PUBLIC CORPORATIONS as lectured by Atty. Rodolfo LapidPUBLIC CORPORATION 2019-2020,2, "Sem Atty. Rodolfo Lapid DISCLAIMER ‘The following are the materials used for this work 41. Lectures and syllabus of Atty. Rodolfo Lapid Some of the contents of the above have been paraphrased and questions propounded differently in order to tailor the author's learning method, Answers to some questions are likewise tailored to the personal preference of the author T do not guaranty the absolute correctness of this work due to human errors and failure to understand the question or concept perfectly. I apologize in advance for any error you may encounter in this work However, please see to it that the error is an opportunity to leam, as Dean Jose Sundiang puts it “The beauty of an error is to correct it, and not to perpetuate it” PIAPUBLIC CORPORATION 2019-20202“! Sem. Auty. Rodolfo Lapid ‘TABLE OF CONTENTS CONSTITUTIONAL BASIS 1 e025, Art I, 1987 Constitution .sssseseesessstneensesetseensssss wl Sec2, Art. X 1987 Constitution 1 SECA. TITLE «. 1 Landmark legislation 1 Who are the authors of the LGC? 1 What is LGC’s date of premulgati 1 When did the LGC take effect? 1 SEC.2. DECLARATION OF POLICY 1 SEC.4. SCOPE OF APPLICATION 1 Where shall the LGC apply? 2 SECS. RULES OF INTERPRETATION 2 Interpretation of provision ona power of LGU 2 Interpretation of tax ondinance or revenue measure . 2 Interpretation of tax exemptions 3 Interpretation of general welfare provision 3 Whete isthe general welfare provision/ehuse found? 3 Governing aw as to tights and obligations already existing atthe time of the LGC of those arising out of contracts involving LGUs ierttinwt 3 In ease there isan absence of legal provision or jurisprudence regarding the controversy, what may be resorted to resolve the issue? 3 SEC, AUTHORITY TO CREATE LOCAL GOVERNMENT UNITS 3 How are public corporations created? 3 Who may ereate local government units (LGUs) ii 3 Can the sanggunian panlalawigan or panlungsod ereate provinces cities, or municipalities 3 Power to ereate and power to destroy sR 3 Coxporations for profit. quasi corporations and quasi- publiccoxporations 3 Examples of corporations for profit 4 Examples of quasi-public corporations 4 SEC.7. CREATION AND CONVERSION 4 Economic indicators 4 Judicial amendment . 4 SEC.8. DIVISION AND MERGER 4 SEC9, ABOLITION OF LOCAL GOVERNMENT UNITS 5 SEC.10, PLEBISCITE REQUIREMENT an an LGU be abolished Ground to abolish L Who shall participate in a plebiscite? om . 5 PIA.PUBLIC CORPORATION 2019-2000,2,_® Sem Ay, Rodolfo Lapid Manila has six (0) elisticts. A seventh (7th) districts to be created, who must participate in the plebiscite? SEC.1l, SELECTION AND TRANSFER OF LOCAL GOVERNMENT SITE, OFFICES AND FACILITIES SEC.12. GOVERNMENT CENTERS SEC.13. NAMING OF LOCAL GOVERNMENT UNITS AND PUBLIC PLACES, STREETS AND STRUCTURES: Vote needed Philippine Historical Commission X, asanggunian member, objected to the change of name Will the change of name have effect? SEC.14.. BEGINNING OF CORPORATE EXISTENCE Exfeetivity clause Rule as to commencement of existence of LGU SEC.15. POLITICAL AND CORPORATE NATURE OF LOCAL GOVERNMENT UNITS Dual nature Rule as to liability for damages ae to.a manhole which was not maintained in good condition by the City of Mala, Tote fal in it andl suffered injury. May the City be held able? SEC.16. GENERAL WELFARE Purpose SEG.I7. BASIC SERVICES AND FACILITIES Devolution SEC.18. POWER TO GENERATE AND APPLY RESOURCES SEC.19.. EMINENT DOMAIN ‘When eminent domain cannot be exercised If refused, what remedy may the LGU interpose? [Effect of expeopriation proceed Who determine the value m be SEC. 20, RECLASSIFICATION OF LANDS SEC. 21, CLOSURE AND OPENING OF ROADS sssssvessssssses Required vote in permanently closing streets [Enfcet of permanently closing strets SEC. 22. CORPORATE POWERS Can the mayor enter into contracts by himself? ‘What s the status of the contract in the above question? PIAPUBLIC CORPORATION 2019-2020,2 “Sem. Anty. Rodolfo Lapid PIA SEC. 24, LIABILITY FOR DAMAGES sae ww I, MIDTERM POINTERS B 7 MIDTERM SAMPLEX........CONSTITUTIONAL BASIS See.2. Declaration of Policy; See. 25, Art. I ‘The State shall governments sure the autonomy of local ‘Sec. 2, Art X; ‘The territorial and political subdivisions shall enjoy local autonomy ‘The above provisions encouraged the creation of the Local Gi Code of 1991 See. . Tide ‘This act shall be known and cited as the “Local Government Code of 1991”, Landmark legislation _ Prior to the enactment of the Local Government Code (LGQ, public officers must go to Manila in order to approve or follow-up their project. Hence, the term “Imperial Manila” ‘was coined, Due to the LGC units now have local government the capacity to approve its own projeets without the necessity of approval from ‘Malacanang, Q: Who are the authors of the LGC? In the upper house, itis then Senator Aguilino “Nene” Pimentel In the lower house, itis Q: What is LGC’s date of promulgation? 