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Pub Corp

-Tokie

Section. 2
Differentiate autonomy and decentralization.

Consti Provisions (Art. X)

Section. 1
What are the political subdivisions of the RP?

Autonomy also involves decentralization of

administration of powers and this happens when
administrative powers are delegated by the central govt.
to its political subdivisions with the end in view if making
local government units more responsive, accountable
and self-reliant communities.

Ans: PCMBA
1. Provinces
2. Cities
3. Municipalities
4. Barangays
5. Autonomous Regions
The constitution mandates TWO autonomous
regions, at present there is only one, the ARMM.
Note: additional autonomous regions need a
constitutional amendment ONLY IF it is outside
the territory of those that are already declared to
be autonomous.
Is the right of the PCMBA to exist a consti right or a statutory
right?
Ans: It is a constitutional right. However, the authority to
create, divide, merge, abolish or to alter its boundaries
is dependent upon a law or ordinance as the case may
be.

Decentralization of powers the same is given in favor of

the local govt. unit so it will be more independent and
free to move on its own with the least intervention from
the central govt. In this manner the autonomous region
becomes accountable not to the central authorities but
to its constituency.
NOTE:
Autonomy is the principle.
Decentralization is the process.
Sections. 3 & 4
NOTE: The president only exercise general supervision over
local governments. It cannot substitute his judgment over their
own. (Remember also our lesson about the alter ego doctrine.)

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Section. 8
What is the term limit of local officials?

Section. 5
Note: This section grants the LGU the power to create its own
sources of revenue, and to levy taxes, fees, and charges
subject to

the

limitations

of

Congress.

These shall

ACCRUE EXCLUSIVELY to the local govt.

concerned.

Ans:
Local officials except barangay o
3 years for 3 terms
Barangay officials o

What are the sources of income of the LGU?

Ans:

3 years only
Section. 9

1. IRA

LGUs have sectoral representation.

2. Those raised from (TFC) taxes, fees, and charges

3. Lease of public utilities

Section. 10
No PCMB may be created, divided, merged, abolished, or its
boundaries substantially altered except in accordance with the
criteria in the LGC and is subject to approval by a majority of
votes cast in a plebiscite in the political units directly affected.

4. Funds from national aid

5. Donations

Sections. 6 & 7
Note requirements:
The LGUs enjoy fiscal autonomy. Their share in the
national taxes is AUTOMATICALLY released to them.
They have an equitable share to the national wealth.
Note: There is a need for an enabling law for sections 6 & 7 since
the law says in the manner provided by law

PCM it should be thru a law passed by Congress.

B it should be thru an ordinance passed by the sanggunian
INCOME REQUIREMENT (includes IRA):

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Province P20,000,000

-Tokie

Section. 11

City P100,000,000

Power of congress to create metropolitan political

subdivisions.

Municipality P25,000,000
Highly Urbanized City P50,000,000

Section. 12
3 kinds of cities:
Highly urbanized

POPULATION REQUIREMENT:

Population is 200k and annual income is P50m

Province 250,000

Component Cities

City 150,000
Municipality 25,000

Cities w/c do not meet the abovementioned

requirements are deemed to be a part of the province

Highly Urbanized City 200,000

w/c they are geographically located.

Independent Component Cities

LAND AREA REQUIREMENT:

Cities that have charters that specifically prohibit

residents to vote for provincial officials. They are
independent of the province in which they are located.

Province 2,000 sq. km.

City 100 sq. km.

Currently we have 5, they are:

Municipality 50 sq. km.

Cotabato, Dagupan, Naga, Ormoc and Santiago.

Note: All of these must be certified by the Dept. of Finance,

NSO, LMB & DENR

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Section. 13

-Tokie

Section. 17 & 18

Authority of LGUs to consolidate themselves.

Note: It must be after the approval of the sanggunian
concerned and a public hearing held for the purpose.

The powers of the autonomous regions are provided by

law. If not, then it remains vested in the National
Government.
Note: The power granted to the autonomous regions does not
make them an imperium in imperio.

Section. 14

Section. 20

Two powers granted to the president under this section.

