Local Gov Law and Jurisprudence-GATMAYTAN

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U.P. LAW CENTENNIAL TEXTBOOK PROJECT
LOCAL GOVERNMENT LAW

AND JURISPRUDENCE
DANTE B. GATmAYTAN
Philippine Copyright © 2014
by
UNIVERSITY OF THE PHILIPPINES

COLLEGE OF LAW
and
DANTE B. GATMAYTAN
ISBN No. 978-971-15-0456-4
No part of this book may be reproduced in any form, or by

any electronic or mechanical means, including information storage
and retrieval systems, without permission in writing from the author
and the publisher, except by a reviewer who may quote brief
passages in a review.
Publishedby the University of the Philippines, College of Law.

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TABLE OF CONTENTS
PROFILE OF THE AUTHOR ................................................................. ix
ACKNOWLEDGMENTS .................................................................. x
PREACE ............................................................................................. xi
BOOK I
GENERAL PROVISIONS
TITLE I. BASIC PRINCIPLES ................................................. 1
Chapter I. The Code: Policy and Application .......................... 1
Chapter II. General Power and Attributes of
Local Government Units .............................................. 17
Chapter III. Intergovernmental Relations .................................. 183
Article I. National Government and Local
Government Units ............................................................. 183
Article II. Relations with Philippine National Police ............... 195
Article IM.Inter-Local Government Relations ........................... 210
Chapter IV. Relations with Peoples' and Non-governmental
Organizations ..................................................................... 211
Chapter V. Local Pre-qualification, Bids and Awards
Com mittee .......................................................................... 212
TITLE II. ELECTIVE OFFICIALS ............................................. 215
Chapter I. Qualifications and Election ....................................... 215
Chapter II. Vacancies and Succession ......................................... 253
Chapter II. Local Legislation ...................................................... 267
Chapter IV. Disciplinary Actions ................................................ 296
Chapter V. Recall ........................................................................... 317
TITLE III. HUMAN RESOURCES DEVELOPMENT ........... 325
TITLE IV. LOCAL SCHOOL BOARDS ................................... 363
TITLE V. LOCAL HEALTH BOARDS ..................................... 370
TITLE VI. LOCAL DEVELOPMENT COUNCILS ................ 373
TITLE VII. LOCAL PEACE AND ORDER COUNCIL ....... 380
TITLE VIII. AUTONOMOUS SPECIAL ECONOMIC ZONES
............................................................. o...........382
TITLE IX. OTHER PROVISIONS APPLICABLE TO LOCAL
GOVERNMENT UNITS ............................................... 385
Chapter I. Settlement of Boundary Disputes...................... 385
Chapter II. Local Initiative and Referendum .................391
BOOK II
LOCAL TAXATION AND FISCAL MATTERS
TITLE I. LOCAL GOVERNMENT TAXATION .................... 400
Chapter I. General Provisions ............................. 400
Chapter II. Specific Provisions on the Taxing and Other
Revenue-Raising Powers of Local Government Units.418
Article I. Provinces ............................. 418
Article II. Municipalities ... ........................... 434
Article III. Cities ............................... 446
Article IV. Barangays .............................................................. 446
Article V. Common Revenue-Raising Powers .......................... 447
Article VI. Community Tax .............................. 448
Chapter III. Collection of Taxes ................................................... 453
Chapter IV. Civil Remedies for Collection of Revenues .......... 455
Chapter V. Miscellaneous Provisions .............................465
Chapter VI. Taxpayer's Remedies .............................................. 469
TITLE II. REAL PROPERTY TAXATION ............................... 472
Chapter I. General Provisions ...................................................... 472
Chapter II. Appraisal and Assessment of Real Property ......... 475
Chapter III. Assessment Appeals ................................................ 490
Chapter IV. Imposition of Real Property Tax ............................ 495
Chapter V. Special Levies on Real Property .............................. 505
Chapter VI. Collection of Real Property Tax ............................. 509
Chapter VII. Disposition of Proceeds ......................................... 521
Chapter VIII. Special Provisions ................................................. 523
TITLE III. SHARES OF LOCAL GOVERNMENT IN THE
PROCEEDS OF NATIONAL TAXES ........................... 525
Chapter I. Allotment of Internal Revenue ................................. 525
Chapter II. Share of Local Government Units in the National
Wealth ................................................................................. 533
TITLE IV. CREDIT FINANCING ............................................. 539
TITLE V. LOCAL FISCAL ADMINISTRATION .................. 546
Chapter I. General Provisions ...................................................... 546
Chapter II. Local and Other Special Funds ................................ 550
Article I. Receipts, Safekeeping keeping and Disposition of
Local Funds ............................. 550
Article II. Special Accounts .......................................................... 551
Chapter III. Budgeting .................................................................. 552
Article I. Local Government Budgets ......................................... 552
Article II. Barangay Budgets ........................................................ 565
Chapter IV. Expenditures, Disbursements, Accounting and
Accountability.... ................................................................ 569
TITLE VI. PROPERTY AND SUPPLY MANAGEMENT IN
THE LOCAL GOVERNMENT UNITS ........................ 580
BOOK III
LOCAL GOVERNMENT UNITS
TITLE I. THE BARANGAY ................................................... 596
Chapter I. Role and Creation of the Barangay .......................... 596
Chapter II. Barangay Officials and Offices ................................ 598
Chapter III. The Punong Barangay ............................................. 600
Chapter IV. The Sangguniang Barangay ................................... 608
Chapter V. Appointive Barangay Officials ................................ 616
Chapter VI. Barangay Assembly ................................................. 619
Chapter VII. Katarungang Pambarangay .................................. 621
Chapter VIII. Sangguniang Kabataan ......................................... 637
Chapter IX. Pederasyon ng mga Sangguniang Kabataan ....... 649
Chapter X. Linggo ng Kabataan .................................................. 651
TITLE II. THE MUNICIPALITY ............................................... 652
Chapter I. Role and Creation of the Municipality .................... 652
Chapter II. Municipal Officials in General ................................ 653
Chapter III. Officials and Offices Common to
all Municipalities ............................................................... 655
Article I. The Municipal Mayor ................................................... 655
Article II. The Vice-Mayor ............................................................ 672
Article IIM. The Sangguniang Bayan ............................................ 673
TITLE III. THE CTY ................................................................... 699
Chapter I. Role and Creation of the City .................................... 699
Chapter II. City Officials in General ........................................... 702
Chapter 1I. Officials and Offices Common to All Cities ......... 704
Article I. The City Mayor .............................................................. 704
Article 1I. The City Vice-Mayor ................................................... 721
Article IIJ. The Sangguniang Panlungsod .................................. 722
TITLE IV. THE PROVINCE ....................................................... 748
Chapter I. Role and Creation of the Province ........................... 748
Chapter II. Provincial Officials in General ................................. 751
Chapter III. Officials and Offices Common to All Provinces..752
Article I. The Provincial Governor .............................................. 752
Article II. The Provincial Vice-Governor ................................... 766
Article Ill. The Sangguniang Panlalawigan ............................... 767
TITLE V. APPOINTIVE LOCAL OFFICIALS COMMON TO
ALL MUNICIPALITIES, CITIES, AND PROVINCES
.. o........ o...............
.........
o o oooo..........o -o....................... oo.780
Article I. Secretary to the Sanggunian ........................................ 780

Article 1I. The Treasurer .............................................................. 782
Article I11. The Assessor ................................................................ 787
Article IV. The Accountant .......................................................... 791
Article V. The Budget Officer ........ .............................. 794
Article VI. The Planning and Development Coordinator ....... 795
Article VII. The Engineer................................. 797
Article VIII. The Health Officer................................................... 799
Article IX. The Civil Registrar .............. ....................... 803
Article X. The Administrator ............................ 805
Article XI. The Legal Officer ........................................................ 808
Article I. The Agriculturist ............................ 815
Article XI1. The Social Welfare and Development Officer ..... 817
Article X1V. The Environment and Natural Resources
Officer................................................................................ 821
Article XV. The Architect ............................................................. 824
Article XVI. The Information Officer .......................................... 827
Article XVII. The Cooperatives Officer ...................................... 829
Article XVIII. The Population Officer ......................................... 831
Article XIX. The Veterinarian ...................................................... 834
Article XX. The General Services Officer ................................... 836
TITLE VI. LEAGUES OF LOCAL GOVERNMENT UNITS
AND ELECTIVE OFFICIALS ........................................ 840
Chapter I. Leagues of Local Government Units ........................ 840
Article I. Liga ng Mga Barangay ................................................. 840
Article II. League of Municipalities ............................................ 845
Article III. League of Cities .......................................................... 846
Article IV. League of Provinces ................................................... 847
Article V. Provisions Common to All Leagues ......................... 849
Chapter II. Leagues and Federation of Local Elective
O fficials ............................................................................... 851
BOOK IV
MISCELLANEOUS AND FINAL PROVISIONS
TITLE I. PENAL PROVISIONS ................................................ 853
TITLE II. PROVISIONS FOR IMPLEMENTATION ............ 857
TITLE III. TRANSITORY PROVISIONS ............................... 859
TITLE IV. FINAL PROVISIONS .............................................. 874
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PROFILE OF THE AUTHOR
Professor Gatmaytan is Associate Professor in the U.P.

College of Law where he teaches Constitutional Law, Local
Government Law, and Legal Method among others. He graduated
with a Bachelor's Degree from the Ateneo de Manila (B.S. Legal
Management) and earned his law degree from the University of the
Philippines in 1991. He holds Masters Degrees from Vermont Law
School (cum laude) and the University of California, Los Angeles.
Before he entered the academe in 1998, he practiced law
through public interest law offices working with rural poor
communities involved in environment and natural resources law,
indigenous peoples' rights, agrarian reform, and local governance.
He is a professorial lecturer and vice-chair of the Department
of Legal Method and Research at the Philippine Judicial Academy.
Professor Gatmaytan writes on a wide range of issues which
include the environment, gender, the judiciary, and the intersection
of law and politics. His works have appeared in the Asian Journal of
Comparative Law, the Oregon Review of International Law, the
UCLA Pacific Basin Law Journal, the Georgetown International
Environmental Law Review, and the Harvard Women's Law Journal
among others. He is also the author of Legal Method Essentials 2.0
(2014).
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ACKNOWLEDGEMENTS
This book could not have been produced without the help of
many people. I want to thank Professor Victoria Loanzon for
commenting on drafts of this book.
This book would not have been possible without the help I
received from Maan Ballesteros, Claudette dela Cerna, Pia Rieza,
Sopfia Guira, Marijo Alcala, and Rhegine Peralta; all excellent
research assistants who helped gather and prepare the materials for
my course in Local Governments. I am grateful to Francis Tiopianco
who worked directly on the production of this book and who
organized the mass of cases interpreting the Local Government Code
into a comprehensible system. I especially want to thank Carla
Mapalo and Cari Mangalindan who performed above and beyond
the call of duty by literally doing everything for this project-
contributing to the substance and fashioning it into what is now one
of my proudest accomplishments.
I am grateful to Pedro Malicdem, Jr. who worked on the
layout and to Hannah Manaligod for the cover of this book.
This book was made possible through the U.P. Law
Centennial Textbook Project and I want to thank Supreme Court
Associate Justice Marvic M.V.F. Leonen for initiating the Project and
Dean Danilo L. Concepcion for his administration's continued
support.
I also thank my students who over the years, through our
interaction in class, helped shape the final outline for this book.
As always, I want to thank Cielo Magno for her help in the
production of both the substance and form this book. Her ideas, as
always, improve my work immeasurably.
All shortcomings of the book are my sole responsibility.
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PREFACE
The enactment of the Local Government Code of 19911

generated a lot of excitement. The Code is a landmark in the history
of decentralized government in the Philippines. 2 It was described as
the "most radical piece of legislation passed in the nation's history" 3
and a "revolutionary" solution to the highly centralized character of
Philippine government.4 President Corazon Aquino considered the
enactment of the Local Government Code the linchpin of her
administration and said it was crucial in plans to democratize the
Philippines.5 The Code was expected to radically alter national-local
government relations as well as trigger civil-society involvement in
unprecedented ways. Local governments would have been weaned
away from the Capital and thriving on their own.
The Code is so radically different from its predecessors that
the Supreme Court had to revisit long-settled issues from the nature
of the powers of local governments to the extent of their power to
tax. In many cases, the Court concluded that the Local Government
Code of 1991 consciously abrogated these settled rules.
The Code's impact is now clear. Congress has since made
piecemeal amendments to the Code even as many stakeholders in the
local governance theater call for a complete overhaul. Like any law,
the Code is a continuing project-molded periodically by litigation
and congressional action. But its basic contours are established and
this is a good time to undertake a sober study of the law.
This book is a humble attempt to aid students in their study
of law. The text of the law is annotated with comments and Supreme
I Republic Act No. 7160 (1991).

2Alma Ocampo-Salvador, PhilippineLocal Governments: Toward Local Autonomy and
Deceintralization,in PoLmcs &GovmNANCE: THEORY AND PRAcrIcE IN THE PinuPNE
CONTEXT 117,147 (1999).
3 Alex B. Brilantes, Jr., Issues and Trends in Local Governance in the Philippines, in THE
LOCAL GOVERNMENT CODE: AN AssEsMENT 3 (1999).
4 AQunoo Q. P Nm, Jr., THE LOCAL GoVERNMENT CODE OF 1991: THE KEY TO
NATIONAL DEVELOPMENT 2 (1993).
5
Kent Eaton, Political Obstacles to Decentralization: Evidence from Argentina and the
Philippines,32 DEVELOPMENT AND CHANGE 101, 116 (2001).
Court decisions. The comments are intended to explain the meaning
of the provisions of the Code as determined by the Supreme Court.
While it is designed as a textbook for law schools, I hope that
this effort can also be useful for legislators and policy-makers in their
work as they fashion the best system for our country.
Dan Gatmaytan, B.S., LL.B., M.S.E.L., LL.M.

Associate Professor
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BOOK I
GENERAL PROVISIONS
Title I
BASIC PRINCIPLES
Chapter I
The Code: Policy and Application
SECTION 1. Title. - This Act shall be known and

cited as the "Local Government Code of 1991".
The Local Government Code of 1991 was referred to as the

"most radical piece of legislation passed in the nation's history" 6 and
a "revolutionary" solution to the highly centralized character of
7
Philippine government.
Our history of local governance8 goes back centuries. Spain
concentrated control over the scattered barangays of the Philippine
archipelago in Manila. For centuries, the country was administered
from that city.
McKinley's Instructions dated April 7, 1900 to the Second
Philippine Commission ordered the new Government "to devote
their attention in the first instance to the establishment of municipal
governments in which natives of the Islands, both in the cities and
rural communities, shall be afforded the opportunity to manage their
own local officers to the fullest extent of which they are capable and
subject to the least degree of supervision and control which a careful
6Alex B. Brilantes, Jr., Issues and Trends in Local Governance in the Philippines, in THE
LOCAL GOVERNMENT CODE: AN ASSESSMENT 3 (1999).
7PIMENTEL, supranote 4.
8 Alex B. Brillantes, Jr., Decentralization, Devolution and Development in the
Philippines, UMP-Asia Occasional Paper No. 44 (n.d.). The discussion of the history
of decentralized governance in the Philippines is derived from this source.
2 Local Government Law and Jurisprudence
study of their capacities and observation of the workings of native

control show to be consistent with the maintenance of law, order and
loyalty." 9 In this initial organic act for the Philippines, the
Commission, which combined both executive and legislative powers,
was directed to give top priority to making local autonomy effective.
The United States made several policy pronouncements that
indicated a shift to a more decentralized regime, and organized
municipal and provincial governments based on suffrage. However,
the Americans maintained a highly centralized politico-
administrative structure. Largely because of security considerations,
local affairs had to be under the control of the Americans.
The 1935 Constitution had no specific article on local
autonomy. However, it distinguished between presidential control
and supervision as follows:
Th contro
otro oao theexnav
e
'departments, >bureaus, or- offices, .ex~ercise ,geral,,
;tupervisjofl over all local governm~ents as may be,
.provided~by',law, and take 'care that .the -laws, b'
The Constitution dearly limited the executive power over

local governments to "general supervision...as may be provided by
law." The President controls the executive departments. He has no
such power over local governments. He has only supervision and
that supervision is both general and circumscribed by statute.
Pursuant to this principle under the 1935 Constitution,
legislation implementing local autonomy was enacted. In 1959,
Congress passed Republic Act No. 2264, "An Act Amending the Law
Governing Local Governments by Increasing their Autonomy and
Reorganizing Local Governments." The Barrio Charter Act" was
enacted in 1959 to transform the barrios into quasi-municipal
9 See San Juan

v. Civil Service Commission, G.R. No. 92299, April 19,1991.
10
COEs. (1935), Art. VII, § 11.
11
Republic Act No. 2370 (1959).
General Provisions 3
corporations by vesting them some taxing powers. In 1967, Congress

enacted the Decentralization Act of 196712 and increased the financial
resources of local governments and broadened their administrative
powers.
The provisions of the 1973 Constitution moved the country
further towards greater autonomy. It provided a basic principle of
government under Article II:
While various laws introduced incremental changes to the

administrative structure to allow local governments to address their
concerns at the local level without being tethered to the national
government, this trend was aborted in 1972 when Ferdinand Marcos
placed the entire country under martial law. In doing so, Marcos
stunted the development of local governments by centralizing the
government in Manila.
A Local Government Code was enacted in 1983 (Batas
Pambansa Blg. 337), but as some authors point out, these attempts at
decentralizing government were simple administrative formalisms.
Power continued to be concentrated in Manila, with local units
heavily dependent upon central government.
The People Power phenomenon which ended the Marcos
government allowed Filipinos to promulgate a new Constitution. The
1987 Constitution in large measure was designed to prevent a
repetition of the excesses of the Marcos regime and now includes a
very long provision on the autonomy of local governments in Article
X. The Article is reproduced here:
12 Republic Act No. 5185 (1967).

Local Govemmeni
exercse generai supervision over iocai governments.

iProvinces with respect, to component cities. andl
mnicipalities, and cities and municipalities wMIt
,respect to comnponentbarangays shall, ensure that thej
iacts of theiromponent~units are within the scope of'
Itheir prescribed powers and functions.
'SECTION 5. Each local government unit shall have the
power to create its own sources of revenues and to'
levy taxes, fees, and charges subject to such guidelines!
:and limitations as the Congress may provide,
consistent with the basicyPolcy of l4ocal autnory
uch taxes,fees, an h-arges shl accrue exclusively

to the local governments.
ISECTION 6. Local government units shall have a just
fshare, as determined by law, in the national taxes,
which shall be automatically relea sd to them.
!SnCJION 7. Local governments shall be entitled to an
Requitable. share in the proceeds of the utilizationaiid&
evelopment of the national wealth within "
rrespective areas, in the manner provided by law,'
including sharing the'same with the inhabitants byi
way of direct benefits. -
,SECfON 8. The term 'of office of elective locall

iofficials, except barangay officials, which shall be
determined by law, shall....
ber three - -eand-n
no, such,
official shall serve for more than three coisecuivei
~terms. Voluntary renunciationv of the office for- any;
lenth of timnte shall not be consildered', a'sa
intrrutio inthecontintuity of his service for'the ful.
ler~m for which he-was elected
SECIION 9. Legislative bodies, of local, governments
hall have sectoral re ainas may be!
,prescribed by law:
MECTION 10. No province, city, municipality, 6r
gay maybe created,divided, merged, abolishedf
its boundary substantially altered,. except i
accordance with the criteria established in the Local
.Government Codeand subject to approval by &
~majority of the votes cast in a plebiscite' in the political,
units dixectly affected.
SECTION 11. The Congress- may, by law, create
!special metropolitan political subdivisions, subject to a
plebiscite as set forth in Section 10 hereof. The
'component cities and municipalities shall retain theiri!
:basic autonomy and shall be entitled to their own locaf
_eu s and legislative assemblies. The jurisdiction
ofthe metropolitan authority that -willhereby be
created shall be limited to basic services requiring

coordination.
SECTION 12. Cities that are highly urbanized, as
,determined by law, and component cities whose6
charters prohibit their voters from voting for i
,provincial elective officials, shall be independent ofi
,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. .. •
SECTION 13. Local government units may group:
themselves, consolidate or coordinate their efforts,
services, and, resources ifor purposes commonly
beneficial to them in accordance with law.
SECTION 14. The President shall provide for.regional
development coitncils or other similar bodies,
composed of local government officials, regional'
heads of departments and other government offices,
and representatives from non-governmentaf
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 thei
units in the region.
Autonomous Region
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.
SE 6 h rsdnt- sha-Jexercise- gener ,alI

supervision over autonomous regions to ensure that i
the laws are faithfully executed.
SECTION 17. All powers, functions, and
responsibilities not granted by this Constitution or byl
,law to the autonomous regions shall be vested in the
National Government.
,SECTON 18. The Congress shall enact an organic act:
for each autonomous region with the assistance, and-
participation of the regional consultative commission!
!composed of representatives appointed by the
President from a list of nominees from multisectoral
ibodies. The organic act shallI define the basic structuTe
,of government for the region consisting of, the.
executive department and legislative assembly, both
of which shall be elective and representative of the
ceonstituent 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 law
The creation of :the auto iomous 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,. and2
geographic areas voting favorably in such plebiscite
shall be included in the autonomous region.
SECTION 19. 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.
SECTION 20. Within its territorial jurisdiction and
subject to the provisions of this Constitution and
national laws, the organic act of autonomous regions
shall provide for legislative powers over:
(1)Administrative organization;
(2) Creation of sources of revenues;
Section 25, Article II of the Constitution further provides that

"[t]he State shall ensure the autonomy of local governments."
Pursuant to Section 3, Article X, Congress enacted Republic
Act No. 7160. Section 2 of the law provides as follows:
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.
Local autonomy is the means by which local governments

become self-reliant partners in the attainment of national goals. The
State will ensure local autonomy by establishing a local government
structure that provides more power, authority, responsibility, and
resources to local government units.13 The Code, however, not only
established a decentralized government; it also devolved powers to
local government units. Decentralization is akin to deconcentration
where some functions of the central government are transferred to
the regions but whose officials remain under the control of the
central government. The Code accomplishes more than mere
deconcentration of functions-it mandates the devolution of services
to local government units. Devolution, as defined by the Code, is
"the act by which the National government confers power and
authority upon the various local government units to perform
specific functions and responsibilities." 14
It is important to understand the different concepts
implicated by this field of political law:
Decentralization is a decision by the central
government authorizing its subordinates, whether
geographically or functionally defined, to exercise
authority in certain areas. It involves decision-making
by subnational units. It is typically a delegated power,
wherein a larger government chooses to delegate
certain authority to more local governments.
Federalism implies some measure of decentralization,
but unitary systems may also decentralize.
3PiMENTL, supra, note 4.

14 Republic Act No. 7160, § 17 (e).
Decentralization differs intrinsically from federalism

in that the sub-units that have been authorized to act
(by delegation) do not possess any claim of right
against the central government.
Decentralization comes in two forms -
deconcentration and devolution. Deconcentration is
administrative in nature; it involves the transfer of
functions or the delegation of authority and
responsibility from the national office to the regional
and local offices. This mode of decentralization is also
referred to as administrative decentralization.
Devolution, on the other hand, connotes political
decentralization, or the transfer of powers,
responsibilities, and resources for the performance of
certain functions from the central government to local
government units. This is a more liberal form of
decentralization since there is an actual transfer of
powers and responsibilities. It aims to grant greater
autonomy to local government units in cognizance of
their right to self-government, to make them self-
reliant, and to improve their administrative and
technical capabilities.15
Devolution is indispensable to decentralization.
Devolution is a prominent feature of the Code and is
premised on the theory that local governments may
assess and provide the needs of their constituents
better than the national government can. Section 5 of
the Code provides in part that "any question thereon
shall be resolved in favor of devolution of powers and
16
of the lower local government unit."
(b) It is also the policy of the State to ensure the

accountability of local government units through the
15 See Disomangcop v. The Secretary of the Department of Public Works and

Highways, GR No. 149848, November 25,2004.
16 Tano v. Socrates, G.R. No. 110249, August 21,1997.
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.17
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
17 See discussion under Sections 26 and 27.

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;18
18 In one case, the Supreme Court held that the operative principles of
decentralization upon the environment and natural resources are not absolute
because it is provided that "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." The national policies mentioned here refer to existing policies
which the Department of Environment and Natural Resources and other
government agencies concerned with the environment may implement at any given
moment. The national policies are embodied in existing laws, rules and regulations
pertaining to environment and natural resources, such as Presidential Decree Nos.
704 and 1219 which relate to fishery resources. According to the Supreme Court, the
above provision was crafted to make sure that local government enactments do not
supplant or negate national government policies on environment. See Tano v.
Socrates, G.R. No. 110249, August 21,1997.
0) 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;
(1) 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.
SECTION 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.
The Local Government Code applies to autonomous regions

that may be created under the Constitution until such time as the
regional government concerned shall enact its own local government
code. 19 The Autonomous Region of Muslim Mindanao has enacted
the Muslim Mindanao Autonomy Act No. 25, otherwise known as
the ARMM Local Government Code.
19 Section 526 of the Code provides:

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.
SECTION 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.
Prior to the enactment of the Local Government Code, the

Supreme Court had consistently held that a municipal corporation,
unlike a sovereign state, is not clothed with inherent power of
taxation. The charter of the corporation must plainly show intent to
confer that power and the power, when granted, is to be construed
strictissimijuris. Any doubt or ambiguity arising out of the term used
must be resolved against the corporation. 20 To be exercised by a
municipal corporation, the power to tax must be expressly conferred
in plain terms, or it must arise by necessary implication from the
powers expressly granted. A grant of power of this nature is, as a
rule, strictly construed against its exercise and in favor of the public,
especially where the purpose is to raise revenue. 21
Taxation under the present Code may be exercised by local

legislative bodies, no longer by mere delegation by Congress, but
20
Santos Lumber Co. v. City of Cebu, G.R. No. L-10196, January 22,1958.
2
Everett Steamship Corporation v. Municipality of Medina, G.R. No. L-21191, April
30,1966.
pursuant to direct authority conferred by Section 5, Article X of the

Constitution. 22 The important legal effect of the Constitutional
provision is that in interpreting statutory provisions on municipal
fiscal powers, doubts will have to be resolved in favor of municipal
corporations.23
(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;24
(d) Rights and obligations existing on the date of
effectivity of this Code and arising out of contracts or
any other source of presentation 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; 25 and
(e) In the resolution of controversies arising under
this Code where no legal provision or jurisprudence
applies, resort may be had to the customs and
traditions in the place where the controversies take
place.
A closer examination of Section 5 (a) shows that there are

three different rules embodied in that single paragraph:
(a) any provision on a power of a local government unit shall
be liberally interpreted in its favor;
22
Thus Article X, Section 5 of the Constitution reads:
SECTION 5. Each Local Government unit shall have the power to
create its own sources of revenue 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.
2 City Government of San Pablo Laguna v. Reyes, G.R. No. 127708, March 25,1999.
24 See discussion under Section 16 of the Code.
25 See Macasiano v. Diokno, G.R. No. 97764, August 10,1992.
(b) in case of doubt, any question thereon shall be resolved in

favor of devolution of powers and of the lower local
government unit;
(c) any fair and reasonable doubt as to the existence of the
power shall be interpreted in favor of the local
government unit concerned;
Congress intended to abandon the rule that was in effect
before the effectivity of the Code: that local legislative councils have
only such powers as are expressly granted to it and those which are
necessarily implied or incidental to the exercise thereof. By reason of
its limited powers and the nature thereof, these powers are to be
construed strictissimijuris and any doubt or ambiguity arising out of
the terms used in granting said powers must be construed against
the City Council.26
The Supreme Court noted the Local Government Code
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." 27
Unfortunately, the Court overlooked this change in a more
recent decision and reverted to the older more restrictive rule.28 In
that case, the Court held that the City Council has only such powers
as are expressly granted to it and those which are necessarily implied
or incidental to the exercise thereof. It said that "[b]y reason of its
limited powers and the nature thereof, said powers are to be
construed strictissimijuris and any doubt or ambiguity arising out of
the terms used in granting said powers must be construed against
the City Council."29
26 See Greater Balanga Development Corporation v. Balanga, G.R. No. 83987,

December 27,1994 and City of Ozamis v. Lumapas, G.R. No. L-30727, July 15,1975.
27
Tano v. Socrates, G.R. No. 110249, August 21,1997.
2
8City of Manila v. Laguio, Jr. G.R. No. 118127, April 12,2005.
2 The Court incorrectly relied on the very outdated case of City of Ozamis v.
Lumapas, G.R. No. L-30727, July 15,1975.
The Supreme Court has also ruled that if a law is capable of

two interpretations, "one in favor of centralized power in
Malacaftang and the other beneficial to local autonomy, the scales
must be weighed in favor of autonomy." 30
Chapter II
General Power and Attributes of Local Government Units
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.
Defining Local Government Units

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.31 They are an intra sovereign subdivision of one sovereign
3
oSan Juan v. Civil Service Commission, G.R. No. 92299, April 19,1991.
31Metropolitan Manila Development Authority v. Bel-Air Village Association, Inc.,
G.R. No. 135962, March 27, 2000. The MMDA is not a local government unit or a
public corporation endowed with legislative power, and, unlike its predecessor, the
Metro Manila Commission, it has no power to enact ordinances for the welfare of the
community. See Metropolitan Manila Development Authority v. Garin, G.R. No.
130230, April 15, 2005.
nation, but not intended to be an imperium in imperio; the local

government unit is autonomous in the sense that it is given more
power, authority, responsibility and resources. 32
Administrative regions are not territorial and political
subdivisions.33 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. 34 There is no conflict between the power of the
President to merge administrative regions and the constitutional
provision requiring a plebiscite in the merger of local government
units; the requirement of a plebiscite in a merger expressly applies
only to provinces, cities, municipalities or barangays, not to
administrative regions. 35 Administrative regions are mere groupings
of contiguous provinces for administrative purposes, not for political
representation. 36
An autonomous region-although a subnational form of
government-is created in a different way. The Constitution outlines
the procedure for the creation of an autonomous region. It requires
the creation of a regional consultative commission. The President
shall then appoint the members of the regional consultative
commission from a list of nominees from multisectoral bodies. The
commission shall assist the Congress in preparing the organic act for
the autonomous region. The organic act shall be passed by the first
Congress under the 1987 Constitution, within eighteen months from
the time of its organization, and enacted into law. Thereafter, there
shall be a plebiscite held for the approval of the organic act. Only
then shall the autonomous region be created. 37
The Cordillera Administrative Region (CAR), created by
President Corazon Aquino through Executive Order No. 220, is not
an autonomous region. The Constitution provides for the basic
32
Alvarez v. Guingona, G.R. No. 118303, January, 31,1996.
33
See CONST., Art. X, § 1.
34
See CoNsT., Art. X, § 4.
35
Abbas v. Commission on Elections, G.R. No. 89651, November 10,1989.
36 Chiongbian v. Orbos, G.R. No. 96754, June 22,1995.
37
Cordillera Broad Coalition v. Commission on Audit, G.R. No. 79956, January 29,
1990.
structure of government in autonomous regions composed of an

elective executive and legislature and special courts with personal,
family and property law jurisdiction. Executive Order No. 220 did
not establish an autonomous regional government. It created a
region, covering a specified area, for administrative purposes with
the main objective of coordinating the planning and implementation
of programs and services. It does not have a separate juridical
personality unlike provinces, cities and municipalities. Neither is it
vested with the powers that are normally granted to public
corporations, e.g. the power to sue and be sued, the power to own
and dispose of property, and the power to create its own sources of
revenue. 38
The creation of a legislative district does not require a
plebiscite because it is not a political subdivision through which
functions of the government are carried out. It can be described as a
representativeunit that may or may not encompass the whole of a city
or a province, but unlike the latter, it is not a corporate unit. A
district does not act for and in behalf of the people comprising the
district, but merely delineates the areas occupied by the people who
will choose a representative in their national affairs. A district does
not have its own chief executive. The role of the elected congressman
is to ensure that the voice of the people of the district is heard in
Congress, not to oversee the affairs of the legislative district. Not
being a corporate unit also signifies that it has no legal personality
that must be created or dissolved and has no capacity to act.
Local government units, on the other hand, are political and
corporate units. They are the territorial and political subdivisions of
the state. They possess legal personality on authority of the
Constitution and by action of the Legislature. The Constitution
defines them as entities that Congress can, by law, create, divide,
abolish, merge; or whose boundaries can be altered based on
standards again established by both the Constitution and the
Legislature. The corporate existence of a local government unit
commences upon the election and qualification of its chief executive
39
and a majority of the members of its sanggunian.
38 Cordillera Broad Coalition v. Commission on Audit, G.R. No. 79956, January 29,
1990.
39
Bagabuyo v. Commission on Elections, G.R. No. 176970, December 8. 2008.
CreatingLocal Government Units

Local governments are created either by Congress, in the case
of a province, city, municipality, or any other political subdivision.
Barangays, however, may be created by ordinance if created by a
province or city. In either case, the creation of these local government
units must conform to the requirements of the Code.
Article X of the Constitution provides that the basic
requirements for the creation, division, merger and abolition of local
governments shall be provided for in the Local Government Code.
The Constitution requires that these changes shall be approved
through a plebiscite.
The Constitution also mandates the creation of autonomous

regions:
The creation of local governments within the ARMM is

governed by Republic Act No. 9054:
As noted above, in the Autonomous Region of Muslim

Mindanao,"[t]he Regional Assembly may prescribe standards lower
than those mandated by Republic Act No. 7160, the Local
Government Code of 1991, in the creation, division, merger,
abolition, or alteration of the boundaries of provinces, cities,
municipalities, or barangay."
SECTION 7. Creation and Conversion. - As a general

rule, the creation of a local government unit or its
conversion from one level to another level shall be
based on verifiable indicators of viability and
projected capacity to provide services, to wit:
(a) Income. - It must be sufficient, based on acceptable
standards, to provide for all essential government
facilities and services and special functions
commensurate with the size of its population, as
expected of the local government unit concerned;
(b) Population. - It shall be determined as the total
number of inhabitants within the territorial
jurisdiction of the local government unit concerned;
and
(c) Land Area. - It must be contiguous, unless it
comprises two (2) or more islands or is separated by a
local government unit independent of the others;
properly identified by metes and bounds with
technical descriptions; and sufficient to provide for
such basic services and facilities to meet the
requirements of its populace.
Compliance with the foregoing indicators shall be
attested to by the Department of Finance (DOF), the
National Statistics Office (NSO), and the Lands
Management Bureau (LMB) of the Department of
Environment and Natural Resources (DENR).
SECTION 8. Division and Merger. - Division and

merger of existing local government units shall
comply with the same requirements herein prescribed
for their creation: Provided, however, That such
division shall not reduce the income, population, or
land area of the local government unit or units
concerned to less than the minimum requirements
prescribed in this Code: Provided, further, That the
income classification of the original local government
unit or units shall not fall below its current income
classification prior to such division.
The income classification of local government units
shall be updated within six (6) months from the
effectivity of this Code to reflect the changes in their
financial position resulting from the increased
revenues as provided herein.
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 I of this Code,
as certified by the national agencies mentioned in
Section 7 hereof to Congress or to the sanggunian
concerned, as the case may be.
The law or ordinance abolishing a local government
unit shall specify the province, city, municipality, or
barangay with which the local government unit
sought to be abolished will be incorporated or
merged.
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.
Creation of Local Government Units

Each local government unit has specific requirements when it
comes to its creation. Barangays are also governed by Sections 385
and 386 of the Code:
SECTION 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.
SECTION 386. Requisites for Creation. - (a) A
barangay may be 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
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.
A barangay may be created by ordinance as well. Their

creation does not need to satisfy an income requirement.
There is a provision in the Indigenous Peoples' Rights Act 40
on the creation of barangays which provides that:

The creation of municipalities is, in turn, governed by the

following provisions:
SECTION 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.
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
(P2,500,000,00) for the last two (2) consecutive years
based on the 1991 constant prices; a population of at
least twenty-five thousand (25,000) inhabitants as
certified by the National Statistics Office; and a
contiguous territory of at least fifty (50) square
kilometers as certified by the Lands Management
Bureau: Provided, That the creation thereof shall not
reduce the land area, population or income of the
original municipality or municipalities at the time of
said creation to less than the minimum requirements
prescribed herein.
(b) The territorial jurisdiction of a newly-created
municipality shall be properly identified by metes and
bounds. The requirement on land area shall not apply
where the municipality proposed to be created is
composed of one (1) or more islands. The territory
need not be contiguous if it comprises two (2) or more
islands.
(c) The average annual income shall include the
income accruing to the general fund of the
municipality concerned, exclusive of special funds,

transfers and non-recurring income.
(d) Municipalities existing as of the date of the
effectivity of this Code shall continue to exist and
operate as such. Existing municipal districts organized
pursuant to presidential issuances or executive orders
and which have their respective set of elective
municipal officials holding office at the time of the
effectivity of this Code shall henceforth be considered
as regular municipalities.
Sections 449 and 450 of the Local Government Code govern

the creation of cities. They provide as follows:
SECTION 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.
The income requirement for the creation of cities was

increased from 20,000,000 to 100,000,000 pesos for the last two
consecutive years. This amendment was done through Republic Act
No. 9009 (2001).
Section 450. Requisites for Creation. - (a) A

municipality or a cluster of barangays may be
converted into a component city if it has a locally
generated average annual income, as certified by the
Department of Finance, of at least One hundred
million pesos (P100,000,000.00) for the last two (2)
consecutive years based on 2000 constant prices, and if

it has either of the following requisites:
(i) a contiguous territory of at least one
hundred (10W) square kilometers, as
certified by the Land Management
Bureau; or
(ii) a population of not less than one
hundred fifty thousand (150,000)
inhabitants, as certified by the National
Statistics Office.
The creation thereof shall riot 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.
income accruing to the general fund, exclusive of
special funds, transfers, and non-recurring income." 41
41Cities have various classifications as the fOllowing provisions show:

SECTION 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
diartets prohibit their voters from voting for provincial elective
offidalks Independent component cities shall be independent of
he province.
SECTION 452. Highly Urbanized Cities. - (a) Cities with a
minimum population of two hundred thousand (200,000)
Ihabitants, as certified by the National Statistics Office, and
Within the latest annual income of at least Fifty Million Pesos
(P50,000,000.00) based on 1991 constant prices, as certified by the
city treasurer, shall be classified as highly urbanized cities.
The rules for the creation of provinces are found in Sections

460 and 461i
SECTION 460. Manner of Creation. - A province may

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
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.
SECTION 461. Requisitesfor 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 (P20,000,000.00) based on
1991 constant prices and either of the following
requisites:
(b) Cities which do not meet the above requirements shall be

cohsidered 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 respedtive chatters, 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-utbaftized after the ratification of the Constitution and
before the effectivity of this Code, shall continue to exercise such
right
SECTION 453. Duty to Declare Highly Urbanized Status. - It shall
be the duty of the' President to declare a city as highly urbanized
within thirty (30) days after it shall have met the minimum
requirements prescribed in the immediately preceding section,
upon proper application therefor and ratification in a plebiscite by
the qualified voters therein.
(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
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 mere islands or is separated by a chartered
city or cities which do not contribute to the income of
the province.
special funds, trust funds, transfers and non-recurring
income.
The ARMM Regional Assembly Cannot Create a Province

In Sema v. COMELEC,42the Supreme Court held that there is
neither an express prohibition nor an express grant of authority in
the Constitution for Congress to delegate the power to create local
government units to regional or local legislative bodies. However,
under its plenary legislative powers, Congress can delegate to local
legislative bodies the power to create local government units, subject
to reasonable standards, provided no conflict arises with any
provision of the Constitution. In fact, Congress has delegated to
provincial boards and city and municipal councils the power to
create barangays within their jurisdiction, subject to compliance with
the criteria established in the Local Government Code and the
plebiscite requirement in Section 10, Article X of the Constitution.
42
Sema v. Commission on Elections, G.R. No. 177597, July 16,2005.
However, under the Local Government Code, "only.. .an Act of

Congress" can create provinces, cities or municipalities.
In that case, the Supreme Court had to determine the validity
of Article VI, Section 19 of Republic Act No. 9054, which delegated
the power to create provinces, cities, municipalities and barangays
within the ARMM to the ARMM Regional Assembly. Congress
delegated the power under its plenary legislative powers because the
power to create local government units is not one of the express
legislative powers granted by the Constitution to regional legislative
bodies.
In resolving the issue, the Court pointed out that Section 5 (3),
Article VI of the Constitution provides, "[e]ach city with a population
of at least two hundred fifty thousand, or each province, shall have at
least one representative [in the House of Representatives]." Similarly,
Section 3 of the Ordinance appended to the Constitution provides,
"[any province that may hereafter be created, or any city whose
population may hereafter increase to more than two hundred fifty
thousand shall be entitled in the immediately following election to at
least one Member...."
A province cannot be created without a legislative district
because it will violate Section 5 (3), Article VI of the Constitution as
well as Section 3 of the Ordinance appended to the Constitution. A
city with a population of 250,000 or more also cannot be created
without a legislative district. It follows that the power to create a
province, or a city with a population of 250,000 or more, also requires
the power to create a legislative district. Even the creation of a city
with a population of less than 250,000 involves the power to create a
legislative district because once the city's population reaches 250,000,
the city automatically becomes entitled to one representative. Thus,
the power to create a province or city inherently involves the power
to create a legislative district. But Congress cannot validly delegate to
the ARMM Regional Assembly the power to create legislative
districts for the House of Representatives, so the ARMM cannot
legally create a province.
The Local Government Code is Not Necessary for the Creation of Local
Governments
In Torralbav. Sibagat,43 the issue was whether Batas Pambansa
Big. 56 (creating the municipality of Sibagat) violated the 1973
Constitution.44 The argument against the validity of the creation of
the municipality rested on the fact that the Local Government Code
came into being only on February 10, 1983. Thus, when Batas
Pambansa Blg. 56 was enacted, the code was not yet in existence. The
Court upheld Batas Pambansa Big. 56, saying that:
The absence of the Local Government Code at the time
of its enactment did not curtail nor was it intended to
cripple legislative competence to create municipal
corporations. Section 3, Article XI of the 1973
Constitution does not proscribe nor prohibit the
modification of territorial and political subdivisions
before the enactment of the Local Government Code.
It contains no requirement that the Local Government
Code is a condition sine qua non for the creation of a
municipality, in much the same way that the creation
of a new municipality does not preclude the
enactment of a Local Government Code. What the
Constitutional provision means is that once said Code
is enacted, the creation, modification or dissolution of
local government units should conform with the
criteria thus laid down. In the interregnum, before the
enactment of such Code, the legislative power remains
plenary except that the creation of the new local
government unit should be approved by the people
concerned in a plebiscite called for the purpose.
43 G.R. No. L-59180, January 29,1987.

4CoNsr. (1973), Art. XI, S 3.
Section 3. No province, city, municipality, or barrio may be
created, divided, ierged, abolished, or its boundary substantially
altered, except in accordance with the criteria established in the
Local Government Code, and subject to the approval by a majority
of the votes cast in a plebiscite in the unit or units affected.
The Court noted that a plebisdte was conducted and the

people of the unit/s affected endorsed and approved the creation of
the new local government unit. The officials of the new municipality
have effectively taken their oaths of office and are performing their
functions. A dejure entity has thus been created.
The Court stressed that the power to create a municipal
corporation is essentially a legislative power. In the absence of any
constitutional limitations, a legislative body may create any
corporation it deems essential for the more efficient administration of
government.
Creation of Local Governments Cannot Be Done by the Executive Branch

Being a legislative function, the executive branch may not
create local government units. In Pelaez v. Auditor General,45 the
Supreme Court struck down the creation of 33 municipalities
purportedly made under Section 68 of the Revised Administrative
Code of 1917. The challenge to the validity of the creation of these
municipalities was based on the premise that Section 68 of the
Revised Administrative Code was impliedly repealed by Republic
Act No. 2370 (1960). It was also argued that the said provision of the
Revised Administrative Code constituted an undue delegation of
legislative power. Under Republic Act No. 2370, barrios may "not be
created or their boundaries altered nor their names changed" except
by Act of Congress or of the corresponding provincial board "upon
petition of a majority of the voters in the areas affected" and the
"recommendation of the council of the municipality or municipalities
in which the proposed barrio is situated." The Court agreed and held
that "the statutory denial of the presidential authority to create a new
barrio implies a negation of the bigger power to create
municipalities, each of which consists of several barrios."
Moreover, Section 68 of the Revised Administrative Code did
not meet the requirements for a valid delegation of the legislative
power. It did not state any policy to be implemented by the President
nor give a standard sufficiently precise to guide the President.
4G.R. No. L-23825, December 24,1965.

Significantly, the Court pointed out that under the

Constitution, "[t]he President shall have control of all executive
departments, bureaus or offices, exercise general supervision over all
local governments as may be provided by law, and take care that the
laws be faithfully executed." 46 The Court explained that under this
provision, the President is denied the power of control over local
governments. According to the Court:
Upon the other hand, if the President could create a
municipality, he could, in effect, remove any of its
officials, by creating a new municipality and including
therein the barrio in which the official concerned
resides, for his office would thereby become vacant.
Thus, by merely brandishing the power to create a
new municipality (if he had it), without actually
creating it, he could compel local officials to submit to
his dictation, thereby, in effect, exercising over them
the power of control denied to him by the
Constitution.
In short, even if there was no undue delegation of legislative
powers, Section 68 of the Revised Administrative Code of 1917 must
be deemed repealed by the adoption of the Constitution in 1935.
De Facto Corporations
Following the decision in Pelaez, other municipalities created
by executive action were brought under judicial scrutiny. In
Municipality of Malabangv. Benito,4 ' it was argued that Pelaez should
not be applied to nullify the creation of the municipality of
Balabagan because the said municipality was a de facto corporation
because it was "organized under color of a statute before this was
declared unconstitutional, its officers having been either elected or
appointed, and the municipality itself having discharged its
corporate functions for the past five years preceding the institution of
this action."
46CONST. (1935), Art. VII, § 10 (1).

47 G.R. No. L-28113, March 28,1969.
The Supreme Court disagreed, holding that in cases where de

facto corporations were recognized, the decisions rested on the
consideration "that there was some other valid law giving corporate
vitality to the organization." But the mere fact that Balabagan was
organized at a time when the statute had not been invalidated
"cannot conceivably make it a defacto corporation, as, independently
of the Administrative Code provision in question, there is no other
valid statute to give color of authority to its creation."
Despite the fact that the creation of local governments is
primarily a legislative function, it does not mean that all the local
governments created by executive action are void. For example,
former President Carlos P. Garcia issued Executive Order No. 353
creating the municipal district of San Andres, Quezon, by
segregating several barrios from the municipality of San Narciso.
On June 5, 1989, the Municipality of San Narciso filed a
petition for quo warranto with the Regional Trial Court in Gumaca,
Quezon, against the officials of the Municipality of San Andres,
seeking the declaration of nullity of Executive Order No. 353.
Invoking the ruling of this Court in Pelaez, San Narciso claimed that
Executive Order No. 353 was a usurpation of the inherent powers of
the legislature and in violation of the constitutional principle of
separation of powers. San Narciso argued that the officials of the
Municipality of San Andres had no right to exercise the duties and
functions of their respective offices that rightfully belonged to the
corresponding officials of the Municipality of San Narciso.
In their answer, the Municipality of San Andres argued that
since it had been in existence since 1959, its corporate personality
could no longer be assailed. It later fied a motion to dismiss alleging
that the case had become moot citing Section 442 (d) of the Local
Government Code of 1991.48
48 Republic Act No. 7160 (1991), § 442 (d), in part, provides:

Section 442. Requisitesfor Creation.
(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.
The lower court dismissed the petition sayipg that whatever

defects present in the creation of San Andres were cured by Section
442 (d) of the Local Government Code, The Supreme Court affirmed
the decision of the lower court saying that:
Granting the Executive Order No. 353 was a complete
nullity for being the result of an unconstitutional
delegation of legislative power, the peculiar
circumstances obtaining in this case hardly could offer
a choice other than to consider the Municipality of San
Andres to have at least attained a status uniquely of its
own closely approximating, if not in fact attaining,
that of a de facto municipal corporation. Conventional
wisdom cannot allow it to be otherwise. Created in
1959 by virtue of Executive Order No. 353, the
Municipality of San Andres had been in existence for
more than six years when, on 24 December 1965,
Pelaez v. Auditor General was promulgated. The ruling
could have sounded the call for a similar declaration
of the unconstitutionality of Executive Order No. 353
but it was not to be the case. On the contrary, certain
governmental acts all pointed to the State's
recognition of the continued existence of the
Municipality of San Andres. Thus, after more than five
years as a municipal district, Executive Order No. 174
classified the Municipality of San Andres as a fifth
class municipality after having surpassed the income
requirement laid out in Republic Act No. 1515. Section
31 of Batas Pambansa Blg. 129, otherwise known as
the Judiciary Reorganization Act of 1980, constituted
as municipal circuits, in the establishment of
Municipal Circuit Trial Courts in the country, certain
municipalities that comprised the municipal circuits
organized under Administrative Order No. 33, dated
13 June 1978, issued by this Court pursuant to
Presidential Decree No. 537. Under this administrative
order, the Municipality of San Andres had been
covered by the 10th Municipal Circuit Court of San
Francisco-San Andres for the province of Quezon.
Moreover, the municipality in this case is not only defacto, it

was already de jure. The Court explained that under the Ordinance
appended to the 1987 Constitution, which apportioned the seats of
the House of Representatives, the Municipality of San Andres has
been considered to be one of the twelve municipalities composing the
Third District of the province of Quezon.
Equally significant, said the Court, is Section 442 (d) of the
Local Government Code which provides that municipal districts
"organized pursuant to presidential issuances or executive orders
and which have their respective sets of elective municipal officials
holding office at the time of the effectivity of (the) Code shall
henceforth be considered as regular municipalities." The Court
pointed out that this was a curative law aimed at giving "validity to
acts done that would have been invalid under existing laws, as if
existing laws have been complied with."
The ruling was reiterated in the case of Candijay v. Court of
Appeals.49 There, the Court found that the municipality of Alicia's
situation is strikingly similar to that of the municipality of San
Andres. Alicia was created by virtue of Executive Order No. 265 in
1949 and had been in existence for sixteen years when Pelaez was
promulgated. Various governmental acts all indicate the State's
recognition and acknowledgment its existence. For instance, under
Administrative Order No. 33, the Municipality of Alicia was covered
by the 7th Municipal Circuit Court of Alicia-Mabini for the province
of Bohol. Likewise, under the Ordinance appended to the 1987
Constitution, the Municipality of Alicia is one of twenty
municipalities comprising the Third District of Bohol.
Alicia also benefited from Section 442 (d) of the Local
Government Code, and should be considered as a regular de jure
municipality.
In Municipalityof Jimenez v. Baz,50 the Supreme Court resolved
the issue of whether Section 442 (d) of the Code is unconstitutional.
In that case, the validity of the creation of the municipality of
Sinacaban in Misamis Occidental was challenged on the same
grounds raised in San Narciso.
49 G.R. No. 116702, December 28,1995.

50 G.R. No. 105746, December 2,1996.
The Court held that while Pelaez is good law, the Court has
since held that where a municipality created as such by executive
order is later impliedly recognized and its acts are accorded legal
validity, its creation can no longer be questioned. Citing San Narciso,
the Court also upheld the creation of Sinacaban:
Here, the same factors are present so as to confer on
Sinacaban the status of at least a de facto municipal
corporation in the sense that its legal existence has
been recognized and acquiesced publicly and
officially. Sinacaban had been in existence for sixteen
years when Pelaez v. Auditor General was decided on
December 24, 1965. Yet the validity of E.O. No. 258
creating it had never been questioned. Created in
1949, it was only 40 years later that its existence was
questioned and only because it had laid claim to an
area that apparently is desired for its revenue. This
fact must be underscored because under Rule 66, §16
of the Rules of Court, a quo warranto suit against a
corporation for forfeiture of its charter must be
commenced within five (5) years from the time the act
complained of was done or committed. On the
contrary, the State and even the Municipality of
Jimenez itself have recognized Sinacaban's corporate
existence. Under Administrative Order No. 33 dated
June 13, 1978 of this Court, as reiterated by §31 of the
Judiciary Reorganization Act of 1980 (B.P. Big. 129),
Sinacaban is constituted part of a municipal circuit for
purposes of the establishment of Municipal Circuit
Trial Courts in the country. For its part, Jimenez had
earlier recognized Sinacaban in 1950 by entering into
an agreement with it regarding their common
boundary. The agreement was embodied in
Resolution No. 77 of the Provincial Board of Misamis
Occidental.
Sinacaban attained de jure status by virtue of the Ordinance
appended to the 1987 Constitution, apportioning legislative districts
throughout the country, which considered Sinacaban part of the
Second District of Misamis Occidental. Moreover, following the
ruling in Municipality of San Narciso, Section 442 (d) of the Local

Government Code of 1991 must be deemed to have cured any defect
in the creation of Sinacaban.
Jimenez claimed, however, that Section 442 (d) of the Local
Government Code is invalid, since it does not conform to the
constitutional and statutory requirements for the holding of
plebiscites in the creation of new municipalities. The Court held that
Sinacaban is not subject to the plebiscite requirement and that "the
requirement applies only to new municipalities created for the first
time under the Constitution." The Court added that the requirement
of plebiscite was originally contained in Article X, Section 3 of the
1973 Constitution which took effect on January 17, 1973 and "[i]t
cannot, therefore, be applied to municipal corporations created
before, such as the Municipality of Sinacaban in the case at bar."
In another case, the Municipality of Andong in Lanao del Sur
argued that it should be recognized as a de facto municipal
corporation. The Court refused to do so and said that the histories of
the municipalities of San Andres, Alicia and Sinacaban differed from
Andong's. The executive order creating Andong was expressly
annulled by order of the Court in 1965. Court decisions cannot lose
their efficacy due to the sheer defiance by the parties aggrieved.
Moreover, Andong did not meet the requisites of Section 442
(d) of the Local Government Code. Section 442 (d) requires that for
the municipality created by executive order to receive recognition,
they must "have their respective set of elective municipal officials
holding office at the time of the effectivity of [the Local Government]
Code." Camid admits that Andong has never elected its municipal
officers at all. The failure to appropriate funds for Andong and the
absence of elections in the municipality in the last four decades are
eloquent indicia of the non-recognition by the State of the existence
of the town.
Also, the Ordinance appended to the 1987 Constitution
(which was relied upon in Jimenez and San Narciso) does not list
Andong among the municipalities of Lanao del Sur, or of any other
province for that matter.
51 Camid v. The Office of the President, G.R. No. 161414, January 17,2005.
40 Local Government Law and Jurisptudence
The Court explained that Section 442 (d) of the Local

Government Code does not serve to affirm or reconstitute the
judicially dissolved municipalities such as Andong, which had been
previously created by presidential issuances or executive orders. The
provision affirms the legal personalities of municipalities which were
created using an infirm legal basis, yet were fortunate enough not to
have been judicially annulled. The municipalities judicially dissolved
in cases such as Pelaez and Malabang remain Inexistent, unless
recreated through legislative enactments.
The Plebiscite
The minimum requirements for income, population and land
area are designed to achieve an economic purpose. They are to be
based on verified indicators which "shall be attested by the
Department of Finance, the National Statistics Office, and the Lands
Management Bureau of the Department of Environment a'nd Natural
Resources." 2 In contrast, the plebiscite is required to achieve a
political purpose - to use the people's voice as a check against the
political practice of gerrymandering. According to the Court, there is
no better check against this excess committed by the political
representatives of the people themselves than the exercise of direct
people power.0
Plebiscite Not Required Priorto 1975 Constitution

In Jimenez v. BazR Section 442 (d) of the Code was challenged
as unconstitutional on the ground that it does not conform to the
constitutional and statutory requirements for the holding of
plebiscites in the creation of new municipalities. The Court disagreed
and said that since Sinacaban had attained defacto status at the time
the 1987 Constitution took effect on February 2, 1987, it is not subject
to the plebiscite requirement. This plebiscite requirement applies
only to new municipalities created for the first time under the
Constitution. The requirement of plebiscite was originally contained
52
Miranda v. Aguirre, G.R. No. 133064, September 16,1999.
B Miranda v. Aguirre, G.R No. 133064, September 16,1999.
54 G.R. No. 105746, December 2,1996.
in Article Xl, Section 3 of the previous Constitution which took effect

on January 17, 1973. It cannot, therefore, be applied to municipal
corporations created before said date.
Wo Participatesin the Plebiscite?

In Padilla v. COMELEC,0s the Court attempted to clarfy who
should participate in a plebiscite for the creation of a local
government unit. The COMELEC in that case promulgated
Resolution No. 2312,56 mandating that a plebiscite shall be held on
December 15, 1991 in the areas or units affected, namely the
barangays comprising the proposed Municipality of Tulay-Na-Lupa
and the remaiung areas of the mother Municipality of Labo,
Camarines Norte.
In the plebiscite held on December 15, 1991 throughout the
Municipality of Labo, only 2,890 votes favored its creation, while
3,439 voters voted against the creation of the Municipality of Tulay-
Na-Lupa. The Plebiscite Board of Canvassers declared the rejection
and disapproval of the independent Municipality of Tulay-Na-Lupa
by a majority of voters.
The Governor of Cama"rines Norte tried to have the plebiscite
set aside, arguing that the plebiscite was a complete failure and that
the results obtained were invalid and illegal because the plebiscite, as
mandated by the COMELEC, should have been conducted only in
the political unit/s affected-the !2 barangays comprising the new
Municipality of Tulay-Na-Lupa and the plebiscite should not have
included the remaining area of the mother unit of the Municipality of
Labo, Camarines Norte. He argued that under provisions of the 1987
Constitution, whenever a local unit is to be segregated from a parent
unit, only the voters of the unit to be segregated should be included
in the plebiscite. He based his argument on the fact that the present
Constitution deleted the phrase "unit or."
The Supreme Court disagreed. The Court examined the
records of the Constitutional Commission and held;
55 G.R. No. 103328, October 19,1992.

56
Prsunt to Republic Act No. 7155 (1991).
It stands to reason that when the law states that the

plebiscite shall be conducted "in the political units
directly affected," it means that residents of the
political entity who would be economically dislocated
by the separation of a portion thereof have a right to
vote in said plebiscite. Evidently, what is
contemplated by the phrase "political units directly
affected," is the plurality of political units which
would participate in the plebiscite. Logically, those to
be included in such political areas are the inhabitants
of the 12 barangays of the proposed Municipality of
Tulay-Na-Lupa as well as those living in the parent
Municipality of Labo, Camarines Norte. Thus, we
conclude that respondent COMELEC did not commit
grave abuse of discretion in promulgating Resolution
No. 2312.
In a case involving the conversion of a municipality into a
highly urbanized city, neighboring residents are not required to vote
in the plebiscite. The people of San Juan need not participate in the
plebiscite on Republic Act No. 7675 since the principal subject
involved in the plebiscite was the conversion of Mandaluyong into a
highly urbanized city. They were properly excluded from the said
plebiscite as they had nothing to do with the change of status of
neighboring Mandaluyong. 57
In a case involving the conversion of a component city into a
highly urbanized city, the Supreme Court held that all the qualified
voters of the province should participate in the plebiscite. In that
case, the Supreme Court resolved the apparent conflict between
Section 453 of the Local Government Code and the Constitution.
According to the Court:
Pursuant to established jurisprudence, the phrase "by
the qualified voters therein" in Sec. 453 should be
construed in a manner that will avoid conflict with the
Constitution. If one takes the plain meaning of the
phrase in relation to the declaration by the President
that a city is an HUC, then, Sec. 453 of the LGC will
Tobias v. Abalos, G.R. Nos. 114783, December 8,1994.

clash with the explicit provision under Sec. 10, Art. X

that the voters in the "political units directly affected"
shall participate in the plebiscite. Such construction
should be avoided in view of the supremacy of the
Constitution. Thus, the Court treats the phrase "by the
qualified voters therein" in Sec. 453 to mean the
qualified voters not only in the city proposed to be
converted to an HUC but also the voters of the
political units directly affected by such conversion in
order to harmonize Sec. 453 with Sec. 10, Art. X of the
Constitution.
The Court explained that a component city's conversion into
a highly urbanized city will have significant economic and political
impacts. The income criterion for a component city to be converted
into a highly urbanized city is higher than the income requirement
for the creation of a province. The ensuing reduction in income upon
separation would leave a crippling effect on the province's
operations as there would be less funding to finance infrastructure
projects and to defray overhead costs. Moreover, the quality of
services being offered by the province may suffer because of looming
austerity measures.5
The Court also pointed out that the provincial government
will no longer be responsible for delivering basic services for the city
residents' benefit. Ordinances and resolutions passed by the
provincial council will no longer cover the city. Projects by the
provincial government to be executed in the city will also be
suspended if not scrapped to prevent the local government unit from
performing functions outside the bounds of its territorial jurisdiction,
and from expending its limited resources for ventures that do not
cater to its constituents.59 These changes in the economic and political
rights of the province of Nueva Ecija and its residents, the entire
province certainly stands to be directly affected by the conversion of
Cabanatuan City into a highly urbanized city.
58 Umali v. Commission on Elections, G.R. No. 203974, April 22,2014.

5
9 Umali v. Commission on Elections, G.R. No. 203974, April 22, 2014.
When a Plebisciteis Held

It would be more prudent to hold the conduct of the
plebiscite in abeyance, pending final determination of whether the
entire area of the proposed barangays is truly within the territorial
jurisdiction of a city.60
In Cawaling v. COMELEC,61 the validity of the plebiscite held
for the approval of the creation of the City of Sorsogon was
challenged on the ground that the plebiscite required by Republic
Act No. 8806 should be conducted within 120 days from the
"approval" of said Act per express provision of Section 54.62
The challenge in this case was that the December 16, 2000
plebiscite was conducted one day late from the expiration of the 120-
day period after the approval of the Act. This 120-day period having
expired without a plebiscite being conducted, the Act itself expired,
and could no longer be ratified and approved in the plebiscite held
on December 16,2000.
The COMELEC asserted that it scheduled the plebiscite on
December 16, 2000 based on the date of the effectivity of Section 65 of
the Act.63 The law was first published in the August 25, 2000 issue of
TODAY, a newspaper of general circulation. Then on September 1,
2000, it was published in a newspaper of local circulation in the
Province of Sorsogon. Thus, the publication of the law was
completed on September 1, 2000, which date, according to the
COMELEC, should be the reckoning point in determining the 120-
day period within which to conduct the plebiscite, not from the date
6
oPasig v. Commission on Elections, G.R. No. 125646, September 19,1999.
61G.R. Nos. 146319 and 146342, October 26,2001.
2Republic Act No. 8806 (2000), § 54 provides:
SECTION 54. Plebiscite. - The City of Sorsogon shall acquire
corporate existence upon the ratification of its creation by a
majority of the votes cast by the qualified voters in a plebiscite to
be conducted in the present municipalities of Bacon and Sorsogon
within one hundred twenty (120) days from the approval of this
Act.
63 Republic Act No. 8806 (2000), § 65 provides:
SECTION 65. Effectivity. - This Act shall take effect upon its
publication in at least two (2) newspapers of general and local
circulation.
of its approval (August 16, 2000) when the law had not yet been
published. The COMELEC argued that since publication is
indispensable for the effectivity of a law, it could only schedule the
plebiscite after the Act took effect.
The Supreme Court agreed with the COMELEC. It explained
that under Section 10 of the Code, the plebiscite "shall be conducted
by the Commission on Elections within 120 days from the date of the
effectivity of the law or ordinance affecting such action, unless said
law or ordinance fixes another date."
The last sentence of Section 10 of the Code mandates that the
plebiscite shall be conducted within 120 days from the date of the
effectivity of the law, not from its approval. While the same
provision allows a law or ordinance to fix "another date" for
conducting a plebiscite, such date must still be reckoned from the
date of the effectivity of the law. Consequently, the word "approval"
in Section 54 of R.A. No. 8806, which should be read together with
Section 65 (effectivity of the Act) thereof, could only mean
"effectivity" as used and contemplated in Section 10 of the Code. To
give Section 54 a literal and strict interpretation would in effect make
the Act effective even before its publication.
COMELEC may Schedule Plebiscite Beyond the Date Prescribedby Law

The Constitution recognizes that the power to fix the date of
elections is legislative in nature. The issue came up in Cagas v.
Commission on Elections 64 because Section 46 of Republic Act No.
10360 provided that the plebiscite for the creation of the province of
Davao Occidental be held within 60 days from the effectivity of
Republic Act No. 10360, or until April 6, 2013. The Petitioner claimed
that the period "60 days from the effectivity" was absolute and
mandatory and that the COMELEC had no legal basis to hold a
plebiscite on October 28, 2013.
The Court surveyed prior decisions showing that it upheld
the COMELEC's authority to fix other dates for a plebiscite, as in
special elections, to enable the people to exercise their right of
suffrage. The Court said that COMELEC has residual power to
" G.R. No. 209185, October ?5, 2013.

conduct a plebiscite even beyond the deadline prescribed by law. In

Cagas, the Court said that October 28, 2013 was reasonably close to
April 6, 2013, and that there is no reason why the plebiscite should
not proceed as scheduled by the COMELEC. The Court ended by
saying that in election law, "the right of suffrage should prevail over
mere scheduling mishaps in holding elections or plebiscites." The
Court found it unacceptable to utilize more taxpayers' time and
money by preventing the COMELEC from holding the plebiscite as
scheduled.
Conversionfrom an Independent City to a Component City

According to Section 453 of the Local Government Code, the
conversion of a component city into a highly urbanized city requires
approval through a plebiscite:
SECTION 453. Duty to Declare Highly Urbanized Status.
- It shall be the duty of the President to declare a city
as highly urbanized within thirty (30) days after it
shall have met the minimum requirements prescribed
in the immediately preceding section, 65 upon proper
65
Section 452 of the Code provides:
SECTION 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
within the latest annual income of at least Fifty Million Pesos
(P50,000,000.00) 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. Ifa 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
application therefor and ratification in a plebiscite by

In Umali v. Commission on Elections,66 the Supreme Court held
that when a component city like Cabanatuan City is converted into a
highly urbanized city, all the qualified registered voters of the entire
province of Nueva Ecija can participate in the plebiscite.
The Court also held that the phrase "substantial alteration of
boundaries" should not be limited to the metes and bounds of the
local government but also includes its political boundaries. 67
On May 5, 1994, Republic Act No. 7720, which converted the
municipality of Santiago, Isabela into an independent component
city, was signed into law. The conversion was ratified by the
residents of Santiago in a plebiscite on July 4, 1994. On February 14,
1998, Congress enacted Republic Act No. 8528, which amended
Republic Act No. 7720. Among others, it changed the status of
Santiago from an independent component city to a component city.68
as highly-urbanized after the ratification of the Constitution and

before the effectivity of this Code, shall continue to exercise such
66
right.
Umali v. Commission on Elections, G.R. No. 203974, April 22,2014.
67
Umali v. Commission on Elections, G.R. No. 203974, April 22,2014.
6 Republic Act No. 8528 (1998) provides:
AN ACT AMENDING CERTAIN SECTIONS OF REPUBLIC ACT

NUMBERED 7720 - AN ACT CONVERTING THE
MUNICIPALITY OF SANTIAGO INTO AN INDEPENDENT
COMtONENT CITY TO BE KNOWN AS THE CITY OF
SANTIAGO.
Be it enacted by the Senate and House of Representatives of the

Philippines in Congress assembled:
SECTION 1. Section 2 of Republic Act No. 7720 is hereby amended

by deleting the words "an independent" thereon so that said
Section will read as follows:
SECTION 2. The City of Santiago. - The
Municipality of Santiago shall be converted into
a component city to be known as the City of
Santiago, hereinafter referred to as the City,
which shall comprise of the present territory of
the Municipality of Santiago, Isabela. The
territorial jurisdiction of the City shall be within
The main issue in Mirandq v. Aguirre69 was whether Republic

Act No. 8528 was unconstitutional for its failure to provide that the
conversion of the city of Santiago from an independent component
city to a component city should be submitted to its people in a
plebiscite. The Supreme Court ruled that the Constitution requires a
plebiscite.
The Court cited Section 10, Article X of the 1987 Constitution
which provides:
Mpmunicipality
No nragay of
bodIOry substantially altered xcet . in ereby

awith th iterih etablise in t cal gvettet
d
cod e CTIN5ect to approva l Gaajorntyof
Vievot
cast ina plebscite
rinia epoiti n irec
the present metes and bounds of the

Munvicipality of Santiago.'
SEC11ON 2. Section 51 of Republic Act No. 7720 is hereby
amended deleting the entire section and in its stead substitute the
following:
SECION 51. Election ofProvincial Governor, Vice-
Governor, Sangguniang PanlawiganMembers, and
any Elective Provincial Position for the Province of
Isabela. - The voters of the City of Santiago shall
be qualified to vote in the elections of the
Provincial Governor, Vice-Goveror,
SangguniaRing anlalawigaln members and other
elective provincial positions of the Province of
Isabela, and any such qualified voter can be a
candidate for such provincial positions an~d any
elective provincial office!'
SECrION 3. Repealing Clause. - All existing laws or parts thereof
inconsistent with the provisions of this Act are hereby repealed or
modified accordingly.
SECTION 4. Effectivity. - This Act shall take effect upon its
approval.
SG.R. No. 133064, September 16,1999,
This constitutional requirement is reiterated in Section 10 of

the Local Government Code:
SECTION 10. No province, city, municipality, or

barangay may be created, divided, merged, abolished,
or its boundary substantially altered except in
accordance with the criteria established in the local
government code and subject to approval by a
majority of the votes cast in a plebiscite in the political
units directly affected.
To resolve the dispute, the Court determined whether the

downgradingof an independent component city into a component city
falls within the meaning of creation, division, merger, abolition or
substantial alteration of boundaries of municipalities in accordance
with Section 10, Article X of the Constitution. The Court noted that
the said constitutional provision reveals that the creation, division,
merger, abolition or substantial alteration of boundaries of local
government units "involve a common denominator - material
change in the political and economic rights of the local government
units directly affected as well as the people therein." It is precisely for
this reason that the Constitution requires the approval of the people
"in the political units directly affected." The Court explained that
Section 10, Article X addressed the undesirable practice wherein local
government units were created, abolished, merged or divided on the
basis of the vagaries of politics and not of the Welfare of the people.
The consent of the people of the local government unit directly
affected was required to serve as a check to any exercise of legislative
power creating, dividing, abolishing, merging or altering the
boundaries of local governments. It is one instance where the people
in their sovereign capacity decide on a matter that affects them -
direct democracy of the people as opposed to democracy through
representatives.
There are many substantial changes that will result from the
downgrading of the city of Santiago from an independent component
city to a component city. For one, the independence of the city as a
political unit will be diminished. The city mayor will be placed under
the administrative supervision of the provincial governor. The

resolutions and ordinances of the city council of Santiago will have to
be reviewed by the Provincial Board of Isabela. Taxes that will be
collected by the city will now have to be shared with the province.
The majority opinion noted that when Republic Act No. 7720
upgraded the status of Santiago City from a municipality to an
independent component city, it required the approval of its people
thru a plebiscite. According to the majority, "there is neither rhyme
nor reason why this plebiscite should not be called to determine the
will of the people of Santiago City when R.A. No. 8528 downgrades
the status of their city." Indeed, there is more reason to consult the
people when a law substantially diminishes their right. Rule II,
Article 6, paragraph (f) (1) of the Implementing Rules and
Regulations of the Local Government Code is in accord with the
Constitution when it provides that:
The lebiscer 'n ceations, wethe upiwar or

~mererabolitioi, 'or-' substan~tial -alteration f
boundaries of LGUs shall take effect unless~ approvedl
'by amajoity of the votes cast in a mpbisciteralled for
the, purposveruidr
in the ects or affected. Theint
,plebiscte shallbe conducted by the Commission onop
MEections (COMELEC) ,withi on hndred twenty,,
,0120) days from the effectivity of the law or ordinances
,prescribinig such action,, unless said law or ordinance$
s er dte..
The rules cover all conversions, whether upward or

downward in character, so long as they result in a material change in
the local government unit directly affected, especially a change in the
political and economic rights of its people.
Effect of Conversionfrom Municipality to City on Term Limits

When a city is created out of a municipality, will the
incumbent mayor, who is about to complete three terms, be eligible
to run as the mayor of the newly created city? There are substantial
differences between a municipality and a city. For one, there is a
material change in the political and economic rights of the local
government unit when it is converted from a municipality to a city
and undoubtedly, these changes affect the people as well. This is the
reason why Section 10, Article X of the Constitution mandates that no
province, city, municipality, or barangay may be created, divided,
merged, abolished, or its boundary substantially altered, without the
approval by a majority of the votes cast in a plebiscite in the political
units directly affected.
To resolve the case, the Court looked at Sections 2 and 53 of
the Charter of the City of Digos, which read as follows:
hection 2 ote City of Digos -The Mutnicipalty ouf

tDigos shall beconver~ted into a component city to be
known as the City of Digos, hereinafter referred to as
the City, which shall compi1se the~present territory of
the Municipality of Digos Davao del Sur Province.
~The terriora jurisdiction of the City shall be within
-the~ present metes and bounds of the Municipality of
Section 53. Officials of tOw City of Digos. -The present

elective officials of the Municipality of Digos sial
continue to exercise
powers
their
and functions until
neweld and the duly-
elete
ofical sallhae lready qualified and
~assumd theiroffis..y..
The Court noted that the delineation of the metes and bounds
of the City of Digos did not change the land area previously covered
by the Municipality of Digos "even by an inch." The Court also noted
that the elective officials of the Municipality of Digos continued to
exercise their powers and functions until elections were held for the
new city officials.
While it is true that the new city acquired a new corporate

existence separate and distinct from that of the municipality, this
does not mean that for the purpose of applying the three-term limit,
the office of the municipal mayor would now be construed as a
different local government post from that of the office of the city
mayor. As the territorial jurisdiction of the City of Digos is the same
as that of the municipality, the inhabitants of the municipality are the
same as those in the city. These inhabitants are the same group of
voters who elected petitioner Latasa to be their municipal mayor for
three consecutive terms. These are also the same inhabitants over
whom he held power and authority as their chief executive for nine
years. 70
The Supreme Court applied this ruling in Laceda v. Limena,71
and held that the merger and conversion of Sorsogon and Bacon into
Sorsogon City does not mean that the office of Punong Barangay of
Barangay Panlayaan, Municipality of Sorsogon, would now be
construed as a different local government post from that of the office
of Punong Barangay of Barangay Panlayaan, Sorsogon City. Since the
territorial jurisdiction of Barangay Panlayaan, Sorsogon City is the
same as before the conversion, the inhabitants of the barangay are the
same voters who elected Laceda to be their Punong Barangay for
three consecutive terms and over whom Laceda held power and
authority as their Punong Barangay.
SECTION 7. Creation and Conversion. - As a general

rule, the creation of a local government unit or its
conversion from one level to another level shall be
based on verifiable indicators of viability and
projected capacity to provide services, to wit:
(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
70
Latasa v. Commission on Elections, G.R. No. 154829, December 10, 2003.
71G.R. No. 182867, November 25,2008.
of its population, as expected of the

local government unit concerned;
(b) Population. - It shall be
determined as the total number of
inhabitants within the territorial
jurisdiction of the local government
unit concerned; and
(c) Land Area. - It must be contiguous,
unless it comprises two or more islands
or is separated by a local government
unit independent of the others;
properly identified by metes and
bounds with technical descriptions; and
sufficient to provide for such basic
services and facilities to meet the
requirements of its populace.
Compliance with the foregoing indicators shall be
attested to by the Department of Finance (DOF), the
National Statistics Office (NSO), and the Lands
Management Bureau (LMB) of the Department of
Environment and Natural Resources (DENR).
In Cawaling v. COMELEC,72 the creation of the City of

Sorsogon was challenged on the ground that according to Section 450
(a) of the Local Government Code, a component city may be created
only by converting "a municipality or a cluster of barangays," not by
merging two municipalities, as per the provisions of Republic Act
No. 8806.
The Supreme Court disagreed. According to the Court, the
phrase "[a] municipality or a cluster of barangays may be converted
into a component city" is not a criterion, but is simply one of the
modes by which a city may be created. Section 10, Article X of the
Constitution allows the merger of local government units to create a
province, city, municipality or barangay in accordance with the
72G.R. Nos. 146319 and 14634Z October 26,2001.

criteria established by the Code. The Court also pointed to Section 8

of the Code which provides:

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 .....
According to the Court, the creation of an entirely new local

government unit through a division or a merger of existing local
government units is recognized under the Constitution, provided
that such merger or division shall comply with the requirements
prescribed by the Code.
The petitioner in that case also argued that there was no
reason for merging the Municipalities of Bacon and Sorsogon in
order to create the City of Sorsogon, considering that the
Municipality of Sorsogon alone already qualifies to be upgraded to a
component city. The Court, however, said that this argument goes
into the wisdom of the law - a matter which the Court is not
competent to rule upon.
Land Area
The charter creating the City of Makati did not identify the
land area of the proposed city - that is the law did not specify its
metes and bounds. Nonetheless, the Court upheld the creation of the
city in Marianov. Commission on Elections73
73
G.R. No. 118577, March 7,1995.
Section 2, Article I of Republic Act No. 7854 delineated the

land area of the proposed City of Makati, thus:
Se. . h C ft Mkati. The -Municipality pfL

a highly urbanized city
,Makati shall be
ito be known as the City ofInto
converted Makati, hereinafter referred'
1to as the City, .which shall comprise the presentl
Utrritory of the Municipality of Makati in Metropolitan,
!Manila Area over which it has jurisdiction bounded-
on the northeast by Pasig River and beyond by the'
City of MAndalyong and the Municipality of Pasig,
on the southeast by the nmunicipalities of Pateros and
Taguig; on the southwest by the City of Pasay and the
'Municipality of Taguig; and the northwest, by the City
of Manila.
The foregoing provision shall be without prejudice toi
the resolution by the appropriate agency or forum of
'existing boundary disputes or cases involving
questions of territorial jurisdiction between the City of-
Makati and the adjoiin loa government units. -'
The Court held that the determination of the territorial
boundaries of a local unit of government is important because it
defines the limits of the territorial jurisdiction of a local government
unit. A local government unit can legitimately exercise powers of
government only within the limits of its territorial jurisdiction.
Uncertainties in the boundaries will sow costly conflicts in the
exercise of governmental powers which ultimately will prejudice the
people's welfare. This is the evil sought to be avoided by requiring
the land area of local government units be spelled out in metes and
bounds, with technical descriptions.
However, the Court could not see how this evil can be
brought about by the description made in Section 2 of Republic Act
No. 7854, saying that the delineation "did not change even by an inch
the land area previously covered by Makati as a municipality" and
"did not add, subtract, divide, or multiply the established land area
of Makati."
The delineation of the boundaries of Makati City in Section 2

was justified, said the Court, because at the time that Congress was
crafting the law, "the territorial dispute between the municipalities of
Makati and Taguig over Fort Bonifacio was under court litigation."
Out of respect for the courts, Congress did not want "to foreclose the
dispute by making a legislative finding of fact which could decide
the issue." The Court also noted that Congress has also refrained
from using the metes and bounds description of land areas of other
local government units with unsettled boundary disputes. The Court
said:
Certainly, Congress did not intend that laws creating
new cities must contain therein detailed technical
descriptions similar to those appearing in Torrens
titles, as petitioners seem to imply. To require such
description in the law as a condition sine qua non for
its validity would be to defeat the very purpose which
the Local Government Code seeks to serve. The
manifest intent of the Code is to empower local
government units and to give them their rightful due.
It seeks to make local governments more responsive to
the needs of their constituents while at the same time
serving as a vital cog No. 7854 on the mere ground
that no cadastral type of description was used in the
law would serve the letter but defeat the spirit of the
Code. It then becomes a case of a master serving the
slave, instead of the other way around. This could not
be the intendment of the law.
Mariano, however, should not be interpreted to de-emphasize
the importance of precise boundaries for local governments. In Pasig
v. COMELEC,7 the Supreme Court ruled on whether plebiscites
scheduled for the creation of Barangays should be suspended or
cancelled in view of the pending boundary dispute between the two
local governments. In that case, the City Council of Pasig approved
Ordinance No. 21, Series of 1996, creating Barangay Karangalan in
Pasig City and setting the plebiscite on the creation of said barangay
for June 22, 1996. On September 9, 1996, the City of Pasig similarly
74 G.R Nos. 125646 and 128663, September 10,1999.

issued Ordinance No. 52, Series of 1996, creating Barangay Napico in

Pasig City and setting the plebiscite for this purpose for March 15,
1997.
The Supreme Court held that considering the expenses
entailed in the holding of plebiscites, it is far more prudent to hold in
abeyance the conduct of the same, pending final determination of
whether or not the entire area of the proposed barangays are truly
within the territorial jurisdiction of the City of Pasig. However, the
Court also nullified the results of the plebiscite for the creation of
barangay Napico.
The rules laid down by the Supreme Court in these cases are
not contradictory. In the conversion of a municipality to a city, the
land area of the local government unit will remain the same
regardless of the outcome of the boundary dispute. The same cannot
be said of the Pasig case, where there was always the possibility that
the newly created barangays would find themselves within the
territorial boundaries of Cainta.
Land Requirement Ignored

A controversial decision of the Supreme Court involved the
creation of the Province of Dinagat Islands. The challenge to the
creation of the province was based on the fact that it failed to comply
with the land area or the population requirements of the
Constitution. Dinagat has a total land area of only 802.12 square
kilometers, which is short of the statutory requirement of at least
2,000 square kilometers. Moreover, based on the NSO 2000 Census of
Population, the total population of the proposed Province of Dinagat
Islands is only 106,951, also short of the statutory requirement of at
least 250,000 inhabitants. After declaring Republic Act No. 9355 (An
Act Creating the Province of Dinagat Islands) unconstitutional in its
February 10, 2010 decision, and again in May 12, 2010, the Court
reversed itself saying:
It bears scrupulous notice that from the above cited
provisions, with respect to the creation of barangays,
land area is not a requisite indicator of viability.
However, with respect to the creation of
municipalities, component cities, and provinces, the
three (3) indicators of viability and projected capacity

to provide services, i.e., income, population, and land
area, are provided for.
But it must be pointed out that when the local
government unit to be created consists of one (1) or
more islands, it is exempt from the land area
requirement as expressly provided in Section 442 and
Section 450 of the LGC if the local government unit to
be created is a municipality or a component city,
respectively. This exemption is absent in the
enumeration of the requisites for the creation of a
province under Section 461 of the LGC, although it is
expressly stated under Article 9 (2) of the LGC-IRR.
There appears neither rhyme nor reason why this
exemption should apply to cities and municipalities,
but not to provinces. In fact, considering the physical
configuration of the Philippine archipelago, there is a
greater likelihood that islands or group of islands
would form part of the land area of a newly-created
province than in most cities or municipalities. It is,
therefore, logical to infer that the genuine legislative
policy decision was expressed in Section 442 (for
municipalities) and Section 450 (for component cities)
of the LGC, but was inadvertently omitted in Section
461 (for provinces). Thus, when the exemption was
expressly provided in Article 9 (2) of the LGC-IRR, the
inclusion was intended to correct the congressional
oversight in Section 461 of the LGC - and to reflect
the true legislative intent. It would, then, be in order
for the Court to uphold the validity of Article 9 (2) of
the LGC-IRR.75
75
Navarro v. Ermita, G.R. No. 180050, April 12, 2011. On September 11, 2012, the
Supreme Court denied a motion for reconsideration with finality over the strong
dissent of Justice Antonio Carpio.
Settlement of Boundary Disputes

The settlement of boundary disputes is governed by Sections
118 and 119 of the Code. However, because it is related to the issue of
land area of a local government, it is also discussed at this point. The
pertinent provisions of the Code read as follows:
SECTON 118. JurisdictionalResponsibilityfor Settlement

of Boundary Dispute. - Boundary disputes between and
among local government units shall, as much as
possible, be settled amicably. To this end:
(a) Boundary disputes involving two
(2) or more barangays in the same city
or municipality shall be referred for
settlement to the sangguniang
panlungsod or sangguniang bayan
concerned.
(b) Boundary disputes involving two
(2) or more municipalities within the
same province shall be referred for
panlalawigan concerned.
(c) Boundary disputes involving
municipalities or component cities of
different provinces shall be jointly
referred for settlement to the
sanggunians of the province concerned.
(d) Boundary disputes involving a
component city or municipality on the
one hand and a highly urbanized city
on the other, or two (2) or more highly
urbanized cities, shall be jointly
referred for settlement to the respective
sanggunians of the parties.
(e) In the event the sanggunian fails to
effect an am'cable settlement within
sixty (60) days from the date the
dispute was referred thereto, it shall

issue a certification to that effect.
Thereafter, the dispute shall be
formally tried by the sanggunian
concerned which shall decide the issue
within sixty (60) days from the date of
the certification referred to above.
SECTION 119. Appeal. - Within the time and manner
prescribed by the Rules of Court, any party may
elevate the decision of the sanggunian concerned to
the proper Regional Trial Court having jurisdiction
over the area in dispute. The Regional Trial Court
shall decide the appeal within one (1) year from the
filing thereof. Pending final resolution of the disputed
area prior to the dispute shall be maintained and
continued for all legal purposes.76
The creation of a barangay in Pasig was nullified by the

Supreme Court because of the failure to settle a boundary dispute
with Cainta. The Court said that "the boundary dispute between the
Municipality of Cainta and the City of Pasig presents a prejudicial
question which must first be decided before plebiscites for the
creation of the proposed barangays may be held."
In the case at bar, while the City of Pasig vigorously
claims that the areas covered by the proposed
Barangays Karangalan and Napico are within its
territory, it cannot deny that portions of the same area
are included in the boundary dispute case pending
before the Regional Trial Court of Antipolo. Surely,
whether the areas in controversy shall be decided as
76 The Regional Trial Court (RTC) cannot exercise appellate jurisdiction over the case
if there was no petition that was filed and decided by the sangguniang
panlalawigans of the disputing local government units. The RTC cannot assume
original jurisdiction over the boundary dispute since the Local Government Code
gives that power to the sangguniang panlalawigans. If the RTC has no original
jurisdiction over the boundary dispute between Davao Oriental and Surigao del Sur,
its decision is a total nullity. See Calanza v. Paper Industries Corporation of the
Philippines, G.R. No. 146622, April 24,2009.
within the territorial jurisdiction of the Municipality of

Cainta or the City of Pasig has material bearing to the
creation of the proposed Barangays Karangalan and
Napico. Indeed, a requisite for the creation of a
barangay is for its territorial jurisdiction to be properly
identified by metes and bounds or by more or less
permanent natural boundaries. Precisely because
territorial jurisdiction is an issue raised in the pending
civil case, until and unless such issue is resolved with
finality, to define the territorial jurisdiction of the
proposed barangays would only be an exercise in
futility. Not only that, we would be paving the way
for potentially ultra vires acts of such barangays. 7
Section 118 of the Code does not identify all possible conflicts
that may arise over boundary disputes. It applies to a situation in
which a component city or a municipality seeks to settle a boundary
dispute with a highly urbanized city, but not with an independent
component city. Thus, in a dispute between the Municipality of
Kananga and the independent component city of Ormoc, the
procedure referred to in Section 118 does not apply.
In such a case, the general rules under Batas Pambansa Blg.
129, otherwise known as the Judiciary Reorganization Act of 1980, as
amended by Republic Act No. 7691 were applied. Section 19 (6) of
this law provides:
The Regional Trial Court has jurisdiction to adjudicate all
controversies except those expressly withheld from their plenary
77 Pasig v. Commission on Elections, G.R. Nos. 125646 and 128663, September 10,
1999.
powers. They have the power not only to take judicial cognizance of
a case instituted for judicial action for the first time, but also to do so
to the exclusion of all other courts at that stage.78
If a dispute does not initially fall within the scope of Section
118, supervening events may yet bring the case within the purview
of the said provision. Makati's conversion into a city, for example,
made the settlement of boundary disputes according to Section 118
(d) imperative.
The specific provision of the LGC, now made
applicable because of the altered status of Makati,
must be complied with. In the event that no amicable
settlement is reached, as envisioned under Section
118(e) of the LGC, a certification shall be issued to that
effect, and the dispute shall be formally tried by the
Sanggunian concerned within sixty (60) days from the
date of the aforementioned certification. In this regard,
Rule III of the Rules and Regulations Implementing
the LGC shall govern.
Only upon failure of these intermediary steps will
resort to the RTC follow, as specifically provided in
Section 119 of the LGC. On this score, the jurisdiction
of the RTC over boundary disputes among LGUs was
settled in National Housing Authority v. Commission on
the Settlement of Land Problems, where this Court
recognized the appellate jurisdiction of the proper
RTC.79
Jurisdictionof the Commission on Elections

The Supreme Court upheld the jurisdiction of the COMELEC
over controversies involving the conduct of a plebiscite and the
annulment of its results.80
73 Municipality of Kananga v. Madrona, G.R. No. 141375, April 30, 2003.

79
Municipality of Pateros Y.Court of Appeals, G.R. No. 157714, June 16,2009.
80 See Buac v. Commission on Elections, G.R. No. 155855, January 26, 2004. Associate
Justices Antonio T. Carpio, Conchita Carpio-Morales, and Romeo J. Callejo, Sr.
dissented from the majority opinion.
The COMELEC en banc asserted that it has no jurisdiction

over controversies involving the conduct of a plebiscite and the
annulment of its results. It cited Section 19 (6) of Batas Pambansa Big.
129 and held that Regional Trial Courts have exclusive original
jurisdiction in cases not within the exclusive jurisdiction of any court
or body exercising judicial or quasi-judicial functions.
The Supreme Court disagreed and held that the controversy
involves the enforcement and administration of a law relative to a
plebiscite under the jurisdiction of the COMELEC per Section 2 (1),
Article IX (C) of the Constitution. It added that the power of the
COMELEC is not limited to the mere administrative function of
conducting the plebiscite. "The law is clear. It is also mandated to
enforce the laws relative to the conduct of the plebiscite," the Court
said. It also ruled that whenever the COMELEC is called upon to
correct or check what the Board of Canvassers erroneously or
fraudulently did during the canvassing, it can verify or ascertain the
true results of the plebiscite either through a pre-proclamation case
or through revision of ballots. The Court directed the COMELEC to
reinstate the petition to annul the results of the 1998 Taguig plebiscite
and to decide it without delay.
Certificationsof Compliancewith Requisitesfor Creationof Cities

Samson v. Aguirre8' involved a challenge to the proposed
creation of Novaliches City on the ground that there were no
certifications to the effect that the proposed city met the requirements
for the creation of a city. The Supreme Court, however, noted that:
... the bill that eventually became R.A. No. 8535
originated in the House of Representatives. Its
principal sponsor is Cong. Dante Liban of Quezon
City. Petitioner did not present any proof, but only
allegations that no certifications were submitted to the
House Committee on Local Government, as is the
usual practice in this regard. Allegations, without
more, cannot substitute for proof. The presumption
stands that the law passed by Congress, based on the
G.R. No. 133076, September 22,1999.

bill of Cong. Liban, had complied with all the

requisites therefor.
It added that during the public hearings held by the Senate
Committee on Local Government, the representatives of the different
government offices like National Statistics Office, Bureau of Local
Government Finance, Land Management Bureau, and Department of
Budget and Management, aside from officials of Quezon City itself,
were present.
The representative from the Bureau of Local
Government Finance estimated the combined average
annual income of the 13 barangays 6 for the years 1995
and 1996 to be around P26,952,128.26. Under the Local
Government Code, a proposed city must have an
average annual income of only at least P20,000,000.00
for the immediately preceding two years. The
representative from the NSO estimated the population
in the barangays that would comprise the proposed
City of Novaliches to be around 347,310. This figure is
more than the 150,000 required by the Implementing
Rules. There is no need to consider the land area,
given these figures, since under the Local Government
Code, the proposed city must comply with
requirements as regards income and population or
land area. Other than the income requirement, the
proposed city must have the requisite number of
inhabitants or land area. Compliance with either
requirement, in addition to income, is sufficient.
Judicial notice may also be taken that Novaliches is
now highly urbanized.
The oral manifestation made by the representatives of
government offices in their official capacity "could serve the same
purpose contemplated by law requiring certificates." The Court
added that their affirmation, as well as their oath as witnesses, in the
hearings conducted in either the Senate or the House of
Representatives gave even greater solemnity than a certification
submitted to either chamber routinely. Altogether, the Court was
constrained to presume that these requirements were met

appropriately in the passage of the assailed legislative act.
The 1987 Constitution requires that for a city to have a
legislative district, the city must have "a population of at least two
hundred fifty thousand." The issue in Aldaba v. Commission on
Elections82 was whether the City of Malolos had a population of at
least 250,000, whether actual or projected, for the purpose of creating
a legislative district for the City of Malolos in time for the May 10,
2010 elections. If not, then Republic Act No. 9591 creating a
legislative district in the City of Malolos is unconstitutional.
The House Bill, which became Republic Act No. 9591, cited
the undated Certification of Regional Director Alberto N. Miranda of
Region 1I of the National Statistics Office (NSO) as authority that the
population of the City of Malolos "will be 254,030 by the year 2010."
The Certification states that "the population of Malolos, Bulacan as of
May 1, 2000 is 175,291," and that it was "issued upon the request of
Mayor Danilo A. Domingo of the City of Malolos in connection with
the proposed creation of Malolos City as a lone congressional district
of the Province of Bulacan."
The Court, however, held that the Certification of Regional
Director Miranda, which is based on demographic projections, is
without legal effect because Regional Director Miranda has no basis
and no authority to issue the Certification. Based on Section 6 of
Executive Order No. 135, certifications on demographic projections
can be issued only if such projections are declared official by the
National Statistics Coordination Board (NSCB). They can be issued
only by the NSO Administrator or his designated certifying officer.
The Certification is also void on its face because based on its own
growth rate assumption, the population of Malolos will be less than
250,000 in the year 2010. In addition, intercensal demographic
projections cannot be made for an entire year. Intercensal population
projections must be as of the middle of every year.
In any event, a city whose population has increased to 250,000
is entitled to have a legislative district only in the "immediately
following election" after the attainment of the 250,000 population.
G.R. No. 188078, January 25, 2010.

Section 3 of the Ordinance appended to the 1987 Constitution

provides:
populatio~n mnayherea-fter increase to more than two

hundred fifty thousanidstal be entitled in ti
t ineimediat elctlowing tot least on Mcibe rh
sch nubesn iembers as si may be ertitled to on
'the basis of the num~ber of its in~habitants and
acodn totesadrsst fothi paragraph (3),~
Secion 5 of Articeof theConstitution.
In short, a city must first attain the 250,000 population, and

thereafter, in the immediately following election, such city shall have
a district representative. There is no showing in the present case that
the City of Malolos has attained or will attain a population of 250,000,
whether actual or projected, before the May 10, 2010 elections.
SECTION 11. Selection and Transfer of Local Government

Site, Offices and Facilities. - (a) The law or ordinance
creating or merging local government units shall
specify the seat of government from where
governmental and corporate services shall be
delivered. In selecting said site, factors relating to
geographical centrality, accessibility, availability of
transportation and communication facilities, drainage
and sanitation, development and economic progress,
and other relevant considerations shall be taken into
account.
(b) When conditions and developments in the local
government unit concerned have significantly
changed subsequent to the establishment of the seat of
government, its sanggunian may, after public hearing
and by a vote of two-thirds (2/3) of all its members,
transfer the same to a site better suited to its needs.
Provided, however, That no such transfer shall be
made outside the territorial boundaries of the local

government unit concerned
The old site, together with the improvements thereon,
may be disposed of by the sale or lease or converted to
such other use as the sangguniang concerned may
deem beneficial to the local government unit
concerned and its inhabitants.
(c) Local government offices and facilities shall not be
transferred, relocated, or converted to other uses
unless public hearings are first conducted for the
purpose and the concurrence of the majority of all the
members of the sanggunian concerned is obtained.
One other argument raised against the validity of Republic

Act No. 8535 in Samson&3 was that it failed to specify the seat of
government of the proposed City of Novaliches as required under
Section 11 (a) of the Local Government Code. The Court agreed that a
reading of Republic Act No. 8535 shows that it does not provide for a
seat of government. But the Court held that under Section 12 of the
Local Government Code, which applies to the proposed City of
Novaliches by virtue of Section 54 of Republic Act No. 8535, the City
of Novaliches can still establish a seat of government after its
creation. While Section 12 speaks of the site of government centers,
such site can very well also be the seat of government, "from where
governmental and corporate service shall be delivered."
Title of the Bill

Tobias v. Abalos84 was a challenge to the validity of Republic
Act No. 7675, otherwise known as "An Act Converting the
Municipality of Mandaluyong into a Highly Urbanized City to be
known as the City of Mandaluyong." The issue in that case was
whether Republic Act No. 7675, specifically Article VIII, Section 49
thereof, is unconstitutional for being violating three provisions of the
Constitution.
83
Samson v. Aguirre, G.R. No. 133076, September 22,1999.
84 G.R. No. L-114783, December 8, 1994.
Article VIII, Section 49 of Republic Act No. 7675 provides:
Among others, the petitioner argued that the creation of a

legislative district for Mandaluyong contravenes the "one subject-one
bill" rule, as enunciated in Article VI, Section 26 (1) of the
Constitution, which provides that "[e]very bill passed by the
Congress shall embrace only one subject which shall be expressed in
the title thereof." Petitioners allege that the inclusion of the assailed
Section 49 in the subject law resulted in the latter embracing two
principal subjects, namely: (1) the conversion of Mandaluyong into a
highly urbanized city; and (2) the division of the congressional
district of San Juan Mandaluyong into two separate districts.
The Court disagreed and held that the creation of a separate
congressional district for Mandaluyong is not a subject separate and
distinct from the subject of its conversion into a highly urbanized
city, but is a natural and logical consequence of its conversion into a
highly urbanized city. The title of Republic Act No. 7675, "An Act
Converting the Municipality of Mandaluyong into a Highly
Urbanized City of Mandaluyong" necessarily includes and
contemplates the subject treated under Section 49 regarding the
s 5
creation of a separate congressional district for Mandaluyong.
The Court added that a liberal construction of thene o title-one subect" rule has
been adopted in this jurisdiction so as not to cripple or impede legislation. In
Sumulong v. Commission on Elections (G.R. No. L-48609, October 10, 1941), the Court
ruled that the constitutional requirement as now expressed in Article VI, Section 26
(1) "should be given a practical rather than a technical construction. It should be
In Cawaling, the petitioner contended that Republic Act No.

8806 actually embraced two subjects: (1) the creation of the City of
Sorsogon, and (2) the abolition of the Municipalities of Bacon and
Sorsogon. While the title of the Act sufficiently informs the public
about the creation of Sorsogon City, petitioner claims that no such
information has been provided on the abolition of the Municipalities
of Bacon and Sorsogon.
Similarly, the Court held that there is only one subject
embraced in the title of the law, that is, the creation of the City of
Sorsogon. The abolition/cessation of the corporate existence of the
Municipalities of Bacon and Sorsogon due to their merger is not a
subject separate and distinct from the creation of Sorsogon City. Such
abolition or cessation was but the logical, natural and inevitable
86
consequence of the merger.
CreatingLegislative Districts
One persistent issue that arises out of the creation of cities is
the legality of creating legislative districts. One issue raised in Tobias
v. Abalos87 involved the proper interpretation of Article VI, Sections 5
(1) and (4) of the Constitution, which provide, to wit:
Section w()ith H use of Reprtatvessh albje

composed of not more than two hu ded and."ifty
mzembers, unless otherwise fixed by law, who shall be
elected fromh legislative districts apprtioted among
the provinces, cities and the Metropoli Manila area
in accordance with the number of therep r e uive
sufficient compliance with such requirement if the title expresses the general subject
and all the provisions are germane to that general subject."
s6 It is well-settled that the "one title-one subject" rule does not require the Congress
to employ in the title of the enactment language of such precision as to mirror, fully
index or catalogue all the contents and the minute details therein. The rule is
sufficiently complied with if the title is comprehensive enough as to include the
general object which the statute seeks to effect, and where, as here, the persons
interested are informed of the nature, scope and consequences of the proposed law
and its operation. Moreover, this Court has invariably adopted a liberal rather than
technical construction of the rule "so as not to cripple or impede legislation."
87 G.R. No. L-114783, December 8,1994.
inhabitants, and on the- basis of, a uniform and'

,progressive ratio, and those who, as provided by law,'
;shall be elected through a party list system of.
iregistered national, regional and sectoral parties or
organizations."
tSection 5 (4). Within three years follwing the return
of every census, the Congress shall make a
reapportionment of leslative disticts based on the
standard pTo9 e nthsscin
The petitioners argued that the division of San Juan and

Mandaluyong into separate congressional districts under Section 49
resulted in an increase in the composition of the House of
Representatives beyond that provided in Article VI, Section 5 (1) of
the Constitution. As to the contention that the assailed law violates
the present limit on the number of representatives as set forth in the
Constitution, a reading of the applicable provision, Article VI,
Section 5 (1), as aforequoted, shows that the present limit of 250
members is not absolute. The Constitution clearly provides that the
House of Representatives shall be composed of not more than 250
members, "unless otherwise provided by law." The inescapable
import of the latter clause is that the present composition of Congress
may be increased, if Congress itself so mandates through a legislative
enactment. Therefore, the increase in congressional representation
mandated by Republic Act No. 7675 is not unconstitutional.
Thus, in the absence of proof that Mandaluyong and San Juan
do not qualify to have separate legislative districts, the assailed
Section 49 of Republic Act No. 7675 must be allowed to stand.
As to the contention that Section 49 of Republic Act No. 7675
in effect preempts the right of Congress to reapportion legislative
districts, the said argument borders on the absurd since petitioners
overlook the glaring fact that it was Congress itself which drafted,
deliberated upon and enacted the assailed law, including Section 49
thereof. Congress cannot possibly preempt itself on a right which
pertains to itself.
The Court cited Tobias in Marianowhere a similar argument

was raised. The creation of Makati City was also challenged on the
ground that Section 52 of the charter violated the constitution
because reapportionment cannot be made by a special law.
The Court cited Tobias and explained that the Constitution
did not preclude Congress from increasing its membership by
passing a law, other than a general reapportionment law. The Court
added:
Moreover, to hold that reapportionment can only be
made through a general apportionment law, with a
review of all the legislative districts allotted to each
local government unit nationwide, would create an
inequitable situation where a new city or province
created by Congress will be denied legislative
representation for an indeterminate period of time.
That intolerable situation will deprive the people of a
new city or province a particle of their sovereignty.
Sovereignty cannot admit of any kind of subtraction.
It is indivisible. It must be forever whole or it is not
sovereignty.
In Samson,88 it was also alleged that the proposed creation of
the City of Novaliches will amend the Constitution. The Court said
that the ordinance appended to the Constitution "merely apportions
the seats of the House of Representatives to the different legislative
districts in the country. Nowhere does it provide that Metro Manila
shall forever be composed of only 17 cities and municipalities as
claimed by petitioner. Too literal a reading of the ordinance in or
appendix of the Constitution will only result in its erroneous
interpretation."
Supreme Court'sJurisdictionover Validity of Plebiscites

In Cayetano v. Commission on Elections,89 the Supreme Court
held that the alleged incomplete canvass of plebiscite votes during
the revision proceedings and the irregularities, frauds, and anomalies
88 G.R. No. 133076, September 22,1999.

89G.R Nos. 166388 and 166652, January 23,2006.
purportedly committed therein are factual in nature. They involve an

examination of the admissibility and sufficiency of the evidence
presented during the revision proceedings before the COMELEC.
There, the Court held:
Certainly, this we cannot do in the present special civil
actions for certiorariunder Rule 65 of the 1987 Rules of
Civil Procedure, as amended. Section 1 of the same
Rule confines the power of this Court to resolve issues
mainly involving jurisdiction, including grave abuse of
discretion amounting to lack or in excess of jurisdiction
attributed to the public respondent.
Nevertheless, the Court still reviewed the evidence and found
that petitioner erred when he alleged that the revision of ballots
yielded a total of "15,802 votes for 'Yes' and a total of 12,602 votes for
'No.'" As shown by the records, the COMELEC considered not only
the total number of votes reflected in the Final Canvassing Report of
the Taguig PBOC, but also the voting results based on (1) the
physical count of the ballots; (2) the returns of the uncontested
precincts; and (3) the appreciation of the contested ballots.
The above factual findings of the COMELEC, supported by
evidence, are accorded not only respect, but finality. This is so
because "the conduct of plebiscite and determination of its result
have always been the business of the COMELEC and not the regular
courts. Such a case involves the appreciation of ballots which is best
left to the COMELEC. As an independent constitutional body
exclusively charged with the power of enforcement and
administration of all laws and regulations relative to the conduct of
an election, plebiscite, initiative, referendum and recall, the
COMELEC has the indisputable expertise in the field of election and
related laws." Its acts, therefore, enjoy the presumption of regularity
in the performance of official duties.
Abolition of Local Government Units

The division, merger and abolition of local governments must
also comply with the same requirements for their creation. A division
or merger of local governments must not compromise the minimum
requirements for the creation of such units. A plebiscite is also

required for such division, merger and abolition.

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 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.
SECTION 9. Abolition of Local Government Units. - A
local government unit may be abolished when its
income, population, or land area has been irreversibly
reduced to less than the minimum standards
prescribed for its creation under Book III of this Code,
as certified by the national agencies mentioned in
Section 7 hereof to Congress or to the sanggunian
concerned, as the case may be.
The law or ordinance abolishing a local government
unit shall specify the province, city, municipality, or
barangay with which the local government unit
sought to be abolished will be incorporated or
merged.
It is possible for a barangay not to have inhabitants because

people migrate. A barangay may officially exist on record and the
fact that nobody resides in the place does not result in its automatic
cessation as a unit of local government Under the Code, the abolition
of a local government unit may be done by Congress in the case of a
province, city, municipality, or any other political subdivision. In the
case of a barangay, except in Metropolitan Manila area and in
cultural communities, 90 it may be done by the sangguniang
panlalawigan or sangguniang panglungsod concerned, subject to the
mandatory requirement of a plebiscite in the political units affected.91
In Salva v. Makalintal,92 the Supreme Court held that it has no
jurisdiction to enjoin the COMELEC from implementing its
Resolution No. 2987, Series of 1998, providing for the rules and
regulations for the conduct of the plebiscite to decide on the abolition
of a barangay and its merger with adjacent barangays, pending the
determination of Civil Case No. 3442 for the Annulment of
Ordinance No. 05, Resolution No. 345, and COMELEC Resolution
No. 2987.
Section 7, Article IX-A of the 1987 Constitution provides, in
part, that "[u]nless otherwise provided by this Constitution or by
law, any decision, order, or ruling of each Commission may be
brought to the Supreme Court on certiorari by the aggrieved party
within this days from receipt of a copy thereof." The term "final
orders, rulings and decisions" of the COMELEC, reviewable by
certiorari by the Supreme Court as provided by law, "are those
rendered in actions or proceedings before the COMELEC and taken
cognizance of by the said body in the exercise of its adjudicatory or
quasi-judicial powers."
After the COMELEC ascertained the issuance of the
ordinance and resolution declaring the abolition of barangay San
Rafael, it issued COMELEC Resolution No. 2987 calling for a
plebiscite to be held in the affected barangays, pursuant to the
provisions of Section 10 of Republic Act No. 7160. The Court agreed
with the Solicitor General that "[t]he issuance of [COMELEC]
Resolution No. 2987 is thus a ministerial duty of the COMELEC that
90
See Republic Act No. 7160 (1991), § 386 (a), 2nd paragraph.
9
Sultan Usman Sarangani v. Commission on Elections, G.R. No. 135927, June 26,
2000.
92 G.1. No. 132603, September 18, 2000.
is enjoined by law and is part and parcel of its administrative

functions. It involves no exercise of discretionary authority on the
part of respondent COMELEC; let alone an exercise of its
adjudicatory or quasi-judicial power to hear and resolve
controversies defining the rights and duties of party-litigants, relative
to the conduct of elections of public officers and the enforcement of
the election laws." COMELEC Resolution No. 2987 "was not issued
pursuant to the COMELEC's quasi-judicial functions but merely as
an incident of its inherent administrative functions over the conduct
of plebiscites, thus, the said resolution may not be deemed as a 'final
order' reviewable by certiorari by this Court. Any question
pertaining to the validity of said resolution may be well taken in an
ordinary civil action before the trial courts."
Income
In Alvarez v. Guingona,93 the Supreme Court held that the
internal revenue allotment 94 due to a local government unit should
be computed for purposes of determining whether a local
government unit qualifies to become a city. In that case, the Court
said:
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
93 G.R. No. 118303, January 31, 1996.

94See discussion under sections 284-288.
(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.
The funds generated from local taxes, IRAs and
national wealth utilization proceeds accrue to the
general fund of the local government and are used to
finance its operations subject to specified modes of
spending the same as provided for in the Local
Government Code and its implementing rules and
regulations. For instance, not less than twenty percent
(20%) of the IRAs must be set aside for local
development projects. As such, for purposes of budget
preparation, which budget should reflect the estimates
of the income of the local government unit, among
others, the IRAs and the share in the national wealth
utilization proceeds are considered items of income.
This is as it should be, since income is defined in the
Local Government Code to be all revenues and
receipts collected or received forming the gross
accretions of funds of the local government unit.
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. For purposes of
converting the Municipality of Santiago into a city, the
Department of Finance certified, among others, that
the municipality had an average annual income of at
least Twenty Million Pesos for the last two (2)
consecutive years based on 1991 constant prices. This,
the Department of Finance did after including the
IRAs in its computation of said average annual
income.
Furthermore, Section 450 (c) of the Local Government

Code provides that "the average annual income shall
include the income accruing to the general fund,
exclusive of special funds, transfers, and non-
recurring income." To reiterate, IRAs are a regular,
recurring item of income; nil is there a basis, too, to
classify the same as a special fund or transfer, since
IRAs have a technical definition and meaning all its
own as used in the Local Government Code that
unequivocally makes it distinct from special funds or
transfers referred to when the Code speaks of
"funding support from the national government, its
instrumentalities and government-owned- or -
controlled corporations."
Alvarez is no longer good law insofar as the income
requirement for the creation of a city is concerned. Under the
amendment introduced by Republic Act No. 9009 (2001), the income
requirement must be satisfied through "locally generated" revenue
of at least P100,000,000.00 for the last two consecutive years based on
2000 constant prices. The amendment was intended to stop the mass
creation of cities but created a problem for many municipalities
which were anticipating conversion but no longer satisfied the
income requirement. This problem triggered a series of controversial
Supreme Court decisions in League of Cities of the Philippines v.
Commission on Elections95 where the Court reversed itself three times
in a span of three years.
The case began back during the 11th Congress when Congress
enacted thirty-three bills converting thirty-three municipalities into
cities. However, Congress did not act on bills converting twenty-four
other municipalities-sixteen of which are the respondents in the
League of Cities.96
Congress enacted Republic Act No. 9009 during the 12th
Congress. The law amended Section 450 of the Local Government
95 League of Cities of the Philippines v. Commission on Elections, G.R. Nos. 176951,

177499 and 178056, November 18, 2008.
96
League of Cities of the Philippines v. Commission on Elections, G.R. Nos. 176951,
177499 and 178056, November 18,2008.
Code. 97 It increased the annual income requirement for conversion of

a municipality into a city from Php20M to Phpl00M. The rationale
was to restrain the "mad rush" of municipalities to convert into cities
solely to secure a larger share in the Internal Revenue Allotment.98
After Republic Act No. 9009 went into effect, the House of
Representatives adopted a joint resolution to exempt the twenty-four
municipalities whose cityhood bills were not previously approved
from the Phpl00M income requirement. However, the 12th Congress
ended without the Senate approving the joint resolution.
In the 13th Congress, the House of Representatives re-adopted
the joint resolution. Again, the Senate failed to approve it. Heeding
the advice of Senator Aquilino Pimentel, sixteen of the twenty-four
municipalities filed cityhood bills, all of which contained a common
97Section 450 now provides:

Requisites for Creation. - (a) A municipality or a cluster of
barangays may be converted into a component city if it has a
locally generated average annual income, as certified by the
Department of Finance, of at least One hundred million pesos
(P100,000,000.00) for the last two (2) consecutive years based on
2000 constant prices, and if it has either of the following requisites:
(i) a contiguous territory of at least one hundred
(100) square kilometers, as certified by the
Land Management Bureau; or
(ii) a population of not less than one hundred
fifty thousand (150,000) inhabitants, as
certified by the National Statistics Office.
The creation thereof shall not reduce the land area, population and
income of the original unit or units at the time of said creation to
less than the minimum requirements prescribed 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.
98 Cities receive a bigger share of the internal revenue allotment (the local
government share from national government income) under Section 284 of the Code.
For a discussion on issues pertaining to the IRA, see Dante B. Gatmaytan, Cost and
Effect. The Impact and Irony of the Internal Revenue Allotment, 75 PHIL. L. J. 630-678
(2000).
provision exempting all the sixteen municipalities from the Phpl0OM

income requirement Both Houses of Congress approved the
cityhood bills, which all lapsed into law. The Cityhood Laws directed
the Commission on Elections to hold plebiscites to determine
whether the residents of each respondent municipality approves of
the conversion. The League of Cities of the Philippines filed petitions
for prohibition to enjoin the COMELEC from conducting the
plebiscites and to question the constitutionality of the cityhood laws.
November 18, 2008 En Banc Decision

The first decision came out on November 18, 2009.9 The
majority opinion, penned by Justice Carpio, struck down the
cityhood laws for being unconstitutional by a vote of 6-5.
The majority held that the cityhood laws are unconstitutional
on seven grounds: (1) the application of Republic Act No. 9009 to the
present case is prospective and not retroactive because Republic Act
No. 9009 took effect in 2001 while the cityhood laws were passed
more than five years later; (2) the Constitution requires that Congress
shall prescribe the criteria for the creation of a city in the Local
Government Code and not in any other law;100 (3) the cityhood laws
violate Section 6, Article X of the Constitution' 0' because they present
an unfair and unjust distribution of national taxes to the local
government units; (4) the intent of members of Congress to exempt
certain municipalities from the coverage of Republic Act No. 9009
remained an intent and was never written into law; (5) the criteria
prescribed in Section 450 of the Local Government Code, as amended
by Republic Act No. 9009, are clear, plain and unambiguous and
there was no need resort to statutory construction; (6) the
deliberations of the 11th and 12th Congress on unapproved bills or
resolutions are not extrinsic aids in interpreting the law passed in the
99
177499 and 178056, November 18,2008.
100 CONST., Art. X, § 10. "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 a majority of the votes cast in a plebiscite in the political units directly
affected."
' CONST., Art. X, § 6. "Local government units shall have a just share, as determined
by law, in the national taxes which shall be automatically released to them."
13th Congress because Congress is not a continuing body; and (7)

even if the exemption in the cityhood laws were written into Section
450 of the Local Government Code, the exemption would still be
unconstitutional for violation of the equal protection clause because
the exemption is based solely on the fact that the sixteen
municipalities had cityhood bills pending in the 11th Congress. 12
March 31, 2009, April 28, 2009, and June 2, 2009 Resolutions
The motion for reconsideration filed by respondent LGUs was
denied by the Supreme Court by a majority vote of 7-5 on a
resolution dated March 31, 2009. 103 The second motion for
reconsideration was likewise denied on April 28, 2009, this time by a
6-6 vote.104
On May 14, 2009, respondent local governments filed a
"Motion to Amend the Resolution of April 28, 2009 by Declaring
Instead that Respondent's 'Motion for Reconsideration of the
Resolution of March 31, 2009' and 'Motion for Leave to File and to
Admit Attached Second Motion for Reconsideration of the Decision
Dated November 18, 2008 Remained Unresolved and to Conduct
Further Proceedings Thereon'." In a resolution dated June 2, 2009,
the Supreme Court declared the May 14, 2009 motion as expunged in
light of the entry of judgment made on May 21, 2009. Respondent
local governments filed a motion for reconsideration of the June 2,
2009 resolution, which would pave the way for the first reversal of
original decision.
177499, 178056, November 18,2008. Justices Quisumbing, Austria-Martinez, Carpio-
Morales, Velasco Jr., and Brion concurred with the ponencia. Justice Ruben Reyes
submitted a dissenting opinion, joined by Justices Corona, Azcuna, Chico-Nazario
and Leonardo-de Castro. Chief Justice Puno, and Justices Nachura and Tinga took
no part, while Justice Ynares-Santiago was on leave.
103 Justice Velasco, Jr. wrote a Dissenting Opinion, joined by Justices Ynares-
Santiago, Corona, Chico-Nazario, and Leonardo-De Castro. Chief Justice Puno and
Justice Nachura took no part.
104 Justice Velasco, Jr. wrote a Dissenting Opinion, joined by Justices Ynares-
Santiago, Corona, Chico-Nazario, Leonardo-De Castro, and Bersamin. Chief Justice
Puno and Justice Nachura took no part. Justice Quisumbing was on leave.
December 21, 2009 En Banc Decision 05

In a decision penned by Justice Velasco, Jr., the Supreme
Court reversed the November 18, 2008 en banc decision and declared
the cityhood laws constitutional. Curiously, Justice Velasco was
among those who concurred with J. Carpio's original ponencia.
The new majority's reasoning essentially rested on four
grounds. First, the reference made by Section 10, Article X of the
Constitution to a "local government code" should not be interpreted
as referring to any specific statute or codification of laws, let alone to
the Local Government Code of 1991. The majority relied on the
plenary power of the legislature to justify the validity of the income-
exception clauses in the cityhood laws despite the dear language of
Section 450 of the Local Government Code, as amended by Republic
Act No. 9009. Accordingly, Congress can impose such criteria in a
consolidated set of laws or a single-subject enactment-under which
the cityhood laws fall under - or through amendments such as
Republic Act No. 9009.
Second, the majority puts emphasis on the exchange between
Senators Pimentel and Drilon during the deliberations on Republic
Act No. 9009 to establish the legislative intent to exclude those cities
with pending cityhood bills from the effects of Republic Act No.
9009. The Pimentel-Drilon exchange indicates that those with
pending cityhood bills would fall outside the minimum income
requirement of PhplOOM and that Republic Act No. 9009 would not
have any retroactive effect insofar as the cityhood bills are concerned.
Third, the fact that the deliberations on Republic Act No. 9009
were made during the 11th and 12 Congress, while the cityhood laws
were passed only in the 13th Congress, is immaterial. The majority is
of the view that the prior hearings and deliberations of Congress are
part of its legislative history and may be consulted as extrinsic aids in
the interpretation of the law. That Congress is not a continuing body
is therefore of no moment.
Lastly, on the equal protection issue, the majority found that
there is a substantial distinction between the sixteen respondent local
governments and other municipalities. This distinction is based on
105
177499 and 178056, December 21, 2009.
the fact that the respondent local governments had pending cityhood
bills long before the enactment of Republic Act No. 9009 and they
had met the old income requirement. 106
August 24, 2010 Resolution'07

The Supreme Court reversed itself a second time in 2010 and
reinstated the November 18, 2008 decision declaring the sixteen
cityhood laws as unconstitutional. The Resolution was penned by
Justice Carpio, the ponente of the first decision. It was adopted by a
vote of 7-6.
The Resolution echoed the 2008 Decision, stating that the
cityhood laws violated Section 10, Article X of the Constitution. From
the text of the fundamental law, it is clear that the creation of local
governments must follow the criteria established in the Local
Government Code and not in any other law. Therefore, for the
exemptions to be valid, it must be written in the Local Government
Code. Republic Act No. 9009 is not a law different from the Local
Government Code as it in fact amends it. The Court held that
language of Republic Act No. 9009 is plain, simple, and clear-there
are no exceptions to the income requirement.
The majority further ruled that the mere pendency of a
cityhood bill in the 11th Congress is not a material distinction to
distinguish one municipality from another for the purpose of the
income requirement. There is no rational relationship between the
basis of the classification, i.e. pendency of the bill, and the purpose of
the law, to prevent fiscally non-viable municipalities from converting
into cities. That being the case, the cityhood laws violate the equal
protection clause.
106 League of Cities of the Philippines v. Commission on Elections, G.R Nos. 176951,
177499 and 178056, December 21,2009. Justices Corona, Leonardo-de Castro,
Bersamin, Abad, and Villarama concurred with Justice Velasco. Justice Carpio
registered his dissent, opining that the denial of the first and second motions for
reconsideration already brought finality to the case. He was joined by Justices
Carpio-Morales, Brion, and Peralta. Chief Justice Puno, and Justices Nachura and
Del Castillo did not take part.
107 League of Cities of the Philippines v. Commission on Elections, G.R Nos. 176951,
177499 and 178056, December 21, 2009.
The majority refuted the minority's application of the

operative fact doctrine. While the doctrine may leave undisturbed
the effects of an unconstitutional law prior to its judicial declaration
of nullity, as a matter of equity and fair play, it never validates an
unconstitutional law. Therefore, the cityhood laws remain
unconstitutional although the effects of the implementation of these
laws may be recognized as valid and effective prior to the
Decision.108
February15, 2011 Resolution

The last reversal came in February 15, 2011 thru a
Resolution109 penned by Justice Bersamin, with the vote of 7-6.
Although the composition of the Court was the same as the previous
resolution, Justice Mendoza shifted the majority.
The new decision reiterates the December 21, 2009 Decision,
stating that there has been no violation of Section 10, Article X of the
Constitution. Again, heavy reliance is placed on the Pimentel-Drilon
exchange. Republic Act No. 9009 carries with it both the letter and
the spirit of the law. Thus, it is not enough to look at the text of
Republic Act No. 9009; reference should also be made to the
legislative intent behind the enactment of Republic Act No. 9009.
The new resolution also stated that there was no violation of
Section 6, Article X as regards the just share of local government
units. The majority provided empirical data to show that the
amounts received by cities increased notwithstanding the inclusion
of the sixteen respondent local government units.
Justice Carpio dissented, joined by the five other justices who
comprised the majority in the August 2010 Resolution but without
Justice Mendoza. Justices Nachura and Del Castillo did not take part.
177499 and 178056, December 21, 2009. Justices Carpio-Morales, Brion, Peralta,
Villarama, Mendoza and Sereno joined Justice Carpio. Justice Velasco, Jr. wrote a
dissenting opinion, joined by Chief Justice Corona, and Justices Leonardo-de Castro,
Bersamin, Abad, and Perez. Justices Nachura and Del Castillo again took no part.
177499 and 178056, December 21, 2009.
April 12, 2011 Resolution

The Supreme Court, by a vote of 7-6, denied the motion for
reconsideration filed by the League of Cities and upheld the
constitutionality of the cityhood laws in the April 12, 2011
Resolution. 110
The Resolution, again written by Justice Bersamin, reiterates
that the legislative intent behind Republic Act No. 9009 is to exclude
those with pending cityhood bills in the 11th Congress from the
Phpl00M income requirement. The exemption clauses ultimately
incorporated in the challenged cityhood laws are but express
articulations of the clear legislative intent to exempt the respondents
from the coverage of Republic Act No. 9009. Thereby, Republic Act
No. 9009 and the Local Government Code are amended by way of
express exemptions being embodied in the exemption clauses.
The majority also held that the PlOOM requirement is
arbitrary and even some members of the League of Cities fail to meet
the requirement. It cannot be justified to insist that the Constitution
has to yield to every amendment to the Local Government Code
despite such imminently producing effects contrary to the original
thrusts of the Local Government Code, i.e. to promote autonomy,
decentralization, countryside development, and the concomitant
national growth.
Justice Carpio wrote a dissenting opinion, reiterating his view
that the cityhood laws violate Section 10, Article X of the
Constitution. He added that "[tihe court has made history with the
repeated flip-flopping in this case." Justices Carpio-Morales, Brion,
Peralta, Villarama, and Sereno once again joined the dissent. Justices
Nachura and Del Castillo once again abstained from voting.
Population
The second sentence of Section 5 (3), Article VI of the
Constitution provides that "[e]ach city with a population of at least
two hundred fifty thousand, or each province, shall have at least one
177499 and 178056, December 21, 2009.
representative." The provision draws 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."'
In Mariano v. Commission on Elections,112 the Supreme Court
held that consistent with Section 5 (3), Article VI of the Constitution,
a city with a population of at least 250,000 shall have at least one
representative. The Court also pointed out that section 3 of the
Ordinance appended to the Constitution provides that a city whose
population has increased to more than two hundred fifty thousand
(250,000) shall be entitled to at least one congressional representative.
Laws may be struck down if they violate these directives. The
issue in Aldaba v. Commission on Elections11 3 was whether the City of
Malolos had a population of at least 250,000, whether actual or
projected, for the purpose of creating a legislative district for the City
of Malolos in time for the 10 May 2010 elections. House Bill No. 3693,
which later became Republic Act No. 9591, cited the undated
Certification of Regional Director Alberto N. Miranda of Region III of
the National Statistics Office (NSO) as a basis for saying that the
population of the City of Malolos "will be 254,030 by the year 2010."
The Certification stated that the population of Malolos, Bulacan as of
May 1, 2000 is 175,291.
The Court cited Executive Order No. 135 of 1993 and held
that:.
The Certification of Regional Director Miranda, which
is based on demographic projections, is without legal
effect because Regional Director Miranda has no basis
and no authority to issue the Certification. The
Certification is also void on its face because based on
its own growth rate assumption, the population of
Malolos will be less than 250,000 in the year 2010. In
addition, intercensal demographic projections cannot
1MAquino M v. Commission on Elections, G.R. No. 189793, April 7,2010.

112 Mariano v. Commission on Elections, G.R. No. 118577, March 7,1995.
1 Aldaba v. Commission on Elections, G.R. No. 188078, January 25,2010.
be made for the entire year. In any event, a city whose

population has increased to 250,000 is entitled to have
a legislative district only in the "immediately
following election" after the attainment of the 250,000
population.
First, certifications on demographic projections can be
issued only if such projections are declared official by
the National Statistics Coordination Board (NSCB).
Second, certifications based on demographic
projections can be issued only by the NSO
Administrator or his designated certifying officer.
Third, intercensal population projections must be as of
the middle of every year.
Sub-Provinces
According to Section 9, Article XVIII of the Constitution, "[a]
sub-province shall continue to exist and operate until it is converted
into a regular province or until its component municipalities are
reverted to the mother province." This provision is implemented by
Section 462 of the Local Government Code.
Griflo v. COMELEC 114 involved a petition assailing the
decision of the COMELEC disallowing the voters of the sub-province
of Guimaras to vote for the governor, vice-governor of the province
of Iloilo and the members of the Sangguniang Panlalawigan in the
second district of the province in the May 11, 1992 local and national
elections.
Section 462 of the Local Government Code called for the
conversion of existing sub-provinces into regular provinces upon
approval by a majority of the votes cast in a plebiscite to be held in
the areas directly affected by such conversion. The Code also
directed the holding of the said plebiscite simultaneously with the
national elections following the effectivity of the Code.
The COMELEC issued Resolution No. 2410 providing for the
rules and regulations governing the plebiscite. The ballots used for
114 G.R. No. 105120, September 2,1992.

the three municipalities of the sub-province of Guimaras and the

entire province of Iloilo included a question regarding the conversion
of the sub-province into a province, but did not contain any space or
provision for the election of the governor, vice-governor and the
members of the Sangguniang Panlalawigan representing the second
district of Iloilo, of which the sub-province of Guimaras was a part.
Petitioners claimed that the COMELEC improperly prevented
voters of the sub-province of Guimaras from voting for the governor
and vice governor of Iloilo and the members of the Sangguniang
Panlalawigan representing the second district of Iloilo. They also
alleged that when the Local Government Code was passed providing
specifically for the creation of existing sub-provinces into a full-
fledged province, it does not specifically provide that the voters of
the sub-province shall no longer be allowed to vote for the provincial
officials who, in case of a vote against its conversion into a regular
province, would continue to represent said sub-province.
Section 462 of the Local Government Code provides:
SECTION 462. Existing Subprovinces. - Existing sub-

provinces are hereby converted into regular provinces
upon approval by a majority of the votes cast in a
plebiscite to be held in the said sub-provinces and the
original provinces directly affected. The plebiscite
shall be conducted by the Comelec simultaneously
with the national elections following the effectivity of
this Code.
The new legislative districts created as a result of such
conversion shall continue to be represented in
Congress by the duly elected representatives of the
original districts out of which said new provinces or
districts were created until their own representatives
shall have been elected in the next regular
congressional elections and qualified.
The incumbent elected officials of the said sub-
provinces converted into regular provinces shall
continue to hold office until June 30, 1992. Any
vacancy occurring in the offices occupied by said
incumbent elected officials, or resulting from

expiration of their terms of office in case of a negative
vote in the plebiscite results, shall be filled by
appointment by the President. The appointee shall
hold office until their successors shall have been
elected in the regular local elections following the
plebiscite mentioned herein and qualified. After
effectivity of such conversion, the President shall fill
up the position of governor of the newly created
province through appointment if none has yet been
appointed to the same as hereinbefore provided, and
shall also appoint a vice-governor and the other
members of the sangguniang panlalawigan, all of
whom shall likewise hold office until their successors
shall have been elected in the next regular local
elections and qualified.
All qualified appointive officials and employees in the
career service of the said sub-provinces at the time of
their conversion into regular provinces shall continue
in office in accordance with the civil service law, rules
and regulations.
According to the Court, the cited provision was incomplete

because Section 462 covers only the situation where the voters agreed
to the incorporation. The provision failed to provide for the
consequences in case the negative vote prevails. Congress failed to
foresee that in the event the negative vote prevails, the sub-province
shall continue to be a part of the original province and shall continue
to be represented by the provincial officials of the original province.
The Court held that the COMELEC was under mistaken
presumption that under Section 462 of the 1991 Local Government
Code, whether or not the conversion of Guimaras into a regular
province is ratified by the people in a plebiscite, the President will fill
up the positions of provincial officials through appointment until
their successors shall have been elected and qualified. The law,
however, is clear that in case of a negative vote, the elected officials
of the sub-province only shall be appointed by the President. The law
did not provide that the President shall also appoint provincial
officials of the sub-province because, by a negative vote, the people
of the sub-province of Guimaras shall continue to be represented by
the provincial officials of the province of Iloilo elected at large by
registered voters of Iloilo province including the sub-province of
Guimaras.
Nevertheless, the voters of the sub-province of Iloilo
overwhelmingly voted for the approval of the conversion of
Guimaras into a regular province. As such, the President appointed
the governor for the newly created province of Guimaras, and he
shall also appoint a vice-governor and the member of the
sangguniang panlalawigan. The Court ended by saying that "[tihe
then sub-province of Guirnaras is now a regular province, politically
independent from the province of Iloilo. There is no more legal basis
for the calling of a special election for the municipalities of
Buenavista, Jordan and Nueva Valencia for the purpose of electing
the governor and vice-governor of Iloilo and the members of the
sangguniang panlalawigan of the second district thereof."
SECTION 15. Political and Corporate Nature of Local

Government Units. - 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 a political subdivision of the national
government and as a corporate entity representing the
inhabitants of its territory.
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.
The local government units-the provinces, cities, municipalities and
barangays are also the territorial and political subdivisions of the
state." 5
11sMetropolitan Manila Development Authority v. Bel-Air Village Association, Inc.,

G.R. No. 135962, March 27,2000.
Politicaland CorporateNature of Local Government Units

Section 15 defines a local government unit as a body politic
and corporate endowed with powers to be exercised by it in
conformity with law. As such, it performs dual functions:
governmental and proprietary. Governmental functions are those
that concern the health, safety and the advancement of the public
good or welfare as affecting the public generally. Proprietary
functions are those that seek to obtain special corporate benefits or
earn pecuniary profit and intended for private advantage and
benefit. In the exercise of governmental powers and the performance
of governmental duties, a local government is an agent of the
national government. When engaged in corporate activities, it acts as
an agent of the community in the administration of local affairs. 116
Governmental functions are those pertaining to the administration of
government, and as such, are treated as absolute obligation on the
part of the state to perform while proprietary functions are those that
are undertaken only by way of advancing the general interest of
117
society, and are merely optional on the government.
As the Court explained, municipal corporations perform twin
functions. First, they serve as an instrumentality of the State in
carrying out the functions of government. Second, they act as an
agency of the community in the administration of local affairs. It is in
the latter where they act as a separate entity for their own purposes
and not a subdivision of the State.18
Municipalities are political bodies corporate and as such are
endowed with the faculties of municipal corporations to be exercised
by and through their respective municipal governments in
conformity with law, and in their proper corporate name, they may
inter alia sue and be sued, and contract and be contracted with.
l16 Republic of the Philippines v. The City of Davao, G.RI No. 148622, September 12,
2002.
117 See National Power Corporation v. City of Cabanatuan, G.R No. 149110, April 9,
2003.
1
's Ldasan v. Commission on Elections, G.R No. L-28089, October 25,1967.
In Mendoza v. de Leon,119 the Supreme Court classified certain

activities of the municipality as governmental: regulations against
fire and disease and regulations for the preservation of public peace,
maintenance of municipal prisons, establishment of schools, and post
offices, among others. It held that the following are corporate or
proprietary in character: municipal waterworks, slaughterhouses,
markets, stables, bathing establishments, wharves, ferries, and
fisheries. Maintenance of parks, golf courses, cemeteries and airports
among others, are also recognized as municipal or city activities of a
proprietary character.
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.' °
This distinction of powers becomes important for purposes of
determining the liability of the municipality for the acts of its agents,
which result in an injury to third persons.
If the injury is caused in the course of the performance
of a governmental function or duty no recovery, as a
rule, can be had from the municipality unless there is
an existing statute on the matter, nor from its officers,
so long as they performed their duties honestly and in
good faith or that they did not act wantonly and
maliciously. In Palafox, et al., v. Province of Ilocos Norte,
et al., 1958, a truck driver employed by the provincial
government of Ilocos Norte ran over Proceto Palafox
in the course of his work at the construction of a road.
The Supreme Court in affirming the trial court's
119 G.R. No. L-9596, February 11,1916.

