Adsum Notes Public Corp FINAL Part1to4

Notes (Atty. D.
Largo’s Review on Public Corporations)

PUBLIC CORPORATIONS [LOCAL GOVERNMENT LAW]
PART I: GENERAL PRINCIPLE
A. Corporation
1. Definition
an artificial being created by operation of law, having the right of succession and the
powers, attributes and properties expressly authorized by law or incident to its existence.
2. Classification
Public Corporation Private Corporation Quasi-public Corporation
Organized for the government Formed for some private A private corporation that
of a portion of the State purpose, benefit, aim or end renders public service or
supplies public wants
3. Public and Private Corporations, distinguished

Private Corporation Public Corporation
-those formed for some private -one created by the State either by
purpose, benefit, aim or end. general or special act for purposes of
DEFINITION administration of local government
or rendering service in the public
interest.
-created for private aim, gain, or -established for purposes connected
benefits of its members PURPOSE OF with the administration of civil or
CREATION local governments
-created by the will of the -creations of the State either by
incorporators with the CREATORS general or special act
recognizance of the State.
-constitute a voluntary agreement -involuntary consequence of
by and among its members NATURE legislation
4. Public Corporation, classified

Quasi- Corporations Municipal Corporations/Local Government
-created as agencies of the State for narrow -body politic and corporate constituted by the
and limited purposes without the powers incorporation of the inhabitants for purposes
and liabilities of self-governing corporations. of local government thereof.
-established by law partly as an agency of the

State to assist in the civil government of the
country, but chiefly to regulate and administer
the local or internal affairs of the city, town or
district which is incorporated.
-political subdivision of a nation or state which

is constituted by law and has substantial
1
Page
control of local affairs

Notes (Atty. D. Largo’s Review on Public Corporations)
5. Municipal Corporation, defined
See supra.
PERCEPTIONS OF WHAT A LOCAL GOVERNMENT IS
1) limitation to the power of central government;
NOT THE COMMON VIEW
-because of LGUs certain powers are distributed or allocated to local governments and
therefore all the powers of governance is not concentrated in the central government. In
a way, it becomes a limitation to the central government
2) political subdivisions of the national government; and

THE COMMON VIEW
The common view is to view local government as either political subdivision of the state
or even territorial subdivision of a particular territory.
3) municipal corporations, primarily for the inhabitants or the community in a certain

locality.
-some view LGUs as belonging to someone or to a group of people.
-in the study of local government law, we view the local government not just as a political
subdivision but more of a municipal corporation.
Metropolitan Manila Development Authority vs. Bel-Air Village Association, Inc G.R. No. 135962, March 27, 2000
“A local government is a "political subdivision of a nation or state which is constituted by law and has substantial
control of local affairs." The Local Government Code of 1991 defines a local government unit as a "body politic and
corporate"-- one endowed with powers as a political subdivision of the National Government and as a corporate
entity representing the inhabitants of its territory. Local government units are the provinces, cities, municipalities
and barangays. They are also the territorial and political subdivisions of the state”
B. Municipal Corporations
1. Elements
a. Incorporation/Creation- refers to the law creating a local government unit.
b. Corporate name – refers to the name given by the law creating the LGU, like the City of
Cebu.
c. Inhabitants – refers to the population in a given territory.
d. Territory – refers to the land area covered by the LGUs jurisdiction.
2. Dual Nature and Functions
Public or Governmental Private or Corporate

-it is an agent of the state for the government -acts in a similar category as a business
of the territory and the inhabitants within the corporation, performing functions not strictly
local government limits governmental or political
-exercises by delegation a part of the -patrimonial powers
sovereignty of the state
-they serve as an instrumentality of the State -they act as an agency of the community in the
2
in carrying out the functions of government. administration of local affairs.

Page
EXAMPLES: the exercise of local police EXAMPLES: establishment of slaughter houses;

power, the enactment of ordinances, parks; cemeteries; fiesta celebrations and
regulating certain activities in the locality, the other similar functions.
levy, imposition, collection of local taxation,
the exercise of local eminent domain for
public works.
- In all these, you will notice that LGU is
exercising a function that pertains to the
government, that's why it is called an agent
of the national government in this regard and
therefore is a political subdivision.
NB: the dual nature of LGUs is not just based on opinions of authorities but is recognized in
Article 15 of the Local Government Code (RA 7160).
Every local government unit created or recognized under this Code is a body politic and corporate endowed with
powers to be exercised by it in conformity with law. As such, it shall exercise powers as: 1) political subdivision of
the national government and 2) as corporate entity representing the inhabitants of its territory.
Bara Lidasan vs COMELEC 21 SCRA 496

FACTS:
A law was passed creating a certain Municipality and it was supposed to consist of 21 barangays according to the
law. However, someone questioned the law as unconstitutional because they found out that the supposed newly
created municipality involved 12 barangays from a neighboring province instead of just getting all barangays in the
same province. In short, it created a new municipality covering barangays from one province and other barangays
from another province. It was questioned on the ground that it violates the one subject expressed in the title rule.
A law to be valid, it must only contain one subject and it must be expressed as far as practicable in the title
thereof. The petitioner there argued that this law covered 2 subjects: 1) the creation of the new municipality; 2)
the reduction of the territory of the neighboring province.
Indeed, it was declared unconstitutional. At least in so far as the 12 barangays coming from the other province
were concerned at that time. The proponents further posited to make the law valid in so far as the 9 barangays are
concerned.
ISSUE: WON the law is valid with regard to the 9 barangays.
RULING:
No.
The SC ruled that the proposition would have been acceptable if the LGU in the Philippines only serves one
function, and that is as agent of the national government because whatever it does, it may only seek or ask
resources from the national government. But the thing is, it also function as a corporate body and as the
representative of its constituents and therefore the issue of self-sufficiency. Would it be self-sufficient with just 9
barangays? Will it have enough funds to perform its corporate function? SC said, in the Philippines, every
municipal corporation performs twin functions.
IMPORTANCE OF DETERMINING THE DUAL FUNCTIONS OF THE LGU
a. In cases of liability for torts

EXPRESS CONSENT TO BE SUED
Section 22. Corporate Powers. -
(a) Every local government unit, as a corporation, shall have the following powers:
3
(1) To have continuous succession in its corporate name;

Page
(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. xxxx
ILLUSTRATION
Jarry was employed as a driver of the Municipality of Calumpit, Bulacan and while driving
recklessly in Municipal dump truck, (the act of negligence is already there, it's given. The dump
truck belongs to the municipality because it said municipal dump truck.) With its load of sand
for the repair of municipal streets (so public works- Governmental). The dump truck hit a
jeepney and 2 passengers died. The Sangguniang Bayan passed an ordinance appropriating P
300, 000 as compensation for the heirs of the victims. Questions: 1) is the municipality liable for
the negligence of Jarry?
ANSWER:
If the regular employee of LGU had been performing governmental function, the same is not
liable. The rationale behind the principle is that if it performs a governmental function, then it
becomes an agent of the national government and the national government enjoys the
privilege of being immune from liability if it is also performing governmental function. As an
agent it enjoys the same privileges enjoyed by the principal. But if the LGU is performing a
proprietary function, then he is not related to the national government, it enjoys the same
privilege of not being liable for the negligence of the regular employees. [NB: the LGU will be
liable for negligence performed by a special agent while performing a proprietary function.]
ALTERNATIVE ANSWER:
The LGU will be liable because under Sec. 24 of the LGC 1991, there's an express declaration
that the LGU and its officials are not exempt from liability of death of persons or damage to
property.
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.
b. Garnishment of funds
c. Liability of LGUs for contracts
-There's a school of thought that suggests that you also have to characterize the function of
the government there because the rule that when a government enters into a contract, and
that therefore, it descends itself to the level of a private individual and for which reason it
can be sued and even be held liable.
-so in local government law, look at the function performed by the LGU when it enters into a
contract in so far as liability under the contract is concerned.
d. Control of Congress over LGU (esp. on properties)
-in this regard, it will be necessary to consider whether or not LGUs be considered as
instrumentalities of the government.
Surigao Electric Co., Inc. vs Municipality of Surigao

FACTS:
4
Surigao Electric Co. was the only electric company operating in Surigao at that time. One time, the LGU operated
Page
an electric company without obtaining a certificate of public convenience from the Public Service Commission. Of
course, Surigao Electric Co. complained. The LGU concerned argued that if you look at the Public Service Law, there
is an exception there. It says: if you are an instrumentality of national government, you are exempt from obtaining
a certificate of public convenience.
ISSUE: WON the LGU is an instrumentality of the national government.
RULING:
Yes, to the extent that a LGU performs governmental function, then it can be considered an instrumentality of the
national government. So it was exempt from the certificate of public convenience.
3. Sources of Powers
a. Constitution (Article X)
b. RA 7160 [Local Government Code (LGC)]
c. Other laws, statutes or acts not inconsistent with the LGC
d. Charter (for specific powers)
4. Classification of Powers
a. Express power- those granted in express words.
b. Implied powers- those necessarily or fairly implied in or incident to the powers
expressly granted.
c. Inherent powers- those essential to the declared objects and purposes of the
corporation not simply convenient but indispensable.
d. Legislative powers- power to make laws.
e. Executive powers- power to execute laws.
f. Intramural powers- those exercised within the corporate limits of a municipal
corporation
g. Extramural powers- those exercised outside of the corporate limits, like those given for
the protection of water supply, prevention of nuisance and also for police forces
h. Governmental powers- administer the powers of the State and promoting the public
welfare within it. Example: Police power, Power of Eminent Domain. Power of Taxation
i. Municipal powers- those for the special benefit and advantage of the community.
Example: erection of waterworks, gas works, electric plants, from which profits may be
derived by the municipality.
5. Types of Municipal Corporations

DISTINCTION BETWEEN DE JURE AND DE FACTO: IN GENERAL
De jure De facto
if it has the legal title to govern the territory government which has not the legal title but is
but it has not actually govern the territory actually governing the territory
DE JURE AND DEFACTO: APPLIED IN LOCAL GOVERNMENT UNITS

De jure De facto
if it has all the elements of a municipal if there is barely tolerable compliance with the
corporation requisites of a de jure municipal corporation.
NB: the classification refers to the manner of creating it.
5
6. De facto Municipal Corporations Doctrine; Elements

Page
a. valid law authorizing its creation

b. attempt in good faith to organize under it
c. colorable compliance with the law
d. exercise of corporate powers
SIGNIFICANCE OF DISTINCTION
Under the local government law a de jure or de facto municipal corporation will be treated as
de jure municipal corporation. It is therefore significant to be able to distinguish between a de
facto and a non-municipal corporation.
DOCTRINE OF DE FACTO MUNICIPAL CORPORATION cf. Doctrine of Operative Fact

If an LGU attains the status of a de facto municipal corporation the acts of that LGU and its
officers will be treated as if they are the acts of legitimate de jure municipal corporation.
Malabang vs Benito
there is also the application of the doctrine of operative fact in this case. SC cannot just close its eyes to the fact
that before an LGU had been declared illegally created, it had operated as an LGU; it had entered into transaction;
it had exercised certain powers and the effects of these will have to be honored and recognized because of the
doctrine of operative fact.
However, even though long use of corporate power may make a corporation a de facto municipal corporation, the
state, reserves the right to question the creation of a particular LGU or municipal corporation through the method
of what we call quo warranto. And, of course, a quo warranto proceeding is a direct attack to the existence of a
municipal corporation. However, while the state reserves the right to question the existence of LGU despite long
use of corporate powers, it may, on the other hand, recognize and render, in fact, a de facto municipal corporation
de jure through a subsequent legislative recognition or validation.
Municipality of Jimenez vs Baz

FACTS:
This involves the Municipality of Sinacaban which was created through an Executive Order 258. Note of the fact
that it was created through an executive order; that it was created in 1949; since 1949 it had been exercising the
powers of an LGU. In 1965, through the famous Pelaez vs Auditor General case, a petition was filed to invalidate
certain executive orders which created certain municipalities at that time. The word 'certain' means that not all
municipalities that were created through executive orders were the subject of the petition. The contention was:
the president cannot create an LGU because it is a legislative function.
ISSUE: WON the Municipality of Sinacaban was validly created.