1. The power to provide for regional development
councils; and
2. To provide for other similar bodies composed of:
a. Local govt. officials
b. Regional heads of depts. and other govt. offices
c. Representatives of NGOs within the region.

This section just provides for the legislative powers of the

autonomous regions.
Section. 21
Local Police Agencies

1. Internal peace &

order
2. Ordinary
criminality

National Government

The defense
security of the
regions

and

Section. 15
Constitutional mandate to have 2 autonomous regions.
(You already know who they are.)
Section. 16
The president exercise general supervision over the LGUs
to ensure that the laws are faithfully executed.

What is a corporation?
It is a juridical person with separate and distinct
personality. An artificial being created by law, having the
right of succession and the powers, attributes and
properties expressly authorized by law or incident to its
existence. (Sec 2, Corporation Code)

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3 Classifications of a corporation according to its purpose:

-Tokie

Public vs Private Corporation

Consider as criterion the relation of the corporation to the
State. If it is created by the State as its own agency or
instrumentality to help it carry out its governmental functions,
then it is public. Otherwise, it is private.

1. Public
2. Private
3. Quasi-public
Public Corporation
It is created by the State as its own agency to help the
state

in

performing or exercising

governmental

functions as well as administration of local government.

Private Corporation

Classes of public corporations:

Quasi-Corporations

It is formed for some private purpose, benefit, aim or

end; organized wholly for the profit and advantage of
their own members and cannot constitutionally be
granted governmental powers. These are created by the
will of the incorporators with the recognizance of the
State.
Quasi-public Corporation
They are private corporations that render public service
or supply public wants; while purposely organized for
the gain or benefit of its members, the law requires
them to discharge functions for the public benefit.

They are public corporations created as agencies of the

State for a narrow and limited purpose.
They differ from other public corporations in that they do
not possess the powers and liabilities of selfgoverning
corporations. Instead, their powers generally relate to
matters of State, and not municipal concerns.
Thus, although they are public in nature, they cannot be
strictly considered municipal corporations because of
their limited number of corporate powers and low grade
of corporate existence.
The main purpose of their creation is to aid the State in,
or to take charge of, some public or state work other
than community government for the general welfare.

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Municipal corporations

Attack against the validity of incorporation

Created mainly for the purpose of local government.

A municipal corporation is a body politic constituted by
the incorporation of the inhabitants of a city or town for
the purpose of its local government.
It is established by law partly as an agency of the State to
assist in the civil government of a country, but chiefly to
regulate and administer the local or internal affairs of
the city/town/district which is incorporated.
Municipal corporation vs public corporation
All municipal corporations are public corporations, but
not all public corporations are municipal corporations.
Municipal corporations refer to incorporated provinces,
cities and municipalities with powers of local
administration.
Enumerate the elements of a municipal corporation.
(TILCO)

The validity of incorporation and the corporate existence

of a municipal corporation may not be attacked
collaterally. It may be challenged only by the State in a
direct proceeding such as quo warranto.
But this rule applies only where the municipal
corporation is at least a public corporation. Where it is
neither a corporation de facto or de jure but a nullity, its
existence may be questioned collaterally or directly in
any action or proceeding by anyone whose rights or
interests are affected thereby, including the citizens of
territory incorporated unless they are estopped from
doing so (Municipality of Malabang vs Benito).
The principle of estoppel applies to an individual who wants to
attack the validity of incorporation of a municipal corporation.
Where an individual dealt with it and acquiesced in the exercise
of its corporate functions, or where he has entered into a
contract with the said corporation, he may be estopped to deny
its corporate existence.

1. Territory
2. Inhabitants
3. Legal Creation or incorporation
4. Corporate name

-Tokie

A person or private corporation may likewise be precluded by

laches from attacking the validity of the incorporation of a
municipality.

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W/ a charter Pre-audit of COA / W/out Post-audit of COA

What is a GOCC?
Under the GOCC law (RA No. 10149) it is:
Any agency organized as a stock or non-stock 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
GlCP/GCE and GFI as defined herein.