10 Cerober 1991 Q: When did the LGC take effect? January, 1992 (See. $36, LGC) a) It is hereby declared the policy of the rate that the territorial and political subdivisions of the State shall enjoy al autonomy to enable them to attain their fullest development as self-reliant communities and make them more genuine and — meaningful 1a 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 shal he given more powers, authority, responsibilities, and resourees. ‘The process of decentralization — shall proceed from the National Government to the local government units b) It is also the policy of the Stare to censure the accountability of local government units through the institution of effective mechanisms of recall, initiative, and referendum. ©) It is likewise the policy of the require all national agencies and offices to eonduct periodic consultations with appropriate local government units, non-governmental and people's organizations, and other nacemed sectors oF the community before any projector program is implemented in their respective jurisdictions Seed. Scope of Application; ‘This Code shall apply to all provinces, cities, municipalities, barangays, and other political subdivisions as may be created by law, and, 10 nt herein provided, to officials, jes of the — national offices, or ager government. 1| PagPUBLIC CORPORATION 2019-2020, 2“! Sem, Any. Rodolfo Lapid ere shall, ly? I is applicable to: a) Provinces; b) Cities ©) Municipalities; dd) Barangays; ©) Other political subdivisions, ) National government a. Officials; b. Offices; or Agencies ‘See.5. Rules of Interpretation; In the interpretation of the provisions of this Code, the following rules shall apply: a b) 9 Any provision on a power oF a local goverment 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 govemment unit. Any fair and reasonable doubt as to the existence ‘of the power shall be interpreted in favor of the local government unit concerned; In case of doubs, 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 strietly agtinst the person claiming it ‘The general welfare provisions in this Code shall be liberally interpreted +0 give more powers to local govemment units in accelerating economic development and upgrading the PIA. quality of life for the people in the ommunity; 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 sad eontraets of the law in force art the times such rights were vested; and In the resolution of controversies arising under his Code where no legal provision or jurisprudence applies, resort may be had to the eustoms and traditions in the place where the controversies take place, Interpretation of provision on a power of It shall be interpreted in favor of the LGU. In case of doubt, it shall be resolved in favor of 4) Devolution of powers: and b) Lower LGU AAs to doubt on the existence of such power, it shall be interpreted in favor of the LGU Interpretation of tax ordinance of revenue __ ‘measure It shall be interpreted against the and in favor of the enacting I taxpayer ‘The reason for this is that taxes are buriens imposed on the taxpayer.PUBLIC CORPORATION 2019.2020, 2 Atty, Rodolfo Lapid Interpretation of tax exemptions It shall be intexpreted strictly against the taxpayer, and in favor of the LGU It shall be interpreted to give more powers to the LGU Where is the general welfare provision/ clause found? I is found under See. 16 of the LGC Governing law as to rights and obligations already existing at the time of the LGC or those arising out of contracts involving LG It shall be governed by: 8) Said contract; or aw existing at the time the sight was vested b) Q: In case there is_an absence of legal provision _or jurisprudence regarding the controversy, what_may be fesorted_1o resolve the issue It may be resolved by — customs of traditions where the controversies took place. Secs. Authority 0 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 politcal subdivision, or by ordinance passed by the yegunian panlalawigan or sangguniang panlungsod concerned in the case of Darangay located within its teritorial jurisdiction, subject to. such limitations requirements prescribed in this Code. ): How are public corporations created? Public corporations are created by law | Who_may create local units (LGUs) wwernment Asa general rule, LGUs are created by Congress. As an exception, barangays may be created by ordinance passed by 8) Sanggunian pantalawigan; or b)_ Sanggunian pantungsod : Can the sangeunian panlalawigan or panlungsod create provinces, cities, or municipalities. No, they may only c barangays. The creation of provinces, cities, or municipalities, are powers exclusive to Congress, Power to create and power to destroy ‘The power to create necessarily includes the power to destroy Corporations _for__profit__v. quasi carparaifous. " aipubl corporations Corporations for profit are those formed or organized for the sole purpose of business undertaking for the benefit of those composing the comporation themselves. Quasi corporations on the other are those formed by a statute or by immemorial usage such as 3) PaPUBLIC CORPORATION 2019.2020, 2"! Sem Atty, Rodolfo Lapid townships, districts. counties, and school Quasi-public corporations are those formed for the benefit of the public, which are private corporations which hhas accepted or have been given a grant or franchise by the State Necessarily, to enable them to exercise their public purpose, they are given authority to exercise state powers, Examples of corporations for profit 8) Jolibee b) Sun Miguel Examples of quasi-public corporations 8) PLDT (has power of eminent domain) by) MBRALE