RULING:
Yes, de facto municipal corporation.
SC agreed that the creation of an LGU is primarily a legislative function and therefore these executive orders that
were the subject of the petition were declared unconstitutional, but not all of course, like the Municipality of
Sinacaban because the EO creating it was not among those declared unconstitutional in the Pelaez case. It is basic
that you cannot make the ruling of the court applicable to parties/entities/persons that have not been made
parties to the case. It was only in 1990 that someone questioned the existence of the Municipality of Sinacaban.
The fact that it was questioned only in 1990 is relevant – long use of corporate powers. SC ruled that Sinacaban
attained the status of a de facto municipal corporation because its existence had not been questioned for more
than 40 years. Municipal corporations may also be created by way of prescription or recognized at least its
existence because of prescription.
Municipality of San Narciso vs Mendez

FACTS:
th
Municipality of San Andres was created in 1959 through an EO. It became a 5 class municipality in 1965,
6
indicating that it had been performing the function of a municipal corporation until the case of Pelaez vs Auditor
Page
General was decided. EO 353 creating the Municipality of San Andres was not among those questioned in Pelaez
case. San Andres, its existence, was questioned in 1989.
ISSUE: WON the Municipality of San Andres was validly created.
RULING:
Yes, de jure municipal corporation.
SC had a different perspective on this, it applied a certain provision of narrative, it made an observation of the fact
rd
that in the appendix or ordinance to the 1987 Constitution, one of the 12 municipalities composing the 3 district
of Quezon, Municipality of San Andres was one of those municipalities. SC said, it is not only de facto, if you are
apply the case of Jimenez but declared it de jure by subsequent recognition. The SC added that the defective
incorporation may be obviated and a de facto rendered de jure by subsequent legislative recognition or validation.
Here, the SC observed that it is not even just legislative but constitutional recognition.
Municipality of San Narciso vs Mendez

FACTS:
th
Municipality of San Andres was created in 1959 through an EO. It became a 5 class municipality in 1965,
indicating that it had been performing the function of a municipal corporation until the case of Pelaez vs Auditor
General was decided. EO 353 creating the Municipality of San Andres was not among those questioned in Pelaez
case. San Andres, its existence, was questioned in 1989.
ISSUE: WON the Municipality of San Andres was validly created.
RULING:
Yes, de jure municipal corporation.
SC had a different perspective on this, it applied a certain provision of narrative, it made an observation of the fact
rd
that in the appendix or ordinance to the 1987 Constitution, one of the 12 municipalities composing the 3 district
of Quezon, Municipality of San Andres was one of those municipalities. SC said, it is not only de facto, if you are
apply the case of Jimenez but declared it de jure by subsequent recognition. The SC added that the defective
incorporation may be obviated and a de facto rendered de jure by subsequent legislative recognition or validation.
Here, the SC observed that it is not even just legislative but constitutional recognition.
Sultan Osop Camid vs Office of the President

FACTS:
The Municipality of Andong was created in 1964, created a year earlier when Pelaez vs Auditor General was
decided by the SC. It was among the municipalities declared invalidly created in the case of Pelaez vs Auditor
General but continued to operate as a LGU. The municipality of Andong invoked Sec. 442 (d) of the LGC and they a
attached certificate showing the exercise of corporate powers after Pelaez case was decided in 1965.
ISSUE: WON the Municipality of Andong was validly created.
RULING:
No.
1. Section 442(d) of the LGC does not sanction the recognition of just any municipality;
2. Only those that can prove continued exercise of corporate powers can be covered;
3. Incidentally, the SC, being not a trier of facts, cannot ascertain the truthfulness of
petitioner’s allegation of continued exercise of corporate powers. (there should have been a
trial court that ascertained it.)
7. Methods of challenging existence of municipal corporations

MANNER OF CHALLENGING THE EXISTENCE OF A DE FACTO MUNICIPAL CORPORATION
GR: only through direct attack in a quo warranto proceeding by the STATE.
EXC: if it will not qualify as a de facto municipal corporation, then it can be attacked collaterally
7
by ANY PERSON.
Page
ILLUSTRATION
In the earlier case like the case of Andong, for example Andong would like to expropriate a
parcel of land and therefore files a complaint for expropriation before the RTC and make the
private owner the defendant of course, then the defendant can question the status of Andong
because Andong is not considered even as a de facto municipal corp. So that is by way of
collateral challenge because that is mentioned only by a defendant in an answer questioning
the status of Andong.
C. Overview of Philippine Local Government System
1. The Unitary vs. the Federal Forms of Government
LGU IN RELATION TO UNITARY VS. FEDERAL FORMS OF GOVERNMENT

Unitary government Federal government
local governments derived both their the federal/central government is the creation
(1) powers and actually of the local governments.
(2) existence from the central government.
Residual powers vested in the National Residual powers vested in the local
government government
RESIDUAL POWER
power retained by a governmental authority after certain powershave been delegated to other
authorities.
LARGO:
when an organic act, either the Constitution or a statute distributes power of the government,
it cannot anticipate all powers- specific or general and allocate/assign it to a known agency. It is
possible that there is a power of government, settled that it is a power of the government, but
the organic act is unable to allocate/assign it to a particular agency.
WHO CAN EXERCISE RESIDUAL POWERS

The residual power is vested in the President of the Philippines.
So if the power is recognized and understood as a power that can be exercised by the national
government but it has not been allocated or assigned to a particular branch by the Constitution
or any law for that matter then the President can exercise the power under its residual power.
RESIDUAL POWER IN RELATION TO LGU

The residual power is vested in the National government.
2. Philippine Local Government Systems and the concepts of Local Autonomy,
Decentralization, Devolution, and Deconcentration
LOCAL AUTONOMY
Article II, Section 25, Consti. The State shall ensure the autonomy of local governments.
8
Article X, Section 2, Consti. The territorial and political subdivisions shall enjoy local autonomy.
Page
RA, 7160 Section 2. Declaration of Policy. -

(a) It is hereby declared the policy of the State that the territorial and political subdivisions of the State shall enjoy
genuine and meaningful local autonomy to enable them to attain their fullest development as self-reliant
communities and make them more effective partners in the attainment of national goals. Toward this end, the
State shall provide for a more responsive and accountable local government structure instituted through a system
of decentralization whereby local government units shall be given more powers, authority, responsibilities, and
resources. The process of decentralization shall proceed from the national government to the local government
units.
(b) It is also the policy of the State to ensure the accountability of local government units through the institution of
effective mechanisms of recall, initiative and referendum.
(c) It is likewise the policy of the State to require all national agencies and offices to conduct periodic consultations
with appropriate local government units, nongovernmental and people's organizations, and other concerned
sectors of the community before any project or program is implemented in their respective jurisdictions.
RA 7160, Section 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
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;
(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 an extension of adequate technical and material assistance to less developed and deserving
local government units;
(l) The participation of the private sector in local governance, particularly in the delivery of basic services, shall be
encouraged to ensure the viability of local autonomy as an alternative strategy for sustainable development; and
(m) The national government shall ensure that decentralization contributes to the continuing improvement of the
performance of local government units and the quality of community life.
DEFINITION
Local autonomy is either decentralization of administration or decentralization of power-
(Limbonas vs. Mangelin). But in Pimentel vs. Aguirre (2000), SC clarified: it is only administrative
power over local affairs that is delegated to political subdivisions.
9
Page
Limbona vs. Mangelin 170 SCRA 786 (1989)

“Now, autonomy is either decentralization of administration or decentralization of power. There is
decentralization of administration when 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, on the other hand, involves an abdication of political power in the favor of
local governments units declare 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.”
DECENTRALIZATION OF ADMINISTRATION
There is decentralization of administration when the central government delegates
administrative powers to political subdivisions in order to broaden the base of government; to
make the local governments responsive and accountable.
DECENTRALIZATION OF POWER
Decentralization of power involves the abdication of power and the autonomous government is
free to chart its own destiny and shape its future with minimum intervention. The local
government unit here is accountable not to the central government but to its constituency.
DECENTRALIZATION
Decentralization is a system whereby local government units shall be given more powers,
authorities, responsibilities and resources and this decentralization shall proceed, according to
Sec. 2 of LGC, from the national government top the local government units.
DEVOLUTION
The process through which decentralization is implemented.
It is an act by which the national government confers power and authority, administrative,
upon various local government units to perform specific functions and responsibilities.
That is a specific process in order to implement the system of decentralization. In the same
section, there is a description of how it is to be done, at least it says it shall include the transfer
to local government units of the records, equipments, other assets, personnel of national
agencies, offices and corresponding powers, functions and responsibilities.
RA 7160, SEC. 17 4 (e) xxx
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.
10
DECONCENTRATION
Transfer of powers from the national government head offices to regional offices .
Page
RA 7160, Section 528. Deconcentration of Requisite Authority and Power. - The national government shall, six (6)
months after the effectivity of this Code, effect the deconcentration of requisite authority and power to the
appropriate regional offices or field offices of national agencies or offices whose major functions are not devolved
to local government units.
Tano vs. Socrates 278 SCRA 154

“Finally, the centerpiece of LGC is the system of decentralization as expressly mandated by the Constitution.
Indispensable thereto is devolution and the LGC expressly provides that “[a]ny 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,” 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.
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.”
Magtajas vs. Pryce Properties

In the case of Magtajas, the Sanggunian Panglunsod of CDO passed an ordinance prohibiting the operation of
PAGCOR. At first, it prohibited owners of commercial buildings to allow PAGCOR to enter into a contract of lease.
Subsequently, there's another ordinance passed prohibiting the operation of PAGCOR.
The SC said, the LGU cannot do that because PAGCOR is a creation of a law and therefore it is allowed by Congress.
A LGU cannot undo the intent of Congress. The SC continued and said that municipal governments are only agents
of the national government. This is an affirmation of the declaration that the Philippines is still a unitary set-up; a
unitary system of government.
San Juan vs. Civil Service Commission

FACTS:
At that time the Provincial Budget Officer was to be appointed by the Secretary of Budget and Management but
only from the names nominated by the governor. The provincial governor nominated somebody who was not an
accountant, take note that one of the qualifications of a Budget Officer is that you must be a CPA, therefore not
qualified. So the Secretary appointed another who is qualified. The governor complained arguing that his authority
was by passed, the Secretary should appoint only from the nominees that he will provide. The CSC affirmed the
appointment made by the Secretary of Budget and Management then it reached the SC.
ISSUE: WON the appointment made by the Secretary was valid.
RULING:
No.
According to the SC: 'We are to obey the clear mandate of local autonomy. Where a law is capable of two
interpretations, one in favor of centralized power in Malacanang and the other beneficial to local autonomy, the
scales must be weighed in favor of autonomy.' By the way, this is not an issue of who can exercise the power
because the law is clear here. The issue only was whether or not the process of nomination to be done by the
provincial governor was merely directory or mandatory. So if you interpret that it is directory, then it is not
following the mandate of local autonomy. But if you interpret it as mandatory then that is to give spirit to the
concept of local autonomy. According to the Court, if you can have two interpretation- one against local autonomy
and one in favor of local autonomy, then local autonomy in the application should be applied or used.
Laguna Lake Development Authority v. Court of Appeals, G.R. Nos. 120865-71, December 7, 1995.
Laguna is a province so there were several municipalities. In 1990s, as observed by LLDA, there were indiscriminate
issuance of permits for fish pens/fish cage therefore resulting to damage in marine or natural resources along the
bay of Laguna. So LLDA issued a cease and desist order. The LGUs complained arguing that they have the power
11
issue permits for fish pens.

The SC recognized such power but held that the same was exercised for revenue raising. In the case of LLDA, the
Page
power exercised by it is police power. Police power is the most pervasive, less limitable kind of power. And
besides, it is a delegated power on the part of LGU and so we will uphold the power of LLDA. There is still a tension
between the central government and the local government because LLDA is a creation of Congress. In this case,
the charter of LLDA was upheld.
D. Local Governments in the Philippines
1. Territorial and Political Subdivisions: Provinces, Cities, Municipalities, Barangays

Regular LGUs Autonomous Regions Special LGUs
1. Provinces 1. ARMM 1. Special
2. Cities Metropolitan
3. Municipalities political subdivision
4. Barangays (Art. X, Sec. 11,
Consti.)
NB: not actually LGUs in the
strict sense, that’s why they
are referred to as special.
Art. X, Section 1, Consti. 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.
NB: Art. X, Sec. 1, Consti., does not create LGUs, Congress still has to create them.
IMPORTANCE OF THE ENUMERATION OF THE TERRITORIAL AND POLITICAL SUBDIVISIONS

It simply ensures that in the Philippines, there shall only be provinces, cities, municipalities and
barangays.
Take note, of the Bangsamoro Juridical entity. This ensures that no other state (associated
state) or political subdivision can be created other than that authorized by the Constitution.
CITIES: DIFFERENT KINDS

