Breakdown of Sec 8, LGC:
Division and Merger shall comply with the same requirements as
creation, Provided:
(1) Division shall not reduce income, population, or land area
(2) Income classification of original LGU shall NOT fall below its
current income classification prior to such division
Income classification of LGU shall be updated within 6mos from LGC
effectivity
SECTION 9. Abolition of Local Government Units. 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
the national agencies mentioned in Section 7 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.
Breakdown of Sec 9, LGC:
An LGU may be abolished when its income, population, or land area
has been irreversibly reduced to less than the minimum standards
prescribed for its creation
 Certified by national agencies in Sec.7 to Congress or to the
Sangguian concerned, as the case may be
Law or ordinance abolishing the LGU shall specify the province, city,
municipality; barangay with which the LGU sought to be abolished
will be incorporated or merged.
It does result in an automatic cessation of the LGU; Congress or the
Sanggunian concerned must pass a law or ordinance for the abolition,
and such must be subjected to a plebiscite (As was said in Sultan
Usman Sarangani v COMELEC)
IMPT: Dissolution does not occur due to:
(1) Non-User or surrender of charter
(2) Failure to elect municipal Officers
(3) Change of Sovereignty
(4) Change of Name
SECTION 10. Plebiscite Requirement. 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 or units directly affected. Said plebiscite shall be conducted by
the Commission on Elections (Comelec) within one hundred twenty
(120) days from the date of effectivity of the law or ordinance
effecting such action, unless said law or ordinance fixes another
date.
Breakdown of Sec 10, LGC:
No creation, dicion, merger, abolition, orsubtantial alteration of
boundaries of LGUs shall take effect UNLESS approved by a majority
of the votes cost in a PLEBISCITE:
(1) Plebiscite called for that purpose
(2) In the Political Unit/s directly affected
(3) Conducted by COMELEC
Bautista, Gastanes, Lopez, Sulit
 Within 120 days from its effectively
 On the date fixed by law or ordinance effecting such action
In Tan v COMELEC the LGUs directly affected should participate in the
plebescite which means the newly created LGU and the parent LGU.
SECTION 11. Selection and Transfer of Local Government Site, Offices
and Facilities.
(a) The law or ordinance creating or merging local government
units shall specify the seat of government from where
governmental and corporate services shall be delivered. In
selecting said site, factors relating to geographical centrality,
accessibility, availability of transportation and communication
facilities, drainage and sanitation, development and economic
progress, and other relevant considerations shall be taken into
account.
(b) When conditions and developments in the local government
unit concerned have significantly changed subsequent to the
establishment of the seat of government, its sanggunian may,
after public hearing and by a vote of two-thirds (2/3) of all its
members, transfer the same to a site better suited to its needs.
Provided, however, That no such transfer shall be made outside
the territorial boundaries of the local government unit
concerned.
The old site, together with the improvements thereon, may
be disposed of by sale or lease or converted to such other use
as the sanggunian concerned may deem beneficial to the local
government unit concerned and its inhabitants.
(c) Local government offices and facilities shall not be transferred,
relocated, or converted to other uses unless public hearings are
first conducted for the purpose and the concurrence of the
majority of all the members of the sanggunian concerned is
obtained.
Breakdown of Sec 11, LGC:
(1) Law or ordinance creating or merging the LGUs shall specify the
seat of government from where governmental and corporate
services shall be delivered; factors to take into account:
 Geographical Centrality
 Accessibility
 Availability of transportation and communication
 Drainage and Sanitation
 Other relevant considerations
(2) When conditions and developments in the LGU have
significantly changed subsequent to establishment of seat of
government, LGU sanggunian may transfer the same to a site
better suited to its needs
 How?
o Public Hearing
o Vote of 2/3 of its members
 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 to such other uses as he Sanggunian may
deem beneficial
(3) Local Government offices and facilities shall NOT be transferred,
relocated, or converted to other uses UNLESS
 Public hearings are first conducted AND
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 Concurrence of MAJORITY of Sanggunian members
This provision concerns itself with the physical location or situs of the
seats or capital of the LGU
SECTION 12. Government Centers. Provinces, cities, and
municipalities shall endeavour to establish a government center
where offices, agencies, or branches of the National Government,
local government units, or government-owned or controlled
corporations may, as far as practicable, be located. In designating
such a center, the local government unit concerned shall take into
account the existing facilities of national and local agencies and
offices which may serve as the government center as contemplated
under this Section. The National Government, local government unit
or government-owned or controlled corporation concerned shall
bear the expenses for the construction of its buildings and facilities
in the government center.
This section, as was said in the case of SAMSON v AGUIRRE, speaks
of the site of government centres, such site can very well also be the
seat of government, “from where governmental and corporate service
shall be delivered.”
SECTION 13. Naming of Local Government Units and Public Places,
Streets and Structures.
(a) The sangguniang panlalawigan may, in consultation with the
Philippine Historical Commission (PHC), change the name of
the following within its territorial jurisdiction:
(1) Component cities and municipalities, upon the
recommendation of the sanggunian concerned;
(2) Provincial roads, avenues, boulevards, thoroughfares, and
bridges;
(3) Public vocational or technical schools and other
postsecondary and tertiary schools;
(4) Provincial hospitals, health centers, and other health
facilities; and
(5) Any other public place or building owned by the provincial
government.
(b) The sanggunians of highly urbanized cities and of component
cities whose charters prohibit their voters from voting for
provincial elective officials, hereinafter referred to in this Code
as independent component cities, may, in consultation with the
Philippine Historical Commission, change the name of the
following within its territorial jurisdiction:
(1) City barangays, upon the recommendation of the
sangguniang barangay concerned;
(2) City roads, avenues, boulevards, thoroughfares, and
bridges;
(3) Public elementary, secondary and vocational or technical
schools, community colleges and non-chartered colleges;
(4) City hospitals, health centers and other health facilities;
and
(5) Any other public place or building owned by the city
government.
(c) The sanggunians of component cities and municipalities may,
in consultation with the Philippine Historical Commission,
Bautista, Gastanes, Lopez, Sulit
change the name of the following within its territorial
jurisdiction:
(1) City and municipal barangays, upon recommendation of
the sangguniang barangay concerned;
(2) City, municipal and barangay roads, avenues, boulevards,
thoroughfares, and bridges;
(3) City and municipal public elementary, secondary and
vocational or technical schools, post-secondary and other
tertiary schools;
(4) City and municipal hospitals, health centers and other
health facilities; and
(5) Any other public place or building owned by the municipal
government.
(d) None of the foregoing local government units, institutions,
places, or buildings shall be named after a living person, nor
may a change of name be made unless for a justifiable reason
and, in any case, not oftener than once every ten (10) years. The
name of a local government unit or a public place, street or
structure with historical, cultural, or ethnic significance shall
not be changed, unless by a unanimous vote of the sanggunian
concerned and in consultation with the PHC.
(e) A change of name of a public school shall be made only upon
the recommendation of the local school board concerned.
(f) A change of name of public hospitals, health centers, and other
health facilities shall be made only upon the recommendation
of the local health board concerned.
(g) The change of name of any local government unit shall be
effective only upon ratification in a plebiscite conducted for the
purpose in the political unit directly affected.
(h) In any change of name, the Office of the President, the
representative of the legislative district concerned, and the
Bureau of Posts shall be notified.
 This provision provides that the Spanlalawigan may change the
name of a component city if done upon the recommendation of the
Sanggunian concerned.
 Spanlungsod changing the name of barangays can only do so upon
recommendation of the Sbrgy concerned.
 Cannot be names 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.
SECTION 14. Beginning of Corporate Existence. 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 therefor by the law or ordinance creating it.
Breakdown of Sec 14, LGC:
When a new LGU is created, corporate existence shall commence:
(1) Upon ELECTION and QUALIFICATION of
(a) Its CHIEF EXECUTIVE, and
(b) Majority of the members of its sanggunian
(2) UNLESS another time is fixed by the LAW or ORDINANCE
creating it
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SECTION 15. Political and Corporate Nature of Local Government Units.
Already discussed earlier.
SECTION 16. General Welfare. 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.
SECTION 17. Basic Services and Facilities.
(a) Local government units shall endeavor to be self-reliant and
shall continue exercising the powers and discharging the duties
and functions currently vested upon them. They shall also
discharge the functions and responsibilities of national
agencies and offices devolved to them pursuant to this Code.
Local government units shall likewise exercise such other
powers 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 herein.
(b) Such basic services and facilities include, but are not limited to,
the following:
(1) For a Barangay:
(i) Agricultural support services which include planting
materials distribution system and operation of farm produce
collection and buying stations;
(ii) Health and social welfare services which include
maintenance of barangay health center and daycare center;
(iii) Services and facilities related to general hygiene and
sanitation, beautification, and solid waste collection;
(iv) Maintenance of katarungang pambarangay;
(v) Maintenance of barangay roads and bridges and water
supply systems;
(vi) Infrastructure facilities such as multipurpose hall, multi-
purpose pavement, plaza, sports center, and other similar
facilities;
(vii) Information and reading center; and
(viii) Satellite or public market, where viable;
(2) For a Municipality:
(i) Extension and onsite research services and facilities related
to agriculture and fishery activities which include dispersal of
livestock and poultry, fingerlings, and other seeding
materials for aquaculture; palay, corn, and vegetable seed
farms; medicinal plant gardens; fruit tree, coconut, and other
kinds of seedling nurseries; demonstration farms; quality
control of copra and improvement and development of local
Bautista, Gastanes, Lopez, Sulit
distribution channels, preferably through cooperatives;
inter-barangay irrigation systems; water and soil resource
utilization and conservation projects; and enforcement of
fishery laws in municipal waters including the conservation
of mangroves;
(ii) Pursuant to national policies and subject to supervision,
control and review of the DENR, implementation of
Community-based forestry projects which include integrated
social forestry programs and similar projects; management
and control of communal forests with an area not exceeding
fifty (50) square kilometers; establishment of tree parks,
greenbelts, and similar forest development projects;
(iii) Subject to the provisions of Title Five, Book I of this Code,
health services which include the implementation of
programs and projects on primary health care, maternal and
child care, and communicable and non-communicable
disease control services; access to secondary and tertiary
health services; purchase of medicines, medical supplies,
and equipment needed to carry out the services herein
enumerated;
(iv) Social welfare services which include programs and projects
on child and youth welfare, family and community welfare,
women’s welfare, welfare of the elderly and disabled
persons; community-based rehabilitation programs for
vagrants, beggars, street children, scavengers, juvenile
delinquents, and victims of drug abuse; livelihood and other
Pro-poor projects; nutrition services; and family planning
services;
(v) Information services which include investments and job
placement information systems, tax and marketing
information systems, and maintenance of a public library;
(vi) Solid waste disposal system or environmental management
system and services or facilities related to general hygiene
and sanitation;
(vii) Municipal buildings, cultural centers, public parks including
freedom parks, playgrounds, and other sports facilities and
equipment, and other similar facilities;
(viii) Infrastructure facilities intended primarily to service the
needs of the residents of the municipality and which are
funded out of municipal funds including, but not limited to,
municipal roads and bridges; school buildings and other
facilities for public elementary and secondary schools;
clinics, health centers and other health facilities necessary to
carry out health services; communal irrigation, small water
impounding projects and other similar projects; fish ports;
artesian wells, spring development, rainwater collectors and
water supply systems; seawalls, dikes, drainage and
sewerage, and flood control; traffic signals and road signs;
and similar facilities;
(ix) Public markets, slaughterhouses and other municipal
enterprises;
(x) Public cemetery;
(xi) Tourism facilities and other tourist attractions, including the
acquisition of equipment, regulation and supervision of
business concessions, and security services for such facilities;
and
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(xii) Sites for police and fire stations and substations and
municipal jail;
(3) For a Province:
(i) Agricultural extension and onsite research services and
facilities which include the prevention and control of plant
and animal pests and diseases; dairy farms, livestock
markets, animal breeding stations, and artificial
insemination centers; and assistance in the organization of
farmers’ and fishermen’s cooperatives and other collective
organizations, as well as the transfer of appropriate
technology;
(ii) (ii) Industrial research and development services, as well as
the transfer of appropriate technology;
(iii) Pursuant to national policies and subject to supervision,
control and review of the DENR, enforcement of forestry laws
limited to community-based forestry projects, pollution
control law, small-scale mining law, and other laws on the
protection of the environment; and minihydroelectric
projects for local purposes;
(iv) Subject to the provisions of Title Five, Book I of this Code,
health services which include hospitals and other tertiary
health services;
(v) Social welfare services which include programs and projects
on rebel returnees and evacuees; relief operations; and
population development services;
(vi) Provincial buildings, provincial jails, freedom parks and other
public assembly areas, and similar facilities;
(vii) Infrastructure facilities intended to service the needs of the
residents of the province and which are funded out of
provincial funds including, but not limited to, provincial
roads and bridges; inter-municipal waterworks, drainage
and sewerage, flood control, and irrigation systems;
reclamation projects; and similar facilities;
(viii) Programs and projects for low-cost housing and other mass
dwellings, except those funded by the Social Security System
(SSS), Government Service Insurance System (GSIS), and the
Home Development Mutual Fund (HDMF); Provided, That
national funds for these programs and projects shall be
equitably allocated among the regions in proportion to the
ratio of the homeless to the population;
(ix) Investment support services, including access to credit
financing;
(x) Upgrading and modernization of tax information and
collection services through the use of computer hardware
and software and other means;
(xi) Inter-municipal telecommunications services, subject to
national policy guidelines; and
(xii) Tourism development and promotion programs;
(4) For a City: All the services and facilities of the municipality and
province, and in addition thereto, the following:
(i) Adequate communication and transportation facilities;
(ii) (ii) Support for education, police and fire services and
facilities;
Bautista, Gastanes, Lopez, Sulit
(c) Notwithstanding the provisions of subsection (b) hereof, public
works and infrastructure projects and other facilities, programs
and services funded by the National Government under the
annual General Appropriations Act, other special laws,
pertinent executive orders, and those wholly or partially funded
from foreign sources, are not covered under this section, except
in those cases where the local government unit concerned is
duly designated as the implementing agency for such projects,
facilities, programs, and services.
(d) The designs, plans, specifications, testing of materials, and the
procurement of equipment and materials from both foreign
and local sources necessary for the provision of the foregoing
services and facilities shall be undertaken by the local
government unit concerned, based on national policies,
standards and guidelines.
(e) National agencies or offices concerned shall devolve to local
government units the responsibility for the provision of basic
services and facilities enumerated in this section within six (6)
months after the effectivity of this Code.
As used in this Code, the term "devolution" refers to the act
by which the National Government confers power and authority
upon the various local government units to perform specific
functions and responsibilities.
(f) The National Government or the next higher level of local
government unit may provide or augment the basic services
and facilities assigned to a lower level of local government unit
when such services or facilities are not made available or, if
made available, are inadequate to meet the requirements of its
inhabitants.
(g) The basic services and facilities hereinabove enumerated shall
be funded from the share of local government units in the
proceeds of national taxes and other local revenues and
funding support from the National Government, its
instrumentalities and government-owned or controlled
corporations which are tasked by law to establish and maintain
such services or facilities. Any fund or resource available for the
use of local government units shall be first allocated for the
provision of basic services or facilities enumerated in subsection
(b) hereof before applying the same for other purposes, unless
otherwise provided in this Code.
(h) Regional offices of national agencies or offices whose functions
are devolved to local government units as provided herein shall
be phased out within one (1) year from the approval of this
Code. Said national agencies and offices may establish such
field units as may be necessary for monitoring purposes and
providing technical assistance to local government units. The
properties, equipment, and other assets of these regional
offices shall be distributed to the local government units in the
region in accordance with the rules and regulations issued by
the Oversight Committee created under this Code.
(i) The devolution contemplated in this Code shall include the
transfer to local government units of the records, equipment, and
other assets and personnel of national agencies and offices
corresponding to the devolved powers, functions, and
responsibilities.
Personnel of said national agencies or offices shall be
absorbed by the local government units to which they belong
or in whose areas they are assigned to the extent that it is
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administratively viable as determined by the said oversight
committee: Provided, That the rights accorded to such
personnel pursuant to civil service law, rules and regulations
shall not be impaired: Provided, further, That regional directors
who are career executive service officers and other officers of
similar rank in the said regional offices who cannot be absorbed
by the local government unit shall be retained by the National
Government, without any diminution of rank, salary or tenure.
(j) To ensure the active participation of the private sector in local
governance, local government units may, by ordinance, sell,
lease, encumber, or otherwise dispose of public economic
enterprises owned by them in their proprietary capacity.
Costs may also be charged for the delivery of basic services
or facilities enumerated in this section.
Notes
 Sec 17, LGC is the core of DECENTRALIZATION and
DEVOLUTION
 Thrusts of LGUs:
(a) Discharge functions and responsibilities of central agencies
and offices that are now devolved to them
(b) Strive for self-reliance
(c) Continue exercising the powers and discharging the duties
that are currently vested upon them
(d) Exercise such other powers 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
(e) This list is NOT exclusive
THE LGU’S POWERS IN GENERAL
Barangay
 One power which exclusively belongs to this LGU and it is the
power to ADMINISTER THE KATARUNGANG PAMBARANAGAY
Municipality
 Involves the delivery of 4 major services:
o Agriculture and Aquaculture
o Health Services
o Social Services
o Other services including information 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 which the brgy,
muni, prov, had been empowered to deliver
 EXCEPT power to administer the katarungang pambragy
 On top of these the city is expressly empowered to provide:
(a) Adequate communication and transportation facilities
(b) Suport for education, police, and fire services and facilities
Province
 Power to deliver varied services such as:
(a) Industrial development services
(b) Health care and tertiary healthcare
(c) Computerizing tax information and collection services
Bautista, Gastanes, Lopez, Sulit
(d) Intra-municipal telecom services
SECTION 18. Power to Generate and Apply Resources.
Local government units shall have the power and authority to:
(a) establish an organization that shall be responsible for the
efficient and effective implementation of their development
plans, program objectives and priorities;
(b) to create their own sources of revenues and to levy taxes, fees,
and charges which shall accrue exclusively for their use and
disposition and which shall be retained by them;
(c) to have a just share in national taxes which shall be
automatically and directly released to them without need of
any further action;
(d) to have an equitable share in the proceeds from the utilization
and development of the national wealth and resources within
their respective territorial jurisdictions including sharing the
same with the inhabitants by way of direct benefits;
(e) 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.
SECTION 19. Eminent Domain. A 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 fifteen percent (15%) of the fair market value
of the property based on the current tax declaration 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.
Refer to the portion of Eminent Domain
SECTION 20. Reclassification of Lands.
(a) A city or municipality may, through an ordinance passed by the
sanggunian
- AFTER conducting public hearings for the purpose, authorize the
reclassification of agricultural lands and provide for the manner of
their utilization or disposition in the following cases:
(1) when the land ceases to be economically feasible and sound for
agricultural purposes as determined by the Department of
Agriculture or
(2) where the land shall have substantially greater economic value
for residential, commercial, or industrial purposes, as
determined by the sanggunian concerned:
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(3) Provided, That such reclassification shall be limited to the
following percentage of the total agricultural land area at the
time of the passage of the ordinance:
(1) For highly urbanized and independent component cities,
fifteen percent (15%);
(2) For component cities and first to the third class
municipalities, ten percent (10%); and
(3) For fourth to sixth class municipalities, five percent (5%):
(4) Provided, further, That agricultural lands distributed to
agrarian reform beneficiaries pursuant to R.A. No.6657
aka "The Comprehensive Agrarian Reform Law", shall not
be affected by the said reclassification and the conversion
of such lands into other purposes shall be governed by
Section 65 of said Act.
(b) The President may authorize a city or municipality to re-classify
lands in excess of the limits set in the next preceding paragraph:
(1) when public interest so requires and
(2) upon recommendation of the National Economic and
Development Authority,
(c) The local government units shall, in conformity with existing
laws, continue to prepare their respective comprehensive land
use plans enacted through zoning ordinances which shall be
the
(1) primary and dominant bases for the future use of land
resources:
(2) Provided, That the requirements for food production,
human settlements, and industrial expansion shall be
taken into consideration in the preparation of such plans.
(d) Where approval by a national agency is required for
reclassification such approval shall:
(1) not be unreasonably withheld
(2) Failure to act on a proper and complete application for
reclassification within three (3) months from receipt of the
same shall be deemed as approval thereof.
(e) Nothing in this Section shall be construed as repealing,
amending, or modifying in any manner the provisions of R.A.
No. 6657.
This provision is NOT to convert land for any purpose contrary to CARL
but merely to reclassify land
SECTION 21. Closure and Opening of Roads.
(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 two-thirds (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 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.
Bautista, Gastanes, Lopez, Sulit
(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,
recognized, 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 markets, 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.
Please refer to the portion of Closure and Opening of Roads
SECTION 22. Corporate Powers.
(a) Every local government unit, as a corporation, shall have the
following powers:
(1) To have continuous succession in its corporate name;
(2) To sue and be sued;
(3) To have and use a corporate seal;
(4) To acquire and convey real or personal property;
(5) To enter into contracts; and
(6) To exercise such other powers as are granted to
corporations, subject to the limitations provided in this
Code and other laws.
(b) Local government units may continue using, modify, or change
their existing corporate seals Provided, That:
(1) newly established local government units or those without
corporate seals may create their own corporate seals
which shall be registered with the Department of the
Interior and Local Government:
(2) any change of corporate seal shall also be registered as
provided hereon.
(c) No contract may be entered into by the local chief executive in
behalf of the local government unit without prior authorization
by the sanggunian concerned UNLESS:
(1) provided otherwise in the LGC
(2) A legible copy of such contract shall be posted at a
conspicuous place in the provincial capital or the city,
municipal or barangay hall.
(d) Local government units shall enjoy full autonomy in the
exercise of their proprietary functions and in the management
of their economic enterprises, subject to the limitations
provided in this Code and other applicable laws.
Notes
 There is no hard and fast rule for the purposes of determining the
true nature of an undertaking or function of an LGU; the
surrounding circumstances are to be considered:
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 The basic element, however, beneficial to the public the
undertaking maybe, is that it is governmental in essence otherwise
it is proprietary like in City of MNL v CA.
SECTION 23. Authority to Negotiate and Secure Grants. Local chief
executives may negotiate and secure financial grants or donations
in kind:
 FOR: support of the basic services or facilities enumerated under
Section 17 hereof,
 FROM: from local and foreign assistance agencies without
necessity of securing clearance or approval therefor from any
department, agency, or office of the National Government or from
any higher local government unit (upon authority of the
Sanggunian)
 Provided, That projects financed by such grants or assistance with
national security implications shall be approved by the national
agency concerned
Bautista, Gastanes, Lopez, Sulit
o When such national agency fails to act on the request for
approval within thirty (30) days from receipt thereof, the
same shall be deemed approved.
 The local chief executive shall, within thirty (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.
SECTION 24. Liability for Damages. Local government units and their
officials are not exempt from liability for death or injury to persons
or damage to property.
Notes
 Properties NOT subject to levy and execution of necessary for
Public Use cannot be attached and sold at an execution sale to
satisfy money claims
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III. GENERAL PRINCIPLES AND POLICIES

Provisions Creation of Special Metropolitan Political Subdivision

 Note: Do not mistake the “special metropolitan political
subdivisions” in Sec 11 as another territorial political subdivision
1987 Constitution
in Sec 1
 Jurisdiction of the metropolitan authority is LIMITED to basic
Art. X, Sec. 1
services requiring coordination (as in BAVA v MMDA and MMDA
The territorial and political subdivisions of the Republic of the
v GARIN)
Philippines are the provinces, cities, municipalities, and barangays.
There shall be autonomous regions in Muslim Mindanao and the
Art. X, Sec. 12
Cordilleras as hereinafter provided.
Cities that are highly urbanized, as determined by law, and
component cities whose charters prohibit their voters from voting for
The LGUs
provincial elective officials, shall be independent of the province.
 The republic is divided into territorial and political subdivisions
The voters of component cities within a province, whole charters
called the LGUs:
contain no such prohibition, shall not be deprived of their right to
(1) Provinces
vote for elective provincial officials.
(2) Cities
(3) Municipalities
Classification of Cities
(4) Barangays
 LGC classifies cities into:
(1) Highly Urbanized
The Autonomous Regions
(2) Independent Component
 In addition to the 4 types of subdivisions, the Constitution
(3) Component Cities
mandates the creation of 2 autonomous regions:
 They are classified based on their regular income
(1) One for Muslim Mindanao (won in plebiscite)
(2) One Cordilleras  It is indicative of its capability to develop as relatively
independent social, economic, and political unit
Nature of LGUs
 It is a political subdivision of the State which is constituted by law Local Government Code (RA 7160)
and possessed over substantial control over its own affairs.
 An intra-sovereign subdivision of one sovereign nation Sec. 1. Title. This Act shall be known and cited as the "Local
 Not intended to be an imperium in imperio Government Code of 1991".
 Autonomous in a sense that it is given more powers, authority,
Sec. 2. Declaration of Policy.
responsibilities and resources
(a) It is hereby declared the policy of the State that the territorial
and political subdivisions of the State shall enjoy genuine and
Art. X, Sec. 3
meaningful local autonomy to enable them to attain their
The Congress shall enact a local government code which shall
fullest development as self-reliant communities and make
provide for a more responsive and accountable local government
them more effective partners in the attainment of national
structure instituted through a system of decentralization with
goals. Toward this end, the State shall provide for a more
effective mechanisms of recall, initiative, and referendum, allocate
responsive and accountable local government structure
among the different local government units their powers,
instituted through a system of decentralization whereby local
responsibilities, and resources, and provide for the qualifications,
government units shall be given more powers, authority,
election, appointment and removal, term, salaries, powers and
responsibilities, and resources. The process of decentralization
functions and duties of local officials and all other matters relating
shall proceed from the National Government to the local
to the organization and operation of local units.
government units.
(b) It is also the policy of the State to ensure the accountability of
Art. X, Sec. 11
local government units through the institution of effective
The Congress may, by law, create special metropolitan political
mechanisms of recall, initiative and referendum.
subdivisions, subject to a plebiscite as set forth in Sec 29 hereof. The
(c) It is likewise the policy of the State to require all national
component cities and municipalities shall retain their basic
agencies and offices to conduct periodic consultations with
autonomy and shall be entitled to their own local executives and
appropriate local government units, non-governmental and
legislative assemblies. The jurisdiction of the metropolitan authority
people’s organizations, and other concerned sectors of the
that will hereby be created shall be limited to basic services
community before any project or program is implemented in
requiring coordination.
their respective jurisdictions.