domain ) (has power of eminent Sec.7. Creation and conversion; As a general rule, the creation of a local government unit of its conversion from one level to another level shall be based on ible indicators of viability and projected capacity to provide services, 0 wit Income. — It must be sufficient, based con 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; Population. — Ie shall be determined as the total number of inhabitants within the territorial jurisdiction of the local government unit concerned; and ©) Land areas. — It must be contiguous, unless it comprises two (2) of more islands or is separated by a local government unit independent of the PUA others; properly identified by metes and bounds with technical descriptions; and sufficient to provide for such basic services and facilites to meet the requirements ofits populace. Compliance with the foregoing indicators shall be attested to by the Department of Finance (DOF), the National Statistics Oftice (NSO), and the Lands Management Busca (LMB) of the Department of Environment and Natural Resousces (DENR). Under Sec. 7, the following muse be 1 Su 2 Population; and 3. jent income; Contiguous land Area Judicial amendment Tn one case, the Court ruled eat an asea of population may be substinuted with each other, hence, the economic indicators for an LGU are as follows: 1, Sufficient income, asthe requirement; indispensable and 2. Area OR population Sce.8. Disision and Meager, Division and merger of existing local {government units shall comply with the same requirements herein prescribed for their creation: Provided, Jonever, shall not reduce the income, population, or land atea of the local government unit or units that such division concerned to less than the minimum requirements prescribed in this Code: Provide, friver, that the income classification of the original local government unit or units shall fot fall below its current income classification prior to such division, 4| PagePUBLIC CORPORATION 2019.2020, 2" Sem Auy. Rodolfo Lapid PIA such action, unless said law or ordinance fixes | ‘The income classification of local government another date units shall be updated within six (6) months from the effectivity ofthis Code to reflect the Who shall participate in a plebiscite? changes in their financial position resulting from the increased revenues as provide Those who are registered voters of an herein, LGU which will be affected! by the _ creation, division, mexger, abolition oF See.9. Abolition of Local Government atertion of an LGU = (Tan v. Units; COMELEC and Padilla A Noeal Geer WA it, We. liable COMELEQ) when its income, population, or land area has been irreversibly reduced to less. than the Manila has six (6) districts, A seventh inlaw stdnclende preacebesl ved iteebaitan C7") district is to_be created, who must under Book III of this Code, as certified by articipate in the plebiscite? the national agencies mentioned in Section 7 ' hereof 1 Congress of to the sanggunian Te must be the registered voters of the concerned, as the ease may be. other six (6) districts. ‘The law of ordinance abolishing a local See. Selection and Transfer of Local government unit shall specify the province, Government Site, Offices and Facilities; city, municipality, or barangay with which the @ The law or onlinance creating or local government unit sought to be abolished merging focal government units shall will be incorporated o merged specify the seat of government from where governmental and corporate Q: Can an LGU be abolished? services shall be delivered. In selecting sail site, factors relating t0 Yes geographical centrality, accessibility, availabilty of transportation and Ground to abolish LGU communication facilities, drainage and sanitation, development and economic When the income, population, oF land progress, and other relevant area has heen irreversibly reduced to considerations shall be taken into Jess than the minimum standards account preseribed for its creation b) When conditions and developments in See.10, Plebiscite Requirement; the local government unit concerned No ereation, division, merger, abolition, or have significantly: changed subsequent substantial alteration of boundaries of local to the establishment of seat of government units shall take effeet_ unless government, its sanggunian may, after approved by a majority of the votes east in a public hearing and by a vote of two- plebiscite called for the purpose inthe thirels @/3) of al its members transfer political unit or units disectly affected, Said the same to a site better suited to its plebiscite shall be conducted by the needs. Pred, however, that to such Commission on Elections (Comelec) within transfer shall be made outside the fone hundred twenty (120) day's from the date territorial boundaries of the local of effectivity of the law or ordinance affecting government unit concerned.PUBLIC CORPORATION 2019-2020,2 “Sem Atty. Rodolfo Lapid PIA recommendation of the The old site together with the sanggunian concemed; improvements thereon may be 2. Provincial oats, avenues, disposed of by sale or lease or boulevards, thoroughfares, converted to such other use as the and bridges; sanggunian concerned may deem 3. Public vocational or technical beneficial tothe local government unit schools and