Kind Relation to the Province
Component City 1. the inhabitants can vote for provincial candidates and
can run for provincial elective post and they are
under the supervisory power of a province.
2. Ordinance will be reviewed by the Provincial Board
Independent Component City 1. a component city but what makes it independent is
because of its charter- it's charter prohibits the voters
from voting provincial elective post. Because of that,
it will be outside the supervisory power of the
province regardless of the income.
2. Ordinance will not be reviewed by the Provincial
Board
Highly Urbanized City It is independent from the province by reason of its status.
It is so declared as a highly urbanized city and therefore it
is outside the supervisory power of the province.
12
NB: the classes (1st class, 2nd class, 3rd class, etc) has no bearing at all to its juridical personality
(exercise of powers), it only refers to income.
Page
Art. X, Section 12, Consti. 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, whose charters contain no such prohibition, shall not be deprived of
their right to vote for elective provincial officials.
RA 7160, SEC. 451. Cities, Classified. - A city may either be component or highly urbanized: Provided, however,
That the criteria established in this Code shall not affect the classification and corporate status of existing cities.
Independent component cities are those component cities whose charters prohibit their voters from voting for
provincial elective officials. Independent component cities shall be independent of the province.
RA 7160, SEC. 452. Highly Urbanized Cities. - (a) Cities with a minimum population of two hundred thousand
(200,000) inhabitants, as certified by the National Statistics Office, and with the latest annual income of at least
Fifty Million Pesos (P=50,000,000.00) based on 1991 constant prices, as certified by the city treasurer, shall be
classified as highly urbanized cities.
(b) Cities which do not meet the above requirements shall be considered component cities of the province in
which they are geographically located. If a component city is located within the boundaries of two (2) or more
provinces, such city shall be considered a component of the province of which it used to be a municipality.
(c) Qualified voters of highly urbanized cities shall remain excluded from voting for elective provincial officials.
Unless otherwise provided in the Constitution or this Code, qualified voters of independent component cities shall
be governed by their respective charters, as amended, on the participation of voters in provincial elections.
Qualified voters of cities who acquired the right to vote for elective provincial officials prior to the classification of
said cities as highly-urbanized after the ratification of the Constitution and before the effectivity of this Code, shall
continue to exercise such right.
Abella vs. Ormoc City 201 SCRA 253, (1991)

FACTS:
The charter of the City of Ormoc prohibits its residents from voting elective officials. Thus it is an independent
component city. A candidate resident of Ormoc City ran for provincial post. It was questioned because under their
charter they cannot elect provincial officials so it follows that they cannot run for provincial posts too. He argued
that what was prohibited was electing only, not running.
ISSUE: WON the candidate can run for provincial post.
RULING:
No.
The prohibition connotes 2: from voting for provincial candidates and obviously for running for provincial elective
post.
2. Autonomous Regions
3. Special Metropolitan Political Subdivisions

Art. X, Section 11, Consti. The Congress may, by law, create special metropolitan political subdivisions, subject to a
plebiscite as set forth in Section 10 hereof. The component cities and municipalities shall retain their basic
autonomy and shall be entitled to their own local executive and legislative assemblies. The jurisdiction of the
metropolitan authority that will thereby be created shall be limited to basic services requiring coordination.
NB:
They are similar to the manner we create regular political subdivisions- also through Congress
and there shall likewise plebiscite. But the difference is the component cities and municipalities
shall retain their basic autonomy. The jurisdiction is limited only to basic services requiring
coordination.
13
MMDA vs. Bel-Air G.R. No. 135962, March 27, 2000

SC said, MMDA is not a LGU. Just the same, it can not say that it is a special metropolitan political subdivision (for
Page
academic discussion purposes) because there was no plebiscite at the time when it was created. And the law
requires plebiscite when you create a special metropolitan political subdivision.
E. Loose Federation of LGUs and Regional Development Councils
Art. X, Section 13, Consti. Local government units may group themselves, consolidate or coordinate their efforts, services, and
resources for purposes commonly beneficial to them in accordance with law.
SEC. 33. Cooperative Undertakings Among Local Government Units. - Local government units may, through appropriate
ordinances, group themselves, consolidate, or coordinate their efforts, services, and resources for purposes commonly
beneficial to them. In support of such undertakings, the local government units involved may, upon approval by the sanggunian
concerned after a public hearing conducted for the purpose, contribute funds, real estate, equipment, and other kinds of
property and appoint or assign personnel under such terms and conditions as may be agreed upon by the participating local
units through Memoranda of Agreement.
Art. X, Section 14, Consti. 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 regions 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.
PART II: THE LOCAL GOVERNMENT CODE OF 1991
1. Constitutional Mandate
Art. X, Section 3, Consti. 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 the local units.
2. Sources of the Local Government Code of 1991 (Codified laws)

a. LGC of 1983;
b. Local Tax Code PD 201;
c. The Real Property Tax Code;
d. Barangay Justice Law PD 1508;
e. Katarungang Pambarangay Law.
3. Scope of Application
RA 7160, 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.
RA 7160, Section 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.
NB:
1. it will apply to provinces, cities, municipalities, barangays and other political subdivisions;
2. it can also apply to officials and offices in the national government in so far as they are
mentioned in the Code.
14
3. this will apply to autonomous regions until it has passed its own organic act.
Page
EFFECT/S OF THE EFFECTIVITY OF THE LGC UPON TAX ORDINANCES OR REVENUE MEASURES
ENACTED BEFORE THE LGC OF 1991.
RA 7160, SEC. 529. Tax Ordinances or Revenue Measures. - All existing tax ordinances or revenue measures of
local government units shall continue to be in force and effect after the effectivity of this Code unless amended by
the sanggunian concerned, or inconsistent with, or in violation of, the provisions of this Code.
EFFECT/S OF THE EFFECTIVITY OF THE LGC UPON LAWS INCONSISTENT WITH THE LGC
RA 7160, SEC. 534. Repealing Clause. –
(a) Batas Pambansa Blg. 337, otherwise known as the Local Government Code, Executive Order No. 112 (1987),
and Executive Order No. 319 (1988) are hereby repealed.
(b) Presidential Decrees Nos. 684, 1191, 1508 and such other decrees, orders, instructions, memoranda and
issuances related to or concerning the barangay are hereby repealed.
(c) The provisions of Sections 2, 3, and 4 of Republic Act No. 1939 regarding hospital fund; Section 3, a (3) and b
(2) of Republic Act No. 5447 regarding the Special Education Fund; Presidential Decree No. 144 as amended by
Presidential Decrees Nos. 559 and 1741; Presidential Decree No. 231 as amended; Presidential Decree No. 436 as
amended by Presidential Decree No. 558; and Presidential Decrees Nos. 381, 436, 464, 477, 526, 632, 752, and
1136 are hereby repealed and rendered of no force and effect.
(d) Presidential Decree No. 1594 is hereby repealed insofar as it governs locally-funded projects.
(e) The following provisions are hereby repealed or amended insofar as they are inconsistent with the provisions
of this Code: Sections 2, 16, and 29 of Presidential Decree No. 704; Section 12 of Presidential Decree No. 87, as
amended; Sections 52, 53, 66, 67, 68, 69, 70, 71, 72, 73, and 74 of Presidential Decree No. 463, as amended; and
Section 16 of Presidential Decree No. 972, as amended, and
(f) All general and special laws, acts, city charters, decrees, executive orders, proclamations and administrative
regulations, or part or parts thereof which are inconsistent with any of the provisions of this Code are hereby
repealed or modified accordingly.
NB: Sec. 534 (f) cf. with the rule on implied repeal.
4. Rules of Interpretation
RA 7160, 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.
5. Effectivity
RA 7160, Section 536. Effectivity Clause. This code shall take effect on January first, nineteen hundred ninety-two,
15
unless otherwise provided herein, after its complete publication in at least one newspaper of general circulation.
Page
PART III: CREATION, CONVERSION, DIVISION, MERGER, SUBSTANTIAL CHANGE OF BOUNDARY

OF LOCAL GOVERNMENT UNITS, AND ABOLITION
A. Regular Political Sibdivisions (Provinces, Cities, Municipalities, Barangays)
1. Creation and Conversion
a. General Requirements: Law, Plebiscite, Compliance with Criteria on income, land, &
population
LEGAL FRAMEWORK
Compliance with the

Law criteria on income, Plebiscite
land and/or population
LARGO:
Pay attention to the words and/or coz you might think that it means compliance with the
criteria of income, land and population. No. There will be an instance in a particular LGU where
the requirement is income + land or income + population. Like in a case of province. It was
discussed very clearly in the case of Aquino III vs. COMELEC that the requirement is not to
comply with all 3. In the case of a province, you only comply with income- indispensable then
you comply with either land or population. Take note of that.
CONSTITUTIONAL PROVISIONS
Art. X, Section 10, Consti. No province, city, municipality, or barangay may be created, divided, merged, abolished,
or its boundary substantially altered, except in accordance with the criteria established in the local government
code and subject to approval by a majority of the votes cast in a plebiscite in the political units directly affected.
Art. X, Section 11, Consti. The Congress may, by law, create special metropolitan political subdivisions, subject to a
plebiscite as set forth in Section 10 hereof. The component cities and municipalities shall retain their basic
autonomy and shall be entitled to their own local executive and legislative assemblies. The jurisdiction of the
metropolitan authority that will thereby be created shall be limited to basic services requiring coordination.
CRITERIA FOR CREATION AND CONVERSION

RA 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.
MEANING OF THE PHRASE “by law enacted by Congress”

This means that the power is solely vested in Congress. Take note of some instances where
16
legislative power is vested in the President (or when the Congress is not operating), in that case
even if the President has legislative powers, he cannot create, divide, merge, abolish or alter
Page
boundaries of LGUs. The same is solely vested in Congress.

RA 7160, 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 commensurate with the size of its population, as expected of the local
(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 National Statistics Office
(NSO), and the Lands Management Bureau (LMB) of the Department of Environment and Natural
Resources(DENR).
RA 7160, 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.
WHO SHALL PARTICIPATE IN THE PLEBISCITE?

TAN vs. COMELEC
Whenever a province is created, divided or merged and there is substantial alteration of the boundaries, “the
approval of a majority of votes in the plebiscite in the unit or units affected” must first be obtained. The creation of
the proposed new province of Negros del Norte will necessarily result in the division and alteration of the existing
boundaries of Negros Occidental (parent province).
Plain and simple logic will demonstrate that two political units would be affected. The first would be the parent
province of Negros Occidental because its boundaries would be substantially altered. The other affected entity
would be composed of those in the area subtracted from the mother province to constitute the proposed province
of Negros del Norte.
NB:
Reason why all the affected units should participate:
1. economic dislocation
2. reduction of territory
JURISPRUDENCE
League of Cities vs. Comelec [2008]
Sec. 10, Art. X, 1987 Const.: No province, city, municipality, or barangay shall 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 majority of the votes cast in a plebiscite in the political units directly
affected.
The Constitution is clear. The creation of local government units must follow the criteria established in the Local
Government Code and not in any other law. There is only one Local Government Code. Congress cannot write
such criteria in any other law, like the Cityhood Laws. (R.A. No. 9009 [June 30, 2001] amended Sec. 450 of LGC,
increasing income requirement for a city to P 100 M.)
No other law, not even the charter of the city, can govern such creation. The clear intent of the Constitution is to
insure that the creation of cities and other political units must follow the same uniform, non-discriminatory
criteria found solely in the Local Government Code. Any derogation or deviation from the criteria prescribed in
17
the Local Government Code violates Section 10, Article X.

Page
2008 League of Cities case, Reversed on Dec. 21, 2009

Velasco, Jr.:
These criteria need not be embodied in the local government code, albeit this code is the ideal repository to
ensure, as much as possible, the element of uniformity. Congress can even, after making a codification, enact an
amendatory law, adding to the existing layers of indicators earlier codified, just as efficaciously as it may reduce
the same.
The amendatory RA 9009 upped the already codified income requirement from P 20M to P100M…The passage of
amendatory laws is no different from the enactment of laws, i.e., the cityhood laws specifically exempting a
particular political subdivision from the criteria earlier mentioned. Congress, in enacting the exempting law/s,
effectively decreased the already codified indicators.
AQUINO vs. COMELEC

FACTS:
Camarines Sur originally has 4 legislative districts. By virtue of RA 9716, a new legislative district was created by
st nd st
reapportioning the former 1 and 2 districts. The population of the new 1 district is 176,383. The population of
nd
the new 2 district is 276,777.
ISSUE: WON the creation of a new legislative district with a population less than 250,000 is valid.
RULING:
There is no specific provision in the Constitution that fixes a 250,000 minimum population that must compose a
legislative district.
As already mentioned, the petitioners rely on the second sentence of Section 5(3), Article VI of the 1987
Constitution, coupled with what they perceive to be the intent of the framers of the Constitution to adopt a
minimum population of 250,000 for each legislative district.
The second sentence of Section 5(3), Article VI of the Constitution, succinctly provides: “Each city with a
population of at least two hundred fifty thousand, or each province, shall have at least one representative.”
The provision draws a plain and clear distinction between the entitlement of a city to a district on one hand,
and the entitlement of a province to a district on the other. For while a province is entitled to at least a
representative, with nothing mentioned about population, a city must first meet a population minimum of 250,000
in order to be similarly entitled.
The use by the subject provision of a comma to separate the phrase “each city with a population of at least two
hundred fifty thousand” from the phrase “or each province” point to no other conclusion than that the 250,000
minimum population is only required for a city, but not for a province.
PROVINCE OF NORTH COTABATO vs. GRP