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Sec. 3. Operative Principles of Decentralization. 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; (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;
(g) (missing?)
(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
Bautista, Gastanes, Lopez, Sulit
(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. Scope of Application. 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. Rules of Interpretation. 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 be had
to the customs and traditions in the place where the
controversies take place.
A. Local Autonomy
Provisions
1987 Constitution
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 Philippine 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.
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Notes:
Presidential Power of Supervision NOT control
 This means he exercises general supervision but only to ensure
that local affairs are administered according to law.
 Supervision means overseeing or the authority of an officer to see
that the subordinate officers perform their duties. Control means to
the power to amend, correct, or substitute subordinate officer’s
judgment.
Art. X, Sec. 11
The Congress may, by law, create special metropolitan political
subdivisions, subject to a plebiscite as set forth in Sec 29 hereof. The
component cities and municipalities shall retain their basic
autonomy and shall be entitled to their own local executives and
legislative assemblies. The jurisdiction of the metropolitan authority
that will hereby be created shall be limited to basic services
requiring coordination.
(see earlier explanation)
Art. X, Sec. 12
Cities that are highly urbanized, 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, whole charters
contain no such prohibition, shall not be deprived of their right to
vote for elective provincial officials.
(see earlier explanation)
San Juan v. CSC
Facts: The position of PBO of Rizal province became vacant. Gov.
San Juan, pursuant to EO 112, recommended Santos to the DBM as
new PBO (but there were also other recommendees/ nominees
submitted by him). DBM however, appointed Almajose who was not
among those nominated averring that the governor’s nominees are
only directory and not mandatory; and cited DBM Local Budget Circ.
31 which reserves them the right to appoint one not nominated by
the governor. Gov. San Juan then protested with DBM and CSC but
was denied.
Held: The SC ruled that EO 112 must be interpreted in favor of local
autonomy. Thus, DBM may only appoint from the governor’s
nominees. The appointment of Almajose was void, and the Local
Budget Circ 31 was struck down for being ultra vires. Where a law is
capable of two interpretations, one in favor of centralized power and
the other beneficial to local autonomy, the scales must be weighed
in favor of autonomy.
Pimentel v. Aguirre
Facts: AO 372, later amended by AO 43, was issued which reduced
total expenditures for the year by at least 25% of authorized regular
appropriations for non-personal services items for government
departments and agencies. (Sec. 1) and the amount equivalent to
10% of the internal revenue allotment to local government units
shall be withheld (Sec. 4).
Bautista, Gastanes, Lopez, Sulit
Held: The Supreme Court upheld Sec. 1 and reasoned that it was
merely advisory. As for Sec. 4, it was struck down because it was in
contravention of the automatic release of the IRA to LGUs. Local
autonomy signified a more responsive and accountable local
government structure instituted through a system of
decentralization. Decentralization simply means the devolution of
national administration, not power, to local governments. Local
officials remain accountable to the central government as the law
may provide. Under the Philippine concept of local autonomy, the
national government has not completely relinquished all its powers
over local governments, including autonomous regions. Only
administrative 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
Facts: 3 preventive suspension orders were issued by the Secretary
of Interior Local Government against Mayor Ganzon, in relation to
various administrative complaints filed against him. Ganzon
questioned the power of the SILG, as the President's alter-ego, to
suspend officials, arguing that under the 1987 Constitution, the
President does not have the power to suspend or remove local
officials.
Held: Court held that the President possesses such power. The
change in constitutional language (with respect to the supervision
clause) was meant but to deny legislative control over local
governments; it did not exempt the latter from legislative
regulations provided 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.
CAB v. CA
Facts: Constitutionality of EO No. 220 is being questioned here,
which created the CAR. This EO’s main function is to coordinate the
planning and implementation of programs and services in the
region.
Held: EO No. 220 does not create the autonomous region
contemplated in the Constitution, but merely provides for transitory
measures. EO No. 220 only created a region, covering a specified
area, for administrative purposes with the objective of coordinating
the planning and implementation of programs and services. The
constitutional guarantee of local autonomy refers to the
administrative autonomy of LGUs or the decentralization of
government authority. The creation of autonomous regions
contemplates the grant of political autonomy and not just
administrative autonomy to these regions. The CAR is a mere
transitory coordinating agency that would prepare the stage for
political autonomy for the Cordilleras.
SEMA v. COMELEC
Facts: Four days before the May 2007 elections, COMELEC
promulgated Resolution No. 7902, whereby it resolved to maintain
the composition of what had been the First District of Maguindanao,
composed of Cotabato City (a chartered city) and other
municipalities, even though these municipalities formerly belonging
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to Maguindanao have been constituted as part of the province of
Shariff Kabunsuan (SK). The Province of SK was created by the
Regional Assembly by virtue of Muslim Mindanao Autonomy Act No.
201 in Aug 2006. Sema, a candidate, sought to nullify Resolution
7902 since it usurped Congress’ power to create and reapportion
legislative districts.
Held: SC upheld the validity of Resolution 7902 since the creation of
the province of SK (MMA Act 201) is void. Only an act of Congress
can create a province, according to the LGC. The delegation of
Congress to ARMM to create provinces and cities is unconstitutional
because it is a non-delegable power of Congress.
Dissenting/ Concurring Opinion of J. Tinga: Nothing in the
Constitution bars the Congress from delegating the power to create
provinces and cities. But it is subject to the criteria set forth by
Congress. However, Congress cannot delegate the power to increase
the composition of the HoR since the Constitution specifically
designates it to Congress.
B. Decentralization
Provisions
1987 Constitution
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 decentralization 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 organization and operation of local units.
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 organizations within the
region for purposes of administrative decentralization to strengthen
the autonomy of the units therein and to accelerate the economic
and social growth and development of the units in the region.
Notes:
LGUs Relationship with Regional Development Councils
 LGUs relate to the Regional Development Council in matters that
concern their own development.
Bautista, Gastanes, Lopez, Sulit
Limbona v Mangellin
Facts: Petitioner was ousted from his position as Speaker of the
Regional Legislative ASSEMBLY of Central Mindanao, with the
other members voting behind his back as well as expelling him from
membership in said Assembly. In this case, the SC discusses the
propriety of its intervention in this issue and the nature of the
autonomous governments of Mindanao, and whether they are
subject to the jurisdiction of the national courts.
Held: PD1619 creating the autonomous government of Mindanao
persuades us that they were never meant to exercise autonomy in
the second sense. "[t]he President shall have the power of general
supervision and control over Autonomous Regions." The
Sangguniang Pampook is made to discharge chiefly administrative
services.
Notes:
DECENTRALIZATION:
 Decentralization of administration: the central government
delegates administrative powers to political subdivisions in order
to broaden the base of government power and in the process to
make 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." At the
same time, it relieves the central government of the burden of
managing local affairs and enables it to concentrate on national
concerns. The President exercises "general supervision" over
them, but only to "ensure that local affairs are administered
according to law." He has no control over their acts in the sense
that he can substitute their judgments with his own.
 Decentralization of power: abdication of political power in favor
of local government units declared to be autonomous. In that
case, the autonomous government is free to chart its own destiny
and shape its future with minimum intervention from central
authorities. According to a constitutional author,
decentralization of power amounts to "self-immolation", since in
that event, the autonomous government becomes accountable
not to the central authorities but to its constituency.
AUTONOMY
 Autonomy of LGU’s in TWO senses: An autonomous government
that enjoys autonomy of the latter category is subject alone to the
decree of the organic act creating it and accepted principles on
the effects and limits of "autonomy". On the other hand, an
autonomous government of the former class is under the
supervision of the national government acting through the
President.
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IV. CREATION OF MUNICIPAL CORPORATIONS
A. NATURE AND POWES TO CREATE MUNICIPAL
CORPORATION
PELAEZ v. AUDITOR GENERAL
Facts: President Diosdado Macapagal issued several Executive
Orders creating 33 municipalities in total. He purportedly relied
upon Sec. 68 of the Revised Administrative Code, as basis of
authority to create municipal corporations. VP Pelaez sought to
restrain Auditor General from passing in audit/disbursing money in
implementation of the EO’s.
Held: Court ruled in favor of VP and enjoined the Auditor General
from doing the acts mentioned. Under RA 2370 (Barrio Charter Act),
barrios may not be created or their boundaries altered, or names
changed except by an act of Congress, or the 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.
The constitution merely confers upon the President the power of
supervision over local government units, as distinguished from 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
Facts: There was a boundary dispute between the Municipality of
Kapalong and the Municipality of Sto. Tomas (the latter a creation
of President CP Garcia using portions of Kapalong). Sto. Tomas filed
an action with the CFI for the settlement of the dispute. Kapalong
filed an MTD, alleging that Sto. Tomas lacked legal personality.
Held: CFI case should have been dismissed. It was held in Pelaez v.
Auditor General that 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. Motion to
dismiss granted.
B. CREATION OF MUNICIPAL COPORATIONS
1. Constitutional Provisions
SUMMARY OF PERTINENT CONSTITUTIONAL PROVISIONS
(ARTICLE X)
 The territorial and political subdivisions of the Philippines are the
provinces, cities, municipalities, and barangays. There shall be
autonomous regions in Muslim Mindanao and the Cordilleras.
(Sec. 1).
Bautista, Gastanes, Lopez, Sulit
 These subdivisions may be created, divided, merged, abolished,
or its boundary substantially altered:
o in accordance with the criteria established in the Local
Government Code
o subject to approval by a majority of the votes cast in a
plebiscite in the political units directly affected. (Sec. 10).
 Congress may create special metropolitan political subdivisions
by law, subject to a plebiscite.
o Component cities/municipalities shall retain their basic
autonomy and shall be entitled to their own local executives
and legislative assemblies.
o The jurisdiction of the metropolitan authority shall be limited
to basic services requiring coordination (Sec. 11).
 Autonomous regions in Muslim Mindanao and in the Cordilleras
shall consist 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 territorial integrity of the
Republic (Sec. 11).
o 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 from
multisectoral 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, and
 shall provide for special courts with personal, family, and
property law jurisdiction consistent with the provisions of
this Constitution and national laws.
o Creation of the autonomous regions shall be effective when
approved by majority of the votes cast by the constituent units
in a plebiscite called for the purpose. However, those
geographic areas voting favorably in such plebiscite shall be
included in the autonomous region (Sec. 18).
 The first Congress elected under the 1987 Constitution shall,
within 18 months from the time of organization of both Houses,
pass the organic acts for the autonomous regions provided herein
(Sec 19).
NAVARRO v. ERMITA
Facts: The Province of Dinagat Islands was created by RA 9355.
Petitioners sought to have RA 9355 declared unconstitutional for its
failure to meet either the land or the population requirement in the
LGC as required by Art X of the 1987 Constitution.
Held (APR 2010): SC ruled that the law is unconstitutional because
it did not meet the standards set by the LGC as to land area (only
802.12 sq. km out of the required 2,000 sq km) or population (only
106 951 inhabitants of the required 250 000). If a proposed province
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is composed of 2 or more islands, the “territory under the LGC
includes only the land mass above the water.
Held (MAY 2010): SC upheld the above ruling. this time adding that
the operative fact doctrine does not apply. The Court, while
respecting the doctrine of separation of powers, cannot renege on
its duty to determine whether the other branches of the government
have kept themselves within the limits of the Constitution, and
determine whether illegality attached to the creation of the province
in question. To abandon this duty only because the Province of
Dinagat Islands has began its existence is to consent to the passage
of a law that is violative of the provisions of the Constitution and the
Local Government Code, rendering the law and the province created
null and void.
Held (2011): SC reverses itself. RA 9355 is constitutional. In the
creation of municipalities, component cities, and provinces, the 3
indicators of viability and projected capacity to provide services, i.e.,
income, population, and land area, are provided for. However, when
the LGU to be created consists of one or more islands, it is expressly
exempt from the land area requirement as expressly provided in
Secs. 442 and 450 of the LGC if the LGU to be created is a
municipality or a component city, respectively. This exemption is
absent in the enumeration of the requisites for the creation of a
province under Sec. 461, although it is expressly stated under Art.
9(2) of the IRR. Thus, the LGC provides an exemption from territorial
contiguity when the intended province consists of two or more
islands. This includes the exemption from the application of the
minimum land area requirement, as embodied in the LGC’s IRR.
REQUISITES FOR CREATION OF LGUS
BARANGAY MUNICIPALITY
Not less than 2,000 Not less than
inhabitants inhabitants
(5,000 for cities and
municipalities within
POPULATION
MM and other
metropolitan
subdivisions or highly
urbanized cities)
LAND AREA At least 50 sq km
ANNUAL INCOME At least P2,500,000
NOTES:
 In the case of the creation of barangays by the Sangguniang
Panlalawigan, the recommendation of the Sangguniang Bayan
concerned shall be necessary.
 Creation of new LGUs shall not reduce the population of the
original LGUs to less than the minimum requirement prescribed
in the LGC.
 The territorial jurisdiction of a newly-created LGU shall be
properly identified by metes and bounds.
 The average annual income shall include the income accruing to
the general fund of the LGU concerned, exclusive of special funds,
transfers and non-recurring income.
Bautista, Gastanes, Lopez, Sulit
2. Statutory Provisions
SUMMARY OF PERTINENT LGC PROVISIONS
 An LGU may be created, divided, merged, abolished, or its
boundaries substantially altered:
o Province, city, municipality, or any other political subdivision:
by law enacted by Congress
o Barangay: by law enacted by Congress or by ordinance
passed by the Sangguniang Panlalawigan or Sangguniang
Panlungsod located within its territorial jurisdiction (Sec 6).
o IN ALL CASES, subject to approval by a majority of the votes
cast in a plebiscite to be conducted by the COMELEC in the
LGUs directly affected.
 Verifiable indicators of viability and projected capacity to provide
services (Sec. 7):
o Income (attested to by DOF): sufficient to provide for all
essential government facilities and services and special
functions commensurate with the size of its population, as
expected of the LGU concerned;
o Population (attested to by NSO):: the total number of
inhabitants within the territorial jurisdiction of the LGU
concerned; and
o Land Area (attested to by DENR-Lands Management
Bureau): contiguous (unless it comprises two or more islands
or is separated by an independent LGU), properly identified
by metes and bounds with technical descriptions, and
sufficient to provide for basic services and facilities to meet
the requirements of its populace.
CITY PROVINCE
25,000 Not less than 150,000 Not less than 250,000
inhabitants inhabitants
(OR) (OR)
At least 100 sq km At least 2000 sq km
At least P100,000,000 At least P20,000,000
LEAGUE OF CITIES v. COMELEC
Facts: The 11th Congreds enacted into law 33 bills converting 33
municipalities into cities. However, Congress did not act on bills
converting 24 other municipalities into cities. The 12th Congress
then enacted into law RA 9009, which amended the LGC by
increasing the annual income requirement for conversion of a
municipality into a city from P20 million to P100 million, in order to
prevent “the mad rush” of municipalities to convert into cities solely
to secure a larger share in the IRA despite the fact that they are
incapable of fiscal independence.
Plaintiffs now assailed the validity of 16 cityhood laws which
exempted certain municipalities from the new P100k income
requirement imposed by RA 9009.
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Held (2008): The Cityhood bills are unconstitutional. First, applying
the P100 million income requirement in RA 9009 to the present case
is a prospective, not a retroactive application, because RA 9009 took
effect in 2001 while the cityhood bills became law more than five
years later. Second, the Constitution requires that Congress shall
prescribe all the criteria for the creation of a city in the Local
Government Code and not in any other law, including the Cityhood
Laws. Third, the Cityhood Laws violate Section 6, Article X of the
Constitution because they prevent a fair and just distribution of the
national taxes to local government units. Fourth, the criteria
prescribed in Section 450 of the Local Government Code, as
amended by RA 9009, for converting a municipality into a city are
clear, plain and unambiguous, needing no resort to any statutory
construction. Fifth, the intent of members of the 11th Congress to
exempt certain municipalities from the coverage of RA 9009
remained an intent and was never written into Section 450 of the
Local Government Code. Sixth, the deliberations of the 11th or 12th
Congress on unapproved bills or resolutions are not extrinsic aids in
interpreting a law passed in the 13th Congress. Seventh, even if the
exemption in the Cityhood Laws were written in Section 450 of the
Local Government Code, the exemption would still be
unconstitutional for violation of the equal protection clause.
Held (2009): The laws are not unconstitutional. Based on the Drilon-
Pimentel exchange during deliberations, Congress did not intend to
give RA 9009 retroactive effect. Moreover, the doctrine of operative
fact applies. The 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 organized and are functioning accordingly, with new sets
of officials and employees.
Held (2010): The laws are unconstitutional. The Constitution
mandates that LGUs shall be created by Congress in accordance
with the criteria provided in the LGC. The exemptions granted to the
16 municipalities are contained in separate laws and not in the LGC.
Meanwhile, RA 9009 which increased the income threshold to
P100M amended the LGC, which makes it part of LGC. Hence, from
the time RA 9009 took effect, all municipalities had to follow this
requirement to be able to convert into a component city.
Held (Feb 2011): The laws are not unconstitutional. The Congress
intended to exempt these cities from the LGC. Since the Cityhood
Bills are legislative acts, they may be basis to amend the LGC –
another legislative act. The Congress saw the wisdom of exempting
the 16 municipalities from complying with the higher income
requirement imposed by RA 9009. Further, the Bills do not violate
the equal protection clause since there was valid classification as to
the municipalities with pending cityhood bills against those without.
Since the P100M amount was arbitrarily made, there is no reason to
prevent these cities pending bills from being enacted into law,
seeing as the purpose of preventing “the mad rush” was not yet
enacted into law when the Bills were introduced in Congress. They
also used the parable of the laborers in this case.
Held (Apr 2011): The laws are not unconstitutional. The newly
created cities were intended by the Congress to be exempted from
the requirement of P100 million income as stated in RA 9009, which
amended the LGC.
Bautista, Gastanes, Lopez, Sulit
SAMSON v. AGUIRRE
Facts: Samson challenges the constitutionality of RA 8535, creating
the City of Novaliches. He alleges that no certifications as required
by the LGC were submitted.
Held: RA8535 is constitutional. It met all the requirements. The
Court found that present during the public hearings held by the
Senate Committee on Local Government were resource persons
from the different government offices like National Statistics Office,
Bureau of Local Government Finance, Land Management Bureau,
and Department of Budget and Management, aside from officials of
Quezon City itself. Although only oral manifestations were made the
representatives were present along with other officers armed with
official statistics and reference materials. In their official capacity,
they spoke and shed light on population, land area and income of
the proposed city. Thus, their official statements could serve the
same purpose contemplated by law requiring certificates. In this
case, the Court also stated that under the Local Government Code,
the proposed city must comply with requirements as regards income
and population or land area. Compliance with either requirement, in
addition to income, is sufficient.
3. REVISED ADMIN CODE, SEC 68.
General authority of (Governor-General) President of the Philippines to
fix boundaries and make new subdivisions. – 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 division 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 authorization 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.
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MUNICIPALITY OF CANDIJAY (BOHOL) v. CA
Facts: The Municipalty of Candijay sued the Municipality of Alicia
asserting that Brgy. Pagahat belongs to the former’s territorial
jurisdiction. As one of its grounds, Candijay assailed the juridical
personality of Alicia. It contended that E.O. No. 265 issued by
President Quirino in 1949 creating Alicia is null and void ab initio,
inasmuch as Sec. 68 of the Revised Administrative Code, on which
said E.O. was based, constituted an undue delegation of legislative
powers to the President, and was therefore declared
unconstitutional.
Held: Citing San Andres v. Mendez, Sr., the SC held that Alicia is a
de jure municipality given the governmental acts indicating the
State’s recognition thereof throughout its 16 years of existence prior
to Pelaez and even after A.O. No. 33, Ordinance appended to the
1987 Constituiton, and Sec. 442(d) of Local Government Code. A
municipality created under an Executive Order issued pursuant to
RAC Sec 68, though declared void by Pelaez v. Auditor General, may
be considered as de jure in view of governmental acts throughout
the years indicating the State's recognition and acknowledgment of
the existence thereof, and also of the curative effect of Sec. 442(d)
of the Local Government Code.
This parts were taken from the E2016 Reviewer. Thank you, E2016!
4. MUNICIPAL CORPOATION BY
PRESCRIPTION
A municipal corporation may exist by prescription.
 Its existence will be presumed where it is shown that the
community has claimed and exercised corporate functions
without interruption or objection for a period long enough to
afford title by prescription.
5. DE FACTO MUNICIPAL CORPORATIONS
 A corporation may exist in fact although not in point of law
because of certain defects in some essential features of its
organization.
Bautista, Gastanes, Lopez, Sulit
 As such, it may still be regarded as an existing corporation de
facto. A corporation may be considered at least de facto if the
following requisites are complied with:
o a valid law authorizing incorporation;
o an attempt in good faith to organize under it;
o a colorable compliance with the law; and
o an assumption of corporate powers.
 Note: According to Ma’am, considering the provision in Section
442(d) of the LGC, no de facto municipal corporations or
municipal corporations by prescription continue to exist.
6. ATTACK AGAINST VALIDITY OF MUNICIPAL
CORPORATIONS
 When a corporation is de jure, it is impregnable to any attack,
direct or otherwise.
 The validity of incorporation and corporate existence of a
municipal corporation may not be attacked collaterally.
 It 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.
7. BEGINNING OF CORPORATE EXISTENCE OF
MUNICIPAL CORPORATIONS
LGC Sec 14. Beginning of Corporate Existence. − 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 therefor by the law or ordinance creating it.
 The legal existence of a municipal corporation is to be
determined by the law creating it.
 Where the law is silent as to be the beginning of its corporate
existence, such shall commence upon the election and
qualification of its chief executive and a majority of the members
of the sanggunian.
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V. Alteration and Dissolution of Municipal Corporations
*Notes adopted from E2016 Reviewer. Thank you, E2016!
A. Nature of Power
1. Necessity for Defining Territorial Boundaries
 A municipal corporation cannot, without legal authorization,
exercise its powers beyond its own corporate limits.
 Ergo, it is necessary that it have its boundaries fixed, definite, and
certain, in order that they may be identified and that all may know
the exact scope or section of territory or geographical division
embraced within the corporate limits and over which the local
corporation has jurisdiction.
 An incorporation is void where the boundaries of the municipal
corporation are not described with certainty.
 The legislature may apportion the common property or 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
administrative authorities for determination.
 Basic Procedure for boundary disputes:
o Disputes between municipal governments over areas or
barangays – heard and decided by the Sangguniang
Panlalawigan of the province where the municipalities are
situated. If the municipalities are in different provinces, the
Sangguniang Panlalawigan of both provinces shall jointly
hear and decide the dispute. If no settlement is reached
within 60 days from referral to the Sangguniang
Panlalawigan, the dispute shall be brought to the RTC, which
shall decide the case within one year from the start of
proceedings.
o Disputes within barangays – heard and decided by the
Sangguniang Panlungsod or Sangguniang Bayan concerned.
In case no settlement is reached within 60 days, the case shall
be heard and decided by the RTC within one year from the
start of court proceedings
Calanza v. PICOP (2009)
Summary: Petitioners filed applications for small-scale mining
permits for the purpose of extracting gold, and these were approved
by the Governor of Davao Oriental. However, the mining areas
applied for were within the logging concession area under the
Timber License Agreements with PICOP, and the latter refused the
petitioners’ entry. One of the arguments of PICOP was that RTC of
Davao Oriental had no jurisdiction over the complaint for injunction
filed by petitioners since the disputed area was in Surigao del Sur,
not Davao Oriental. SC held that RTC cannot exercise either original
or appellate jurisdiction in this case. Court also held that the small-
scale mining permits were legally questionable as the governor had
no legal authority to issue said permits
Doctrine: The RTC cannot assume original jurisdiction over
boundary disputes since the LGC allocates such power to the
Bautista, Gastanes, Lopez, Sulit
sangguniang panlalawigans of the provinces involved. Neither can
it exercise its appellate jurisdiction as no petition had been filed and
decided by the said sangguniang panlalawigans.
Barangay Sangalang v. Barangay Maguihan (2009)
Summary: Case involves a barangay jurisdiction dispute between
Barangay Sangalang and Barangay Maguihan. Case was lodged
before the Sangguniang Bayan (SB), which ruled in favor of
Sangalang. In the exercise of its appellate jurisdiction, the RTC
reversed the SB Resolution and ruled that the subject lots belonged
to Maguihan. Sangalang filed a Notice of Appeal with the CA, which
dismissed the same for being the wrong remedy. Court agreed that
Sangalang should have filed a petition for review under Rule 42, but
held that the CA, notwithstanding the wrong mode of appeal,
should not have easily dismissed the petition, considering that the
parties involved are local government units and that what is involved
is the determination of their respective territorial jurisdictions. Court
ruled in favor of Maguihan after taking into consideration the
documents presented by both parties and finding greater weight in
the cadastral map presented by Maguihan than the assessors’
certifications presented by Sangalang.
Doctrine: Decision of the sanggunian may be appealed to the RTC
having jurisdiction over the area in dispute. When RTC takes
cognizance of a case in the exercise of its appellate jurisdiction any
further appeal must be through a petition for review under Rule 42.
B. Manner or Mode
LGC
Sec. 7. Creation and Conversion. - As a general rule, the creation of
alocal 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 commensu- rate 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 two 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
NationalStatistics Office (NSO), and the Lands Management
Bureau(LMB) of the Department of Environment and Natural
Resources(DENR).
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C2017 / LAW 154 / Local Government Law / Midterm Reviewer
Sec. 8. Division and Merger. - Division and merger of existinglocal
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 or units concerned to less than the minimum
requirements prescribed in this Code: Provided, further, That the
income classification of the original local government unit or units
shall not fall below its current income classification prior to such
division. The income classification of local government units shall be
updated within six (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. Abolition of Local Government Units. - 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
the 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
thelocal government unitsought to be abolished will be
incorporated or merged.
Sec. 10. Plebiscite Requirement. - 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 or units directly affected. Said plebiscite shall be conducted by
the Commission on Elections (Comelec) within one hundred twenty
(120) days from the date of effectivity of the law or ordinance
effecting such action, unless said law or ordinance fixes another
date.
1987 Constitution, 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.
C. Effects
1. Effects of Annexation or Consolidation of
Municipal Corporations
 On the legal existence of the territory annexed: unless otherwise
provided, the annexation of one municipal corporation to another
will dissolve the annexed territory
 On the laws and ordinances of the annexed corporations: in the
absence of a provision to the contrary, the annexed territory shall
become subject to the laws and ordinances by which the
annexing corporation is governed
 On the right of officers or employees of the annexed corporation
to continue to hold their offices: subject to what the legislature
provides upon annexation, the officers and employees of the
Bautista, Gastanes, Lopez, Sulit
annexed territory shall terminate their official relation with their
offices
 On the title to the property of the annexed territory: the annexing
territory shall acquire title to the property of the annexed territory
at the time of the annexation, unless the annexing statute
provides otherwise.
o When the annexed territory forms part of a municipality from
which it is taken, the legislature may provide for the payment
of compensation for the indebtedness incurred on account of
the property taken.
o 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 the annexed territory.
However, if any indebtedness on these exists, the annexing
territory must be required to share in the payment of said
indebtedness.
 On the debts and obligations of the annexed territory: those
contracted prior to the annexation shall be assumed by the
annexing territory in the absence of any provision to the contrary
2. Effects of Division of Municipal Corporations
 On the legal existence of the original corporation: the corporate
existence of the original municipality is extinguished
 On the property, powers and rights of the original corporation:
unless the law provides otherwise, when a municipal corporation
is divided into two or more municipalities, each mun icipality
acquires title to all the property, powers, rights and obligations
falling within its territorial limits.
D. When there is no Dissolution
1. Non-User or Surrender of Charter
 Municipal corporations cannot bring about their own dissolution
by a mere surrender of their charter.
 A municipal corporation is not ipso facto dissolved or destroyed
by non-user of its powers in whole or in part, or for its failure for a
number of years to exercise the functions of a municipality.
o In such cases, the municipal corporation would be suspended
but not civilly dead, since its dormant functions could be
revived without action on account of the sovereignty from
which, in theory of law, corporate life originally came.
2. Failure to Elect Municipal Officers
 In the absence of a statute, a municipal corporation is not
dissolved by the mere failure to elect or appoint its officers and
agents to conduct its government. The officers do not constitute
a corporation. Rather, the inhabitants of the designated locality
are the incorporators.
3. Change of Sovereignty
Vilas v. Manila
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C2017 / LAW 154 / Local Government Law / Midterm Reviewer
supra exerted efforts to investigate the facts and verified that there were
no public or private buildings in the said place, hence its conclusion
that there were no inhabitants. It is not impossible for a certain
Sultan Usman Sarangani v. COMELEC (2000)
barangay not to actually have inhabitants considering that people
Summary: A petition for annulment of several precincts and
migrate. A barangay may officially exist on record and the fact that
annulment of book of voters in Madalum, Lanao Del Sur, was filed
nobody resides in the place does not result in its automatic cessation
with the COMELEC. Among the precincts sought to be annulled was
as a unit of local government.
Padian Torogan. COMELEC conducted an ocular inspection on the
alleged ghost precincts and found, among others: that there are
Doctrine: The determination of W/N a certain election precinct
only two structures in the supposed Brgy. Padian Torogan (concrete
actually exists and whether the voters registered in said precinct are
house with no roof, and a wooden structure without walls and roof),
real voters is a factual matter. Under the LGC, the abolition of an
that Padian Torogan means cemetery (not a residential place), and
LGU may be done by Congress in the case of a province, city,
that Padian Torogan is uninhabited. The Madalum Municipal Chief
municipality, or any other political subdivision. In the case of a
of Police also confronted and threatened the COMELEC
barangay, except in Metropolitan Manila area and in cultural
investigating team during the inspection. Based on said inspection,
communities, it may be done by the Sangguniang Panlalawigan or
COMELEC issued the assailed Order finding Padian Torogan to be a
Sangguniang Panglungsod concerned subject to the mandatory
ghost precinct and excluding it from the special election to be
requirement of a plebiscite conducted for the purpose in the political
conducted in Madalum. SC upholds COMELEC’s Order. COMELEC
units affected.