other post concerned and its inhabitants. secondary and tertiary schools; 4. Provincial hospitals, health centers, and other health ©) Local government offices and facilities a shall not be transferred, relocated, or facilites; and converted to other uses unless public hearings are firs conducted for the purpose and the concurrence of the Any other public place or building owned — by the provincial government majority of all the members of the }) The sanggunians of highly urbanized concemed is obtained, Cities and of component cites whose charters. prohibit their voters from voting for provincial elective officials, hereinafter referred to in this Code as independent component cities, may, in consultation with the Philippines Historical Commission, change the mame of the following within its sanggut Seel2. Government Centers; Provinces, cities, and municipalities shal endeavour to establish a government center where offices, agencies, or branches of the National Government, local _ government units, or government-owned or controlled corporations may, as fir as practible, be located. In designating such a center, the local territorial jurisdiction: government unit concerned shall take into 1. City barangays, upon the account the existing facilities of national and recommendation of the local agencies and offices which may serve as sangguniang barangay the government center as contemplated under concerned, this Section. The National Government, local 2 City roads, avenues, government unit or government-owned or = boulevards, thoroughfares, controlled corporation concemed shall bear and bridges, the expenses for the construction of its 3. Public elementary, secondary buildings and ficiiies in the government and vocational or technical center. schools, community colleges and non-chartered eollexes; 4. City hospitals, health centers Sec13. Naming of Local Government Unite and Public Places, Streets and and other health facilites; and Structures; Any other public place or building owned by the city government. a) The sangguniang panlalawigan may, in consultation with the Philippine Historical Commis jon (PHQ, change 1¢ of the following within its ©) The sanggunians of component cities and municipalities may, in the Philippine Historical Commission, change the the tertitoral jurisdiction: 1. Component cities and municipalities, upon the 6| PagePUBLIC CORPORATION 2019-2020, 2“! Sem. Atty, Rodolfo Lapid ii, ame of the following within its territorial jurisdiction ) The change of name of any local government unit shall be effective Syiand smunichpal becyeaya, ‘only upon satification in a plebiscite yan woeemaenencaitna if the conducted for the purpose in the sanguin barangay political unit clirectly affected concerned 2. City, municipal and barangay })_ In any change of name, the Office of roads, avenues, boulevards, the President, the representative of the thoroughfares, and brides; legislative district concesned, and the 3. City and municipal public Burcau of Posts shall be notified, elementary, secondary and vocational oc’ technical Vote needed schools, post-secondary and other tertiary schools; Temust be unanimous 4. City and municipal hospitals, health centers and other health Philippine Historical Commission facilities; and 5, Any other public place or Consultation with the PHC is required building owned by the to availa change of name ‘municipal government X, a sanggunian member, objected to @ None of the foregoing local chg_change of pane Will the_chatyse of government units, institutions, places, muartne ata effect for buildings shall be named after a living person, nor may a change of fame he made unless for a justifiable reason and, in any case, not oftener Sce.l4. Beginning of Corporate Existence; When a new local government unit is created, No, the vote required is unanimous than once every ten (1) years. The sairne6t u dood guveenmenbinlvors its corporate existence shall commence upon public place, meet, of aeructare with the election and qualification of its chief historical, cultural, of ethnle exceutive and a majority of the members ofits significance shall not be changed, sanggunian, unless some other time is fixed sank; by: a, unanimous, wote “af: the therefor by the law’ or ordinance ereating it sanggunian eonecened and in consultation with the PHC. Effectivity clause ©) A change of name of a public school js provision declares when the shall be made only upon the LGU would be deemed to exist recommendation of the local school board concerned. Rule as to commencement of existence of Leu 4) A change of name of public hospital, GR: Upon the election of health centers, and other health 1. Chief executive; facilities shall be made only upon the and recommendation of the local health board concerned.PUBLIC CORPORATION 2019-2 Atty. Rodolfo Lapid 120, 2 2. Majority of sanggunian members ER: Fixed bylaw or ordinance Sec.15. Political and Corporate Nature of Local Government Unitss 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 nat a corporate entity representing the inhabitants of its territory nal government and as Dual natu An LGU exercises two powers as a: 1. Body politics and 2. Coxporate entity Rule as to liability for damages As a body politic GR: NOT liable ER: — When negligent in performing (Art. 2189, Civil