The concept of association is not recognized under the present Constitution
No province, city, or municipality, not even the ARMM, is recognized under our laws as having an "associative"
relationship with the national government. Indeed, the concept implies powers that go beyond anything ever
granted by the Constitution to any local or regional government. It also implies the recognition of theassociated
entity as a state. The Constitution, however, does not contemplate any state in this jurisdiction other than the
Philippine State, much less does it provide for a transitory status that aims to prepare any part of Philippine
territory for independence.
Even the mere concept animating many of the MOA-AD's provisions, therefore, already requires for its validity the
amendment of constitutional provisions, specifically the following provisions of Article X:
SECTION 1. The territorial and political subdivisions of the Republic of the Philippines are theprovinces, cities,
municipalities, and barangays. There shall be autonomous regions in Muslim Mindanao and the Cordilleras as
hereinafter provided.
SECTION 15. There shall be created autonomous regions in Muslim Mindanao and in the Cordilleras consisting of
provinces, cities, municipalities, and geographical areas sharing common and distinctive historical and cultural
heritage, economic and social structures, and other relevant characteristics within the framework of this
Constitution and the national sovereignty as well as territorial integrity of the Republic of the Philippines.
18
b. Specific Requirements: Income, Land, and Population Requirements

LGU Income Land Area Population
Page
Province 20 M 2, 000 sq. km. 250 K

City 100 M 100 sq. km. 150 K
(Component/independent
Component City)
Highly Urbanized City 50 M 200 K
Municipality 2.5 M 50 sq. km. 25 K
Barangay 2K (except: 5K in
MM, metropolitan
political subdivisions
or in HUCs)
A BARANGAY MAY BE CREATED THROUGH AN ORDINANCE (or by law)

RA 7160, SEC. 385. Manner of Creation. - A barangay may be created, divided, merged, abolished, or its boundary
substantially altered, by law or by an ordinance of the sangguniang panlalawigan or sangguniang panlungsod,
subject to approval by a majority of the votes cast in a plebiscite to be conducted by the Comelec in the local
government unit or units directly affected within such period of time as may be determined by the law or
ordinance creating said barangay. In the case of the creation of barangays by the sangguniang panlalawigan, the
recommendation of the sangguniang bayan concerned shall be necessary.
RA 7160, SEC. 386. Requisites for Creation. - (a) A barangay maybe created out of a contiguous territory which
has a population of at least two thousand (2,000) inhabitants as certified by the National Statistics Office except
in cities and municipalities within Metro Manila and other metropolitan political subdivisions or in highly
urbanized cities where such territory shall have a certified population of at least five thousand (5,000)
inhabitants: Provided, That the creation thereof shall not reduce the population of the original barangay or
barangays to less than the minimum requirement prescribed herein.
To enhance the delivery of basic services in the indigenous cultural communities, barangays may be created in
such communities by an Act of Congress, notwithstanding the above requirement.
(b) The territorial jurisdiction of the new barangay shall be properly identified by metes and bounds or by more or
less permanent natural boundaries. The territory need not be contiguous if it comprises two (2) or more islands.
(c) The governor or city mayor may prepare a consolidation plan for barangays, based on the criteria prescribed in
this Section, within his territorial jurisdiction. The plan shall be submitted to the sangguniang panlalawigan or
sangguniang panlungsod concerned for appropriate action. In the case of municipalities within the Metropolitan
Manila area and other metropolitan political subdivisions, the barangay consolidation plan shall be prepared and
approved by the sangguniang bayan concerned.
NB:
If you read Section 385, interestingly, it does not mention of law that should be enacted by
Congress. It simply mentioned of law. And so any law therefore for that matter - whether the
Congress during ordinary situations or the President during extra-ordinary situations.
MUNICIPALITY
RA 7160, SEC. 441. Manner of Creation. - A municipality may be created, divided, merged, abolished, or its
boundary substantially altered only by an Act of Congress and subject to the approval by a majority of the votes
cast in a plebiscite to be conducted by the Comelec in the local government unit or units directly affected. Except
as may otherwise be provided in the said Act, the plebiscite shall be held within one hundred twenty (120) days
from the date of its effectivity.
RA 7160, SEC. 442. Requisites for Creation. - (a) A municipality may be created if it has an average annual income,
as certified by the provincial treasurer, of at least Two million five hundred thousand pesos (P=2,500,000.00) for
the last two (2) consecutive years based on the 1991 constant prices; a population of at least twenty-five
19
thousand (25,000) inhabitants as certified by the National Statistics Office; and a contiguous territory of at least
fifty (50) square kilometers as certified by the Lands Management Bureau: Provided, That the creation thereof
Page
shall not reduce the land area, population or income of the original municipality or municipalities at the time of
said creation to less than the minimum requirements prescribed herein.
(b) The territorial jurisdiction of a newly-created municipality shall be properly identified by metes and bounds.
The requirement on land area shall not apply where the municipality proposed to be created is composed of one
(1) or more islands. The territory need not be contiguous if it comprises two (2) or more islands.
(c) The average annual income shall include the income accruing to the general fund of the municipality
concerned, exclusive of special funds, transfers and non-recurring income.
(d) Municipalities existing as of the date of the effectivity of this Code shall continue to exist and operate as such.
Existing municipal districts organized pursuant to presidential issuances or executive orders and which have their
respective set of elective municipal officials holding office at the time of the effectivity of this Code shall
henceforth be considered as regular municipalities.
CITY
RA 7160, SEC. 449. Manner of Creation. - A city may be created, divided, merged, abolished, or its boundary
substantially altered, only by an Act of Congress, and subject to approval by a majority of the votes cast in a
plebiscite to be conducted by the Comelec in the local government unit or units directly affected. Except as may
otherwise be provided in such Act, the plebiscite shall be held within one hundred twenty (120) days from the date
of its effectivity.
RA 7160, SEC. 450. Requisites for Creation. - (a) A municipality or a cluster of barangays may be converted into a
component city if it has an average annual income, as certified by the Department of Finance, of at least Twenty
million pesos (P20,000,000.00) for the last two (2) consecutive years based on 1991 constant prices, and if it has
either of the following requisites:
(i) a contiguous territory of at least one hundred (100) square kilometers, as certified by the Lands Management
Bureau; or,
(ii) a population of not less than one hundred fifty thousand (150,000) inhabitants, as certified by the National
Statistics Office: Provided, That, the creation thereof shall not reduce the land area, population, and income of the
original unit or units at the time of said creation to less than the minimum requirements prescribed herein.
(b) The territorial jurisdiction of a newly-created city shall be properly identified by metes and bounds. The
requirement on land area shall not apply where the city proposed to be created is composed of one (1) or more
islands. The territory need not be contiguous if it comprises two (2) or more islands.
(c) The average annual income shall include the income accruing to the general fund, exclusive of special funds,
transfers, and non-recurring income.
PROVINCE
RA 7160, SEC. 460. Manner of Creation. - A province may be created, divided, merged, abolished, or its boundary
substantially altered, only by an Act of Congress and subject to approval by a majority of the votes cast in a
plebiscite to be conducted by the Comelec in the local government unit or units directly affected. The plebiscite
shall be held within one hundred twenty (120) days from the date of effectivity of said Act, unless otherwise
provided therein.
RA 7160, SEC. 461. Requisites for Creation. - (a) A province may be created if it has an average annual income, as
certified by the Department of Finance, of not less than Twenty million pesos (P=20,000,000.00) based on 1991
constant prices and either of the following requisites:
(i) a contiguous territory of at least two thousand (2,000) square kilometers, as certified by the Lands
Management Bureau; or,
(ii) a population of not less than two hundred fifty thousand (250,000) inhabitants as certified by the National
Statistics Office:
Provided, That, the creation thereof shall not reduce the land area, population, and income of the original unit or
units at the time of said creation to less than the minimum requirements prescribed herein.
(b) The territory need not be contiguous if it comprises two (2) or more islands or is separated by a chartered city
or cities which do not contribute to the income of the province.
(c) The average annual income shall include the income accruing to the general fund, exclusive of special funds,
20
trust funds, transfers, and non-recurring income.

Page
LAND AREA
RA 7160, Sec. 7. xxx
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).
NAVARRO vs. EXECUTIVE SECRETARY

FACTS:
The mother province of Surigao del Norte was created and established under R.A. No. 2786 on June 19, 1960. The
province is composed of three main groups of islands: (1) the Mainland and Surigao City; (2) Siargao Island and
Bucas Grande; and (3) Dinagat Island. There was move to convert Dinagat Island into a province. A special census
was conducted which yielded a population count of 371,576. The NSO, however, did not certify the result of the
special census. The Bureau of Local Government Finance certified that the average annual income of the proposed
Province of Dinagat Islands for calendar year 2002 to 2003 based on the 1991 constant prices
was P82,696,433.23. The land area of the proposed province is 802.12 square kilometers.
ISSUE: WON an island is exempt from the 2K sq.km. area requirement for a province.
RULING:
No. Art. 9 of the IRR is null and void.
The territorial requirement in the Local Government Code is adopted in the Rules and Regulations Implementing
the Local Government Code of 1991 (IRR), thus:
ART. 9. Provinces.—(a) Requisites for creation—A province shall not be created unless the following requisites on
income and either population or land area are present:
(1) Income — An average annual income of not less than Twenty Million Pesos (P20,000,000.00) for the
immediately preceding two (2) consecutive years based on 1991 constant prices, as certified by DOF. The average
annual income shall include the income accruing to the general fund, exclusive of special funds, special accounts,
transfers, and nonrecurring income; and
(2) Population or land area - Population which shall not be less than two hundred fifty thousand (250,000)
inhabitants, as certified by National Statistics Office; or land area which must be contiguous with an area of at
least two thousand (2,000) square kilometers, as certified by LMB. The territory need not be contiguous if it
comprises two (2) or more islands or is separated by a chartered city or cities which do not contribute to the
income of the province. The land area requirement shall not apply where the proposed province is composed of
one (1) or more islands. The territorial jurisdiction of a province sought to be created shall be properly identified
by metes and bounds.
However, the IRR went beyond the criteria prescribed by Section 461 of the Local Government Code when it
added the italicized portion above stating that “[t]he land area requirement shall not apply where the proposed
province is composed of one (1) or more islands.” Nowhere in the Local Government Code is the said provision
stated or implied. Under Section 461 of the Local Government Code, the only instance when the territorial or land
area requirement need not be complied with is when there is already compliance with the population
requirement. The Constitution requires that the criteria for the creation of a province, including any exemption
from such criteria, must all be written in the Local Government Code. There is no dispute that in case of
discrepancy between the basic law and the rules and regulations implementing the said law, the basic law prevails,
because the rules and regulations cannot go beyond the terms and provisions of the basic law.
Hence, the Court holds that the provision in Sec. 2, Art. 9 of the IRR stating that “[t]he land area requirement shall
not apply where the proposed province is composed of one (1) or more islands” is null and void.
GR: must comply with the requirement.

EXC: island. Then it must be contiguous unless two or more islands are separated by cities or
chartered cities which do not contribute to the income of the province. Of course, obviously if
these are islands, then they separated by waters then they cannot comply with the
requirement of contiguity.
21
Page
BOUNDARY
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).
MARIANO vs. COMELEC

FACTS:
This involved the then municipality of Mandaluyong. When it was converted into a city, the then municipality of
Mandaluyong was involved also in a boundary dispute with a neighboring municipality. Of course the charter of
the municipality described the metes and bounds of that municipality. But when a law was created establishing the
city, the law failed to state the metes and bounds (no technical description). In the law creating the municipality,
there was a technical description of the property, but when a law was passed creating the city, there was no
technical description. It clearly said that the territory of the city of Mandaluyong shall be that territory so specified
in the law creating the municipality of Mandaluyong.
ISSUE: WON the creation of the City of Mandaluyong was valid despite the absence of technical description.
RULING:
According to the SC, it does not matter even if there was no technical description because the true test is whether
or not the description of boundary will cause territorial confusion. And if that is the only objective of the law for
requiring technical description and it will be accomplished by the statement that the territory of the City of
Mandaluyong shall be that territory described in the law creating the municipality, then there will be no territorial
confusion.
Apart, of course, from also saying that it was excusable on the part of Congress for not specifying with precision
the technical description there because that LGU was then involved in a boundary dispute. The Congress therefore
was not trying to preempt the result of the boundary dispute.
AGENCIES INVOLVED
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).
1. Department of Finance
2. National Statistics Office
3. Land Management Bureau of the DENR
NAVARRO vs. EXECUTIVE SECRETARY

FACTS:
The mother province of Surigao del Norte was created and established under R.A. No. 2786 on June 19, 1960. The
province is composed of three main groups of islands: (1) the Mainland and Surigao City; (2) Siargao Island and
Bucas Grande; and (3) Dinagat Island. There was move to convert Dinagat Island into a province. A special census
was conducted which yielded a population count of 371,576. The NSO, however, did not certify the result of the
special census. The Bureau of Local Government Finance certified that the average annual income of the proposed
Province of Dinagat Islands for calendar year 2002 to 2003 based on the 1991 constant prices
was P82,696,433.23. The land area of the proposed province is 802.12 square kilometers.
ISSUE: WON the census which was not certified by NSO was valid.
RULING:
22
NO.
Although the NSO representative to the Committee on Local Government deliberations dated November
Page
24, 2005 did not object to theresult of the provincial government’s special census, which was conducted with the
assistance of an NSO district census coordinator, it was agreed by the participants that the said result was not
certified by the NSO, which is the requirement of the Local Government Code.
INCOME
(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
INCOME REFERRED
The average annual income shall refer to income accruing to the general fund. So funds that are
special or those that belong to trust funds, transfers and other non-recurring income, they are
not included in computing the income for the purposes of complying with the criterion.
INTERNAL REVENUE ALLOTMENT: FORMS PART OF LGU’s Y