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VI. Plebiscite Requirements
1987 Constitution, 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.
LGC, Sec. 10. Plebiscite Requirement. - 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 or units directly affected. Said plebiscite shall be conducted by
the Commission on Elections (Comelec) within one hundred twenty
(120) days from the date of effectivity of the law or ordinance
effecting such action, unless said law or ordinance fixes another
date.
Padilla v. COMELEC (1992)
Facts: In the plebiscite held for the creation of the Municipality of
Tulay-Na-Lupa, only 2890 favored its creation while 3439 voted
against it. Padilla argues that the plebiscite was invalid since the
plebiscite should have included only the political units affected (i.e.
the 12 barangays) and excluded the mother Municipality of Labo.
Held: The plebiscite was valid because “in the political units directly
affected,” 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)
Facts: BP 885 created the Province of Negros del Norte. The
plebiscite was held only in the areas within the new province, and
the rest of Negros Occidental were excluded.
Held: 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)
Facts: The Municipality of Santiago Isabela was converted into an
INDEPENDENT COMPONENT CITY in 1994. This conversion was
ratified in a plebiscite. Now RA 8528 was enacted, this time
DOWNGRADING/CONVERTING it to a component city. Petitioners
assailed RA 8528 for not providing for a plebiscite.
Bautista, Gastanes, Lopez, Sulit
Held: the Constitution and LGC require a plebiscite. The rule covers
ALL conversions, whether upward or downward, so long as they
result in a material change in the local government unit directly
affected, especially a change in political and economic rights of the
people. RA 8528 is UNCONSTITUTIONAL.
Tobias v. Abalos (1994)
Facts: Petitioners assail the constitutionality of RA 7675, which
converted the Municipality off Mandaluyong into a Highly Urbanized
City (Note: this entailed the separation of San Juan and
Mandaluyong, which used to be under one legislative district, into
separate legislative districts). Peitioners argue that the people of
San Juan should have been made to participate in the plebiscite on
RA 7675, as the same involved a change in their legislative district.
Held: Contention is bereft of merit. The principal subject involved in
the plebiscite was the conversion of Mandaluyong into a highly
urbanized city. The matter of separate district was only ancillary
thereto. Thus, the inhabitants of San Juan were properly excluded
from the plebiscite since they had nothing to do with the change of
status of Mandaluyong.
Municipality of Nueva Era, Ilocos v. Marcos (2008)
Facts: Marcos, an adjacent municipality of Nueva Era, claims that
the former’s charter provides that is bounded on the east by the
Ilocos Norte-Mt. Province Boundary. However, Marcos between the
Ilocos Norte-Mt. Province boundary and the Marcos municipality lies
the Nueva Era municipality. As such, Marcos claims certain portions
of Nueva Era as its territory. Nueva Era claimed as one of its defenses
that Marcos was created without the plebiscite requirement of the
Constitution so its claim of territory is untenable. The SC agreed with
Nueva Era’s contention that Marcos’ claim over parts of its territory
is not tenable. However, the reason is not the lack of the required
plebiscite under the 1987 and 1973 constitutions and the Local
Government Code of 1991 but because Nueva Era was excluded in
the enumeration of Marcos’ territory.
Held: The plebiscite is one instance where the people in their
sovereign capacity decide on a matter that affects them – direct
democracy of the people as opposed to democracy thru people’s
representatives. This plebiscite requirement is also in accord with
the philosophy of the Constitution granting more autonomy to local
government units. Moreover, it is prospective in character and
cannot apply to municipalities already created.
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C2017 / LAW 154 / Local Government Law / Midterm Reviewer

VII. General Powers of Local Governments

A. Police Power respective territorial jurisdictions, local government units shall

General Welfare
LGC Sec.. 16. General Welfare. - 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
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.

Legislative Sangguniang Barangay Sangguniang Bayan Sangguniang Panlungsod Sangguniang

Body (Sec. 391)
Powers, (a) Enact ordinances
Duties, and (b) Enact tax and revenue
Functions ordinances
(c) Enact annual and
supplemental budgets
(d) Provide for the construction
and maintenance of facilities
and projects chargeable to
the general fund of the
Barangay
(e) Submit to the Sangguniang
Panlungsod or Sangguniang
(f) Bayan suggestions or
recommendations
(g) Assist in the establishment,
of cooperative enterprises
that will improve the
economic condition and
well-being of the residents;
(h) Regulate the use of facilities
constructed with
government funds and
charge reasonable fees h)
Solicit or accept monies,
materials and voluntary
labor
(i) Solicit or accept cooperation
by national, provincial, city,
or municipal agencies to
render financial, technical,
and advisory assistance to
Barangays and to Barangay
residents
(Sec. 447) (Sec. 458) Panlalawigan
(Sec. 468)
(a) Enact ordinances, (a) Approve ordinances and (a) Approve ordinances
approve resolutions and pass resolutions and pass resolutions
appropriate funds necessary for an (b) Generate and maximize
(b) Generate and maximize efficient and effective the use of resources
the use of resources and city government and revenues
revenues (b) Generate and maximize (c) Adopt measures to
(c) Grant franchises, enact the use of resources and enhance the full
ordinances authorizing revenues implementation of the
the issuance of permits (c) Enact ordinances national agrarian
or licenses, or enact granting franchises and reform program in
ordinances levying authorizing the issuance coordination with DAR;
taxes, fees and charges of permits or licenses (d) Grant franchises,
upon such conditions (d) Regulate activities approve the issuance of
(d) Regulate activities relative to the use of permits or licenses, or
relative to the use of land, buildings and enact ordinances
land, buildings and structures within the city levying taxes, fees and
structures within the (e) Approve ordinances charges
municipality which shall ensure the (e) Approve ordinances
(e) Approve ordinances to efficient and effective which shall ensure the
ensure the efficient and delivery of the basic efficient and effective
effective delivery of the services and facilities delivery of the basic
basic services and (f) Exercise such other services and facilities
facilities powers and perform
(f) Exercise such other such other duties and
powers and perform functions as may be
such other duties and prescribed by law or
functions as may be ordinance.
prescribed by law or
ordinance.

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White Light Corp v. City of Manila (2009)
Summary: Owners and operators of hotels filed a case to invalidate
an ordinance sanctioning any person or corporation who will allow
the admission and charging of room rates for less than 12 hours. The
SC held that such ordinance is an invalid exercise of police power for
not meeting the requisites for valid exercise of police power.
Doctrine: Police power, while incapable of an exact definition, has
been purposely veiled in general terms to underscore its
comprehensiveness to meet all exigencies and provide 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. In order to test
the validity of a police power measure, the ff. requisites must concur:
(1) It must appear that the interests of the public generally, as
distinguished from those of a particular class, require an
interference with private rights.
(2) It must also be evident that no other alternative for the
accomplishment of the purpose less intrusive of private rights
can work.
(3) A reasonable relation must exist between the purposes of the
measure and the means employed for its accomplishment
Ermita Malate v. City of Manila (1967)
Summary: Ermita-Malate Hotel and Motel Operators Association,
and one of its members Hotel del Mar Inc. petitioned for the
prohibition of Ordinance 4670, claiming Sec. 1 of the ordinance was
unconstitutional and void for being unreasonable and violative of
due process because it would impose higher license fees for motels;
because it required that guests would fill up a form specifying their
personal information. There was also a provision that the premises
and facilities of such hotels, motels and lodging houses would be
open for inspection from city authorites. They claimed this to be
violative of due process for being vague. The ordinance also caused
the automatic cancellation of the license of the hotels that violated
the ordinance. Lower court: ordinance unconstitutional. SC held
Ordinance constitutional as valid exercise of police power to
safeguard common good, curtail illegal activities and protect public
morals.
Doctrine: To satisfy the due process requirement, official action,
must not outrun the bounds of reason and result in sheer
oppression. Due process is freedom from arbitrariness.
Dela Cruz v. Paras (1983)
Summary: Ordinance No. 84 was enacted by the Municipal Council
of Bocaue, Bulacan. This Ordinance prohibits the operation of
nightclubs, cabaret joints, etc. in the vicinity of Bocaue. Petitioners,
owners of such establishments, filed 2 cases for Prohibition with the
CFI. CFI finds the ordinance not unconstitutional because of Police
Power granted to Municipalities. SC however struck down the
ordinance because BP 337 gives the Sangguniang Bayan no power
to prohibit the establishments involved only to regulate.
Doctrine: Police Power may be exercised by a Municipality however
it must be read in connection with the constitution and pertinent
laws. Municipalities have no power to prohibit, only regulate.
Bautista, Gastanes, Lopez, Sulit
Technology Developers Inc. v. CA (1991)
Summary: Petitioner, Technology Developers Inc., is a domestic
private corporation engaged in the manufacture and export of
charcoal briquette. The acting mayor ordered the full cessation of
the operation of the petitioner's plant because of the air pollution.
Petitioner instituted an action for certiorari, prohibition, mandamus
with preliminary injunction which granted but later on dissolved due
to adduced evidence. The SC held that the lower courts did not err
in denying the motions of the petitioner. Factors were considered,
such as lack of mayor’s permit, to justify the dissolution of the writ
of preliminary injunction.
Doctrine: It must be recognized that the mayor of a town 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)
Summary: Petitioners Chua Hua et al. were residents of buildings
that were condemned and ordered to be demolished. The orders
were based on inspection reports, which showed that the buildings
suffer from structural deterioration by more than 50% and as much
as 80%. Petitioners formally protested the condemnation orders
over 3 months after receiving notice. SC held that there was no grave
abuse of discretion because the orders were issued based on
inspections. Moreover, petitioners failed to exhaust administrative
remedies (appeal to the Mayor within 7 days, or request for re-
inspection within 15 days).
Doctrine: Power to condemn and remove buildings and structures is
an exercise of the police power granted to the City to promote public
safety
Binay v. Domingo (1991)
Summary: Resolution No. 60 was enacted to give relief to grieving
families whose gross income does not exceed 2k/month for 500php.
This was approved by the Metro Manila Commission and was
referred to respondent COA for its audit. It disallowed the
disbursement of funds for the project. Makati’s Municipal Council
passed another Resolution No. 243 re-affirming the Burial
Assistance Fund. Since this project has been stayed by the COA
Binay filed a special civil action of certiorari with the SC to set aside
the COA decision. SC grants the petition.
Doctrine: It held that it is a valid exercise of Police Power under the
general welfare clause (in BP 337) taking particular notice in the shift
towards social legislation in the constitution.
Tatel v. Municipality of Virac
Summary: Tatel is a businessman engaged in the import and export
of abaca and other products. His warehouse was subject of a
Municipal Resolution wherein it was declared to be a public
nuisance and he was ordered to transfer the same within 2 months.
Tatel filed a prohibition case before the CFI and lost. On appeal, he
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C2017 / LAW 154 / Local Government Law / Midterm Reviewer
asserted that Ordinance 13 (the law being implemented by the
Municipal Resolution) was unconstitutional, and that the CFI added
a new meaning to the Ordinance by holding that the law penalized
the storing of inflammable objects when the law only penalized the
construction of the warehouses. SC ruled for the validity of the
Ordinance and Resolution. It held that while the syntax of the
Ordinance is problematic (which is common on legislation of local
bodies whose members lack education and training), the law’s
purpose is to avoid loss of life and property in case of accidental fire
– and the law really intends to penalize the construction of
warehouses wherein inflammable objects were to be stored.
Doctrine: Municipal corporations are agencies of the State for the
promotion and maintenance of local self-government and are
endowed with police powers in order to accomplish and carry out the
declared objects of their creation.
Judge Tamin v. CA (1992)
Summary: The Municipality of Dumingag filed an ejectment suit with
prayer for a writ of preliminary injunction and writ of possession over
a parcel of land rented by private respondents. Judge Tanim applied
the rule on eminent domain granted the writ of possession and
issued a writ of demolition for the buildings of private respondents.
CA declared that the issued writs of the RTC were null and void. The
SC held that under the then Local Government Code (BP 337), the
Sangguniang Bayan has to first pass an ordinance before the
municipality may summarily abate a public nuisance. A public plaza
(even if still to be constructed) is outside the commerce of man and
constructions thereon can be abated summarily by the municipality.
However, the writs were still unjustified because the status of the
ownership of the parcel was still in question in the cadastral
proceedings, and its outcome would become a prejudicial question
that would need to be addressed
Doctrine: LGC allows the municipality, through legislative body, to
pass an ordinance in order to summarily abate a public nuisance.
Patalinhug v. CA (1994)
Summary: Sangguniang Panlungsod enacted an ordinance on
zoning of the city. A building permit was issued to the petitioner to
construct a funeral parlor at Cabaguio Avenue. Respondents
complained that the said funeral parlor was within 50 m radius of
INC Chapel and resident structures. The Court held that petitioner
did not violate the ordinance. The Court found that the nearest
structure is a commercial building. Even though the Tepoot building
was declared as residential for tax purposes, it was reclassified as
commercial by the local government and that determination for
zoning purposes must prevail.
Doctrine: 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, in order to promote the general welfare, may interfere with
personal liberty, with property, and with business and occupations.
Bautista, Gastanes, Lopez, Sulit
Parayno v. Jovellanos (2006)
Summary: Parayno’s gas station in Calasiao was complained of
before the SB. They then issued Resolution No. 50 recommending
to the Mayor the closure or transfer of the station on the ground that
it was in violation of the Zoning Code, and that it endangered the
lives and safety of the people, among others. The SC held that the
Municipality invalidly exercised its police powers by failing to accord
Parayno due process (Req #2*) in issuing the Resolution. There was
no showing that there was actual measurement conducted to verify
that the station indeed violated a distance requirement. Moreover,
the distance requirement cited did not apply to Parayno’s filling
station but only to service stations as clearly distinguished under the
Zoning Code. In addition, an earlier HLURB decision has ruled that
she has complied with all legal requirements, and that the station
was not a threat to safety.
Doctrine: Requisites to consider that a local government has
properly exercised its police powers: (1) the interests of the public
generally, as distinguished from those of a particular class, require
the interference of the State, and (2) *the means employed are
reasonably necessary for the attainment of the object sought to be
accomplished and not unduly oppressive.
Greater Balanga Devt Corp v. Municipality of Balanga
(1994)
Summary: Petitioner applied for a business permit to engage in
business as a public market operator and real estate dealer. The
permit was initially granted but the Sangguniang Bayan of Balanga
passed a resolution annulling the said permit. Pursuant to that
resolution, Mayor Banzon issued an executive order revoking the
permit. According to the SC, the permit was not rightfully revoked.
The different grounds raised by respondents (false statements in
application form, application for 2 businesses in one permit, bad
faith, land was subject of adverse claims) were not sufficient to
justify the revocation.
Doctrine: The Sangguniang 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 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
respondents’ acts.
Tano v. Socrates (1997)
Summary: Petitioners are assailing the constitutionality and validity
of Ordinances (banning shipment of lobsters et. al.), which were
enacted by the Sangguniang Panlungsod of Puerto Princesa and the
Sangguniang Panlalawigan of Palawan. SC held that in light of the
principles of decentralization and devolution enshrined in the LGC
and the powers granted to LGUs under Sec. 16 (General Welfare
Clause), and under Secs. 149, 447 (a) (1) (vi), 458 (a) (1) (vi) and 468
(a) (1) (vi), which unquestionably involve the exercise of police power,
the validity of the questioned Ordinances cannot be doubted.
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Doctrine: Indispensable to the system of decentralization is
devolution. One of the devolved powers enumerated in the section
of the LGC on 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.
City of Manila v. Laguio (2005)
Summary: Malate Tourist Dev’t Corp. (owner of Victoria Court in
Malate) filed a petition for declaratory relief challenging the
constitutionality of Ordinance No. 7783, enacted by the City Council
of Manila. The Ordinance prohibited the establishment or operation
of businesses providing certain forms of amusement, entertainment,
services and facilities in the Ermita-Malate area. MTDC prayed that
the Ordinance, insofar as it includes motels and inns among its
prohibited establishments, be declared invalid and
unconstitutional. Judge Laguio rendered the assailed decision,
enjoining petitioners from implementing the Ordinance, and
declaring it null and void. SC upholds Judge Laguio/RTC.
The Ordinance invades fundamental personal and property rights
and impairs personal privileges. It is constitutionally infirm. It
contravenes statutes; it is discriminatory and unreasonable in its
operation; it is not sufficiently detailed and explicit that abuses may
attend the enforcement of its sanctions. The City Council under the
LGC had no power to enact the Ordinance and is therefore ultra
vires, null and void. In spite of its virtuous aims, the enactment of the
Ordinance has no statutory or constitutional authority to stand on.
Doctrine: Local legislative bodies cannot prohibit the operation of
the enumerated establishments under Section 1 or order their
transfer or conversion without infringing the constitutional
guarantees of due process and equal protection of laws, not even
under the guise of police power. LGUs, as agencies of the State, are
endowed with police power in order to effectively accomplish and
carry out the declared objects of their creation. The police power of
the City Council, however broad and far-reaching, is subordinate to
the constitutional limitations thereon; and subject to the limitation
that its exercise must be reasonable and for the public good. The
police power granted to LGUs must always be exercised with utmost
observance of the rights of the people to due process and equal
protection of the law.
Roble v. Villaflor (2006)
Summary: Roble’s application for a permit was denied by the
Municipal Mayor pursuant to a Resolution – disallowing a company
that owns a shipping line to perform arrastre services. Roble filed a
petition for mandamus to compel the Mayor to issue the permit
alleging that it is her ministerial duty and it is the PPA which has the
discretion to issue or refuse permits. SC held that mandamus cannot
lie to compel the Mayor to perform a discretionary duty.
Doctrine: The Mayor’s power to issue licenses is pursuant to Sec. 16
of LGC (Gen. Welfare Clause), which encapsulates the delegated
police power to local governments. Municipal mayor has the power
to issue licenses and permits and 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
Bautista, Gastanes, Lopez, Sulit
power through their respective legislative bodies. Through 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
LGC Sec. 21. Closure and Opening of Roads. –
(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 two-thirds (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 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,
recognized, 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 markets, 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.
Sangalang v. IAC (1989)
Summary: The main issue is the validity of the act of the Mayor of
opening Jupiter Streets and Orbit Streets to the public. BAVA
opposed and alleged that the streets have always been kept open
voluntarily by the Association and that Rufino R. Santos, BAVA
president, has never agreed on the opening of Jupiter and Orbit
streets. SC held that opening of Jupiter Street was warranted by the
demands of the common good, in terms of traffic decongestion and
public convenience. Opening of Orbit was also upheld on the same
rationale. The very Deed of Donation executed by the Ayala
Corporation covering Jupiter and Orbit Streets effectively required
both passageways open to the general public. There is no merit in
BAVA's claims that the demolition of the gates at Orbit and Jupiter
Streets amounts to deprivation of property without due process of
law or expropriation without just compensation. There is no taking
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C2017 / LAW 154 / Local Government Law / Midterm Reviewer
of property involved here. The act of the Mayor now challenged is in
the concept of police power. BAVA has failed to show that the
opening up of Orbit Street was unjustified, or that the Mayor acted
unreasonably
Doctrine: 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.
Cabrera v. CA (1991)
Summary: An old road in the town of Virac was CLOSED by virtue of
Resolution 158 adopted by the Provincial Board of Catanduanes. For
the construction of the new road, the governor executed Deeds of
Sale with 7 property owners who had properties adjacent to the new
road. In exchange for these properties, they were given portions in
the old road. The petitioner had property along the old road and
claims to be prejudiced by the new private owners of the portions of
the old road. He claims that the old road is a public road owned by
the province in its governmental capacity and thus cannot be
sold/bartered. SC held that the provincial government, like the city
councils, are authorized under RA 5185 in relation to Sec 2246 or
RAC. WRT damages, the court held that Cabrera is not entitled to
them.
Doctrine: 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)
Summary: In 1979, an ordinance was enacted by the Metropolitan
Manila Commission, which designated streets and open spaces as
sites for flea markets. Pursuant thereto, Caloocan City Mayor Virgilio
Robles enacted EO 135, which authorized the use of certain streets
and spaces as sites for said markets. Heroes del ’96, where
Petitioner Dacanay lives, was one of those streets. In 1987, Mayor
Antonio Martinez caused the demolition of the stalls on the streets
and open spaces. The stallholders filed a case for prohibition with
the RTC, but it was dismissed. Later, Martinez was succeeded by
Respondent Macario Asistio as Mayor of Caloocan City. The latter
did not pursue the former’s policy of clearing the streets. Dacanay
wrote to Asistio to implement the RTC decision and continue the
demolition, since Heroes del ’96 still had stalls, but Asistio did not
act. Eventually, Dacanay filed a petition for mandamus with the SC,
praying that the respondents be ordered to enforce the RTC
decision. SC granted the petition. The streets are, no doubt, public
streets.
Doctrine: 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 through contract.
The EO issued by Mayor Robles in 1979 contravenes the general law
that reserves city streets and roads for public use; it infringe upon
the vested right of the public to use city streets for the purpose they
Bautista, Gastanes, Lopez, Sulit
were intended to serve i.e. as arteries of travel for vehicles and
pedestrians.
Macasiano v. Diokno (1992)
Summary: The Municipality of Parañaque passed Ordinance No. 86
Series of 1990 authorizing the closure of five streets (J. Gabriel, G.G.
Cruz, Bayanihan, Lt. Garcia Extension and Opena) for the
establishment of a flea market. The municipal council approved this;
the MMA also approved subject to four conditions. Thereafter, the
municipality of Parañaque and Palanyag entered into an agreement
for the management of the vending areas, pursuant to a resolution
authorizing Mayor Ferrer to enter into a contract for the said
purpose. Brig. Gen. Macasiano ordered the destruction and
confiscation of the stalls along G.G. Cruz and J. Gabriel St. and wrote
Palanyag to discontinue the flea market within ten days. The RTC
issued a TRO against the implementation of Brig. Gen Macasiano’s
letter. RTC later on upheld the validity of the ordinance. SC reversed.
Doctrine: 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)
Summary: Sps Pilapil and Sps Colomida owned lands near each
other’s. The property of Colomidas has for its use a camino vecinal
connected to the National Road, however, this traverses the Sps
Pilapil’s property, whom had conveyed threats to the Colomidas for
trying to improve the road. SC ruled in favor of the Pilapils. There is
unrebutted evidence that the Municipality of Liloan, through its
Sangguniang Bayan, had approved a zoning plan which indicates
the relative location of the camino vecinal. Under the zoning map
approved by the Sangguniang Bayan, the camino vecinal passes the
side of the land of the Pilapils
Doctrine: A camino vecinal is a municipal road. 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.
MMDA v. Bel-Air Village Ass’n Inc (2000)
Summary: MMDA notified BAVA through a letter that it is requesting
BAVA to open Neptune St. (private road owned by BAVA) to the
public. On the same day of receipt of the letter BAVA was informed
that the perimeter wall separating the subdivision from the adjacent
Kalayaan Ave. would be demolished. BAVA prayed for the issuance
of a TRO and preliminary injunction enjoining the opening of
Neptune and prohibiting the wall demolition. RTC denied injunction,
but CA granted it. SC held that MMDA does not have authority to
open Neptune St.
Doctrine: 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 St. without the proper
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C2017 / LAW 154 / Local Government Law / Midterm Reviewer
ordinance. National Legislature may delegate police power to the
President and administrative boards as well as lawmaking bodies of
municipal corporations or local government units. Once delegated,
the agents can exercise only such legislative powers as are conferred
on them by the national lawmaking body.
Sun Valley Home Owner’s Association v. Barangay Sun
Valley (2011)
Summary: Barangay Sun Valley issued a resolution ordering the
opening of Rosemallow and Aster street. This was contested by New
Sun Valley Homeowner’s Assoc because it was not done through an
ordinance as mandated by law. The court held that since the lots
were donated to the barangay, they had title to it and it became
public property. Being public property, it should be open to the
public and not obstructed by the gates placed by the homeowner’s
association. It is not an opening of the road that was done by the
barangay which requires an ordinance, but a reminder to the
homeowner’s association that they should open the road because it
should actually be open for the general public.
Doctrine: Having been already donated or turned over to the City
Government, the road lots have since then taken 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.
B. Eminent Domain
LGC Sec. 19. Eminent Domain. - A 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 fifteen percent (15%) of the fair market value
of the property based on the current tax declaration 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, Sec 9 Constitution – Private Property shall not be taken for
public use without just compensation