Code of the Philippines) As a conporate entity, liable for damages Q: Due to a manhole which was_not maintained in good condition by the City iia Teas was neti ain the good condition of the toad or public works (City of Manila ¥, Teotico) Sec16. General Welfare; | PUA the Every local government unit shall exe powers. expressly granted, those necessarily implied therefrom, aswell as powers necessary, appropriate, oF incidental for its efficient and effective governance, and those which are essential to the promotion of the general welfare, Within their respective territorial jurisdictions, local government units 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, promore full employment among their residents, maintain peace and onder, and preserve the comfort and convenience of their inhabitants. shall ensure and support, Purpose ‘The provision expressly: provided for the grant of police power to LGUs. eral Welfare clause or Prior to the enactment of the LGi police power is only implied and led to numerous questions on such authority See17. Basie Services and Facilities; (© National agencies or offices concemed shall devolve to local government units the responsibility for the provision of basic services and facilities enumerated inthis Section within six (6) months afier 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 8| PagPUBLIC CORPORATION 2019-2020, 2 Atty. Rodolfo Lapid pesform specific functions. and responsibilities ‘Devolution Act by which the national government confers power and authority upon the varios LGUs to perform specific functions and responsibilities Sec. 18. Power 10 Generate and 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 oftheir development plans, program objectives and Priorities; t0 ereate 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 diseetly 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, aliena 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. See. 19. Eminent Domain; A local government unit may, through its chief executive and acting pursuant to an ordinance, exercise the power of eminent PUA 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. When eminent domain cannot _be exercised ‘The LGU cannot exercise eminent domain under the following instances: 1) No valid and definite offer made; and 2) Rejected offer Q: If refused, what remedy may the LGU interpose? :xpropriation proceedings Effect of expropriation proceeding _ The LGU may immediately take possession of the propery upon deposit of fifteen percent (15%) of the fair market value to the proper court Q: Who determines the value to be paid? The court 9| PagePUBLIC CORPORATION 2019-2020, 2 Atty. Rodolfo Lapid Sec. 20, Reclassification of Lands; a Neity or municipality may, through an ordinance passed by the sanggunian after conducting public hearings for the purpose, authorize the reclassification of agricultural lands de for the manner of their disposition inthe following cases: (1) when the land ible and sound for agricultural purposes as determined by the Department of and pros utilization or ceases 10 be economically Agriculture or 2) where the land shall have substantially greater economic value for residential, commercial, or industrial purposes, as determined by the sanggunian concemed: 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: For highly urbanized and independent component cities, fifteen percent (15%); For component cities and first wo the third class municipalities, ten (10%); and For fourth to sixth class municipalities, five percent (6%): Provided, further, That agricultural lands distributed to agearian reform beneficiaties pursuant 10 Republic Act Numbered Sixty~ six hundred fifiyseven (RA. No. 6657). otherwise known as "The — Comprehensive Agrarian Reform Law*, shal riot be affected by the said reclassification and the conversion of such lands into other purposes shall be PUA. governed by Section 65 of said Act D) The President may, wher requires and upon public interest se recommendation of the National Feonomic and Development Authority, authorize a city or municipality to reclassify lands in excess of the limits set in the next preceding paragraph. ©) 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 ageney is required for reclassification, such approval shall not be unreasonably withheld, Failure to act on a proper and complete application for reclasifieation within three @3) months from receipt of the same shall be deemed as approval thereof, ©) Nothing in this Section shall be construed as repealing, amending, or modifying in any manner the provisions of R.A. No, 6657. See. 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PUBLIC CORPORATION 2019-2020, 2 Sem Auty. Rodolfo Lapid PIA b) 9 approved by at least ewo-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. 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 t0 the local government unit concerned may be lawfully used or conveyed: Provided, however, That no freedom park shall be closed permanently without provision for its transfer or relocation to a new site. Any national or local road, alley, park, for square may be temporarily elosed ring an actual emengeney, 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 exceutive concerned in a writen onder: Provided, however, That 90 national or local road, alley, park, oF square shall be temporarily closed for athletic, cultural, or civic activities not officially sponsored, recognized, or approved by the local government unit concerned. 