ALVAREZ vs. GUINGONA
“The practical side to development through a decentralized local government system certainly concerns
the matter of financial resources. With its broadened powers and increased responsibilities, a local government
unit must now operate on a much wider scale. More extensive operations, in turn, entail more expenses.
Understandably, the vesting of duty, responsibility and accountability in every local government unit is
accompanied with a provision for reasonably adequate resources to discharge its powers and effectively carry out
its functions. Availment of such resources is effectuated through the vesting in every local government unit of
(1) the right to create and broaden its own source of revenue; (2) the right to be allocated a just share in national
taxes, such share being in the form of internal revenue allotments (IRAs); and (3) the right to be given its equitable
share in the proceeds of the utilization and development of the national wealth, if any, within its territorial
boundaries.
xxx
The IRAs are items of income because they form part of the gross accretion of the funds of the local
government unit. The IRAs regularly and automatically accrue to the local treasury without need of any further
action on the part of the local government unit. They thus constitute income which the local government can
invariably rely upon as the source of much needed funds.”
cf. RA 9009, which raised the income requirement for conversion of municipalities to cities from
20 M to 100 M. It mentioned of “locally generated income.” So if that is locally generated
income, then IRA is not locally generated because that is a national income only given or
released automatically to the LGU.
LARGO:
The caveat is that RA 9009 is limited in its application. It does not apply to all creation of LGUs.
RA 9009 applies only to conversion from municipality to a city. Therefore, if it is a case of
creation of a local government unit which happens to be other than a city, then it is not covered
by RA 9009 and the IRA will form part in the computation of the income.
INCOME IS AN INDISPENSABLE REQUIREMENT

AQUINO III vs. COMELEC
Xxx Notably, the requirement of population is not an indispensable requirement, but is merely
an alternative addition to the indispensable income requirement. xxx
c. Procedure:
i. In the Creation Of LGU
23
PROVINCE
Page
IRR of RA 1760, ARTICLE 9. Provinces xxx

(b) Procedure for creation —
(1) Petition — Interested municipalities or component shall submit the petition, in the form of a resolution, of
their respective sanggunians requesting the creation of a new city to the Congress, and furnish copies thereof to
the sangguniang panlalawigan of the original province or provinces.
(2) Comments on petition — The sangguniang panlalawigan of the original province or provinces shall submit to
the Congress its comments and recommendations on the petition for creation of the proposed province.
(3) Documents to support petition — The following documents shall be attached to the petition for creation:
(i)Certification by DOF that the average annual income of the proposed province meets the minimum income
requirement and that its creation will not reduce the income based on 1991 constant prices, of the original LGU or
LGUs to less than the prescribed minimum;
(ii) Certification by the NSO as to population of the proposed province and that its creation will not reduce the
population of the original LGUs to less than the prescribed minimum;
(iii) Certification by LMB that the land area of the proposed province meets the minimum land area requirement
and that its creation will not reduce the land area of the original LGU or LGUs to less than the prescribed minimum;
(iv)Map of the original LGU or LGUs, indicating the areas to be created into a province. The map shall be
prepared by the provincial, city, or district engineer and shall clearly indicate the road network within the
proposed province; and
(v) Such other information that the petitioners may deem relevant for consideration in the petition.
All costs incurred in the production of the required documents shall be borne by the petitioning LGUs.
(4) Plebiscite —
(i) Upon the effectivity of the law creating a province, the COMELEC shall conduct a plebiscite in the LGU or
LGUs directly affected within one hundred twenty (120) days or within the period specified in the law.
(ii) The COMELEC shall conduct an intensive information campaign in the LGUs concerned at least twenty (20)
days prior to the plebiscite. For this purpose, the COMELEC may seek the assistance of national and local
government officials, mass media, NGOs, and other interested parties.
CITY
IRR of RA 1760, ARTICLE 11. Cities. xxx
(b) Procedure for creation —
(1) Petition — Interested municipalities or barangays shall submit the petition, in the form of a resolution, of their
respective sanggunians requesting the creation of a new city to the Congress, and furnish copies thereof to the
sangguniang panlalawigan or sangguniang panlungsod of the LGUs concerned.
(2) Comments on petition — The sangguniang panlalawigan or sangguniang panlungsod shall submit to the
Congress its comments and recommendations on the petition for creation of the city.
(i) Certification by DOF that the average annual income of the proposed city meets the minimum income
requirement and that its creation will not reduce the income based on 1991 constant prices, of the original LGU or
LGUs to less than the prescribed minimum;
(ii) Certification by NSO as to population of the proposed city and that its creation will not reduce the
population of the original LGUs to less than the prescribed minimum;
(iii) Certification by LMB that the land area of the proposed city meets the minimum land area requirement and
that its creation will not reduce the land area of the original LGU or LGUs to less than the prescribed minimum;
(iv) Map of the original LGU or LGUs, indicating the areas to be created into a city. The map shall be prepared by
the provincial, city, or district engineer as the case may be and shall clearly indicate the road network within the
proposed city;
(v) Certification by LMB that disposable and alienable public lands are available in the area to be created into a
city sufficient to meet its growing population and the following purposes:
º Government center site of not less than ten thousand (10,000) square meters which shall include the city
hall site and those of other government buildings;
º Market site of not less than ten thousand (10,000) square meters, located out of view of the city hall,
schools, plaza, and cemetery and near but not along a provincial road, railroad station, navigable river, or sea;
24
º Plaza or park of not less than ten thousand (10,000) square meters located preferably in front of the city
hall;
Page
º School site of not less than ten thousand (10,000) square meters, in well-drained location that conforms
with the requirements prescribed by public school authorities; and
º Cemetery site of not less than five thousand (5,000) square meters for every ten thousand (10,000)
population which conforms with the requirements prescribed by the health authorities;
(vi) Number and nature of existing and commercial establishments in the territory of the proposed city as
certified by NSO;
(vii) Sources of potable water supply for the inhabitants as certified by the Local Water Utilities Administration
(LWEI) or the Metropolitan Waterworks and Sewerage System (MWSS), as the case may be;
(viii) Facilities, plans, and site for sewerage, garbage and waste disposal as certified by the local engineer; and
(ix) Such other information that the petitioners may deem relevant for consideration in the petition. cda
(4) Plebiscite —
(i) Upon the effectivity of the law creating a city, the COMELEC shall conduct a plebiscite in the LGUs directly
affected within one hundred twenty (120) days or within the period specified in the law.
government officials, mass media, NGOs, and other interested parties.
MUNUCIPALITY
IRR of RA 1760, ARTICLE 13. Municipalities. Xxxx
(b)Procedure for creation —
(1) Petition — Interested barangays shall submit the petition, in the form of a resolution, of their respective
sanggunians requesting the creation of a new municipality to the Congress, and furnish copies thereof to the
sangguniang panlalawigan, sangguniang panlungsod, or sangguniang bayan of the LGUs concerned.
(2)Comments on petition — The sangguniang panlungsod or sangguniang bayan, together with the sangguniang
panlalawigan, shall submit to the Congress its comments and recommendations on the petition for creation of the
municipality.
(i)Certification by the provincial treasurer, in the case of municipalities and component cities, and the city
treasurer, in the case of highly-urbanized cities, that the average annual income of the proposed municipality
meets the minimum income requirement and that its creation will not reduce the income, based on 1991 constant
prices, of the original LGU or LGUs to less than the prescribed minimum;
(ii)Certification by NSO as to population of the proposed municipality and that its creation will not reduce the
population of the original LGU or LGUs to less than the prescribed minimum;
(iii) Certification by the LMB that the land area of the proposed municipality meets the minimum land area
requirement and that its creation will not reduce the land area of the original LGU or LGUs to less than the
prescribed minimum;
(iv) Map of the original LGU or LGUs, indicating the areas to be created into a municipality. The map shall be
prepared by the provincial, city, or district engineer as the case may be and shall clearly indicate the road network
within the proposed city; acd
(v) Certification by LMB that disposable and alienable public lands are available in the area to be created into a
municipality sufficient to meet its growing population and the following purposes:
º Government center site of not less than five thousand (5,000) square meters which shall include the
municipal hall site and those of other government buildings;
º Market site of not less than five thousand (5,000) square meters, located out of view of the municipal hall,
schools, plaza, and cemetery and near but not along a provincial road, railroad station, navigable river, or sea;
º Plaza or park of not less than five thousand (5,000) square meters located preferably in front of the
municipal hall;
º School site of not less than five thousand (5,000) square meters, in well-drained location that conforms
with the requirements prescribed by public school authorities; and
º Cemetery site of not less than five thousand (5,000) square meters for every ten thousand (10,000)
25
population which conforms with the requirements prescribed by health authorities.

(vi) Number and nature of existing industrial and commercial establishments in the territory of the proposed
Page
municipality as certified by NSO;

(vii) Sources of potable water supply for the inhabitants as certified by LWUA or MWSS, as the case may be;
(viii) Facilities, plans, and site for sewerage, garbage and waste disposal as certified by the local engineer; and
(ix) Such other information that the petitioners may deem relevant for consideration in the petition.
(4) Plebiscite —
(i) Upon the effectivity of the law creating a municipality, the COMELEC shall conduct a plebiscite in the LGUs
directly affected within one hundred twenty (120) days or within the period specified in the law.
government officials, mass media, NGOS, and other interested parties.
BARANGAY
IRR of RA 1760, ARTICLE 14. Barangays xxx
(e) Procedure for creation —
(1) Petition — A written petition of a majority of the registered voters residing in the area sought to be created or
resolutions of the sangguniang barangays desiring to be merged, as the case may be, shall be presented to the
sangguniang panlalawigan, upon recommendation of the sangguniang bayan concerned, or to the sangguniang
panlungsod, for appropriate action.
In the case of municipalities within MMA, a similar petition or resolution shall be presented to the Congress, upon
recommendation of the sangguniang bayan concerned.
(2)Documents to support petition — In addition to the petition or resolution, the following shall be submitted:
(i) Certification by NSO as to the population of the proposed barangay and that its creation will not reduce the
population of the original barangay or barangays to less than the prescribed minimum.
(ii) Map of the original barangay or barangays indicating the areas to be created into a new barangay and
technical description certified by LMB or city or municipal assessor, as the case may be.
(3) Comments on petition — The presiding officer of the sangguniang bayan shall require the sangguniang
barangay of the original barangay or barangays to submit their comments on the proposed creation within twenty
(20) days after receipt of said petition or resolution which shall serve as basis for recommending appropriate
action thereon to the sangguniang panlalawigan.
(4) Action on petition — The sangguniang panlalawigan or sangguniang panlungsod shall, within fifteen (15) days
from submission of the petition and other required supporting documents, take action granting or denying the
petition.
(i) The ordinance granting the petition creating a new barangay shall be approved by two-thirds (2/3) of all the
members of the sangguniang panlalawigan or sangguniang panlungsod. cda
The ordinance shall properly identify by metes and bounds or by natural boundaries, the territorial jurisdiction of
the new barangay. The ordinance shall likewise fix the date of the plebiscite to be conducted by the COMELEC in
the area or areas directly affected to ratify the creation of the new barangay.
(ii) A denial shall be in the form of a resolution stating clearly the facts and reasons for such denial.
(5) Submission of ordinance to the COMELEC — Within thirty (30) days before the plebiscite, the secretary to the
sangguniang panlalawigan or sangguniang panlungsod shall furnish the COMELEC with a signed official copy of the
ordinance creating the barangay.
(6) Conduct of information campaign — The COMELEC shall conduct an intensive information campaign in the
LGUs concerned at least ten (10) days prior to the plebiscite. For this purpose, the COMELEC may seek the
assistance of national and local government officials, mass media, NGOs, and other interested parties.
26
(7) Submission of plebiscite results — At least seven (7) days after the conduct of the plebiscite, the city or
municipality concerned shall submit the Certificates of Canvass of Votes Cast, Statement of Affirmative and
Page
Negative Votes, Abstentions Cast in every voting center as well as the provincial or city ordinance creating the
barangay to the COMELEC and DILG central office for inclusion in the Official Masterlist of Barangays.
ii. In the Conversion of City to Highly Urbanized City
IRR of RA 1760, ARTICLE 12. xxx

(b) Procedure for conversion —
(1) Resolution — The interested component city shall submit to the Office of the President a resolution of its
sanggunian adopted by a majority of all its members in a meeting duly called for the purpose, and approved and
endorsed by the city mayor. Said resolution shall be accompanied by certifications as to income and population.
(2) Declaration of conversion — Within thirty (30) days from receipt of such resolution, the President shall, after
verifying that the income and population requirements have been met, declare the component city as highly-
urbanized.
(3) Plebiscite — Within one hundred twenty (120) days from the declaration of the President or as specified in the
declaration, the COMELEC shall conduct a plebiscite in the city proposed to be converted. Such plebiscite shall be
preceded by a comprehensive information campaign to be conducted by the Comelec with the assistance of
national and local government officials, media, NGOs, and other interested parties.
2. Division and Merger
a. Requirements: Same as creation and conversion
b. Conditions and Limitations

RA 7160, 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.
LIMITATIONS:
The division or merger shall not reduce:
1. the land area, population, and income to less than the minimum requirement
2. the income classification of the original LGU affected. This refers to the 1st, 2nd, 3rd, 4th, 5th.
MERGER OF LOCAL GOVERNMENT UNITS

Merger of LGU Merger of LGUs to Merger of LGUs to Merger of
create Special create autonomous Administrative
metropolitan regions regions
political subdivision
Legislative enactment Legislative enactment Legislative enactment Legislative enactment
is required. is required. is required. is NOT required.
Plebiscite Plebiscite Plebiscite NO Plebiscite
The power to “merge” administrative regions is executive in character.