RULE 67 Expropriation

Rights of Plaintiff after

Defenses and Order of
Verified Complaint Entry of plaintiff Judgment and
Objections Expropriation
Payment

With
objections/defenses:
answer within time
stated in summons
Ascertainment of
Enter and Appropriate
Compensation

If none: notice of Uncertain Ownership;

Not Delayed by Appeal
appearance Conflicting Claims

Commissioners Retain

Report and judgment

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C2017 / LAW 154 / Local Government Law / Midterm Reviewer
1. Contents of Complaint (Sec 1):
 Right and purpose of expropriation
 Describe the real or personal property
 Join defendants – all persons owning or claiming to own or
occupying any part or interest.
 Make averments if a) title is with the Republic but occupied by
private individuals or; b) title is obscure or doubtful
2. Entry of Plaintiff (Sec 2):
 Upon filing of complaint and after due notice to defendant/s
 Deposit of amount equivalent to assessed value
3. Defenses and Objections (Sec 3)
 No objections
o File notice of appearance and manifestation
o Contents: 1) Manifestation to the effect that he has no
objection or defense; and (2) Specifically
designating/identifying the property in which he claims to be
interested
 With Objections
o File an answer to complaint within time stated in summons
o Contents: 1) Specifically designating/identifying the property
in which he claims to have an interest in; (2) Nature and
extent of the interest; and (3) All objections and defenses to
the complaint or any allegation
o No counterclaim, cross-claim, or third-party complaint
alleged or allowed.
4. Order of Expropriation (Sec 4):
 Issued when: 1) Objections or defenses against the right of
plaintiff to expropriate are overruled; or 2) No party appears to
defend the case
5. Ascertainment of Compensation (Sec 5)
 Court appoints not more than 3 Commissioners who will
ascertain the just compensation for property
 Objections to appointment: 1) to be filed within 10 days; 2) to be
resolved within 30 days
6. Commissioners (Sec 6 – 8)
 Commissioners take and subscribe to an oath
 To view and examine the property sought to be expropriated
 Assess the consequential damages and benefits
 Report – to be filed within 60 days from the time of their
appointment
o Parties allowed to object to findings of report within 10 days
 Court may accept report or recommit the same for further facts
o May also set aside report and appoint new commissioners
o May also accept and reject report in part
6. Uncertain Ownership; Conflicting Claims (Sec 9)
 If ownership of property is uncertain or there are conflicting
claims
o Court may order sums awarded as compensation
o Judgment shall require payment of sums awarded to
defendant before plaintiff can enter property or retain it for
public use
Bautista, Gastanes, Lopez, Sulit
7. Rights of Plaintiff (Sec 10)
 Upon payment of compensation (with legal interest)
o Right to enter
o Right to retain (if he took immediate possession pursuant to
Sec 2)
8. Entry Not Delayed by Appeal (Sec 11)
 But if appellate court decides that plaintiff had no right to
expropriate
o Order RTC to restore possession to defendant
o Determine damages
Moday v. CA (1993)
Summary: Municipality of Bunawan expropriated Moday’s private
property by virtue of a municipal resolution, which was disapproved
by the Sangguniang Panlalawigan. The SC held that the
expropriation may proceed. The Sangguniang Panlalawigan's
disapproval of Municipal Resolution No. 43-89 is an infirm action,
which does not render said resolution null and void. The
Sangguniang Panlalawigan was without the authority to disapprove
Municipal Resolution No. 43-89 for the Municipality of Bunawan
clearly has the power to exercise the right of eminent domain and its
Sangguniang Bayan the capacity to promulgate said resolution,
pursuant to the earlier-quoted Section 9 of B.P. Blg. 337.
Doctrine: The limitations on the power of eminent domain are that
the use must be public, compensation must be made and due
process of law must be observed.
Camarines Sur v. CA (1993)
Summary: Pursuant to Resolution #129, the Province of Camarines
Sur filed expropriation cases against the San Joaquin brothers. The
latter moved to dismiss on the ground of inadequacy of price. RTC
denied the MTD and authorized the Province to take possession of
the property upon deposit of a bond. CA reversed and required the
Province to secure authority from DAR to convert the land from
agricultural to non-agricultural. SC upheld the RTC, ruling that
there was no requirement for DAR approval under the (old) LGC, nor
in the CARL.
Doctrine: While LGUs’ delegated power of eminent domain is only
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 conferring the power of eminent domain to political
subdivisions cannot be broadened or constricted by implication.
Municipality of Meycauayan v. IAC (1988)
Summary: Municipality of Bulacan wanted to expropriate the lot of
Philippine pipes. Philippine Pipes opposed such resolution. It was
found upon a petition for review on certiorari to the SC that there
was no genuine necessity for the lot to be expropriated since there
was other areas (adjacent to the lot) more suitable for the public
road project.
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C2017 / LAW 154 / Local Government Law / Midterm Reviewer
Doctrine: 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 party adversely affected is the victim of
partiality and prejudice.
Quezon City v. Ericta (1983)
Summary: QC Council enacted an Ordinance. With Sec 9 thereof
mandating memorial park lots to donate 6% of their land are in
order to accommodate pauper burials. SC declared Sec 9 as
unconstitutional. When the 1983 LGC provided that a sanggunian
may provide for the burial of the dead in such place and manner as
prescribed by law or ordinance, it simply authorized the city to
provide its own city-owned land or to buy/expropriate private
properties to construct public cemeteries.
Doctrine: 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 because there is no just
compensation when these lots were “donated”.
City of Manila v. Arellano College (1950)
Summary: Manila City sought to expropriate the land belonging to
Arellano Law. CFI dismissed plaintiff’s petition. The SC affirmed and
denied the petition for expropriation because it would only benefit a
few families (who were so poor that they could not afford to buy the
P140,000 lands), and the land was to be Arellano’s permanent
school site (which would benefit the public by preparation of a young
men and young women for useful citizenship and for service to the
government and the community.
Doctrine: To authorize 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 necessity must be of a 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 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 of Manila (1920)
Summary: City of Manila petitioned to expropriate lands for the
purpose of constructing a public road. Some lands affected are used
by the Chinese community as cemetery. The Chinese community
avers that there is no necessity to expropriate their land. IN fact, Mr.
Tambunting is offering the city another parcel of land for the
proposed road that would not traverse the Chinese cemetery. CFI
held that there was no necessity to expropriate the land of the
Chinese community. The city of Manila appealed this decision,
arguing once its authority to expropriate land has been established,
it may expropriate any land it may desire, the only function of the
Bautista, Gastanes, Lopez, Sulit
court is to ascertain the value of the land in question. The courts
cannot inquire into the necessity of the expropriation. The Supreme
Court disagreed. It held that based on the records, that there is no
proof of the necessity of opening the road through the cemetery.
(Thus, because no necessity exists, the Court did not categorically
classify the cemetery as public, although the Court noted that it
seems to have been established under governmental authority. If it
is public cemetery, then the City cannot expropriate a property
already devoted for public use).
Doctrine: 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 ample authority to make 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, public.
Municipality of Parañaque v. V.M. Realty Corporation
(1998)
Summary: The Municipality of Paranaque filed a complaint for
expropriation against VM Realty over parcels of land on the strength
of a SB Resolution. The RTC and CA denied this, stating that there
must first be an ordinance, and that the action was barred by res
judicata. The SC agreed that there was no cause of action for such
complaint must be pursuant to an ordinance. However, res judicata
cannot bar the State’s exercise of eminent domain, thus Paranaque
may later file an action for expropriation provided all legal requisites
are met.
Doctrines: (1) With the enactment of the LGC, an ordinance is
required to exercise the power of eminent domain. Mere resolution
will not suffice. (2) The principles of res judicata and law of the case
cannot bar the State’s exercise of power of eminent domain.
Beluso v. Panay (2006)
Summary: Petitioners were owners of lots which the Municipality of
Panay, Capiz sought to expropriate via SB Resolution. The RTC
granted it and issued an Order. Upon appeal to the CA, Petitioners
raised the argument that the expropriation was invalid for being
based on mere resolution, not on an ordinance. The CA did not
discuss nor rule on this point and proceeded to uphold the
expropriation. Upon appeal to the SC, the petitioners averred that
the expropriation was invalid for not being based on an ordinance,
for lacking a previous offer, and for being politically motivated rather
than for public purpose. The SC held that the first requisite of an
ordinance was not met therefore all other issues raised were
unnecessary. The complaint for expropriation was defective.
Doctrine: The Court is not precluded from considering the fact of lack
of proper ordinance for expropriation despite being raised for the
first time on appeal.
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City of Cebu v. Sps. Dedamo (2002)
Summary: Petitioner sought to obtain parcels of land from
respondent through expropriation. After having agreed to conform
to the valuation of the commissioners, petitioner brought an action
contesting the assessments of said commissioners, claiming that
just compensation should be based on the market price of the
property at the commencement of the expropriation proceedings.
SC held that just compensation should be determined as of the time
of taking, the applicable law in this case is Sec. 19, RA 7160. Other
reasons for denying the petition were: the document agreed upon by
the parties should be complied with in good faith, petitioner is
estopped from contesting the values as it failed to object during the
hearing, and substantive law should prevail over procedural law.

Doctrine: Eminent domain is a fundamental State power that is

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 of the Philippines v. CA (2002)

Summary: Expropriation proceedings, involving land owned by Luis
Santos) were commenced in 1969. The Republic took possession of
the premises and made initial deposit. In 1979, RTC condemned the
properties, ordered payment of just compensation and legal
interest. The Republic failed to pay JC. In 1984, Heirs of Santos
sought payment of JC. When the Republic motioned to deposit the
JC with the court, the Heirs countered, wanting to adjust the
amount, or otherwise have the property returned. In the same year,
RTC ruled that the 1979 Decision had become unenforceable on the
ground of prescription, and ordered the return of the property to the
Heirs. Court held that the 1979 Decision had been partially complied
with upon the Republic’s occupation, utilization, and exercise of
dominion over the property and payment of initial deposit. Court
held that the Heirs are not entitled to recovery of the property,
emphasizing that the case relied upon by the Heirs involved a
municipal government, which did not possess the pervasive and all-
encompassing power vested in the legislative branch of
government. Legal interest was also properly imposed from the time
of taking in 1969.

Doctrine: For local governments to be able to power of eminent

domain, it must, by enabling law, be delegated to it by the national
legislature. But even then, this delegated power of eminent domain
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; remedy is to demand for fair market value of the
property.