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. wired vote in ently _closi Atleast 2/3 vote from the sanggunian members Effect of permanently closing streets It reverts 10 patrimonial property capable of private acquisition. A street formerly known as Pancho Villa 5 temph in use by the public, the sanggunian decided to close said street. At was originally in from of a As said street was not actually present, the said street is being used as 4 parking lot See. 22 Corporate Powers; a) Every local government unit, as a corporation, shall have the following power 1) To have succession in its continuous corporate 2) To suc and be sued; To have and use a cosporate seal; 4) To acquire and convey real or personal propery 5) To enter into contracts; 6) To exercise such other powers a8 are granted to corporations, subject tothe limitations provided in this Code and other laws. b) Local government units may continue using, modify, or change their existing rovided, ‘That newly government units oF corporate seals established locaPUBLIC CORPORATION 2019-2020, 2 Atty. Rodolfo Lapid PIA those without corporate. seals may agreement or deed of donation, report the create their own corporate seals which nature, amount, and terms of such assistance shall be registered withthe to both Houses of Congress and the Department of the Interior and Local President, ‘ernment: Provided, further, That any change of eoeporate seal shall also )- Can the mayor enter into contracts be registered as provided hereon, himself? ©) Unless otherwise provided inthis No, it must be authorized by the Code, no contract may be entered into sanggunian, by the local chief executive in behalf of the local government unit without Q: What is the status of the contract in the prior authorization by the sanggunian above question? concerned. A legible copy of such contract shall be posted at a Void conspicuous place inthe provincial capitol or the city, municipal or Seah, Liability for Damages; barangay hall. Local government units and their officials are not exempt from liability For death or injury to persons or damage to property €) 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, See. 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 asic 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 rational security implications shall be approved by the national ageney 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 he deemed! approved. ‘The local chief executive shall, within thirty G0) days upon signing of such grant 12| PaPUBLIC CORPORATION 2019-2020, 2." Sem Ady. Rodolfo Lapid MIDTERM POINTERS ‘See.2. Declaration of Policy; a b) 9 Tris hereby declared the policy of the State that the territorial and_politieal subdivisions of the State shall enjoy genuine and meaningful local autonomy to enable them attain their fullest development as self-reliant communities and make them more effective partners in the attainment of national goals. Toward. this end, the Stare shall provide for a responsive and aceountable local government structure instituted through a system of decentralization whereby local government units shall be given more powers, authority, responsibilies, and resources. The process of decentralization — shal proceed from the National Goveroment to the local government 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, It is likewise the policy of the State t0 require all national offices. to conduct, agencies and periodic consultations with appropriate local government units, non-governmental and people ’s organizations, and other concerned sectors of the community before any project or program is implemented in thei respective jurisdictions. Q: Where shall the LGC apply? It is applicable to: a) Provinces; terpretation of LGU PIA b) Cities; ©) Municipalities; 4) Barangays; ©) Other political subdivisions; ) National government a. Officials b. Offices; or Agencies It shall be interpreted in favor of the LGU. In case of doubs, it shall be resolved in favor of a) Devolution of powers; and b) Lower LGU As to doubt on the existence of such power, it shall be interpreted in favor of the LGU crpretatio ordinance ot rev ‘measure Ie shall be interpreted against the enacting LG taxpayer. ‘The reason for this is that taxes are burdens imposed on the taxpayer. werpretation of ions It shall be interpreted strictly against the taxpayer, and in favor of the LGU terpretation of general welfare provision. Ie shall be interpreted to give more powers to the LGI low a ic ations cre: Public corporations are created by law 13| PagePUBLIC CORPORATION 2019-20202 Sem Atty. Rodolfo Lapid ; Who _may create local_government units (LGUs) Asa general rule, LGUs are created by Congress. Asan exception, barangays may be created by ordinance passed by: a) Sanggunian panlalavigan; or ‘nggunian panlungsod Q: Can the sanggunian panlalawigan or panlungsod create provinces, cities, or municipalities, No, they may only ereate barangays ‘The crea on of provinces, cities, or municipalities, are powers exclusive to Congress Under Sec. 7, the following must be 1, Sufficient income; 2. Population; anc 