120 Metropolitan Manila Development Authority v. Bel-Air Village Association, Inc.,
G.R. No. 135962, March 27,2000.
dismissal of the complaint for damages held that the

province could not be made liable because its
employee was in the performance of a governmental
function - the construction and maintenance of roads
- and however tragic and deplorable it may be, the
death of Palafox imposed on the province no duty to
pay monetary consideration.
With respect to proprietary functions, the settled rule
is that a municipal corporation can be held liable to
third persons ex contractor ex delicto.
There are consequences to a municipal corporation's dual
nature. One is potential liability for contracts or torts. In a case where
a stage used in a town fiesta collapsed, will the municipality be
liable? Is the celebration of a town fiesta an undertaking in the
exercise of a municipality's governmental or public function or is it
or a private or proprietary character?
Holding of the town fiesta in 1959 by the Municipality of
Malasiqui Pangasinan was an exercise of a private or proprietary
function of the municipality. It is true that Section 2282 of the Chatter
on Municipal Law of the Revised Administrative Code provides:
Uton 281 Celehafion offeta - fiesa ay be hl

Theach uiip ty not ofteredtha once yero uong
a tethe b y to cele aoyear fiesta t e s
htimpoed upon iandy ter
n e oneth afixed
,teeo,except when for.eigh.y resnsc s
,tphoons, foundatios earthquaksepidemics, or
....... public tetefiesta.cannot be hold.inth date
;fixed in which case it may belheld at a later date in.te
The Supreme Court observed that this provision gives

authority to the municipality to celebrate a yearly fiesta but it does
not impose upon it a duty to observe one. Holding a fiesta is an act
for the special benefit of the community and not for the general
welfare of the public performed in pursuance of a policy of the state.
Here the Court explained that there can be no hard and fast rule for
purposes of determining the true nature of an undertaking or
function of a municipality. According to the Court, the basic element,
however beneficial to the public the undertaking may be, is that it is
governmental in essence; otherwise, the function becomes private or
proprietary in character. 2
A dispute arising out of contracts over the use of cemeteries
was settled against the City of Manila. In that case, the Supreme
Court held that the North Cemetery is a patrimonial property of the
City of Manila, which was created by resolution of the Municipal
Board on August 27, 1903 and January 7, 1904. The administration
and government of the cemetery are under the City Health Officer.
The order and police of the cemetery, the opening of graves, niches,
or tombs, the exhuming of remains, and the purification of the same
are under the charge and responsibility of the superintendent of the
cemetery. The City of Manila prescribes the procedure and
guidelines for the use and dispositions of burial lots and plots within
the North Cemetery through Administrative Order No. 5, Series of
1975. With the acts of dominion, there is no doubt that the North
Cemetery is within the class of property, which the City of Manila
owns in its proprietary or private character. There was also no
dispute that the burial lot was leased in favor of the respondents in
the case. Hence, obligations arising from contracts have the force of
law between the contracting parties. Thus a lease contract executed
by the lessor and lessee remains as the law between them and a
breach of contractual provision entitles the other party to damages
even if no penalty for such breach is prescribed in the contract. 12
An ordinance or resolution issued by a municipal council
authorizing the lease and use of public streets as sites for flea markets
is not valid. In the case of Macasianov. Diokno, the areas involved
were local roads used for public service and are considered public
properties of the municipality. The Court held that these properties
are under the absolute control of Congress. Local governments have
no authority to control the use of public properties unless specific
IN Torio v. Fontanilla, G.R. Nos. L-29993 and L-30183, October 23,1978.

WCity of Manila v. Intermediate Appellate Court, G.R. No. 71159, November 15,
1989.
W Macasiano v. Diokno, G.R. No. 97764, August 10, 1992.
authority is given by Congress. The authority given by the Local

Government Code to close roads should be read and interpreted in
accordance with basic principles already established by law.U4
An early Supreme Court decision held that properties for
public use held by municipal corporations are not subject to levy and
execution. Properties for public use like trucks used for sprinkling
the streets, police patrol wagons, police stations, public markets,
together with the land on which they stand are exempt from
execution. Public revenues of municipal corporations destined for the
expenses of the municipality are also exempt from execution.
Properties for public use and public municipal revenues are held in
trust for the people, intended and used for the accomplishment of the
purposes for which municipal corporations are created, and that to
subject said properties and public funds to execution would
materially impede, even defeat and in some instances destroy said
purpose. Property which held by a municipality in its proprietary
capacity is treated by great weight of authority as the private asset of
the town and may be levied upon and sold under an ordinary
execution.'z
The GeneralWelfare Clause

SECTION 16. General Welfare. - Every local
government unit shall exercise the powers expressly
granted, those necessarily implied therefrom, as well
as powers necessary, appropriate, or incidental for its
efficient and effective governance, and those which
are essential to the promotion of the general welfare.
Within their respective territorial jurisdictions, local
124 Republic Act No. 386, Article 424 provides:

Art 424. Property for public use, in the provinces, cities, and
municipalities, consist of the provincial roads, city streets,
municipal streets, the squares, fountains, public waters,
promenades, and public works for public service paid for by said
provinces, cities, or municipalities.
All other property possessed by any of them is patrimonial and
shall be governed by this Code, without prejudice to the
provisions of special laws.
IZ The Municipality of Paoay v. Manaois, G.R. No. L-3485, June 30,1950.
government units shall ensure and support, among

other things, the preservation and enrichment of
culture, promote health and safety, enhance the right
of the people to a balanced ecology, encourage and
support the development of appropriate and self-
reliant scientific and technological capabilities,
improve public morals, enhance economic prosperity
and social justice, promote full employment among
their residents, maintain peace and order, and
preserve the comfort and convenience of their
inhabitants.
Police Power
Police power is the plenary power vested in the legislature to
make statutes and ordinances to promote the health, morals, peace,
126
education, good order or safety and general welfare of the people.
The State has delegated the exercise of police power through the
General Welfare Clause found in Section 16 of the Local Government
Code of 1991. The General Welfare Clause has two branches. The
first, known as the general legislative power, authorizes the
municipal council to enact ordinances and make regulations not
repugnant to law, as may be necessary to carry into effect and
discharge the powers and duties conferred upon the municipal
council by law. The second, known as the police power proper,
authorizes the municipality to enact ordinances as may be necessary
and proper for the health and safety, prosperity, morals, peace, good
order, comfort, and convenience of the municipality and its
inhabitants, and for the protection of their property. 27
The concept of police power is well-established in this
jurisdiction. It is defined as the "state authority to enact legislation
that may interfere with personal liberty or property in order to
promote the general welfare." 28 It consists of (1) an imposition or
restraint upon liberty or property, (2) in order to foster the common
MFernando v. St Scholastica's College, G.R. No. 161107, March 12 2013.

WFernando v. St Scholastica's College, G.R. No. 161107, March 12 2013.
In Edu v. Ericta, G.R. No. L-32096, October 24,1970.
good. It is veiled in general terms to underscore its all-

comprehensive embrace.1 29
In Basco v. PAGCOR,130 the Supreme Court explained that
police power:
...finds no specific Constitutional grant for the plain
reason that it does not owe its origin to the charter.
Along with the taxing power and eminent domain, it
is inborn in the very fact of statehood and sovereignty.
It is a fundamental attribute of government that has
enabled it to perform the most vital functions of
governance. Marshall, to whom the expression has
been credited, refers to it succinctly as the plenary
power of the state "to govern its citizens". (Tribe,
American Constitutional Law, 323, 1978). The police
power of the State is a power co-extensive with self-
protection, and is most aptly termed the "law of
overwhelming necessity." (Rubi v. Provincial Board of
Mindoro, 39 Phil. 660, 708) It is "the most essential,
insistent, and illimitable of powers." (Smith Bell & Co.
v. National, 40 Phil. 136) It is a dynamic force that
enables the state to meet the exigencies of the winds of
change.131
The police power is based on the maxim "salus populi est
suprema lex" - the welfare of the people is the first law. It extends
"to the protection of the lives, health and property of the citizens, and
to the preservation of good order and the public morals." 132 The
police power of a municipal corporation extends to all matters
affecting the peace, order, health, morals, convenience, comfort, and
safety of its citizens - the security of social order - the best and
highest interests of the municipality. 133
INPhilippine Association of Service Exporters, Inc. v. Drilon, G.R. No. 81958, June
30, 1988.
13
Basco v. PAGCOR, G.R. No. 91649, May 14,1991.
131 G.R. No. 91649, May 14,1991.
132 United States v. Salaveria, G.R. No. L-13678, November 12,1918, citing Beer Co. v.
Massachusetts, 97 U.S. 25 (1878) and Barbier v. Connolly, 113 U.S. 27 (1885).
133United States v. Salaveria, G.R. No. L-13678, November 12, 1918, citing Case v.
Board of Health of Manila and Heiser, G.IR No. L-7595, February 4,1913.
Local governments may be considered as having properly

exercised their police power only if the following requisites are met:
(1) the interests of the public generally, as distinguished from those
of a particular class, require its exercise and (2) the means employed
are reasonably necessary for the accomplishment of the purpose and
not unduly oppressive upon individuals. In short, there must be a
concurrence of a lawful subject and a lawful method.13 4
In Viray v. Caloocan,135 the Supreme Court struck down a
Caloocan City Ordinance which required the payment of an entrance
fee for burials at the La Loma cemetery. There, the City defended the
ordinance as a valid exercise of police power because it involves the
assignment of police officers to insure that the funeral procession is
orderly so as not to cause great and serious inconvenience to the
public. During the procession traffic was re-routed at times;
policemen used the city's motorcycles or cars; the streets and other
City property suffered a certain degree of depreciation.
But the Court held that while this may be true, the City did
not explain why the Ordinance imposes the fees solely in the case of
cadavers coming from places outside the territory of Caloocan City
for burial in private cemeteries within the City. The Court said that
the police must regulate traffic, use their vehicles to maintain order,
and suffer some degree of property depreciation whether the corpse
comes from without or within the City limits, and whether interment
is to be made in private or public cemeteries. The Court concluded
that the ordinance unjustifiably discriminates against private
cemeteries, in violation of the equal protection clause of the
Constitution, a defect which is adequate to invalidate the questioned
portion of the measure.
Similarly, in Balacuit v. Court of First Instance of Agusan del
Norte,136 theCourt held that an ordinance requiring theater owners to
halve admission prices for children was unconstitutional. The
Supreme Court said that in the exercise of police power the means
adopted must be reasonably necessary for the accomplishment of the
purpose and not unduly oppressive upon individuals. It added that
"[t]he legislature may not, under the guise of protecting the public
13Social Justice Society v. Atienza, G.R. No. 156052, February 13, 2008.
m G.R. No. L-23118, July 26,1967.
13G.R. No. L-38429, June 30,1988.
interest, arbitrarily interfere with private business, or impose

unusual and unnecessary restrictions upon lawful occupations." It
was an invalid exercise of police power because:
While it is true that a business may be regulated, it is
equally true that such regulation must be within the
bounds of reason, that is, the regulatory ordinance
must be reasonable, and its provisions cannot be
oppressive amounting to an arbitrary interference
with the business or calling subject of regulation. A
lawful business or calling may not, under the guise of
regulation, be unreasonably interfered with even by
the exercise of police power. A police measure for the
regulation of the conduct, control and operation of a
business should not encroach upon the legitimate and
lawful exercise by the citizens of their property rights.
The right of the owner to fix a price at which his
property shall be sold or used is an inherent attribute
of the property itself and, as such, within the
protection of the due process clause. Hence, the
proprietors of a theater have a right to manage their
property in their own way, to fix what prices of
admission they think most for their own advantage,
and that any person who did not approve could stay
away.137
In Binay v. Domingo,138 the Supreme Court upheld Makati's
Burial Assistance Program where bereaved families in Makati whose
gross family income does not exceed two thousand pesos a month
qualified to receive five hundred pesos cash relief from Makati. In
that case, the Court said Makati had authority to "enact such
ordinances and issue such regulations as may be necessary to carry
out and discharge the responsibilities conferred upon it by law, and
such as shall be necessary and proper to provide for the health,
137 Balacuit v. Court of First Instance of Agusan del Norte, G.R. No. L-38429, June 30,
1988. It is the reasonableness, not the effectiveness, that determines the
constitutionality of an ordinance. If the constitutionality of a law were measured by
its effectiveness, then even tyrannical laws may be justified whenever they happen
to be effective. See Lucena Grand Central Terminal v. JAC Liner, Inc., G.R. No.
148339, February 23, 2005.
safety, comfort and convenience, maintain peace and order, improve

public morals, promote the prosperity and general welfare of the
municipality and the inhabitants thereof, and insure the protection of
property therein."
The Court added that the exercise of the power is not
unconstitutional merely because it incidentally benefits a limited
number of persons. The Court held that the care for the poor is
generally recognized as a public duty and support for the poor has
long been an accepted exercise of police power in the promotion of
the common good.
There is no violation of the equal protection clause in
classifying paupers as subject of legislation. Paupers
may be reasonably classified. Different groups may
receive varying treatment. Precious to the hearts of
our legislators, down to our local councilors, is the
welfare of the paupers. Thus, statutes have been
passed giving rights and benefits to the disabled,
emancipating the tenant-farmer from the bondage of
the soil, housing the urban poor....
The Court hastened to add that their ruling must not be taken
as a precedent, or as an official go-signal for municipal governments
"to embark on a philanthropic orgy of inordinate dole-outs for
motives political or otherwise." In fact, in City Government of Quezon
City v. Ericta, 139 the Supreme Court struck down an ordinance
requiring at least six percent of the total area of cemeteries to be "set
aside for charity burial of deceased persons who are paupers and
have been residents of Quezon City for at least 5 years prior to their
death."
There, the Court held that there was no reasonable relation
between the setting aside of at least six percent of the total area of all
private cemeteries for charity burial grounds of deceased paupers
and the promotion of health, morals, good order, safety, or the
general welfare of the people. It concluded that the ordinance is
actually a taking without compensation of a certain area from a
private cemetery to benefit paupers who are charges to the municipal
G.R. No. 92389, September 11, 1991.

138
139 G.R. No. L-34915, June 24,1983.
corporation. Instead of building or maintaining a public cemetery for

this purpose, the city passed the burden to private cemeteries.
The delegation of police power to local governments does not
preclude Congress from assigning tasks to local governments.
Congress can still mandate measures through the enactment of
Republic Acts that specify duties of local governments.
For example, the "Agricultural and Fisheries Mechanization
(AFMech) Law" or Republic Act No. 10601 provides:
(a) Provide agricultural engineering services which'

incude engineering survey, preparation and
evaluation of plans, designs, technical specifications,
feasibility studies and cost estimates/program of
work of irrigation, small water impounding,. soil
conservation and management, farm machinery,

slaughterhouses, poultry dressing plants, postharvest
facilities, auction markets, farm-to-market roads and
other agricultural and fisheries infrastructure projects
of the LGUs;
(b) Administer, supervise and coordinate the
construction, operatior, maintenance, improvement
and management of irrigation, small water
impounding, soil and water conservation structures
and facilities, farm machinery, postharvest facilities,
auction markets, farm-to-market roads and other
agricultural and fisheries infrastructure projects of the
LGUs;
(c) Undertake the registration of agri-fishery
;machinery and facilities, enforcement of the PAES andl
other agricultural and fishery engineering regulatory
lactivities in coordination and collaboration with the
,concerned national government agencies;
(d) Coordinate with the concerned national
government agencies with regard to the
Implementation of national government programs and
projects on irrigation, farm mechanization,
postharvest facilities, farm-to-market roads and,
agricultural and fisheries infrastructure;
(e) Be in the frontline of the delivery of basic
agricultural engineering services;-
(f) Provide training and extension activities to farmers
and fisherfolk particularly in the installation,
operation and maintenance of their irrigation,
postharvest facilities, agricultural and fishery
machinery projects in coordination with the
agriculture and fisheries extension workers;
(g) Undertake and/or coordinate the pilot testing and
commercialization of matured agricultural and
fisheries engineering technologies; and
h)Exercise such other powers and perform suchl

other duties and functions as may be prescribed byl
Jiaw or ordinance.
To effectively carry out the above functions and&
responsibilities, the agricultural engineering division'
of the provincial and city agriculture offices, and
ag9ricultural engineering section in the municipal'
agriculture offices are hereby strengthened and,
institutionalized into the organizational structure of'
the LGUs, and if not yet existing, shall be created in
rthe particular LGUs. The LGUs belonging to the first
up.to the third income classes which are providing or
~implementing agricultural and fisheries infrastructure,
mechanization and engineering projects shall hire at,
least one (1) agricultural engineer at the provincial,
city and municipal levels.
,In the case of provincial, city and municipal LGUs
belonging to the fourth up to the sixth income classes
which are not capable of establishing then agricultural
engineering division/section due to financial
'constraints, the DA through its regional agricultural
engineering divisions shall augment and perform such
responsibilities and, as deemed necessary, establish its
:provincial, city and municipal operation units, and
'shall be allocated and provided with necessary
funding and manpower requirements for their
operation'._
The Philippine Disaster Risk Reduction and Management Act

of 2010,140 provides for local government roles in disaster risk
management:
1
ection 12. Local Disaster 'Risk Reduction and
IManagement Oce (LDRRMO): (a)_There shall bel
140 Republc Act No. 10121 (2010)

lestablished an LDRRMO inevery province, city and

municipality, and a Barangay Disaster Risk Reduction
and Management Committee (BDRRMC) in every
barangay which shall be responsible for setting the
direction, development, implementation and
coordination of disaster risk management programs
within their territorial jurisdiction.
(b) The LDRRMO shall be under the office of the
governor, city or municipal mayor, and the punong
barangay in case of the BDRRMC. The LDRRMOs
shall be initially organized and composed of a
DRRMO to be assisted by three (3) staff responsible
for: (1) administration and training; (2) research and
planning; and (3) operations and warning. The
LDRRMOs and the BDRRMCs shall organize, train
,and directly supervise the local emergency response
teams and the ACDVs.
(c) The provincial, city and municipal DRRMOs or
BDRRMCs shall perform the following functions with
impartiality given the emerging challenges brought by
[disasters ofur times:
[(1) Design, program, and coordinate
disaster risk reduction and
management activities consistent with!
the National Council's standards andl
guidelines;
(2) Facilitate and support risk!
assessments and contingency planning'
activities at the local level;
(3) Consolidate local disaster risk
information which includes natural
!hazards, vulnerabilities, and climatet
change risks, and maintain a local risk!
Imap;
'(4) Organize and conduct training
orientation, and knowledgel
[management activiti on disaster risk
accordance with exsting policies and

procedures;
(9) Identify, assess and manage the
hazards vulnerabilities and risks that
may occur in their locality;
(10)Disseminate information and raise
,public awareness about those hazards,
vuirerabilities and risks, their nature,
effects, early warning signs and
counter-measures;
(11) Identify and implement cost-
effective risk reduction
measures/strategies;
(12) Maintain a database of human
resource, equipment, directories, and
location of critical infrastructures and
their capacities such as hospitals and
evacuation centers;
(13) Develop, strengthen and
operationalize mechanisms for
partnership or networking with the
private sector, CSOs, and volunteer
1groups;
(14) Take all necessary steps on a
1continuing basis to maintain, provide,
or arrange the provision of, or to
,otherwise make available, suitably-
trained and competent personnel for
effective civil defense and disaster risk
.mis
Ireduction and management in its area;
(15) Organize, train, equip and
Supervise the local emergency response
teams and the ACDV s, ensuring that
humanitarian aid ,workers , are
1eupped with basic skills to assist
mothers to breastfeed;
(24) Prepare and submit, through the

LDRRMC and the LDC, the report on
the utilization of the LDRRMF and
other dedicated disaster risk reduction
and management resources to the locall
Commission on Audit (COA), copy
furnished the regional director of the
OCD and the Local Government
Operations Officer of the DILG; and
(25) Act on other matters that may bel
authorized y the LDRRMC.
Zoning as a Police PowerMeasure

A zoning ordinance "logically arranges, prescribes, defines
and apportions a given political subdivision into specific land uses as
present and future projection of needs."' 4 ' The power to establish
zones for industrial, commercial and residential uses is derived from
the police power itself and is exercised for the protection and benefit
of the residents of a locality.142 The declaration of an area as a
commercial zone thru a municipal ordinance is an exercise of police
power to promote the good order and general welfare of the people
in the locality and the state, in order to promote the general welfare,
may interfere with personal liberty, with property, and with business
and occupations. Thus, persons may be subjected to certain kinds of
restraints and burdens in order to secure the general welfare of the
state and to this fundamental aim of government; the rights of the
individual may be subordinated. 143
EnvironmentalLaws
The Local Government Code contains specific provisions that
empower local governments to protect the environment Section 447
141 Gancayco v. City Government of Quezon City, G.R. No. 177807, October 11, 2011.
The authority of the municipality to issue zoning classification is an exercise of its

police power, not the power of eminent domain. See Sta. Rosa Realty Development
Corporation v. Court of Appeals, G.R No. 112526, October 12, 2001.
142 Heirs of Luna v. Afable, G.R. No. 188299, January 23,2013.
143
See Patalinghug v. Court of Appeals, G.R. No. 104786, January 27,1994.
(a) (1) (vi) empowers municipalities to "[p]rotect the environment

and impose appropriate penalties for acts which endanger the
environment, such as dynamite fishing and other forms of
destructive fishing, illegal logging and smuggling of logs, smuggling
of natural resources products and of endangered species of flora and
fauna, slash and burn farming, and such other activities which result
in pollution, acceleration of eutrophication of rivers and lakes, or of
ecological imbalance." There are similar provisions in the Code
pertaining to cities' 44 and provinces. 145
Section 16 of the Local Government Code also creates a duty
of local governments to enhance the right of the people to a balanced
ecology. Pursuant to this provision, the City of Davao cannot claim
exemption from complying with the environmental impact statement
system under Presidential Decree No. 1586. A local government has
the duty to ensure the quality of the environment, which is the very
same objective of the law.
Section 4 of Presidential Decree No. 1586 states that "no
person, partnership or corporation shall undertake or operate any
such declared environmentally critical project or area without first
securing an Environmental Compliance Certificate (ECC) issued by
the President or his duly authorized representative." The Civil Code
defines a person as either natural or juridical. The state and its
political subdivisions, i.e., the local government units, are juridical
persons. Undoubtedly therefore, local government units are not
excluded from the coverage of Presidential Decree No. 1586.146
In one case, the Supreme Court held that the information
dissemination about a reclamation project conducted by a province
months after an ECC was issued was insufficient to comply with the
consultation requirement under the Local Government Code. Prior
public consultation should have considered the ecological or
environmental concerns of the stakeholders and studied measures
alternative to the project, to avoid or minimize adverse
144Republic Act No. 7160, § 458 (a) (1) (vi).

145 Republic Act No. 7160, § 468 (a) (1) (vi).
146Republic of the Philippines v. The City of Davao, G.R. No. 148622, September 12,
2002.
environmental impact or damage. 147 The lack of prior public

consultation and approval is not corrected by the subsequent
endorsement of the reclamation project by municipalities or
barangays "which were both undoubtedly achieved at the urging
and insistence of respondent Province." 148
Pollution
The Supreme Court constricted the powers of local
government units in cases involving pollution, albeit through a
poorly reasoned decision. Technology Developers, Inc. v. Court of
Appeals 149 involved a corporation that manufactured charcoal
briquettes. Technology Developers, Inc. (TDI) received a letter from
the acting mayor of Sta. Maria Bulacan, ordering it to stop operations
of its plant in Guyong, Sta. Maria, Bulacan and to present various
local and national government permits to the office of the mayor. TDI
did not have a mayor's permit, and its request for one was denied.
Without providing notice to TDI, the acting mayor ordered TDI's
local station commander to close the plant.
TDI sued, claiming that the closure order was issued in error.
Consequently, the judge issued a writ of preliminary mandatory
injunction on April 28, 1989. Counsel for defendant, however,
subsequently filed a motion for reconsideration, and the court set
aside the writ of preliminary mandatory injunction. On appeal, the
lower court's ruling was upheld. TDI fied a petition for review on
certiorari with the Supreme Court, but the Supreme Court also ruled
against TDI.
In upholding the decision of the Court of Appeals, the
Supreme Court held that the decision to issue a writ of preliminary
injunction rests on the discretion of the trial court. As such, the Court
will not disturb that order unless the trial court acted without
jurisdiction, in excess of jurisdiction, or in grave abuse of itE
discretion. Accordingly, "the court that issued such a preliminary
147 Boracay Foundation, Inc. v. The Province of Aklan, G.R. No. 196870, June 26,2012
148 Boracay Foundation, Inc. v. The Province of Aklan, G.R. No. 196870, June 26,2012
149G.R. No. 94759, January 21, 1991. This analysis is reproduced from DantE
Gatmaytan-Magno Artiflcial Judicial Environmental Activism: Oposa v. Factoran a,
Aberration,17 IN. INWTL & COMP. L. REv. 1-28 (2007).
relief may recall or dissolve the writ as the circumstances may

warrant."
Technology Developers was a simple case and was settled by
simple reference to case law. TDI filed a motion for reconsideration
of the Supreme Court's decision, however, and the decision was
reversed a few months later.
In its motion for reconsideration, TDI presented a completely
different set of facts - an act that is highly irregular. Generally, the
Supreme Court is not called upon to try facts. The findings of fact of
a trial court, particularly when affirmed by the Court of Appeals, are
generally conclusive and binding on the Supreme Court. There was
no showing in this case, however, that the factual bases of the lower
court's decision were erroneous. Factual issues are beyond the ambit
of the Court's authority to review upon certiorari. On grant of
certiorari, the Supreme Court looks to the issues of jurisdiction or a
grave abuse of discretion. A recent decision of the Supreme Court
explains this rule:
The rule in appellate procedure is that a factual
question may not be raised for the first time on appeal,
and documents forming no part of the proofs before
the appellate court will not be considered in disposing
of the issues of an action. This is true whether the
decision elevated for review originated from a regular
court or an administrative agency or quasi-judicial
body, and whether it was rendered in a civil case, a
special proceeding, or a criminal case. Piecemeal
presentation of evidence is simply not in accord with
orderly justice.
The same rules apply with greater force in certiorari
proceedings. Indeed, it would be absurd to hold
public respondent guilty of grave abuse of discretion
for not considering evidence not presented before it.
The patent unfairness of petitioner's plea, prejudicing
as it would public and private respondents alike,
militates against the admission and consideration of
the subject documents.
Incredibly, the Supreme Court in Technology Developers

accepted the new facts submitted by TDI and substituted them for
the facts established by the lower court's reasoning that the new facts
"knocked down [the] factual moorings of our decision."
Additionally, TDI claimed that it actually had a mayor's
permit - one issued by a different local government. Regardless of
the validity of this claim, TDI did not have the required mayor's
permit from Bulacan, where the plant was operating.
TDI also raised a new issue in its motion for reconsideration:
whether a mayor may close a place of business for lack of a mayor's
permit and for alleged violation of anti-pollution laws. This, too, is
anomalous. Usually, the issues in each case are limited to those
presented in the pleadings; "[flor an appellate tribunal to consider a
legal question it should have been raised in the court below." This is
dictated by fair play, justice and due process.
Under Philippine law, there are occasions when an appellate
court may consider issues that are raised for the first time on appeal.
Among others, the issue of lack of jurisdiction over the subject matter
may be raised at any stage. A reviewing court may also consider an
issue not raised during trial when there is plain error or when there
are jurisprudential developments affecting the issues, or when the
issues raised present a matter of public policy. In the instant case,
however, TDI was no longer filing an appeal. When TDI introduced
the new issue for consideration, it was asking the Supreme Court to
reconsider a ruling denying their petition for certiorari. In other
words, TDI introduced a new issue after they had exhausted the
appeals process and had been rebuffed by the Court of Appeals and
the Supreme Court. Changing the issue at this late in the judicial
process is unprecedented.
Moreover, the Court here did not simply consider a new
issue: it completely changed the issue to whether the acting mayor
had jurisdiction to order the closure of the plant. In order to decide
this issue, the Court applied Presidential Decree No. 984, which
created and established the National Pollution Control Commission
(presently the Environmental Management Bureau). This Decree,
according to the Court, superseded the provisions of the Civil Code
which had authorized the local officials to abate pollution. The Court
then made the following pronouncement: "Inasmuch as the
petitioner had been issued a permit by the E[nvironmental]

M[anagement] B[ureau] to operate its charcoal briquette
manufacturing plant . . . the acting municipal mayor may not
capriciously deny a permit to operate petitioner's otherwise
legitimate business on the ground that its plant was causing
excessive air pollution."
This pronouncement from the Court is puzzling. Under
Philippine case law, businesses may be required to satisfy local
government requirements before they can operate, even if in
compliance with national law. Accordingly, TDI was subject to local
government requirements despite its compliance with requirements
of national government agencies. Local governments have the power
to refuse to issue business permits and licenses and to suspend or
revoke these licenses and permits for violations of their conditions.
The acting mayor dosed the plant because it did not have a mayor's
permit and it was allegedly causing pollution. TDI had been allowed
to show that it had all the necessary documents relative to its
operation. There was nothing capricious about the closure.
Additionally, the Court said, "it is beyond a municipal
mayor's ken and competence to review, revise, reverse, or set aside a
permit to operate the petitioner's... plant issued by the EMB." The
acting mayor did not "review, revise, reverse, or set aside" any order
issued by the EMB. The plant was closed down because it did not
have a mayor's permit. The Supreme Court seems to have confused
the roles of the national and local governments in issuing permits.
While the EMB should have addressed complaints against TDI for
violating pollution laws, compliance with local laws was a matter for
local government authorities to address. Ultimately, the Supreme
Court ordered the "immediate reopening of the plant" despite the
fact that it did not have a permit from Bulacan.
Technology Developers is poorly-reasoned and fraught with
procedural anomalies and factual inaccuracies. It also contradicted
established doctrines of the Philippine judicial system. The case
forces local governments to allow businesses to operate within the
"jurisdictions" despite their failure to comply with local laws. Thus,
this decision seems to severely undermine the power of local
governments to address noncompliance.
The Court's new resolution was a "minute resolution" which

is typically used (1) where a case is patently without merits; (2)
where the issues raised are factual in nature; (3) where the decision
appealed from is supported by substantial evidence and, is in accord
with the facts of the case and the applicable laws; or (4) where it is
clear from the records that the petition is filed merely to forestall the
early execution of judgment and for non-compliance with the rules.
The substance of the Court's ruling in Technology Developers,
however, does not fall within the aforementioned circumstances. In
fact, it seems that minute resolutions are used to shut down frivolous
suits. Thus, if the Supreme Court believed that the suit was frivolous,
it could have easily dismissed TDI's petition. Instead, the Court
admitted new facts, addressed a new issue, and declared several
provisions of the Civil Code inoperative.
Abatement of Nuisance
Sections 447 and 458 of the Code, in relation to the Civil Code,
govern the abatement of nuisances. Section 447 (a) (4) (i) provides
that the sangguniang bayan shall "declare, prevent or abate any
nuisance." Section 458 (a) (4) (i) provides that the sangguniang
panglungsod shall "declare, prevent or abate any nuisance."
The Civil Code defines a nuisance as any act, omission,
establishment, business, condition of property, or anything else
which:
1) Injures or endangers the health or safety of others; or
2) Annoys or offends the senses; or
3) Shocks, defies or disregards decency or morality; or
4) Obstructs or interferes with the free passage of any public
highway or street, or any body of water; or
5) Hinders or impairs the use of property.150
A nuisance is either public or private. A public nuisance
affects a community or neighborhood or any considerable number of
persons, although the extent of the annoyance, danger or damage
150 Civil Code, Article 694.

upon individuals may be unequal. A private nuisance is one that is

not included in the foregoing definition.151
The remedies against a nuisance are provided for in Article
699 of the Civil Code. These are: (1) a prosecution under the Penal
Code or any local ordinance; (2) a civil action; or (3) abatement,
without judicial proceedings.
Nuisances are pertinent to local government law because
local governments have been granted the power to abate
nuisances.152 Under the old local government code, the sangguniang
bayan had the power to "provide for the abatement of nuisance." 15 3
The sangguniang panglungsod also had the power to "declare,
prevent and abate nuisance." 15 4 The Supreme Court interpreted these
broad provisions together with the provisions of the civil code.
Local governments cannot seek cover under the general
welfare clause authorizing the abatement of nuisances without
judicial proceedings. That would be true in the case of a nuisance per
se, or one which affects the immediate safety of persons and property
and may be summarily abated under the undefined law of necessity.
Otherwise, there can be no summary abatement without judicial
intervention. 55
In Tatel v. Municipality of Virac,'56 the Court held that an
ordinance prohibiting the construction of warehouses near a block of
houses either in the poblacion or barrios without maintaining the
necessary distance of 200 meters from said block of houses to avoid
loss of lives and properties by accidental fire was a valid exercise of
its police power.
There, the Court explained that for an ordinance to be valid, it
(a) must not only be within the corporate powers of the municipality
to enact; (b) but must also be passed according to the procedure
prescribed by law, and (c) must be in consonance with certain well
151 Civil Code, Article 695.

152 See Republic Act No. 1515 (1956), § 2631 (r) and charters of most local
governments.
153 Batas Pambansa Big. 337 (1983), § 149 (ee).
15
4Batas Pambansa Big. 337 (1983), § 177 (t).
155 Perez v. Spouses Madrona., G.R. No. 184478, March 21,2012.
15
6 G.R. No. 40243, March 11, 1992.
established and basic principles of a substantive nature. These

principles require that a municipal ordinance: (1) must not
contravene the Constitution or any statue; (2) must not be unfair or
oppressive; (3) must not be partial or discriminatory; (4) must not
prohibit but may regulate trade; (5) must be general and consistent
with public policy; and (6) must not be unreasonable. Ordinance No.
13, Series of 1952, meets these criteria.
In Estate of Gregoria Francisco v. Court of Appeals, 157 the
municipal mayor of Isabela ordered the demolition of a Quonset
building in the Port Area, Strong Boulevard, Isabela, Basilan. The
demolition was being justified as an exercise of police power and for
reasons of health, safety and general welfare, pursuant to Ordinance
No. 147 of the Municipality of Isabela. The Court held that the
demolition was improper and that while the building was located
outside the zone for warehouses and was a non-conforming
structure, the ordinance "should not be interpreted as authorizing
the summary removal of a non-conforming building by the
municipal government" because it must be struck down for being in
contravention of the requirements of due process.
Moreover, the ordinance itself provides that the Zoning
Administrator may call upon the City Fiscal to institute the necessary
legal proceedings to enforce the provisions of the Ordinance. It also
provides that any person aggrieved by the decision of the Zoning
Administrator regarding the enforcement of the Ordinance may
appeal to the Board of Zoning Appeals. The Court also noted that the
ordinance itself requires conviction for violation of the provisions
thereof. The Court added that the violation of a municipal ordinance
does not empower the Municipal Mayor to avail of extra-judicial
remedies. On the contrary, the Local Government Code imposes
upon him the duty "to cause to be instituted judicial proceedings in
connection with the violation of ordinances."'s
The Court held that the municipality cannot use the general
welfare clause authorizing the abatement of nuisances without
judicial proceedings: "that tenet applies to a nuisance per se, or one
which affects the immediate safety of persons and property and may
157 Estate
of Gregoria Francisco v. Court of Appeals, G.R. No. 95279, July 25,1991.
158The Court cited Section 141 of Batas Pambansa Blg. 337 (1985), but there does not
seem to be a parallel provision under the present Code.
be summarily abated under the undefined law of necessity." The

Court added that the storage of copra in the Quonset building is a
legitimate business and is not injurious to the rights of property,
health or comfort of the community. If it be a nuisance per accidens, it
may be so proven in a hearing conducted for that purpose. It is not
per se a nuisance warranting its summary abatement without judicial
intervention.
If city officials find that a fence encroached on the sidewalk,
their remedy is not to demolish the fence summarily after
respondents failed to heed their request to remove it. They should go
to court and prove respondents' supposed violations in the
construction of the concrete fence. Indeed, unless a thing is a
nuisance per se, it may not be abated summarily without judicial
intervention. 159
A demolition of a public market is a not a valid exercise of
police power. The exercise of police power by the local government is
valid unless it contravenes the fundamental law of the land, or an act
of the legislature, or unless it is against public policy, or is
unreasonable, oppressive, partial, discriminating, or in derogation of
a common right. In the present case, the acts of the local government
unit have been established as a violation of law, particularly of the
provisions of Section 3 (e) of Republic Act. No. 3019. A local
government cannot seek the general welfare clause as authorizing
the abatement of nuisances without judicial proceedings. This
principle applies to nuisances per se, or those which affect the
immediate safety of persons and property and may be summarily
abated under the undefined law of necessity. Petitioners claim that
the public market would pose danger to the safety and health of
schoolchildren if it were built on the place being contested. However,
petitioners never made known their supposed concerns either to the
local officials and took the law into their own hands and precipitately
demolished the subject structures that were built without the benefit
of any hearing or consultation with the proper authority.W0
The Court interpreted the municipality's power to abate a
nuisance under Section 149 (ee) of the old local government code, to
159 Perez v. Spouses Madrona, G.R. No. 184478, March 21, 2012.
160 Tayaban v. People of the Philippines, G.R. No. 150194, March 6, 2007.
mean that "it cannot declare a particular thing as a nuisance per se

and order its condemnation. The nuisance can only be so adjudged
by judicial determination." The Court reiterated the rule that:
[Municipal councils] do not have the power to find as
a fact that a particular thing is a nuisance when such
thing is not a nuisance per se; nor can they authorize
the extra judicial condemnation and destruction of
that as a nuisance which, in its nature, situation or use
is not such. These things must be determined in the
ordinary courts of law. In the present case... the ice
factory of the plaintiff is not a nuisance per se. It is a
legitimate industry... If it be in fact a nuisance due to
the manner of its operation, that question cannot be
determined by a mere resolution of the board. The
petitioner is entitled to a fair and impartial hearing
before a judicial tribunal. 161
The abatement of a nuisance without judicial proceedings is
possible only if it is a nuisance per se. A gas station is not a nuisance
per se or one affecting the immediate safety of persons and property
and it cannot be summarily closed down or transferred to another
location.162
The Metropolitan Manila Development Authority does not
have the power to determine a thing a nuisance. Only courts have the
power to determine whether a thing is a nuisance. 163
Effect of Change of Language under the Present Code

Under Section 447 of the present Code the sangguniang
bayan has the power to regulate activities relative to the use of land,
buildings and structures within the municipality in order to promote
the general welfare and, for said purpose, shall "declare, prevent or
abate any nuisance." 164 The sangguniang panglungsod exercises a
similar power under Section 458.165
161 loio Cold Storage v. Municipal Council, 24 Phil. 47 (1913).

162 Parayno v. Jovellanos, G.R. No. 148408, July 14 2006.
163 Gancayco v. City Government of Quezon City, G.R. No. 177807, October 11, 2011.
164 Republic Act No. 7160 (1991), § 447 (4) (i).
165 Republic Act No. 7160 (1991), § 458 (4) (i).
The issue that was raised by the enactment of the 1991 Code
was whether Congress intended to supplant existing rules and to
allow municipalities and cities to abate any nuisance. The Supreme
Court, however, seems reluctant to acknowledge the change in the
law's language. In one case, it held that the present Local
Government Code "does not expressly provide for the abatement of
nuisance." 166 Curiously, the ponencia even cited the provision of the
Local Government Code of 1991 on the abatement of a nuisance.
Special Laws on Nuisance

Special laws may provide specific provisions on nuisances
that can apply to local governments. The Comprehensive Dangerous
Drugs Act of 2002,167 for example, provides:
jSEcfl 5-2. Ab Ment' of ru -Reed Publi
usedontwoor.moe occasions asthe siteofth

junawful sale or delivery of dangerous drugs may be
to be a public nuisance, and such nuisai
/decla-red
imabeabted psat to the followgpoceures
'(1) Any city or, municipality may, by
'ordinan'ce, create an administrative board tol
hiear complaints regarding_ the nuisances;
(2) Any employee, officer, or resident of thI
icity or~municipality may bring a complaintf
:before the Board after giving not less thani
three (3) days written notice of such complainti,
4to the owner of the place or premises ati
Ibis/her last known address; and
(3) After hearing in which the Board may,
consider any evidence, including evidence of
the general reputation of the place or premises
ad at_ which the owner of the premises shallj
166 Asilo, Jr. v. People of the Philippines, G.R. No. 159017-18, March 9,2011.
167 Republic Act No. 9165 (2002).
Thave an oppoftunity
tthC ompreDsengervidence in
his/her defense, the Board may declare the
iplace or Premises to be a public nuisance.
SEC
t o unlawEffsct
N 53. of Boani beedaneion. - If the Board
declares a place or premises to be a public nuisance, it
amay declare an order immediately prohibiting the i
1conduct, operation, or maintenance of any business ori
activity on the premises which is conducive to, such
nuisance.
An order entered under this Section shall expire afte
one (1) yearor at suchearlier time as statedinth
order. The Board may bring a complaint seeking a
permnent injunction againstaeny nuisanceids and
denthis Section. a
IhsArticle does not restrict the right of any person to
proceed under the Civil Code against any public
The language of the Comprehensive Dangerous Drugs Act of

2002 suggests that it operates simultaneously with the Civil Code. It
is limited to the abatement of any place or premises that have been
the site of the unlawful sale or delivery of dangerous drugs, and only
according to the procedures laid out in Section 52. The abatement
also has a one-year life span at most. The property owner may avail
of the remedies found under the Civil Code.
SECT1ION 17. Basic Services and Facilities. - (a) Local
government units shall endeavor to be self-reliant and
shall continue exercising the powers and discharging
the duties and functions currently vested upon them.
They shall also discharge the functions and
responsibilities of national agencies and offices
devolved to them pursuant to this Code. Local
government units shall likewise exercise such other
powers and discharge such other functions and
responsibilities as are necessary, appropriate, or
incidental to efficient and effective provision of the
basic services and facilities enumerated herein.
(b) Such basic services and facilities include, but are

not limited to, the following-
(1) For a Barangay:
(i) Agricultural support
services which include
planting materials
distribution system and
operation of farm
produce collection and
buying stations;
(ii) Health and social
welfare services which
include maintenance of
barangay health center
and day-care center;
(iW') Services and
facilities related to
general hygiene and
sanitation,
beautification, and solid
waste collection;
(iv) Maintenance of
katarungang
pambarangay;
(v) Maintenance of
barangay roads and
bridges and water
supply systems;
(vi) Infrastructure
facilities such as multi-
purpose hall, multi-
purpose pavement,
plaza, sports center, and
other similar facilities;
(vii) Information and

reading center; and
(viii) Satellite or public
market, where viable;
(2) For a Municipality:
(i) Extension and on-site
research services and
facilities related to
agriculture and fishery
activities which include
dispersal of livestock
and poultry, fingerlings,
and other seeding
materials for
aquaculture; palay, corn,
and vegetable seed
farms; medicinal plant
gardens; fruit tree,
coconut, and other kinds
of seedling nurseries;
demonstration farms;
quality control of copra
and improvement and
development of local
distribution channels,
preferably through
cooperatives;
interbarangay irrigation
systems; water and soil
resource utilization and
conservation projects;
and enforcement of
fishery laws in
municipal waters
including the
conservation of
mangroves;
The "fishery laws" which local government units may enforce

under Section 17 (b) (2) (i) in municipal waters include: (1)
Presidential Decree No. 704; (2) Presidential Decree No. 1015 which,
inter alia, authorizes the establishment of a "dosed season" in any
Philippine water if necessary for conservation or ecological purposes;
(3) Presidential Decree No. 1219 which provides for the exploration,
exploitation, utilization and conservation of coral resources; (4)
Republic Act No. 5474, as amended by Batas Pambansa Blg. 58,
which makes it unlawful for any person, association or corporation
to catch or cause to be caught, sell, offer to sell, purchase, or have in
possession any of the fish specie called gobiidae or "ipon" during
closed season; and (5) Republic Act No. 6451 which prohibits and
punishes electrofishing, as well as various issuances of the Bureau of
Fisheries and Aquatic Resources. 168
(ii) Pursuant to national

policies and subject to
supervision, control and
review of the DENR,
implementation of
community-based
forestry projects which
include integrated social
forestry programs and
similar projects;
management and
control of communal
forests with an area not
exceeding fifty (50)
square kilometers;
establishment of tree
parks, greenbelts, and
similar forest
development projects;
168 Tano v. Socrates, G.R. No. 110249, August 21,1997.

In Ruzol v. Sandiganbayan,169 Mayor Ruzol of General Nakar,

Quezon was accused of usurpation of official functions for issuing
221 permits to transport salvaged forest products under the alleged
"pretense of official position and without being lawfully entitled to
do so, such authority properly belonging to the Department of
Environment and Natural Resources." The Sandiganbayan ruled that
all the elements of the crime were attendant in the present case
because the authority to issue the subject permits belongs solely to
the DENR.
The Supreme Court reversed, noting that the case of
usurpation rested principally on the theory that the DENR is the only
government instrumentality that can issue the permits to transport
salvaged forest products. The Court ruled that the DENR is not the
sole government agency vested with the authority to issue permits
relevant to the transportation of salvaged forest products,
considering that local governments may also exercise such authority
pursuant to the general welfare clause. The Court added that the
permits to transport were meant to complement and not to replace
the Wood Recovery Permit issued by the DENR. In effect, Ruzol
required the issuance of the subject permits under his authority as
municipal mayor and independently of the official functions granted
to the DENR. The records are likewise bereft of any showing that
Ruzol made representations or false pretenses that said permits
could be used in lieu of, or at the least as an excuse not to obtain, the
Wood Recovery Permit from the DENR.
(iii) Subject to the

provisions of Title Five,
Book I of this Code,
health services which
include the
implementation of
programs and projects
on primary health care,
maternal and child care,
and communicable and
non-communicable
169 G.R. Nos. 186739-960, April 17,2013.

disease control services;

access to secondary and
tertiary health services;
purchase of medicines,
medical supplies, and
equipment needed to
carry out the services
°
herein enumerated;7
(iv) Social welfare
on child and youth
welfare, family and
community welfare,
women's welfare,
welfare of the elderly
and disabled persons;
community-based
rehabilitation programs
for vagrants, beggars,
street children,
scavengers, juvenile
delinquents, and victims
of drug abuse;
170 Section
36 of Republic Act No. 7875 entitled the National Health Insurance Act of
1995 was amended to read as follows:
SEC. 36. Role of Local Government Units (LGUs). - Consistent with
the mandates for each political subdivision under Republic Act
No. 7160 or 'The Local Government Code of 1991', LGUs shall
provide basic health care services.
To augment their funds, LGUs shall invest the capitation
payments given to them by the Corporation on health
infrastructures or equipment, professional fees, drugs and
supplies, or information technology and database: Provided, That
basic health care services, as defined by the DOH and the
Corporation, shall be ensured especially with the end in view of
improving maternal, infant and child health: Provided,further,That
the capitation payments shall be segregated and placed into a
special trust fund created by LGUs and be accessed for the use of
such mandated purpose.
livelihood and other

pro-poor projects;
nutrition services; and
family planning
services;
(v) Information services
which include
investments and job
placement information
systems, tax and
marketing information
systems, and
maintenance of a public
library;
(vi) Solid waste disposal
system or environmental
management system
and services or facilities
related to general
hygiene and sanitation;
(vii) Municipal
buildings, cultural
centers, public parks
including freedom
parks, playgrounds, and
other sports facilities
and equipment, and
other similar facilities;
(viii) Infrastructure
facilities intended
primarily to service the
needs of the residents of
the municipality and
which are funded out of
municipal funds
including, but not
limited to, municipal
roads and bridges;
school buildings and

other facilities for public
elementary and
secondary schools;
clinics, health centers
and other health
facilities necessary to
carry out health services;
communal irrigation,
small water impounding
projects and other
similar projects; fish
ports; artesian wells,
spring development,
rainwater collectors and
water supply systems;
seawalls, dikes, drainage
and sewerage, and flood
control; traffic signals
and road signs; and
similar facilities;
May residents of a subdivision file suit against the land

developer for damages caused by flooding? Under Sections 17 (b) (2)
(viii) and (4) of the Local Government Code, it is Las Pifias City that
has the duty to control the flood in Meritville Townhouse
Subdivision. 17
(ix) Public markets,

slaughterhouses and
other municipal
enterprises;
(x) Public cemetery;
(xi) Tourism facilities
Filinvest Land v. Flood-Affected Homeowners of Meritville Alliance, G.R. No.

165955, August 10, 2007.
and other tourist

attractions, including
the acquisition of
equipment, regulation
and supervision of
business concessions,
and security services for
such facilities; and
(xii) Sites for police and
fire stations and
substations and
municipal jail;
(3) For a Province:
(i) Agricultural
extension and on-site
research services and
facilities which include
the prevention and
control of plant and
animal pests and
diseases; dairy farms,
livestock markets,
animal breeding
stations, and artificial
insemination centers;
and assistance in the
organization of farmers'
and fishermen's
cooperatives and other
collective organizations,
as well as the transfer of
appropriate technology;
(ii) Industrial research
and development
services, as well as the
transfer of appropriate
technology;
(iii) Pursuant to national

policies and subject to
supervision, control and
review of the DENR,
enforcement of forestry
laws limited to
community-based
forestry projects,
pollution control law,
small-scale mining law,
and other laws on the
protection of the
environment; and mini-
hydroelectric projects
for local purposes;
The Local Government Code did not fully devolve the

enforcement of the small-scale mining law to the provincial
government, as its enforcement is subject to the supervision, control
and review of the DENR which is in charge of carrying out the State's
constitutional mandate to control and supervise the exploration,
development, utilization of the country's natural resources. 172
Republic Act No. 9513 or the "Renewable Energy Act of 2008"
encourages the development of renewable energy resources. This law
expressly provides that the developer secure an environmental
compliance certificate from the regional office of the DENR.173
(iv) Subject to the

provisions of Title Five,
172 League of Provinces of the Philippines v. Department of Environment and

Natural Resources, G.R. No. 175368, April 11, 2013.
13 The provision reads as follows:
SECTION 16. Environmental Compliance Certificate (ECC). -
Notwithstanding Section 17 (b) (3) (iii) of Republic Act No. 7160, it
would be sufficient for the renewable energy developer to secure
the Environmental Compliance Certificate (ECC) from the
corresponding regional office of the DENR.
Book I of this Code,

health services which
include hospitals and
other tertiary health
services;
(v) Social welfare
on rebel returnees and
evacuees; relief
operations; and
population development
services;
(vi) Provincial buildings,
provincial jails, freedom
parks and other public
assembly areas, and
similar facilities;
(vii) Infrastructure
facilities intended to
service the needs of the
residents of the province
and which are funded
out of provincial funds
including, but not,
limited to, provincial
roads and bridges; inter-
municipal waterworks,
drainage and sewerage,
flood control, and
irrigation systems;
reclamation projects;
and similar facilities;
(viii) Programs and
projects for low-cost
housing and other mass
dwellings, except those
funded by the Social
Security System (SSS),

Government Service
Insurance System
(GSIS), and the Home
Development Mutual
Fund (HDMF);
Provided, That national
funds for these
shall be equitably
allocated among the
regions in proportion to
the ratio of the homeless
to the population;
(ix) Investment support
services, including
access to credit
financing;
(x) Upgrading and
modernization of tax
information and
collection services
through the use of
computer hardware and
software and other
means;
(xi) Inter-municipal
telecommunications
services, subject to
national policy
guidelines; and
(xii) Tourism
development and
promotion programs;
(4) For a City:

All the services and
facilities of the
municipality and
province, and in
addition thereto, the
following:
(i) Adequate
communication and
transportation facilities;
(ii) Support for
education, police and
fire services and
facilities;
(c) Notwithstanding the provisions of subsection (b)
hereof, public works and infrastructure projects and
other facilities, programs and services funded by the
National Government under the annual General
Appropriations Act, other special laws, pertinent
executive orders, and those wholly or partially funded
from foreign sources, are not covered under this
section, except in those cases where the local
government unit concerned is duly designated as the
implementing agency for such projects, facilities,
programs, and services.
The express reservation of power by the national government

means that unless a local government is particularly designated as
the implementing agency, it has no power over a program for which
funding has been provided by the national government under the
annual general appropriations act, even if the program involves the
delivery of basic services within the jurisdiction of the local
government unit. A complete relinquishment of central government
powers on the matter of providing basic facilities and services cannot
be implied as the Local Government Code itself weighs against it.
The national government is, thus, not precluded from taking a direct
hand in the formulation and implementation of national
development programs especially where it is implemented locally in

coordination with the local governments concerned. 74
The text of "The Responsible Parenthood and Reproductive
Health Act of 2012" 175 shows that whether it pertains to the
establishment of health care facilities, the hiring of skilled health
professionals, or training of barangay health workers, the national
government will provide the funding of its implementation. Local
autonomy is not absolute and the national government still has the
say when it comes to national priority programs which the local
government is called upon to implement.176
This rule applies equally to the Autonomous Region for
Muslim Mindanao. Except for the express and implied limitations
imposed by the Constitution, Congress cannot be restricted in
exercising its inherent and plenary power to legislate on all subjects
which extends to all matters of general concern or common
interest.177
(d) The designs, plans, specifications, testing of

materials, and the procurement of equipment and
materials from both foreign and local sources
necessary for the provision of the foregoing services
and facilities shall be undertaken by the local
government unit concerned, based on national
policies, standards and guidelines.
(e) National agencies or offices concerned shall
devolve to local government units the responsibility
174 Pimentel, Jr.

v. Executive Secretary, G.R. No. 195770, July 17, 2012.
175 Republic Act No. 10354 (2012).
176 Imbong v. Ochoa, G.R. No. 204819, April 8,2014.
177 Imbong v. Ochoa, G.R. No. 204819, April 8, 2014. Under the Philippine concept of
local autonomy, the national government has not completely relinquished all its
powers over local governments, including autonomous regions. Only administrative
powers over local affairs are delegated to political subdivisions. The purpose of the
delegation is to make governance more directly responsive and effective at the local
levels. Economic, political and social development at the smaller political units are
expected to propel social and economic growth and development But to enable the
country to develop as a whole, the programs and policies effected locally must be
integrated and coordinated towards a common national goal. Policy-setting for the
entire country still lies in the President and Congress. See Pimentel v. Aguirre, G.E.
No. 132988, July 19, 2000.
for the provision of basic services and facilities

enumerated in this section within six (6) months after
the effectivity of this Code.
As used in this Code, the term "devolution" refers to
the act by which the National Government confers
power and authority upon the various local
government units to perform specific functions and
responsibilities.
(f) The National Government or the next higher level
of local government unit may provide or augment the
basic services and facilities assigned to a lower level of
local government unit when such services or facilities
are not made available or, if made available, are
inadequate to meet the requirements of its inhabitants.
(g) The basic services and facilities hereinabove
enumerated shall be funded from the share of local
government units in the proceeds of national taxes
and other local revenues and funding support from
the National Government, its instrumentalities and
government-owned or -controlled corporations which
are tasked by law to establish and maintain such
services or facilities. Any fund or resource available
for the use of local government units shall be first
allocated for the provision of basic services or facilities
enumerated in subsection (b) hereof before applying
the same for other purposes, unless otherwise
provided in this Code.
(h) Regional offices of national agencies or offices
whose functions are devolved to local government
units as provided herein shall be phased out within
one (1) year from the approval of this Code. Said
national agencies and offices may establish such field
units as may be necessary for monitoring purposes
and providing technical assistance to local
government units. The properties, equipment, and
other assets of these regional offices shall be
distributed to the local government units in the region
in accordance with the rules and regulations issued by
the Oversight Committee created under this Code.
(i) The devolution contemplated in this Code shall

include the transfer to local government units of the
records, equipment, and other assets and personnel of
national agencies and offices corresponding to the
devolved powers, functions, and responsibilities.
Personnel of said national agencies or offices shall be
absorbed by the local government units to which they
belong or in whose areas they are assigned to the
extent that it is administratively viable as determined
by the said oversight committee: Provided, That the
rights accorded to such personnel pursuant to civil
service law, rules and regulations shall not be
impaired: Provided, further, That regional directors
who are career executive service officers and other
officers of similar rank in the said regional offices who
cannot be absorbed by the local government unit shall
be retained by the National Government, without any
diminution of rank, salary or tenure.
To implement the devolution process, President Corazon C.

Aquino issued Executive Order No. 503, or the "Rules and
Regulations Implementing the Transfer of Personnel and Assets,
Liabilities and Records of National Government Agencies Whose
Functions are to be Devolved to the Local Government Units and for
Other Related Purposes." Under these rules, the only instance that a
local government may choose not to absorb the national government
agency personnel is when absorption is not administratively viable,
as when it would result in duplication of functions. In such case, the
national government agency personnel shall be retained by the
national government. Otherwise, the local chief executive concerned
shall automatically reappoint devolved permanent personnel. 178
(j) To ensure the active participation of the private

sector in local governance, local government units
may, by ordinance, sell, lease, encumber, or otherwise
dispose of public economic enterprises owned by
them in their proprietary capacity.
178Civil Service Commission v. Yu, G.R. No. 189041, July 31, 2012.
Costs may also be charged for the delivery of basic

services or facilities enumerated in this section.
Section 17 authorizes the devolution of personnel, assets and

liabilities, records of basic services, and facilities of a national
government agency to local government units. Before the passage of
that law, the task of delivering basic social services was dispensed by
the national government through the Department of Social Welfare
and Development (DSWD). Upon the promulgation of the Local
Government Code, some of the functions of the DSWD were
transferred to the local government units."79
The enactment of the Local Government Code raised
questions as to which powers had been devolved by Congress, and
the Supreme Court had to deal with the impact of the Code on
existing laws.
The issue in Laguna Lake Development Authority v. Court of
Appeals was whether it was the Laguna Lake Development Authority
or the towns and municipalities comprising the region that should
exercise jurisdiction over the Laguna Lake and its environs insofar as
the issuance of permits for fishery privileges is concerned.
Section 4 (k) of the charter of the Laguna Lake Development
Authority, Republic Act No. 4850, the provisions. of Presidential
Decree No. 813, and Section 2 of Executive Order No. 927, specifically
provide that the Laguna Lake Development Authority shall have
exclusive jurisdiction to issue permits for the use of all surface water
for any project or activity in or affecting the said region, including
navigation, construction, and operation of fish pens, fish enclosures,
fish corrals and the like. But the Local Government Code of 1991
granted to municipalities exclusive authority to grant fishery
privileges in municipal waters.
The Court held that that the Local Government Code of 1991
does not contain any express provision which categorically repeals
the charter of the Authority and it concluded that there was no intent
on the part of the legislature to repeal Republic Act No. 4850 and its
amendments. The repeal of laws should be made clear and express.
179 Plaza II v. Cassion, G.R. No. 136809, July 27,2004.

The charter of the Laguna Lake Development Authority

constitutes a special law. Republic Act No. 7160, the Local
Government Code of 1991, is a general law. It is basic in statutory
construction that the enactment of a later legislation which is a
general law cannot be construed to have repealed a special law.
Where there is a conflict between a general law and a special statute,
the special statute should prevail since it evinces the legislative intent
more clearly than the general statute. The special law is to be taken as
an exception to the general law in the absence of special
circumstances forcing a contrary conclusion. This is because implied
repeals are not favored and, as much as possible, effect must be given
to all enactments of the legislature. A special law cannot be repealed,
amended or altered by a subsequent general law by mere
implication.
Considering the reasons behind the establishment of the
Authority, which are environmental protection, navigational safety,
and sustainable development, there is every indication that the
legislative intent is for the Authority to proceed with its mission.
The Court interpreted the power of the local government
units to issue fishing privileges for revenue purposes. This is clear
from the fact that Section 149 of the Code empowering local
governments to issue fishing permits is embodied in Chapter 2, Book
II, of under the heading, "Specific Provisions on the Taxing and other
Revenue Raising Power of Local Government Units."
The power of the Authority to grant permits for fishpens,
fishcages and other aqua-culture structures is for the purpose of
effectively regulating and monitoring activities in the Laguna de Bay
region (Section 2, Executive Order No. 927) and for lake quality
control and management. It partakes of the nature of police power.
Accordingly, the charter of the Authority which embodies a valid
exercise of police power should prevail over the Local Government
Code of 1991 on matters affecting Laguna de Bay. 8 0
Devolution did not include the power of the Land
Registration Office to register tricycles and to issue driving licenses
180 Laguna Lake Development Authority v. Court of Appeals, G.R. Nos. 120865-71,
December 7,1995.
to local government units. Under the Local Government Code,

certain functions of the DOTC were transferred to the local
governments:
SECTION 458. Powers, Duties, Functions and

Compensation. - (3) Subject to the provisions of Book
II of this Code, enact ordinances granting franchises
and authorizing the issuance of permits or licenses,
upon such conditions and for such purposes intended
to promote the general welfare of the inhabitants of
the city and pursuant to this legislative authority shall:
(VI) Subject to the guidelines
prescribed by the Department of
Transportation and Communications,
regulate the operation of tricycles and
grant franchises for the operation thereof
within the territorial jurisdiction of the
city." (Emphasis supplied)
Local governments now have the power to regulate the

operation of tricycles-for-hire and to grant franchises for the
operation thereof. "To regulate" means to fix, establish, or control; to
adjust by rule, method, or established mode; to direct by rule or
restriction; or to subject to governing principles or laws. A franchise
is defined to be a special privilege to do certain things conferred by
the government on an individual or corporation, and which does not
belong to citizens generally of common right. On the other hand, "to
register" means to record formally and exactly, to enroll, or to enter
precisely in a list or the like, and a "driver's license" is the certificate
or license issued by the government which authorizes a person to
operate a motor vehicle. The devolution of the functions of the
DOTC, performed by the LTFRB, to the LGUs is aimed at curbing the
alarming increase of accidents in national highways involving
tricycles. It has been the perception that local governments are in a
better position to achieve the end desired by the law-making body
because of their proximity to the situation that can enable them to
address the serious concern better than the national government.
Nevertheless, under Article 458 (a) (3) (vi) of the Local

Government Code, the power of local governments to regulate the
operation of tricycles and to grant franchises for the operation thereof
is still subject to the guidelines prescribed by the DOTC. In
compliance therewith, the DOTC issued "Guidelines to Implement the
Devolution of LTFRBs FranchisingAuthority over Tricycles-For-Hire to
Local Government units pursuantto the Local Government Code."81
Power to GenerateRevenue
SECTION 18. Power to Generateand Apply Resources. -
Local government units shall have the power and
authority to establish an organization that shall be
responsible for the efficient and effective
implementation of their development plans, program
objectives and priorities; to create their own sources of
revenues and to levy taxes, fees, and charges which
shall accrue exclusively for their use and disposition
and which shall be retained by them; to have a just
share in national taxes which shall be automatically
and directly released to them without need of any
further action; to have an equitable share in the
proceeds from the utilization and development of the
national wealth and resources within their respective
territorial jurisdictions including sharing the same
with the inhabitants by way of direct benefits; to
acquire, develop, lease, encumber, alienate, or
otherwise dispose of real or personal property held by
them in their proprietary capacity and to apply their
resources and assets for productive, developmental, or
welfare purposes, in the exercise or furtherance of
their governmental or proprietary powers and
functions and thereby ensure their development into
self-reliant communities and active participants in the
attainment of national goals.
181
Land Transportation Office v. City of Butuan, G.R. No. 131512, January 20,2000.
This section was enacted pursuant to Article X, Section 5 of

the Constitution'8 2 and is discussed in Part II of the Code.
SECTION 19. Eminent Domain. - A local government

unit may, through its chief executive and acting
pursuant to an ordinance, exercise the power of
eminent domain for public use, or purpose or welfare
for the benefit of the-poor and the landless, upon
payment of just compensation, pursuant to the
provisions of the Constitution and pertinent laws:
Provided, however, That the power of eminent domain
may not be exercised unless a valid and definite offer
has been previously made to the owner, and such
offer was not accepted: Provided,further, That the local
government unit may immediately take possession of
the property upon the filing of the expropriation
proceedings and upon making a deposit with the
proper court of at least fifteen percent (15%) of the fair
market value of the property based on the current tax
declaration of the property to be expropriated:
Provided,finally, That, the amount to be paid for the
expropriated property shall be determined by the
proper court, based on the fair market value at the
time of the taking of the property.
Definition
In Suguitan v. City of Mandaluyong,18 3 the Supreme Court
defined eminent domain as the right or power of a sovereign state to
appropriate private property for particular uses to promote public
welfare. It is an indispensable attribute of sovereignty rooted in the
182 The section

provides:
SECTION 5. Each local government unit shall have the power to
create its own sources of revenues and to levy taxes, fees, and
may provide, consistent with the basic policy of local autonomy.
Such taxes, fees, and charges shall accrue exclusively to the local
governments.
183G.R. No.
135087, March 14, 2000.
duty of government to serve the common need and advance the

general welfare. Eminent domain is an inherent power of
government-the provisions found in the Constitution relating to the
taking of property for the public use do not grant but limit the power
to the government. The 1987 Constitution provides that "[pirivate
property shall not be taken for public use without just
compensation." 184 In addition, the due process 185 and equal
protection clauses of the Constitution act as additional safeguards
against the arbitrary exercise of this governmental power.
The exercise of the power of eminent domain affects an
individual's right to private property and thus, there is a need for its
careful operation. In City of Manila s. Chinese Community of Manila,86
the Supreme Court held that:
The statutory power of taking property from the
owner without his consent is one of the most delicate
exercise of governmental authority. It is to be watched
with jealous scrutiny. Important as the power may be
to the government, the inviolable sanctity which all
free constitutions attach to the right of property of the
citizens, constrains the strict observance of the
substantial provisions of the law which are prescribed
as modes of the exercise of the power, and to protect it
from abuse....
Local government units have no inherent power of eminent
domain and can exercise it only when expressly authorized by the
legislature. 8 7 Eminent domain is essentially legislative in nature.
Such power may be validly delegated to local government units,
other public entities and public utilities, although the scope of this
delegated power is necessarily narrower than that of the delegating
authority and may only be exercised in strict compliance with the
terms of the delegating law. 188
184 CONST., Art I, § 9.

185 CoNSr., Art HI, § 1.
186 G.R. No. L-14355, October 31,1919.
187 Lagcao v. Labra, G.R. No. 155746, October 13,2004.
188 Moday v. Court of Appeals, G.R. No. 107916, February 20,1997.
The exercise of the right of eminent domain is in derogation

of private rights. As such, when the sovereign delegates the power to
a political unit or agency, a strict construction will be given against
the agency asserting the power. The authority to condemn is to be
strictly construed in favor of the property owner and against the
condemnor. When the power is granted, the extent to which it may
be exercised is limited to the express terms or clear implication of the
statute in which the grant is contained. 189
The condemnor has the burden of proving all the essentials
necessary to show the right of condemnation. It has the burden of
proof to establish that it has complied with all the requirements
provided by law for the valid exercise of the power of eminent
domain.190
Despite the existence of this legislative grant in favor of local
governments, it is still the duty of the courts to determine whether
the power of eminent domain is being exercised in accordance with
the delegating law. In fact, the courts have adopted a more
censorious attitude in resolving questions involving the proper
exercise of this delegated power by local bodies, as compared to
instances when it is directly exercised by the national legislature.
Under Section 19, the exercise of local governments of the
power of eminent domain is not similar to the exercise of the power
by the national government. Local governments exercise the power
in accordance with the following requirements:
a) Through its chief executive
b) Acting pursuant to an ordinance
c) For public use, or purpose or welfare for the benefit of the
poor and the landless
d) Upon payment of just compensation
e) Pursuant to the provisions of the Constitution and
pertinent laws
1
8 Jesus is Lord Christian School Foundation, Inc. v. Municipality of Pasig, G.R. No.
152230, August 9,2005.
152230, August 9, 2005.
f) After a valid and definite offer has been previously made

to the owner, and such offer was not accepted
g) The local government unit may immediately take
possession of the property upon the filing of the
expropriation proceedings and upon making a deposit
with the proper court of at least fifteen percent (15%) of
the fair market value of the property based on the current
tax declaration of the property to be expropriated:
h) The amount to be paid for the expropriated property shall
be determined by the proper court, based on the fair
market value at the time of the taking of the property.
In contrast, the national government exercises the power
under the terms of Rule 67 of the 1997 Rules of Civil Procedure,
which is reproduced below:
RULE 67
Expropriation
Section 1. The camplaint. - The right of eminent
domain shall be exercised by the filing of a verified
complaint which shall state with certainty the right
land purpose of expropriation, describe the real or
personal property sought to be expropriated, and join
as defendants all persons owning or claiming to own,
or occupying, any part thereof or interest therein,
'showing, so far as practicable, the separate interest of
each defendant If the title to any property sought to
be expropriated appears to be in the Republic of the
Philippines, although occupied by private individuals,
or if the title is otherwise obscure or doubtful so that
the plaintiff cannot with accuracy or certainty specify
who are the real owners, averment to that effect shall
be made in the complaint. (a)
Section 2. Enhy of plaintiff upon depositing value with
authorized government depositary. - Upon the filing of
th on an r at any time thereafter and after due
Jurisdiction
An expropriation suit is incapable of pecuniary estimation
and as such, it falls within the jurisdiction of the Regional Trial
Courts, regardless of the value of the subject property. 19 An

expropriation suit does not involve the recovery of a sum of money-
it deals with the exercise by the government of its authority and its
right to take private property for public use. Expropriation
proceedings have two phases:
The first is concerned with the determination of the
authority of the plaintiff to exercise the power of
eminent domain and the propriety of its exercise in
the context of the facts involved in the suit. It ends
with an order, if not of dismissal of the action, 'of
condemnation declaring that the plaintiff has a lawful
right to take the property sought to be condemned, for
the public use or purpose described in the complaint,
upon the payment of just compensation to be
determined as of the date of the filing of the
complaint." An order of dismissal, if this be ordained,
would be a final one, of course, since it finally
disposes of the action and leaves nothing more to be
done by the Court on the merits. So, too, would an
order of condemnation be a final one, for thereafter as
the Rules expressly state, in the proceedings before the
Trial Court, "no objection to the exercise of the right of
condemnation (or the propriety thereof) shall be filed
or heard."
The second phase of the eminent domain action is
concerned with the determination by the court of "the
just compensation for the property sought to be
taken." This is done by the Court with the assistance
of not more than three (3) commissioners. The order
fixing the just compensation on the basis of the
evidence before, and findings of, the commissioners
would be final, too. It would finally dispose of the
191Barangay San Roque v. Heirs of Pastor, G.R. No. 138896, June 20, 2000.
Expropriation proceedings consists of two stages: first, condemnation of the
property after it is determined that its acquisition will be for a public purpose or
public use and, second, the determination of just compensation to be paid for the
taking of private property to be made by the court with the assistance of not more
than three commissioners. See City of Manila v. Serrano, G.R. No. 142304, June 20,
2001.
second stage of the suit, and leave nothing more to be

done by the Court regarding the issue ....
192
The primary consideration in an expropriation suit is whether

the government or any of its instrumentalities has complied with the
requisites for the taking of private property. The courts determine the
authority of the government entity, the necessity of the
expropriation, and the observance of due process. In the main, the
subject of an expropriation suit is the government's exercise of
eminent domain, a matter that is incapable of pecuniary estimation.
While the value of the property to be expropriated is estimated in
monetary terms, this is merely incidental to the expropriation suit.
Indeed, that amount is determined only after the court is satisfied
with the propriety of the expropriation. 19 3
Ordinance,Not Resolution, Required

The Code requires local governments to pass an ordinance,
and not a mere resolution, to initiate an expropriation proceeding. A
resolution is not sufficient. 94 In Suguitan v. City ofMandaluyong,195 the
City of Mandaluyong sought to exercise the power of eminent
domain by means of a resolution. The Court held the exercise
improper because the law is clear-Section 19 requires an ordinance,
not a resolution, for the exercise of the power of eminent domain.
The Court reiterated its ruling in Municipality of Paraflaquev. V. M.
Realty Corporation'%and held that that the terms "resolution" and
"ordinance" are not synonymous:
An ordinance is a law, but a resolution is merely a

declaration of the sentiment or opinion of a
19 Barangay San Roque v. Heirs of Pastor, G.R. No. 138896, June 20, 2000, citing
National Power Corporation v. Jocson, G.R. Nos. 94193-99, February 25,1992.
15 Barangay San Roque v. Heirs of Pastor, G.R. No. 138896, June 20, 2000. See also
Bardillon v. Masili, G.R. No. 146886, April 30, 2003 (an expropriation suit is within
the jurisdiction of the RTC regardless of the value of the land, because the subject of
the action is the government's exercise of eminent domain - a matter that is
incapable of pecuniary estimation).
194 Spouses Yusay v. Court of Appeals, G.R. No. 156684, April6, 2011.
195 G.R. No. 135087, March 14, 2000.
1%G.R. No. 127820, July 20,1998. See also Beluso v. The Municipality of Tanay, G.R.
No. 153974, August 7,2004.
lawmaking body on a specific matter. An ordinance

possesses a general and permanent character, but a
resolution is temporary in nature. Additionally, the
two are enacted differently - a third reading is
necessary for an ordinance, but not for a resolution,
unless decided otherwise by a majority of all the
Sanggunianmembers.
Mandaluyong, however, argued that an ordinance is needed
only to appropriate funds after the court has determined the amount
of just compensation. The Court disagreed and said that an
examination of the applicable law will show that an ordinance is
necessary to authorize the filing of a complaint with the proper court,
since beginning at this point, the power of eminent domain is already
being exercised.
It does not matter that the Implementing Rules require only a
resolution for a local government to exercise eminent domain. The
law cannot be amended by a mere administrative rule issued for its
implementation. The discrepancy seems to indicate that it was a mere
oversight in the wording of the implementing rules, since Article 32,
Rule VI, also requires that in exercising the power of eminent
domain, the chief executive of the local government must act
pursuant to an ordinance.
The ruling, however, does not preclude the City of
Mandaluyong from enacting the necessary ordinance and thereafter
reinstituting expropriation proceedings, for so long as it has
complied with all other legal requirements.
While the Supreme Court is aware of the constitutional policy
promoting local autonomy, it cannot allow a local government unit
to exercise its delegated power of eminent domain in contravention
of the very law giving it such power.197
Valid and Definite Offer

The enactment of an ordinance to expropriate property must
be preceded by a valid and definite offer to buy petitioners' property
as required by Section 19 of Republic Act No. 7160. Otherwise the
197 Beluso v. The Municipoality nof Tanay, G.R. No. 153974, August 7,2006.
ordinance is constitutionally infirm for being violative of the

petitioners' right to due process. 198
The condemnor should prove the mandatory requirement of
a valid and definite offer to the owner of the property before filing its
complaint and the rejection thereof by the latter. It is incumbent upon
the condemnor to exhaust all reasonable efforts to obtain the land it
desires by agreement. Failure to prove compliance with the
mandatory requirement will result in the dismissal of the
complaint. 199
An offer is a unilateral proposition which one party makes to
the other for the celebration of a contract. It creates a power of
acceptance permitting the offeree, by accepting the offer, to
transform the offeror's promise into a contractual obligation. The
offer must be complete, indicating with sufficient clearness the kind
of contract intended and definitely stating the essential conditions of
the proposed contract. An offer would require, among other things, a
clear certainty on both the object and the cause or consideration of
the envisioned contract." °
The valid and definite offer is made to encourage settlements
and voluntary acquisition of property needed for public purposes in
order to avoid the expense and delay of a court action. The owner is
given the opportunity to sell his land without the expense and
inconvenience of a protracted and expensive litigation. It permits the
landowner to receive full compensation, and the entity acquiring the
property, immediate use and enjoyment of the property. A
reasonable offer in good faith, not merely perfunctory or pro firma
offer, to acquire the property for a reasonable price must be made to
the owner or his privy. A single bonafide offer that is rejected by the
owner will suffice.0
198 Lagcao v. Labra, G.R No. 155746, October 13,2004.

152230, August 9, 2005.
2w Jesus is Lord Christian School Foundation, Inc. v. Municipality of Pasig, G.R. No.
152230, August 9,2005.
2n Jesus is Lord Christian School Foundation, Inc. v. Municipality of Pasig, G.R. No.
152230, August 9, 2005.
The expropriating authority should make known its offer to

the registered owners of the property.2 2
The annotation of a notice of lis pendens at the dorsal portion
of property owner's title is not a substantial compliance with the
requisite offer. A notice of lis pendens is a notice to the whole world of
the pendency of an action involving the title to or possession of real
property and a warning -that those who acquire an interest in the
property do so at their own risk and that they gamble on the result of
the litigation over it.m
A declaration in one of the "whereas clauses" of the
ordinance that "the property owners were already notified by the
municipality of the intent to purchase the same for public use as a
municipal road" is not a substantial compliance with the requirement
of a valid and definite offer.0
In one case,205 the Court held that a complaint for eminent
domain should not be dismissed on the ground that the complaint
failed to state a cause of action. The lower courts granted the motion
to dismiss based on the rule that when the motion to dismiss is based
on the ground that the complaint states no cause of action, no
evidence may be allowed and the issue should only be determined in
the light of the allegations of the complaint.
The Supreme Court, however, pointed out that this rule is not
without exceptions. The same liberality should be applied in the
instant case where an examination of petitioner's "Comment and
Opposition" to private respondent's Motion to Dismiss leaves no
room for doubt that petitioner had indeed made "a valid and definite
offer" to private respondent as required by law.
The Court added that even on the face of the complaint alone,
there was a cause of action. The City, in paragraph 1 of the
complaint, alleged that:
2
m Jesus is Lord Christian School Foundation, Inc. v. Municipality of Pasig, G.R. No.
152230, August 9, 2005.
20
Jesus is Lord Christian School Foundation, Inc. v. Municipality of Pasig, G.R. No.
152230, August 9, 2005.
2 4
Jesus is Lord Christian School Foundation, Inc. v. Municipality of Pasig, G.R. No.
152230, August 9, 2005.
2
W City of Cebu v. Court of Appeals, G.R No. 109173, July 5,1996.
...Under R.A. 7160, Sec. 19 thereof, the City of Cebu is

legally vested with the power of eminent domain and
pursuant thereto is filing this petition/complaint as
authorized by Ordinance No. 1418 passed by the
Sangguniang Panlungsod on February 17, 1992, a
photocopy of which is herein attached as Annex "A",
and made an integral part of this complaint....
All documents attached to a complaint, the due execution and
genuineness of which are not denied under oath by the defendant,
must be considered as part of the complaint without need of
introducing evidence thereon. In addition, the general rule is that a
motion to dismiss hypothetically admits the truth of the facts alleged
in the complaint. Thus, the Supreme Court held that Ordinance No.
1418, with all its provisions, is not only incorporated into the
complaint for eminent domain filed by petitioner, but is also deemed
admitted by private respondent. A perusal of the copy of said
ordinance which has been annexed to the complaint shows that the
fact of petitioner's having made a previous valid and definite offer to
private respondent is categorically stated therein.206
When Just Compensation is Determined

While Section 4, Rule 67 of the Rules of Court provides that
just compensation shall be determined at the time of the filing of the
complaint for expropriation, such law cannot prevail over Republic
Act No. 7160, a substantive law which states that just compensation
should be based on the fair market value of the property at the time
of the taking of the property. 20 7
The Supreme Court cannot sustain the just compensation
which was set by the Regional Trial Court if it was arrived at after
considering: (a) the September 4, 1996 recommendation of the City
Appraisal Committee; (b) several sworn statements made by Sy
himself; and (c) Sy's own tax declaration for 1996. The amount of just
26 The second whereas clause of the said ordinance provided that "WHEREAS, the
city government has made a valid and definite offer to purchase subject lot(s) for the
public use aforementioned but the registered owner Mrs. Merlita Cardeno has
rejected such offer."
w7 The City of Cebu v. Dedamo, G.R. No. 142971, May 7,2002.
compensation is to be ascertained as of the time of the taking.

However, the above-stated documents do not reflect the value of the
subject property at the time of its taking in 1986 but rather, its
valuation in 1996. Consequently, the case must be remanded to the
RTC in order to properly determine the amount of just compensation
during such time the subject property was actually taken.28
Application of other Laws

The exercise by local government units of the power of
eminent domain is limited by Section 19 of the 1991 Local
Government Code. It is very explicit that "it must comply with the
provisions of the Constitution and pertinent laws."
The law that deals with the subject of expropriation for the
purpose of urban land reform and housing is Republic Act No. 7279
(Urban Development and Housing Act of 1992). Sections 9 and 10 of
which specifically provide as follows:
Sec. 9. Prioritiesin the acquisition of land - tais fo

Isocialized housing shall be acquired in the following!
o rd er:- ------
-------- --
(a) Those owned by the Government or any o
its sub-divisions, instrumentalities, or agencies,i
including goverment-owned or -controlled
corporations and their subsidiaries;
(b) Alienable lands of the public domain;
(c) Unregistered or abandoned and idle lands;
(d) Those within the declared Areas of Pri
Development, Zonal Improvement sites, 2and
Slum Improvement and Resettlement Program
Isites which have not yet been acquired;
2w Sy v. Local Government of Quezon City, G.R. No. 202690, June 5,2013.

These provisions state the order of priority in acquiring

private lands and the remedies that may be used in expropriation
proceedings. Private lands rank last in the order of priority for
purposes of socialized housing. In the same vein, expropriation
proceedings are to be resorted to only when the other modes of
acquisition have been exhausted. Compliance with these conditions

must be deemed mandatory because these are the only safeguards in
securing the right of the owners of private property to due process
when their property is expropriated for public use. 209
The resolution on whether petitioner has complied with these
provisions requires the presentation of evidence. The determination
of this question must await the hearing on the complaint for
expropriation, particularly the hearing for the condemnation of the
properties that are being expropriated. Expropriation proceedings
consists of two stages: first, condemnation of the property after it is
determined that its acquisition will be for a public purpose or public
use and, second, the determination of just compensation to be paid
for the taking of private property to be made by the court with the
assistance of not more than three commissioners. 210
For the purpose of socialized housing, government-owned
and foreclosed properties shall be acquired by the local government
units or by the National Housing Authority primarily through
negotiated purchase: Provided, That qualified beneficiaries who are
actual occupants of the land shall be given the right of first refusal.
Section 9 lists the types of land to be acquired and the
hierarchy in their acquisition. Section 10 deals with the modes of land
acquisition or the process of acquiring land for socialized housing.
This means that the lands that may be acquired in the order of
priority in Section 9 are to be acquired only in the modes authorized
under Section 10.
The local government must state that it exhausted the other
modes of acquisition in Section 9 of the law before it decided to
expropriate the subject lots. The law states "expropriation shall be
resorted to when other modes of acquisition have been exhausted." 211
2 9
DFilstream International Inc. v. Court of Appeals, G.R Nos. 125218 and 128077,
January 23,1998.
210 City of Manila v. Serrano, G.R. No. 142304, June 20, 2001.
211 City of Mandaluyong v. Aguilar, G.R No. 137152, January 29,2001.
PropertiesExempted
Republic Act No. 7279 limited the size of the land that is the
subject of expropriation for socialized housing. The law expressly
exempted "small property owners" from expropriation of their land
for urban land reform. "Small property owners" are defined in
Section 3 (q) of the law:
rel popetyconsists of reientiall

thoe woseonl
l1and not exceeding three hundred square meters (300
sqam) 'in highly u~rbanized cities an~d eight hunidrd
,quare mTe rs 0 sqrr. ioter urban-.......
In one case, the titles to properties were issued in

respondents' names as co-owners in 1987-ten years before the
expropriation case was filed in 1997. The lot was partitioned in 1998,
six months after the filing of the expropriation case, terminating the
co-ownership by converting into certain and definite parts the
respective undivided shares of the co-owners. The rights of the co-
owners to have the property partitioned and their share in the same
delivered to them cannot be questioned for "[n]o co-owner shall be
obliged to remain in the co-ownership." The partition was merely a
necessary incident of the co-ownership; and absent any evidence to
the contrary, this partition is presumed to have been done in good
faith.
Upon partition, four co-owners each had a share of 300
square meters. One had a share of 347 square meters (later
subdivided among his five children when he passed away -each of
whom were entitled to 69.4 square meters of the total land which was
the subject of litigation) and another was 89 square meters.
Consequently, the share of each co-owner did not exceed the 300
square meter limit set in Republic Act No. 7279.
The second question was whether the subject property is the
only real property of respondents for them to comply with the
second requisite for small property owners. While it appeared that
the respondents owned real property other than the lots in litigation,
the records did not show that the ancestral home in Paco, Manila and
the land on which it stands are owned by the respondents or any one
of them.n2
Res Judicata
An expropriation case which is dismissed because it was
wrongly filed with the MTC may be filed anew with the proper
court. Res judicata means a matter adjudged, judicially acted upon or
decided, or settled by judgment. It provides that a final judgment on
the merits rendered by a court of competent jurisdiction is conclusive
as to the rights of the parties and their privies, and constitutes an
absolute bar to subsequent actions involving the same claim, demand
or cause of action. Since the MTC had no jurisdiction over
expropriation proceedings, the doctrine of res judicata finds no
application even if the order of dismissal may have been adjudication
on the merits. 3
Legality of Entry into Premises

Section 2 of Rule 67 of the 1997 Rules of Civil Procedure
governs the requirements for the issuance of a writ of possession in
an expropriation case. Section 19 of the Local Government Code also
governs expropriation. In expropriation proceedings, the requisites
for authorizing immediate entry are as follows: (1) the filing of a
complaint for expropriation sufficient in form and substance; and (2)
the deposit of the amount equivalent to 15 percent of the fair market
value of the property to be expropriated based on its current tax
declaration. 214
There are only two requirements before a writ of possession
may issue: the sufficiency in form and substance of the complaint
and the required provisional deposit. In fact, no hearing is required
for the issuance of a writ of possession. The sufficiency in form and
212 City of Mandaluyong v. Aguilar, G.R No. 137152, January 29,2001.

213 Bardillon v. Masili, G.R. No. 146886, April 30,2003.
2
1 Bardillon v. Masili, G.R. No. 146886, April ,30,2003.
substance of the complaint for expropriation can be determined by

the mere examination of the allegations of the complaint.215
Section 19 of Republic Act No. 7160 does not put a time limit
as to when a local government may immediately take possession of
the real property. Said section provides that the local government
unit may take immediate possession of the property upon the filing
of the expropriation proceedings and upon making a deposit of at
least fifteen percent (15%) of the fair market value of the property
based on its current tax declaration. As long as the expropriation
proceedings have been commenced and the deposit has been made,
the local government unit cannot be barred from praying for the
issuance of a writ of possession. 216 The law does not make the
determination of a public purpose a condition precedent to the
217
issuance of a writ of possession.
Forum Shopping
The test for determining the presence of forum shopping is
whether the elements of litis pendentia are present in two or more
pending cases, such that a final judgment in one case will amount to
res judicatain another. According to the Court:
Be it noted that the earlier case lodged with the MTC
had already been dismissed when the complaint was
filed before the RTC. Even granting arguendothat both
cases were still pending, a final judgment in the MTC
case will not constitute res judicata in the RTC, since
the former had no jurisdiction over the expropriation
case.218
Returning the Property

When private land is expropriated for a particular public use,
and that particular public use is abandoned, does the land so
215 City of Iloilo

v. Legaspi, G.R. No. 154614, November 25,2004.
v. Legaspi, G.R. No. 154614, November 25,2004
216 City of Iloilo
217
Francia v. Municipality of Meycauyan, G.R. No. 170432, March 24, 2008.
2
8 Bardillon v. Masili, G.R. No. 146886, April 30,2003.
expropriated return to its former owner? The answer depends upon

the character of the title acquired by the expropriator. If land is
expropriated for a particular purpose, with the condition that when
said purpose is ended or abandoned, the property shall return to its
former owner, then, of course, when the purpose is terminated or
abandoned the former owner re-acquires the property so
expropriated. Citing cases from the United States, the Supreme Court
explained that if land is expropriated for a public street and the
expropriation is granted upon condition that the city can only use it
for a public street, then, of course, when the city abandons its use as a
public street, it returns to the former owner, unless there is some
statutory provision to the contrary. If, however, the decree of
expropriation gives to the entity a fee simple title, then of course, the
land becomes the absolute property of the expropriator and the
former owner retains no rights in the land, and the public use may be
abandoned or the land may be devoted to a different use, without
any impairment of the estate or title acquired, or any reversion to the
former owner. There is no "implied contract" that the properties will
be used only for the public purpose for which they were acquired.219
SECTION 20. Reclassification of Lands. - (a) A city or

municipality may, through an ordinance passed by
the sanggunian after conducting public hearings for
the purpose, authorize the reclassification of
agricultural lands and provide for the manner of their
utilization or disposition in the following cases: (1)
when the land ceases to be economically feasible and
sound for agricultural purposes as determined by the
Department of Agriculture or (2) where the land shall
have substantially greater economic value for
residential, commercial, or industrial purposes, as
determined by the sanggunian concerned: Provided,
That such reclassification shall be limited to the
following percentage of the total agricultural land area
at the time of the passage of the ordinance:
(1) For highly urbanized and independent
component cities, fifteen percent (15%);
219 Air Transportation Office v. Gopuco, G.R. No. 158563, June 30, 2005.
(2) For component cities and first to the third

class municipalities, ten percent (10%); and
(3) For fourth to sixth class municipalities, five
percent (5%): Provided, further, That
agricultural lands distributed to agrarian
reform beneficiaries pursuant to Republic Act
Numbered Sixty-six hundred fifty-seven (R.A.
No. 6657). otherwise known as "The
Comprehensive Agrarian Reform Law", shall
not be affected by the said reclassification and
the conversion of such lands into other
purposes shall be governed by Section 65 of
said Act.
(b) The President may, when public interest so
requires and upon recommendation of the National
Economic and Development Authority, authorize a
city or municipality to reclassify lands in excess of the
limits set in the next preceding paragraph.
(c) The local government units shall, in conformity
with existing laws, continue to prepare their
respective comprehensive land use plans enacted
through zoning ordinances which shall be the primary
and dominant bases for the future use of land
resources: Provided. That the requirements for food
production, human settlements, and industrial
expansion shall be taken into consideration in the
preparation of such plans.
(d) Where approval by a national agency is required
for reclassification, such approval shall not be
unreasonably withheld. Failure to act on a proper and
complete application for reclassification within three
(3) months from receipt of the same shall be deemed
as approval thereof.
(e) Nothing in this Section shall be construed as
repealing, amending, or modifying in any manner the
provisions of R.A. No. 6657.
The power granted to local governments is not the power to

convert land, but the power to reclassify land. Land reclassification
and land conversion are distinguished as follows:
Conversion is the act of changing the current use of a
piece of agricultural land into some other use as
approved by the Department of Agrarian Reform.
Reclassification, on the other hand, is the act of
specifying how agricultural lands shall be utilized for
non-agricultural uses such as residential, industrial,
commercial, as embodied in the land use plan, subject
to the requirements and procedure for land use
conversion....
Reclassification also includes the reversion of non-
agricultural lands to agricultural use.220
The power of the local government to convert or reclassify
lands to residential lands to non-agricultural lands is not subject to
the approval of the Department of Agrarian Reform.22 However,
reclassification and plans for expropriation by local government
units will not ipso facto convert an agricultural property to residential,
industrial or commercial. In the absence of any Department of
Agrarian Reform approval for the conversion of respondent's
property or an actual expropriation by a local government, the
character or use of said property did not change from agricultural to
residential. Respondent's property remains agricultural and should
be valued as such.m2 The conversion of agricultural lands into non-
agricultural uses shall be strictly regulated and may be allowed only
when the conditions prescribed under Republic Act No. 6657 are
present.22
The reclassification of land does not divest the Department of
Agrarian Reform of agrarian law issues over the land in question.
22
o Buklod nang Magbubukid sa Lupaing Ramos, Inc. v. E.M. Ramos and Sons, Inc.,
G.R. No. 131481, March 16, 2011.
22
Pasong Bayabas Farmers Association, Inc. v. Court of Appeals, et al., G.R. No.
142359, May 25,2004.
= Land Bank of the Philippines v. Livioco, G.R. No. 170685, September 22,2010.
223
Department of Agrarian Reform v. Sarangani Agricultural Co., Inc., G.RI No.
165547, January 24, 2007.
The Department of Agrarian Reform Adjudication Board retains

jurisdiction over a complaint filed by a tenant for threatened
ejectment despite the reclassification of an agricultural land to non-
agricultural land by a local government unit under Section 20. This is
true because:
1. Jurisdiction is determined by the statute in force at the
time of the commencement of the action. Likewise settled
is the rule that jurisdiction over the subject matter is
determined by the allegations of the complaint. The DAR
has primary jurisdiction to determine and adjudicate
agrarian reform matters and shall have exclusive original
jurisdiction over all matters involving the implementation
of the agrarian reform except those falling under the
exclusive jurisdiction of the Department of Agriculture
(and the Department of Environment and Natural
Resources). Primary jurisdiction means in case of seeming
conflict between the jurisdictions of the DAR and regular
courts, preference is vested with the DAR because of its
expertise and experience in agrarian reform matters.
Section 50 is also explicit that except for the DA and
DENR, all agrarian reform matters are within the
exclusive original jurisdiction of the DAR. 224
2. Section 20 (e) of the Code is unequivocal that nothing in
said section shall be construed "as repealing, amending or
224Republic Act No. 6657 (1989) in part provides:

Section 50. Quasi-JudicialPowers of the DAR. - The DAR is
hereby vested with the primary jurisdiction to determine and
adjudicate agrarian reform matters and shall have exclusive
original jurisdiction over all matters involving the
implementation of agrarian reform, except those falling under
the exclusive jurisdiction of the Department of Agriculture and
the Department of Environment and Natural Resources.
It shall not be bound by technical rules of procedure and
evidence but shall proceed to hear and decide all cases, disputes
or controversies in a most expeditious manner, employing all
reasonable means to ascertain the facts of every case in
accordance with justice and equity and the merits of the case.
Toward this end, it shall adopt a uniform rule of procedure to
achieve a just, expeditious and inexpensive determination of
every action or proceeding before it...
modifying in any manner the provisions of Republic Act

No. 6657."=5
As such, the DARAB retains jurisdiction over disputes arising
from agrarian reform matters even though the landowner or
respondent interposes the defense of reclassification of the subject lot
from agricultural to non-agricultural use.
The reclassification of agricultural land does not
automatically allow a landowner to change its use. The landowner
has to undergo the process of conversion before she is permitted to
use the agricultural land for other purposes. Agricultural lands
though reclassified to residential, commercial, industrial, or other
non-agricultural uses must still undergo the process of conversion
before they can be used for the purpose for which they are
intended.22 6
Nevertheless, DAR's conversion authority can only be
exercised after the effectivity of Republic Act No. 6657 on June 15,
1988. Reclassification of agricultural lands after said date is already
subject to DAR's conversion authority. The Court further explained
that:
Any reclassification of agricultural lands to
residential, commercial, industrial, or other non-
agricultural uses either by the local governments or by
way of Presidential Proclamations enacted on or after
15 June 1988 must undergo the process of conversion,
despite having undergone reclassification, before
agricultural lands may be used for other purposes. =7
The Supreme Court explained, however, that when public
agricultural lands have been reserved in whole or in part for public
use or purpose (like public schools, among others) through
Presidential Proclamations conversion is no longer necessary because
the reservation of public agricultural lands for
...
public use or purpose in effect converted the same to
225
Laynesa v. Uy, G.R. No. 149553, February 29,2008.
Chamber of Real Estate and Builders Association, Inc. v. The Secretary of
226
Agrarian Reform, G.R. No. 183409, June 18,2010.
w Chamber of Real Estate and Builders Association, Inc. v. The Secretary of
Agrarian Reform, G.R. No. 183409, June 18, 2010.
such use without undergoing any conversion process

and that they must be actually, directly and
exclusively used for such public purpose for which
they have been reserved, otherwise, they will be
segregated from the reservations and transferred to
the DAR for distribution to qualified beneficiaries
under the CARP. More so, public agricultural lands
already reserved for public use or purpose no longer
form part of the alienable and disposable lands of the
public domain suitable for agriculture. Hence, they are
outside the coverage of the CARP and it logically
follows that they are also beyond the conversion
authority of the DAR.22
Republic Act No. 8435 or the Agriculture and Fisheries
Modernization Act of 1997 contains provisions that deal directly with
the use of land by local governments. There are additional
restrictions on land conversion, to wit:
FisherisDevelopent Zones. - The Deparmt, in

nsultation wwithithe De en f A grian.Reform
mi
the iepartment of Trade and Induhstry, the
Diepatfierit of Environment and Noatural Resources,
s Dof Science.andTechnologytheconcerned
~LGUs, the organized farmers and fisherfolk groups,
the private9. sector
SECTION and
estateain
Del communities.shall,
BuidersAoaticn without
gIc v.Te Seary o
p~rejudcke to the development~ of identified~ economic1
fzones and free ports, establish and delinieate, based on
sound resource accounting, the SAFDZm9 within onie
!(1) year from the effectivity of this Act
~All irrigated lands, irrigable lan~ds already covered by!
M2Chamber of Real Estate and Builders Association, Inc. v. The Secretary of.
Agrarian Reform, G.R. No. 183409, June 18,2010.
229Telaw defines Strategic Agriculture and Fisheries Development Zones (SAFDZ)
as "areas within the NPAAAD identified for production, agro-processing and

marketing activities to help develop and modernize with the support of government,.
the agriculture and fisheries sectors in an environmentally and socio-culturally
sound manner."
priod of two (2) years, tae land shall be subject to!

iescheat proceedings.
aAny on found guilty of premature or illegal
cconversion shall be penalized with imprisonment ofn
[two (2) to six (6) years, or a fine equivalent to onel"
rhundred percent (100%) of the government'sh
invetrent cost, or both, at the discretion of the court!
dand an accessory penalty of forfeiture of the land and[
[any improvement thereon.
Pn addition, the DAR may impose the following ,
,penalties, after determining in an administrativeL
Proceedings that violation of this law has been
ia) Cancellation or withdrawal of the

!authorization for land use cornversion; and
tb) Blacklisting, 'or automatic~ disapproval o
,pe nding and subsequent conversion
applictonthttey myfile withthe DAR.
A reading of recent Supreme Court decisions suggests that

the conversion of land is a simple issue. In truth, land conversion is a
politically-charged issue carried out at the end of the century at a
scale that threatened the country's food security and limited the
availability of land for agrarian reform. The seemingly unabated
conversion was made possible by "a complex web of legislation" that
"1created numerous loopholes and opportunities for evasion without
adequate deterrents." m3Some poorly reasoned Supreme Court
decisions also facilitated the conversion of agricultural lands.231
230 Philip F. Kelly, Urbanization and the Politics of Land in the Manila Region, 590
ANNALs Am. AcAD. PoL. &Soc. Sci. 170-187 (2003).
3
2 1 See Dante B. Gatmaytan, The Construction and Constrictionof Agrarian Reform Law,
73 PHIL. L. J. 661-723 (1999) (discussing judicial complicity in massive land

conversions).
SECTION 21. Closure and Opening of Roads. - (a) A

local government unit may, pursuant to an ordinance,
permanently or temporarily close or open any local
road, alley, park, or square falling within its
jurisdiction: Provided, however, That in case of
permanent closure, such ordinance must be approved
by at least two-thirds (2/3) of all the members of the
sanggunian, and when necessary, an adequate
substitute for the public facility that is subject to
closure is provided.
(b) No such way or place or any part thereof shall be
permanently closed without making provisions for the
maintenance of public safety therein. A property thus
permanently withdrawn from public use may be used
or conveyed for any purpose for which other real
property belonging to the local government unit
concerned may be lawfully used or conveyed:
Provided, however, That no freedom park shall be
dosed permanently without provision for its transfer
or relocation to a new site.
(c) Any national or local road, alley, park, or square
may be temporarily closed during an actual
emergency, or fiesta celebrations, public rallies,
agricultural or industrial fairs, or an undertaking of
public works and highways, telecommunications, and
waterworks projects, the duration of which shall be
specified by the local chief executive concerned in a
written order: Provided, however, That no national or
local road, alley, park, or square shall be temporarily
closed for athletic, cultural, or civic activities not
officially sponsored, recognized, or approved by the
local government unit concerned.
(d) Any city, municipality, or barangay may, by a duly
enacted ordinance, temporarily close and regulate the
use of any local street, road, thoroughfare, or any
other public place where shopping malls, Sunday, flea
or night markets, or shopping areas may be
established and where goods, merchandise,
foodstuffs, commodities, or articles of commerce may

be sold and dispensed to the general public.
As a general rule, local roads used for public service are

considered public property under the absolute control of Congress.
As such, local governments have no authority to control or regulate
their use. Section 21 of the Local Government Code delegates to
political subdivisions some control of local roads. 232
A public street is property for public use, hence outside the
commerce of man as provided under Articles 4202z and 42434 of the
Civil Code. As such, it may not be the subject of lease or other
contract. Such leases or licenses are void for being contrary to law.
The right of the public to use the city streets may not be bargained
away through contract and the interests of a few should not prevail
over the good of the greater number in the community whose health,
peace, safety, good order and general welfare, the city officials are
under legal obligation to protect.3
In one case, 6 the Court upheld the legality of Resolution No.
158 of the Provincial Board of Catanduanes. Said resolution closed
232 Figuracion v. Spouses Cresenciano, G.R. No. 155688, November 28,2007.

ZMArtide 420 of the Civil Code provides:
ARTICLE 420. The following things are property of public
dominion:
(1) Those intended for public use, such as roads, canals, rivers,
torrents, ports and bridges constructed by the State, banks, shores,
roadsteads, and others of similar character;
(2) Those which belong to the State, without being for public use,
and are intended for some public service or for the development of
the national wealth.
23
Article 424 of the Civil Code provides:
ARTICLE 424. Property for public use, in the provinces, cities, and
municipalities, consist of the provincial roads, city streets,
municipal streets, the squares, fountains, public waters,
promenades, and public works for public service paid for by said
provinces, cities, or municipalities.
All other property possessed by any of them is patrimonial and
shall be governed by this Code, without prejudice to the
provisions of special laws.
2m Dacanay v. Asistio, G.R. No. 93654, May 6,1992.
z6 Cabrera v. Court of Appeals, G.R. No. 78673, March 18,1991.
the old road leading to the new Capitol Building of the province and
gave to the owners of the properties traversed by the new road equal
area as per the survey of the Highway District Engineer. The Court
held in this case that the provincial board can order the closure of a
road and use or convey it for other purposes. The Court said:
The authority of the provincial board to dose that
road and use or convey it for other purposes is
derived from the provisions of Republic Act No. 5185
in relation to Section 2246 of the Revised
Administrative Code. While it is true that the above
cases dealt with city councils and not the provincial
board, there is no reason for not applying the doctrine
announced therein to the provincial board in
connection with the closure of provincial roads. The
provincial board has, after all, the duty of maintaining
such roads for the comfort and convenience of the
inhabitants of the province.
A camino vecinal is a municipal road and also property for
public use. Pursuant to the above powers of a local government unit,
a municipality has the unassailable authority to (a) prepare and
adopt a land use map, (b) promulgate a zoning ordinance which may
consider, among other things, the municipal roads to be constructed,
maintained, improved or repaired and (c) close any municipal
road.23 7
SECTION 22. Corporate Powers. - (a) Every local

government unit, as a corporation, shall have the
following powers:
(1) To have continuous succession
in its corporate name;
(2) To sue and be sued;
(3) To have and use a corporate seal;
(4) To acquire and convey real or
personal property;
237 Spouses Pilapil v. Court of Appeals, G.L No. 97619, November 26,1992.
(5) To enter into contracts; and

(6) To exercise such other powers
as are granted to corporations, subject
to the limitations provided in this Code
and other laws.
(b) Local government units may continue using,
modify, or change their existing corporate seals:
Provided, That newly established local government
units or those without corporate seals may create their
own corporate seals which shall be registered with the
Department of the Interior and Local Government:
Provided, further, That any change of corporate seal
shall also be registered as provided hereon.
(c) Unless otherwise provided in this Code, no
contract may be entered into by the local chief
executive in behalf of the local government unit
without prior authorization by the sanggunian
concerned. A legible copy of such contract shall be
posted at a conspicuous place in the provincial capitol
or the city, municipal or barangay hall.3
(d) Local government units shall enjoy full autonomy
in the exercise of their proprietary functions and in the
limitations provided in this Code and other applicable
laws.
23
Prior authorization by the sanggunian concerned is required before the local chief
executive may enter into contracts on behalf of the local government unit See
Quisumbing v. Garcia, G.R. No. 175527, December 8, 2008. In this case, the Supreme
Court held that Sections 306 and 346 of the Code are not exceptions to Section 22 (c)
because that would render the requirement of prior sanggunian authorization
superfluous, useless and irrelevant The Court explained that there would be no time
when such authorization would be required, as in contracts involving the
disbursement of appropriated funds. Yet this is obviously not the effect Congress
had in mind when it required, as a condition to the local chief executive's
representation of the local government unit in business transactions, the prior
authorization of the sanggunian concerned. The requirement was added to temper
the authority of the local chief executive, and in recognition of the fact that the
corporate powers of the local government unit are wielded as much by its chief
executive as by its council.
The fact that local governments are corporations has several

implications. As the Court explained in City of Manila v. Intermediate
Appellate Court:29
Under Philippine laws, the City of Manila is a political
body corporate and as such endowed with the
faculties of municipal corporations to be exercised by
and through its city government in conformity with
law, and in its proper corporate name. It may sue and
be sued, and contract and be contracted with. Its
powers are two-fold in character - public,
governmental or political on the one hand, and
corporate, private and proprietary on the other.
Governmental powers are those exercised in
administering the powers of the state and promoting
the public welfare and they include the legislative,
judicial, public and political. Municipal powers on the
one hand are exercised for the special benefit and
advantage of the community and include those which
are ministerial, private and corporate. In McQuillin on
Municipal Corporation, the rule is stated thus: "A
municipal corporation proper has ... a public character
as regards the state at large insofar as it is its agent in
government, and private (so called) insofar as it is to
promote local necessities and conveniences for its own
community (Torio v. Fontanilla, 85 SCRA 599 [19781).
In connection with the powers of a municipal
corporation, it may acquire property in its public or
governmental capacity, and private or proprietary
capacity. The New Civil Code divides such properties
into property for public use and patrimonial
properties (Article 423), and further enumerates the
properties for public use as provincial roads, city
streets, municipal streets, the squares, fountains,
public waters, promenades, and public works for
public service paid for by said provisions, cities or
municipalities, all other property is patrimonial
G.R. No. 71159, November 15,1989.

without prejudice to the provisions of special laws

(Article 424; Province of Zamboanga del Norte v. City
of Zamboanga, et al., 22 SCRA 1334 [1968]).
Thus in Torio v. Fontanilla, supra, the Court declared
that with respect to proprietary functions the settled
rule is that a municipal corporation can be held liable
to third persons ex contractu...
Municipal corporations are generally not liable for torts
committed by them in the discharge of governmental functions and
can be held answerable only if it can be shown that they were acting
in a proprietary capacity. Suits against local governments are
allowed so that the claimant may show that the defendant was not
acting in its governmental capacity when the injury was committed,
or that the case comes under the exceptions recognized by law. In the
absence of any evidence to the contrary, it is presumed that the
official was performing duties or tasks pertaining to his office.2' 0
Ownership of Property
If the property is owned by the municipal corporation in its
public and governmental capacity, the property is public and
Congress has absolute control over it. But if the property is owned in
its private or proprietary capacity, then it is patrimonial and
Congress has no absolute control. The municipality cannot be
deprived of it without due process and payment of just
compensation.
The Supreme Court, in one case, however, refused to apply
Articles 423 and 424 of the Civil Code which defines local
governments' property for public use and patrimonial property.
Instead, it relied on "the norm obtaining under the principles
constituting the law of Municipal Corporations" because the Court
was not inclined to hold that municipal property held and devoted to
public service is in the same category as ordinary private property.
As ordinary private properties, they can be levied upon and attached
and acquired thru adverse possession to the detriment of the local
240 San Fernando v. Firme, G.R. No. L-52179, April 8,1991.

community. The Court also pointed out that the classification of

properties under Article 424 was "without prejudice to the
provisions of special laws." For purpose of this article, the principles
obtaining under the Law of Municipal Corporations can be
considered as "special laws." Hence, the classification of municipal
property devoted for distinctly governmental purposes as public
should prevail over the Civil Code classification in this particular
case.241
The rule was reiterated by the Court in another case:
...regardless of the source or classification of land in
the possession of a municipality, excepting those
acquired with its own funds in its private or corporate
capacity, such property is held in trust for the State for
the benefit of its inhabitants, whether it be for
governmental or proprietary purposes. It holds such
lands subject to the paramountpower of the legislatureto
dispose of the same, for after all it owes its creation to
it as an agent for the performance of a part of its public
work, the municipality being but a subdivision or
instrumentality thereof for purposes of local
administration. Accordingly, the legal situation is the
same as if the State itself holds the property and puts
it to a different use. The property, as has been
previously shown, was not acquired by the City of
Manila with its own funds in its private or proprietary
capacity. That it has in its name a registered title is not
questioned, but this title should be deemed to be held
in trust for the State as the land covered thereby was
part of the territory of the City of Manila granted by
the sovereign upon its creation.242
Capacity to Sue and Be Sued
In Municipal Board v. Court of Tax Appeals,243 the Board of

Assessment of Appeals of the City of Cebu exempted certain lots of
241
Province of Zamboanga v. City of Zamboanga, G.R. No. L-24440, March 28,1968.
242 Rabuco v. Villegas, G.R Nos. L-24661, L-24915 and L-24916, February 28,1974.
243 Municipal Board v. Court of Tax Appeals, G.R. No. L-18946, December 26,1964.
Southern Philippines Foundation from taxation. The Municipal

Board appealed to the Court of Tax Appeals. The Court of Tax
Appeals dismissed the case on the ground that the City of Cebu,
represented by its Municipal Board, cannot appeal from the decision
of the Board of Assessment Appeals. The Court of Tax Appeals
concluded that the Board of Assessment Appeals is merely the
instrumentality of the City of Cebu and the latter, being a
governmental agency, is not among those who may appeal to the
Court of Tax Appeals as enumerated in Section 11 of Republic Act
No. 1125. '
The Court held that the City of Cebu constitutes a political
body corporate, created by a special charter (Commonwealth Act No.
58), and endowed with the powers which pertain to a municipal
corporation. As such, it possesses the capacity to sue and be sued. As
to the personality of the Municipal Board to represent the City of
Cebu in this suit, Section 58 of Commonwealth Act No. 58 expressly
vests in the Municipal Board the authority to appeal the decision of
the City Assessor to the Board of Assessment Appeals. This indicates
legislative intent to lodge in the Municipal Board the right to
represent the City in an appeal from an adverse decision of the Board
of Assessment Appeals.
Under Section 22 of the Code, all local government units may
be sued. Paragraph 2 is a Congressional grant of consent to be sued.
However, this does not mean that all local governments are
necessarily liable. Suability and liability are not synonymous.
Suability depends on the consent of the state to be sued, while
liability depends on the applicable law and the established facts. The
circumstance that a state is suable does not necessarily mean that it is
liable; on the other hand, it can never be held liable if it does not first
consent to be sued. Liability is not conceded by the mere fact that the
state has allowed itself to be sued. When the state does waive its
sovereign immunity, it is only giving the plaintiff the chance to
prove, if it can, that the defendant is liable.244
2
United States of America v. Guinto, G.R. No. 76607, February 26,1990.
SECTION 23. Authority to Negotiate and Secure Grants.

- Local chief executives may, upon authority of the
sanggunian, negotiate and secure financial grants or
donations in kind, in support of the basic services or
facilities enumerated under Section 17 hereof, from
local and foreign assistance agencies without necessity
of securing clearance or approval therefor from any
department, agency, or office of the national
government of from any higher local government
unit: Provided, That projects financed by such grants
or assistance with national security implications shall
be approved by the national agency concerned:
Provided, further, That when such national agency
fails to act on the request for approval within thirty
(30) days from receipt thereof, the same shall be
deemed approved.
The local chief executive shall, within thirty (30) days
upon signing of such grant agreement or deed of
donation, report the nature, amount, and terms of
such assistance to both Houses of Congress and the
President.
SECTION 24. Liability for Damages. - Local
government units and their officials are not exempt
from liability for death or injury to persons or damage
to property.
It is not clear if Section 24 intended to broaden the liability of

local governments and their officials. The rule under Batas Pambansa
Blg. 337 provided that:
SECION13.- Nn-Labiityfor Damnages. UIn1ess~

,otherwise provided by law, no province, city,,
municipality or barangay shall be liable for injuries or!
,,amages to persons or property arising from the act or
;omission of any of its officers or employees while in~
the performance of their official functions.
Section 24 of the present law does not restrict immunity from

liability to the performance of official functions. It can be argued that
since the present law does not limit this immunity to official
functions, then the framers may have intended to alter jurisprudence.
Section 13 of Batas Pambansa Big. 337 has been the subject of
many Supreme Court decisions. The Supreme Court has held that a
municipality is not liable for the acts of its officers or agents in the
performance of its governmental functions. The state being immune
for injuries suffered by private individuals in the administration of
strictly governmental functions, like immunity is enjoyed by the
municipality in the performance of the same duties, unless it is
expressly made liable by statute. 245 The rule, however, is not
absolute:
[I]t should be clear that a municipality is not exempt
from liability for the negligent performance of its
corporate or proprietary or business functions. In the
administration of its patrimonial property, it is to be
regarded as a private corporation or individual so far
as its liability to third persons on contract or in tort is
concerned. Its contracts, validly entered into, may be
enforced and damages may be collected from it for the
torts of its officers or agents within the scope of their
employment in precisely the same manner and to the
same extent as those of private corporations or
individuals. As to such matters the principles of
respondeatsuperiorapplies. It is for these purposes that
the municipality is made liable to suits in the courts. 246
The liability of local officials is not determined exclusively by
Section 24. Other laws, such as the Civil Code, contain sources of
liability. See, for example, the following articles:
ARflCLEj4.1heanemberof--ci-t-y ormunidcipa 1
1lice force refuses or fails to render aid or protecfion
245 Mendoza v. de Leon, G.R. No. L-9596, February 11, 1916.
246
Mendoza v. de Leon, G.R. No. L-9596, February 11, 1916.
Moral and Exemplary Damages

In Quezon City Government v. Dacara,247 the Supreme Court
held that a local government unit may be liable for moral and
exemplary damages. The case began when on February 28, 1988
Fulgencio Dacara, Jr., while driving a car, rammed into a pile of
earth/street diggings found at Matahimik St., Quezon City, which
was then being repaired by the Quezon City government. Dacara
sustained bodily injuries and the vehicle suffered extensive damage
for it turned turtle when it hit the pile of earth.
To award moral damages, a court must be satisfied with
proof of the following requisites: (1) an injury -whether physical,
mental, or psychological-clearly sustained by the claimant; (2) a
culpable act or omission factually established; (3) a wrongful act or
omission of the defendant as the proximate cause of the injury
sustained by the claimant; and (4) the award of damages predicated
on any of the cases stated in Article 2219. Article 2219 (2) specifically
allows moral damages to be recovered for quasi-delicts, provided that
the act or omission caused physical injuries.
In this case, however, no other evidence (such as a medical
certificate or proof of medical expenses) was presented to prove
Fulgencio Jr. suffered injuries other than his bare assertion.
247 G.R. No. 150304, June 15, 2005.

Article 2231 of the Civil Code mandates that in cases of quasi-

delicts, exemplary damages may be recovered if the defendant acted
with gross negligence. Gross negligence means such utter want of
care as to raise a presumption that the persons at fault must have
been conscious of the probable consequences of their carelessness,
and that they must have nevertheless been indifferent (or worse) to
the danger of injury to the person or property of others. The
negligence must amount to a reckless disregard for the safety of
persons or property. Such a circumstance obtains in the instant case.
The Court concluded that the city showed "a complete
disregard by petitioners of any adverse consequence of their failure
to install even a single warning device at the area under renovation."
By carrying on the road diggings in a dimly lit street without any
warning or barricade, the city "demonstrated a wanton disregard for
public safety." It is clear that under the circumstances, there is
sufficient factual basis for a finding of gross negligence on their part.
Article 2229 of the Civil Code provides that exemplary
damages may be imposed by way of example or correction for the
public good. The award of these damages is meant to be a deterrent
to socially deleterious actions. Public policy requires such imposition
to suppress wanton acts of an offender. It must be emphasized that
local governments and their employees should be responsible not
only for the maintenance of roads and streets, but also for the safety
of the public. Thus, they must secure construction areas with
adequate precautionary measures.
Attorney's fees may be awarded if an official was forced to
litigate in order to claim his lawful salary which was unduly denied
him for three years and that the Mayor (who withheld it) acted in
gross and evident bad faith in refusing to satisfy the former's claim.
In one case, the Court held that the Mayor solely responsible vetoed
the resolution of the sangguniang bayan appropriating the salary of
the petitioner without just cause. The Mayor exceeded his authority
in an arbitrary manner when he vetoed the resolution since there
were sufficient municipal funds from which the salary of the
petitioner could be paid.248
248 Pilar v. Sanggunian Bayan ng Dasol, Pangasinan, G.R. No. 63216, March 12,1984.
Municipal corporations may be held liable for the back pay or

wages of employees or laborers illegally separated from the service,
including those involving primarily governmental functions, such as
those of policemen. 249
Liabilityfor Death
A city cannot be held liable for deaths caused by the alleged
negligence in its failure to supervise the area where the septic tank is
located. The Supreme Court held that the fact that the victims had
surreptitiously entered the septic tank and cleaned it without
clearance from the market master or any of the security guards "goes
against their good faith." 20
The Supreme Court also held that a municipal mayor cannot
be held solidarily liable for the negligent acts of the driver assigned
to him who accidentally kills a pedestrian en route to the airport. In
Spouses Jayme v. Apostol,25' the Court explained that the Municipality
of Koronadal was the employer of the driver at the time of the
accident. It was irrelevant that the driver of the vehicle was assigned
to Mayor Miguel during the time of the accident. An employer-
employee relationship still exists even if the employee was loaned by
the employer to another person or entity because control over the
employee subsists.
The Court added that in the absence of an employer-
employee relationship establishing vicarious liability, the driver's
negligence should not be attributed to a fellow employee who only
happens to be an occupant of the vehicle. Whatever right of control
the Mayor had over the driver cannot justify an application of the
doctrine of vicarious liability. Mayor Miguel was a mere passenger at
the time of the accident and "only the negligent driver, the driver's
employer, and the registered owner of the vehicle are liable for the
249
Guillergan v. Ganzon, G.R. No. L-20818, May 25,1966.
25
oFernando v. Court of Appeals, G.R. No. 92087, May 8,1992.
2
51 G.R. No. 163609, November 27,2008.
death of a third person resulting from the negligent operation of the

vehicle." 252
PersonalLiability of the Official

A public official may be held personally liable if the
3
expenditure of government funds was made in violation of law.5
In the case Osmefla v. Commission on Audit, 2 4 Cebu City
engaged the services of two construction companies to construct and
renovate the Cebu City Sports Complex. While the construction was
being undertaken, Cebu Mayor Osmefia issued a total of 20
Change/Extra Work Orders. Thereafter, the two construction
companies demanded payment of the extra work they performed.
The Commission on Audit (COA) disallowed the damages,
attorney's fees and litigation expenses awarded in favor of two
construction companies in the collection cases filed against the City
of Cebu, and made these charges personal liability of Mayor Osmefia.
The COA found that the damages were paid to WTCI and DCDC
pursuant to final judgments rendered against the City for its
unreasonable delay in paying its obligations and that these
judgments would not be rendered against the City had it not been for
the change and extra work orders that Mayor Osmefia made which
(a) it considered as unnecessary, (b) were without the sanggunian's
approval, and (c) were not covered by a supplemental agreement.
On appeal to the Supreme Court, the damages were imposed
as liability of the City and not the personal liability of its mayor.
According to the Court, the prevailing circumstances at the time the
change and extra work orders were executed and completed indicate
that the City of Cebu tacitly approved these orders, rendering a
supplemental agreement or authorization from the sanggunian
unnecessary. Hence, since the expenditure of government fund was
made in accordance with law, the public official concerned cannot be
held personally liable.
252
Spouses Jayme v. Apostol, G.R. No. 163609, November 27, 2008. The Court also
said that Koronadal could not have been sued because it was immune from suit The
Court seemed to assume that the acts in this case were governmental in nature.
2
w Osmena v. Commission on Audit, G.R. No. 188818, May 31,2011.
254 G.R.No. 188818, May 31, 2011.
Chapter Ill
Intergovernmental Relations
Article I
National Government and Local Government Units
Article X of the 1987 Constitution provides:
SECTION 2. The territorial and political subdivisions

shall enjoy local autonomy....
SECTION 4. The President of the Philippines shal
exercise general supervision over local governments.,
Provinces with respect to component cities and
Imunicipalities, and cities and municipalities with
respect to component barangays, shall ensure that the
acts of their component units are within the scope of
[thieir prescribed powers and functions.4
The Local Government Code reiterates the constitutional

mandate in Section 25:
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.
The Supreme Court, analyzing a similar provision in the 1935

Constitution has held that under this constitutional provision, "the
President has been invested with the power of control of all the
executive departments, bureaus, or offices, but not of all local
governments over which he has been granted only the power of general
supervision as may be provided by law." It went on to explain that:
The Department head as agent of the President has
direct control and supervision over all bureaus and
offices under his jurisdiction as provided for in Section
79(C) of the Revised Administrative Code, but he does
not have the same control of local governments as that
exercised by him over bureaus and offices under his
jurisdiction. Likewise, his authority to order the
investigation by any act or conduct of any person in
the service of any bureau or office under his
department is confined to bureaus or offices under his
jurisdiction and does not extend to local governments over

which, as already stated, the President exercises only
general supervision as may be provided by law, subject
to constitutional limitations. Removal and suspension
of public officers are always controlled by the
particular laws applicable and its proper construction.
The President, as he exercises only a supervisory
power over the municipal mayors, may not directly
suspend or remove such officers.-5
The change in the text of Article X, Section 4 of the 1987
Constitution, deleting the phrase "as may be provided by law," did
not divest the president of his power to provide administrative
sanctions against local officials. The deletion merely emphasizes the
policy of local autonomy by severing the discipline of local officials
from legislative control and intervention. This, however, did not
remove the power of the president to supervise local officers. Such
power of supervision necessarily includes the power to investigate
and the two are not incompatible. 26
The Supreme Court has been lenient in mapping out the
boundaries of the President's power of supervision. In Drilon v.
Lim,25 7 the Court upheld the validity of Section 187 of the Local
Government Code 258 which authorized the Secretary of Justice to
25
1 Hebron v. Reyes, G.R. No. L-9124, July 28,1958.
256
Ganzon v. Court of Appeals, G.R. Nos. 93252,93746 and 95245, August 5,1991.
257
Drilon v. Lim, G.R. No. 112497, August 4,1994.
258
Section 187 provides:
SECTION 187. Procedure Jbr Approval and Effectivity of Tax
Ordinancesand Revenue Measures; Mandatory PublicHearings. - The
procedure for approval of local tax ordinances and revenue
measures shall be in accordance with the provisions of this Code:
Provided, That public hearings shall be conducted for the purpose
prior to the enactment thereof: Provided,further,That any question
on the constitutionality or legality of tax ordinances or revenue
measures may be raised on appeal within thirty (30) days from the
effectivity thereof to the Secretary of Justice who shall render a
decision within sixty (60) days from the date of receipt of the
appeal: Provided, however, That such appeal shall not have the
effect of suspending the effectivity of the ordinance and the
accrual and payment of the tax, fee, or charge levied therein:
Provided,finally, That within thirty (30) days after receipt of the
decision or the lapse of the sixty-day period without the Secretary
address the constitutionality or legality of a tax ordinance. The Court

upheld the provision, saying that the power of supervision includes
the act of a higher official to review the constitutionality or legality of
an ordinance and if warranted, to revoke it on either or both of these
grounds. In doing so, he is not permitted to substitute his own
judgment for the judgment of the local government that enacted the
measure. He is only reviewing the measure to determine if his
subordinates were performing their functions in accordance with
law. This is not an act not of control but of mere supervision.2 59
Drilon may have been incorrectly decided. The real issue in
that case is not limited to the extent of the President's power of
supervision. The problem with Section 187 is that it gives the
Secretary of Justice judicial powers which cannot be sanctioned
under the Constitution.
In Ganzon v. Court of Appeals, 2W the Court held that
"supervision" is not incompatible with the President's disciplinary
authority. In still another case, the Supreme Court held that there is
no incompatibility between the President's power of supervision
over local governments and autonomous regions, and the power
granted to the President to appoint officers-in-charge for the ARMM
was "within the specific confines of Republic Act No. 10153." The
power of supervision is defined as "the power of a superior officer to
see to it that lower officers perform their functions in accordance
with law." This is distinguished from the power of control or "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." 261
Consultations
One of the significant features of the Local Government Code
is the introduction of consultation mechanisms in governance. There
of justice acting upon the appeal, the aggrieved party may file
appropriate proceedings with a court of competent jurisdiction.
25% Drilon v. Lim,G.R. No. 112497, August 4,1994.
26 0
Ganzon v. Court of Appeals, G.R. No. 93252, August 5,1991.
261 Kida v. Senate of the Philippines, G.R. No. 196271, February 28, 2012.
are three provisions that emphasize this innovation. The first is

found in the declaration of policy:
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
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.
The other sections provide as follows:
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.
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.
Senator Pimentel explained that these provisions are meant to

create smoother relations between the national and local
governments concerned and also between the government and the
people in general. It will be noted that under Section 2 (c) of the
Code, consultations are required not only with the local government
units, but also with "non-governmental and people's organizations,
and other concerned sectors of the community before any project or
program is implemented in their respective jurisdictions." 262
In the case of Lina v. Pafio,263 an agent of the Philippine
Charity Sweepstakes Office (PCSO) asked Mayor Calixto Cataquiz,
Mayor of San Pedro, Laguna, for a permit to open the lotto outlet.
The mayor denied his request citing an ordinance - Kapasiyahan
Pimentel, supra note 4.

G.R. No. 129093, August 30, 2001.
Blg. 508, T. 1995-passed by the Sangguniang Panlalawigan of

Laguna supposedly banning lotto operations in the province.
The Supreme Court held, however, that Kapasiyahan Blg.
508, T. 1995 of the Sangguniang Panlalawigan of Laguna merely
stated the "objection" of the council to the said game. Because it is a
mere policy statement on the part of the local council which is not
self-executing, it could not serve as a valid ground to prohibit the
operation of the lotto system in the province of Laguna. Lotto is
authorized by the national government through Republic Act No.
1169. While lotto is a game of chance, the national government deems
it wise and proper to permit it. Hence, the Sangguniang
Panlalawigan of Laguna, a local government unit, cannot issue a
resolution or an ordinance that would seek to prohibit the issuance of
permits.
On the second issue, the Court ruled that Sections 2 (c) and 27
of the Local Government Code of 1991 do not apply mandatorily in
the setting up of lotto outlets around the country. The Court
explained that the provisions apply only to national programs
and/or projects which are to be implemented in a particular local
community. Lotto is neither a program nor a project of the national
government, but of a charitable institution, the PCSO. Though
sanctioned by the national government, it is farfetched to say that
lotto falls within the contemplation of Sections 2 (c) and 27 of the
Local Government Code.
The Court held that Section 27 should be read in conjunction
with Section 26 but concludes that:
Thus, the projects and programs mentioned in Section
27 should be interpreted to mean projects and
programs whose effects are among those enumerated
in Section 26 and 27, to wit, those that: (1) may cause
pollution; (2) may bring about climatic change; (3)
may cause the depletion of non-renewable resources;
(4) may result in loss of crop land, range-land, or
forest cover; (5) may eradicate certain animal or plant
species from the face of the planet; and (6) other
projects or programs that may call for the eviction of a
particular group of people residing in the locality
where these will be implemented. Obviously, none of
these effects will be produced by the introduction of

lotto in the province of Laguna.
This is an unfortunate statement from the Supreme Court
because Section 27 is not limited only to those instances that are
enumerated under Section 26 of the Code. It makes an express
reference to Section 2 (c) of the Code-which is broader in scope. In
other words, the restrictive and erroneous interpretation of the Code
in Lina suggests that both approval of the sanggunian concerned and
the restraints on eviction that may be caused by a government project
or program apply only to cases where there is an adverse impact on
the environment.
This error was carried over in the Bangus Fry Fisherfolk v.
Lanzanas.264 In that case, the Supreme Court held that Congress
introduced Sections 26 and 27 in the Local Government Code to
emphasize the legislative concern "for the maintenance of a sound
ecology and clean environment." These provisions require every
national government agency or government-owned and controlled
corporation to hold prior consultations with the local government
unit concerned and to secure the prior approval of its sanggunian
before implementing "any project or program that may cause
pollution, climatic change, depletion of non-renewable resources,
loss of cropland, rangeland, or forest cover and extinction of animal
or plant species."
The Court did not apply these provisions to the construction
of a mooring facility because:
the mooring facility itself is not environmentally
critical and hence does not belong to any of the six
types of projects mentioned in the law. There is no
statutory requirement for the concerned sanggunian
to approve the construction of the mooring facility. It
is another matter if the operation of the power barge is
at issue. As an environmentally critical project that
causes pollution, the operation of the power barge
needs the prior approval of the concerned sanggunian.
However, what is before this Court is only the
2 G.R No. 131422, July 10, 2003.

construction of the mooring facility, not the operation

of the power barge. Thus, the issuance of the ECC
does not violate Sections 26 and 27 of RA No. 7160.
Again, the error is clear. Section 27 makes an express
reference to consultations mentioned in Section 2 (c) which is not
restricted to environmental concerns.
But in other cases, the Supreme Court had no trouble
applying the provisions on consultations. In Province of Rizal v.
Executive Secretary,265 it emphasized the two requirements of the
consultation provisions of the Local Government Code:
Under the Local Government Code, therefore, two
requisites must be met before a national project that
affects the environmental and ecological balance of
local communities can be implemented: prior
consultation with the affected local communities, and
prior approval of the project by the appropriate
sanggunian. Absent either of these mandatory
requirements, the project's implementation is illegal.
There is a failure to comply with the consultation
requirements under the Local Government Code if a project
proponent conducts an information dissemination campaign months
after an Environmental Compliance Certificate is issued in its favor.
The Court added that:
The lack of prior public consultation and approval is
not corrected by the subsequent endorsement of the
reclamation project by the Sangguniang Barangay of
Caticlan on February 13, 2012, and the Sangguniang
Bayan of the Municipality of Malay on February 28,
2012, which were both undoubtedly achieved at the
urging and insistence of respondent Province.266
In Alvarez v. PICOPResources Inc.,267 the Court added that the
holder of an Integrated Forestry Management Agreement (IFMA) has
to comply with the consultation requirements. The consultation
requirement is not satisfied when the approval of Surigao del Sur
w G.R. No. 129546, December 13,2005.

266
Boracay Foundation, Inc. v. The Province of Aklan, G.R. No. 196870, June 26,2012.
267 G.R. No. 162243, December 3, 2009.
was obtained because it is not the only province affected by the area
covered by the proposed IFMA. The area also extended to Agusan
del Sur, Compostela Valley and Davao Oriental.
PICOP also argued that the requirement under Sections 26
and 27 does not apply to it because it is not a national agency or
government-owned or controlled corporation. The Supreme Court
disagreed and held that:
All projects relating to the exploration, development
and utilization of natural resources are projects of the
State. While the State may enter into co-production,
joint venture, or production-sharing agreements with
Filipino citizens, or corporations or associations at
least sixty per centum of whose capital is owned by
these citizens, such as PICOP, the projects
nevertheless remain as State projects and can never be
purely privateendeavors.
Also, despite entering into co-production, joint
venture, or production-sharing agreements, the State
remains in full control and supervision over such
projects. PICOP, thus, cannot limit government
participation in the project to being merely its
bouncer, whose primary participation is only to
"warrant and ensure that the PICOP project shall have
peaceful tenure in the permanent forest allocated to
provide raw materials for the project."
PICOP is indeed neither a national agency nor a
government-owned or controlled corporation. The
DENR, however, is a national agency and is the
national agency prohibited by Section 27 from issuing
an IFMA without the prior approval of the Sanggunian
concerned. As previously discussed, PICOP's Petition
for Mandamus can only be granted if the DENR
Secretary is required by law to issue an IFMA. We,
however, see here the exact opposite: the DENR
Secretary was actually prohibited by law from issuing
an IFMA, as there had been no prior approval by all
the other Sangguniansconcerned.
In fact, other laws emphasize that national government

projects are required to conform to the provisions of the Local
Government Code. These projects are defined in Republic Act No.
8974 (2000) in this way:
rSliCUON 2-. Natina1G--a..v''nm-nt-P'rojcts. -The Ferm.I,

"unational governm'ent projects" shall refer to all:
national government infrastructure, engineering
works and service contracts, including projects
~undertaken by government-owned and -controlled;
corporations, all projects covered by Republic Act No.:
16957, as amended by Republic Act No. 7718, otherwise
known as the Build-Operate-and-Transfer Law, and'
other related and necessary activities, such as site
acquisition, supply and/or installation of equipment'
and materials, implementation, construction,
completion, operation, maintenance, improvement,
repair and rehabilitation, regardless of the source of
funding.
Section 8 of Republic Act No. 8974 makes a direct reference to

the Code:
SECTION 8. Ecological and Environmental Concerns. -

In cases involving the acquisition of right-of-way, site:
or location for any national government infrastructure,
project, the implementing agency shall take into:
account the ecological and environmental impact of
the project. Before any national government project
could be undertaken, the agency shall consider,
environmental laws, land use ordinances and all
pertinent provisions of Republic Act No. 7160, as'
amended, otherwise known as the Local Government'
'Code of 1991.
Republic Act No. 8975 (2000)2m also stresses the rule that the
national government projects 269 cannot ignore environmental
standards and the requirements of the Local Government Code. The
law provides that the issuance of the permit must follow
environmental laws and the provisions of the Local Government
Code. Section 7 of the law provides:
~cash of the n 'ecessary fees levied under Republic Act!