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C2017 / LAW 154 / Local Government Law / Midterm Reviewer
C. Taxation and Fiscal Administration
1. Local Taxation
1987 Constitution
Art X. Sec. 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. Sec. 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. Sec. 7. Local governments shall be entitled to an equitable
share in the proceeds of the utilization 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.
SUMMARY OF LGC PROVISIONS
A. TAXING POWERS OF LOCAL GOVERNMENTS IN GENERAL
1. Fundamental Principles (Sec 130)
 Taxation shall be uniform in each local government unit.
 Taxes, fees, charges and other impositions shall:
(a) be equitable and based as far as practicable on the
taxpayer's ability to pay;
(b) be levied and collected only for public purposes;
(c) not be unjust, excessive, oppressive, or confiscatory; and
(d) not be contrary to law, public policy, national economic
policy, or in the restraint of trade.
 Collection shall in no case be let to any private person,
 Revenue collected shall inure solely to the benefit of, and be
subject to the disposition by, the local government unit levying
the imposition unless otherwise specifically provided herein,
 Each local government unit shall, as far as practicable, evolve
a progressive system of taxation.
 The power to impose a tax, fee, or charge or to generate
revenue under this Code shall be exercised by the sanggunian
of the concerned LGU through an appropriate ordinance (Sec
132).
2. Common Limitations
 Except as provided in the LGC, LGUs may not levy taxes
enumerated in Sec. 133. These include:
o Income tax (except banks);
o Documentary stamp tax;
o Taxes on acquisitions mortis causa;
o Taxes on exported Phil. products;
o Customs, fees, and charges (in general)
Bautista, Gastanes, Lopez, Sulit
o Taxes on agricultural/aquatic products when sod by
marginal farmers/fishermen
o Excise taxes under the NIRC, and taxes on petroleum
products
o Taxes on persons engaged in transportation;
o Percentage or VAT on sales or similar transactions;
o Charges for motor vehicle registration;
o Taxes on the National Government, its agencies and
instrumentalities
3. Common Revenue-Raising Powers
 Reasonable fees and charges for services rendered.
 Rates for operation of public utilities owned, operated, and
maintained by LGU’s.
 Toll fees or charges for the use of any public road, pier, or wharf,
waterway, bridge, ferry or telecommunication system funded and
constructed by the LGU concerned.
o Except those as enumerated by law
B. COMMUNITY TAX (Rocky Lecture Note: Poll tax is part of this
community tax).
1. Who are liable
 Natural persons (P5 annual tax + P1 for every P1,000
income, which shall not exceed P5,000)
o Natural persons are liable to pay the community tax
in their place of residence
 Juridical persons (P500 annual community tax) + [which
shall not exceed P10,000]
o Juridical persons are liable to pay the community tax
in their place of principal office
2. Distribution of Proceeds.
 BIR shall be the agency tasked with printing the
community tax certificates.
 Proceeds shall accrue to the general funds of the LGU’s.
o However, a portion thereof shall accrue to the
national government to cover the actual cost of
printing and distribution of the forms and other
related expenses.
 The proceeds of the community tax actually and directly
collected by the city or municipal treasurer shall accrue
entirely to the general fund of the city or municipality
concerned.
o If collected through the barangay treasurers,
apportioned as follows: 50% to the general fund of
the city/municipality concerned; 50% shall to the
barangay where the tax is collected.
D. SPECIAL PROVISIONS ON LOCAL GOVERNMENT UNITS
1. Provinces
 Tax on transfer of ownership of real property
o Tax base is the higher amount between the total
consideration involved in the transfer or of the
fair market value.
 Tax on Printing and Publication Business
o Base is gross annual receipts for existing
businesses, and capital investment for new
businesses
o Books or reading materials prescribed by DepEd
as school texts or references are exempted.
 Franchise Tax
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o Base is gross annual receipts for existing
businesses, and capital investment for new
businesses
o Exemption: Those provided by law
 Tax on Sand Gravel and Other Quarry Resources
o Division of Proceeds: 30% to province; 30% to
component city/municipality; 40% to barangay
 Rocky Note: eto yung pinag-aagawan ng
mga LGUs.
 Professional Tax
o Place of payment: province where he practices
his profession or maintains his principal office.
 Payment of the tax in any province entitles
the taxpayer to practice his profession in
any part of the Philippines without being
subjected to any other tax for his practice.
o Note: Employers must require payment of
professional tax before hiring an employee.
 Amusement Tax
o Collected from proprietors, lessees, or operators
of theaters, cinemas, concert halls, circuses,
boxing stadia, and other places of amusement.
Base: gross receipts from admission fees.
 For theaters/cinemas, the tax shall first be
deducted and withheld by taxpayers and
paid to the provincial treasurer before the
gross receipts are divided between the
taxpayers and the distributors of the
cinematographic films.
o Exemption: operas, concerts, dramas, recitals,
painting and art exhibitions, flower shows,
musical programs, literary and oratorical
presentations, except pop, rock, or similar
concerts
o Division of proceeds: Shared equally by the
province and the municipality
 Tax for Every Delivery Truck/Van of Manufacturers
or Producers, Wholesalers of, Dealers, or Retailers
in, Certain Products.
o Products covered: distilled spirits, fermented
liquors, soft drinks, cigars and cigarettes, and
other products as determined by the
sangguniang panlalawigan
o The taxpayers herein shall be exempt from the
tax on peddlers.
2. Municipalities (Note: Municipalities in Metro Manila may
levy taxes at rates which shall not exceed by 50% of the
maximum rates prescribed by the Local Government Code).
 Tax on Business
o 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;
o Wholesalers, distributors, or dealers in any
article of commerce of whatever kind or nature:
o Exporters, and on manufacturers, millers,
producers, wholesalers, distributors, dealers or
retailers of essential commodities enumerated
hereunder (rice and corn, wheat or cassava four,
cooking oil, laundry soap, agricultural
implements, feeds, school supplies, cement,
etc.):
o Retailers
o Contractors and other independent contractors
Bautista, Gastanes, Lopez, Sulit
o Rate for banks and other financial institutions
 Based on receipts derived from interest,
commissions and discounts from lending
activities, income from financial leasing,
dividends, rentals on property and profit
from exchange or sale of property,
insurance premium.
o Peddlers engaged in the sale of any
merchandise or article of commerce
o Businesses subject to the excise, value-added or
percentage tax under the NIRC
o Other businesses not otherwise specified in the
LGC, which the sanggunian concerned may
deem proper to tax
 Situs of Taxation and Distribution of Proceeds for
Business Taxes
o For branches of taxpayers of business tax:
100% to LGU where branch is located
 If sale commenced in LGU where no
branch exists, LGU where principal
o Taxpayers with factories, project offices,
plants, and plantations in the pursuit of their
business: 30% where principal office is
located; 70% where factory/proj office, etc. is
located
 If plantation is located at a place other
than where factory is located, the 70%
will be divided 60-40: 60% to location of
factory; 40% to location of plantation
 If more than 2 factories/plantations/etc.,
70% will be divided pro rata among the
localities in proportion to their respective
volumes of production during the taxable
period.
 Other fees and charges that may be imposed by the
municipal govenment
o On any business/occupation on the practice of
any profession or calling,
 Except those reserved to the province under
Sec 139
o Fees for Sealing and Licensing of Weights and
Measures
o Fishery Rentals, Fees, and Charges – exclusive
with municipalities. These may be imposed on:
 The grant of fishery privileges to erect
aquatic beds or bangus fry areas;
 The grant of the privilege to gather, take or
catch fisheries using certain means;
 The issuance of licenses for the operation of
fishing vessels.
3. Cities
 Cities may levy the taxes, fees, and charges which
provinces or municipalities may impose:
o Exception: otherwise provided by the LGC
 Taxes, fees and charges levied and collected by highly
urbanized and independent component cities shall
accrue to them and distributed in accordance with the
provisions of the LGC.
 Rates may exceed the maximum rates allowed for the
province or municipality by not more than fifty
percent (50%) except the rates of professional and
amusement taxes.
4. Barangays
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 Business taxes for business establishments with
gross sales of receipts of the preceding calendar year
of P50,000.00 or less, for cities and P30,000.00 or
less, for municipalities.
 The following may be levied upon by barangays as
long as the charges and fees are reasonable.
o Services rendered in connection with the
regulations or the use of barangay-owned
properties or service facilities such as palay,
copra, or tobacco dryers.
o Commercial breeding of fighting cocks,
cockfights and cockpits;
o Places of recreation which charge admission
fees;
o Billboards, signboards, neon signs, and outdoor
advertisements.
o Barangay clearance for any business or activity
to be located or conducted within the barangay
E. CIVIL REMEDIES FOR COLLECTION OF REVENUES (ON THE PART
OF LOCAL GOVERNMENT)
1. Lien (administrative or judicial)
2. Civil Remedies
 Distraint of personal property
 Levy on real property
 Judicial action.
F. MISCELLANEOUS PROVISIONS
1. SEC 186. – LGU’s have the power to levy taxes not imposed
in the LGC/NIRC, provided:
 Taxes are not unjust, excessive, oppressive,
confiscatory, or contrary to national policy.
 The ordinance levying the taxes shall not be enacted
without public hearing conducted for the purpose.
2. Any question as to the validity of the tax ordinance may be
raised on appeal to the DOJ Secretary within 30 days from
the effectivity thereof. DOJ Sec shall render a decision
within 60 days from date of receipt of the appeal
3. Tax ordinances shall be published in full for 3 consecutive
days in a newspaper of local circulation
4. Copies of tax ordinances shall be furnished to the
respective local treasurers for public dissemination.
5. LGUs shall have the authority to adjust the tax rates as
prescribed herein not oftener than once every five years.
But adjustments must never exceed 10% of rates under the
LGC.
6. Unless otherwise provided in the LGC, tax exemptions or
incentives granted to, or presently enjoyed by all persons,
whether natural or juridical, including government-owned
or controlled corporations, except local water districts,
cooperatives duly registered under R.A. No. 6938, non-
stock and non-profit hospitals and educational
institutions, are hereby withdrawn upon the effectivity of
this Code.
G. TAXPAYER’S REMEDIES
1. Local taxes shall be assessed within 5 years from the date
they become due, and then collected within 5 years from
date of assessment.
2. Prescription periods provided in the preceding paragraphs
shall be suspended when:
 The treasurer is legally prevented from making the
assessment of collection;
Bautista, Gastanes, Lopez, Sulit
 The taxpayer requests for a reinvestigation and
executes a waiver in writing before expiration of the
period within which to assess or collect; and
 The taxpayer is out of the country or otherwise cannot
be located.
3. Taxpayer can protest deficiency, surcharges, or other
defective assessment within 60 days from receipt of notice
of assessment.
4. A written claim for refund or credit needs to be filed with
the 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 two (2) years from the
date of the payment of such tax or from the date the
taxpayer is entitled to a refund or credit.
CASES – none of these were discussed in class
ESTANISLAO v. COSTALES
Facts: Zamboanga City, thru an Ordinance, imposed a P0.01 tax per
liter of softdrinks produced, manufactured, and/or bottled within
the territorial jurisdiction of the city.
Held: SC held that the Ordinance was null and void as it was not
within the authority of the City to impose the said tax. The authority
of the City is limited to the imposition of a percentage tax on the
gross sales or receipts of non-essential products at the rate of not
exceeding 2% of the gross sales or receipts of the softdrinks for the
preceding calendar year. The tax being imposed under said
Ordinance is based on the output or production and not on the gross
sales or receipts as authorized under the Local Tax Code.
PPC v. MUNICIPALITY OF PILILLA
Facts: PPC owned and maintained an oil refinery and 49 storage
tanks for its petroleum products in Pililla, Rizal. The Municipality of
Pililla enacted Municipal Tax Ordinance No. 1 (Pililla Tax Code of
1974), and then filed a complaint against PPC for the collection of
the business tax from 1979 to 1986; storage permit fees from 1975 to
1986; mayor's permit and sanitary inspection fees from 1975 to 1984.
Held: SC upheld the validity of the Municipal Tax Ordinance,
especially considering that the provisions on business taxes were
literal reproductions of business tax provisions under the Local Tax
Code. However, PPC is not liable for storage fees, since the tanks
used were owned by PPC, and not by the Municipality. Thus, it is not
a charge for any service rendered by the municipality. Finally, the SC
held that the Municipality can only collect taxes due from 1976,
following Art. 1143 of the Civil Code (10 year prescription for actions
upon an obligation created by law).
Floro Cement v. Judge Gorospe
Facts: Floro Cement, a business engaged in manufacturing and
exporting cement, was taxed by the Municipality of Lugait for
manufacturer’s and exporter’s tax pursuant to two Municipal
Ordinances. They claimed tax exemption based on PD 231 and PD
463 granting exemptions to mining products.
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Held: Floro Cement is not exempt. Cement is not a mining product
because it is not cement itself that is mined but the ingredients
thereof. For tax ordinances, exemptions are strictly construed
against the person seeking to be exempted.
TUZON v. CA
Facts: Sangguniang Bayan of Camalaniugan (Cagayan) issued
Resolution 9 (R9), obligating the municipal treasurer to enter into
agreements with thresher operators for the them to donate 1% of the
palay threshed by them as a requirement for application for a
municipal permit. Jurado applied for a permit, but was deined by the
mayor and municipal treasurer for failing to comply with R9. Jurado
challenges validity of R9.
Held: R9 is valid, since its validity was no longer challenged as an
issue before the SC. However, SC held that the obligation involved
cannot be a donation because donations are liberal, and not
obligatory. And if it is to be considered if it is to be considered a tax
ordinance, then it must have shown to have been enacted in
accordance with the requirements of the Local Tax Code, such as a
public hearing the approval by the Secretary of Finance, and the
requisites for publication of ordinances in general.
DRILON v. LIM
Facts: The City of Manila passed the Manila Revenue Code through
an ordinance. Four oil companies appealed to DOJ Secretary under
LGC Sec 187, which provides that questions on constitutionality or
legality of tax ordinances may be appealed to the DOJ Sec. DOJ Sec
then declared the ordinance null and void for non-compliance with
the requirements of the procedure in enacting tax ordinances, and
for containing provisions contrary to law and public policy. RTC then
reversed DOJ Sec and held that Sec 187 was void for being an
exercise of the power of control, thus violative of local autonomy and
the supervisory power of the President.
Held: Sec. 187 is valid, as it merely embodies supervision. Under this
power, the supervisor merely sees to it that the rules are follow, but
he himself does not lay down such rules, nor does he have the power
to modify or replace them. However, despite the validity of Sec 187,
the tax ordinance was held valid for complying with the procedural
requirements. While the requirement that the ordinance be posted
was not met, due process was nonetheless satisfied by the
publication in newspapers of general ccirculation.
MCIAA v. Marcos (1996)
Facts: MCIAA was assessed real property taxes by the City of Cebu.
MCIAA contends that under its charter, it is tax exempt. Also, that as
a GOCC, it is in the same footing as agency or instrumentality of
government – which is exempt from real property taxes.
Held: MCIAA is liable to pay real property tax. A close reading of the
LGC provisions show that the exemptions previously granted to
MCIAA has been withdrawn and that no other exemption was
granted to it.
Bautista, Gastanes, Lopez, Sulit
MCIAA v. Marcos (2015)
Facts: Following the 1997 ruling above, the City of Lapu-Lapu issued
Statements of Real Estate Tax to the MCIAA, assessing the lots
comprising the Mactan International Airport. DOJ Secretary issued
Opinion No. 50, holding that MCIAA’s properties used for airport
purposes are owned by the State and are merely held in trust by
MCIAA. Thus, MCIAA sought to declare that the airport properties
are exempt from real estate taxes. CA held that MCIAA is a GOCC
and is liable for real property tax.
Held: SC reverses CA using the 2006 MIAA Decision as basis for
holding that MCIAA is an instrumentality (not a GOCC). Thus, its
properties actually, solely and exclusively used for public purposes
are not subject to real estate taxes.
COCA-COLA BOTTLERS PHILS. v. CITY OF MANILA
Facts: The City of Manila enacted Tax Ordinance 7988 which
removed exemptions for certain taxes on businesses including Coca-
Cola. DOJ and BLGF issued Resolutions declaring Ord. 7988 null
and void for failure to comply with the publication requirement.
However the City continued assessing business taxes based on the
Tax Ordinance. Coca-Cola filed an injunction suit against its
implementation. Pending this, Ord. 8011 was enacted to amend
7988.
Held: SC held that Ord. 7988 was null & void as per the DOJ
Resolution and BLGF Order. The publication requirement for tax
ordinances is mandatory for this is the only safeguard against any
unjust and unreasonable exercise of the taxing powers by ensuring
that the taxpayers are notified through publication, and are
therefore able to voice out their views or objections to the said
measure. Ordinance 8011 cannot cure Ordinance 7988. It was also
null & void for the law it sought to amend did not legally exist. If an
order or law sought to be amended is invalid, then it does not legally
exist. Instead of amending, another tax measure should be enacted
which strictly complies with the requirements of law, both
procedural and substantive.
PETRON CORP v. TIANGCO (MAYOR OF NAVOTAS)
Facts: Petron was assessed business taxes by the City of Navotas for
its depot or bulk plant engaged in selling of diesel fuels to vessels.
Petron filed a complaint against the assessment made, but the RTC
ruled in favor of Navotas. Mayor Tiangco then issued a Closure Order
against Petron for its failure to pay the taxes. Petron filed a petition
for review with the SC. Respondents argue that Sec. 133(h) merely
prohibits LGUs from imposing direct or excises taxes on petroleum
products, thus business taxes may be imposed.
Held: Assessment is invalid. The two clauses under Sec. 133(h) must
refer to two different prohibitions. The first one prohibits excise taxes
or taxes on specific articles, and the second prohibits all kinds of
taxes on petroleum products. The second was deemed to include
business taxes. Therefore, the assessment made was void. Pursuant
to Sec. 133(h) LGC, all sorts of taxes on petroleum products,
including business taxes, are prohibited from being imposed by local
government units.
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MIAA v. CA (2006)
Facts: The MIAA (corp that manages NAIA) is being assessed real
property taxes by the Paranaque City. MIAA paid for a portion of the
taxes. Paranaque then threatened to sell at public auction the said
properties for MIAA’s failure to pay the RPT.
Held: As a government instrumentality, MIAA is not a taxable
person. As a general rule, local governments have no power to tax
the national government, its agencies and instrumentalities.
Exception: if otherwise provided in the LGC. However, the portions
of MIAA property that have been leased out to private entities are
not exempt from RPT. Real property owned by the Republic,
whether titled in the name of the national government, its agencies
or instrumentalities is subject to real estate tax if the beneficial use
of such property is given to a taxable entity.
2. REAL PROPERTY TAXATION
A. GENERAL PROVISIONS
1. Fundamental Principles
 Real property shall be appraised at its current and fair
market value.
 Real property shall be classified for assessment
purposes on the basis of its actual use.
 Assessment shall be based on a uniform classification
within each local government unit.
 Appraisal, assessment, levy and collection shall not
be let to any private person.
 The appraisal and assessment of real property shall
be equitable.
 The provinces and cities (and municipalities within
Metro Manila) shall be primarily responsible for the
proper, efficient, and effective administration of the
real property tax.
B. APPRAISAL AND ASSESSMENT: NOTE: Purpose of these
provisions is to determine the tax base.
 Duty of persons owning or administering real property, as
well as persons acquiring any real property to prepare a
sworn statement declaring the true value of their property.
 Duty of local assessor to make such declarations if
owner/acquirer defaults in his duty.
 Claiming tax exemptions is done through filing with the
local assessor documentary evidence of such exemptions
within 30 days from date of declaration.
 Local assessors must prepare a schedule of fair market
values of real properties in their respective local
government units. But it is the sangguniang concerned that
will enact by ordinance the efficacy of such schedule. The
schedule must be published in a newspaper of general
circulation.
o Amendment thereof may be done by recommendation
of the local assessors to the sanggunian.
 Real property classified: residential, agricultural,
commercial, industrial, mineral, timberland or special.
o Special classes of property are those actually, directly
and exclusively used for hospitals, cultural, or scientific
purposes, and those owned and used by local water
districts, and government-owned or controlled
corporations rendering essential public services in the
Bautista, Gastanes, Lopez, Sulit
supply and distribution of water and/or generation
and transmission of electric power.
 Local assessors shall make a classification, appraisal and
assessment of real property when:
o real property is declared and listed for taxation
purposes for the first time;
o there is an ongoing general revision of property
classification and assessment; or
o a request is made by the person in whose name the
property is declared, the provincial, city or municipal
assessor or his duly authorized deputy shall, in
accordance with the provisions of this Chapter, make a
classification, appraisal and assessment or taxpayer's
valuation thereon:
 Provided, That the assessment of real property
shall not be increased oftener than once every 3
years except in case of new improvements
substantially increasing the value of said property
or of any change in its actual use.
 Real property assessed for the first time shall be liable for
back taxes.
C. ASSESSMENT APPEALS
 Appeal must be made by person having legal interest in the
property within 60 days from the date of receipt of the written
notice of assessment before the Board of Assessment Appeals
(BAA).
o BAA must decide the appeal within 120 days from receipt
of such appeal, deciding the case based on substantial
evidence. A person not satisfied with BAA decision can
appeal to Central Board of Assessment Appeals (CBAA)
within 30 days after receipt of the BAA decision of the
BAA. CBAA decision is final and executory.
 Appeals do not suspend collection of realty taxes on the
property involved.
D. IMPOSITION OF REAL PROPERTY TAX
 Province/City may levy ad valorem tax on real property, with a
uniform rate.
 The following are exempted from payment of the real property
tax:
o Real property owned by the Republic or any of its
political subdivisions except when the beneficial use
thereof has been granted, for consideration or
otherwise, to a taxable person;
o Charitable institutions, churches, parsonages or
convents appurtenant thereto, mosques, non-profit or
religious cemeteries and all lands, buildings, and
improvements actually, directly, and exclusively used
for religious, charitable or educational purposes;
o All machineries and equipment that are actually,
directly and exclusively used by local water districts and
government owned or controlled corporations engaged
in the supply and distribution of water and/or
generation and transmission of electric power;
o All real property owned by duly registered cooperatives
as provided for under R.A. No. 6938; and
o Machinery and equipment used for pollution control
and environmental protection.
 Any exemption from real property tax previously granted to, or
presently enjoyed by, all persons, including all GOCC’s were
withdrawn upon the effectivity of the Local Government Code.
E. SPECIAL LEVIES ON REAL PROPERTY: A province/city may levy
the following taxes for ff. purposes:
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C2017 / LAW 154 / Local Government Law / Midterm Reviewer
 1% tax on assessed value (AV) of real property to accrue to the
Special Education Fund (SEF).
 Tax not exceeding 5% on AV of real property on idle lands (in
addition to basic real property tax).
 Special levy on lands specially benefitted by public works not
exceeding 60% of actual cost of the works
o Ordinances imposing a special levy shall describe the
nature, extent, and location of the public woks to be
undertaken, the estimated cost, the metes and bounds,
and the number of annual installments for the payment
of the special levy (5-10 years only).
o These ordinances must have a prior public hearing, and
notice to owners of the affected real property or persons
having legal interest therein as to the date of hearing.
o Special levy shall be computed according to the assessed
valuation of the lands affected.
o The special levy shall accrue on the first day of the quarter
after the effectivity of its ordinance.\
o Remedies of taxpayer is governed by provisions on
Assessment Appeals.
F. COLLECTION OF REAL PROPERTY TAX
 RPT accrues on Jan 1 and constitutes a lien on the property
from that date. Such lien is superior to any other lien and shall
only be extinguished upon payment of the delinquent tax.
 Treasurer shall post the notice of dates when tax may be paid
without interest in a conspicuous and publicly accessible place
at the city/municipal hall and publish the same in a
newspaper of general circulation once a week for two weeks.
For basic RPT and SEF – must be done on or before Jan 31.
 Basic RPT and SEF may be paid without interest in 4 equal
installments (Mar 31, Jun 30, Sep 30, Dec 31)
 Tax discount not exceeding 20% of annual tax due may be
granted to advanced prompt payment of basic RPT and SEF.
 Protests may only be entertained after payment of the tax.
Payments under protest shall be annotated with “paid under
protest” on the tax receipts. Protest must be made within 60
days from receipt to treasurer.
o Tax paid shall be held in trust by the treasurer concerned.
o If protest ruled in favor of taxpayer, the tax paid shall be
applied as tax credit.
o If against his favor, remedies before Assessment Appeals
may be resorted to.
 Notice of delinquency must be posted and published as well,
and must specify date of delinquency and the fact that
personal property may be distrained to effect payment.
 Interest for unpaid RPT is 2% per month, but the total shall
never exceed 36 months.
 Remedies for collection include administrative and judicial
actions, including:
o Local governments lien on the property subject to tax;
o Levy on the real property by means of a warrant and the
institution of a collection suit. Subsequent public sale of
the property should taxes remain unpaid within 2 weeks
after 30 days after service.
o Collection of RPT through judicial action via a civil action
for collection.
 RPT shall be collected within 5 years from the time they
become due, except when inability to pay is a result of fraud
or intent to evade payment of the tax – in which case action
may be instituted within 10 years from the discovery of fraud
or intent to evade.
 Suspension of period of prescription when:
o The local treasurer is legally prevented from collecting
the tax;
Bautista, Gastanes, Lopez, Sulit
o The owner of the property or the person having legal
interest therein requests for reinvestigation and executes
a waiver in writing before the expiration of the period
within which to collect; and
o The owner or person having legal interest therein is out
of the country or cannot be located.
G. DISPOSITION OF PROCEEDS (includes interest, proceeds from
use/saleredemption/etc.
 Provinces: 35% to province; 40% to municipality; 25% to
barangay
 Cities: 70% to city; 30% to component brgys [50% to brgy
where located, 50% equally to comp brgys]
 SEF: automatic release to the local school boards [if province,
divide equally bet. prov. and mun. boards]
 Idle lands: general fund of LGU where province/city is located
 Special levy: general fund of LGU which financed such
works/projects
H. SPECIAL PROVISIONS
 Sanggunian shall provide appropriations to defray expenses
to real property assessments.
 Sanggunian may pass ordinance (before Jan 1)
condoning/reducing RPT in case of general failure of crops or
substantial decrease in price of agricultural products, or
calamity in the LGU concerned.
 Philippine President may condone/reduce RPT when public
interest requires.
 Certificates/documents/papers covering the sale of
delinquent property are exempt from DST/reg fees.
 Assessment notices or tax declaration copies sent through
mails are exempt from postal fees.
 Tax delinquencies incurred before the LGC shall be governed
by laws in force then.
Secretary of Finance v. Hon. Ilarde
Facts: RD Cabaluna failed to pay land taxes on certain parcels of
land he owned. City Treasurer of Ilo-ilo charged him with penalties
amounting to more than 24% of the delinquency tax, in
contravention of Sec. 66 of the Real Property Tax Code, which
provided that in no case shall the penalty exceed 24% of the
delinquent tax. City Treasurer cited DOF Regulations which provide
that the penalty shall continue to be imposed until it is fully paid in
full.
Held: The Regulations are null and void for being repugnant to Sec.
66. The implementing rules cannot add to or detract from the
provisions of the law it is designed to implement. From 1 January
1992 onward, the proper basis for the computation of the real
property tax payable must be the LGC, which took effect on 1 January
1992, inasmuch as Section 534 thereof had expressly repealed the
Real Property Tax Code (1974).
BENGUET CORPORATION v. CBAA
Facts: Real property tax was assessed against Benguet Corporation
on its bunkhouses occupied for residential purposes by its rank and
file employees. Provincial Assessor says the tax exemption of
bunkhouses under Sec. 3(a) of PD 745 was withdrawn by PD 1955
(and EO 93).
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Held: Properties are taxable. While the realty tax exemption was
indeed withdrawn, Benguet Corp. should have applied for
restoration of the exemption with the FIRB. While LGUs are charged
with fixing the rate of real property taxes, it does not necessarily
follow from that authority the determination of whether or not to
impose the tax. Local governments have no alternative but to collect
taxes as mandated in the Real Property Tax Code. It is the national
government, expressing itself through the legislative branch, that
levies the real property tax. When local governments are required to
fix the rates, they are merely constituted as agents of the national
government in the enforcement of the Real Property Tax Code. The
delegation of taxing power is not involved here because the national
government has already imposed realty tax, leaving only the
enforcement to be done by local governments. The realty tax is
enforced throughout the Philippines, but the proceeds of the tax
accrue to the province, city, municipality and barrio where the realty
taxed is situated. In contrast, a local tax is imposed by the municipal
or city council by virtue of the Local Tax Code.
NDC v. CEBU
Facts: The President reserved a parcel of land in Cebu and put it
under the administration of NDC. A warehouse was constructed on
the land. The City of Cebu sought to tax these properties (land and
warehouse) stating that there is no law exempting NDC from real
estate taxes.
Held: NDC is liable to the City of Cebu for taxes on the warehouse.
The Government never parted with the ownership of the land thus,
it is still exempt from tax. However, this exemption does not extend
to the improvements (warehouse) on the land.
Province of Tarlac v ALCANTARA
Facts: Complaint by the Provincial Treasurer praying that TEI be
ordered to pay accrued real estate taxes. TEI refused to pay the same
for the reason that under Sec. 40, paragraph (g) of PD No. 464 in
relation to P.D. No. 551, as amended, it was exempt from paying said
tax. TEI contends that the "other laws" referred to in this Section is
PD 551 (Lowering the Cost to Consumers of Electricity by Reducing the
Franchise Tax Payable by Electric Franchise Holders and the Tariff on
Fuel Oils for the Generation of Electric Power by Public Utilities).
Held: The enumerated items upon which taxes shall not be imposed,
have no relation at all to, and are entirely different from, real
properties subject to tax. The provisions deal with franchise tax and
tariff on fuel oils and the "earnings, receipts, income and privilege of
generation, distribution and sale of electric current" are the items
exempted from taxation by the imposition of said tax or tariff duty.
On the other hand, the collection complaint filed by petitioner
specified only taxes due on real properties. It has always been the
rule that "exemptions from taxation are construed in strictissimi juris
against the taxpayer and liberally in favor of the taxing authority"
primarily because "taxes are the lifeblood of government and their
prompt and certain availability is an imperious need.” Thus, to be
exempted from payment of taxes, it is the taxpayer's duty to justify
the exemption "by words too plain to be mistaken and too
categorical to be misinterpreted.".
Bautista, Gastanes, Lopez, Sulit
MANILA INTL AIRPORT AUTHORITY v. CITY OF PASAY
Facts: Issue in this case is WoN the NAIA properties of MIAA are
exempt from the real property taxes.
Held: Airport properties are exempt. MIAA, not being a stock or non-
stock corporation, is not a GOCC but a government instrumentality.
Under Sec 133(o), LGUs have no power to tax instrumentalities of the
national government like MIAA. Hence, MIAA is not liable to pay real
property tax for the NAIA Pasay properties. Also, The airport lands
and buildings are properties of public dominion intended for public
use, and as such, are exempt from real property tax under Sec 234(a)
of the LGC. However, under the same provision, if MIAA leases its
real property to a taxable person, the specific property leased
becomes subject to real property tax. In this case, only those
portions of the NAIA Pasay properties which are leased to taxable
persons like private parties are subject to real property tax by the
City of Pasay.
3. SHARES OF LGUs IN THE PROCEEDS OF
NATIONAL TAXES
Art X. Sec. 6. supra
Art X. Sec. 7. supra
SUMMARY OF LGC PROVISIONS
A. ALLOTMENT OF INTERNAL REVENUE
 LGUs shall have a 40% share in the national internal
revenue taxes based on the collection of the 3rd fiscal year
(FY) preceding the current FY.
o However, if national government incurs an
unmanageable public sector deficit, the President is
authorized to make necessary adjustments in the IRAs
of LGUs which shall not be less than 30%.
 Only upon recommendation of DOF/DILG/DBM
and subject to consultation of Congress and Ligas
 LGU shares in the IRAs: Provinces 23%, Cities 23%,
Municipalities 34%, Barangays 20%
o Sharing of each province/city/municipality:
population 50%, land area 25%, equal sharing 25%
o For barangays with at least 100 inhabitants, their
share shall not be less than P80K per annum,
chargeable against the 20% share of the barangay
from the IRA. The balance shall be allocated on a 60-
40 basis for population and equal sharing.
 Sec 286: (a) The share of each LGU shall be released,
without need of any further action, directly to the provincial,
city, municipal or barangay treasurer, as the case may be,
on a quarterly basis within five (5) days after the end of each
quarter, and which shall not be subject to any lien or
holdback that may be imposed by the national government
for whatever purpose.
 LGU’s must appropriate at least 20% of their annual IRA for
development projects
B. SHARE OF LGUS IN THE NATIONAL WEALTH
 LGUs shall have equitable share n the proceeds derived
from the utilization and development of the national wealth
within their respective areas.
 In addition to the 40% IRA, LGUS shall also have a 40%
share of the gross collection derived by the national
government from mining taxes, royalties, forestry and
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fishery charges, and such other taxes, fees, or charges,
including related surcharges, interests, or fines, and from
its share in any co-production, joint venture or production
sharing agreement in the utilization and development of
the national wealth within their territorial jurisdiction.
 LGUs shall have a share in he proceeds derived by any
government agency or GOCC engaged in the utilization and
development of the national wealth in the following
manner:
o Natural resources in the province: Province 20%,
Component city/municipality 45%, barangay 35%
o Natural resources in highly urbanized or independent
component cities: City 65%, barangay 35%
 If resources located in 2 or more LGU’s, their
above share will be computed based on
population 70% and land area 50%
 At least 80% of the proceeds derived from taxing sources of
energy shall be applied solely to lower the cost of electricity
in the LGU where such source of energy is located.
PIMENTEL v. AGUIRRE (supra)
Facts: President issued AO 372, Sec 4 of which provided for
withholding of IRAs of LGUs.
Held: Section 4 is invalid. A basic feature of local fiscal autonomy is
the automatic release (5 days every after quarter of the year) of the
shares of LGUs in the national internal revenue and is mandated by
no less than the Constitution (Art X Sec 6). The withholding, even if
temporary, clearly contravenes the Constitution and the law. Any
form of retention of the IRA is prohibited.
SAMPIANO v. INDAR
Facts: Ogka filed a court action to temporarily suspend the release
by the PNB-Marawi of the October 2004 IRA of the Municipality of
Balabagan, while the results of the mayoralty elections were under
contest. The Judge ruled in Ogka’s favor. Sampiano filed an
administrative complaint against Indar due to the latter’s order (and
failure to observe procedure in the issuance of the Order).
Held: Indar is administratively liable for causing the suspension of
the release of the IRA’s without proper hearing. The automatic
release of the IRA under Section 286 is a mandate to the national
government through the DBM to effect automatic release of the said
funds from the treasury directly to the LGU, free from any holdbacks
or liens imposed by the national government. However, this
automatic release of the IRA from the national treasury does not
prevent the proper court from deferring or suspending the release
thereof to particular local officials when there is a legal question
presented in the court pertaining to the rights of the parties to
receive the IRA or to the propriety of the issuance of a TRO or a
preliminary injunction while such rights are still being determined.
PROVINCE OF BATANGAS v. ROMULO
Facts: Pres. Estrada issued EO No. 48 establishing the “Program for
Devolution Adjustment and Equalization” to enhance the capabilities
of LGUs in the discharge of the functions devolved to them. The
Oversight Committee passed 3 Resolutions, with guidelines
requiring LGUs to identify projects eligible for funding under the
portion of LGSEF and submit project proposals and other
Bautista, Gastanes, Lopez, Sulit
requirements to the DILG for appraisal before the Committee serves
notice to the DBM for release of the corresponding funds. Gov.
Mandanas of Batangas petitioned to declare the resolutions and
certain provisos in the General Appropriations Acts (GAAs) of 1999,
2000, and 2001 as unconstitutional for uniformly earmarking for
each corresponding year P5 billion for the IRA for the LGSEF and
imposing conditions for the funds’ release.
Held: The resolutions and the GAA provisos are unconstitutional.
They are, in effect, a “withholding” of a portion of the IRA. The
LGSEF is part of the IRA or “just share” of the LGUs in the national
taxes, which shall be automatically released to LGUs. LGUs are not
supposed to be required to perform any act to receive the “just
share;” it shall be released “without need of further action“. The only
exception to the mandatory automatic release of the LGUs IRA is if
the national internal revenue collections for the current fiscal year is
less than 40% of the collections of the 3rd preceding fiscal year. The
exception does not apply here.
ACCORD v. ZAMORA
Facts: Pres Erap signed into law the GAA of 2000. There is a
provision in this law that withholds P10B of the IRA (named as
“unprogrammed funds”), which will only be released upon
assessment of committee enumerated in the law. Different groups
questioned the constitutionality of the said law
Held: Those provisions are unconstitutional. They contravene the
constitutional mandate to automatically release funds to the LGUs.
The only exception to the automatic release is found in LGC 284 (see
last 2 sentences of Province of Batangas summary)
4. CREDIT FINANCING, LOANS, CREDITS AND
OTHER FORMS OF INDEBTEDNESS OF LGUS
 Any LGU may create indebtedness, and avail of credit
facilities to finance local infrastructure and other socio-
economic development projects in accordance with the
approved local development plan and public investment
program. An LGU may avail of credit lines from government
or private banks and lending institutions for the purpose of
stabilizing local finances.
 The LGC enumerates certain conditions and procedures for
each type of indebtedness/transaction.
 LGUs shall appropriate in their respective annual budgets
such amounts as are sufficient to pay the loans and other
indebtedness incurred or redeem or retire bonds,
debentures, securities, notes and other obligations issued
under this Title.
o Failure to provide the appropriations herein required
shall render their annual budgets inoperative.
5. LOCAL FISCAL ADMINSTRATION
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VIII. Local Government Units