27
Chiongbian, et al vs. Orbos, et al G.R. No. 96754, June 22, 1995

Page
“Administrative regions are mere groupings of contiguous Provinces for administrative purposes. They are not
territiorial and political subdivisions like Provinces, Cities, Municipalities and Barangays.”
Xxx
“As this Court observed in Abbas, “while the power to merge administrative regions is not expressly provided for
in the Constitution, it is a power which has traditionally been lodged with the President to facilitate the exercise
of the power of general supervision over local governments.” R.A. No. 5435 was passed “authorizing the
President of the Philippines, with the help of a Commission on Reorganization, to reorganize the different
executive departments, bureaus, offices, agencies and instrumentalities of the government, including banking or
financial institutions and corporations owned or controlled by it.” The purpose was to promote “simplicity,
economy and efficiency in the government.” The law provided that any reorganization plan submitted would
become effective only upon the approval of Congress. Thus the creation and subsequent reorganization of
administrative regions have been exercised by the President pursuant to authority granted to him by law.”
Executive has power to merge administrative regions; no plebiscite is required
Abbas vs. COMELEC G.R. No. 89651 (1989)

“It must be pointed out that what is referred to in R.A. No. 6734 is the merger of administrative regions, i.e.
Regions I to XII and the National Capital Region, which are mere groupings of contiguous provinces for
administrative purposes [Integrated Reorganization Plan (1972), which was made as part of the law of the land by
Pres. Dec. No. 1, Pres. Sec. No. 742]. Administrative regions are not territorial and political subdivisions like
provinces, cities, municipalities and barangays [see Art. X, sec. 1 of the Constitution]. While the power to merge
administrative regions is not expressly provided for in the Constitution, it is a power which has traditionally been
lodged with the President to facilitate the exercise of the power of general supervision over local governments
[see Art. X, sec. 4 of the Constitution]. There is no conflict between the power of the President to merge
administrative regions with the constitutional provision requiring a plebiscite in the merger of local government
units because the requirement of a plebiscite in a merger expressly applies only to provinces, cities, municipalities
or barangays, not to administrative regions.”
3. Substantial Alteration and Boundaries

a. Requirements – see Secs. 6 & 10, LGC of 1991
Requirements are the same as creation and conversion except that criteria on income and
population are not factors to consider. But the alteration of the boundaries should not also
reduce also the minimum requirements on land area.
4. Abolition
a. Grounds and Conditons
RA 7160, 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 sangguniang 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.
NB:
The DILG opined, interpreting Section 9 of the LGC saying, irreversible reduction to less than the
minimum standards only confers a ground for abolition. There should still be an act (law or
ordinance) to be done before an LGU will be considered abolished.
The irreversible reduction shall be determined by the national agencies concerned.
28
B. Autonomous Regions ( Muslim Mindanao and the Cordilleras)

Page
Art. X, Section 15, Consti. There shall be created autonomous regions in Muslim Mindanao and in the Cordilleras
consisting of provinces, cities, municipalities, and geographical areas sharing common and distinctive historical and
cultural heritage, economic and social structures, and other relevant characteristics within the framework of this
Constitution and the national sovereignty as well as territorial integrity of the Republic of the Philippines.
Art. X, Section 18, Consti. 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 multi-sectoral bodies. The organic act shall define the basic structure of government
for the region consisting of the executive department and legislative assembly, both of which shall be elective and
representative of the constituent political units. The organic 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.
Art. X, Section 19, Consti. The first Congress elected under this Constitution shall, within eighteen months from
the time of organization of both Houses, pass the organic acts for the autonomous regions in Muslim Mindanao
and the Cordilleras.
NB:
There should still be law and there should still be plebiscite.
PURPOSE OF THE PLEBISCITE

1. to determine the will of the people whether to create Autonomous Region.
2. to determine which LGUS shall form part of the Autonomous Region. And according to
Abbas and Ordillo, only those with majority votes provided that there shall be more than
one will constitute the autonomous region.
R. A. 6766 (Organic Act for Cordillera Autonomous Region of 1989)

This Act provides for creation of the Cordillera Autonomous Region (CAR) shall consist of the cities and provinces
that shall vote favorable in a plebiscite pursuant ant 10, Sec. 18 of the Constitution. Those cities and provinces
are Benguet, Ifugao, Muslim Province, Abra, Kalinga-Apayao and Baguio
The Act consists of the following pertinent articles:
1) Guiding principles and policies similar to that of Art. 2 of the 1987 Constitution
2) Vesting of legislative power in the Cordillera Assembly; executive power Cordillera governor with a
deputy governor as well; creation of indigenous special courts whose decisions are final and
executory but subject to the original and appellate jurisdiction of the Supreme Court
3) Creation of a Regional Commission on Appointments
4) Measures to protect and develop the ancestral lands and ancestral domains of indigenous cultural
communities as well as the national economy and patrimony
The rest of its provisions are roughly similar to the Organic Act for ARMM (see11-c) CAR never came to
existence. Only Ifugao province voted in favor of CAR, so the Supreme Court in Ordillo v. COMELEC ruled
that Ifugao could no constitute itself into the CAR
The sole province of Ifugao cannot validly constitute the Cordillera Autonomous Region.
Cordillera Regional Assembly v. COMELEC, G. R. No. 93054, December 4, 1990

“The keywords provinces, cities, municipalities and geographical areas connote that "region" is to be made up of
more than one constituent unit. The term "region" used in its ordinary sense means two or more provinces. This is
supported by the fact that the thirteen (13) regions into which the Philippines is divided for administrative
purposes are groupings of contiguous provinces.
29
Aside from the 1987 Constitution, a reading of the provisions of Republic Act No. 6766 strengthens the petitioner's
position that the Region cannot be constituted from only one province.
Page
Xxx
From these sections, it can be gleaned that Congress never intended that a single province may constitute the
autonomous region. Otherwise, we would be faced with the absurd situation of having two sets of officials, a set of
provincial officials and another set of regional officials exercising their executive and legislative powers over
exactly the same small area.”
R.A. 6732 [Organic Act for ARMM (Autonomous Region in Muslim Mindanao)]
Mindanao, encompassing 13 provinces and 9 cities, through a plebiscite for that purpose. This
government shall operate within the framework of the Regional Government. The executive power is conferred on
the Regional Governor. The legislative power is conferred in the Regional Assembly. The Supreme Court, the Court
of Appeals and the lower courts shall continue to exercise their power as mandated in the Constitution; however,
there shall be a Shari’ah Appellate Court which shall also be learned in Islamic law and jurisprudence. The Shari’ah
Court’s decisions shall be final and executory subject to the original and appellate jurisdiction of the Supreme
Court. Tribal Appellate Courts for cases dealing with tribal codes shall also be established.
The Regional Government shall have fiscal autonomy or the power to create its own sources of revenue,
subject to the limitations of the Constitution and this Organic Act. The Organic Act also provides for: Protection of
ancestral lands, ancestral domain and indigenous cultural communities; urban and rural planning and
development; power to enact laws pertaining to the national economy and patrimony responsive to the needs of
the Regional Government; public order and security; education, science and technology and sports development;
social justice and services; and power to amend or revise the Organic Act, either by Congress or by the Regional
Assembly, the latter being subject to approval by Congress.
DIFFERENCE BETWEEN MAJORITY REQUIRED IN THE PLEBISCITE FOR THE CREATION OF A LGU
AND AN AUTONOMOUS REGION
LGU AUTONOMOUS REGION

There must be a majority vote of all units There must be a majority in each unit that are
concerned. made part of the autonomous region.
NB: the majority is based on the total number NB: only those provinces where majority votes
of population of all units concerned. were acquired shall form part of the
autonomous region.
Meaning of “majority vote” required to approve the creation of autonomous region
Abbas vs. COMELEC G.R. No. 89651 (1989)

“As provided in the Constitution, the creation of the autonomous region in Muslim Mindanao is made
effective upon the approval "by majority of the votes cast by the constituent units in a plebiscite called for the
purpose" [Art. X, sec. 18]. The question has been raised as to what this majority means. Does it refer to a majority
of the total votes cast in the plebiscite in all the constituent units, or a majority in each of the constituent units, or
both?
We need not go beyond the Constitution to resolve this question.
It will readily be seen that the creation of the autonomous region is made to depend, not on the total
majority vote in the plebiscite, but on the will of the majority in each of the constituent units and the proviso
underscores this. For if the intention of the framers of the Constitution was to get the majority of the totality of
the votes cast, they could have simply adopted the same phraseology as that used for the ratification of the
Constitution, i.e. "the creation of the autonomous region shall be effective when approved by a majority of the
votes cast in a plebiscite called for the purpose."
It is thus clear that what is required by the Constitution is a simple majority of votes approving the
Organic Act in individual constituent units and not a double majority of the votes in all constituent units put
30
together, as well as in the individual constituent units.”

Page
C. Beginning of Corporate Existence
RA 7160, 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.
MEJIA vs. BALOLONG

Beginning of corporate existence- upon the election and qualification of the Chief Executive and the majority of
Sanggunian members.
NB
GR: corporate existence begins upon the date specified in the law or ordinance creating the
LGU.
EXC: when the law is silent, upon the election and qualification of the Chief Executive and the
majority of Sanggunian members.
WHY MAJORITY OF THE SANGGUNIAN MEMEBERS?

because that is the quorum required under the LGC.
MEANING OF QUALIFICATION OF CHIEF EXECUTIVE AND SANGGUNIAN MEMBERS

After election, the official must take the OATH of office.
RELEVANCE OF KNOWING THE BEGINNING OF CORPORATE EXISTENCE

it is only when it (LGU) has a corporate existence that it shall be considered to have a
personality.
PART IV: POWER RELATIONS WITH NATIONAL GOVERNMENT, SUPREME COURT, PRESIDENT
AND CONGRESS; INTER- GOVERNMENT RELATIONS, AND HIERARCHAL RELATIONS AMONG
LOCAL GOVERNMENT UNITS
A. LGUs and National Government in General: LGUs are agents of the state
Magtajas vs. Pryce Properties

LGUs are but agents of the state, being agents they are mere delegates and therefore cannot be superior to the
principal.
cf.
Surigao Electric Co., Inc. vs Municipality of Surigao
LGUs to the extent that it performs public functions are instrumentalities of the National Government.
B. LGUs and the Supreme Court: LGUs’ acts are subject to Judicial Review
Art. VIII, Section 1, Consti. The judicial power shall be vested in one Supreme Court and in such lower courts as
may be established by law.
Judicial power includes the duty of the courts of justice to settle actual controversies involving rights which are
legally demandable and enforceable, and to determine whether or not there has been a grave abuse of discretion
31
amounting to lack or excess of jurisdiction on the part of any branch or instrumentality of the Government.
Page
Art. VIII, Section 4, Consti. xxx

(2) All cases involving the constitutionality of a treaty, international or executive agreement, or law, which shall be
heard by the Supreme Court en banc, and all other cases which under the Rules of Court are required to be
heard en banc, including those involving the constitutionality, application, or operation of presidential decrees,
proclamations, orders, instructions, ordinances, and other regulations, shall be decided with the concurrence of a
majority of the Members who actually took part in the deliberations on the issues in the case and voted thereon.
NB:
The acts of the LGU are subject to the judicial review of the SC. The legal basis is Section 4
paragraph 2 of Article 8, which says that the SC has minimum appellate jurisdiction on matters
involving constitutionality of ordinances, aside from presidential decrees, executive orders,
treaties, etc.
And in fact, even as to expanded judicial review, the SC may also exercise that power involving
local government units.
C. LGUs and the President: President exercises General Supervision