TNo. 7160, as amended, otherwise known as the Local
Government Code of 1991, the governtor of thec
province or mayor of a highly-urbanized city shall
,immediately issue the necessary permit to extracti
sand, gravel and other quarry resources needed in
government projects. The issuance of said permit shall;
consider environmental laws, land use ordinances and,
the pertinent provisions of the Local Government
~Code relating to environme
2m The complete title of the law is "An Act to Ensure the Expeditious
Implementation and Completion of Government Infrastructure Projects by
Prohibiting Lower Courts from Issuing Temporary Restraining Orders, Preliminary
Injunctions or Preliminary Mandatory Injunctions, Providing Penalties for Violations
Thereof, and for Other Purposes."
2 Republic Act No. 8975, § 2(a) (2000) defines national government projects as:
"National government proects" shall refer to all current and future
national government infrastructure, engineering works and
service contracts, including projects undertaken by goveTnment-
owned and -controlled corporations, all projects covered by
Republic Act No. 6957, as amended by Republic Act No. 7718,
otherwise known as the Build-Operate-and-Transfer Law, and
other related and necessary activities, such as site acquisition,
supply and/or installation of equipment and materials,
implementation, construction, completion, operation,
maintenance, improvement, repair and rehabilitation, regardless
of the source of funding.
The use of the phrase "all current and future national government"
evidently indicates Congress' intent to apply the law to on-going projects. This is not
the case with Rep. Act No. 8974 (2000).
Article II
Relations with Philippine National Police
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,
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.
Section 28 of the Code provides that the relationship of the

local chief executives with the Philippine National Police is governed
by Republic Act No. 6975 (1990), consistently with the Constitution.
Republic Act No. 6975 has since been amended by Republic Act No.
8551 (1998). Before the amendments were made, Republic Act No.
6975 was challenged before the Supreme Court on several
constitutional grounds. Many key provisions have been amended.
The relationship between local governments and the PNP were
redefined as follows:
SECTION 62. The provisions of the second, third,

fourthi and fifth paragraphs of subparagraph (b) (1),
Section 51, Chapter I11-
- of Republic Act No. 6975 are
hereby amended to read as follows:
"The term 'operational supervision and control' shall
mean the power to direct, superintend, and oversee,
the day-to-day functions of police investigation of
'rime, crime prevention activities, and traffic control
inaccordance with the rules and regulations'
promulgated by the Conission.
?1-t- shall -also- includ te- power to direct the)

of:
employment and deployment of twits or elements
the PNP, through the station commander, to ensure,
public safety and effective maintenance of peace andi
order within the locality. For this purpose, the terms1i
,'employment' and 'deployment' salmean as
"Employment' refers to the 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, lawlessness, violence,
rebellious and seditious conspiracy, insurgency,
subversion or other related activities.
"'Deployment' shall mean the orderly and organized
physical movement of elements or units of the PNP
within the province, city or municipality for purposes
of employment as herein defined."
SECTION 63. Section 51 (b) (4) of Republic Act No.'
6975 is hereby amended to read as follows:
"(4) Other Powers. In addition to the aforementioned
the
powers, city and municipal mayors shall have
following authority over the PM' units in their
respective jurisdictions:
i"(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: Provided,however, That in no case
ishall an officer-in-charge be designated for more than
thirty (30) days: Provided,further, That the local peace
and order council may, through the city or municipal
mayor, recommend the recall or reassignment of the
chief of police when, in its perception, the latter has
been ineffective in combating crime or maintaining
,peace and order in the city or municipality: Provided,
[finally, That such relief shall be based on guidelines

established by the NAPOLCOM;
"(ii) Authority to recommend to the provincial
director 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 eligible
previously screened by the peace and order council
the appointment of new members of the PNP to be
.assigned to their respective cities or munidpalitiesi
without which no such appointments shall be attested:
Provided, That whenever practicable and consistentt
with the requirements of the service, PNP members
shall be assigned to the city or municipality of their
Iresidence.
"The control and supervision of anti-gambling
operations shall be within the jurisdiction of local
government executives."
SECTION 64. Automatic Deputation of Local Government
Executives as Commission Representatives. - Governors
and mayors, upon having been elected and living
qualified as such, are automatically deputized as
representatives of the National Police Comnission in,
their respective jurisdiction. As deputized agents of
the Commission, local government executives can
-inspect police forces and units, conduct audit, and
exercise other functions as may be duly authorized by
the Commission.
SECION 65. Section 52 of Republic Act No. 6975 is
hereby amended to read as follows:
"SECTION 52. Suspension or Withdrawal of Deputation.'
- Unless reversed by the President, the Commission
may, after consultation with the provincial governor
and congressman concerned, suspend or withdraw
the deputation of any local executive for any of the
following grounds:.
"(a)Frqent unauthorizdabees; ___
I"(b) uAbuse of atoiy

"(c) Providing material support to criminal elemnents,-
or
'"(d) Engaging in acts inimical to national security or
Iwhich negate the effectiveness of the peace and order
,campaign.
"Upon good cause shown, the President may, directly
or through the Commission, motu proprio,restore such!.
Vdeputation withdrawn from any local executive."-
The PNP is attached to the Department of Interior and Local

Government. As amended, the law now provides:
SECTIO 13. 'Creationand Composition. - A National

Police Commission, hereinafter referred to as the
Commission, is hereby created for the purpose of
effectively discharging the functions prescribed in the
Constitution and provided in this Act. The
Commission shall be an agency attached to the
Department for policy and program coordination. It
shall be composed of a Chairperson, four (4) regular
Commissioners, and the Chief of Pn as ex-officio
member. Three (3) of the regular commissioners shall
come from the civilian sector who are neither active,
nor former members of the police or military, one (1),
of whom shall be designated as vice chairperson by
the President. The fourth regular commidssioner shall4
come from the law enforcement sector either active or:
retired: Provided, That an active member of 'a: law
lenforcement agency shall be considered resigned fromi
said agency once appointed to the Commission:1
!Provided, fusrther, That at least one (1) of thel
!Commissioners shall be a woman. The Secretary of the!
Department shall be the ex.-officio Chairperson of the!
'Commission, while the Vice Chairperson shall act a
~the executive officer of the Commission.-J
An attached agency is defined under the Administrative Code

or Executive Order No. 292 (1987). Book IV, Chapter 7, Section 38 (3)
provides as follows:
[() Attachment..- (a) This refers to the laterl

xreationship between the department or its equivalent
.and the attached agency or corporation, for purposes
:of policy and program coordination. The coordination
may be accomplished by having the department
represented in the governing board of the attached,
agnyor corporation, either as chairman or as a
with or without voting rights,
.member,
if this is
~permitted by the charter; having the attached
corporation or agency comply with a system of
periodic reporting which shall reflect the progress of
programs 'and projects; and having the department or
Ais equivalent provide general policies through its
representative in the board, which shall serve as the
framework for the internal policies of the attached
corporation or agency;
(b) Matters of day-to-day administration or all those
pertaining to internal operations shall be left to the'
discretion or judgment of the executive officer of the
agency or corporation. In the event that the Secretary
and the head of the board or the attached agency or
corporation strongly disagree on the interpretation
and application of policies, and the Secretary is unable
to resolve the disagreement, he shall bring the matter
to the President for resolution and direction;
(c) Government-owned or controlled corporations
attached to a department shall submit to the Secretary
concerned their audited financial statements within
sixty (60) days after the close of the fiscal year; and
(d) Pending submission of the required financial
statements, the corporation shall continue to operate
on the basis of, the preceding year's budget until the
+(,121/,1(
Citation:
Tue Apr 17 11:17:40 2018



financial statements shall have been submitted.

Should any government-owned or controlled
corporation incur an operating deficit at the close of its
fiscal year, it shall be subject to administrative
supervision of the department;, and the corporation's
operating and capital budget shall be subject to the
department's examination, review, modification and
approval. - _ _
Carpio v. Executive Secretary27o addressed many constitutional

challenges to Republic Act No. 6975. The main issue in that case was
the claim that Republic Act No. 6975 "emasculated the National
Police Commission by limiting its power to 'administrative control'
over the Philippine National Police (PNP) -keeping control with the
Department Secretary under whom both the National Police
Commission and the PNP were placed."
The Court disagreed and discussed the principle in
Constitutional Law that the President has control over all executive
departments, bureaus, and offices. This presidential power of control
over the executive branch of government, said the Court, extends
over all executive officers from Cabinet Secretary to the lowliest clerk
and has been held to mean "the power of [the President] 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 with that of the latter." It is said to be at the very "heart of the
meaning of Chief Executive."
The court also discussed the corollary rule to the control
powers of the President known as the "Doctrine of Qualified Political
Agency." Under this doctrine:
All executive and administrative organizations are
adjuncts of the Executive Department, the heads of the
various executive departments are assistants and
agents of the Chief Executive, and, except in cases
where the Chief Executive is required by the
Constitution or law to act in person on the exigencies
27 G.R. No. 96409, February 14,1992.

of the situation demand that he act personally, the

multifarious executive and administrative functions of
the Chief Executive are performed by and through the
executive departments, and the acts of the Secretaries
of such departments, performed and promulgated in
the regular course of business, are, unless disapproved
or reprobated by the Chief Executive presumptively
the acts of the Chief Executive.
Thus, and in short, the President's power of control is
directly exercised by him over the members of the
Cabinet who, in turn, and by his authority, control the
bureaus and other offices under their respective
jurisdictions in the executive department.
According to the Court, the fact that the NAPOLCOM and the
PNP are placed under the Department of the Interior and Local
Government is merely an administrative realignment that would
bolster a system of coordination and cooperation among the
citizenry, local executives and the integrated law enforcement
agencies and public safety agencies created. The organizational set-
up does not detract from the mandate of the Constitution that the
national police force shall be administered and controlled by a
national police commission.
Petitioners also argued that NAPOLCOM was deprived of the
power of control over police units when the law granted the power
to choose the PNP Provincial Director and the Chiefs of Police to the
Governors and Mayors, respectively. They also challenged the power
of "operational supervision and control" over police units in city and
municipal mayors. They challenged the participation of the Civil
Service Commission in appointments to the positions of Senior
Superintendent to Deputy Director-General, as well as the
administration of qualifying entrance examinations. They also
questioned the disciplinary powers of the "People's Law
Enforcement Boards" and city and municipal mayors over members
of the PNP.
The Court sided with Congress in all these issues. It explained
that when the Constitutional Commissioners of 1986 provided that
the authority of local executives over the police units in their
jurisdiction shall be provided by law, they intended that the day-to-
day functions of police work like crime investigation, crime

prevention activities, traffic control, etc., would be under the
operational control of the local executives as it would not be
advisable to give full control of the police to the local executives. The
Commission expressed concern over past practices that bred
warlordism, bossism, and sanctuaries for vices and abuses.
The Court explained that in selecting the Provincial Director
and the Chiefs of Police, local officials act on behalf of the
NAPOLCOLM. Thus, unless countermanded by the NAPOLCOM,
their acts are valid and binding as acts of the NAPOLCOM. The same
is true with respect to the contention on the operational supervision
and control exercised by the local officials. These officials would
simply be acting as representatives of the Commission.
With regard to the participation of the Civil Service
Commission, the Court held that Sections 31 and 32 of the law
underscore the civilian character of the national police force, and will
undoubtedly professionalize the same. On the "People's Law
Enforcement Boards" the Court merely said that the establishment of
PLEBs in every city and municipality would all the more help
professionalize the police force.
There was also a challenge to the validity of Section 12 of the
Act, the pertinent portion of which reads:
Section 12. Reaionship of the.Department with the

Department of National Defense. - During a period of,
twenty-four (24) months from the effectivity of this,
Act, the Armed orces of the Philippines (AP) shall;
ontinue its present role of preserving the internal and!
,external security of the State: Provided, that said!
'period may be extended by the President, if he finds it:
justifiable, for another period not exceeding twenty-I
four (24) months, after which, the Department shall'i
jautornaticaly take over from the APP the primary role[
,of preserving internal security, leaving to the APP itslI
1primar role of pre eving etra euiy
The argument was that the provision constituted an

encroachment upon, interference with, and an abdication by the
President of executive control and commander-in-chief powers.
The Court disagreed. Citing the Records of the Constitutional
Commission, the Court concluded that Section 12 "enforces the
proposition that the national police force does not fall under the
Commander-in-Chief powers of the President." It added:
Section 12 does not constitute abdication of
commander-in-chief powers. It simply provides for
the transition period or process during which the
national police would gradually assume the civilian
function of safeguarding the internal security of the
State. Under this instance, the President, to repeat,
abdicates nothing of his war powers. It would bear to
here state, in reiteration of the preponderant view,
that the President, as Commander-in-Chief, is not a
member of the Armed Forces. He remains a civilian
whose duties under the Commander-in-Chief
provision "represent only a part of the organic duties
imposed upon him. All his other functions are clearly
civil in nature." His position as a civilian Commander-
in-Chief is consistent with, and a testament to, the
constitutional principle that "civilian authority is, at
all times, supreme over the military."
Republic Act No. 8551 also came under attack. In another
case,27 '
the Supreme Court declared Section 8 of Republic Act No.
8551 as unconstitutional. The court explained that as a general rule,
the creation and abolition of public offices is primarily a legislative
function. Congress may abolish any office it creates without
impairing the officer's right to continue in the position held and that
such power may be exercised for various reasons, such as the lack of
funds or in the interest of economy. However, in order for the
abolition to be valid, it must be made in good faith, not for political
or personal reasons, nor in order to circumvent the constitutional
security of tenure of civil service employees.
271 Canonizado v. Aguirre, G.R. No. 133132, January 25,2000.

An abolition of office connotes an intention to do away with

such office wholly and permanently. Where one office is abolished
and replaced with another office vested with similar functions, the
abolition is a legal nullity. Reorganization takes place when there is
an alteration of the existing structure of government offices or units
therein, including the lines of control, authority and responsibility
between them. It involves a reduction of personnel, consolidation of
offices, or abolition thereof by reason of economy or redundancy of
functions. Naturally, it may result in the loss of one's position
through removal or abolition of an office. However, for a
reorganization to be valid, it must also pass the test of good faith.
In the Court's view, Republic Act No. 8551 effected a
reorganization of the PNP, not of the NAPOLCOM. It explained that
these are two separate and distinct bodies, with one having
supervision and control over the other. In fact, it is the NAPOLCOM
that is given the duty of submitting a proposed reorganization plan
of the PNP to Congress. The basic structure of the NAPOLCOM has
been preserved by the amendatory law. There has been no revision in
its lines of control, authority and responsibility. Neither has there
been a reduction in its membership, nor a consolidation or abolition
of the offices constituting the same. Adding the Chief of the PNP as
an ex-officio member of the Commission does not result in a
reorganization.
Power to Appoint the Chiefof Police

In Andaya v. Regional Trial Court, Cebu Citym the Court ruled
that the Mayor of Cebu City may not require the Regional Police
Director to include his prottg( in the list of eligibles to be
recommended by the Regional Police Director to the Mayor from
which the Mayor shall choose the Chief of Police of the City of Cebu.
Section 51 of Republic Act No. 6975 gives authority to the
Mayor of Cebu City to choose the Chief of Police from a list of five (5)
eligibles recommended by the Regional Director, Regional Police
Command No. 7. The National Police Commission has issued
Memorandum Circular No. 95-04 for the implementation of Republic
2n G.R. No. 126661, December 3,1999.

Act No. 6975. It provides that among the qualifications for chief of
police of highly urbanized cities are (1) completion of the Officers'
Senior Executive Course (OSEC) and (2) holding the rank of Police
Superintendent.
The Mayor of Cebu City argued that Memorandum Circular
No. 95-04 of the National Police Commission prescribing such
additional qualifications is not valid as it contravenes the law. The
Court held:
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.
Mayor is not an Independent Counselfor Accused

In People v. Velarde,M the Supreme Court held that Atty.
Domingo cannot be considered as an independent counsel because
he was the Mayor of Malolos at the time. As Mayor, he exercised
"operational supervision and control" over the PNP unit in that
municipality. His powers included the utilization of the elements
thereof for the maintenance of peace and order, the prevention of
crimes, the arrest of criminal offenders and the bringing of offenders
to justice. His duties were inconsistent with those of his
responsibilities to appellant, who was already incarcerated and
tagged as the main suspect in the rape-slay case. Serving as counsel
of appellant placed him in direct conflict with his duty of
"operational supervision and control" over the police. What the
Constitution requires in Article III Section 12 (1) is the presence of
competent and independent counsel, one who will effectively
undertake his client's defense without any intervening conflict of
interest. Evidently, Atty. Domingo, being the mayor of the place
where the investigation was taken, could not act as counsel,
independent or otherwise, of appellant.
Transfer of Inmates
The provincial government, pursuant to its duty to control
and supervise provincial jails within its jurisdiction, must fund the
transfer of an inmate from its provincial jail to the national
penitentiary.
V3 G.R. No. 134278, August 7,2002.

This was the resolution of the Court En Banc as it ordered the

provincial government of Camarines Sur to release funds to effect the
transfer of Zaldy Ilagan from its provincial jail to the New Bilibid
Prison. The Court based its resolution on Section 61 of Republic Act
No. 6975 which provides that "the provincial jails shall be supervised
and controlled by the provincial government within its jurisdiction."
Prior to this resolution, the Supreme Court had ordered that
Ilagan, an inmate convicted of murder by the Regional Trial Court of
Calabanga, Camarines Sur, be transferred to the NBP. Despite a
commitment order issued by RTC Judge Freddie Balonzo, the
Provincial Jail Warden failed to carry out the transfer, attributing the
failure to "budgetary constraints." The Court thus ordered the
provincial government to release funds to effect the transfer of
Ilagan.274
The power to order the release or transfer of a person under
detention by legal process is vested in the court, not in the provincial
government, much less the governor. Section 1731 M of the
Administrative Code of 1917 has been superseded by Section 3, Rule
114 of the Revised Rules of Criminal Procedure, as amended. Section
3, Rule 114 provides:
274 People of the Philippines v. Ilagan, G.R. No. 164379, 15 February 2005. See also
2z Section 1731 provides:
SEC. 1731. Provincialgqvernor as keeper of jail. - The governor of
the province shall be charged with the keeping of the provincial
jail, and it shall be his duty to administer the same in accordance
with law and the regulations prescribed for the government of
provincial prisons. The immediate custody and supervision of the
jail may be committed to the care of a jailer to be appointed by the
provincial governor. The position of jailer shall be regarded as
within the unclassified civil service but may be filled in the
manner inwhich classified positions are filled, and if so filled, the
appointee shall be entitled to all the benefits and privileges of
classified employees, except that he shall hold office only during
the term of office of the appointing governor and until a successor
in the office of the jailer is appointed and qualified, unless sooner
separated. The provincial governor shall, under the direction of
the provincial board and at the expense of the province, supply
proper food and clothing for the prisoners; though the provincial
board may, in its discretion, let the contract for the feeding of the
prisoners to some other person.
3. ~ase
No r ansfe~r except on court order or
KNO person under detention by legal process shall bell
,released or transferred except upon order of the court!
or when he isadmitted to bal.Y6
The transfer was in violation of Section 3 (e) of Republic Act

No. 3019 or the Anti-Graft and Corrupt Practices Act which provides:
Appeal
Where a police officer is dismissed by the PNP Director
General and the dismissal is affirmed by the NAPOLCOM National
Appellate Board, the proper remedy is to appeal the dismissal with
the DILG Secretary. That the NAPOLCOM Chairman is also the
DILG Secretary is of no moment for under the aforecited laws and
regulations, only the DILG Secretary can act on the appeal.m7
Section 45 cannot be construed to prohibit appeals from
decisions of the RAB rendered within the reglementary period, for
276 Ambil, Jr. v. Sandiganbayan, G.R. No. 175457, July 6,2011.

M?Rodriguez v. Court of Appeals, G.R. No. 134278, August 7,2002
while the epigraph of the section is worded Finality of Disciplinary

Action, there is nothing therein that explicitly bars any further appeal.
Complementary laws on discipline of government officials and
employees must then be inquired into considering that in conformity
with the mandate of the Constitution that the PNP must be national
in scope and civilian in character, it is now a part, as a bureau, of the
reorganized DILG. As such, it falls within the definition of the civil
service in Section 2 (1), Article IX-B of the Constitution. For this
reason, Section 91 of the DILG Act of 1990 provides:
SEC,. ~Aplcto bofivlSerice Laws. The Civil

Service Law and its implementing rules and
'regulationts shall apply to all personnel of the
The Civil Service Law referred to in Section 91 of the DILG

Act of 1990 is Subtitle A, Title I, Book V of the Administrative Code
of 1987.278 Section 47 of Chapter 6 thereof provides, inter alia, that in
cases where the decision rendered by a bureau or office is appealable
to the Commission, the same may initially be appealed to the
department and finally to the Commission. In view then of the
aforementioned gap in Section 45 of the DILG Act of 1990, the
provisions of the Civil Service Law and the rules and regulations
implementing it must be taken into account in light of the maxim
interpretareconcordare legibus est optimus interpretandior every statute
must be so construed and harmonized with other statutes as to form
a uniform system of jurisprudence.
As thus construed and harmonized, it follows that if a RAB
fails to decide an appealed case within sixty days from receipt of the
notice of appeal, the appealed decision is deemed final and
executory, and the aggrieved party may forthwith appeal therefrom
to the Secretary of the DILG. Likewise, if the RAB has decided the
appeal within the sixty-day period, its decision may still be appealed
to the Secretary of the DILG.
2
n Executive Order No. 292 (1987).
Article III
Inter-Local Government Relations
SECTION 29. ProvincialRelations 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.
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.
SECTION 31. Submission of Municipal Questions to the
ProvincialLegal Officer or Prosecutor. - In the absence
of a municipal legal officer, the municipal government
may secure the opinion of the provincial legal officer,
and in the absence of the latter, that of the provincial
prosecutor on any legal question affecting the
municipality.
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.
It is the Mayor who can best review the sangguniang

barangay's actions to see if it acted within the scope of its prescribed
powers and functions. This is a local problem to be resolved within
the local government. In New Sun Valley Homeowner's Association, Inc.
v. Sangguniang Barangay,2 9 the Supreme Court upheld the dismissal
of a case questioning the validity of a barangay resolution because
the petitioner failed to exhaust administrative remedies.
SECTION 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.
Chapter IV
Relations with Peoples' and Non-governmental
Organizations
SECTION 34. Role of People's and Non-governmental
Organizations. - Local government units shall
promote the establishment and operation of people's
V9 G.R. No. 156686, July 27,2011.

and non-governmental organizations to become active

partners in the pursuit of local autonomy.
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.
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.
Chapter V
Local Pre-qualification, Bids and Awards Committee
SECTION 37. Local Prequalification, Bids and Awards
Committee (Local PBAC). - (a) There is hereby created
a local prequalification, bids and awards committee in
every province, city, and municipality, which shall be
primarily responsible for the conduct of
prequalification of contractors, bidding, evaluation of
bids, and the recommendation of awards concerning
local infrastructure projects. The governor or the city
or municipal mayor shall act as the chairman with the
following as members:
(1) The chairman of the

appropriations committee of the
sanggunian concerned;
(2) A representative of the minority
party in the sanggunian concerned, if
any, or if there be none, one (1) chosen
by said sanggunian from among its
members;
(3) The local treasurer;
(4) Two (2) representatives of non-
governmental organizations that are
represented in the local development
council concerned, to be chosen by the
organizations themselves; and
(5) Any practicing certified public
accountant from the private sector, to
be designated by the local chapter of
the Philippine Institute of Certified
Public Accountants, if any.
Representatives of the Commission on Audit shall
observe the proceedings of such committee and shall
certify that the rules and procedures for
prequalification, bids and awards have been complied
with.
(b) The agenda and other information relevant to the
meetings of such committee shall be deliberated upon
by the committee at least one (1) week before the
holding of such meetings.
(c) All meetings of the committee shall be held in the
provincial capitol or the city or municipal hall. The
minutes of such meetings of the committee and any
decision made therein shall be duly recorded, posted
at a prominent place in the provincial capitol or the
city or municipal hall, and delivered by the most
expedient means to elective local officials concerned.
In one case, local officials were charged with falsification

under paragraph 2, Article 171 of the Revised Penal Code. It was
alleged that the defendants made it appear that persons have
participated in an act or proceeding when they did not in fact so
participate. The prosecution attempted to show that no public
bidding had taken place for the construction of the extension of the
public market. The Supreme Court, however, held that the absence of
seven PBAC members did not eliminate the possibility that the rest
of the members convened and carried out the public bidding with
four participating bidders. The Court applied the equipoise rule
which provides that where the evidence on an issue of fact is in
equipoise or there is doubt on which side the evidence
preponderates, the party having the burden of proof, which in this
case is the prosecution, loses.280
SECTION 38. Local Technical Committee. - (a) There

is hereby created a local technical committee in every
province, city and municipality to provide technical
assistance to the local prequalification, bids and
awards committees. It shall be composed of the
provincial, city or municipal engineer, the local
planning and development coordinator, and such
other officials designated by the local prequalification,
bids and awards committee.
(b) The chairman of the local technical committee shall
be designated by the local prequalification, bids and
awards committee and shall attend its meeting in
order to present the reports and recommendations of
the local technical committee.
28
0 Bernardino v. People of the Philippines, G.R. No. 170453, October 30, 2006.
+(,121/,1(
Citation:
Tue Apr 17 11:18:50 2018



Title II
ELECTIVE OFFICIALS
Chapter I
Qualifications and Election
SECTION 39. Qualifications. - (a) An elective local
official must be a citizen of the Philippines; a
registered voter in the barangay, municipality, city, or
province or, in the case of a member of the
sangguniang panlalawigan, sangguniang panlungsod,
or sangguniang bayan, the district where he intends to
be elected; a resident therein for at least one (1) year
immediately preceding the day of the election; and
able to read and write Filipino or any other local
language or dialect.
(b) Candidates for the position of governor, vice-
governor, or member of the sangguniang
panlalawigan, or mayor, vice-mayor or member of the
sangguniang panlungsod of highly urbanized cities
must be at least twenty-one (21) years of age on
election day.281
281Members of the sanggunian are elected in accordance with Republic Act No. 7166
(1991) as amended by Republic Act No. 7887 (1995) which provides that:
(a) For provinces with two (2) or more legislative districts, the
elective members of the Sangguniang Panlalawiganshall be elected
by legislative districts. For this purpose, the number of seats shall
be apportioned equitably: Provided, That, if equal division is not
possible, the remaining member or members shall be elected in the
district or districts with the greater number of population or, if
they be the same, with the greater number of voters: Provided
further, That, if a legislative district includes a city that does not
vote in the election of provincial officials, the Commission on
Elections, hereinafter referred to as the Commission, shall allocate
the number of seats among the districts in proportion to the
population of the constituencies voting for the Sangguniang
Panlalawigan.
(b) For provinces with only one (1) legislative district, the
Commission shall divide them into two (2) districts for purposes
of electing the members of the Sangguniang Panlalawigan,as nearly
as practicable according to the number of inhabitants, each district
comprising a compact, contiguous and adjacent territory, and the
(c) Candidates for the position of mayor or vice-mayor

of independent component cities, component cities, or
municipalities must be at least twenty-one (21) years
of age on election day.
(d) Candidates for the position of member of the
sangguniang panlungsod or sangguniang bayan must
be at least eighteen (18) years of age on election day.
(e) Candidates for the position of punong barangay or
member of the sangguniang barangay must be at least
eighteen (18) years of age on election day.
(f) Candidates for the sangguniang kabataan must be
at least fifteen (15) years of age but not more than
twenty-one (21) years of age on election day.
Section 428 was amended by Republic Act No. 9164 to read,

as follows:
number of seats of elective members of their respective sanggunian

shall be equitably apportioned between the districts in accordance
with the immediately preceding paragraph;
c) The number and election of elective members of the sangguniang
panlungsod and sangguniangbayan in the Metro Manila area, City of
Cebu, City of Davao and any other city with two (2) or more
legislative districts shall be elected by districts and in accordance
with the provisions of Sections 2 and 3 of Republic Act No. 6636:
Provided, That, all cities with one (1) legislative district and all
municipalities in the Metro Manila area shall have twelve (12)
councilors each: Provided, further, That, the Commission shall
divide all cities with one legislative district and each of the
municipalities in Metro Manila area into two (2) districts by
barangay for purposes of representation in the sangguniangbayan
as nearly as practicable according to the number of inhabitants,
each district comprising a compact, contiguous and adjacent
territory; and
(d) For purposes of the regular elections on May 11, 1992 and all
general elections thereafter, the regular elective members of the
sanggunian panlungsod and sangguniang bayan, shall be elected at
large in accordance with existing laws.
The Commission shall promulgate rules and regulations to
effectively implement the provisions of law which may hereafter
be enacted providing for the election of sectoral representatives.
SECTION 428. Qualifications. - An elective official of

the sangguniang kabataan must be a Filipino citizen, a
qualified voter of the katipunan ng kabataan, a
resident of the barangay for at least one (1) year
immediately prior to election, at least fifteen (15) years
but less than eighteen (18) years of age on the day of
the election, able to read and write Filipino, English,
or the local dialect, and must not have been convicted
of any crime involving moral turpitude.
Qualifications
Every person aspiring to hold any elective public office must
file a sworn certificate of candidacy. One of the things which should
be stated in the certificate is that the candidate is eligible for the office.
If there is a material misrepresentation in the certificate of candidacy,
the COMELEC is authorized to deny due course to or to cancel such
certificate upon the filing of a petition by any person pursuant to
Section 78 of the Omnibus Election Code:
'Sec.etiioitd? due-course or to cancet-a 'certificate

~ckfidia A yerified petition seeking t 'dey due!
.-
tcourse, or to cancel a certificate~ of candidacy, maiy be!

~filed by -ripe~n exclusively on the ground that any,
Tmaterial misrepresentation contalned therem "aa'
rfequired ic tionfr 74, hereof isfalse. Ths pition is
miay1e filed at any 'tim& not later than twrty-five'
4ays:f-koxn-the -time ,of the filing ofA te'crtificte -of.
icandidacy and shal be decided, after duenoic ad'
,ha ngno~g th'nfften dsbefoe the~etion.
The material misrepresentation contemplated by Section 78

refers to qualifications for elective office. This conclusion is
strengthened by the fact that the consequences imposed upon a
candidate guilty of having made a false representation in his
certificate of candidacy are grave - to prevent the candidate from
running or, if elected, from serving, or to prosecute him for violation

of the election laws. It could not have been the intention of the law to
deprive a person of such a basic and substantive political right to be
voted for a public office upon just any innocuous mistake.2 2
Aside from the requirement of materiality, a false
representation under Section 78 must consist of a "deliberate attempt
to mislead, misinform, or hide a fact which would otherwise render a
candidate ineligible." In other words, it must be made with an
intention to deceive the electorate as to one's qualifications for public
office.3
Profession or occupation is not a qualification for elective
office, and misrepresentation of such fact does not constitute a
material misrepresentation. If a candidate misrepresents his or her
profession or occupation in the certificate of candidacy, the candidate
may not be disqualified from running for office under Section 78 of
the Omnibus Election Code as his or her certificate of candidacy
cannot be denied due course or canceled on such ground.284 The use
of a nickname in the Certificate of Candidacy cannot be considered a
material fact which pertains to one's eligibility and qualification to
run for public office. 2s
A cancelled certificate of candidacy cannot give rise to a valid
candidacy. A person whose certificate of candidacy is cancelled or
denied due course is no candidate at all. The denial of due course to
or the cancellation of the Certificate of Candidacy under Section 78
involves a finding not only that a person lacks a qualification but also
that he made a material representation that is false. A petition for the
denial of due course to or cancellation of Certificate of Candidacy
that is short of the requirements will not be granted. m If a
2
2Salcedo I v. Commission on Elections, G.R. No. 135886, August 16,1999.
2
m Salcedo 1Iv. Commission on Elections, G.R. No. 135886, August 16,1999.
2
4Lluz v. Commission on Elections, G.R No. 172840, June 7,2007.
2
m Villafuerte v. Commission on Elections, G.R. No. 206698, February 25, 2014.
2
W Talaga v. Commission on Elections, G.R. No. 196804, October 9, 2012. The Court
explained that a Section 78 petition should not be confused with a Section 68
petition. The remedies under the two sections are different because they are based
on different grounds and have different results. A person who is disqualified under
Section 68 is prohibited to continue as a candidate, but a person whose Certificate of
Candidacy is cancelled or denied due course under Section 78 is not considered as a
substitution is not valid, then there would be only one qualified

candidate in the election. Being the only candidate, he should be
proclaimed as the winner.287
Whether a certificate of candidacy is cancelled before or after
the elections is immaterial, because the cancellation on such ground
means he was never a candidate from the very beginning, his
certificate of candidacy being void ab initio. Since the winning
mayoralty candidate's certificate of candidacy was void ab initio, he
was never a candidate at all and all his votes were considered stray
votes, and thus, proclaimed the second placer, the only qualified
candidate, who actually garnered the highest number of votes, for
the position of Mayor.2 8
However, the Commission on Election may not, by itself,
without the proper proceedings, deny due course to or cancel a
certificate of candidacy filed in due form. When a candidate fies his
certificate of candidacy, the Commission has a ministerial duty to
receive and acknowledge its receipt, as provided for in Section 76289
of the Omnibus Election Code. While the Commission may look into
patent defects in the certificates, it may not go into matters not
appearing on their face. The question of eligibility or ineligibility of a
candidate is thus beyond the usual and proper cognizance of said
body.%
This is to be distinguished from a situation where the
COMELEC is acting in its administrative capacity. Even without a
candidate at all because his status is that of a person who has not filed a Certificate
of Candidacy. A candidate who is disqualified under Section 68 can be validly
substituted pursuant to Section 77 because he remains a candidate until disqualified;
but a person whose Certificate of Candidacy has been denied due course or
cancelled under Section 78 cannot be substituted because he is not considered a
candidate.
287 Federico v. Commission on Elections, G.R. No. 199612, January 22,2013.
2
s Hayudini v. Commission on Elections, G.R. No. 207900, April 22,2014.
289 The Omnibus Election Code, in part, provides:
Section 76. Ministerialduty of receiving and acknowledging receipt. -
The Commission, provincial election supervisor, election registrar
or officer designated by the Commission or the board of election
inspectors under the succeeding section shall have the ministerial
duty to receive and acknowledge receipt of the certificate of
29
candidacy.
oCipriano v. Commission on Elections, G.R. No. 158830, August 10, 2004.
petition under either Section 12 or Section 78 of the Omnibus Election

Code, or under Section 40 of the Local Government Code, the
COMELEC is under a legal duty to cancel the certificate of candidacy
of anyone suffering from the accessory penalty of perpetual special
disqualification to run for public office by virtue of a final judgment
of conviction. The final judgment of conviction is notice to the
COMELEC of the disqualification of the convict from running for
public office. The law itself bars the convict from running for public
office, and the disqualification is part of the final judgment of
conviction. The final judgment of the court is addressed not only to
the Executive branch, but also to other government agencies tasked
to implement the final judgment under the law.291
Registered Voter
Under the Revised Administrative Code, one of the
qualifications of an elective municipal officer is that he must be a
"qualified voter" in his municipality. On the other hand, under
Republic Act No. 2370, otherwise known as the Barrio Charter, a
candidate for the barrio council must be a "qualified elector."2' 2 Thus,
in the 1958 case of Rocha v. Cordis,2 3 the Court held that a candidate
for an elective municipal office did not have to be a registered voter
in the municipality to qualify to run for an elective municipal office.
Under the Local Government Code, an elective local official,
including a Punong Barangay, must not only be a "qualified elector"
or a "qualified voter." He must also be a "registered voter." It is clear
that the law now requires a candidate for Punong Barangay to be a
registered voter of the barangay where he intends to run for office.294
29
Jalsojos v. Commission on Elections, G.R. No. 193237, October 9,2012.
292
Section 8 of the Barrio Charter Act provides:
Section 8. Qualificationsforelection to the barriocouncil. - Candidates
for election to the barrio council:
(a) Must be a qualified elector and must have been a resident of
the barrio for at least six months prior to the election; and
(b) Must not have been convicted of a crime involving moral
turpitude or of a crime which carries a penalty of at least one year
imprisonment
29 G.R. No. L-10783, April 16,1958.
294
Bautista v. Commission on Elections, G.R. Nos. 154796-97, October 23,2003.
In the case of Maruhom v. COMELEC, 295 Maruhom was

disqualified from being a mayoralty candidate for having been found
to have had two subsisting voter's registrations. Maruhom registered
as a voter in Marawi on July 26, 2003. Only three days thereafter,
Maruhom registered again as a voter in Marantao, without canceling
her Marawi registration. There being double registration, Maruhom's
subsequent registration in Marantao was null and void ab initio. Not
being a registered voter in Marantao, Maruhom was disqualified
from running for municipal mayor of said municipality.
Citizenship
The Local Government Code requires that an elective local
official be a citizen of the Philippines.
It will be noted that the law does not specify any particular
date or time when the candidate must possess citizenship, unlike that
for residence (which must consist of at least one year's residency
immediately preceding the day of election) and age (at least twenty-
three years of age on election day).296
The purpose of the citizenship qualification is none other than
to ensure that no alien, i.e., no person owing allegiance to another
nation, shall govern our people and our country or a unit of territory
thereof. An official begins to govern or to discharge his functions
only upon his proclamation and on the day the law mandates his
term of office to begin. It should be noted that Section 39 of the Local
Government Code speaks of "Qualifications" of "ELECTIVE
OFFICIALS," not of candidates. Literally, such qualifications -
unless otherwise expressly conditioned, as in the case of age and
residence - should thus be possessed when the "elective [or elected]
official" begins to govern, i.e., at the time he is proclaimed and at the
start of his term.m
The issue before the Court in the case of Matugas v.
COMELEC'-9 was whether the incumbent Governor of Surigao del
Norte is a citizen of the Philippines and, therefore, qualified to hold
M Maruhom v. Commission on Elections, G.R No. 179430, July 27,2009.

2%Frivaldo v. Commission on Elections, G.R. Nos. 120295 and 123755, June 28,1996.
w Frivaldo v. Commission on Elections, G.R. Nos. 120295 and 123755, June 28,1996.
m Matugas v. Commission on Elections, G.R. No. 151944, January 20, 2004.
such office. The Court held that the governor was qualified to hold
office, as there was insufficient evidence to prove that the governor
had renounced his Filipino citizenship upon becoming a naturalized
American citizen.
For a natural born Filipino who re-acquired or retained his
Philippine citizenship under Republic Act No. 9225 to run for public
office, he must (1) meet the qualifications for holding such public
office as required by the Constitution and existing laws; and (2) make
a personal and sworn renunciation of any and all foreign citizenships
before any public officer authorized to administer an oath.299 This
requirement can be found in Section 5 (2) of Republic Act No. 9225:
SEC. 5. Civil and Political Rights and Liabilities. - Those

who retain or re-acquire Philippine citizenship under'
,this Act shall enjoy full civil and political rights and bei
subject to all attendant liabilities and responsibilities!
:under existing laws of the Philippines and the
ifollown conditions:.
(2) Those seeking elective public office in the
iPhilippines shall meet the qualifications foi holding
,such public office as required by the Constitution and,
!existing laws and, at the time of the filing of the_
certificate of candidacy, make a personal and sworrt
:renunciation of any and all foreign citizenship before'
,any public officer authorized to administer an oath.-
Dual Citizenship
Dual citizenship is not a ground for disqualification from
running for any elective local position. 300
The use of foreign passport after renouncing one's foreign
citizenship is a positive and voluntary act of representation as to
one's nationality and citizenship; it does not divest Filipino
citizenship regained by repatriation but it recants the Oath of
2
" Japzon v. Commission on Elections, G.R. No. 180088, January 19,2009.
m Cordora v. Commission on Elections, G.R. No. 176947, February 19,2009.
Renunciation required to qualify one to run for an elective

position.3 01
The enactment of Republic Act No. 8171 in 1995 was meant to
address issues arising from the loss of Filipino citizenship by
marriage to aliens. That law provides as follows:
SECTION 1. Flipino women- who htve lost the

Plappie citizenship by marriage to aliens and
natural-born Filipinos who have lost their Philippine
citiz17e~lShip, including their minor children, on account.
o'Gf political or economic necessity, may re-acquirel
Philippine citizenship thirough repatriation in .the"
manner provided n Section 4 of Commonwealth Act
erovded That the applict is
(1) Persn pposed to organizd

gZovexmenit or~ affiliated wAIith anty,
?Asocation or group o persons who I
utphold end teach doctrines opposing,
oyganized government;'
()Person defending or teaching the'
necessity or propriety of violence,
personal assault, or association for thei
predominance of their ideas;
(3) Person 'convicted of crimes,
involving moral turpitude; or
~)Person. suffering from mnental'
alienation or incurable contagious,
direases.
SECTION 2. Repatriation shall be effected by taking:
the necessary oath of allegiance to the Republic of thae'
Philippines an4 registration in the proper civil registry'
and in the Blureau of' hxmmgration. The Bureau of',
Immigration shall thereupon cancel the pertinent alien
M lMaquiling v. Commission on Elections, G.R. No. 195649, April 16, 2003.

Republic Act No. 8171 has impliedly repealed Presidential

Decree No. 725 because they cover the same subject matter: the
repatriation of Filipino women who have lost their Philippine
citizenship by marriage to aliens and of natural-born Filipinos. 302
Republic Act No. 9225 was enacted to allow re-acquisition
and retention of Philippine citizenship for: (1) natural-born citizens
who have lost their Philippine citizenship by reason of their
naturalization as citizens of a foreign country; and (2) natural-born
citizens of the Philippines who, after the effectivity of the law,
become citizens of a foreign country. The law provides that they are
deemed to have re-acquired or retained their Philippine citizenship
upon taking the oath of allegiance.3 m
However, it must be emphasized that Republic Act No. 9225
imposes an additional requirement on those who wish to seek
elective public office, as follows:
302 Altareosv. Commission on Elections, G.R. No. 163256, November 10, 2004.
30
De Guzman v. Commission on Elections, G.R. No. 180048, June 19,2009.
The filing of a certificate of candidacy does not ipso facto

amount to a renunciation of foreign citizenship under Republic Act
No. 9225.3v4
Residency
Generally, in requiring candidates to have a minimum period
of residence in the area in which they seek to be elected, the
Constitution or the law intends to prevent the possibility of a
stranger or newcomer unacquainted with the conditions and needs
of a community and not identified with the latter from [seeking] an
elective office to serve that community. Such provision is aimed at
excluding outsiders from taking advantage of favorable
circumstances existing in that community for electoral gain.
Establishing residence in a community merely to meet an election
law requirement defeats the purpose of representation: to elect
through the assent of voters those most cognizant and sensitive to the
needs of the community. This purpose is best met by individuals
who have either had actual residence in the area for a given period or
who have been domiciled in the same area either by origin or by
choice.30
Section 39 of the Local Government Code requires a one-year
residency in the municipality where the candidate seeks office. The
term "residence" is to be understood not in its common acceptation
as referring to "dwelling" or "habitation," but rather to "domicile" or
legal residence, that is, "the place where a party actually or
constructively has his permanent home, where he, no matter where
he may be found at any given time, eventually intends to return and
remain (animusmanendi)." 30 6
Residency includes the twin elements of the fact of residing in
a fixed place and the intention to return there permanently, and is
not dependent upon citizenship. 307
3
4De Guzman v. Commission on Elections, G.R. No. 180048, June 19, 2009.
3
5Torayno v. Commission on Elections, G.RI No. 137329, August 9,2000.
3 6
o Japzon v. Commission on Elections, G.R. No. 180088, January 19,2009.
3 7
Cordora v. Commission on Elections, G.R. No. 176947, February 19,2009.
A domicile of origin is acquired by every person at birth. It is

usually the place where the child's parents reside and continues until
the same is abandoned by acquisition of new domicile (domicile of
choice).3
There is no hard and fast rule to determine a candidate's
compliance with residency requirement since the question of
residence is a question of intention. Still, jurisprudence has laid down
the following guidelines: (a) every person has a domicile or residence
somewhere; (b) where once established, that domicile remains until
he acquires a new one; and (c) a person can have but one domicile at
a time.3°9
There are three requisites for a person to acquire a new
domicile by choice. First, residence or bodily presence in the new
locality. Second, an intention to remain there. Third, an intention to
abandon the old domicile. These circumstances must be established
by clear and positive proof. Moreover, even if these requisites are
established by clear and positive proof, the date of acquisition of the
domicile of choice, or the critical date, must also be established to be
within at least one year prior to the elections using the same standard
of evidence. 31°
Domicile of origin is not easily lost. To successfully effect a
change of domicile, there must be concurrence of the following
requirements: (1) an actual removal or an actual change of domicile;
(2) a bona fide intention of abandoning the former place of residence
and establishing a new one; and (3) acts which correspond with the
purpose. Without clear and positive proof of the concurrence of these
three requirements, the domicile of origin continues. To effect
change, there must be animus manendi coupled with animus non
revertendi.The intent to remain in the new domicile of choice must be
for an indefinite period of time, the change of residence must be
voluntary, and the residence at the place chosen for the new domicile
must be actual.311
3 Coquilla v. Commission on Elections, G.R. No. 151914, July 31, 2002.

3 9
o Jalsojos v.'Commission on Elections, G.R. No. 191970, April 24,2012.
310 Jalosjos v. Commission on Elections, G.R No. 193314, February 26,2013.
311In the Matter of the Petition for Disqualification of Tess Dumpit-Michelena, G.R.
No. 163619-20, November 17,2005.
SECTION 40. Disqualifications. -The following

persons are disqualified from running for any elective
local position:
(a) Those sentenced by final judgment
for an offense involving moral
turpitude or for an offense punishable
by one (1) year or more of
imprisonment, within two (2) years
after serving sentence;
(b) Those removed from office as a
result of an administrative case;
(c) Those convicted by final judgment
for violating the oath of allegiance to
the Republic;
(d) Those with dual citizenship;
(e) Fugitives from justice in criminal or
non-political cases here or abroad;
(f) Permanent residents in a foreign
country or those who have acquired
the right to reside abroad and continue
to avail of the same right after the
effectivity of this Code;312 and
(g) The insane or feeble-minded.
Those Sentenced by Final Judgment for an Offense Involving Moral

Turpitude
The Supreme Court defines "moral turpitude" as "an act of
baseness, vileness, or depravity in the private duties which a man
owes his fellow men, or to society in general, contrary to the accepted
and customary rule of right and duty between man and woman or
312Section 68 of the Omnibus Election Code and Section 40 (f) of the Local
Government Code disqualify a permanent resident of, or an immigrant to, a foreign
country, unless said person waives his status. See Ugdoracion, Jr. v. Commission on
Elections, G.R. No. 179851, April 18,2008.
conduct contrary to justice, honesty, modesty, or good morals." Not

every criminal act involves moral turpitude. This question is resolved
by an analysis of the circumstances surrounding the violation of the
law. In the crime of direct bribery, moral turpitude is inferred from
the third element of the crime: a public officer accepts an offer or
promise or receives a gift or present "with a view to committing
some crime, or in consideration of the execution of an act which does
not constitute a crime but the act must be unjust, or to refrain from
doing something which it is his official duty to do."313
A person who has been convicted of an offense involving
moral turpitude is not perpetually disqualified to run for local office.
The candidate should show that two years have lapsed since the
service of sentence. Section 40 (a) clearly reduced the disqualification
period from five years (under Section 12 of the Omnibus Election
Code) to two years. 314
Section 40 (a) unequivocally disqualifies only those who have
been sentenced by final judgment for an offense punishable by
imprisonment of one year or more, within two years after serving
sentence. Those who have not served their sentence by reason of the
grant of probation (which should not be equated with service of
sentence) should not be disqualified from running for a local elective
office because the two-year period of ineligibility under Section 40 (a)
does not even begin to run.315
A false statement in a certificate of candidacy that a candidate
is eligible to run for public office is a false material representation
which is a ground for a petition under Section 78 of the Omnibus
Election Code. If a candidate is not actually eligible because he is
barred by final judgment in a criminal case from running for public
office then the candidate clearly makes a false material
representation that is a ground for a petition under Section 78. A
sentence of prisi6n mayor by final judgment is a ground for
disqualification under Section 40 of the Local Government Code and
under Section 12 of the Omnibus Election Code.316
313 Magno v. Commission on Elections, G.R. No. 147904, October 4,2002.

314 Magno v. Commission on Elections, G.R. No. 147904, October 4,2002.
315 Moreno v. Commission on Elections, G.R. No. 168550, August 10, 2006.
316 Jalosjos, Jr. v. Commission on Elections, G.R. No. 193237, October 9,2007.
Section 40 (a) should be considered as a law of general

application and must yield to the more definitive provisions of the
Revised Penal Code. In other words, where two statutes apply to a
particular case, the one specially designed therefor should prevail.
Section 40 (a) would not apply to cases wherein a penal provision -
such as Article 41 of the Revised Penal Code - directly and
specifically prohibits the convict from running for elective office.
Thus, the Supreme Court held that despite the lapse of two years
from petitioner's service of his commuted prison term, he remains
bound to suffer the accessory penalty of perpetual absolute
disqualification, which consequently, disqualifies him to run as
mayor.317
While possession of business and pecuniary interest in a
cockpit licensed by the local government unit is expressly prohibited
by the present Local Government Code "its illegality does not mean
that violation thereof necessarily involves moral turpitude or makes
such possession of interest inherently immoral." Thus, in one case,
the Supreme Court held that the crime committed by petitioner
(violation of Section 3 (h) of Republic Act No. 3019) did not involve
moral turpitude318
Effect of Probation
A person under probation is not disqualified from running
for office because the accessory penalty of suspension from public
office is put on hold for the duration of the probation.3 19 During this
period the person under probation does not serve the penalty
imposed upon him but is merely required to comply with all the
conditions prescribed in the probation order.3 20
The disqualification under Section 40 (a) of the Local
Government Code covers offenses punishable by one year or more of
imprisonment, a penalty which also covers probationable offenses. In
spite of this, the provision does not specifically disqualify
probationers from running for a local elective office. This omission is
3
1 JalosJos v. Commission on Elections, G.R. No. 205033, June 18,2013.
3
ls Teves v. Commission on Elections, G.R. No. 180363, April 28,2009.
319
Moreno v. Commission on Elections, G.R. No. 168550, August 10, 2006.
32
significant because it offers a glimpse into the legislative intent to

treat probationers as a distinct class of offenders not covered by the
disqualification.321
The Probation Law should be construed as an exception to the
Local Government Code. While the Local Government Code is a later
law which sets forth the qualifications and disqualifications of local
elective officials, the Probation Law is a special legislation which
applies only to probationers. 322
Removal as a Result of anAdministrative Case

In Aguinaldo v. Commission on Elections,3 3 it was held that a
public official could not be removed for misconduct committed
during a prior term and that his reelection operated as a condonation
of the officer's previous misconduct to the extent of cutting off the
right to remove him therefor. But that was because in that case,
before the petition questioning the validity of the administrative
decision removing petitioner could be decided, the term of office
during which the alleged misconduct was committed expired.
Removal cannot extend beyond the term during which the alleged
misconduct was committed. If a public official is not removed before
his term of office expires, he can no longer be removed if he is
thereafter reelected for another term. This is the rationale for the
ruling in the two Aguinaldo cases.
On the other hand, in the case of Reyes v. COMELEC,324 since
the decision in the administrative case came during the public
official's prior term, he is disqualified from running for reelection.
If the decision of the sangguniang panlalawigan finding the
public official guilty of administrative charges has not attained
finality (as when the public official files a motion for
reconsideration), the public official is not disqualified.3 25
321
Moreno v. Commission on Elections, G.R. No. 168550, August 10, 2006.
323 G.R. Nos. 105 128-30, May 14,1992.
324 Reyes v. Commission on Elections, G.R. Nos. 120905 and 120940, March 7,1996.
325 Ungating v. Commission on Elections, G.R. No. 153475, November 13,2002.
Section 40 (b) does not apply retroactively to those removed

from office before January 1, 1992, the date the Local Government
Code took effect. 326
Fugitivefrom Justice
The definition of "fugitive from justice" indicates that the
intent to evade is the compelling factor that animates one's flight
from a particular jurisdiction. There can only be intent to evade
prosecution or punishment when there is knowledge by the fleeing
subject of an already instituted indictment, or of a promulgated
judgment of conviction. Intent to evade on the part of a candidate
must be established by proof that there has already been a conviction
327
or at least, a charge has already been filed, at the time of flight.
Laws Providingfor Disqualification

Special laws provide other grounds for disqualification from
elective office. For example:
326
Grego v. Commission on Elections, G.R No. 125955, June 19,1997.
327 Rodriguez v. Commission on Elections, G.R. No. 120099, July 24,1996.
!a Any electve officia who has'

iesbied fr~om is office by accepting an
lapointive office or for whatever'!
iason which he peiouslyt occupied
'bt has caused to become~ vacant due to
;b), Any peson~ who, directly or

lniectly, coerces, bribes,, threatens,
!hrases, im~iates o actually causes,
inlcts or produces any violence,
m)ury punishment, tor~tur~e, damage,,
loss or diavantage toaypro o~r
ipersons asping to beoeacaddt
othat of the i~mediate mem~ber of his
iamily, his h~onor, or popet ta i
~at o elim~inate all otherptential
candidate.
In these cases, it does not appear that a conviction is
necessary, but only a showing that "the evidence of guilt is strong."
The second paragraph of Section 17 of the Comprehensive
Dangerous Drugs Act of 2002328 provides:
Ay eectfive loa rnainlofiilfun ohv

benfitedfrom the proceds of the trafficking of'
dangerous drugs as prescribed in~this Act, or havei
received~ any financial or material contributions or
donations from natural or juridical person~s foundl
guilty of trafficking dangerous drugs as prescribed n
this Act, shall be removed from office and perpetually!
disqualified from holding any elective or appointive!
ipositions in the government, its divisions,!
subdivisions, and intermediaries,
government-owned or -controlled corporations.including
W Republic Act No. 9165 (2002).

Section 28 of the same law provides:

,Sion & Criminal iabl ofGormn fficials a
lEmployees. - The maximum penalties of the unlaw
acts provided for in this Act shall be imposed, i
'addition to absolute perpetual disqualification fromi
any public office, if those found guilty of such
iunlawful acts are goyernzmeptofficials and eployees
Candidates for public office were previously required to

undergo mandatory drug testing as provided in Section 3 6 (g) of the
same law. This provision was nullified by the Supreme Court in the
case of Social Justice Society v. Dangerous Drugs Board (GR No. 157870,
November 3, 2008) because it imposes qualifications in addition to
what the Constitution prescribes. The Court held that:
Sec. 36 (g) of RA 9165, as sought to be implemented by
the assailed COMELEC resolution, effectively
enlarges the qualification requirements enumerated in
the Sec. 3, Art. VI of the Constitution. As couched,
said Sec. 36(g) unmistakably requires a candidate for
senator to be certified illegal-drug clean, obviously as
a pre-condition to the validity of a certificate of
candidacy for senator or, with like effect, a
condition sine qua non to be voted upon and, if proper,
be proclaimed as senator-elect. The COMELEC
resolution completes the chain with the proviso that
"[no person elected to any public office shall enter
upon the duties of his office until he has undergone
mandatory drug test." Viewed, therefore, in its
proper context, Sec. 36(g) of RA 9165 and the
implementing COMELEC Resolution add another
qualification layer to what the 1987 Constitution, at
the minimum, requires for membership in the Senate.
Whether or not the drug-free bar set up under the
challenged provision is to be hurdled before or after
election is really of no moment, as getting elected
would be of little value if one cannot assume office for
non-compliance with the drug-testing requirement.
The Citizenship Retention and Re-acquisition Act of 2003329

lists the civil and political rights of those who re-acquire Philippine
citizenship. The law also imposes conditions on the exercise of these
rights.
Section 5 of the law provides:
Isuoecrto an artenaant i LDiJInes ana responsivi

jiwder existing 'laws, ol the Philppines mi~d
F(I)hose tends ig to, exercise.,hir

igtof:sfia must Meet thel
rSection 1. Article VII
pUDIIc otticea si,

Constitution and;
at the time of the
cate of vanididacy~i,
tal and -sworn,'
y an l foregM
jshall subkdrbe. and swear to ani oath ofl

allegianCe to the Republic' of thea
PThopine and its duly constitutedl
authorities prior t.o their assumption of!
3
loffice: Provided, That they renounce'

their oath of allegiance to the countryl
where they took that oath,'
(4) Those intending to practice their
profession in' the Philippines shall
applywith the proper iy for
Acense or perm#,to engg it~suicl
pactice;and
FiiiThat i t to vote or be elected or
cz
eointed
h to any public office i thep
Philippines cannothbeexercised b, oar
hh extenred th ose who:
wahare candi ates for or
are' occupying any
public office. in th
country of -which theyA
are natuaized ciizns
1(b) -are in aictive service,

~as commrissioned or
nobn-comnuissioned
,ofces irv the arrnedl
!forcso they country1
Republic Act No. 9225 categorically requires natural-born

Filipinos who re-acquire their citizenship and seek elective office to
execute a personal and sworn renunciation of any and all foreign
citizenships before an authorized public officer prior to or
simultaneous to the filing of their certificates of candidacy to qualify
as candidates in Philippine elections. The rule applies to all those
who have re-acquired their Filipino citizenship without regard as to
whether they are still dual citizens or not. It is a pre-requisite
imposed for the exercise of the right to run for public office. 330
330
Sobiana-Condon v. Commidssion on Elections, G.R No. 198742, August 10, 2012.
Stated differently, it is an additional qualification for elective

office specific only to Filipino citizens who re-acquire their
citizenship under Section 3 of Republic Act No. 9225. It is the
operative act that restores their right to run for public office. The
Supreme Court has held that the petitioner's failure to comply
therewith in accordance with the exact tenor of the law rendered
ineffectual the Declaration of Renunciation of Australian Citizenship
she executed on September 18, 2006. As such, she has yet to regain
her political right to seek elective office. Unless she executes a sworn
renunciation of her Australian citizenship, she is ineligible to run for
and hold any elective office in the Philippines.331
OtherGroundsfor Disqualification
Other laws may provide grounds for the disqualification of
certain aspirants to local office. Republic Act No. 10121 or the
"Philippine Disaster Risk Reduction and Management Act of 2010,"
for example, attaches perpetual disqualification from public office for
those violating Section 19 of the Act if the offender is a public
officer.33 2
331 Sobejana-Condon v. Commission on Elections, G.R. No. 198742, August 10, 2012.
3m The prohibited acts are as follows:
Section 19. ProhibitedActs. - Any person, group or corporation who
commits any of the following prohibited acts shall be held liable
and be subjected to the penalties as prescribed in Section 20 of this
Act
(a) Dereliction of duties which leads to destruction, loss of lives,
critical damage of facilities and misuse of funds;
(b) Preventing the entry and distribution of relief goods in
disaster-stricken areas, including appropriate technology,
tools, equipment, accessories, disaster teams/experts;
(c) Buying, for consumption or resale, from disaster relief
agencies any relief goods, equipment or other and
commodities which are intended for distribution to disaster
affected communities;
(d) Buying, for consumption or resale, from the recipient disaster
affected persons any relief goods, equipment or other aid
commodities received by them,
(e) Selling of relief goods, equipment or other aid commodities
which are intended for distribution to disaster victims;
Section 40 of the Local Government Code was modified by

the Human Rights Victims and Recognition Act of 2013m which
provides the following.
!SEC 25. Penaltis;Apiciliy ofthie sd Penal Coe.

Any caimant who is found by the Board, after due
,earn& to have filed a fraudulent claim, shall be,
(f)Forcibly seizing relief goods, equipment or other aid

commodities intended for or consigned to a specific group of
victims or relief agency;
(g) Diverting or misdelivery of relief goods, equipment or other
aid commodities to persons other than the rightful recipient
or consignee;
(h) Accepting, possessing, using or disposing relief goods,
equipment or other aid commodities not intended for nor
consigned to him/her;
(i) Misrepresenting the source of relief goods, equipment or
other aid commodities by:
(1) Either covering, replacing or defacing the labels of
the containers to make it appear that the goods,
equipment or other aid commodities came from
another agency or persons;
(2) Repacking the goods, equipment or other aid
commodities into containers with different markings
to make it appear that the goods came from another
agency or persons or was released upon the instance
of a particular agency or persons;
(3) Making false verbal claim that the goods, equipment
or other and commodity m its untampered original
containers actually came from another agency or
persons or was released upon the instance of a
particular agency or persons;
(j) Substituting or replacing relief goods, equipment or other aid
commodities with the same items or inferior/cheaper quality;
(k) Illegal solicitations by persons or organizations representing
others as defined in the standards and guidelines set by the
NDRRMC;
(1) Deliberate use of false at inflated data in support of the
request for funding, relief goods, equipment or other aid
commodities for emergency assistance or livelihood projects;
and
(in) Tampering with or stealing hazard monitoring and disaster
preparedness equipment and paraphernalia.
3
w Republic Act No. 10368 (2013).
,rzeferred to, the, apropriate office -for'prosecution 1f

oc ded he shalltoffer the imprisonment of eight (8)1
l o ten (10) years, shall bedisqualified from pblici
A coe and e o r nnt ancshall be, deprived of th a
irihht o vi and be, voted fr in aynai onal or loca ing
f lection, even after theservice of sentence unless',
To drive the point home, the repealing cause of the law
sxectite orders,. les and repeations or rth

Sthereof inconsistent with any of the provisons of tbis,
Act, including Secton 63(b) of Repu*l ActNo 6657
aseiide& 6thanfisriknown as the Co p ensie
,gr anar Refcorx Law4 of: 1988, anid' Section 40(a) OP~
Repuibli Act No., 7160, otherwise kn~own as the tLocal
,Governme~nt Code,
prvie-sgollros: t of ao,-199V are I~eyrepealed,,
iyvc-ayr uiia
SECTION1. Maplnner of l4ecin -a)l-dsTheoenor,
A conviction for filing a fraudulent claim under the Human

Rights Victims and Recognition Act will disqualify one from running
for local office even after the service of sentence. Only an absolute
pardon can allow the person to run for office.
SECTION 41. Manner of Election. - (a) The governor,

vice-governor, city mayor, city vice-mayor, municipal
mayor, municipal vice-mayor, and punong barangay
shall be elected at large in their respective units by the
qualified voters therein. However, the sangguniang
kabataan chairman for each barangay shall be elected
by the registered voters of the katipunan ng kabataan,
as provided in this Code.
(b) The regular members of the sangguniang

panlalawigan, sangguniang panlungsod, and
sangguniang bayan shall be elected by district as
follows:
First and second-class provinces shall have ten (10)
regular members; third and fourth-class provinces,
eight (8); and fifth and sixth-class provinces, six (6):
Provided, That in provinces having more than five (5).
legislative districts, each district shall have two (2)
sangguniang panlalawigan members, without
prejudice to the provisions of Section 2 of Republic
Act No. 6637. Sangguniang barangay members shall
be elected at large. The presidents of the leagues of
sanggunian members of component cities and
municipalities shall serve as ex officio members of the
sangguniang panlalawigan concerned. The presidents
of the liga ng mga barangay and the pederasyon ng
mga sangguniang kabataan elected by their respective
chapters, as provided in this Code, shall serve as ex
officio members of the sangguniang panlalawigan,
sangguniang panlungsod, and sangguniang bayan.&4
(c) In addition thereto, there shall be one (1) sectoral
representative from the women, one (1) from the
workers, and one (1) from any of the following sectors:
the urban poor, indigenous cultural communities,
disabled persons, or any other sector as may be
determined by the sanggunian concerned within
ninety (90) days prior to the holding of the next local
elections as may be provided for by law. The
COMELEC shall promulgate the rules and regulations
to effectively provide for the election of such sectoral
representatives. 335
As amended by Republic Act No. 8553.

3M Republic Act No. 7887 amended paragraph (d) of Republic Act No. 7166 to read
"The Commission shall promulgate rules and regulations to effectively implement
the provisions of law which may hereafter be enacted providing for the election of
sectoral representatives." The phrase "may hereafter be enacted" suggests that
Congress intended to make the election of sectoral representatives contingent upon
the enactment of a separate law.
As provided in Section 3 (b)&% of Republic Act No. 7166, the

basis for the allocation of districts shall be the number of inhabitants
and not the number of registered voters.3 7
SECTION 42. Date of Election. - Unless otherwise

provided by law, the elections for local officials shall
be held every three (3) years on the second Monday of
May.
SECTION 43. Term of Office. - (a) The term of office of
all local elective officials elected after the effectivity of
this Code shall be three (3) years, starting from noon
of June 30, 1992 or such date as may be provided for
by law, except that of elective barangay officials:
Provided, That all local officials first elected during the
local elections immediately following the ratification
of the 1987 Constitution shall serve until noon of June
30,1992.
(b) No local elective official shall serve for more than
three (3) consecutive terms in the same position.
Voluntary renunciation of the office for any length of
time shall not be considered as an interruption in the
continuity of service for the full term for which the
elective official concerned was elected.
336 The pertinent provision reads:

Election of Members of the Sangguniang Panlalawigan, Sanggunian
Panlungsod and Sangguniang Bayan. - The elective members of the
Sangguniang Panlalawigan, Sangguniang Panlungsod and
Sangguniang Bayan shall be elected as follows:
(b) For provinces with only one (1) legislative district, the
Commission shall divide them into two (2) districts for purposes
of electing the members of the Sangguniang Panlalawigan, as
nearly as practicable according to the number of inhabitants, each
district comprising a compact, contiguous and adjacent territory,
and the number of seats of elective members of their respective
sanggunian shall be equitably apportioned between the districts in
accordance with the immediately preceding paragraph
33
7 Herrera v. Commission on Elections, G.R. No. 131499, November 17,1999.
Paragraph (c) of Section 43 of the Code as originally written

should be deemed superseded by Republic Act No. 9164 (2002).
Section 2 of that law provides:
1998)Tewm
set th -o The t of office of a
Ibarangay and sangguniang kabataan officials after thel
!effectivity of this Act shall be three (3) years.
hNo barangay elective official shall serve formo t an
three (3) consecutive terms in the same position:
Providedhowever, that the term of office shall be
l reckoned from the 1994 barangay elections. Voluntary
renunciatio ofh office for any length of timeshall not
l be considered asGoverruption in the contirmity ofb
service for thefull term for which the elective official
wselectd., 7
This law also repealed provisions of Republic Act No. 8524

(1998) which set the term of office of baangayofficials for five years.
In the case of Commission on Elections v. Cruz ma the Court upheld the
constitutionality of Section 2 of Republic Act. No. 9164. The Court
held that Congress had the discretion to determine both the length of
the term of office of barangay officials and their term limitation and
that these are political questions beyond the pale of judicial scrutiny.
By express provision of the Constitution, the term of office of
local officials is limited to three years.339 The exception pertains only
to barangay officials, whose terms of office will be determined by
law. Initially, the Local Government Code set the ternms of barangay
No. 186616, November 20,2009.

33 G.R.
339
CONsr., Art. X § 8 provides:
The term of office of elective local officials, except barangay
officials, which shall be determined by law, shall be three years
and no such official shall serve for more than three consecutive
terms. Voluntary renunciation of the office for any length of time
shall not be considered as an interruption in the continuity of his
service for the full term for which he was elected.
officials to three years as well.340 Congress lengthened their terms of

office to five years under Republic Act No. 8524 (1998) but reduced it
to three years under Republic Act No. 9164 (2002).
In David v. COMELEC, 341 the Supreme Court held that there is
nothing in the Constitution that prevented Congress from fixing any
term of office for barangay officials. Congress has plenary authority
under the Constitution to determine by legislation not only the
duration of the term of barangay officials, but also the application to
them of a consecutive term limit. Congress invariably exercised this
authority when it enacted no less than six barangay-related laws
since 1987.
Term limits are grafted to the Constitution to prevent the
establishment of political dynasties. The Constitutional Commission,
however, did not place an absolute three-term limit for officials
fearing that they would unduly limit the peoples' choices. 4 2 The
Court had held that a violation of the three-term limit rule is a
ground for cancellation of a certificate of candidacy under Section
78M of the Omnibus Election Code since the violation of the three-
term limit rule is an ineligibility affecting the qualification of a
candidate to elective office. 3 4
A Certificate of Candidacy filed by a local official for his
fourth consecutive term is invalid for containing the incurable defect
consisting in a false declaration of the candidate's eligibility to run.345
34o Republic Act No. 7160, § 43 (c) (2000).

341 G.R. Nos. 127116 and 128039, April 8,1997.
H See Bolja v. Commission on Elections, G. No. 133495, September 3,1998.
w Again the Omnibus Election code provides:
Sec. 78. Petition to deny due course to or cancel a certificate of
candidacy. - A verified petition seeking to deny due course or to
cancel a certificate of candidacy may be filed by the person
exclusively on the ground that any material representation
contained therein as required under Section 74 hereof is false. The
petition may be filed at any time not later than twenty-five days
from the time of the filing of the certificate of candidacy and shall
be decided, after due notice and hearing, not later than fifteen
days before the election.
3" Aratea v. Commission on Elections, G.R No. 195229, October 9,2012.
345
Talaga v. Commission on Elections, G.R. No. 196804, October 9,2012.
Under the decisions of the Supreme Court, two things must

be present before term limits may apply to local officials. The
Supreme Court enunciated this rule in the case of Borja v.
COMELEC.
The issue in that case was whether a vice-mayor who
succeeds to the office of mayor by operation of law and serves the
remainder of the term is considered to have served a term in that
office for the purpose of the three-term limit.
To resolve the issue, the Court examined the Records of the
Constitutional Commission and concluded that there were two ideas
that surfaced in this context: "[t]he first is the notion of service of
term, derived from the concern about the accumulation of power as a
result of a prolonged stay in office. The second is the idea of election,
derived from the concern that the right of the people to choose those
whom they wish to govern them be preserved."
In discussing term limits, the drafters of the Constitution
assumed that the officials concerned were serving by reason of
election. This is clear from the following exchange in the
Constitutional Commission concerning term limits, now embodied in
Article VI, §§ 4 and 7 of the Constitution, for members of Congress:
MR. GASCON.
I would like to ask a question with regard to the issue
after the second term. We will allow the Senator to
rest for a period of time before he can run again?
MR. DAVIDE.
That is correct.
MR. GASCON.
And the question that we left behind before - if the
Gentlemen will remember - was: How long will that
period of rest be? Will it be one election which is three
years or one term which is six years?
MR. DAVIDE.
W Borja v. Commission on Elections, G.R. No. 133495, September 3,1998.

If the Gentlemen will remember, Commissioner

Rodrigo expressed the view that during the election
following the expiration of the first 12 years, whether
such election will be on the third year or on the sixth
year thereafter, this particular member of the Senate
can run. So, it is not really a period of hibernation for
six years. That was the Committee's stand.
The Court explained that aside from the historical record of
the constitutional commission, the textual analysis of the law
supports the ruling of the COMELEC that Article X, §8 contemplates
service by local officials for three consecutive terms as a result of
election. The first sentence speaks of "the term of office of elective
local officials" and bars "such official[s]" from serving for more than
three consecutive terms. The second sentence, in explaining when an
elective local official may be deemed to have served his full term of
office, states that "voluntary renunciation of the office for any length
of time shall not be considered as an interruption in the continuity of
his service for the full term for which he was elected." The term
served must therefore be one "for which [the official concerned] was
elected." The purpose of this provision is to prevent a circumvention
of the limitation on the number of terms an elective local official may
serve. Conversely, if he is not serving a term for which he was
elected because he is simply continuing the service of the official he
succeeds, such official cannot be considered to have fully served the
term notwithstanding his voluntary renunciation of office prior to its
expiration.
Recall Elections
There are two Supreme Court decisions regarding recall
elections that have serious implications on the application of term
limits on local government officials. In Socrates V. COMELEC 4 7 the
Supreme Court held that term limits do not apply to a candidate
who, after serving three consecutive terms, runs in a recall election
seeking the recall of his successor.
W G.R. No. 154512, November 12,2002.

In that case, the Court was asked to decide whether Mark

David Hagedorn, who had been elected and who had served three
consecutive terms as mayor of Puerto Princesa City, was qualified to
run in a recall election which sought the removal of Victorino Dennis
M. Socrates who assumed office as Puerto Princesa's mayor on June
30, 2001. The majority of the Court ruled that Mr. Hagedorn was not
disqualified under the term limits of the Constitution and the Local
Government Code. There, the majority ruled that
These constitutional and statutory provisions have
two parts. The first part provides that an elective local
official cannot serve for more than three consecutive
terms. The clear intent is that only consecutive terms
count in determining the three-term limit rule. The
second part states that voluntary renunciation of office
for any length of time does not interrupt the
continuity of service. The clear intent is that
involuntary severance from office for any length of
time interrupts continuity of service and prevents the
service before and after the interruption from being
joined together to form a continuous service or
consecutive terms.
After three consecutive terms, an elective local official
cannot seek immediate reelection for a fourth term.
The prohibited election refers to the next regular
election for the same office following the end of the
third consecutive term. Any subsequent election, like
a recall election, is no longer covered by the
prohibition for two reasons. First, a subsequent
election like a recall election is no longer an immediate
reelection after three consecutive terms. Second, the
intervening period constitutes an involuntary
interruption in the continuity of service.
When the framers of the Constitution debated on the
term limit of elective local officials, the question asked
was whether there would be no further election after
three terms, or whether there would be "no immediate
reelection" after three terms...
246 Local Government Law and jurisprudence
In Hagedom's case, the nearly 15-month period he was out of

office, although short of a full term of three years, constituted an
interruption in the continuity of his service as mayor. The
Constitution does not require the interruption or hiatus to be a full
term of three years. The clear intent is that interruption "for any
length of time," as long as the cause is involuntary, is sufficient to
break an elective local official's continuity of service.
In Mendoza v. COMELEC, 34 a sharply divided Court held that
When a person is elected in a recall election, the unexpired portion of
the term of the official he replaced does not amount to a term.
Therefore, such a candidate is not barred from running for three
more elections thereafter.
Effect of Conversion of Municipality into City

Do term limits apply when a municipality is converted into a
city? This issue was first raised in Mariano v. Commission on
Elections349 where the charter of Makati City was challenged on the
ground that it violated the Constitution. The petitioners questioned
the constitutionality of Section 51, Article X of Republic Act No. 7854.
Section 51 states:
Sec. 51. Officials of the City of Makati. - The present

elective officials of the Municipality of Makati shall
continue as the officials of the City of Makati and shall
exercise their powers and functions until such time
that a new election is held and the duly elected
officials shall have already qualified and assume their
offices: Provided, The new city will acquire a new
corporate existence. The appointive officials and
employees of the City shall likewise continue,
exercising their functions and duties and they shall bel
automatically absorbed by the city government of thel
City ofMakati. j
3U G.R. No. 149736, December 17, 2002.

349 G.R. Nos. 118577 and 118627, March 7,1995.
The petitioners claimed that this section collides with Section

8, Article X and Article VI of the Constitution which provides:
Sec. 8. The term of office of elective local offic

except barangay officials, which shall be determined
by law, shall be three years and no such official shall
serve for more than three consecutie terms. Voluntary
renunciation of the office for any length of time shall
not be considered as an interruption in the continuity
of his service for the full term for which he was el.
Petitioners argued that by providing that the new city shall

acquire a new corporateexistence, Section 51 of Republic Act No. 7854
restarts the term of the present municipal elective officials of Makati
and disregards the terms previously served by them. They claimed
that Section 51 favors the incumbent Makati Mayor, Jejomar Binay,
who has already served for two consecutive terms. They further
argued that should Mayor Binay decide to run and eventually win as
city mayor in the coming elections, he can still run for the same
position in 1998 and seek another three-year consecutive term since
his previous three-year consecutive term as municipal mayor would
not be counted. Thus, petitioners concluded that said Section 51 has
been conveniently crafted to suit the political ambitions of
respondent Mayor Binay.
The Court, however, refused to entertain the challenge
because the petition was premised on the occurrence of many
contingencies: (a) that the Mayor will run again in the next elections;
(b) that he would be re-elected in said elections; and (c) that he
would seek re-election for the same position in the 1998 elections.
The Court said that considering that these contingencies may not
happen, the petitioners merely pose a hypothetical issue which has
yet to ripen to an actual case or controversy, and worse, they hoist
this futuristic issue in a petition for declaratory relief over which the
Court has no jurisdiction.
In Latasav. Commission on Elections,&%the Court was given the

opportunity to resolve the issue squarely. Latasa was elected mayor
of the Municipality of Digos, Davao del Sur. During his third term,
the Municipality of Digos was declared a component city to be
known as the City of Digos. This event marked the end of Latasa's
tenure as mayor of the municipality. However, under the Charter, he
was mandated to serve in a hold-over capacity as mayor of the new
city. After his term as the mayor of the city, he filed a certificate of
candidacy for city mayor for the 2001 elections. He likewise disclosed
that he had already served for three consecutive terms as mayor of
the Municipality of Digos and is now running for the first time for
the position of city mayor.
In this case, the Court upheld the validity of COMELEC's
cancellation of the Certificate of Candidacy of Latasa. The Court said
that:
This Court reiterates that the framers of the
Constitution specifically included an exception to the
people's freedom to choose those who will govern
them in order to avoid the evil of a single person
accumulating excessive power over a particular
territorial jurisdiction as a result of a prolonged stay in
the same office. To allow petitioner Latasa to vie for
the position of city mayor after having served for three
consecutive terms as a municipal mayor would
obviously defeat the very intent of the framers when
they wrote this exception. Should he be allowed
another three consecutive terms as mayor of the City
of Digos, petitioner would then be possibly holding
office as chief executive over the same territorial
jurisdiction and inhabitants for a total of eighteen
consecutive years. This is the very scenario sought to
be avoided by the Constitution, if not abhorred by it.
3w G.R. No. 154829, December 10, 2003.

Election Protest
In Abundo, Sr. v. COMELEC,35 1 the Supreme Court was faced
with the question of whether the service of a term less than the full
three years by an elected official, arising from his being declared as
the duly elected official upon an election protest, is considered as full
service of the term for purposes of the application of the three
consecutive term limit for elective local officials. In this case, the
Supreme Court held that:.
In the present case, the Court finds Abundo's case
meritorious and declares that the two-year period
during which his opponent, Torres, was serving as
mayor should be considered as an interruption, which
effectively removed Abundo's case from the ambit of
the three-term limit rule.
The Court distinguished the case of Abundo from the
precedents wherein it held that the election protest cannot be
considered as an interruption:
As a final note, We reiterate that Abundo's case differs
from other cases involving the effects of an election
protest because while Abundo was, in the final
reckoning, the winning candidate, he was the one
deprived of his right and opportunity to serve his
constituents. To a certain extent, Abundo was a victim
of an imperfect election system. While admittedly the
Court does not possess the mandate to remedy such
imperfections, the Constitution has clothed it with
enough authority to establish a fortress against the
injustices it may bring.
The Supreme Court has summarized its decisions on term
limits:
1. When a permanent vacancy occurs in an elective
position and the official merely assumed the
position pursuant to the rules on succession under
the Local Government Code, then his service for
the unexpired portion of the term of the replaced
3, G.R. No. 201716, January 8,2013.

official cannot be treated as one full term as

contemplated under the subject constitutional and
statutory provision that service cannot be counted
in the application of any term limit. If the official
runs again for the same position he held prior to
his assumption of the higher office, then his
succession to said position is by operation of law
and is considered an involuntary severance or
interruption.
2. An elective official who has served for three
consecutive terms and who did not seek the
elective position for what could be his fourth term
but later won in a recall election is deemed to have
had an interruption in the continuity of the service.
For he had become in the interim, i.e., from the
end of the 3rd term up to the recall election, a
private citizen.
3. The abolition of an elective local office due to the
conversion of a municipality to a city does not, by
itself, work to interrupt the incumbent official's
continuity of service.
4. Preventive suspension is not a term-interrupting
event as the elective officer's continued stay and
entitlement to the office remain unaffected during
the period of suspension, although he is barred
from exercising the functions of his office during
this period.
5. When a candidate is proclaimed as winner for an
elective position and assumes office, his term is
interrupted when he loses in an election protest
and is ousted from office, thus disenabling him
from serving what would otherwise be the
unexpired portion of his term of office had the
protest been dismissed. The break or interruption
need not be for a full term of three years or for the
major part of the 3-year term; an interruption for
any length of time, provided the cause is
involuntary, is sufficient to break the continuity of

service.
6. When an official is defeated in an election protest
and said decision becomes final after said official
had served the full term for said office, then his
loss in the election contest does not constitute an
interruption since he has managed to serve the
term from start to finish. His full service, despite
the defeat, should be counted in the application of
term limits because the nullification of his
proclamation came after the expiration of the
term. 352
Barangay Officials
The Constitution did not expressly prohibit Congress from
fixing any term of office for barangay officials. It left the
determination of such term to the lawmaking body, without any
specific limitation or prohibition, thereby leaving to the lawmakers'
full discretion to fix such term in accordance with the exigencies of
public service. It must be remembered that every law has in its favor
the presumption of constitutionality. 35 3
Republic Act No. 9164 provided for a three-year term for
barangay officials:
Sec. . bud ermsio of Eleo, -. Te 2 ,o iof a,l

barang.iy a.nd sangguiang kobatnad offiils t99
efctivity of ths Acthallib thr~ee (3) yers
No barangay elective official shall serve for morethn
three (3) consecutvetemsinth.smepo.ton
Providd however, That the termn 'of office shal1l be.
rekndfo the~ 1994barangyeltio Voluntary
trenunciation of office for any length of time shall no
be
cnsidred itr
_sa uptoninthe contnuiy o
2
35 Abundo v. Commi4ssion on Elections, G.R. No. 201716, January 8, 2013.
MDavid v. Comm-ission on Elections, G.R. No. 127116, April 8,1997.
sericeforthefull term for which the elective official

Iwas elected.
The Supreme Court explained in one case that Congress has

plenary authority under the Constitution to determine by legislation
not only the duration of the term of barangay officials, but also the
application to them of a consecutive term limit. 3 4 It added that
whatever Congress, in its wisdom, decides on these matters are
political questions beyond the pale of judicial scrutiny, subject only
to the certiorari jurisdiction of the courts provided under Section 1,
Article VIII of the Constitution and to the judicial authority to
invalidate any law contrary to the Constitution.&
In Commission on Elections v. Cruz, &%the Supreme Court
upheld the constitutionality of Section 2 of Republic Act No. 9164,
saying that it did not retroactively apply a three-term limit because
the limit had been there since the enactment of Republic Act No. 6679
in 1988. The term limit was continued under the Local Government
Code and can still be found in the current law.
In the same case, the Court also brushed aside an "equal
protection argument" saying that the law can treat barangayofficials
differently from other local elective officials because the Constitution
itself provides a significant distinction between these elective officials
with respect to length of term and term limitation. The distinction is
that while the Constitution provides for a three-year term and three-
term limit for local elective officials, it left the length of term and the
application of the three-term limit or any form of term limitation for
determination by Congress through legislation. The Court explained
354 Commission on Elections v. Cruz, G.R. No. 186616, November 20,2009.

3
Commission on Elections v. Cruz, G.R. No. 186616, November 20,2009.
3% Commission on Elections v. Cruz, G.R. No. 186616, November 20, 2009. It is a
settled doctrine that laws are presumptively constitutional until they are found
otherwise in an appropriate case. The challenge to the validity of Republic Act No.
9164 does not warrant the suspension of the said law. To suspend the
disqualification actions against petitioners, while the issue of unconstitutionality of
Section 2 of Republic Act No. 9164 was still pending, would be to contravene such
established doctrine. It would amount to a preliminary injunction against the
implementation of that provision of the law. See Monreal v. Commission on
Elections, G.R No. 184935, December 21,2009.
that this disparate treatment recognizes substantial distinctions and it

recognizes as well that the Constitution itself allows a non-uniform
treatment. No equal protection violation can exist under these
conditions.
Chapter I
Vacancies and Succession
SECTION 44. Permanent Vacancies in the Offices of the
Governor, Vice-Governor, Mayor, and Vice-Mayor. - If a
permanent vacancy occurs in the office of the
governor or mayor, the vice-governor or vice-mayor
concerned shall become the governor or mayor. If a
permanent vacancy occurs in the offices of the
governor, vice-governor, mayor, or vice-mayor, the
highest ranking sanggunian member or, in case of his
permanent inability, the second highest ranking
sanggunian member shall become the governor, vice-
governor, mayor or vice-mayor, as the case may be.
Subsequent vacancies in the said office shall be filled
automatically by the other sanggunian members
according to their ranking as defined herein.
(a) If a permanent vacancy occurs in
the office of the punong barangay, the
highest ranking sanggunian barangay
member or, in case of his permanent
inability, the second highest ranking
sanggunian member, shall become the
punong barangay.
(b) A tie between or among the highest
ranking sanggunian members shall be
resolved by the drawing of lots.
(c) The successors as defined herein
shall serve only the unexpired terms of
their predecessors.
For purposes of this Chapter, a permanent vacancy
arises when an elective local official fills a higher
vacant office, refuses to assume office, fails to qualify,

dies, is removed from office, voluntarily resigns, or is
otherwise permanently incapacitated to discharge the
functions of his office.
For purposes of succession as provided in the
Chapter, ranking in the sanggunian shall be
determined on the basis of the proportion of votes
obtained by each winning candidate to the total
number of registered voters in each district in the
immediately preceding local election.
There is a vacancy when there is no person lawfully

authorized to assume and exercise at present the duties of the
office.3 7 When an aspirant to the office of local chief executive is
disqualified, a permanent vacancy will be created for failure of the
elected mayor to qualify for the said office. In such eventuality,
under the dear language of Section 44, the duly elected vice-mayor
shall succeed.m
Thus, in Labo v. COMELEC,3 9 when the Supreme Court ruled
against the proclamation of Ramon Labo as mayor of Baguio City
because he was not a Filipino citizen, his disqualification does not
necessarily entitle the candidate with the next highest number of
votes to proclamation as the mayor of Baguio City.
The person who garners the second highest number of votes
for the office of city mayor was not the choice of the sovereign will.
Labo's disqualification does not make respondent Ortega the mayor-
elect. The rule is that "the ineligibility of a candidate receiving
majority votes does not entitle the eligible candidate receiving the
next highest number of votes to be declared elected. A minority or
defeated candidate cannot be deemed elected to the office." To argue
that since a candidate has been disqualified, the votes intended for
the disqualified candidate should, in effect, be considered null and
M7 Menzon v. Petilla, G.R. No. 90762, May 20,1991.

3 Sunga v. Commission on Elections, G.R. No. 125629, March 25,1998.
3 G.R. No. 105111, July 3,1992.
void would amount to disenfranchising the electorate in whom

sovereignty resides.
The rule would be different if the electorate, fully aware in
fact and in law of a candidate's disqualification so as to bring such
awareness within the realm of notoriety, would nonetheless cast their
votes in favor of the ineligible candidate. In such case, the electorate
may be said to have waived the validity and efficacy of their votes by
notoriously misapplying their franchise or throwing away their
votes, in which case, the eligible candidate obtaining the next higher
number of votes may be deemed elected. But it was not shown that
Labo was notoriously known as an ineligible candidate, much less
the electorate as having known of such fact.
Labo's ineligibility created a permanent vacancy in the office
of mayor, which should be filled by the vice-mayor, in accordance
with Section 44 of the Local Government Code.
A subsequent case suggests that the Supreme Court added a
second way by which the person who garnered the second highest
number of votes can be proclaimed as the winning candidate. In
Aratea v. Commission on Elections, the Court held that the alleged
"second placer" should be proclaimed Mayor because the winning
candidate's certificate of candidacy was void ab initio and was never
a candidate at all. The "second placer," who was the only qualified
candidate, actually garnered the highest number of votes for the
position of Mayor. 3w
One might argue, however, that Aratea has the effect of
erasing Labo from jurisprudence. According to Aratea, when an
aspirant to local office makes a misrepresentation in her certificate of
candidacy, the certificate is void. If one misrepresents her citizenship
in the certificate, the certificate is void and there will only be one
3w0Aratea v. Commission on Elections, G.R. No. 195229, October 9, 2012. If a

substitution of a candidate is not valid then the substitute is not a qualified
candidate and cannot be proclaimed as the elected mayor. In such a case, the
"second placer" is in effect the only candidate in the race, and will be regarded as the
person who received the highest number of votes. He should be proclaimed as the
duly elected mayor. Federico v. Commission on Elections, G.R. No. 199612, January
22, 2013. But see Talaga v. Commission on Elections, G.R. No. 196804, October 9,
2012 where a divided Court refused to allow the second placer to assume the
mayorship of Lucena City despite the absence of a valid certificate of candidacy from
the winning candidate.
candidate in the election. Labo would have been ineligible as a

candidate and the second placer in that case would have been
declared the winner.
In Maquiling v. Commission on Elections,361 the Supreme Court
refused to apply Labo:
There is no need to apply the rule cited in Labo v.

COMELEC that when the voters are well aware within
the realm of notoriety of a candidate's disqualification
and still cast their votes in favor said candidate, then
the eligible candidate obtaining the next higher
number of votes may be deemed elected. That rule is
also a mere obiter that further complicated the rules
affecting qualified candidates who placed second to
ineligible ones.
Thus, the second placer, Maquiling, was proclaimed by the

Supreme Court as the winner in the elections for Municipal Mayor of
Kauswagan, Lanao del Norte. According to the Court, when there
are participants who turn out to be ineligible, their victory is voided
and the laurel is awarded to the next in rank who does not possess
any of the disqualifications nor lacks any of the qualifications set in
the rules to be eligible as candidates.
The rule on succession in Section 44 cannot apply when a de
facto officer is ousted from office and the de jure officer takes over.
The ouster of a de facto officer cannot create a permanent vacancy.
There is no vacancy to speak of as the rightful winner in the election
has the legal right to assume office.362
SECTION 45. Permanent Vacancies in the Sanggunian. -

(a) Permanent vacancies in the sanggunian where
361G.R. No. 195649, April 16, 2013. The impact of the "notoriety of a candidate's
disqualification" was discussed in Ortega v. Commission on Elections and Labo,
G.R. No. 195649, July 3, 1992 (a companion case to Labo). The issue in that case was
whether the candidate receiving the next highest number of votes should be
declared Mayor of Baguio City. The effect of the "notoriety of a candidate's
disqualification" does not appear to be mere obiter.
3QJalosjos v. Commission on Elections, G.R. No. 193314, June 25, 2013.
automatic succession provided above do not apply

shall be filled by appointment in the following
manner:
(1) The President, through the
Executive Secretary, in the case of the
sangguniang panlalawigan and the
sangguniang panlungsod of highly
urbanized cities and independent
component cities;
(2) The governor, in the case of the
sangguniang panlungsod of
component cities and the sangguniang
bayan;
(3) The city or municipal mayor, in the
case of sangguniang barangay, upon
recommendation of the sangguniang
barangay concerned.
(b) E;,cept for the sangguniang barangay, only the

nominee of the political party under which the
sanggunian member concerned had been elected and
whose elevation to the position next higher in rank
created the last vacancy in the sanggunian shall be
appointed in the manner hereinabove provided. The
appointee shall come from the same political party as
that of the sanggunian member who caused the
vacancy and shall serve the unexpired term of the
vacant office. In the appointment herein mentioned, a
nomination and a certificate of membership of the
appointee from the highest official of the political
party concerned are conditions sine qua non, and any
appointment without such nomination and
certification shall be null and void ab initio and shall
be a ground for administrative action against the
official responsible therefore.
(c) In case or permanent vacancy is caused by a
sanggunian member who does not belong to any
political party, the local chief executive shall, upon
recommendation of the sanggunian concerned,

appoint a qualified person to fill the vacancy.
(d) In case of vacancy in the representation of the
youth and the barangay in the sanggunian, said
vacancy shall be filled automatically by the official
next in rank of the organization concerned.
As can be gleaned from the above provision, the law provides

for conditions for the rule of succession to apply: First, the appointee
shall come from the same political party as that of the sanggunian
member who caused the vacancy. Second, the appointee must have a
nomination and a Certificate of Membership from the highest official
of the political party concerned. W
The law is clear that the ranking in the sanggunian shall be
determined on the basis of the proportion of the votes obtained by
each winning candidate to the total number of registered voters of
each district. It does not mention anything about factoring the
number of voters who actually voted.364
In the case of Damasen v. Tumamao, 6 since the permanent
vacancy in the sanggunian occurred because of the elevation of LDP
member Alonzo to vice-mayor, it follows that the person to succeed
her should also belong to the LDP so as to preserve party
representation. The Court cannot countenance Damasen's insistence
in clinging to an appointment when he is in fact not a bona fide
member of the LDP. The very first requirement of Section 45 (b) is
that the appointee must come from the political party as that of the
Sanggunian member who caused the vacancy.
In Farifias v. Barba,366 the Court was faced with the question:
In case of a permanent vacancy in the sangguniang bayan caused by
the cessation from office of a member who does not belong to any
political party, who can appoint the replacement and in accordance
with what procedure? The Court answered:
3
Damsen v. Tumamao, G.R. No. 173165, February 17,2010.
364 Victoria v. Commission on Elections, G.R. No. 109005, January 10,1994.
WVictoria v. Commission on Elections, G.R. No. 109005, January 10,1994.
WG.R. No. 116763, April 19,1996.
Indeed there is no reason for supposing that those

who drafted §45 intended to make the manner of
filling vacancies in the Sanggunians, created by
members who do not belong to any political party,
different from the manner of filling such vacancies
when created by members who belong to political
party or parties. The provision for the first must
approximate the provision for the second situation.
Any difference in procedure must be limited to the
fact that in the case of vacancies caused by those who
have political affiliations there is a party which can
nominate a replacement while there is none in the case
of those who have no political affiliation. Accordingly,
where there is no political party to make a
nomination, the Sanggunian, where the vacancy
occurs, must be considered the appropriate authority
for making the recommendation, by analogy to
vacancies created in the Sangguniang Barangay whose
members are by law prohibited from having any party
affiliation.
Having determined that appointments in case of
vacancies caused by Sanggunian members who do not
belong to any political party must be n~ade in
accordance with the "recommendation" of the
Sanggunians concerned where the vacancies occur, the
next question is: Is the appointing authority limited to
the appointment of those "recommended" to him? We
think an affirmative answer must be given to the
question. The appointing authority is not bound to
appoint anyone recommended to him by the
Sanggunian concerned. The power of appointment is a
discretionary power. On the other hand, neither is the
appointing power vested with so large a discretion
that he can disregard the recommendation of the
Sanggunian concerned. Since the recommendation
takes the place of nomination by political party, the
recommendation must likewise be considered a
condition sine qua non for the validity of the
appointment, by analogy to the provision of §45(b).
The reason behind the right given to a political party to

nominate a replacement where a permanent vacancy occurs in the
sanggunian is to maintain the party representation as willed by the
people in the election.367
The "last vacancy" in the sanggunian refers to that created by

the elevation of the member formerly occupying the next higher in
rank which in turn also had become vacant by any of the causes
already enumerated. The term "last vacancy" is thus used in Section
45 (b) to differentiate it from the other vacancy previously created.w
Rules for Filling Vacancies in the Sanggunian
Recommending or Nominating
Local Appointing Power
Government Power No political With political
Unit
party party
Sangguniang President, Sanggunian Political party

panlalawigan through the where the of person
Executive vacancy causing the
Secretary occurred vacancy

panlungsod of through the where the of person
highly Executive vacancy causing the
urbanized cities Secretary occurred vacancy
36
7 Navarro v. Court of Appeals, G.R No. 141307, March 28, 2001.
30Navarro v. Court of Appeals, G.R No. 141307, March 28,2001.

panlungsod of through the where the of person
independent Executive vacancy causing the
component Secretary occurred vacancy
cities
Sangguniang Governor Sanggunian Political party

panlungsod of where the of person
component vacancy causing the
cities occurred vacancy
Sangguniang Governor Sanggunian Political party

bayan where the of person
vacancy causing the
occurred vacancy
Barangay City or Sanggunian

municipal where the
mayor vacancy
occurred
SECTION 46. Temporary Vacancy in the Office of the

Local ChiefExecutive. -
(a) When the governor, city or municipal mayor, or
punong barangay is temporarily incapacitated to
perform his duties for physical or legal reasons such
as, but not limited to, leave of absence, travel abroad,
and suspension from office, the vice-governor, city or
municipal vice-mayor, or the highest ranking
sangguniang barangay member shall automatically
exercise the powers and perform the duties and
functions of the local chief executive concerned, except
the power to appoint, suspend, or dismiss employees
which can only be exercised if the period of temporary
incapacity exceeds thirty (30) working days.
(b) Said temporary incapacity shall terminate upon

submission to the appropriate sanggunian of a written
declaration by the local chief executive concerned that
he has reported back to office. In cases where the
temporary incapacity is due to legal causes, the local
chief executive concerned shall also submit necessary
documents showing that said legal causes no longer
exist.
(c) When the incumbent local chief executive is
traveling within the country but outside his territorial
jurisdiction for a period not exceeding three (3)
consecutive days, he may designate in writing the
officer-in- charge of the said office. Such authorization
shall specify the powers and functions that the local
official concerned shall exercise in the absence of the
local chief executive except the power to appoint,
suspend, or dismiss employees.
(d) In the event, however, that the local chief executive
concerned fails or refuses to issue such authorization,
the vice-governor, the city or municipal vice-mayor, or
the highest ranking sangguniang barangay member,
as the case may be, shall have the right to assume the
powers, duties, and functions of the said office on the
fourth (4th) day of absence of the said local chief
executive, subject to the limitations provided in
subsection (c) hereof.
(e) Except as provided above, the local chief executive
shall in no case authorize any local official to assume
the powers, duties, and functions of the office, other
than the vice-governor, the city or municipal vice-
mayor, or the highest ranking sangguniang barangay
member, as the case may be.
Permanent vacancies occur when the elective local official fills

a higher vacant office, refuses to assume office, fails to qualify, dies,
is removed from office, voluntarily resigns, or is otherwise
permanently incapacitated to discharge the functions of his or her
office.36 9 Temporary vacancies may be caused by physical or legal

reasons such as leave of absence, travel abroad, and suspension from
office as provided for under Section 46 of the Code. The enumeration
therein, however, is not exclusive.
The m 9 de of succession in the case of temporary vacancies in
the office of the local chief executive is clear. The vice-governor, vice-
mayor, or the highest-ranking member of the sangguinang barangay
will assume the office. However, there is no express rule when it
comes to the temporary vacancy in the office of the vice-governor or
vice-mayor. A Vice-Governor who is concurrently an Acting
Governor is actually a quasi-Governor. For purposes of exercising his
legislative prerogatives and powers, he is not a member of the
sanggunian for the time being. The offices of the provincial Governor
and Vice-Governor are essentially executive in nature, whereas other
members of the provincial board perform functions partaking of a
legislative character. This is unlike the old Code, where the Governor
is not only the provincial Chief Executive, but also the presiding
officer of the local legislative body. Republic Act No. 7160 delineated
the union of the executive-legislative powers in the provincial, city
and municipal levels except in the Barangay. Under Republic Act No.
7160, the Governor was deprived of the power to preside over the
sanggunian and is no longer considered a member thereof.370
In Menzon v. Petilla,371 the Supreme Court ruled that in case of
a temporary vacancy in the office of the vice-governor, the Secretary
of Local Governments had the power to appoint a vice-governor. In
that case, the Secretary appointed Vice-Governor Petilla as acting
governor because of the fact that no governor had been proclaimed
in the province of Leyte. The Secretary also designated petitioner
Aurelio D. Menzon, a senior member of the sangguniang
panlalawigan, as the Vice-Governor for the province of Leyte. The
Court held that the Secretary of Local Government had the authority
to designate the petitioner as acting vice-governor.
The Local Government Code is silent on the mode of
succession in the event of a temporary vacancy in the Office of the
Vice-Governor. However, the Court noted that there was a need for
the appointment of an acting Vice-Governor since for about two
369 RepublicAct No. 7160 (1991), § 44, last paragraph.

370
Gamboa v. Aguirre, G.R. No. 134213, July 20,1999.
371
Menzon v. Petilla, G.R. No. 90762, May 20,1991.
years after the gubernatorial elections, there had been no de jure

permanent Governor for the province of Leyte due to a pending
election case before the Commission on Elections. The two-year
interregnum would cause disruptions and delays in the delivery of
basic services to the people and in the proper management of the
affairs of the local government of Leyte. The Court held that it is
incomprehensible that to leave the situation without affording any
remedy was ever intended by the Local Government Code. Thus, the
Court ruled that in order to avoid the dilemma resulting from an
interregnum created by the vacancy, the President, acting through
the Secretary of Local Government, may remedy the situation and
declared the temporary appointment of the petitioner to act as the
Vice-Governor as valid.
This case, however, does not clarify who may be appointed as
acting vice-governor. Under the facts of the case, Menzon was a
"senior member" of the sangguniang panlalawigan, but it was not
clear whether he was the highest ranking member thereof.
While it is true that the Code is silent on the mode of
succession in the event of a temporary vacancy in the Office of the
Vice-Governor, it may be argued that in such an event, the highest
ranking member of the sanggunian should assume the position.
May an incumbent Vice-Governor, while concurrently the
Acting Governor, continue to preside over the sessions of the
sangguniang panlalawigan? The Supreme Court, in the case of
Gamboa v. Aguirre, 72 ruled that he may not. In that case, sometime in
August of 1995, the governor designated the Vice-Governor as
Acting Governor for the duration of the former's official trip abroad
until his return. The Court in this case held:
Being the Acting Governor, the Vice-Governor cannot
continue to simultaneously exercise the duties of the
latter office, since the nature of the duties of the
provincial Governor call for a full-time occupant to
discharge them. Such is not only consistent with but
also appears to be the clear rationale of the new Code
wherein the policy of performing dual functions in
both offices has already been abandoned. To repeat,
the creation of a temporary vacancy in the office of the
372 G.R. No. 134213, July 20,1999.

Governor creates a corresponding temporary vacancy

in the office of the Vice-Governor whenever the latter
acts as Governor by virtue of such temporary vacancy.
This event constitutes an "inability" on the part of the
regular presiding officer (Vice Governor) to preside
during the SP sessions, which thus calls for the
operation of the remedy set in Article 49 (b) of the
Local Government Code - concerning the election of a
temporary presiding officer. The continuity of the
Acting Governor's (Vice-Governor) powers as
presiding officer of the SP is suspended so long as he
is in such capacity. Under Section 49 (b), "(i)n the
event of the inability of the regular presiding officer to
preside at the sanggunian session, the members
present and constituting a quorum shall elect from
among themselves a temporary presiding officer."
The case of Miranda v. Carreon373 illustrates the extent of the

powers of the acting mayor insofar as appointments are concerned.
In that case, Vice-Mayor Amelita Navarro was serving as Acting
Mayor of the City of Santiago because of the suspension of Mayor
Jose Miranda. She appointed certain people to various positions in
the city government. Three months after Mayor Miranda reassumed
his post, he issued an order terminating respondents' services
effective because they "performed poorly" during the probationary
period.
The Court in this case upheld the appointments made by the
Acting Mayor:
The 1987 Constitution provides that "no officer or
employee of the civil service shall be removed or
suspended except for cause provided by law." Under
the Revised Administrative Code of 1987, a
government officer or employee may be removed
from the service on two (2) grounds: (1) unsatisfactory
conduct and (2) want of capacity. While the Code does
not define and delineate the concepts of these two
grounds, however, the Civil Service Law (Presidential
3 G.R. No. 143540, April 11, 2003.

Decree No. 807, as amended) provides specific

grounds for dismissing a government officer or
employee from the service. Among these grounds are
inefficiency and incompetence in the performance of
official duties. In the case at bar, respondents were
dismissed on the ground of poor performance. Poor
performance falls within the concept of inefficiency
and incompetence in the performance of official duties
which, as earlier mentioned are grounds for
dismissing a government official or employee from
the service.
But inefficiency or incompetence can only be
determined after the passage of sufficient time, hence,
the probationary period of six (6) months for the
respondents. Indeed, to be able to gauge whether a
subordinate is inefficient or incompetent requires
enough time on the part of his immediate superior
within which to observe his performance. This
condition, however, was not observed in this case. As
aptly stated by the CSC, it is quite improbable that
Mayor Jose Miranda could finally determine the
performance of respondents for only the first three
months of the probationary period.
SECTION 47. Approval of Leaves of Absence. - (a) Leaves

of absence of local elective officials shall be approved
as follows:
(1) Leaves of absence of the governor
and the mayor of a highly urbanized
city or an independent component city
shall be approved by the President or
his duly authorized representative;
(2) Leaves of absence of vice-governor
or a city or municipal vice-mayor shall
be approved by the local chief
executive concerned: Provided, That
the leaves of absence of the members of
the sanggunian and its employees shall

be approved by the vice-governor or
city or municipal vice-mayor
concerned;
(3) Leaves of absence of the component
city or municipal mayor shall be
approved by the governor; and
(4) Leaves of absence of a punong
barangay shall be approved by the city
or municipal mayor: Provided, That
leaves of absence of sangguniang
barangay members shall be approved
by the punong barangay.
(b) Whenever the application for leave of absence
hereinabove specified is not acted upon within five (5)
working days after receipt thereof, the application for
leave of absence shall be deemed approved.
Chapter III
Local Legislation
SECTION 48. Local Legislative Power. - Local
legislative power shall be exercised by the
sangguniang panlalawigan for the province; the
sangguniang panlungsod for the city; the sangguniang
bayan for the municipality; and the sangguniang
barangay for the barangay.
Validity of an Ordinance
For an ordinance to be valid, it must be
1. within the corporate powers of the municipality to enact
2. passed according to the procedure prescribed by law, and
3. in consonance with certain well-established and basic
principles of substantive nature.374
37 4
Tatel v. Municipality of Virac, G.R. No. 40243, March 11, 1992.
The Supreme Court explained that these tests are divided into
the formal (whether the ordinance was enacted within the corporate
powers of the local government, and whether it was passed in
accordance with the procedure prescribed by law), and the
substantive (involving inherent merit, like the conformity of the
ordinance with the limitations under the Constitution and the
statutes, as well as with the requirements of fairness and reason, and
its consistency with public policy).375
Enacted within the CorporatePowers of the Local Government

When the validity of an ordinance is raised, Courts examine
the Local Government Code and other statutes to determine whether
the local government is expressly empowered to enact the challenged
ordinance. The Supreme Court, for example, upheld an ordinance
granting allowances and other benefits to judges stationed in its
territory because it is sanctioned by Section 447 (a) (1) (xi) of the
376
Code.
Local governments can also invoke its police power as a basis

for enacting ordinances. 377 The exercise of police power by the local
government is valid unless it contravenes the fundamental law of the
land, or an act of the legislature, or unless it is against public policy,
or is unreasonable, oppressive, partial, discriminating, or in
derogation of a common right.378 An Ordinance that authorizes the
establishment of not more than three cockpits contravenes
Presidential Decree No. 449, otherwise known as the Cockfighting
Law of 1974.379
The Supreme Court also invalidated Ordinances that
prohibited the operation of all bus and jeepney terminals within
Lucena City, including those already existing, and allowed the
operation of only one common terminal located outside the city. The
common carriers plying routes to and from Lucena City were
375
Legaspi v. City of Cebu, G.R. No. 159110, December 10. 2013.
376 Leynes v. Commission on Audit, G.R. No. 143596, December 11, 2003.
377 See discussion under Section 16.
37
8Tayaban v. People of the Philippines, G.R. No. 150194, March 6,2007.
379 Tan v. Perefla, G.R. No. 149743, February 18,2005.
compelled to close down their existing terminals and use the facilities
of petitioner. 380 In that case the Court explained that the local
government may be considered as having properly exercised its
police power only if (1) the interests of the public generally, and not
those of a particular class, require the interference of the State, and
(2) the means employed are reasonably necessary for the attainment
of the object sought to be accomplished and not unduly oppressive
upon individuals. Otherwise stated, there must be a concurrence of a
lawful subject and lawful method.38 1
ProceduralRequirements
The constitutionality or legality of an ordinance should be
upheld in the absence of any controverting evidence that the
procedure prescribed by law was not observed in its enactment.382
The implementing rules of the Local Government Code
provide that an ordinance or resolution passed by the sanggunian
shall be valid if approved by a majority of the members present,
there being a quorum. An ordinance or resolution authorizing or
directing the payment of money or creating liability shall require the
affirmative vote of a majority of all the sanggunian members for its
passage. A majority of all the elective and appointive members of
the sanggunian shall constitute a quorum to transact official
business. 4
i. Public Hearings
Public hearings are conducted by legislative bodies to allow
interested parties to ventilate their views on a proposed law or
ordinance. In one case, the Court explained that these views are not
binding on the legislative body and it is not compelled by law to
3N Lucena Grand Central Terminal, Inc. v. JAC Liner, Inc., G.R. No. 148339, February
23,2005.
3
N Lucena Grand Central Terminal, Inc. v. JAC Liner, Inc., G.R. No. 148339, February
23,2005.
MAcaac v. Azcuna, Jr. v. G.R. No. 187378, September 30,2013.
MRule VII, Sec. 14 (g).
m4 Rule VII, Sec. 13 (a).
adopt them. Sanggunian members are elected by the people to make

laws that will promote the general interest of their constituents. They
are mandated to use their discretion and best judgment in serving the
people. Parties who participate in public hearings to give their
opinions on a proposed ordinance should not expect that their views
would be patronized by their lawmakers. 5
The Local Government Code mandates public hearings for
the enactment of certain ordinances:
SECTION 186. P er-t Levy Other -Taxes, Fees or

Charges. - Local government units may exercise the
power to levy taxes, fees or charges on any base or
subject not otherwise specifically enumerated herein
or taxed under the provisions of the National Internal
Revenue Code, as amended, or other applicable laws:
ProvidedThat the taxes, fees, or charges shall not be
unjust, excessive, oppressive, confiscatory or contrary
to declared national policy: Provided,fuerther, That the
ordinance levying such taxes, fees or charges shall not
be enacted without any prior public hearing
conducted for the purpose.
SECTION 187. Pro-cedurefor Approval and Effectivityo
Tax Ordinances and Revenue Measures; Mandatory Public
Hearings. - The procedure for approval of local tax
ordinances and revenue measures shall be in
accordance with the provisions of this Code: ,Prvided,
That public hearings shall be conducted for the
purpose prior to the enactment thereof Provided,
frther, That any question on the constitutionality or
legality of tax ordinances or revenue measures may be
raised on appeal within thirty (30) days from the
effectivity thereof to the Secretary of Justice who shall
render a decision within sixty (60) days from the date
of receipt of the appeal- Provided, however, Thatsuch
3 5
Hagonoy Market Vendor Association v. Municipality of Hagonoy, Bulacan, G.R.
No. 137621, February 6, 2002.
A public hearing should be held prior to the enactment of an

ordinance levying taxes, fees, or charges; and that such public
hearing be conducted as provided under Section 277 of the
Implementing Rules and Regulations of the Local Government
Code.%6
ii. Publication
Section 188 of the Local Government Code provides a
publication requirement in local newspapers for all provincial, city,
and municipal tax ordinances or revenue measures. It provides:
The Code requires posting and publication of ordinances with

penal sanctions under Section 511:
3
%Ongsuco v. Malones, G.R. No. 182065, October 27,2009.
with Penal Sanctions. ~- (a) Ordinances with penal'

sanctions shall be posted at prominent places i the
provincial capitol, city, municipal or bandngay hall, as
,the case may be, for a mnimum period of three (3)i
consecutive weeks. Such ordinances shall also be
published in a newspaper of general' circulation,!
where available, within the territorial jrasdictiont
o
fthe local governmernt unit concerned,~ except in the
Icase of bngaiy ordinances. Unless otherwise
[rvidgd therein, said ordinances shall take tfect on
[the day following its publication, or at the end of the
peIod of osting whichevet occurs later.
'(b Any public officer or employee who violatesan'
,ordinancm ay.
be mned adnistratit discplinay
action, withiout~ prejudice ito the filing ofthe,
~appropiatecvilor crimiunalation.4
(rc) The secretaryr to the sangguian~ concrndshall
trInmit offcal copies of such ordinaneces tothe c
executive officer of the 2fic Gzette withn svyen (7)
foloing the appova o the said ordinancetfor
Substantive Requirements
The Supreme Court held that to be valid, an ordinance must
conform to the following substantive requirements:
1. It must not contravene the constitution or any statute.
2. It must not be unfair or oppressive.
3. It must not be partial or discriminatory.
4. It must not prohibit but may regulate trade.
5. It must be general and consistent with public policy.
6. It must not be unreasonable. 387
38 Magtajas v. Pryce Properties Corporation, hic., G.R. No. 111097, July 20,1994.
The rationale for the first requirement is obvious. The

Supreme Court has explained that municipal governments are only
agents of the national government. Local councils exercise delegated
legislative powers conferred on them by Congress as the national
lawmaking body. The delegate cannot be superior to the principal
nor can it exercise powers higher than those of the latter. It is a
heresy to suggest that the local government units can undo the acts
of Congress, from which they have derived their power in the first
place, and negate by mere ordinance the mandate of the statute.m
The Court went on to explain that municipal corporations
owe their origin to and derive their powers and rights wholly from
the legislature. Because Congress creates local governments, it may
destroy, abridge, and control them. According to the Court, "unless
there is some constitutional limitation on the right, the legislature
might, by a single act, and if we can suppose it capable of so great a
folly and so great a wrong, sweep from existence all of the municipal
corporations in the State, the corporation could not prevent it. They
are, so to phrase it, the mere tenants at will of the legislature."
How then do we interpret the invigorated provisions of the
Constitution on local autonomy? The Court held that:
This basic relationship between the national
legislature and the local government units has not
been enfeebled by the new provisions in the
Constitution strengthening the policy of local
autonomy. Without meaning to detract from that
policy, we here confirm that Congress retains control
of the local government units although in significantly
reduced degree now than under our previous
Constitutions. The power to create still includes the
power to destroy. The power to grant still includes the
power to withhold or recall. True, there are certain
notable innovations in the Constitution, like the direct
conferment on the local government units of the
power to tax, which cannot now be withdrawn by
mere statute. By and large, however, the national
legislature is still the principal of the local government
3N Magtajas v. Pryce Properties Corporation, Inc., G.R. No. 111097, July 20,1994.
units, which cannot defy its will or modify or violate

it.389
Although an ordinance may not contravene the Constitution

or a statute and may be within the scope of charter powers, if they
seem to the Court oppressive, unfair, partial, or discriminating, they
are declared unreasonable and void, whether this appear from their
face or from proof aliunde.390
Aside from procedural defects, ordinances may also be void
because they are unconstitutional. In City of Manila v. Laguio,391 the
Supreme Court upheld the Manila City Regional Trial Court decision
which declared City Ordinance No. 7783 void. The ordinance gave
owners and operators of prohibited establishments three months
from its approval to wind up business operations, to transfer to any
place outside the Ermita-Malate area, or to convert to other kinds of
allowable business.
The Court said that the ordinance is so replete with
constitutional infirmities that almost every sentence thereof violates a
constitutional provision. The prohibitions and sanctions therein
transgress the cardinal rights of persons enshrined by the
Constitution. The ordinance, it said, invaded fundamental personal
and property rights and impaired personal privileges, and was
discriminatory and unreasonable in its operation.
The Court said that the City Council had no power to enact
the ordinance, which was, therefore, void. The Court said that local
legislative bodies cannot prohibit the operation of the enumerated
establishments under Section 1 of the ordinance or order their
transfer or conversion without infringing the constitutional
guarantees of due process and equal protection of laws - not even
under the guise of police power.
The Court held that for an ordinance to valid it must not
contravene the Constitution or any statute, must not be unfair or
oppressive, and must not be partial or discriminatory.
3 9
8 Magtajas v. Pryce Properties Corporation, Inc., G.R. No. 111097, July 20,1994.
3
%oUnited States v. Abendan, G.R. No. L-7830, January 24,1913.
3
% City of Manila v. Laguio, Jr., GR No. 118127, April 12,2005.
The ordinance in this case violated the equal protection clause

which "requires that all persons or things similarly situated should
be treated alike, both as to rights conferred and responsibilities
imposed" and contradicted the provisions of Presidential Decree No.
499 (Declaring Portions of the Ermita-Malate Area as Commercial
Zones with Certain Restrictions). That Presidential Decree converted
the residential Ermita-Malate area into a commercial area and
allowed the establishment and operation of all kinds of commercial
establishments except warehouses or open storage depots, and
dumps or yards, among others.
While Manila is duty-bound to make all reasonable
regulations to promote community's moral and social values, the
Court said that the eradication of the community's social ins can be
achieved through reasonable restrictions rather than by an absolute
prohibition. The Court said that the ordinance sought to legislate
morality but should instead regulate human conduct occurring
inside the establishments.
In the subsequent case of White Light Corporation v. City of
Manila,392 the Court dealt with a similarly motivated city ordinance
that prohibits the same establishments from offering short-time
admission, as well as pro-rated or "wash up" rates for such
abbreviated stays. The Court in this case declared the ordinance as
unconstitutional. According to the Court, the right at stake in the case
falls within the same fundamental rights to liberty which it upheld in
the precedent case of City ofManila v. Laguio.
The Role of the Solicitor General

The participation of the Solicitor General in cases involving
the validity or constitutionality of an ordinance is not mandatory.
According to Rule 3 of the Rules of Court:
SEC ? oiet heSlctrGnra.-I n cion,

~involving the vralidity of any~ treaty, law, ordixiance,I,
~executive order, presidential decree, rules or~
rtegulations, the court in its discretion, may require the
392 G.R. No. 122846, January 20,2009.

[appearaneof the Solicitor General who may be heard",

in person or through representative duly designatedi
Furthermore, Sections 3 and 4 of Rule 63 respectively provide:
~SEC. 3.Ntc nSolicitor Geerl In any actlon]

Wh involves the validity of a statute, executive'
order or regulation, or any other governmental
regulation, the Solicitor General shall be notified by
.the party assailing the same and shall be entitled to be
heard upon such question.
SEC. 4. Local government ordinances. - In any action
involving the validity of a local government
ordinance, the corresponding prosecutor or attorney
,of the local government unit involved shall be
similarly notified and entitled to be heard. If such
ordinance is alleged to be unconstitutional, the
Solicitor General shall also be notified and entitled to
be heard-.-
These rules do not state that failure to notify the Solicitor

General about the action is a jurisdictional defect. Rule 3, Section 22
gives the courts in any action involving the "validity" of any
ordinance, inter alia, "discretion" to notify the Solicitor General.
Section 4 of Rule 63, which more specifically deals with cases
assailing the constitutionality, not just the validity, of a local
government ordinance, directs that the Solicitor General "shall also
be notified and entitled to be heard." Section 3 of the same rule
provides that it is the party assailing the local government ordinance
who will notify the Solicitor General. 393
393
Lucena Grand Central Terminal, Inc. v. JAC Liner, Inc., G.R. No. 148339, February
23, 2005. This is in contrast with the Court's earlier decision in Spouses Mirasol v.
Court of Appeals (G.R. No. 128448, February 1, 2001) where it held that
SECTION 49. Presiding Officer. - (a) The vice-

governor shall be the presiding officer of the
sangguniang panlalawigan; the city vice-mayor, of the
sangguniang panlungsod; the municipal vice-mayor,
of the sangguniang bayan; and the punong barangay,
of the sangguniang barangay. The presiding officer
shall vote only to break a tie.
(b) In the event of the inability of the regular presiding
officer to preside at a sanggunian session, the
members present and constituting a quorum shall
elect from among themselves a temporary presiding
officer. He shall certify within ten (10) days from the
passage of ordinances enacted and resolutions
adopted by the sanggunian in the session over which
he temporarily presided.
The Local Government Code states that the sangguniang

panlungsod "shall be composed of the city vice-mayor as presiding
The purpose of the mandatory notice in Rule 64, Section 3 is to

enable the Solicitor General to decide whether or not his
intervention in the action assailing the validity of a law or treaty is
necessary. To deny the Solicitor General such notice would be
tantamount to depriving him of his day in court We must stress
that, contrary to petitioners' stand, the mandatory notice
requirement is not limited to actions involving declaratory relief
and similar remedies. The rule itself provides that such notice is
required in "any action" and not just actions involving declaratory
relief. Where there is no ambiguity in the words used in the rule,
there is no room for construction. In all actions assailing the
validity of a statute, treaty, presidential decree, order, or
proclamation, notice to the Solicitor General is mandatory.
In this case, the Solicitor General was never notified about Civil
Case No. 14725. Nor did the trial court ever require him to appear
in person or by a representative or to file any pleading or
memorandum on the constitutionality of the assailed decree.
Hence, the Court of Appeals did not err in holding that lack of the
required notice made it improper for the trial court to pass upon
the constitutional validity of the questioned presidential decrees.
officer, the regular sanggunian members, the president of the city

chapter of the liga ng mga barangay, the president of the panlungsod
na pederasyon ng mga sangguniang kabataan, and the sectoral
representatives, as members." As the presiding officer, the vice-
mayor can vote only to break a tie. The vice-mayor, as presiding
officer, is a "member" of the sangguniang panlungsod considering
that he is mandated under the Code to vote to break a tie. A contrary
ruling would create an anomalous and absurd situation where the
presiding officer who votes to break a tie during a sanggunian
session is not considered a "member" of the sanggunian. 394
SECTION 50. InternalRules of Procedure. - (a) On the

first regular session following the election of its
members and within ninety (90) days thereafter, the
sanggunian concerned shall adopt or update its
existing rules of procedure.
(b) The rules of procedure shall provided for the
following:
(1) The organization of the sanggunian
and the election of its officers as well as
the creation of standing committees
which shall include, but shall not be
limited to, the committees on
appropriations, women and family,
human rights, youth and sports
development, environmental
protection, and cooperatives; the
general jurisdiction of each committee;
and the election of the chairman and
members of each committee;
(2) The order and calendar of business
for each session;
(3) The legislative process;
3 94
La Carlota City v. Rojo, G.R. No. 181367, April 24, 2012.
(4) The parliamentary procedures

which include the conduct of members
during sessions;
(5) The discipline of members for
disorderly behavior and absences
without justifiable cause for four (4)
consecutive sessions, for which they
may be censured, reprimanded, or
excluded from the session, suspended
for not more than sixty (60) days, or
expelled: Provided, That the penalty of
suspension or expulsion shall require
the concurrence of at least two-thirds
(2/3) vote of all the sanggunian
members: Provided, further, That a
member convicted by final judgment to
imprisonment of at least one (1) year
for any crime involving moral
turpitude shall be automatically
expelled from the sanggunian; and
(6) Such other rules as the sanggunian
may adopt.
In Malonzo v. Zamora,395 one of the issues raised was whether

an ordinance was valid considering that prior to its passage there
was as yet no formal adoption of rules of procedure by the
Sangguniang Panlungsod of Caloocan City, allegedly in violation of
Sections 50 and 52 of the Code. In that case, the Supreme Court
upheld the validity of the ordinance, noting that there is nothing in
the Code that says no other business may be transacted on the first
day of the regular session. The Court added that.
All that the law requires is that "on the first regular
session.. .the sanggunian concerned shall adopt or
update its existing rules or procedure." There is
nothing in the language thereof that restricts the
matters to be taken up during the first regular session
395
Malonzo v. Zamora, G.R. No. 137718, July 27,1999.
merely to the adoption or updating of the house rules.

If it were the intent of Congress to limit the business of
the local council to such matters, then it would have
done so in clear and unequivocal terms. But as it is,
there is no such intent.
The Court added that the adoption or updating of house rules
would necessarily entail work beyond the day of the first regular
session. In the case of Caloocan City, the members of the
sangguniang panlungsod took until July 23,1998 to complete the task
of adopting their house rules. This did not mean that before such
date the local council's hands were tied and could not act on any
other matter because it would "result in a hiatus and a paralysis in
the local legislature's work which could not have been intended by
the law."
In a Motion for Reconsideration, the Office of the President
argued that assuming that the sanggunian can legally take up
matters pertaining to the supplemental budget even before the
adoption or updating of its existing rules of procedure, the
circumstances that preceded the enactment of the ordinance were
irregular since there was undue haste in conducting the three
readings of the ordinance in one session day. The Court, however,
said that:
There is nothing in the law, however, which prohibits
that the three readings of a proposed ordinance be
held in just one session day.... And it certainly is not
the function of this Court to speculate that the
councilors were not given ample time for reflection
and circumspection before the passage of the
proposed ordinance by conducting the three readings
in just one day considering that it was a certain
Eduardo Tibor, by himself as taxpayer, and not the
councilors themselves, who raised such complaint. It
might not be amiss to point out that the salaries of the
city employees were to be funded by the said
ordinance which embodied the supplemental budget
for 1998, hence, the urgency for its passage. Even the
five (5) councilors who abstained from voting for the
passage of Ordinance 0254, Series of 1998 took

advantage of its benefits by submitting to the office of
petitioner Malonzo the names of the employees
assigned to their respective offices for salary and
3
accounting purposes. 96
Votes Needed to Amend an Ordinance

In the case of Casino v. Court of Appeals,397 the Court ruled that
Resolution No. 378, which provided for an amendment of Resolution
No. 49, issued by the sangguniang panlungsod is invalid for failure
to comply with the required votes necessary for its validity. The
Court held in this case that:
Although the charter of the City of Gingoog and the
Local Government Code require only a majority for
the enactment of an ordinance, Resolution No. 49
cannot be validly amended by the resolution in
question without complying with the categorical
requirement of a three-fourths vote incorporated in
the very same ordinance sought to be amended. The
pertinent provisions in the aforesaid city charter and
the Local Government Code obviously are of general
application and embrace a wider scope or subject
matter. In the enactment of ordinances in general, the
application of the aforementioned laws cannot be
disputed. Undeniably, however, Section 6.44 of said
ordinance regarding amendments thereto is a specific
and particular provision for said ordinance and
explicitly provides for a different number of votes.
Where there is in the same statute a particular
enactment and also a general one which in its most
comprehensive sense would include what is embraced
in the former, the particular enactment must be
operative, and the general statement must be taken to
affect only such cases within its language as are not
within the provisions of the particular enactment.
396
Malonzo v. Zamora, G.R. No. 137718, January 28,2000.
39 G.R. No. 91192, December 2,1991.
This case should be regarded as an aberration. The bulk of

case law favors the opposite rule. The power of the legislature to
make laws includes the power to amend and repeal these laws.
Congress cannot, by its own act, limit its power to amend or repeal
laws. When Congress requires a higher number of votes to amend a
law, the Supreme Court has the duty to strike down such act for
interfering with the plenary powers of Congress. Each House of
Congress has the power to approve bills by a mere majority vote,
provided there is quorum. The act of one legislature is not binding
upon, and cannot tie the hands of, future legislatures.
SECTION 51. Full Disclosure of Financial and Business

Interests of Sanggunian Members. - (a) Every
sanggunian member shall, upon assumption to office,
make a full disclosure of his business and financial
interests, or professional relationship or any relation
by affinity or consanguinity within the fourth civil
degree, which he may have with any person, firm, or
entity affected by any ordinance or resolution under
consideration by the sanggunian of which he is a
member, which relationship may result in conflict of
interest. Such relationship shall include:
(1) Ownership of stock or capital, or
investment, in the entity or firm to
which the ordinance or resolution may
apply; and
(2) Contracts or agreements with any
person or entity which the ordinance or
resolution under consideration may
affect.
In the absence of a specific constitutional or statutory
provision applicable to this situation, "conflict of
interest" refers in general to one where it may be
reasonably deduced that a member of a sanggunian
3
% Datu Michael Abas Kida v. Senate of the Philippines, G.R. No. 196271, February
28,2012.
may not act in the public interest due to some private,

pecuniary, or other personal considerations that may
tend to affect his judgment to the prejudice of the
service or the public.
(b) The disclosure required under this Act shall be
made in writing and submitted to the secretary of the
sanggunian or the secretary of the committee of which
he is a member. The disclosure shall, in all cases, form
part of the record of the proceedings and shall be
made in the following manner:
(1) Disclosure shall be made before the
member participates in the
deliberations on the ordinance or
resolution under consideration:
Provided, That, if the member did not
participate during the deliberations, the
disclosure shall be made before voting
on the ordinance or resolution on
second and third readings; and
(2) Disclosure shall be made when a
member takes a position or makes a
privilege speech on a matter that may
affect the business interest, financial
connection, or professional relationship
described herein.
SECTION 52. Sessions. - (a) On the first day of the
session immediately following the election of its
members, the sanggunian shall, by resolution, fix the
day, time, and place of its regular sessions. The
minimum numbers of regular sessions shall be once a
week for the sangguniang panlalawigan, sangguniang
panlungsod, and sangguniang bayan, and twice a
month for the sangguniang barangay.
(b) When public interest so demands, special sessions
may be called by the local chief executive or by a
majority of the members of the senggunian.
(c) All sanggunian sessions shall be open to the public

unless a closed-door session is ordered by an
affirmative vote of a majority of the members present,
there being a quorum, in the public interest or for
reasons of security, decency, or morality. No two (2)
sessions, regular or special, may be held in a single
day.
(d) In the case of special sessions of the sanggunian, a
written notice to the members shall be served
personally at the member's usual place of residence at
least twenty-four (24) hours before the special session
is held.
Unless otherwise concurred in by two-thirds (2/3)
vote of the sanggunian members present, there being a
quorum, no other matters may be considered at a
special session except those stated in the notice.
(e) Each sanggunian shall keep a journal and record of
its proceedings which may be published upon
resolution of the sanggunian concerned.
SECTION 53. Quorum. - (a) A majority of all the
members of the sanggunian who have been elected
and qualified shall constitute a quorum to transact
official business. Should a question of quorum be
raised during a session, the presiding officer shall
immediately proceed to call the roll of the members
and thereafter announce the results.
(b) Where there is no quorum, the presiding officer
may declare a recess until such time as a quorum is
constituted, or a majority of the members present may
adjourn from day to day and may compel the
immediate attendance of any member absent without
justifiable cause by designating a member of the
sanggunian to be assisted by a member or members of
the police force assigned in the territorial jurisdiction
of the local government unit concerned, to arrest the
absent member and present him at the session.
(c) If there is still no quorum despite the enforcement

of the immediately preceding subsection, no business
shall be transacted. The presiding officer, upon proper
motion duly approved by the members present, shall
then declare the session adjourned for lack of quorum.
A quorum of the sangguniang panlungsod should be

computed based on the total composition of the sangguniang
panlungsod. In La CarlotaCity v. Rojo,399 the Supreme Court held that
the sangguniang panlungsod of La Carlota City, Negros Occidental is
composed of the presiding officer, ten regular members, and two ex-
officio members, or a total of thirteen members. A majority of the 13
"members" of the sangguniang panlungsod, or at least seven
members, is needed to constitute a quorum to transact official
business. Since seven members (including the presiding officer) were
present on the March 17, 2004 regular session of the sangguniang
panlungsod, there was a quorum such that the irrevocable
resignation of respondent was validly accepted.
In the case of Zamora v. Caballero,40o one Manuel Zamora, a
member of the sangguniang panlalawigan of Compostela Valley,
sought to invalidate all acts executed and resolutions issued by the
sanggunian during its sessions held on February 8 and 26, 2001 for
lack of quorum. He said that while the Journal and Resolutions
indicated the presence of 13 members, the sanggunian nonetheless
"conducted official business without a quorum" as only seven of its
fourteen members were actually present when those acts were
executed.
In taking cognizance of the petition, the Court first
differentiated the present case from the case of Arroyo v. De Venecia
wherein it refused to inquire into the allegation that the House of
representatives failed to comply with the rules of procedure which
the House itself promulgated. In the present case, the Court is called
upon to determine whether sanggunian complied with the Local
Government Code, a law enacted by the Congress and its
Implementing Rules. Unlike the case of Arroyo v. De Venecia, it is not
399 G.R. No. 181367, April 24, 2012.

400 G.R. No. 147767, January 14, 2004.
called upon to inquire into the sanggunian's compliance with its own
rules.
On the issue on Quorum, the Court held:

"Quorum" is defined as that number of members of a
body which, when legally assembled in their proper
places, will enable the body to transact its proper
business or that number which makes a lawful body
and gives it power to pass upon a law or ordinance or
do any valid act. "Majority," when required to
constitute a quorum, means the number greater than
half or more than half of any total. In fine, the entire
membership must be taken into account in computing
the quorum of the sangguniang panlalawigan, for
while the constitution merely states that "majority of
each House shall constitute a quorum," Section 53 of
the LGC is more exacting as it requires that the
"majority of all members of the sanggunian... elected
and qualified" shall constitute a quorum.
The difference in the wordings of the Constitution and
the LGC is not merely "a matter of style and writing"
as respondents would argue, but is actually a matter
of "meaning and intention." The qualification in the
LGC that the majority be based on those "elected and
qualified" was meant to allow sanggunians to
function even when not all members thereof have
been proclaimed. And, while the intent of the
legislature in qualifying the quorum requirement was
to allow sanggunians to function even when not all
members thereof have been proclaimed and have
assumed office, the provision necessarily applies
when, after all the members of the sanggunian have
assumed office, one or some of its members file for
leave. What should be important then is the
concurrence of election to and qualification for the
office. And election to, and qualification as member of,
a local legislative body are not altered by the simple

expedient of filing a leave of absence.
The trial court should thus have based its
determination of the existence of a quorum on the
total number of members of the sanggunian without
regard to the filing of a leave of absence by Board
Member Sotto. The fear that a majority may, for
reasons of political affiliation, file leaves of absence in
order to cripple the functioning of the sanggunian is
already addressed by the grant of coercive power to a
mere majority of sanggunian members present when
there is no quorum.
SECTION 54. Approval of Ordinances. - (a) Every
ordinance enacted by the sangguniang panlalawigan,
sangguniang panlungsod, or sangguniang bayan shall
be presented to the provincial governor or city or
municipal mayor, as the case may be. If the local chief
executive concerned approves the same, he shall affix
his signature on each and every page thereof;
otherwise, he shall veto it and return the same with
his objections to the sanggunian, which may proceed
to reconsider the same. The sanggunian concerned
may override the veto of the local chief executive by
two-thirds (2/3) vote of all its members, thereby
making the ordinance or resolution effective for all
legal intents and purposes.
(b) The veto shall be communicated by the local chief
executive concerned to the sanggunian within fifteen
(15) days in the case of a province, and ten (10) days in
the case of a city or a municipality; otherwise, the
ordinance shall be deemed approved as if he had
signed it.
(c) Ordinances enacted by the sangguniang barangay
shall, upon approval by the majority of all its
members, be signed by the punong barangay.
According to Article 107 (g) of the Implementing Rules and

Regulations for the Local Government Code, "[n]o ordinance or
resolution passed by the sanggunian in a regular or special session
duly called for the purpose shall be valid unless approved by a
majority of the members present, there being quorum." 1
SECTION 55. Veto Power of the Local Chief Executive. -

(a) The local chief executive may veto any ordinance
of the sanggunian panlalawigan, sangguniang
panlungsod, or sanggunian bayan on the ground that
it is ultra vires or prejudicial to the public welfare,
stating his reasons therefor in writing.
(b) The local chief executive, except the punong
barangay, shall have the power to veto any particular
item or items of an appropriations ordinance, an
ordinance or resolution adopting a local development
plan and public investment program, or an ordinance
directing the payment of money or creating liability.
In such a case, the veto shall not affect the item or
items which are not objected to. The vetoed item or
items shall not take effect unless the sanggunian
overrides the veto in the manner herein provided;
otherwise, the item or items in the appropriations
ordinance of the previous year corresponding to those
vetoed, if any, shall be deemed reenacted.
(c) The local chief executive may veto an ordinance or
resolution only once. The sanggunian may override
the veto of the local chief executive concerned by two-
thirds (2/3) vote of all its members, thereby making
the ordinance effective even without the approval of
the local chief executive concerned.
The grant of the veto power to the local chief executive does
not confer a simple mechanical act of signing an ordinance or
401 Zamora v. Caballero, G.R. No. 147767, January 14,2004.

resolution as a requisite to its enforceability. The veto power gives

the local chief executive the discretion to sustain a resolution or
ordinance in the first instance or to veto it and return it with his
objections to the sanggunian, which may then proceed to reconsider
the same. The sanggunian concerned, however, may override the
veto by a two-thirds (2/3) vote of all its members thereby making the
ordinance or resolution effective for all legal intents and purposes. It
is clear, therefore, that the concurrence of a local chief executive in
the enactment of an ordinance or resolution requires not only a
flourish of the pen but the application of judgment after meticulous
analysis and intelligence as well.402
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 period of ten (10) days from
receipt of the documents, inform the sangguniang
panlalawigan in writing of his comments or
recommendations, which may be considered by the
sangguniang panlalawigan in making its decision.
(c) If the sangguniang panlalawigan finds that such an
ordinance or resolution is beyond the power conferred
upon the sangguniang panlungsod or sangguniang
4M2De Los Reyes v. Sandiganbayan, G.R. No. 121215, November 13,1997.