LGU: Barangay Municipality City Province

Role Sec 384 Sec 440 (M); Sec 448 (C) Sec 459
Primary planning and Coordination and delivery of basic, regular and direct Dynamic mechanism for
implementing unit of services and effective governance of the inhabitants within developmental processes
government policies, plans, its territorial jurisdiction. and effective governance
programs, projects, and activities of local government units
in the community, and as a within its territorial
forum, and where disputes may jurisdiction.
be amicably settled.
Manner of Sec. 385 Sec 441 (M); Sec 449 (C); Sec 460 (P)
creation By law or by ordinance Only by an Act of Congress and subject to the approval by a majority of the votes cast in a
plebiscite
Requisites for Sec. 386 Sec. 442 Sec. 450 Sec. 461
Creation Population: at least 2,000 Average annual income: Average annual income: at Average annual income:
inhabitants At least P2,500,000.00 for least P20,000,000.00 for not less than
EXCEPT: Cities and the last two consecutive the last two consecutive P20,000,000.00 and
municipalities within Metro years; years; and either of the either of the following
Manila and other metropolitan Population: at least 25,000 following requisites: requisites:
political subdivisions or in highly inhabitants; (i) Contiguous territory: at (i) Contiguous territory: at
urbanized cities where such Contiguous territory: at least least 100 sq km; or least 2,000 sq km; or
territory shall have a certified 50 sq km (ii) Population: not less than (ii) Population: not less
population of at least 5,000 150,000 inhabitants than 250,000 inhabitants
inhabitants *Municipalities existing as of
the date of the effectivity of
Provided, That the creation this Code shall continue to
thereof shall not reduce the exist and operate as such.
population of the original The territorial jurisdiction of a newly-created unit shall be
barangay or barangays to less properly identified by metes and bounds. The requirement
than the minimum requirement on land area shall not apply where the unit proposed to be
prescribed herein created is composed of one (1) or more islands. The territory
need not be contiguous if it comprises two (2) or more
islands.

The average annual income shall include the income accruing to the general fund of the
unit concerned, exclusive of special funds, transfers and non-recurring income.

Provided, That, the creation 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.

Chief Officials Sec 387 Sec 443 Sec 454 Sec 463
a) Punong Barangay a) Sangguniang Bayan a) Sangguniang a) Governor
b) 7 Sangguniang Barangay members Panlungsod members b) Vice-governor
members, c) members of the
c) Sangguniang Kabataan Sangguniang
chairman, Panlalawigan
d) Barangay Secretary,
e) Barangay treasurer Administrator; Legal officer; Veterinarian
f) Lupong Tagapamayapa Social welfare and development officer; General services
officer

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Mayor; Vice-mayor; Secretary; Treasurer
Assessor; Accountant; Budget officer
Planning and development coordinator; Engineer/building official
Health officer; Civil registrar.

Chief Punong Barangay Municipal Mayor City Mayor Provincial Governor

Executive Sec 389 Sec 444 Sec 455 Sec 465
Powers, (a) Enforce all laws and a) Exercise general supervision and control over all a) Exercise general
Duties, and ordinances programs, projects, services, and activities supervision and control
Functions (b) Negotiate, enter into, and sign b) Enforce all laws and ordinances and the exercise of its over all programs,
contracts for and in behalf of the corporate powers projects, services, and
Barangay c) Initiate and maximize the generation of resources and activities of the provincial
(c) Maintain public order and revenues, and apply the same to the implementation of government
assist the city or municipal mayor development plans, program objectives and priorities b) Enforce all laws and
and sanggunian members in the d) Ensure the delivery of basic services and the provision of ordinances relative to the
performance of their duties adequate facilities governance of the
(d) Call and preside over the e) Exercise such other powers and perform such other duties province and the exercise
sessions of the Sangguniang and functions as may be prescribed by law or ordinance. of the appropriate
Barangay and the Barangay corporate powers
assembly, and vote to break a tie; c) Initiate and maximize
(e) Appoint or replace the the generation of
appointive Barangay officials; resources and revenues,
(f) Organize and lead an and apply the same to the
emergency group whenever implementation of
necessary development plans,
(g) Prepare the annual executive program objectives and
and supplemental budgets priorities
(h) Approve vouchers for d) Ensure the delivery of
disbursement of funds; basic services and the
(i) Enforce laws relating to provision of adequate
pollution control and protection facilities
of environment; e) Exercise such other
(j) Administer the operation of the powers and perform such
Katarungang Pambarangay other duties
(k) Exercise general supervision and functions as may be
over the activities of SK; prescribed by law or
(l) Ensure the delivery of basic ordinance.
services;
(m) Conduct an annual palarong
Barangay;
(n) Promote the general welfare
(o) Exercise such other powers
and perform such other duties
and functions as may be
prescribed by law or ordinance
Sec 389