3, Contiguous land Area amendment In one case, the Court ruled that an area or population may be substituted with each other, hence, the economic indicators for an LGU ate as follows: 1, Sufficient income, as the indispensable requirement; and 2, Area OR population Q: Who shall participate in a plebiscite? ‘Those who are registered voters of an LGU which will be affected by the PIA creation, division, merger, abolition or aheration of an LGU (Tan COMELEC and Padilla COMELEG) Manila has six (6) districts. A seventh (7) district is to be created, who must participate in the plebiscite? It must be the registered voters of the other six (6) districts Dual nature An LGU exercises two powers as a: 1. Body polite; and 2. Corporate entity Rule as to liability for damages: Asa body politic: GR: NOT liable ER: — When negligent in performing (Att, 2189, Civil Code of the Philippines) Asa comporate entity, liable for damages Q: The LGU decided to create _an executive committee for purposes of organizing a town fiesta. During the performance of sarsucla, one of the performers fell and pinned down under the stage and eventually died, Due to the incident, damages was filed against the LGU, For the lauer’s defense, it argued that it is in the exercise of a ‘governmental funetion hence no damages may be recovered against it, Is the LGU correct? No, the LGU is incorrect 14| PaPUBLIC CORPORATION 2019-20202“! Sem, Atty. Rodolfo Lapid ‘The Court held that the conduct of a festa is not a governmental function but rather a proprietary or coxporate function. As it is corporate in nature, damages may be recovered from the LGU, (Torio v. Fontanilla) : Due to. which_was_noi maintained in good condition by the Cit of Manila, Teotico fell in it and suffered injury. May the City be held liable? Yes, as the City was negligent in ‘maintain the good condition of the road or publie works Asan exception, an LGU may be held liable for damages even if the function is governmental if there is negligence involved. — (City of Manila v. Teotico) Seel6. General Welfare; y local government unit shall exercise the powers expressly granted, those necessarily implied therefrom, as well as powers necessary, appropriate, or incidental for its efficient and effective governance, and those which are essential to the promotion of the general welfare, Within their respective territorial jurisdictions, local government units shall ensure and support, among other things, the preservation and enrichment of culture, [promote health and safety, enhance the right fof the people to a balanced ecology, encourage and support the development of appropriate and self-reliant scientific and technological capabilites, 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 Purpose PUA, The General Welfare clause or provision expressly provided for the rant of police power to LGUs, Prior to the enactment of the LGC, police power is only implied and led to numerous questions on such authority Devolution Act by which the national go -mment confers power and authority upon the various LGUs. to perform specific functions and responsibilities ‘When eminent _domain _cannot__be __ exercised The LGU cannot © ise eminent domain under the following instances: 1) No valid and definite offer made; and 2) Rejected offer Q: If refused, what remedy may the LGU __ interpose? ‘xpropriation proceedings Effect of expropriation proceeding. ‘The LGU may immediately take possession of the property upon deposit of fifteen percent (15%) of the fair market value to the proper court Who i value to be paid? The court Required vote_in permanently closing streets Atleast 2/3 vore from the sanggunian membersPUBLIC CORPORATION 2019-2020, 2 Auy. Rodolfo Lapid PIA Effect of permanently closing streets Control v. supervision Ie rovers to patrimonial propery Control refers wo the power w alter, capable of private acquisition. modify, nullify and set aside an act of subordinates. A street formerly known as Pancho Villa St. was originally in from of a On the other hand, supervisi temple, As said street was not actualy see to it that the subordi in use by the public, the sanggunian doing their duties decided 1 close said street. At present, the said street is being used as a parking lot : The LGU decided to issue _an ordinance to close some streets, In_licu of its being streets, the LGU. contracted with a private person _to. establish a flea market. A police officer confiscated the products being sold as he argued that it is a public property where no _market_may be established. The LGU argued that as there is_an_ ordinance allowing for such, the market should be allowed. Is the LGU. correct? No, the LGU is incorrect. Public property in continuous use by the public as such eannot be subjected to private acquisition or closure. ‘The said ordinance is without legal force, as it is mull and void. (Macasiano v. Diokno) Q: Can the mayor enter into contracts by himself? No, it must be authorized by the sanggunian, Q: What is the status of the contract in the above question? Void 16| PogPUBLIC CORPORATION 2019-2020, 2“! Sem, Atty, Rodolfo Lapid MIDTERM SAMPLEX 1) An ordinance of the Municipality of Virac, Catanduanes, was passed classifying the warehouse of Mr. X, asa public nuisance because of the disturbances caused by the operations