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.4m
In Moday v. Court of Appeals,4°4 the sangguniang bayan of the

Municipality of Bunawan in Agusan del Sur passed a resolution
authorizing the Municipal Mayor to initiate the petition for
expropriation of a land owned by Percival Moday for the site of
Bunawan Farmers Center and other government sports facilities. The
resolution was approved by then Municipal Mayor Anuncio C.
Bustillo and transmitted to the sangguniang panlalawigan for its
approval. However, the sangguniang panlalawigan disapproved the
resolution on the ground that "expropriation is unnecessary
considering that there are still available lots in Bunawan for the
establishment of the government center."
Moday questioned the lack of authority of the municipality to
exercise eminent domain since the sangguniang panlalawigan
disapproved the resolution authorizing the mayor to initiate the
proceedings.
The Supreme Court ruled against him. Interpreting the old
local government code, the Court held that the disapproval of the
resolution was "an infirm action" which did not render said
resolution null and void. The law grants the sangguniang
panlalawigan the power to declare a municipal resolution invalid on
the sole ground that it is beyond the power of the sangguniang bayan
or the mayor to issue.
43 If more than thirty days have elapsed from the time the ordinance was submitted
for review by the sangguniang bayan, it should be deemed approved and valid
pursuant to Section 56 (d). Acaac v. Azcuna, Jr. v. G.R. No. 187378, September 30,
2013.
44 G.R. No. 107916, February 20,1997.
It should be stressed that the same ground has been adopted

in the present Local Government Code under Section 56 (c).
However, certain provisions of Republic Act No. 7279, or the Urban
Development and Housing Act of 1992 may be pertinent:
"in~Pe
thpAqtion Land.-Lns
fo (scalizehousing
oralldbed anqird in th
(a) Those owthin the eclaerAmeatfor

'isrumentaitiesorn agenies
1incluvdint
gondrReeetowlemeor
corollmescopoaton
havent yteir
Sitleable leads orLIStes puic

(c)Uegisyteeno abanded and il
iority Deveopmeth Zoa

aqiiIpr oment ites, ths
and lum~id~
an proement~ ~noidtnd ttemnd
Baeg Lia
,(oi~e) Iprovement Pod
haeve4nt et been acquir e and t~t ?I
(f)n
Privatelyone lads.,
,exhausted: Provided further, That where',

,expropriation is resorted to, pacels of land owneiy
tsmall property owners shall be exempted for purposes
of this Act Provided, finally, That abandoned
ropt, as herein defined, shall be reverted an&
ec
escheated to the State in a proceeding analogous to thel
srocedire aiddowi n in Rule 91 of the Rules of Courty.to
In Filstream InternationalIncorporated v. Court of Appeals,405 the

Supreme Court held that from the these provisions, it is clear that
there are limitations with respect to the order of priority in acquiring
private lands and in resorting to expropriation proceedings as a
means to acquire the same. Under Section 9, private lands rank last in
the order of priority for purposes of socialized housing. Under
Section 10, all other modes of acquisition must be exhausted before
expropriation proceedings are initiated. The Court held these
requirements to be mandatory "because these are the only
safeguards in securing the right of owners of private property to due
process when their property is expropriated for public use."
As such, it may now be argued that for purposes of socialized
housing, the sangguniang panlalawigan may now disapprove an
ordinance authorizing a local chief executive to initiate expropriation
proceedings if there are other lands available for such public use and
that the modes of acquisition under Section 10 have not been
exhausted.
SECTION 57. Reviewv of Barangay Ordinances by the

Saugguniang 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.
405 G.R. Nos. 125218 and 128077, January 23,1998.

(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.
SECTION 58. Enforcement of Disapproved Ordinancesor
Resolutions. - Any attempt to enforce any ordinance
or any resolution approving the local development
plan and public investment program, after the
disapproval thereof, shall be sufficient ground for the
suspension or dismissal of the official or employee
concerned.
SECTION 59. Effectivity of Ordinancesor Resolutions. -
(a) Unless otherwise stated in the ordinance or the
resolution approving the local development plan and
public investment program, the same shall take effect
after ten (10) days from the date a copy thereof is
posted in a bulletin board at the entrance of the
provincial capitol or city, municipal, or barangay hall,
as the case may be, and in at least two (2) other
conspicuous places in the local government unit
concerned.
(b) The secretary to the sanggunian concerned shall
cause the posting of an ordinance or resolution in the
bulletin board at the entrance of the provincial capitol
and the city, municipal, or barangay hall in at least
two (2) conspicuous places in the local government
unit concerned not later than five (5) days after
approval thereof.
The text of the ordinance or resolution shall be

disseminated and posted in Filipino or English and in
the language understood by the majority of the people
in the local government unit concerned, and the
secretary to the sanggunian shall record such fact in a
book kept for the purpose, stating the dates of
approval and posting.
(c) The gist of all ordinances with penal sanctions shall
be published in a newspaper of general circulation
within the province where the local legislative body
concerned belongs. In the absence of any newspaper
of general circulation within the province, posting of
such ordinances shall be made in all municipalities
and cities of the province where the sanggunian of
origin is situated.
(d) In the case of highly urbanized and independent
component cities, the main features of the ordinance
or resolution duly enacted or adopted shall, in
addition to being posted, be published once in a local
newspaper of general circulation within the city:
Provided, That in the absence thereof the ordinance or
resolution shall be published in any newspaper of
general circulation.
Section 59 is the general rule governing the publication of

ordinances and resolutions. As pointed out earlier, the Code has
specific provisions on the publication of tax ordinances in local
newspapers 4°6 and ordinances with penal sanctions. 4°7 Section 511 of
46 According to Section 188 of the Code:

SECTION 188. Publication of Tax Ordinancesand Revenue Measures.
- Within ten (10) days after their approval, certified true copies of
all provincial, city, and municipal tax ordinances or revenue
measures shall be published in full for three (3) consecutive days
in a newspaper of local circulation: Provided, however, That in
provinces, cities and municipalities where there are no
newspapers of local circulation, the same may be posted in at least
two (2) conspicuous and publicly accessible places.
07 The Code, under Section 511, provides:
the Code requires the publication of the entire ordinance (not only
the gist) if it contains penal sanctions.
The review of ordinances is not the exclusive means by which
an ordinance may be nullified. Issues on its validity or
constitutionality may be brought before the Regional Trial Courts.
The Constitution vests the power to declare the unconstitutionality of
a law, treaty, international or executive agreement, presidential
decree, order, instruction, ordinance, or regulation not only in the
Supreme Court, but in all Regional Trial Courts."
The Supreme Court does not have original jurisdiction over a
petition for declaratory relief even if only questions of law are
involved. 4 9 The Supreme Court can only review, revise, reverse,
modify on appeal or certiorari final judgments and orders of lower
courts in all cases in which the constitutionality or validity of an
ordinance is in question. There must be first a final judgment
rendered by an inferior court before the Supreme Court can assume
jurisdiction over a case where the validity of an ordinance is at issue.
It does not conduct original and full trial of a main factual issue and
does not analyze or weigh evidence brought before it at the first
SECTION 511. Posting and Publication of Ordinances with Penal

Sanctions. - (a) Ordinances with penal sanctions shall be posted at
prominent places in the provincial capitol, city, municipal or
barangay hall, as the case may be, for a minimum period of three
(3) consecutive weeks. Such ordinances shall also be published in a
newspaper of general circulation, where available, within the
territorial jurisdiction of the local government unit concerned,
except in the case of barangay ordinances. Unless otherwise
provided therein, said ordinances shall take effect on the day
following its publication, or at the end of the period of posting,
whichever occurs later.
(b) Any public officer or employee who violates an ordinance may
be meted administrative disciplinary action, without prejudice to
the filing of the appropriate civil or criminal action.
(c) The secretary to the sanggunian concerned shall transmit
official copies of such ordinances to the chief executive officer of
the Office Gazette within seven (7) days following the approval of
the said ordinance for publication purposes. The Official Gazette
may publish ordinances with penal sanctions for archival and
reference purposes.
408
Mirasol v. Court of Appeals, G.R. No. 128448, February 1, 2001.
4m The Liga ng mga Barangay National v. The City Mayor of Manila, G.R. 154599,
January 21, 2004.
instance. Otherwise, it would preempt the primary function of the

lower court to try the case on the merits, receive evidence, and decide
the case definitively. Its jurisdiction in cases which assail the validity
of an ordinance is limited to reviewing or revising final judgments or
orders of lower courts and applying the law based on their findings
of facts brought before it.410
Chapter IV
Disciplinary Actions
SECTION 60. Grounds for Disciplinary Actions. - An
elective local official may be disciplined, suspended,
or removed from office on any of the following
grounds:
(a) Disloyalty to the Republic of the
Philippines;
(b) Culpable violation of the
Constitution;
(c) Dishonesty, oppression, misconduct
in office, gross negligence, or
dereliction of duty;
(d) Commission of any offense
involving moral turpitude or an offense
punishable by at least prision mayor;
(e) Abuse of authority;
(f) Unauthorized absence for fifteen
(15) consecutive working days, except
in the case of members of the
sangguniang panlalawigan,
sangguniang panlungsod, sangguniang
bayan, and sangguniang barangay;
410 Ortega v. The Quezon City Government, G.R. No, 161400, September 2,2005.
(g) Application for, or acquisition of,

foreign citizenship or residence or the
status of an immigrant of another
country; and
(h) Such other grounds as may be
provided in this Code and other
laws. 411
An elective local official may be removed from office
on the grounds enumerated above by order of the
proper court.
It is clear from Section 60 that the penalty of dismissal from

service upon an erring elective local official may be decreed only by a
court of law. 412 Section 60 of the Local Government Code conferred
upon the courts the power to remove elective local officials from
office. During the deliberations of the Senate on the Local
Government Code, the legislative intent to confine to the courts, i.e.,
Regional Trial Courts, the Sandiganbayan and the appellate courts,
jurisdiction over cases involving the removal of elective local officials
was evident. The rule which confers to the proper courts the power
to remove an elective local official from office is intended as a check
against any capriciousness or partisan activity by the disciplining
authority. Vesting the local legislative body with the power to decide
whether or not a local chief executive may be removed from office,
and only relegating to the courts a mandatory duty to implement the
decision, would still not free the resolution of the case from the
capriciousness or partisanship of the disciplining authority. 413
Congress clearly meant that the removal of an elective local
official be done only after a trial before the appropriate court, where
court rules of procedure and evidence can ensure impartiality and
fairness and protect against political maneuverings. Elevating the
removal of an elective local official from office from an
411 Local government officials who fail to comply with and enforce rules and
regulations promulgated relative to the "Ecological Solid Waste Management Act of
2000" (Republic Act No. 9003 [2001]) shall be charged administratively in accordance
with Republic Act No. 7160 and other existing laws, rules and regulations.
412Pablico v. Villapando, G.R. No. 147870, July 31, 2002.
413 The Sangguniang Barangay of Barangay Don Mariano Marcos v. Martinez, G.R.
No. 170626, March 3,2008.
administrative case to a court case may be justified by the fact that

such removal not only punishes the official concerned but also, in
effect, deprives the electorate of the services of the official for whom
414
they voted.
Section 61 of the Local Government Code provides for the
procedure for the filing of an administrative case against an erring
elective barangay official before the sangguniang panlungsod or
sangguniang bayan. However, the sangguniang panlungsod or
sangguniang bayan cannot order the removal of an erring elective
barangay official from office, as the courts are exclusively vested
with this power under Section 60 of the Local Government Code.
Thus, if the acts allegedly committed by the barangay official are of a
grave nature and, if found guilty, would merit the penalty of
removal from office, the case should be filed with the regional trial
court. Once the court assumes jurisdiction, it retains jurisdiction over
the case even if it would be subsequently apparent during the trial
that a penalty less than removal from office is appropriate. On the
other hand, the most extreme penalty that the sangguniang
panlungsod or sangguniang bayan may impose on the erring elective
barangay official is suspension; if it deems that the removal of the
official from service is warranted, then it can resolve that the proper
415
charges be filed in court.
SECTION 61. Form and Filing of Administrative

Complaints. - A verified complaint against any erring
local elective official shall be prepared as follows:
(a) A complaint against any elective
official of a province, a highly
urbanized city, an independent
component city or component city shall
be filed before the Office of the
President;
414
The Sangguniang Barangay of Barangay Don Mariano Marcos v. Martinez, G.R.
No. 170626, March 3, 2008.
415The Sangguniang Barangay of Barangay Don Mariano Marcos v. Martinez, G.R.
No. 170626, March 3, 2008.
(b) A complaint against any elective

official of a municipality shall be filed
before the sangguniang panlalawigan
whose decision may be appealed to the
Office of the President;4 16 and
(c) A complaint against any elective
barangay official shall be filed before
the sangguniang panlungsod or
sangguniang bayan concerned whose
decision shall be final and executory.
The phrase "final and executory" used in the immediately-
quoted provision was construed to mean "immediately executory,"
although the respondent may appeal the adverse decision to the
417
proper office.
The Ombudsman has concurrent jurisdiction with the
sangguniang bayan over administrative cases against elective
barangay officials occupying positions below salary grade 27. In
administrative cases involving the concurrent jurisdiction of two or
more disciplining authorities, the body in which the complaint is
filed first, and which opts to take cognizance of the case, acquires
jurisdiction to the exclusion of other tribunals exercising concurrent
jurisdiction. If the complaint was filed first in the Ombudsman, and
the Ombudsman opted to assume jurisdiction over the complaint, the
Ombudsman's exercise of jurisdiction is to the exclusion of the
418
sangguniang bayan exercising concurrent jurisdiction.
416 It is apparent from the foregoing provisions that the remedy of appeal to the
Office of the President is available. Since appeal was available, resort to filing a
petition for certiorari,prohibition and mandamus with the Court of Appeals under
Rule 65, was inapt See Balindong v. Dacalos, G.R. No. 158874, November 10, 2004.
4171Don v. Lacsa, G.R. No. 170810, August 7,2007.
418 Office of the Ombudsman v. Rodriguez, G.R. No. 172700, July 23, 2010. See also
Alejandro v. Office of the Ombudsman Fact-Finding and Intelligence Bureau, G.R.

No. 173121, April 3, 2013. In that case, the Supreme Court held that since the
complaint against the petitioner was initially filed with the Office of the
Ombudsman, the Ombudsman's exercise of jurisdiction is to the exclusion of the
sangguniang bayan whose exercise of jurisdiction is concurrent
SECTION 62. Notice of hearing. - (a) Within seven (7)

days after the administrative complaint is filed, the
Office of the President or the sanggunian concerned,
as the case may be, shall require the respondent to
submit his verified answer within fifteen (15) days
from receipt thereof, and commence the investigation
of the case within ten (10) days after receipt of such
answer of the respondent.
(b) When the respondent is an elective official of a
province or highly urbanized city, such hearing and
investigation shall be conducted in the place where he
renders or holds office. For all other local elective
officials, the venue shall be the place where the
sanggunian concerned is located.
(c) However, no investigation shall be held within
ninety (90) days immediately prior to any local
election, and no preventive suspension shall be
imposed within the said period. If preventive
suspension has been imposed prior to the 90-day
period immediately preceding local election, it shall be
deemed automatically lifted upon the start of
aforesaid period.
SECTION 63. Preventive Suspension. - (a) Preventive
suspension may be imposed:
(1) By the President, if the respondent
is an elective official of a province, a
highly urbanized or an independent
component city;
(2) By the governor, if the respondent is
an elective official of a component city
or municipality; or
(3) By the mayor, if the respondent is
an elective official of the barangay.
(b) Preventive suspension may be imposed at any time
after the issues are joined, when the evidence of guilt
is strong, and given the gravity of the offense, there is
great probability that the continuance in office of the

respondent could influence the witnesses or pose a
threat to the safety and integrity of the records and
other evidence: Provided, That, any single preventive
suspension of local elective officials shall not extend
beyond sixty (60) days: Provided, further, That in the
event that several administrative cases are filed
against an elective official, he cannot be preventively
suspended for more than ninety (90) days within a
single year on the same ground or grounds existing
and known at the time of the first suspension.
(c) Upon expiration of the preventive suspension, the
suspended elective official shall be deemed reinstated
in office without prejudice to the continuation of the
proceedings against him, which shall be terminated
within one hundred twenty (120) days from the time
he was formally notified of the case against him.
However, if the delay in the proceedings of the case is
due to his fault, neglect, or request, other than the
appeal duly filed, the duration of such delay shall not
be counted in computing the time of termination of
the case.
(d) Any abuse of the exercise of the power of
preventive suspension shall be penalized as abuse of
authority.
The remedy of an elective official questioning a preventive

suspension is to file a case with the Secretary of the DILG. Direct
recourse to the courts is allowed only upon exhaustion of
administrative remedies. 419
There may be differences of opinions with the seriousness of
the charges, or as to whether they warrant disciplinary action.
However, as a general rule, the office or body that is invested with
the power of removal or suspension should be the sole judge of the
necessity and sufficiency of the cause. So, unless a flagrant abuse of
the exercise of that power is shown, public policy and a becoming
419 Espiritu v. Melgar, G.R. No. 100874, February 13,1992.

regard for the principle of separation of powers demand that the

action of said officer or body should be left undisturbed.40
Before a public officer can file a petition for Certiorari to
question his preventive suspension, he must wait first for the action
of the one empowered by law to suspend him as to the
recommendation of the sangguniang panlalawigan. 42m
SECTION 64. Salary of Respondent Pending Suspension. -

The respondent official preventively suspended from
office shall receive no salary or compensation during
such suspension; but upon subsequent exoneration
and reinstatement, he shall be paid full salary or
compensation including such emoluments accruing
during such suspension.
SECTION 65. Rights of Respondent. - The respondent
shall be accorded full opportunity to appear and
defend himself in person or by counsel, to confront
and cross-examine the witnesses against him, and to
require the attendance of witnesses and the
production of documentary process of subpoena or
subpoena duces tecum.
SECTION 66. Form and Notice of Decision. - (a) The
investigation of the case shall be terminated within
ninety (90) days from the start thereof. Within thirty
(30) days after the end of the investigation, the Office
of the President or the sanggunian concerned shall
render a decision in writing stating clearly and
distinctly the facts and the reasons for such decision.
Copies of said decision shall immediately be furnished
the respondent and all interested parties.
(b) The penalty of suspension shall not exceed the
unexpired term of the respondent or a period of six (6)
months for every administrative offense, nor shall said
4
Espiritu v. Melgar, G.R. No. 100874, February 13,1992.
M Flores v. Sangguniang Panlalawigan of Pampanga, G.R. No. 159022, February 23,
2005.
penalty be a bar to the candidacy of the respondent so

suspended as long as he meets the qualifications
required for the office.
(c) The penalty of removal from office as a result of an
administrative investigation shall be considered a bar
to the candidacy of the respondent for any elective
position.
SECTION 67. Administrative Appeals. - Decisions in
administrative cases may, within thirty (30) days from
receipt thereof, be appealed to the following:
(a) The sangguniang panlalawigan, in
the case of decisions of the
component cities and the sangguniang
bayan; and
(b) The Office of the President, in the
case of decisions of the sangguniang
panlalawigan and the sangguniang
panlungsod of highly urbanized cities
and independent component cities.
Decisions of the Office of the President shall be final
and executory.
SECTION 68. Execution Pending Appeal. - An appeal
shall not prevent a decision from becoming final or
executory. The respondent shall be considered as
having been placed under preventive suspension
during the pendency of an appeal in the event he wins
such appeal. In the event the appeal results in
exoneration, he shall be paid his salary and such other
emoluments during the pendency of the appeal.
Sections 67 and 68 mean that the administrative appeals will

not prevent the enforcement of the decisions. The decision is
immediately executory but the respondent may nevertheless appeal
the adverse decision to the Office of the President or to the
sangguniang panlalawigan, as the case may be.422 In another case, the

Court held that decisions of the Office of the President are final and
executory. No motion for reconsideration is allowed by law but the
parties may appeal the decision to the Court of Appeals. The appeal,
however, does not stay the execution of the decision. Thus, the DILG
423
Secretary may validly move for its immediate execution.
These cases are aligned with the intent of the law. An earlier
decision of the Supreme Court somehow sanctioned a stay on the
execution of the appealed decision. In that case the Court held that
the first sentence of Section 68 merely provides that an "appeal shall
not prevent a decision from becoming final or executory." It went on
to say that as the law was worded, "there is room to construe said
provision as giving discretion to the reviewing officials to stay the
execution of the appealed decision. There is nothing to infer
therefrom that the reviewing officials are deprived of the authority to
order a stay of the appealed order." 424 It is difficult to see how the
Supreme Court could have read discretion into the powers of the
reviewing officials when the law is crystal clear: "appeal shall not
prevent a decision from becoming final or executory."
ConcurrentJurisdictionin Administrative Cases42z

The remedies against erring local officials found in the Local
Government Code are not exclusive. The Office of the Ombudsman is
tasked to exercise disciplinary authority over all elective and
appointive officials, except for officers who are subject to
impeachment. Section 21 of the Ombudsman Act and the Local
Government Code both provide for the procedure to discipline
elective officials. The Ombudsman Act and the Local Government
Code may be reconciled by understanding the primary jurisdiction
and concurrentjurisdiction of the Office of the Ombudsman.
Mendoza v. Laxina, G.R. No. 146875, July 14, 2003.

423
Calingin v. Court of Appeals, G.R. No. 154616, July 12, 2004.
424
Berces v. Guingona, G.R. No. 112099, February 21,1995.
425
No. 173121, April 3, 2013.
The Ombudsman has primary jurisdiction to investigate any

act or omission of a public officer or employee who is under the
jurisdiction of the Sandiganbayan. Republic Act No. 6770 provides:
iecti.on 15. Powvers, FunctisandDuties. - The.Office

Of the Ombudsman shall have the following powers,
Ifunctions adduties:- .
The Sandiganbayan's jurisdiction extends only to public

officials occupying positions corresponding to salary grade 27 and
higher. Any act or omission of a public officer or employee
occupying a salary grade lower than 27 is within the concurrent
jurisdiction of the Ombudsman and of the regular courts or other
investigative agencies. 426
In administrative cases involving the concurrent jurisdiction
of two or more disciplining authorities, the body where the
complaint is filed first, and which opts to take cognizance of the case,
acquires jurisdiction to the exclusion of other tribunals exercising
concurrent jurisdiction. If the officer is a Barangay Chairman (who
occupies a position corresponding to salary grade 14), the
426 Alejandro v. Office of the Ombudsman Fact-Finding and Intelligence Bureau, G.R.
No. 173121, April 3,2013.
sangguniang panlungsod or sangguniang bayan has disciplinary

authority over any elective barangay official. 47
If a complaint against an official is initially filed with the
Office of the Ombudsman, the Ombudsman's exercise of jurisdiction
is to the exclusion of the sangguniang bayan whose exercise of
jurisdiction is concurrent. 428
Jurisdiction over administrative disciplinary actions against
elective local officials is lodged in two authorities: the Disciplining
Authority and the Investigating Authority. This is explicit from
Administrative Order No. 23, Sections 2 and 3. Pursuant to these
provisions, the Disciplining Authority is the President of the
Philippines, whether acting by himself or through the Executive
Secretary. The Secretary of the Interior and Local Government is the
Investigating Authority who may act by himself or constitute an
Investigating Committee. The Secretary of the DILG, however, is not
the exclusive Investigating Authority. In lieu of the DILG Secretary,
the Disciplining Authority may designate a Special Investigating
Committee.429
The power of the President over administrative disciplinary
cases against elective local officials is derived from his power of
general supervision over local governments. 430
The power of supervision means "overseeing or the authority
of an officer to see that the subordinate officers perform their duties."
If the subordinate officers fail or neglect to fulfill their duties, the
official may take such action or step as prescribed by law to make
them perform their duties. The President's power of general
supervision means no more than the power of ensuring that laws are
faithfully executed, or that subordinate officers act within the law.
Supervision is not incompatible with discipline. And the power to
discipline and ensure that the laws be faithfully executed must be
construed to authorize the President to order an investigation of the
No. 173121, April 3, 2013.
428
No. 173121, April 3, 2013.
429
Joson v. Executive Secretary, G.R. No. 131255, May 20,1998.
43
oJoson v. Executive Secretary, G.R. No. 131255, May 20,1998.
act or conduct of local officials when in his opinion the good of the
public service so requires. 431
The power to discipline evidently includes the power to
investigate. As the disciplining authority, the President has the
power derived from the Constitution itself to investigate complaints
against local government officials. Administrative Order No. 23,
however, delegates the power to investigate to the DILG or a Special
Investigating Committee, as may be constituted by the Disciplining
Authority. According to the Court, this is not undue delegation,
contrary to petitioner Joson's claim. The President remains the
Disciplining Authority. What is delegated is the power to investigate,
432
not the power to discipline.
Moreover, the power of the DILG to investigate
administrative complaints is based on the alter-ego principle or the
433
doctrine of qualified political agency.
An erring elective local official has rights akin to the
constitutional rights of an accused. These rights are essentially part of
procedural due process. The local elective official has (1) the right to
appear and defend himself in person or by counsel; (2) the right to
confront and cross-examine the witnesses against him; and (3) the
right to compulsory attendance of witness and the production of
documentary evidence. These rights are reiterated in the Rules
Implementing the Local Government Code and in Administrative
Order No. 23.4m
The provisions for administrative disciplinary actions against
elective local officials are markedly different from appointive
officials. The rules on the removal and suspension of elective local
officials are more stringent. The procedure of requiring position
papers in lieu of a hearing in administrative cases is expressly
allowed with respect to appointive officials but not to those elected.
An elective official, elected by popular vote, is directly responsible to
the community that elected him. The official has a definite term of
office fixed by law which is relatively of short duration. Suspension
and removal from office definitely affects and shortens this term of
431 Joson v. Executive Secretary, G.R. No. 131255, May 20,1998.

432
433
434
office. When an elective official is suspended or removed, the people

are deprived of the services of the man they had elected. Implicit in
the right of suffrage is that the people are entitled to the services of
the elective official of their choice. Suspension and removal are thus
imposed only after the elective official is accorded his rights and the
evidence against him strongly dictates their imposition.45
Condonation
In the case of Aguinaldo v. Santos,436 the Supreme Court ruled
that a public official cannot be removed for administrative
misconduct committed during a prior term, since his re-election to
office operates as a condonation of the officer's previous misconduct
to the extent of cutting off the right to remove him therefor. The
foregoing rule, however, finds no application to criminal cases
pending against petitioner for acts he may have committed during
the failed coup.
It is a fundamental principle of administrative law that
administrative cases are independent from criminal actions for the
same act or omission. The ruling in Aguinaldo v. Santos does not
apply to criminal cases, pending against said public officer. The
dismissal by the Ombudsman of the administrative case based on the
same subject matter as a criminal case does not operate to dismiss the
latter. The basis of administrative liability differs from criminal
liability. The purpose of administrative proceedings is mainly to
protect the public service, based on the time-honored principle that a
public office is a public trust. On the other hand, the purpose of the
437
criminal prosecution is the punishment of crime.
One of the grounds for the dismissal of the administrative
case is reelection to office. Indeed, a reelected local official may not
be held administratively accountable for misconduct committed
during his prior term of office. The rationale for this holding is that
when the electorate put him back into office, it is presumed that it
did so with full knowledge of his life and character, including his
"5 Joson v. Executive Secretary, G.R. No. 131255, May 20,1998.

436G.R. No. 94115, August 21,1992.
437 Valencia v. Sandiganbayan, G.R. No. 141336, June 29,2004.
past misconduct. If,armed with such knowledge, it still reelects him,

then such reelection is considered a condonation of his past
misdeeds. However, the re-election of a public official extinguishes
only the administrative, but not the criminal, liability incurred by
him during his previous term of office There is, thus, no reason for
the Sandiganbayan to quash the Information against petitioners on
the basis solely of the dismissal of the administrative complaint
against them.4
Condonation does not extend to coterminous appointive
officials who were administratively charged along with the reelected
official/appointing authority with infractions allegedly committed
during their preceding term. There are substantial distinctions that
exist between elective officials and appointive officials. The former
occupy their office by virtue of the mandate of the electorate. They
are elected to an office for a definite term and may be removed only
by satisfying stringent conditions. On the other hand, appointive
officials hold their office by virtue of their designation by an
appointing authority. Some appointive officials hold their office in a
permanent capacity and are entitled to security of tenure while
others serve at the pleasure of the appointing authority. In other
words, in the case of reappointed coterminous employees there is no
danger of subverting the sovereign or disenfranchisement of the
electorate. 4 9 As the Court explained:
It is the will of the populace, not the whim of one
person who happens to be the appointing authority,
that could extinguish an administrative liability. Since
petitioners hold appointive positions, they cannot
claim the mandate of the electorate. The people cannot
be charged with the presumption of full knowledge of
the life and character of each and every probable
appointee of the elective official ahead of the latter's
actual reelection.
Moreover, the unwarranted expansion of
the... doctrine would set a dangerous precedent as it
would... provide civil servants, particularly local
government employees, with blanket immunity from
4
38 Valencia v. Sandiganbayan, G.R. No. 141336, June 29,2004.
439 Salumbides, Jr. v. Office of the Ombudsman, G.R. No. 180917, April 23, 2010.
administrative liability that would spawn and breed

abuse in the bureaucracy. 440
The Ombudsman
For purposes of initiating a preliminary investigation before
the Office of the Ombudsman, a complaint "in any form or manner"
is sufficient. 441
Section 12, Article XI of the Constitution states that the
Ombudsman and his Deputies, as protectors of the people, shall act
promptly on "complaints filed in any form or manner against public
officials or employees of Government." In Almonte v. Vasquez, the
Supreme Court held that even unverified and anonymous letters
may suffice to start an investigation. In permitting the filing of
complaints "in any form or manner," the framers of the Constitution
took into account the well-known reticence of the people which keep
them from complaining against official wrongdoings. The Office of
the Ombudsman is different from the other investigatory and
prosecutory agencies of the government because those subject to its
jurisdiction are public officials who, through official pressure and
influence, can quash, delay or dismiss investigations held against
them.442
The power of the Office of the Ombudsman to preventively
suspend an official subject to its administrative investigation is
provided by specific provision of law. The preventive suspension
shall continue until the case is terminated by the Office of the
Ombudsman but not more than six months, without pay, except
when the delay in the disposition of the case by the Office of the
Ombudsman is due to the fault, negligence or petition of the
respondent, in which case the period of such delay shall not be
counted in computing the period of suspension herein provided.443
To justify the preventive suspension of a public official under
Section 24 of Republic Act No. 6770, the evidence of guilt should be
440
Salumbides, Jr. v. Office of the Ombudsman, G.R. No. 180917, April 23,2010.
441
Garcia v. Miro, G.R. No. 148944, February 5,2003.
4 2
" Garcia v. Miro, G.R. No. 148944, February 5,2003.
w3 Garcia v. Mojica, G.R. No. 139043, September 10,1999.
strong, and (a) the charge against the officer or employee should
involve dishonesty, oppression or grave misconduct or neglect in the
performance of duty; (b) the charges should warrant removal from
the service; or (c) the respondent's continued stay in office would
prejudice the case filed against him. The Ombudsman can impose the
6-month preventive suspension to all public officials, whether
elective or appointive, who are under investigation. Upon the other
hand, in imposing the shorter period of sixty (60) days of preventive
suspension prescribed in the Local Government Code of 1991 on an
elective local official (at any time after the issues are joined), it would
be enough that (a) there is reasonable ground to believe that the
respondent has committed the act or acts complained of, (b) the
evidence of culpability is strong, (c) the gravity of the offense so
warrants, or (d) the continuance in office of the respondent could
influence the witnesses or pose a threat to the safety and integrity of
the records and other evidence."4
The law does not require that only the Ombudsman himself
may sign the order of suspension. His deputy may also preventively
suspend an officer of employee. 445
A preventive suspension can be decreed on an official under
investigation after charges are brought and even before the charges
are heard since the same is not in the nature of a penalty, but merely
a preliminary step in an administrative investigation. 446
Section 27 of Republic Act No. 6770 states that all
provisionary orders of the Office of the Ombudsman are
immediately effective and executory; and that any order, directive or
decision of the said Office imposing the penalty of censure or
reprimand or suspension of not more than one month's salary is final
and unappealable. The express mention of the things included
excludes those that are not included. The clear import of these
statements taken together is that all other decisions of the Office of
the Ombudsman which impose penalties that are not enumerated in
the said Section 27 are not final, unappealable and immediately
executory. An appeal timely filed will stay the immediate
implementation of the decision. This finds support in the Rules of
4
4 Hagad v. Gozo-Dadole, G.R. No. 108072, December 12,1995.
445
Castillo-Co v. Barbers, G.R. No. 129952, June 16,1998.
446
Castillo-Co v. Barbers, G.R. No. 129952, June 16,1998.
Procedure issued by the Ombudsman itself which states that "[i]n all
other cases, the decision shall become final after the expiration of ten
(10) days from receipt thereof by the respondent, unless a motion for
reconsideration or petition for certiorari (should now be petition for
review under Rule 43) shall have been filed by him as prescribed in
Section 27 of Republic Act No. 6770."447
The ruling in Lapid is no longer good law. On August 17,
2000, Administrative Order No. 14-A amended Section 7, Rule III of
the Rules of Procedure of the Ombudsman. The rule, as amended,
reads:
Then Administrative Order No. 17 dated September 15, 2003

further amended Section 7 of Rule III. Thus, the section now
provides:
447 Lapid v. Court of Appeals, G.R. No. 142261, June 29,2000.

w See also Office of the Ombudsman v. Court of Appeals, G.R. No. 159395, May 7,
2008, and Buencamino v. Court of Appeals, G.R. No. 175895, April 12,2007.
one month, or a fine equivalent to one' ir

ithe .decision shall be final, 'exec
unappealable. In aU other cases, the deci
appealed to the Court of Appeals...
lAn appeal shall not stop the decision
executory. In case the penalty is sm
removal and the respondent wins: such,
In August 17, 2000, when Administrative Order No. 14-A was

issued, the Ombudsman-imposed penalties in administrative
disciplinary cases were already immediately executory
notwithstanding an appeal timely filed. 449 Filing a motion for
reconsideration does not stay the immediate implementation of the
Ombudsman's order of dismissal, considering that "a decision of the
Office of the Ombudsman in administrative cases shall be executed
as a matter of course." No vested right is violated as the respondent
would be considered under preventive suspension, and entitled to
the salary and emoluments he did not receive in the event that he
wins his eventual appeal.450
The disciplinary power of the Ombudsman is not merely
recommendatory in nature. The Ombudsman has the constitutional
power to directly remove from government service an erring public
official other than a member of Congress and the Judiciary. 45 '
The Courts
It is mandatory for the court to place under preventive
suspension a public officer accused before it. Imposition of
suspension, however, is not automatic or self-operative. A
precondition therefor is the existence of a valid information,
determined at a pre-suspension hearing. Such a hearing is in accord
449
Gupilan-Aguilar v. Office of the Ombudsman, G.R. No. 197307, February 26, 2014.
450 Vifasenor v. Ombudsman, G.R. No. 202303, June 4,2014.
4 1 Commission on Audit v. Hinampas, G.R. Nos. 158672,160410,160605,160627 and
161099, August 7, 2007.
with the spirit of the law, considering the serious and far-reaching
consequences of a suspension of a public official even before his
conviction, and the demands of public interest for speedy
determination of the issues involved in the case. The purpose of the
pre-suspension hearing is basically to determine the validity of the
information and thereby furnish the court with a basis to either
suspend the accused and proceed with the trial on the merits of the
case, or refuse suspension of the latter and dismiss the case, or
correct any part of the proceeding which impairs its validity. The
accused should be given adequate opportunity to challenge the
validity or regularity of the criminal proceedings against him; e.g.,
that he has not been afforded the right to due preliminary
investigation; that he has not been afforded the right to due
preliminary investigation; that the acts imputed to him do not
constitute a specific crime (under Republic Act No. 3019 or the
Revised Penal Code) warranting his mandatory suspension from
office under Section 13 of the Act; or that the information is subject to
quashal on any of the grounds set out in Rule 117 of the Rules of
Court. But once a proper determination of the validity of the
Information has been made, it becomes the ministerial duty of the
court to forthwith issue the order of preventive suspension of the
accused official on the pretext that the order denying the latter's
motion to quash is pending review before the appellate courts. 452
The preventive suspension of accused public officials under
Section 13 of Republic Act No. 3019 is mandatory while the criminal
prosecution is pending in court.4 3 The Supreme Court, however, has
been inconsistent with the appropriate length of time for the
suspension.
In one case, the Court ruled that preventive suspension
should not extend beyond 60 days as provided for in Section 63 (b) of
the Local Government Code.4 4
More recent cases lay down the rule that the preventive
suspension may not be of indefinite duration or for an unreasonable
length of time. The Court has ruled that preventive suspension may
452
Segovia v. Sandiganbayan, G.R. No. 124067, March 27,1998.
40 Bunye v. Escareal, G.RI No. 110216, September 10,1993.
454Rios v. Sandiganbayan, G.R. No. 129913, September 26,1997.
not exceed the maximum period of 90 days in consonance with

Presidential Decree No. 807 (the Civil Service Decree), now Section
52 of the Administrative Code of 1987.4m This rule has been applied
in cases before the Sandiganbayan 5 and the regular courts. 45 7
The 90-day rule does not apply when the defendant is
charged with murder under the Revised Penal Code. In that case his
case falls squarely under Section 47 of Republic Act No. 6975
(otherwise known as Department of Interior and Local Government
Act of 1990) which categorically states that his suspension shall last
until the case is terminated. The succeeding sentence of the same
section requires the case to be subjected to continuous trial which
shall be terminated within 90 days from arraignment of the accused.
Nowhere in the law does it say that after the lapse of the 90-day
period for trial, the preventive suspension should be lifted. The 90
days duration applies to the trial of the case not to the suspension. 4-%
Section 63 does not govern preventive suspensions imposed
by the Ombudsman. The Ombudsman's power of preventive
suspension is governed by Republic Act No. 6770, 459 or "The
Ombudsman Act of 1989," which provides that it should not exceed
6 months.460
455 Rios v. Sandiganbayan, G.R. No. 129913, September 26,1997.

4
m Layus v. Sandiganbayan, G.R. No. 1134272, December 8,1999.
457 Juan v. Peolple, G.R. No. 132378, January 18, 2000.
458
Himagan v. People, G.R. No. 113811, October 7,1994.
459 The provision reads:
Section 24. Preventive Suspension. - The Ombudsman or his
Deputy may preventively suspend any officer or employee under
his authority pending an investigation, if in his judgment the
evidence of guilt is strong, and (a) the charge against such officer
or employee involves dishonesty, oppression or grave misconduct
or neglect in the performance of duty; (b) the charges would
warrant removal from the service; or (c) the respondent's
continued stay in office may prejudice the case filed against him.
The preventive suspension shall continue until the case is
terminated by the Office of the Ombudsman but not more than six
(6) months, without pay, except when the delay in the disposition
of the case by the Office of the Ombudsman is due to the fault,
negligence or petition of the respondent, in which case the period
of such delay shall not be counted in computing the period of
suspension herein provided.
4 0
6 Miranda v. Sandiganbayan, G.R. No. 154098, July 27, 2005.
In Juan v. People of the Philippines,4 1 the Court held that the

suspension of a public officer is mandatory, notwithstanding the
absence of pre-suspension hearing. The Court said:
While there was no pre-suspension hearing held to
determine the validity of the Informations that had
been filed against petitioners, the numerous pleadings
filed for and against them have achieved the goal of
this procedure. The right to due process is satisfied
not just by an oral hearing but by the filing and the
consideration by the court of the parties' pleadings,
memoranda and other position papers.
It is the official's grade that determines his or her salary, not
the other way around. To determine whether the official is within the
exclusive jurisdiction of the Sandiganbayan, therefore, reference
should be made to Republic Act No. 6758 and the Index of
Occupational Services, Position Titles and Salary Grades. An
official's grade is not a matter of proof, but a matter of law which the
court must take judicial notice. 462
Republic Act No. 7975, as amended by Republic Act No. 8249,
provides that it is only in cases where "none of the accused are
occupying positions corresponding to salary grade '27' or higher"
that "exclusive original jurisdiction shall be vested in the proper
regional trial court, metropolitan trial court, municipal trial court,
and municipal circuit court, as the case may be, pursuant to their
respective jurisdictions as provided in Batas Pambansa Big. 129, as
amended." 463
Noticeably, the vice-mayors, members of the sangguniang
panlungsod and prosecutors, without any distinction or
qualification, were specifically included in Republic Act No. 7975 as
falling within the original jurisdiction of the Sandiganbayan.
Moreover, the consuls, city department heads, provincial department
heads and members of the sangguniang panlalawigan, albeit
classified as having salary grades 26 or lower, were also specifically
included within the Sandiganbayan's original jurisdiction. As
461 G.R No. 132378, January 18,2000.

462
Uorente, Jr., v. Sandiganbayan G.R. Nos. 122297-98, January 19, 2000.
40Esquivel v. Ombudsman, G.R. No. 137237, September 17,2002.
correctly posited by the respondents, Congress is presumed to have

been aware of, and had taken into account, these officials' respective
salary grades when it deliberated upon the amendments to the
Sandiganbayan jurisdiction. Nonetheless, Congress passed into law
Republic Act No. 7975, specifically including them within the
original jurisdiction of the Sandiganbayan. By doing so, it obviously
intended cases mentioned in Section 4 a. of Presidential Decree No.
1606, as amended by Section 2 of Republic Act No. 7975, when
committed by the officials enumerated in (1) (a) to (g) thereof,
regardless of their salary grades, to be tried by the Sandiganbayan. 64
The Court has laid down the principle that for an offense to
be committed in relation to the office, the relation between the crime
and the office must be direct and not accidental, in that in the legal
sense, the offense cannot exist without the office. An exception is that
although public office is not an element of an offense charged, as
long as the offense charged in the information is intimately
connected with the office and is alleged to have been perpetrated
while the accused was in the performance, though improper or
irregular, of his official functions, there being no personal motive to
commit the crime and had the accused would not have committed it
had he not held the aforesaid office, the accused is held to have been
indicted for "an offense committed in relation" to his office. 465
Chapter V
Recall
SECTION 69. By Whom Exercised. - The power of recall
for loss of confidence shall be exercised by the
registered voters of a local government unit to which
the local elective official subject to such recall belongs.
Recall is a mode of removal of a public officer by the people

before the end of his term of office. It is an incident of their sovereign
power and in the absence of constitutional restraint, the power is
44 Inding v. Sandiganbayan, G.R. No. 143047, July 14, 2004.

"5 Rodriguez v. Sandiganbayan, G.R. No. 141710, March 3,2004.
implied in all governmental operations. 466 Such power has been held
to be indispensable for the proper administration of public affairs
and it is described as a fundamental right of the people in a
representative democracy.
Recall was introduced in 1973 Constitution 467 and pursuant to
such mandate, the Batasang Pambansa enacted Batas Pambansa Blg.
337. Section 54 of its Chapter 3 provided that "the power of recall
shall be exercised by the registered voters of the unit to which the
local elective official subject to such recall belongs."
There was no case where the recall provision of the old Local
Government Code was successfully used. The Supreme Court,
however, has likened the removal of Ferdinand Marcos to the power
of recall.4 According to the Supreme Court, the successful use of
people power to remove public officials in 1986 led to the inclusion of
"people power" in the 1987 Constitution.469
w Garcia v. Commission on Elections, G.R. No. 111511, October 5,1993.

47 CONSr. (1973), Art XI, § 2.
SEC. 2. The Batasang Pambansa shall enact a local government
code which may not thereafter be amended except by a majority
vote of all its Members, defining a more responsive and
accountable local government structure with an effective system of
recall, allocating among the different local government units their
powers, responsibilities, and resources, and providing for the
qualifications, election and removal, term, salaries, powers,
functions, and duties of local officials, and all other matters
relating to the organization and operation of the local units.
However, any change in the existing form of local government
shall not take effect until ratified by a majority of the votes cast in
a plebiscite called for the purpose.
w Garcia v. Commission on Elections, G.R. No. 111230, September 30,1994.
4
0 The Court cited Article XIII of the Constitution which expressly recognized the
Role and Rights of People's Organizations, thus:
Sec. 15. The State shall respect the role of independent people's
organizations to enable the people to pursue and protect, within
the democratic framework, their legitimate and collective interests
and aspirations through peaceful and lawful means.
People's organizations are bona fide associations of citizens with
demonstrated capacity to promote the public interest and with
identifiable leadership, membership, and structure.
Sec. 16. The right of the people and their organizations to
effective and reasonable participation at all levels of social,
This is in sharp contrast with the experience under the Local

Government Code of 1991 where the power of recall has been used
many times.
SECTION 70. Initiation of the Recall Process. - a. The

Recall of any elective provincial, city, municipal or
barangay official shall be commenced by a petition of
a registered voter in the local government unit
concerned and supported by the registered voters in
the local government unit concerned during the
election in which the local official sought to be recalled
was elected subject to the following percentage
requirements:
1. At least twenty-five percent (25%) in
the case of local government units with
a voting population of not more than
twenty thousand (20,000);
2. At least twenty percent (20%) in the
case of local government units with a
voting population of at least twenty
thousand (20,000) but not more than
seventy-five thousand (75,000):
Provided, That in no case shall the
required petitioners be less than five
thousand (5,000);
3. At least fifteen percent (15%) in the
case of local government nits with a
voting population of at least seventy-
five thousand (75,000) but not more
than three hundred thousand (300,000):
Provided, however, That in no case
shall the required number of
petitioners be less than fifteen
thousand (15,000); and
political, and economic decision-making shall not be abridged.

The State shall, by laws, facilitate the establishment of adequate
consultation mechanisms.
4. At least ten percent (10%) in the case

of local government units with a voting
population of over three hundred
thousand (300,000): Provided, however,
That in no case shall the required
petitioners be less than forty-five
thousand (45,000).
b. The process of recall shall be effected in accordance
with the following procedure:
1. A written petition for recall duly
signed by the representatives of the
petitioners before the election registrar
or his representative, shall be filed with
the Comelec through its office in the
2. The petition to recall shall contain
the following:
a. The names and
addresses of the
petitioners written in
legible form and their
signatures;
b. The barangay, city or
municipality, local
legislative district and
the province to which
the petitioners belong;
c. The name of the
official sought to be
recalled; and
d. A brief narration of
the reasons and
justifications therefore.
3. The Comelec shall, within fifteen (15)
days from the filing of the petition,
certify to the sufficiency of the required

number of signatures. Failure to obtain
the required number of signatures
automatically nullifies the petition;
4. If the petition is found to be
sufficient in form, the Comelec or its
duly authorized representative shall,
within three (3) days from the issuance
of the certification, provide the official
sought to be recalled a copy of the
petition, cause its publication a national
newspaper of general circulation and a
newspaper of general circulation in the
locality, once a week for three (3)
consecutive weeks at the expense of the
petitioners and at the same time post
copies thereof in public and
conspicuous places for a period of not
less than ten (10) days nor more than
twenty (20) days, for the purpose of
allowing interested parties to examine
and verify the validity of the petition
and the authenticity of the signatures
contained therein.
5. The Comelec or its duly authorized
representatives shall, upon issuance of
certification, proceed independently
with the verification and authentication
of the signatures of the petitioners and
registered voters contained therein.
Representatives of the petitioners and
the official sought to be recalled shall
be duly notified and shall have the
right to participate therein as mere
observers. The filing of any challenge
or protest shall be allowed within the
period provided in the immediately
preceding paragraph and shall be ruled
upon with finality within fifteen (15)
days from the date of filing of such

protest or challenge;
6. Upon the lapse of the aforesaid
period, the Comelec or its duly
authorized representative shall
announce the acceptance of candidates
to the positive and thereafter prepare
the list of candidates which shall
include the name of the official sought
to be recalled.470
Prior to the amendment of Section 70, the Supreme Court

explained that only a petition of at least 25% of the total number of
registered voters may validly initiate recall proceedings. The Court
pointed out that the law does not state that the petition must be
signed by at least 25% of the registered voters but that it must be
filed by at least 25% of the registered voters. That is, the petition
must be filed, not by one person only, but by at least 25% of the total
number of registered voters. This is logical because the signing of the
petition is required to be undertaken before the election registrar or
his representative, and in the presence of a representative of the
official sought to be recalled, and in a public place in the
municipality. Thus, while the initiatory recall petition may not yet
contain the signatures of at least 25% of the total number of
registered voters, the petition must contain the names of at least 25%
of the total number of registered voters in whose behalf only one
person may sign the petition in the meantime. 471 This interpretation
may no longer be good law. Section 70 (b) (2) provides that the
petition to recall shall contain "[t]he names and addresses of the
petitioners written in legible form and their signatures."
Section 70 was amended in 2004 to delete recall through the
preparatory recall assembly (PRA) as a mode of recall. Before such
amendment, Congress provided for this alternative mode of
initiating the recall: (a) to diminish the difficulty of initiating recall
47 As amended by Republic Act No. 9244 (2004).

M See Angobung v. Commission on Elections, G.R. No. 126576, March 5,1997.
thru the direct action of the people; and (b) to cut down on its
expenses.472 Proponents of this innovation argued that initiation of
the recall process by direct action of the people was too cumbersome,
too expensive and almost impossible to implement.
SECTION 71. Election on Recall. - Upon the filing of a

valid petition for recall with the appropriate local
office of the Comelec, the Comelec or its duly
authorized representative shall set the date of the
election or recall, which shall not be later than thirty
(30) days upon the completion of the procedure
outlined in the preceding article, in the case of the
barangay, city or municipal officials, and forty-five
(45) days in the case of provincial officials. The
officials sought to be recalled shall automatically be
considered as duly registered candidate or candidates
to the pertinent positions and, like other candidates,
shall be entitled to be voted upon.473
SECTION 72. Effectivity of Recall. - The recall of an
elective local official shall be effective only upon the
election and proclamation of a successor in the person
of the candidate receiving the highest number of votes
cast during the election on recall. Should the official
sought to be recalled receive the highest number of
votes, confidence in him is thereby affirmed, and he
shall continue in office.
SECTION 73. Prohibition from Resignation. - The
elective local official sought to be recalled shall not be
allowed to resign while the recall process is in
progress.
SECTION 74. Limitations on Recall. - (a) Any elective
local official may be the subject of a recall election only
once during his term of office for loss of confidence.
472 Garcia v. Commission on Elections, G.R. No. 111230, September 30,1994.

4 3
As amended by Republic Act No. 9244 (2004).
(b) No recall shall take place within one (1) year from
the date of the official's assumption to office or one (1)
year immediately preceding a regular local election.
"Regular local election" refers to an election where the office

held by the local elective official sought to be recalled will be
contested and be filled by the electorate. 474 Hence, a recall for the
punong barangay is not barred when a sangguniang kabataan
election is scheduled within one year. 4 This ruling was further
upheld in the subsequent case of Angobung v. COMELEC476 where the
Court held that there can be no application of the one-year bar when
the same is being invoked by a mayor in view of the approaching
Barangay Elections.
The law prohibits a recall election during the last year of the
term of a local official because of the proximity of the next regular
election for the office of the local elective official concerned. The
electorate could choose the official's replacement in the said election
who certainly has a longer tenure in office than a successor elected
through a recall election.477
"Regular Local Election" refers simply to the date of such
election and it does not include the election period for that same.478
The Court has previously declared that the term "recall" in
paragraph (b) refers to the recall election and not to the preliminary
proceedings to initiate recall for three reasons:
1. Because Section 74 speaks of limitations on "recall" which,
according to Section 69, is a power which shall be exercised
by the registered voters of a local government unit. Since
the voters do not exercise such right except in an election,
it is clear that the initiation of recall proceedings is not
prohibited within the one-year period provided in
paragraph (bo);
474 Paras v. Commission on Elections, G.R. No. 123169, November 4,1996.

M'Paras v. Commission on Elections, G.R. No. 123169, November 4,1996.
476 G.R. No. 126576, March 5,1997.
4 77
Paras v. Commission on Elections, G.R. No. 123169, November 4,1996.
478
Claudio v. Commission on Elections, G.R. Nos. 140560 and 140714, May 4,2000.
2. Because the purpose of the first limitation in paragraph (b)

is to provide voters a sufficient basis for judging an elective
local official, and final judging is not done until the day of
the election; and
3. Because to construe the limitation in paragraph (b) as
including the initiation of recall proceedings would unduly
curtail freedom of speech and of assembly guaranteed in
the Constitution. 49
SECTION 75. Expenses Incident to Recall Elections. - All

expenses incident to recall elections shall be borne by
the COMELEC. For this purpose, there shall be
included in the annual General Appropriations Act a
contingency fund at the disposal of the COMELEC for
the conduct of recall elections.
Upon the effectivity of Republic Act No. 9244 (2004), all

pending petitions for recall initiated through the Preparatory Recall
Assembly were considered dismissed.
Title III
HUMAN RESOURCES DEVELOPMENT
SECTION 76. Organizational Structure and Staffing
Pattern. - Every local government unit shall design
and implement its own organizational structure and
staffing pattern taking into consideration its service
requirements and financial capability, subject to the
minimum standards and guidelines prescribed by the
Civil Service Commission.
Local autonomy grants local governments the power to

streamline and reorganize. This power is inferred from Section 76 on
organizational structure and staffing pattern. Designing and
479 Claudio v. Commission on Elections, G.R. Nos. 140560 and 140714, May 4,2000.
+(,121/,1(
Citation:
Tue Apr 17 11:19:04 2018



2. Because the purpose of the first limitation in paragraph (b)

is to provide voters a sufficient basis for judging an elective
local official, and final judging is not done until the day of
the election; and
3. Because to construe the limitation in paragraph (b) as
including the initiation of recall proceedings would unduly
curtail freedom of speech and of assembly guaranteed in
the Constitution. 49
SECTION 75. Expenses Incident to Recall Elections. - All

expenses incident to recall elections shall be borne by
the COMELEC. For this purpose, there shall be
included in the annual General Appropriations Act a
contingency fund at the disposal of the COMELEC for
the conduct of recall elections.
Upon the effectivity of Republic Act No. 9244 (2004), all

pending petitions for recall initiated through the Preparatory Recall
Assembly were considered dismissed.
Title III
HUMAN RESOURCES DEVELOPMENT
SECTION 76. Organizational Structure and Staffing
Pattern. - Every local government unit shall design
and implement its own organizational structure and
staffing pattern taking into consideration its service
requirements and financial capability, subject to the
minimum standards and guidelines prescribed by the
Civil Service Commission.
Local autonomy grants local governments the power to

streamline and reorganize. This power is inferred from Section 76 on
organizational structure and staffing pattern. Designing and
479 Claudio v. Commission on Elections, G.R. Nos. 140560 and 140714, May 4,2000.
implementing a local government unit's own "organizational

structure and staffing pattern" also implies the power to revise and
reorganize. Without such power, local governments will lose the
ability to adjust to the needs of its constituents. Effective and efficient
governmental services especially at the local government level
require rational and deliberate changes planned and executed in
good faith from time to time.4 0
Local government units should be given leeway to entice
their employees to avail of severance benefits that the local
government can afford. However, local government units may not
provide such when it amounts to a supplementary retirement benefit
scheme. M An Ordinance providing for an "early retirement
incentive" where only those who have rendered service to the city
government for at least 15 years may apply falls under the definition
of a retirement benefit and cannot be sanctioned under the law. It is a
form of reward for an employee's loyalty and service to the city
government, and it is intended to help the employee enjoy the
remaining years of his or her life by lessening his or her financial
worries. 482
SECTION 77. Responsibility for Human Resources and

Development. - The chief executive of every local
government unit shall be responsible for human
resources and development in his unit and shall take
all personnel actions in accordance with the
Constitutional provisions on civil service, pertinent
laws, and rules and regulations thereon, including
such policies, guidelines and standards as the Civil
Service Commission may establish: Provided, That the
local chief executive may employ emergency or casual
0
City of General Santos v. Commission on Audit, G.R. No. 199439, April 22, 2014.
M In Conte v. Commission on Audit (G.R. No. 116422, November 4, 1996), the
Supreme Court held that Republic Act No. 4968 (as amended) bars the creation of
any insurance or retirement plan other than the GSIS for government officers and
employees. This is intended to prevent the proliferation of such plans and would be
tantamount to permitting every other government office or agency to put up its own
supplementary retirement benefit plan under the guise of such financial assistance.
See City of General Santos v. Commission on Audit, G.R. No. 199439, April 22,2014.
2 City of General Santos v. Commission on Audit, G.R. No. 199439, April 22,2014.
employees or laborers paid on a daily wage or

piecework basis and hired through job orders for local
projects authorized by the sanggunian concerned,
without need of approval or attestation by the Civil
Service Commission: Provided, further, That the
period of employment of emergency or casual laborers
as provided in this Section shall not exceed six (6)
months.
The Joint Commission on Local Government
Personnel Administration organized pursuant to
Presidential Decree Numbered Eleven Hundred
thirty-six (P.D. No. 1136) is hereby abolished and its
personnel, records, equipment and other assets
transferred to the appropriate office in the Civil
Service Commission.
SECTION 78. Civil Service Law, Rules and Regulations,
and Other Related Issuances. - All matters pertinent to
human resources and development in local
government units shall be governed by the civil
service law and such rules and regulations and other
issuances promulgated pursuant thereto, unless
otherwise specified in this Code.
SECTION 79. Limitation to Appointments. - No person
shall be appointed in the career service of the local
government if he is related within the fourth civil
degree of consanguinity or affinity to the appointing
or recommending authority.
SECTION 80. Public Notice of Vacancy; Personnel
Selection Board. -
(a) Whenever a local executive decides to fill a vacant
career position, there shall be posted notices of the
vacancy in at least three (3) conspicuous public places
in the local government unit concerned for a period of
not less than fifteen (15) days.
(b) There shall be established in every province, city or
municipality a personnel selection board to assist the
local chief executive in the judicious and objective
selection or personnel for employment as well as for

promotion, and in the formulation of such policies as
would contribute.to employee welfare.
(c) The personnel selection board shall be headed by
the local chief executive, and its members shall be
determined by resolution of the sanggunian
concerned. A representative of the Civil Service
Commission, if any, and the personnel officer of the
local government unit concerned shall be ex officio
members of the board.
SECTION 81. Compensation of Local Officials and
Employees. - The compensation of local officials and
personnel shall be determined by the sanggunian
concerned: Provided, That the increase in
compensation of elective local officials shall take effect
only after the terms of office of those approving such
increase shall have expired: Provided, further, That
the increase in compensation of the appointive
officials and employees shall take effect as provided in
the ordinance authorizing such increase: Provided,
however, That said increases shall not exceed the
limitations on budgetary allocations for personal
services provided under Title Five, Book 1Iof this
Code: Provided, finally, That such compensation may
be based upon the pertinent provisions of Republic
Act Numbered Sixty-seven fifty-eight (R.A. No 6758),
otherwise known as the "Compensation and Position
Classification Act of 1989".
The punong barangay, the sangguniang barangay
member, the sangguniang kabataan chairman, the
barangay treasurer, and the barangay secretary shall
be entitled to such compensation, allowances,
emoluments, and such other privileges as provided
under Title One Book Ill of this Code.
Elective local officials shall be entitled to the same
leave privileges as those enjoyed by appointive local
officials, including the cumulation and commutation

thereof.
While Section 458 of the Code defines the power, duties,

functions and compensation of the sangguniang panlungsod, that
power is not absolute. Limitations can be found in Section 81.
Additionally, the implementing rules of the Code reproduced
the Constitutional provision that "no elective or appointive local
official or employee shall receive additional, double, or indirect
compensation, unless specifically authorized by law, nor accept
without the consent of the Congress, any present, emoluments, office,
or title of any kind from any foreign government." Section 325 of the
law limits the total appropriations for personal services of a local
government unit to not more than 45% of its total annual income
from regular sources realized in the next preceding fiscal year.8
A fifth-class municipality is not absolutely prohibited from
adopting a salary schedule equivalent to that of a special city or a
first-class province. Local Budget Circular No. 64 dated January 1,
1997, in conjunction with paragraph 11 of Local Budget No. 56,
allows local governments lower than special cities and first-class
provinces and cities to adopt a salary scheme for special cities and
first-class provinces. The municipality should, however, comply with
the following requirements:
1. the local government is financially capable;
2. the salary schedule to be adopted shall be uniformly
applied to all positions in the in the local government
concerned;
3. the salary schedule for the special and highly urbanized
cities and first class provinces and cities shall not be
higher than that being adopted by the national
government;
4. in implementing a new and higher salary schedule, the
salary grade allocation of positions and the salary steps of
personnel shall be retained;
5. the adoption of the higher salary schedule shall be subject
to the budgetary and general limitations on personal
4
3See Veloso v. Commission on Audit, G.R. No. 193677, September 6,2011.
services expenditures mandated under Sections 324 and

325 of Republic Act No. 7160;
6. in the case of component cities and municipalities, the
salary schedule to be adopted shall not be higher than that
of the province or city in the case of some municipalities,
where they belong and
7. the adoption of a higher salary, schedule shall not in any
manner alter the existing classification of the local
government concerned. 4 4
SECTION 82. Resignation of Elective Local Officials. - (a)
Resignations by elective local officials shall be deemed
effective only upon acceptance by the following
authorities:
(1) The President, in the case of
governors, vice-governors, and mayors
and vice-mayors of highly urbanized
cities and independent component
cities;
(2) The governor, in the case of
municipal mayors, municipal vice-
mayors, city mayors and city vice-
mayors of component cities;
(3) The sanggunian concerned, in the
case of sanggunian members; and
(4) The city or municipal mayor, in the
case of barangay officials.
(b) Copies of the resignation letters of elective local
officials, together with the action taken by the
aforesaid authorities, shall be furnished the
Department of the Interior and Local Government.
(c) The resignation shall be deemed accepted if not
acted upon by the authority concerned within fifteen
(15) days from receipt thereof.
4
m Alechav. Pasion, G.R. No. 164506, January 19,2010.
(d) Irrevocable resignations by sanggunian members

shall be deemed accepted upon presentation before an
open session of the sanggunian concerned and duly
entered in its records: Provided, however, That this
subsection does not apply to sanggunian members
who are subject to recall elections or to cases where
existing laws prescribed the manner of acting upon
such resignations.
Although a resignation is not complete without an acceptance

thereof by the proper authority, an office may still be deemed
relinquished through voluntary abandonment which needs no
acceptance. 48
Abandonment of an office has been defined as the voluntary
relinquishment of an office by the holder, with the intention of
terminating his possession and control thereof. Indeed, abandonment
of office is a species of resignation; while resignation in general is a
formal relinquishment, abandonment is a voluntary relinquishment
through nonuser. Nonuser refers to a neglect to use a privilege or a
right (Cyclopedic Law Dictionary, 3rd ed.) or to exercise an easement
or an office (Black's Law Dictionary, 6th ed).486
Clear intention to abandon should be manifested by the
officer concerned. The intention to abandon office may be express or
inferred from his conduct. Thus, the failure to perform the duties
pertaining to the office must be with the officer's actual or imputed
intention to abandon and relinquish the office. Abandonment of an
office is not wholly a matter of intention; it results from a complete
abandonment of duties of such a continuance that the law will infer a
relinquishment. Therefore, there are two essential elements of
abandonment first, an intention to abandon and, second, an overt or
"external" act by which the intention is carried into effect.487
48
Sangguniang Bayan of San Andres, Catanduanes v. Court of Appeals, G.R. No.
118883, January 16,1998.
486
Sangguniang Bayan of San Andres, Catanduanes v. Court of Appeals, G.R. No.
118883, January 16, 1998.
07 Sangguniang Bayan of San Andres, Catanduanes v. Court of Appeals, G.R. No.
118883, January 16,1998.
SECTION 83. Grievance Procedure. - In every local

government unit, the local chief executive shall
establish a procedure to inquire into, act upon, resolve
or settle complaints and grievances presented by local
government employees.
SECTION 84. Administrative Discipline. - Investigation
and adjudication of administrative complaints against
appointive local officials and employees as well as
their suspension and removal shall be in accordance
with the civil service law and rules and other
pertinent laws. The results of such administrative
investigations shall be reported to the Civil Service
Commission.
SECTION 85. Preventive Suspension of Appointive Local
Officials and Employees. - (a) The local chief executives
may preventively suspend for a period not exceeding
sixty (60) days and subordinate official or employee
under his authority pending investigation if the
charge against such official or employee involves
dishonesty, oppression or grave misconduct or neglect
in the performance of duty, or if there is reason to
believe that the respondent is guilty of the charges
which would warrant his removal from the service.
(b) Upon expiration of the preventive suspension, the
suspended official or employee shall be automatically
reinstated in office without prejudice to the
continuation of the administrative proceedings against
him until its termination. If the delay in the
proceedings of the case is due to the fault, neglect or
request of the respondent, the time of the delay shall
not be counted in computing the period of suspension
herein provided.
SECTION 86. AdministrativeInvestigation. - In any local
government unit, administrative investigation may be
conducted by a person or a committee duly
authorized by the local chief executive. Said person or
committee shall conduct hearings on the cases brought
against appointive local officials and employees and

submit their findings and recommendations to the
local chief executive concerned within fifteen (15) days
from the conclusion of the hearings. The
administrative cases herein mentioned shall be
decided within ninety (90) days from the time the
respondent is formally notified of the charges.
SECTION 87. Disciplinary Jurisdiction. - Except as
otherwise provided by law, the local chief executive
may impose the penalty of removal from service,
demotion in rank, suspension for not more than one
(1) year without pay, fine in an amount not exceeding
six (6) months salary, or reprimand and otherwise
discipline subordinate officials and employees under
his jurisdiction. If the penalty imposed is suspension
without pay for not more than thirty (30) days, his
decision shall be final. If the penalty imposed is
heavier than suspension of thirty (30) days, the
decision shall be appealable to the Civil Service
Commission, which shall decide the appeal within
thirty (30) days from receipt thereof.
SECTION 88. Execution Pending Appeal. - An appeal
shall not prevent the execution of a decision of
removal or suspension of a respondent-appellant. In
case the respondent-appellant is exonerated, he shall
be reinstated to his position with all the rights and
privileges appurtenant thereto from the time he had
been deprived thereof.
SECTION 89. ProhibitedBusiness and Pecuniary Interest.
- (a) It shall be unlawful for any local government
official or employee, directly or indirectly, to:
(1) Engage in any business transaction
with the local government unit in
which he is an official or employee or
over which he has the power of
supervision, or with any of its
authorized boards, officials, agents, or
attorneys, whereby money is to be
paid, or property or any other thing of

value is to be transferred, directly or
indirectly, out of the resources of the
local government unit to such person
or firm;
(2) Hold such interests in any cockpit
or other games licensed by a local
government unit;
(3) Purchase any real estate or other
property forfeited in favor of such local
government unit for unpaid taxes or
assessment, or by virtue of a legal
process at the instance of the said local
government unitm
(4) Be a surety for any person
contracting or doing business with the
local government unit for which a
surety is required; and
(5) Possess or use any public property
of the local government unit for private
purposes.
(b) All other prohibitions governing the conduct of
national public officers relating to prohibited business
and pecuniary interest so provided for under Republic
Act Numbered Sixty-seven thirteen (R.A. No. 6713)
otherwise known as the "Code of Conduct and Ethical
Standards for Public Officials and Employees" and
other laws shall also be applicable to local government
officials and employees.
4
0 In Spouses Plaza v. Lustiva (G.R. No. 172909, March 5, 2014), the Supreme Court
affirmed a Court of Appeals decision holding that a local government employee is

disqualified to bid under Section 89. Since ownership never transferred to the
employee Virginia Tuazon, the Plazas could not have redeemed the property from
her.
The penalty for violating this provision is found in Section

514 of the Local Government Code which provides that
SECTION 514. Engaging in Prohibited Business

Transactions or Possessing Illegal Pecuniary Interest. -
Any local official and any person or persons dealing
with him who violate the prohibitions provided in
Section 89 of Book I hereof, shall be punished with
imprisonment for six (6) months and one (1) day to six
(6) years, or a fine of not less than Three thousand
pesos (P3,000.00) nor more than Ten thousand pesos
(P10,000.00), or both such imprisonment and fine, at
the discretion of the court.
SECTION 90. Practiceof Profession. - (a) All governors,

city and municipal mayors are prohibited from
practicing their profession or engaging in any
occupation other than the exercise of their functions as
local chief executives.
(b) Sanggunian members may practice their
professions, engage in any occupation, or teach in
schools except during session hours: Provided, That
sanggunian members who are also members of the
Bar shall not:
(1) Appear as counsel before any court in any
civil case wherein a local government unit or
any office, agency, or instrumentality of the
government is the adverse party;
(2) Appear as counsel in any criminal case
wherein an officer or employee of the national
or local government is accused of an offense
committed in relation to his office.
(3) Collect any fee for their appearance in
administrative proceedings involving the local
government unit of which he is an official; and
(4) Use property and personnel of the

government except when the sanggunian
member concerned is defending the interest of
the government.
(5) Doctors of medicine may practice their
profession even during official hours of work
only on occasions of emergency: Provided,
That the officials concerned do not derive
monetary compensation therefrom.
This is a special provision that applies specifically to the

practice of profession by elective local officials. As a special law with
a definite scope, that is, the practice of profession by elective local
officials, it constitutes an exception to Section 7 (b) (2) of Republic Act
No. 6713, the general law on engaging in the private practice of
profession by public officials and employees.489
In Social Justice Society v. Lina, 490 Social Justice Society, a
registered political party, filed a petition for declaratory relief against
the then Secretary of the Department of Interior and Local
Government, respondent Jose D. Lina, praying for the proper
construction of Section 90 of Republic Act No. 7160. Based on the
said provision, specifically paragraph (a) thereof, petitioner posited
that actors who were elected as governors, city and municipal
mayors were disallowed by law to appear in movies and television
programs as one of the characters therein, for this would give them
undue advantage over their political opponents, and would
considerably reduce the time that they must devote to their
constituents.
The Court, however, dismissed the petition for declaratory
relief for failure to comply with the requisites imposed by law. For
the action to prosper, it must be shown that (1) there is a justiciable
controversy; (2) the controversy is between persons whose interests
are adverse; (3) the party seeking the relief has a legal interest in the
controversy; and (4) the issue is ripe for judicial determination. In the
489
Catu v. Rellosa, A.C. No. 5738, February 19,2008.
49o G.R. No. 160031, December 18, 2008.
petition filed with the trial court, the Supreme Court declared that
petitioner failed to allege the ultimate facts which satisfy these
requisites. Moreover, as admitted by the petitioners, it was proven
that the provision, the interpretation of which is being sought, has
already been breached by the respondents. Declaratory relief cannot
thus be availed of.
Under Republic Act No. 7160, elective local officials of
provinces, cities, municipalities and barangays are the following: the
governor, the vice-governor and members of the sangguniang
panlalawigan for provinces; the city mayor, the city vice-mayor and
the members of the sangguniang panlungsod for cities; the municipal
mayor, the municipal vice-mayor and the members of the
sangguniang bayan for municipalities and the punong barangay, the
members of the sangguniang barangay and the members of the
sangguniang kabataan for barangays. 491
Of these elective local officials, governors, city mayors and
municipal mayors are prohibited from practicing their profession or
engaging in any occupation other than the exercise of their functions
as local chief executives. This is because they are required to render
full time service. They should therefore devote all their time and
attention to the performance of their official duties.
On the other hand, members of the sangguniang
panlalawigan, sangguniang panlungsod or sangguniang bayan may
practice their professions, engage in any occupation, or teach in
schools except during session hours. In other words, they may
practice their professions, engage in any occupation, or teach in
schools outside their session hours. Unlike governors, city mayors
and municipal mayors, members of the sangguniang panlalawigan,
sangguniang panlungsod or sangguniang bayan are required to hold
regular sessions only at least once a week. Since the law itself grants
them the authority to practice their professions, engage in any
occupation or teach in schools outside session hours, there is no
longer any need for them to secure prior permission or authorization
from any other person or office for any of these purposes.
While certain local elective officials (like governors, mayors,
provincial board members and councilors) are expressly subjected to
4 1 Social Justice Society v. Lina, G.R. No. 160031, December 18, 2008.
a total or partial proscription to practice their profession or to engage

in any occupation, no such interdiction is made on the punong
barangay and the members of the sangguniang barangay. Since they
are excluded from any prohibition, the presumption is that they are
allowed to practice their profession. And this stands to reason
because they are not mandated to serve full time. In fact, the
sangguniang barangay is supposed to hold regular sessions only
twice a month.
Thus, in Catu v. Rallosa,492 the Court ruled that a punong
barangay was not forbidden to practice his profession. However, the
Court emphasized that he should have procured prior permission or
authorization from the head of his Department, as required by civil
service regulations.
The Supreme Court in Javellana v. DILG4 3 rejected the claim
that Section 90 of the Local Government Code of 1991 and DLG
Memorandum Circular No. 90-81 violated Article VIII, Section 5 of
the Constitution. The Court declared that neither the statute nor the
circular trenches upon the Supreme Court's power and authority to
prescribe rules on the practice of law. The Local Government Code
and DLG Memorandum Circular No. 90-81 simply prescribed the
rules of conduct for public officials to avoid conflicts of interest
between the discharge of their public duties and the private practice
of their profession, in those instances where the law allows it.
The Court likewise rejected the proposition that the above-
cited provision was discriminatory. The Court declared that Section
90 of the Local Government Code does not discriminate against
lawyers and doctors. It applies to all provincial and municipal
officials in the professions or engaged in any occupation. Section 90
explicitly provides that sanggunian members "may practice their
professions, engage in any occupation, or teach in schools except
during session hours." If there are some prohibitions that apply
particularly to lawyers, it is because of all the professions, the
practice of law is more likely than others to relate to, or affect, the
area of public service. 494
492 Social Justice Society v. Lina, G.R. No. 160031, December 18, 2008.
493 G.R.No. 102549, August 10, 1992.
494
Javellana v. DILG, G.R. No. 102549, August 10,1992.
In Republic v. Rambuyong,495 the Supreme Court held that Atty.

Rambuyong, then the incumbent vice-mayor of Ipil, Zamboanga
Sibugay, could not continue to act as counsel for plaintiff in a case for
collection of sum filed against the National Power Corporation.
Section 2 of the Administrative Code of 1987 categorically provides
that the term "instrumentality" includes government-owned or
controlled corporations. Since National Power Corporation is a
government-owned or controlled corporation, it follows that it falls
under the term "instrumentality." 4%
SECTION 91. Statement of Assets and Liabilities. - (a)

Officials and employees of local government units
shall file sworn statements of assets, liabilities and net
worth, lists of relatives within the fourth civil degree
of consanguinity or affinity in government service,
financial and business interests, and personnel data
sheets as required by law.
Local officials and employees are also required to disclose

their financial worth and business interests under Republic Act No.
6713. The pertinent provisions read:
Section .10)ntruent aid Disclosue. - Publicffticial

tandemployees have an obligation to accomplish and
vsubmit declarations under oath of, and the public has
the right to know, their assets, liabilities, net worth
,and financial and business interests including those of
'their spouses a-nd of unmarried children under
,eighteen (18) years of age living in their households.
49
5 G.R. No. 167810, October 4,2010.
4%TeGOCC Governance Act of 2011 (Republic Act No. 10149 [2011]) provides:
Section 2. (10) Instrumentality refers to ay agency of the National
Government, not integrated within the department framework
vested within special functions or jurisdiction by law, endowed
with some if not all corporate powers, administering special funds,
and enjoying operational autonomy, usually through a charter.
This term includes regulatory agencies, chartered institutions and
government-owned or controlled corporations.
~(A) Statemhents of Asse

and Financial Disciosi All public
officials "and employe -except thosej
who serve in an ho ary capacity,
laborers and casual ,r temporaryl
workers, shall file u r: oath' their
Statement of Assets lities "andNet i
Worth and a tDiscls of, Businessl
ianterests and Fnanc
land those of, 'theii
property, its
Yrproveinents,
[(e) al busine rests

and fiaihcial
connections
days after assumnption, of~

ofce;
zeofthe entei
7 the House of
Aepresentatives,
irespectively; Justices,
with. the Clerk of Court
f the' Supreme Court I
~judgei, with, the Courd'
Adiihik#aty and alt
natioal eecputive,
.ofiis with the Office
,fthe President.
Regional
e(3) and local;
lofficial and employees,!
~with the Deputyj
!iOmbudsm
An their
Irespective regions;
((4) Officers of the arnmed
,fries- ftr the rank ofe
4filsid ranks, with

1the Deputy
O mbudsman in their,
respective reGors andt
o colonel
~(5) Allor other
navloyee to int
public
,wd
istlse Offie
,officials and employees,!
te ,eof h i
idefined in Republic Act
No. -3019,, as aiierided,!
iwith, the C2ivil Service'
()identification anddicsre f
relatives. - It shall be the duty of every
public official or employee to identify)
and disclose, to the best of hisi
1knowledge and ifrain i
relatives in the G.overnmient in thel
SECTON 92. Oath of Office. - (a) All elective and

appointive local officials and employees shall, upon
assumption to office, subscribe to an oath or
affirmation of office in the prescribed form. The oath
or affirmation of office shall be filed with the office of
the local chief executive concerned. A copy of the oath
or affirmation of office of all elective and appointive
local officials and employees shall be preserved in the
individual personal records file under the custody of
the personnel office, division, or section of the local
government unit concerned.
SECTION 93. Partisan Political Activity. - No local
official or employee in the career civil service shall
engage directly or indirectly in any partisan political
activity or take part in any election, initiative,
referendum, plebiscite, or recall, except to vote, nor
shall he use his official authority or influence to cause
the performance of any political activity by any person
or body. He may, however, express his views on
current issues, or mention the names of certain
candidates for public office whom he supports.
Elective local officials may take part in partisan
political and electoral activities, but it shall be
unlawful for them to solicit contributions from their
subordinates or subject these subordinates to any of

the prohibited acts under the Omnibus Election Code.
SECTION 94. Appointment of Elective and Appointive
Local Officials; Candidates Mw Lost in an Election. (a) No
elective or appointive local official shall be eligible for
appointment or designation in any capacity to any
public office or position during his tenure.
Unless otherwise allowed by law or by the primary
functions of his position, no elective or appointive
local official shall hold any other office or employment
in the government or any subdivision, agency or
instrumentality thereof, including government-owned
or controlled corporations or their subsidiaries.
The power to appoint is vested in the local chief executive.

The power of the sanggunian is limited to creating, consolidating and
reorganizing city officers and positions supported by local funds. The
city council has no power to appoint. This is clear from Section 177 of
Batas Pambansa Blg. 337 which lists the powers of the sanggunian.
The power to appoint is not one of them. Had Congress intended to
grant the power to appoint to both the city council and the local chief
executive, it would have said so in no uncertain terms. 497
The Civil Service Commission's power is limited to
approving or disapproving an appointment. It does not have the
authority to direct that an appointment of a specific individual be
made. Once the Civil Service Commission attests whether the person
chosen to fill a vacant position is eligible, its role in the appointment
process necessarily ends. The Civil Service Commission cannot
encroach upon the discretion vested in the appointing authority. 498
There are other laws that govern appointments by local
officials such as the Administrative Code of 1987 which regulates
nepotism.
497
Mathay v. Court of Appeals, G.I. Nos. 12374, 126354 and 126366, December 15,
1999.
498
Mathay v. Court of Appeals, G.R. Nos. 12374, 126354 and 126366, December 15,
1999.
The prohibition against "nepotic appointments" in Section 59

of the Administrative Code was cast in comprehensive and
unqualified terms. Firstly, it explicitly covers "all appointments"
without seeking to make any distinction between differing kinds or
types of appointments. Secondly, Section 59 covers all appointments
to the national, provincial, city and municipal government, as well as
any branch or instrumentality thereof and all government-owned or
controlled corporations. Thirdly, there is a list of exceptions set out in
Section 59 itself, but it is a short list. Both an original appointment
and a promotion are particular species of personnel action. The
original appointment of a civil service employee and all subsequent
personnel actions undertaken by or in respect of that employee such
as promotion, transfer, reinstatement, reemployment, etc., must
comply with the Implementing Rules including, of course, the
prohibition against nepotism in Rule XVIII.499
The power to appoint or designate temporarily, in cases of
temporary absence or disability or a vacancy in a provincial office,
resides in the President of the Philippines or the Secretary of Finance,
not the provincial governor.5 t
The prohibition against appointment or designation of
elective officials to other government posts expresses the policy
against the concentration of several public positions in one person, so
that a public officer or employee may serve full-time with dedication
and thus be efficient in the delivery of public services. It is an
affirmation that a public office is a full-time job. Thus, the Supreme
Court held that "a public officer or employee, like the head of an
executive department.. .should be allowed to attend to his duties and
responsibilities without the distraction of other governmental duties
or employment. He should be precluded from dissipating his efforts,
attention and energy among too many positions of responsibility,
which may result in haphazardness and inefficiency..."S
While the second paragraph of Section 7, Article DC-B of the
Constitution authorizes holding of multiple offices by an appointive
official when allowed by law or by the primary functions of his
499
Debulgado v. Civil Service Commission, G.R. No. 111471, September 26,1994.
500 Dimaandal v. COA, G.R. No. 122197, June 26,1998.
5
m Flores v. Drilon, G.P. No. 104732, June 22,1993.
position, the first paragraph appears to be more stringent by not

providing any exception to the rule against appointment or
designation of an elective official to the government post, except as
are particularly recognized in the Constitution itself, e.g., the
President as head of the economic and planning agency; the Vice-
President, who may be appointed Member of the Cabinet; and, a
member of Congress who may be designated ex officio member of the
Judicial and Bar Council. 2
Under Section 12 (11) of Book V of the "Administrative Code
of 1987," the Civil Service Commission has the power to hear and
decide administrative cases instituted before it directly or on appeal,
including contested appointments, and review decisions and actions
of its agencies and of the agencies attached to it. Moreover, Section
20, Rule VI of the Omnibus Rules Implementing Book V of Executive
Order No. 292 and Other Pertinent Civil Service Laws provides that
notwithstanding the initial approval of an appointment, the same
may be recalled for "violation of other existing Civil Service laws,
rules and regulations." As held in Debulgado v. Civil Service
Commission,50 3 the Civil Service Commission is empowered to take
appropriate action on all appointments and other personnel actions
and that such power "includes the authority to recall an appointment
initially approved in disregard of applicable provisions of Civil
Service law and regulations."W 0
In Galeos v. People of the Philippines,05 the Court held that a

local official may be held liable for falsification of public document
under Article 171, paragraph 4 of the Revised Penal Code if she
makes untruthful statements in her Statement of Assets, Liabilities,
and Net Worth (SALN) concerning relatives in government service.
The constitutional prohibition on so-called "midnight
appointments," specifically those made within two (2) months
immediately prior to the next presidential elections, applies only to
the president or acting president, and not to local chief executives. 06
5m Floresv. Drilon, G.P. No. 104732. June 22,1993.

5w G.R. No. 111471, September 26,1994.
wo4Mathay v. Civil Service Commission, G.R. No. 130214, August 9,1999.
50 G.R. Nos. 174730-37, February 9, 2011.
5mDe Rama
v. Court of Appeals, G.R. No. 131136, February 28,2001.
A reassignment that is indefinite and results in a reduction in

rank, status, and salary is in effect a constructive removal from the
service.07
SECTION 95. Additional or Double Compensation. - No

elective or appointive local official or employee shall
receive additional, double, or indirect compensation,
unless specifically authorized by law, nor accept
without the consent of Congress, any present,
emoluments, office, or title of any kind from any
foreign government. Pensions or gratuities shall not be
considered as additional, double, or indirect
compensation.
Manila enacted Ordinance No. 8040 which authorized the

conferment of the Exemplary Public Service Award (EPSA) to former
three-term councilors and, as part of the award, the city officials were
to be given "retirement and gratuity pay remuneration." Section 2 of
the Ordinance provided for the payment of "retirement and gratuity
pay remuneration equivalent to the actual time served in the position
for three (3) consecutive terms" as part of the EPSA. The award is
equivalent to the total compensation received by each awardee for
nine years that includes basic salary, additional compensation,
Personnel Economic Relief Allowance, representation and
transportation allowance, rice allowance, financial assistance,
clothing allowance, 13th month pay and cash gift. The Commission
on Audit disallowed the disbursements. In Veloso v. Commission on
Audit, m the Supreme Court upheld the Commission. The Court held
that the computation of the awardees' reward
is excessive and tantamount to double and additional
compensation. This cannot be justified by the mere
fact that the awardees have been elected for three (3)
consecutive terms in the same position. Neither can it
be justified that the reward is given as a gratuity at the
57
Pastor v. City of Pasig, G.R. No. 146873, May 9,2002.
m Veloso v. Commission on Audit, G.R. No. 193677, September 6,2011.
end of the last term of the qualified elective official.

The fact remains that the remuneration is equivalent
to everything that the awardees received during the
entire period that he served as such official. Indirectly,
their salaries and benefits are doubled, only that they
receive half of them at the end of their last term. 09
SECTION 96. Permission to Leave Station. - (a)

Provincial, city, municipal, and barangay appointive
officials going on official travel shall apply and secure
written permission from their respective local chief
executives before departure. The application shall
specify the reasons for such travel, and the permission
shall be given or withheld based on considerations of
public interest, financial capability of the local
government unit concerned and urgency of the travel.
Should the local chief executive concerned fall to act
upon such application within four (4) working days
from receipt thereof, it shall be deemed approved.
(b) Mayors of component cities and municipalities
shall secure the permission of the governor concerned
for any travel outside the province.
Appointive officials enumerated in paragraph (a) are required

expressly to secure written permission from their respective local
chief executives before departure. The same explicit requirement
does not apply to mayors who fall under paragraph (b). This
paragraph merely states that they "shall secure the permission of the
governor." Paragraph (b) leaves open the interpretation that
50
9 Veloso v. Commission on Audit, G.R. No. 193677, September 6, 2011. However,
the Court did not require the refund of the disallowed amount because all the parties
acted in good faith. The Court explained that the questioned disbursement was
made pursuant to an ordinance enacted as early as December 7, 2000 although
deemed approved only on August 22, 2002. The city officials disbursed the
retirement and gratuity pay remuneration "in the honest belief that the amounts
given were due to the recipients and the latter accepted the same with gratitude,
confident that they richly deserve such reward."
subsequent ratification by the governor is within the purview of

"permission" under that provision.51 0
(c) Local government officials traveling abroad shall

notify their respective sanggunian: Provided, That
when the period of travel extends to more than three
(3) months, during periods of emergency or crisis or
when the travel involves the use of public funds,
permission from the Office of the President shall be
secured.
(d) Field officers of national agencies or offices
assigned in provinces, cities, and municipalities shall
not leave their official stations without giving prior
written notice to the local chief executive concerned.
Such notice shall state the duration of travel and the
name of the officer whom he shall designate to act for
and in his behalf during his absence.
As a general rule, Sections 20 and 52, as well as Sections 35

and 63, of the Civil Service Rules require an approved leave of
absence to avoid being on AWOL. However, these provisions cannot
be interpreted as exclusive and referring only to one mode of
securing the approval of a leave of absence which would require an
employee to apply for it, formalities and all, before exceeding 30 days
of absence in order to avoid being dropped from the rolls. There are
other means of seeking and granting an approved leave of absence,
one of which is the CSC recognized rule of automatic leave of
absence under specified circumstances. A government employee was
has been ordered arrested and detained for a non-bailable offense
and for which he was suspended for his inability to report for work
until the termination of his case, is not required to file a formal
application for leave of absence to ensure his reinstatement upon his
acquittal and thus protect his security of tenure.51 '
510 Cabrera v. Marcelo, G.R. No. 157419-20, December 30, 2004.

511 City Government of Makati City v. Civil Service Commission, G.R No. 131392,
February 6, 2002.
SECTION 97. Annual Report. - On or before March 31

of each year, every local chief executive shall submit
an annual report to the sanggunian concerned on the
socio-economic, political and peace and order
conditions, and other matters concerning the local
government unit, which shall cover the immediately
preceding calendar year. A copy of the report shall be
forwarded to the Department of the Interior and Local
Government. Component cities and municipalities
shall likewise provide the sangguniang panlalawigan
copies of their respective annual reports.
Local officials are also bound by the "Code of Conduct and

Ethical Standards for Public Officials and Employees." 512 That Code
provides for norms of conduct for public officials such as:
512 Republic Act No. 6713 (1989).

Psitions an dincome. They shall oiil

nulge in extravagant or ostentatious!
~disp]lay of wealth in any form
Other obligations of all officials include:
~e~~5Dutis of Nblc4l S and Empkyees

Athe periformance of Aheir duties, all public officials and
employees are unde olgton to-
(a)Act promptly on letters and
requests. -,-All p ublic officials and
,employees. shall,. within fifteen (15)1
working days from receipt thereof,
respond to letters, telegrams or other
means of communications sent by the
public. The reply must contain thai
action taken oii the request.
,(b) Submit artrutal Prorrmarce reports.1
All heads or otherrrponsible bfficers1
iof offices and, agencies 'of the)
government and of government-owned!
or controlled corporations shall, withini
forty-five (45) working days from the
rend of the year, render a performance i
report of the agency or office or
Icorporation: concerned. Such report
,shall be Op and available to the,
,public ithin gular office hours,,
f-(c)- Process, docu~ments and, papers,
,expeditiously. - All official papers and:
jdocuments must be processed and!
completed within a reasonable time
from the preparation thereof and must
,contain, as far as practicable, not more!
than three (3) signatories therein. In the
labsence of duly authorized signatries
DisciplinaryAuthority over Appointive Officials

The Administrative Code of 1987- specifically Book V on the
civil service - is the primary law governing appointive officials and
employees in the government. This Code enumerates the grounds for
disciplining appointive officials. Section 47 of the Code grants the
power to discipline to heads of departments, agencies and

instrumentalities, provinces and cities. 13
The Office of the Municipal Treasurer is unquestionably
under the Department of Finance as provided for in Section 3 of
Presidential Decree No. 477. Hence, the Secretary of Finance is the
proper disciplining authority to issue the preventive suspension
order. Moreover, the Secretary of Finance is an alter ego of the
President and therefore, it is within his authority, as an alter ego, to
preventively suspend the municipal treasurer.514
The city treasurer of Dagupan, not the mayor, has the
authority to institute disciplinary actions against subordinate officers
or employees. Thus, he could investigate and can issue a preventive
suspension order. This rule is not incongruent with the provisions of
the Administrative Code of 1987 which authorizes the heads of
agencies to discipline subordinate employees. The old local
government code did not vest in city mayors the sole power to
discipline and to institute criminal or administrative actions against
any officers or employees under their respective jurisdictions. 15
SECTION 89. ProhibitedBusiness and PecuniaryInterest.

- (a) It shall be unlawful for any local government
official or employee, directly or indirectly, to:
(1) Engage in any business transaction with the
local government unit in which he is an official
or employee or over which he has the power of
supervision, or with any of its authorized
boards, officials, agents, or attorneys, whereby
money is to be paid, or property or any other
thing of value is to be transferred, directly or
indirectly, out of the resources of the local
government unit to such person or firm;
(2) Hold such interests in any cockpit or other
games licensed by a local government unit.
(3) Purchase any real estate or other property
forfeited in favor of such local government
513Garcia v. Pajaro, G.R. No. 141149, July 5,2002.

51
4 Macalincag v. Chang, G.R. No. 96058, May 6,1992.
5 Garcia v. Pajaro, G.R. No. 141149, July 5, 2002.
unit for unpaid taxes or assessment, or by

virtue of a legal process at the instance of the
said local government unit.
(4) Be a surety for any person contracting or
doing business with the local government unit
for which a surety is required; and
(5) Possess or use any public property of the
local government unit for private purposes.
(b) All other prohibitions governing the conduct of
national public officers relating to prohibited business
and pecuniary interest so provided for under Republic
Act Numbered Sixty-seven thirteen (R. A. No. 6713)
otherwise known as the "Code of Conduct and Ethical
Standards for Public Officials and Employees" and
other laws shall also be applicable to local government
officials and employees.
In Teves v. Sandigangbayan, 51 6 the Court explained the two

modes by which a public officer who has a direct or indirect financial
or pecuniary interest in any business, contract or transaction may
violate Section 3 (h) of the Anti-Graft Law. The first mode is if in
connection with his pecuniary interest in any business, contract or
transaction, the public officer intervenes or takes part in his official
capacity. The second mode is when the Constitution or any law
prohibits a person from having such interest.
As illustrated in the case, the former Mayor of Valencia,
Negros Oriental was charged with unlawful intervention in issuance
of license to operate cockpit but was convicted of having direct
financial or pecuniary interest instead. The Court reasoned that the
evidence overwhelmingly evinced that Mayor Teves had a pecuniary
interest in the Valencia Cockpit, which is prohibited under Section 89
(2) of the Local Government Code. The petitioners challenged the
decision on the ground that they were convicted of a crime that was
not charged in the information.
516 G.R. No. 154182, December 17,2004.

The Court upheld the conviction of the accused in view of the

variance doctrine embodied in Section 4, in relation to Section 5, Rule
120, Rules of Criminal Procedure, which both read:
unwfu
inteudentintcaessuance between e in vat
1 hgeda incue coplin orffier
proved and he offr asrchargndas inn re
necay ines ctr ffenor sctiov, hetherdr o

of protof, -h ether iGas a arne btenth fes
.includedotern the eseniargd onrede of the offense

hleelement of the o ffense inedhis caswhich
parg is
unlaedwfh intervention o thtreas
3.geintevs ninisuaeo partge in itee
hofc in violationof
cpacyint
o nnecmtion,wosith itetest.,Adaofes
es
1. The accused
Onwheohr isessential
thead a public officer;
ingredients of the offontiuens
2. He has a direct or indirect financial or pecuniary interest
in any business, ontractortransaction, weth or
ofSection
ofSection 33 (h)
(h) of
of the
the Anti-Graft
Anti-Graft Law,
Law, are: olos
are: olos
1 . The accused is a public officer;
2. He has a direct or indirect financial or pecuniary interest
in any business, contract, or transaction, whthrndo
3. He is prohibited from having such interest by the
Constitution or any law.

The Court ruled that the essential ingredients of the offense

proved constitute or form part of those constituting the offense
charged. Put differently, the first and second elements of the offense
charged, as alleged in the information, constitute the offense proved.
tIence, the offense proved is necessarily included in the offense
charged, or the offense charged necessarily includes the offense
proved. The variance doctrine thus finds application to this case,
thereby warranting the conviction of petitioner Teves for the offense
proved.
As to the penalty imposed, the Court observed that the anti-
graft law and the local government law provide for different
penalties. The Court ruled that the Local Government Code of 1991,
which specifically prohibits local officials from possessing pecuniary
interest in a cockpit licensed by the local government unit and which,
in itself, prescribes the punishment for violation thereof, is
paramount to the Anti-Graft Law which penalizes possession of
prohibited interest in a general manner. Moreover, the latter took
effect on 17 August 1960, while the former became effective on 1
January 1991. Being the earlier statute, the Anti-Graft Law has to
yield to the Local Government Code of 1991 which is the later
expression of legislative will.
171w requixeree stmtit shall not -appl,

!those who semi4 vernment in an hono
icapacity, nor- to and casual or tempo
workers'"
In the absence of any showing that a business interest will

result in a conflict of interest, divestment of the same is unnecessary.
In Rabe v. Flores,517 the Supreme Court held that there is no conflict of
interest in a case where an Interpreter El of the Regional Trial Court
has a stall in the market. In that case, the Court explained that a
court, generally, is not engaged in the regulation of a public market,
nor does it concern itself with the activities thereof. The Court
proceeded to state that while the respondent may not be compelled
to divest herself of her business interest, she had the legal obligation
of divulging it.518
Title IV
LOCAL SCHOOL BOARDS
SECTION 98. Creation, Compositionand Compensation. -
(a) There shall be established in every province, city,
or municipality a provincial, city or municipal school
board, respectively.
(b) The composition of local school boards shall be as
follows:
(1) The provincial school board shall be
composed of the governor and the
division superintendent of schools as
co-chairmen; the chairman of the
education committee of the
sangguniang panlalawigan, the
provincial treasurer, the representative
of the pederasyon ng mga sangguniang
kabataan in the sangguniang
panlalawigan, the duly elected
president of the provincial federation
of parents-teachers association, the
duly elected representative of the
teachers' organization in the province,
517 A.M. No. P-97-1247. May 14,1997.

518 A.M. No. P-97-1247. May 14,1997.
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In the absence of any showing that a business interest will

result in a conflict of interest, divestment of the same is unnecessary.
In Rabe v. Flores,517 the Supreme Court held that there is no conflict of
interest in a case where an Interpreter El of the Regional Trial Court
has a stall in the market. In that case, the Court explained that a
court, generally, is not engaged in the regulation of a public market,
nor does it concern itself with the activities thereof. The Court
proceeded to state that while the respondent may not be compelled
to divest herself of her business interest, she had the legal obligation
of divulging it.518
Title IV
LOCAL SCHOOL BOARDS
SECTION 98. Creation, Compositionand Compensation. -
(a) There shall be established in every province, city,
or municipality a provincial, city or municipal school
board, respectively.
(b) The composition of local school boards shall be as
follows:
(1) The provincial school board shall be
composed of the governor and the
division superintendent of schools as
co-chairmen; the chairman of the
sangguniang panlalawigan, the
provincial treasurer, the representative
of the pederasyon ng mga sangguniang
panlalawigan, the duly elected
president of the provincial federation
of parents-teachers association, the
duly elected representative of the
teachers' organization in the province,
517 A.M. No. P-97-1247. May 14,1997.

518 A.M. No. P-97-1247. May 14,1997.
and the duly elected representative of

the non-academic personnel of public
schools in the province, as members;
(2) The city school board shall be
composed of the city mayor and the
city superintendent of schools as co-
chairmen; the chairman of the
sangguniang panlungsod, the city
treasurer, the representative of the
pederasyon ng mga sangguniang
panlungsod, the duly elected president
of the city federation of parents-
teachers associations, the duly elected
representative of the teachers'
organizations in the city, and the duly
elected representative of the non-
academic personnel of public schools in
the city, as members; and
(3) The municipal school board shall be
composed of the municipal mayor and
the district supervisor of schools as co-
chairmen; the chairman of the
sangguniang bayan, the municipal
treasurer, the representative of the
kabataan in the sangguniang bayan, the
duly elected president of the municipal
federation of parents-teachers
associations, the duly elected
representative of the teachers'
organizations in the municipality, and
the duly elected representative of the
non-academic personnel of public
schools in the city, as members;
(c) In the event that a province or city has two (2) or

more school superintendents, and in the event that a
municipality has two (2) or more district supervisors,
the co-chairman of the local school board shall be
determined as follows:
(1) The Department of Education,
Culture and Sports shall designate the
co-chairman for the provincial and city
school boards; and
(2) The division superintendent of
schools shall designate the district
supervisor who shall serve as co-
chairman of the municipal school
board.
(d) The performance of the duties and responsibilities
of the abovementioned officials in their respective
local school boards shall not be delegated.
The law does not make the City School Board (CSB)
independent from the City of Manila. The fact that the highest
ranking official of a local government unit is designated as co-
chairman of the school board negates the claim in this case that the
CSB has a personality separate and distinct from the City.519
SECTION 99. Functions of Local School Boards. - The

provincial, city or municipal school board shall:
(a) Determine, in accordance with the
criteria set by the Department of
Education, Culture and Sports, the
annual supplementary budgetary
needs for the operation and
maintenance of public schools within
the province, city or municipality, as
the case may be, and the
s19 Yujuico v. Atienza, G.R. No. 164282, October 12, 2005.

supplementary local cost of meeting

such needs, which shall be reflected in
the form of an annual school board
budget corresponding to its share in
the proceeds of the special levy on real
property constituting the Special
Education fund and such other
sources of revenue as this Code and

other laws or ordinances may provide;
(b) Authorize the provincial, city or
municipal treasurer, as the case may
be, to disburse funds from the Special
Education fund pursuant to the budget
prepared and in accordance with
existing rules and regulations;
(c) Serve as an advisory committee to
the sanggunian concerned on
educational matters such as, but not
limited to, the necessity for and the
uses of local appropriations for
educational purposes; and
(d) Recommend changes in the names
of public schools within the territorial
unit for enactment by the sanggunian
concerned.
The Department of Education, Culture and Sports
shall consult the local school board on the
appointment of division superintendents, district
supervisors, school principals, and other school
officials.
In Osea v. Maglaya,5 20 the Supreme Court declared that the
designation of respondent as Schools Division Superintendent of
Camarines Sur was not a case of appointment. Her designation
520 G.R. No. 139821, January 30, 2002.

partook of the nature of a reassignment from Iriga City, where she

previously exercised her functions as Officer-in-Charge-Schools
Division Superintendent, to Camarines Sur. Clearly, therefore, the
requirement in Section 99 of the Local Government Code of prior
consultation with the local school board does not apply. It only refers
to appointments made by the Department of Education, Culture and
Sports. Such is the plain meaning of the said law. This is because at
the time of the enactment of the Local Government Code, schools
division superintendents were appointed by the Department of
Education, Culture and Sports to specific division or location. In
1994, the Career Executive Service Board issued Memorandum
Circular No. 21, Series of 1994, placing the positions of schools
division superintendent and assistant schools division
superintendent within the career executive service. Consequently,
the power to appoint persons to career executive service positions
was transferred from the Department of Education, Culture and
Sports to the President. The appointment may not be specific as to
location. The prerogative to designate the appointees to their
particular stations was vested in the Department of Education,
Culture and Sports Secretary, pursuant to the exigencies of the
service, as provided in Department of Education, Culture and Sports
Order No. 75, Series of 1996.
SECTION 100. Meetings and Quorum; Budget. - (a) The

local school board shall meet at least once a month or
as often as may be necessary.
(b) Any of the co-chairmen may call a meeting. A

majority of all its members shall constitute a
quorum. However, when both co-chairmen are
present in a meeting, the local chief executive
concerned, as a matter of protocol, shall be given
preference to preside over the meeting. The division
superintendent, city superintendent or district
supervisor, as the case may be, shall prepare the
budget of the school board concerned. Such budget
shall be supported by programs, projects, and
activities of the school board for the ensuing fiscal
year. The affirmative vote of the majority of all its

members shall be necessary to approve the budget.
(c) The annual school board budget shall give priority
to the following:
(1) Construction, repair, and
maintenance of school buildings and
other facilities of public elementary and
secondary schools;
(2) Establishment and maintenance of
extension classes where necessary; and
(3) Sports activities at the division,
district, municipal, and barangay
levels.
In Commission on Audit v. Province of Cebu,5 2 the provincial

governor of the Province of Cebu, as chairman of the local school
board, appointed classroom teachers who have no items in the DECS
plantilla to handle extension classes that would accommodate
students in the public schools.
In the audit of accounts conducted by the Commission on
Audit (COA) of the Province of Cebu, it appeared that the salaries
and personnel-related benefits of the teachers appointed by the
province for the extension classes were charged against the
provincial Special Education Fund (SEF). Likewise charged to the
SEF were the college scholarship grants of the province.
Consequently, the COA issued Notices of Suspension to the province
of Cebu, saying that disbursements for the salaries of teachers and
scholarship grants are not chargeable to the provincial SEF. Faced
with the Notices of Suspension issued by the COA, the province of
Cebu, represented by its governor, filed a petition for declaratory
relief with the Court.
The Supreme Court ruled that legislature intended the SEF to
answer for the compensation of teachers handling extension classes.
5G.R. No. 141386. November 29,2001.

Under the doctrine of necessary implication, the allocation of the SEF

for the establishment and maintenance of extension classes logically
implies the hiring of teachers who should, as a matter of course, be
compensated for their services. Every statute is understood, by
implication, to contain all such provisions as may be necessary to
effectuate its object and purpose, or to make effective rights, powers,
privileges or jurisdiction which it grants, including all such collateral
and subsidiary consequences as may be fairly and logically inferred
from its terms. Ex necessitate legis. Verily, the services and the
corresponding compensation of these teachers are necessary and
indispensable to the establishment and maintenance of extension
classes.
Indeed, the operation and maintenance of public schools is
lodged principally with the DECS. This is the reason why only
salaries of public school teachers appointed in connection with the
establishment and maintenance of extension classes, inter alia, pertain
to the supplementary budget of the local school boards. Thus, it
should be made clear that not every kind of personnel-related
benefits of public school teachers may be charged to the SEF. The SEF
may be expended only for the salaries and personnel-related benefits
of teachers appointed by the local school boards in connection with
the establishment and maintenance of extension classes. Extension
classes as referred to mean additional classes needed to
accommodate all children of school age desiring to enter in public
schools to acquire basic education.
With respect to college scholarship grants, a reading of the
pertinent provisions of the Local Government Code reveals that said
grants are not among the projects for which the proceeds of the SEF
may be appropriated. It should be noted that Sections 100 (c) and 272
of the Local Government Code substantially reproduced Section 1 of
Republic Act No. 5447 (1968). But, unlike payment of salaries of
teachers, which falls under "establishment and maintenance of
extension classes" and "operation and maintenance of public
schools," the "granting of government scholarship to poor but
deserving students" was omitted in Sections 100 (c) and 272 of the
Code. Casus omissus pro omisso habendus est. A person, object, or thing
omitted from an enumeration in a statute must be held to have been
omitted intentionally. It is not for this Court to supply such grant of
scholarship where the legislature has omitted it.
In the same vein, however, noble the intention of the province

in extending said scholarship to deserving students, the Court ruled
that they cannot apply the doctrine of necessary implication
inasmuch as the grant of scholarship is neither necessary nor
indispensable to the operation and maintenance of public schools.
Instead, such scholarship grants may be charged to the General
Funds of the province.
SECTION 101. Compensation and Remuneration. - The

co-chairmen and members of the provincial, city or
municipal school board shall perform their duties as
such without compensation or remuneration.
Members thereof who are not government officials or
employees shall be entitled to necessary traveling
expenses and allowances chargeable against funds of
the local school board concerned, subject to existing
accounting and auditing rules and regulations.
Title V
LOCAL HEALTH BOARDS
SECTION 102. Creation and Composition. - (a) There
shall be established a local health board in every
province, city or municipality. The composition of the
local health boards shall be as follows:
(1) The provincial health board shall be
headed by the governor as chairman,
the provincial health officer as vice-
chairman, and the chairman of the
committee on health of the
sangguniang panlalawigan, a
representative from the private sector
or non-governmental organizations
involved in health services, and a
representative of the Department of
Health in the province, as members;
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In the same vein, however, noble the intention of the province

in extending said scholarship to deserving students, the Court ruled
that they cannot apply the doctrine of necessary implication
inasmuch as the grant of scholarship is neither necessary nor
indispensable to the operation and maintenance of public schools.
Instead, such scholarship grants may be charged to the General
Funds of the province.

co-chairmen and members of the provincial, city or
municipal school board shall perform their duties as
such without compensation or remuneration.
Members thereof who are not government officials or
employees shall be entitled to necessary traveling
expenses and allowances chargeable against funds of
the local school board concerned, subject to existing
accounting and auditing rules and regulations.
Title V
LOCAL HEALTH BOARDS
SECTION 102. Creation and Composition. - (a) There
shall be established a local health board in every
province, city or municipality. The composition of the
local health boards shall be as follows:
(1) The provincial health board shall be
headed by the governor as chairman,
the provincial health officer as vice-
chairman, and the chairman of the
committee on health of the
sangguniang panlalawigan, a
representative from the private sector
Health in the province, as members;
(2) The city health board shall be

headed by the city mayor as chairman,
the city health officer as vice-chairman,
and the chairman of the committee on
health of the sangguniang panlungsod,
a representative from the private sector
Health in the city, as members; and
(3) The municipal health board shall be
headed by the municipal mayor as
chairman, the municipal health officer
as vice-chairman, and the chairman of
the committee on health of the
sangguniang bayan, a representative
from the private sector or non-
governmental organizations involved
in health services, and a representative
of the Department of Health in the
municipality, as members;
(b) The functions of the local health board shall be:
(1) To propose to the sanggunian
concerned, in accordance with
standards and criteria set by the
Department of Health, annual
budgetary allocations for the operation
and maintenance of health facilities
and services within the municipality,
city or province, as the case may be.
(2) To serve as an advisory committee
to the sanggunian concerned on health
matters such as, but not limited to, the
necessity for, and application of, local
appropriations for public health
purposes; and
(3) Consistent with the technical and
administrative standards of the

Department of Health, create
committees which shall advise local
health agencies on matters such as, but
not limited to, personnel selection and
promotion, bids and awards,
grievances and complaints, personnel
discipline, budget review, operations
review and similar functions.
SECTION 103. Meetings and Quorum. - (a) The board
shall meet at least once a month or as often as may be
necessary.
(b) A majority of the members of the board shall
constitute a quorum, but the chairman or the vice-
chairman must be present during meetings where
budgetary proposals are being prepared or
considered. The affirmative vote of all the majority of
the members shall be necessary to approve such
proposals.
chairman, vice-chairman, and members of the
provincial, city or municipal health board shall
perform their duties as such without compensation or
remuneration. Members thereof who are not
government officials or employees shall be entitled to
necessary traveling expenses and allowances
chargeable against the funds of the local health board
concerned, subject to existing accounting and auditing
rules and regulations.
SECTION 105. Direct National Supervision and Control
by the Secretary of Health. - In cases of epidemics,
pestilence, and other widespread public health
dangers, the Secretary of Health may, upon the
direction of the President and in consultation with the
local government unit concerned, temporarily assume
direct supervision and control over health operations
in any local government unit for the duration of the
emergency, but in no case exceeding a cumulative

period of six (6) months. With the concurrence of the
local government unit concerned, the period for such
direct national control and supervision may be further
extended.
Title VI
LOCAL DEVELOPMENT COUNCILS
SECTION 106. Local Development Councils. - (a) Each
local government unit shall have a comprehensive
multisectoral development plan to be initiated by its
development council and approved by its sanggunian.
For this purpose, the development council at the
provincial city, municipal, or barangay level, shall
assist the corresponding sanggunian in setting the
direction of economic and social development, and
coordinating development efforts within its territorial
jurisdiction.
The Supreme Court held that the concept of legislator control

underlying the Countrywide Development Fund and the Priority
Development Assistance Fund (forms of Congressional pork barrel
allocations) are in conflict with the functions of the various Local
Development Councils (LDC) which are already legally mandated to
"assist the corresponding sanggunian in setting the direction of
economic and social development, and coordinating development
efforts within its territorial jurisdiction." The Court held that
considering that LDCs are instrumentalities whose functions are
essentially geared towards managing local affairs, their programs,
policies and resolutions should not be overridden nor duplicated by
individual legislators, who are national officers that have no law-
making authority except only when acting as a body. 22 So insofar as
individual legislators are authorized to intervene in purely local
matters and thereby subvert genuine local autonomy, the 2013 PDAF
522 Belgica v. Executive Secretary, G.R. No. 208566, November 19, 2013.
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emergency, but in no case exceeding a cumulative

period of six (6) months. With the concurrence of the
local government unit concerned, the period for such
direct national control and supervision may be further
extended.
Title VI
LOCAL DEVELOPMENT COUNCILS
SECTION 106. Local Development Councils. - (a) Each
local government unit shall have a comprehensive
multisectoral development plan to be initiated by its
development council and approved by its sanggunian.
For this purpose, the development council at the
provincial city, municipal, or barangay level, shall
assist the corresponding sanggunian in setting the
direction of economic and social development, and
coordinating development efforts within its territorial
jurisdiction.
The Supreme Court held that the concept of legislator control

underlying the Countrywide Development Fund and the Priority
Development Assistance Fund (forms of Congressional pork barrel
allocations) are in conflict with the functions of the various Local
Development Councils (LDC) which are already legally mandated to
"assist the corresponding sanggunian in setting the direction of
economic and social development, and coordinating development
efforts within its territorial jurisdiction." The Court held that
considering that LDCs are instrumentalities whose functions are
essentially geared towards managing local affairs, their programs,
policies and resolutions should not be overridden nor duplicated by
individual legislators, who are national officers that have no law-
making authority except only when acting as a body. 22 So insofar as
individual legislators are authorized to intervene in purely local
matters and thereby subvert genuine local autonomy, the 2013 PDAF
Article as well as all other similar forms of Congressional Pork Barrel

is deemed unconstitutional.523
SECTON 107. Composition of Local Development

Councils. - The composition of the local development
council shall be as follows:
(a) The barangay development council
shall be headed by the punong
barangay and shall be composed of the
following members:
(1) Members of the
sangguniang barangay;
(2) Representatives of
non-governmental
organizations operating
in the barangay, who
shall constitute not less
than one fourth (1/4) of
the members of the fully
organized council;
(3) A representative of
the congressman.
(b) The city or municipal development
council shall be headed by the mayor
and shall be composed of the following
members:
(1) All punong
barangays in the city or
municipality;
committee on
appropriations of the
sangguniang
panlungsod or
5
sangguniang bayan
concerned;
(3) The congressman or
his representative; and
nongovernmental
in the city or
municipality, as the case
may be, who shall
constitute not less than
one-fourth (1/4) of the
members of the fully
organized council.
(c) The provincial development council
shall be headed by the governor and
shall be composed of the following
members:
(1) All mayors of
component cities and
municipalities;
committee on
sangguniang
panlalawigan;
(3) The congressman or
his representative; and
nongovernmental
in the province, who
shall constitute not less
than one-fourth (1/4) of
the members of the fully
organized council.
(d) The local development councils

may call upon any local official
concerned or any official of national
agencies or offices in the local
government unit to assist in the
formulation of their respective
development plans and public
investment programs.
The Supreme Court's ruling in Belgica v. Executive Secretary524

casts doubt on the constitutionality of Sections 107 (a) (3), (b) (3), and
(c) (3) which provided that the district representatives will form part
of the local development councils. This could be construed as an
intervention "in purely local matters" that can "subvert genuine local
autonomy." This argument appears stronger in light of the functions
of the local development councils under Section 109-none of which
pertain to a legislative function.
SECTION 108. Representation of Non-Governmental

Organizations.- Within a period of sixty (60) days from
the start of organization of local development
councils, the nongovernmental organizations shall
choose from among themselves their representatives
to said councils. The local sanggunian concerned shall
accredit nongovernmental organizations subject to
such criteria as may be provided by law.
SECTION 109. Functions of Local Development Councils.

- (a) The provincial, city, and municipal development
councils shall exercise the following functions:
(1) Formulate long-term, medium-term,
and annual socioeconomic
development plans and policies;
524 G.R. No. 208566, November 19, 2013.

(2) Formulate the medium-term and

annual public investment programs;
(3) Appraise and prioritize
socioeconomic development programs
and projects;
(4) Formulate local investment
incentives to promote the inflow and
direction of private investment capital;
(5) Coordinate, monitor, and evaluate
the implementation of development
programs and projects; and
(6) Perform such other functions as
may be provided by law or competent
authority.
(b) The barangay development council shall exercise
the following functions:
(1) Mobilize people's participation in
local development efforts;
(2) Prepare barangay development
plans based on local requirements;
(3) Monitor and evaluate the
implementation of national or local
programs and projects; and
(4) Perform such other functions as
may be provided by law or competent
authority.
SECTION 110. Meetings and Quorum. - The local

development council shall meet at least once every six
(6) months or as often as may be necessary.
SECTION 111. Executive Committee. - (a) Each local

development council shall create an executive
committee to represent it and act in its behalf when it
is not in session. The composition of the executive

committee shall be as follows:
(1) The executive committee of the
provincial development council shall
be composed of the governor as
chairman, the representative of
component city and municipal mayors
to be chosen from among themselves,
the chairman of the committee on
appropriations of the sangguniang
panlalawigan, the president of the
provincial league of barangays, and a
representative of nongovernmental
organizations that are represented in
the council, as members;
(2) The executive committee of the city
or municipal development council shall
be composed of the mayor as chairman,
the chairman of the committee on
appropriations of the sangguniang
panlalawigan, the president of the city
or municipal league of barangays, and
a representative of nongovernmental
the council, as members; and
(3) The executive committee of the
barangay development council shall be
composed of the punong barangay as
chairman, a representative of the
sangguniang barangay to be chosen
from among its members, and a
representative of nongovernmental
the council, as members.
(b) The executive committee shall exercise the
following powers and functions:
(1) Ensure that the decision of the

council are faithfully carried out and
implemented;
(2) Act on matters requiring immediate
attention or action by the council;
(3) Formulate policies, plans, and
programs based on the general
principles laid down by the council;
and
(4) Act on other matters that may be
authorized by the council.
SECTION 112. Sectoral or Functional Committees. - The
local development councils may form sectoral or
functional committees to assist them in the
performance of their functions.
SECTION 113. Secretariat.- There is hereby constituted
for each local development council a secretariat which
shall be responsible for providing technical support,
documentation of proceedings, preparation of reports
and such other assistance as may be required in the
discharge of its functions. The local development
council may avail of the services of any non-
governmental organization or educational or research
institution for this purpose.
The secretariats of the provincial, city, and municipal
development councils shall be headed by their
respective planning and development coordinators.
The secretariat of the barangay development council
shall be headed by the barangay secretary who shall
be assisted by the city or municipal planning and
development coordinator concerned.
SECTION 114. Relation of Local Development Councils to
the Sanggunian and the Regional Development Council. -
(a) The policies, programs, and projects proposed by
local development councils shall be submitted to the
sanggunian concerned for appropriate action.
(b) The approved development plans of provinces,
highly-urbanized cities, and independent component
cities shall be submitted to the regional development

council, which shall be integrated into the regional
development plan for submission to the National
Economic and Development Authority, in accordance
with existing laws.
SECTION 115. Budget Information. - The Department of
Budget and Management shall furnish the various
local development councils information on financial
resources and budgetary allocations applicable to their
respective jurisdictions to guide them in their
planning functions.
Title VII
LOCAL PEACE AND ORDER COUNCIL
SECTION 116. Organization. - There is hereby
established in every province, city and municipality a
local peace and order council, pursuant to Executive
Order Numbered Three hundred nine (E.O. No. 309),
as amended, Series of 1988. The local peace and order
councils shall have the same composition and
functions as those prescribed by said executive order.
The local peace and order council determines the amount of

the hazard allowance for all accredited barangay health workers who
are actively and regularly performing their duties. The Barangay
Health Workers' Benefits and Incentives Act of 1995525 provides:
5
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cities shall be submitted to the regional development

council, which shall be integrated into the regional
development plan for submission to the National
Economic and Development Authority, in accordance
with existing laws.
SECTION 115. Budget Information. - The Department of
Budget and Management shall furnish the various
local development councils information on financial
resources and budgetary allocations applicable to their
respective jurisdictions to guide them in their
planning functions.
Title VII
LOCAL PEACE AND ORDER COUNCIL
SECTION 116. Organization. - There is hereby
established in every province, city and municipality a
local peace and order council, pursuant to Executive
Order Numbered Three hundred nine (E.O. No. 309),
as amended, Series of 1988. The local peace and order
councils shall have the same composition and
functions as those prescribed by said executive order.
The local peace and order council determines the amount of

the hazard allowance for all accredited barangay health workers who
are actively and regularly performing their duties. The Barangay
Health Workers' Benefits and Incentives Act of 1995525 provides:
5
Congress assigned an additional function to the local

development councils through the Countrywide Industrialization
Act of 1992.526 Pertinent provisions of that law provide:
M Republic Act No. 7368 (1992).

Title VIII
AUTONOMOUS SPECIAL ECONOMIC ZONES
SEC. 117. Establishmentof Autonomous Special Economic
Zones. - The establishment by law of autonomous
special economic zones in selected areas of the country
shall be subject to concurrence by the local
government units included therein.
Special Economic Zones are established in many areas in the

Philippines. The Local Government Code requires the concurrence of
local government units in the establishment of these zones. The
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Title VIII
AUTONOMOUS SPECIAL ECONOMIC ZONES
SEC. 117. Establishmentof Autonomous Special Economic
Zones. - The establishment by law of autonomous
special economic zones in selected areas of the country
shall be subject to concurrence by the local
government units included therein.
Special Economic Zones are established in many areas in the

Philippines. The Local Government Code requires the concurrence of
local government units in the establishment of these zones. The
Special Economic Zone Act of 1995527 sets out the following policy in
establishing ecozones:
...the government shall actively encourage, promote,
induce and accelerate a sound and balanced
industrial, economic and social development of the
country in order to provide jobs to the people
especially those in the rural areas, increase their
productivity and their individual and family income,
and thereby improve the level and quality of their
living condition through the establishment, among
others, of special economic zones in suitable and
strategic locations in the country and through
measures that shall effectively attract legitimate and
productive foreign investments.
The goals of the Act are as follows:
52? Republic Act No. 7916 (1995), as amended by Republic Act No. 8748 (1999).
The establishment of these zones does not affect the

autonomy of local government units:
528
Laws creating ecozones include Republic Act No. 7903 (1995), which established
the "Zamboanga City Special Economic Zone" and Republic Act No. 9490 or the
"Aurora Economic Zone Act of 2007," as amended by Republic Act No. 10083 (2010).
The Bataan Economic Zone in the Municipality of Mariveles, Province of Bataan was
converted into a special economic zone and freeport known as the Freeport Area of
Bataan (FAB) by Republic Act No. 9728 (2009).
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Title IX
OTHER PROVISIONS APPLICABLE TO LOCAL
GOVERNMENT UNITS
Chapter I
Settlement of Boundary Disputes
SECTION 118. JurisdictionalResponsibilityfor Settlement
of Boundary Dispute. - Boundary disputes between and
among local government units shall, as much as
possible, be settled amicably. To this end:
(a) Boundary disputes involving two
(2) or more barangays in the same city
or municipality shall be referred for
concerned.
(b) Boundary disputes involving two
(2) or more municipalities within the
same province shall be referred for
panlalawigan concerned.
Unlike Republic Act No. 6128 and Batas Pambansa Blg. 337,
the Local Government Code of 1991 grants an expanded role for the
sangguniang panlalawigan in resolving cases of municipal boundary
disputes. The sangguniang panlalawigan brings the contending
parties together and assists in the amicable settlement of the case. It is
also vested with originaljurisdiction to actually hear and decide the
dispute in accordance with the procedures laid down in the law and
its implementing rules and regulations. This reverts to the old rule
under the Revised Administrative Code, prior to its amendment by
Republic Act No. 6128, where the provincial boards were
empowered to investigate, hear the parties and eventually decide the
case on the basis thereof. Under Section 118, the trial court lost its
power to try, at the first instance, cases of municipal boundary
disputes. Only in the exercise of its appellate jurisdiction can the
proper Regional Trial Court decide the case, on appeal, should any
party aggrieved by the decision of the sangguniang panlalawigan

elevate the same.129
(c) Boundary disputes involving

municipalities or component cities of
different provinces shall be jointly
referred for settlement to the
sanggunians of the provinces
concerned.
(d) Boundary disputes involving a
component city or municipality on the
one hand and a highly urbanized city
on the other, or two (2) or more highly
urbanized cities, shall be jointly
referred for settlement to the respective
sanggunians of the parties.
(e) In the event the sanggunian fails to
effect an amicable settlement within
sixty (60) days from the date the
dispute was referred thereto, it shall
issue a certification to that effect.
Thereafter, the dispute shall be
formally tried by the sanggunian
concerned which shall decide the issue
within sixty (60) days from the date of
the certification referred to above.
A requisite for the creation of a barangay is for its territorial

jurisdiction to be properly identified by metes and bounds or by
more or less permanent natural boundaries. Precisely because
territorial jurisdiction is an issue raised in a pending civil case, until
and unless such issue is resolved with finality, to define the territorial
529 Municipality of Sta. Fe v. Municipality of Aritao, G.R. No. 140474, September 21,
2007.
jurisdiction of the proposed barangays would only be an exercise in

futility.m0
Section 118 of the Local Government Code applies to a
situation in which a component city or a municipality seeks to settle a
boundary dispute with a highly urbanized city, not with an
independent component city. Thus, the provision does not apply in a
case involving a boundary dispute between a municipality and an
independent component city.wl
The jurisdiction of the Regional Trial Court over boundary
disputes among local government units was settled in National
Housing Authority v. Commission on the Settlement of Land Problemsm2
where the Supreme Court recognized the appellate jurisdiction of the
proper Regional Trial Court. The jurisdiction of the Regional Trial
Court was further clarified in Municipality of Kananga v. Madronaw 3
where the Supreme Court held that even in the absence of any
specific provision of law, "RTCs have general jurisdiction to
adjudicate all controversies except those expressly withheld from
their plenary powers. They have the power not only to take judicial
cognizance of a case instituted for judicial action for the first time,
but also to do so to the exclusion of all other courts at that stage.
Indeed, the power is not only original, but also exclusive."55
SECTION 119. Appeal. - Within the time and manner

prescribed by the Rules of Court, any party may
elevate the decision of the sanggunian concerned to
the proper Regional Trial Court having jurisdiction
over the area in dispute. The Regional Trial Court
shall decide the appeal within one (1) year from the
filing thereof. Pending final resolution of the disputed
area prior to the dispute shall be maintained and
continued for all legal purposes.
530 Municipality of Pateros v. Court of Appeals, G.R. No. 125646, September 10, 1999.
531 Municipality of Kananga v. Madrona, G.R. No. 141375, April 30,2003.
532 G.R. No. 142601, October 23,2006.
w G.R. No. 141375, April 30, 2003.
534
Municipality of Pateros v. Court of Appeals, G.R. No. 157714, June 16, 2009.
Article 17, Rule I of the Rules and Regulations

Implementing the Local Government Code provides the procedures
governing boundary disputes. The rules and regulations state:
cle 17. Proe Settling Boundary DIUte' -1

IThe following procedures shall govern the settlementl
o[f boundarydiputes&
~3. Technical description'

lof the boundaries of the,
ILGUs concerned;
!4.Written certification of
!the provincial, city, or
,municipal assessor, as
;the case may be, as to
If no amicable settlement is reached under Section 118 (e), a

certification shall be issued to that effect, and the dispute shall be
formally tried by the sanggunian concerned within 60 days from the
date of the aforementioned certification. In this regard, Rule III of the
Rules and Regulations Implementing the Local Government Code
shall govern. Only upon failure of these intermediary steps will
resort to the RTC follow, as specifically provided in Section 119 of the
Local Government Code.5
Chapter II
Local Initiative and Referendum
SECTION 120. Local InitiativeDefined. - Local initiative
is the legal process whereby the registered voters of a
local government unit may directly propose, enact, or
amend any ordinance.
The Constitution clearly includes not only ordinances but

resolutions as appropriate subjects of a local initiative. Section 32 of
Article VI provides in luminous language: "[tihe Congress shall, as
early as possible, provide for a system of initiative and referendum,
and the exceptions therefrom, whereby the people can directly
propose and enact laws or approve or reject any act or law or part
thereof passed by the Congress, or local legislative body..." An act
includes a resolution. The constitutional command to include acts
(i.e., resolutions) as appropriate subjects of initiative was
implemented by Congress when it enacted Republic Act No. 6735
entitled "An Act Providing for a System of Initiative and
Referendum and Appropriating Funds Therefor." Thus, Section 3 (a)
expressly includes resolutions as subjects of initiatives on local
legislations:
5mG.R. No. 157714, June 16,2009.

o-r- -uo--es -of -th-is Act,,

~the following terms shall mean; I
1po'ose amendmentstd ffi&C6

h tutiidn~or to.
propose and enact legislations through an
Jelection called for the purpose.
;There are three (3~systems,: of iritiative,i
,refers to a p etition -propoSing!

amendments to the Constitution.
ea.2. Initiative on statutes which refers to
,a petition proposing to enact a nationdald
4egislation; andb
ha.3. Initiative on local legislation which!
refers to a-petition- proposing to enact a
regional, provincial, city, municipal, or o
Rarangan lawe r20 ution, or ordinance.
Section 16 states that "Any proposition on ordinance or

resolution approved through the system of initiative and referendum
as herein provided shall not be repealed, modified or amended, by
the local legislative body concerned within six (6) months from the
date therefrom..." On January 16,1991, the COMELEC promulgated
Resolution No. 2300 entitled "In Re Rules and Regulations
Governing the Conduct of Initiative on the Constitution, and
Initiative and Referendum, on National and Local Laws." It likewise
recognized resolutions as proper subjects of initiatives. Section 5,
Article I of its Rules states: "Scope of power of initiative - The
power of initiative may be exercised to amend the Constitution, or to
enact a national legislation, a regional, provincial, city, municipal or
barangay law, resolution or ordinance."
There can hardly be any doubt that when Congress enacted

Republic Act No. 6735, it intended resolutions to be proper subjects
of local initiatives. 6
SECTION 121. Who May Exercise. - The power of local

initiative and referendum may be exercised by all
registered voters of the provinces, cities,
municipalities, and barangays.
There are statutory and conceptual demarcations between a

referendum and an initiative. An initiative is resorted to (or initiated)
by the people directly either because the law-making body fails or
refuses to enact the law, ordinance, resolution or act that they desire
or because they want to amend or modify one already existing.
Under Section 13 of Republic Act No. 6735 (1989), the local legislative
body is given the opportunity to enact the proposal. If it refuses or
neglects to do so within thirty (30) days from its presentation, the
proponents, through their duly-authorized and registered
representatives, may invoke their power of initiative, giving notice
thereof to the local legislative body concerned. Should the
proponents be able to collect the number of signed conformities
within the period granted by said statute, the Commission on
Elections "shall then set a date for the initiative (not referendum) at
which the proposition shall be submitted to the registered voters in
the local government unit concerned..." On the other hand, in a local
referendum, the law-making body submits to the registered voters of
its territorial jurisdiction, for approval or rejection, any ordinance or
resolution, which is duly enacted or approved by such law-making
authority. Said referendum shall be conducted also under the control
and direction of the Commission on Elections. 7
In other words, while initiative is entirely the work of the
electorate, referendum is begun and consented to by the law-making
body. Initiative is a process of law-making by the people themselves
without the participation and against the wishes of their elected
m Garcia v. Commission on Elections, G.R. No. 111230, September 30,1994.