Under the Constitution, the relationship of the President and the LGU is only that of general
supervision by the President over the LGU.
Art. X, Section 4, Consti. The President of the Philippines shall exercise general supervision over local
governments. Provinces with respect to component cities and municipalities, and cities and municipalities with
respect to component barangays, shall ensure that the acts of their component units are within the scope of their
prescribed powers and functions.
Art. X, Section 16, Consti. The President shall exercise general supervision over autonomous regions to ensure that
laws are faithfully executed.
RA 7160, Section 25. National Supervision over Local Government Units. -

(a) Consistent with the basic policy on local autonomy, the President shall exercise general supervision over local
government units to ensure that their acts are within the scope of their prescribed powers and functions.
The President shall exercise supervisory authority directly over provinces, highly urbanized cities, and independent
component cities; through the province with respect to component cities and municipalities; and through the city
and municipality with respect to barangays.
(b) National agencies and offices with project implementation functions shall coordinate with one another and
with the local government units concerned in the discharge of these functions. They shall ensure the participation
of local government units both in the planning and implementation of said national projects.
(c) The President may, upon request of the local government unit concerned, direct the appropriate national
agency to provide financial, technical, or other forms of assistance to the local government unit. Such assistance
shall be extended at no extra cost to the local government unit concerned.
(d) National agencies and offices including government-owned or controlled corporations with field units or
branches in a province, city, or municipality shall furnish the local chief executive concerned, for his information
and guidance, monthly reports including duly certified budgetary allocations and expenditures.
CONTROL vs. SUPERVISION
CONTROL- “the power of an officer to alter or modify or set aside what a subordinate officer
had done in the performance of his duties and to substitute the judgment of the former for the
latter.”
32
SUPERVISION- the power of mere oversight over an inferior body; it does not include any
restraining authority over such body
Page
DRILON vs. LIM

FACTS:
The Secretary of Justice nullified the Manila Tax Code (Ordinance No. 7794) for failure to comply with the public
hearing requirement pursuant to Section 187 of the LGC.
ISSUE: WON the Secretary of Justice exercised the power of control.
RULING:
No.
Section 187 authorizes the Secretary of Justice to review only the constitutionality or legality of the tax ordinance
and, if warranted, to revoke it on either or both of these grounds. When he alters or modifies or sets aside a tax
ordinance, he is not also permitted to substitute his own judgment for the judgment of the local government that
enacted the measure. Secretary Drilon did set aside the Manila Revenue Code, but he did not replace it with his
own version of what the Code should be. He did not pronounce the ordinance unwise or unreasonable as a basis
for its annulment. He did not say that in his judgment it was a bad law. What he found only was that it was illegal.
All he did in reviewing the said measure was determine if the petitioners were performing their functions in
accordance with law, that is, with the prescribed procedure for the enactment of tax ordinances and the grant of
powers to the city government under the Local Government Code. As we see it, that was an act not of control
but of mere supervision.
LIGA NG MGA BARANGAY vs. PAREDES (2004)

FACTS:
There were alleged irregularities in the National Election of the Liga ng Mga Barangay. Because of the controversy
of the election, Sec. Barbers nullified the entire proceeding, and instead of ordering the new election of these
officials under their own rules, Sec. Barbers issued Memorandum Circular 97-193, and it was the M.C. that was
made applicable to the election of the officers of the Liga Ng Mga Barangay (not its by laws).
ISSUE: WON the executive’s (DILG Sec. as alter ego) supervisory power extend to the Liga ng mga Barangay which
is not a LGU.
RULING:
Yes.
We rule in the affirmative. In Opinion No. 41, Series of 1995, the Department of Justice ruled that the
liga ng mga barangay is a government organization, being an association, federation, league or union
created by law or by authority of law, whose members are either appointed or elected government
officials. The Local Government Code defines the liga ng mga barangay as an organization of all
barangays for the primary purpose of determining the representation of the liga in the sanggunians,
and for ventilating, articulating and crystallizing issues affecting barangay government administration
and securing, through proper and legal means, solutions thereto.
The rationale for making the Liga subject to DILG supervision is quite evident, whether from the perspectives of
logic or of practicality. The Liga is an aggroupment of barangays which are in turn represented therein by their
respective punong barangays. The representatives of the Liga sit in an ex officio capacity at the municipal, city and
provincial sanggunians. As such, they enjoy all the powers and discharge all the functions of regular municipal
councilors, city councilors or provincial board members, as the case may be. Thus, the Liga is the vehicle through
which the barangayparticipates in the enactment of ordinances and formulation of policies at all the legislative
local levels higher than the sangguniang barangay, at the same time serving as the mechanism for the bottom-to-
top approach of development.
The 1987 Constitution by deleting the phrase "as may be provided by law," did not stripped
the President of the power of control over local governments.
Ganzon vs. CA G. R. No. 93252 August 5, 1991

“It is a mistaken impression because legally, “supervision” is not incompatible with disciplinary
authority. As hereinabove indicated, the deletion of "as may be provided by law" was meant to stress, sub silencio,
33
the objective of the framers to strengthen local autonomy by severing congressional control of its affairs, as
observed by the Court of Appeals, like the power of local legislation. The Constitution did nothing more, however,
Page
and insofar as existing legislation authorizes the President (through the Secretary of Local Government) to proceed
against local officials administratively, the Constitution contains no prohibition.
"Control" has been defined as "the power of an officer to alter or modify or nullify or set aside what a
subordinate officer had done in the performance of his duties and to substitute the judgment of the former for
test of the latter." "Supervision" on the other hand means "overseeing or the power or authority of an officer to
see that subordinate officers perform their duties." As we held, however, "investigating" is not inconsistent with
"overseeing", although it is a lesser power than "altering".
D. LGUs and Congress: LGUs derive their existence and power from Congress
GR: LGUs derive their existence and powers from Congress.
EXC: local taxation
Art. X, Section 5, Consti. 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.
EXTENT OF POWER OF CONGRESS OVER LOCAL TAXATION

Only specific power to tax can be the subject to statutory and the guidelines or limitations that
Congress may provide.
DOCTRINE BEFORE THE 1987 CONSTITUTION

The LGUs do not possess the inherent power to tax and they only exercise power to tax by
mere delegation.
DOCTRINE DURING THE 1987 CONSTITUTION

Art. X, Sec. 5 modified the doctrine in the sense that while it is true that LGUs still do not
possess inherent power to tax, and therefore power to tax is the subject of delegation - that
rule applies now to specific power to tax and not to the general power to tax.
It means therefore that Congress cannot deny LGUs the power to tax through statutory
requirement because the Constitution already guarantees that. But as to specific power to tax,
it may do so.
ILLUSTRATION
It may perhaps for example through a law say that LGU has no more power to impose
community tax. It is not a denial of the power to tax because the LGU may still raise revenue
through other revenue-raising but not just through community tax. Community tax is not
constitutionally-guaranteed, it is only statutorily provided. To the extent that Congress has
participation to specific power to tax, then it may provide guidelines and limitations.
BASCO vs. PAGCOR

…..The power of local government to impose taxes and fees is always subject to limitations which Congress may
provide by law.
E. Mother LGU and Component LGU: Mother LGU Reviews act of Components of LGU
1. In general
34
Art. X, Section 4, Consti. The President of the Philippines shall exercise general supervision over local
governments. Provinces with respect to component cities and municipalities, and cities and municipalities with
Page
respect to component barangays, shall ensure that the acts of their component units are within the scope of their
prescribed powers and functions.
The mother LGU reviews acts of component LGUs.
NB: the mother LGU shall ensure that the acts of their component units are WITHIN THE SCOPE
of their prescribed powers and function [to determine WON the acts are ultra vires].
2. Provincial Relations with Component Cities and Municipalities

RA 7160, Section 29. Provincial Relations with Component Cities and Municipalities. - The province, through the
governor, shall ensure that every component city and municipality within its territorial jurisdiction acts within the
scope of its prescribed powers and functions. Highly urbanized cities and independent component cities shall be
independent of the province.
3. City and Municipal Supervision over Component Cities and Municipalities

RA 7160, Section 32. City and Municipal Supervision over Their Respective Barangays. - The city or municipality,
through the city or municipal mayor concerned, shall exercise general supervision over component barangays to
ensure that said barangays act within the scope of their prescribed powers and functions.
4. Local Chief Executive o f Mother LGU reviews Executive Orders (Eos) of LCE of Component
LGU
RA 7160, Section 30. Review of Executive Orders. -
(a) Except as otherwise provided under the Constitution and special statutes, the governor shall review all
executive orders promulgated by the component city or municipal mayor within his jurisdiction. The city or
municipal mayor shall review all executive orders promulgated by the punong barangay within his jurisdiction.
Copies of such orders shall be forwarded to the governor or the city or municipal mayor, as the case may be,
within three (3) days from their issuance. In all instances of review, the local chief executive concerned shall
ensure that such executive orders are within the powers granted by law and in conformity with provincial, city, or
municipal ordinances.
(b) If the governor or the city or municipal mayor fails to act on said executive orders within thirty (30) days after
their submission, the same shall be deemed consistent with law and therefore valid.
NB:
Provincial governors have the power to review the executive orders of the component city and
municipal mayors; and city and municipal mayors will also review the executive orders of
punong barangays. These are local chief executives reviewing the executive orders of the local
chief executives of component LGUs.
5. Sanggunian of Mother LGU reviews Ordinances of Sanggunian and EOs of LCE of

Component of LGU
CITY AND MUNICIPALITY

RA 7160, Section 56. Review of Component City and Municipal Ordinances or Resolutions by the Sangguniang
Panlalawigan.
(a) Within three (3) days after approval, the secretary to the sanggunian panlungsod or sangguniang bayan shall
forward to the sangguniang panlalawigan for review, copies of approved ordinances and the resolutions approving
the local development plans and public investment programs formulated by the local development councils.
(b) Within thirty (30) days after the receipt of copies of such ordinances and resolutions, the sangguniang
panlalawigan shall examine the documents or transmit them to the provincial attorney, or if there be none, to the
provincial prosecutor for prompt examination. The provincial attorney or provincial prosecutor shall, within a
35
period of ten (10) days from receipt of the documents, inform the sangguniang panlalawigan in writing of his
comments or recommendations, which may be considered by the sangguniang panlalawigan in making its decision.
Page
(c) If the sangguniang panlalawigan finds that such an ordinance or resolution is beyond the power conferred upon
the sangguniang panlungsod or sangguniang bayan concerned, it shall declare such ordinance or resolution invalid
in whole or in part. The sangguniang panlalawigan shall enter its action in the minutes and shall advise the
corresponding city or municipal authorities of the action it has taken.
(d) If no action has been taken by the sangguniang panlalawigan within thirty (30) days after submission of such an
ordinance or resolution, the same shall be presumed consistent with law and therefore valid.
NB:
Under Sections 56 and 57, these now involved ordinances and NOT ALL resolutions. All
ordinances should be submitted for review; while resolutions, not all of them. As a rule,
resolution stays in the issuing sanggunian, except if the resolution involves approving of plans
and programs of Local Development Councils, in which case, the Code requires that these
resolutions should be submitted to the reviewing LGU for consistency of the implementation of
these projects.
RA, 7160, Section 57. Review of Barangay Ordinances by the Sangguniang Panlungsod or Sangguniang Bayan. -
(a) Within ten (10) days after its enactment, the sangguniang barangay shall furnish copies of all barangay
ordinances to the sangguniang panlungsod or sangguniang bayan concerned for review as to whether the
ordinance is consistent with law and city or municipal ordinances.
(b) If the sangguniang panlungsod or sangguniang bayan, as the case may be, fails to take action on barangay
ordinances within thirty (30) days from receipt thereof, the same shall be deemed approved.
(c) If the sangguniang panlungsod or sangguniang bayan, as the case may be, finds the barangay ordinances
inconsistent with law or city or municipal ordinances, the sanggunian concerned shall, within thirty (30) days from
receipt thereof, return the same with its comments and recommendations to the sangguniang barangay concerned
for adjustment, amendment, or modification; in which case, the effectivity of the barangay ordinance is suspended
until such time as the revision called for is effected.
NB:
The Sanggunian Panglugnsod for cities, and Sangguniang Bayan for municipality review also the
ordinances of barangays. And you have also mother Sanggunian review ordinanace and
executive orders of component units.
DISTINCTIONS BETWEEN THE POWER OF REVIEW OF MOTHER LGUs

Review by Sanggunian Panlalawigan Review by Sanggunian Panlungsod (City) or
(Province) Sanggunian Bayan (Municipality)
Determine whether the Ordinance is ultra Determine whether the Ordinance is
vires (within the scope and power of the consistent with laws and consistent with city
component LGU). or municipal ordinances.
DISTINCTION BETWEEN POWER OF REVIEW AND VETO POWER OF LOCAL CHIEF EXECUTIVES
Power of Review of Mother LGU Veto Power of Local Chief Executive
GROUND/S: GROUND/S:
1. ultra vires 1. ultra vires
2. inconsistent with law or city/municipal 2. prejudicial to public welfare
ordinance
F. LGUs and National Agencies and Offices (with project implementation functions): Prior
Consultation Before Implementation
36
RA 7160, Section 25. National Supervision over Local Government Units. –