-Tokie

the Commission on Audit for purposes of the exercise and

discharge
of
functions
corporations.

their respective
powers,
and responsibilities with respect to such

BSP vs. COA definition

The SC used the Admin code definition.
Define agency under RA 10149.
Government Agency refers to any of the various units of
the Government of the Republic of the Philippines,
including a department, bureau, office, instrumentality
or GOCC, or a local government or a distinct unit therein.
NOTE: Doctrine of Exhaustion of Admin Remedies applies to an
agency.

ADMINISTRATIVE CODE OF 1987

It refers to any agency organized as a stock or non-stock
corporation, vested with functions relating to public needs
whether governmental or proprietary in nature, and owned by
the Government directly or through its instrumentalities either
wholly, or, where applicable as in the case of stock
corporations, to the extent of at least fifty-one (51) per cent
of its capital stock: Provided, That government owned or
controlled corporations may be further categorized by the
Department of the Budget, the Civil Service Commission, and

Define instrumentality under the Admin Code of 1987.

Instrumentality" refers to any 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,

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chartered institutions and government-owned or

controlled corporations.
NOTE: Doctrine of Exhaustion of Admin Remedies does not
apply to a govt. instrumentality.

-Tokie

The SC explained the prohibition of creating a private

corporation under a special law since this the purpose of
this constitutional provision is to ban private
corporations created by special charters, which
historically gave certain individuals, families or groups
special privileges denied to other citizens.
Local autonomy is not the same as decentralization. Local
autonomy can only mean a measure of decentralization of
functions of government.

Municipal Corporation
Old tem for LGU
LGU
Synonymous w/ the words Municipal Corporation.
Coined because of the advent of the LGC

Decentralization
The devolution of national administration to the local

Municipal Corp vs LGU

The distinction has some importance because before the
inception of the LGC, some contracts that were signed
into by the mayor alone were regarded as valid. Now it
needs the imprimatur of the sanggunian.
NOTE!
General Law Private Corporation
Special Law Public Corporation

levels in which local officials remain accountable to the

central govt in the manner law may provide.

Define each, plebiscite, referendum, initiative & recall.

Initiative the power of the people to propose amendments to
the Constitution or to propose and enact legislation through an
election called for that purpose. There are 3 systems of
initiative: Initiative on the Constitution, initiative on statutes,
and initiative on local legislation [R.A. 6735, Sec. 2(a)].

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Referendum is the power of the electorate to approve or

reject legislation through an election called for that purpose.
There are 2 classes: referendum on statutes or referendum on
local laws. [R.A. 6735, Sec. 2(c)].
Recall is the termination of official relationship of a local
elective official for loss of confidence prior to the expiration of
his term through the will of the electorate.
Plebiscite is the submission of constitutional amendments or
important legislative measures to the people for ratification.

-Tokie

Local Government
Refers to the political subdivisions established by or in
accordance with the Constitution and possesses
substantial control over its own affairs. It is not an
imperium in imperio.
Decentralization of Administration
The central govt. delegates admin powers to political
subdivisions in order to broaden the base of govt.
powers.
This relieves the central govt. from the burden of
managing local affairs

LOCAL GOVERNMENT CODE

Note, however, that the local govt. does not lose

Section 1

supervision and control over their decisions or local

fields.

Government of the Philippines

Refers to the corporate governmental entity thru which
the functions of the government are exercised
throughout the Philippines.
National Government
Refers to the entire machinery of the central government
as distinguished from the different forms of local
governments.

Decentralization of Power (or Devolution)

It is an abdication of political powers in favor of LGUs
declared to be autonomous.
The autonomous govt. becomes accountable to its
constituents, not to the central govt.

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What is a de facto municipal corporation?

-Tokie

Section 3

Requisites: (VACA)

Principles of decentralization.
Kadamo so just read and understand them. Just note that
the provisions under this section are not selfexecuting.

1. Valid law authorizing incorporation

2. Attempt in good faith to organize under it

Paragraph (E) of this section allows review of legislations

of barangays

3. Colorable compliance with the law

4. Assumption of corporate powers

Section 4
Note: It is not a de facto municipal corporation, if there was no
law authorizing its incorporation.