W Subic Bay Metropolitan Authority v. Commission on Elections, G.R. No. 125416,
September 26,1996.
representatives, while referendum consists merely of the electorate

approving or rejecting what has been drawn up or enacted by a
legislative body. Hence, the process and the voting in an initiative are
understandably more complex than in a referendum where
expectedly the voters will simply write either "Yes" of "No" in the
ballot.5
From the above differentiation, it follows that there is need
for the COMELEC to supervise an initiative more closely, its
authority thereon extending not only to the counting and canvassing
of votes but also to seeing to it that the matter or act submitted to the
people is in the proper form and language so it may be easily
understood and voted upon by the electorate. In initiative and
referendum, the COMELEC exercises administration and supervision
of the process itself, akin to its powers over the conduct of elections.
These law-making powers belong to the people; hence the
Commission cannot control or change the substance or the content of
legislation. In the exercise of its authority, it may issue relevant and
adequate guidelines and rules for the orderly exercise of these
"people-power" features of our Constitution.3 9
SECTION 122. Procedure in Local Initiative. - (a) Not

less than one thousand (1,000) registered voters in case
of provinces and cities, one hundred (100) in case of
municipalities, and fifty (50) in case of barangays, may
file a petition with the sanggunian concerned
proposing the adoption, enactment, repeal, or
amendment of an ordinance.
(b) If no favorable action thereon is taken by the
sanggunian concerned within thirty (30) days from its
presentation, the proponents, through their duly
authorized and registered representatives, may invoke
their power of initiative, giving notice thereof to the
sanggunian concerned.
MSubic Bay Metropolitan Authority v. Commission on Elections, G.R. No. 125416,

September 26,1996.
5
" Subic Bay Metropolitan Authority v. Commission on Elections, G.R. No. 125416,
September 26,1996.
(c) The proposition shall be numbered serially starting

from Roman numeral I. The Comelec or its designated
representative shall extend assistance in the
formulation of the proposition.
(d) Two (2) or more propositions may be submitted in
an initiative.
(e) Proponents shall have ninety (90) days in case of
provinces and cities, sixty (60) days in case of
municipalities, and thirty (30) days in case of
barangays, from notice mentioned in subsection (b)
hereof to collect the required number of signatures.
(f) The petition shall be signed before the election
registrar, or his designated representatives, in the
presence of a representative of the proponent, and a
representative of the sanggunian concerned in a
public place in the local government unit, as the case
may be. Stations for collecting signatures may be
established in as many places as may be warranted.
(g) Upon the lapse of the period herein provided, the
Comelec, through its office in the local government
unit concerned, shall certify as to whether or not the
required number of signatures has been obtained.
Failure to obtain the required number defeats the
proposition.
(h) If the required number of signatures is obtained,
the Comelec shall then set a date for the initiative
during which the proposition shall be submitted to the
registered voters in the local government unit
concerned for their approval within sixty (60) days
from the date of certification by the Comelec, as
provided in subsection (g) hereof, in case of provinces
and cities, forty-five (45) days in case of
municipalities, and thirty (30) days in case of
barangays. The initiative shall then be held on the date
set, after which the results thereof shall be certified
and proclaimed by the Comelec.
SECTION 123. Effectivity of Local Propositions. - If the

proposition is approved by a majority of the votes
cast, it shall take effect fifteen (15) days after
certification by the Comelec as if affirmative action
thereon had been made by the sanggunian and local
chief executive concerned. If it fails to obtain said
number of votes, the proposition is considered
defeated.
SECTION 124. Limitations on Local Initiatives. - (a) The
power of local initiative shall not be exercised more
than once a year.
(b) Initiative shall extend only to subjects or matters
which are within the legal powers of the sanggunians
to enact.
(c) If at any time before the initiative is held, the
sanggunian concerned adopts in toto the proposition
presented and the local chief executive approves the
same, the initiative shall be canceled. However, those
against such action may, if they so desire, apply for
initiative in the manner herein provided.
SECTION 125. Limitations upon Sanggunians. - Any

proposition or ordinance approved through the
system of initiative and referendum as herein
provided shall not be repealed, modified or amended
by the sanggunian concerned within six (6) months
from the date of the approval thereof, and may be
amended, modified or repealed by the sanggunian
within three (3) years thereafter by a vote of three-
fourths (3/4) of all its members: Provided, That in case
of barangays, the period shall be eighteen (18) months
after the approval thereof.
SECTION 126. Local Referendum Defined. - Local
referendum is the legal process whereby the
registered voters of the local government units may
approve, amend or reject any ordinance enacted by
the sanggunian. The local referendum shall be held
under the control and direction of the Comelec within

sixty (60) days in case of provinces and cities, forty-
five (45) days in case of municipalities and thirty (30)
days in case of barangays. The Comelec shall certify
and proclaim the results of the said referendum.
SECIION 127. Authority of Courts. - Nothing in this
Chapter shall prevent or preclude the proper courts
from declaring null and void any proposition
approved pursuant to this Chapter for violation of the
Constitution or want of capacity of the sanggunian
concerned to enact the said measure.
The Barangay Assembly shall recommend measures to be

enacted by the sanggunian, and decide on whether to adopt
initiative. Section 398 provides:
SECTION 398. Powers of the BarangayAssembly. - The

barangay assembly shall:
(a) Initiate legislative processes by
recommending to the sangguniang
barangay the adoption of measures for
the welfare of the barangay and the city
or municipality concerned;
(b) Decide on the adoption of initiative
as a legal process whereby the
registered voters of the barangay may
directly propose, enact, or amend any
ordinance; and
(c) Hear and pass upon the semestral
report of the sangguniang barangay
concerning its activities and finances.
BOOK II
LOCAL TAXATION AND FISCAL MATTERS
The principles of local taxation and fiscal matters have been

laid out in Book II of the Local Government Code. The authors of the
Code, alert to the financial repercussions of increasing the
responsibilities of local governments, engraved certain principles in
the law. Section 3 (d) in part provides that:
(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.
The finances needed for these new responsibilities come not

only from local efforts, but also, consistent with the directives of the
Constitution, share from both national taxes and the development of
resources within the local governments' territorial boundaries.
In the delivery of basic services, the Code also provides that:
The basic services and facilities hereinabove
enumerated shall be funded from the share of local
government units in the proceeds of national taxes
and other local revenues and funding support from
the National Government, its instrumentalities and
government-owned or -controled corporations which
are tasked by law to establish and maintain such
services or facilities. Any fund or resource available
for the use of local government units shall be first
Local Taxation and Fiscal Matters 399
allocated for the provision of basic services or facilities

enumerated in subsection (b) hereof before applying
the same for other purposes, unless otherwise
provided in this Code. 0
The power to generate their own revenue and receive shares
from national government income and activities are reiterated in
Section 18 of the Code:
SECTION 18. Power to Generateand Apply Resources. -

Local government units shall have the power and
authority to establish an organization that shall be
responsible for the efficient and effective
implementation of their development plans, program
objectives and priorities; to create their own sources of
revenues and to levy taxes, fees, and charges which
shall accrue exclusively for their use and disposition
and which shall be retained by them; to have a just
share in national taxes which shall be automatically
and directly released to them without need of any
further action; to have an equitable share in the
proceeds from the utilization and development of the
national wealth and resources within their respective
territorial jurisdictions including sharing the same
with the inhabitants by way of direct benefits; to
acquire, develop, lease, encumber, alienate, or
otherwise dispose of real or personal property held by
them in their proprietary capacity and to apply their
resources and assets for productive, developmental, or
welfare purposes, in the exercise or furtherance of
their governmental or proprietary powers and
functions and thereby ensure their development into
self-reliant communities and active participants in the
attainment of national goals.
50 Republic Act No. 7160 (1991), § 17 (g).

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Other Purposesof Income
Local government income is also a measure that can

determine whether a local government can be created, converted into
other units, or abolished.541
Book I of the Local Government Code lays down guidelines
for the interpretation of Book II. Section 5 provides that, "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."
Title I
LOCAL GOVERNMENT TAXATION
Chapter I
General Provisions
SECTION 128. Scope. - The provisions herein shall
govern the exercise by provinces, cities,
municipalities, and barangays of their taxing and
other revenue-raising powers.
SECTION 129. Power to Create Sources of Revenue. -
Each local government unit shall exercise its power to
create its own sources of revenue and to levy taxes,
fees, and charges subject to the provisions herein,
consistent with the basic policy of local autonomy.
Such taxes, fees, and charges shall accrue exclusively
to the local government units.
There is a very clear constitutional basis for local government

finances. The mandate to enact a local government code in Article X
of the Constitution provides that the code shall "allocate among the
different local government units their powers, responsibilities, and
541Republic Act No. 7160 (1991), § 8-9.

resources." Sections 5 to 7 of the same Article provide a basis for local

government taxation and shares from national income and the
exploitation of natural resources:
ON 5.a lvermenti
tpower to create its own, sources6doftorevenu~es
sUch
and-
ldi-
to
ulevy taxes, fees, and charges subj o u ui e es
and'limitations as theI Congress may provide I
,onsitentwit the' basic polic 'of local autonboy,
Such taxes, fees, and charges shall accrue exclusively;
to the locagovernm'ents.
SECTION 6. Local government units shall have a just
he osdtirined by law, in the national taxes
i which shall be automatically released to them.
nSECTION 7. Local governments shall be entitled to s
,equitable share in, the proceeds of the utilization and t
idevelopment of the national ,wealth wihin their o
respctive areas, in the manner prvided by law,,
~including sharing the same with the inhabitants' by
:sway of direct benefits.
Phiipin la.Jst efre h oa oenen oeo 91wn
Under the changes introduced by the Constitution, the tax

power of local governments must be deemed to exist subject to
statutory limitations and guidelines that Congress may provide. This
rule will safeguard theviability and self-sufficiency of local
government units by directly granting them general and broad tax
powers.w
The Constitution altered very well-established doctrines in
Philippine law. just before the Local Government Code of 1991 went
into effect, the Supreme Court berated local government efforts to tax
an instrumentality of government. In Basco v. Philippine Amusements
and Gaming CorporationP 43 the Court, citing Us case law, said that an
instrumentality of government like the PAGCOR is exempt from
local taxes. Otherwise, said the Court its operation might be
542
Mail Electric Company v. Province of Laguna, G.R. No. 131359, May 5, 1999.
w4G.R No. 91649, May 14,1991.
burdened, impeded or subjected to control by a mere local

government. According to the Court, the power to tax "cannot be
allowed to defeat an instrumentality or creation of the very entity
which has the inherent power to wield it." The Court also stated that
municipal corporations have no inherent right to impose taxes and
that the power of local government to impose taxes and fees is
always subject to limitations which Congress may provide by law. As
case law will illustrate, these doctrines are no longer good law.
Statutes have also provided local governments with
additional income. Republic Act No. 7643 (1992) amended Section
282 of the National Internal Revenue Code, which now provides:
Nationatinternal reeu collected, and not appliedas,

erreinabove provided or otherwise specially disposed
lof by law- shaHll accrue to the Natinal, Ireasury-n
sall be available for th,, eneral p~urposes ofte
lCovernmient, with the exceptionb~f thaounts set
aIpatI Iway 11f allotment 4 s pr,ovided, forL, hder
Republic';Act No. 7160, otherwise knownIM'as the Local]
Gvernment Codeof 1991.io nd
nh addition to the Internal revenue allotment as':
pnided for irithe preceding paragraphfiftjpercn
(50%) of the national taxes Collected tinder Sections
:100, 102,112, 113, and 114 of this Code i.ex~cess of the"
iincrease in collections 'for the immediately precedirn
'Year, shall be distibuted .as follows', (a) Teny
percent (20%) shall accrue to the city or ruicipality'
wh'ere such taxes are collected and shall be allocated'
i-accordance' with'Sectiont 150 of Republic Act N0&
17160, otherwise known as the Local Government Code,
of .1991;
!the and (b) Eighty percenit (80%) shall accrue to',
National Government.
Statutes also constrict local governments' use of their

resources. The Comprehensive Dangerous Drugs Act of 2002
(Republic Act No. 9165) provides:
SECTION 130. Fundamental Principles. - The

following fundamental principles shall govern the
exercise of the taxing and other revenue-raising
powers of local government units:
(a) Taxation shall be uniform in each
local government unit;

(b) Taxes, fees, charges and other
impositions shall:
(1) be equitable and
based as far as
practicable on the
taxpayer's ability to pay;
(2) be levied and
collected only for public
purposes;
(3) not be unjust,
excessive, oppressive, or
confiscatory;
(4) not be contrary to
law, public policy,
national economic
policy, or in restraint of
trade;
(c) The collection of local taxes, fees,

charges and other impositions shall in
no case be let to any private person;
(d) The revenue collected pursuant to
the provisions of this Code shall inure
solely to the benefit of, and be subject
to the disposition by, the local
government unit levying the tax, fee,
charge or other imposition unless
otherwise specifically provided herein;
and,
(e) Each local government unit shall, as
far as practicable, evolve a progressive
system of taxation.
SECTION 131. Definition of Terms. - When used in
this Title, the term:
(a) "Agricultural Product" includes the
yield of the soil, such as corn, rice,
wheat, ry, hay, coconuts, sugarcane,
tobacco, root crops, vegetables, fruits,
flowers, and their by-products;
ordinary salt; all kinds of fish; poultry;
and livestock and animal products,
whether in their original form or not.
The phrase "whether in their original form or not" refers to

the transformation of said products by the farmer, fisherman,
producer or owner through the application of processes to preserve
or otherwise to prepare said products for market such as freezing,
drying, salting, smoking, or stripping for purposes of preserving or
otherwise preparing said products for market;
(b) "Amusement" is a pleasurable

diversion and entertainment. It is
synonymous to relaxation, avocation,

pastime, or fun;
(c) "Amusement Places" include
theaters, cinemas, concert halls,
circuses and other places of amusement
where one seeks admission to entertain
oneself by seeing or viewing the show
or performances;544
(d) "Business" means trade or
commercial activity regularly engaged
in as a means of livelihood or with a
view to profit;
A local tax on businesses is authorized under Section 143 of

the Local Government Code. The word "business" is defined under
Section 131 (d) as "trade or commercial activity regularly engaged in
as a means of livelihood or with a view to profit." This definition is
important because Section 143 allows local government units to
impose local taxes on businesses other than those specified under the
provision. Moreover, even those business activities specifically
enumerated in Section 143 are themselves susceptible to broad
interpretation.545
-44Theaters, cinemas, concert halls, circuses, and boxing stadia are bound by a
common characteristic in that they are all venues primarily for the staging of
spectacles or the holding of public shows, exhibitions, performances, and other
events meant to be viewed by an audience. Accordingly, 'other places of
amusement' must be interpreted in light of the typifying characteristic of being
venues "where one seeks admission to entertain oneself by seeing or viewing the
show or performances" or being venues primarily used to stage spectacles or hold
public shows, exhibitions, performances, and other events meant to be viewed by an
audience. As such, resorts, swimming pools, bath houses, hot springs and tourist
spots cannot be considered venues primarily "where one seeks admission to
entertain oneself by seeing or viewing the show or performances." They may be
venues where people are visually engaged, they are not primarily venues for their
proprietors or operators to actively display, stage or present shows and/or
performances. See Pelizloy Realty Corporation v. The Province of Benguet, G.R. No.
183137, April 19, 2013.
w Yamane v. BA Lepanto Condominium, G.RI No. 154993, January 25,2005.
(e) "Banks and other financial

institutions" include non-bank
financial intermediaries, lending
investors, finance and investment
companies, pawnshops, money shops,
insurance companies, stock markets,
stock brokers and dealers in securities
and foreign exchange, as defined under
applicable laws, or rules and
regulations thereunder;
(f) "Capital Investment" is the capital
which a person employs in any
undertaking, or which he contributes to
the capital of a partnership,
corporation, or any other juridical
entity or association in a particular
taxing jurisdiction;
(g) "Charges" refers to pecuniary
liability, as rents or fees against persons
or property;
(h) "Contractor" includes persons,
natural or juridical, not subject to
professional tax under Section 139 of
this Code, whose activity consists
essentially of the sale of all kinds of
services for a fee, regardless of whether
or not the performance of the service
calls for the exercise or use of the
physical or mental faculties of such
contractor or his employees.
As used in this section, the term "contractor" shall include

general engineering, general building and specialty contractors as
defined under applicable laws; filling, demolition and salvage works
contractors; proprietors or operators of mine drilling apparatus;
proprietors or operators of dockyards; persons engaged in the
installation of water system, and gas or electric light, heat, or power;
proprietors or operators of smelting plants, engraving, plating, and

plastic lamination establishments; proprietors or operators of
establishments for repairing, repainting, upholstering, washing or
greasing of vehicles, heavy equipment, vulcanizing, recapping and
battery charging; proprietors or operators of furniture shops and
establishments for planning or surfacing and recutting of lumber,
and sawmills under contract to saw or cut logs belonging to others;
proprietors or operators of dry cleaning or dyeing establishments,
steam laundries, and laundries using washing machines; proprietors
or owners of shops for the repair of any kind of mechanical and
electrical devices, instruments, apparatus, or furniture and shoe
repairing by machine or any mechanical contrivance; proprietors or
operators of establishments or lots for parking purposes; proprietors
or operators of tailor shops, dress shops, milliners and hatters,
beauty parlors, barbershops, massage clinics, sauna, Turkish and
Swedish baths, slenderizing and building salons and similar
establishments; photographic studios; funeral parlors; proprietors or
operators of hotels, motels, and lodging houses; proprietors or
operators of arrastre and stevedoring, warehousing, or forwarding
establishments; master plumbers, smiths, and house or sign painters;
printers, bookbinders, lithographers; publishers except those
engaged in the publication or printing of any newspaper, magazine,
review or bulletin which appears at regular intervals with fixed
prices for subscription and sale and which is not devoted principally
to the publication and advertisements; business agents, private
detective or watchman agencies, commercial and immigration
brokers, and cinematographic film owners, lessors and distributors.
(i) "Corporation" includes

partnerships, no matter how created or
organized, joint-stock companies, joint
accounts (cuentas en participacion),
associations or insurance companies
but does not include general
professional partnerships and a joint
venture or consortium formed for the
purpose of undertaking construction
projects or engaging in petroleum, coal,
geothermal, and other energy
operations pursuant to an operating or

consortium agreement under a service
contract with the government. General
professional partnerships are
partnerships formed by persons for the
sole purpose of exercising their
common profession, no part of the
income of which is derived from
engaging in any trade or business.
The term "resident foreign" when applied to a corporation

means a foreign corporation not otherwise organized under the laws
of the Philippines but engaged in trade or business within the
Philippines;
(j) "Countryside and Barangay

Business Enterprise" refers to any
business entity, association, or
cooperative registered under the
provisions of Republic Act Numbered
Sixty-eight hundred ten (R.A. No.
6810), otherwise known as "Magna
Carta For Countryside And Barangay
Business Enterprises (Kalakalan 20)";
(k) "Dealer" means one whose business
is to buy and sell merchandise, goods,
and chattels as a merchant. He stands
immediately between the producer or
manufacturer and the consumer and
depends for his profit not upon the
labor he bestows upon his commodities
but upon the skill and foresight with
which he watches the market;
(1) "Fee" means a charge fixed by law
or ordinance for the regulation or
inspection of a business or activity;
(m)"Franchise" is a right or privilege,

affected with public interest which is
conferred upon private persons or
corporations, under such terms and
conditions as the government and its
political subdivisions may impose in
the interest of public welfare, security,
and safety;
(n) "Gross Sales or Receipts" include
the total amount of money or its
equivalent representing the contract
price, compensation or service fee,
including the amount charged or
materials supplied with the services
and deposits or advance payments
actually or constructively received
during the taxable quarter for the
services performed or to be performed
for another person excluding discounts
if determinable at the time of sales,
sales return, excise tax, and value-
added tax (VAT);
(o) "Manufacturer" includes every
person who, by physical or chemical
process, alters the exterior texture or
form or inner substance of any raw
material or manufactured or partially
manufactured product in such manner
as to prepare it for special use or uses
to which it could not have been put in
its original condition, or who by any
such process, alters the quality of any
such raw material or manufactured or
partially manufactured products so as
to reduce it to marketable shape or
prepare it for any of the use of
industry, or who by any such process,
combines any such raw material or
manufactured or partially
manufactured products with other

materials or products of the same or of
different kinds and in such manner that
the finished products of such process
or manufacture can be put to a special
use or uses to which such raw material
or manufactured or partially
manufactured products in their
original condition could not have been
put, and who in addition, alters such
raw material or manufactured or
partially manufactured products, or
combines the same to produce such
finished products for the purpose of
their sale or distribution to others and
not for his own use or consumption;
(p) "Marginal Farmer or Fisherman"
refers to an individual engaged in
subsistence farming or fishing which
shall be limited to the sale, barter or
exchange of agricultural or marine
products produced by himself and his
immediate family;
The Constitution does not specifically provide a definition of

the terms "subsistence" or "marginal" fishermen. These terms should
be construed in their general and ordinary sense. A marginal
fishernan is one engaged in fishing whose margin of return or reward
in his harvest of fish, as measured by existing price levels, is barely
sufficient to yield a profit or cover the cost of gathering the fish,
while a subsistence fisherman is one whose catch yields but the
irreducible minimum for his livelihood.34 6
(q) "Motor Vehicle" means any vehicle

propelled by any power other than
54
Tano v. Socrates, G.R. No. 110249, August 21,1997.
muscular power using the public

roads, but excluding road rollers,
trolley cars, street-sweepers, sprinklers,
lawn mowers, bulldozers, graders,
fork-lifts, amphibian trucks, and cranes
if not used on public roads, vehicles
which run only on rails or tracks, and
tractors, trailers, and traction engines of
all kinds used exclusively for
agricultural purposes;
(r) "Municipal Waters" includes not
only streams, lakes, and tidal waters
within the municipality, not being the
subject of private ownership and not
comprised within the national parks,
public forest, timber lands, forest
reserves or fishery reserves, but also
marine waters included between two
lines drawn perpendicularly to the
general coastline from points where the
boundary lines of the municipality or
city touch the sea at low tide and a
third line parallel with the general
coastline and fifteen (15) kilometers
from it. Where two (2) municipalities
are so situated on the opposite shores
that there is less than fifteen (15)
kilometers of marine waters between
them, the third line shall be equally
distant from opposite shores of their
respective municipalities;
(s) "Operator" includes the owner,
manager, administrator, or any other
person who operates or is responsible
for the operation of a business
establishment or undertaking;
(t) "Peddler" means any person who,
either for himself or on commission,
travels from place to place and sells his

goods or offers to sell and deliver the
same. Whether a peddler is a wholesale
peddler or a retail peddler of a
particular commodity shall be
determined from the definition of
wholesale dealer or retail dealer as
provided in this Title;
(u) "Persons" means every natural or
juridical being, susceptible of rights
and obligations or of being the subject
of legal relations;
(v) "Residents" refer to natural persons
who have their habitual residence in
the province, city, or municipality
where they exercise their civil rights
and fulfil their civil obligations, and to
juridical persons for which the law or
any other provision creating or
recognizing them fixes their residence
in a particular province, city, or
municipality. In the absence of such
law, juridical persons are residents of
the province, city, or municipality
where they have their legal residence
or principal place of business or where
they conduct their principal business or
occupation;
(w) "Retail" means a sale where the
purchaser buys the commodity for his
own consumption, irrespective of the
quantity of the commodity sold;
(x) "Vessel" includes every type of
boat, craft, or other artificial
contrivance used, or capable of being
used, as a means of transportation on
water;
(y) "Wharfage" means a fee assessed

against the cargo of a vessel engaged in
foreign or domestic trade based on
quantity, weight, or measure received
and/or discharged by vessel; and
Section 133 (e) prohibits the imposition, in the guise of

wharfage, of fees - as well as all other taxes or charges in any form
whatsoever - on goods or merchandise. It is irrelevant if the fees
imposed are actually for police surveillance on the goods, because
any other form of imposition on goods passing through the territorial
jurisdiction of the municipality is clearly prohibited by Section 133
(e). Under Section 131 (y) wharfage is defined as "a fee assessed
against the cargo of a vessel engaged in foreign or domestic trade
based on quantity, weight, or measure received and/or discharged
by vessel." A wharfage does not lose its basic character by being
labeled as a service fee "for police surveillance on all goods."5 47
(z) "Wholesale" means a sale where the

purchaser buys or imports the
commodities for resale to persons other
than the end user regardless of the
quantity of the transaction.
SECTION 132. Local Taxing Authority. - The power to
impose a tax, fee, or charge or to generate revenue
under this Code shall be exercised by the sanggunian
of the local government unit concerned through an
appropriate ordinance.
SECTION 133. Common Limitations on the Taxing
Powers of Local Government Units. - Unless otherwise
provided herein, the exercise of the taxing powers of
provinces, cities, municipalities, and barangays shall
not extend to the levy of the following-
547
Palma Development Corporation v. Municipality of Malangas, G.R. No. 152492,
October 16,2003.
(a) Income tax, except when levied on

banks and other financial institutions;
Cagayan Electric Power and Light Co., Inc. (CEPALCO)

challenged Cagayan de Oro City's ordinance which imposed a tax on
the lease or rental of electric and/or telecommunication posts, poles
or towers by pole owners to other pole users at the rate of ten (10)
percent of the annual rental income derived therefrom. CEPALCO
insisted that the ordinance is an imposition of an income tax which is
prohibited by Section 133 (a) of the Local Government Code.
Unfortunately for CEPALCO, the Supreme Court agreed with the
ruling of the trial and appellate courts that Ordinance No. 9503-2005
is a tax on business. CEPALCO's act of leasing for a consideration the
use of its posts, poles or towers to other pole users falls under the
Local Government Code's definition of business. Business is defined
by Section 131 (d) of the Local Government Code as "trade or
commercial activity regularly engaged in as a means of livelihood or
with a view to profit." In relation to Section 131 (d), Section 143 (h) of
the Local Government Code provides that the city may impose taxes,
fees, and charges on any business which is not specified in Section
143 (a) to (g) and which the sanggunian concerned may deem proper
to tax.
(b) Documentary stamp tax;

(c) Taxes on estates, inheritance, gifts,
legacies and other acquisitions mortis
causa, except as otherwise provided
herein;
(d) Customs duties, registration fees of
vessel and wharfage on wharves,
tonnage dues, and all other kinds of
customs fees, charges and dues except
wharfage on wharves constructed and
maintained by the local government
unit concerned;
(e) Taxes, fees, and charges and other
impositions upon goods carried into or
out of, or passing through, the
territorial jurisdictions of local

government units in the guise of
charges for wharfage, tolls for bridges
or otherwise, or other taxes, fees, or
charges in any form whatsoever upon
such goods or merchandise;
Under Sections 153 and 155, local government units may

prescribe the terms and conditions for the imposition of toll fees or
charges for the use of any public road, pier or wharf funded and
constructed by them. A service fee imposed on vehicles using
municipal roads leading to the wharf is valid. However, Section 133
(e) prohibits the imposition, in the guise of wharfage, of fees- as well
as all other taxes or charges in any form whatsoever-on goods or
merchandise. It is, therefore, irrelevant if the fees imposed are
actually for police surveillance on the goods, because any other form
of imposition on goods passing through the territorial jurisdiction of
the municipality is clearly prohibited by Section 133 (e).
(f) Taxes, fees or charges on

agricultural and aquatic products when
sold by marginal farmers or fishermen;
(g) Taxes on business enterprises
certified to by the Board of Investments
as pioneer or non-pioneer for a period
of six (6) and four (4) years,
respectively from the date of
registration;
(h) Excise taxes on articles enumerated
under the National Internal Revenue
Code, as amended, and taxes, fees or
charges on petroleum products;
The National Internal Revenue Code levies a tax on all quarry

resources, regardless of origin, whether extracted from public or
private land. A province may not ordinarily impose taxes on stones,
sand, gravel, earth and other quarry resources, because they are
already taxed under the National Internal Revenue Code. However,
the province can impose a tax on stones, sand, gravel, earth and other
quarry resources extracted from public land because it is expressly

empowered to do so under the Local Government Code. It may not
tax stones, sand, gravel, earth and other quarry resources extracted
from private land because of the limitation provided by Section 133
of the Code in relation to Section 151 of the National Internal
Revenue Code. 54 Local government units are also the only
government entities allowed to reclaim areas and may derive income
therefrom.
(i) Percentage or value-added tax

(VAT) on sales, barters or exchanges or
similar transactions on goods or
services except as otherwise provided
herein;
(j) Taxes on the gross receipts of
transportation contractors and persons
engaged in the transportation of
passengers or freight by hire and
common carriers by air, land or water,
except as provided in this Code;
The issue in First Philippine Industrial Corporation v. Court of

Appeals 49 was whether a pipeline operator "engaged in the business
of transporting petroleum products from the Batangas refineries, via
pipeline, to Sucat and JTF Pandacan Terminals" was exempt from
business taxes under the Local Government Code. The City of
Batangas argued that petitioner cannot be exempt from taxes under
Section 133 (j) of the Code because the exemption applies only to
"transportation contractors and persons engaged in the
transportation by hire and common carriers by air, land and water."
The City argued that the term "common carrier" refers only to
ordinary carriers such as trucks, trains, ships and the like, and not to
pipelines.
The Supreme Court disagreed. It explained that a "common
carrier" may be defined as one who holds himself out to the public as
5
a Bulacan v. Court of Appeals, G.R. No. 126232, November 27,1998.
-49G.RI No. 125948, December 29,1998.
engaged in the business of transporting persons or property from

place to place, for compensation, offering his services to the public
generally. It examined Article 1732 of the Civil Code which defines a
"common carrier" as "any person, corporation, firm or association
engaged in the business of carrying or transporting passengers or
goods or both, by land, water, or air, for compensation, offering their
services to the public." The Court concluded that the petitioner has
satisfied the definition of a common carrier because it is engaged in
the business of transporting or carrying goods, i.e. petroleum
products, for hire as a public employment. It undertakes to carry for
all persons (that is, to all persons who choose to employ its services),
and transports the goods by land and for compensation. The
definition of "common carriers" in the Civil Code does not make any
distinction as to the means of transportation, as long as it is by land,
water or air. It does not provide that the transportation of the
passengers or goods should be by motor vehicle.
(k) Taxes on premiums paid by way of

reinsurance or retrocession;
(1) Taxes, fees or charges for the
registration of motor vehicles and for
the issuance of all kinds of licenses or
permits for the driving thereof, except
tricycles;
(m) Taxes, fees, or other charges on
Philippine products actually exported,
except as otherwise provided herein;
(n) Taxes, fees, or charges, on
Countryside and Barangay Business
Enterprises and cooperatives duly
registered under R.A. No. 6810 and
Republic Act Numbered Sixty-nine
hundred thirty-eight (R.A. No. 6938)
otherwise known as the "Cooperative
Code of the Philippines" respectively;
and
(o) Taxes, fees or charges of any kind
on the National Government, its
agencies and instrumentalities, and

local government units.
Reclaimed lands are part of the public domain and are

exempt from payment of real property taxes.550
Chapter II
Specific Provisions on the Taxing and Other Revenue-
Raising Powers of Local Government Units
Article I
Provinces
SECTION 134. Scope of Taxing Powers. - Except as
otherwise provided in this Code, the province may
levy only the taxes, fees, and charges as provided in
this Article.
SECTION 135. Tax on Transfer of Real Property
Ownership. - (a) The province may impose a tax on
the sale, donation, barter, or on any other mode of
transferring ownership or title of real property at the
rate of not more than fifty percent (50%) of the one
percent (1%) of the total consideration involved in the
acquisition of the property or of the fair market value
in case the monetary consideration involved in the
transfer is not substantial, whichever is higher. The
sale, transfer or other disposition of real property
pursuant to R.A. No. 6657 shall be exempt from this
tax.
(b) For this purpose, the Register of Deeds of the
province concerned shall, before registering any deed,
require the presentation of the evidence of payment of
this tax. The provincial assessor shall likewise make
the same requirement before cancelling an old tax
declaration and issuing a new one in place thereof.
50 Republic of the Philippines v. Philippine Reclamation Authority, G.R. No. 191109,

July 18, 2012.
Notaries public shall furnish the provincial treasurer

with a copy of any deed transferring ownership or
title to any real property within thirty (30) days from
the date of notarization.
It shall be the duty of the seller, donor, transferor,
executor or administrator to pay the tax herein
imposed within sixty (60) days from the date of the
execution of the deed or from the date of the
decedent's death.
SECTION 136. Tax on Business of Printing and
Publication. - The province may impose a tax on the
business of persons engaged in the printing and/or
publication of books, cards, posters, leaflets, handbills,
certificates, receipts, pamphlets, and others of similar
nature, at a rate not exceeding fifty percent (50%) of
one percent (1%) of the gross annual receipts for the
preceding calendar year.
In the case of a newly started business, the tax shall
not exceed one-twentieth (1/20) of one percent (1%) of
the capital investment. In the succeeding calendar
year, regardless of when the business started to
operate, the tax shall be based on the gross receipts for
the preceding calendar year, or any fraction thereof, as
provided herein.
The receipts from the printing and/or publishing of
books or other reading materials prescribed by the
Department of Education, Culture and Sports as
school texts or references shall be exempt from the tax
herein imposed.
SECTION 137. FranchiseTax. - Notwithstanding any
exemption granted by any law or other special law,
the province may impose a tax on businesses enjoying
a franchise, at a rate not exceeding fifty percent (50%)
of one percent (1%) of the gross annual receipts for the
preceding calendar year based on the incoming
receipt, or realized, within its territorial jurisdiction.
In the case of a newly started business, the tax shall

not exceed one-twentieth (1/20) of one percent (1%) of
the capital investment. In the succeeding calendar
year, regardless of when the business started to
operate, the tax shall be based on the gross receipts for
the preceding calendar year, or any fraction thereon,
as provided herein.
In a general sense, a franchise is a privilege conferred by

government authority, which does not belong to citizens generally as
a matter of common right. Specifically, it may refer to a general or
primary franchise, or to a special or secondary franchise. The former
relates to the right to exist as a corporation, by virtue of duly
approved articles of incorporation, or a charter pursuant to a special
law creating the corporation. The right under a primary or general
franchise is vested in the individuals who compose the corporation
and not in the corporation itself. On the other hand, the latter refers
to the right or privileges conferred upon an existing corporation such
as the right to use the streets of a municipality to lay pipes of tracks,
erect poles or string wires. The rights under a secondary or special
franchise are vested in the corporation and may ordinarily be
conveyed or mortgaged under a general power granted to a
corporation to dispose of its property, except such special or
secondary franchises as are charged with a public use.551
While the Court has referred to tax exemptions contained in
special franchises as being in the nature of contracts and a part of the
inducement for carrying on the franchise, these exemptions,
nevertheless are far from being strictly contractual in nature.
Contractual tax exemptions, in the real sense of the term and where
the non-impairment clause of the Constitution can rightly be
invoked, are those agreed to by the taxing authority in contracts,
such as those contained in government bonds or debentures, lawfully
entered into by them under enabling laws in which the government,
acting in its private capacity, sheds its cloak of authority and waives
its governmental immunity. Truly, tax exemptions of this kind may
not be revoked without impairing the obligations of contracts. These
551
National Power Corporation v. City of Cabanatuan, G.R. No. 149110, April 9,
2003.
contractual tax exemptions, however, are not to be confused with tax

exemptions granted under franchises. A franchise partakes the
nature of a grant which is beyond the purview of the non-
impairment clause of the Constitution. Indeed, Article XII, Section 11
of the 1987 Constitution, like its precursor provisions in the 1935 and
the 1973 Constitutions, is explicit that no franchise for the operation
of a public utility shall be granted except under the condition that
such privilege shall be subject to amendment, alteration or repeal by
Congress as and when the common good so requires.552
In Section 131 (m) of the Code, Congress defined a franchise
in the sense of a secondary or special franchise. This is to avoid any
confusion when the word franchise is used in the context of taxation.
As commonly used, a franchise tax is a tax on the privilege of
transacting business in the state and exercising corporate franchises
granted by the state. It is not levied on the corporation simply for
existing as a corporation, upon its property or its income, but on its
exercise of the rights or privileges granted to it by the government.
Hence, a corporation need not pay franchise tax from the time it
ceased to do business and exercise its franchise. It is within this
context that the phrase tax on businesses enjoying a franchise in
Section 137 of the LGC should be interpreted and understood.5 3
In National Power Corporation v. City of Cabanatuan,5 a
collection suit was filed against NAPOCOR, a government-owned
and controlled corporation for payment of the assessed franchise tax
due, plus surcharge and interest. The City of Cabanatuan alleged that
NAPOCOR's exemption from local taxes has already been
withdrawn by the Local Government Code. NAPOCOR, however,
insists that it is excluded from the coverage of the franchise tax
because its stocks are wholly owned by the National Government
and its charter characterized it as a non-profit organization. The court
rejected NAPOCOR's argument and ruled that a franchise tax is
imposed based not on the ownership but on the exercise by the
corporation of a privilege to do business. The taxable entity is the
55
2 National Power Corporation v. City of Cabanatuan, G.R. No. 149110, April 9,
2003.
5
m National Power Corporation v. City of Cabanatuan, G.R. No. 149110, April 9,
2003.
554
National Power Corporation v. City of Cabanatuan, G.R. No. 149110, April 9,
2003.
corporation, which exercises the franchise, and not the individual

stockholders. By virtue of its charter, petitioner was created as a
separate and distinct entity from the National Government. It can sue
and be sued under its own name, and can exercise all the powers of a
corporation under the Corporation Code.
In the case at bar, petitioner was created to undertake the
development of hydroelectric generation of power and the
production of electricity from nuclear, geothermal and other sources,
as well as the transmission of electric power on a nationwide basis.
Pursuant to this mandate, petitioner generates power and sells
electricity in bulk. Certainly, these activities do not partake of the
sovereign functions of the government. They are purely private and
commercial undertakings, albeit imbued with public interest. The
public interest involved in its activities, however, does not distract
from the true nature of the petitioner as a commercial enterprise, in
the same league with similar public utilities like telephone and
telegraph companies, railroad companies, water supply and
irrigation companies, gas, coal or light companies, power plants, ice
plant among others; all of which are declared by this Court as
ministrant or proprietary functions of government aimed at
advancing the general interest of society. Section 137 of the LGC
clearly states that local governments can impose franchise tax
notwithstanding any exemption granted by any law or other special
law. This particular provision of the LGC does not admit any
exception.~55
NAPOCOR's Liabilityfor FranchiseTaxes Ended

Republic Act No. 9136 transferred the electrical transmission
function of the National Power Corporation to the National
Transmission Corporation (TRANSCO) in 2001. Since the local
franchise tax is imposed on the privilege of operating a franchise, the
tax is not a liability of the NPC.56 A local government cannot levy on
the transmission facilities to satisfy the tax assessment against NPC
s5,National Power Corporation v. City of Cabanatuan, G.R. No. 149110, April 9,

2003.
5%National Power Corporaton v. Provincial Government of Bataan, G.R. No. 180654,
April 21, 2014.
because the same law transferred ownership of those facilities to

TRANSCO.W7
Non-Profit Entities are Subject to FranchiseTax

Non-profit entities are likewise subject to franchise tax. In
City of Iriga v. CamarinesSur III Electric Cooperative,5 CASURECO III,
a non-profit cooperative, insisted that only entities engaged in
business, and not non-profit entities like itself, are subject to the said
franchise tax. The Court rejected petitioner's contention and declared
that a franchise tax is a tax on the privilege of transacting business in
the state and exercising corporate franchises granted by the state. It is
not levied on the corporation simply for existing as a corporation,
upon its property or its income, but on its exercise of the rights or
privileges granted to it by the government. To be liable for local
franchise tax, the following requisites should concur: (1) that one has
a "franchise" in the sense of a secondary or special franchise; and (2)
that it is exercising its rights or privileges under this franchise within
the territory of the pertinent local government unit. The following
requirements are present in the case at bar. Hence, CASURECO III is
liable to pay franchise tax notwithstanding its non-profit nature.
The Supreme Court held that Section 137 is intended to
revoke existing exemptions enjoyed by certain entities. In Meralco v.
Province of Laguna,539 it held that the Local Government Code of 1991
incorporated and adopted, by and large the provisions of the now
repealed Local Tax Code, which had been in effect since July 1,
1973. 56 Section 137 of the Code explicitly authorizes provincial
governments, notwithstanding any exemption granted by any law or
other special law .... (to) impose a tax on businesses enjoying a
franchise.
Taken together with Section 193, it becomes evident that
Congress intended to remove tax exemptions or incentives that had
W7 National Power Corporaton v. Provincial Government of Bataan, G.R No. 180654,

April 21, 2014.
5 G.R. No. 192945, September 5,2012.
5 G.R. No. 131359, May 5,1999.
5
0Presidential Decree No. 231 (1973).
been enjoyed by certain entities. The Court also pointed to the

general repealing clause as another index of Congress' intent:
There is nothing to stop Congress, however, from restoring

these exemptions. The Supreme Court has held that Section 137 does
not state that it covers future exemptions. The grant of taxing powers
to local government units under the Constitution and the Local
Government Code "does not affect the power of Congress to grant
exemptions to certain persons, pursuant to a declared national
policy."561
In Philippine Long Distance Telephone Company v. City of
Davao, 562 the Court resolved the issue of whether, after the
withdrawal of its exemption by virtue of Section 137 of the Code,
petitioner has again become entitled to exemption from local
franchise tax. The Petitioner relied on Section 23 of Republic Act No.
7925 which provides:
561Philippine Long Distance Telephone Company v. City of Davao, G.R. No. 143867,
August 22, 2001.
62
W Philippine Long Distance Telephone Company v. City of Davao, G.R. No. 143867,
August 22, 2001.
~immediat~y~and u cndtionally7 -t& ga~e

,such franchises: Pnwided, howecer< That the foregoing,
shall neither apply to nor affect provisiois of
eecoiximunikations,. franchises concerniing teniltoryl)
fcovered by the franchise, the life span of the franchiseA
'orte type, o seeathvie $'he dbfihiq
Petitioner then claimed that Smart and Globe enjoy

exemption from the payment of the franchise tax by virtue of their
legislative franchises per opinion of the Bureau of Local Government
Finance of the Department of Finance. It argued that because Smart
and Globe are exempt from the franchise tax, it follows that it must
likewise be exempt from the tax being collected by the City of Davao
because the grant of tax exemption to Smart and Globe ipso facto
extended the same exemption to it.
The Supreme Court held that Republic Act No. 7925 is
designed to set the national policy on telecommunications and
provide the structures to implement it to keep up with the
technological advances in the industry and the needs of the public.
The thrust of the law is to promote gradually the deregulation of the
entry, pricing, and operations of all public telecommunications
entities and thus promote a level playing field in the
telecommunications industry. There is nothing in the language of §23
or in the proceedings of both the House of Representatives and the
Senate in enacting Republic Act No. 7925, which shows that it
contemplates the grant of tax exemptions to all telecommunications
entities, including those whose exemptions had been withdrawn by
the Local Government Code.
The foregoing pronouncement notwithstanding, in view of
the passage of Republic Act No. 7716, abolishing the franchise tax
imposed on telecommunications companies effective 1 January 1996
and in its place is imposed a 10 percent Value-Added-Tax (VAT), the
"in-lieu-of-al-taxes" clause/provision in the legislative franchises of
Globe, Smart and Bell, among others, has now become functus officio
and inoperative for lack of a franchise tax. Therefore, taking this into
consideration, the liability for national franchise tax has ceased and
in its stead is imposed a 10% VAT in accordance with Section 108 of

the Tax Code.6
Republic Act No. 7716, otherwise known as the "Expanded
VAT Law," did not remove or abolish the payment of local franchise
tax. It merely replaced the national franchise tax that was previously
paid by telecommunications franchise holders and in its stead
imposed a ten percent (10%) VAT in accordance with Section 108 of
the Tax Code. VAT replaced the national franchise tax, but it did not
prohibit nor abolish the imposition of local franchise tax by cities or
municipalities 6 4
The power to tax by local government units emanates from
Section 5, Article X of the Constitution which empowers them to
create their own sources of revenues and to levy taxes, fees and
may provide. The imposition of local franchise tax is not inconsistent
with the advent of the VAT, which renders functus officio the
franchise tax paid to the national government. VAT inures to the
benefit of the national government, while a local franchise tax is a
5
revenue of the local government unit.%
SECTION 138. Tax on Sand, Gravel and Other Quarry

Resources. - The province may levy and collect not
more than ten percent (10%) of fair market value in
the locality per cubic meter of ordinary stones, sand,
gravel, earth, and other quarry resources, as defined
under the National Internal Revenue Code, as
amended, extracted from public lands or from the
beds of seas, lakes, rivers, streams, creeks, and other
public waters within its territorial jurisdiction.
The permit to extract sand, gravel and other quarry
resources shall be issued exclusively by the provincial
WSmart v. City of Davao, G.R No. 155491, September 16,2008.

54 Digital Telecommunications Philippines Inc. v. Province of Pangasinan, G. R. No.
152534, February 23, 2007.
55
Digital Telecommunications Philippines Inc. v. Province of Pangasinan, G. R. No.
152534, February 23, 2007.
governor, pursuant to the ordinance of the

sangguniang panlalawigan.
The proceeds of the tax on sand, gravel and other
quarry resources shall be distributed as follows:
(1) Province - Thirty percent (30%);
(2) Component City or Municipality where the sand,
gravel, and other quarry resources are extracted -
Thirty percent (30%); and
(3) Barangay where the sand, gravel, and other quarry
resources are extracted - Forty percent (40%).
To undertake a quarrying business, one must first comply

with all the requirements imposed not only by the national
government, but also by the local government unit where his
business is situated. Section 138 (2) of Republic Act 7160 requires that
one must first secure a governor's permit prior to the start of his
quarrying operations.566 A quarry permit issued by the Governor is
contingent on its compliance with the terms and conditions of the
Environmental Compliance Certificate. The permit cannot be said to
have vested in an absolute, unconditional right to quarry or to mine,
such that if it fails to comply with any of the terms and conditions of
the ECC, there would be no right to quarry or mine to speak of.567
SECTION 139. Professional Tax. - (a) The province

may levy an annual professional tax on each person
engaged in the exercise or practice of his profession
requiring government examination at such amount
and reasonable classification as the sangguniang
panlalawigan may determine but shall in no case
exceed Three hundred pesos (P300.00).
(b) Every person legally authorized to practice his
profession shall pay the professional tax to the
province where he practices his profession or where
56 Province of Cagayan v. Lara, G.R. No. 188500, July 24, 2013.

5
67 Pheschem Industrial Corporation v. Surigao, A.C. No. 8269, December 11, 2013.
he maintains his principal office in case he practices

his profession in several places: Provided,however, That
such person who has paid the corresponding
professional tax shall be entitled to practice his
profession in any part of the Philippines without
being subjected to any other national or local tax,
license, or fee for the practice of such profession.
(c) Any individual or corporation employing a person
subject to professional tax shall require payment by
that person of the tax on his profession before
employment and annually thereafter.
(d) The professional tax shall be payable annually, on
or before the thirty-first (31st) day of January. Any
person first beginning to practice a profession after the
month of January must, however, pay the full tax
before engaging therein. A line of profession does not
become exempt even if conducted with some other
profession for which the tax has been paid.
Professionals exclusively employed in the government
shall be exempt from the payment of this tax.
(e) Any person subject to the professional tax shall
write in deeds, receipts, prescriptions, reports, books
of account, plans and designs, surveys and maps, as
the case may be, the number of the official receipt
issued to him.-w
Republic Act No. 9010 (2001) amended section 5 of Republic Act No. 8424 to read:
SEC. 5. TransitoryProvisions. - Effectivity of the Imposition of VAT
on CertainServices. - The imposition of the value-added tax on the
following services shall take effect on January 1, 2003:
(a) Services performed in the exercise of
profession or calling subject to the professional
tax as provided for under Republic Act No.
7160, otherwise known as the Local Government
Code of 1991, and professional services
performed by registered general professional
partnerships; actors, actresses, talents, singers
and emcees; radio and television broadcasters,
choreographers; musical, radio, movie,
A requisite for the practice of law is membership in good

standing. This requires continued membership and payment of
annual membership dues in the Integrated Bar of the Philippines and
the payment of the annual professional tax among others.569
SEC. 140. Amusement Tax. - (a) The province may

levy an amusement tax to be collected from the
proprietors, lessees, or operators of theaters, cinemas,
concert halls, circuses, boxing stadia, and other places
of amusement at a rate of not more than ten percent
570
(10%) of the gross receipts from admission fees.
(b) In the case of theaters or cinemas, the tax shall first
be deducted and withheld by their proprietors,
lessees, or operators and paid to the provincial
television and stage directors; and professional

athletes;
(b) Services rendered by banks, nonbank
financial intermediaries, finance companies and
other financial intermediaries not performing
quasi-banking functions; and
(c) Services rendered by stock, real estate,
commercial, customs and immigration brokers:
Provided, That for the years beginning January 1,
2001 up to December 31, 2002, the
aforementioned brokers shall, in lieu of the
value-added tax prescribed under Title IV of the
National Internal Revenue Code of 1997, be
subject to a tax equivalent to seven percent (7%)
based on gross receipts from brokering services
which shall be paid in the manner and in
accordance with the provisions of Title V of the
said Code: Provided, further, That beginning
January 1, 2003, the aforementioned brokers
shall be subject to the value-added tax in lieu of
the seven percent (7%) tax.
The taxpayers rendering services mentioned under
paragraphs (a) and (b) hereof, shall pay the applicable .taxes
prescribed under the pertinent provisions of the National Internal
Revenue Code, as amended.
569
Petition for Leave to Resume Practice of Law, Benjamin M. Dacanay, B.M. No.
1678, December 17,2007.
5
treasurer before the gross receipts are divided

between said proprietors, lessees, or operators and the
distributors of the cinematographic films.
(c) The holding of operas, concerts, dramas, recitals,
painting and art exhibitions, flower shows, musical
programs, literary and oratorical presentations, except
pop, rock, or similar concerts shall be exempt from the
payment of the tax herein imposed.
(d) The sangguniang panlalawigan may prescribe the
time, manner, terms and conditions for the payment of
tax. In case of fraud or failure to pay the tax, the
sangguniang panlalawigan may impose such
surcharges, interests and penalties as it may deem
appropriate.
(e) The proceeds from the amusement tax shall be
shared equally by the province and the municipality
where such amusement places are located.
Theaters, cinemas, concert halls, circuses, and boxing stadia

share a common characteristic in that they are all venues primarily
for the staging of spectacles or the holding of public shows,
exhibitions, performances, and other events meant to be viewed by
an audience. Accordingly, "other places of amusement" must be
interpreted in light of the typifying characteristic of being venues
"where one seeks admission to entertain oneself by seeing or viewing
the show or performances" or being venues primarily used to stage
spectacles or hold public shows, exhibitions, performances, and other
events meant to be viewed by an audience 5s71
The New Oxford American Dictionary defines "show" as" a
spectacle or display of something, typically an impressive one";
while "performance" means "an act of staging or presenting a play, a
concert, or other form of entertainment." As such, the ordinary
definitions of the words "show" and "performance" denote not only
visual engagement (i.e., the seeing or viewing of things) but also
57 Pelizloy Realty Corporation v. The Province of Benguet, G.R. No. 183137, April
19, 2013.
active doing (e.g., displaying, staging or presenting) such that actions

are manifested to, and (correspondingly) perceived by an
audience.72
As such, resorts, swimming pools, bath houses, hot springs
and tourist spots cannot be considered venues primarily "where one
seeks admission to entertain oneself by seeing or viewing the show
or performances." While it is true that they may be venues where
people are visually engaged, they are not primarily venues for their
proprietors or operators to actively display, stage or present shows
and/or performances. They cannot be considered as among the
"other places of amusement" contemplated by Section 140 and which
may properly be subject to amusement taxes.573
Under the principle of ejusdem generis, where general words
follow an enumeration of persons or things, by words of a particular
and specific meaning, such general words are not to be construed in
their widest extent, but are to be held as applying only to persons or
things of the same kind or class as those specifically mentioned.
Thus, in determining the meaning of the phrase "other places of
amusement," one must refer to the prior enumeration of theaters,
cinematographs, concert halls and circuses with artistic expression as
their common characteristic. Professional basketball games do not
fall under the same category as theaters, cinematographs, concert
halls and circuses as the latter basically belong to artistic forms of
entertainment while the former caters to sports and gaming. 74
There is a recognition under the laws of this country that the
amusement tax on professional basketball games is a national, and
not a local, tax. Even up to the present, the category of amusement
taxes on professional basketball games as a national tax remains the
same. Section 140 retained the areas (theaters, cinematographs,
concert halls, circuses and other places of amusement) where the
5
72 Pelizloy Realty Corporation v. The Province of Benguet, G.R. No. 183137, April
19,2013.
57
Pelizloy Realty Corporation v. The Province of Benguet, G.R. No. 183137, April
19,2013.
574 Philippine Basketball Association v. Court of Appeals, G.R. No. 119122, August 8,
2000.
province may levy an amusement tax without including therein

professional basketball games.575
Congress enacted Republic Act No. 9167 in 2002 which
created the Film Development Council of the Philippines. Petitioner's
mandate includes the development and implementation of "an
incentive and reward system for the producers based on merit to
encourage the production of quality films." The Cinema Evaluation
Board (CEB) was established to review and grade films in accordance
with criteria and standards and procedures it shall formulate subject
to the approval of the Council. 76 Republic Act No. 9167 mandates the
remittance of the proceeds of the amusement tax collected by the
local government units:
~-All revenue from the amusement tx on the gradd

,fim, which, may otherwis acrue to th' ciis.nd
imrnipalities in.Metropolitan Manila and highly,
,baniz andindependentcomonent ciis
5
n Philippine Basketball Association v.Court of Appeals, G.R. No. 119122. August 8,
2000.
576See Film Development Council of the Philippines v. SM Prime Holdings, Inc., G.R.
No. 197937, April 3, 2013. Films reviewed and graded favorably by the CEB are
given the following privileges:
Section 13. Privilegesof GradedFilms. - Films which have obtained
an "A" or "B" grading from the Council pursuant to Sections 11
and 12 of this Act shall be entitled to the following privileges:
a. Amusement tax reward. - A grade "A" or
"B" film shall entitle its producer to an incentive
equivalent to the amusement tax imposed and
collected on the graded films by cities and
municipalities in Metro Manila and other highly
urbanized and independent component cities in
the Philippines pursuant to Sections 140 and 151
of Republic Act No. 7160 at the following rates:
1. For grade "A" films - 100% of the
amusement tax collected on such films; and
2. For grade "B" films. - 65% of the amusement
tax collected on such films. The remaining
thirty-five (35%) shall accrue to the funds of the
Council.
The law empowered the Film Development Council to

impose administrative fines and penalties and to initiate criminal or
administrative prosecution against the violators.577
SECTION 141. Annual Fixed Tax For Every Delivery
Truck or Van of Manufacturers or Producers, Wholesalers
577 See Film Development Council of the Philippines v. SM Prime Holdings, Inc., G.R.
No. 197937, April 3, 2013. Films reviewed and graded favorably by the CEB are
given the following privileges:
Section 13. Privilegesof GradedFilms. - Films which have obtained
an "A" or "B" grading from the Council pursuant to Sections 11
and 12 of this Act shall be entitled to the following privileges:
a. Amusement tax reward. - A grade "A" or
"B" film shall entitle its producer to an incentive
equivalent to the amusement tax imposed and
collected on the graded films by cities and
municipalities in Metro Manila and other highly
urbanized and independent component cities in
the Philippines pursuant to Sections 140 and 151
of Republic Act No. 7160 at the following rates:
1. For grade "A" films - 100% of the
amusement tax collected on such films; and
2. For grade "B" films. - 65% of the amusement
tax collected on such films. The remaining
thirty-five (35%) shall accrue to the funds of the
Council.
of,Dealers, or Retailers in, Certain Products. - (a) The

province may levy an annual fixed tax for every truck,
van or any vehicle used by manufacturers, producers,
wholesalers, dealers or retailers in the delivery or
distribution of distilled spirits, fermented liquors, soft
drinks, cigars and cigarettes, and other products as
may be determined by the sangguniang panlalawigan,
to sales outlets, or consumers, whether directly or
indirectly, within the province in an amount not
exceeding Five hundred pesos (P500.00).
(b) The manufacturers, producers, wholesalers,
dealers and retailers referred to in the immediately
foregoing paragraph shall be exempt from the tax on
peddlers prescribed elsewhere in this Code.
Article II
Municipalities
otherwise provided in this Code, municipalities may
levy taxes, fees, and charges not otherwise levied by
provinces.
If the main purpose of an ordinance is to regulate the

"placing, stringing, attaching, installing, repair and construction of
all gas mains, electric, telegraph and telephone wires, conduits,
meters and other apparatus" including "cell sites" or
telecommunications towers, the fees imposed in the ordinance are
primarily regulatory in nature, and not primarily revenue-raising. While
the fees may contribute to the revenues of the Municipality, this
effect is merely incidental and the fees imposed are not taxes 578
SECTION 143. Tax on Business. - The municipality

may impose taxes on the following businesses:
(a) On manufacturers, assemblers, repackers,
processors, brewers, distillers, rectifiers, and
57 Smart Communications, Inc. v. Municipality of Malvar, Batangas, G.R. No.

204429, February 18, 2014.
compounders of liquors, distilled spirits, and wines or

manufacturers of any article of commerce of whatever
kind or nature, in accordance with the following
schedule:
With gross sales or receipts for the preceding Amount of Tax
calendar year in the amount of: Per Annum
Less than 10,000.00 165.00
P 10,000.00 or more but less than 15,000.00 220.00
15,000.00 or more but less than 20,000.00 202.00
50,000.00 or more but less than 75,000.00 1,320.00
750,000.00 or more but less than 1,000,000.00 10,000.00
1,000,000.00 or more but less than 2,000,000.00 13,750.00

6,500,000.00 or more at a rate not exceeding thirty-seven

and a half (37 %) of one(l%)
(b) On wholesalers, distributors, or dealers in any

article of commerce of whatever kind or nature in
accordance with the following schedule:
With gross sales or receipts for the preceding Amount of Tax

Less than 1,000.00 18.00
P 1,000.00 or more but less than 2,000.00 33.00

750,000.00 or more but less than 1,000,000.00 8,800.00
2,000,000.00 or more at a rate not exceeding

fifty percent (50%) of one percent (1%)
(c) On exporters, and on manufacturers, millers,

producers, wholesalers, distributors, dealers or
retailers of essential commodities enumerated
hereunder at a rate not exceeding one-half (Y2) of the
rates prescribed under subsection (a), (b) and (d) of
this Section:
(1) Rice and corn;
(2) Wheat or cassava flour, meat, dairy
products, locally manufactured,
processed or preserved food, sugar, salt
and other agricultural, marine, and
fresh water products, whether in their
original state or not;
(3) Cooking oil and cooking gas;

(4) Laundry soap, detergents, and
medicine;
(5) Agricultural implements,
equipment and post-harvest facilities,
fertilizers, pesticides, insecticides,
herbicides and other farm inputs;
(6) Poultry feeds and other animal
feeds;
(7) School supplies; and
(8) Cement.
(d) On retailers.
With gross sales or receipts for the preceding Rate of Tax

P400,000.00 or less 2%
more than P400,000.00 1%
Provided, however, That barangays shall have the

exclusive power to levy taxes, as provided under
Section 152 hereof, on gross sales or receipts of the
preceding calendar year of Fifty thousand pesos
(P50,000.00) or less, in the case of cities, and Thirty
thousand pesos (P30,000.00) or less, in the case of
municipalities.
(e) On contractors and other independent contractors,
in accordance with the following schedule:
With gross sales or receipts for the Amount of Tax

preceding calendar year in the amount of: Per Annum
Less than 5,000.00 27.50

P 5,000.00 or more but less than P 10,000.00 61.60
750,000.00 or more but less than 10,250.00

1,000,000.00
1,000,000.00 or more but less than 11,500.00

2,000,000.00
2,000,000.00 or more at a rate not exceeding fifty

percent (50%) of one percent (1%)
(f) On banks and other financial institutions, at a rate

not exceeding fifty percent (50%) of one percent (1%)
on the gross receipts of the preceding calendar year
derived from interest, commissions and discounts
from lending activities, income from financial leasing,
dividends, rentals on property and profit from
exchange or sale of property, insurance premium.
(g) On peddlers engaged in the sale of any
merchandise or article of commerce, at a rate not
exceeding Fifty pesos (P50.00) per peddler annually.
(h) On any business, not otherwise specified in the
preceding paragraphs, which the sanggunian
concerned may deem proper to tax: Provided, That on
any business subject to the excise, value-added or
percentage tax under the National Internal Revenue
Code, as amended, the rate of tax shall not exceed two
percent (2%) of gross sales or receipts of the preceding
calendar year.
The sanggunian concerned may prescribe a schedule
of graduated tax rates but in no case to exceed the
rates prescribed herein.
SECTION 144. Rates of Tax within the Metropolitan
Manila Area. - The municipalities within the
Metropolitan Manila Area may levy taxes at rates
which shall not exceed by fifty percent (50%) the
maximum rates prescribed in the preceding section.
SECTION 145. Retirement of Business. - A business
subject to tax pursuant to the preceding sections shall,
upon termination thereof, submit a sworn statement
of its gross sales or receipts for the current year. If the
tax paid during the year be less than the tax due on
said gross sales or receipts of the current year, the
difference shall be paid before the business is
considered officially retired.
SECTION 146. Payment of Business Taxes. - (a) The
taxes imposed under Section 143 shall be payable for
every separate or distinct establishment or place
where business subject to the tax is conducted and one

line of business does not become exempt by being
conducted with some other businesses for which such
tax has been paid. The tax on a business must be paid
by the person conducting the same.
(b) In cases where a person conducts or operates two
(2) or more of the businesses mentioned in Section 143
of this Code which are subject to the same rate of tax,
the tax shall be computed on the combined total gross
sales or receipts of the said two (2) or more related
businesses.
(c) In cases where a person conducts or operates two
(2) or more businesses mentioned in Section 143 of this
Code which are subject to different rates of tax, the
gross sales or receipts of each business shall be
separately reported for the purpose of computing the
tax due from each business.
It is imperative that in order that the Corporation may be

subjected to business taxes, its activities must fall within the
definition of business as provided in the Local Government Code.
The word "business" itself is defined under Section 131 (d) of the
Code as "trade or commercial activity regularly engaged in as a
means of livelihood or with a view to profit."579
A condominium corporation is precluded by statute from
engaging in corporate activities other than the holding of the
common areas, the administration of the condominium project, and
other acts necessary, incidental or convenient to the accomplishment
of such purposes. Neither the maintenance of livelihood, nor the
procurement of profit, falls within the scope of permissible corporate
purposes of a condominium corporation under the Condominium
Act. Again, whatever capacity the Corporation may have pursuant to
its power to exercise acts of ownership over personal and real
property is limited by its stated corporate purposes, which are by
themselves further limited by the Condominium Act. A
condominium corporation, while enjoying such powers of
5
7 Yamane v. BA Lepanto Condominium, G.R. No. 154993, January 25, 2005.
ownership, is prohibited by law from transacting its properties for

the purpose of gainful profit. Therefore, condominium corporations
are generally exempt from local business taxation under the Local
Government Code, irrespective of any local ordinance that seeks to
declare otherwise.8 0
There is a possible exception to the rule. It is not unthinkable
that the unit owners of a condominium would band together to
engage in activities for profit under the shelter of the condominium
corporation. Such activity would be prohibited under the
Condominium Act, but if the fact is established, there is no reason
why the condominium corporation may be made liable by the local
government unit for business taxes.-%'
SECTION 147. Fees and Charges. - The municipality

may impose and collect such reasonable fees and
charges on business and occupation and, except as
reserved to the province in Section 139 of this Code,
on the practice of any profession or calling,
commensurate with the cost of regulation, inspection
and licensing before any person may engage in such
business or occupation, or practice such profession or
calling.
SECTION 148. Feesfor Sealing and Licensing of Weights
and Measures. - (a) The municipality may levy fees for
the sealing and licensing of weights and measures at
such reasonable rates as shall be prescribed by the
sangguniang bayan.
(b) The sangguniang bayan shall prescribe the
necessary regulations for the use of such weights and
measures, subject to such guidelines as shall be
prescribed by the Department of Science and
Technology. The sanggunian concerned shall, by
appropriate ordinance, penalize fraudulent practices
and unlawful possession or use of instruments of
-WYamane v. BA Lepanto Condominium, G.R. No. 154993, January 25,2005.

5K Yamane v. BA Lepanto Condominium, G.R. No. 154993, January 25,2005.
weights and measures and prescribe the criminal

penalty therefor in accordance with the provisions of
this Code. Provided, however, That the sanggunian
concerned may authorize the municipal treasurer to
settle an offense not involving the commission of
fraud before a case therefor is filed in court, upon
payment of a compromise penalty of not less than
Two hundred pesos (P200.00).
SECTION 149. Fishery Rentals, Fees and Charges. - (a)
Municipalities shall have the exclusive authority to
grant fishery privileges in the municipal waters and
impose rentals, fees or charges therefor in accordance
with the provisions of this section.
(b) The sangguniang bayan may:
(1) Grant fishery privileges to erect fish
corrals, oysters, mussels or other
aquatic beds or bangus fry areas,
within a definite zone of the municipal
waters, as determined by it: Provided,
however, That duly registered
organizations and cooperatives of
marginal fishermen shall have the
preferential right to such fishery
privileges: Provided, further, That the
sangguniang bayan may require a
public bidding in conformity with and
pursuant to an ordinance for the grant
of such privileges: Provided,finally, That
in the absence of such organizations
and cooperatives or their failure to
exercise their preferential right, other
parties may participate in the public
bidding in conformity with the above
cited procedure.
(2) Grant the privilege to gather, take or
catch bangus fry, prawn fry or kawag-
kawag or fry of other species and fish
from the municipal waters by nets,
traps or other fishing gears to marginal

fishermen free of any rental, fee, charge
or any other imposition whatsoever.
(3) Issue licenses for the operation of
fishing vessels of three (3) tons or less
for which purpose the sangguniang
bayan shall promulgate rules and
regulations regarding the issuances of
such licenses to qualified applicants
under existing laws; Provided, however,
That the sanggunian concerned shall,
by appropriate ordinance, penalize the
use of explosives, noxious or poisonous
substances, electricity, muro-ami, and
other deleterious methods of fishing
and prescribe a criminal penalty
therefor in accordance with the
provisions of this Code: Provided,
finally, That the sanggunian concerned
shall have the authority to prosecute
any violation of the provisions of
applicable fishery laws.
SECTION 150. Situs of the Tax. - (a) For purposes of
collection of the taxes under Section 143 of this Code,
manufacturers, assemblers, repackers, brewers,
distillers, rectifiers and compounders of liquor,
distilled spirits and wines, millers, producers,
exporters, wholesalers, distributors, dealers,
contractors, banks and other financial institutions, and
other businesses, maintaining or operating branch or
sales outlet elsewhere shall record the sale in the
branch or sales outlet making the sale or transaction,
and the tax thereon shall accrue and shall be paid to
the municipality where such branch or sales outlet is
located. In cases where there is no such branch or sales
outlet in the city or municipality where the sale or
transaction is made, the sale shall be duly recorded in
the principal office and the taxes due shall accrue and
shall be paid to such city or municipality.
(b) The following sales allocation shall apply to
manufacturers, assemblers, contractors, producers,
and exporters with factories, project offices, plants,
and plantations in the pursuit of their business:
(1) Thirty percent (30%) of all sales
recorded in the principal office shall be
taxable by the city or municipality
where the principal office is located;
and
(2) Seventy percent (70%) of all sales
recorded in the principal office shall be
taxable by the city or municipality
where the factory, project office, plant,
or plantation is located. I
(c) In case of a plantation located at a place other than
the place where the factory is located, said seventy
percent (70%) mentioned in subparagraph (b) of
subsection (2) above shall be divided as follows:
(1) Sixty percent (60%) to the city or
municipality where the factory is
located; and
(2) Forty percent (40%) to the city or
municipality where the plantation is
located.
(d) In cases where a manufacturer, assembler,
producer, exporter or contractor has two (2) or more
factories, project offices, plants, or plantations located
in different localities, the seventy percent (70%) sales
allocation mentioned in subparagraph (b) of
subsection (2) above shall be prorated among the
localities where the factories, project offices, plants,
and plantations are located in proportion to their
respective volumes of production during the period
for which the tax is due.
(e) The foregoing sales allocation shall be applied

irrespective of whether or not sales are made in the
locality where the factory, project office, plant, or
plantation is located.
Article Im
Cities
otherwise provided in this Code, the city, may levy
the taxes, fees, and charges which the province or
municipality may impose: Provided, however, That the
taxes, fees and charges levied and collected by highly
urbanized and independent component cities shall
accrue to them and distributed in accordance with the
provisions of this Code.
The rates of taxes that the city may levy may exceed
the maximum rates allowed for the province or
municipality by not more than fifty percent (50%)
except the rates of professional and amusement taxes.
Article IV
Barangays
SECTION 152. Scope of Taxing Powers. - The
barangays may levy taxes, fees, and charges, as
provided in this Article, which shall exclusively
accrue to them:
(a) Taxes - On stores or retailers with fixed business
establishments with gross sales of receipts of the
preceding calendar year of Fifty thousand pesos
(P50,000.00) or less, in the case of cities and Thirty
thousand pesos (P30,000.00) or less, in the case of
municipalities, at a rate not exceeding one percent
(1%) on such gross sales or receipts.
(b) Service Fees or Charges. - Barangays may collect

reasonable fees or charges for services rendered in
connection with the regulations or the use of
barangay-owned properties or service facilities such
as palay, copra, or tobacco dryers.
(c) Barangay Clearance. - No city or municipality
may issue any license or permit for any business or
activity unless a clearance is first obtained from the
barangay where such business or activity is located or
conducted. For such clearance, the sangguniang
barangay may impose a reasonable fee. The
application for clearance shall be acted upon within
seven (7) working days from the filing thereof. In the
event that the clearance is not issued within the said
period, the city or municipality may issue the said
license or permit.
(d) Other fees and Charges. - The barangay may levy
reasonable fees and charges:
(1) On commercial breeding of fighting
cocks, cockfights and cockpits;
(2) On places of recreation which
charge admission fees; and
(3) On billboards, signboards, neon
signs, and outdoor advertisements.
Article V
Common Revenue-Raising Powers
SECTION 153. Service Fees and Charges. - Local
government units may impose and collect such
reasonable fees and charges for services rendered.
SECTION 154. Public Utility Charges. - Local
government units may fix the rates for the operation
of public utilities owned, operated and maintained by
them within their jurisdiction.
SECTION 155. Toll Fees or Charges. - The sanggunian

concerned may prescribe the terms and conditions
and fix the rates for the imposition of toll fees or
charges for the use of any public road, pier, or wharf,
waterway, bridge, ferry or telecommunication system
funded and constructed by the local government unit
concerned: Provided,That no such toll fees or charges
shall be collected from officers and enlisted men of the
Armed Forces of the Philippines and members of the
Philippine National Police on mission, post office
personnel delivering mail, physically-handicapped,
and disabled citizens who are sixty-five (65) years or
older.
When public safety and welfare so requires, the
sanggunian concerned may discontinue the collection
of the tolls, and thereafter the said facility shall be free
and open for public use.
Article VI
Community Tax
SECTION 156. Community Tax. - Cities or
municipalities may levy a community tax in
accordance with the provisions of this Article.
SECTION 157. Individuals Liable to Community Tax. -
Every inhabitant of the Philippines eighteen (18) years
of age or over who has been regularly employed on a
wage or salary basis for at least thirty (30) consecutive
working days during any calendar year, or who is
engaged in business or occupation, or who owns real
property with an aggregate assessed value of One
thousand pesos (P1,000.00) or more, or who is
required by law to file an income tax return shall pay
an annual additional tax of Five pesos (P5.00) and an
annual additional tax of One peso (P1.00) for every
One thousand pesos (P1,000.00) of income regardless
of whether from business, exercise of profession or
from property which in no case shall exceed Five

thousand pesos (P5,000.00).
In the case of husband and wife, the additional tax
herein imposed shall be based upon the total property
owned by them and the total gross receipts or
earnings derived by them.
SECTION 158. Juridical Persons Liable to Community
Tax. - Every corporation no matter how created or
organized, whether domestic or resident foreign,
engaged in or doing business in the Philippines shall
pay an annual community tax of Five hundred pesos
(P500.00) and an annual additional tax, which, in no
case, shall exceed Ten thousand pesos WP10,000.00) in
accordance with the following schedule:
(1) For every Five thousand pesos
(P5,000.00) worth of real property in the
Philippines owned by it during the
preceding year based on the valuation
used for the payment of real property
tax under existing laws, found in the
assessment' rolls of the city or
municipality where the real property is
situated - Two pesos (P2.00); and
(2) For every Five thousand pesos
(P5,000.00) of gross receipts or earnings
derived by it from its business in the
Philippines during the preceding year
- Two pesos (P2.00).
The dividends received by a
corporation from another corporation
however shall, for the purpose of the
additional tax, be considered as part of
the gross receipts or earnings of said
corporation.
SECTION 159. Exemptions. - The following are
exempt from the community tax:
(1) Diplomatic and consular

representatives; and
(2) Transient visitors when their stay in
the Philippines does not exceed three
(3) months.
SECTION 160. Place of Payment.- The community tax
shall be paid in the place of residence of the
individual, or in the place where the principal office of
the juridical entity is located.5 2
SECTION 161. Time for Payment; Penalties for
Delinquency. - (a) The community tax shall accrue on
the first (1st) day of January of each year which shall
be paid not later than the last day of February of each
year. If a person reaches the age of eighteen (18) years
or otherwise loses the benefit of exemption on or
before the last day of June, he shall be liable for the
community tax on the day he reaches such age or
upon the day the exemption ends. However, if a
person reaches the age of eighteen (18) years or loses
the benefit of exemption on or before the last day of
March, he shall have twenty (20) days to pay the
community tax without becoming delinquent.
Persons who come to reside in the Philippines or reach
the age of eighteen (18); years on or after the first (1st)
day of July of any year, or who cease to belong to an
exempt class on or after the same date, shall not be
subject to the community tax for that year.
(b) Corporations established and organized on or
before the last day of June shall be liable for the
community tax for that year. But corporations
established and organized on or before the last day of
N2 The fact that Saludo's community tax certificate was issued at Pasay City is of no
moment because granting arguendo that he could be considered a resident therein,
the same does not preclude his having a residence in Southern Leyte for purposes of
venue. A person can have only one domicile for one and the same purpose at any
time, but he may have numerous places of residence. See Saludo, Jr. v. American
Express International, Inc., G.R No. 159597, April 19, 2006.
March shall have twenty (20) days within which to

pay the community tax without becoming delinquent.
Corporations established and organized on or after the
first day of July shall not be subject to the community
tax for that year.
If the tax is not paid within the time prescribed above,
there shall be added to the unpaid amount an interest
of twenty-four percent (24%) per annum from the due
date until it is paid.
SECTION 162. Community Tax Certificate. - A
community tax certificate shall be issued to every
person or corporation upon payment of the
community tax. A community tax certificate may also
be issued to any person or corporation not subject to
the community tax upon payment of One peso (P1.00).
SECTION 163. Presentationof Community Tax Certificate
On Certain Occasions. - (a) When an individual
subject to the community tax acknowledges any
document before a notary public, takes the oath of
office upon election or appointment to any position in
the government service; receives any license,
certificate, or permit from any public authority; pays
any tax or fee; receives any money from any public
fund; transacts other official business; or receives any
salary or wage from any person or corporation, it shall
be the duty of any person, officer, or corporation with
whom such transaction is made or business done or
from whom any salary or wage is received to require
such individual to exhibit the community tax
certificate.
The presentation of community tax certificate shall not
be required in connection with the registration of a
voter.
(b) When, through its authorized officers, any
corporation subject to the community tax receives any
license, certificate, or permit from any public
authority, pays any tax or fee, receives money from
public funds, or transacts other official business, it

shall be the duty of the public official with whom such
transaction is made or business done, to require such
corporation to exhibit the community tax certificate.
(c) The community tax certificate required in the two
preceding paragraphs shall be the one issued for the
current year, except for the period from January until
the fifteenth (15th) of April each year, in which case,
the certificate issued for the preceding year shall
suffice.
SECTION 164. Printing of Community Tax Certificates
and Distribution of Proceeds. - (a) The Bureau of
Internal Revenue shall cause the printing of
community tax certificates and distribute the same to
the cities and municipalities through the city and
municipal treasurers in accordance with prescribed
regulations.
The proceeds of the tax shall accrue to the general
funds of the cities, municipalities and barangays
except a portion thereof which shall accrue to the
general fund of the National Government to cover the
actual cost of printing and distribution of the forms
and other related expenses. The city or municipal
treasurer concerned shall remit to the national
treasurer the said share of the National Government in
the proceeds of the tax within ten (10) days after the
end of each quarter.
(b) The city or municipal treasurer shall deputize the
barangay treasurer to collect the community tax in
their respective jurisdictions: Provided, however, That
said barangay treasurer shall be bonded in accordance
with existing laws.
(c) The proceeds of the community tax actually and
directly collected by the city or municipal treasurer
shall accrue entirely to the general fund of the city or
municipality concerned. However, proceeds of the
community tax collected through the barangay

treasurers shall be apportioned as follows:
(1) Fifty percent (50%) shall accrue to
the general fund of the city or
municipality concerned; and
(2) Fifty percent (50%) shall accrue to
the barangay where the tax is collected.
Chapter IH
Collection of Taxes
SECTION 165. Tax Period and Manner of Payment. -
Unless otherwise provided in this Code, the tax period
of all local taxes, fees and charges shall be the calendar
year. Such taxes, fees and charges may be paid in
quarterly instalments.
SECTION 166. Accrual of Tax. - Unless otherwise
provided in this Code, all local taxes, fees, and charges
shall accrue on the first (1st) day of January of each
year. However, new taxes, fees or charges, or changes
in the rates thereof, shall accrue on the first (1st) day
of the quarter next following the effectivity of the
ordinance imposing such new levies or rates.
SECTION 167. Time of Payment. - Unless otherwise
provided in this Code, all local taxes, fees, and charges
shall be paid within the first twenty (20) days of
January or of each subsequent quarter, as the case may
be. The sanggunian concerned may, for a justifiable
reason or cause, extend the time for payment of such
taxes, fees, or charges without surcharges or penalties,
but only for a period not exceeding six (6) months.
SECTION 168. Surcharges and Penalties on Unpaid
Taxes, Fees, or Charges. - The sanggunian may impose
a surcharge not exceeding twenty-five (25%) of the
amount of taxes, fees or charges not paid on time and
an interest at the rate not exceeding two percent (2%)
per month of the unpaid taxes, fees or charges
including surcharges, until such amount is fully paid

but in no case shall the total interest on the unpaid
amount or portion thereof exceed thirty-six (36)
months.
SECTION 169. Interests on Other Unpaid Revenues. -
Where the amount of any other revenue due a local
government unit, except voluntary contributions or
donations, is not paid on the date fixed in the
ordinance, or in the contract, expressed or implied, or
upon the occurrence of the event which has given rise
to its collection, there shall be collected as part of that
amount an interest thereon at the rate not exceeding
two percent (2%) per month from the date it is due
until it is paid, but in no case shall the total interest on
the unpaid amount or a portion thereof exceed thirty-
six (36) months.
SECTION 170. Collection of Local Revenue by Treasurer.
- All local taxes, fees, and charges shall be collected
by the provincial, city, municipal, or barangay
treasurer, or their duly authorized deputies.
The provincial, city or municipal treasurer may
designate the barangay treasurer as his deputy to
collect local taxes, fees, or charges. In case a bond is
required for the purpose, the provincial, city or
municipal government shall pay the premiums
thereon in addition to the premiums of bond that may
be required under this Code.
SECTION 171. Examination of Books of Accounts and
Pertinent Records of Businessmen by Local Treasurer. -
The provincial, city, municipal or barangay treasurer
may, by himself or through any of his deputies duly
authorized in writing, examine the books, accounts,
and other pertinent records of any person,
partnership, corporation, or association subject to local
taxes, fees and charges in order to ascertain, assess,
and collect the correct amount of the tax, fee, or
charge. Such examination shall be made during
regular business hours, only once for every tax period,

and shall be certified to by the examining official. Such
certificate shall be made of record in the books of
accounts of the taxpayer examined.
In case the examination herein authorized is made by
a duly authorized deputy of the local treasurer, the
written authority of the deputy concerned shall
specifically state the name, address, and business of
the taxpayer whose books, accounts, and pertinent
records are to be examined, the date and place of such
examination and the procedure to be followed in
conducting the same.
For this purpose, the records of the revenue district
office of the Bureau of Internal Revenue shall be made
available to the local treasurer, his deputy or duly
authorized representative.
Chapter IV
Civil Remedies for Collection of Revenues
SECTION 172. Application of Chapter. - The provisions
of this Chapter and the remedies provided herein may
be availed of for the collection of any delinquent local
tax, fee, charge, or other revenue.
SECTION 173. Local Government's Lien. - Local taxes,
fees, charges and other revenues constitute a lien,
superior to all liens, charges or encumbrances in favor
of any person, enforceable by appropriate
administrative or judicial action, not only upon any
property or rights therein which may be subject to the
lien but also upon property used in business,
occupation, practice of profession or calling, or
exercise of privilege with respect to which the lien is
imposed. The lien may only be extinguished upon full
payment of the delinquent local taxes, fees and
charges including related surcharges and interest.
SECTION 174. Civil Remedies. - The civil remedies for

the collection of local taxes, fees, or charges, and
related surcharges and interest resulting from
delinquency shall be:
(a) By administrative action through
distraint of goods, chattels, or effects,
and other personal property of
whatever character, including stocks
and other securities, debts, credits,
bank accounts, and interest in and
rights to personal property, and by
levy upon real property and interest in
or rights to real property; and
(b) By judicial action.
Either of these remedies or all may be pursued
concurrently or simultaneously at the discretion of the
SECTION 175. Distraint of Personal Property. - The
remedy by distraint shall proceed as follows:
(a) Seizure - Upon failure of the
person owing any local tax, fee, or
charge to pay the same at the time
required, the local treasurer or his
deputy may, upon written notice, seize
or confiscate any personal property
belonging to that person or any
personal property subject to the lien in
sufficient quantity to satisfy the tax,
fee, or charge in question, together
with any increment thereto incident to
delinquency and the expenses of
seizure. In such case, the local treasurer
or his deputy shall issue a duly
authenticated certificate based upon
the records of his office showing the
fact of delinquency and the amounts of
the tax, fee, or charge and penalty due.
Such certificate shall serve as sufficient

warrant for the distraint of personal
property aforementioned, subject to the
taxpayer's right to claim exemption
under the provisions of existing laws.
Distrained personal property shall be
sold at public auction in the manner
herein provided for.
(b) Accounting of distrainedgoods. - The
officer executing the distraint shall
make or cause to be made an account
of the goods, chattels or effects
distrained, a copy of which signed by
himself shall be left either with the
owner or person from whose
possession the goods, chattels or effects
are taken, or at the dwelling or place of
business of that person and with
someone of suitable age and discretion,
to which list shall be added a statement
of the sum demanded and a note of the
time and place of sale.
(c) Publication - The officer shall
forthwith cause a notification to be
exhibited in not less than three (3)
public and conspicuous places in the
territory of the local government unit
where the distraint is made, specifying
the time and place of sale, and the
articles distrained. The time of sale
shall not be less than twenty (20) days
after notice to the owner or possessor
of the property as above specified and
the publication or posting of the notice.
One place for the posting of the notice
shall be at the office of the chief
executive of the local government unit
in which the property is distrained.
(d) Release of distrained property upon

payment prior to sale - If at any time
prior to the consummation of the sale,
all the proper charges are paid to the
officer conducting the sale, the goods
or effects distrained shall be restored to
the owner.
(e) Procedure of sale - At the time and
place fixed in the notice, the officer
conducting the sale shall sell the goods
or effects so distrained at public
auction to the highest bidder for cash.
Within five (5) days after the sale, the
local treasurer shall make a report of
the proceedings in writing to the local
chief executive concerned.
Should the property distrained be not
disposed of within one hundred and
twenty (120) days from the date of
distraint, the same shall be considered
as sold to the local government unit
concerned for the amount of the
assessment made thereon by the
Committee on Appraisal and to the
extent of the same amount, the tax
delinquencies shall be cancelled.
Said Committee on Appraisal shall be
composed of the city or municipal
treasurer as chairman, with a
representative of the Commission on
Audit and the city or municipal
assessor as members.
(f) Disposition of proceeds - The
proceeds of the sale shall be applied to
satisfy the tax, including the
surcharges, interest, and other
penalties incident to delinquency, and
the expenses of the distraint and sale.

The balance over and above what is
required to pay the entire claim shall be
returned to the owner of the property
sold. The expenses chargeable upon the
seizure and sale shall embrace only the
actual expenses of seizure and
preservation of the property pending
the sale, and no charge shall be
imposed for the services of the local
officer or his deputy. Where the
proceeds of the sale are insufficient to
satisfy the claim, other property may,
in like manner, be distrained until the
full amount due, including all
expenses, is collected.
SECTION 176. Levy on Real Property. - After the
expiration of the time required to pay the delinquent
tax, fee, or charge, real property may be levied on
before, simultaneously, or after the distraint of
personal property belonging to the delinquent
taxpayer. To this end, the provincial, city or municipal
treasurer, as the case may be, shall prepare a duly
authenticated certificate showing the name of the
taxpayer and the amount of the tax, fee, or charge, and
penalty due from him. Said certificate shall operate
with the force of a legal execution throughout the
Philippines. Levy shall be effected by writing upon
said certificate the description of the property upon
which levy is made. At the same time, written notice
of the levy shall be mailed to or served upon the
assessor and the Register of Deeds of the province or
city where the property is located who shall annotate
the levy on the tax declaration and certificate of title of
the property, respectively, and the delinquent
taxpayer or, if he be absent from the Philippines, to his
agent or the manager of the business in respect to
which the liability arose, or if there be none, to the
occupant of the property in question.
In case the levy on real property is not issued before or

simultaneously with the warrant of distraint on
personal property, and the personal property of the
taxpayer is not sufficient to satisfy his delinquency,
the provincial, city or municipal treasurer, as the case
may be, shall within thirty (30) days after execution of
the distraint, proceed with the levy on the taxpayer's
real property.
A report on any levy shall, within ten (10) days after
receipt of the warrant, be submitted by the levying
officer to the sanggunian concerned.
SECTION 177. Penaltyfor Failure to Issue and Execute
Warrant. - Without prejudice to criminal prosecution
under the Revised Penal Code and other applicable
laws, any local treasurer who fails to issue or execute
the warrant of distraint or levy after the expiration of
the time prescribed, or who is found guilty of abusing
the exercise thereof by competent authority shall be
automatically dismissed from the service after due
notice and hearing.
A mayor who issues Warrants of Levy and effects the public

auction sale of real properties merely performs a ministerial function
under Sections 176 and 177 of the Code.N3
SECTION 178. Advertisement and Sale. - Within thirty

(30) days after the levy, the local treasurer shall
proceed to publicly advertise for sale or auction the
property or a usable portion thereof as may be
necessary to satisfy the claim and cost of sale; and
such advertisement shall cover a period of at least
thirty (30) days. It shall be effected by posting a notice
at the main entrance of the municipal building or city
hall, and in a public and conspicuous place in the
53Digital Telecommunications Philippines, Inc. v. Cantos, G.R. No. 180200,

November 25, 2013.
barangay where the real property is located, and by

publication once a week for three (3) weeks in a
newspaper of general circulation in the province, city
or municipality where the property is located. The
advertisement shall contain the amount of taxes, fees
or charges, and penalties due thereon, and the time
and place of sale, the name of the taxpayer against
whom the taxes, fees, or charges are levied, and a
short description of the property to be sold. At any
time before the date fixed for the sale, the taxpayer
may stay the proceedings by paying the taxes, fees,
charges, penalties and interests. If he fails to do so, the
sale shall proceed and shall be held either at the main
entrance of the provincial, city or municipal building,
or on the property to be sold, or at any other place as
determined by the local treasurer conducting the sale
and specified in the notice of sale.
Within thirty (30) days after the sale, the local
treasurer or his deputy shall make a report of the sale
to the sanggunian concerned, and which shall form
part of his records. After consultation with the
sanggunian, the local treasurer shall make and deliver
to the purchaser a certificate of sale, showing the
proceedings of the sale, describing the property sold,
stating the name of the purchaser and setting out the
exact amount of all taxes, fees, charges, and related
surcharges, interests, or penalties: Provided, however,
That any excess in the proceeds of the sale over the
claim and cost of sales shall be turned over to the
owner of the property.
The local treasurer may, by ordinance duly approved,
advance an amount sufficient to defray the costs of
collection by means of the remedies provided for in
this Title, including the preservation or transportation
in case of personal property, and the advertisement
and subsequent sale, in cases of personal and real
property including improvements thereon.
SECTION 179. Redemption of Property Sold. - Within

one (1) year from the date of sale, the delinquent
taxpayer or his representative shall have the right to
redeem the property upon payment to the local
treasurer of the total amount of taxes, fees, or charges,
and related surcharges, interests or penalties from the
date of delinquency to the date of sale, plus interest of
not more than two percent (2%) per month on the
purchase price from the date of purchase to the date of
redemption. Such payment shall invalidate the
certificate of sale issued to the purchaser and the
owner shall be entitled to a certificate of redemption
from the provincial, city or municipal treasurer or his
deputy.
The provincial, city or municipal treasurer or his
deputy, upon surrender by the purchaser of the
certificate of sale previously issued to him, shall
forthwith return to the latter the entire purchase price
paid by him plus the interest of not more than two
percent (2%) per month herein provided for, the
portion of the cost of. sale and other legitimate
expenses incurred by him, and said property
thereafter shall be free.from the lien of such taxes, fees,
or charges, related surcharges, interests, and penalties.
The owner shall not, however, be deprived of the
possession of said property and shall be entitled to the
rentals and other income thereof until the expiration
of the time allowed for its redemption.
The owner of the delinquent real property or person having

legal interest therein, or his representative, has the right to redeem
the property within one year from the date of sale upon payment of
the delinquent tax and other fees. The period of redemption of tax
delinquent properties should be counted not from the date of
registration of the certificate of sale, as previously provided by
Section 78 of Presidential Decree No. 464, but rather on the date of
sale of the tax delinquent property, as explicitly provided by Section

261.584
SECTION 180. Final Deed to Purchaser. - In case the

taxpayer fails to redeem the property as provided
herein, the local treasurer shall execute a deed
conveying to the purchaser so much of the property as
has been sold, free from liens of any taxes, fees,
charges, related surcharges, interests, and penalties.
The deed shall succinctly recite all the proceedings
upon which the validity of the sale depends.
SECTION 181. Purchase of Property by the Local
Government Unitsfor Want of Bidder. - In case there is
no bidder for the real property advertised for sale as
provided herein, or if the highest bid is for an amount
insufficient to pay the taxes, fees, or charges, related
surcharges, interests, penalties and costs, the local
treasurer conducting the sale shall purchase the
property in behalf of the local government unit
concerned to satisfy the claim and within two (2) days
thereafter shall make a report of his proceedings
which shall be reflected upon the records of his office.
It shall be the duty of the Registrar of Deeds
concerned upon registration with his office of any
such declaration of forfeiture to transfer the title of the
forfeited property to the local government unit
concerned without the necessity of an order from a
competent court.
Within one (1) year from the date of such forfeiture,
the taxpayer or any of his representative, may redeem
the property by paying to the local treasurer the full
amount of the taxes, fees, charges, and related
surcharges, interests, or penalties, and the costs of
sale. If the property is not redeemed as provided
5" City Mayor v. Rizal Commercial Banking Corporation, G.R. No. 171033, August 3,
2010.
herein, the ownership thereof shall be fully vested on

SECTION 182. Resale of Real Estate Taken for Taxes, Fees,
or Charges. - The sanggunian concerned may, by
ordinance duly approved, and upon notice of not less
than twenty (20) days, sell and dispose of the real
property acquired under the preceding section at
public auction. The proceeds of the sale shall accrue to
the general fund of the local government unit
concerned.
SECTION 183. Collection of Delinquent Taxes, Fees,
Charges or other Revenues through JudicialAction. - The
local government unit concerned may enforce the
collection of delinquent taxes, fees, charges or other
revenues by civil action in any court of competent
jurisdiction. The civil action shall be filed by the local
treasurer within the period prescribed in Section 194
of this Code.
SECTION 184. Further Distraint or Levy. - The
remedies by distraint and levy may be repeated if
necessary until the full amount due, including all
expenses, is collected.
SECTION 185. Personal Property Exempt from Distraint
or Levy. - The following property shall be exempt
from distraint and levy, attachment or execution
thereof for delinquency in the payment of any local
tax, fee or charge, including the related surcharge and
interest:
(a) Tools and implements necessarily
used by the delinquent taxpayer in his
trade or employment;
(b) One (1) horse, cow, carabao, or
other beast of burden, such as the
delinquent taxpayer may select, and
necessarily used by him in his ordinary
occupation;
(c) His necessary clothing, and that of

all his family;
(d) Household furniture and utensils
necessary for housekeeping and used
for that purpose by the delinquent
taxpayer, such as he may select, of a
value not exceeding Ten thousand
pesos (P10,000.00);
(e) Provisions, including crops, actually
provided for individual or family use
sufficient for four (4) months;
(f) The professional libraries of doctors,
engineers, lawyers and judges;
(g) One fishing boat and net, not
exceeding the total value of Ten
thousand pesos (P10,000.00), by the
lawful use of which a fisherman earns
his livelihood; and
(h) Any material or article forming part
of a house or improvement of any real
property.
Although there is no express prohibition in the Local
Government Code, injunctions enjoining the collection of local taxes
are frowned upon.8
Chapter V
Miscellaneous Provisions
SECTION 186. Power to Levy Other Taxes, Fees or
Charges. - Local government units may exercise the
power to levy taxes, fees or charges on any base or
subject not otherwise specifically enumerated herein
or taxed under the provisions of the National Internal
Revenue Code, as amended, or other applicable laws:
5
0 Angeles City v. Angeles City Electric Corporation, G.R. No. 166134, June 29, 2010.
Provided, That the taxes, fees, or charges shall not be

unjust, excessive, oppressive, confiscatory or contrary
to declared national policy: Provided,further, That the
ordinance levying such taxes, fees or charges shall not
be enacted without any prior public hearing
conducted for the purpose.
SECTION 187. Procedurefor Approval and Effectivity of
Tax Ordinances and Revenue Measures;Mandatory Public
Hearings. - The procedure for approval of local tax
ordinances and revenue measures shall be in
accordance with the provisions of this Code: Provided,
That public hearings shall be conducted for the
purpose prior to the enactment thereof: Provided,
further, That any question on the constitutionality or
legality of tax ordinances or revenue measures may be
raised on appeal within thirty (30) days from the
effectivity thereof to the Secretary of Justice who shall
render a decision within sixty (60) days from the date
of receipt of the appeal: Provided, however, That such
appeal shall not have the effect of suspending the
effectivity of the ordinance and the accrual and
payment of the tax, fee, or charge levied therein:
Provided, finally, That within thirty (30) days after
receipt of the decision or the lapse of the sixty-day
period without the Secretary of Justice acting upon the
appeal, the aggrieved party may file appropriate
proceedings with a court of competent jurisdiction.
The Supreme Court in Jardine Davies Insurance Brokers, Inc. v.

AliposaN6 held:
... the dissatisfied taxpayer who questions the validity
or legality of a tax ordinance must file his appeal to
the Secretary of Justice, within 30 days from effectivity
thereof. In case the Secretary decides the appeal, a
586 G.R. No. 118900, February 27, 2003, citing Reyes v. Court of Appeals, G.R. No.
118223, December 10,1999.
period also of 30 days is allowed for an aggrieved

party to go to court. But if the Secretary does not act
thereon, after the lapse of :60 days, a party could
already proceed to seek relief in court. These three
separate periods are dearly given for compliance as a
prerequisite before seeking redress in a competent
court. Such statutory periods are set to prevent delays
as well as enhance the orderly and speedy discharge
of judicial functions. For this reason the courts
construe these provisions of statutes as mandatory.
A municipal tax ordinance empowers a local
government unit to impose taxes. The power to tax is
the most effective instrument to raise needed revenues
to finance and support the myriad activities of local
government units for the delivery of basic services
essential to the promotion of the general welfare and
enhancement of peace, progress, and prosperity of the
people. Consequently, any delay in implementing tax
measures would be to the detriment of the public. It is
for this reason that protests over tax ordinances are
required to be done within certain time frames. In the
instant case, it is our view that the failure of
petitioners to appeal to the Secretary of Justice within
30 days as required by Sec. 187'of R.A. 7169 is fatal to
their cause.
SECTION 188. Publication of Tax Ordinances and

Revenue Measures. - Within ten (10) days after their
approval, certified true copies of all provincial, city,
and municipal tax ordinances or revenue measures
shall be published in full for three (3) consecutive days
in a newspaper of local circulation: Provided,
however, That in provinces, cities and municipalities
where there are no newspapers of local circulation, the
same may be posted in at least two (2) conspicuous
and publicly accessible places.
After the proposed schedule of fair market values of the

different classes of real property in a local government unit within
Metro Manila, as prepared jointly by the local assessors of the district
to which the city or municipality belongs, has been published or
posted in accordance with Section 212 and enacted into ordinances
by the sanggunians of the municipalities and cities concerned, the
ordinances containing the schedule of fair market values must
themselves be published or posted in the manner provided by
Section 188.587
SECTION 189. Furnishingof Copies of Tax Ordinances

and Revenue Measures. - Copies of all provincial, city,
and municipal and barangay tax ordinances and
revenue measures shall be furnished the respective
local treasurers for public dissemination.
SECTION 190. Attempt to Enforce Void or Suspended Tax
Ordinances and Revenue Measures. - The enforcement
of any tax ordinance or revenue measure after due
notice of the disapproval or suspension thereof shall
be sufficient ground for administrative disciplinary
action against the local officials and employees
responsible therefor.
SECTION 191. Authority of Local Government Units to
Adjust Rates of Tax Ordinances. - Local government
units shall have the authority to adjust the tax rates as
prescribed herein not oftener than once every five (5)
years, but in no case shall such adjustment exceed ten
percent (10%) of the rates fixed under this Code.
SECTION 192. Authority to Grant Tax Exemption
Privileges. - Local government units may, through
ordinances duly approved, grant tax exemptions,
incentives or reliefs under such terms and conditions
as they may deem necessary.
5
V Figuerres v. Court of Appeals, G.R. No. 119172, March 25,1999.
SECTION 193. Withdrawal of Tax Exemption Privileges.

- Unless otherwise provided in this Code, tax
exemptions or incentives granted to, or presently
enjoyed by all persons, whether natural or juridical,
including government-owned or -controlled
corporations, except local water districts, cooperatives
duly registered under R.A. No. 6938, non-stock and
non-profit hospitals and educational institutions, are
hereby withdrawn upon the effectivity of this Code.
The effect of the Local Government Code on the tax

exemption privileges of the National Power Corporation has already
been extensively discussed and settled in National Power Corporation
v. City of Cabanatuan.mThe Court in that case recognized the removal
of the blanket exclusion of government instrumentalities from local
taxation as one of the most significant provisions of the Local
Government Code of 1991. Section 193, an express and general repeal
of all statutes granting exemptions from local taxes, withdrew the
sweeping tax privileges previously enjoyed by the NPC under its
Charter.58 9
The withdrawal of exemptions, whether under Section 193 or
137 of the Local Government Code, pertains only'to those already
existing when the Local Government Code was enacted. The
intention of the legislature was to remove all tax exemptions or
incentives granted priorto the enactment of the Code.0
Chapter VI
Taxpayer's Remedies
SECTION 194. Periods of Assessment and Collection. -
(a) Local taxes, fees, or charges shall be assessed
within five (5) years from the date they became due.
588 National Power Corporation v. City of Cabanatuan, G.R. No. 153675, April 28,
2004.
-"'Batangas Power Corporation v. Batangas City and National Power Corporation,
G.R.Nos. 152675 & 152771, April 28,2004.
MCity of Iloilo v. Smart Communications, Inc., G.R. No. 167260, February 27,2009,
No action for the collection of such taxes, fees, or

charges, whether administrative or judicial, shall be
instituted after the expiration of such period:
Provided, That taxes, fees or charges which have
accrued before the effectivity of this Code may be
assessed within a period of three (3) years from the
date they became due.
(b) In case of fraud or intent to evade the payment of
taxes, fees, or charges, the same may be assessed
within ten (10) years from discovery of the fraud or
intent to evade payment.
(c) Local taxes, fees, or charges may be collected
within five (5) years from the date of assessment by
administrative or judicial action. No such action shall
be instituted after the expiration of said period:
Provided, however, That taxes, fees or charges
assessed before the effectivity of this Code may be
collected within a period of three (3) years from the
date of assessment.
(d) The running of the periods of prescription
provided in the preceding paragraphs shall be
suspended for the time during which:
(1) The treasurer is legally prevented
from making the assessment of
collection;
(2) The taxpayer requests for a
reinvestigation and executes a waiver
in writing before expiration of the
period within which to assess or
collect; and
(3) The taxpayer is out of the country or
otherwise cannot be located.
See the related penal provisions under Sections 517 and 518 of
the Local Government Code.
SECTION 195. Protest of Assessment. - When the local

treasurer or his duly authorized representative finds
that correct taxes, fees, or charges have not been paid,
he shall issue a notice of assessment stating the nature
of the tax, fee, or charge, the amount of deficiency, the
surcharges, interests and penalties. Within sixty (60)
days from the receipt of the notice of assessment, the
taxpayer may file a written protest with the local
treasurer contesting the assessment; otherwise, the
assessment shall become final and executory. The local
treasurer shall decide the protest within sixty (60)
days from the time of its filing. If the local treasurer
finds the protest to be wholly or partly meritorious, he
shall issue a notice cancelling wholly or partially the
assessment. However, if the local treasurer finds the
assessment to be wholly or partly correct, he shall
deny the protest wholly or partly with notice to the
taxpayer. The taxpayer shall have thirty (30) days
from the receipt of the denial of the protest or from the
lapse of the sixty (60)-day period prescribed herein
within which to appeal with the court of competent
jurisdiction otherwise the assessment becomes
conclusive and unappealable.
SECTION 196. Claim for Refund of Tax Credit. - No
case or proceeding shall be maintained in any court
for the recovery of any tax, fee, or charge erroneously
or illegally collected until a written claim for refund or
credit has been fied with the local treasurer. No case
or proceeding shall be entertained in any court after
the expiration of two (2) years from the date of the
payment of such tax, fee, or charge, or from the date
the taxpayer is entitled to a refund or credit.
To be entitled to a refund/credit of local taxes, the following

procedural requirements must concur: first, the taxpayer must file a
written claim for refund/credit with the local treasurer; and second,
the case or proceeding for refund has to be filed within two years
from the date of the payment of the tax, fee, or charge or from the
date the taxpayer is entitled to a refund or credit. If the claimants fail
to prove that they have complied with the procedural requisites

stated under Section 196, their claim for local tax refund/credit must
be denied.59 '
As a general rule, a taxpayer may file a complaint assailing
the validity of the ordinance and praying for a refund of its perceived
overpayments without first filing a protest to the payment of taxes
due under the ordinance. However, the Supreme Court held that the
taxpayer is proscribed from filing its complaint with the Regional
Trial Court for the failure to appeal to the Secretary of Justice within
30 days from the effectivity date of the ordinance as mandated by
Section 187.m92
Title UI
REAL PROPERTY TAXATION
Chapter I
General Provisions
SECTION 197. Scope. - is Title shall govern the

administration, appraisal, assessment, levy and
collection of real property tax.
appraisal, assessment, levy and collection of real
property tax shall be guided by the following
fundamental principles:
(a) Real property shall be appraised at
its current and fair market value;
(b) Real property shall be classified for
assessment purposes on the basis of its
actual use;
(c) Real property shall be assessed on
the basis of a uniform classification
within each local government unit;
591
Metro Manila Shopping Mecca Corp. v. Toledo, G.R. No. 190818, June 5, 2013.
M Jardine Davies Insurance Brokers, Inc. v. Aliposa, G.R. No. 118900, February 27,
2003.
+(,121/,1(
Citation:
Tue Apr 17 11:20:42 2018



to prove that they have complied with the procedural requisites

stated under Section 196, their claim for local tax refund/credit must
be denied.59 '
As a general rule, a taxpayer may file a complaint assailing
the validity of the ordinance and praying for a refund of its perceived
overpayments without first filing a protest to the payment of taxes
due under the ordinance. However, the Supreme Court held that the
taxpayer is proscribed from filing its complaint with the Regional
Trial Court for the failure to appeal to the Secretary of Justice within
30 days from the effectivity date of the ordinance as mandated by
Section 187.m92
Title UI
REAL PROPERTY TAXATION
Chapter I
General Provisions
SECTION 197. Scope. - is Title shall govern the

administration, appraisal, assessment, levy and
collection of real property tax.
appraisal, assessment, levy and collection of real
property tax shall be guided by the following
(a) Real property shall be appraised at
its current and fair market value;
(b) Real property shall be classified for
assessment purposes on the basis of its
actual use;
(c) Real property shall be assessed on
the basis of a uniform classification
within each local government unit;
591
Metro Manila Shopping Mecca Corp. v. Toledo, G.R. No. 190818, June 5, 2013.
M Jardine Davies Insurance Brokers, Inc. v. Aliposa, G.R. No. 118900, February 27,
2003.
(d) The appraisal, assessment, levy and

collection of real property tax shall not
be let to any private person; and
(e) The appraisal and assessment of
real property shall be equitable
(a) "Acquisition Cost" for newly-acquired machinery
not yet depreciated and appraised within the year of
its purchase, refers to the actual cost of the machinery
to its present owner, plus the cost of transportation,
handling, and installation at the present site;
(b) "Actual Use" refers to the purpose for which the
property is principally or predominantly utilized by
the person in possession thereof;
(c) "Ad Valorem Tax" is a levy on real property
determined on the basis of a filed proportion of the
value of the property;
(d) "Agricultural Land" is land devoted principally to
the planting of trees, raising of crops, livestock and
poultry, dairying, salt making. inland fishing and
similar aquacultural activities, and other agricultural
activities, and is not classified as mineral, timber,
residential, commercial or industrial land;
(e) "Appraisal" is the act or process of determining the
value of property as of a specified date for a specific
purpose;
(f) "Assessment" is the act or process of determining
the value of a property, or proportion thereof subject
to tax, including the discovery, listing, classification,
and appraisal of properties;
(g) "Assessment Level" is the percentage applied to
the fair market value to determine the taxable value of
the property;
(h) "Assessed Value" is the fair market value of the

real property multiplied by the assessment level. It is
synonymous to taxable value;
(i) "Commercial Land" is land devoted principally for
the object of profit and is not classified as agricultural,
industrial, mineral, timber, or residential land;
(j) "Depreciated Value" is the value remaining after
deducting depreciation from the acquisition cost;
(k) "Economic Life" is the estimated period over
which it is anticipated that a machinery or equipment
may be profitably utilized;
(I) "Fair Market Value" is the price at which a
property may be sold by a seller who is not compelled
to sell and bought by a buyer who is not compelled to
buy;
(in) "Improvement" is a valuable addition made to a
property or an amelioration in its condition,
amounting to more than a mere repair or replacement
of parts involving capital expenditures and labor,
which is intended to enhance its value, beauty or
utility or to adapt it for new or further purposes;
(n) "Industrial Land" is land devoted principally to
industrial activity as capital investment and is not
classified as agricultural, commercial, timber, mineral
or residential land;
(o) "Machinery" embraces machines, equipment,
mechanical contrivances, instruments, appliances or
apparatus which may or may not be attached,
permanently or temporarily, to the real property. It
includes the physical facilities for production, the
installations and appurtenant service facilities, those
which are mobile, self-powered or self-propelled, and
those not permanently attached to the real property
which are actually, directly, and exclusively used to
meet the needs of the particular industry, business or
activity and which by their very nature and purpose
are designed for, or necessary to its manufacturing,

mining, logging, commercial, industrial or agricultural
purposes;
(p) "Mineral Lands" are lands in which minerals,
metallic or non-metallic, exist in sufficient quantity or
grade to justify the necessary expenditures to extract
and utilize such materials;
(q) "Reassessment" is the assigning of new assessed
values to property, particularly real estate, as the
result of a general, partial, or individual reappraisal of
the property;
(r) "Remaining Economic Life" is the period of time
expressed in years from the date of appraisal to the
date when the machinery becomes valueless;
(s) "Remaining Value" is the value corresponding to
the remaining useful life of the machinery;
(t) "Replacement or Reproduction Cost" is the cost
that would be incurred on the basis of current prices,
in acquiring an equally desirable substitute property,
or the cost of reproducing a new replica of the
property on the basis of current prices with the same
or closely similar material; and
(u) "Residential Land" is land principally devoted to
habitation.
SECTION 200. Administration of the Real Property Tax.
- The provinces and cities, including the
municipalities within the Metropolitan Manila Area,
shall be primarily responsible for the proper, efficient
and effective administration of the real property tax.
Chapter II
Appraisal and Assessment of Real Property
SECTION 201. Appraisal of Real Property. - All real
property, whether taxable or exempt, shall be
appraised at the current and fair market value
prevailing in the locality where the property is

situated. The Department of Finance shall promulgate
the necessary rules and regulations for the
classification, appraisal, and assessment of real
property pursuant to the provisions of this Code.
SECTION 202. Declarationof Real Property by the Owner
or Administrator. - It shall be the duty of all persons,
natural or juridical, owning or administering real
property, including the improvements therein, within
a city or municipality, or their duly authorized
representative, to prepare, or cause to be prepared,
and file with the provincial, city or municipal assessor,
a sworn statement declaring the true value of their
property, whether previously declared or undeclared,
taxable or exempt, which shall be the current and fair
market value of the property, as determined by the
declarant. Such declaration shall contain a description
of the property sufficient in detail to enable the
assessor or his deputy to identify the same for
assessment purposes. The sworn declaration of real
property herein referred to shall be filed with the
assessor concerned once every three (3) years during
the period from January first (1st) to June thirtieth
(30th) commencing with the calendar year 1992.
SECTION 203. Duty ofPerson Acquiring Real Propertyor
Making Improvement Thereon. - It shall also be the
duty of any person, or his authorized representative,
acquiring at any time real property in any
municipality or city or making any improvement on
real property, to prepare, or cause to be prepared, and
file with the provincial, city or municipal assessor, a
sworn statement declaring the true value of subject
property, within sixty (60) days after the acquisition of
such property or upon completion or occupancy of the
improvement, whichever comes earlier.
SECTION 204. Declaration of Real Property by the
Assessor. - When any person, natural or juridical, by
whom real property is required to be declared under

Section 202 hereof, refuses or fails for any reason to
make such declaration within the time prescribed, the
provincial, city or municipal assessor shall himself
declare the property in the name of the defaulting
owner, if known, or against an unknown owner, as the
case may be, and shall assess the property for taxation
in accordance with the provision of this Title. No oath
shall be required of a declaration thus made by the
provincial, city or municipal assessor.
SECTION 205. Listing of Real Property in the Assessment
Rolls. - (a) In every province and city, including the
municipalities within the Metropolitan Manila Area,
there shall be prepared and maintained by the
provincial, city or municipal assessor an assessment
roll wherein shall be listed all real property, whether
taxable or exempt, located within the territorial
jurisdiction of the local government unit concerned.
Real property shall be listed, valued and assessed in
the name of the owner or administrator, or anyone
having legal interest in the property.
(b) The undivided real property of a deceased person
may be listed, valued and assessed in the name of the
estate or of the heirs and devisees without designating
them individually; and undivided real property other
than that owned by a deceased may be listed, valued
and assessed in the name of one or more co-owners:
Provided,however, That such heir, devisee, or co-owner
shall be liable severally and proportionately for all
obligations imposed by this Title and the payment of
the real property tax with respect to the undivided
property.
(c) The real property of a corporation, partnership, or
association shall be listed, valued and assessed in the
same manner as that of an individual.
(d) Real property owned by the Republic of the
Philippines, its instrumentalities and political
subdivisions, the beneficial use of which has been
granted, for consideration or otherwise, to a taxable

person, shall be listed, valued and assessed in the
name of the possessor, grantee or of the public entity if
such property has been acquired or held for resale or
lease.
SECTION 206. Proofof Exemption of Real Propertyfrom
Taxation. - Every person by or for whom real
property is declared, who shall claim tax exemption
for such property under this Title shall file with the
provincial, city or municipal assessor within thirty (30)
days from the date of the declaration of real property
sufficient documentary evidence in support of such
claim including corporate charters, title of ownership,
articles of incorporation, by-laws, contracts, affidavits,
certifications and mortgage deeds, and similar
documents.
If the required evidence is not submitted within the
period herein prescribed, the property shall be listed
as taxable in the assessment roll. However, if the
property shall be proven to be tax exempt, the same
shall be dropped from the assessment roll.
A claim for exemption from payment of real property taxes

does not question the assessor's authority to assess and collect such
taxes, but pertains to the reasonableness or correctness of the
assessment by the local assessor. This is a question of fact, which
should be resolved by the LBAA. By providing that real property not
declared and proved as tax-exempt shall be included in the
assessment roll, Section 206 implies that the local assessor has the
authority to assess the property for realty taxes, and any subsequent
claim for exemption shall be allowed only when sufficient proof has
been adduced supporting the claim. If the property being taxed has
not been dropped from the assessment roll, taxes must be paid under
protest if the exemption from taxation is insisted upon.59
5%Camp John Hay Development Corporation v. Central Board of Assessment

Appeals, G.R No. 169234, October 2, 2013.
SECTION 207. Real PropertyIdentification System. - All

declarations of real property made under the
provisions of this Title shall be kept and filed under a
uniform classification system to be established by the
provincial, city or municipal assessor.
SECTION 208. Notification of Transfer of Real Property
Ownership. - Any person who shall transfer real
property ownership to another shall notify the
provincial, city or municipal assessor concerned
within sixty (60) days from the date of such transfer.
The notification shall include the mode of transfer, the
description of the property alienated, the name and
address of the transferee.
SECTION 209. Duty of Registrar of Deeds to Apprise
Assessor of Real Property Listed in Registry. - (a) To
ascertain whether or not any real property entered in
the Registry of Property has escaped discovery and
listing for the purpose of taxation, the Registrar of
Deeds shall prepare and submit to the provincial, city
or municipal assessor, within six (6) months from the
date of effectivity of this Code and every year
thereafter, an abstract of his registry, which shall
include brief but sufficient description of the real
properties entered therein, their present owners, and
the dates of their most recent transfer or alienation
accompanied by copies of corresponding deeds of
sale, donation, or partition or other forms of
alienation.
(b) It shall also be the duty of the Registrar of Deeds to
require every person who shall present for registration
a document of transfer, alienation, or encumbrance of
real property to accompany the same with a certificate
to the effect that the real property subject of the
transfer, alienation, or encumbrance, as the case may
be, has been fully paid of all real property taxes due
thereon. Failure to provide such certificate shall be a
valid cause for the Registrar of Deeds to refuse the

registration of the document.
SECTION 210. Duty of Official Issuing Building Permit
or Certificate of Registration of Machinery to Transmit
Copy to Assessor. - Any public official or employee
who may now or hereafter be required by law or
regulation to issue to any person a permit for the
construction, addition, repair, or renovation of a
building, or permanent improvement on land, or a
certificate of registration for any machinery, including
machines, mechanical contrivances, and apparatus
attached or affixed on land or to another real property,
shall transmit a copy of such permit or certificate
within thirty (30) days of its issuance, to the assessor
of the province, city or municipality where the
property is situated.
SECTION 211. Duty of Geodetic Engineers to Furnish
Copy of Plans to Assessor. - It shall be the duty of all
geodetic engineers, public or private, to furnish free of
charge to the assessor of the province, city or
municipality where the land is located with a white or
blue print copy of each of all approved original or
subdivision plans or maps of surveys executed by
them within thirty (30) days from receipt of such plans
from the Lands Management Bureau, the Land
Registration Authority, or the Housing and Land Use
Regulatory Board, as the case may be.
SECTION 212. Preparationof Schedule of Fair Market
Values. -,- Before any general revision of property
assessment is made pursuant to the provisions of this
Title, there shall be prepared a schedule of fair market
values by the provincial, city and municipal assessors
of the municipalities within the Metropolitan Manila
Area for the different classes of real property situated
in their respective local government units for
enactment by ordinance of the sanggunian concerned.
The schedule of fair market values shall be published
in a newspaper of general circulation in the province,

city or municipality concerned, or in the absence
thereof, shall be posted in the provincial capitol, city
or municipal hall and in two (2) other conspicuous
public places therein.
The Supreme Court "reconciled" the provisions and arrived

at the following steps in the preparation of the said schedule, as
follows:
1. The assessor in each municipality or city in the
Metropolitan Manila area shall prepare his/her proposed
schedule of values, in accordance with Section 212,
Republic Act No. 7160.
2. Then, the Local Treasury and Assessment District shall
meet, per Section 9 of Presidential Decree No. 921. In the
instant case, that district shall be composed of the assessors
in Quezon City, Pasig, Marikina, Mandaluyong and San
Juan, pursuant to Section I of the Decree. In this meeting,
the different assessors shall compare their individual
assessments, discuss and thereafter jointly agree and
produce a schedule of values for their district, taking into
account the preamble of the Decree that they should
evolve "a progressive revenue raising program that will
not unduly burden the taxpayers."
3. The schedule jointly agreed upon by the assessors shall
then be published in a newspaper of general circulation
and submitted to the sanggunian concerned for enactment
by ordinance in accordance with Section 212 of Republic
Act No. 7160.
This construction is unwarranted as the Local Government
Code seems to have intended to supplant the mechanism under
Presidential Decree No. 9 with the mechanism under the Code. 94
594
Ty v. Trampe, G.R. No. 117577, December 1,1995.
SECTION 213. Authority ofAssessor to Take Evidence. -

For the purpose of obtaining information on which to
base the market value of any real property, the
assessor of the province, city or municipality or his
deputy may summon the owners of the properties to
be affected or persons having legal interest therein
and witnesses, administer oaths, and take deposition
concerning the property, its ownership, amount,
nature, and value.
SECTION 214. Amendment of Schedule of Fair Market
Values. - The provincial, city or municipal assessor
may recommend to the sanggunian concerned
amendments to correct errors in valuation in the
schedule of fair market values. The sanggunian
concerned shall, by ordinance, act upon the
recommendation within ninety (90) days from receipt
thereof.
SECTION 215. Classes of Real Property for Assessment
Purposes. - For purposes of assessment, real property
shall be classified as residential, agricultural,
commercial, industrial, mineral, timberland or special.
The city or municipality within the Metropolitan
Manila Area, through their respective sanggunian,
shall have the power to classify lands as residential,
agricultural, commercial, industrial, mineral,
timberland, or special in accordance with their zoning
ordinances.
SECTION 216. Special Classes of Real Property. - All
lands, buildings, and other improvements thereon
actually, directly and exclusively used for hospitals,
cultural, or scientific purposes, and those owned and
used by local water districts, and government-owned
or -controlled corporations rendering essential public
services in the supply and distribution of water
and/or generation and transmission of electric power
shall be classified as special.
SECTION 217. Actual Use of Real Property as Basis for

Assessment. - Real property shall be classified, valued
and assessed on the basis of its actual use regardless of
where located, whoever owns it, and whoever uses
it.595
SECTION 218. Assessment Levels. - The assessment

levels to be applied to the fair market value of real
property to determine its assessed value shall be fixed
by ordinances of the sangguniang panlalawigan,
sangguniang panlungsod or sangguniang bayan of a
municipality within the Metropolitan Manila Area, at
the rates not exceeding the following:
(a) On Lands:
Class Assessment Levels
Residential 20%
Agricultural 40%
Commercial 50%
Industrial 50%
Mineral 50%
Timberland
20%
(b) On Buildings and Other Structures:

(1) Residential
FairMarket Value
Over Not Over Assessment Levels
P175,000.00 0%
P175,000.00 300,000.00 10%
300,000.00 500,000.00 20%
m See City Assessor of Cebu City v. Association of Benevola de Cebu, Inc., G.R. No.
152904, June 8, 2007.
500,000.00 750,000.00 25%

750,000.00 1,000,000.00 30%
1,000,000.00 2,000,000.00 35%
2,000,000.00 5,000,000.00 40%
5,000,000.00 10,000,000.00 50%
10,000,000.00 60%
(2) Agricultural
FairMarket Value
P300,000.00 25%
P300,000.00 500,000.00 30%
500,000.00 750,000.00 35%
750,000.00 1,000,000.00 40%
1,000,000.00 2,000,000.00 45%
2,000,000.00 50%
(3) Commercial / Industrial

FairMarket Value
Over Not Over Assess ment Levels
P300,000.00 30%
P300,000.00 500,000.00 35%
500,000.00 750,000.00 40%
750,000.00 1,000,000.00 50%
1,000,000.00 2,000,000.00 60%
2,000,000.00 5,000,000.00 70%
5,000,000.00 10,000,000.00 75%
10,000,000.00 80%
(4) Timberland
FairMarket Value
P300,000.00 45%
P300,000.00 500,000.00 50%
500,000.00 750,000.00 55%
750,000.00 1,000,000.00 60%
1,000,000.00 2,000,000.00 65%
2,000,000.00 70%
(c) On Machineries
Class Assessment Levels
Agricultural 40%
Residential 50%
Commercial 80%
Industrial 80%
(d) On Special Classes: The assessment levels for

all lands, buildings, machineries and other
improvements;
Actual Use Assessment Level
Cultural 15%
Scientific 15%
Hospital 15%
Local water districts 10%
Government-owned or
-controlled corporations
engaged in the supply

and distribution of water
and/or generation and
transmission of
electric power 10%
SECTION 219. General Revision of Assessments and

Property Classification. - The provincial, city or
municipal assessor shall undertake a general revision
of real property assessments within two (2) years after
the effectivity of this Code and every three (3) years
thereafter.
SECTION 220. Valuation of Real Property. - In cases
where (a) real property is declared and listed for
taxation purposes for the first time; (b) there is an
ongoing general revision of property classification and
assessment; or (c) a request is made by the person in
whose name the property is declared, the provincial,
city or municipal assessor or his duly authorized
deputy shall, in accordance with the provisions of this
Chapter, make a classification, appraisal and
assessment of the real property listed and described in
the declaration irrespective of any previous
assessment or taxpayer's valuation thereon: Provided,
however, That the assessment of real property shall not
be increased oftener than once every three (3) years
except m case of new improvements substantially
increasing the value of said property or of any change
in its actual use.
Whenever the local assessor sends a notice to the owner or

lawful possessor of real property of its revised assessed value, the
former shall thereafter no longer have any jurisdiction to entertain
any request for a review or readjustment. The appropriate forum
where the aggrieved party may bring his appeal is the LBAA, as
provided by law. To allow this procedure would indeed invite
corruption in the system of appraisal and assessment. It conveniently
courts a graft-prone situation where values of real property may be

initially set unreasonably high, and then subsequently reduced upon
the request of a property owner. In the latter instance, allusions of a
possible covert, illicit trade-off cannot be avoided, and in fact can
conveniently take place. Such occasion for mischief must be
prevented and excised from our system.59
There is a provision which penalizes the intentional and
deliberate delay of the assessment of real property. Section 518 of the
Code provides:
SECTION 221. Date of Effectivity of Assessment or

Reassessment. - All assessments or reassessments
made after the first (1st) day of January of any year
shall take effect on the first (lt) day of January of the
succeeding year: Provided, however, That the
reassessment of real property due to its partial or total
destruction, or to a major change in its actual use, or to
any great and sudden inflation or deflation of real
property values, or to the gross illegality of the
assessment when made or to any other abnormal
cause, shall be made within ninety (90) days from the
date any such cause or causes occurred, and shall take
effect at the beginning of the quarter next following
the reassessment.
5%
Callanta v. Office of the Ombudsman, G.R. Nos. 115253-74, January 30,1998.
In Lopez v. City of .Manila,-W the petitioner argued that since

Manila Ordinance No, 7905 was approved on April 10, 1996, it
cannot be implemented in the year 1996. Using Section 221 as the
basis for his argument, petitioner claims that the assessments or
reassessments made after the first day of January of any year shall
take effect on the first (1st) day of January of the succeeding year.
The Court stressed that Manila Ordinance No. 7905 is
favorable to the taxpayers when it specifically states that the reduced
assessment levels shall be applied retroactively to January 1, 1996.
The reduced assessment levels multiplied by the schedule of fair
market values of real properties, provided by Manila Ordinance No.
7894, resulted to decrease in taxes. The Court held that to that extent,
the ordinance is likewise, a social legislation intended to soften the
impact of the tremendous increase in the value of the real properties
subject to tax. The lower taxes will ease, in part, the economic
predicament of the low and middle-income groups of taxpayers.
Therefore, in enacting this ordinance, the due process of law was
considered by the City of Manila so that the increase in realty tax will
not amount to the confiscation of the property.598
SECTION 222, Assessment of Property Subject to Back

Taxes. - Real property declared for the first time shall
be assessed for taxes for the period during which it
would have been liabie but in no case for more than
ten (10) years prior to the date of initial assessment:
Provided, however, That such taxes shall be computed
on the basis of the applicable schedule of values in
force during the corresponding period.
If such taxes are paid on or before the end of the
quarter following the date the notice of assessment
was received by the owner or his representative, no
interest for delinquency shall be imposed thereon;
otherwise, such taxes shall be subject to an interest at
the rate of two percent (2%) per month or a fraction
W G.R. No. 127139, February 19,1999.

m9 Lopez v. City of Manila, G.R. No. 127139, February 19,1999.
thereof from the date of the receipt of the assessment

until such taxes are fully paid.
SECTION 223. Notification of New or Revised
Assessment. - When real property is assessed for the
first time or when an existing assessment is increased
or decreased, the provincial, city or municipal assessor
shall within thirty (30) days give written notice of such
new or revised assessment to the person in whose
name the property is declared. The notice may be
delivered personally or by registered mail or through
the assistance of the punong barangay to the last
known address of the person to be served.
SECTION 224. Appraisal and Assessment of Machinery.
- (a) The fair market value of a brand-new machinery
shall be the acquisition cost. In all other cases, the fair
market value shall be determined by dividing the
remaining economic life of the machinery by its
estimated economic life and multiplied by the
replacement or reproduction cost.
(b) If the machinery is imported, the acquisition cost
includes freight, insurance, bank and other charges,
brokerage, arrastre and handling, duties and taxes,
plus cost of inland transportation, handling, and
installation charges at the present site. The cost in
foreign currency of imported machinery shall be
converted to peso cost on the basis of foreign currency
exchange rates as fixed by the Central Bank,
SECTION 225. DepreciationAllowance for Machinery. -
For purposes of assessment, a depreciation allowance
shall be made for machinery at a rate not exceeding
five percent (5%) of its original cost or its replacement
or reproduction cost, as the case may be, for each year
of use: Provided, however, That the remaining value
for all kinds of machinery shall be fixed at not less
than twenty percent (20%) of such original,
replacement, or reproduction cost for so long as the
machinery is useful and in operation.
Chapter M
Assessment Appeals
SECION 226. Local Board of Assessment Appeals. -
Any owner or person having legal interest in the
property who is not satisfied with the action of the
provincial, city or municipal assessor in the
assessment of his property may, within sixty (60) days
from the date of receipt of the written notice of
assessment, appeal to the Board of Assessment
Appeals of the province or city by filing a petition
under oath in the form prescribed for the purpose,
together with copies of the tax declarations and such
affidavits or documents submitted in support of the
appeal.
The Local Government Code provides various remedies to

taxpayers. If a taxpayer assails the legality of a tax ordinance, the
remedies available to the taxpayer are provided under Sections 187,
226 and 252.
Section 187 provides that the taxpayer may question the
constitutionality or legality of tax ordinance on appeal within thirty
(30) days from effectivity thereof to the Secretary of Justice. The
petitioner, after finding that his assessment is unjust, confiscatory or
excessive, must have brought the case before the Secretary of Justice
for questions of legality or constitutionality of the city ordinance. 9
Under Section 226, an owner of real property who is not
satisfied with the assessment of his property may, within sixty (60)
days from notice of assessment, appeal to the Board of Assessment
Appeals.w
If the taxpayer questions the excessiveness of the amount of
tax, she must first pay the amount due in accordance with Section
252. Then, she must request the annotation of the phrase "paid under
N9 Lopez v. City of Manila, G.R. No. 127139, February 19,1999.

6w Lopez v. City of Manila, G.R. No. 127139, February 19,1999.
protest" and accordingly appeal to the Board of Assessment Appeals

by filing a petition under oath together with copies of the tax
0
declarations and affidavits or documents to support his appeal.
In National Power Corporation v. Province of Quezon, 6m the
Supreme Court explained that a person legally burdened with the
obligation to pay for the tax imposed on a property has legal interest
in the property and the personality to protest a tax assessment on the
property. The Court interpreted Section 226 (on the rules governing
an assessment protest) alongside Section 250 (on the payment of real
property tax). The Court held that both provisions refer to the same
parties who may protest and pay the tax:
T ourt226. Ldthat fhAssessmen t Appeal.---'

.Any' owner or personhavintg legainterest in the
poperty wo r ot satisfied with the ation of th es
assesmet
o hi prpery my, ithn sxty(60) days
the w e thhe of receip of the rtten o ce of
fm
assesmet,
ppel totheBoad o Asessmienit
Inftallus, -The oer of the real tproperty or the

Hoeeprsoncal ciiity or muncalt tasesyso exresl th es
person having~ 1eantrs thereini may paythe basic
realproprty ax .. due thereon withouItinterest i
Axnprpeals owed provine ornmn
city lese.t.pivt
SECTION
enitesyomwen
250 t ofa sessl ety aesOnhbas
The Court iconcluded that the liability for taxes generally rests
on the owner of the real property at the time the tax accrues.
However, personal liability for realty taxes may also expressly rest
on the entity With the beneficial use of the real property, such as the
tax on property owned by the government but leased to. private
persons or entities, or when the tax assessment is made on the basis
of the actual, use of the property. In either case, the unpaid realty tax
attaches to the property but is directly chargeable against the taxable
6M Lopez v. Cityr of Manila, G.R. No. 127139, February 19,1999.

60 National Power Corporation v. Province of Quezon, G.R. No. 171587, July 15,
209.
person who has actual and beneficial use and possession of the property
regardless of whether or not that person is the owner.
SECTION 227. Organization, Powers, Duties, and

Functions of the Local Board of Assessment Appeals. - (a)
The Board of Assessment Appeals of the province or
city shall be composed of the Registrar of Deeds, as
Chairman, the provincial or city prosecutor and the
provincial, or city engineer as members, who shall
serve as such in an ex officio capacity without
additional compensation.
(b) The chairman of the Board shall have the power to

designate any employee of the province or city to
serve as secretary to the Board also without additional
compensation.
(c) The chairman and members of the Board of
Assessment Appeals of the province or city shall
assume their respective positions without need of
further appointment or special designation
immediately upon effectivity of this Code. They shall
take oath or affirmation of office in the prescribed
form.
(d) In provinces and cities without a provincial or city
engineer, the district engineer shall serve as member
of the Board. In the absence of the Registrar of Deeds,
or the provincial or city prosecutor, or the provincial
or city engineer, or the district engineer, the persons
performing their duties, whether in an acting capacity
or as a duly designated officer-in-charge, shall
automatically become the chairman or member,
respectively, of the said Board, as the case may be.
SECTION 228. Meetings and Expenses of the Local Board
of Assessment Appeals. - (a) The Board of Assessment
Appeals of the province or city shall meet once a
month and as often as may be necessary for the
prompt disposition of appealed cases. No member of
the Board shall be entitled to per diems or travelling

expenses for his attendance in Board meetings, except
when conducting an ocular inspection in connection
with a case under appeal.
(b) All expenses of the Board shall be charged against
the general fund of the province or city, as the case
may be. The sanggunian concerned shall appropriate
the necessary funds to enable the Board in their
respective localities to operate effectively.
SECTION 229. Action by the Local Board of Assessment
Appeals. - (a) The Board shall decide the appeal
of receipt of such appeal. The Board, after hearing,
shall render its decision based on substantial evidence
or such relevant evidence on record as a reasonable
mind might accept as adequate to support the
conclusion.
(b) In the exercise of its appellate jurisdiction, the
Board shall have the power to summon witnesses,
administer oaths, conduct ocular inspection, take
depositions, and issue subpoena and subpoena duces
tecum. The proceedings of the Board shall be
conducted solely for the purpose of ascertaining the
facts without necessarily adhering to technical rules
applicable in judicial proceedings.
(c) The secretary of the Board shall furnish the owner
of the property or the person having legal interest
therein and the provincial or city assessor with a copy
of the decision of the Board. In case the provincial or
city assessor concurs in the revision or the assessment,
it shall be his duty to notify the owner of the property
or the person having legal interest therein of such fact
using the form prescribed for the purpose. The owner
of the property or the person having legal interest
therein or the assessor who is not satisfied with the
decision of the Board, may, within thirty (30) days
after receipt of the decision of said Board, appeal to
the Central Board of Assessment Appeals, as herein
provided. The decision of the Central Board shall be

final and executory.
SECTION 230. Central Board of Assessment Appeals. -
The Central Board of Assessment Appeals shall be
composed of a chairman and two (2) members to be
appointed by the President, who shall serve for a term
of seven (7) years, without reappointment. Of those
first appointed, the chairman shall hold office for
seven (7) years, one member for five (5) years, and the
other member for three (3) years. Appointment to any
vacancy shall be only for the unexpired portion of the
term of the predecessor. In no case shall any member
be appointed or designated in a temporary or acting
capacity. The chairman and the members of the Board
shall be Filipino citizens, at least forty (40) years old at
the time of their appointment, and members of the Bar
or Certified Public Accountants for at least ten (10)
years immediately preceding their appointment. The
chairman of the Board of Assessment Appeals shall
have the salary grade equivalent to the rank of
Director IM under the Salary Standardization Law
exclusive of allowances and other emoluments. The
members of the Board shall have the salary grade
equivalent to the rank of Director IUunder the Salary
Standardization Law exclusive of allowances and
other emoluments. The Board shall have appellate
jurisdiction over all assessment cases decided by the
Local Board of Assessment Appeals.
There shall be Hearing Officers to be appointed by the
Central Board of Assessment Appeals pursuant to
civil service laws, rules and regulations, one each for
Luzon, Visayas and Mindanao, who shall hold office
in Manila, Cebu City and Cagayan de Oro City,
respectively, and who shall serve for a term of six (6)
years, without reappointment until their successors
have been appointed and qualified. The Hearing
Officers shall have the same qualifications as that of
the Judges of the Municipal Trial Courts.
The Hearing Officers shall each have the salary grade

equivalent to the rank of Director I under the Salary
Standardization Law exclusive of allowances and
other emoluments. The Hearing Officers shall try and
receive evidences on the appealed assessment cases as
may be directed by the Board.
The Central Board Assessment Appeals, in the
performance of its powers and duties, may establish
and organize staffs, offices, units, prescribe the titles,
functions and duties of their members and adopt its
own rules and regulations.
Unless otherwise provided by law, the annual
appropriations for the Central Board of Assessment
Appeals shall be included in the budget of the
Department of Finance in the corresponding General
Appropriations Act.
SECTION 231. Effect of Appeal on the Payment of Real
Property Tax. - Appeal on assessments of real
property made under the provisions of this Code
shall, in no case, suspend the collection of the
corresponding realty taxes on the property involved
as assessed by the provincial or city assessor, without
prejudice to subsequent adjustment depending upon
the final outcome of the appeal.
Chapter IV
Imposition of Real Property Tax
SECTION 232. Power to Levy Real Property Tax. - A
province or city or a municipality within the
Metropolitan Manila Area my levy an annual ad
valorem tax on real property such as land, building,
machinery, and other improvement not hereinafter
specifically exempted.
SECTION 233. Rates of Levy. - A province or city or a
municipality within the Metropolitan Manila Area
shall fix a uniform rate of basic real property tax

applicable to their respective localities as follows:
(a) In the case of a province, at the rate not exceeding
one percent (1%) of the assessed value of real
property; and
(b) In the case of a city or a municipality within the
Metropolitan Manila Area, at the rate not exceeding
two percent (2%) of the assessed value of real
property.
SECTION 234. Exemptions from Real Property Tax. -
The following are exempted from payment of the real
property tax:
(a) Real property owned by the Republic of the
Philippines or any of its political subdivisions except
when the beneficial use thereof has been granted, for
consideration or otherwise, to a taxable person;
The portions of the properties not leased to taxable entities

are exempt from real estate tax while the portions of the properties
leased to taxable entities are subject to real estate tax. The law
imposes the liability to pay real estate tax on the Republic of the
Philippines for the portions of the properties leased to taxable
entities. It is, of course, assumed that the Republic of the Philippines
passes on the real estate tax as part of the rent to the lessees.6" 3
In MCIAA v. Marcos,64the Supreme Court differentiated the
following concepts, thus:
The terms "Republic of the Philippines" and
"National Government" are not interchangeable. The
former is broader and synonymous with
"Government of the Republic of the Philippines"
which the Administrative Code of 1987 defines as the
"corporate governmental entity through which the
functions of government are exercised throughout the
603 City of Pasig v. Republic of the Philippines, G.R No. 185023, August 24, 2011.
604 G.R. No. 120082, September 11, 1996.
Philippines, including, save as the contrary appears

from the context, the Various arms through which
political authority is made affective in the Philippines,
whether pertaining to the autonomous regions, the
provincial, city, municipal or barangay subdivisions
or other forms of local government." These
"autonomous regions, provincial, city, municipal or
barangay subdivisions" are the political subdivisions.
On the other hand, "National Government" refers "to
the entire machinery of the central government, as
distinguished from the different forms of local
governments." The National Government then is
composed of the three great departments: the
executive, the legislative and the judicial.
An "agency" of the Government refers to "any of the
various units of the Government, including a
department, bureau, office, instrumentality, or
government-owned or controlled corporation, or a
local government or a distinct unit therein;" while an
"instrumentality" refers to "any agency of the
National Government, not integrated within the
department framework, vested with special functions
or jurisdiction by law, endowed with some if not all
corporate powers, administering special funds, and
enjoying operational autonomy, usually through a
charter. This term includes regulatory agencies,
chartered institutions and government-owned and
controlled corporations."
The Court explained that if Section 234 (a) intended to extend
the exception therein to the withdrawal of the exemption from
payment of real property taxes under the last sentence of the said
section to the agencies and instrumentalities of the National
Government mentioned in Section 133 (o), then it should have
restated the wording of the latter. Yet, it did not. The justification for
this restricted exemption in Section 234 (a) seems obvious: to limit
further tax exemption privileges, especially in light of the general
provision on withdrawal of tax exemption privileges in Section 193
and the special provision on withdrawal of exemption from payment
of real property taxes in the last paragraph of Section 234. These

policy considerations are consistent with the State policy to ensure
autonomy to local governments and the objective of the Local
Government Code that they enjoy genuine and meaningful local
autonomy to enable them to attain their fullest development as self-
reliant communities and make them effective partners in the
attainment of national goals. The power to tax is the most effective
instrument to raise needed revenues to finance and support myriad
activities of local government units for the delivery of basic services
essential to the promotion of the general welfare and the
enhancement of peace, progress, and prosperity of the people. It may
also be relevant to recall that the original reasons for the withdrawal
of tax exemption privileges granted to government-owned and
controlled corporations and all other units of government were that
such privilege resulted in serious tax base erosion and distortions in
the tax treatment of similarly situated enterprises, and there was a
need for these entities to share in the requirements of development,
fiscal or otherwise, by paying the taxes and other charges due from
them.60
Subsequent cases adopt the rule that government
instrumentalities are not liable to pay real property tax unless the
same is leased to a taxable entity. In Manila International Airport
Authority v. City of Pasay,6 6 the Court ruled that MJAA is a
government instrumentality, which is exempt from any kind of tax
from the local governments. The Court declared that the airport
lands and buildings of MIAA are properties of public dominion
intended for public use, and as such are exempt from real property
tax under Section 234 (a) of the Local Government Code. However,
under the same provision, if MIAA leases its real property to a
taxable person, the specific property leased becomes subject to real
property tax. In this case, only those portions of the NAIA Pasay
properties, which are leased to taxable persons like private parties
are subject to real property tax.07
605 MCLAA v. Marcos, G.R. No. 120082, September 11, 1996.