*see above for Legislative Bodies and their Powers, Duties, and
Functions

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C2017 / LAW 154 / Local Government Law / Midterm Reviewer
A. The Barangay
SUMMARY OF LGC PROVISIONS
Chapter I – Role and Creation of the Barangay – 384 – 386
 384: Role of the Barangay
o Basic political unit
o Primary planning and implementing unit of government
policies, plans, etc.
o Forum where people’s views may be expressed
o Where disputes may be settled
 385: Manner of Creation
o Created, divided, merged, abolished, or its borders
substantially altered
 By law
 By ordinance of an Sangguniang Panlalawigan or
Panlungsod
 Subject to plebiscite
 If by S-Panlalawigan, recommendation of S-Bayan
necessary
 386: Requisites for Creation
o Population: 2000
 EXC: In cities and municipalities of MM: 5000
 Certified by NSO
 Shall not reduce the population of the original barangay
to less than the minimum
o Territorial jurisdiction properly identified by metes and
bounds or by more or less permanent natural boundaries
 EXC: If made of two or more islands, territory need not be
contiguous
o Governor or City mayor may prepare a consolidation plan
within its territorial jurisdiction
 To be submitted to the S-Panlalawigan or S-Panlungsod
for appropriate action
 For municipalities within MM and other metropolitan
political subdivisions, the plan shall be prepared and
approved by the S-Bayan
Chapter II – Barangay Officials and Offices – 387 – 388
 387: Chief Officials and Offices
o 7 Sangguniang barangay members
o SK Chairman
o Barangay Secretary
o Barangay Treasurer
o Lupong Tagapamayapa
o S-Barangay may form community brigades and create such
other positions or offices as may be deemed necessary
 In accordance with the needs of public service
 Subject to budget limitations
 388: Persons in Authority
o For RPC purpose: Punong Barangay, Sangguniang barangay
members, and members of the lupong tagapamayapa are
deemed persons in authority in their jurisdictions
o Others officials and members designated by law or ordinance
and charged with
 The maintenance of public order
 Protection and security of ife and property
 Maintenance of desirable and balanced environment
Bautista, Gastanes, Lopez, Sulit
 Any member who comes to the aid of persons in authority
 All are persons in authority
Chapter III – The Punong Barangay – 389
 389: Chief Executive: Powers, Duties, and Functions
o Punong Barangay is the chief executive of the barangay
o Exercises such powers and perform such duties and functions
as provided by the LGC and other laws
o Provision lists 15 powers granted to the Punong Barangay
pursuant to the general welfare clause (LGC 16)
o Entitled to possess and carry a necessary firearm
 Within his territorial jurisdiction
 In the performance of his peace and order functions
 Subject to appropriate rules and regulations
Chapter IV – The Sangguniang Barangay – 390 – 393
 390: Composition
o S-Barangay is the legislative body of the barangay
o Composed of:
o Punong Barangay, as presiding officer
o 7 S-Barangay members
 Elected at large
o SK chairman
 391: Powers, Duties, and Functions
o Provisions lists 24 itmes
 392: Other Duties of Sangguniang Barangay Members
o Assist the punong barangay
o Act as peace officers
o Perform duties and function as the punong barangay may
delegate
 393: Benefits of Barangay Officials
o Honoraria, allowances, and such other emoluments as may
be authorized by law or ordinance
 Max P1000/month for Punong Barangay
 Max P600/month for Members, Treasurer, and Secretary
 Subject to budget limitations
o Christmas bonus: P1000
o Insurance coverage
o Free medical care
 In any government hospital or institution
 EXC: In cases of extreme urgency, may go to private and
expenses shall be charged against the barangay funds
(max of P5000)
o Exempted from tuition and matriculation fees for legitimate
dependent children attending state colleges or universities
o Entitled to appropriate civil service eligibility
o (Elective Barangay Officials) Preference in appointments to
any gov’t position or in any GOCC after their tenure in office
o (Barangay tanod brigades [Max 20]) entitled to insurance
Chapter V – Appointive Barangay Officials – 394 – 396
 394: Barangay Secretary: Appointment, Qualifications, Powers
and Duties
o Appointed by the Punong Barangay
 With the concurrence of the majority of all the S-Barangay
members
 NOT subject to attestation by the Civil Service Commission
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o Qualifications
 Legal age
 Qualified voter
 Actual resident of barangay
 CANNOT be
 S-Barangay member
 Government employee
 Relative of the punong barangay to the 4th civil degree
o Provision lists 8 Powers and Duties under (d)
 395: Barangay Treasurer: Appointment, Qualifications, Powers
and Duties
o Appointment and Qualifications same as Barangay Secretary
o Treasurer shall be bonded in accordance with existing laws in
an amount to be determined by the sangguniang barangay
(Max P10,000)
 Premiums to be paid by the barangay
o Provision lists 8 Powers and Duties under (e)
 396: Other Appointive Officials
o Qualifications, powers, and duties governed by LGC or other
laws or by barangay ordinances
Chapter VI – Barangay Assembly – 397 – 398
 397: Composition; Meetings
o Composition
 All persons who are actual residents of the barangay
 At least 15 years, 6 months of age
 Citizen of the Philippines
 Duly registered in the list of barangay assembly
members
o Meetings
 At least twice a year
 To hear and discuss the semestral report of the S-
Barangay
 Held upon call of:
 The punong barangay or
 at least four members of the S-Barangay or
 Upon written petition of at least 5% of the assembly
members
 No meeting shall take place unless a written notice is given
1 week prior to meeting
 EXC: matters involving public safety or security
 Presiding Officer (in order of hierarchy)
 Punong Barangay
 The S-Barangay member acting as punong barangay
 Any assembly member selected during the meeting
 If Barangay secretary absent, presiding officer may
designated any member to act as secretary
 398: Powers of the Barangay Assembly
o Initiate legislative processes
o Decide on the adoption of initiative
o Hear and pass upon the semestral report of the S-Barangay
Bautista, Gastanes, Lopez, Sulit
1. Katarungang Pambarangay
Chapter VII – Katarungang Pambarangay – 399 – 422
 399: Lupong Tagapamayapa
o Composition
 Punong barangay (chairman)
 10 to 20 members
o Constituted every 3 years
o Qualifications to be member
 Any person actually residing or working in the barangay
 Not otherwise disqualified by law
 Possessing integrity, impartiality, independence of mine,
sense of fairness, and reputation for probity
o A notice to constitute the lupon shall be prepared by the
punong barangay within 15 days from the start of the term of
his office
 Posted in 3 conspicuous places for a period of not less than
3 weeks
o The punong barangay shall, within 10 days, appoint as
members those whom he determines to be suitable therefor.
 Made in writing, signed by the punong barangay, and
attested to by the barangay secretary
o List of appointed members shall be posted in 3 conspicuous
places for the entire duration of their term in office
o For barangays where the majority of the inhabitants are
members of indigenous cultural communities
 Local systems of settling disputes shall be recognized
 Without prejudice to the provisions of the LGC
 400: Oath and Term of Office
o Upon appointment, each lupon member shall take an oath of
office before the punong barangay
o Shall hold office until a new lupon is constituted
 Unless sooner terminated by
 resignation,
 transfer of residence or place of work, or
 withdrawal of appointment by the punong barangay
with the concurrence of the majority of all the members
of the lupon
 401: Vacancies
o If there are any vacancies for any cause, the punong barangay
shall immediately appoint a qualified person
 Holds office for the unexpired term
 402: Functions of the Lupon
o Exercise administration supervision over the conciliation
panels
o Meet regularly once a month to provide a forum for exchange
of ideas on matters relevant to the amicable settlement of
disputes; also sharing observations and experiences between
members
o Exercise such other powers and perform such other duties
and functions as may be prescribed by law or ordinance
 403: Secretary of the Lupon
o Barangay secretary concurrently serves as the secretary of the
lupon
o Records the results of mediation proceedings; submits a
report thereon to the city or municipal court
 404: Pangkat ng Tagapagkasundo
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o For each dispute, there shall be a pangkat ng
tagapagkasundo
o Composition: 3 members, chosen by the parties to the dispute
 If the parties fail to agree, then by lots drawn by the lupon
chairman
 405: Vacancies in the Pangkat
o Any vacancy shall be chosen by the parties to the dispute
 Failure to agree = draw lots by chairman
 406: Character of Office and Service of Lupon Members
o Lupon members, while in the performance of their official
duties, are deemed persons in authority (for RPC)
o Lupon or pangkat members shall serve without
compensation EXCEPT as provided in Sec. 393 (Benefits of
Barangay Officials)
 And without prejudice to incentives as provided for in this
section and in Book IV, LGC
 DILG shall provide for a system of granting economic or
other incentives
 407: Legal Advice on Matters Involving Questions of Law
o The provincial, city legal officer or prosecutor or the municipal
legal officer shall render legal advice on matters involving
questions of law
 408: Subject Matter for Amicable Settlement; Exception Thereto
o The lupon shall have the authority to bring together the
parties actually residing in the same city or municipality for
amicable settlement of all disputes EXCEPT
(a) Where one party is the government or any subdivision or
instrumentality thereof
(b) Where one party is a public officer or employee; dispute
relates to the performance of his official functions
(c) Offenses punishable by imprisonment exceeding one year
or a fine exceeding P5,000
(d) Offenses where there is no private offended party
(e) Where the dispute involves real properties located in
different cities or municipalities; unless the parties agree
(f) Disputes involving parties who actually reside in barangays
of different cities or municipalities; except where such
barangays adjoin each other and the parties agree
(g) Such other class of disputes which the President may
determine in the interest of justice or upon
recommendation of the Secretary of Justice
o The court in which non-criminal cases not filling within the
authority of the lupon under this code are filed may, at any
time before trial, muto proprio refer the case to the lupon for
amicable settlement
 409: Venue
o If persons in dispute are...disputes shall be brought before…
 Residing in the same barangay; lupon of said barangay
 Residing in different barangays; barangay where
respondent/any of the respondents reside/s, at the
election of the complainant
o If dispute involves real property or any interest therein;
barangay where the real property or a larger portion thereof
is situated
o If dispute arose at the workplace where the contending
parties are employed (or institution where parties are
studying); barangay where such workplace or institution is
located
Bautista, Gastanes, Lopez, Sulit
o Objections to venue should be raised in the mediation
proceedings; otherwise they are waived
o Any legal question which may confront the punong barangay
in resolving objections to venue may be submitted to the
Secretary of Justice
 410: Procedure for Amicable Settlement
o Who may initiate proceeding
 Upon payment of filing fee…
 Any individual who has a cause of action against another
individual
 Involving any matter within the authority of the lupon
 Complaint may be oral or in writing
 To the lupon chairman
o Mediation by lupon chairman
 Upon receipt of complaint, chairman shall within the next
working day
 Summon the respondents
 With notice to the complainants and their witnesses
 For mediation
 Failure to mediate in 15 days from first meeting: chairman
shall set a date for the constitution of the pangkat
o Suspension of prescriptive period of offenses
 While the dispute Is under mediation, conciliation, or
arbitration, the prescriptive periods for offenses and cause
of action shall be interrupted upon filing the complaint
with the punong barangay
 Period resumed upon receipt by the complainant of the
complaint or the certificate of repudiation or of the
certification to file action (issued by the lupon or pangkat
secretary)
 Such interruption shall not exceed 60 days from the
filing of the complaint
o Issuance of summons; hearing; grounds for disqualification
 The pangkat shall convene not later than 3 days from its
constitution (for the hearing)
 On the day and hour set by the chairman
 The pangkat may issue summons for the personal
appearance of the parties and witnesses before it.
 Matters of disqualification of the pangkat shall be resolved
by the affirmative vote of the majority of the pangkat
o Period to arrive at a settlement
 Within 15 days from the day the pangkat convenes;
extendible for another period not exceeding 15 days,
except in clearly meritorious cases
 411: Form of Settlement
o All amicable settlements shall be in writing
o In a language or dialect known to the parties; signed by them
o Attested by the lupon or pangkat chairman
 412: Conciliation
o Precondition to filing of complaint in court
 No complaint, petition, or proceeding involving any matter
within the authority of the lupon shall be filed or instituted
directly in court or any other government office for
adjudication
 UNLESS there has been a confrontation between the
parties before the lupon chairman or the pangkat
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 AND that no conciliation or settlement has been
reached as certified by the lupon secretary or pangkat
secretary as attested to by the lupon or pangkat
chairman or unless the settlement has been repudiated
by the parties thereto
o Where parties may go directly to court
(1) Where the accused is under detention
(2) Where a person has otherwise been deprived of
personal liberty calling for habeas corpus proceedings
(3) Where actions are coupled with provisional remedies
(such as preliminary injunction, attachment, delivery of
personal property, and support pendente lite)
(4) Where the action may otherwise be barred by the
statute of limitations
o Conciliation among members of indigenous cultural
communities
 The customs and traditions of such communities shall be
applied in settling disputes
 413: Arbitration
o The parties may agree that they shall abide by the arbitration
award of the lupon chairman or the pangkat
 At any stage
 Must be in writing
o May be repudiated within 5 days from the date thereof
o The arbitration award shall be made after the lapse of the
period of repudiation and within 10 days thereof
 The award shall be in writing in a language or dialect
known to the parties
 414: Proceedings Open to the Public; Exception
o All proceedings for settlement shall be public and informal
 Provided, that the lupon or pangkat chairman may motu
proprio or upon the request of a party, exclude the public
from the proceedings in the interest of privacy, decency, or
public morals
 415: Appearance of Parties in Person
o In all katarungang pambarangay proceedings, the part must
appear in person without the assistance of counsel or
representative
 EXC: minors and incompetents; may be assisted by their
next of kin who are not lawyers
 416: Effect of Amicable Settlement and Arbitration Award
o The amicable settlement and the arbitration award shall
have the force and effect of a final judgement of a court
 Upon the expiration of 10 days from the date thereof
 UNLESS repudiated or a petition to nullify the award has
been filed
o However, this provision shall not apply to court cases settled
by the lupon under the last paragraph of Sec. 408 (Court
referred to lupon)
 In which case the compromise settlement agreed upon by
the parties shall be submitted to the court and, upon
approval, shall have the force and effect of a judgment of
said court
 417: Execution
o The amicable settlement or arbitration award may be
enforced by execution by the lupon within 6 months from the
date of the settlement.
Bautista, Gastanes, Lopez, Sulit
 After the lapse of the period, the settlement may be
enforced by action in the appropriate city or municipal
court
 418: Repudiation
o Any party to the dispute may, within 10 days from the date of
the settlement, repudiate the same
o By filing with the lupon chairman a statement to that effect
 Sworn to before him
o Where the consent is vitiated by fraud, violence, or
intimidation
o Such repudiation shall be sufficient basis for the issuance of
the certification for filing of a complaint
 419: Transmittal of Settlement and Arbitration Award to the Court
o The secretary of the lupon shall transmit the settlement or
the arbitration award to the appropriate city or municipal
court within 5 days from the date of the award OR form the
lapse of the 10 day period repudiating the settlement
o Shall furnish copies thereof to each of the parties and to the
lupon chairman
 420: Power to Administer Oaths
o The punong bayan, as chairman of the lupong
tagapamayapa, and the members of the pangkat are hereby
authorized to administer oaths in connection with any matter
relating to all proceedings in the implementation of the
katarungang pambarangay
 421: Administration; Rules and Regulations
o The city or municipal mayor shall see to the efficient and
effective implementation and administration of the
katarungang pambarangay
o The Secretary of Justice shall promulgate the rules and
regulations necessary to implement this chapter
 422: Appropriations
o Such amount as may be necessary for the effective
implementation of the katarungang pambarangay shall be
provided for in the annual budget of the city or municipality
concerned
Morata v. Go (1983)
Summary: Stemming from a recovery of sum of money plus
damages the Sps Morata filed an MTD in the CFI on the basis of
failure to allege prior availment of the brgy, conciliation and absence
of certification of the lupon secretary as required by PD 1508 or the
Katarungang Pambarangay Act. This MTD was denied by the CFI
Judge Tomol saying that this requirement only applies to cases
cognizable by the inferior courts as per sec. 11,12,and 14 of the PD.
SC dismissed the case for recovery of damages.
Doctrine: Requirement applies to actions covered by the CFI as well
as the inferior courts. The law, as written, makes no distinction
whatsoever with respect to the classes of civil disputes that should
be compromised at the barangay level.
Uy v. Contreras (1994)
Summary: An argument degenerated into a scuffle between Uy
(sub-lessee) and Atayde (sub-lessor). As a result, the Office of the
Provincial Prosecutor of Rizal filed two informations for slight
physical injuries against Uy. The latter filed a motion to dismiss the
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criminal cases for noncompliance with the requirement of P.D. No.
1508 on prior referral to the Lupong Tagapamayapa. Public
respondent Judge Contreras denied the MTD. Hence, this petition by
Uy, the defendant. SC granted petition and held that the criminal
cases should be dismissed for noncompliance with Sections 408,
409, 410, and 412 of the Local Government Code of 1991 in relation
to Sec 7, Rule VI of the Rules Implementing P.D. No. 1508.
Doctrine: To emphasize the vital role which the revised katarungang
pambarangay law plays in the delivery of justice at the barangay
level, in promoting peace, stability, and progress therein, and in
effectively preventing or reducing expensive and wearisome
litigation, parties to disputes cognizable by the lupon should
exhaust the remedies provided by that law. Government prosecutors
should exercise due diligence in ascertaining compliance with it, and
trial courts should not hesitate to impose the appropriate sanctions
for noncompliance thereof.
Wingards v. Mejia (1995)
Summary: Administrative complaints were filed against MTC Judge
Mejia because, among others, he took cognizance of a criminal case
for grave threats allegedly despite the lack of prior barangay
conciliation. He was held administratively liable.
Doctrine: Judges are directed to desist from improvidently receiving
and desultorily acting on complaints, petitions, actions or
proceedings in cases falling within the authority of the Lupon
Tagapamayapa. The proceedings before the lupon are a
precondition to the filing of any action or proceeding in court or other
government office. Such an initiatory pleading, if filed without
compliance with the precondition, may be dismissed on motion of
any interested party on the ground that it fails to state a cause of
action.
Corpuz v. CA (1997)
Summary: Corpuz and Alvarado were tenants in Barredo property.
Barredo wanted to sell to tenants but tenants had no money so
Barredo sold to Corpuz. Alvarado became Corpuz tenant. Corpuz
wanted Alvarado out because Corpuz’ children needed the room.
Corpuz files UD. MeTC grants. RTC reverse because issue of
ownership being resolved in NHA and CA affirm RTC. SC held that
issue of ownership does not abate ejectment suit.
Doctrine: Referral to Lupong Tagapayapa not a jurisdictional
requirement and it cannot affect jurisdiction already acquired over
the subject matter and parties
Bonifacio Law Office v. Judge Bellosillo (2002)
Summary: MTC QC Judge Bellosillo was administratively charged for
ordering the referral of an ejectment case back to the barangay for
conciliation proceedings despite the complaint allegedly being
attached with a Certification to File Motion. SC said that Judge
should not be sanctioned based on such ground because he was
merely seeking to promote the objectives of barangay conciliation.
Doctrine: All complaints and/or informations before the RTC/MTC
shall be carefully scrutinized to determine if there has been
Bautista, Gastanes, Lopez, Sulit
compliance with prior barangay conciliation procedure under the
Revised Katarungang Pambarangay Law and its IRR, as a pre-
condition to judicial action, particularly whether the certification to
file action attached to the case records comply with the
requirements.
Mendova v. Judge Afable (2002)
Summary: On Feb. 18, 1998, Mendova filed with the Office of the
Barangay Chairman of Poblacion, San Julian, Eastern Samar, a
complaint for Slight Physical Injuries. Because of failure to reach an
amicable settlement, he filed with the MCTC a complain for Slight
Physical Injuries on May 4, 1998. Judge Afable dismissed the
complaint on the ground of prescription (beyond 2 month period).
The SC held that since Mendova did not avail other remedies such
as a MR, this administrative complaint is premature. Moreover,
complainant failed to present proof of his receipt of the Barangay
Certification and so clearly, he cannot now fault respondent judge
for dismissing the case on the ground of prescription.
Doctrine: Pursuant to Section 410(c) of the Local Government Code,
the prescriptive period is interrupted upon filing of the complaint
with the barangay, and resumes upon receipt by the complainant of
the Certification to File Action issued by the Pangkat Secretary of the
barangay.
2. Sangguniang Kabataan
Chapter VIII – Sangguniang Kabataan – 423 – 435
 423: Creation and Election
 424: Katipunan ng Kabataan
 425: Meetings of the Katipunan ng Kabataan
 426: Powers and Functions of the Sangguniang Kabataan
 427: Meetings of the Sangguniang Kabataan
 428: Qualifications
 429: Term of Office
 430: Sangguniang Kabataan Chairman
 431: Powers and Duties of the Sangguniang Kabataan Chairman
 432: Sangguniang Kabataan Secretary
 433: Sangguniang Kabataan Treasurer
 434: Privileges of Sangguniang Kabataan Officials
 435: Succession and Filing of Vacancies
Chapter IX – Pederasyon ng mga Sangguniang Kabataan – 436 – 438
 436: Pederasyon ng mga Sangguniang Kabataan
 437: Constitution and By-Laws
 438: Membership in the Sanggunian
Chapter X – Linggo ng Kabataan – 439
 439: Observance of Linggo ng Kabataan
Sec. 423. Creation and Election. –
(a) There shall be in every barangay a sangguniang kabataan to be
composed of a chairman, seven (7) members, a secretary, and
a treasurer.
(b) A sangguniang kabataan official who, during his term of office,
shall have passed the age of twenty-one (21) years shall be
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allowed to serve the remaining portion of the term for which he
was elected.
Sec. 424. Katipunan ng Kabataan. - The katipunan ng kabataan
shall be composed of Filipino citizens actually residing in the
barangay for at least six (6) months, who are fifteen (15) but less than
eighteen (18) years of age on the day of the election, and who are
duly registered in the list of the sangguniang kabataan or in the
official barangay list in the custody of the barangay secretary.
Sec. 425. Meetings of the Katipunan ng Kabataan. - The katipunan
ng kabataan shall meet at least once every three (3) months, or at
the call of the chairman of the sangguniang kabataan or upon
written petition of at least one-twentieth (1/20) of its members, to
decide on important issues affecting the youth of the barangay.
Sec. 426. Powers and Functions of the Sangguniang Kabataan. - The
sangguniang kabataan shall:
(a) Promulgate resolutions necessary to carry out the objectives of
the youth in the barangay in accordance with the applicable
provisions of this Code;
(b) Initiate programs designed to enhance the social, political,
economic, cultural, intellectual, moral, spiritual, and physical
development of the members;
(c) Hold fund-raising activities, the proceeds of which shall be tax-
exempt and shall accrue to the general fund of the
sangguniang kabataan: Provided, however, That in the
appropriation thereof, the specific purpose for which such
activity has been held shall be first satisfied;
(d) Create such bodies or committees as it may deem necessary to
effectively carry out its programs and activities;
(e) Submit annual and end-of-term reports to the sangguniang
barangay on their projects and activities for the survival and
development of the youth in the barangay;
(f) Consult and coordinate with all youth organizations in the
barangay for policy formulation and program implementation;
(g) Coordinate with the appropriate national agency for the
implementation of youth development projects and programs
at the national level;
(h) Exercise such other powers and perform such other duties and
functions as the sangguniang barangay may determine or
delegate or as may be prescribed by law or ordinance.
Sec. 427. Meetings of the Sangguniang Kabataan. - The sangguniang
kabataan shall meet regularly once a month on the date, time, and
place to be fixed by the said sanggunian. Special meetings may be
called by the sangguniang kabataan chairman or any three (3) of its
members by giving written notice to all members of the date, time,
place and agenda of the meeting at least one (1) day in advance.
Notices of regular or special meetings shall be furnished the punong
barangay and the sangguniang barangay.
A majority of the members of the sangguniang kabataan shall
constitute a quorum.
Sec. 428. Qualifications. - An elective official of the sangguniang
kabataan must be a Filipino citizen, a qualified voter of the
katipunan ng kabataan, a resident of the barangay for at least one
(1) year immediately prior to election, at least fifteen (15) years but
Bautista, Gastanes, Lopez, Sulit
less than eighteen (18) years of age on the day of the election, able
to read and write Filipino, English, or the local dialect, and must not
have been convicted of any crime involving moral turpitude.
Sec. 429. Term of Office. - The sangguniang kabataan chairman and
members shall hold office for a period of three (3) years, unless
sooner removed for cause as provided by law, permanently
incapacitated, die or resign from office.
Sec. 430. Sangguniang Kabataan Chairman. - The registered voters
of the katipunan ng kabataan shall elect the chairman of the
sangguniang kabataan who shall automatically serve as an ex
officio member of the sangguniang barangay upon his assumption
to office. As such, he shall exercise the same powers, discharge the
same duties and functions, and enjoy the same privileges as the
regular sangguniang barangay members, and shall be the chairman
of the committee on youth and sports development in the said
sanggunian.
Sec. 431. Powers and Duties of the Sangguniang Kabataan
Chairman. - In addition to the duties which may be assigned to him
by the sangguniang barangay, the sangguniang kabataan chairman
shall:
(a) Call and preside over all meetings of the katipunan ng
kabataan and the sangguniang kabataan;
(b) Implement policies, programs, and projects within his
jurisdiction in coordination with the sangguniang barangay;
(c) Exercise general supervision over the affairs and activities of the
sangguniang kabataan and the official conduct of its members,
and such other officers of the sangguniang kabataan within his
jurisdiction;
(d) With the concurrence of the sangguniang kabataan, appoint
from among the members of the sangguniang kabataan, the
secretary and treasurer and such other officers as may be
deemed necessary; and
(e) Exercise such other powers and perform such other duties and
functions as may be prescribed by law or ordinance.
Sec. 432. Sangguniang Kabataan Secretary. - The sangguniang
kabataan secretary shall:
(a) Keep all records of the katipunan ng kabataan and
sangguniang kabataan;
(b) Prepare and keep the minutes of all meetings of the katipunan
ng kabataan and sangguniang kabataan;
(c) Prepare all forms necessary for the conduct of registrations,
elections, initiatives, referenda, or plebiscites, in coordination
with the barangay secretary and the COMELEC; and
(d) Perform such other duties and discharge such other functions
as the chairman of the sangguniang kabataan may prescribe or
direct.
Sec. 433. Sangguniang Kabataan Treasurer. - The sangguniang
kabataan treasurer shall:
(a) Take custody of all sangguniang kabataan property and funds
not otherwise deposited with the city or municipal treasurer;
(b) Collect and receive contributions, monies, materials, and all
other resources intended for the sangguniang kabataan and
the katipunan ng kabataan;
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(c) Disburse funds in accordance with an approved budget of the
sangguniang kabataan;
(d) Certify to the availability of funds whenever necessary;
(e) Submit to the sangguniang kabataan and to the sangguniang
barangay certified and detailed statements of actual income
and expenditures at the end of every month; and
(f) Perform such other duties and discharge such other functions
as the chairman of the sangguniang kabataan may direct.
Sec. 434. Privileges of Sangguniang Kabataan Officials. - The
sangguniang kabataan chairman shall have the same privileges
enjoyed by other sangguniang barangay officials under this Code
subject to such requirements and limitations provided herein.
During their incumbency, sangguniang kabataan officials shall be
exempt from payment of tuition and matriculation fees while
enrolled in public tertiary schools, including state colleges and
universities. The National Government shall reimburse said college
or university the amount of the tuition and matriculation fees:
Provided, That, to qualify for the privilege, the said officials shall
enroll in a state college or university within or nearest their area of
jurisdiction.
Sec. 435. Succession and Filling of Vacancies. –
(a) In case a sangguniang kabataan chairman refuses to assume
office, fails to qualify, is convicted of a felony, voluntarily
resigns, dies, is permanently incapacitated, is removed from
office, or has been absent without leave for more than three (3)
consecutive months, the sangguniang kabataan member who
obtained the next highest number of votes in the election
immediately preceding shall assume the office of the chairman
for the unexpired portion of the term, and shall discharge the
powers and duties, and enjoy the rights and privileges
appurtenant to the office. In case the said member refuses to
assume the position or fails to qualify, the sangguniang
kabataan member obtaining the next highest number of votes
shall assume the position of the chairman for the unexpired
portion of the term.
(b) Where two (2) or more sangguniang kabataan members
obtained the same next highest number of votes, the other
sangguniang kabataan members shall conduct an election to
choose the successor to the chairman from among the said
members.
(c) After the vacancy shall have been filled, the sangguniang
kabataan chairman shall call a special election to complete the
membership of said sanggunian. Such sangguniang kabataan
member shall hold office for the unexpired portion of the term
of the vacant seat.
(d) In case of suspension of the sangguniang kabataan chairman,
the successor, as determined in subsections (a) and (b) of this
section shall assume the position during the period of such
suspension.
CHAPTER 9. - Pederasyon ng mga Sangguniang Kabataan
Sec. 436. Pederasyon ng mga Sangguniang Kabataan. –
(a) There shall be an organization of all the pederasyon ng mga
sangguniang kabataan to be known as follows:
Bautista, Gastanes, Lopez, Sulit
(1) In municipalities, pambayang pederasyon ng mga
sangguniang kabataan;
(2) In cities, panlungsod na pederasyon ng mga sangguniang
kabataan;
(3) In provinces, panlalawigang pederasyon ng mga
sangguniang kabataan;
(4) In special metropolitan political subdivisions,
pangmetropolitang pederasyon ng mga sangguniang
kabataan; and
(5) On the national level, pambansang pederasyon ng mga
sangguniang kabataan.
(b) The pederasyon ng mga sangguniang kabataan shall, at all
levels, elect from among themselves the president, vice-
president and such other officers as may be necessary and shall
be organized in the following manner:
(1) The panlungsod and pambayang pederasyon shall be
composed of the sangguniang kabataan chairmen of
barangays in the city or municipality, respectively;
(2) The panlalawigang pederasyon shall be composed of
presidents of the panlungsod and pambayang
pederasyon;
(3) The pangmetropolitang pederasyon shall be composed of
presidents of the panlungsod and pambayang
pederasyon;
(c) The elected presidents of the pederasyon at the provincial,
highly urbanized city, and metropolitan political subdivision
levels shall constitute the pambansang katipunan ng mga
sangguniang kabataan.
Sec. 437. Constitution and By-Laws. - The term of office, manner of
election, removal and suspension of the officers of the pederasyon
ng mga sangguniang kabataan at all levels shall be governed by the
constitution and by-laws of the pederasyon in conformity with the
provisions of this Code and national policies on youth.
Sec. 438. Membership in the Sanggunian. –
(a) A sangguniang kabataan chairman shall, upon certification of
his election by the COMELEC and during his tenure of office is
elected as pederasyon president, serve as an ex officio member
of the sangguniang panlalawigan, sangguniang panlungsod,
and sangguniang bayan, as the case may be, without need of
further appointment.
(b) The vice-president of the pederasyon whose president has been
elected as president of a higher pederasyon shall serve as ex
officio member of the sanggunian concerned without need of
further appointment.
(c) The pederasyon president or vice-president, as the case may
be, shall be the chairman of the committee on youth and sports
development of the sanggunian concerned.
CHAPTER 10. - Linggo ng Kabataan
Sec. 439. Observance of Linggo ng Kabataan. –
(a) Every barangay, municipality, city and province shall, in
coordination with the pederasyon ng mga sangguniang
kabataan at all levels, conduct an annual activity to be known
as the Linggo ng Kabataan on such date as shall be determined
by the Office of the President.
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(b) The observance of the Linggo ng Kabataan shall include the
election of the counterparts of all local elective and appointive
officials, as well as heads of national offices or agencies
stationed or assigned in the territorial jurisdiction of the local
government unit, among in- school and community youth
residing in the local government unit concerned from ages
thirteen (13) to seventeen (17). During said week, they shall hold
office as boy and girl officials and shall perform such duties and
conduct such activities as may be provided in the ordinance
enacted pursuant to this Chapter.
ALU v. Letrondo-Montejo (1994)
Summary: Petitioners are members of ALU-TUCP employed by AMS
Farming Corporation. Based on the CBA of the parties, AMS will pay
its employees a holiday pay. December 4, 1992 was declared a
special day for the holding of SK Elections. The petitioners are
claiming their holiday pay for the said date; AMS refused on the
ground that it is not a holiday within the contemplation of the CBA.
The Supreme Court held that AMS Farming must pay the holiday
pay to its employees. Election for members of the SK may properly
be considered a "local election" within the meaning of the CBA and
the day on which it is held to be a holiday.
Doctrine: Sangguniang Kabataan (SK) is part of the local
government structure. The Local Government Code creates in every
barangay a Sangguniang Kabataan
Mercado v. Board of Election Supervisors (1995)
Summary: After election, Mercado was declared the SK chairman of
Brgy. Mabalor. However, his rival Pangilinan filed a protest with the
BES. After a recount, Pangilinan was declared the winner. Mercado
sought recourse with the RTC but the latter dismissed it averring
that it had no jurisdiction pursuant to COMELEC Res. No. 2499
vesting BES as the final arbiter of SK election controversies. Before
the SC, Mercado assailed the RTC order and also prayed for the
nullification of Res. 2499 as the provision for BES as final arbiter was
contrary to Omnibus Election Code and Constitution. The SC held
that Res. No. 2499 was not contrary to the Election Code nor the
Constitution for the provisions invoked referred to barangay officials.
SK officials are NOT the barangay officials contemplated in
Omnibus Election Code. However, Mercado’s appeal to the RTC
must still be granted in its exercise of judicial review.
Doctrine: BES has direct general supervision in the conduct of SK
election and as the final arbiter of all election protests. No law in
effect prior to the ratification of the Constitution had made the SK
chairman an elective barangay official. The SK’s chairman being an
ex-officio member of the sanggu brgy does not also make him a
barangay official for the law specifically provides who are its elective
members.
Garvida v. Sales (1997)
Summary: Petitioner sought to run for the position of Sangguniang
Kabataan chairman in the 1996 elections. However, her certificate of
candidacy was disapproved due to her age. Although she was
eventually allowed to run, due to a petition filed by her rival
Bautista, Gastanes, Lopez, Sulit
(respondent Sales), COMELEC en banc issued an order to suspend
petitioner’s proclamation if she won (which she did). SC held that
petitioner was ineligible to run for the position. Sec428, LGC
specifically provides that an elective official must not be more than
21 years old on the day of his election. On the day of the elections,
petitioner was 21 years, 11 months and 20 days old, thus she is
ineligible to run as a candidate.
Doctrine: The phrase "not more than 21 years of age" means not over
21 years, it is not equivalent to "less than 22 years old.”
Montesclaros v. COMELEC (2002)
Summary: 20-year old petitioners (kids) seek to prevent the
postponement of the SK elections and the reduction of the age
requirement from “at least 15 but not more than 21 years of age” (as
provided in the LGC of 1991) to “at least 15 but less than 18 years of
age” (as recommended by COMELEC, provided in the consolidated
bill of the 2 houses, and subsequently provided by law under R.A.
No. 9164, which was passed after this petition was filed). The kids
argue, among others, that the acts discriminate, disenfranchise,
single out, and dismember the SK members who are 18 but not more
than 21 years old, composed of about 7 million youth. Court denied
the petition. There was no actual controversy, the kids have no
standing, and there was no constitutional issue when the petition
was filed.
DOCTRINE: SK membership is not a property right. It is a mere
statutory right conferred by law. One who is no longer qualified
because of an amendment in the law cannot complain of being
deprived of a proprietary right to SK membership
B. The Municipality
Muñez v. Arino (1995)
Summary: Mayor Irisari issued a warrant of arrest against Muñez
after the latter failed to attend conference re: a land dispute. Muñez
filed (1) a complaint against the mayor for grave misconduct and
usurpation of judicial function with the Office of the Ombudsman,
and (2) an administrative complaint for violation of the Constitution,
misconduct in office, and abuse of authority with the Sangguniang
Panlalawigan. The criminal case against the mayor for usurpation of
judicial function came before MCTC Judge Ariño, who initially denied
the mayor’s motion to quash on the ground that the power of mayors
to issue warrants of arrest had ceased to exist as of Feb. 2, 1987
when the Constitution took effect. Judge Ariño, however, reversed
his previous order and dismissed the case, relying on a DILG
Resolution (which found that the mayor only issued an invitation or
summons, not a warrant of arrest). While Judge Ariño may have
acted in good faith, SC still held him administratively held liable. A
warrant of arrest was clearly issued. Mayor Irisari justified his order
on the basis of Sec. 143(3) of the former LGC (BP Blg. 337). This
provision has, however, been repealed by Art. III, Sec. 2 of the 1987
Constitution.
Doctrine: The mayor no longer has the power to conduct preliminary
investigations, much less issue orders of arrest. The function of
determining probable cause and issuing, on the basis thereof,
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warrants of arrest or search warrants, may be validly exercised only
by judges.
Greater Balanga Devt v. Municipality of Balanga, Bataan
(1994)
Supra
C. The City
Lim and Garayblas v. CA (2002)
Summery: Mayor Lim instructed policemen to inspect Bistro’s
license and work permits. This cause stoppage of operations in
Bistro’s nightclub and restaurant. Lim also refused to accept Bistro’s
application for a business license and he later closed down the
establishment. Lim contends that as mayor, he has the power to
grant and refuse applications for business licenses. This power
implicitly includes power to inspect, investigate and close down
Bistro’s operations for violation of the conditions of its licenses and
permits. SC held that Lim cannot close down these establishments
because powers are expressly premised on the violations of the
conditions.
Doctrine: Power of the mayor to issue business licenses and permits
necessarily includes the corollary power to suspend, revoke or even
refuse to issue the same. However, the power to suspend or revoke
these licenses and permits is expressly premised on the violation of
the conditions of these permits and licenses. Also, the Mayor cannot
close down an establishment without due process of law; there must
be a prior notice and hearing.
C. The Province
E. Application of the Code to LGU in Autonomous
Region
SEC. 526. Application of this Code to Local Government Units in the
Autonomous Regions. - This Code shall apply to all provinces, cities,
municipalities and barangays in the autonomous regions until such
time as the regional government concerned shall have enacted its
own local government code.
F. The Autonomous Region in Muslim Mindanao
1987 Constitution, 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.
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
Bautista, Gastanes, Lopez, Sulit
of this Constitution and the national sovereignty as well as territorial
integrity of the Republic of the Philippines.
Sec. 16. The President shall exercise general supervision over
autonomous regions to ensure that the laws are faithfully executed.
Sec. 17. All powers, functions, and responsibilities not granted by this
Constitution or by law to the autonomous regions shall be vested in
the National Government.
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 from
multisectoral 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 acts
shall likewise provide for special courts with personal, family, and
property law jurisdiction consistent with the provisions of this
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 favorably in such plebiscite shall be
included in the autonomous region.
Sec. 20. Within its territorial jurisdiction and subject to the provisions
of this Constitution and national laws, the organic act of
autonomous regions shall provide for legislative powers over:
(1) Administrative organization;
(2) Creation of sources of revenues;
(3) Ancestral domain and natural resources;
(4) Personal, family, and property relations;
(5) Regional urban and rural planning development;
(6) Economic, social, and tourism development;
(7) Educational policies;
(8) Preservation and development of the cultural heritage; and
(9) Such other matters as may be authorized by law for the
promotion of the general welfare of the people of the region.
Sec. 21. The preservation of peace and order within the regions shall
be the responsibility of the local police agencies which shall be
organized, maintained, supervised, and utilized in accordance with
applicable laws. The defense and security of the regions shall be the
responsibility of the National Government.
RA 6734: An Act Providing for the Organic Act for Autonomous Region
of Muslim Mindanao
RA 9054: An Act to Strengthen and Expand the Organic Act for the
Autonomous Region of Muslim Mindanao, Amending RA 6734
Art II, Sec. 3. Seat of Autonomous Government. - The regional
legislative assembly, hereinafter referred to as the Regional
Assembly, shall by law, fix the permanent seat of government of the
regional government in any province or city that is a member of the
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autonomous region, taking into consideration accessibility and
efficiency in which its mandate may be carried out under this
Organic Act. xxx
Art III, Sec. 3. Devolution of Powers. - The regional government shall
adopt a policy on local autonomy whereby regional powers shall be
devolved to local government units particularly in areas of
education, health, human resource, science and technology and
people empowerment. Until a law implementing this provision is
enacted by the Regional Assembly, Republic Act No. 7160, the Local
Government Code of 1991, shall continue to apply to all the
provinces, cities, municipalities, and barangay within the
autonomous region.
The Regional Assembly may not pass any law to diminish, lessen, or
reduce the powers, functions, and shares in the internal revenue
taxes of the said local government units as provided by Republic Act
No. 7160, the Local Government Code of 1991.
Art IV, Sec. 1. Powers and Functions. - Subject to the provisions of the
Constitution, the Regional Government shall exercise those powers
and functions expressly granted to it in this Organic Act, or
necessary for or incidental to the proper governance and
development of all the constituent units within the autonomous
region consistent with the policy on regional and local autonomy
and decentralization.
The Regional Government may enact its own regional
administrative code and regional local government code consistent
with the Constitution. The powers and functions already vested upon
and the shares of the national taxes provided by Republic Act No.
7160, the Local Government Code of 1991, to provinces, cities,
municipalities, and barangay in the autonomous region shall not be
reduced.
Art V, Sec 2. Cabinet Membership. - As far as practicable, it shall be
the policy of the national government that there shall be at least one
(1) member of the cabinet with a rank of a department secretary who
is an inhabitant of the autonomous region to be recommended by
the Regional Governor in consultation with elected officials and
concerned sectors of the autonomous region.
Art V, Sec 4. Representation of Autonomous Region in General in the
Central Government or National Government. -Representation of the
inhabitants of the autonomous region in the central government or
national government may be done by appointment or election.
Appointment of inhabitants of the autonomous region to positions
in the central government or national government shall be subject
to central government or national government standards and
guidelines. Such appointment shall be made only upon
recommendation by the Regional Governor after consultation with
the Regional Assembly and the concerned sectors of the
autonomous region.
Right of representation shall not be construed in such a way that
applicants from the autonomous region, especially Muslims and
Bautista, Gastanes, Lopez, Sulit
cultural communities, for lower positions in the above organs of the
government cannot be appointed anymore thereto.
Election of legislators to represent the autonomous region in the
Congress of the Republic shall be done pursuant to the rules of the
Commission on Elections.
Art V, Sec 5. Representatives in Executive Departments and
Constitutional Bodies. -At least, one (1) qualified inhabitant of the
autonomous region recommended by the Regional Governor
consultation with the Regional Assembly and concerned sectors of
the autonomous region shall be appointed, as far as practicable, in
each of the departments, offices or bureaus and constitutional
bodies of the central government or national government that deal
with the autonomous region, in primarily confidential, highly
technical, or policy-determining positions.
Art VI, Sec 1 Regional Assembly. - The legislative power of the
autonomous government shall be vested in the Regional Assembly
except to the extent that it is reserved to the people by provisions on
initiative and referendum as provided by law.
Art VI, Sec 2. Election of Regional Assembly. - The Regional Assembly
shall be composed of Members elected by popular vote, with three
(3) members elected from each of the legislative districts.
Art VII, Sec 1. Executive Power. - The executive power shall be vested
in a Regional Governor. He shall be elected by the qualified voters of
the autonomous region.
Art VIII, Sec 1. Exercise of Judicial Power. - The judicial powers shall
be vested in the Supreme Court and in such lower courts as may be
established by law including the Shari'ah Courts in accordance with
Section 5 hereof.
Art VIII, Sec 2. Justices from Autonomous Region. - It shall be the
policy of the central government or national government that,
whenever feasible, at least one (1) justice in the Supreme Court and
two (2) justices in the Court of Appeals shall come from qualified
jurists of the autonomous region. For this purpose, the Regional
Governor may, after consultations with the Regional Assembly and
concerned sectors in the autonomous region, submit the names of
qualified persons to the Judicial and Bar Council for its
consideration. The appointments of those recommended by the
Regional Governor to the judicial positions mentioned above are
without prejudice to appointments that may be extended to other
qualified inhabitants of the autonomous region to other positions in
the Judiciary.
Art VIII, Sec 9. Jurisdiction of the Shari'ah Appellate Court. -The
Shari'ah Appellate Court shall:
(a)Exercise original jurisdiction over petitions for certiorari,
prohibition, mandamus, habeas corpus, and other auxiliary writs
and processes only in aid of its appellate jurisdiction; and,
(b)Exercise exclusive appellate jurisdiction over all cases tried in the
Shari'ah district courts as established by law.
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Disoman Cop v. Datumanong (2004) Governor Mutilan issued an office order designating Dr. Saber also
Summary: DO 119 created a DPWH Marawi Sub-District Engineering as OIC for the same hospital. Saver filed with the CA a petition for
Office and RA 8999 constituted into an engineering district to be quo warranto, claiming that he was the lawfully designated OIC. CA
known as the First Engineering District of the Province of Lanao del held in Saber’s favor. Petitioners appealed to the SC. SC held in their
Sur. Petitioners challenged their constitutionality, alleging that favor and granted their petition. Under the current law, Macacua has
DO119 and RA8999 violate the constitutional autonomy of the the authority to assign and designate Sani to their respective
ARMM. DO 119 has tasked the Marawi Sub-District Engineering position.
Office with functions that have already been devolved to the DPWH-
ARMM First Engineering District in Lanao del Sur. SC held that By Doctrine: The ARMM Local Code vests in the Provincial Governor the
creating an office with previously devolved functions, R.A. 8999, in power to “exercise general supervision and control over all
essence, sought to amend R.A. 6074. The amendatory law should programs, projects, services, and activities of the provincial
therefore first obtain the approval of the people of the ARMM before government.” Upon the effectivity of the ARMM Local Code, the
it could validly take effect. Absent compliance with this requirement, power of supervision and control over the provincial health officer
R.A. 8999 has not even become operative. passed from the Regional Secretary to the Provincial Governor.
From then on the Provincial Governor began to exercise the
Doctrine: In treading their chosen path of development, the Muslims administrative authority to designate an Officer inCharge in the
in Mindanao are to be given freedom and independence with provincial health office pending the appointment of a permanent
minimum interference from the National Government. This provincial health officer.
necessarily includes the freedom to decide on, build, supervise and
maintain the public works and infrastructure projects within the Time Period Laws Applicable
autonomous region. The devolution of the powers and functions of 1st Before August 1, 1989 EO 119 & 1984 LGC
the DPWH in the ARMM and transfer of the administrative and fiscal Period
management of public works and funds to the ARG are meant to be 2nd August 1, 1989 - Organic Act of 1989,
true, meaningful and unfettered. With R.A. 8999, however, this Period January 1, 1992 1984 LGC
freedom is taken away, and the National Government takes control
3rd January 1, 1992 - Organic Act of 1989,
again. Evidently, the intention is to cede some, if not most, of the
Period March 3, 1994 1991 LGC, EO 133
powers of the national government to the autonomous government
in order to effectuate a veritable autonomy. The continued 4th March 3, 1994 – Organic Act of 1989,
enforcement of R.A. 8999, therefore, runs afoul of the ARMM Period August 14, 2001 ARMM LGC
Organic Acts and results in the recall of powers, which have 5th August 14, 2001 Organic Act of 2001,
previously been handed over. Period onwards ARMM LGC