Page
xxx
(b) National agencies and offices with project implementation functions shall coordinate with one another and
with the local government units concerned in the discharge of these functions. They shall ensure the participation
of local government units both in the planning and implementation of said national projects.
xxx
RA 7160, Section 27. Prior Consultations Required. - No project or program shall be implemented by government
authorities unless the consultations mentioned in Sections 2 (c) and 26 hereof are complied with, and prior
approval of the sanggunian concerned is obtained: Provided, That occupants in areas where such projects are to be
implemented shall not be evicted unless appropriate relocation sites have been provided, in accordance with the
provisions of the Constitution.
LINA vs. PANO (2001)

When PAGCOR operated in Laguna, it failed to get an approval and did not even consult the Sangunian of the
municipality concerned.
SC interpreted Section 27 in relation to Section 26 to mean that it shall only refer to programs by national
government. So if it is by, in this case for example, government-owned-or-controlled corporation like PAGCOR, the
rule on prior consultation before implementation will not apply.
That is not a requirement because to invoke Section 27 in relation to Section 26, that only applies to projects by
the national government, and not by the government-owned-or-controlled corporation.
G. LGUs and National agencies, offices and GOCCs (with field units in the LGU): Consultation
RA 7160, Section 25. National Supervision over Local Government Units. -

xxx
(d) National agencies and offices including government-owned or controlled corporations with field units or
branches in a province, city, or municipality shall furnish the local chief executive concerned, for his information
and guidance, monthly reports including duly certified budgetary allocations and expenditures.
NB:
If there is no program implementation, It is only mere consultation that is required. Prior
approval by the Sangunian is not required.
H. LGUs and National agencies, offices, and GOCCs (with environment programs):
Consultation
RA 7160, Section 26. Duty of National Government Agencies in the Maintenance of Ecological Balance. - It shall
be the duty of every national agency or government-owned or controlled corporation authorizing or involved in
the planning and implementation of any project or program that may cause pollution, climatic change, depletion of
non-renewable resources, loss of crop land, rangeland, or forest cover, and extinction of animal or plant species, to
consult with the local government units, nongovernmental organizations, and other sectors concerned and explain
the goals and objectives of the project or program, its impact upon the people and the community in terms of
environmental or ecological balance, and the measures that will be undertaken to prevent or minimize the adverse
effects thereof.
NB:
If it is environmental program, prior approval is also not required. It is mere consultation if you
look at the Code.
I. LGUs and the Philippine National Police (PNP), Fire Protection Unit and Jail Management
Personnel: Operational Supervision and Control by LGUs
37
RA 7160, Section 28. Powers of Local Chief Executives over the Units of the Philippine National Police. - The
extent of operational supervision and control of local chief executives over the police force, fire protection unit,
Page
and jail management personnel assigned in their respective jurisdictions shall be governed by the provisions of
Republic Act Numbered Sixty-nine hundred seventy-five (R.A. No. 6975), otherwise known as "The Department of
the Interior and Local Government Act of 1990", and the rules and regulations issued pursuant thereto.
Andaya vs. RTC, 319 SCRA 696 (1999)

FACTS:
Police Regional Director submitted a list of 5 nominees to the Mayor of Cebu from whom he will select the next
PNP Chief of Cebu City. However, the Mayor did not appoint any because the name of P/Chief Inspector Andres
Sarmiento was not included therein. The Regional Director refused because accordingly Sarmiento was not
qualified.
ISSUE: WON the mayor can compel the Regional director to include the name of Sarmiento in the list.
RULING:
No.
We do not agree. Under Republic Act No. 6975, Section 51, the mayor of Cebu City shall be deputized as
representative of the Commission (National Police Commission) in his territorial jurisdiction and as such the mayor
shall have authority to choose the chief of police from a list of five (5) eligibles recommended by the Police
Regional Director. The City Police Station of Cebu City is under the direct command and control of the PNP
Regional Director, Regional Police Command No. 7, and is equivalent to a provincial office. Then, the Regional
Director, Regional Police Command No. 7 appoints the officer selected by the mayor as the City Director, City
Police Command (chief of police) Cebu City. It is the prerogative of the Regional Police Director to name the five
(5) eligibles from a pool of eligible officers screened by the Senior Officers Promotion and Selection Board,
Headquarters, Philippine National Police, Camp Crame, Quezon City, without interference from local executives. In
case of disagreement between the Regional Police Director and the Mayor, the question shall be elevated to the
Regional Director, National Police Commission, who shall resolve the issue within five (5) working days from
[
receipt and whose decision on the choice of the Chief of Police shall be final and executory. As deputy of the
Commission, the authority of the mayor is very limited. In reality, he has no power of appointment; he has only
the limited power of selecting one from among the list of five eligibles to be named the chief of police. Actually,
the power to appoint the chief of police of Cebu City is vested in the Regional Director, Regional Police
Command No. 7. Much less may the mayor require the Regional Director, Regional Police Command, to include
the name of any officer, no matter how qualified, in the list of five to be submitted to the mayor. The purpose is
to enhance police professionalism and to isolate the police service from political domination.
REPUBLIC ACT No. 6975 (AN ACT ESTABLISHING THE PHILIPPINE NATIONAL POLICE UNDER A
REORGANIZED DILG)
RA 6975 Section 51.
Powers of Local Government Officials Over the PNP Units or Forces.Governors and mayors shall be deputized as
representatives of the Commission in their respective territorial jurisdiction. As such, the local executives shall
discharge the following functions:
(a) Provincial Governor.
(1) Power to Choose the Provincial Director. The provincial governor shall choose the provincial director from a list
of three (3) eligible recommended by the PNP regional director.
(2) Overseeing the Provincial Public Safety Plan Implementation. The governor, as chairman of the provincial peace
and order council, shall oversee the implementation of the provincial public safety plan, which is prepared taking
into consideration the integrated community safety plans, as provided under paragraph (b) (2) of this section.
(b) City and Municipal Mayors.

(1) Operational Supervision and Control. The city and municipal mayors shall exercise operational supervision and
control over PNP units in their respective jurisdiction except during the thirty (30) day period immediately
preceding and the thirty (30) days following any national, local and barangay elections. During the said period, the
local police forces shall be under the supervision and control of the Commission on Elections.
38
The term "operational supervision and control" shall mean the power to direct, superintend, oversee and
Page
inspect the police units and forces. It shall include the power to employ and deploy units or elements of the
PNP, through the station commander, to ensure public safety and effective maintenance of peace and order
within the locality. For this purpose, the term "employ" and "deploy" shall mean as follows:
"Employ" refers to utilization of units or elements of the PNP for purposes of protection of lives and properties,
enforcement of laws, maintenance of peace and order, prevention of crimes, arrest of criminal offenders and
bringing the offenders to justice, and ensuring public safety, particularly in the suppression of disorders, riots,
lawless violence, rebellious seditious conspiracy, insurgency, subversion or other related activities.
"Deploy" shall mean the orderly organized physical movement of elements or units of the PNP within the
province, city or municipality for purposes of employment as herein defined.
(2) Integrated Community Safety Plans. The municipal/city mayor shall, in coordination with the local peace and
order council of which he is the chairman pursuant to Executive Order No. 309, as amended, develop and
establish an integrated area/community public safety plan embracing priorities of action and program thrusts for
implementation by the local PNP stations.
It shall, likewise, be the duty of the city or municipal mayor to sponsor periodic seminars for members of the PNP
assigned or detailed in his city or municipality in order to update them regarding local ordinances and legislations.
(3) Administrative Disciplinary Powers. In the areas of discipline, city and municipal mayors shall have the powers
to impose, after due notice and summary hearings, disciplinary penalties for minor offenses committed by
members of the PNP assigned to their respective jurisdictions, as provided in Section 41 of this Act.
(4) Other Powers. In addition to the aforementioned powers, city and municipal mayors shall have the following
authority over the PNP units in their respective jurisdictions:
(i) Authority to choose the chief of police from a list of five (5) eligibles recommended by the provincial police
director, preferably from the same province, city or municipality.
(ii) Authority to recommend the transfer, reassignment or detail of PNP members outside of their respective
city or town residences; and
(iii) Authority to recommend, from a list of eligibles previously screened by the peace and order council, the
appointment of new members of the PNP to be assigned to their respective cities or municipalities without which
no such appointment shall be attested.
EXTENT OF MAYOR’S POWER

Only operational supervision and control. See RA 6975 above for definition.
J. LGUs and NGOs: LGUs shall support, and may give assistance to, NGOs
RA 7160, Section 34. Role of People's and Non-governmental Organizations. - Local government units shall
promote the establishment and operation of people's and non-governmental organizations to become active
partners in the pursuit of local autonomy.
RA 7160, Section 35. Linkages with People's and Non-governmental Organizations. - Local government units may
enter into joint ventures and such other cooperative arrangements with people's and non-governmental
organizations to engage in the delivery of certain basic services, capability-building and livelihood projects, and to
develop local enterprises designed to improve productivity and income, diversity agriculture, spur rural
industrialization, promote ecological balance, and enhance the economic and social well-being of the people.
RA 7160, Section 36. Assistance to People's and Non-governmental Organizations. - A local government unit may,
through its local chief executive and with the concurrence of the sanggunian concerned, provide assistance,
financial or otherwise, to such people's and non-governmental organizations for economic, socially-oriented,
environmental, or cultural projects to be implemented within its territorial jurisdiction.
39
08/30/2011, 2:40pm
Page
adsum

Adsum Notes Public Corp FINAL Part1to4

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Adsum Notes Public Corp FINAL Part1to4

Uploaded by

Copyright:

Available Formats

Notes (Atty. D.

Largo’s Review on Public Corporations)

3. Public and Private Corporations, distinguished

4. Public Corporation, classified

-established by law partly as an agency of the

-political subdivision of a nation or state which

control of local affairs

2) political subdivisions of the national government; and

3) municipal corporations, primarily for the inhabitants or the community in a certain

2. Dual Nature and Functions

Public or Governmental Private or Corporate

in carrying out the functions of government. administration of local affairs.

EXAMPLES: the exercise of local police EXAMPLES: establishment of slaughter houses;

Bara Lidasan vs COMELEC 21 SCRA 496

ISSUE: WON the law is valid with regard to the 9 barangays.

IMPORTANCE OF DETERMINING THE DUAL FUNCTIONS OF THE LGU

a. In cases of liability for torts

(1) To have continuous succession in its corporate name;

(2) To sue and be sued;

Surigao Electric Co., Inc. vs Municipality of Surigao

ISSUE: WON the LGU is an instrumentality of the national government.

5. Types of Municipal Corporations

DE JURE AND DEFACTO: APPLIED IN LOCAL GOVERNMENT UNITS

6. De facto Municipal Corporations Doctrine; Elements

a. valid law authorizing its creation

DOCTRINE OF DE FACTO MUNICIPAL CORPORATION cf. Doctrine of Operative Fact

Municipality of Jimenez vs Baz

ISSUE: WON the Municipality of Sinacaban was validly created.

Municipality of San Narciso vs Mendez

ISSUE: WON the Municipality of San Andres was validly created.

Municipality of San Narciso vs Mendez

ISSUE: WON the Municipality of San Andres was validly created.

Sultan Osop Camid vs Office of the President

ISSUE: WON the Municipality of Andong was validly created.

7. Methods of challenging existence of municipal corporations

C. Overview of Philippine Local Government System

1. The Unitary vs. the Federal Forms of Government

LGU IN RELATION TO UNITARY VS. FEDERAL FORMS OF GOVERNMENT

WHO CAN EXERCISE RESIDUAL POWERS

RESIDUAL POWER IN RELATION TO LGU

RA, 7160 Section 2. Declaration of Policy. -

Limbona vs. Mangelin 170 SCRA 786 (1989)

Tano vs. Socrates 278 SCRA 154

Magtajas vs. Pryce Properties

San Juan vs. Civil Service Commission

ISSUE: WON the appointment made by the Secretary was valid.

issue permits for fish pens.

D. Local Governments in the Philippines

1. Territorial and Political Subdivisions: Provinces, Cities, Municipalities, Barangays

IMPORTANCE OF THE ENUMERATION OF THE TERRITORIAL AND POLITICAL SUBDIVISIONS

CITIES: DIFFERENT KINDS

Abella vs. Ormoc City 201 SCRA 253, (1991)

ISSUE: WON the candidate can run for provincial post.

3. Special Metropolitan Political Subdivisions

MMDA vs. Bel-Air G.R. No. 135962, March 27, 2000

E. Loose Federation of LGUs and Regional Development Councils

PART II: THE LOCAL GOVERNMENT CODE OF 1991

2. Sources of the Local Government Code of 1991 (Codified laws)

PART III: CREATION, CONVERSION, DIVISION, MERGER, SUBSTANTIAL CHANGE OF BOUNDARY

A. Regular Political Sibdivisions (Provinces, Cities, Municipalities, Barangays)

1. Creation and Conversion

Compliance with the

CRITERIA FOR CREATION AND CONVERSION

MEANING OF THE PHRASE “by law enacted by Congress”