&oG.R. No. 155650, July 20,2006.
Congress enacted the "GOCC Governance Act of 2011" (Rep. Act No. 10149
[2011]) which provides the following definitions:
SECTION 3. Definition of Terms. -
In Philippine Fisheries Development Authority v. Court of

Appeals, 8 the Court classified the Authority as an instrumentality of
the national government which is liable to pay taxes only with
respect to the portions of the property, the beneficial use of which
were vested in private entities. Likewise, in Government Service
(in) Government Financial Institutions (GFls) refer to financial

institutions or corporations in which the government directly or
indirectly owns majority of the capital stock and which are either:
(1) registered with or directly supervised by the Bangko Sentral ng
Pilipinas; or (2) collecting or transacting funds or contributions
from the public and places them in financial instruments or assets
such as deposits, loans, bonds and equity including, but not
limited to, the Government Service Insurance System and the
Social Security System
(n) Government Instrumentalities with Corporate Powers
(GICP)/Government Corporate Entities (GCE) refer to
instrumentalities or agencies of the government, which are neither
corporations nor agencies integrated within the departmental
framework, but vested by law with special functions or
jurisdiction, endowed with some if not all corporate powers,
administering special funds, and enjoying operational autonomy
usually through a charter including, but not limited to, the
following: the Manila International Airport Authority (MIAA), the
Philippine Ports Authority (PPA), the Philippine Deposit
Insurance Corporation (PDIC), the Metropolitan Waterworks and
Sewerage System (MWSS), the Laguna Lake Development
Authority (LLDA), the Philippine Fisheries Development
Authority (PFDA), the Bases Conversion and Development
Authority (BCDA), the Cebu Port Authority (CPA), the Cagayan
de Oro Port Authority, the San Fernando Port Authority, the Local
Water Utilities Administration (LWUA) and the Asian
Productivity Organization (APO).
(o) Government-Owned or -Controlled Corporation (GOCC) refers to
any agency organized as a stock or nonstock corporation, vested
with functions relating to public needs whether governmental or
proprietary in nature, and owned by the Government of the
Republic of the Philippines directly or through its
instrumentalities either wholly or, where applicable as in the case
of stock corporations, to the extent of at least a majority of its
outstanding capital stock: Provided, however, That for purposes of
this Act, the term "GOCC" shall include GICP/GCE and GFI as
defined herein.
(p) NoncharteredGOCC refers to a GOCC organized and operating
under Batas Pambansa Bilang 68, or "The Corporation Code of the
Philippines.
6m8G.R. No. 169836, July 31,2007.
Insurance System v. City Treasurer,6 9 the Supreme Court found GSIS

as an instrumentality of the national government, which is not liable
to pay real estate taxes assessed by the City of Manila. Following the
"beneficial use" rule, however, the Court held that the accrued real
property taxes are due from the Katigbak property, leased as it is to a
taxable entity. But the corresponding liability for the payment thereof
devolves to the taxable beneficial user. 610
(b) Charitable institutions, churches, parsonages or

convents appurtenant thereto, mosques, non-profit or
religious cemeteries and all lands, buildings, and
improvements actually, directly, and exclusively used
for religious, charitable or educational purposes;
A person claiming exemption under this section must prove

that its real property is actually, directly, and exclusively used for
educational purposes. Failing to do so would mean that the local
government correctly assessed the land for real property taxes for the
taxable period during which the land was not "being devoted solely
to petitioner's educational activities." 611
Under the 1973 and 1987 Constitutions and Republic Act No.
7160, in order to be entitled to the exemption, the petitioner is
burdened to prove, by clear and unequivocal proof, that (a) it is a
charitable institution; and (b) its real properties are actually, directly
and exclusively used for charitable purposes. "Exclusive" is defined
as possessed and enjoyed to the exclusion of others; debarred from
participation or enjoyment; and "exclusively" is defined, "in a
69 G.R. No. 186242, December 23, 2009.

610 In this case, the Supreme Court held that the present charter of the GSIS (Republic
Act No. 8291) reproduced the full tax exemption clause in its previous charter. Undr
Section 39 of the charter, "any assessment against the GSIS as of the approval of this
Act" is considered paid. This overruled its prior decision in City of Davao v. RTC,
Branch XII, Davao City (G.R. No. 127383, 18 August 2005) where it held that GSIS
was liable for real property taxes for the years 1992 to 1994 because its previous
exemption under Presidential Decree No. 1146 was considered withdrawn with the
enactment of the Local Government Code in 1991. In other words, GSIS should not
have been liable for those taxes because all assessments against it were considered
paid.
611 Angles University Foundation v. City of Angeles, G.R. No. 189999, June 27,2012.
manner to exclude; as enjoying a privilege exclusively." If real

property is used for one or more commercial purposes, it is not
exclusively used for the exempted purposes but is subject to taxation.
The words "dominant use" or "principal use" cannot be substituted
for the words "used exclusively" without doing violence to the
Constitutions and the law. Solely is synonymous with exclusively. 612
What is meant by actual, direct and exclusive use of the
property for charitable purposes is the direct and immediate and
actual application of the property itself to the purposes for which the
charitable institution is organized. It is not the use of the income from
the real property that is determinative of whether the property is
used for tax-exempt purposes. 613
In the Lung Center of the Philippines v. Quezon City,614 the
Supreme Court held that the portions of the land leased to private
entities as well as those parts of the hospital leased to private
individuals are not exempt from such taxes. On the other hand, the
portions of the land occupied by the hospital and portions of the
hospital used for its patients, whether paying or non-paying, are
exempt from real property taxes.
(c) All machineries and equipment that are actually,

directly and exclusively used by local water districts
and government-owned or -controlled corporations
engaged in the supply and distribution of water
and/or generation and transmission of electric power;
The test of exemption is the nature of the use, not ownership,

of the subject machineries. To successfully claim exemption under
Section 234 (c), the claimant must prove two elements:
(a) the machineries and equipment are actually, directly, and
exclusively used by local water districts and government-
owned or controlled corporations; and
(b) the local water districts and government-owned and
controlled corporations claiming exemption must be
612 Lung Center of the Philippines v. Quezon City, G.R. No. 144104. June 29,2004.
613 Lung Center of the Philippines v. Quezon City, G.R. No. 144104, June 29, 2004.
614 Lung Center of the Philippines v. Quezon City, G.R. No. 144104, June 29, 2004.
engaged in the supply and distribution of water and/or

the generation and transmission of electric power.615
The machineries must be actually, directly and exclusively
used by the government-owned or controlled corporation for the
exemption under Section 234 (c) to apply. As applied in the case of
NAPOCOR v. Province of Quezon,616 although the plant's machineries
are devoted to the generation of electric power, a private corporation
uses and operates them. The Court ruled that the properties are
subject to the payment of real property tax regardless of any
stipulation entered into by the government agency assuming
payment of the same.
(d) All real property owned by duly registered

cooperatives as provided for under R.A. No. 6938; and
The Court in PHILRECA v. Secretary617 held that there is

reasonable classification under the Local Government Code to justify
the different tax treatment between electric cooperatives covered by
Presidential Decree No. 269 and electric cooperatives under Republic
Act No. 6938.
First, substantial distinctions exist between cooperatives
under Presidential Decree No. 269, as amended, and cooperatives
under Republic Act No. 6938. These distinctions are manifest in at
least two material respects, which go into the nature of cooperatives
envisioned by Republic Act No. 6938 and which characteristics are
not present in the type of cooperative associations created under
Presidential Decree No. 269, as amended:
a. Capital Contributions by Members - Nowhere in
Presidential Decree No. 269 does it require cooperatives to make
equitable contributions to capital. Petitioners themselves admit that
to qualify as a member of an electric cooperative under Presidential
Decree No. 269, only the payment of a P5.00 membership fee is
615 NAPOCOR v. Province of Quezon, G.R. No. 171586, July 15,2009.

616 Lung Center of the Philippines v. Quezon City, G.R. No. 144104, June 29,2004.
617 G.R. No. 143076, June 10, 2003.
required which is even refundable the moment the member is no

longer interested in getting electric service from the cooperative or
will transfer to another place outside the area covered by the
cooperative. However, under the Cooperative Code, the articles of
cooperation of a cooperative applying for registration must be
accompanied with the bonds of the accountable officers and a sworn
statement of the treasurer elected by the subscribers showing that at
least 25% of the authorized share capital has been subscribed and at
least 25% of the total subscription has been paid and in no case shall
the paid-up share capital be less than P2,000.00.
b. Extent of Government Control over Cooperatives - The
extent of government control over electric cooperatives covered by
Presidential Decree No. 269 is largely a function of the role of the
NEA as a primary source of funds of these electric cooperatives. It is
crystal clear that NEA incurred loans from various sources to finance
the development and operations of these electric cooperatives.
Consequently, amendments were primarily geared to expand the
powers of NEA over the electric cooperatives o ensure that loans
granted to them would be repaid to the government. Cooperatives
under Republic Act No. 6938 are envisioned to be self-sufficient and
independent organizations with minimal government intervention or
regulation.
Second, the classification of tax-exempt entities in the Local
Government Code is germane to the purpose of the law. The
Constitutional mandate that "every local government unit shall enjoy
local autonomy," does not mean that the exercise of the power by the
local governments is beyond the regulation of Congress. Section 193
of the LGC is indicative of the legislative intent to vest broad taxing
powers upon the local government units and to limit exemptions
from local taxation to entities specifically provided therein.
Finally, Sections 193 and 234 of the Code permit reasonable
classification as these exemptions are not limited to existing
conditions and apply equally to all members of the same class.
The National Electrification Administration Reform Act of
2013 amended Presidential Decree No. 269 or the National
Electrification Administration Decree. A new section was inserted:
!Consistent with the declared policy of this Act, electric

cooperatives which comply with the financial and'
operational standards set by-the NEA shall enjoy the,
[following incentives-
i(a) To be, entitled to congressional allocations, grants,j
subsidies and othe financial assistance for hra n
(b)To receive all subsidies, grants and other assistanice

,which shall form part of the donated capital and fun&~
,of the electric cooperatives, and as such, it shall not be
as d, traded nor divided into share holdings at, any
Vtine, These donatd capital and funds shall e
(epraised and valued for the sole purpose _on
ceterming he equity participation. of the members:
Provided That in case of disoution or conversion fo
the!letrc cooperative, said- donated 'capital and
fmdsshall be ubject toescheat, and
(c) To avail of the preferential rights granted 'to,

,cooperativesunder Republic; Act No, 7160, otherwise,
'known as the 'cal Government Code of, 1991', and'
,Other eedaW8.68g
"As a further incentive, the NEA may prioritize the grant of

incentives in favor of electric cooperatives that are managed
effectively and efficiently and comply consistently with its mandates
and directives." 619
(e) Machinery and equipment used for pollution

control and environmental protection.
Except as provided herein, any exemption from
payment of real property tax previously granted to, or
presently enjoyed by, all persons, whether natural or
618 Republic Act No. 10531 (2013).
619 Republic Act No. 10531 (2013).
juridical, including all government-owned or -

controlled corporations are hereby withdrawn upon
the effectivity of this Code.
As held in Mactan, the exemption granted under Section 234

(e) of Republic Act No. No. 7160 to "[m]achinery and equipment
used for pollution control and environmental protection" is based on
usage. The term usage means direct, immediate and actual
application of the property itself to the exempting purpose. Section
199 of Republic Act No. 7160 defines actual use as "the purpose for
which the property is principally or predominantly utilized by the
person in possession thereof." It contemplates concrete, as
distinguished from mere potential, use. Thus, a claim for exemption
under Section 234 (e) of Republic Act No. 7160 should be supported
by evidence that the property sought to be exempt is actually,
directly and exclusively used for pollution control and
environmental protection. The burden is upon the taxpayer to prove,
by clear and convincing evidence, that his claim for exemption has
legal and factual basis. 620
Chapter V
Special Levies on Real Property
SECTION 235. Additional Levy on Real Propertyfor the
Special Education Fund (SEF). - A province or city, or
a municipality within the Metropolitan Manila Area,
may levy and collect an annual tax of one percent (1%)
on the assessed value of real property which shall be
in addition to the basic real property tax. The proceeds
thereof shall exclusively accrue to the Special
Education Fund (SEF).
SECTION 236. Additional Ad Valorem Tax on Idle Lands.
- A province or city, or a municipality within the
Metropolitan Manila Area, may levy an annual tax on
idle lands at the rate not exceeding five percent (5%)
60 Provincial Assessor of Marinduque v. Court of Appeals, G.R. No. 155491,

September 16, 2008.
of the assessed value of the property which shall be in

addition to the basic real property tax.
SECTION 237. Idle Lands, Coverage. - For purposes of
real property taxation, idle lands shall include the
following: (a) Agricultural lands, more than one (1)
hectare in area, suitable for cultivation, dairying,
inland fishery, and other agricultural uses, one-half
(1/2) of which remain uncultivated or unimproved by
the owner of the property or person having legal
interest therein. Agricultural lands planted to
permanent or perennial crops with at least fifty (50)
trees to a hectare shall not be considered idle lands.
Lands actually used for grazing purposes shall
likewise not be considered idle lands.
(b) Lands, other than agricultural, located in a city or
municipality, more than one thousand (1,000) square
meters in area one-half (1/2) of which remain
unutilized or unimproved by the owner of the
property or person having legal interest therein.
Regardless of land area, this section shall likewise
apply to residential lots in subdivisions duly
approved by proper authorities, the ownership of
which has been transferred to individual owners, who
shall be liable for the additional tax: Provided,
however, That individual lots of such subdivisions,
the ownership of which has not been transferred to the
buyer shall be considered as part of the subdivision,
and shall be subject to the additional tax payable by
subdivision owner or operator.
SECTION 238. Idle Lands Exempt from Tax. - A
province or city or a municipality within the
Metropolitan Manila Area may exempt idle lands
from the additional levy by reason of force majeure,
civil disturbance, natural calamity or any cause or
circumstance which physically or legally prevents the
owner of the property or person having legal interest
therein from improving, utilizing or cultivating the

same.
SECTION 239. Listing of Idle Lands by the Assessor. -
The provincial, city or municipal assessor shall make
and keep an updated record of all idle lands located
within his area of jurisdiction. For purposes of
collection, the provincial, city or municipal assessor
shall furnish a copy thereof to the provincial or city
treasurer who shall notify, on the basis of such record,
the owner of the property or person having legal
interest therein of the imposition of the additional tax.
SECTION 240. Special Levy by Local Government Units.
- A province, city or municipality may impose a
special levy on the lands comprised within its
territorial jurisdiction specially benefited by public
works projects or improvements funded by the local
government unit concerned: Provided, however, That
the special levy shall not exceed sixty percent (60%) of
the actual cost of such projects and improvements,
including the costs of acquiring land and such other
real property in connection therewith: Provided,
further, That the special levy shall not apply to lands
exempt from basic real property tax and the
remainder of the land portions of which have been
donated to the local government unit concerned for
the construction of such projects or improvements.
SECTION 241. Ordinance Imposing a Special Levy. - A
tax ordinance imposing a special levy shall describe
with reasonable accuracy the nature, extent, and
location of the public works projects or improvements
to be undertaken, state the estimated cost thereof,
specify the metes and bounds by monuments and
lines and the number of annual installments for the
payment of the special levy which in no case shall be
less than five (5) nor more than ten (10) years. The
sanggunian concerned shall not be obliged, in the
apportionment and computation of the special levy, to
establish a uniform percentage of all lands subject to
the payment of the tax for the entire district, but it

may fix different rates for different parts or sections
thereof, depending on whether such land is more or
less benefited by the proposed work.
SECTION 242. Publication of Proposed Ordinance
Imposing a Special Levy. - Before the enactment of an
ordinance imposing a special levy, the sanggunian
concerned shall conduct a public hearing thereon;
notify in writing the owners of the real property to be
affected or the persons having legal interest therein as
to the date and place thereof and afford the latter the
opportunity to express their positions or objections
relative to the proposed ordinance.
SECTION 243. Fixing the Amount of Special Levy. - The
special levy authorized herein shall be apportioned,
computed, and assessed according to the assessed
valuation of the lands affected as shown by the books
of the assessor concerned, or its current assessed value
as fixed by said assessor if the property does not
appear of record in his books. Upon the effectivity of
the ordinance imposing special levy, the assessor
concerned shall forthwith proceed to determine the
annual amount of special levy assessed against each
parcel of land comprised within the area especially
benefited and shall send to each landowner a written
notice thereof by mail, personal service or publication
in appropriate cases.
SECTION 244. Taxpayer's Remedies Against Special Levy.
- Any owner of real property affected by a special
levy or any person having a legal interest therein may,
upon receipt of the written notice of assessment of the
special levy, avail of the remedies provided for in
Chapter 3, Title Two, Book II of this Code.
SECTION 245. Accrual of Special Levy. - The special
levy shall accrue on the first day of the quarter next
following the effectivity of the ordinance imposing
such levy.
Chapter VI
Collection of Real Property Tax
SECTION 246. Date of Accrual of Tax. - The real
property tax for any year shall accrue on the first (1st)
day of January and from that date it shall constitute a
lien on the property which shall be superior to any
other lien, mortgage, or encumbrance of any kind
whatsoever, and shall be extinguished only upon the
payment of the delinquent tax.
SECTION 247. Collection of Tax. - The collection of the
real property tax with interest thereon and related
expenses, and the enforcement of the remedies
provided for in this Title or any applicable laws, shall
be the responsibility of the city or municipal treasurer
concerned.
The city or municipal treasurer may deputize the
barangay treasurer to collect all taxes on real property
located in the barangay: Provided, That the barangay
treasurer is properly bonded for the purpose: Provided,
further,That the premium on the bond shall be paid by
the city or municipal government concerned.
SECTION 248. Assessor to Furnish Local Treasurer with
Assessment Roll. - The provincial, city or municipal
assessor shall prepare and submit to the treasurer of
the local government unit, on or before the thirty-first
(31st) day of December each year, an assessment roll
containing a list of all persons whose real properties
have been newly assessed or reassessed and the
values of such properties.
SECTION 249. Notice of Time for Collection of Tax. -
The city or municipal treasurer shall, on or before the
thirty-first (31st) day of January each year, in the case
of the basic real property tax and the additional tax for
the Special Education Fund (SEF) or any other date to
be prescribed by the sanggunian concerned in the case
of any other tax levied under this Title, post the notice
of the dates when the tax may be paid without interest

at a conspicuous and publicly accessible place at the
city or municipal hall. Said notice shall likewise be
published in a newspaper of general circulation in the
locality once a week for two (2) consecutive weeks.
SECTION 250. Payment of Real Property Taxes in
Installments. - The owner of the real property or the
person having legal interest therein may pay the basic
real property tax and the additional tax for Special
Education Fund (SEF) due thereon without interest in
four (4) equal installments: the first installment to be
due and payable on or before the thirty-first (31st) of
March; the second installment, on or before the thirty
(30th) of June; the third installment, on or before the
thirtieth (30th) of September; and the last installment
on or before the thirty-first (31st) of December, except
the special levy the payment of which shall be
governed by ordinance of the sanggunian concerned.
The date for the payment of any other tax imposed
under this Title without interest shall be prescribed by
the sanggunian concerned.
Payments of real property taxes shall first be applied
to prior years delinquencies, interests, and penalties, if
any, and only after said delinquencies are settled may
tax payments be credited for the current period.
SECTION 251. Tax Discount for Advanced Prompt
Payment. - If the basic real property tax and the
additional tax accruing to the Special Education Fund
(SEF) are paid in advance in accordance with the
prescribed schedule of payment as provided under
Section 250, the sanggunian concerned may grant a
discount not exceeding twenty percent (20%) of the
annual tax due.
SECTION 252. Payment Under Protest. - (a) No protest
shall be entertained unless the taxpayer first pays the
tax. There shall be annotated on the tax receipts the
words "paid under protest". The protest in writing
must be filed within thirty (30) days from payment of

the tax to the provincial, city treasurer or municipal
treasurer, in the case of a municipality within
Metropolitan Manila Area, who shall decide the
protest within sixty (60) days from receipt.
(b) The tax or a portion thereof paid under protest
shall be held in trust by the treasurer concerned.
(c) In the event that the protest is finally decided in
favor of the taxpayer, the amount or portion of the tax
protested shall be refunded to the protestant, or
applied as tax credit against his existing or future tax
liability.
(d) In the event that the protest is denied or upon the
lapse of the sixty-day period prescribed in
subparagraph (a), the taxpayer may avail of the
remedies as provided for in Chapter 3, Title II, Book II
of this Code.
Section 252 requires that the real property owner questioning

the assessment pay the tax due first before his protest can be
entertained. Only after such payment has been made by the taxpayer
may he file a protest in writing (within thirty days from said
payment of tax) to the provincial, city, or municipal treasurer, who
shall decide the protest within sixty days from its receipt. In no case
is the local treasurer obliged to entertain the protest unless the tax
due has been paid. 621
The protest contemplated under Section 252 is needed where
there is a question as to the reasonableness of the amount assessed. If
a taxpayer disputes the reasonableness of an increase in a real estate
tax assessment, he is required to "first pay the tax" under protest.
Otherwise, the city or municipal treasurer will not act on his protest.
In the case of Ty v. Trampe,622 the petitioners questioned the authority
and power of the assessor, acting solely and independently, to
impose the assessment and of the treasurer to collect the tax. These
62 Camp John Hay Development Corporation v. Central Board of Assessment
Appeals, G.R. No. 155491, October 2,2013.
622G.R.No. 117577, December 1,1995.
are not questions merely of amounts of the increase in the tax but
attacks on the very validity of any increase. In that case, Section 252
was deemed inapplicable.
SECTION 253. Repayment of Excessive Collections. -

When an assessment of basic real property tax, or any
other tax levied under this Title, is found to be illegal
or erroneous and the tax is accordingly reduced or
adjusted, the taxpayer may file a written claim for
refund or credit for taxes and interests with the
provincial or city treasurer within two (2) years from
the date the taxpayer is entitled to such reduction or
adjustment.
The provincial or city treasurer shall decide the claim
for tax refund or credit within sixty (60) days from
receipt thereof. In case the claim for tax refund or
credit is denied, the taxpayer may avail of the
remedies as provided in Chapter 3, Title II, Book II of
this Code.
SECTION 254. Notice of Delinquency in the Payment of
the Real Property Tax. - (a) When the real property tax
or any other tax imposed under this Title becomes
delinquent, the provincial, city or municipal treasurer
shall immediately cause a notice of the delinquency to
be posted at the main entrance of the provincial
capitol, or city or municipal hall and in a publicly
accessible and conspicuous place in each barangay of
the local government unit concerned. The notice of
delinquency shall also be published once a week for
two (2) consecutive weeks, in a newspaper of general
circulation in the province, city, or municipality.
(b) Such notice shall specify the date upon which the
tax became delinquent and shall state that personal
property may be distrained to effect payment. It shall
likewise state that at any time before the distraint of
personal property, payment of the tax with
surcharges, interests and penalties may be made in
accordance with the next following section, and unless

the tax, surcharges and penalties are paid before the
expiration of the year for which the tax is due, except
when the notice of assessment or special levy is
contested administratively or judicially pursuant to
the provisions of Chapter 3, Title i1, Book II of this
Code, the delinquent real property will be sold at
public auction, and the title to the property will be
vested in the purchaser, subject, however, to the right
of the delinquent owner of the property or any person
having legal interest therein to redeem the property
within one (1) year from the date of sale.
SECTION 255. Interests on UnpaidReal PropertyTax. -
In case of failure to pay the basic real property tax or
any other tax levied under this Title upon the
expiration of the periods as provided in Section 250, or
when due, as the case may be, shall subject the
taxpayer to the payment of interest at the rate of two
percent (2%) per month on the unpaid amount or a
fraction thereof, until the delinquent tax shall have
been fully paid: Provided,however, That in no case shall
the total interest on the unpaid tax or portion thereof
exceed thirty-six (36) months.
SECTION 256. Remedies For The Collection Of Real
Property Tax. - For the collection of the basic real
property tax and any other tax levied under this Title,
the local government unit concerned may avail of the
remedies by administrative action through levy on
real property or by judicial action.
SECTION 257. Local Government's Lien. - The basic
real property tax and any other tax levied under this
Title constitute a lien on the property subject to tax,
superior to all liens, charges or encumbrances in favor
of any person, irrespective of the owner or possessor
thereof, enforceable by administrative or judicial
action, and may only be extinguished upon payment
of the tax and the related interests and expenses.
SECTION 258. Levy on Real Property. - After the

expiration of the time required to pay the basic real
property tax or any other tax levied under this Title,
real property subject to such tax may be levied upon
through the issuance of a warrant on or before, or
simultaneously with, the institution of the civil action
for the collection of the delinquent tax. The provincial
or city treasurer, or a treasurer of a municipality
within the Metropolitan Manila Area, as the case may
be, when issuing a warrant of levy shall prepare a
duly authenticated certificate showing the name of the
delinquent owner of the property or person having
legal interest therein, the description of the property,
the amount of the tax due and the interest thereon.
The warrant shall operate with the force of a legal
execution throughout the province, city or a
municipality within the Metropolitan Manila Area.
The warrant shall be mailed to or served upon the
delinquent owner of the real property or person
having legal interest therein, or in case he is out of the
country or cannot be located, the administrator or
occupant of the property. At the same time, written
notice of the levy with the attached warrant shall be
mailed to or served upon the assessor and the
Registrar of Deeds of the province, city or
municipality within the Metropolitan Manila Area
where the property is located, who shall annotate the
levy on the tax declaration and certificate of title of the
property, respectively.
The levying officer shall submit a report on the levy to
the sanggunian concerned within ten (10) days after
receipt of the warrant by the owner of the property or
person having legal interest therein.
SECTION 259. Penalty for Failure to Issue and Execute
Warrant. - Without prejudice to criminal prosecution
under the Revised Penal Code and other applicable
laws, any local treasurer or his deputy who fails to
issue or execute the warrant of levy within one (1)
year from the time the tax becomes delinquent or

within thirty (30) days from the date of the issuance
thereof, or who is found guilty of abusing the exercise
thereof in an administrative or judicial proceeding
shall be dismissed from the service.
SECTION 260. Advertisement and Sale. - Within thirty
(30) days after service of the warrant of levy, the local
treasurer shall proceed to publicly advertise for sale or
auction the property or a usable portion thereof as
may be necessary to satisfy the tax delinquency and
expenses of sale. The advertisement shall be effected
by posting a notice at the main entrance of the
provincial, city or municipal building, and in a
publicly accessible and conspicuous place in the
barangay where the real property is located, and by
publication once a week for two (2) weeks in a
newspaper of general circulation in the province, city
or municipality where the property is located. The
advertisement shall specify the amount of the
delinquent tax, the interest due thereon and expenses
of sale, the date and place of sale, the name of the
owner of the real property or person having legal
interest therein, and a description of the property to be
sold. At any time before the date fixed for the sale, the
owner of the real property or person having legal
interest therein may stay the proceedings by paying
the delinquent tax, the interest due thereon and the
expenses of sale. The sale shall be held either at the
main entrance of the provincial, city or municipal
building, or on the property to be sold, or at any other
place as specified in the notice of the sale.
Within thirty (30) days after the sale, the local
treasurer or his deputy shall make a report of the sale
to the sanggunian concerned, and which shall form
part of his records. The local treasurer shall likewise
prepare and deliver to the purchaser a certificate of
sale which shall contain the name of the purchaser, a
description of the property sold, the amount of the
delinquent tax, the interest due thereon, the expenses
of sale and a brief description of the proceedings:

Provided,however, That proceeds of the sale in excess of
the delinquent tax, the interest due thereon, and the
expenses of sale shall be remitted to the owner of the
real property or person having legal interest therein.
The local treasurer may, by ordinance duly approved,
advance an amount sufficient to defray the costs of
collection through the remedies provided for in this
Title, including the expenses of advertisement and
sale.
SECTION 261. Redemption of Property Sold. - Within
one (1) year from the date of sale, the owner of the
delinquent real property or person having legal
interest therein, or his representative, shall have the
right to redeem the property upon payment to the
local treasurer of the amount of the delinquent tax,
including the interest due thereon, and the expenses of
sale from the date of delinquency to the date of sale,
plus interest of not more than two percent (2%) per
month on the purchase price from the date of sale to
the date of redemption. Such payment shall invalidate
the certificate of sale issued to the purchaser and the
owner of the delinquent real property or person
having legal interest therein shall be entitled to a
certificate of redemption which shall be issued by the
local treasurer or his deputy.
From the date of sale until the expiration of the period
of redemption, the delinquent real property shall
remain in the possession of the owner or person
having legal interest therein who shall be entitled to
the income and other fruits thereof.
The local treasurer or his deputy, upon receipt from
the purchaser of the certificate of sale, shall forthwith
return to the latter the entire amount paid by him plus
interest of not more than two percent (2%) per month.
Thereafter, the property shall be free from the lien of
such delinquent tax, interest due thereon and

expenses of sale.
SECTION 262. Final Deed to Purchaser. - In case the
owner or person having legal interest therein fails to
redeem the delinquent property as provided herein,
the local treasurer shall execute a deed conveying to
the purchaser said property, free from lien of the
delinquent tax, interest due thereon and expenses of
sale. The deed shall briefly state the proceedings upon
which the validity of the sale rests.
SECTION 263. Purchase of Property By the Local
Government Unitsfor Want of Bidder. - In case there is
no bidder for the real property advertised for sale as
provided herein, or if the highest bid is for an amount
insufficient to pay the real property tax and the related
interest and costs of sale the local treasurer conducting
the sale shall purchase the property in behalf of the
local government unit concerned to satisfy the claim
and within two (2) days thereafter shall make a report
of his proceedings which shall be reflected upon the
records of his office. It shall be the duty of the
Registrar of Deeds concerned upon registration with
his office of any such declaration of forfeiture to
transfer the title of the forfeited property to the local
government unit concerned without the necessity of
an order from a competent court.
Within one (1) year from the date of such forfeiture,
the taxpayer or any of his representative, may redeem
the property by paying to the local treasurer the full
amount of the real property tax and the related
interest and the costs of sale. If the property is not
redeemed as provided herein, the ownership thereof
shall be vested on the local government unit
concerned.
SECTION 264. Resale of Real Estate Taken for Taxes, Fees,
or Charges. - The sanggunian concerned may, by
ordinance duly approved, and upon notice of not less
than twenty (20) days, sell and dispose of the real
property acquired under the preceding section at

public auction. The proceeds of the sale shall accrue to
the general fund of the local government unit
concerned.
SECTION 265. FurtherDistraintor Levy. - Levy may
be repeated if necessary until the full amount due,
including all expenses, is collected.
SECTION 266. Collection of Real Property Tax Through
the Courts. - The local government unit concerned
may enforce the collection of the basic real property
tax or any other tax levied under this Title by civil
action in any court of competent jurisdiction. The civil
action shall be filed by the local treasurer within the
period prescribed in Section 270 of this Code.
SECTION 267. Action Assailing Validity of Tax Sale. -
No court shall entertain any action assailing the
validity of any sale at public auction of real property
or rights therein under this Title until the taxpayer
shall have deposited with the court the amount for
which the real property was sold, together with
interest of two percent (2%) per month from the date
of sale to the time of the institution of the action. The
amount so deposited shall be paid to the purchaser at
the auction sale if the deed is declared invalid but it
shall be returned to the depositor if the action fails.
Neither shall any court declare a sale at public auction
invalid by reason of irregularities or informalities in
the proceedings unless the substantive rights of the
delinquent owner of the real property or the person
having legal interest therein have been impaired.
A deposit equivalent to the amount of the sale at public

auction plus two percent interest per month from the date of the sale
to the time the court action is instituted is a "prerequisite" which
must be satisfied before the court can entertain any action assailing
the validity of the public auction sale. The law prevents the court
from entertaining a suit unless a deposit is made. The deposit is a

jurisdictional requirement, the nonpayment of which warrants the
failure of the action. 62 3
The deposit requirement is not a tax. The amount deposited
shall be paid to the purchaser at the auction sale if the deed is
declared invalid; otherwise, it shall be returned to the depositor. The
deposit, equivalent to the value for which the real property was sold
plus interest, is essentially meant to reimburse the purchaser of the
amount he had paid at the auction sale should the court declare the
sale invalid. 624
The deposit is a legal device to guarantee the satisfaction of
the tax delinquency, with the local government unit keeping the
payment on the bid price no matter the final outcome of the suit to
nullify the tax sale. Thus, the requirement is not applicable if the
plaintiff is the government or any of its agencies as it is presumed to
be solvent, and more so where the tax exempt status of such plaintiff
as basis of the suit is acknowledged. 62 5
SECION 268. Payment of Delinquent Taxes on Property

Subject of Controversy. - In any action involving the
ownership or possession of, or succession to, real
property, the court may, motu proprio or upon
representation of the provincial, city, or municipal
treasurer or his deputy, award such ownership,
possession, or succession to any party to the action
upon payment to the court of the taxes with interest
due on the property and all other costs that may have
accrued, subject to the final outcome of the action.
SECTION 269. Treasurer to Certiy Delinquencies
Remaining Uncollected. - The provincial, city or
municipal treasurer or his deputy shall prepare a
certified list of all real property tax delinquencies
which remained uncollected or unpaid for at least one
(1) year in his jurisdiction, and a statement of the
6
z National Housing Authority v. Iloilo, G.R. No. 172267, August 20,2008.
624
National Housing Authority v. Ioilo, G.R. No. 172267, August 20, 2008.
625 National Housing Authority v. Iloilo, G.R. No. 172267, August 20,2008.
reason or reasons for such non-collection or non-

payment, and shall submit the same to the sanggunian
concerned on or before the thirty-first (31st) of
December of the year immediately succeeding the
year in which the delinquencies were incurred, with a
request for assistance in the enforcement of the
remedies for collection provided herein.
SECTION 270. Periods Within Which to Collect Real
Property Taxes. - The basic real property tax and any
other tax levied under this Title shall be collected
within five (5) years from the date they become due.
No action for the collection of the tax, whether
administrative or judicial, shall be instituted after the
expiration of such period. In case of fraud or intent to
evade payment of the tax, such action may be
instituted for the collection of the same within ten (10)
years from the discovery of such fraud or intent to
evade payment.
The period of prescription within which to collect
shall be suspended for the time during which:
(1) The local treasurer is legally
prevented from collecting the tax;
(2) The owner of the property or the
person having legal interest therein
requests for reinvestigation and
executes a waiver in writing before the
expiration of the period within which
to collect; and
(3) The owner of the property or the
person having legal interest therein is
out of the country or otherwise cannot
be located.
Chapter VII
Disposition of Proceeds
SECTION 271. Distributionof Proceeds. - The proceeds
of the basic real property tax, including interest
thereon, and proceeds from the use, lease or
disposition, sale or redemption of property acquired
at a public auction, in accordance with the provisions
of this Title, by the province or city or a municipality
within the Metropolitan Manila Area shall be
distributed as follows:
(a) In the case of provinces:
(1) Province - Thirty-five percent
(35%) shall accrue to the general fund;
(2) Municipality - Forty percent (40%)
to the general fund of the municipality
where the property is located; and
(3) Barangay - Twenty-five percent
(25%) shall accrue to the barangay
where the property is located.
(b) In the case of cities:
(1) City - Seventy percent (70%) shall
accrue to the general fund of the city;
and
(2) Barangay - Thirty percent (30%)
shall be distributed among the
component barangays of the cities
where the property is located in the
following manner:
(i) Fifty percent (50%)
shall accrue to the
barangay where the
property is located;
(ii) Fifty percent (50%)
shall accrue equally to
all component
barangays of the city;

and
(c) In the case of a municipality within the
Metropolitan Manila Area:
(1) Metropolitan Manila Authority -
Thirty-five percent (35%) shall accrue
to the general fund of the Authority;
(2) Municipality - Thirty-five percent
(35%) shall accrue to the general fund
of the municipality where the property
is located;
(3) Barangays - Thirty percent (30%)
shall be distributed among the
component barangays of the
municipality where the property is
located in the following manner:
(i) Fifty percent (50%)
shall accrue to the
barangay where the
property is located; and
(ii) Fifty percent (50%)
shall accrue equally to
all component
barangays of the
municipality.
(d) The share of each barangay shall be released,
without need of any further action, directly to the
barangay treasurer on a quarterly basis within five (5)
days after the end of each quarter and shall not be
subject to any lien or holdback for whatever purpose.
SECTION 272. Application of Proceeds of the Additional
One Percent SEF Tax. - The proceeds from the
additional one percent (1%) tax on real property
accruing to the Special Education Fund (SEF) shall be
automatically released to the local school boards:
Provided, That, in case of provinces, the proceeds shall

be divided equally between the provincial and
municipal school boards: Provided, however, That the
proceeds shall be allocated for the operation and
maintenance of public schools, construction and repair
of school buildings, facilities and equipment,
educational research, purchase of books and
periodicals, and sports development as determined
and approved by the local school board.
SECTION 273. Proceeds of the Tax on Idle Lands. - The
proceeds of the additional real property tax on idle
lands shall accrue to the respective general fund of the
province or city where the land is located. In the case
of a municipality within the Metropolitan Manila
Area, the proceeds shall accrue equally to the
Metropolitan Manila Authority and the municipality
where the land is located.
SECTION 274. Proceeds of the Special Levy. - The
proceeds of the special levy on lands benefited by
public works, projects and other improvements shall
accrue to the general fund of the local government
unit which financed such public works, projects or
other improvements.
Chapter VIII
Special Provisions
SECTION 275. General Assessment Revision; Expenses
Incident Thereto. - The sanggunian of provinces, cities
and municipalities within the Metropolitan Manila
Area shall provide the necessary appropriations to
defray the expenses incident to the general revision of
real property assessment.
All expenses incident to a general revision of real
property assessments shall, by ordinance of the
sangguniang panlalawigan, be apportioned between
the province and the municipality on the basis of the
taxable area of the municipality concerned.
SECTION 276. Condonationor Reduction of Real Property

Tax and Interest. - In case of a general failure of crops
or substantial decrease in the price of agricultural or
agribased products, or calamity in any province, city
or municipality, the sanggunian concerned, by
ordinance passed prior to the first (1st) day of January
of any year and upon recommendation of the Local
Disaster Coordinating Council, may condone or
reduce, wholly or partially, the taxes and interest
thereon for the succeeding year or years in the city or
municipality affected by the calamity.
SECTION 277. Condonation or Reduction of Tax by the
President of the Philippines. - The President of the
Philippines may, when public interest so requires,
condone or reduce the real property tax and interest
for any year in any province or city or a municipality
within the Metropolitan Manila Area.
SECTION 278. Duty of Registrar of Deeds and Notaries
Public to Assist the Provincial,City or Municipal Assessor.
- It shall be the duty of the Registrar of Deeds and
notaries public to furnish the provincial, city or
municipal assessor with copies of all contracts selling,
transferring, or otherwise conveying, leasing, or
mortgaging real property received by, or
acknowledged before them.
SECTION 279. Insurance Companies to Furnish
Information. - Insurance companies are hereby
required to furnish the provincial, city or municipal
assessor copies of any contract or policy insurance on
buildings, structures, and improvements insured by
them or such other documents which may be
necessary for the proper assessment thereof.
SECTION 280. Fees in Court Actions. - All court
actions, criminal or civil, instituted at the instance of
the provincial, city or municipal treasurer or assessor
under the provisions of this Code, shall be exempt
from the payment of court and sheriff's fees.
SECTION 281. Fees in Registration of Papers or

Documents on Sale of Delinquent Real Property to
Province, City or Municipality. - All certificates,
documents, and papers covering the sale of delinquent
property to the province, city or municipality, if
registered in the Registry of Property, shall be exempt
from the documentary stamp tax and registration fees.
SECTION 282. Real Property Assessment Notices or
Owner's Copies of Tax Declarations to be Exempt from
Postal Charges or Fees. - All real property assessment
notices or owner's copies of tax declaration sent
through the mails by the assessor shall be exempt
from the payment of postal charges or fees.
SECTION 283. Sale and Forfeiture Before Effectivity of
Code. - Tax delinquencies incurred, and sales and
forfeitures of delinquent real property effected, before
the effectivity of this Code shall be governed by the
provisions of applicable laws then in force.
Title III
SHARES OF LOCAL GOVERNMENT IN THE
PROCEEDS OF NATIONAL TAXES
Chapter I
Allotment of Internal Revenue
SECTION 284. Allotment of Internal Revenue Taxes. -

Local government units shall have a share in the
national internal revenue taxes based on the collection
of the third fiscal year preceding the current fiscal year
as follows:
(a) On the first year of the effectivity of this Code,
thirty percent (30%);
(b) On the second year, thirty-five percent (35%); and
+(,121/,1(
Citation:
Tue Apr 17 11:20:56 2018



SECTION 281. Fees in Registration of Papers or

Documents on Sale of Delinquent Real Property to
Province, City or Municipality. - All certificates,
documents, and papers covering the sale of delinquent
property to the province, city or municipality, if
registered in the Registry of Property, shall be exempt
from the documentary stamp tax and registration fees.
SECTION 282. Real Property Assessment Notices or
Owner's Copies of Tax Declarations to be Exempt from
Postal Charges or Fees. - All real property assessment
notices or owner's copies of tax declaration sent
through the mails by the assessor shall be exempt
from the payment of postal charges or fees.
SECTION 283. Sale and Forfeiture Before Effectivity of
Code. - Tax delinquencies incurred, and sales and
forfeitures of delinquent real property effected, before
the effectivity of this Code shall be governed by the
provisions of applicable laws then in force.
Title III
SHARES OF LOCAL GOVERNMENT IN THE
PROCEEDS OF NATIONAL TAXES
Chapter I
Allotment of Internal Revenue
SECTION 284. Allotment of Internal Revenue Taxes. -

Local government units shall have a share in the
national internal revenue taxes based on the collection
of the third fiscal year preceding the current fiscal year
as follows:
(a) On the first year of the effectivity of this Code,
thirty percent (30%);
(b) On the second year, thirty-five percent (35%); and
(c) On the third year and thereafter, forty percent

(40%).
Provided, That in the event that the National
Government incurs an unmanageable public sector
deficit, the President of the Philippines is hereby
authorized, upon the recommendation of Secretary of
Finance, Secretary of Interior and Local Government,
and Secretary of Budget and Management, and subject
to consultation with the presiding officers of both
Houses of Congress and the presidents of the "liga",
to make the necessary adjustments in the internal
revenue allotment of local government units but in no
case shall the allotment be less than thirty percent
(30%) of the collection of national internal revenue
taxes of the third fiscal year preceding the current
fiscal year: Provided, further, That in the first year of
the effectivity of this Code, the local government units
shall, in addition to the thirty percent (30%) internal
revenue allotment which shall include the cost of
devolved functions for essential public services, be
entitled to receive the amount equivalent to the cost of
devolved personal services.
The internal revenue allotments 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. 62 6
SECTION 285. Allocation to Local Government Units. -

The share of local government units in the internal
revenue allotment shall be allocated in the following
manner:
626
Alvarez v. Guingona, G.R. No. 118303, January 31,1996.
(a) Provinces - Twenty-three percent

(23%);
(b) Cities - Twenty-three percent
(23%);
(c) Municipalities - Thirty-four
percent (34%); and
(d) Barangays - Twenty percent (20%)
Provided, however, That the share of each province,
city, and municipality shall be determined on the basis
of the following formula:
(a) Population - Fifty percent (50%);
(b) Land Area - Twenty-five percent
(25%); and
(c) Equal sharing - Twenty-five
percent (25%)
Provided, further, That the share of each barangay
with a population of not less than one hundred (100)
inhabitants shall not be less than Eighty thousand
(P80,000.00) per annum chargeable against the twenty
percent (20%) share of the barangay from the internal
revenue allotment, and the balance to be allocated on
the basis of the following formula:
(a) On the first year of the effectivity of
this Code:
(1) Population - Forty
percent (40%); and
(2) Equal Sharing -
Sixty percent (60%)
(b) On the second year:
(1) Population - Fifty
percent (50%); and
(2) Equal Sharing -
Fifty percent (50%)
(c) On the third year and thereafter:

(1) Population - Sixty
percent (60%); and
(2) Equal sharing -
Forty percent (40%).
Provided, finally, That the financial requirements of
barangays created by local government units after the
effectivity of this Code shall be the responsibility of
Other forms of internal revenue are allocated to local

governments through other laws. For example, the "Tax Reform Act
of 1997"627 provides as follows:

Increasing or decreasing the IRA of local governments or

modifying their percentage sharing therein, which are fixed in the
Local Government Code of 1991, are matters of general and
substantive law. To permit Congress to undertake these amendments
through the GAAs would be to give Congress the unbridled
authority to unduly infringe the fiscal autonomy of local
governments, and put the same in jeopardy every year. This, the
Court cannot sanction. 629
SECTION 286. Automatic Release of Shares. - (a) The

share of each local government unit shall be released,
without need of any further action, directly to the
provincial, city, municipal or barangay treasurer, as
the case may be, on a quarterly basis within five (5)
days after the end of each quarter, and which shall not
be subject to any lien or holdback that may be
imposed by the National Government for whatever
purpose.
(b) Nothing in this Chapter shall be understood to
diminish the share of local government units under
existing laws.
There are requisites before the President may interfere in local

fiscal matters: (1) an unmanaged public sector deficit of the national
government; (2) consultations with the presiding officers of the
Senate and the House of Representatives and the presidents of the
6U Section 106 provides for the collection of value-added tax on the sale of goods or
properties. Section 108 provides for the collection of value-added tax on sale of
services and use or lease of properties. Section 116 provides for taxes on persons
exempt from value-added tax.
6n The Province of Batangas v. Romulo, G.R. No. 152774, May 27, 2004.
various local leagues; and (3) the corresponding recommendation of

the secretaries of the Department of Finance, Interior and Local
Government, and Budget and Management. Furthermore, any
adjustment in the allotment shall in no case be less than thirty
percent (30%) of the collection of national internal revenue taxes of
the third fiscal year preceding the current one.630
A basic feature of local fiscal autonomy is the automatic
release of the shares of local governments in the national internal
revenue. This is mandated by no less than the Constitution. The
Local Government Code specifies further that the release shall be
made directly to the local government concerned within five days
after every quarter of the year and "shall not be subject to any lien or
holdback that may be imposed by the national government for
whatever purpose." As a rule, the term "shall" is a word of
command that must be given a compulsory meaning. The provision
is, therefore, imperative. 631
Pimentel v. Aguirre632 addressed the validity of Section 4 of
Administrative Order No. 372 that ordered the withholding of 10
percent of the internal revenue allotment "pending the assessment
and evaluation by the Development Budget Coordinating Committee
of the emerging fiscal situation" in the country. The Court held that
such withholding clearly contravenes the Constitution and the law.
Although temporary, it is equivalent to a holdback which means
"something held back or withheld, often temporarily." Hence, the
"temporary" nature of the retention by the national government is
irrelevant; any retention is prohibited. Section 4 of the Order
encroaches on the fiscal autonomy of local governments. While the
President was well-intentioned in issuing his Order to withhold the
IRA, the best intentions must be carried out within the parameters of
the Constitution and the law.
The Court, in Province of Batangas v. Romulo, 6 declared
provisions in the General Appropriations Acts of 1999, 2000 and 2001
as violations of the constitutional precept on local autonomy. The
63
Pimentel v. Aguirre, G.R. No. 132988, July 19,2000.
63
1 Pimentel
v. Aguirre, G.R. No. 132988, July 19,2000.
632
Pimentel v. Aguirre, G.R. No. 132988, July 19, 2000.
33G.R. No. 152774, May 27,2004.
LGSEF is part of the IRA or "just share" of local governments in the

national taxes. To subject its distribution and release to the vagaries
of the implementing rules and regulations, including the guidelines
and mechanisms unilaterally prescribed by the Oversight Committee
from time to time, as sanctioned by the assailed provisions in the
GAAs of 1999, 2000 and 2001 and the OCD resolutions, makes the
release not automatic, a flagrant violation of the constitutional and
statutory mandate that the "just share" of local governments "shall
be automatically released to them." Local governments are, thus,
placed at the mercy of the Oversight Committee. A general
appropriations bill is a special type of legislation, whose content is
limited to specified sums of money dedicated to a specific purpose or
a separate fiscal unit. Any provision therein which is intended to
amend another law is considered an "inappropriate provision." The
category of "inappropriate provisions" includes unconstitutional
provisions and provisions which are intended to amend other laws,
because clearly these kinds of laws have no place in an
appropriations bill.
The Court further ruled that increasing or decreasing the IRA
of the local governments or modifying their percentage sharing
therein, which are fixed in the Local Government Code of 1991, are
matters of general and substantive law. To permit Congress to
undertake these amendments through the GAAs would give
Congress the unbridled authority to unduly infringe the fiscal
autonomy of the local governments, and thus put the same in
jeopardy every year.634
Another case, ACORD v. Zamora, 0 resolved the issue of
whether the GAA can withhold release of the IRA pending an event
which is not even certain of occurring. As explained by the Court, to
rule that the term "automatic release" contemplates such conditional
release would be to strip the term "automatic" of all meaning. As the
Constitution lays upon the executive the duty to automatically
release the just share of local governments in the national taxes, so it
enjoins the legislature not to pass laws that might prevent the
executive from performing this duty. To hold that the executive
branch may disregard constitutional provisions which define its
6 4 Province of Batangas v. Romulo, G.R. No. 152774, May 27,2004.

6m G.R. No. 144256, June 8,2005.
duties, provided it has the backing of statute, is virtually to make the

Constitution amendable by statute - a proposition which is patently
absurd.m6
In ACORD, the legislature, not the executive, authorized the
withholding of the IRA. Nevertheless, the Supreme Court still
applied the doctrine in Pimentel holding that Article X, Section 6 of
the Constitution enjoins both the legislative and executive branches
of government from withholding the release of the IRA.
SECTION 287. Local Development Projects. - Each local

government unit shall appropriate in its annual
budget no less than twenty percent (20%) of its annual
internal revenue allotment for development projects.
Copies of the development plans of local government
units shall be furnished the Department of Interior
and Local Government.
SECTION 288. Rules and Regulations. - The Secretary
of Finance, in consultation with the Secretary of
Budget and Management, shall promulgate the
necessary rules and regulations for a simplified
disbursement scheme designed for the speedy and
effective enforcement of the provisions of this
Chapter.
The internal revenue allotment has not a similar effect on

various local governments. The Statement of Income and
Expenditures of Local Government Units from 2005 to 2007 showed
how some local governments (many that lie outside Luzon) are
almost entirely dependent on the internal revenue allotment.
The most IRA-dependent provinces are Lanao del Sur,
Apayao, Kalinga, Sulu and Mt. Province. Not counting
NCR, the least IRA-dependent are Cavite, Laguna, Bataan,
Rizal, and Bulacan.
636 ACORD v. Zamora, G.R, No. 144256, June 8, 2005.

" The 30 most dependent municipalities on IRA are almost

100% dependent, with many municipalities coming from
Lanao del Sur and Sulu and all except three municipalities
are from Mindanao. In terms of absolute amounts
received, the biggest recipients of IRA were Dasmarinas
and Bacoor in Cavite; Cainta, Rizal; San Pedro, Laguna;
and Sablayan, Occidental Mindoro.
" The least IRA-dependent municipalities are San Juan,
Metro Manila; Carmona, Cavite; Pagbilao, Quezon;
Cabuyao, Laguna; and Rosario, Cavite. Only four of the
30 least IRA-dependent municipalities are not in Luzon.
In terms of absolute amounts, the municipalities that
received the least IRA were San Jose, Romblon; Agutaya,
Palawan; Baleno, Masbate; Datu Paglas, Maguindanao;
and Ivana, Batanes. 637
Chapter II
Share of Local Government Units in the National Wealth
SECTION 289. Share in the Proceeds from the
Development and Utilization of the National Wealth. -
Local government units shall have an equitable share
in the proceeds derived from the utilization and
development of the national wealth within their
respective areas, including sharing the same with the
inhabitants by way of direct benefits.
SECTION 290. Amount of Share of Local Government
Units. - Local government units shall, in addition to
the internal revenue allotment, have a share of forty
percent (40%) of the gross collection derived by the
national government from the preceding fiscal year
from mining taxes, royalties, forestry and fishery
charges, and such other taxes, fees, or charges,
including related surcharges, interests, or fines, and
637 Romulo A. Virola, Disparity in Local Development: An Issue of Governance?,

PHLINE NATIONAL STATISTICAL COORDINATION BOARD,
http://www.nscb.gov.ph/headlines/StatsSpeak/2009/051109-
.raylgugovernance.asp#1(last visited April 13,2014).
from its share in any co-production, joint venture or

production sharing agreement in the utilization and
development of the national wealth within their
territorial jurisdiction.
The national government also takes a share in the exploitation

of natural resources. The Philippine Mining Act of 199568 provides:
638 Republic Act No. 7942 (1995).

SECTION 291. Share of the Local Governmentsfrom any

Government Agency or Government-Owned or -Controlled
Corporation. - Local government units shall have a
share based on the preceding fiscal year from the
proceeds derived by any government agency or
government-owned or -controlled corporation
engaged in the utilization and development of the
national wealth based on the following formula
whichever will produce a higher share for the local
government unit:
(a) One percent (1%) of the gross sales
or receipts of the preceding calendar
year; or
(b) Forty percent (40%) of the mining

taxes, royalties, forestry and fishery
charges and such other taxes, fees or
charges, including related surcharges,
interests, or fines the government
agency or government-owned or -
controlled corporation would have
paid if it were not otherwise exempt.
SECTION 292. Allocation of Shares. - The share in the
preceding section shall be distributed in the following
manner:
(a) Where the natural resources are
located in the province:
(1) Province - Twenty
percent (20%);
(2) Component
City/Municipality -
Forty-five percent (45%);
and
(3) Barangay - Thirty-
five percent (35%)
Provided, however, That where the
natural resources are located in two (2)
or more provinces, or in two (2) or
more component cities or
municipalities or in two (2) or more
barangays, their respective shares shall
be computed on the basis of:
(1) Population -
Seventy percent (70%);
and
(2) Land area - Thirty
percent (30%)
(b) Where the natural resources are

located in a highly urbanized or
independent component city:
(1) City - Sixty-five
percent (65%); and
(2) Barangay - Thirty-
five percent (35%)
Provided, however, That where the
natural resources are located in such
two (2) or more cities, the allocation of
shares shall be based on the formula on
population and land area as specified
in paragraph (a) of this section.
SECTION 293. Remittance of the Share of Local
Government Units. - The share of local government
units from the utilization and development of national
wealth shall be remitted in accordance with Section
286 of this Code: Provided, however, That in the case
of any government agency or government-owned or -
controlled corporation engaged in the utilization and
development of the national wealth, such share shall
be directly remitted to the provincial, city, municipal
or barangay treasurer concerned within five (5) days
after the end of each quarter.
SECTION 294. Development and Livelihood Projects. -
The proceeds from the share of local government units
pursuant to this chapter shall be appropriated by their
respective sanggunian to finance local development
and livelihood projects: Provided, however, That at
least eighty percent (80%) of the proceeds derived
from the development and utilization of
hydrothermal. geothermal, and other sources of
energy shall be applied solely to lower the cost of
electricity in the local government unit where such a
source of energy is located.
The "Electric Power Industry Reform Act of 2001" imposes

obligations on generation companies and resource developers.
Republic Act No. 9136 (2001) provides:
66. enefits tonHost Communities., Tho

obligations of generation comparies and energy
iresource developers to communities hosting energy
;generating ':facilities and/or energy .,resourcel
[d evelopers as defined under,-1,
Chapter Sections, 28-.
Atfi294 of the Local Government Code and Section 5(i)I
16E Republic Act No. 7638 andtheir implementing ru1es
and regulations lnd applicable orders and :cula
consistent with this Act shall continue: Provided, Tha
1he obligations mianidated uindef Chapter 11, Section"
'291 of Republic Act No. 7160, shall apply to privaely-'
:owned corporations or entities utilizing\ th9 .nafoxal'
ioealth of'the calitye a
To ensure the effective implementation' of thel
reduction in pcost
f t the 'comrunities
!where the source of energy is located, the mechanics'
land procedures prescribed in the Department of thei
Interior and Local Government (DILOOE Circula
'No. 95-01 and 98-0l1 dated October 31, 1995 and,'
!September 30, 1998, respectively, and other issuancesi
'related thereto shallb u'sued'~
Towards this end, the fund generated from the eighty1
Ipercent (80%)~of the national wealth tax shall, in noi
case, be used by any. local government unit. for any!
purpose other than those for which it was intended.
Incase of any violation or noncompliance by any local.
goverrunent official of any provision thereof, the DILGI
shall, upon prior notice and hearing, order the projec
operator, through the'DOE, to withhold the remittance
iof the royalty 'payment t6 the host 'comniy
,concerned pending tcompletion, of the .investigation4-
T7he unremidtted funds shall be deposited in a
government bakunder a tutfund,
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Title IV
Credit Financing
SECTION 295. Scope. - This Title shall govern the
power of local government units to create
indebtedness and to enter into credit and other
financial transactions.
SECTION 296. General Policy. - (a) It shall be the basic
policy that any local government unit may create
indebtedness, and avail of credit facilities to finance
local infrastructure and other socio-economic
development projects in accordance with the
approved local development plan and public
investment program.
(b) A local government unit may avail of credit lines
from government or private banks and lending
institutions for the purpose of stabilizing local
finances.
SECTION 297. Loans, Credits, and Other Forms of
Indebtedness of Local Government Units. - (a) A local
government unit may contract loans, credits, and
other forms of indebtedness with any government or
domestic private bank and other lending institutions
to finance the construction, installation, improvement,
expansion, operation, or maintenance of public
facilities, infrastructure facilities, housing projects, the
acquisition of real property, and the implementation
of other capital investment projects, subject to such
terms and conditions as may be agreed upon by the
local government unit and the lender. The proceeds
from such transactions shall accrue directly to the
(b) A local government unit may likewise secure from
any government bank and lending institution short-,
medium- and long-term loans and advances against
security of real estate or other acceptable assets for the
establishment, development, or expansion of
agricultural, industrial, commercial, house financing

and livelihood projects, and other economic
enterprises.
(c) Government financial and other lending
institutions are hereby authorized to grant loans,
credits, and other forms of indebtedness out of their
loanable funds to local government units for purposes
specified above.
SECTION 298. Deferred-Payment and other Financial
Schemes. - Provincial, city and municipal
governments may likewise acquire property, plant,
machinery, equipment, and such necessary accessories
under a supplier's credit, deferred payment plan, or
other financial scheme.
SECTION 299. Bonds and Other Long-Term Securities. -
Subject to the rules and regulations of the Central
Bank and the Securities and Exchange Commission,
provinces, cities, and municipalities are hereby
authorized to issue bonds, debentures, securities,
collaterals, notes and other obligations to finance self-
liquidating, income-producing development or
livelihood projects pursuant to the priorities
established in the approved local development plan or
the public investment program. The sanggunian
concerned shall, through an ordinance approved by a
majority of all its members, declare and state the terms
and conditions of the bonds and the purpose for
which the proposed indebtedness is to be incurred.
SECTION 300. Inter-Local Government Loans, Grants,
and Subsidies. - Provinces, cities, and municipalities
may, upon approval of the majority of all members of
the sanggunian concerned and in amounts not
exceeding their surplus funds, extend loans, grants, or
subsidies to other local government units under such
terms and conditions as may be agreed upon by the
contracting parties.
Local government units may, upon approval of their

respective sanggunians, jointly or severally contract
loans, credits, and other forms of indebtedness for
purposes mutually beneficial to them.
SECTION 301. Loans from Funds Secured by the National
Government from Foreign Sources. - (a) The President
or his duly authorized representative may, through
any government financial or other lending institution,
relend to any province, city, municipality, or
barangay, the proceeds of loans contracted with
foreign financial institutions or other international
funding agencies for the purpose of financing the
construction, installation, improvement, expansion,
operation, or maintenance of public utilities and
facilities, infrastructure facilities, or housing projects,
the acquisition of real property, and the
implementation of other capital investment projects,
subject to such terms and conditions as may be agreed
upon by the President and the local government unit.
The proceeds from such loans shall accrue directly to
the local government concerned.
(b) The President may likewise authorize the
relending to local government units the proceeds of
grants secured from foreign sources, subject to the
provisions of existing laws and the applicable grant
agreements.
(c) Repayment or amortization of loans, including
accrued interest thereon, may be financed partly from
the income of the projects or services and from the
regular income of the local government unit, which
must be provided for and appropriated regularly in its
annual budget until the loan and the interest thereon
shall have been fully paid.
SECTION 302. Financing, Construction, Maintenance,
Operation, and Management of Infrastructure Projects by
the Private Sector. - (a) Local government units may
enter into contracts with any duly prequalified
individual contractor, for the financing, construction,
operation, and maintenance of any financially viable

infrastructure facilities, under the build-operate-
transfer agreement, subject to the applicable
provisions of Republic Act Numbered Sixty-nine
hundred fifty-seven (R.A. No. 6957) authorizing the
financing, construction, operation and maintenance of
infrastructure projects by the private sector and the
rules and regulations issued thereunder and such
terms and conditions provided in this section.
(b) Local government units shall include in their
respective local development plans and public
investment programs priority projects that may be
financed, constructed, operated and maintained by the
private sector under this section. It shall be the duty of
the local government unit concerned to disclose to the
public all projects eligible for financing under this
section, including official notification of duly
registered contractors and publication in newspapers
of general or local circulation and in conspicuous and
accessible public places. Local projects under the
build-operate-and-transfer agreement shall be
confirmed by the local development councils.
(c) Projects implemented under this section shall be
subject to the following terms and conditions:
(1) The provincial, city or municipal
engineer, as the case may be, upon
formal request in writing by the local
chief executive, shall prepare the plans
and specifications for the proposed
projects, which shall be submitted to
the sanggunian for approval.
(2) Upon approval by the sanggunian
of the project plans and specifications,
the provincial, city, or municipal
engineer shall, as the case may be,
cause to be published once every week,
for two (2) consecutive weeks in at least
one (1) local newspaper which is

circulated in the region, province, city
or municipality in which the project is
to be implemented, a notice inviting all
duly qualified contractors to participate
in a public bidding for the projects so
approved. The conduct of public
bidding and award of contracts for
local government projects under this
section shall be in accordance with this
Code and other applicable laws, rules
and regulations.
In the case of a build-operate-and-
transfer agreement, the contract shall
be awarded to the lowest complying
bidder whose offer is deemed most
advantageous to the local government
and based on the present value of its
proposed tolls, fees, rentals, and
charges over a fixed term for the
facility to be constructed, operated, and
maintained according to the prescribed
minimum design and performance
standards, plans, and specifications.
For this purpose, the winning
contractor shall be automatically
granted by the local government unit
concerned the franchise to operate and
maintain the facility, including the
collection of tolls, fees, rentals, and
charges in accordance with subsection
(c-4) hereof.
transfer agreement, the contract shall
be awarded to the lowest complying
bidder based on the present value of its
proposed schedule of amortization
payments for the facility to be
constructed according to the prescribed
minimum design and performance

standards, plans, and specifications.
(3) Any contractor who shall undertake
the prosecution of any project under
this section shall post the required
bonds to protect the interest of the
province, city, or municipality, in such
amounts as may be fixed by the
sanggunian concerned and the
provincial, city or municipal engineer
shall not, as the case may be, allow any
contractor to initiate the prosecution of
projects under this section unless such
contractor presents proof or evidence
that he has posted the required bond.
(4) The contractor shall be entitled to a
reasonable return of its investment in
accordance with its bid proposal as
accepted by the local government unit
concerned.
transfer agreement, the repayment
shall be made by authorizing the
contractor to charge and collect
reasonable tolls, fees, rentals, and
charges for the use of the project
facility not exceeding those proposed
in the bid and incorporated in the
contract: Provided, That the local
government unit concerned shall,
based on reasonableness and equity,
approve the tolls, fees, rentals and
charges: Provided, firther, That the
imposition and collection of tolls, fees,
rentals and charges shall be for a fixed
period as proposed in the bid and
incorporated in the contract which
shall in no case exceed fifty (50) years:

Provided, finally, That during the
lifetime of the contract, the contractor
shall undertake the necessary
maintenance and repair of the facility
in accordance with standards
prescribed in the bidding documents
and in the contract.
transfer agreement, the repayment
shall be made through amortization
payments in accordance with the
schedule proposed in the bid and
incorporated in the contract.
In case of land reclamation or
construction of industrial estates, the
repayment plan may consist of the
grant of a portion or percentage of the
reclaimed land or the industrial estate
constructed.
(5) Every infrastructure project
undertaken under this section shall be
constructed, operated, and maintained
by the contractor under the technical
supervision of the local government
unit and in accordance with the plans,
specifications, standards, and costs
approved by it.
(d) The provincial, city, or municipal legal officer
shall, as the case may be, review the contracts
executed pursuant to this section to determine their
legality, validity, enforceability and correctness of
form.
SECTION 303. Remedies and Sanctions. - Local
government unit shall appropriate in their respective
annual budgets such amounts as are sufficient to pay
the loans and other indebtedness incurred or redeem
or retire bonds, debentures, securities, notes and other

obligations issued under this Title: Provided, That
failure to provide the appropriations herein required
shall render their annual budgets inoperative.
Title V
LOCAL FISCAL ADMINISTRATION
Chapter I
General Provisions
conduct and management of financial affairs,
transactions, and operations of provinces, cities,
SECTION 305. FundamentalPrinciples. - The financial
affairs, transactions, and operations of local
government units shall be governed by the following
(a) No money shall be paid out of the local treasury
except in pursuance of an appropriations ordinance or
law;
Based on considerations of public policy, government funds

and properties may not be seized under writs of execution or
garnishment to satisfy judgments rendered by the courts, and
disbursements of public funds must be covered by the corresponding
appropriation as required by law. 639
(b) Local government funds and monies shall be spent

solely for public purposes;
(c) Local revenue is generated only from sources
expressly authorized by law or ordinance, and
6
" Rallos v. City of Cebu, G.R No. 202651, August 28, 2013.
+(,121/,1(
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Tue Apr 17 11:21:20 2018



or retire bonds, debentures, securities, notes and other

obligations issued under this Title: Provided, That
failure to provide the appropriations herein required
shall render their annual budgets inoperative.
Title V
LOCAL FISCAL ADMINISTRATION
Chapter I
General Provisions
conduct and management of financial affairs,
transactions, and operations of provinces, cities,
SECTION 305. FundamentalPrinciples. - The financial
affairs, transactions, and operations of local
government units shall be governed by the following
(a) No money shall be paid out of the local treasury
except in pursuance of an appropriations ordinance or
law;
Based on considerations of public policy, government funds

and properties may not be seized under writs of execution or
garnishment to satisfy judgments rendered by the courts, and
disbursements of public funds must be covered by the corresponding
appropriation as required by law. 639
(b) Local government funds and monies shall be spent

solely for public purposes;
(c) Local revenue is generated only from sources
expressly authorized by law or ordinance, and
6
" Rallos v. City of Cebu, G.R No. 202651, August 28, 2013.
collection thereof shall at all times be acknowledged

properly;
(d) All monies officially received by a local
government officer in any capacity or on any occasion
shall be accounted for as local funds, unless otherwise
provided by law;
(e) Trust funds in the local treasury shall not be paid
out except in fulfillment of the purpose for which the
trust was created or the funds received;
(f) Every officer of the local government unit whose
duties permit or require the possession or custody of
local funds shall be properly bonded, and such officer
shall be accountable and responsible for said funds
and for the safekeeping thereof in conformity with the
provisions of law;
(g) Local governments shall formulate sound financial
plans, and local budgets shall be based on functions,
activities, and projects, in terms of expected results;
(h) Local budget plans and goals shall, as far as
practicable, be harmonized with national
development plans, goals, and strategies in order to
optimize the utilization of resources and to avoid
duplication in the use of fiscal and physical resources;
(i) Local budgets shall operationalize approved local
development plans;
(j) Local government units shall ensure that their
respective budgets incorporate the requirements of
their component units and provide for equitable
allocation of resources among these component units;
(k) National planning shall be based on local planning
to ensure that the needs and aspirations of the people
as articulated by the local government units in their
respective local development plans are considered in
the formulation of budgets of national line agencies or
offices;
(1) Fiscal responsibility shall be shared by all those

exercising authority over the financial affairs,
transactions, and operations of the local government
units; and
(m)The local government unit shall endeavor to have
a balanced budget in each fiscal year of operation.
(a) "Annual Budget" refers to a financial plan
embodying the estimates of income and expenditures
for one (1) fiscal year;
(b) "Appropriation" refers to an authorization made
by ordinance, directing the payment of goods and
services from local government funds under specified
conditions or for specific purposes; 6
(c) "Budget Document" refers to the instrument used
by the local chief executive to present a
comprehensive financial plan to the sanggunian
concerned;
(d) "Capital Outlays" refers to appropriations for the
purchase of goods and services, the benefits of which
extend beyond the fiscal year and which add to the
assets of the local government unit concerned,
including investments in public utilities such as public
markets and slaughterhouses;
(e) "Continuing Appropriation" refers to an
appropriation available to support obligations for a
specified purpose or projects, such as those for the
construction of physical structures or for the
acquisition of real property or equipment, even when
these obligations are incurred beyond the budget year;
appropriation covers the expenditures which are to be made by the local

640 The
government unit, such as current operating expenditures and capital outlays. See
Quisumbing v. Garcia, G.R. No. 175527, December 8,2008.
(f) "Current Operating Expenditures" refers to

appropriations for the purchase of goods and services
for the conduct of normal local government operations
within the fiscal year, including goods and services
that will be used or consumed during the budget year;
(g) "Expected Results" refers to the services, products,
or benefits that shall accrue to the public, estimated in
terms of performance measures or physical targets;
(h) "Fund" refers to a sum of money, or other assets
convertible to cash, set aside for the purpose of
carrying out specific activities or attaining certain
objectives in accordance with special regulations,
restrictions, or limitations, and constitutes an
independent fiscal and accounting entity;
(i) "Income" refers to all revenues and receipts
collected or received forming the gross accretions of
funds of the local government unit;
(j) "Obligations" refers to an amount committed to be
paid by the local government unit for any lawful act
made by an accountable officer for and in behalf of the
(k) "Personal Services" refers to appropriations for the
payment of salaries, wages and other compensation of
permanent, temporary, contractual, and casual
employees of the local government unit;
(I) "Receipts" refers to income realized from
operations and activities of the local government or
are received by it in the exercise of its corporate
functions, consisting of charges for services rendered,
conveniences furnished, or the price of a commodity
sold, as well as loans, contributions or aids from other
entities, except provisional advances for budgetary
purposes; and
(m) "Revenue" refers to income derived from the
regular system of taxation enforced under authority of
law or ordinance, and, as such, accrue more or less
regularly every year.
Chapter II
Local and Other Special Funds
Article I
Receipts, Safekeeping keeping and Disposition of
Local Funds
SECTION 307. Remittance of Government Monies to the

Local Treasury. - Officers of the local government
authorized to receive and collect monies arising from
taxes, revenues, or receipts of any kind shall remit the
full amount received and collected to the treasury of
such local government unit which shall be credited to
the particular account or accounts to which the monies
in question properly belong.
SECTION 308. Local Funds. - Every local government
unit shall maintain a General Fund which shall be
used to account for such monies and resources as may
be received by and disbursed from the local treasury.
The General Fund shall consist of monies and
resources of the local government which are available
for the payment of expenditures, obligations or
purposes not specifically declared by law as accruing
and chargeable to, or payable from, any other fund.
SECTION 309. Special Funds. - There shall be
maintained in every provincial, city, or municipal
treasury the following special funds:
(a) Special Education Fund (SEF) which shall consist
of the respective shares of provinces, cities,
municipalities and barangays in the proceeds of the
additional tax on real property to be appropriated for
purposes prescribed in Section 272 of this Code; and
(b) Trust funds shall consist of private and public
monies which have officially come into the possession
of the local government or of a local government

official as trustee, agent or administrator, or which
have been received as a guaranty for the fulfillment of
some obligation. A trust fund shall only be used for
the specific purpose for which it was created or for
which it came into the possession of the local
government unit.
SECTION 310. Separation of Books and Depository
Accounts. - Local accountants and treasurers shall
maintain separate books and depository accounts,
respectively, for each fund in their custody or
administration under such rules and regulations as the
Commission on Audit may prescribe.
SECTION 311. DepositoryAccounts. - Local treasurers
shall maintain depository accounts in the name of
their respective local government units with banks,
preferably government-owned, located in or nearest to
their respective areas of jurisdiction. Earnings of each
depository account shall accrue exclusively thereto.
SECTION 312. Separationof PersonalMoney from Public
Funds. - Local treasurers and other accountable
officers shall keep personal monies separate and
distinct from local public funds in their custody and
shall not make profit out of public money or otherwise
apply the same to any use not authorized by law or
ordinance.
ARTICLE II
Special Accounts
SECTION 313. Special Accounts to be Maintained in the
General Fund. - Local government units shall
maintain special accounts in the general fund for the
following:
(a) Public utilities and other
economic enterprises;
(b) Loans, interests, bond issues,

and other contributions for specific
purposes; and
(c) Development projects funded
from the share of the local government
unit concerned in the internal revenue
allotment and such other special
accounts which may be created by law
or ordinance.
Receipts, transfers, and expenditures involving the
foregoing special accounts shall be properly taken up
thereunder.
Profits or income derived from the operation of public
utilities and other economic enterprises, after
deduction for the cost of improvement, repair and
other related expenses of the public utility or
economic enterprise concerned, shall first be applied
for the return of the advances or loans made therefor.
Any excess shall form part of the general fund of the
Chapter III
Budgeting
Article I
Local Government Budgets
SECTION 314. Form and Content. - (a) Local
government budgets shall primarily consists of two (2)
parts:
(1) The estimates of income; and
(2) The total appropriations covering
the current operating expenditures and
capital outlays.
(b) The budget document shall contain:

(1) A budget message of the local chief
executive setting forth in brief the
significance of the executive budget,
particularly in relation to the approved
local development plan;
(2) A brief summary of the functions,
projects, and activities to be
accomplished in pursuit of the goals
and objectives of the local government
unit for the ensuing fiscal year,
specifically the delivery of basic
services or facilities enumerated under
Section 17 of this Code;
(3) Summary of financial statements
setting forth:
(i) The actual income
and expenditures during
the immediately
preceding year;
(ii) The actual income
and expenditures of the
first two (2) quarters and
the estimates of income
and expenditures for the
last two (2) quarters of
the current fiscal year;
(iii) The estimates of
income for the ensuing
fiscal year from
ordinances and laws
existing at the time the
proposed budget is
transmitted, together
with other revenue-
raising proposals;
(iv) The estimated

expenditures necessary
to carry out the
functions, projects, and
activities of the local
government unit for the
ensuing fiscal year;
(v) All essential facts
regarding the bonded
and other long-term
obligations and
indebtedness of the local
government unit, if any;
(vi) Summary statement
of all statutory and
contractual obligations
due; and
(vii) Such other financial
statements and data as
are deemed necessary or
desirable in order to
disclose in all practicable
detail the financial
condition of the local
government unit.
SECTION 315. Submission of Detailed Statements of
Income and Expenditures. - (a) On or before the
fifteenth (15th) day of July of each year, local
treasurers shall submit to their respective local chief
executives a certified statement covering the income
and expenditures of the preceding fiscal year, the
actual income and expenditures of the first two (2)
quarters of the current year, and the estimated income
and expenditures for the last two (2) quarters of the
current year.
SECTION 316. Local Finance Committee. - There is
hereby created in every province, city or municipality
a local finance committee to be composed of the local

planning and development officer, the local budget
officer, and the local treasurer. It shall exercise the
following functions:
(a) Determine the income reasonably
projected as collectible for the ensuing
fiscal year;
(b) Recommend the appropriate tax
and other revenue measures or
borrowings which may be appropriate
to support the budget;
(c) Recommend to the local chief
executive concerned the level of the
annual expenditures and the ceilings of
spending for economic, social, and
general services based on the approved
local development plans;
(d) Recommend to the local chief
executive concerned the proper
allocation of expenditures for each
development activity between current
operating expenditures and capital
outlays;
(e) Recommend to the local chief
executive concerned the amount to be
allocated for capital outlay under each
development activity or infrastructure
project;
(f) Assist the sangguniang
panlalawigan in the review and
evaluation of budget of component
cities and municipalities in the case of
provincial finance committee, the
barangay budgets in the case of city or
municipal finance committee, and
recommend the appropriate action
thereon;
(g) Assist the sanggunian concerned in

the analysis and review of annual
regular and supplemental budgets of
the respective local government unit to
determine compliance with statutory
and administrative requirements; and
(h) Conduct semi-annual review and
general examination of cost and
accomplishments against performance
standards applied in undertaking
development projects.
A copy of this report shall be furnished the local chief
executive and the sanggunian concerned, and shall be
posted in conspicuous and publicly accessible places
in the provinces, cities, municipalities and barangays.
SECTION 317. Submission of Budget Proposalsby Heads
of Departments or Offices. - (a) Each head of
department or office shall submit a budget proposal
for his department or office to the local chief executive
on or before the fifteenth (15th) of July of each year:
Provided, That the budget proposal of each department
of office shall be categorized under either economic,
social or general services: Provided,ffurther, That each
service shall be covered by the budget of at least one
(1) department or office of the local government unit
concerned.
The said budget proposal shall be prepared in
accordance with such policy and program guidelines
as the local chief executive concerned may issue in
conformity with the local development plan, the
budgetary ceilings prescribed by the local finance
committee, and the general requirements prescribed in
this Title.
(b) Budget proposals of departments or offices shall be
divided into two (2) primary categories, namely: the
current operating expenditures and the capital
outlays. Such budget proposals shall contain the

following information:
(1) Objectives, functions, and projects
showing the general character and
relative importance of the work to be
accomplished or the services to be
rendered, and the cost thereof;
(2) Organizational charts and staffing
patterns indicating the list of plantilla
positions with their corresponding
salaries, and proposals for
reclassification of positions and salary
changes, as well as the creation of new
positions with their proposed salary
grade, duly supported by proper
justification;
(3) Brief description of the functions,
projects and activities for the ensuing
fiscal year, expected results for each
function, project and activity, and the
nature of work to be performed,
including the objects of expenditure for
each function, project and activity;
(4) Relation of the work and financial
proposals to approved local
development plans;
(5) Estimated current operating
expenditures and capital outlays with
comparative data for the last two (2)
preceding, current, and ensuing fiscal
years; and
(6) Accomplishment reports for the last
two (2) preceding and current fiscal
years.
SECTION 318. Preparationof the Budget by the Local
Chief Executive. - Upon receipt of the statements of
income and expenditures from the treasurer, the
budget proposals of the heads of departments and

offices, and the estimates of income and budgetary
ceilings from the local finance committee, the local
chief executive shall prepare the executive budget for
the ensuing fiscal year in accordance with the
provisions of this Title.
The local chief executive shall submit the said
executive budget to the sanggunian concerned not
later than the sixteenth (16th) of October of the current
fiscal year. Failure to submit such budget on the date
prescribed herein shall subject the local chief executive
to such criminal and administrative penalties as
provided for under this Code and other applicable
laws.
SECTION 319. Legislative Authorization of the Budget. -
On or before the end of the current fiscal year, the
sanggunian concerned shall, through an ordinance,
the annual budget of the local government unit for the
ensuing fiscal year on the basis of the estimates of
income and expenditures submitted by the local chief
executive.
SECTION 320. Effectivity of Budgets. - The ordinance
enacting the annual budget shall take effect at the
beginning of the ensuing calendar year. An ordinance
enacting a supplemental budget, however, shall take
effect upon its approval or on the date fixed therein.
The responsibility for the execution of the annual and
supplemental budgets and the accountability therefor
shall be vested primarily in the local chief executive
concerned.
SECTION 321. Changes in the Annual Budget. - All
budgetary proposals shall be included and considered
in the budget preparation process. After the local chief
executive concerned shall have submitted the
executive budget to the sanggunian, no ordinance
providing for a supplemental budget shall be enacted,
except when supported by funds actually available as
certified by the local treasurer or by new revenue

sources.
A supplemental budget may also be enacted in times
of public calamity by way of budgetary realignment to
set aside appropriations for the purchase of supplies
and materials or the payment of services which are
exceptionally urgent or absolutely indispensable to
prevent imminent danger to, or loss of, life or
property, in the jurisdiction of the local government
unit or in other areas declared in a state of calamity by
the President. Such ordinance shall clearly indicate the
sources of funds available for appropriations, as
certified under oath by the local treasurer and local
accountant and attested to by the local chief executive,
and the various items of appropriations affected and
the reasons for the change.
SECTION 322. Reversion of Unexpended Balances of
Appropriations, Continuing Appropriations. -
Unexpended balances of appropriations authorized in
the annual appropriations ordinance shall revert to the
unappropriated surplus of the general fund at the end
of the fiscal year and shall not thereafter be available
for the expenditure except by subsequent enactment.
However, appropriations for capital outlays shall
continue and remain valid until fully spent, reverted
or the project is completed. Reversions of continuing
appropriations shall not be allowed unless obligations
therefor have been fully paid or otherwise settled.
The balances of continuing appropriations shall be
reviewed as part of the annual budget preparation
and the sanggunian concerned may approve, upon
recommendation of the local chief executive, the
reversion of funds no longer needed in connection
with the activities funded by said continuing
appropriations subject to the provisions of this section.
SECTION 323. Failure to Enact the Annual
Appropriations. - In case the sanggunian concerned
fails to pass the ordinance authorizing the annual
appropriations at the beginning of the ensuing fiscal

year, it shall continue to hold sessions, without
additional remuneration for its members, until such
ordinance is approved, and no other business may be
taken up during such sessions. If the sanggunian still
fails to enact such ordinance after ninety (90) days
from the beginning of the fiscal year, the ordinance
authorizing the appropriations of the preceding year
shall be deemed reenacted and shall remain in force
and effect until the ordinance authorizing the
proposed appropriations is passed by the sanggunian
concerned. However, only the annual appropriations
for salaries and wages of existing positions, statutory
and contractual obligations, and essential operating
expenses authorized in the annual and supplemental
budgets for the preceding year shall be deemed
reenacted and disbursement of funds shall be in
accordance therewith.
In the implementation of such reenacted ordinance,
the local treasurer concerned shall exclude from the
estimates of income for the preceding fiscal year those
realized from nonrecurring sources, like national aids,
proceeds from loans, sale of assets, prior year
adjustments, and other analogous sources of income.
No ordinance authorizing supplemental
appropriations shall be passed in place of the annual
appropriations.
In case the revised income estimates be less than the
aggregate reenacted appropriations, the local treasurer
concerned shall accordingly advise the sanggunian
concerned which shall, within ten (10) days from the
receipt of such advice, make the necessary
adjustments or reductions. The revised appropriations
authorized by the sanggunian concerned shall then be
the basis for disbursements.
SECTION 324. Budgetary Requirements. - The budgets

of local government units for any fiscal year shall
comply with the following requirements:
(a) The aggregate amount appropriated
shall not exceed the estimates of
income;
(b) Full provision shall be made for all
statutory and contractual obligations of
the local government unit concerned:
Provided, however, That the amount of
appropriations for debt servicing shall
not exceed twenty percent (20%) of the
regular income of the local government
unit concerned;
(c) In the case of provinces, cities, and
municipalities, aid to component
barangays shall be provided in
amounts of not less than One thousand
pesos (P1,000.00) per barangay; and
(d) Five percent (5%) of the estimated
revenue from regular sources shall be
set aside as annual lump sum
appropriations for relief, rehabilitation,
reconstruction and other works or
services in connection with calamities
which may occur during the budget
year. Provided, however, That such fund
shall be used only in the area, or a
portion thereof, of the local
government unit or other areas affected
by a disaster or calamity, as
determined and declared by the local
sanggunian concerned.
Calamity shall be defined as a state of extreme distress
or misfortune, produced by some adverse
circumstance or event or any great misfortune or
cause or loss or misery caused by natural forces.
In case of fire or conflagration, the calamity fund shall

be utilized only for relief operations.
The local development council shall more monitor the
use and disbursement of the calamity fund.641
SECTION 325. General Limitations. - The use of the
provincial, city, and municipal funds shall be subject
to the following limitations:
(a) The total appropriations, whether
annual or supplemental, for personal
services of a local government unit for
one (1) fiscal year shall not exceed
forty-five percent (45%) in the case of
first to third class provinces, cities and
municipalities, and fifty-five percent
(55%) in the case of fourth class or
lower, of the total annual income from
regular sources realized in the next
preceding fiscal year. The
appropriations for salaries, wages,
representation and transportation
allowances of officials and employees
of the public utilities and economic
enterprises owned, operated, and
maintained by the local government
unit concerned shall not be included in
the annual budget or in the
computation of the maximum amount
for personal services. The
appropriations for the personal services
of such economic enterprises shall be
charged to their respective budgets;
(b) No official or employee shall be
entitled to a salary rate higher than the
maximum fixed for his position or
other positions of equivalent rank by

applicable laws or rules and

regulations issued thereunder;
(c) No local fund shall be appropriated
to increase or adjust salaries or wages
of officials and employees of the
national government, except as may be
expressly authorized by law;
(d) In cases of abolition of positions
and the creation of new ones resulting
from the abolition of existing positions
in the career service, such abolition or
creation shall be made in accordance
with pertinent provisions of this Code
and the civil service law, rules and
regulations;
(e) Positions in the official plantilla for
career positions which are occupied by
incumbents holding permanent
appointments shall be covered by
adequate appropriations;
(f) No changes in designation or
nomenclature of positions resulting in a
promotion or demotion in rank or
increase or decrease in compensation
shall be allowed, except when the
position is actually vacant, and the
filling of such positions shall be strictly
made in accordance with the civil
service law, rules and regulations;
(g) The creation of new positions and
salary increases or adjustments shall in
no case be made retroactive; and
(h) The annual appropriations for
discretionary purposes of the local
chief executive shall not exceed two
percent (2%) of the actual receipts
derived from basic real property tax in
the next preceding calendar year.

Discretionary funds shall be disbursed
only for public purposes to be
supported by appropriate vouchers
and subject to such guidelines as may
be prescribed by law. No amount shall
be appropriated for the same purpose
except as authorized under this section.
SECTION 326. Review of Appropriation Ordinances of
Provinces, Highly-Urbanized Cities, Independent
Component Cities, and Municipalities within the
Metropolitan Manila Area. - The Department of
Budget and Management shall review ordinances
authorizing the annual or supplemental
appropriations of provinces, highly-urbanized cities,
independent component cities, and municipalities
within the Metropolitan Manila Area in accordance
with the immediately succeeding section.
SECTION 327. Review of Appropriation Ordinances of
Component Cities and Municipalities. - The
sangguniang panlalawigan shall review the ordinance
authorizing annual or supplemental appropriations of
component cities and municipalities in the same
manner and within the same period prescribed for the
review of other ordinances.
If within ninety (90) days from receipt of copies of
such ordinance, the sangguniang panlalawigan takes
no action thereon, the same shall be deemed to have
been reviewed in accordance with law and shall
continue to be in full force and effect. If within the
same period, the sangguniang panlalawigan shall
have ascertained that the ordinance authorizing
annual or supplemental appropriations has not
complied with the requirements set forth in this Title,
the sangguniang panlalawigan shall, within the
ninety-day period hereinabove prescribed, declare
such ordinance inoperative in its entirety or in part.
Items of appropriation contrary to limitations
prescribed in this Title or in excess of the amounts

prescribed herein shall be disallowed or reduced
accordingly.
The sangguniang panlalawigan shall, within the same
period, advise the sangguniang panlungsod or
sangguniang bayan concerned, through the local chief
executive, of any action on the ordinance under
review. Upon receipt of such advice, the city or
municipal treasurer concerned shall not make further
disbursements of funds from any of the items of
appropriation declared inoperative, disallowed or
reduced.
In Dadole v. Commission on Audit, 42 the Supreme Court held

that if the Department of Budget and Management does not take any
positive action within 90 days from receipt of the copies of the
appropriation ordinance, such ordinance is deemed properly
reviewed and deemed to have taken effect. If the DBM allowed the
90-day period to lapse, it can no longer question the legality of the
provisions in the said ordinance granting additional allowances to
judges stationed in the said city.
SECTION 328. Duration of Appropriation. -

Appropriations for ordinary administrative purposes
not duly obligated shall terminate with the fiscal year
and all unexpended balances thereof shall be
automatically reverted on the thirty-first (31st) day of
December of each year to the general fund of the local
government unit.
Article II
Barangay Budgets
SECTION 329. Barangay Funds. - Unless otherwise
provided in this Title, all the income of the barangay
642 G.R. No. 125350, December 3,2002.

from whatever source shall accrue to its general fund

and shall, at the option of the barangay concerned, be
kept as trust fund in the custody of the city or
municipal treasurer or be deposited in a bank,
preferably government-owned, situated in or nearest
to its area of jurisdiction. Such funds shall be
disbursed in accordance with the provisions of this
Title. Ten percent (10%) of the general fund of the
barangay shall be set aside for the sangguniang
kabataan.
SECTION 330. Submission of Detailed Statements of
Income and Expendituresfor the Barangay Budgets. - On
or before the fifteenth (15th) day of September of each
year, the barangay treasurer shall submit to the
punong barangay a statement covering the estimates
of income and expenditures for the ensuing fiscal
year, based on a certified statement issued by the city
or municipal treasurer covering the estimates of
income from local sources for the barangay concerned.
SECTION 331. Preparationof the BarangayBudget. - (a)
Upon receipt of the statement of income and
expenditures from the barangay treasurer, the punong
barangay shall prepare the barangay budget for the
ensuing fiscal year in the manner and within the
period prescribed in this Title and submit the annual
barangay budget to the sangguniang barangay for
legislative enactment.
(b) The total annual appropriations for personal
services of a barangay for one (1) fiscal year shall not
exceed fifty-five percent (55%) of the total annual
income actually realized from local sources during the
next preceding fiscal year.
(c) The barangay budget shall likewise be subject to
the same budgetary requirements and limitations
hereinabove prescribed.
SECTION 332. Effectivity of Barangay Budgets. - The
ordinance enacting the annual budget shall take effect
at the beginning of the ensuing calendar year. An

ordinance enacting a supplemental budget, however,
shall take effect upon its approval or on the date fixed
therein.
The responsibility for the execution of the annual and
supplemental budgets and the accountability therefor
shall be vested primarily in the punong barangay
concerned.
SECTION 333. Review of the Barangay Budget. - (a)
Within ten (10) days from its approval, copies of the
barangay ordinance authorizing the annual
appropriations shall be furnished the sangguniang
panlungsod or the sangguniang bayan, as the case
may be, through the city or municipal budget officer.
The sanggunian concerned shall have the power to
review such ordinance in order to ensure that the
provisions of this Title are complied with. If within
sixty (60) days after the receipt of the ordinance, the
sanggunian concerned takes no action thereon, the
same shall continue to be in full force and effect. If
within the same period, the sanggunian concerned
shall have ascertained that the ordinance contains
appropriations in excess of the estimates of the income
duly certified as collectible, or that the same has not
complied with the budgetary requirements set forth in
this Title, the said ordinance shall be declared
inoperative in its entirety or in part. Items of
appropriation contrary to, or in excess of, any of the
general limitations or the maximum amount
prescribed in this Title shall be disallowed or reduced
accordingly.
(b) Within the period hereinabove fixed, the
sangguniang panlungsod or sangguniang bayan
concerned shall return the barangay ordinance,
through the city or municipal budget officer, to the
punong barangay with the advice of action thereon for
proper adjustments, in which event, the barangay
shall operate on the ordinance authorizing annual
appropriations of the preceding fiscal year until such

time that the new ordinance authorizing annual
appropriations shall have met the objections raised.
Upon receipt of such advice, the barangay treasurer or
the city or municipal treasurer who has custody of the
funds shall not make further disbursement from any
item of appropriation declared inoperative,
disallowed, or reduced.
SECTION 334. BarangayFinancialProcedures. - (a) The
barangay treasurer shall collect all taxes, fees, and
other charges due and contributions accruing to the
barangay for which he shall issue official receipts, and
shall deposit all collections with the city or municipal
treasury or in the depository account maintained in
the name of the barangay within five (5) days after
receipt thereof. He may collect real property taxes and
such other taxes as may be imposed by a province,
city or municipality that are due in his barangay only
after being deputized by the local treasurer concerned
for the purpose.
(b) The barangay treasurer may be authorized by the
sangguniang barangay to make direct purchases
amounting to not more than One thousand pesos
(P1,000.00) at any time for the ordinary and essential
needs of the barangay. The petty cash that the
barangay treasurer may be authorized to hold for the
purpose shall not exceed twenty percent (20%) of the
funds available and to the credit of the barangay
treasury.
(c) The financial records of the barangay shall be kept
in the office of the city or municipal accountant in
simplified manner as prescribed by the Commission
on Audit (COA). Representatives of the COA shall
audit such accounts annually or as often as may be
necessary and make a report of the audit to the
sangguniang panlungsod or sangguniang bayan, as
the case may be. The COA shall prescribe and put into
effect simplified procedures for barangay finances

within six (6) months following the effectivity of this
Code.
Chapter IV
Expenditures, Disbursements, Accounting and
Accountability
SECTION 335. Prohibitions Against Expenditures for
Religious or Private Purposes. - No public money or
property shall be appropriated or applied for religious
or private purposes.
Section 335 is clear and specific that no public money or

property shall be appropriated or applied for private purposes. This
is in consonance with the fundamental principle in local fiscal
administration that local government funds and monies shall be
spent solely for public purposes."3
SECTION 336. Use of Appropriated Funds and Savings.

- Funds shall be available exclusively for the specific
purpose for which they have been appropriated. No
ordinance shall be passed authorizing any transfer of
appropriations from one item to another. However,
the local chief executive or the presiding officer of the
sanggunian concerned may, by ordinance, be
60Albon v. Fernando, G.R. No. 148356, June 30, 2006. In this case, the Supreme
Court held that the use of local government funds widen and improve privately-
owned sidewalks violates Section 335. The Court also cited Section 17 of the Code
which mandates local governments to efficiently and effectively provide basic
services and facilities. The law speaks of infrastructure facilities intended primarily
to service the needs of the residents of the local governments and "which are funded
out of municipalfunds." It particularly refers to "municipal roads and bridges" and
"similar facilities." The phrase "similar facilities" refers to or includes infrastructure
facilities like sidewalks owned by the local government. The Court concluded that
the Code contemplates that only the construction, improvement, repair and
maintenance of infrastructure facilities owned by the local government may be
bankrolled with local government funds.
authorized to augment any item in the approved

annual budget for their respective offices from savings
in other items within the same expense class of their
respective appropriations.
Section 336 provides that an ordinance has to be enacted to

lawfully apply funds, already appropriated for a determined public
purpose, to some other purpose. By requiring an ordinance, the law
gives the Sanggunian the power to determine whether savings have
accrued and to authorize the augmentation of other items on the
budget with those savings.6 "
SECrION 337. Restriction Upon Limit of Disbursements.

- Disbursements in accordance with appropriations
in the approved annual budget may be made from
any local fund in the custody of the treasurer, but the
total disbursements from any local fund shall in no
case exceed fifty percent (50%) of the uncollected
estimated revenue accruing to such local fund in
addition to the actual collections: Provided, however,
That no cash overdraft in any local fund shall be
incurred at the end of the fiscal year.
In case of emergency arising from a typhoon,
earthquake, or any other calamity, the sanggunian
concerned may authorize the local treasurer to
continue making disbursements from any local fund
in his possession in excess of the limitations herein
provided, but only for such purposes and amounts
included in the approved annual budgets.
Any overdraft which may be incurred at the end of
the year in any local fund by virtue of the provisions
hereof shall be covered with the first collections of the
immediately succeeding fiscal year accruing to such
local fund.
64 Ysidoro v. People of the Philippines, G.R. No. 192330, November 14, 2012.
SECTION 338. ProhibitionsAgainst Advance Payments.

- No money shall be paid on account of any contract
under which no services have been rendered or goods
delivered.
SECTION 339. Cash Advances. - No cash advance
shall be granted to any local official or employee,
elective or appointive, unless made in accordance with
the rules and regulations as the COA may prescribe.
The Cash Division Chief, City Treasurer and City

Administrator all have to comply with Section 339 of Republic Act
No. 7160 among other laws on the proper procedure for the approval
and grant of cash advances. Cash advances can only be disbursed for
a legally authorized specific purpose and cannot be given to officials
whose previous cash advances have not been settled or properly
accounted for. Cash advances should also be equal to the net amount
of the payroll for a certain pay period, and they should be supported
by the payroll or list of payees and their net payments. Additional
cash advances that are granted when previous cash advances were
not yet liquidated resulted in excessive granting of cash advances,
which created the opportunity to misappropriate public funds since
excess or idle funds were placed in the hands of the paymaster under
her total control and disposal. This violates Section 339 of the
Code."5
SECTION 340. PersonsAccountablefor Local Government

Funds. - Any officer of the local government unit
whose duty permits or requires the possession or
custody of local government funds shall be
accountable and responsible for the safekeeping
thereof in conformity with the provisions of this Title.
Other local officers who, though not accountable by
the nature of their duties, may likewise be similarly
held accountable and responsible for local
government funds through their participation in the
use or application thereof.
w Bacasmas v. Sandiganbayan, G.RI No. 189343, July 10, 2013.

Among the duties of the treasurer under Section 470 (d) (2) is
"to take custody and exercise proper management of the funds of the
local government unit concerned. The municipal mayor was also
accountable for the public funds by virtue of Section 340 of the Local
Government Code." 6
Municipal mayors are chief executives of their respective
municipalities and under Section 102 of the Government Auditing
Code of the Philippines, they are responsible for all government
funds pertaining to the municipality. Section 102 provides:
PBrIN 102. PrimaryJandsecondary'esponshibitil. -

()The ed o n agetic Iy of th' gvernmentt is
Jmm~da
ly 'andrespoisible for
government funds ndproperty pertaining -to hii
SECTION 341. Prohibitions Against Pecuniary Interest.

- Without prejudice to criminal prosecution under
applicable laws, any local treasurer, accountant,
budget officer, or other accountable local officer
having any pecuniary interest, direct or indirect, in
any contract, work or other business of the local
government unit of which he is an accountable officer
shall be administratively liable therefor.
SECTION 342. Liabilityfor Acts Done Upon Direction of
Superior Officer, or Upon Participation of Other
Department Heads or Officers of Equivalent Rank. -
Unless he registers his objection in writing, the local
treasurer, accountant, budget officer, or other
accountable officer shall not be relieved of liability for
illegal or improper use or application or deposit of
government funds or property by reason of his having
acted upon the direction of a superior officer, elective
6'People v. Pantaleon, Jr., G.R. No. 158694-96, March 13, 2009.

or appointive, or upon participation of other

department heads or officers of equivalent rank. The
superior officer directing, or the department head
participating in such illegal or improper use or
application or deposit of government funds or
property, shall be jointly and severally liable with the
local treasurer, accountant, budget officer, or other
accountable officer for the sum or property so illegally
or improperly used, applied or deposited.
SECTION 343. Prohibition Against Expenses for
Reception and Entertainment. - No money shall be
appropriated, used, or paid for entertainment or
reception except to the extent of the representation
allowances authorized by law or for the reception of
visiting dignitaries of foreign governments or foreign
missions, or when expressly authorized by the
President in specific cases.
SECTION 344. Certification on, and Approval of,
Vouchers. - No money shall be disbursed unless the
local budget officer certifies to the existence of
appropriation that has been legally made for the
purpose, the local accountant has obligated said
appropriation, and the local treasurer certifies to the
availability of funds for the purpose. Vouchers and
payrolls shall be certified to and approved by the head
of the department or office who has administrative
control of the fund concerned, as to validity,
propriety, and legality of the claim involved. Except in
cases of disbursements involving regularly recurring
administrative expenses such as payrolls for regular or
permanent employees, expenses for light, water,
telephone and telegraph services, remittances to
government creditor agencies such as GSIS, SSS, LBP,
DBP, National Printing Office, Procurement Service of
the DBM and others, approval of the disbursement
voucher by the local chief executive himself shall be
required whenever local funds are disbursed.
In cases of special or trust funds, disbursements shall

be approved by the administrator of the fund.
In case of temporary absence or incapacity of the
department head or chief of office, the officer next-in-
rank shall automatically perform his function and he
shall be fully responsible therefor.
The Vice-Governor, as the presiding officer of the

Sangguniang Panlalawigan, has administrative control of the funds
of the said body. Accordingly, it is the Vice-Governor who has the
authority to approve disbursement vouchers for expenditures
appropriated for the operation of the Sangguniang Panlalawigan.
On this point, Section 39 of the Manual on the New
Government Accounting System for Local Government Units,
prepared by the Commission on Audit (COA), is instructive:
While Republic Act No. 7160 is silent as to the matter, the

authority granted to the Vice-Governor to sign all warrants drawn on
the provincial treasury for all expenditures appropriated for the
operation of the Sangguniang Panlalawigan, as well as to approve

disbursement vouchers relating thereto, necessarily includes the
authority to approve purchase orders covering the same applying the
doctrine of necessary implication. This doctrine is explained, thus:
No statute can be enacted that can provide all the
details involved in its application. There is always an
omission that may not meet a particular situation.
What is thought, at the time of enactment, to be an all-
embracing legislation may be inadequate to provide
for the unfolding of events of the future. So-called
gaps in the law develop as the law is enforced. One of
the rules of statutory construction used to fill in the
gap is the doctrine of necessary implication. The
doctrine states that what is implied in a statute is as
much a part thereof as that which is expressed. Every
statute is understood, by implication, to contain all
such provisions as may be necessary to effectuate its
object and purpose, or to make effective rights,
powers, privileges or jurisdiction which it grants,
including all such collateral and subsidiary
consequences as may be fairly and logically inferred
from its terms. Ex necessitate legis. And every statutory
grant of power, right or privilege is deemed to include
all incidental power, right or privilege. This is so
because the greater includes the lesser, expressed in
the maxim, in eo plus sit, simper inest et minus.647
Warrants are "order[s] directing the treasurer of the
municipality to pay money out of funds in city treasury which are or
may become available for purpose specified to designated
person[s]." Warrants of a municipal corporation are generally orders
payable when funds are found. They are issued for the payment of
general municipal debts and expenses subject to the rule that they
shall be paid in the order of presentation.4
6
0 Atienza v. Villarosa, G.R. No. 161081, May 10, 2005.
60 Atienza v. Villarosa, G.R. No. 161081, May 10, 2005.
SECTION 345. Officials Authorized to Draw Checks in

Settlement of Obligations. - Checks in settlement of
obligations shall be drawn by the local treasurer and
countersigned by the local administrator.
In case of temporary absence or incapacity of the
foregoing officials, these duties shall devolve upon
their immediate assistants.
SECTION 346. Disbursements of Local Funds and
Statement of Accounts. - Disbursements shall be made
in accordance with the ordinance authorizing the
annual or supplemental appropriations without the
prior approval of the sanggunian concerned. Within
thirty (30) days after the close of each month, the local
accountant shall furnish the sanggunian with such
financial statements as may be prescribed by the COA.
In the case of the year-end statement of accounts, the
period shall be sixty (60) days after the thirty-first
(31st) of December.
To construe Sections 306 and 346 as exceptions to Sec. 22 (c)

would render the requirement of prior sanggunian authorization
superfluous, useless and irrelevant. There would be no instance
when such prior authorization would be required, as in contracts
involving the disbursement of appropriated funds. This is not the
effect Congress had in mind when it required, as a condition to the
local chief executive's representation of the local government unit in
business transactions, the prior authorization of the sanggunian
concerned. The requirement was deliberately added as a measure of
check and balance, to temper the authority of the local chief
executive, and in recognition of the fact that the corporate powers of
the local government unit are wielded as much by its chief executive
as by its council. However, the sanggunian authorization may be in
the form of an appropriation ordinance passed for the year, which
specifically covers the project, cost or contract to be entered into by
the local government unit.
A trial declaration that no prior authorization is required
when there is a prior appropriation ordinance enacted does not put
the controversy to rest The question which should have been

answered by the trial court, and which it failed to do was whether,
during the period in question, there did exist ordinances (authorizing
Governor Garcia to enter into the questioned contracts) which
rendered the obtention of another authorization from the
Sangguniang Panlalawigan superfluous. It should also have
determined the character of the questioned contracts, i.e., whether
they were, as Gov. Garcia claims, mere disbursements pursuant to
the ordinances supposedly passed by the sanggunian or, as
petitioners claim, new contracts which obligate the province without
the provincial board's authority. It cannot be overemphasized that
the paramount consideration in the present controversy is the fact
that the Province of Cebu was operating under a re-enacted budget
in 2004, resulting in an altogether different set of rules as directed by
Sec. 323 of Republic Act No. 7160. This Decision does not proscribe
any and all contracts entered into by the local chief executive without
formal sanggunian authorization. In cases where the local
government unit operates under an annual as opposed to a re-
enacted budget, it should be acknowledged that the appropriation
passed by the sanggunian may validly serve as the authorization
required under Sec. 22 (c) because an appropriation is an
authorization made by ordinance, directing the payment of goods
and services from local government funds under specified conditions
or for specific purposes. The appropriation covers the expenditures
which are to be made by the local government unit, such as current
operating expenditures and capital outlays.649
SECTION 347. Rendition of Accounts. - Local

treasurers, accountants and other local accountable
officers shall render their accounts within such time,
in such form, style, and content and under such
regulations as the COA may prescribe.
Provincial, city, and municipal auditors shall certify
the balances arising in the accounts settled by them to
the Chairman of the COA and to the local treasurer,
accountant, and other accountable officers. Copies of
the certification shall be prepared and furnished other
649
Quisumbing v. Garcia, G.R. No. 175527, December 8,2008.
local officers who may be held jointly and severally

liable for any loss or illegal, improper or unauthorized
use or misappropriation of local funds or property.
SECTION 348. Auditorial Visitation. - The books,
accounts, papers, and cash of local treasurer,
accountant, budget officer, or other accountable
officers shall at all times be open for inspection of the
COA or its duly authorized representative.
In case an examination of the accounts of a local
treasurer discloses a shortage in cash which should be
on hand, it shall be the duty of the examining officer
to seize the office and its contents and notify the COA,
the local chief executive concerned, and the local
accountant. Thereupon, the examining officer shall
immediately turn over to the accountable officer next-
in-rank in the local treasury service, unless the said
officer is likewise under investigation, the office of the
treasurer and its contents, and close and render his
accounts on the date of turnover. In case the
accountable officer next in rank is under investigation,
the auditor shall take full possession of the office and
its contents, close and render his accounts on the date
of taking possession, and temporarily continue the
public business of such office until such time that the
local treasurer is restored or a successor has been duly
designated. The local treasurer or accountable officer
found with such shortage shall be automatically
suspended from office.
SECTION 349. Accounting for Revenues. - Estimated
revenues which remain unrealized at the close of the
fiscal year shall not be booked or credited to the
unappropriated surplus or any other account.
SECTION 350. Accounting for Obligations. - All lawful
expenditures and obligations incurred during a fiscal
year shall be taken up in the accounts of that year.
SECTION 351. General Liability for Unlawful
Expenditures. - Expenditures of funds or use of
property in violation of this Title and other laws shall

be a personal liability of the official or employee
This is a reiteration of the rule found in Section 103 of the

Government Auditing Code of the Philippines (Presidential Decree
No. 1445). The Commission is empowered to promulgate regulations
to prevent such expenditures and the power to disallow the same as
provided in Section 33 of the Code:
Ecmssi, oExtraagant Epeitst dofFns eorUseof

Proert; PwertoDisailo sucli Expendifture. The
Comision shall promiulgate such auiting and'
accounting rules andI reglaions as shall prevent
irregular, unnecessay,. excesive, o~rexrvgn
Commission on Audit rules list down several expenditures

that are considered Irregular, Unnecessary, Excessive, Extravagant,
or Unconscionable (IUEEU).
SECTION 352. Posting of the Summary of Income and

Expenditures. - Local treasurers, accountants, budget
officers, and other accountable officers shall, within
thirty (30) days from the end of each fiscal year, post
in at least three (3) publicly accessible and
conspicuous places in the local government unit a
summary of all revenues collected and funds received
including the appropriations and disbursements of
such funds during the preceding fiscal year.
SECTION 353. The Official Fiscal Year. - The official
fiscal year of local government units shall be the
6 0
See for example Commission on Audit Circular No. 2012-003, October 29,2012.
period beginning with the first (1st) day of January

and ending with the thirty-first (31st) day of
December of the same year.
SECTION 354. Administrative Issuances; Budget
Operations Manual. - The Secretary of Budget and
Management jointly with the Chairman of the COA
shall, within one (1) year from the effectivity of this
Code, promulgate a Budget Operations Manual for
local government units to improve and systematize
methods, techniques, and procedures employed in
budget preparation, authorization, execution, and
accountability.
Title VI
Property and Supply Management in the Local
Government Units
procurement, care, utilization, custody, and disposal
of supplies, as defined herein, by local government
units and the other aspects of supply management at
the local levels.
SECTION 356. General Rule in Procurement or Disposal.
- Except as otherwise provided herein, acquisition of
supplies by local government units shall be through
competitive public bidding. Supplies which have
become unserviceable or no longer needed shall be
sold, whenever applicable, at public auction, subject to
applicable rules and regulations.
The Governor must know that he can enter into a negotiated

contract only in case of failure of a public bidding. As it is, there is no
public bidding to speak of that has been conducted. It is his duty to
act in a circumspect manner to protect government funds. To do
otherwise is gross inexcusable negligence, at the very least, especially
so, that petitioner acted on his own initiative and without
+(,121/,1(
Citation:
Tue Apr 17 11:21:39 2018



period beginning with the first (1st) day of January

and ending with the thirty-first (31st) day of
December of the same year.
SECTION 354. Administrative Issuances; Budget
Operations Manual. - The Secretary of Budget and
Management jointly with the Chairman of the COA
shall, within one (1) year from the effectivity of this
Code, promulgate a Budget Operations Manual for
local government units to improve and systematize
methods, techniques, and procedures employed in
budget preparation, authorization, execution, and
accountability.
Title VI
Property and Supply Management in the Local
Government Units
procurement, care, utilization, custody, and disposal
of supplies, as defined herein, by local government
units and the other aspects of supply management at
the local levels.
SECTION 356. General Rule in Procurement or Disposal.
- Except as otherwise provided herein, acquisition of
supplies by local government units shall be through
competitive public bidding. Supplies which have
become unserviceable or no longer needed shall be
sold, whenever applicable, at public auction, subject to
applicable rules and regulations.
The Governor must know that he can enter into a negotiated

contract only in case of failure of a public bidding. As it is, there is no
public bidding to speak of that has been conducted. It is his duty to
act in a circumspect manner to protect government funds. To do
otherwise is gross inexcusable negligence, at the very least, especially
so, that petitioner acted on his own initiative and without
authorization from the Provincial School Board. This can be proved

by his failure to present even a single witness from the members of
the Board whom he consulted as he claimed. 651

(a) "Lowest Complying and Responsible Bid" refers to
the proposal of one who offers the lowest price, meets
all the technical specifications and requirements of the
supplies desired and, as a dealer in the line of supplies
involved, maintains a regular establishment, and has
complied consistently with previous commitments;
(b) "Suitable Substitute" refers to that kind of article
which would serve substantially the same purpose or
produce substantially the same results as the brand,
type, or make of article originally desired or
requisitioned;
(c) "Supplies" includes everything, except real
property, which may be needed in the transaction of
public business or in the pursuit of any undertaking,
project, or activity, whether in the nature of
equipment, furniture, stationary materials for
construction or personal property of any sort,
including non-personal or contractual services such as
the repair and maintenance of equipment and
furniture, as well as trucking, hauling, janitorial,
security, and related services; and
(d) "Terms and Conditions" refer to other
requirements not affecting the technical specifications
and requirements of the required supplies desired
such as bonding, terms of delivery and payment, and
related preferences.
SECTION 358. Requirement of Requisition. - Any order
for supplies shall be filled by the provincial or city
general services officer or the municipal or barangay
65
1Plameras v. People, G.R. No. 187268, September 4,2013.
treasurer concerned, as the case may be, for any office

or department of a local government unit only upon
written requisition as hereinafter provided.
SECTION 359. Officers Having Authority to Draw
Requisitions. - Requisitions shall be prepared by the
head of office or department needing the supplies,
who shall certify as to their necessity for official use
and specify the project or activity where the supplies
are to be used.
SECTION 360. Certification by the Local Budget Officer,
Accountant, and Treasurer. - Every requisition must be
accompanied by a certificate signed by the local
budget officer, the local accountant, and the local
treasurer showing that an appropriation therefor
exists, the estimated amount of such expenditure has
been obligated, and the funds are available for the
purpose, respectively.
SECTION 361. Approval of Requisitions. - Approval of
the requisition by the head of office or department
concerned who has administrative control of the
appropriation against which the proposed
expenditure is chargeable is deemed sufficient, except
in case of requisition for supplies to be carried in stock
which shall be approved by the local chief executive
concerned: Provided, That such supplies are listed or
included in the annual procurement plan and the
maximum quantity thereof does not exceed the
estimated consumption corresponding to a
programmed three-month period: Provided, further,
That nothing herein contained shall be held as
authorizing the purchase of furniture and equipment
for stock purposes.
SECTION 362. Callfor Bids. - When procurement is to
be made by local government units, the provincial or
city general services officer or the municipal or
barangay treasurer shall call bids for open public
competition. The call for bids shall show the complete
specifications and technical descriptions of the

required supplies and shall embody all terms and
conditions of participation and award, terms of
delivery and payment, and all other covenants
affecting the transaction. In all calls for bids, the right
to waive any defect in the tender as well as the right to
accept the bid most advantageous to the government
shall be reserved. In no case, however, shall failure to
meet the specifications or technical requirements of
the supplies desired be waived.
SECTION 363. Publication of Call for Bids. - The call
for bids shall be given the widest publicity possible,
sending, by mail or otherwise, any known prospective
participant in the locality, of copies of the call and by
posting copies of the same in at least three (3) publicly
accessible and conspicuous places in the provincial
capitol or city, municipal, or barangay hall, as the case
may be.
The notice of the bidding may likewise be published
in a newspaper of general circulation in the territorial
jurisdiction of the local government unit concerned
when the provincial or city general services officer or
the municipal or barangay treasurer, as the case may
be, deems it necessary in order to obtain the lowest
responsible and complying bid.
The opening of bids shall only be made in the
presence of the provincial or city auditor or his duly
authorized representative who shall initial and secure
copies of the bids and certify the abstract of the
bidding.
SECTION 364. The Committee on Awards. - There shall
be in every province, city or municipality a Committee
on Awards to decide the winning bids and questions
of awards on procurement and disposal of property.
The Committee on Awards shall be composed of the
local chief executive as chairman, the local treasurer,
the local accountant, the local budget officer, the local
general services officer, and the head of office or

department for whose use the supplies are being
procured, as members. In case a head of office or
department would sit in a dual capacity, a member of
the sanggunian elected from among its members shall
sit as a member. The Committee on Awards at the
barangay level shall be the sangguniang barangay. No
national official shall sit as a member of the
Committee on Awards.
The results of the bidding shall be made public by
conspicuously posting the same in the provincial
capitol or city, municipal, or barangay hall.
The Local Government Code requires that where the head of

the office or department requesting the requisition sits in a dual
capacity, the participation of a Sanggunian member (elected from
among the members of the Sanggunian) is necessary. Petitioner
clearly disregarded this requirement because, in all the purchases
made, he signed in a dual capacity -as chairman and member
(representing the head of office for whose use the supplies were
being procured). That is strictly prohibited. None of the regular
members of the Committee on Awards may sit in a dual capacity.
Where any of the regular members is the requisitioning party, a
special member from the Sanggunian is required. The prohibition is
meant to check or prevent conflict of interest as well as to protect the
use of the procurement process and the public funds for irregular or
unlawful purchases. 652
SECTION 365. Rule on Awards. - Awards in the

procurement of supplies shall be given to the lowest
complying and responsible bid which meets all the
terms and conditions of the contract or undertaking.
SECTION 366. Procurement Without Public Bidding. -
Procurement of supplies may be made without the
65 2
Sison v. People, G.R. Nos. 170339 & 170398, March 9,2010.
benefit of public bidding under any of the following

modes:
(a) Personal canvass of responsible merchants;
(b) Emergency purchase;
(c) Negotiated purchase;
(d) Direct purchase from manufacturers or exclusive
distributors; and
(e) Purchase from other government entities.
SECTION 367. Procurement through Personal Canvass.
- Upon approval by the Committee on Awards,
procurement of supplies may be effected after
personal canvass of at least three (3) responsible
suppliers in the locality by a committee of three (3)
composed of the local general services officer or the
municipal or barangay treasurer, as the case may be,
the local accountant, and the head of office or
department for whose use the supplies are being
procured. The award shall be decided by the
Committee on Awards.
Purchases under this section shall not exceed the
amounts specified hereunder for all items in any one
(1) month for each local government unit
Provinces and Cities and Municipalities within the
MetropolitanManilaArea:
First and Second Class - One hundred fifty thousand
pesos (P150,000.00)
Third and Fourth Class - One hundred thousand
pesos (P100,000.00)
Fifth and Sixth Class Fifty thousand pesos
(P50,000.00)
Municipalities:
First Class - Sixty thousand pesos (P60,000.00)
Second and Third Class - Forty thousand pesos
(P40,000.00)
Fourth Class and Below - Twenty thousand pesos

(P20,000.00)
SECTION 368. Emergency Purchase. - In cases of
emergency where the need for the supplies is
exceptionally urgent or absolutely indispensable and
only to prevent imminent danger to, or loss of, life or
property, local government units may, through the
local chief executive concerned, make emergency
purchases or place repair orders, regardless of
amount, without public bidding. Delivery of purchase
orders or utilization of repair orders pursuant to this
section shall be made within ten (10) days after
placement of the same. Immediately after the
emergency purchase or repair order is made, the chief
of office or department making the emergency
purchase or repair order shall draw a regular
requisition to cover the same which shall contain the
following:
(a) A complete description of the
supplies acquired or the work done or
to be performed;
(b) By whom furnished or executed;
(c) Date of placing the order and the
date and time of delivery or execution;
(d) The unit price and the total contract
price;
(e) A brief and concise explanation of
the circumstances why procurement
was of such urgency that the same
could not be done through the regular
course without involving danger to, or
loss of, life or property;
(f) A certification of the provincial or
city general services or the municipal
or barangay treasurer, as the case may
be, to the effect that the price paid or
contracted for was the lowest at the

time of procurement; and
(g) A certification of the local budget
officer as to the existence of
appropriations for the purpose, the
local accountant as to the obligation of
the amount involved, and the local
treasurer as to the availability of funds.
The goods or services procured under this section
must be utilized or availed of within fifteen (15) days
from the date of delivery or availability.
Without prejudice to criminal prosecution under
applicable laws, the local chief executive, the head of
department, or the chief of office making the
procurement shall be administratively liable for any
violation of this section and shall be a ground for
suspension or dismissal from service.
SECTION 369. Negotiated Purchase. -
(a) In cases where public biddings have
failed for two (2) consecutive times and
no suppliers have qualified to
participate or win in the biddings, local
government units may, through the
local chief executive concerned,
undertake the procurement of supplies
by negotiated purchase, regardless of
amount, without public bidding:
Provided, however, That the contract
covering the negotiated purchase shall
be approved by the sanggunian
concerned. Delivery of purchase orders
or utilization of repair orders pursuant
to this section shall be made within
seven (7) days after placement of the
same. Immediately after the to cover
the same which shall contain the
following:
(1) A complete negotiated purchase or

repair order is made, the local chief
executive concerned shall draw a
regular requisition description of the
supplies acquired or the work done or
to be performed;
(2) By whom furnished or executed;
(3) Date of placing the order and the
date and time of delivery or execution;
(4) The unit price and the total contract
price;
(5) A certification of the provincial or
city general services of the municipal
or barangay treasurer, as the case may
be, to the effect that the price paid or
contracted for was the lowest at the
time of procurement;
(6) A certification to the effect that the
price paid or contracted for was the
lowest at the time of procurement; and
(7) A certification of the local budget
officer as to the existence of
appropriations for the purpose, the
local accountant as to the obligation of
the amount involved, and the local
treasurer as to the availability of funds.
(b) In case of repeat orders for regular supplies,
procurement may be made by negotiated purchase:
Provided, That the repeat order is made within three
(3) months from the last procurement of the same
item: Provided, further, That the same terms and
conditions of sale are obtained for the said repeat
order.
A local chief executive could only resort to a negotiated

purchase under Section 366 and COA Resolution Nos. 95-244 and 95-
244-A, if the following two requisites are present:
1. public biddings have failed for at least two consecutive
times and;
2. no suppliers have qualified to participate or win in the
biddings.
As the local chief executive, petitioner is not only expected to
know the proper procedure in the procurement of supplies, she is
also duty bound to follow the same and her failure to discharge this
duty constitutes gross and inexcusable negligence.w3
SECTION 370. Procurement from Duly Licensed

Manufacturer. - Procurement may be made directly
from duly licensed manufacturers in cases of supplies
of Philippine manufacture or origin and in case there
are two (2) or more manufacturers of the required
supplies, canvass of the known manufacturers shall be
conducted to obtain the lowest price for the quality of
the said supplies.
SECTION 371. Procurement from Exclusive Philippine
Agents or Distributors. - Procurement may, in the case
of supplies of foreign origin, preferably be made
directly from the exclusive or reputable Philippine
distributors or agents, subject to the following
conditions:
(a) That the Philippine distributor has
no subdealers selling at lower prices;
and
(b) That no suitable substitutes of
substantially the same quality are
available at lower prices.
SECTION 372. Procurement from Government Entities.
- Procurement may be made directly from the
6
9 Ong v. People, G.R. No. 176546, September 26, 2009.
government entities producing the required supplies,

including units or agencies of foreign governments
with which the Philippines maintains diplomatic
relations. In the latter case, prior authority from the
Office of the President shall be required.
SECTION 373. Annual ProcurementProgram. - (a) On
or before the fifteenth (15th) day of July each year, the
local chief executive shall prepare an annual
procurement program for the ensuing fiscal year
which shall contain an itemized list of the estimated
quantity of supplies needed for such year, a complete
description thereof as to kind, quality, estimated cost,
and balance on hand: Provided, however, That the total
estimated cost of the approved annual procurement
program shall not exceed the total appropriations
authorized for the acquisition of supplies. The local
government units may augment the supplies and
equipment provided by the Supreme Court to the
lower courts located in their respective jurisdictions.
(b) Except in emergency cases or where urgent
indispensable needs could not have been reasonably
anticipated, no purchase of supplies shall be made
unless included in, or covered by, the approved
procurement program.
(c) The conversion of excess cash into supplies stock is
hereby prohibited except to the extent of the kind and
quantity specified in the approved annual
procurement plan.
A violation of this section shall be a ground for
suspension or dismissal of any official or employee
SECTION 374. Establishment of an Archival System. -
Every local government unit shall provide for the
establishment of an archival system to ensure the
safety and protection of all government property,
public documents or records such as records of births,
marriages, property inventory, land assessments, land
ownership, tax payments, tax accounts, and business

permits, and such other records or documents of
public interest in the various departments and offices
of the provincial, city, or municipal government
concerned.6 4
SECTION 375. Primaryand SecondaryAccountabilityfor
Government Property. - (a) Each head of department
or office of a province, city, municipality or barangay
shall be primarily accountable for all government
property assigned or issued to his department or
office. The person or persons entrusted with the
possession or custody of government property under
the accountability of any head of department or office
shall be immediately accountable to such officer.
(b) The head of a department or office primarily
accountable for government property may require any
person in possession of the property or having
custody and control thereof under him to keep such
records and make reports as may be necessary for his
own information and protection.
(c) Buildings and other physical structures shall be
under the accountability and responsibility of the
provincial or city general services officer or the
municipal mayor or punong barangay, as the case
may be.
(d) Every officer primarily accountable for
government property shall keep a complete record of
all properties under his charge and render his
accounts therefor semiannually to the provincial or
city general services officer or the municipal mayor or
punong barangay, as the case may be.
SECTION 376. Responsibilityfor Proper Use and Care of
Government Property. - The person in actual physical
possession of government property or entrusted with
6% See DEvELOPmEmIT ACADEMY OF Tm PHILINES, PRIM ON ESTABLISUNG A RECORDS

AND ARCHIVES MANAGEMENT PROGRAM FOR LOCAL GOVERNMENT (2004) available at
http://Igrc.dilg10.org/v2/KP/Gov/Records/ RAMP.pdf.
its custody and control shall be responsible for its

proper use and care and shall exercise due diligence in
the utilization and safekeeping thereof.
SECTION 377. Measure of Liability of Persons
Accountable for Government Property. - (a) The person
immediately accountable for government property
shall be liable for its money value in case of the illegal,
improper or unauthorized use or misapplication
thereof, by himself or any other person for whose acts
he may be responsible, and he shall be liable for all
loss, damage, or deterioration occasioned by
negligence in the keeping or use of such property
unless it is proved that he has exercised due diligence
and care in the utilization and safekeeping thereof.
(b) Unless he registers his objection in writing, an
accountable person shall not be relieved from liability
by reason of his having acted under the direction of a
superior officer in using property with which he is
chargeable; but the officer directing any illegal,
unauthorized or improper use of property shall first
be required to answer therefor.
(c) In cases of loss, damage, or deterioration of
government property arising from, or attributable to,
negligence in security, the head of the security agency
shall be held liable therefor.
SECTION 378. Credit for Loss Occurring in Transit or
Due to Casualty. - When a loss of government
property occurs while the same is in transit or is
caused by fire, theft, force majeure, or other casualty,
the officer accountable therefor or having custody
thereof shall immediately notify the provincial or city
auditor concerned within thirty (30) days from the
date the loss occurred or for such longer period as the
provincial, city or municipal auditor, as the case may
be, may in the particular case allow, and he shall
present his application for relief, with the available
evidence in support thereof. An officer who fails to
comply with this requirement shall not be relieved of

liability or allowed credit for any such loss in the
settlement of his accounts.
A provincial, city or municipal auditor shall not allow
credit for these losses unless so expressly authorized
by the Chairman of the Commission on Audit, to be
exercised only if the loss is not in excess of Fifty
thousand pesos (P50,000.00). In any case when the
allowance of credit is not within the competence of the
provincial, city or municipal auditor, the application
and evidence, with the recommendation of the auditor
concerned, shall be forwarded to the Chairman of the
Commission on Audit for his appropriate action.
SECTION 379. Property Disposal. - When property of
any local government unit has become unserviceable
for any cause or is no longer needed, it shall, upon
application of the officer accountable therefor, be
inspected and appraised by the provincial, city or
municipal auditor, as the case may be, or his duly
authorized representative or that of the Commission
on Audit and, if found valueless or unusable, shall be
destroyed in the presence of the inspecting officer.
If found valuable, the same shall be sold at public
auction to the highest bidder under the supervision of
the Committee on Awards and in the presence of the
provincial, city or municipal auditor or his duly
authorized representative. Notice of the public auction
shall be posted in at least three (3) publicly accessible
and conspicuous places, and if the acquisition cost
exceeds One hundred thousand pesos (P100,000.00) in
the case of provinces and cities, and Fifty thousand
pesos (P50,000.00) in the case of municipalities, notice
of auction shall be published at least two (2) times
within a reasonable period in a newspaper of general
circulation in the locality.
SECTION 380. Negotiated Sale of Property. - Property
no longer needed may also be disposed of at a private
sale at such price as may be determined by the
Committee on Awards, subject to the approval of the

Commission on Audit or its duly authorized
representative when the acquisition or transfer cost of
the property exceeds Fifty thousand pesos (P50,000.00)
in the case of provinces and cities, and Twenty-five
thousand pesos (P25,000.00) in the case of
municipalities and barangays.
In case of real property, the disposal shall be subject to
the approval of the Commission on Audit regardless
of the value or cost involved.
SECTION 381. Transfer Without Cost. - Property
which has become unserviceable or is no longer
needed may be transferred without cost to another
office, agency, subdivision or instrumentality of the
national government or another local government unit
at an appraised valuation determined by the local
Committee on Awards. Such transfer shall be subject
to the approval of the sanggunian concerned making
the transfer and by the head of the office, agency,
subdivision, instrumentality or local government unit
receiving the property.
A transfer of real property by a local government unit to an

instrumentality of government without first securing an appraised
valuation from the local committee on awards does not appear to be
one of the void contracts enumerated in the afore-quoted Article 1409
of the Civil Code. Neither does Section 381 of the Local Government
Code expressly prohibit or declare void such transfers if an
appraised valuation from the local committee on awards is not first
obtained. There is no express provision in the law, which requires
that the said valuation is a condition sine qua non for the validity of a
donation.0
65
Government Service Insurance System v. The Province of Tarlac, G.R. No. 157860,
December 1, 2003.
SECTION 382. Tax Exemption Privileges of Local

Government Units. - Local government units shall be
exempt from the payment of duties and taxes for the
importation of heavy equipment or machineries which
shall be used for the construction, improvement,
repair, and maintenance of roads, bridges and other
infrastructure projects, as well as garbage trucks, fire
trucks, and other similar equipment: Provided,however,
That such equipment or machineries shall not be
disposed of, either by public auction or negotiated sale
as hereinabove provided, within five (5) years from
the importation thereof. In case the machinery or
equipment is sold within the five-year period, the
purchasers or recipients shall be considered the
importers thereof, and shall be liable for duties and
taxes computed on the book value of such
importation.
SECTION 383. Implementing Rules and Regulations. -
The Chairman of the Commission on Audit shall
promulgate the rules and regulations necessary to
effectively implement the provisions of this Title,
including requirements as to testing, inspection, and
standardization of supply and property.
+(,121/,1(
Citation:
Tue Apr 17 11:21:50 2018



BOOK III
LOCAL GOVERNMENT UNITS
Title I
The Barangay
Chapter I
Role and Creation of the Barangay
SECTION 384. Role of the Barangay. - As the basic
political unit, the barangay serves as the primary
planning and implementing unit of government
policies, plans, programs, projects, and activities in the
community, and as a forum wherein the collective
views of the people may be expressed, crystallized
and considered, and where disputes may be amicably
settled.
One study of the quality of services delivered by barangays

sadly concluded that despite the decentralization of government
powers to local government units, "...barangays mostly in the rural
areas are still stuck in the quagmire of incompetence and inefficiency,
unable to deliver better basic services, if at all, and complacent about
the status quo because of policy, institutional, and financial
constraints undergirded by political, economic, social, and cultural
factors." 6
SECTION 385. Manner of Creation. - A barangay may

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
&%To see how far barangays have to go in delivering basic services see Allan S.
Layug, Do Barangays Really Matter in Local Services Delivery?: Some Issues and Policy
Options, 36 PImPPINE. JOURNAL OF DEvEm ENT STUDIES 127-154 (2009).
Local Government Units 597
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.
barangay may be 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
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.
Chapter 11
Barangay Officials and Offices
SECTION 387. Chief Officials and Offices. - (a) There
shall be in each barangay a punong barangay, seven
(7) sangguniang barangay members, the sangguniang
kabataan chairman, a barangay secretary, and a
barangay treasurer.
(b) There shall also be in every barangay a lupong
tagapamayapa. The sangguniang barangay may form
community brigades and create such other positions
or offices as may be deemed necessary to carry out the
purposes of the barangay government in accordance
with the needs of public service, subject to the
budgetary limitations on personal services prescribed
under Title Five, Book II of this Code.
SECTION 388. Persons in Authority. - For purposes of
the Revised Penal Code, the punong barangay,
sangguniang barangay members, and members of the
lupong tagapamayapa in each barangay shall be
deemed as persons in authority in their jurisdictions,
while other barangay officials and members who may
be designated by law or ordinance and charged with
the maintenance of public order, protection and
security of life and property, or the maintenance of a
desirable and balanced environment, and any
barangay member who comes to the aid of persons in
authority, shall be deemed agents of persons in
authority.
This law expands the definition of a person in authority

under the Revised Penal Code, wherein among the barangay
officials, only the barangay captain or chairman, now called Punong
Barangay, is expressly considered a person in authority. Thus, in

addition to the Punong Barangay, the members of the Sangguniang
Barangay, or Kagawads, and members of the Lupong Tagapayapa
are now considered not merely as agents of, but as persons, in
authority.6 7 The voluntary surrender of a defendant to a Kagawad
can be appreciated as a mitigating circumstance.% If the idea of
surrendering came from the barangay captain and not from the
appellant, such does not detract from the voluntariness of the latter's
surrender. What is important is that the appellant voluntarily went
with the barangay captain to the Philippine National Police Station
before any warrant of arrest was issued against him. 65 9
An agent of a person in authority is "any person who, by
direct provision of law or by election or by appointment by
competent authority, is charged with the maintenance of public order
and the protection and security of life and property, such as barrio
councilman, barrio policeman and barangay leader, and any person
who comes to the aid of persons in authority."6
The barangay tanod is an agent of a person in authorityw1 and
he or she can be treated as an intermediary in a voluntary surrender
so as to justify appreciating this mitigating circumstance in favor of
accused. 662
In one case, the Supreme Court held that the police officers, as
well as the barangay tanods, were acting as agents of a person in
authority during the conduct of the search. Thus, the search
conducted was unreasonable and the confiscated items are
inadmissible in evidence.663
The mitigating circumstance of voluntary surrender requires
that: (1) the offender has not been actually arrested; (2) the offender
surrendered himself to a person in authority; and (3) the surrender
was voluntary. It is sufficient that it be spontaneous and made in a
manner clearly indicating the intent of the accused to surrender
65
People v. Sion, G.R. No. 109617, August 11, 1997.
6 People v. Vicente, G.R. No. 137296, June 26, 2003.
659 People v. Timblor, G.R. No. 118939, January 27,1998.
6w0People v. Recto, G.R. No. 129069, October 17, 2001.
661 People v. Recto, G.R. No. 129069, October 17,2001.
662 People v. Caber, Sr., G.R. No. 129252, November 28,2000.
3Del Castillo v. People of the Philippines, G.R. No. 185128, January 30,2012.
unconditionally, either because he acknowledges his guilt or he

wishes to save the authorities the trouble and expense which will
necessarily be incurred in searching for and capturing him. 6 4
Surrender can be made to a person in authority or his agent. 5 It
cannot be appreciated in the offender's favor if the alleged surrender
to the barangay chairman was "solely motivated by self-preservation
from what he feared was an imminent retaliation from the immediate
relatives of [his victim]." 6
There is no complex crime of "robbery with homicide and
assault upon a person in authority." If the victim is killed on the
occasion or by reason of a robbery, the offense becomes a special
complex crime of robbery with homicide defined and penalized
under Article 294 (1) of the Revised Penal Code. Even if the victim
was a barangay captain and, therefore, a person in authority, the
crime committed would still be robbery with homicide. As long as
robbery is the main purpose and objective of the criminals and the
killing merely results by reason or on the occasion of the robbery, the
indictable offense is robbery with homicide. 667
As persons in authority or agents of persons in authority,
these official may be held liable under Sections 3, 4, 5 and 13 of the
"Anti-Torture Act of 2009."6M
Chapter Ill
The Punong Barangay
SECTION 389. Chief Executive: Powers, Duties, and
Functions. - (a) The punong barangay, as the chief
executive of the barangay government, shall exercise
64 People v. Alo, G.R. No. 125533, December 27,2000. The mitigating circumstance
of voluntary surrender should be appreciated even if the accused did not surrender
to the policemen on the same night that the incident occurred, but he surrender to
the barangay captain early the next day. People v. Cabical, G.R. No. 148519, May 29,
2003.
"5 People v. Panela, G.R. No. 124475, November 29,2000.
666People v. De la Cruz, G.R. No. 140513, November 18, 2003.
67People v. Otayde, G.R No. 140227, November 28,2003.
"5 Republic Act No. 9745 (2009).
such powers and perform such duties and functions,

as provided by this Code and other laws.
(b) For efficient, effective and economical governance,
the purpose' of which is the general welfare of the
barangay and its inhabitants pursuant to Section 16 of
this Code, the punong barangay shall:
(1) Enforce all laws and ordinances
which are applicable within the
barangay;
(2) Negotiate, enter into, and sign
contracts for and in behalf of the
barangay, upon authorization of the
sangguniang barangay;
(3)' Maintain public order in the
barangay and, in pursuance thereof,
assist the city or municipal mayor and
the sanggunian members in the
performance of their duties and
functions;
The Barangay Chairman is tasked to enforce all laws and

ordinances within the barangay, in the same manner that the police
are bound to maintain peace and order within the community. In
Alejandro v. Office of the Ombudsman Fact-Finding and Intelligence
Bureau, 669 the Supreme Court explained that while the Barangay
Chairman has general charge of the affairs in the barangay, the
maintenance of peace and order is largely a police matter with police
authority being predominant, especially when the police have begun
to act on an enforcement matter. The maintenance of peace and order
in the community is a general function undertaken by the punong
barangay. It is a task expressly conferred to the punong barangay
under Section 389 (b) (3) of the Code. The maintenance of peace and
order carries both general and specific functions on the part of the
police. Section 24 of Republic Act No. 6975 ("the Department of the
Interior and Local Government Act of 1990"), as amended,
6 G.R. No. 173121, April 3, 2013.

enumerates the powers and functions of the police. In addition to the

maintenance of peace and order, the police has the authority to
"[i]nvestigate and prevent crimes, effect the arrest of criminal
offenders, bring offenders to justice and assist in their prosecution[,]"
and are charged with the enforcement of "laws and ordinances
relative to the protection of lives and properties." Examined side by
side, police authority is superior to the punong barangay's authority
in a situation where the maintenance of peace and order has
metamorphosed into crime prevention and the arrest of criminal
offenders. 67o
The peace and order function of the punong barangay must
also be related to his function of assisting local executive officials (i.e.,
the city mayor). Under Section 389 (b) of the Local Government
Code, local executive officials have the power to employ and deploy
police for the maintenance of peace and order, the prevention of
crimes and the arrest of criminal offenders. In the maintenance of
peace and order, the punong barangay should respect the PNP-
CIDG's authority even if he is not in the direct position to give aid.
His interference with a legitimate police operation and is liable for
misconduct in the performance of his duties. 67'
(4) Call and preside over the sessions of

the sangguniang barangay and the
barangay assembly, and vote only 'to
break a tie;
(5) Upon approval by a majority of all
the members of the sangguniang
barangay, appoint or replace the
barangay treasurer, the barangay
secretary, and other appointive
barangay officials;
No.
6
173121, April 3,2013.
n Alejandro v. Office of the Ombudsman Fact-Finding and Intelligence Bureau, G.R.
No. 173121, April 3,2013.
The Code explicitly vests on the punong barangay, upon

approval by a majority of all the members of the sangguniang
barangay, the power to appoint or replace the barangay treasurer, the
barangay secretary, and other appointive barangay officials. Verily,
the power of appointment is to be exercised conjointly by the punong
barangay and the majority of all the members of the sangguniang
barangay. Without such conjoint action, neither an appointment nor
a replacement can be effectual. 672
(6) Organize and lead an emergency

group whenever the same may be
necessary for the maintenance of peace
and order or on occasions of
emergency or calamity within the
barangay;
(7) In coordination with the barangay
development council, prepare the
annual executive and supplemental
budgets of the barangay;
(8) Approve vouchers relating to the
disbursement of barangay funds;
(9) Enforce laws and regulations
relating to pollution control and
protection of the environment;
(10) Administer the operation of the
katarungang pambarangay in
accordance with the provisions of this
Code;
(11) Exercise general supervision over
the activities of the sangguniang
kabataan;
(12) Ensure the delivery of basic
services as mandated under Section 17
of this Code;
672
Alquizola v. Ocol, G.R. No. 132413, August 27,1999.
A punong barangay may have acted in the performance of his

duty to "ensure delivery of basic services" when he regulated access
to a communal water tank. Nevertheless, he exceeded the bounds of
his office when he "successively chased the Darongs with a bladed
weapon, threatening harm on their persons, for violating his order."
There are many ways he could have lawfully discharged his duties
that would have spared him from criminal liability. His failure to
select these options put his actions outside of the ambit of "criminally
immune official conduct" No amount of concern for the delivery of
services justifies use by local elective officials of violence or threats of
violence.673
(13) Conduct an annual palarong

barangay which shall feature
traditional sports and disciplines
included in national and international
games, in coordination with the
Department of Education, Culture and
Sports;
(14) Promote the general welfare of the
barangay; and
(15) Exercise such other powers and
perform such other duties and
functions as may be prescribed by law
or ordinance.
The national government prescribes additional duties to

barangay officials. Barangay officials, for example, are responsible for
the maintenance of trees planted under "Arbor Day Act of 2012."
Under the law, all provinces, cities and municipalities with their
component barangays are required to declare an Arbor Day or Tree
Planting Day by proclamation of their respective local chief
executive, through an ordinance passed by the local sanggunian, at a
67
3 Pera v. People, G.R. No. 181626, May 30, 2011.
fixed date every calendar year as shall be deemed conducive to the

proper time and season for planting trees in the respective
localities. 674
Under Section 30 of the "Anti-Violence Against Women and
their Children Act of 2004," barangay officials and law enforcers
shall have the following duties:
(a) respond immediately to a call for help or request for
assistance or protection of the victim by entering the dwelling
if necessary whether or not a protection order has been issued
and ensure the safety of the victim/s;
(b) confiscate any deadly weapon in the possession of the
perpetrator or within plain view;
(c) transport or escort the victim/s to a safe place of their choice
or to a clinic or hospital;
(d;) assist the victim in removing personal belongings from the
house;
(e) assist the barangay officials and other government officers
and employees who respond to a call for help;
(f) ensure the enforcement of the Protection Orders issued by the
PunongBarangay or by the courts;
(g) arrest the suspected perpetrator even without a warrant
when any of the acts of violence defined by this Act is
occurring, or when he/she has personal knowledge that any
act of abuse has just been committed, and there is imminent
danger to the life or limb of the victim as defined in this Act;
and
(h) immediately report the call for assessment or assistance of the
DSWD, Social Welfare Department of LGUs or accredited
non-government organizations (NGOs).
Any barangay official or law enforcer who fails to report the

incident shall be liable for a fine not exceeding 10,000 pesos or
whenever applicable criminal, civil or administrative liability.675
67 See Republic Act No. 10176 (2012).