of a_abaca boiling ‘machine inside the warcho Ic allegedly affected the tranquility and_health of the neighborhood due to the smoke. ‘Mr. X moved for a reconsideration _ but the council denied it, hence he went to court 1g the issue whether the isa nuisance or Yes, itis a nuisance ‘The Court held that storage of abaca is a nuisance under Art. 694 of the Civil Code of the Philippines. ‘The ordinance in this case must be upheld as the purpose for such is to avoid the loss of property and life in cases of fire, (Tatel v. Virac) (NOTE: Under the same age requisites for a valid municipal ordinance, se, the following, it must a NOT contraven the Constitution or law; b. NOT unio oppressive; NOP partial or discriminatory NOT prohibit, but — may regulate; NOT unreasonable; and Be general in application and consistent with public policy) 2) PAGCOR decided _to_operate_a casino_in Baguio City under the authority of PD 1869, it leased a PIA Iding owned by Mr. A, renovated and equipped it in preparation for its inauguration. ortion of a bu ‘The City Council enacted an ordinanes rohibiting a ‘operation of casinos in the City and. providing penalty for its violation. validity of the ordinance in court. How would you resolve the issu Discus ‘The ordinance must be steuek: dows, Ordinances, to be valid, must not contravene the Constitution or any la In this case, the ordinance contravened PD 1869 which allows the operation of casino gambling, If the said ordinance is allowed, then it has the effect of amending or nullifying a lav (Mageajas v. Pryce) 3) The municipal couneil_of the Municipality of Betis, Pampanga, passed an ordinance penalizing any person or entity engaged in the business of selling tickets to. movies of other public exhibitions, games or performances _ which would charge children between ven (2) and twelve (12) years of age the full price of admission tickets instead of only one half of the amount thereof. Would you hold the ordinance a valid exercise of legislative power by the Municipaliey? No, the ordinance must be struck down for being unconstitutional IT| PagePUBLIC CORPORATION 2019-20202“! Sem, Atty. Rodolfo Lapid ‘The exercise of police powers must not be oppressive, to the extent of intervening with private rights In a similar case, the Court held that the proprietors of a theatre has the right to manage as to determine the prices to which they may be availed. (Balneuie v. CFI of Agusan) 4) An ordinance was passed by the Municipality of Bocaue, Bulacan, prohibiting the operation _ of nightclubs, cabarets and dance hall the Municipality of the renewal ‘of their licenses to operate them. ners, owners and operators clubs i 1e_file ‘petition questioning the validity of the ordinance and to prohibit said ‘Municipality from enforcing the same. The RTC of _ Bulacan dismisses the petition and upheld ¥ of e, was filed by the petitioners before the Supreme Court. Will it prosper? Why? Yes, the petition will prosper. Order 48 allows for the regulation of places of amusement, but not to probit them, In this ease, the ordinance is unreasonable for absolutely prohibiting such establishments. Hence, the ordinance contravened a statute and must be struck down. Paras) 5) Mapayo is Municipality composed of 80 Barangays. The 30 western Barangays, feeling left our _ of economic initiatives, wish to ite themselves into a_new Dela Cruz v. PIA and separate town to be called MASIGLA. Grantin, that___MASIGLA’. law their favor, would _a lebiscite be necessary or no If its necessary who should vote or participate in the _ plebiscite? Discuss briefly. Yes, a plebiscite would still be necessary Under the Local Government Code, it is ccessary for a majority vote via a plebiscite from the affected political units before a new L is created, Alregistered voters of the other 50 barangays must participate as they will be affected by the cxeation, (Tan v. COMELEC and Padilla v. COMELEQ) 6) An Ordinance of Quezon City wide a "4 of burial__of deceased pauper _ residents. Discuss the constitutional validity of the ordinance. ‘The ordinance is unconstitutional In reality, the taking amounts to an exercise of the power of eminent domain, which, before a valid exercise, just compensation must be given to the public. In this case, the LGU takes the property for public use without any just compensation to the private owners. Hence, as no jost compensation was given, the property cannot be taken. (Quezon City v, Brieta) 18| PaPUBLIC CORPOR, Auy. Rodolfo Lapid JON 2019-2020, 2“ Sem 7) May Local Government Units exercise the power of eminent domain? If so, under _what conditions? Yes, an LGU may exercise the power of eminent domain. In exercising, an valid and definite offer must be made to the private person which must be accepted. In case of expropriation proceedings, the LGU may immediately take possession of the property upon deposit of fifteen percent (15%) of the fair market value to the proper court ‘The coure determine the fair market value. 8) What is the meaning of Devolution and its implications? Act by which the nation confers power and authority upon the various LGUs to perform spec government functions and responsibilities 9) State the basic principles governing the effective implementation of _ the _ local ‘government code. See Sec.2 19) PB PIA