Abbas v. COMELEC (1989)

Summary: Petitioners Abbas, Mam-o, et al. assail the
constitutionality of several portions of RA 6734 entitled “An Act
Providing for an Organic Act of ARMM” on several grounds. They
pray that the COMELEC be enjoined from conducting the plebiscite
and the DBM from releasing funds for that purpose. They claim that
RA 6738 violates the Constitution and the Tripoli Agreement. Court
ultimately upheld the constitutionality of the RA 6734.
Doctrine: Creation of the autonomous region shall take effect only
when approved by a majority of the votes cast the constituent units
in a plebiscite, and only those provinces and cities where a majority
vote in favor of the Organic Act shall be included in the autonomous
region. The single plebiscite contemplated by the Constitution and
R.A. No. 6734 will be determinative of (1) whether there shall be an
autonomous region in Muslim Mindanao and (2) which provinces
and cities, among those enumerated in R.A. No. 6734 shall comprise
it.
Pandi v. CA (2002)
Summary: ARMM Secretary of Health Macacua issued a
memorandum assigning Dr. Pandi as Officer in Charge of the
Integrated Provincial Health Office – Amai Pakpak General Hospital,
Lanao del Sur (also detailed Dr. Sani as provincial health officer of
the same hospital). A little later, the Lanao del Sur Provincial
G. Cordillera Administrative Region
EO 220: Creating a Cordillera Adminstrative Region (CAR),
Appropriating Funds Therefor And For Other Purposes
Sec. 3. Purposes. The CAR shall have the following purposes:
(a) Administer the affairs of government in the region as defined in
Section 4 and 5 below;
(b) Accelerate the economic and social growth and development
of the units of the region; and
(c) Prepare for the establishment of the autonomous region in the
Cordilleras.
Sec. 4. Scope of Authority and Responsibility.
The CAR shall have authority and responsibility in the region over
the following:
(a) Regional administrative system;
(b) Economic, social and cultural development;
(c) Agricultural, commercial and industrial development and
promotion of tourism;
(d) Infrastructure development;
(e) Urban and rural development, protection of ancestral domain
and land reform;
(f) Regional educational system, including the establishment and
maintenance of educational institutions and the formulation of

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educational policies to cultivate the indigenous Cordillera
cultures and inculcate traditional values;
(g) Health, sports, welfare and social services;
(h) Development of indigenous laws and political institutions,
particularly those of direct democracy and collective
leadership, as well as the promotion of indigenous institutions
and processes for conflict resolution and dispute settlement;
(i) Preservation and enhancement of indigenous customs,
traditions, languages and cultures;
(j) Strengthening of the bodong system of tribal unity and
cooperation;
(k) Protection and preservation of the cultural identity, values,
mores and norms of the various ethno-linguistic groups in the
Cordilleras;
(l) Promotion of social justice and protection of human rights,
particularly the rights of women, children, the elderly and
disadvantaged groups, as well as the rights of people's
organizations; and
(m) Such other matters as may be authorized by law or delegated
by the President for the promotion of the general welfare.
Sec. 5. Powers and Functions.
The CAR shall coordinate the planning and implementation of
programs and services in the areas enumerated in Section 4.
Accordingly, it shall be vested with, among others, the following
powers and functions:
(a) Coordinate with the local government units as well as with the
executive departments of the National Government in the
supervision of field offices and in identifying, planning,
monitoring, and accepting projects and activities in the region;
(b) Appoint, supervise, control and discipline personnel of the CAR
and of such other offices as may be funded by it;
(c) Manage and control funds, facilities and equipment
appropriated for the CAR;
(d) Advise the National Government on matters affecting the
Cordilleras;
(e) Undertake studies towards codifying the customary laws of the
tribes, including the pagtas of the bodong system; and
(f) Promulgate and implement resolutions, rules and regulations
necessary to achieve effectively the purposes of this Executive
Order and to carry out the powers and functions of the CAR.
Ordillo v. COMELEC (1990)
Summary: The people of the Cordilleras voted on the plebiscite for
the creation of the Cordillera AUTONOMOUS Region but ONLY
Ifugao voted in favor of it. The Executive Secretary issued a
memorandum for the winding up of affairs of the Cordillera
Executive Board (“CEB”) & the Cordillera Regional Assembly
(“CRA”), the COMELEC issued a resolution stating that the organic
Bautista, Gastanes, Lopez, Sulit
act was approved by the region, and the DOJ Secretary issued a
memo to the President reiterating the COMELEC resolution (also to
the effect of certifying as to the validity of the creation of the
autonomous region despite Ifugao being the lone province).
Congress also enacted RA 6861 setting the election for the said
region. Lastly, the President issued AO 160 abolishing the CEB and
CRA. Petitioners questioned the validity of the creation of the
autonomous region despite Ifugao being the sole province which
voted for its inclusion. The SC ruled that Ifugao, in itself, cannot
comprise the Cordillera Administrative Region.
Doctrine: A single province cannot comprise an autonomous region.
It is contrary to the Constitution and RA 6766. It is also impractical
and illogical.
Cordillera Broad Coalition v. COA (1990)
supra
H. The Metropolitan Manila Development Authority
LGC, 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 executives
and legislative assemblies. The jurisdiction of the metropolitan
authority that will hereby be created shall be limited to basic
services requiring coordination.
MMDA v. Bel-Air Villages Ass’n (2000)
supra
MMDA v. Garin (2005)
Summary: Garin filed a case questioning the authority of the MMDA
to confiscate driver’s license of traffic rule violators claiming that
such authority was not granted to it and being a violation of the due
process clause. The SC ruled that MMDA had the power to
confiscate Garin’s license.
Doctrine: Confiscation of driver’s license is an exercise of Police
Power which is exercised only by the legislature and to whom the
legislature has delegated such to. As ruled in BelAir, the MMDA may
not legislate policies, but may merely enforce and administer rules.
If a traffic law or regulation validly enacted by the legislature or
those agencies to whom legislative powers have been delegated, the
petitioner is not precluded to confiscate and suspend or revoke
drivers’ licenses.
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IX. Municipal Officers and Employees

A. Elective Officials  74: Limitations on Recall

 75: Expenses Incident to Recall Elections
Chapter I – Qualifications and Election – 39 – 43
 39: Qualifications 1. Qualifications
 40: Disqualifications
 41: Manner of Election LGC Sec. 39. Qualifications. –
 42: Date of Election (a) An elective local official must be a citizen of the Philippines; a
 43: Term of Office registered voter in the barangay, municipality, city, or province
or, in the case of a member of the sangguniang panlalawigan,
Chapter II – Vacancies and Succession – 44 – 47 sangguniang panlungsod, or sanggunian bayan, the district
 44: Permanent Vacancies in the Offices of the Governor, Vice- where he intends to be elected; a resident therein for at least
Governor, Mayor, and Vice-Mayor one (1) year immediately preceding the day of the election; and
able to read and write Filipino or any other local language or
 45: Permanent Vacancies in the Sanggunian
dialect.
 46: Temporary Vacancy in the Office of the Local Chief Executive
(b) Candidates for the position of governor, vice- governor or
 47: Approval of Leaves of Absence
member of the sangguniang panlalawigan, or Mayor, vice-
mayor or member of the sangguniang panlungsod of highly
Chapter III – Local Legislation – 48 – 59
urbanized cities must be at least twenty-three (23) years of age
 48: Local Legislative Power on election day.
 49: Presiding Officer (c) Candidates for the position of Mayor or vice-mayor of
 50: Internal Rules of Procedure independent component cities, component cities, or
 51: Full Disclosure of Financial and Business Interests of municipalities must be at least twenty-one (21) years of age on
Sanggunian Members election day.
 52: Sessions (d) Candidates for the position of member of the sangguniang
 53: Quorum panlungsod or sangguniang bayan must be at least eighteen
 54: Approval of Ordinances (18) years of age on election day.
 55: Veto Power of the Local Chief Executive (e) Candidates for the position of punong barangay or member of
 56: Review of Component City and Municipal Ordinances or the sangguniang barangay must be at least eighteen (18) years
Resolutions by the Sangguniang Panlalawigan of age on election day.
(f) Candidates for the sangguniang kabataan must be at least
 57: Review of Barangay Ordinances by the Sangguniang
fifteen (15) years of age but not more than twenty-one (21) years
Panlungsod or Sangguniang Bayan
of age on election day.
 58: Enforcement of Disapproved Ordinances or Resolutions
 59: Effectivity of Ordinances or Resolutions
Notes:
Chapter IV – Disciplinary Actions – 60 – 68
 60: Grounds for Disciplinary Actions Modes of losing Philippine citizenship:
 61: Form and Filing of Administrative Complaints (1) Naturalization in a foreign country;
(2) Express renunciation of citizenship; and
 62: Notice of Hearing
(3) Subscribing to an oath of allegiance to support the Constitution
 63: Preventive Suspension
or laws of a foreign country
 64: Salary of Respondent Pending Suspension
 65: Rights of Respondent Modes to reacquire citizenship:
 66: Form and Notice of Decision (1) Direct act of congress
 67: Administrative Appeals (2) Naturalization
 68: Execution Pending Appeal (3) Rrepatriation

Chapter V – Recall – 69 – 75 Abella v. COMELEC (1991)

 69: By Whom Exercised Facts: Adelina Larrazabal is the wife of a candidate for provincial
 70: Initiation of the Recall Process governor of Leyte who was disqualified for lack of residence. She
 71: Election on Recall filed her own CoC in substitution. Silvestre De la Cruz filed a petition
 72: Effectivity of Recall to disqualify her for false statements in her CoC regarding her
 73: Prohibition from Resignation residence. Abella, another candidate, also filed a complaint.

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COMELEC disqualified Larrazabal and disallowed Abella (who got
the 2nd highest number of votes) from being proclaimed. Larrazabal
insists she is a resident and a registered voter of Kananga. De la Cruz
and Abella contend she is a resident and registered voter of Ormoc
City (a component city of the province of Leyte, independent of the
province).
Held: Larrazabal’s disqualification proper for failure to show that
she and her husband maintain separate residences. A citizen may
leave for other places for study, practice of vocation, or business, but
there is no showing that Larrazabal left Kananga for these reasons.
Larrazabal failed to prove animus revertendi. As a voter in Ormoc
City, Larrazabal is prohibited from voting and being voted in elective
offices in the province of Leyte, as mandated by the Constitution and
RA 179. Abella should not be installed as the governor. People voted
for Larrazabal; the net effect is that Abella lost.
Frivaldo v. COMELEC (1989)
Facts: Frivaldo was elected governor of Sorsogon but was previously
naturalized as an American citizen. In light of this fact, the League
of Cities sought to annul his proclamation and to remove him from
his office. The Court held that he was not a Filipino Citizen because
he did not reacquire his citizenship through the means accorded by
the law either through PD 725 or CA 63. His mere participation in
the congressional elections in 87 (which resulted in an automatic
renunciation of his American Citizenship according to US laws) did
not amount to reacquisition.
Held: The reason for this inquiry is the provision in Article XI, Section
9, of the Constitution that all public officials and employees owe the
State and the Constitution "allegiance at all times" and the specific
requirement in Section 42 of the Local Government Code that a
candidate for local elective office must be inter alia a citizen of the
Philippines and a qualified voter of the constituency where he is
running. Section 117 of the Omnibus Election Code provides that a
qualified voter must be, among other qualifications, a citizen of the
Philippines, this being an indispensable requirement for suffrage
under Article V, Section 1, of the Constitution.
Frivaldo v. COMELEC (1996)
Facts: Frivaldo and Lee ran for governor of Sorsogon. Frivaldo was
disqualified by Comelec but filed MR. Election was conducted
without a ruling on the MR. Frivaldo won. Comelec suspended
proclamation and eventually disqualified Frivaldo and proclaimed
Lee as the winner. Frivaldo files a petition in Comelec and was
rendered as qualified to hold elective position. The issue is whether
or not Frivaldo is disqualified because he was a US citizen prior to
the election and only reacquired citizenship on the day when he was
supposed to assume office.
Held: SC states that the citizenship requirement is not reckoned
prior to the election or during the filing of CoC but on the day the
person is elected and the term of office is supposed to begin.
Bautista, Gastanes, Lopez, Sulit
Labo v. COMELEC (1989)
Petitioner Ramon Labo, Jr. was proclaimed mayor-elect of Baguio
City. A petition for quo warranto was filed by the private respondent
Luis Lardizabal. Petitioner now asks the SC to restrain the COMELEC
from looking into the question of his citizenship as a qualification for
his office as Mayor of Baguio City. He claims that the issue here is
the timeliness of petition for quo warranto against him. The Court
held that the petition was filed on time and that is not the problem.
The question is whether or not the petitioner is a foreigner and the
Held: Ramon J. Labo, Jr. is NOT a citizen of the Philippines and
therefore DISQUALIFIED from continuing to serve as Mayor of
Baguio City. The citizenship and voting requirements were not
possessed at all in the first place on the day of the election. The
petitioner was disqualified from running as mayor and, although
elected, is not now qualified to serve as such. Philippine citizenship
is not a cheap commodity that can be easily recovered after its
renunciation. This may not be accomplished by election to public
office. The people of that locality could not have, even unanimously,
changed the requirements of the Local Government Code and the
Constitution.
Labo v. COMELEC (1991)
Facts: Ramon Labo Jr. and Roberto Ortega vied for the position of
Mayor of Baguio city in the May 1992 Elections. Following the 1989
SC ruling declaring Labo was not a Filipino citizen, his opponent
Ortega filed a disqualification case.
Held: SC upholds the 1989 ruling, but declared that Ortega (as
second-placer) cannot be declared the Mayor. Following Sec. 44 of
the LGC, the Vice-Mayor must become Mayor. Although Labo had
already applied for repatriation, the Special Committee had yet to
act upon his application. Mere application for repatriation does not
amount to an automatic reacquisition of Philippine Citizenship.
Mercado v. Manzano (1999)
Facts: Mercado and Manzano are vice mayor candidates in Makati.
A certain Mamaril filed for disqualification of Manzano for being a
US citizen. Manzano was disqualified by second division of comelec.
He filed an MR which remained pending after election. Mercado
sought to intervene but his motion was also not acted upon.
Comelec en banc reversed the decision of division and said that
Manzano is qualified. Mercado files petition with SC.
Held: SC states that Manzano is not disqualified. What the
prohibition in the LGC on dual citizens refer to is not really dual
citizenship but dual allegiance. He also effectively renounced his US
citizenship by taking his oath of allegiance and stating in his CoC
that he is a PH citizen.
Coquilla v. COMELEC (2002)
Facts: Coquilla, a natural born Filipino, became a naturalized US
citizen when he joined the US Navy. Upon retirement, he was
repatriated to the Philippines. In Nov. 2000, he applied to be a
registered voter of Oras, Eastern Samar. In Feb. 2001, he filed for
candidacy for Mayor of Oras. The incumbent mayor, Alvarez,
opposed this saying that Coquilla has not satisfied the 1 year
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residency requirement. SC declared that he did not satisfy the
residency requirement as his residence should be counted from the
time he was repatriated, Nov. 2000.

Held: The residence in Sec. 39(a) LGC is to be understood as domicile

or legal residence that is, “the place where a party actually or
constructively has his permanent home, where he, no matter where
he may be found at any given time, eventually intends to return or
remain (animus manendi). A domicile of origin is acquired by every
person at birth. It is usually the place where the child’s parents
reside and continues until the same is abandoned by acquisition of
new domicile.

Limbona v. COMELEC (2008)

Facts: Norlainie and Mohammad Limbona filed their certificates of
candidacy to run for mayor of Pantar, Lanao del Norte.
Subsequently, Malik also filed his COC. Malik also filed a petition for
disqualification of the Limbonas on the ground of lack of the one-
year residency requirement.

Held: The Supreme Court upheld Norlainie’s disqualification.

 The term "residence" as used in the election law is synonymous
with "domicile," which imports not only intention to reside in a
fixed place but also personal presence in that place, coupled with
conduct indicative of such intention.
 For purposes of election law, the question of residence is mainly
one of intention. In order to acquire a domicile by choice, there
must concur (1) residence or bodily presence in the new locality,
(2) an intention to remain there, and (3) an intention to abandon
the old domicile.
 A person's "domicile" once established is considered to continue
and will not be deemed lost until a new one is established.
 To change domicile, one must demonstrate an actual removal or
an actual change of domicile; a bona fide intention of abandoning
the former place of residence and establishing a new one, and
definite acts which correspond with the purpose. There must be
animus manendi coupled with animus non revertendi. The
purpose to remain in or at the domicile of choice must be for an
indefinite period of time; the change of residence must be
voluntary; and the residence at the place chosen for the new
domicile must be actual.
 Norlainie's claim that she has been physically present and
actually residing in Pantar for almost 20 months prior to the
elections, is self-serving and unsubstantiated. Norlainie’s
evidence cannot persuade the Court that she has abandoned her
domicile of origin or her domicile in Marawi City.

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