(c) In the performance of his peace and order

functions, the punong barangay shall be entitled to
possess and carry the necessary firearm within his
territorial jurisdiction, subject to appropriate rules and
regulations.
A barangay captain is the head of a local government unit.

The Code gives her, by virtue of her position, the authority to carry
the necessary firearm within his territorial jurisdiction. 676 The
authority of punong barangays to possess the necessary firearm
within their territorial jurisdiction is necessary to enforce their duty
to maintain peace and order within the barangays. Like police
officers, punong barangays have a duty as a peace officer that must
be discharged 24 hours a day. As such, they may be called by his
constituents, at any time, to assist in maintaining the peace and
security of his barangay. As long as a barangay captain is within his
barangay, he cannot be separated from his duty to maintain peace
and order.677
Anti-Violence againstWomen and their ChildrenAct of 2004

Republic Act No. 9262, the Anti-Violence Against Women
and their Children Act of 2004, provides for protection orders from
the barangay and the courts to prevent the commission of further
acts of violence. It outlines the duties and responsibilities of barangay
officials and other local government officials in responding to
complaints or requests for assistance. 678 Section 14 of the law
provides:
'SEC. 14,Barangay Protection 'Orders (MPs), :Wo

Issue and How.. B angay rot gOen
675 Republic Act No. 9262 (2004).

676 Artilero v. Casimiro, G.R. No. 190569, April 25, 2012.
677
Artilero v. Casimiro, G.R. No. 190569, April 25,2012.
67
Garcia v. Drilon, G.R. No. 179264, June 25, 2013.
The parties may be accompanied by a non-lawyer advocate in

any proceeding before the Punong Barangay.
The BPO issued by the Punong Barangay or, in his
unavailability, by any available Barangay Kagawad, merely orders
the perpetrator to desist from (a) causing physical harm to the
woman or her child; and (2) threatening to cause the woman or her
child physical harm. This function is purely executive in nature
pursuant to his or her duty under the Local Government Code to
"enforce all laws and ordinances," and to "maintain public order in
the barangay." Citing jurisprudence, the Court explained that the
mere fact that an officer is required by law to inquire into the
existence of certain facts and to apply the law thereto in order to
determine what his official conduct shall be and the fact that these
acts may affect private rights do not constitute an exercise of judicial
powers." 67
679Garcia v. Drilon, G.R. No. 179264, June 25, 2013. See also Tua v. Mangroban& G.R.
No. 170701, January 22,2014.
Chapter IV
The Sangguniang Barangay
SECTION 390. Composition. - The sangguniang
barangay, the legislative body of the barangay, shall
be composed of the punong barangay as presiding
officer, and the seven (7) regular sangguniang
barangay members elected at large and sangguniang
kabataan chairman, as members.
SECTION 391. Powers, Duties, and Functions. - (a) The

sangguniang barangay, as the legislative body of the
barangay, shall:
(1) Enact ordinances as may be
necessary to discharge the
responsibilities conferred upon it by
law or ordinance and to promote the
general welfare of the inhabitants
therein;
(2) Enact tax and revenue ordinances,
subject to the limitations imposed in
this Code;
(3) Enact annual and supplemental
budgets in accordance with the
provisions of this Code;
(4) Provide for the construction and
maintenance of barangay facilities and
other public works projects chargeable
to. the general fund of the barangay or
such other funds actually available for
the purpose;
(5) Submit to the sangguniang
such suggestions or recommendations
as it may see fit for the improvement of

the barangay or for the welfare of the
inhabitants thereof;
(6) Assist in the establishment,
organization, and promotion of
cooperative enterprises that will
improve the economic condition and
well-being of the residents;
(7) Regulate the use of multi-purpose
halls, multi-purpose pavements, grain
or copra dryers, patios and other post-
harvest facilities, barangay
waterworks, barangay markets,
parking areas or other similar facilities
constructed with government funds
within the jurisdiction of the barangay
and charge reasonable fees for the use
thereof;
(8) Solicit or accept monies, materials
and voluntary labor for specific public
works and cooperative enterprises of
the barangay from residents, land
owners, producers and merchants in
the barangay; monies from grants-in-
aid, subsidies, contributions, and
revenues made available to the
barangays from national, provincial,
city or municipal funds; and monies
from other private agencies and
individuals: Provided, however, That
monies or properties donated by
private agencies and individuals for
specific purposes shall accrue to the
barangay as trust fund;
(9) Solicit or accept, in any or all the
foregoing public works and
cooperative enterprises, such
cooperation as is made available by
national, provincial, city, or municipal

agencies established by law to render
financial, technical, and advisory
assistance to barangays and to
barangay residents: Provided, however,
That in soliciting or accepting such
cooperation, the sangguniang barangay
need not pledge any sum of money for
expenditure in excess of amounts
currently in the barangay treasury or
encumbered for other purposes;
(10) Provide compensation, reasonable
allowances or per diems as well as travel
expenses for sangguniang barangay
members and other barangay officials,
subject to the budgetary limitations
prescribed under Title Five, Book II of
this Code: Provided, however, That no
increase in the compensation or
honoraria of the sangguniang barangay
members shall take effect until after the
expiration of the full term of all
members of the sangguniang barangay
approving such increase;
(11) Hold fund-raising activities for
barangay projects without the need of
securing permits from any national or
local office or agency. The proceeds
from such activities shall be tax-exempt
and shall accrue to the general fund of
the barangay: Provided, That in the
appropriation thereof, the specific
purpose for which such fund-raising
activity has been held shall be first
satisfied: Provided, further, That no
fund-raising activities shall be held
within a period of sixty (60) days
immediately preceding and after a
national or local election, recall,

referendum, or plebiscite: Provided,
finally, That said fund-raising activities
shall comply with national policy
standards and regulations on morals,
health, and safety of the persons
participating therein. The sangguniang
barangay, through the punong
barangay, shall render a public
accounting of the funds raised at the
completion of the project for which the
fund-raising activity was undertaken;
(12) Authorize the punong barangay to
enter into contracts in behalf of the
barangay, subject to the provisions of
this Code;
(13) Authorize the barangay treasurer
to make direct purchases in an amount
not exceeding One thousand pesos
(P1,000.00) at any one time for the
ordinary and essential administrative
needs of the barangay;
(14) Prescribe fines in amounts not
exceeding One thousand pesos
(P1,000.00) for violation of barangay
ordinances;
(15) Provide for the administrative
needs of the lupong tagapamayapa and
the pangkat ng tagapagkasundo;
(16) Provide for the organization of
community brigades, barangay tanod,
or community service units as may be
necessary;
(17) Organize regular lectures,
programs, or fora on community
problems such as sanitation, nutrition,
literacy, and drug abuse, and convene
assemblies to encourage citizen

participation in government;
(18) Adopt measures to prevent and
control the proliferation of squatters
and mendicants in the barangay;
(19) Provide for the proper
development and welfare of children in
the barangay by promoting and
supporting activities- for the protection
and total development of children,
particularly those below seven (7)years
of age;
(20) Adopt measures towards the
prevention and eradication of drug
abuse, child abuse, and juvenile
delinquency;
(21) Initiate the establishment of a
barangay high school, whenever
feasible, in accordance with law;
(22) Provide for the establishment of a
non-formal education center in the
barangay whenever feasible, in
coordination with the Department of
Education, Culture and Sports;
(23) Provide for the delivery of basic
services; and
or ordinance.
The Mayor is in the best position to review the Sangguniang

Barangay's actions to see if it acted within the scope of its prescribed
powers and functions. A trial court may dismiss a case questioning
the validity of the council's actions for failure to exhaust

administrative remedies.6 0
SECTION 392. Other Duties of Sangguniang Barangay

Members. - In addition to their duties as members of
the sangguniang barangay, sangguniang barangay
members may:
(a) Assist the punong barangay in the discharge of his
duties and functions;
(b) Act as peace officers in the maintenance of public
order and safety; and
(c) Perform such other duties and functions as the
punong barangay may delegate.
SECTION 393. Benefits of Barangay Officials. - (a)
Barangay officials, including barangay tanods and
members of the lupong tagapamayapa, shall receive
honoraria, allowances, and such other emoluments as
may be authorized by law or barangay, municipal or
city ordinance in accordance with the provisions of
this Code, but in no case shall it be less than One
thousand pesos (P1,000.00) per month for the punong
barangay and Six hundred pesos (P600.00) per month
for the sangguniang barangay members, barangay
treasurer, and barangay secretary: Provided, however,
That the annual appropriations for personal services
shall be subject to the budgetary limitations prescribed
under Title Five, Book 1I of this Code;
(b) The punong barangay, the sangguniang barangay
members, the barangay treasurer, and the barangay
secretary shall also:
(1) Be entitled to Christmas bonus of at
least One thousand pesos (P1,000.00)
each, the funds for which shall be taken
from the general fund of the barangay
6N New Sun Valley Homeowners' Asociation, Inc. v. Sangguniang Baranggay, G.R.

No. 156686, July 27,2011.
or from such other funds appropriated

by the National Government for the
purpose;
(2) Be entitled, during their
incumbency, to insurance coverage
which shall include, but shall not be
limited to temporary and permanent
disability, double indemnity, accident
insurance, death and burial benefits, in
accordance with Republic Act
Numbered Sixty-nine hundred forty-
two (R.A. No. 6942), entitled "An Act
Increasing the Insurance Benefits of
Local Government Officials and
Providing Funds Therefor";
(3) Be entitled to free medical care
including subsistence, medicines, and
medical attendance in any government
hospital or institution: Provided, That
such hospital care shall include surgery
or surgical expenses, medicines, X-rays,
laboratory fees, and other hospital
expenses;
In case of extreme urgency where there
is no available government hospital or
institution, the barangay official
concerned may submit himself for
immediate medical attendance to the
nearest private clinic, hospital or
institution and the expenses not
exceeding Five thousand pesos
(P5,000.00) that may be incurred
therein shall be chargeable against the
funds of the barangay concerned;
(4) Be exempted during their
incumbency from paying tuition and
matriculation fees for their legitimate
dependent children attending state

colleges or universities. He may
likewise avail of such educational
benefits in a state college or university
located within the province or city to
which the barangay belongs; and
(5) Be entitled to appropriate civil
service eligibility on the basis of the
number of years of service to the
barangay, pursuant to the rules and
regulations issued by the Civil Service
Commission.
(c) Elective barangay officials shall have preference in
appointments to any government position or in any
government-owned or -controlled corporations,
including their subsidiaries, after their tenure of office,
subject to the requisite qualifications and the
provisions of the immediately preceding paragraph.
(d) All duly appointed members of the barangay
tanod brigades, or their equivalent, which shall
number not more than twenty (20) in each barangay,
shall be granted insurance or other benefits during
their incumbency, chargeable to the barangay or the
city or municipal government to which the barangay
belongs.
Barangay officials also receive insurance coverage under

Section 522:
The transitory provisions provide a penalty for the

withholding benefits that accrue to barangay officials. Section 512 of
the Local Government Code provides:
SECTION 512. Withholding of Benefits Accorded to

Barangay Officials. - Willful and malicious
withholding of any of the benefits accorded to
barangay officials under Section 393 hereof shall be
punished with suspension or dismissal from office of
the official or employee responsible therefor.
Chapter V
Appointive Barangay Officials
SECTION 394. Barangay Secretary: Appointment,
Qualifications,Powers and Duties. - (a) The barangay
secretary shall be appointed by the punong barangay
with the concurrence of the majority of all the
sangguniang barangay members. The appointment of
the barangay secretary shall not be subject to
attestation by the Civil Service Commission.
(b) The barangay secretary shall be of legal age, a
qualified voter and an actual resident of the barangay
concerned.
(c) No person shall be appointed barangay secretary if
he is a sangguniang barangay member, a government
employee, or a relative of the punong barangay within

the fourth civil degree of consangumity of affinity.
(d) The barangay secretary shall:
(1) Keep custody of all records of the
sangguniang barangay and the
barangay assembly meetings;
(2) Prepare and keep the minutes of all
meetings of the sangguniang barangay
and the barangay assembly;
(3) Prepare a list of members of the
barangay assembly, and have the same
posted in conspicuous places within
the barangay;
(4) Assist in the preparation of all
necessary forms for the conduct of
barangay elections, initiatives,
referenda or plebiscites, in coordination
with the COMELEC;
(5) Assist the municipal civil registrar
in the registration of births, deaths, and
marriages;
(6) Keep an updated record of all
inhabitants of the barangay containing
the following items of information:
name, address, place and date of birth,
sex, civil status, citizenship,
occupation, and such other items of
information as may be prescribed by
law or ordinance;
(7) Submit a report on the actual
number of barangay residents as often
as may be required by the sangguniang
barangay; and

or ordinance.
SECTION 395. Barangay Treasurer: Appointment,
Qualifications, Powers and Duties. - (a) The barangay
treasurer shall be appointed by the punong barangay
with the concurrence of the majority of all the
sangguniang barangay members. The appointment of
the barangay treasurer shall not be subject to
attestation by the Civil Service Commission.
(b) The barangay treasurer shall be of legal age, a
qualified voter, and an actual resident of the barangay
concerned.
(c) No person shall be appointed barangay treasurer if
he is a sangguniang barangay member, a government
employee, or a relative of the punong barangay within
the fourth civil degree of consanguinity or affinity.
(d) The barangay treasurer shall be bonded in
accordance with existing laws in an amount to be
determined by the sangguniang barangay but not
exceeding Ten thousand pesos (P10,000.00), premiums
for which shall be paid by the barangay.
(e) The barangay treasurer shall:
(1) Keep custody of barangay funds
and properties;
(2) Collect and issue official receipts for
taxes, fees, contributions, monies,
materials, and all other resources
accruing to the barangay treasury and
deposit the same in the account of the
barangay as provided under Title Five,
Book II of this Code;
(3) Disburse funds in accordance with
the financial procedures provided in
this Code;
(4) Submit to the punong barangay a

statement covering the actual and
estimates of income and expenditures
for the preceding and ensuing calendar
years, respectively, subject to the
provisions of Title Five, Book II of this
Code.
(5) Render a written accounting report
of all barangay funds and property
under his custody at the end of each
calendar year, and ensure that such
report shall be made available to the
members of the barangay assembly and
other government agencies concerned;
(6) Certify as to the availability of funds
whenever necessary;
(7) Plan and attend to the rural postal
circuit within his jurisdiction; and;
or ordinance.
SECTION 396. Other Appointive Officials. - The
qualifications, duties, and functions of all other
barangay officials appointed by the punong barangay
shall be governed by the provisions of this Code and
other laws or by barangay ordinances.
Chapter VI
Barangay Assembly
SECTION 397. Composition; Meetings. - (a) There shall
be a barangay assembly composed of all persons who
are actual residents of the barangay for at least six (6)
months, fifteen (15) years of age or over, citizens of the
Philippines, and duly registered in the list of barangay
assembly members.
(b) The barangay assembly shall meet at least twice a

year to hear and discuss the semestral report of the
sangguniang barangay concerning its activities and
finances as well as problems affecting the barangay.
Its meetings shall be held upon call of the punong
barangay or of at least four (4) members of the
sangguniang barangay, or upon written petition of at
least five percent (5%) of the assembly members.
(c) No meeting of the barangay assembly shall take
place unless a written notice is given one (1) week
prior to the meeting except on matters involving
public safety or security, in which case notice within a
reasonable time shall be sufficient. The punong
barangay, or in his absence, the sangguniang
barangay member acting as punong barangay, or any
assembly member selected during the meeting, shall
act as presiding officer in all the meetings of the
assembly. The barangay secretary, or in his absence,
any member designated by the presiding officer to act
as secretary, shall discharge the duties of secretary of
the barangay assembly.
SECTION 398. Powers of the BarangayAssembly. - The
barangay assembly shall:
(a) Initiate legislative processes by recommending to
the sangguniang barangay the adoption of measures
for the welfare of the barangay and the city or
municipality concerned;
(b) Decide on the adoption of initiative as a legal
process whereby the registered voters of the barangay
may directly propose, enact, or amend any ordinance;
and;
(c) Hear and pass upon the semestral report of the
sangguniang barangay concerning its activities and
finances.
Chapter VII
Katarungang Pambarangay
SECTION 399. Lupong Tagapamayapa. - (a) There is
hereby created in each barangay a lupong
tagapamayapa, hereinafter referred to as the lupon,
composed of the punong barangay, as chairman and
ten (10) to twenty (20) members. The lupon shall be
constituted every three (3) years in the manner
provided herein.
(b) Any person actually residing or working in the
barangay, not otherwise expressly disqualified by law,
and possessing integrity, impartiality, independence
of mind, sense of fairness, and reputation for probity,
may be appointed a member of the lupon.
(c) A notice to constitute the lupon, which shall
include the names of proposed members who have
expressed their willingness to serve, shall be prepared
by the punong barangay within the first fifteen (15)
days from the start of his term of office. Such notice
shall be posted in three (3) conspicuous places in the
barangay continuously for a period of not less than
three (3) weeks;
(d) The punong barangay, taking into consideration
any opposition to the proposed appointment or any
recommendations for appointment as may have been
made within the period of posting, shall within ten
(10) days thereafter, appoint as members those whom
he determines to be suitable therefor. Appointments
shall be in writing, signed by the punong barangay,
and attested to by the barangay secretary.
(e) The list of appointed members shall be posted in
three (3) conspicuous places in the barangay for the
entire duration of their term of office; and
(f) In barangays where majority of the inhabitants are
members of indigenous cultural communities, local
systems of settling disputes through their councils of
datus or elders shall be recognized without prejudice

to the applicable provisions of this Code.
Arbitration is a pre-condition for the filing of the complaint in

court. Where the complaint (a) did not state that it is one of excepted
cases, or (b) it did not allege prior availment of said conciliation
process, or (c) did not have a certification that no conciliation had
been reached by the parties, the case should be dismissed.68 1
The katarungang pambarangay avoids the animosity
generated by protracted court litigations between members of the
same political unit by compelling the disputants to settle their
differences through the intervention of the barangay leader and other
respected members of the barangay. The process at the barangay
level is also designed to discourage indiscriminate filing of cases in
court in order to decongest its clogged dockets and, in the process,
enhance the quality of justice dispensed by it.682
The Local Government Code repealed Presidential Decree
No. 1508, and in Uy v. ContrerasM 8 the Supreme Court listed the
features of the revised katarungang pambarangay law:

1. It increased the authority of the lupon in criminal offenses
from those punishable by imprisonment not exceeding thirty
days or a fine not exceeding P200.00 in P.D. No. 1508 to those
offenses punishable by imprisonment not exceeding one year
or a fine not exceeding P5,000.00.
2. As to venue, it provides that disputes arising at the
workplace where the contending parties are employed or at the
institution where such parties are enrolled for study, shall be
brought in the barangay where such workplace or institution is
located.
3. It provides for the suspension of the prescriptive periods of
offenses during the pendency of the mediation, conciliation, or
arbitration process.
6K Agbayani v. Court of Appeals, G.R No. 183623, June 25,2012.

2
N Morata v. Go, G.R. No. L-62339, October 27,1983.
M Uy v. Contreras, G.R. Nos. 111416-17, September 26,1994.
SECTION 400. Oath and Term of Office. - Upon

appointment, each lupon member shall take an oath of
office before the punong barangay. He shall hold office
until a new lupon is constituted on the third year
following his appointment unless sooner terminated by
resignation, transfer of residence or place of work, or
withdrawal of appointment by the punong barangay
with the concurrence of the majority of all the members
of the lupon.
SECTION 401. Vacancies. - Should a vacancy occur in
the lupon for any cause, the punong barangay shall
immediately appoint a qualified person who shall hold
office only for the unexpired portion of the term.
SECTION 402. Functions of the Lupon. - The lupon
shall:
(a) Exercise administrative supervision
over the conciliation panels provided
herein;
(b) Meet regularly once a month to
provide a forum for exchange of ideas
among its members and the public on
matters relevant to the amicable
settlement of disputes, and to enable
various conciliation panel members to
share with one another their
observations and experiences in
effecting speedy resolution of disputes;
and
(c) Exercise such other powers and
or ordinance.
The only necessary condition before any case falling within

the authority of the Lupon or the Pangkat may be fied before a court
is that there has been personal confrontation between the parties but
despite earnest efforts to conciliate, there was a failure to amicably
settle the dispute. Upon certification by the Lupon ng Tagapamayapa
that the confrontation before the Pangkat failed because a party
refused to submit the case for arbitration and insisted that the case
should go to court, the MCTC should 'have continued with the
proceedings in the case for recovery of possession which it
suspended in order to give way for the possible amicable resolution
of the case through arbitration before the Lupon ng
Tagapamayapa.m4
SECTION 403. Secretary of the Lupon. - The barangay

secretary shall concurrently serve as the secretary of
the lupon. He shall record the results of mediation
proceedings before the punong barangay and shall
submit a report thereon to the proper city or
municipal courts. He shall also receive and keep the
records of proceedings submitted to him by the
various conciliation panels.
SECTION 404. Pangkatng Tagapagkasundo. - (a) There
shall be constituted for each dispute brought before
the lupon a conciliation panel to be known as the
pangkat ng tagapagkasundo, hereinafter referred to as
the pangkat, consisting of three (3) members who shall
be chosen by the parties to the dispute from the list of
members of the lupon.
Should the parties fail to agree on the pangkat
membership, the same shall be determined by lots
drawn by the lupon chairman.
(b) The three (3) members constituting the pangkat
shall elect from among themselves the chairman and
the secretary. The secretary shall prepare the minutes
of the pangkat proceedings and submit a copy duly
attested to by the chairman to the lupon secretary and
to the proper city or municipal court. He shall issue
6%Pang-et v. Manacnes-dao-as, G.R. No. 167261, March 2,2007.

and cause to be served notices to the parties

concerned.
The lupon secretary shall issue certified true copies of
any public record in his custody that is not by law
otherwise declared confidential.
SECTION 405. Vacancies in the Pangkat. - Any
vacancy in the pangkat shall be chosen by the parties
to the dispute from among the other lupon members.
Should the parties fail to agree on a common choice,
the vacancy shall be filled by lot to be drawn by the
lupon chairman.
SECTION 406. Character of Office and Service of Lupon
Members. - (a), The lupon members, while in the
performance of their official duties or on the occasion
thereof, shall be deemed as persons in authority, as
defined in the Revised Penal Code.
(b) The lupon or pangkat members shall serve without
compensation, except as provided for in Section 393
and without prejudice to incentives as provided for in
this section and in Book IV of this Code. The
Department of the Interior and Local Government
shall provide for a system of granting economic or
other incentives to the lupon or pangkat members
who adequately demonstrate the ability to judiciously
and expeditiously resolve cases referred to them.
While in the performance of their duties, the lupon or
pangkat members, whether in public or private
employment, shall be deemed to be on official time,
and shall not suffer from any diminution in
compensation or allowance from said employment by
reason thereof.
SECTION 407. Legal Advice on Matters Involving
Questions of Law. - The provincial, city legal officer or
prosecutor or the municipal legal officer shall render
legal advice on matters involving questions of law to
the punong barangay or any lupon or pangkat
member whenever necessary in the exercise of his
functions in the administration of the katarungang

pambarangay.
SECTION 408. Subject Matter for Amicable Settlement;
Exception Thereto. - The lupon of each barangay shall
have authority to bring together the parties actually
residing in the same city or municipality for amicable
settlement of all disputes except:
(a) Where one party is the government,
or any subdivision or instrumentality
thereof;
(b) Where one party is a public officer
or employee, and the dispute relates to
the performance of his official
functions;
(c) Offenses punishable by
imprisonment exceeding one (1) year
or a fine exceeding Five thousand
pesos (P5,000.00);
(d) Offenses where there is no private
offended party;
(e) Where the dispute involves real
properties located in different cities or
municipalities unless the parties
thereto agree to submit their
differences to amicable settlement by
an appropriate lupon;
(f) Disputes involving parties who
actually reside in barangays of different
cities or municipalities, except where
such barangay units adjoin each other
and the parties thereto agree to submit
their differences to amicable settlement
by an appropriate lupon ;6
In Boleyley v. Villanueva, G.R No. 128734, September 14, 1999, the Supreme
Court held that the plaintiff's complaint should have alleged defendant's place of
(g) Such other classes of disputes which

the President may determine in the
interest of justice or upon the
recommendation of the Secretary of
Justice.
The court in which non-criminal cases
not falling within the authority of the
lupon under this Code are filed may, at
any time before trial, motu proprio
refer the case to the lupon concerned
for amicable settlement.
In the case of Agbayani v. Court of Appeals 66 the Court citing

Administrative Circular No. 14-93, which was issued by the Supreme
Court on July 15, 1993, enumerated additional exceptions to the
requirement of prior barangay conciliation proceedings before filing
of complaints in court. These exceptions are:
1. Any complaint by or against corporations, partnerships or
juridical entities, since only individuals shall be parties to
Barangay conciliation proceedings either as complainants or
respondents
2. Disputes where urgent legal action is necessary to prevent
injustice from being committed or further continued,
specifically the following:
a) Criminal cases where accused is under police custody
or detention
b) Petitions for habeas corpus by a person illegally
deprived of his rightful custody over another or a person
illegally deprived of or on acting in his behalf;
c) Actions coupled with provisional remedies such as
preliminary injunction, attachment, delivery of personal
actual residence, not his postal office address and that the allegation of defendant's
actual residence would have been ideal to determine venue. It held that the reference
to the defendant's postal address "clearly implies that the parties do not reside in the
same city or municipality."
66 G.R. No. 183623, June 25,2012.
property and support during the pendency of the action;

and
d) Actions which may be barred by the Statute of
Limitations.
3. Where the dispute arises from the Comprehensive
Agrarian Reform Law (CARL)
4. Labor disputes or controversies arising from employer-
employee relations
5. Actions to annul judgment upon a compromise which may
be filed directly in court.
SECTION 409. Venue. - (a) Disputes between persons

actually residing in the same barangay shall be
brought for amicable settlement before the lupon of
said barangay.
(b) Those involving actual residents of different
barangays within the same city or municipality shall
be brought in the barangay where the respondent or
any of the respondents actually resides, at the election
of the complainant.
(c) All disputes involving real property or any interest
therein shall be brought in the barangay where the
real property or the larger portion thereof is situated.
Where parties do not reside in the same city or
municipality or in adjoining barangays, there is no
requirement for them to submit their dispute
involving real property to the Lupong
687
Tagapamayapa.
(d) Those arising at the workplace where the
contending parties are employed or at the institution
where such parties are enrolled for study, shall be
brought in the barangay where such workplace or
institution is located.
6v See Vercide v. Hernandez, A.M. No. MTJ-00-1265, April 6,2000.

Objections to venue shall be raised in the mediation

proceedings before the punong barangay; otherwise,
the same shall be deemed waived. Any legal question
which may confront the punong barangay in resolving
objections to venue herein referred to may be
submitted to the Secretary of Justice or his duly
designated representative, whose ruling thereon shall
be binding.
SECTION 410. Procedurefor Amicable Settlement. - (a)
'Wt may initiate proceeding - Upon payment of the
appropriate filing fee, any individual who has a cause
of action against another individual involving any
matter .within the authority of the lupon may
complain, orally or in writing, to the lupon 'chairman
of the barangay.
(b) Mediation by lupon chairman - Upon receipt of the
complaint, the lupon chairman shall, within the next
working day, summon the respondent(s), with notice
to the complainant(s) for them and their witnesses to
appear before him for a mediation of their conflicting
interests. If he fails in his mediation effort within
fifteen (15) days from the first meeting of the parties
before him, he shall forthwith set a date for the
constitution of the pangkat in accordance with the
provisions of this Chapter.
(c) Suspension of prescriptive period of offenses - While
the dispute is under mediation, conciliation, or
arbitration, the prescriptive periods for offenses and
cause of action under existing laws shall be
interrupted upon filing of the complaint with the
punong barangay. The prescriptive periods shall
resume upon receipt by the complainant of the
complaint or the certificate of repudiation or of the
certification to file action issued by the lupon or
pangkat secretary: Provided, however, That such
interruption shall not exceed sixty (60) days from the
filing of the complaint with the punong barangay.
Section 410 (c) is ambiguous because "receipt by the

complainant of the complaint" is unclear. Accordingly, Section 11 of
the Rules and Regulations issued by the Secretary of Justice, the
resumption of the running of the prescriptive period shall be from
receipt by the complainant of the certificate of repudiation or the
certification to file action issued by the lupon or the pangkat
secretary. Such suspension, however, shall not exceed sixty days. 6
If the records fail to show when the complainant received the
Barangay Certification to File Action, a criminal case filed with the
Municipal Circuit Trial Court may be dismissed on the ground of
prescription.689
(d) Issuance of summons; hearing; grounds for

disqualification - The pangkat shall convene not later
than three (3) days from its constitution, on the day
and hour set by the lupon chairman, to hear both
parties and their witnesses, simplify issues, and
explore all possibilities for amicable settlement. For
this purpose, the pangkat may issue summons for the
personal appearance of parties and witnesses before it.
In the event that a party moves to disqualify any
member of the pangkat by reason of relationship, bias,
interest, or any other similar grounds discovered after
the constitution of the pangkat, the matter shall be
resolved by the affirmative vote of the majority of the
pangkat whose decision shall be final. Should
disqualification be decided upon, the resulting
vacancy shall be filled as herein provided for.
(e) Period to arrive at a settlement - The pangkat shall
arrive at a settlement or resolution of the dispute
within fifteen (15) days from the day it convenes in
accordance with this section. This period shall, at the
discretion of the pangkat, be extendible for another
69 Uy v. Contreras, G.R. Nos. 111416-17, September 26,1994.

89
Mendova v. Afable, A.M. No. MTJ-02-1402, December 4,2002.
period which shall not exceed fifteen (15) days, except

in dearly meritorious cases.
SECTION 411. Form of settlement. - All amicable
settlements shall be in writing, in a language or dialect
known to the parties, signed by them, and attested to
by the lupon chairman or the pangkat chairman, as
the case may be. When the parties to the dispute do
not use the same language or dialect, the settlement
shall be written in the language known to them.
SECTION 412. Conciliation. - (a) Pre-condition to Filing
of Complaintin Court. - No complaint, petition, action,
or proceeding involving any matter within the
authority of the lupon shall be filed or instituted
directly in court or any other government office for
adjudication, unless there has been a confrontation
between the parties before the lupon chairman or the
pangkat, and that no conciliation or settlement has
been reached as certified by the lupon secretary or
pangkat secretary as attested to by the lupon or
pangkat chairman or unless the settlement has been
repudiated by the parties thereto.
The technical effect of failure to comply with the requirement

of Section 412 is similar to the effect produced by non-exhaustion of
administrative remedies-the complaint becomes afflicted with the
vice of pre-maturity; and the controversy there alleged is not ripe for
judicial determination. The complaint becomes vulnerable to a
motion to dismiss. Nevertheless, "the conciliation process is not a
jurisdictional requirement, so that non-compliance therewith cannot
affect the jurisdiction which the court has otherwise acquired over
the subject matter or over the person of the defendant."6
The compulsory process of arbitration is a precondition for
the filing of the complaint in court. Where the complaint (a) did not
state that it was one of excepted cases, or (b) did not allege prior
availment of said conciliation process, or (c) did not have a
certification that no conciliation had been reached by the parties, the
6o Aquino v. Aure, G.R. No. 153567, February 18, 2008.

case should be dismissed. 691 In Zamora v. Heirs of Izquierdo,6w the

Supreme Court explained that Section 412 (a) provides that, as a
requirement for filing a complaint in court, the parties shall go
through the conciliation process either before the Lupon Chairman,
or the Pangkat. It held further that Section 410 (b) (requiring the
Barangay Chairman to constitute a Pangkat if he fails in his
mediation efforts) should be construed with Section 412 (a). Even if
the Pangkat was not constituted, but the parties met nine times at the
Office of the Barangay Chairman for conciliation, there was
substantial compliarnce with the law.
(b) When Parties May go Directly to Court. - The

parties may go directly to court in the following
instances:
(1) Where the accused is under
detention;
(2) Where a person has otherwise been
deprived of personal liberty calling for
habeas corpus proceedings;
(3) Where actions are coupled with
provisional remedies such as
preliminary injunction, attachment,
delivery of personal property and
support pendente lite; and
(4) Where the action may otherwise be
barred by the statute of limitations.
(c) Conciliation among Members of Indigenous Cultural
Communities. - The customs and traditions of
indigenous cultural communities shall be applied in
settling disputes between members of the cultural
communities.
SECTION 413. Arbitration. - (a) The parties may, at
any stage of the proceedings, agree in writing that
6
%Heirs of Orito v. Montesclaros, G.R. No. 168935, March 13, 2013.
692 G.R. No. 146195, November 18,2004.
they shall abide by the arbitration award of the lupon

chairman or the pangkat Such agreement to arbitrate
may be repudiated within five (5) days from the date
thereof for the same grounds and in accordance with
the procedure hereinafter prescribed. The arbitration
award shall be made after the lapse of the period for
repudiation and within ten (10) days thereafter.
(b) The arbitration award shall be in writing in a
language or dialect known to the parties. When the
parties to the dispute do not use the same language or
dialect, the award shall be written in the language or
dialect known to them.
SECTION 414. Proceedings Open to the Public; Exception.
- All proceedings for settlement shall be public and
informal: Provided, however, That the lupon chairman
or- the pangkat chairman, as the case may be, may
motu proprio or upon request of a party; exclude the
public from the proceedings in the interest of privacy,
decency, or public morals.
SECTION 415. Appearance of Parties in Person. - In all
katarungang pambarangay proceedings, the parties
must appear in person without the assistance of
counsel or representative, except for minors and
incompetents who may be assisted by their next-of-kin
who are not lawyers.
Any party or witness who refuses to appear before the Lupon

or the Pangkat may be punished for indirect contempt. The Local
Government Code also deprives such party of judicial remedies.
Section 515 of the Code provides:
SECTION 416. Effect of Amicable Settlement and

Arbitration Award. - The amicable settlement and
arbitration award shall have the force and effect of a
final judgment of a court upon the expiration of ten
(10) days from the date thereof, unless repudiation of
the settlement has been made or a petition to nullify
the award has been filed before the proper city or
municipal court.
However, this provision shall not apply to court cases
settled by the lupon under the last paragraph of
Section 408 of this Code, in which case the
compromise settlement agreed upon by the parties
before the lupon chairman or the pangkat chairman
shall be submitted to the court and upon approval
thereof, have the force and effect of a judgment of said
court.
SECTION 417. Execution. - The amicable settlement
or arbitration award may be enforced by execution by
the lupon within six (6) months from the date of the
settlement. After the lapse of such time, the settlement
may be enforced by action in the appropriate city or

municipal court.
An amicable settlement reached at the barangay conciliation

proceedings is binding between the contracting parties and, upon its
perfection, is immediately executory insofar as it is not contrary to
law, good morals, good customs, public order and public policy.
Being a by-product of mutual concessions and good faith of the
parties, an amicable settlement has the force and effect of res judicata
even if not judicially approved. It transcends being a mere contract
binding only upon the parties thereto, and is akin to a judgment that
is subject to execution in accordance with the Rules. Thus, under
Section 417, such amicable settlement or arbitration award may be
enforced by execution by the Barangay Lupon within six (6) months
from the date of settlement, or by filing an action to enforce such
settlement in the appropriate city or municipal court, if beyond the
six-month period. 693
As a product of mutual concessions and good faith of the
parties, an amicable settlement has the force and effect of res judicata
even if it was not judicially approved. It is not a mere contract
binding only upon the parties; it is akin to a judgment that is subject
to execution in accordance with the Rules. Under Section 417 of the
Local Government Code, such amicable settlement or arbitration
award may be enforced by execution by the Barangay Lupon within
six months from the date of settlement, or by filing an action to
enforce such settlement in the appropriate city or municipal court, if
beyond the six-month period. 694
Under the first remedy... the Punong Barangay is called
upon during the hearing to determine solely the fact
of non-compliance of the terms of the settlement and
to give the defaulting party another chance at
voluntarily complying with his obligation under the
settlement. Under the second remedy, the proceedings
are governed by the Rules of Court, as amended. The
cause of action is the amicable settlement itself, which,
MMiguel v. Montanez, G.R. No. 191336, January 25, 2012.

694
Miguel v. Montanez, G.R. No. 191336, January 25,2012.
636 Local Govern ment Law and Jurisprudence
by operation of law, has the force and effect of a final

judgment. 695
If a party fails to comply with the terms of the Kasunduang
Pag-aayos, the agreement is deemed rescinded (following Article
2041 of the New Civil Code). The other party can now insist on his
original demand. Perforce, the complaint for collection of sum of
money is the proper remedy.6%
SECTION 418. Repudiation.- Any party to the

dispute may, within ten (10) days from the date of the
settlement, repudiate the same by filing with the
lupon chairman a statement to that effect sworn to
before him, where the consent is vitiated by fraud,
violence, or intimidation. Such repudiation shall be
sufficient basis for the issuance of the certification for
filing a complaint as hereinabove provided.
SECTION 419. Transmittal of Settlement and Arbitration
Award to the Court. - The secretary of the lupon shall
transmit the settlement or the arbitration award to the
appropriate city or municipal court within five (5)
days from the date of the award or from the lapse of
the ten-day period repudiating the setilement and
shall furnish copiesthereof to each of the parties to the
settlement and the lupon chairman.
SECTION 420. Power to Administer Oaths. - The
punong barangay, as chairman of the lupong
tagapamayapa, and the members of the pangkat are
695Miguel v. Montanez, G.R. No. 191336, January 25, 2012. The Court emphasized
that enforcement by execution of the amicable setfiement, either under the first or
the second remedy, is only applicable if the contracting parties have not repudiated
such settlement within ten days from the date thereof in accordance with Section 416
of the Local Government Code. If the amicable settlement is repudiated by one
party, either expressly or impliedly, the other party has two options, namely, to
enforce the compromise in accordance with the Local Government Code or Rules of
Court as the case may be, or to consider it rescinded and insist upon his original
demand.
6
%,Miguel v. Montanez, G.R. No. 191336, January 25, 2012.
hereby authorized to administer oaths in connection

with any matter relating to all proceedings in the
implementation of the katarungang pambarangay.
SECTION 421. Administration;Rules and Regulations. -
The city or municipal mayor, as the case may be, shall
see to the efficient and effective implementation and
administration of the katarungang pambarangay. The
Secretary of Justice shall promulgate the rules and
regulations necessary to implement this Chapter.
SECTION 422. Appropriations. - Such amount as may
be necessary for the effective implementation of the
katarungang pambarangay shall be provided for in
the annual budget of the city or municipality
concerned.
The Alternative Dispute Resolution Act of 2004 "shall not be

interpreted to repeal, amend or modify the jurisdiction of the
Katarungang Pambarangay under Republic Act No. 7160."6w
Chapter VIII
Sangguniang Kabataan
SECTION 423. Creation and Election. - (a) There shall
be in every barangay a sangguniang kabataan to be
composed of a chairman, seven (7) members, a
secretary, and a treasurer.
(b) A sangguniang kabataan official who, during his
term of office, shall have passed the age of twenty-one
(21) years shall be allowed to serve the remaining
portion of the term for which he was elected.
In the case of Associated Labor Unions v. LetrondO, 698 the

election for members of the SK was considered a "local election" and
6w Republic Act No. 9285 (2004), § 53.

69 G.R. No. 111988, October 14,1994.
the day set for its holding, a holiday, within the context of the Labor
Code, for which holiday pay should be paid by employer. The Court
pointed out that the Sangguniang Kabataan (SK) is part of the local
government structure. The chairman of the SK is an ex officio member
of the Sangguniang Baranggay with the same powers duties,
functions and privileges as the regular members of the Sangguniang
Barangay. The President of the Pederasyon ng mga Sangguniang
Kabataan, which is composed of the SK chairmen of the sangguniang
kabataan of the barangays in the province, city or municipality, is an
ex officio member of the Sangguniang Panlalawigan, Sangguniang
Panlungsod and Sangguniang Bayan. The fact that only those
between 15 and 21 take part in the election for members of the SK
does not make such election any less of a regular local election. The
Constitution provides, for example, for the sectoral representatives in
the House of Representatives of, among others, women and youth.
Only voters belonging to the relevant sectors can take part in the
election of their representatives. Yet it cannot be denied that such
election is a regular national election, and the day set for its holding,
a holiday.
Any contest relating to the election of members of the
Sangguniang Kabataan (including the chairman) - whether
pertaining to their eligibility or the manner of their election - is
cognizable by MTCs, MCTCs, and MeTCs. To contend that quo
warranto proceedings involving an SK Chairman should be brought
in the Regional Trial Court would, in effect, make the SK Chairman,
who is just an ex-officio member of the Sangguniang Barangay, more
important than the Chairman and elective members of the same
Sangguniang Barangay. Moreover, if election protests involving SK
officers are cognizable by the MTCs, there is no reason why quo
warranto proceedings involving the same officers should not be
cognizable by the same courts. If the objection to the election of an SK
Chairman involves a question both as to his eligibility for the office
and of fraud in his election, two petitions would have to be filed in
different fora - one in the RTC (for the quo warranto suit) and
another one in the MTC (for the election protest). The same'objection
to the splitting of jurisdiction which has led to a reform in the law of

procedure can thus be made to this interpretation. 6s9
SECTION 424. Katipunan ng Kabataan. - The

katipunan ng kabataan shall be composed of all
citizens of the Philippines actually residing in the
barangay for at least six (6) months, who are fifteen
(15) but not more than twenty-one (21) years of age,
and who are duly registered in the list of the
sangguniang kabataan or in the official barangay list
in the custody of the barangay secretary.
A closer look at the Local Government Code will reveal a

distinction between the maximum age of a member in the Katipunan
ng Kabataan and the maximum age of an elective SK official. Section
424 of the Code sets a member's maximum age at 21 years. There is
no further provision as to when the member shall have turned 21
years of age. Section 428 provides that the maximum age of an
elective SK official is 21 years old "on the day of his election." The
elective official must not be more than 21 years old on the day of
election. The distinction is understandable considering that the Code
itself provides more qualifications for an elective SK official than for
a member of the Katipunan ng Kabataan. 700
Republic Act No. 9164701 amended Sections 424 and 428 of the
Local Government Code by lowering the maximum age for
membership in the SK to youths less than 18 years old. In the case of
6
" Marquez v. Commission on Elections, G.R. No. 127318, August 25,1999.
700
Garvida v. Sales, G.R. No. 124893, April 18,1997.
7u' Repeblic Act No. 9164 (2002), § 6 provides:
Section 424 of Republic Act No. 7160, otherwise known as the
Local Government Code of 1991, is hereby amended to read as
follows:
"Sec. 424. Katipunan ng Kabataan. - The katipunan ng kabataan
shall be composed of Filipino citizens actually residing in the
barangay for at least six (6) months, who are fifteen (15) but less
than eighteen (18) years of age on the day of the election, and who
are duly registered in the list of the sangguniang kabataan or in
the official barangay list in the custody of the barangay secretary."
Montesclaros v. Comeleco 2 the Court ruled that Congress exercises the

power to prescribe the qualifications for SK membership. SK
membership is not a property right protected by the Constitution
because it is a mere statutory right conferred by law. Congress may
amend at any time the law to change or even withdraw the statutory
right. A public office is not a property right. As the Constitution
expressly states, a public office is a public trust. No one has a vested
right to any public office, much less a vested right to an expectancy
of holding a public office. While the State policy is to encourage the
youth's involvement in public affairs, this policy refers to those who
belong to the class of people defined as the youth. Congress has the
power to define who are the youth qualified to join the SK, which
itself is a creation of Congress. Those who do not qualify because
they are past the age group defined as the youth cannot insist on
being part of the youth. In government service, once an employee
reaches mandatory retirement age, he cannot invoke any property
right to cling to his office. 7 3
SECTION 425. Meetings of the Katipunan ng Kabataan.

- The katipunan ng kabataan shall meet at least once
every three (3) months, or at the call of the chairman
of the sangguniang kabataan or upon written petition
of at least one-twentieth (1/20) of its members, to
decide on important issues affecting the youth of the
barangay.
SECTION 426. Powers and Functionsof the Sangguniang
Kabataan. - The sangguniang kabataan shall:
(a) Promulgate resolutions necessary to carry out the
objectives of the youth in the barangay in accordance
with the applicable provisions of this Code;
(b) Initiate programs designed to enhance the social,
political, economic, cultural, intellectual, moral,
spiritual, and physical development of the members;
7M G.R. No. 152295, July 9, 2002.

M Montesdaros v. Comelec, G.R No. 152295, July 9,2002.
(c) Hold fund-raising activities, the proceeds of which

shall be tax-exempt and shall accrue to the general
fund of the sangguniang kabataan: Provided, however,
That in the appropriation thereof, the specific purpose
for which such activity has been held shall be first
satisfied;
(d) Create such bodies or committees as it may deem
necessary to effectively carry out its programs and
activities;
(e) Submit annual and end-of-term reports to the
sangguniang barangay on their projects and activities
for the survival and development of the youth in the
barangay;
(f) Consult and coordinate with all youth
organizations in the barangay for policy formulation
and program implementation;
(g) Coordinate with the appropriate national agency
for the implementation of youth development projects
and programs at the national level;
(h) Exercise such other powers and perform such
other duties and functions as the sangguniang
barangay may determine or delegate or as may be
prescribed by law or ordinance.
SECTION 427. Meetings of the SangguniangKabataan. -
The sangguniang kabataan shall meet regularly once a
month on the date, time, and place to be fixed by the
said sanggunian. Special meetings may be called by
the sangguniang kabataan chairman or any three (3) of
its members by giving written notice to all members of
the date, time, place and agenda of the meeting at
least one (1) day in advance. Notices of regular or
special meetings shall be furnished the punong
barangay and the sangguniang barangay.
A majority of the members of the sangguniang
kabataan shall constitute a quorum.
SECT[ON 428. Qualifications. - An elective official of

the sangguniang kabataan must be a citizen of the
Philippines, a qualified voter of the katipunan ng
kabataan, a resident of the barangay for at least one (1)
year immediately prior to election, at least fifteen (15)
years but not more than twenty-one (21) years of age
on the day of his election, able to read and write
Filipino, English, or the local dialect, and must not
have been convicted of any crime involving moral
turpitude.704
The maximum age of a youth official must be exactly 21 years

on election day. The phrase "not more than 21 years of age" means
not over 21 years, not beyond 21 years. It means 21 365-day cycles. It
does not mean 21 years and one or some days or a fraction of a year
because that would be more than 21 365-day cycles. "Not more than
21 years old" is not equivalent to "less than 22 years old." The law
does not state that the candidate be less than 22 years on election
day.Z
The 1987 Constitution vests in the COMELEC appellate
jurisdiction over all contests involving elective barangay officials
decided by trial courts of limited jurisdiction. Construed in relation
to Section 387 (which includes the SK chairman in the enumeration of
barangayofficials), the constitutional provision indeed sanctions the
M Sec. 428 has been amended by Republic Act No. 9164. Section 7 provides:
Section 428 of Republic Act No. 7160, otherwise known as the
Local Government Code of 1991, is hereby amended to read as
follows:
"Sec. 428. Qualifications. - An elective official of
the sangguniang kabataan must be a Filipino
citizen, a qualified voter of the katipunan ng
kabataan, a resident of the barangay for at least
one (1) year immediately prior to election, at
least fifteen (15) years but less than eighteen (18)
years of age on the day of the election, able to
read and write Filipino, English, or the local
dialect, and must not have been convicted of any
crime involving moral turpitude."
70
Montesclaros v. Commission on Elections, G.R. No. 152295, July 9,2002.
appellate review by the COMELEC of election protests involving the

position of SK chairman706
COMELEC's exercise of its quasi-judicial powers is subject to
Section 3 of Article D-C which expressly requires that all election
cases, including pre-proclamation controversies, shall be decided by
the COMELEC in division, and the motion for reconsideration shall
be decided by the COMELEC en banc. It is clear from the
abovequoted provision of the 1987 Constitution that election cases
include pre-proclamation controversies, and all such cases must first
be heard and decided by a Division of the Commission. The
Commission, sitting en banc, does not have the authority to hear and
decide the same at the first instance. In the COMELEC Rules of
Procedure, pre-proclamation cases are classified as Special Cases
and, in compliance with the provision of the Constitution, the two (2)
Divisions of the Commission are vested with the authority to hear
and decide these Special Cases. Rule 27 thereof governs Special
Cases; specifically, Section 9 of the said Rule provides that appeals
from rulings of the Board of Canvassers are cognizable by any of the
Divisions to which they are assigned and not by the commission en
banc. Indisputably then, the COMELEC en banc acted without
jurisdiction, or with grave abuse of discretion, when it resolved the
appeals in the abovementioned Special Cases without first referring
them to any of its Divisions. Said resolutions are, therefore, null and
void and must be set aside. Consequently, the appeals are deemed
707
pending before the Commission for proper referral to a Division.
The COMELEC is empowered in Section 2(6), Article IX-C of
the 1987 Constitution to "prosecute cases of violations of election
laws." The prosecution of election law violators involves the exercise
of the COMELEC's administrative powers. Thus, the COMELEC en
banc can directly approve the recommendation of its Law
Department to file the criminal information for double registration.
There is no constitutional requirement that the filing of the criminal
information be first decided by any of the divisions of the
COMELEC. In sum, the second sentence of Section 3, Article IX-C of
the 1987 Constitution is not applicable in administrative cases, like in
cases where the COMELEC is determining whether probable cause
7N Fernandez v. Commission on Elections, G.R. No. 176296, June 30, 2008.

7 7
o Zarate v. Commission on Elections, G.R. No. 129096, November 19,1999.
exists to charge a person for violation of the provision of the Election

Code prohibiting double registration.7°8
SECTION 429. Term of Office. - The sangguniang

kabataan chairman and members shall hold office for
a period of three (3) years, unless sooner removed for
cause as provided by law, permanently incapacitated,
die or resign from office.
it. is true that Section 43 (c) of the Local Government Code

limits the term of elective barangay officials to three years. However,
Section 5 of Republic Act No. 9164 explicitly provides that incumbent
barangay officials may continue in office in a hold over capacity until
their successors are elected and qualified. Since there was a failure of
elections in the 15 July 2002 regular elections and in the 13 August
2002 special elections, petitioners can legally remain in office as
barangay chairmen of their respective barangays in a hold-over
capacity. They shall continue to discharge their powers and duties as
punong barangay,and enjoy the rights and privileges pertaining to the
office.7 9
In one case, the three-term incumbent Punong Barangay ran
for and won a seat in the Sangguniang Bayan. He served the full term
of the Sangguniang Bayan position and thereafter, he filed his
Certificate of Candidacy for Punong Barangay for the next elections.
The Commission on Elections disqualified him when he attempted to
run as Punong Barangay for a fourth time. Petitioner argued that
when he assumed the position of Sangguniang Bayan Member, he
7
0 Baytan v. Commission on Elections, G.R. No. 153945, February 4,2003.
709 Sambarani v. Commission on Elections, G.R. No. 160427, September 15, 2004. The
Court added that Section 5 of Republic Act No. 9164 reiterates Section 4 of Republic
Act No. 6679 which provides that "[AIi incumbent barangay officials . . . shall
remain in office unless sooner removed or suspended for cause . . . until their
successors shall have been elected and qualified." Section 8 of the same Republic Act
No. 6679 also states that incumbent elective barangay officials running for the same
office "shall continue to hold office until their successors shall have been elected and
qualified." The Court explained that the application of the hold-over principle
preserves continuity in the transaction of official business and prevents a hiatus in
government pending the assumption of a successor into office.
left his post as Punong Barangay by operation of law; hence, he did

not fully serve his third term as Punong Barangay, and therefore is
not barred by the term limits. The Supreme Court disagreed. It
explained that "operation of law" is defined as "a term describing the
fact that rights may be acquired or lost by the effect of a legal rule
without any act of the person affected." In this case, the Petitioner
did not fill in or succeed to a vacancy by operation of law. He instead
relinquished his office as Punong Barangay during his third term
when he won and assumed office as Sangguniang Bayan member of
Dauis, Bohol, which is deemed a voluntary renunciation of the Office
of Punong Barangay. 710
In Laceda v. Limena, 711 the Court held that the merger and
conversion of Sorsogon and Bacon into Sorsogon City does not mean
that the office of Punong Barangay of Barangay Panlayaan,
Municipality of Sorsogon, would now be construed as a different
local government post as that of the office of Punong Barangay of
Barangay Panlayaan, Sorsogon City, since the territorial jurisdiction
of Barangay Panlayaan, Sorsogon City is the same as before the
conversion. The inhabitants of the barangay are the same voters who
elected Laceda to be their Punong Barangay for three consecutive
terms and over whom Laceda held power and authority as their
Punong Barangay.
SECTION 430. SangguniangKabataan Chairman. - The

registered voters of the katipunan ng kabataan shall
elect the chairman of the sangguniang kabataan who
shall automatically serve as an exofficio member of the
sangguniang barangay upon his assumption to office.
As such, he shall exercise the same powers, discharge
the same duties and functions, and enjoy the same
privileges as the regular sangguniang barangay
members, and shall be the chairman of the committee
on youth and sports development in the said
sanggunian.
710Bolos v. Commission on Elections, G.R. No. 184082, March 17, 2009.

711G.R.No. 182867, November 25, 2008. See also Latasa v. Commission on Elections,
G.R. No. 154829, December 10, 2003.
SECTION 431. Powers and Duties of the Sangguniang

Kabataan Chairman. - In addition to the duties which
may be assigned to him by the sangguniang barangay,
the sangguniang kabataan chairman shall:
(a) Call and preside over all meetings of the katipunan
ng kabataan and the sangguniang kabataan;
(b) Implement policies, programs, and projects within
his jurisdiction in coordination with the sangguniang
barangay;
(c) Exercise general supervision over the affairs and
activities of the sangguniang kabataan and the official
conduct of its members, and such other officers of the
sangguniang kabataan within his jurisdiction;
(d) With the concurrence of the sangguniang
kabataan, appoint from among the members of the
sangguniang kabataan, the secretary and treasurer
and such other officers as may be deemed necessary;
and
(e) Exercise such other powers and perform such other
duties and functions as may be prescribed by law or
ordinance.
SECTION 432. SangguniangKabataan Secretary. - The
sangguniang kabataan secretary shall:
(a) Keep all records of the katipunan ng kabataan and
sangguniang kabataan;
(b) Prepare and keep the minutes of all meetings of the
katipunan ng kabataan and sangguniang kabataan;
(c) Prepare all forms necessary for the conduct of
registrations, elections, initiatives, referenda, or
plebiscites, in coordination with the barangay
secretary and the COMELEC; and
(d) Perform such other duties and discharge such
other functions as the chairman of the sangguniang
kabataan may prescribe or direct.
SECTION 433. SangguniangKabataan Treasurer. - The

sangguniang kabataan treasurer shall:
(a) Take custody of all sangguniang kabataan property
and funds not otherwise deposited with the city or
municipal treasurer;
(b) Collect and receive contributions, monies,
materials, and all other resources intended for the
sangguniang kabataan and the katipunan ng
kabataan;
(c) Disburse funds in accordance with an approved
budget of the sangguniang kabataan;
(d) Certify to the availability of funds whenever
necessary;
(e) Submit to the sangguniang kabataan and to the
sangguniang barangay certified and detailed
statements of actual income and expenditures at the
end of every month, and
(f) Perform such other duties and discharge such other
functions as the chairman of the sangguniang
kabataan may direct.
SECTION 434. Privileges of Sangguniang Kabataan
Officials. - The sangguniang kabataan chairman shall
have the same privileges enjoyed by other
sangguniang barangay officials under this Code
subject to such requirements and limitations provided
herein. During their incumbency, sangguniang
kabataan officials shall be exempt from payment of
tuition and matriculation fees while enrolled in public
tertiary schools, including state colleges and
universities. The National Government shall
reimburse said college or university the amount of the
tuition and matriculation fees: Provided, That, to
qualify for the privilege, the said officials shall enroll
in a state college or university within or nearest their
area of jurisdiction.
SECTION 435. Succession and Fillingof Vacancies. - (a)

In case a sangguniang kabataan chairman refuses to
assume office, fails to qualify, is convicted of a felony,
voluntarily resigns, dies, is permanently incapacitated,
is removed from office, or has been absent without
leave for more than three (3) consecutive months, the
sanggunlang kabataan member who obtained the next
highest number of votes in the election immediately
preceding shall assume the office of the chairman for
the unexpired portion of the term, and shall discharge
the powers and duties, and enjoy the rights and
privileges appurtenant to the office. In case the said
member refuses to assume the position or fails to
qualify, the sangguniang kabataan member obtaining
the next highest number of votes shall assume the
position of the chairman for the unexpired portion of
the term.
(b) Where two (2) or more sangguniang kabataan
members obtained the same next highest number of
votes, the other sangguniang kabataan members shall
conduct an election to choose the successor to the
chairman from among the said members.
(c) After the vacancy shall have been filled, the
sangguniang kabataan chairman shall call a special
election to complete the membership of said
sanggunian. Such sangguniang kabataan member
shall hold office for the unexpired portion of the term
of the vacant seat.
(d) In case of suspension of the sangguniang kabataan
chairman, the successor, as determined in subsections
(a) and (b) of this section shall assume the position
during the period of such suspension.
The question of the age qualification is a question of

eligibility. Being "eligible" means being "legally qualified; capable of
being legally chosen." Ineligibility, on the other hand, refers to the
lack of the qualifications prescribed in the Constitution or the statutes
for holding public office. Ineligibility is not one of the grounds

12
enumerated in Section 435 for succession of the SK Chairman.Z
Chapter IX
Pederasyon ng mga Sangguniang Kabataan
SECTION 436. Pederasyon ng mga *Sangguniang
Kabataan. - (a) There shall be an organization of all
the pederasyon ng mga sangguniang kabataan to be
known as follows:
(1) In municipalitiespambayang
kabataan;
(2) In cities, panlungsod na pederasyon
ng mga sangguniang kabataan;
(3) In provinces, panlalawigang
kabataan;
(4) In special metropolitan political
subdivisions, pangmetropolitang
kabataan; and
(5) On the national level, pambansang
kabataan.
(b) The pederasyon ng mga sangguniang kabataan
shall, at all levels, elect from among themselves the
president, vice-president and such other officers as
may be necessary and shall be organized in the
following manner:
(1) The panlungsod and pambayang
pederasyon shall be composed of the
sangguniangkabataan chairmen of
n2 Garvida v. Sales, G.R. No. 124893, April 18,1997.

barangays in the city or municipality,

respectively;
(2) The panlalawigang pederasyon
shall be composed of presidents of the
panlungsod and pambayang
pederasyon;
(3) The pangmetropolitang pederasyon
shall be composed of presidents of the
panlungsod and pambayang
pederasyon;
(c) The elected presidents of the pederasyon at the
provincial, highly urbanized city, and metropolitan
political subdivision levels shall constitute the
pambansang katipunan ng mga sangguniang
kabataan.
SECTION 437. Constitution and By-Laws. - The term
of office, manner of election, removal and suspension
of the officers of the pederasyon ng mga sangguniang
kabataan at all levels shall be governed by the
constitution and by-laws of the pederasyon in
conformity with the provisions of this Code and
national policies on youth.
SECTION 438. Membership in the Sanggunian. - (a) A
sangguniang kabataan chairman shall, upon
certification of his election by the COMELEC and
during his tenure of office is elected as pederasyon
president, serve as an ex officio member of the
sangguniang panlalawigan, sangguniang panlungsod,
and sangguniang bayan, as the case may be, without
need of further appointment.
(b) The vice-president of the pederasyon whose
president has been elected as president of a higher
pederasyon shall serve as ex officio member of the
sanggunian concerned without need of further
appointment.
(c) The pederasyon president or vice-president, as the

case may be, shall be the chairman of the committee
on youth and sports development of the sanggunian
concerned.
The President of the Pederasyon ng mga Sangguniang

Kabataan, which is composed of the SK chairmen of the sangguniang
kabataan of the barangays in the province, city, or municipality, is an
ex officio member of the Sangguniang Panlalawigan, Sangguniang
13
Panlungsod, and Sangguniang Bayan.
Chapter X
Linggo ng Kabataan
SECTION 439. Observance of Linggo ng Kabataan. - (a)
Every barangay, municipality, city and province shall,
in coordination with the pederasyon ng mga
sangguniang kabataan at all levels, conduct an annual
activity to be known as the Linggo ng Kabataan on
such date as shall be determined by the Office of the
President.
(b) The observance of the Linggo ng Kabataan shall
include the election of the counterparts of all local
elective and appointive officials, as well as heads of
national offices or agencies stationed or assigned in
the territorial jurisdiction of the local government unit,
among in-school and community youth residing in the
local government unit concerned from ages thirteen
(13) to seventeen (17). During said week, they shall
hold office as boy and girl officials and shall perform
such duties and conduct such activities as may be
provided in the ordinance enacted pursuant to this
Chapter.
Associated Labor Unions v. Letrondo-Montejo, G.R. No. 111988, October 14,1994.

+(,121/,1(
Citation:
Tue Apr 17 11:22:05 2018



Title II
THE MUNICIPALITY
Chapter I
Role and Creation of the Municipality
SECTION 440. Role of the Municipality. - The
municipality, consisting of a group of barangays,
serves primarily as a general purpose government for
the coordination and delivery of basic, regular and
direct services and effective governance of the
inhabitants within its territorial jurisdiction.
SECTION 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
directly affected. Except as may otherwise be
provided in the said Act, the plebiscite shall be held
of its effectivity.
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
(P2,500,000.00) for the last two (2) consecutive years
based on the 1991 constant prices; a population of at
least twenty-five thousand (25,000) inhabitants as
certified by the National Statistics Office; and a
contiguous territory of at least fifty (50) square
kilometers as certified by the Lands Management
Bureau: Provided, That the creation thereof shall not
reduce the land area, population or income of the
original municipality or municipalities at the time of
said creation to less than the minimum requirements
prescribed herein.
(b) The territorial jurisdiction of a newly-created

municipality shall be properly identified by metes and
bounds. The requirement on land area shall not apply
where the municipality proposed to be created is
composed of one (1) or more islands. The territory
need not be contiguous if it comprises two (2) or more
islands.
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.
Chapter II
Municipal Officials in General
SECTION 443. Officials of the Municipal Government. -
(a) There shall be in each municipality a municipal
mayor, a municipal vice-mayor, sangguniang bayan
members, a secretary to the sangguniang bayan, a
municipal treasurer, a municipal assessor, a municipal
accountant, a municipal budget officer, a municipal
planning and development coordinator, a municipal
engineer/building official, a municipal health officer
and a municipal civil registrar.
The mayor shall appoint the head of a department or office in

the municipal government, such as the Municipal Budget Officer,
with the concurrence of the majority of all Sangguniang Bayan
members and subject to civil service law, rules and regulations. The
appointment should be submitted to the Sangguniang Bayan for its
concurrence and the concurrence of the Sanggunian should be
obtained. Such factual finding of quasi-judicial agencies, especially if
adopted and affirmed by the Court of Appeals, is deemed final and
conclusive and may not be reviewed on appeal by the Supreme
Court.
A verbal concurrence allegedly given by the Sanggunian is
not the concurrence required and envisioned under the law. The
Sanggunian acts through a resolution or an ordinance. Absent such
resolution of concurrence, the appointment of petitioner failed to
comply with the mandatory requirement of Section 443 (a) and (d).
Without a valid appointment, petitioner acquired no legal title to the
Office of Municipal Budget Officer, even if she had served as such for
4
ten years.'
(b) In addition thereto, the mayor may appoint a

municipal administrator, a municipal legal officer, a
municipal agriculturist, a municipal environment and
natural resources officer, a municipal social welfare
and development officer, a municipal architect, and a
municipal information officer.
(c) The sangguniang bayan may:
(1) Maintain existing offices not
mentioned in subsections (a) and (b)
hereof;
(2) Create such other offices as may be
necessary to carry out the purposes of
the municipal government; or
(3) Consolidate the functions of any
office with those of another in the
interest of efficiency and economy.
74 Montuerto v. Ty, G.R. No. 177736, October 6,2008.

(d) Unless otherwise provided herein, heads of

departments and offices shall be appointed by the
municipal mayor with the concurrence of the majority
of all the sangguniang bayan members, subject to civil
service law, rules and regulations. The sangguniang
bayan shall act on the appointment within fifteen (15)
days from the date of its submission; otherwise, the
same shall be deemed confirmed.7' 5
(e) Elective and appointive municipal officials shall
receive such compensation, allowances and other
emoluments as may be determined by law or
ordinance, subject to the budgetary limitations on
personal services as prescribed in Title Five, Book Two
of this Code: Provided, That no increase in
compensation of the mayor, vice-mayor, and
sangguniang bayan members shall take effect until
after the expiration of the full term of all the elective
local officials approving such increase.
Chapter HI
Officials and Offices Common to all Municipalities
Article I
The Municipal Mayor
SECTION 444. The Chief Executive: Powers, Duties,
Functions and Compensation. - (a) The municipal
mayor, as the chief executive of the municipal
government, shall exercise such powers and performs
such duties and functions as provided by this Code
and other laws.
715If it is not claimed that respondent was a head of department or office in the office
of petitioner, then following Section 444(5), which empowers a mayor is empowered
to "[a]ppoint all officials whose salaries and wages are wholly or mainly paid out of
municipal funds and whose appointments are not otherwise provided for in this
Code, as well as those he may be authorized by law to appoint," former Mayor
Camero did not have to secure the concurrence of the Sangguniang Bayan to
terminate respondent's services. See Municipality of La Libertad v. Penaflor, G.R.
No. 155477, March 18,2005.
(b) For efficient, effective and economical governance

the purpose of which is the general welfare of the
municipality and its inhabitants pursuant to Section 16
of this Code, the municipal mayor shall:
(1) Exercise general supervision and
control over all programs, projects,
services, and activities of the municipal
government, and' in this connection,
shall:
(i) Determine the
guidelines of municipal
policies and be
responsible to the
sangguniang bayan for
the program of
government;
(ii) Direct the
formulation of the
municipal development
plan, with the assistance
of the municipal
development council,
and upon approval
thereof by the
sangguniang bayan,
implement the same;
(iii) At the opening of
the regular session of the
sangguniang bayan for
every calendar year and,
as may be deemed
necessary, present the
program of government
and propose policies
and projects for the
consideration of the
sangguniang bayan as
the general welfare of

the inhabitants and the
needs of the municipal
government may
require;
(iv) Initiate and propose
legislative measures .to
the sangguniang bayan
and, from time to time
as the situation may
require, provide such
information and data
needed or requested by
said sanggunian in the
performance of its
legislative functions;
(v) Appoint all officials
and employees whose
salaries and wages are
wholly or mainly paid
out of municipal funds
and whose
appointments are not
otherwise provided for
in this Code, as well as
those he may be
authorized by law to
appoint;
The power to appoint is vested in the office of the chief

executive and not in the person occupying the position. The local
chief executive exercises such power in his official capacity. The
appointing authority who has the right to assail the invalidation of
the appointment is the mayor occupying the position at the time of
the institution of the appeal and not the former mayor who made the
assailed appointment.71 6
7
l Nazareno v. City of Dumaguete, G.R. No. 168484, July 12,2007.
A municipal mayor may appeal a decision of the Court of

Appeals reversing the dismissal of officials the municipality because
of two reasons. The first reason is his power to appoint officials and
employees of his municipality. According to the Supreme Court, the
selection of the appointee is the prerogative of the appointing
authority. The second reason is because the salaries of the
respondents, being municipal officials, are drawn from the municipal
funds. Obviously, the mayor has real and substantial interest in the
7
outcome of the administrative cases against respondents.71
(vi) Upon authorization

by the sangguniang
bayan, represent the
municipality in all its
business transactions
and sign on its behalf all
bonds, contracts, and
obligations, and such
other documents made
pursuant to law or
ordinance;
Section 444 (b) (1) (vi) shows that while the authorization of
the municipal mayor need not be in the form of an ordinance, the
obligation which said local executive is authorized to enter into must
be made pursuant to a law or ordinance.718
(vii) Carry out such

emergency measures as
may be necessary during
and in the aftermath of
man-made and natural
disasters and calamities;
7
7 Dagadag v. Tongnawa, G.R. No. 161166-67, February 3,2005.
718
Land Bank of the Philippines v. Cacayuran, G.R No. 191667, April 17,2013.
(viii) Determine,
according to law or
ordinance, the time,
manner and place of
payment of salaries or
wages of the officials
and employees of the
municipality;
(ix) Allocate and assign
office space to municipal
and other officials and
employees who, by law
or ordinance, are
entitled to such space in
the municipal hall and
other buildings owned
or leased by the
municipal government;
(x) Ensure that all
executive officials and
employees of the
municipality faithfully
discharge their duties
and functions as
provided by law and
this Code, and cause to
be instituted
administrative or
judicial proceedings
against any official or
employee of the
municipality who may
have committed an
offense in the
performance of his
official duties; 19
(xi) Examine the books,
records and other
documents of all offices,
officials, agents or
employees of the
municipality and in aid
of his executive powers
and authority, require
all national officials and
employees stationed in
or assigned to the
municipality to make
available to him such
books, records, and
other documents in their
custody, except those
classified by law as
confidential;
(xii) Furnish copies of
executive orders issued
by him to the provincial
governor within
seventy-two (72) hours
after their issuance:
Provided, That
municipalities of
Metropolitan Manila
Area and that of any
metropolitan political
subdivision shall furnish
copies of said executive
orders to the
79 Under Section 444 (b) (x), a municipal mayor has to enforce decisions or final
resolutions, orders or rulings of the Civil Service Commission. See Velasco v.
Sandiganbayan, G.R. No. 160991, February 28, 2005.
metropolitan authority
council chairman and to
the Office of the
President;
(xiii) Visit component
barangays of the
municipality at least
once every six .(6)
months to. deepen his
understanding of
problems and conditions
therein, listen and give
appropriate counsel to
local officials and
inhabitants, inform the
component barangay
officials and inhabitants
of general laws and
ordinances which
.especially concern them,
and otherwise conduct
visits and inspections to
the end that the
governance of the
municipality will
improve the quality of
life of the inhabitants;
(xiv) Act on leave
applications of officials
and employees
appointed by him and
the commutation of the
monetary value of leave
credits according to law;
(xv) Authorize official
trips outside of the
municipality of
municipal officials and
employees for a period

not exceeding thirty (30)
days;
(xvi) Call upon any
national official or
employee stationed in or
assigned to the
municipality to advise
him on matters affecting
the municipality and to
make recommendations
thereon, or to coordinate
in the formulation and
implementation of
plans, programs and
projects, and when
appropriate, initiate an
administrative or
judicial action against a
national government
official or employee who
may have committed an
offense in the
performance of his
official duties while
stationed in or assigned
to the local government
unit concerned;
(xvii) Subject to
availability of funds,
authorize payment of
medical care, necessary
transportation,
subsistence, hospital or
medical fees of
municipal officials and
employees who are
injured while in the
performance of their
official duties and
functions;
(xviii) Solemnize
marriages, any
provision of law to the
contrary
notwithstanding;
(xix) Conduct a palarong
bayan, in coordination
with the Department of
Education, Culture and
Sports, as an annual
activity which shall
feature traditional sports
and disciplines included
in national and
international games; and
(xx) Submit to the
provincial governor the
following reports: an
annual report containing
a summary of all matters
pertaining to the
management,
administration and
development of the
municipality and all
relative to its political,
social and economic
conditions; and
supplemental reports
when unexpected events
and situations arise at
any time during the
year, particularly when
man-made or natural
disasters or calamities
affect the general
welfare of .the
municipality, province,
region or country.
Mayors of municipalities
of the Metropolitan
Manila Area and other
subdivisions shall
submit said reports to
their respective
metropolitan council
chairmen and to the
Office of the President;
relative to the governance of the
municipality and the exercise of its
corporate powers provided for under
Section 22 of this Code, implement all
approved policies, programs, projects,
services and activities of the
municipality and, in addition to the
foregoing, shall:
(i) Ensure that the acts of
the municipality's
component barangays
and of its officials and
employees are within
the scope of their
prescribed powers,
functions, duties and
responsibilities;
(ii) Call conventions,
conferences, seminars or
meetings of any elective
and appointive officials
of the municipality,
including provincial
officials and national
officials and employees
to the municipality at
such time and place and
on such subject as he
may deem important for
the promotion of the
general welfare of the
local government unit
and its inhabitants;
(iii) Issue such executive
orders as are necessary
for the proper
enforcement and
execution of laws and
ordinances;
(iv) Be entitled to carry
the necessary firearm
within his territorial
jurisdiction;
(v) Act as the deputized
representative of the
National Police
Commission, formulate
the peace and order plan
of the municipality and
upon its approval,
implement the same and
exercise general and
operational control and
supervision over the
local police forces in the
municipality in
accordance with R.A.
No 6975;
(vi) Call upon the

appropriate law
enforcement agencies to
suppress disorder, riot,
lawless violence,
rebellion or sedition or
to apprehend violators
of the law when public
interest so requires and
the municipal police
forces are inadequate to
cope with the situation
or the violators;
The Supreme Court rejected the argument that the death of a

person under his custody was committed in performance of the
mayor's responsibility to maintain peace and order on the pretext
that the victim, a robbery and NPA suspect, was under investigation
at the time when he was allegedly killed at the police station. By no
stretch of the imagination or logic, can we construe that the alleged
act falls under any of the functions of the municipal mayor as
enumerated under Section 444 of the Local Government Code of 1991
or implied therefrom. 20
(3) Initiate and maximize the

generation of resources and revenues,
and apply the same to the
implementation of development plans,
program objectives and priorities as
provided for under Section 18 of this
Code, particularly those resources and
revenues programmed for agro-
industrial development and country-
wide growth and progress, and relative
thereto, shall:
2
o Natividad v. Felix, G.R. No. 111616, February 4,1994.
(i) Require each head of

an office or department
to prepare and submit
an estimate of
appropriations for the
ensuing calendar year,
in accordance with the
budget preparation
process under Title Five,
(ii) Prepare and submit
to the sanggunian for
approval the executive
and supplemental
budgets of the
municipality for the
ensuing calendar year in
the manner provided for
under Title Five, Book II
of this Code;
(iii) Ensure that all taxes
and other revenues of
the municipality are
collected, and that
municipal funds are
applied in accordance
with law or ordinance to
the payment of expenses
and settlement of
obligations of the
municipality;
(iv) Issue licenses and
permits and suspend or
revoke the same for any
violation of the
conditions upon which
said licenses or permits
had been issued,
pursuant to law or
ordinance;
Section 444 (b) (3) (iv) is a manifestation of the delegated

police power of a municipal corporation. Necessarily, the exercise of
that power cannot be deemed ministerial. As to the question of
whether the power is validly exercised, the matter is within the
province of a writ of certiorari, but certainly, not of mandamus.7Z
(v) Issue permits,

without need of
approval therefor from
any national agency, for
the holding of activities
for any charitable or
welfare purpose,
excluding prohibited
games of chance or
shows contrary to law,
public policy and public
morals;
In the case of Olivarez v. Sandiganbayan,M the Court found

that probable cause exists to warrant the filing of charges against the
Municipal Mayor for a violation of the Anti-Graft and Corrupt
Practices Act for unreasonably refusing to issue a mayor's permit.
(vi) Require owners of

illegally 'constructed
houses, buildings or
other structures to
obtain the necessary
721
Roble Arrastre, Inc. v. Villaflor, G.R. No. 128509, August 22, 2006; Rimando v.
Naguilian Emission Testing Center, G.R' No. 198860, July 23,2012.
7M G.R. No. 118533, October 4,1995.
permit, subject to such

fines and penalties as
may be imposed by law
or ordinance, or to make
necessary changes in the
construction of the same
when said construction
violates any law or
ordinance, or to order
the demolition or
removal of said house,
building or structure
within the .period
prescribed by law or
ordinance;
(vii) Adopt adequate
measures to safeguard
and conserve land,
mineral, marine, forest,
and other resources of
the municipality;
(viii) Provide efficient
and effective property
and supply management
in the municipality; and
protect the funds,
credits, rights and other
properties. of the
municipality; and
(ix) Institute or cause to
be instituted
administrative or
judicial proceedings for
violation of ordinances
in the collection of taxes,
fees or charges, and for
the recovery of funds
and property; and cause
the municipality to be
defended against all
suits to ensure that its
interests, resources and
rights shall be
adequately protected;
The Mayor is tasked to enforce all laws and ordinances

relative to the governance of the municipality and to implement all
approved programs, projects, services and activities of the
municipality. He should ensure that all taxes and other revenues of
the municipality are collected and is obliged to institute or cause to
be instituted administrative or judicial proceedings for the recovery
of funds and property. However, in the performance of his duties, he
should act within the confines of the law and not resort to the
commission of a felony and must exercise his power and perform his
duties in accordance with law, with strict observance of the rights of
the people, and never whimsically, arbitrarily and despotically. In
Maderazo v. Peoplem the Supreme Court upheld a Sandiganbayan
ruling that Mayor Maderazo had no authority to padlock, open and
inventory the contents of a market stall and to take the same to the
police station. Although he had the power to cancel the lease
contract, as Mayor, he could not eject the lessee by padlocking the
market stall and order the hauling and seizure of the goods
contained therein. The municipality has remedies in cases where
there is delinquency in the payment of fees and rentals which are
provided in the Local Government Code.
(4) Ensure the delivery of basic services

and the provision of adequate facilities
as provided for under Section 17 of this
Code and, in addition thereto, shall:
(i) Ensure that the
construction and repair
of roads and highways
m G.R. No. 165065, September 26,2006.

funded by the National

Government shall be, as
far as practicable,
carried out in a spatially
contiguous manner and
in coordination with the
of the roads and bridges
of the municipality and
the province; and
(ii) Coordinate the
implementation of
technical services
rendered by national
and provincial offices,
including public works
and infrastructure
programs in the
municipality; and
or ordinance.
(c) During his incumbency, the municipal mayor shall
hold office in the municipal hall.
(d) The municipal mayor shall receive a minimum
monthly compensation corresponding to Salary Grade
twenty-seven (27) as prescribed under R.A. No. 6758
and the implementing guidelines issued pursuant
thereto. 724
24
Presidential Decree No. 1606 (1978), as amended, did not expressly include the
position of Municipal Mayor among those within the Sandiganbayan's exclusive and
original jurisdiction. Under Republic Act No. 6758 (1989), the Department of Budget
and Management prepared the Index of Occupational Services, Position Titles and
Salary Grades where the position of Municipal Mayor was assigned Salary Grade 27.
Section 444 (d) "is confirmatory of the Salary Grade assigned by the DBM to
Municipal Mayors, and should thus lay the matter of the Sandiganbayan's
Article II
The Vice-Mayor
SECTION 445. Powers, Duties and Compensation. (a)
The vice-mayor shall:
(1) Be the presiding officer of the
sangguniang bayan and sign all
warrants drawn on the municipal
treasury for all expenditures
appropriated for the operation of the
sangguniang bayan;
(2) Subject to civil service law, rules
and regulations, appoint all officials
and employees of the sangguniang
bayan, except those whose manner of
appointment is specifically provided in
this Code;
(3) Assume the office of the municipal
mayor for the unexpired term of the
latter im the event of permanent
vacancy as provided for in Section 44,
Book I of this Code;
(4) Exercise the powers and perform
the duties and functions of the
municipal mayor in cases of temporary
Book I of this Code; and
or ordinance.
jurisdiction over petitioner Mayor to rest." See Rodrigo Jr. v. Sandiganbayan, G.R.
No. 125498, July 2,1999.
(b) The vice-mayor shall receive a monthly

compensation corresponding to Salary Grade twenty
five (25) as prescribed under R.A. No. 6758 and the
implementing guidelines issued pursuant thereto.
Article III
The Sangguniang Bayan
SECTION 446. Composition. - (a) The sangguniang
bayan, the legislative body of the municipality, shall
be composed of the municipal vice mayor as the
presiding officer, the regular sanggunian members,
the president of the municipal chapter of the liga ng
mga barangay, the president of the pambayang
pederasyon ng mga sangguniang kabataan, and the
sectoral representatives, as members.
(b) In addition thereto, there shall be three (3) sectoral
representatives: one (1) from the women; and as shall
be determined by the sanggunian concerned within
ninety (90) days prior to the holding of local elections,
one (1) from the agricultural or industrial workers,
and one (1) from other sectors, including the urban
poor, indigenous cultural communities, or disabled
persons.
(c) The regular members of the sangguniang bayan
and the sectoral representatives shall be elected in the
manner as may be provided for by law.
Compensation. - (a) The sangguniang bayan, as the
legislative body of the municipality, shall enact
ordinances, approve resolutions and appropriate
funds for the general welfare of the municipality and
its inhabitants pursuant to Section 16 of this Code and
in the proper exercise of the corporate powers of the
municipality as provided for under Section 22 of this
Code, and shall:
(1) Approve ordinances and pass

resolutions necessary for an efficient
and effective municipal government,
and in this connection shall:
(i) Review all ordinances
approved by the
sangguniang barangay
and executive orders
issued by the punong
barangay to determine
whether these are within
the scope of the
prescribed powers of the
sanggunian and of the
punong barangay;
(ii) Maintain peace and
order by enacting
measures to prevent and
suppress lawlessness,
disorder, riot, violence,
rebellion or sedition and
impose penalties for the
violation of said
ordinances;
(iii) Approve ordinances
imposing a fine not
exceeding Two
thousand five hundred
pesos (P2,500.00) or an
imprisonment for a
period not exceeding six
(6) months, or both in
the discretion of the
court, for the violation of
a municipal ordinance;
(iv) Adopt measures to
protect the inhabitants
of the municipality from

the harmful effects of
man-made or natural
disasters and calamities
and to provide relief
services and assistance
for victims during and
in the aftermath of said
and their return to
productive livelihood
following said events;
(v) Enact ordinances
intended to prevent,
suppress and impose
appropriate penalties for
habitual drunkenness in
public places,
vagrancy,
mendicancy,
prostitution,
establishment and
maintenance of houses
of ill repute, gambling
and other prohibited
games of chance,
fraudulent devices and
ways to obtain money or
property, drug
addiction, maintenance
of drug dens, drug
pushing, juvenile
M Republic Act No. 10158 (2012) amended the Revised Penal Code and
decriminalized vagrancy. Under the amendment, all pending cases under Article 202
of the Revised Penal Code on vagrancy prior shall be dismissed and all persons
serving sentence for violation of the provisions of Article 202 of the Revised Penal
Code on vagrancy shall be immediately released. This does not preclude the
municipality from penalizing vagrancy under Section 447. Cities (Section 458) and
provinces (Section 468) may also penalize vagrancy.
delinquency, the
printing, distribution or
exhibition of obscene or
pornographic materials
or publications, and
such other activities
inimical to the welfare
and morals of the
inhabitants of the
municipality;
(vi) Protect the
environment and
impose appropriate
penalties for acts which
endanger the
environment, such as
dynamite fishing and
other forms of
destructive fishing,
illegal logging and
smuggling of logs,
smuggling of natural
resources products and
of endangered species of
flora and fauna, slash
and burn farming, and
which result in
pollution, acceleration of
eutrophication of rivers
and lakes, or of
ecological imbalance;
(vii) Subject to the
provisions of this Code
and pertinent laws,
determine the powers
and duties of officials

municipality;
(viii) Determine the
positions and salaries,
wages, allowances and
other emoluments and
benefits of officials and
employees paid wholly
or mainly from
municipal funds and
provide for
for the proper conduct
of programs, projects,
services, and activities of
the municipal
government;
(ix) Authorize the
payment of
compensation to a
qualified person not in
the government service
who fills up a temporary
vacancy or grant
honorarium to any
qualified official or
employee designated to
fill a temporary vacancy
in a concurrent capacity
at the rate authorized by
law;
(x) Provide a mechanism
and the appropriate
funds therefor, to ensure
the safety and protection
of all municipal
government property,
public documents, or
records such as those

relating to property
inventory, land
ownership, records of
births, marriages,
deaths, assessments,
taxation, accounts,
business permits, and
such other records and
documents of public
interest in the offices
and departments of the
municipal government;
(xi) When the finances of
the municipal
government allow,
provide for additional
allowances and other
benefits to judges,
prosecutors, public
elementary and high
school teachers, and
other national
government officials
to the municipality;
The power of local governments to grant allowances and

other benefits to judges and other national officials stationed in their
respective territories is expressly provided for in Sections 447 (a) (1)
26
(xi), 458 (a) (1) (xi) and 468 (a) (1) (xi) of the Code.M
(xii) Provide for legal

assistance to barangay
officials who, in the
726 Leynes v. Commission on Audit, G.R. No. 143596, December 11, 2003.
official duties or on the
occasion thereof, have to
initiate judicial
proceedings or defend
themselves against legal
action; and
(xiii) Provide for group
insurance or additional
insurance coverage for
barangay officials,
including members of
barangay tanod brigades
and other service units,
with public or private
insurance companies,
when the finances of the
municipal government
allow said coverage.
(2) Generate and maximize the use of
resources and revenues for the
development plans, program objectives
and priorities of the municipality as
Code with particular attention to agro-
industrial development and
countryside growth and progress, and
relative thereto, shall:
(i) Approve the annual
and supplemental
budgets of the
and appropriate funds
for specific programs,
projects, services and
activities of the
municipality, or for
other purposes not
contrary to law, in order

to promote the general
welfare of the
municipality and its
inhabitants;
(ii) Subject to the
provisions of Book II of
this Code and applicable
laws and upon the
majority vote of all the
members of the
sangguniang bayan,
enact ordinances levying
taxes, fees and charges,
prescribing the rates
thereof for general and
specific purposes, and
granting tax exemptions,
incentives or reliefs;
this Code and upon the
members of the
sangguniang bayan,
authorize the municipal
mayor to negotiate and
contract loans and other
forms of indebtedness;
(iv) Subject to the
laws and upon the
members of the
sangguniang bayan,
enact ordinances
authorizing the floating

of bonds or other
instruments of
indebtedness, for the
purpose of raising funds
to finance development
projects;
(v) Appropriate funds
for the construction and
maintenance or the
rental of buildings for
the use of the
municipality and, upon
the majority vote of all
the members of the
sangguniang bayan,
authorize the municipal
mayor to lease to private
parties such public
buildings held in a
proprietary capacity,
subject to existing laws,
rules and regulations;
(vi) Prescribe reasonable
limits and restraints on
the use of property
within the jurisdiction of
the municipality:
(vii) Adopt a
comprehensive land use
plan for the
municipality: Provided,
That the formulation,
adoption, or
modification of said
plan shall be in
coordination with the
approved provincial

plan;
(viii) Reclassify land
the municipality, subject
to the pertinent
provisions of this Code;
The Sangguniang Bayan or the Municipal Council, as the

legislative body of the municipality, has the power to enact
ordinances for the general welfare of the municipality and its
inhabitants. This power was illustrated in the case of United BF
Homeowner's Association v. City Mayor, 7 which involves a municipal
ordinance reclassifying El Grande and Aguirre Avenues in BF
Homes Paraftaque as commercial zones. The Court upheld the
superiority of police power over the non-impairment clause and
ruled that the constitutional guaranty of non-impairment of contracts
is limited by the exercise of the police power of the State, in the
interest of public health, safety, morals and general welfare.
(ix) Enact integrated

zoning ordinances in
consonance with the
approved
plan, subject to existing
laws, rules and
regulations; establish
fire limits or zones,
particularly in populous
centers; and regulate the
construction, repair or
modification of
buildings within said
fire limits or zones in
W G.R. No. 141010, February 7,2007.

accordance with the

provisions of the Fire
Code;
(x) Subject to national
law, process and
approve subdivision
plans for residential,
commercial, or
industrial purposes and
other development
purposes, and collect
processing fees and
other charges, the
proceeds of which shall
accrue entirely to the
municipality: Provided,
however, That, where
approval by a national
agency or office is
required, said approval
shall not be withheld for
more than thirty (30)
days from receipt of the
application. Failure to
act on the application
within the period stated
above shall be deemed
as approval thereof;
(xi) Subject to the
this Code, grant the
exclusive privilege of
constructing fish corrals
or fish pens, or the
taking or catching of
bangus fry, prawn fry or
kawag-kawag of fry of
any species or fish
within the municipal

waters;
(xii) With the
concurrence of at least
two-thirds (2/3) of all
the members of the
sangguniang bayan,
grant tax exemptions,
incentives or reliefs to
entities engaged in
community growth-
inducing industries,
subject to the provisions
of Chapter 5, Title I,
Book II of this Code.
(xiii) Grant loans or
provide grants to other
local government units
or to national, provincial
and municipal
charitable, benevolent or
educational institutions:
Provided, That said
institutions are operated
and maintained within
the municipality;
(xiv) Regulate the
numbering of
residential, commercial
and other buildings; and
(xv) Regulate the
inspection, weighing
and measuring of
articles of commerce.
(3) Subject to the provisions of Book II
of this Code, grant franchises, enact
ordinances authorizing the issuance of
permits or licenses, or enact ordinances

levying taxes, fees and charges upon
such conditions and for such purposes
intended to promote the general
welfare of the inhabitants of the
municipality, and pursuant to this
legislative authority shall:
(i) Fix and impose
reasonable fees and
charges for all services
rendered by the
to private persons or
entities;
•(ii) Regulate any
business, occupation, or
practice of profession or
calling which does not
require government
examination within the
municipality and the
conditions under which
the license for said
business or practice of
profession may be
issued or revoked;
(iii) Prescribe the terms
and conditions under
which public utilities
owned by the
municipality shall be
operated by the
or leased to private
persons or entities,
preferably cooperatives;
(iv) Regulate the display
of and fix the license
fees for signs,

signboards, or billboards
at the place or places
where the profession or
business advertised
thereby is, in whole or in
part, conducted;
(v) Any law to the
contrary
notwithstanding,
authorize and license the
establishment,
operation, and
maintenance of cockpits,
and regulate
cockfighting and
commercial breeding of
gamecocks: Provided,
That existing rights
should not be
prejudiced;
If there is no ordinance allowing the operation of a cockpit,

Resolution No. 049, S. 1998, authorizing petitioner to establish,
operate and maintain a cockpit in Bula, Camarines Sur cannot be
implemented. The mayor cannot be compelled to issue a permit
without such ordinance because it would violate the provisions of
Section 447 and would also be an undue encroachment on
respondent's administrative prerogatives.7m Similarly, if no public
bidding was conducted for the operation of a cockpit, a person
cannot claim that he was duly authorized by the Sangguniang Bayan
to operate his cockpit in the municipality. The Sangguniang Bayan
had every reason to suspend the operation of petitioner's cockpit by
enacting Municipal Resolution No. 065, series of 1997. As the chief
executive of the municipal government, the mayor had a duty to
7
Canet v. Decena, G.R. No. 155344, January 20, 2004.
enforce the suspension of the operation of petitioner's cockpit

pursuant to the said Resolution.729
Section 447 (a) (3) (v) does not grant unlimited discretion to
the sanggunian to control all aspects of cockpits and cockfighting in
their respective jurisdiction. Otherwise, the national government
would be barred from imposing any future regulatory enactments
pertaining to cockpits and cockfighting.7 o
(vi) Subject to the

guidelines prescribed by
the Department of
Transportation and
Communications,
regulate the operation of
tricycles and grant
franchises for the
operation thereof within
the territorial
jurisdiction of the
municipality;
(vii) Upon approval by a
members of the
sangguniang bayan,
grant a franchise to any
person, partnership,
corporation, or
cooperative to establish,
construct, operate and
maintain ferries,
wharves, markets or
slaughterhouses, or such
other similar activities
within the municipality
as may be allowed by
729 Du v. Jayoma, G.R. No. 175042, April 23, 2012.

730
Tan v. Perefta, G.R. No. 149743, February 18, 2005.
applicable laws:
Provided, That
cooperatives shall be
given preference in the
grant of such a
franchise.
(4) Regulate activities relative to the
use of land, buildings and structures
within the municipality in order to
promote the general welfare and for
said purpose shall:
(i) Declare, prevent or
abate any nuisance;
(ii) Require that
buildings and the
premises thereof and
any land within the
municipality be kept
and maintained in a
sanitary condition;
impose penalties for any
violation thereof, or
upon failure to comply
with said requirement,
have the work done and
require the owner,
administrator or tenant
concerned to pay the
expenses of the same; or
require the filling up of
any land or premises to
a grade necessary for
proper sanitation;
(iii) Regulate the
disposal of clinical and
other wastes from
hospitals, clinics and
other similar
establishments;
(iv) Regulate the
establishment, operation
and maintenance of
cafes, •restaurants,
beerhouses, hotels,
motels, inns, pension
houses, lodging houses,
and other similar
establishments,
including tourist guides
and transports;
(v) Regulate the sale,
giving away or
dispensing of any
intoxicating malt, vino,
mixed or ferm ented
liquors at any retail
outlet;
(vi) Regulate the
establishment and
provide for the
inspection of steam
boilers or any heating
device in buildings and
the storage of
inflammable and highly
combustible materials
within the municipality;
(vii) Regulate the
establishment,
operation, and
maintenance of
entertainment or
amusement facilities,
including theatrical
performances, circuses,
billiards pools, public

dancing schools, public
dance halls, sauna baths,
massage parlors, and
other places of
entertainment or
amusement; regulate
such other events or
activities for amusement
or entertainment,
particularly those which
tend to disturb the
community or annoy the
inhabitants, or require
the suspension or
suppression of the same;
or prohibit certain forms
of amusement or
entertainment in order
to protect the social and
moral welfare of the
community;
(viii) Provide for the
impounding of stray
animals; regulate the
keeping of animals in
homes or as part of a
business, and the
slaughter, sale or
disposition of the same;
and adopt measures to
prevent and penalize
cruelty to animals; and
(ix) Regulate the
establishment,
operation, and
maintenance of funeral
parlors and the burial or
cremation of the dead,

(5) Approve ordinances which shall
ensure the efficient and effective
delivery of the basic services and
facilities as provided for under Section
17 of this Code, and in addition to said
services and facilities, shall:
(i) Provide for the
establishment,
maintenance, protection,
and conservation of
communal forests and
watersheds, tree parks,
greenbelts, mangroves,
and other similar forest
(ii) Establish markets,
slaughterhouses or
animal corrals and
authorize the operation
thereof, and regulate the
construction and
operation of private
markets, talipapas or
other similar buildings
and structures;
(iii) Authorize the
establishment,
maintenance and
operation of ferries,
wharves, and other
structures, and marine
and seashore or offshore
activities intended to
accelerate productivity;
(iv) Regulate the

preparation and sale of
meat, poultry, fish,
vegetables, fruits, fresh
dairy products, and
other foodstuffs for
public consumption;
(v) Regulate the use of
streets, avenues, alleys,
sidewalks, bridges,
places and approve the
construction,
improvement, repair
and maintenance of the
same; establish bus and
vehicle stops and
terminals or regulate the
use of the same by
privately-owned
vehicles which serve the
public; regulate garages
and the operation of
conveyances for hire;
designate stands to be
occupied by public
vehicles when not in
use; regulate the putting
up of signs, signposts,
awnings and awning
posts on the streets;
provide for the lighting,
cleaning and sprinkling
of streets and public
places;
(vi) Regulate traffic on
all streets and bridges,
prohibit the putting up
of encroachments or
obstacles thereon, and,
when necessary in the
interest of public
welfare, authorize the
removal of
encroachments and
illegal constructions in
public places;
(vii) Subject to existing
laws, provide for the
establishment,
operation, maintenance,
and repair of an efficient
waterworks system to
supply water for the
inhabitants; regulate the
construction,
maintenance, repair and
use of hydrants, pumps,
cisterns and reservoirs;
protect the purity and
quantity of the water
supply of the
municipality and, for
this purpose, extend the
coverage of appropriate
ordinances over all
territory within the
drainage area of said
water supply and within
one hundred (100)
meters of the reservoir,
conduit, canal,
aqueduct, pumping
station, or watershed
used in connection with
the water service; and
regulate the
consumption, use or
wastage of water;
(viii) Regulate the
drilling and excavation
of the ground for the
laying of water, gas,
sewer, and other pipes
and the construction,
repair and maintenance
of public drains, sewers,
cesspools, tunnels and
similar structures;
regulate the placing of
poles and the use of
crosswalks, curbs, and
gutters; adopt measures
to ensure public safety
against open canals,
manholes, live wires and
other similar hazards to
life and property; and
regulate the construction
and use of private water
closets, privies and other
similar structures in
buildings and homes;
(ix) Regulate the placing,
stringing, attaching,
installing, repair and
construction of all gas
mains, electric, telegraph
and telephone wires,
conduits, meters and
other apparatus; and,
provide for the
correction,
condemnation or
removal of the same
when found to be
dangerous, defective or
otherwise hazardous to
the welfare of the
inhabitants;
(x) Subject to the
availability of funds and
to existing laws, rules
and regulations,
establish and provide
for the operation of
vocational and technical
schools and similar post-
secondary institutions
and, with the approval
of the Department of
Sports, fix and collect
reasonable fees and
other school charges on
said institutions, subject
to existing laws on
tuition fees;
(xi) Establish a
scholarship fund for
poor but deserving
students residing within
the municipality in
schools located within
its jurisdiction;
(xii) Approve measures
and adopt quarantine
regulations to prevent
the introduction and
spread of diseases;
(xiii) Provide for an
efficient and effective
system of solid waste
and garbage collection

and disposal and
prohibit littering and the
placing or throwing of
garbage, refuse and
other filth and wastes;
(xiv) Provide for the care
of paupers, the aged, the
sick, persons of unsound
mind, disabled persons,
abandoned minors,
juvenile delinquents,
drug dependents,
abused children and
other needy and
disadvantaged persons,
particularly children
and youth below
eighteen (18) years of
age and, subject to
centers and facilities for
said needy and
disadvantaged persons;
(xv) Establish and
provide for the
maintenance and
improvement of jails
and detention centers,
institute sound jail
management programs,
for the subsistence of
detainees and convicted
prisoners in the
municipality;
(xvi) Establish a
municipal council
whose purpose is the
promotion of culture
and the arts, coordinate
with government
agencies and non-
governmental
organizations and,
subject to the availability
of funds, appropriate
funds for the support
and development of the
same; and
(xvii) Establish a
municipal council for
the orderly which shall
formulate policies and
adopt measures
mutually beneficial to
the elderly and to the
community; provide
incentives for non-
governmental agencies
and entities and, subject
to the availability of
funds, appropriate
funds to support
for the benefit of the
elderly; and
or ordinance.
(b) The members of the sangguniang bayan shall
receive a minimum monthly compensation
corresponding to Salary Grade twenty-four (24) as
prescribed under R.A. No. 6758 and the implementing

guidelines issued pursuant thereto: Provided, That, in
municipalities in Metropolitan Manila Area and other
metropolitan political subdivisions, members of the
sangguniang bayan shall receive a minimum monthly
compensation corresponding to Salary Grade twenty-
five (25).
Members of the municipal, city, and provincial councils are

conferred civil service eligibility under certain conditions:
..E, Cferifnet of -CinlVernnce Eligibilit.

ON: 1..A
,An, eligibility 1 equivalent to, a ~'Career Service,
Professional Eligibility is hereby conferred, upon, a
!member of the Sdngguniang Bayan, the Sargguiang
Panlungsod and the Sanggu-niang Panlalawigan who'
,has served for, an aggregate period of e (9) yeai
office: Provided, That such member must be a holder of
ia bachelor's degree.
'A member who has served for an aggregate "period ofj
isix (6) years shall be granted an eligibility equivalent,
to : Career Service Sub-Professional Eligibility
'Pr~vded,That such' member shall have at Ileast ea'rned,
Seventy-two (72) units in any baccalaureate degreej
program: Provided,finally, That the eligibility- granted'
under this section shall be considered appropnate for
isecond, and first level positions in the career service',
respectively, except those which require qualifications
In skills- or trade test and/or requiring board
examinations and other special eligibilities providedl
under svecial lawsZ 3 1
' Republic Act No. 10156 (2011).

+(,121/,1(
Citation:
Tue Apr 17 11:22:18 2018



Title III
THE CITY
Chapter I
Role and Creation of the City
SECTION 448. Role of the City. - The city, consisting
of more urbanized and developed barangays, serves
as a general purpose government for the coordination
and delivery of basic, regular, and direct services and
effective governance of the inhabitants within its
SECTION 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.
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
Bureau; or
(ii) a population of not less than one
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.
specific funds, transfers, and non-recurring income.
SECTION 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.
SECTION 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 within the latest annual income
of at least Fifty Million Pesos (P50,000,000.00) 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.
Section 12, Article X of the Constitution is explicit in that

aside from highly-urbanized cities, component cities whose charters
prohibit their voters from voting for provincial elective officials are
independent of the province. The same provision provides for other
component cities within the province whose charters do not provide
a similar prohibition. Necessarily, component cities like Ormoc City
whose charters prohibit their voters from voting for provincial
elective officials are treated like highly urbanized cities which are
outside the supervisory power of the province to which they are
geographically attached. This independence from the province
carries with it the prohibition or mandate directed to their registered
voters not to vote and be voted for the provincial elective offices. The
resolution in G.R. No. 80716 entitled "Peralta v. The Commission on
Elections" dated December 10, 1987 applies to this case. While the
cited case involves Olongapo City which is classified as a highly
urbanized city, the same principle is applicable.73 2
SECTION 453. Duty to DeclareHighly Urbanized Status.

- It shall be the duty of the President to declare a city
as highly urbanized within thirty (30) days after it
732 Abella v. Commission on Elections, G.R No. 100710, September 3,1991.

shall have met the minimum requirements prescribed

in the immediately preceding section, upon proper
application therefor and ratification in a plebiscite by
The Omnibus Election Code (Batas Pambansa Big. 881)
provides for the effects of being classified as a highly urbanized city:
SECTION 30. Coiponent a d higiy urbnmednctes.-a
~Unless their respectve charts provide oteiwse, the
electrat f cmpoinent cities ha etitle-d
a tovote
in tuhe election for proviial officils of the province
The electorate fitac y urbanizeda ctoe

in
the election for provincial officials of the provine
irn
which it is located: Provited, however, That no
cov ponent city shallbe declare or be entitled to a
'ighly u baized city status within ineydy ro
~to any election.
ofawhchgiia panrnt dact.tesrract
Chapter II
City Officials in General
SECTION 454. Officials of the City Government. -(a)
There shall be in each city a mayor, a vice-mayor,

sangguniang panlungsod members, a secretary to the
sangguniang panlungsod, a city treasurer, a city
assessor, a city accountant, a city budget officer, a city
planning and development coordinator, a city
engineer, a city health officer, a city civil registrar, a
city administrator, a city legal officer, a city
veterinarian, a city social welfare and development
officer, and a city general services officer.
(b) In addition thereto, the city mayor may appoint a
city architect, a city information officer, a city
agriculturist, a city population officer, a city
environment and natural resources officer, and a city

cooperatives officer.
Under Book IV, Chapter V, Section 7 (4) of the Administrative

Code of 1987, the power to appoint and discipline first-level
employees, which include respondent, is specifically lodged with the
regional director of the Department of Education, Culture and
Sports. The Local Government Code did not automatically repeal the
provisions in the 1987 Administrative Code. There is no provision in
the Local Government Code expressly rescinding the authority of the
DECS regional director to appoint and exercise disciplinary authority
over first-level employees. On the other hand, "implied repeals are
not lightly presumed in the absence of a clear and unmistakable
3
showing of such intention."M
The appointment of a city population officer shall be

optional in the city: Provided, however, That cities
which have existing population offices shall continue
to maintain such offices for a period of five (5) years
from the date of the effectivity of this Code, after
which said offices shall become optional.
(c) The sangguniang panlungsod may:
hereof;
the city government; or
MAguirre v. De Castro, G.R. No. 127631, December 17, 1999. The Supreme Court
added that the source of the wages is not the only criteria in determining whether
the payor may be deemed the employer. The most important factor is the "control
test" where one determines who has the power to supervise and direct the work of
the employee concerned. Unless there is an provision stating the contrary, the power
to appoint carries with it the power to remove or to discipline. Since respondent was
appointed by the regional director of DECS, she may be disciplined or removed by
the latter pursuant to law.

interest of efficiency and economy.
departments and offices shall be appointed by the city
mayor with the concurrence of the majority of all the
sangguniang panlungsod members, subject to civil
service law, rules and regulations. The sangguniang
panlungsod shall act on the appointment within
fifteen (15) days from the date of its submission,
otherwise the same shall be deemed confirmed.
(e) Elective and appointive city officials shall receive
such compensation, allowances, and other
personal services prescribed under Title Five, Book 1I
compensation of the mayor, vice-mayor and
sangguniang panlungsod members shall take effect
until after the expiration of the full term of the said
local officials approving such increase.
Chapter III
Officials and Offices Common to All Cities
Article I
The City Mayor
SECTION 455. Chief Executive; Powers, Duties and
Compensation. - (a) The city mayor, as chief executive
of the city government, shall exercise such powers and
perform such duties and functions as provided by this
Code and other laws.
the purpose of which is the general welfare of the city
and its inhabitants pursuant to Section 16 of this Code,
the city mayor shall:

services, and activities of the city
government, and in this connection,
shall:
(i) Determine the
guidelines of city
policies and be
responsible to the
sangguniang
panlungsod for the
program of government;
(ii) Direct the
formulation of the city
development plan, with
the assistance of the city
and upon approval
thereof by the
sangguniang
panlungsod, implement
the same;
(iii) Present the program
of government and
propose policies and
projects for the
sangguniang
panlungsod at the
opening of the regular
session of the
sangguniang
panlungsod every
calendar year and as
often as may be deemed
necessary as the general
welfare of the
inhabitants and the
needs of the city

government may
require;
legislative measures to
the sangguniang
panlungsod and as often
as may be deemed
necessary, provide such
performance of its
and employees whose
out of city funds and
whose appointments are
not otherwise provided
for in this Code, as well
as those he may be
appoint;
(vi) Represent the city in
all its business
transactions and sign in
its behalf all bonds,
contracts, and
other documents upon
authority of the
sangguniang
panlungsod or pursuant
to law or ordinance;734
time, manner and place
of payment of salaries or
city, in accordance with
law or ordinance;
office space to city and
other officials and
or ordinance, are
the city hall and other
buildings owned or
leased by the city
government;
(x) Ensure that all
employees of the city
faithfully discharge their
duties and functions as
provided by law and
7m The law speaks of prior authorization or authority from the Sangguniang

Panlungsod and not ratification. See Vergara v. Ombudsman, G.R. No. 174567,
March 12, 2009. The Code now requires that the mayor's representation of the city in
its business transactions must be "upon authority of the sangguniang panlungsod or
pursuant to law or ordinance". There was no such prior authority required under
Batas Pambansa Blg. 337. See City of Quezon v. Lexber Incorporated, G.R. No.
141616, March 15, 2001.

be instituted
administrative or
employee of the city
who may have
committed an offense in
the performance of his
official duties;
records and other
employees of the city
and, in aid of his
executive powers and
authority, require all
national officials and
or assigned to the city to
make available to him
such books, records, and
confidential;
by him, to the provincial
governor in the case of
component city mayors,
to the Office of the
President in the case of
highly-urbanized city
mayors, and to their
respective metropolitan
council chairmen in the
case of mayors of cities

in the Metropolitan
Manila Area and other
subdivisions, within
after their issuance;
barangays of the city at
least once every six (6)
months to deepen his
understanding of
problems and
conditions, listen and
give appropriate counsel
to local officials and
component barangay
of general laws and
ordinances which
especially concern them,
and otherwise conduct
visits and inspections to
ensure that the
governance of the city
will improve the quality
of life of the inhabitants;
(xiv) Act on leave
and employees
monetary value of their
leave credits in
accordance with law;
trips of city officials and
employees outside of the

city for a period not
exceeding thirty (30)
days;
(xvi) Call upon any
assigned to the city to
advise him on matters
affecting the city and to
make recommendations
thereon; coordinate with
said official or employee
implementation of
plans, programs and
projects; and, when
administrative or
national government
offense in the
performance of his
to the city;
(xvii) Authorize
payment for medical
care, necessary
transportation,
medical fees of city
who are injured while in
the performance of their
duties and functions,
subject to availability of
funds;
(xviii) Solemnize
marriages, any
provision of law to the
contrary
notwithstanding;
(xix) Conduct an annual
palarong panlungsod,
which shall feature
traditional sports and
disciplines included in
national and
international games, in
Department of
Sports; and
(xx) Submit to the
provincial governor, in
the case of component
cities; to the Office of the
President, in the case of
highly-urbanized cities;
to their respective
metropolitan authority
council chairmen and to
the Office of the
President, in the case of
cities of the
Metropolitan Manila
Area and other
subdivisions, the
pertinent to the
management,
administration and
development of the city
and all information and
data relative to its
political, social and
economic conditions;
and supplemental
reports when
unexpected events and
situations arise at any
time during the year,
particularly when man-
made or natural
affect the general
welfare of the city,
province, region or
country;
relative to the governance of the city
and in the exercise of the appropriate
corporate powers provided for under
Section 22 of this Code, implement all
approved policies, programs, projects,
services and activities of the city and, in
addition to the foregoing, shall:
The Local Government Code imposes upon the city mayor

the duty to "enforce all laws and ordinances relative to the
governance of the city." As the chief executive of the city, he has the
duty to enforce an ordinance as long as it has not been repealed by
the Sanggunian or annulled by the courts. He has no other choice. It
is his ministerial duty to do so. 5
M Social Justice Society v. Atienza, G.R. No. 156052, March 7,2007.


the city's component
barangays and of its
are within the scope of
their prescribed powers,
conferences, seminars,
or meetings of any
elective and appointive
officials of the city,
including provincial
officials and national
to the city, at such time
and place and on such
subject as he may deem
important for the
promotion of the general
welfare of the local
government unit and its
inhabitants;
orders for the faithful
and appropriate
enforcement and
ordinances;
jurisdiction;
(v) Act as the deputized
representative of the
National Police

of the city and upon its
approval, implement the
same; and as such
exercise general and
operational control and
supervision over the
local police forces in the
city, in accordance with
R.A. No. 6975;
(vi) Call upon the
appropriate law
lawless violence,
rebellion or sedition, or
the city police forces are
inadequate to cope with
the situations or the
violators;
industrial development and
countryside growth and progress and,
an estimate of
budget preparation
Book U of this Code;
and supplemental
budgets of the city for
the ensuing calendar
year in the manner
provided for under Title
Five, Book II of this
Code;
the city are collected,
and that city funds are
applied to the payment
of expenses and
settlement of obligations
of the city, in accordance
with law or ordinance;
violation of the
had been issued,
pursuant to law or
ordinance;
The power to grant or issue licenses or business permits must

always be exercised in accordance with law, with utmost observance
of the rights of all concerned to due process and equal protection of
the law. A license or permit is not in the nature of a contract but a
special privilege. The fact that petitioner acquiesced in the special
conditions imposed by the City Mayor in subject business permit
does not preclude it from challenging the said imposition, which is
ultra vires or beyond the ambit of authority of respondent City
Mayor.7 m
A business permit is issued primarily to regulate the conduct
of business and the City Mayor cannot, through the issuance of such
permit, regulate the practice of a profession that is within the
exclusive domain of the administrative agency. The grant of a license
or permit to do business is different from the issuance of a license to
engage in the practice of a particular profession. The first is usually
granted by the local authorities and the second is issued by the Board
or Commission tasked to regulate the particular profession. A
business permit authorizes the person, natural or otherwise, to
engage in business or some form of commercial activity. A
professional license, on the other hand, is the grant of authority to a
natural person to engage in the practice or exercise of his or her
profession 737
The power to approve a license includes by implication the
power to revoke it. By extension, the power to revoke is limited by
the authority to grant the license, from which it is derived in the first
place. The Supreme Court explained that if the Food and Drug
Administration grants a license upon its finding that the applicant
drug store has complied with the requirements of the general laws
and the implementing administrative rules and regulations, it is only
for their violation that the FDA may revoke the said license. By the
same token, having granted the permit upon his ascertainment that
the conditions thereof as applied particularly to Olongapo City have
been complied with, it is only for the violation of such conditions that
the mayor may revoke the said permit.7m
6
Acebedo Optical Company v. Court of Appeals, G.R. No. 100152, March 31,2000.
7 Acebedo Optical Company v. Court of Appeals, G.R. No. 100152, March 31,2000.
M Gordon v. Verdiano 1I G.R. No. L-55230, November 8,1988.
The power of the mayor to issue business licenses and

permits necessarily includes the corollary power to suspend, revoke
or even refuse to issue the same. However, the power to suspend or
revoke these licenses and permits is expressly premised on the
violation of the conditions of these permits and licenses. Similarly,
the power to refuse to issue such licenses and permits is premised on
non-compliance with the prerequisites for the issuance of such
licenses and permits. The mayor must observe due process in
exercising these powers, which means that the mayor must give the
applicant or licensee notice and opportunity to be heard.'39
In Lim v. Court of Appeals,740 the Court recognized the power
of the mayor to inspect and investigate private commercial
establishments for any violation of the conditions of their licenses
and permits, but ruled that the mayor has no power to order a police
raid on these establishments in the guise of inspecting or
investigating these commercial establishments.
Any damage or loss suffered by the complainant from the
alleged unlawful act of the defendant under the terms and during the
existence of the expired contract may be remedied by a claim for
damages. 741
(v) Issue permits,

without need of
approval therefor from
any national agency, for
the holding of activities
for any charitable or
welfare purpose,
excluding prohibited
games of chance or
shows contrary to law,
public policy and public
morals;
739 Lir v. Court of Appeals, G.R. No. 111397, August 12 2002.

740 Lir v. Court of Appeals, G.R. No. 111397, August 12, 2002.
74
1Mathay v. Felt Foods, Inc., G.R. No. 13149, July 28,1999.
(vi) Require owners of

illegally constructed
houses, buildings or
other structures to
obtain the necessary
permit, subject to such
fines and penalties as
may be imposed by law
or ordinance, or to make
necessary changes in the
construction of the same
when said construction
violates any law or
ordinance, or to order
the demolition or
removal of said house,
building or structure
within the period
prescribed by law or
ordinance;
(vii) Adopt adequate
and conserve land,
mineral, marine, forest,
the city;
(viii) Provide efficient
and effective property
and supply management
in the city; and protect
the funds, credits, rights
and other properties of
the city; and
(ix) Institute or cause to
be instituted
administrative or
and property; and cause
the city to be defended
against all suits to
ensure that its interests,
resources and rights
shall be adequately
protected;
The mayor has the authority to file suits "for the recovery of
funds and property" on behalf of the city, even without the prior
authorization from the Sanggunian. This conclusion is strengthened
by the fact that nowhere in the enumerated powers and duties of the
Sanggunian can one find the requirement of such prior authorization
in favor of the mayor for the purpose of filing suits on behalf of the
city. However, being the proper party to file such suits, the mayor
must necessarily be the one to sign the certification against forum-
shopping, and not the City Legal Officer, who, despite being an
official of the City, was merely its counsel and not a party to the
case. 742

Code and, in addition thereto, shall:
(i) Ensure that the
funded by the national
government shall be, as
far as practicable,
742City of Caloocan v. Court of Appeals, G.R. No. 145004, May 3,2006.


of the city, and in the
case of component cities,
of the city and of the
province; and
(ii) Coordinate the
implementation of
technical services,
and infrastructure
programs, rendered by
national offices in the
case of highly urbanized
and independent
component cities, and
by national and
provincial offices in the
case of component cities;
and
or ordinance.
(c) During his incumbency, the city mayor shall hold
office in the city hall.
(d) The city mayor shall receive a minimum monthly
compensation corresponding to Salary Grade Thirty
(30) as prescribed under R.A. No. 6758 and the
Article II
The City Vice-Mayor
SECTION 456. Powers, Duties and Compensation. - (a)
The city vice-mayor shall:
sangguniang panlungsod and sign all
warrants drawn on the city treasury for
all expenditures appropriated for the
operation of the sangguniang
pardungsod;
panlungsod, except those whose
manner of appointment is specifically
provided in this Code;
(3) Assume the office of the city mayor
for the unexpired term of the latter in
the event of permanent vacancy as
provided for in Section 44, Book I of
this Code;
the duties and functions of the city
mayor in cases of temporary vacancy
as provided for in Section 46, Book I of
this Code; and
or ordinance.
(b) The city vice-mayor shall receive a monthly
eight (28) for a highly urbanized city and Salary Grade
twenty-six (26) for a component city, as prescribed
under R.A. No. 6758 and the implementing guidelines
issued pursuant thereto.
There is no inherent authority on the part of the city vice-

mayor to enter into contracts on behalf of the local government unit,
unlike that provided for the city mayor. The authority of the vice-
mayor to enter into contracts on behalf of the city was strictly
circumscribed by the ordinance granting it. As this is not a power or
duty given under the law to the Office of the Vice-Mayor, it cannot
be construed as a "continuing authority" for any person who enters
the Office of the Vice- Mayor to enter into subsequent, albeit similar,
contracts. 743
Article II[
The Sangguniang Panlungsod
SECTION 457. Composition - (a) The sangguniang
panlungsod, the legislative body of the city, shall be
composed of the city vice-mayor as presiding officer,
the regular sanggunian members, the president of the
city chapter of the liga ng mga barangay, the president
of the panlungsod na pederasyon ng mga
sangguniang kabataan, and the sectoral
representatives, as members.
ninety (90) days prior to the holding of the local
elections, one (1) from the agricultural or industrial
workers; and one (1) from the other sectors, including
the urban poor, indigenous cultural communities, or
disabled persons.
(c) The regular members of the sangguniang
panlungsod and the sectoral representatives shall be
elected in the manner as may be provided for by law.
743 Vicendo v. ViUar, G.R. No. 182069, July 3, 2012.


Compensation. - (a) The sangguniang panlungsod, as
the legislative body of the city, shall enact ordinances,
approve resolutions and appropriate funds for the
general welfare of the city and its inhabitants pursuant
to Section 16 of this Code and in the proper exercise of
the corporate powers of the city as provided for under
Section 22 of this Code, and shall:
and effective city government, and in
this connection, shall:
approved by the
sangguniang barangay
and executive orders
issued by the punong
barangay to determine
whether these are within
the scope of the
prescribed powers of the
sanggunian and of the
punong barangay;
order by enacting
impose penalties for
violation of said
ordinances;
imposing a fine not
exceeding Five thousand
pesos (P5,000.00) or an
imprisonment for a
period not exceeding
one (1) year, or both in

the discretion of the
court, for the violation of
a city ordinance;
of the city from the
harmful effects of man-
made or natural
disasters and calamities,
and their return to
suppress and impose
public places, vagrancy,
mendicancy,
prostitution,
establishment and
games of chance,
property, drug
of drug dens, drug
pushing, juvenile
delinquency, the
inimical to the welfare
and morals of the
inhabitants of the city.
(vi) Protect the
environment and
impose appropriate
endanger the
other forms of
illegal logging and
smuggling of logs,
and burn farming, and
which result in
and lakes, or of
and pertinent laws,
city;

positions and the
salaries, wages,
emoluments and
or mainly from city
funds and provide for
the city government;
(ix) Authorize the
payment of
compensation to a
vacancy or grant
honorarium to any
in a concurrent capacity,
law;
and the appropriate
of all city government
property, public
documents, or records
such as those relating to
property inventory, land
births, marriages,
taxation, accounts,
documents of public
city government;
the city government
allow, provide for
additional allowances
and other benefits to
judges, prosecutors,
public elementary and
high school teachers,
and other national
to the city;
In Dadole v. Commission on Audit, 744 the Supreme Court

invalidated a circular which imposes limits on the additional
allowances granted to judges. The law does not authorize setting a
definite maximum limit for the grant of additional allowances when
the finances of the city government allow. Setting a uniform amount
for the grant of additional allowances is an inappropriate way of
enforcing the criterion found in this provision.745
(xii) Provide legal

assistance to barangay
officials who, in the
official duties or on the
occasion thereof, have to
744 G.R. No. 125350, December 3, 2002.

745
Dadole v. Commission on Audit, G.R. No. 125350, December 3, 2002.
initiate judicial
proceedings or defend
themselves against legal
action; and
(xiii) Provide for group
insurance or additional
insurance coverage for
all barangay officials,
including members of
barangay tanod brigades
and other service units,
with public or private
insurance companies,
when the finances of the
city government allow
said coverage;
and priorities of the city as provided
for under Section 18 of this Code, with
particular attention to agro-industrial
development and city-wide growth
and progress, and relative thereto,
shall:
(i) Approve the annual
and supplemental
budgets of the city
government and
appropriate funds for
specific programs,
activities of the city, or
for other purposes not
contrary to law, in order
to promote the general
welfare of the city and

its inhabitants;
(ii) Subject to the
laws and upon the
members of the
sangguniang
panlungsod, enact
ordinances levying
(Jii) Subject to the
provisions of Book H of
this Code and upon the
members of the
sangguniang
panlungsod, authorize
the city mayor to
negotiate and contract
loans and other forms of
indebtedness;
(iv) Subject to the
laws and upon the
members of the
sangguniang
panlungsod, enact
ordinances authorizing
the floating of bonds or
other instruments of
projects;
maintenance or the
the use of the city; and,
upon the majority vote
of all the members of the
sangguniang
panlungsod, authorize
the city mayor to lease
to private parties such
public buildings held in
a proprietary capacity,
the use of property
the city;
(vii) Adopt a
plan for the city:
Provided, That in the
case of component cities,
the formulation,
adoption or
modification of said
plan shall be in
approved provincial

plan;
(viii) Reclassify land
the city, subject to the
pertinent provisions of
this Code;
(ix) Enact integrated
zoning ordinances in
consonance with the
approved
plan, subject to existing
laws, rules and
regulations; establish
fire limits or zones,
particularly in populous
centers; and regulate the
construction, repair or
modification of
buildings within said
fire limits or zones in
accordance with the
provisions of the Fire
Code;
(x) Subject to national
law, process and
approve subdivision
plans for residential,
commercial, or
industrial purposes and
other development
purposes, and to collect
processing fees and
other charges, the
proceeds of which shall
accrue entirely to the
city: Provided, however,
That where approval of

a national agency or
office is required, said
approval shall not be
withheld for more than
thirty (30) days from
receipt of the
application. Failure to
act on the application
within the period stated
above shall be deemed
as approval thereof;
(xi) Subject to the
this Code, grant the
exclusive privilege of
constructing fish corrals
or fish pens, or the
taking or catching of
bangus fry, prawn fry or
kawag-kawag, or fry of
any species or fish
within the city waters;
(xii) With the
concurrence of at least
two-thirds (2/3) of all
the members of the
sangguniang
panlungsod, grant tax
exemptions, incentives
or reliefs to entities
engaged in community
growth-inducing
industries, subject to the
provisions of Chapter 5,
Title 1, Book 1 of this
Code;
(xiii) Grant loans or

provide grants to other
local government units
or to national,
provincial, and city
charitable, benevolent or
educational institutions:
Provided, That, said
institutions are operated
and maintained within
the city;
(xiv) Regulate the
numbering of
residential, commercial
and other buildings; and
(xv) Regulate the
inspection, weighing
and measuring of
articles of commerce.
(3) Subject to the provisions of Book II
of this Code, enact ordinances granting
franchises and authorizing the issuance
of permits or licenses, upon such
conditions and for such purposes
intended to promote the general
welfare of the inhabitants of the city
and pursuant to this legislative
authority shall:
(i) Fix and impose
reasonable fees and
rendered by the city
government to private
persons or entities;
(ii) Regulate or fix
license fees for any
business or practice of
profession within the

city and the conditions
under which the license
for said business or
practice of profession
may be revoked and
enact ordinances levying
taxes thereon;
(iii) Provide for and set
the terms and conditions
under which public
utilities owned by the
city shall be operated by
the city government,
and prescribe the
conditions under which
the same may be leased
entities, preferably
cooperatives;
(iv) Regulate the display
of and fix the license
fees for signs,
signboards, or billboards
at the place or places
where the profession or
business advertised
thereby is, in whole or in
part, conducted;
(v) Any law to the
contrary
notwithstanding,
authorize and license the
establishment,
operation, and
maintenance of cockpits,
and regulate
cockfighting and
commercial breeding of
gamecocks: Provided,
That existing rights
should not be
prejudiced;
(vi) Subject to the
guidelines prescribed by
the Department of
Transportation and
Communications,
regulate the operation of
tricycles and grant
franchises for the
operation thereof within
the territorial
jurisdiction of the city;
and
(vii) Upon approval by a
members of the
sangguniang
panlungsod: grant a
franchise to any person,
partnership,
corporation, or
cooperative to do
business within the city;
establish, construct,
operate and maintain
ferries, wharves,
markets or
slaughterhouses; or
undertake such other
activities within the city
as may be allowed by
existing laws: Provided,
That, cooperatives shall
be given preference in
the grant of such

franchise.
(4) Regulate activities relative to the
use of land, buildings and structures
within the city in order to promote the
general welfare and for said purpose
shall:
(i) Declare, prevent or
abate any nuisance;
The Sangguniang Panlungsod is empowered to enact

ordinances declaring, preventing or abating noise and other forms of
nuisance. However, it cannot declare a particular thing as a nuisance
per se and order its condemnation. It does not have the power to find,
as a fact, that a particular thing is a nuisance when such thing is not a
nuisance per se; nor can it authorize the extrajudicial condemnation
and destruction of that as a nuisance which in its nature, situation or
use is not such. Those things must be determined and resolved in the
ordinary courts of law and not by a mere resolution of the
sanggunian. 7"
(ii) Require that

buildings and the
premises thereof and
any land within the city
be kept and maintained
in a sanitary condition;
impose penalties for any
violation thereof; or,
upon failure to comply
with said requirement,
have the work done at
the expense of the
owner, administrator or
74AC Enterprises, Inc. v. Frabelle Properties Corporation, G.R. No. 166744,

November 2 2006.
tenant concerned; or
require the filling up of
any land or premises to
a grade necessary for
proper sanitation;
(iii) Regulate the
disposal of clinical and
other wastes from
hospitals, clinics and
other similar
establishments;
(iv) Regulate the
and maintenance of
cafes, restaurants,
beerhouses, hotels,
motels, inns, pension
houses, lodging houses,
and other similar
establishments,
including tourist guides
and transports;
(v) Regulate the sale,
giving away or
dispensing of any
intoxicating malt, vino,
mixed or fermented
liquors at any retail
outlet;
(vi) Regulate the
establishment and
provide for the
inspection of steam
boilers or any heating
device in buildings and
the storage of
inflammable and highly
combustible materials
within the city;
(vii) Regulate the
establishment,
operation, and
maintenance of any
entertainment or
amusement facilities,
including theatrical
performances, circuses,
billiard pools, public
dancing schools, public
dance halls, sauna baths,
massage parlors, and
other places for
entertainment or
amusement; regulate
such other events or
activities for amusement
or entertainment,
particularly those which
tend to disturb the
community or annoy the
inhabitants, or require
the suspension or
suppression of the same;
or prohibit certain forms
of amusement or
entertainment in order
to protect the social and
moral welfare of the
community;
Congress specified the establishments and forms of

amusement or entertainment subject to regulation among which are
beerhouses, hotels, motels, inns, pension houses, lodging houses, and
other similar establishments (Section 458 [a] 4 [iv]), public dancing
schools, public dance halls, sauna baths, massage parlors, and other
places for entertainment or amusement (Section 458 [a] 4 [vii]). This
enumeration cannot be included as among "other events or activities
for amusement or entertainment, particularly those which tend to
disturb the community or annoy the inhabitants" or "certain forms of
amusement or entertainment" which the City Council may suspend,
suppress or prohibit.747
(viii) Provide for the

impounding of stray
animals; regulate the
keeping of animals in
homes or as part of a
business, and the
slaughter, sale or
disposition of the same;
and adopt measures to
prevent and penalize
cruelty to animals; and
(ix) Regulate the
and maintenance of
funeral parlors and the
burial or cremation of
the dead, subject to
existing laws, rules and
regulations.
delivery of the basic services and
17 of this Code, and in addition to said
services and facilities, shall:
(i) Provide for the
establishment,
maintenance, protection,
747
City of Manila v. Laguio, Jr., G.R. No. 118127, April 12, 2005.
and conservation of
communal forests and
greenbelts, mangroves,
and other similar forest
(ii) Establish markets,
slaughterhouses or
animal corrals and
authorize the operation
thereof by the city
government; and
and operation of private
markets, talipapas or
other similar buildings
and structures;
(iii) Authorize the
establishment,
maintenance and
operation by the city
government of ferries,
wharves, and other
structures intended to
accelerate productivity
related to marine and
seashore or offshore
activities;
(iv) Regulate the
preparation and sale of
meat, poultry, fish,
vegetables, fruits, fresh
dairy products, and
other foodstuffs for
public consumption;
(v) Regulate the use of
streets, avenues, alleys,
sidewalks, bridges,
places and approve the
construction,
improvement, repair
and maintenance of the
same; establish bus and
vehicle stops and
terminals or regulate the
use of the same by
privately-owned
vehicles which serve the
public; regulate garages
and the operation of
conveyances for hire;
designate stands to be
occupied by public
vehicles when not in
use; regulate the putting
up of signs, signposts,
awnings and awning
posts on the streets; and
provide for the lighting,
cleaning and sprinkling
of streets; and public
places;
(vi) Regulate traffic on
all streets and bridges;
prohibit encroachments
or obstacles thereon, and
when necessary in the
interest of public
welfare, authorize the
removal or
encroachments and
illegal constructions in
public places;
Vesting cities with the legislative power to enact traffic rules

and regulations was expressly done through Section 458 of the Code,
and also generally by virtue of the General Welfare Clause embodied
in Section 16.748
(vii) Subject to existing

laws, establish and
provide for the
operation of an efficient
waterworks system to
supply water for the
inhabitants and to
purify the source of the
water supply; regulate
the construction,
use of hydrants, pumps,
cisterns and reservoirs;
protect the purity and
quantity of the water
supply of the city and,
for this purpose, extend
the coverage of
appropriate ordinances
over all territory within
the drainage area of said
water supply and within
one hundred (100)
meters of the reservoir,
conduit, canal,
aqueduct, pumping
station, or watershed
used in connection with
the water service; and
regulate the
consumption, use or
748
Legaspi v. City of Cebu, G.R. No. 159110, December 10, 2013.
wastage of water and fix

and collect charges
therefor;
(viii) Regulate the
drilling and excavation
of the ground for the
laying of water, gas,
sewer, and other pipes
and the construction,
repair and maintenance
of public drains, sewers,
cesspools, tunnels and
similar structures;
regulate the placing of
poles and the use of
crosswalks, curbs, and
gutters; adopt measures
to ensure public safety
against open canals,
manholes, live wires and
other similar hazards to
life and property; and
and use of private water
closets, privies and other
similar structures in
buildings and homes;
(ix) Regulate the placing,
stringing, attaching,
installing, repair and
construction of all gas
mains, electric, telegraph
and telephone wires,
conduits, meters and
other apparatus; and
provide for the
correction,
condemnation or
removal of the same
when found to be
dangerous, defective, or
otherwise hazardous to
the welfare of the
inhabitants;
The Sangguniang Panlungsod may enact ordinances to

regulate the installation and maintenance of electric power lines, e.g.
prohibit the use of inefficient power lines, in order to protect the city
residents from the hazards these may pose. In aid of this ordinance
making power, said body or any of its committees may conduct
investigations similar to, but not the same as, the legislative
investigations conducted by the national legislature. The difference
lies in the lack of subpoena power and of the power to punish for
contempt on the part of the local legislative bodies. They may only
invite resource persons who are willing to supply information which
may be relevant to the proposed ordinance. The type of investigation
which may be conducted by the Sangguniang Panlungsod does not
include within its ambit an inquiry into any suspected violation by
an electric cooperative of the conditions of its electric franchise. 749
The contempt power, as well as the subpoena power, cannot
be deemed implied in the delegation of certain legislative functions
to local legislative bodies. There is no express provision either in the
Constitution or in the Local Government Code granting local
legislative bodies, the power to subpoena witnesses and the power to
punish non-members for contempt. The contempt power and the
subpoena power partake of a judicial nature. They cannot be implied
in the grant of legislative power. Neither can they exist as mere
incidents of the performance of legislative functions. To allow local
legislative bodies or administrative agencies to exercise these powers
without express statutory basis would run afoul of the doctrine of
separation of powers7Z0
749Negros Oriental II Electric Cooperative v. Sangguniang Panglungsod ng

Dumaguete, G.R. No. 72492, November 5,1987.
75 Negros Oriental II Electric Cooperative v. Sangguniang Panglungsod ng
Dumaguete, G.R. No. 72492 November 5,1987.
(x) Subject to the

and regulations,
secondary institutions
Sports and subject to
existing law on tuition
fees, fix and collect
reasonable tuition fees
and other school charges
in educational
institutions supported
by the city government;
(xi) Establish a
scholarship fund for
poor but deserving
students in schools
located within its
jurisdiction or for
the city;
(xii) Approve measures
spread of diseases;
(xiii) Provide for an
efficient and effective
system of solid waste
and garbage collection
and disposal; prohibit
littering and the placing

or throwing of garbage,
refuse and other filth
and wastes;
(xiv) Provide for the care
of disabled persons,
paupers, the aged, the
mind, abandoned
minors, juvenile
delinquents, drug
dependents, abused
children and other
needy and
and youth below
age; and subject to
centers and facilities for
said needy and
A city is authorized by the Local Government Code to

approve ordinances to provide for the care of the sick. This is
consistent with the constitutional mandate for a comprehensive
approach to health development, with priority for the needs of the
sick found in Article XIII, Section 11 on Social Justice and Human
Rights. 51
(xv) Establish and

provide for the
M City of General Santos v. Commission on Audit, G.R. No. 199439, April 22,2014.
maintenance and
improvement of jails
and detention centers,
institute a sound jail
management program,
for the subsistence of
prisoners in the city;
(xvi) Establish a city
council whose purpose
is the promotion of
culture and the arts,
coordinate with
government agencies
and non-governmental
organizations and,
same; and
(xvii) Establish a city
council for the elderly
which shall formulate
policies and adopt
measures mutually
beneficial to the elderly
and to the community;
provide incentives for
non-governmental
agencies and entities
and, subject to the
appropriate funds to
support programs and
projects for the benefit of
the elderly; and

or ordinance.
(b) The members of the sangguniang panlungsod of
component cities shall receive a minimum monthly
five (25) and members of the sangguniang panlungsod
of highly-urbanized cities shall receive a minimum
twenty-seven (27), as prescribed under Republic Act
No. 6758 and the implementing guidelines issued
pursuant thereto.
Title IV
THE PROVINCE
Chapter I
Role and Creation of the Province
SECTION 459. Role of the Province. - The province,
composed of a cluster of municipalities, or
municipalities and component cities, and as a political
and corporate unit of government, serves as dynamic
mechanism for developmental processes and effective
governance of local government units within its
therein.
+(,121/,1(
Citation:
Tue Apr 17 11:22:50 2018




or ordinance.
(b) The members of the sangguniang panlungsod of
component cities shall receive a minimum monthly
five (25) and members of the sangguniang panlungsod
of highly-urbanized cities shall receive a minimum
twenty-seven (27), as prescribed under Republic Act
No. 6758 and the implementing guidelines issued
pursuant thereto.
Title IV
THE PROVINCE
Chapter I
Role and Creation of the Province
SECTION 459. Role of the Province. - The province,
composed of a cluster of municipalities, or
municipalities and component cities, and as a political
and corporate unit of government, serves as dynamic
mechanism for developmental processes and effective
governance of local government units within its
therein.
SECTION 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 (P20,000,000.00) 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
Bureau; or
(ii) a population of not less than two
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.
special funds, trust funds, transfers and non-recurring
income.
SECTION 462. Existing Sub-Provinces. - Existing sub-
provinces are hereby converted into regular provinces
upon approval by a majority of the votes cast in a
plebiscite to be held in the said subprovinces and the
original provinces directly affected. The plebiscite
shall be conducted by the COMELEC simultaneously
with the national elections following the effectivity of
this Code.
The new legislative districts created as a result of such

conversion shall continue to be represented in
Congress by the duly-elected representatives of the
original districts out of which said new provinces or
districts were created until their own representatives
shall have been elected in the next regular
congressional elections and qualified.
The incumbent elected officials of the said
subprovinces converted into regular provinces shall
continue to hold office until June 30, 1992. Any
vacancy occurring in the offices occupied by said
incumbent elected officials, or resulting from
expiration of their terms of office in case'of a negative
vote in the plebiscite results, shall be filled by
appointment by the President. The appointees shall
hold office until their successors shall have been
elected in the regular local elections following the
plebiscite mentioned herein and qualified. After
effectivity of such conversion, the President shall fill
up the position of governor of the newly-created
province through appointment if none has yet been
appointed to the same as hereinbefore provided, and
shall also appoint a vice-governor and the other
members of the sangguniang panlalawigan, all of
whom shall likewise hold office until their successors
shall have been elected in the next regular local
elections and qualified.
All qualified appointive officials and employees in the
career service of the said subprovinces at the time of
their conversion into regular provinces shall continue
in office in accordance with civil service law, rules and
regulations.
Chapter II
Provincial Officials in General
SECTION 463. Officials of the ProvincialGovernment. -
(a) There shall be in each province a governor, a vice-
governor, members of the sangguniang panlalawigan,
a secretary to the sangguniang panlalawigan, a
provincial treasurer, a provincial assessor, a provincial
accountant, a provincial engineer, a provincial budget
officer, a provincial planning and development
coordinator, a provincial legal officer, a provincial
administrator, a provincial health officer, a provincial
social welfare and development officer, a provincial
general services officer, a provincial agriculturist, and
a provincial veterinarian.
(b) In addition thereto, the governor may appoint a
provincial population officer, a provincial natural
resources and environment officer, a provincial
cooperative officer, a provincial architect, and a
provincial information officer.
The appointment of a provincial population officer
shall be optional in the province: Provided, however,
That provinces which have existing population offices
shall continue to maintain such offices for a period of
five (5) years from the date of the effectivity of this
Code, after which said offices shall become optional.
(c) The sangguniang panlalawigan may:
hereof;
the provincial government; or
interest of efficiency and economy;

departments and offices shall be appointed by the
governor with the concurrence of the majority of all
the sangguniang panlalawigan members, subject to
civil service law, rules and regulations. The
sangguniang panlalawigan shall act on the
appointment within fifteen (15) days from the date of
its submission; otherwise the same shall be deemed
confirmed;
(e) Elective and appointive provincial officials shall
receive such compensation, allowances, and other
personal services prescribed under Title Five, Book II
compensation shall take effect until after the
expiration of the full term of all the elective officials
approving such increase.
SECTION 464. Residence and Office. - During the
incumbency of the governor, he shall have his official
residence in the capital of the province. All elective
and appointive provincial officials shall hold office in
the provincial capital: Provided, That, upon resolution
of the sangguniang panlalawigan, elective and
appointive provincial officials may hold office in any
component city or municipality within the province
for a period of not more than seven (7) days for any
given month.
Chapter III
Officials and Offices Common to All Provinces
Article I
The Provincial Governor
SECTION 465. The Chief Executive: Powers, Duties,
Functions, and Compensation. - (a) The provincial
governor, as the chief executive of the provincial

government, shall exercise such powers and perform
such duties and functions as provided by this Code
and other laws.
the purpose of which is the general welfare of the
province and its inhabitants pursuant to Section 16 of
this Code, the provincial governor shall:
services, and activities of the provincial
government, and in this connection,
shall:
(i) Determine the
guidelines of provincial
policies and be
responsible to the
sangguniang
panlalawigan for the
program of government;
(ii) Direct the
formulation of the
provincial development
plan, with the assistance
of the provincial
and upon approval
thereof by the
sangguniang
panlalawigan,
implement the same;
(iii) Present the program
of government and
propose policies and
projects for the
sangguniang
panlalawigan at the
opening of the regular
session of the
sangguniang
panlalawigan every
calendar year and as
necessary as the general
welfare of the
inhabitants and the
needs of the provincial
government may
require;
legislative measures to
the sangguniang
panlalawigan and as
necessary, provide such
performance of its
and employees whose
out of provincial funds
and whose
appointments are not
otherwise provided for
in this Code, as well as
those he may be
appoint;
(vi) Represent the

province in all its
business transactions
and sign in its behalf all
bonds, contracts, and
other documents upon
authority of the
sangguniang
panlalawigan or
pursuant to law or
ordinance;
time, manner and place
of payment of salaries or
province, in accordance
with law or ordinance;
office space to provincial
and other officials and
or ordinance, are
the provincial capitol
and other buildings
owned or leased by the
provincial government;
(x) Ensure that all
employees of the
province faithfully
discharge their duties
and functions as
provided by law and
be instituted
administrative or
employee of the
province who may have
committed an offense in
the performance of his
official duties;
records and other
employees of the
province and, in aid of
his executive powers
and authority, require
all national officials and
the province to make
available to him such
books, records, and
confidential;
by him to the Office of
the President within
after their issuance;

cities and municipalities
of the province at least
once every six (6)
months to deepen his
understanding of
problems and
conditions, listen and
give appropriate counsel
to local officials and
of component cities and
municipalities of general
laws and ordinances
which especially
concern them, and
otherwise conduct visits
and inspections to
ensure that the
governance of the
province will improve
the quality of life of the
inhabitants;
(xiv) Act on leave
and employees
monetary value of leave
credits in accordance
with law;
trips of provincial
outside of the province
for a period not
exceeding thirty (30)
days;
(xvi) Call upon any

assigned to the province
to advise him on matters
affecting the province
and to make
recommendations
thereon; coordinate with
said official or employee
implementation of
plans, programs and
projects; and when
administrative or
national government
offense in the
performance of his
to the province;
(xvii) Authorize
payment for medical
care, necessary
transportation,
medical fees of
provincial officials and
employees who are
injured while in the
official duties and
functions, subject to
availability of funds;
(xviii) Represert the

province in inter-
provincial or regional
sports councils or
committees, and
coordinate the efforts of
component cities or
municipalities in the
regional or national
palaro or sports
development activities;
(xix) Conduct an annual
palarong panlalawigan,
which shall feature
traditional sports and
disciplines included in
national and
international games in
Department of
Sports; and
(xx) Submit to the Office
of the President the
pertinent to the
management,
administration and
development of the
province and all
relative to its political,
social and economic
conditions; and
supplemental reports
when unexpected events
and situations arise at
any time during the

year, particularly when
man-made or natural
affect the general
welfare of the province,
region or country;
relative to the governance of the
province and the exercise of the
appropriate corporate powers
Code, implement all approved policies,
programs, projects, services and
activities of the province and, in
addition to the foregoing, shall:
the component cities
and municipalities of the
province and of its
their prescribed powers,
conferences, seminars,
or meetings of any
elective and appointive
officials of the province
and its component cities
and municipalities,
including national
to the province, at such
time and place and on
such subject as he may
deem important for the

promotion of the genieral
welfare of the province
and its inhabitants;
orders for the faithful
and appropriate
enforcement and
ordinances;
jurisdiction;
(v) In coordination with
the mayors of
municipalities and the
National Police
of the province and
upon its approval,
implement the same in
accordance with R.A.
No. 6975;
(vi) Call upon the
appropriate national law
lawless violence,
rebellion or sedition or
the police forces of the
component city or
municipality where the
disorder or violation is
happening are
inadequate to cope with
the situation or the
violators;
wide growth and progress and, relative
thereto, shall:
an estimate of
budget preparation
and supplemental
budgets of the province
for the ensuing calendar
year in the manner
provided for under Title
Five, Book II of this
Code;

the province are
collected, and that
provincial funds are
applied to the payment
of expenses and
settlement of obligations
of the province, in
accordance with law or
ordinance;
violation of the
had been issued,
pursuant to law or
ordinance;
(v) Adopt adequate
and conserve land,
mineral, marine, forest
the province, in
mayors of component
cities and municipalities;
(vi) Provide efficient and
effective property and
supply management in
the province; and
protect the funds,
credits, rights, and other
properties of the
province; and
(vii) Institute or cause to

be instituted
administrative or
and property, and cause
the province to be
defended against all
suits to ensure that its
interests, resources and
rights shall be
adequately protected.
Code, and in addition thereto, shall:
(i) Ensure that the
funded by the national
government shall be, as
far as practicable,
construction and' repair
of the province and of its
municipalities; and
(ii) Coordinate the
implementation of
technical services by
national offices for the
province and its

municipalities,
and infrastructure
programs of the
provincial government
and its component cities
and municipalities;
or ordinance.
(c) The provincial governor shall receive a minimum
thirty (30) prescribed under R.A. No. 6758 and the
The calling-out power is bestowed upon the President alone.

A local chief executive, such as the provincial governor, exercises
operational supervision over the police, and may exercise control
only in day-to-day operations. It is still the President who is
authorized to exercise supervision and control over the police,
through the National Police Commission. The provincial governor is
not endowed with the power to call upon the armed forces at his
own bidding. A Governor exceeded his authority when he declared a
state of emergency and called upon the Armed Forces, the police,
and his own Civilian Emergency Force. The calling-out powers
contemplated under the Constitution is exclusive to the President.
An exercise by another official, even if he is the local chief executive,
is ultra vires, and may not be justified by the invocation of Section 465
of the Local Government Code 752
MKulayan v. Tan, G.R. No. 187298, July 3,2012.

Article H
The Provincial Vice-Governor
SECTION 466. Powers, Duties, and Compensation. - (a)
The vice-governor shall:
sangguniang panlalawigan and sign all
warrants drawn on the provincial
treasury for all expenditures
appropriated for the operation of the
sangguniang panlalawigan;
panlalawigan, except those whose
manner of appointment is specially
provided in this Code;
(3) Assume the office of the governor
for the unexpired term of the latter in
the event of permanent vacancy as
provided for in Section 44, Book I of
this Code;
the duties and functions of the
governor in cases of temporary
Book I of this Code; and
or ordinance.
(b) The vice-governor shall receive a monthly
eight (28) as prescribed under R.A. No. 6758 and the
Article III
The Sangguniang Panlalawigan
SECTION 467. Composition. - (a) The sangguniang
panlalawigan, the legislative body of the province,
shall be composed of the provincial vice-govemor as
presiding officer, the regular sanggunian members,
the president of the provincial chapter of the liga ng
mga barangay, the president of the panlalawigang
pederasyon ng mga sangguniang kabataan, the
president of the provincial federation of sanggunian
members of municipalities and component cities, and
the sectoral representatives, as members.
In determining a quorum, Section 53 of the Local Government

Code of 1991 provides that a majority of all the members of the
sanggunian who have been elected and qualified shall constitute a
quorum. Along this line, it bears to emphasize that per Section 467 (a)
of the Local Government Code of 1991, the Sangguniang
Panlalawigan is a composite body where the Vice-Governor as
Presiding Officer is a composite member thereof. As a composite
member in the sangguniang panlalawigan, he is therefore included
in the determination of a quorum.7w
The Vice-Governor, who is also the Presiding Officer of the
Sangguniang Panlalawigan of the Province of Cavite, has standing to
file a petition for annulment of judgment because he represents the
interests of the province which is a real party in interest since it
stands to be benefited or injured by the execution of the compromise
judgment.7 4

ninety (90) days prior to the holding of the local
753
La Carlota City v. Rojo, G.R. No. 181367, April 24, 2012.
M Remulla v. Maliksi, G.R. No. 171633, September 18,2013.
elections, one (1) from the agricultural or industrial

workers; and one (1) from other sectors including the
urban poor, indigenous cultural communities, or
disabled persons.
(c) The regular members of the sangguniang
panlalawigan and the sectoral representatives shall be
elected in the manner as may be provided for by law.
Compensation. - (a) The sangguniang panlalawigan,
as the legislative body of the province, shall enact
ordinances, approve resolutions and appropriate
funds for the general welfare of the province and its
inhabitants pursuant to Section 16 of this Code in the
proper exercise of the corporate powers of the
province as provided for under Section 22 of this
Code, and shall:
and effective provincial government
and, in this connection, shall:
approved by the
sanggunians of
municipalities and
by the mayors of said
component units to
determine whether these
the prescribed powers of
the sanggunian and of
the mayor;
order by enacting

impose penalties for the
violation of said
ordinances;
imposing a fine not
exceeding Five thousand
pesos (P5,000.00) or
imprisonment not
exceeding one (1) year,
or both in the discretion
of the court, for the
violation of a provincial
ordinance;
of the province from
harmful effects of man-
made or natural
disasters and calamities,
disasters and calamities
and in their return to
suppress and impose
public places, vagrancy,
mendicancy,
prostitution,
establishment and
games of chance,
property, drug
of drug dens, drug
pushing, juvenile
delinquency, the
other activities inimical
to the welfare and
morals of the inhabitants
of the province;
(vi) Protect the
environment and
impose appropriate
endanger the
other forms of
illegal. logging and
smuggling of logs,
and bum farming, and
which result in
and lakes, or of
and pertinent laws,
province;
positions and the
salaries, wages,
emoluments and
or mainly from
provincial funds and
provide for
the provincial
government;
Since local governments are subject only to the power of

general supervision of the President, the President's authority is
limited to seeing to it that rules are followed and laws are faithfully
executed. The President may only point out that rules have not been
followed but the President cannot lay down the rules, neither does he
have the discretion to modify or replace the rules. Thus, the grant of
additional compensation like hospitalization and health care
insurance benefits, which was validly enacted through an ordinance
passed by the Sangguniang Panlalawigan does not need the approval

of the President to be valid.7w
(ix) Authorize the

payment of
compensation to a
vacancy, or grant
honorarium to any
in a concurrent capacity,
law;
and the appropriate
of all provincial
government property,
public documents, or
records such as those
relating to property
inventory, land
births, marriages,
taxation, accounts,
documents of public
M The Province of Negros Occidental v. Zayco, G.R. No. 182574, September 28,2010.
and
the provincial
government allow,
provide for additional
benefits to judges,
prosecutors, public
elementary and high
school teachers, and
other national
stationed or assigned to
the province.
and priorities of the province as
Code, with particular attention to agro-
wide growth and progress and
(i) Enact the annual and
supplemental
for specific programs,
activities of the
province, or for other
purposes not contrary to
law, in order to promote
the general welfare of
the province and its
inhabitants;
(ii) Subject to the

laws and upon the
members of the
sangguniang
panlalawigan, enact
ordinances levying
laws and upon the
members of the
sangguniang
panlalawigan, authorize
the provincial governor
to negotiate and contract
loans and other forms of
indebtedness;
(iv) Subject to the
laws and upon the
members of the
sangguniang
panlalawigan, enact
ordinances authorizing
the floating of bonds or
other instruments of

projects;
maintenance or the
the use of the province;
and upon the majority
vote of all the members
of the sangguniang
panlalawigan, authorize
the provincial governor
to lease to private
parties such public
buildings held in a
proprietary capacity,
the use of property
the province;
(vii) Review the
plans and zoning
ordinances of
municipalities and
adopt a comprehensive
provincial land use plan,
subject to existing laws;
and
(viii) Adopt measures to
enhance the full
implementation of the
national agrarian reform

program in coordination
with the Department of
Agrarian Reform;
(3) Subject to the provisions of Book H
of this Code, grant franchises, approve
the issuance of permits or licenses, or
enact ordinances levying taxes, fees
and charges upon such conditions and
for such purposes intended to promote
the general welfare of the inhabitants of
the province, and pursuant to this
legislative authority, shall:
(i) Fix and impose
reasonable fees and
rendered by the
entities; and
(ii) Regulate and fix the
license fees for such
activities as provided for
under this Code.
delivery of basic services and facilities
Code, and, in addition to said services
and facilities, shall:
(i) Adopt measures and
safeguards against
pollution and for the
preservation of the
natural ecosystem in the
province, in consonance
with approved
standards on human
settlements and
environmental
sanitation;
(ii) Subject to applicable
laws, facilitate or
provide for the
establishment and
maintenance of a
waterworks system or
district waterworks for
supplying water to
inhabitants of
municipalities;
and regulations, provide
for the establishment
and operation of
secondary institutions;
Sports and subject to
existing laws on tuition
fees, fix reasonable
tuition fees and other
school charges in
educational institutions
supported by the
(iv) Establish a
scholarship fund for the
poor but deserving
778, Local Government Law and Jurisprudence
students in schools
located within its
jurisdiction or for
the province;
(v) Approve measures
spread of diseases
within its territorial
jurisdiction;
(vi) Provide for the care
of paupers, the aged, the
mind, abandoned
minors, abused children,
disabled persons,
juvenile delinquents,
drug dependents, and
other needy and
and youth below
age; subject to
establish and support
the operation of centers
and facilities for said
needy and
and facilitate efforts to
promote the welfare of
families below the
poverty threshold, the
disadvantaged, and the
exploited;
(vii) Establish and

provide the maintenance
and improvement of
jails and detention
centers, institute a sound
jail management
program, and
appropriate funds for
the subsistence of
prisoners in the
province;
(viii) Establish a
provincial council
whose purpose is the
promotion of culture
and the arts, coordinate
with government
agencies and non-
governmental
organizations and,
same;
(ix) Establish a
provincial council for
the elderly which shall
formulate policies and
adopt measures
mutually beneficial to
the elderly and to the
province; and subject to
the availability of funds,
appropriate funds to
support programs and
projects for the elderly;
and provide incentives
for non-governmental
agencies and entities to
support the programs
and projects of the
elderly; and
or ordinance.
(b) The members of the sangguniang panlalawigan
shall receive a minimum monthly compensation
corresponding to Salary Grade twenty-seven (27) as
guidelines issued pursuant thereto.
Title V
APPOINTIVE LOCAL OFFICIALS COMMON TO
ALL MUNICIPALITIES, CrITIES, AND PROVINCES
Article I
Secretary to the Sanggunian
SECTION 469. Qualifications,Powers and Duties. - (a)
There shall be a secretary to the sanggunian who shall
be a career official with the rank and salary equal to a
head of department or office.
(b) No person shall be appointed secretary to the
sanggunian unless he is a citizen of the Philippines, a
resident of the local government unit concerned, of
good moral character, a holder of a college degree
preferably in law, commerce or public administration
from a recognized college or university, and a first
grade civil service eligible or its equivalent.
The appointment of a secretary to the sanggunian is
mandatory for provincial, city and municipal
governments.
+(,121/,1(
Citation:
Tue Apr 17 11:23:05 2018



for non-governmental
agencies and entities to
support the programs
and projects of the
elderly; and
or ordinance.
(b) The members of the sangguniang panlalawigan
shall receive a minimum monthly compensation
corresponding to Salary Grade twenty-seven (27) as
guidelines issued pursuant thereto.
Title V
APPOINTIVE LOCAL OFFICIALS COMMON TO
ALL MUNICIPALITIES, CrITIES, AND PROVINCES
Article I
Secretary to the Sanggunian
There shall be a secretary to the sanggunian who shall
be a career official with the rank and salary equal to a
head of department or office.
(b) No person shall be appointed secretary to the
sanggunian unless he is a citizen of the Philippines, a
resident of the local government unit concerned, of
good moral character, a holder of a college degree
preferably in law, commerce or public administration
grade civil service eligible or its equivalent.
The appointment of a secretary to the sanggunian is
governments.
(c) The secretary to the sanggunian shall take charge

of the office of the secretary to the sanggunian and
shall:
(1) Attend meetings of the sanggunian
and keep a journal of its proceedings;
(2) Keep the seal of the local
government unit and affix the same
with his signature to all ordinances,
resolutions, and other official acts of
the sanggunian and present the same to
the presiding officer for his signature;
(3) Forward to the governor or mayor,
as the case may be, for approval, copies
of ordinances enacted by the
sanggunian and duly certified by the
presiding officer, in the manner
provided in Section 54 under Book I of
this Code;
(4) Forward to the sanggunian
panlungsod or bayan concerned, in the
case of the sangguniang barangay, and
to the sangguniang panlalawigan
concerned, in the case of the
component cities or sangguniang
bayan, copies of duly approved
ordinances, in the manner provided in
Sections 56 and 57 under Book I of this
Code;
(5) Furnish, upon request of any
interested party, certified copies of
records of public character in his
custody, upon payment to the treasurer
of such fees as may be prescribed by
ordinance;
(6) Record in a book kept for the
purpose, all ordinances and resolutions
enacted or adopted by the sanggunian,

with the dates of passage and
publication thereof;
(7) Keep his office and all non-
confidential records therein open to the
public during the usual business hours;
(8) Translate into the dialect used by
the majority of the inhabitants all
ordinances and resolutions
immediately after their approval, and
cause the publication of the same
together with the original version in
the manner provided under this Code;
and
(9) Take custody of the local archives
and, where applicable, the local library
and annually account for the same; and
(d) Exercise such other powers and perform such
other duties and functions as may be prescribed by
law or ordinance relative to his position.
Article II
The Treasurer
SECTION 470. Appointment, Qualifications,Powers, and
Duties. - (a) The treasurer shall be appointed by the
Secretary of Finance from a list of at least three (3)
ranking eligible recommendees of the governor or
mayor, as the case may be, subject to civil service law,
(b) The treasurer shall be under the administrative
supervision of the governor or mayor, as the case may
be, to whom he shall report regularly on the tax
collection efforts in the local government unit;
(c) No person shall be appointed treasurer unless he is

a citizen of the Philippines, a resident of the local
government unit concerned, of good moral character,
a holder of a college degree preferably in commerce,
public administration or law from a recognized
college or university, and a first grade civil service
eligible or its equivalent. He must have acquired
experience in treasury or accounting service for at
least five (5) years in the case of the provincial or city
treasurer, and three (3) years in the case of municipal
treasurer.
The appointment of a treasurer shall be mandatory for
provincial, city and municipal governments;
(d) The treasurer shall take charge of the treasury
office, perform the duties provided for under Book II
of this Code, and shall:
(1) Advise the governor or mayor, as
the case may be, the sanggunian, and
other local government and national
officials concerned regarding
disposition of local government funds,
and on such other matters relative to
public finance;
(2) Take custody and exercise proper
management of the funds of the local
(3) Take charge of the disbursement of
all local government funds and such
other funds the custody of which may
be entrusted to him by law or other
competent authority;
(4) Inspect private commercial and
industrial establishments within the
unit concerned in relation to the
implementation of tax ordinances,
pursuant to the provisions under Book

II of this Code;
(5) Maintain and update the tax
information system of the local
government unit
(6) In the case of the provincial
treasurer, exercise technical
supervision over all treasury offices of
component cities and municipalities;
and
or ordinance.
Under Title V of Book II, all the local officials that are
common to municipalities, cities, and provinces are appointed by the
mayor or the governor as the case may be. The exceptions are the
Treasurer and the Assistant Treasurer both of whom are appointed
by the Secretary of Finance.
The Municipal Treasurer is a public officer tasked with the
custody of funds and property. His duties include taking custody of
and exercising proper management of the funds of the local
government unit concerned, and taking charge of the disbursement
of all local government funds and such other funds the custody of
which may be entrusted to him by law or other competent authority.
Pursuant to Article 217 of the Revised Penal Code, the failure of the
treasurer to have duly forthcoming such public funds or property
upon demand, is prima facie evidence that he has put such missing
funds to personal use. Being an accountable officer, he may be
convicted of malversation even in the absence of direct proof of
misappropriation so long as there is evidence of shortage in his
accounts which he is unable to explain'76
m See Cabarlo v. People of the Philippines, G.R. No. 172274, November 16,2006.
By certifying that the cash advances were "necessary and

lawful and incurred under his direct supervision," he cannot escape
the obligations imposed by Presidential Decree No. 1445 (Ordaining
and Instituting a Government Auditing Code of the Philippines),
although the same requirement would have to be ultimately
determined by the City Accountant. Section 89 of Presidential Decree
No. 1445 reads:
~8cas, ae.vanel
shcall_ e f rin
ante
tegappoy uthn or cit
inrpose. A dah
mustabe phrl
or epo .. oic n
Elquidtd as son. as,, he purpose, for which -it w
There ihas b etiserve Nth denitional oasradvatn an
t satfb allowedto Ray offii oc e rnplyeeiunless wh
,pevious cash, dvance, given, to h~im Ji. settled ora
The 89Ciian
ervi e mmssio isae No asoerdtdermn
The same requirement is reiterated in Republic Act No. 7160:
should possess th
the appointee qulfctioeqiedb
,ium
'be grntd to aniy 1l ifficialVor e le elfve o
,appiive, u P essmae Nccordane wit, the rules3
and r vgiioes aJh Comnuission on Audit ra,
The Civil Service Commission is not empowered to determine

or change the kind or nature of the appointment, for it is an essential
discretionary power and must be performed by the officer on whom
it is vested according to his best lights, the only condition being that
the appointee should possess the minimum qualification required by
law.7%
There is no law that justifies the denial of representation and
transportation allowance (RATA) for Local Government officials who
757Jaca v. People of the Philippines, G.R. No. 166967, January 28, 2013.
7% Rapisora v. Civil Service Commission, G.R. No. 107330, December 17,1993.
are reassigned. The Department of Budget and Management cannot

cite the General Appropriations Acts as a basis for denying RATA
because the local officials' salaries come from appropriations of local
governments. Neither can it argue that although respondent's salary
and allowances were charged against a local government annual
budget, "they were subject to the condition contained in the GAAs
for 1996-2005 linlng the payment of RATA to the actual
performance of duties." The Supreme Court held that the DBM's
argument "tinkers with this design by making provisions in national
budgetary laws automatically incorporated in local budgetary
ordinances, thus reducing local legislative councils - from the
provinces down to the barangays - and the legislative assembly of
the Autonomous Region in Muslim Mindanao, to mere extensions of
Congress." M This theory "is anathema to the present vertical
structure of Philippine government and to any notion of local
autonomy which the Constitution mandates."
SECTION 471. Assistant Treasurer. - (a) An assistant

treasurer may be appointed by the Secretary of
Finance from a list of at least three (3) ranking, eligible
recommendees of the governor or mayor, subject to
civil service law, rules and regulations.
(b) No person shall be appointed assistant treasurer
unless he is a citizen of the Philippines, a resident of
the local government unit concerned, of good moral
character, a holder of a college degree preferably in
commerce, public administration, or law from a
recognized college or university, and a first grade civil
service eligible or its equivalent. He must have
acquired at least five (5) years experience in the
treasury or accounting service in the case of the
provincial or city assistant treasurer, and three (3)
years in the case of municipal assistant treasurer.
7 Department of Budget and Management v. Leones, G.R. No. 169726, March 18,
2010.
The appointment of an assistant treasurer shall be

optional for provincial, city and municipal
governments;
(c) The assistant treasurer shall assist the treasurer and
perform such duties as the latter may assign to him.
He shall have authority to administer oaths
concerning notices and notifications to those
delinquent in the payment of real property tax and
concerning official matters relating to the accounts of
the treasurer or otherwise arising in the offices of the
treasurer and the assessor.
Article I
The Assessor
No person shall be appointed assessor unless he is a
citizen of the Philippines, a resident of the local
a holder of a college degree preferably in civil or
mechanical engineering, commerce, or any other
related course from a recognized college or university,
and a first grade civil service eligible or its equivalent.
He must have acquired experience in real property
assessment work or in any related field for at least five
(5) years in the case of the city or provincial assessor,
and three (3) years in the case of the municipal
assessor.
The appointment of an assessor shall be mandatory
for provincial, city and municipal governments.
(b) The assessor shall take charge of the assessor's
office, perform the duties provided under Book II of
this Code, and shall:
(1) Ensure that all laws and policies
governing the appraisal and
assessment of real properties for
taxation purposes are properly

executed;
(2) Initiate, review, and recommend
changes in policies and objectives,
plans and programs, techniques,
procedures and practices in the
valuation and assessment of real
properties for taxation purposes;
(3) Establish a systematic method of
real property assessment;
(4) Install and maintain a real property
identification and accounting system;
(5) Prepare, install and maintain a
system of tax mapping, showing
graphically all properties subject to
assessment and gather all data
concerning the same;
(6) Conduct frequent physical surveys
to verify and determine whether all
real properties within the province are
properly listed in the assessment rolls;
(7) Exercise the functions of appraisal
and assessment primarily for taxation
purposes of all real properties in the
(8) Prepare a schedule of the fair
market value for the different classes of
real properties, in accordance with Title
Two, Book II of this Code;
(9) Issue, upon request of any
interested party, certified copies of
assessment records of real property
and all other records relative to its
assessment, upon payment of a service
charge or fee to the treasurer;
(10) Submit every semester a report of

all assessments, as well as cancellations
and modifications of assessments to the
local chief executive and the
sanggunian concerned;
(11) In the case of the assessor of a
component city or municipality attend,
personally or through an authorized
representative, all sessions of the local
Board of Assessment Appeals
whenever his assessment is the subject
of the appeal, and present or submit
any informntion or record in his
possession as may be required by the
Board; and
assessor, exercise technical supervision
and visitorial functions over all
component city and municipal
assessors, coordinate with component
city or municipal assessors in the
conduct of tax mapping operations and
all other assessment activities, and
provide all forms of assistance therefor:
Provided, however,. That, upon full
provision by the component city or
municipality concerned to its assessor's
office of the minimum personnel,
equipment, and funding requirements
as may be prescribed by the Secretary
of Finance, such functions shall be
delegated to the said city or municipal
assessor; and
(c) Exercise such other powers and perform such other
ordinance.
SECTION 473. Assistant Assessor. - (a) No person
shall be appointed assistant assessor unless he is a

a holder of a college degree preferably in civil or
mechanical engineering, commerce, or any related
course from a recognized college or university, and a
first grade civil service eligible or its equivalent. He
must have acquired experience in assessment or in
any related field for at least three (3) years in the case
of the provincial or city assistant assessor, and one (1)
year in the case of the city or provincial assistant
assessor.
The appointment of an assistant assessor is optional
for provincial, city and municipal governments.
(b) The assistant assessor shall assist the assessor and
perform such other duties as the latter may assign to
him. He shall have the authority to administer oaths
on all declarations of real property for purposes of
assessments.
Sections 472 and 473 are modified by Republic Act No. 9646
(2009) or the Real Estate Service Act of the Philippines." 760 Among
others, a licensure examination is now required of every applicant
seeking to be registered and licensed as a real estate service
practitioner. The law also provides:
Seie f Registered and LicensedRa saeSiie

PTmctitioners.- - Withizti three (l years from, the
effectivi f thex
At alliion
existing and n
760
Prior to the enactment of Republic Act No. 9646, real estate service practitioners
were under the supervision of the Department of Trade and Industry through the
Bureau of Trade Regulation and Consumer Protection (BTRCP). Such authority is
now transferred to the Professional Regulation Commission (PRC) through the
Professional Regulatory Board of Real Estate Service (PRBRES) created under the
new law. See Remman Enterprises, Inc. v. Professional Regulatory Board of Real
Estate Service, G.R. No. 197676, February 4,2014.
,th -ational and local gaveininens whether careerj

Permanent, temporary or contractual, and primarily
requiring the services of yeal estate servicle
prAct0tioner, shall be filled only by registered and
,licensed real estate service practitioners,
Article IV
The Accountant
No person shall be appointed accountant unless he is
and a certified public accountant. He must have
acquired experience in the treasury or accounting
service for at least five (5) years in the case of the
provincial or city accountant, and three (3) years in the
case of the municipal accountant.
The appointment of an accountant is mandatory for
the provincial, city and municipal governments.
(b) The accountant shall take charge of both the
accounting and internal audit services of the local
government unit concerned and shall:
(1) Install and maintain an internal

audit system in the local government
unit concerned;
(2) Prepare and submit financial
statements to the governor or mayor, as
the case may be, and to the sanggunian
concerned;
(3) Appraise the sanggunian and other
local government officials on the
financial condition and operations of
the local government unit concerned;
(4) Certify to the availability of
budgetary allotment to which
expenditures and obligations may be
properly charged;
(5) Review supporting documents
before preparation of vouchers to
determine completeness of
requirements;
(6) Prepare statements of cash
advances, liquidation, salaries,
allowances, reimbursements and
remittances pertaining to the local
government unit;
(7) Prepare statements of journal
vouchers and liquidation of the same
and other adjustments related thereto;
(8) Post individual disbursements to
the subsidiary ledger and index cards;
(9) Maintain individual ledgers for
officials and employees of the local
government unit pertaining to payrolls
and deductions;
(10) Record and post in index cards
details of purchased furniture, fixtures,
and equipment, including disposal

thereof, if any;
(11) Account for all issued requests for
obligations and maintain and keep all
records and reports related thereto;
(12) Prepare journals and the analysis
of obligations and maintain and keep
all records and reports related thereto;
and
functions as may be provided by law or
ordinance.
(c) The incumbent chief accountant in the office of the
treasurer shall be given preference in the appointment
to the position of accountant.
The Local Government Code charges the city accountant with

both the accounting and internal audit services of the local
government unit and, among others, to (1) install and maintain an
internal audit system in the local government unit; (2) review
supporting documents before the preparation of vouchers to
determine the completeness of the requirements; (3) prepare
statements of cash advances, liquidation, salaries, allowances,
reimbursements and remittances pertaining to the local government
unit; (4) prepare statements of journal vouchers and liquidation of
the same and other adjustments related thereto; (5) post individual
disbursements to the subsidiary ledger and index cards; and (6)
maintain individual ledgers for officials and employees of the local
government unit pertaining to payrolls and deductions. As the City
Accountant, the accountant is presumed conversant with the
pertinent COA rules and regulations in granting cash advances. 761
76
1Jaca v. People of the Philippines, G.R. No. 166967, January 28, 2013.
Article V
The Budget Officer
SECTION 475. Qualifications, Powers and Duties. - (a)
No person shall be appointed budget officer unless he
is a citizen of the Philippines, a resident of the local
a holder of a college degree preferably in accounting,
economics, public administration or any related
must have acquired experience in government
budgeting or in any related field for at least five (5)
years in the case of the provincial or city budget
officer, and at least three (3) years in the case of the
municipal budget officer.
The appointment of a budget officer shall be
mandatory for the provincial, city, and municipal
governments.
(b) The budget officer shall take charge of the budget
office and shall:
(1) Prepare forms, orders, and circulars
embodying instructions on budgetary
and appropriation matters for the
signature of the governor or mayor, as
the case may be;
(2) Review and consolidate the budget
proposals of different departments and
offices of the local government unit;
(3) Assist the governor or mayor, as the
case may be, in the preparation of the
budget and during budget hearings;
(4) Study and evaluate budgetary
implications of proposed legislation
and submit comments and
recommendations thereon;
(5) Submit periodic budgetary reports

to the Department of Budget and
Management;
(6) Coordinate with the treasurer,
accountant, and the planning and
development coordinator for the
purpose of budgeting;
(7) Assist the sanggunian concerned in
reviewing the approved budgets of
component local government units;
(8) Coordinate with the planning and
development coordinator in the
formulation of the local government
unit development plan; and
ordinance.
(d) The appropriations for personal services of the
budget officer provided under the Department of
Budget and Management shall, upon effectivity of this
Code, be transferred to the local government unit
concerned. Thereafter, the appropriations for personal
services of the budget officer shall be provided for in
full in the budget of the local government unit.
Article VI
The Planning and Development Coordinator
No person shall be appointed planning and
development coordinator unless he is a citizen of the
Philippines, a resident of the local government unit
concerned, of good moral character, a holder of a
college degree preferably in urban planning,
development studies, economics, public
administration, or any related course from a
recognized college or university, and a first grade civil
service eligible or its equivalent. He must have

acquired experience in development planning or in
any related field for at least five (5) years in the case of
the provincial or city planning and development
coordinator, and three (3) years in the case of the
municipal planning and development coordinator.
The appointment of a planning and development
coordinator shall be mandatory for provincial, city
and municipal governments.
(b) The planning and development coordinator shall
take charge of the planning and development office
and shall:
(1) Formulate integrated economic,
social, physical, and other development
plans and policies for consideration of
the focal government development
counciL
(2) Conduct continuing studies,
researches, and training programs
necessary to evolve plans and
programs.for implementation;
(3) Integrate and coordinate all sectoral
plans and studies, undertaken by the
different functional groups or agencies;
(4) Monitor and evaluate the
implementation of the different
development programs, projects, and
activities in the local government unit
concerned in accordance with the
approved development plan;
(5) Prepare comprehensive plans and
other development planning
documents for the consideration of the
local development council;
(6) Analyze the income and

expenditure patterns, and formulate
and recommend fiscal plans and
policies for consideration of the finance
committee of the local government unit
concerned as provided under Title
Five, Book II of this Code;
(7) Promote people participation in
development planning within the local
(8) Exercise supervision and control
over the secretariat of the local
development council; and
functions and duties as may be prescribed by law or
ordinance.
Article VII
The Engineer
No person shall be appointed engineer unless he is a
and a licensed civil engineer. He must have acquired
experience in the practice of his profession for at least
five (5) years in the case of the provincial or city
engineer, and three (3) years in the case of the
municipal engineer.
The appointment of an engineer shall be mandatory
for the provincial, city and municipal governments.
The city and municipal engineer shall also act as the
local building official.
(b) The engineer shall take charge of the engineering
office and shall:
(1) Initiate, review and recommend

changes in policies and objectives,
plans and programs, techniques,
procedures and practices in
infrastructure development and public
works in general of the local
(2) Advise the governor or mayor, as
the case may be, on infrastructure,
public works, and other engineering
matters;
(3) Administer, coordinate, supervise,
and control the construction,
maintenance, improvement, and repair
of roads, bridges, and other
engineering and public works projects
of the local government unit
concerned;
(4) Provide engineering services to the
local government unit concerned,
including investigation and survey,
engineering designs, feasibility studies,
and project management;7 62
762In one case, the Supreme Court upheld the Sandiganbayan's conviction of the
City Engineer of Cebu, who acted with gross inexcusable negligence when he
approved the construction of the canal without first ascertaining the ownership of
the property where the canal would be constructed or verifying whether the
property had been expropriated. This negligence deprived private complainant of
the control and use of the middle portion of her land, resulting in a loss of P20,000
every four or five months, which represents income from harvesting and selling nipa
leaves. The complainant also claimed that she suffered injury, because informal land
settlers used the canal as their toilet, thereby dirtying and damaging the land. The
Sandiganbayan found petitioner guilty of violating Section 3 (e) of Republic Act No.
3019, and sentenced him to imprisonment for 6 years and 1 month minimum, to 8
years as maximum, with perpetual disqualification from public office. The Supreme
Court held that the City Engineer is being held liable for gross and inexcusable
negligence in performing the duties primarily vested in him by law, resulting in
undue injury to private complainant. "The good faith of heads of offices in signing a
document will only be appreciated if they, with trust and confidence, have relied on

engineer, exercise technical supervision
over all engineering offices of
component cities and municipalities;
and
ordinance.
Article VIII
The Health Officer
No person shall be appointed health officer unless he
and a licensed medical practitioner. He must have
acquired experience in the practice of his profession
for at least five (5) years in the case of the provincial or
city health officer, and three (3) years in the case of the
municipal health officer.
In the case of Rapisora v. Civil Service Commissioner, the Court

held as valid the appointment of petitioner as Provincial Health
officer although he did not possess a Certificate/Master in Public
Health/Hospital Administration which is the educational
requirement for the position at the time of appointment. The Court
ruled that when necessary, education, experience or training may be
used interchangeably to offset deficiencies. The necessity exists if the
appointee's training or experience is of such a level that the same
would more than supplement the deficiency in education
considering the demands of the position in question. The converse
holds true if the appointee's deficiency is in the required training or
experience. The decision as to when the conditions give rise to a
necessity to interchange education with experience and vice-versa
their subordinates in whom the duty is primarily lodged."See Sanchez v. People of

the Philippines, G.R. No. 187340, August 14, 2013.
rests upon the sound discretion of the appointing authority. This is

not to be viewed as an unbridled license given to the appointing
authority to appoint whomsoever he desires. This is rather a
recognition of the fact that the appointing authority is in the best
position to determine the needs of his department or agency and
how to satisfy those needs. 763
The appointment of a health officer shall be

governments.
(b) The health officer shall take charge of the office on
health services and shall:
(1) Supervise the personnel and staff of
said office, formulate program
implementation guidelines and rules
and regulations for the operation of the
said office for the approval of the
governor or mayor, as the case may be,
in order to assist him in the efficient,
effective and economical
implementation of a health services
program geared to implementation of
health-related projects and activities;
(2) Formulate measures for the
consideration of the sanggunian and
provide technical assistance and
support to the governor or mayor, as
the case may be, in carrying out
activities to ensure the delivery of basic
services and provision of adequate
facilities relative to health services
provided under Section 17 of this Code;
(3) Develop plans and strategies and
upon approval thereof by the governor
7 G.R. No. L-107330, December 17,1993.

or mayor as the case may be,

implement the same, particularly those
which have to do with health programs
and projects which the governor or
mayor, is empowered to implement
and which the sanggunian is
empowered to provide for under this
Code;
(4) In addition to the foregoing duties
and functions, the health officer shall:
.(i) Formulate and
implement policies,
plans, programs and
projects to promote the
health of the people in
the local government
unit concerned;
(ii) Advise the governor
or mayor, as the case
may be, and the
sanggunian on matters
pertaining to health,
(iii) Execute and enforce
all laws, ordinances and
regulations relating to
public health;
(iv) Recommend to the
sanggunian, through the
local health board, the
passage of such
ordinances as he may
deem necessary for the
preservation of public
health;
(v) Recommend the
prosecution of any
violation of sanitary
laws, ordinances or
regulations;
(vi) Direct the sanitary
inspection of all
business establishments
selling food items or
providing
accommodations such as
hotels, motels, lodging
houses, pension houses,
and the like, in
accordance with the
Sanitation Code;
(vii) Conduct health
information campaigns
and render health
intelligence services;
(viii) Coordinate with
other government
agencies and non-
governmental
organizations involved
in the promotion and
delivery of health
services; and
(ix) In the case of the
provincial health officer,
exercise general
supervision over health
officers of component
cities and municipalities;
and
(5) Be in the frontline of the delivery of
health services, particularly during and
in the aftermath of man-made and
natural disasters and calamities; and

ordinance.
A city's medical health officer and disaster coordinator cannot

use the excuse that he needed to attend first to the needs of his family
for his failure to respond to a bombing incident. A person's duty to
his family is not incompatible with his job-related commitment to
come to the rescue of victims of disasters. A senior medical health
officer's job entails a commitment to make a measure of personal
sacrifice and he should resign when he realized that he did not have
the will and the heart to respond.7 "
Article IX
The Civil Registrar
No person shall be appointed civil registrar unless he
a holder of a college degree from a recognized college
or university, and a first grade civil service eligible or
its equivalent. He must have acquired experience in
civil registry work for at least five (5) years in the case
of the city civil registrar and three (3) years in the case
of the municipal civil registrar.
The appointment of a civil registrar shall be
mandatory for city and municipal governments.
(b) The civil registrar shall be responsible for the civil
registration program in the local government unit
concerned, pursuant to the Civil Registry Law, the
Civil Code, and other pertinent laws, rules and
regulations issued to implement them.
(c) The Civil Registrar shall take charge of the office of
the civil registry and shall:
764
Estampa, Jr. v. City Government of Davao, G.R. No. 190681, June 21, 2010.

or mayor, as the case may be,
which have to do with civil registry
programs and projects which the
mayor is empowered to implement and
which the sanggunian is empowered to
provide for under this Code;
and functions, the civil registrar shall:
(i) Accept all registrable
documents and judicial
decrees affecting the
civil status of persons;
(ii) File, keep and
preserve in a secure
place the books required
by law;
(iii) Transcribe and enter
immediately upon
receipt all registrable
documents and judicial
decrees affecting the
civil status of persons in
the appropriate civil
registry books;
(iv) Transmit to the
Office of the Civil
Registrar-General,
within the prescribed
period, duplicate copies
of registered documents
required by law;
(v) Issue certified
transcripts or copies of
any certificate or
registered documents
upon payment of the
prescribed fees to the
treasurer;
(vi) Receive applications
for the issuance of a
marriage license and,
after determining that
the requirements and
supporting certificates
and publication thereof
for the prescribed period
have been complied
with, issue the license
upon payment of the
authorized fee to the
treasurer;
(vii) Coordinate with the
National Statistics Office
in conducting
educational campaigns
for vital registration and
assist in the preparation
of demographic and
other statistics for the
concerned; and
or ordinance.
Article X
The Administrator
SECTION 480. Qualifications, Terms, Powers and Duties.
- (a) No person shall be appointed administrator

public administration, law, or any other related course
grade civil service eligible or its equivalent. He must
have acquired experience in management and
administration work for at least five (5) years in the
case of the provincial or city administrator, and three
(3) years in the case of the municipal administrator.
The term of administrator is coterminous with that of
his appointing authority.
The appointment of an administrator shall be
mandatory for the provincial and city governments,
and optional for the municipal government.
(b) The administrator shall take charge of the office of
the administrator and shall:
implement the same particularly those
which have to do with the management
and administration-related programs
and projects which the governor or
and functions, the administrator shall:
(i) Assist in the
coordination of the work
of all the officials of the
local government unit,
under the supervision,
direction, and control of
the governor or mayor,
and for this purpose, he

may convene the chiefs
of offices and other
officials of the local
government unit;
(ii) Establish and
maintain a sound
personnel program for
unit designed to
promote career
development and
uphold the merit
principle in the local
government service;
(iii) Conduct a
continuing
organizational
development of the local
government unit with
the end in view of
instituting effective
administrative reforms;
administrative support services,
particularly those related to the
situations during and in the aftermath
of man-made and natural disasters and
calamities;
(4) Recommend to the sanggunian and
advise the governor and mayor, as the
case may be, on all other matters
relative to the management and
administration of the local government
unit; and

or by ordinance.
The position of provincial administrator was classified into a

primarily confidential, non-career position when Congress, through
the Local Government Code, made substantial changes to it. These
are:
1. Republic Act No. 7160 made the position
mandatory for every province.
2. Republic Act No. 7160 also amended the
qualifications for the provincial administrator
position. Section 480 retained the requirement of
civil service eligibility for a provincial
administrator, together with the educational
requirements, it shortened the six-year work
experience requirement to five years. That section,
however, also mandated the additional
requirements of residence in the local government
concerned, and imposed a good moral character
requirement.
3. Republic Act No. 7160 made the provincial
administrator position coterminous with its
appointing authority, reclassifying it as a non-
career service, position that is primarily
confidential. 765
Article XI
The Legal Officer
SECTION 481. Qualifications,Terms, Powers and Duties.
- (a) No person shall be appointed legal officer unless
he is a citizen of the Philippines, a resident of the local
government concerned, of good moral character, and a
member of the Philippine Bar. He must have practiced
7
6 The Provincial Government of Camarines Norte v. Gonzales, G.R. No. 185740,
July 23, 2013.
his profession for at least five (5) years in the case of

the provincial and city legal officer, and three (3) years
in the case of the municipal legal officer.
The term of the legal officer shall be coterminous with
that of his appointing authority.766
The appointment of legal officer shall be mandatory
for the provincial and city governments and optional
for the municipal government.
(b) The legal officer, the chief legal counsel of the local
government unit, shall take charge of the office of
legal services and shall:
provide legal assistance and support to
the governor or mayor, as the case may
be, in carrying out the delivery of basic
services and provisions of adequate
7 61
17 of this Code;
which have to do with programs and
projects related to legal services which
the governor or mayor is empowered
to implement and which the
sanggunian is empowered to provide
for under this Code;
766 This provision is a reiteration of the principle that since the position of City Legal
Officer is a confidential one, it is deemed to be co-terminous with that of the
appointing authority. See Hilario v. Civil Service Commission, G.R. No. 116041,
March 31,1995.
767 See Salumbides, Jr. v. Office of the Ombudsman, G.R. No. 180917, April 23, 2010
(A legal officer who renders a legal opinion on a course of action without any legal
basis becomes no different from a lay person who may approve the same because it
appears justified).

and functions, the legal officer shall:
(i) Represent the local
government unit in all
civil actions and special
proceedings wherein the
local government unit or
any official thereof, in
his official capacity, is a
party: Provided, That, in
actions or proceedings
where a component city
or municipality is a
party adverse to the
or to another component
city or municipality, a
special legal officer may
be employed to
represent the adverse
party;
This provision not only identifies the powers and functions of

a local government unit's legal officer. It also restricts who may
represent the local government unit as its counsel in court
proceedings. Being a special law on the issue of representation in
court that is exclusively made applicable to local government units,
the Local Government Code must prevail over the provisions of the
Administrative Code, which classifies only as a general law on the
76
subject matter. 1
7
6 The Office of the Solicitor General v. The Court of Appeals, G.E. No. 199027, June
9, 2014. The Supreme Court held that the fact that the Office of the Solicitor General
initially filed a motion for extension of time to file the required memorandum before
the Court of Appeals could not have estopped it from raising the issue of its lack of
authority to represent the Municipality of Saguiran. The Court added that no action
of the OSG could have validated an act that was beyond the scope of its authority.
(ii) When required by

the governor, mayor or
sanggunian, draft
ordinances, contracts,
bonds, leases and other
instruments, involving
any interest of the local
government unit and
provide comments and
recommendations on
any instrument already
drawn;
(iii) Render his opinion
in writing on any
question of law when
requested to do so by
the governor, mayor or
sanggunianr
(iv) Investigate or cause
to be investigated any
local official or
employee for
administrative neglect
or misconduct in office,
and recommend
appropriate action to the
governor, mayor or
sanggunian, as the case
may be;
(v) Investigate or cause
to be investigated any
person, firm or
corporation holding any
franchise or exercising
any public privilege for
failure to comply with
any term or condition in
the grant of such
franchise or privilege,
and recommend
appropriate action to the
governor, mayor or
sanggunian, as the case
may be;
(vi) When directed by
the governor, mayor, or
sanggunian, initiate and
prosecute, in the interest
of the local government
unit concerned, any civil
action on any bond,
lease or other contract
upon any breach or
violation thereof; and
(vii) Review and submit
recommendations on
ordinances approved
and execute orders
issued by component
units;
(3) Recommend measures to the
sanggunian and advise the governor or
mayor, as the case may be, on all other
matters related to upholding the rule of
law;
(4) Be in the frontline of protecting
human rights and prosecuting any
violations thereof, particularly those
which occur during and in the
aftermath of man-made or natural
disasters or calamities; and
or ordinance.
Section 481 (a) mandates the appointment of a city legal

officer. Under Section 481 (b) (3) (i), the city legal officer is supposed
to represent the city in all civil actions, as in this case, and special
proceedings wherein the city or any of its officials is a party. In the
case of Urdaneta City, however, the position of city legal officer is
still vacant, although its charter was enacted way back in 1998.
Because of the vacancy, the City Prosecutor's appearance as counsel
of Urdaneta City is proper. The City Prosecutor remains as the city's
legal adviser and officer for civil cases, a function that could not yet
be transferred to the city legal officer.
The appearance of the Lazaro Law Firm as counsel for
Urdaneta City is against the law. Section 481 (b) (3) (i) provides when
a special legal officer may be employed, that is, in actions or
proceedings where a component city or municipality is a party
adverse to the provincial government. But this case is not between
Urdaneta City and the Province of Pangasinan. And we have
consistently held that a local government unit cannot be represented
by private counsel as only public officers may act for and in behalf of
public entities and public funds should not be spent to hire private
lawyers .769
Private attorneys cannot represent a province or municipality
in lawsuits. The municipality's authority to employ a private lawyer
is expressly limited only to situations where the provincial fiscal is
disqualified to represent it, such as when the municipality is a party
adverse to the provincial government or to some other municipality
in the same province, and when, in a case involving the municipality,
he, or his wife, or child, is pecuniarily involved, as heir legatee,
creditor or otherwise.7 0 For the aforementioned exceptions to apply,
the fact that the provincial fiscal was disqualified to handle the
municipality's case must appear on record.77 The legality of his
representation can be questioned at any stage of the proceedings 7 2
769 Asean Pacific Planners, App Construction and Development Corporation v. City
of Urdaneta, G.R. No. 162525, September 23, 2008.
77
0 Alinsug v. Regional Trial Court, G.R. No. 108232, August 23,1993.
771
Pilila v. Court of Appeals, G.R. No. 105909, June 28,1994.
m Pilila v. Court of Appeals, G.R. No. 105909, June 28,1994.
The fiscal's refusal to represent the municipality is not a legal

justification for employing the services of private counsel. Unlike a
practicing lawyer who has the right to decline employment, a fiscal
cannot refuse to perform his functions on grounds not provided for
by law without violating his oath of office. Instead of engaging the
services of a special attorney, the municipal council should request
the Secretary of Justice to appoint an acting provincial fiscal in place
of the provincial fiscal who has declined to handle and prosecute its
case in court.m
A municipality may not be represented by a private law firm
even if it had volunteered its services gratis. The rationale for the
prohibition was enunciated in Ramos v. Court ofAppeals.7 74 The Court
explained that the lawmaker in requiring that the municipality
should be represented in its court cases by a government lawyer like
its municipal attorney and the provincial fiscal intended that the
municipality should not be burdened with the expenses of hiring a
private lawyer. The lawmaker also assumed that the interests of the
municipality would be best protected if a government lawyer
handles its litigations. It is to be expected that the municipal attorney
and the fiscal would be faithful and dedicated to the municipality's
interests and that, as civil service employees, they could be held
accountable for any misconduct or dereliction of duty.
Although a municipality may not hire a private lawyer to
represent it in litigations, in the interest of substantial justice
however, a municipality may adopt the work already performed in
good faith by such private lawyer, which work is beneficial to it (1)
provided that no injustice is thereby heaped on the adverse party and
(2) provided further that no compensation in any guise is paid
therefor by said municipality to the private lawyer. Unless so
expressly adopted, the private lawyer's work cannot bind the
municipality.m
The prohibition against representation by private counsel
does not necessarily apply to public officials. In the discharge of
governmental functions, "municipal corporations are responsible for
m Pilila v. Court of Appeals, G.R. No. 105909, June 28,1994.

774 G.R. No. L-53766, October 30,1981.
M Ramos v. Court of Appeals, G.R. No. 99425, March 3,1997.
the acts of its officers, except if and when, the only to the extent that
they have acted by authority of the law, and in conformity with the
requirements thereof." In such instances, this Court has sanctioned
the representation by private counsel of public officials. The key to
resolving the issue of whether a local government official may secure
the services of private counsel, in an action filed against him in his
official capacity lies on the nature of the action and the relief that is
sought. 776 Thus, in Macenido v. Court of Appeals, m the Court
recognized the right of respondents to be represented by private
counsel in view of the damages sought which, if granted, could result
in personal liability.
Article XII
The Agriculturist
No person shall be appointed agriculturist unless he is
a holder of a college degree in agriculture or any
related course from a recognized college or university
He must have practiced his profession in agriculture
or acquired experience in a related field for at least
agriculturist, and three (3) years in the case of the
municipal agriculturist.
The position of an agriculturist shall be mandatory for
the provincial government and optional for the city
and municipal governments.
(b) The agriculturist shall take charge of the office for
agricultural services and shall:
approval of the sanggunian and
776 Alinsug v. Regional Trial Court, G.R. No. 108232, August 23,1993.
Mancenido v. Court of Appeals, G.R. No. 118605, April 12,2000.

the case may be, in carrying out said
measures to ensure the delivery of
basic services and provision of
adequate facilities relative to
agricultural services as provided for
under Section 17 of this Code;
which have to do with agricultural
governor or mayor is empowered to
implement and which the sanggunian
is empowered to provide for under this
Code;
and functions, the agriculturist shall:
(i) Ensure that
maximum assistance
and access to resources
in the production,
processing and
marketing of
agricultural and aqua-
cultural and marine
products are extended to
farmers, fishermen and
local entrepreneurs;
(ii) Conduct or cause to
be conducted location-
specific agricultural
researches and assist in
making available the
appropriate technology
arising out of and
disseminating
information on basic
research on crops,
prevention and control
of plant diseases and
pests, and other
agricultural matters
which will maximize
productivity;
(iii) Assist the governor
may be, in the
establishment and
extension services of
demonstration farms or
aqua-culture and marine
products;
(iv) Enforce rules and
regulations relating to
agriculture and aqua-
culture;
(v) Coordinate with
government agencies
organizations which
promote agricultural
productivity through
appropriate technology
compatible with
environmental integrity;
(4) Be in the frontline of delivery of
basic agricultural services, particularly
those needed for the survival of the
inhabitants during and in the aftermath
of man-made and natural disasters;
advise the governor or mayor, as the

related to agriculture and aqua-culture
which will improve the livelihood and
living conditions of the inhabitants;
and
ordinance;
Article XII
The Social Welfare and Development Officer
No person shall be appointed social welfare and
development officer unless he is a citizen of the
concerned, of good moral character, a duly licensed
social worker or a holder of a college degree
preferably in sociology or any other related course
grade civil service eligible or its equivalent. He must
have acquired experience in the practice of social work
for at least five (5) years in the case of the provincial or
city social welfare and development officer, and three
(3) years in the case of the municipal social welfare
and development officer.
The appointment of a social welfare and development
officer is mandatory for provincial and city
governments, and optional for municipal government.
(b) The social welfare and development officer shall
take charge of the office on social welfare and
development services and shall:
approval of the sanggunian and

adequate facilities relative to social
welfare and development services as
Code;
implement the same particularly those
which have to do with social welfare
Code;
(3) In addition to the foregoing duties,
the social welfare and development
officer shall:
(i) Identify the basic
needs of the needy, the
disadvantaged and the
impoverished and
develop and implement
appropriate measures to
alleviate their problems
and improve their living
conditions;
(ii) Provide relief and
appropriate crisis
intervention for victims
of abuse and
exploitation and
recommend appropriate
measures to deter
further abuse and
exploitation;
(iii) Assist the governor

may be, in
implementing the
barangay level program
for the total
development and
protection of children up
to six (6) years of age;
(iv) Facilitate the
implementation of
welfare programs for the
disabled, elderly, and
victims of drug
addiction, the
rehabilitation of
prisoners and parolees,
the prevention of
juvenile delinquency
and such other activities
which would eliminate
or minimize the ill-
effects of poverty;
(v) Initiate and support
youth welfare programs
that will enhance the
role of the youth in
nation-building;
(vi) Coordinate with
government agencies
organizations which
have for their purpose
the promotion and the
protection of all needy,
disadvantaged,
underprivileged or
impoverished groups or
individuals, particularly
those identified to be
vulnerable and high-risk
to exploitation, abuse
and neglect;
(4) Be in the frontline of service
delivery, particularly those which have
to do with immediate relief during and
assistance in the aftermath of man-
made and natural disaster and natural
calamities;
related to social welfare and
development services which will
improve the livelihood and living
conditions of the inhabitants; and
or ordinance.
Article XIV
The Environment and Natural Resources Officer
No person shall be appointed environment and
natural resources officer unless he is a citizen of the
concerned, of good moral character, a holder of a
college degree preferably in environment, forestry,
agriculture or any related course from a recognized
eligible or its equivalent. He must have acquired
experience in environmental and natural resources
management, conservation, and utilization, for at least

environment and natural resources officer, and three
(3) years in the case of the municipal environment and
natural resources officer.
The appointment of the environment and natural
resources officer is optional for provincial, city, and
municipal governments.
(b) The environment and natural resources
management officer shall take charge of the office on
environment and natural resources and shall:
environment and natural resources
services as provided for under Section
17 of this Code;
upon approval thereof, by the governor
which have to do with environment
and natural resources programs and
projects which the governor or mayor
is empowered to implement and which
the sanggunian is empowered to
and functions, the environment and
natural resources officer shall:
(i) Establish, maintain,
protect and preserve
communal forests,
mangroves, greenbelts,
commercial forests and
similar forest projects
like industrial tree farms
and agro-forestry
projects;
(ii) Provide extension
services to beneficiaries
of forest development
projects and technical,
financial and
infrastructure assistance;
(iii) Manage and
maintain seed banks and
produce seedlings for
forests and tree parks;
(iv) Provide extension
services to beneficiaries
of forest development
projects and render
assistance for natural
resources-related
conservation and
utilization activities
consistent with
ecological balance;
(v) Promote the small-
scale mining and
utilization of mineral
resources, particularly
mining of gold;
(vi) Coordinate with
government agencies
organizations in the
implementation of
control land, air and
water pollution with the
assistance of the
Department of
Environment and
Natural Resources;
services concerning the environment
and natural resources, particularly in
the renewal and rehabilitation of the
environment during and in the
aftermath of man-made and natural
case may be, on all matters relative to
the protection, conservation maximum
utilization, application of appropriate
technology and other matters related to
the environment and natural resources;
and
ordinance.
Article XV
The Architect
No person shall be appointed architect unless he is a
and a duly licensed architect. He must have practiced
his profession for at least five (5) years in the case of
the provincial or city architect, and three (3) years in
the case of the municipal architect.
The appointment of the architect is optional for

provincial, city and municipal governments.
(b) The Architect shall take charge of the office on
architectural planning and design and shall:
architectural planning and design as
Code;
which have to do with architectural
planning and design programs and
projects which the governor or mayor
is empowered to implement and which
and functions, the architect shall:
(i) Prepare and
recommend for
sanggunian the
architectural plan and
design for the local
government unit or a
part thereof, including
the renewal of slums
and blighted areas, land
reclamation activities,
the greening of land,
and appropriate
planning of marine and
foreshore areas;
(ii) Review and
recommend for
appropriate action of the
sanggunian, governor or
mayor, as the case may
be, the architectural
plans and design
submitted by
governmental and non-
governmental entities or
individuals, particularly
those for undeveloped,
underdeveloped, and
poorly-designed areas;
and
(iii) Coordinate with
government and non-
government entities and
individuals involved in
the aesthetics and the
maximum utilization of
the land and water
unit, compatible with
environmental integrity
and ecological balance;
services involving architectural
planning and design, particularly those
related to the redesigning of spatial
distribution of basic facilities and
physical structures during and in the

relative to the architectural planning
and design as it relates to the total
socio-economic development of the
local government unit; and
ordinance.
Article XVI
The Information Officer
No person shall be appointed information officer
journalism, mass communications or any related
must have experience in writing articles and research
papers, or in writing for print, television or broadcast
media for at least three (3) years in the case of the
provincial or city information officer, and one (1) year
in the case of municipal information officer.
The appointment of the information officer is optional
for the provincial, city and municipal governments.
The term of the information officer is coterminous
with that of his appointing authority.
(b) The information officer shall take charge of the
office on public information and shall:

the case may be, in providing the
information and research data required
for the delivery of basic services and
provision of adequate facilities so that
the public becomes aware of said
services and may fully avail of the
same;
(2) Develop plans and strategies and,
which have to do with public
information and research data to
support programs and projects which
the governor or mayor is empowered
to implement and which the
sanggunian is empowered to provide
for under this Code;
and functions, the information officer
shall:
(i) Provide relevant,
adequate, and timely
information to the local
government unit and its
residents;
(ii) Furnish information
and data on local
government units to
government agencies or
offices as may be
required by law or
ordinance; and non-
governmental
organizations to be
furnished to said
agencies and
organizations;
(iii) Maintain effective
liaison with the various
sectors of the
community on matters
and issues that affect the
livelihood and the
quality of life of the
inhabitants and
encourage support for
programs of the local
and national
government;
(4) Be in the frontline in providing
information during and in the
disasters and calamities, with special
attention to the victims thereof, to help
minimize injuries and casualties during
and after the emergency, and to
accelerate relief and rehabilitation;
public information and research data as
it relates to the total socio-economic
development of the local government
unit; and
ordinance.
Article XVII
The Cooperatives Officer
No person shall be appointed cooperatives officer
business administration with special training in
cooperatives or any related course from a recognized
eligible or its equivalent. He must have experience in
cooperatives organization and management for at
least five (5) years in the case of provincial or city
cooperatives officer, and three (3) years in the case of
municipal cooperatives officer.
The appointment of the cooperatives officer is
optional for the provincial and city governments.
(b) The cooperatives officer shall take charge of the
office for the development of cooperatives and shall:
consideration of the sanggunian, and
basic services and provision of facilities
through the development of
cooperatives, and in providing access
to such services and facilities;
(2) Develop plans and strategies and,
which have to do with the integration
of cooperatives principles and methods
in programs and projects which the

Code;
and functions, the cooperatives officer
shall:
(i) Assist in the
organization of
cooperatives;
(ii) Provide technical
and other forms of
assistance to existing
cooperatives to enhance
their viability as an
economic enterprise and
social organization;
(iii) Assist cooperatives
in establishing linkages
with government
agencies and non-
government
organizations involved
in the promotion and
integration of the
concept of cooperatives
in the livelihood of the
people and other
community activities;
(4) Be in the frontline of cooperatives
organization, rehabilitation or viability-
enhancement, particularly during and
in the aftermath of man-made and
natural calamities and disasters, to aid
in their survival and, if necessary
subsequent rehabilitation;
(5) Recommend to the sanggunian, and

advise the governor or mayor, as, the
cooperatives development and
viability-enhancement which will
improve the livelihood and quality of
life of the inhabitants; and
ordinance.
Article XVIII
The Population Officer
No person shall be appointed population officer
character, a holder of a college degree with specialized
training in population development from a recognized
eligible or its equivalent. He must have experience in
the implementation of programs on population
development or responsible parenthood for at least
population officer, and three (3) years in the case of
the municipal population officer.
The appointment of a population officer shall be
optional in the local government unit: Provided,
however, That provinces and cities which have existing
population offices shall continue to maintain such
offices for a period of five (5) years from the date of
effectivity of this Code, after which said offices shall
become optional.
(b) The population officer shall take charge of the
office on population development and shall:

adequate facilities relative to the
integration of the population
development principles and in
providing access to said services and
facilities;
which have to do with the integration
of population development principles
and methods in programs and projects
which the governor or mayor is
empowered to implement and which
and functions, the population officer
shall:
(i) Assist the governor or
mayor, as the case may
be, in the
implementation of the
Constitutional
provisions relative to
population development
and the promotion of
responsible parenthood;
(ii) Establish and
maintain an updated
data bank for program
operations, development
planning and an
educational program to
ensure the people's
participation in and
understanding of
population
development;
(iii) Implement
appropriate training
programs responsive to
the cultural heritage of
the inhabitants; and
ordinance.
Article XIX
The Veterinarian
No person shall be appointed veterinarian unless he is
a licensed doctor of veterinary medicine. He must
have practiced his profession for at least three (3)
years in the case of provincial or city veterinarian and
at least one (1) year in the case of the municipal
veterinarian.
The appointment of a veterinarian officer is
mandatory for the provincial and city governments.
(b) The veterinarian shall take charge of the office for
veterinary services and shall:
consideration of the sanggunian, and

adequate facilities pursuant to Section
17 of this Code;
which have to do with veterinary-
related activities which the governor or
and functions, the veterinarian shall:
(i) Advise the governor
or the mayor, as the case
may be, on all matters
pertaining to the
slaughter of animals for
human consumption
and the regulation of
slaughterhouses;
(ii) Regulate the keeping
of domestic animals;
(iii) Regulate and inspect
poultry, milk and dairy
products for public
consumption;
(iv) Enforce all laws and
regulations for the
prevention of cruelty to
animals; and
(v) Take the necessary
measures to eradicate,
prevent or cure all forms

of animal diseases;
(4) Be in the frontline of veterinary
related activities, such as in the
outbreak of highly-contagious and
deadly diseases, and in situations
resulting in the depletion of animals for
work and human consumption,
particularly those arising from and in
the aftermath of man-made and natural
relative to veterinary services which
will increase the number and improve
the quality of livestock, poultry and
other domestic animals used for work
or human consumption; and
ordinance.
Article XX
The General Services Officer
No person shall be appointed general services officer
character, a holder of a college degree on public
administration, business administration and
management from a recognized college or university,
He must have acquired experience in general services,
including management of supply, property, solid
waste disposal, and general sanitation for at least five
(5) years in the case of the provincial or city general

services officer, and at least three (3) years in the case
of the municipal general services officer.
The appointment of a general services officer shall be
mandatory for the provincial and city governments,
(b) The general services officer shall take charge of the
office on general services and shall:
adequate facilities pursuant to Section
17 of this Code and which require
general services expertise and technical
support services;
which have to do with general services
supportive of the welfare of the
inhabitants which the governor or
and functions, the general services
officer shall:
(i) Take custody of and
be accountable for all
properties, real or
personal, owned by the
and those granted to it
in the form of donation,

reparation, assistance
and counterpart of joint
projects;
(ii) With the approval of
the governor or mayor,
as the case may be,
assign building or land
space to local officials or
other public officials,
who by law, are entitled
to such space;
(iii) Recommend to the
governor or mayor, as
the case may be, the
reasonable rental rates
for local government
properties, whether real
or personal, which will
be leased to public or
private entities by the
local government;
(iv) Recommend to the
governor or mayor, as
the case may be,
reasonable rental rates
of private properties
which may be leased for
the official use of the
(v) Maintain and
supervise janitorial,
security, landscaping
and other related
services in all local
government public
buildings and other real
property, whether
owned or leased by the
(vi) Collate and
disseminate information
regarding prices,
shipping and other costs
of supplies and other
items commonly used
by the local government
unit;
(vii) Perform archival
and record management
with respect to records
of offices and
departments of the local
government unit; and
(viii) Perform all other
functions pertaining to
supply and property
management heretofore
performed by the local
government treasurer;
and enforce policies on
records creation,
maintenance, and
disposal;
(4) Be in the frontline of general
services related activities, such as the
possible or imminent destruction or
damage to records, supplies,
properties, and structures and the
orderly and sanitary clearing up of
waste materials or debris, particularly
during and in the aftermath of man-
made and natural disasters and
calamities;

relative to general services; and
ordinance.
Title VI
LEAGUES OF LOCAL GOVERNMENT UNITS AND
ELECTIVE OFFICIALS
Chapter I
Leagues of Local Government Units
Article I
Liga ng Mga Barangay
SECTION 491. Purpose of Organization. - There shall

be an organization of all barangays to be known as the
Liga ng mga Barangay 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 Liga ng Mga Barangay is the organization of all

barangays, the primary purpose of which is the determination of the
representation of the Liga in the sanggunians, and the ventilation,
articulation, and crystallization of issues affecting barangay
government administration and securing solutions thereto, through
proper and legal means. The Liga has chapters at the municipal, city
and provincial and metropolitan political subdivision levels. The
municipal and city chapters of the Liga are composed of the
barangay representatives from the municipality or city concerned.
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relative to general services; and
ordinance.
Title VI
LEAGUES OF LOCAL GOVERNMENT UNITS AND
ELECTIVE OFFICIALS
Chapter I
Leagues of Local Government Units
Article I
Liga ng Mga Barangay

be an organization of all barangays to be known as the
Liga ng mga Barangay 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 Liga ng Mga Barangay is the organization of all

barangays, the primary purpose of which is the determination of the
representation of the Liga in the sanggunians, and the ventilation,
articulation, and crystallization of issues affecting barangay
government administration and securing solutions thereto, through
proper and legal means. The Liga has chapters at the municipal, city
and provincial and metropolitan political subdivision levels. The
municipal and city chapters of the Liga are composed of the
barangay representatives from the municipality or city concerned.
The presidents of the municipal and city chapters of the Liga form
the provincial or metropolitan political subdivision chapters of the
Liga. The presidents of the chapters of the Liga in highly urbanized
cities, provinces and the Metro Manila area and other metropolitan
political subdivisions constitute the National Liga ng Mga
Barangay.7
According to the Supreme Court, as conceptualized in the
Local Government Code, the barangay is positioned to influence and
direct the development of the entire country. This was heralded by
the adoption of the bottom-to-top approach process of development
which requires the development plans of the barangay to be
considered in the development plans of the municipality, city or
province, whose plans in turn are to be taken into account by the
central government in its plans for the development of the entire
country. The Liga is the vehicle assigned to make this new
development approach materialize and produce results.7
The Liga is subject to DILG supervision. 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 barangay
participates 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."5 0
The Department of Interior and Local Government's
Memorandum directing local government officials not to recognize
Alex David as the National Liga President "smacked of
superciliousness and injudiciousness." The DILG should be
7M The National Liga ng mga Barangay v. Paredes, G.R. No. 130775, September 27,
2004.
"The National Liga ng mga Barangay v. Paredes, G.R. No. 130775, September 27,
2004.
78o The National Liga ng mga Barangay v. Paredes, G.R. No. 130775, September 27,
2004.
forthright, circumspect and supportive in its dealings with the Ligas

especially the Liga ng mga Barangay. The indispensable role played
by the latter in the development of the barangays and the promotion
of the welfare of the inhabitants thereof deserve no less than the full
support and respect of the other agencies of government.Thl
SECTION 492. Representation, Chapters, National Liga.

- Every barangay shall be represented in said liga by
the punong barangay or, in his absence or incapacity,
by a sanggunian member duly elected for the purpose
among its members, who shall attend all meetings or
deliberations called by the different chapters of the
liga.
The liga shall have chapters at the municipal, city,
provincial and metropolitan political subdivision
levels.
The municipal and city chapters of the liga shall be
composed of the barangay representatives of
municipal and city barangays respectively. The duly
elected presidents of component municipal and city
chapters shall constitute the provincial chapter or the
metropolitan political subdivision chapter. The duly
elected presidents of highly-urbanized cities,
provincial chapters, the Metropolitan Manila chapter
and metropolitan political subdivision chapters shall
constitute the National Liga ng mga Barangay.
SECTION 493. Organization. - The liga at the
municipal, city, provincial, metropolitan political
subdivision, and national levels directly elect a
president, a vice-president, and five (5) members of
the board of directors. The board shall appoint its
secretary and treasurer and create such other positions
as it may deem necessary for the management of the
chapter. A secretary-general shall be elected from
m The National Liga ng mga Barangay v. Paredes, G.R. No. 130775, September 27,
2004.
among the members of the national liga and shall be

charged with the overall operation of the liga on the
national level. The board shall coordinate the activities
of the chapters of the liga.
This provision requires - and not merely authorizes - the

board of directors to "create such other positions as it may deem
necessary for the management of the chapter" and belies the claim
that it limits the officers of a chapter to the president, vice president,
five members of the board of directors, secretary, and treasurer.
Congress can delegate the power to create positions provided there is
a sufficient standard to be foflowed.782
SECTION 494. Ex-Officio Membership in Sanggunians.

- The duly elected presidents of the liga at the
municipal, city and provincial levels, including the
component cities and municipalities of Metropolitan
Manila, shall serve as ex officio members of the
sangguniang bayan, sangguniang panlungsod,
sangguniang panlalawigan, respectively. They shall
serve as such only during their term of office as
presidents of the liga chapters, which in no case shall
be beyond the term of office of the sanggunian
concerned.
Sections 491 and 494 should be applied prospectively. Section

494 provides that the term of office of the liga presidents shall in no
case go "beyond the term of office of the sanggunian concerned."
Consequently, the expiration of their terms of office as ex officio
members of the sanggunian concerned coincides with the expiration
of the term of office of the regular members thereof. The section,
however, does not fix the specific duration of their term as liga
president. This is left to the by-laws of the liga pursuant to Article
211 (g) of the Rules and Regulations Implementing the Local
Government Code (IRR for brevity). It may be recalled that under
Republic Act No. 6679, the term of office of the punong barangay
elected in the 28 March 1989 election for barangay officials was five
7 Viola v. Alunan I1, G.R. No. 115844, August 15,1997.

years commencing on 1 May 1989 and ending on 31 May 1994. It also

provides that the next regular election of barangay officials shall be
on the second Monday of May 1994 and on the same day every five
years thereafter and that their term of office shall begin on the first
day of June following their election and until their successors shall
have been elected and qualified. On the other hand, Section 43 (c) of
the Local Government Code of 1991 fixes the term of elective
barangay officials at three years which, insofar as those first elected
under it are concerned, shall begin "after the regular election... on
the second Monday of May 1994."m8
The Department of Interior and Local Government in Opinion
No. 171, series of 1992, opined that until and unless the constitution
and by-laws of the national Liga had been adopted and ratified as
required by the RRI, there could be no legal basis for the holding of
elections for a Liga chapter, and its incumbent president should
continue as ex officio members of the sanggunian. This opinion was
reiterated in Opinion No. 220, series of 1992; Opinion No. 223, series
of 1992; Opinion No. 249, series of 1993. The pertinent issuances of
the DILG are in the nature of executive construction and are entitled
to great weight and respect by the Court.M
SECTION 495. Powers, Functions and Duties of the Liga

ng mga Barangay.- The Liga ng mga Barangay shall:
(a) Give priority to programs designed for the total
development of the barangays and in consonance with
the policies, programs and projects of the National
Government;
(b) Assist in the education of barangay residents for
people's participation in local government
administration in order to promote united and
concerted action to achieve country-wide
development goals;
(c) Supplement the efforts of government in creating
gainful employment within the barangay;
m Galarosa v. Valencia, G.R. No. 109455, November 11, 1993.

4
M Miguel v. Court of Appeals, G.R. No. 111749, February 23,1994.
(d) Adopt measures to promote the welfare of

barangay officials;
(e) Serve as a forum of the barangays in order to forge
linkages with government and non-governmental
organizations and thereby promote the social,
economic and political well-being of the barangays;
and
(f) Exercise such other powers and perform such other
duties and functions which will bring about stronger
ties between barangays and promote the welfare of
the barangay inhabitants.
Article II
League of Municipalities
be an organization of all municipalities to be known as
the League of Municipalities for the primary purpose
of ventilating, articulating and crystallizing issues
affecting municipal government administration, and
securing, through proper and legal means, solutions
thereto.
The league shall form provincial chapters composed
of the league presidents for all component
municipalities of the province.
SECTION 497. Representation. - Every municipality
shall be represented in the league by the municipal
mayor or in his absence, by the vice-mayor or a
sanggunian member duly elected for the purpose by
the members, who shall attend all meetings and
participate in the deliberations of th league.
SECTION 498. Powers, Functions and Duties of the
League of Municipalities. - The League of
Municipalities shall:
(a) Assist the National Government in the formulation
and implementation of policies, programs and projects
affecting municipalities as a whole;
(b) Promote local autonomy at the municipal level;

(c) Adopt measures for the promotion of the welfare
of all municipalities and its officials and employees;
(d) Encourage people's participation in local
government administration in order to promote
united and concerted action for the attainment of
country-wide development goals;
(e) Supplement the efforts of the National
Government in creating opportunities for gainful
employment within the municipalities;
(f) Give priority to programs designed for the total
development of the municipalities in consonance with
the policies, programs and projects of the National
Government;
(g) Serve as a forum for crystallizing and expressing
ideas, seeking the necessary assistance of the National
Government, and providing the private sector
avenues for cooperation in the promotion of the
welfare of the municipalities; and
other duties and functions as the league may prescribe
for the welfare of the municipalities.
Article III
League of Cities
be an organization of all cities to be known as the
League of Cities for the primary purpose of
ventilating, articulating and crystallizing issues
affecting city government administration, and
securing, through proper and legal means, solutions
thereto.
The league may form chapters at the provincial level
for the component cities of a province. Highly-
urbanized cities may also form a chapter of the
League. The National League shall be composed of the
presidents of the league of highly-urbanized cities and
the presidents of the provincial chapters of the league

of component cities.
SECTION 500. Representation. - Every city shall be
represented in the league by the city mayor or, in his
absence, by the city vice-mayor or a sanggunian
member duly elected for the purpose by the members,
who shall attend all meetings and participate in the
deliberations of the league.
League of Cities. - The League of Cities shall:
and implementation of the policies, programs and
projects affecting cities as a whole;
(b) Promote local autonomy at the city level;
of all cities and its officials and employees;
country-wide development goals;
employment within the cities;
development of cities in consonance with the policies,
programs and projects of the National Government;
Government and providing the private sector avenues
for cooperation in the promotion of the welfare of the
cities; and
for the welfare of the cities.
Article IV
League of Provinces
be an organization of all provinces to be known as the
League of Provinces for the primary purpose of
ventilating, articulating and crystallizing issues
affecting provincial and metropolitan political
subdivision government administration, and securing,
through proper and legal means, solutions thereto. For
this purpose, the Metropolitan Manila Area and any
metropolitan political subdivision shall be considered
as separate provincial units of the league.
SECTION 503. Representation. - Every province shall
be represented in the league by the provincial
governor, or in his absence, by the provincial vice-
governor or a sanggunian member duly elected for the
purpose by the members, who shall attend all
meetings and participate in the deliberations of the
league.
League of Provinces. - The League of Provinces shall:
and implementation of the policies, programs and
projects affecting provinces as a whole;
(b) Promote local autonomy at the provincial level;T85
of all provinces and its officials and employees;
countrywide development goals;
785
In League of Provinces v. Department of Environment and Natural Resources
(G.R. No. 175368, April 11, 2013) the Supreme Court held that section 504 (b), (c), and
(h) gave the League standing to challenge the Constitutionality of section 17 (B) (3)
(III) of the Local Government Code.

employment within the province;
development of the provinces in consonance with the
policies, programs and projects of the National
Government;
Government and providing the private sector avenues
for cooperation in the promotion of the welfare of the
provinces; and
for the welfare of the provinces and metropolitan
political subdivisions.
Article V
Provisions Common to All Leagues
SECTION 505. Funding. - (a) All leagues shall derive
its funds from contributions of member local
government units and from fund-raising projects and
activities without the necessity of securing permits
therefor: Provided, That the proceeds from said fund-
raising projects and activities shall be used primarily
to fund the projects for which the said proceeds have
been raised, subject to the pertinent provisions of this
Code and the Omnibus Election Code.
(b) All funds of leagues shall be deposited as trust
funds with its treasurer and shall be disbursed in
accordance with the board of director's resolutions,
subject to pertinent accounting and auditing rules and
regulations: Provided, That the treasurer shall be
bonded in an amount to be determined by the board
of directors. The funds of a chapter shall be deposited
as chapter funds and funds of the national league shall

be deposited as national funds.
SECTION 506. OrganizationalStructure. - To ensure
the effective and efficient administration, the leagues
for municipalities, cities and provinces shall elect
chapter-level and national-level boards of directors
and a set of officers headed by the president. A
secretary-general shall be chosen from among the
national league members to manage the day to day
operation and activities of the national league. The
board of directors on the chapter or national level may
create such other positions as may be deemed
necessary for the management of the chapters and of
the national league. The national board of directors of
the leagues for municipalities, cities or provinces shall
coordinate programs, projects and activities of the
chapter and the national-level league.
SECTION 507. Constitution and By-laws of the Liga and
the Leagues. - All other matters not herein otherwise
provided for affecting the internal organization of the
leagues of local government units shall be governed
by their respective constitution and by-laws which are
hereby made suppletory to the provision of this
Chapter: Provided, That said constitution and by-laws
shall always conform to the provisions of the
Constitution and existing laws.
The ligas are primarily governed by the provisions of the

Local Government Code. However, their respective constitutions and
by-laws shall govern all other matters affecting the internal
organization of the liga not otherwise provided for in the Local
Government Code provided that the constitution and by-laws shall
be suppletory to the provisions of Book Ill, Title VI of the Local
Government Code and shall always conform to the provisions of the
Constitution and existing laws.7m
6
7 Bito-Onon v. Fernancez, G.R. No. 139813, January 31, 2001.
The DILG is given the power to prescribe rules, regulations

and other issuances, but the Administrative Code limits its authority
to merely "monitoring compliance" by local government units of
such issuances. To monitor means "to watch, observe or check" and
is compatible with the power of supervision of the DILG Secretary
over local governments, which is limited to checking whether the
local government unit concerned or the officers thereof perform their
87
duties as per statutory enactments.
Chapter II
Leagues and Federation of Local Elective Officials
SECTION 508. Organization. - (a) Vice-governors,
vice-mayors, sanggunian members of barangays,
municipalities, component cities, highly-urbanized
cities and provinces, and other elective local officials
of local government units, including those of the
Metropolitan Manila Area and any metropolitan
political subdivisions, may form their respective
leagues or federations, subject to applicable provisions
of this Title and pertinent provisions of this Code;
(b) Sanggunian members of component cities and
municipalities shall form a provincial federation and
elect a board of directors and a set of officers headed
by the president. The duly elected president of the
provincial federation of sanggunian members of
component cities and municipalities shall be an ex
officio member of the sangguniang panlalawigan
concerned and shall serve as such only during his
term of office as president of the provincial federation
of sanggunian members of component cities and
municipalities, which in no case shall be beyond the
term of office of the sangguniang panlalawigan
concerned.
SECTION 509. Constitutionand By-laws. - The leagues
or federations shall adopt a constitution and by-laws
W Bito-Onon v. Fernancez, G.R. No. 139813, January 31,2001.

which shall govern their internal organization and

operation: Provided,That said constitution and by-laws
shall always conform to the provision of the
Constitution and existing laws.
SECTION 510. Funding. - The leagues and
federations may derive funds from contributions of
individual league or federation members or from
fund-raising projects or activities. The local
government unit concerned may appropriate funds to
support the league or federation organized pursuant
to this section, subject to the availability of funds.
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BOOK IV
MISCELLANEOUS AND FINAL PROVISIONS
Title I
PENAL PROVISIONS
SECTION 511. Posting and Publication of Ordinances
with Penal Sanctions. - (a) Ordinances with penal
sanctions shall be posted at prominent places in the
provincial capitol, city, municipal or barangay hall, as
the case may be, for a minimum period of three (3)
consecutive weeks. Such ordinances shall also be
published in a newspaper of general circulation,
where available, within the territorial jurisdiction of
the local government unit concerned, except in the
case of barangay ordinances. Unless otherwise
provided therein, said ordinances shall take effect on
the day following its publication, or at the end of the
period of posting, whichever occurs later.
(b) Any public officer or employee who violates an
ordinance may be meted administrative disciplinary
action, without prejudice to the filing of the
appropriate civil or criminal action.
(c) The secretary to the sanggunian concerned shall
transmit official copies of such ordinances to the chief
executive officer of the Office Gazette within seven (7)
days following the approval of the said ordinance for
publication purposes. The Official Gazette may publish
ordinances with penal sanctions for archival and
reference purposes.
Those challenging the validity of an ordinance for the local

government's failure to comply with Section 511 have the burden of
proving these allegations. Even if the mayor is unable to produce any
evidence to show that procedures were followed, in accordance with
the presumption of validity in favor of an ordinance, its
constitutionality or legality should be upheld in the absence of any

controverting evidence that the procedure prescribed by law was not
observed in its enactment.7m
SECTION 512. Withholding of Benefits Accorded to

Barangay Officials. - Willful and malicious
withholding of any of the benefits accorded to
barangay officials under Section 393 hereof shall be
punished with suspension or dismissal from office of
the official or employee responsible therefor.
SECTION 513. Failure to Post and Publish the Itemized
Monthly Collections and Disbursements. - Failure by the
local treasurer or the local chief accountant to post the
itemized monthly collections and disbursements of
the local government unit concerned within ten (10)
days following the end of every month and for at least
two (2) consecutive weeks at prominent places in the
main office building of the local government unit
concerned, its plaza and main street, and to publish
said itemization in a newspaper of general circulation,
where available, in the territorial jurisdiction of such
unit, shall be punished by a fine not- exceeding Five
hundred pesos (P500.00) or by imprisonment not
exceeding one (1) month, or both such fine and
imprisonment, at the discretion of the court.
SECTION 514. Engaging in Prohibited Business
Transactions or Possessing Illegal Pecuniary Interest. -
Any local official and any person or persons dealing
with him who violate the prohibitions provided in
Section 89 of Book I hereof, shall be punished with
imprisonment for six (6) months and one (1) day to six
(6) years, or a fine of not less than Three thousand
pesos (P3,000.00) nor more than Ten thousand pesos
(P10,000.00), or both such imprisonment and fine, at
the discretion of the court.
7N Acaac v. Azcuna Jr., G.R. No. 187378, September 30,2013.

Miscellaneous and Final Provisions 855
SECTION 515. Refusal or Failureof Any Partyor Witness

to Appear before the Lupon or Pangkat. - Refusal or
willful failure of any party or witness to appear before
the lupon or pangkat in compliance with a summons
issued pursuant to the provisions on the Katarungang
Pambarangay under Chapter 7, Title I of Book I of
this Code may be punished by the city or municipal
court as for indirect contempt of court upon
application filed therewith by the lupon chairman, the
pangkat chairman, or by any of the contending
parties. Such refusal or wilful failure to appear shall
be reflected in the records of the lupon secretary or in
the minutes of the pangkat secretary and shall bar the
complainant who fails to appear, from seeking judicial
recourse for the same cause of action, and the
respondent who refuses to appear, from filing any
counterclaim arising out of, or necessarily connected
with the complaint.
A pangkat member who serves as such shall be
entitled to an honorarium, the amount of which is to
be determined by the sanggunian concerned, subject
to the provisions in this Code cited above.
SECTION 516. Penaltiesfor Violation of Tax Ordinances.
- The sanggunian of a local government unit is
authorized to prescribe fines or other penalties for
violation of tax ordinances but in no case shall such
fines be less than One thousand pesos (P1,000.00) nor
more than Five thousand pesos (P5,000.00), nor shall
imprisonment be less than one (1) month nor more
than six (6) months. Such fine or other penalty, or
both, shall be imposed at the discretion of the court.
The sangguniang barangay may prescribe a fine of not
less than One hundred pesos (P100.00) nor more than
One thousand pesos (P1,000.00).
SECTION 517. Omission of Propertyfrom Assessment or
Tax Rolls by Officers and Other Acts. - Any officer
charged with the duty of assessing real property who
willfully fails to assess, or who intentionally omits
from the assessment or tax roll any real property

which he knows to be taxable, or who willfully or
negligently underassesses any real property, or who
intentionally violates or fails to perform any duty
imposed upon him by law relating to the assessment
of taxable real property shall, upon conviction, be
punished by a fine of not less than One thousand
pesos (P1,000.00) nor more than Five thousand pesos
(P5,000.00), or by imprisonment of not less than one
(1) month nor more than six (6) months, or both such
fine and imprisonment, at the discretion of the court.
The same penalty shall be imposed upon any officer
charged with the duty of collecting the tax due on real
property who wilfully or negligently fails to collect the
tax and institute the necessary proceedings for the
collection of the same.
Any other officer required by this Code to perform
acts relating to the administration of the real property
tax or to assist the assessor or treasurer in such
administration, who wilfully fails to discharge such
duties shall, upon conviction be punished by a fine of
not less than Five hundred pesos (P500.00) nor more
than Five thousand pesos (P5,000.00) or imprisonment
of not less than one (1) month nor more than six (6)
months, or both such fine and imprisonment, at the
discretion of the court.
SECTION 518. Government Agents Delaying Assessment
of Real Property and Assessment Appeals. - Any
government official who intentionally and
deliberately delays the assessment of real property or
the filing of any appeal against its assessment shall,
upon conviction, be punished by a fine of not less than
Five hundred pesos (P500.00) nor more than Five
thousand pesos (P5,000.00), or by imprisonment of not
less than one (1) month nor more than six (6) months,
or both such fine and imprisonment, at the discretion
of the court.
SECTION 519. Failure to Dispose of Delinquent Real

Property at Public Auction. - The local treasurer
concerned who fails to dispose of delinquent real
property at public auction in compliance with the
pertinent provisions of this Code, and any other local
government official whose acts hinder the prompt
disposition of delinquent real property at public
auction shall, upon conviction, be subject to a fine of
not less than One thousand pesos (P1,000.00) nor more
than Five thousand pesos (P5,000.00), or
imprisonment of not less than one (1) month nor more
than six (6) months, or both such fine and
SECTION 520. ProhibitedActs Related to the Award of
Contracts Under the Provisions on Credit Financing. - It
shall be unlawful for any public official or employee
in the provincial, city, or municipal government, or
their relatives within the fourth civil degree of
consanguinity or affinity, to enter into or have any
pecuniary interest in any contract for the construction,
acquisition, operation or maintenance of any project
awarded pursuant to the provisions of Title Four in
Book IIhereof, or for the procurement of any supplies,
materials, or equipment of any kind to be used in the
said project. Any person convicted for violation of the
provisions of said Title shall be removed from office
and shall be punished by imprisonment of not less
than one (1) month, nor more than two (2) years, at the
discretion of the court, without prejudice to
prosecution under other laws.
Title II
PROVISIONS FOR IMPLEMENTATION
SECTION 521. Mandatory Review Every Five Years. -
Congress shall undertake a mandatory review of this
Code at least once every five (5) years and as often as
it may deem necessary, with the primary objective of
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SECTION 519. Failure to Dispose of Delinquent Real

Property at Public Auction. - The local treasurer
concerned who fails to dispose of delinquent real
property at public auction in compliance with the
pertinent provisions of this Code, and any other local
government official whose acts hinder the prompt
disposition of delinquent real property at public
auction shall, upon conviction, be subject to a fine of
not less than One thousand pesos (P1,000.00) nor more
than Five thousand pesos (P5,000.00), or
imprisonment of not less than one (1) month nor more
than six (6) months, or both such fine and
SECTION 520. ProhibitedActs Related to the Award of
Contracts Under the Provisions on Credit Financing. - It
shall be unlawful for any public official or employee
in the provincial, city, or municipal government, or
their relatives within the fourth civil degree of
consanguinity or affinity, to enter into or have any
pecuniary interest in any contract for the construction,
acquisition, operation or maintenance of any project
awarded pursuant to the provisions of Title Four in
Book IIhereof, or for the procurement of any supplies,
materials, or equipment of any kind to be used in the
said project. Any person convicted for violation of the
provisions of said Title shall be removed from office
and shall be punished by imprisonment of not less
than one (1) month, nor more than two (2) years, at the
discretion of the court, without prejudice to
prosecution under other laws.
Title II
PROVISIONS FOR IMPLEMENTATION
SECTION 521. Mandatory Review Every Five Years. -
Congress shall undertake a mandatory review of this
Code at least once every five (5) years and as often as
it may deem necessary, with the primary objective of
providing a more responsive and accountable local

government structure.
SECTION 522. InsuranceCoverage. - The Government
Service Insurance System (GSIS) shall establish and
administer an appropriate system under which the
punong barangay, the members of the sangguruang
barangay, the barangay secretary, the barangay
treasurer, and the members of the barangay tanod
shall enjoy insurance coverage as provided in this
Code and other pertinent laws. For this purpose, the
GSIS is hereby directed to undertake an actuarial
study, issue rules and regulations, determine the
premiums payable, and recommend to Congress the
amount of appropriations needed to support the
system. The amount needed for the implementation of
the said insurance system shall be included in the
annual General Appropriations Act.
SECTION 523. Personnel Retirement and/or Benefits. -
An official or employee of the National Government
or local government unit separated from the service as
a result of reorganization effected under this Code
shall, if entitled under the laws then in force, receive
the retirement and other benefits accruing thereunder:
Provided, however, That such benefits shall be given
funding priority by the Department of Budget and
Management in the case of national officials and
employees, and the local government unit concerned
in the case of local officials and employees.
Where the employee concerned is not eligible for
retirement, he shall be entitled to a gratuity from the
National Government or the local government unit
concerned, as the case may be, equivalent to an
amount not lower than one (1) month salary for every
year of service over and above the monetary value of
the leave credits said employee is entitled to receive
pursuant to existing laws.
SECTION 524. Inventory of Infrastructure and Other

Community Facilities. - (a) Each local government unit
shall conduct a periodic inventory of infrastructure
and other community facilities and undertake the
maintenance, repair, improvement, or reconstruction
of these facilities through a closer cooperation among
the various agencies of the National Government
operating within the province, city, or municipality
concerned.
(b) No infrastructure or community project within the
territorial jurisdiction of any local government unit
shall be undertaken without informing the local chief
executive and the sanggunian concerned.
SECTION 525. Records and Properties. - All records,
equipment, buildings, facilities, and other properties
of any office or body of a local government unit
abolished or reorganized under this Code shall be
transferred to the office or body to which its powers,
functions, and responsibilities are substantially
devolved.
Title III
TRANSITORY PROVISIONS
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.
Article X of the 1987 Constitution deals with the

establishment and scope of power of the autonomous regions.
Sections 1 and 15 authorize the creation of autonomous regions, to
wit:
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SECTION 524. Inventory of Infrastructure and Other

Community Facilities. - (a) Each local government unit
shall conduct a periodic inventory of infrastructure
and other community facilities and undertake the
maintenance, repair, improvement, or reconstruction
of these facilities through a closer cooperation among
the various agencies of the National Government
operating within the province, city, or municipality
concerned.
(b) No infrastructure or community project within the
territorial jurisdiction of any local government unit
shall be undertaken without informing the local chief
executive and the sanggunian concerned.
SECTION 525. Records and Properties. - All records,
equipment, buildings, facilities, and other properties
of any office or body of a local government unit
abolished or reorganized under this Code shall be
transferred to the office or body to which its powers,
functions, and responsibilities are substantially
devolved.
Title III
TRANSITORY PROVISIONS
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.
Article X of the 1987 Constitution deals with the

establishment and scope of power of the autonomous regions.
Sections 1 and 15 authorize the creation of autonomous regions, to
wit:
eton. The territorial and political subdivisions of

'the Republic of the Philippines are the provices,i
cities, municipalities, and barangays. There shall bel
autonomous , egions in Muslim Mindanao and thei
ICordilleras as hereinafter provided....1
Section 15. There shall be created autonomous regions1
in Muslim Mndanao and in the Cordilleras consisting
of provinces, cities, municipalities, and g rhia1'
areas sharing common and distinctive historical an&4
~cultural henitage, economic and social structures, and
ither relevant characteristics within the framework of"
thsConstitution and the nationfal sovereignty" as well
as territorial integrity of the Republic of the',
The idea behind the Constitutional provisions for

autonomous regions is to allow the separate development of peoples
with distinctive cultures and traditions. Autonomy, as a national
policy, recognizes the wholeness of the Philippine society in its
ethnolinguistic, cultural, and even religious diversities. It strives to
free Philippine society of the strain and wastage caused by the
assimilationist approach. Regional autonomy is also a means towards
solving existing serious peace and order problems and secessionist
movements. Parenthetically, autonomy, decentralization and
regionalization, in international law, have become politically
acceptable answers to intractable problems of nationalism,
separatism, ethnic conflict and threat of secession789
The Court in Disomangcop v. The Secretary of the Departmentof
Public Works and Highways, 0 however, ruled that the creation of
autonomous regions does not signify the establishment of a
sovereignty distinct from that of the Republic, as it can be installed
only within the framework of this Constitution and the national
sovereignty as well as territorial integrity of the Republic of the
78
9 Disomangcop v. The Secretary of the Department of Public Works and Highways,
G.R. No. 149848, November 25,2004.
79
oDisomangcop v. The Secretary of the Department of Public Works and Highways,
G.R. No. 149848, November 25,2004.
Philippines. Accordingly, regional autonomy refers to the granting of

basic internal government powers to the people of a particular area
or region with least control and supervision from the central
government. These powers are granted by Sections 20m and 217 2 of
Article X of the 1987 Constitution.
The objective of the autonomy system is to permit determined
groups, with a common tradition and shared social-cultural
characteristics, to develop freely their ways of life and heritage,
exercise their rights, and be in charge of their own business. This is
achieved through the establishment of a special governance regime
for certain member communities who choose their own authorities
from within the community and exercise the jurisdictional authority
legally accorded to them to decide internal community affairs.7%
The Court elucidated the concept of autonomy in Limbona v.
Mangelin,74 thus:
Autonomy is either decentralization of administration
or decentralization of power. There is decentralization
791
Article X of the Constitution provides:
Section 20. Within its territorial jurisdiction and subject to the
provisions of this Constitution and national laws, the organic act
of autonomous regions shall provide for legislative powers over:
1. Administrative organization;
2. Creation of sources of revenues;
3. Ancestral domain and natural resources;
4. Personal, family, and property relations;
5. Regional urban and rural planning
development;
6. Economic, social, and tourism development;
7. Educational policies;
8. Preservation and development of the
cultural heritage; and
9. Such other matters as may be authorized by
law for the promotion of the general
welfare of the people of the region.
792
Section 21 provides that "The preservation of peace and order within the regions
shall be the responsibility of the local police agencies which shall be organized,
maintained, supervised, and utilized in accordance with applicable laws. The
defense and security of the regions shall be the responsibility of the National
Government."
3
Disomangcop v. The Secretary of the Department of Public Works and Highways,
G.R. No. 149848, November 25,2004.
7%G.R. No. 80391, February 28, 1989.
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
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
government units declared to be autonomous. In that
case, the autonomous government is free to chart its
own destiny and shape its future with minimum
intervention from central authorities. According to a
constitutional author, decentralization of power
amounts to "self-immolation," since in that event the
autonomous government becomes accountable not to
the central authorities but to its constituency.
In Cordillera Broad Coalition v. Commission on Audit, 7 the
Court ruled that the creation of autonomous regions contemplates
the grant of political autonomy -an autonomy, which is greater than
the administrative autonomy granted to local government units. It
held that "the constitutional guarantee of local autonomy in the
Constitution (Art. X, Sec. 2) refers to administrative autonomy of
local government units. On the other hand, the creation of
autonomous regions in Muslim Mindanao and the Cordilleras, which
is peculiar to the 1987 Constitution, contemplates the grant of
political autonomy and not just administrative autonomy to these
G.R. No. 79956, January 29,1990.

regions." Thus, the provision in the Constitution for an autonomous

regional government with a basic structure consisting of an executive
department and a legislative assembly and special courts with
personal, family and property law jurisdiction in each of the
autonomous regions.
To this end, Section 16, Article X of the Constitution, which
provides that "The President shall exercise general supervision over
autonomous regions to ensure that laws are faithfully executed",
limits the power of the President over autonomous regions. In
essence, the provision also curtails the power of Congress over
autonomous regions.76
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.
Under the Constitution, the creation of the autonomous
region shall take effect only when approved by a majority of the
votes cast by the constituent units in a plebiscite, and only those
provinces and cities where a majority vote in favor of the Organic
Act shall be included in the autonomous region. The provinces and
cities wherein such a majority is not attained shall not be included in
the autonomous region. The single plebiscite contemplated by the
Constitution and Republic Act No. 6734 will therefore be
determinative of (1) whether there shall be an autonomous region in
Muslim Mindanao and (2) which provinces and cities, among those
enumerated in Republic Act No. 6734, shall compromise. 797 The
Court in Abbas v. Comelec " clarified 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.
The abovementioned case upheld the validity of Republic Act
No. 6734, otherwise known as the Organic Act for the Autonomous
Region in Muslim Mindanao. The law called for the holding of a
79 Disomangcop v. The Secretary of the Department of Public Works and Highways,

G.R. No. 149848, November 25,2004.
7W Abbas v. Commission on Elections, G.R. No. 89651, November 10,1989.
7"Abbas v. Commission on Elections, G.R. No. 89651, November 10,1989.
plebiscite in the provinces of Basilan, Cotabato, Davao del Sur, Lanao

del Norte, Lanao del Sur, Maguindanao, Palawan, South Cotabato,
Sultan Kudarat, Sulu, Tawi-Tawi, Zamboanga del Norte, and
Zamboanga del Sur, and the cities of Cotabato, Dapitan, Dipolog,
General Santos, Iligan, Marawi, Pagadian, Puerto Princesa and
Zamboanga." In the ensuing plebiscite held on 19 November 1989,
only four (4) provinces voted for the creation of an autonomous
region, namely: Lanao del Sur, Maguindanao, Sulu and Tawi-Tawi.
These provinces became the Autonomous Region in Muslim
Mindanao (ARMM).N0
Abbas established the rule to follow in determining which
provinces and cities shall comprise the autonomous region in
Muslim Mindanao, which is consequently, the same rule to follow
with regard to the autonomous region in the Cordillera. However,
there is nothing in the Abbas decision which deals with the issue on
whether an autonomous region, in either Muslim Mindanao or
Cordillera could exist despite the fact that only one province or one
city is to constitute it.801
The Court addressed this situation in Ordillo v. Comeleco 2
where Republic Act No. 6766 or the Organic Act for the Cordillera
Autonomous Region was approved by a majority of votes in only the
Ifugao Province. The Court ruled that the sole province of Ifugao
cannot validly constitute the Cordillera Autonomous Region. Citing
Art. X, Sec. 15 of the Constitution, it held that 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. Ifugao is a province by itself. To
become part of a region, it must join other provinces, cities,
municipalities, and geographical areas. It joins other units because of
7" Republic Act No. 6734 (1989), § 1, Par. (2).

800 Disomangcop v. The Secretary of the Department of Public Works and Highways, G.R.
No. 149848, November 25,2004.
8
mOrdillo v. Commission on Elections, G.R. No. 93054, December 4,1990.
8
o20rdillo v. Commission on Elections, G.R. No. 93054, December 4,1990.
their common and distinctive historical and cultural heritage,

economic and social structures and other relevant characteristics.
Congress never intended that a single province may
constitute the autonomous region. Otherwise, it 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.0
As a consequence of Ordillo, the Court in Badua v. Cordillera
Bodong Association8o4 ruled that the Cordillera Bodong Administration
created under Section 13 of Executive Order No. 220, the indigenous
and special courts for the indigenous cultural communities of the
Cordillera region (Sec. 1, Art. VII, Republic Act 6766), and the
Cordillera People's Liberation Army as a regional police force or a
regional command of the Armed Forces of the Philippines (Secs. 2
and 4, Article XVIII of R.A. 6766) were considered to not legally exist.
Since the Cordillera Autonomous Region did not come into
legal existence, the Maeng Tribal Court was not constituted into an
indigenous or special court under Republic Act No. 6766. Hence, the
Maeng Tribal Court is an ordinary tribal court existing under the
customs and traditions of an indigenous cultural community. Such
tribal courts are not a part of the Philippine judicial system, which
consists of the Supreme Court and the lower courts, which have been
established by law (Sec. 1, Art. VIII, 1987 Constitution). They do not
possess judicial power. Like the pangkats or conciliation panels
created by P.D. No. 1508 in the barangays, they are advisory and
conciliatory bodies whose principal objective is to bring together the
parties to a dispute and persuade them to make peace, settle, and
compromise.w
It should be noted, however, that in the earlier cited case of
CordilleraBroad Coalitionv. Commission on Audit, the Court upheld the
validity of Executive Order No. 220, which created the Cordillera
Administrative Region. It was assailed on the primary ground that it
pre-empts the enactment of an organic act by Congress and the
80
Ordillo v. Commission on Elections, G.R. No. 93054, December 4,1990.
804 G.R. No. 92649, February 14,1991.
80 Badua v. Cordillera Bodong Association, G.A No. 92649, February 14,1991.
creation of the autonomous region. The Court rejected petitioner's

contentions and ruled, to wit:
Executive Order No. 220 issued by the President in the
exercise of her legislative powers under Art. XVIII,
Sec. 6 of the 1987 Constitution, created the Cordillera
Administrative Region (CAR), which covers the
provinces of Abra, Benguet, Ifugao, Kalinga-Apayao
and Mountain Province and the City of Baguio. It was
created to accelerate economic and social growth in
the region and to prepare for the establishment of the
autonomous region in the. Cordilleras. Its main
function is to coordinate the planning and
implementation of programs and services in the
region, particularly, to coordinate with the local
government units as well as with the executive
departments of the National Government in the
supervision of field offices and in identifying,
planning, monitoring, and accepting projects and
activities in the region. It shall also monitor the
implementation of all ongoing national and local
government projects in the region. The CAR shall
have a Cordillera Regional Assembly as a policy-
formulating body and a Cordillera Executive Board as
an implementing arm. The CAR and the Assembly
and Executive Board shall exist until such time as the
autonomous regional government is established and
organized. 806
The Court discussed the nature of the Cordillera
Administrative Region as a regional coordinating agency of the
National Government. The CAR is not a public corporation or a
territorial and political subdivision. It does not have a separate
juridical personality, unlike provinces, cities and municipalities.
Neither is it vested with the powers that are normally granted to
public corporations, e.g., the power to sue and be sued, the power to
8 6
Cordillera Broad Coalition v. Commission on Audit, G.R. No. 79956, January 29,
1990.
own and dispose of property, the power to create its own sources of
revenue, etc.
SECTION 527. PriorApproval or Clearance on Regular

and Recurring Transactions. - Six (6) months after
effectivity of this Code, prior approval of or clearance
from national agencies or offices shall no longer be
required for regular and recurring transactions and
activities of local government units.
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.
SECTION 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.
SECTION 530. Local Water Districts. - All powers,
functions, and attributes granted by Presidential
Decree Numbered One hundred ninety-eight (P.D.
No. 198), otherwise known as "The Provincial Water
Utility Act of 1973," to the Local Water Utilities
Administration (LWUA) may be devolved in toto to
the existing local water districts should they opt or
choose to exercise, in writing, such powers, functions
and attributes: Provided, That all obligations of the
local water district concerned to the LWUA shall first
be settled prior to said devolution.
SECTION 531. Debt Relief for Local Government Units.
- (a) Unremitted national collections and statutory
contributions. - All debts owed by local government
units to the National Government in unremitted
contributions to the Integrated National Police Fund,

the Special Education Fund, and other statutory
contributions as well as in unremitted national
government shares of taxes, charges, and fees
collected by the local government units, are hereby
written off in full.
(b) Program loans. - (1) Program loans secured by
local government units which were relent to private
persons, natural or juridical, shall likewise be written
off from the books of the local government units
concerned: Provided, however, That the national
government agency tasked with the implementation
of these programs shall continue to collect from the
debtors belonging to the private sector concerned.
(2) Program loans granted to local government units
by national government agencies and which were
utilized by the local units for community
development, livelihood, and other small-scale
projects are hereby written off in full.
(c) Settlement of debts due to government financing
institutions (GFIs), government-owned and controlled
corporations (GOCCs), and private utilities. - The
National Government shall assume all debts incurred
or contracted by local government units from GFIs,
GOCCs, and private utilities that are outstanding as of
December 31, 1988, in accordance with the following
schemes:
(1) Debts due GFIs. - The National
Government may buy outstanding
obligations incurred by local
government units from government
financing institutions at a discounted
rate.
(2) Debts due GOCCs. - The National
Government may settle such
obligations at discounted rate through
offsetting, only to the extent of the
obligations of local governments

against the outstanding advances made
by the National Treasury in behalf of
the government-owned and -controlled
corporations concerned.
(3) Debts due private utilities. - The
National Government may settle these
obligations at a discounted rate by
offsetting against the outstanding
obligations of such private utilities to
government-owned corporations.
GOCCs may in turn offset these
obligations against the outstanding
advances made by the National
Treasury in their behalf.
In the case of obligations owed by local
government units to private utilities
which are not indebted to any GOCC
or national government agency, the
National Government may instead buy
the obligations of the local government
units from the private utilities at a
discounted rate, upon concurrence by
the private utilities concerned.
(d) Limitations. - Obligations to the Home
Development and Mutual Fund (Pag-IBIG), Medicare,
and those pertaining to premium contributions and
amortization payments of salary and policy loans to
the Government Service Insurance System are
excluded from the coverage of this section.
(e) Recovery schemes for the National Government. -
Local government units shall pay back the National
Government whatever amounts were advanced or
offset by the National Government to settle their
obligations to GFIs, GOCCs, and private utilities. The
National Government shall not charge interest or
penalties on the outstanding balance owed by the
local government units.
These outstanding obligations shall be restructured

and an amortization schedule prepared, based on the
capability of the local government unit to pay, taking
into consideration the amount owed to the National
Government.
The National Government is hereby authorized to
deduct from the quarterly share of each local
government unit in the internal revenue collections an
amount to be determined on the basis of the
amortization schedule of the local unit concerned:
Provided, That such amount shall not exceed five
percent (5%) of the monthly internal revenue
allotment of the local government unit concerned.
As incentive to debtor-local government units to
increase the efficiency of their fiscal administration,
the National Government shall write off the debt of
the local government unit concerned at the rate of five
percent (5%) for every one percent (1%) increase in
revenues generated by such local government unit
over that of the preceding year. For this purpose, the
annual increase in local revenue collection shall be
computed starting from the year 1988.
(f) Appropriations. - Such amount as may be necessary
to implement the provisions of this section shall be
included in the annual General Appropriations Act.
SECTION 532. Electionsfor the Sangguniang Kabataan.
- (a) The first elections for the sangguniang kabataan
to be conducted under this Code shall be held thirty
(30) days after the next local elections: Provided, That
the regular elections for the sangguniang kabataan
shall be held one hundred twenty (120) days after the
barangay elections thereafter. 8' 7
807
Section 532(a) of Republic Act No. 7160 was amended by Republic Act No. 7808,
to read as follows:
Sec. 532. Elections for the Sangguniang Kabataan. -
(a) The first elections for the sangguniang kabataan to be
conducted under this Code shall be held thirty (30) days after the
(b) The amount pertaining to the ten percent (10%)

allocation for the kabataang barangay as provided for
in Section 103 of Batas Pambansa Big. 337 is hereby
reappropriated for the purpose of funding the first
elections mentioned above. The balance of said funds,
if there be any after the said elections, shall be
administered by the Presidential Council for Youth
Affairs for the purpose of training the newly elected
sangguniang kabataan officials in the discharge of
their functions.
(c) For the regular elections of the sangguniang
kabataan, funds shall be taken from the ten percent
(10%) of the barangay funds reserved for the
sangguniang kabataan, as provided for in Section 328
of this Code.
(d) All seats reserved for the pederasyon ng mga
sangguniang kabataan in the different sanggunians
shall be deemed vacant until such time that the
sangguniang kabataan chairmen shall have been
elected and the respective pederasyon presidents have
been selected: Provided, That elections for the
kabataang barangay conducted under Batas Pambansa
Big. 337 at any time between January 1, 1988 and
January 1, 1992 shall be considered as the first
elections provided for in this Code. The term of office
of the kabataang barangay officials elected within the
next local elections: Provided, That, the regular elections for the
sangguniang kabataan shall be held on the first Monday of May
1996: Provided, further, That the succeeding regular elections for
the sangguniang kabataan shall be held every three (3) years
thereafter: Provided, finally, That the national, special
metropolitan, provincial, city and municipal federations of the
sangguniang kabataan shall conduct the election of their
respective officers thirty (30) days after the May 1996 sangguniang
kabataan elections on dates to be scheduled by the Commission on
Elections.
The conduct of the sangguniang kabataan elections shall be under
the supervision of the Commission on Elections.
The Omnibus Election Code shall govern the elections of the
sangguniang kabataan.
said period shall be extended correspondingly to

coincide with the term of office of those elected under
this Code.
SECTION 533. Formulation of Implementing Rules and
Regulations. - (a) Within one (1) month after the
approval of this Code, the President shall convene the
Oversight Committee as herein provided for. The said
Committee shall formulate and issue the appropriate
rules and regulations necessary for the efficient and
effective implementation of any and all provisions of
this Code, thereby ensuring compliance with the
principles of local autonomy as defined under the
Constitution.
(b) The Committee shall be composed of the
following:
(1) The Executive Secretary, who shall
be the Chairman;
(2) Three (3) members of the Senate to
be appointed by the President of the
Senate, to include the Chairman of the
Committee on Local Government;
(3) Three (3) members of the House of
Representatives to be appointed by the
Speaker, to include the Chairman of the
Committee on Local Government;
(4) The Cabinet, represented by the
following:
(i) Secretary of the
Interior and Local
Government;
(ii) Secretary of Finance;
(iii) Secretary of Budget
and Management; and
(5) One (1) representative from each of

the following.
(i) The League of
Provinces;
(ii) The League of Cities;
(iii) The League of
Municipalities; and
(iv) The Liga ng mga
Barangay.
(c) The Committee shall submit its report and
recommendation to the President within two (2)
months after its organization. If the President fails to
act within thirty (30) days from receipt thereof, the
recommendation of the Oversight Committee shall be
deemed approved. Thereafter, the Committee shall
supervise the transfer of such powers and functions
mandated under this Code to the local government
units, together with the corresponding personnel,
properties, assets and liabilities of the offices or
agencies concerned, with the least possible disruptions
to existing programs and projects. The Committee
shall likewise recommend the corresponding
appropriations necessary to effect the said transfer.
For this purpose, the services of a technical staff shall
be enlisted from among the qualified employees of
Congress, the government offices, and the leagues
constituting the Committee.
(d) The funding requirements and the secretariat of
the Committee shall be provided by the Office of the
Executive Secretary.
(e) The sum of Five million pesos (P5,000,000.00),
which shall be charged against the Contingent Fund,
is hereby allotted to the Committee to fund the
undertaking of an information campaign on this Code.
The Committee shall formulate the guidelines
governing the conduct of said campaign, and shall
determine the national agencies or offices to be

involved for this purpose.
Title lV
FINAL PROVISIONS
SECTION 534. Repealing Clause. - (a) Batas Pambansa
Big. 337, otherwise known as the Local Government
Code, Executive Order No. 112 (1987), and Executive
Order No. 319 (1988) are hereby repealed.
(b) Presidential Decree 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 Decree Nos. 559 and 1741;
Presidential Decree No. 231 as amended; Presidential
Decree No. 436 as amended by Presidential Decree
No. 558; and Presidential Decree Nos. 381, 436, 464,
477, 526, 632, 752, and 1136 are hereby repealed and
rendered of no force and effect.
Only Section 3 of Republic Act No. 5447, which deals with the
"Allocation of taxes on Virginia type cigarettes and duties on
imported leaf tobacco" was expressly repealed. The failure to add a
specific repealing clause particularly mentioning the statute to be
repealed indicates that the intent was not to repeal any existing law
on the matter, unless an irreconcilable inconsistency and repugnancy
exists in the terms of the new and the old laws. The provisions
allocating funds for the salaries of teachers under Section 1, of
Republic Act No. 5447, which are not inconsistent with Sections 272
+(,121/,1(
Citation:
Tue Apr 17 11:24:07 2018



determine the national agencies or offices to be

involved for this purpose.
Title lV
FINAL PROVISIONS
SECTION 534. Repealing Clause. - (a) Batas Pambansa
Big. 337, otherwise known as the Local Government
Code, Executive Order No. 112 (1987), and Executive
Order No. 319 (1988) are hereby repealed.
(b) Presidential Decree 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 Decree Nos. 559 and 1741;
Presidential Decree No. 231 as amended; Presidential
Decree No. 436 as amended by Presidential Decree
No. 558; and Presidential Decree Nos. 381, 436, 464,
477, 526, 632, 752, and 1136 are hereby repealed and
rendered of no force and effect.
Only Section 3 of Republic Act No. 5447, which deals with the
"Allocation of taxes on Virginia type cigarettes and duties on
imported leaf tobacco" was expressly repealed. The failure to add a
specific repealing clause particularly mentioning the statute to be
repealed indicates that the intent was not to repeal any existing law
on the matter, unless an irreconcilable inconsistency and repugnancy
exists in the terms of the new and the old laws. The provisions
allocating funds for the salaries of teachers under Section 1, of
Republic Act No. 5447, which are not inconsistent with Sections 272
and 100 (c) of the Local Government Code, remain in force and
effect.w
The absence of a specific repealing clause indicates that the
intent was not to repeal any existing law, unless an irreconcilable
inconsistency and repugnancy exist in the terms of the new and old
laws. Jurisprudence thrives to the effect that it is only the Local
Government Code of 1991, which repealed the Real Property Tax
Code or Presidential Decree No. 464. From January 1,1992 onwards,
the proper basis for the computation of the real property tax payable,
including penalties or interests, if applicable, must be the Local
Government Code. 09
This section clearly shows the legislative intent that Republic
Act No. 7160 would supersede Presidential Decree No. 464. As such,
it is apparent that in case of sale of tax delinquent properties,
Republic Act No. 7160 is the general law applicable.81 0
(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; Section 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.
Commission on Audit v. Province of Cebu, G.R. No. 141386. November 29,2001.

N9 Secretary of Finance v. Darde, G.R. No. 121782, May 9,2005.
810 City Mayor v. Rizal Commercial Banking Corporation, G.R. No. 171033, August 3,
2010.
If there is no express repeal of a law, courts determine

whether there was an implied repeal. Implied repeals are not lightly
presumed. The rule is that instead of placing one law against
another, in a destructive confrontation, courts must exert every effort
to reconcile the statutes. Accordingly, in case of a conflict between
Republic Act No. 6758 and the Local Government Code, the proper
action is not to uphold one and annul the other, but, if possible, to
give effect to the two laws by harmonizing them.811
SECTION 535. SeparabilityClause. - If, for any reason

or reasons, any part or provision of this Code shall be
held to be unconstitutional or invalid, other parts or
provisions hereof which are not affected thereby shall
continue to be in full force and effect.
SECTION 536. Effectivity Clause. - This Code shall

take effect on January first, Nineteen Hundred Ninety-
Two, unless otherwise provided herein, after its
complete publication in at least one (1) newspaper of
general circulation.
The Local Government Code of 1991 took effect on January 1,

1992. If a local official is charged with an administrative case in 1991,
the operative laws at that time were the Administrative Code of 1987
and Executive Order No. 119. Under these laws, the Secretary of
Health exercised control, direction and supervision over his
subordinates. Since the Secretary acquired jurisdiction over the
person of private respondent before the effectivity of the Local
Government Code, it continues until the final disposition of the
administrative case.812
811
Villarefia v. The Commission on Audit, G.R. Nos. 145383-84, August 6,2003.
812
The Secretary of Health v. Court of Appeals, G.R. No. 112243, February 23,1995.

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LOCAL GOVERNMENT LAW

UNIVERSITY OF THE PHILIPPINES

ISBN No. 978-971-15-0456-4

No part of this book may be reproduced in any form, or by

Publishedby the University of the Philippines, College of Law.

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Article I. Secretary to the Sanggunian ........................................ 780

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Professor Gatmaytan is Associate Professor in the U.P.

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The enactment of the Local Government Code of 19911

I Republic Act No. 7160 (1991).

Dan Gatmaytan, B.S., LL.B., M.S.E.L., LL.M.

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SECTION 1. Title. - This Act shall be known and

The Local Government Code of 1991 was referred to as the

study of their capacities and observation of the workings of native

The Constitution dearly limited the executive power over

9 See San Juan

corporations by vesting them some taxing powers. In 1967, Congress

While various laws introduced incremental changes to the

12 Republic Act No. 5185 (1967).

exercse generai supervision over iocai governments.

uch taxes,fees, an h-arges shl accrue exclusively

,SECfON 8. The term 'of office of elective locall

created shall be limited to basic services requiring

SE 6 h rsdnt- sha-Jexercise- gener ,alI

Section 25, Article II of the Constitution further provides that

SECTION 2. Declaration of Policy. - (a) It is hereby

in the attainment of national goals. Toward this end,

Local autonomy is the means by which local governments

3PiMENTL, supra, note 4.

Decentralization differs intrinsically from federalism

(b) It is also the policy of the State to ensure the

15 See Disomangcop v. The Secretary of the Department of Public Works and

institution of effective mechanisms of recall, initiative

17 See discussion under Sections 26 and 27.