Section 2 (When in doubt provision ni!)

The LGC applies to all provinces, cities, municipalities,

barangays and other political subdivisions as may be
created by law.
Section 5 (When in doubt provision man ni!)

Policies of Autonomy:

This is the most important section in relation to Section

16 of the LGC.

Genuine and meaningful autonomy

KNOW IT LIKE THE BACK OF YOUR HAND!

Accountability of LGUs
Mandatory periodic consultations w/ LGUs, NGOs and
other sectors of the community.
Note: Consultation is not tantamount to approval. Just like in a
public hearing, you dont need the approval of the people (Not
a condition sine qua non), just comply with the
requirements/formalities of the law and youre good to go.

5(a)
Any provision on a power of a LGU shall be liberally
interpreted in its favor; in case of doubt, any question
shall be resolved in favor of devolution of powers of the
local govt. unit.
Ex. Doubt as to who should exercise governmental powers
between a lower and higher govt. unit.

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Ans: Lower Govt. (In favor of devolution of powers)

-Tokie

may be had to the customs and traditions in the place

where the controversies take place.

5(b)
Any tax ordinance or revenue measure shall be construed
strictly against the LGU enacting it and liberally in favor
if the taxpayer.
Any tax exemption, incentive or relief granted by any LGU
shall be construed strictly against the person claiming it.

Section 6
Creation of Local Govt. Units
PCM thru a law passed by congress
B thru an ordinance passed by the sangguinian.

5(c)
The general welfare provision shall be liberally
interpreted to give more powers to LGUs in accelerating
economic development and upgrading the quality of life
for the people in the community.

Note: The president has no power/authority to create LGUs.

(Pelaez vs. Auditor General)
Note: The CAR is not an LGU. It does not have a separate
juridical personality unlike PCM.

5(d)
Rights and obligations existing on the date of effectivity
of this Code and arising out of contracts or any other
source of prestation involving a LGU shall be governed
by the original terms and conditions of said contracts or
the law force at the time of such rights were vested.

Sections 7, 8, 9 & 10.

Requirements of (CDMAB) creating, dividing, merging,
abolishing and altering boundaries of (PCMB)
Already discussed above.
Please refer to the previous pages. Section

5(e)
In the resolution of controversies arising under this Code
where no legal provision of jurisprudence applies, resort

7 is about creation and conversion

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Note:

-Tokie

So in sum the requirements are:

Petitions and resolutions are not indispensable/needed
EXCEPT when creating a barangay.

Conversion is defined as the elevation of an LGU from one

level to another.
Section 8 is about division and merger
Section 9 is about abolition of LGUs
This happens when the LGUs income, population and
land area are irreversibly reduced to less than the
minimum standards provided by Book 3 of this code.
Note, the provision contains the word MAY. Hence, it is
discretionary/permissive. D pwede mandamus.
Section 10 this section contains the most important
requirement for CDMAB

1. Income/Population/Land Area
2. No violation of the provisions of the constitution.
3. Plebiscite
Section 11
Requirements for the selection of the seat of the
government.
1. Law or Ordinance
2. Must specify the seat of government
Requirements for the transfer of the seat of the government.
1. Public hearing
2. 2/3s vote of the sangguinian
Requirements for the transfer/relocation/conversion of
public of local govt. offices and facilities.

The requirement of a plebiscite.

It is MANDATORY!

1. Public hearing

It should be held within 120 days after the passage of the

law or ordinance for CDMAB, except if it specifies a
certain date.

2. Concurrence of a majority of the members of the

Even if all the requirements are present when there is no

plebiscite, no CDMAB will happen.

sanggunian concerned
Bar: Can the mayor, thru the exercise of the general welfare
clause (section 16) change the seat of government?

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Ans: NO! There should be compliance with the requirements.

1. the election and qualification of its chief executive and

Section 12

2. a MAJORITY of the members of the sanggunian, unless

otherwise provided.

Government Centers

Section 15

National govt., local govt, and GOCCs bear the expenses

for the construction of such centers

Dual personality of a LGU

1. Political/Governmental

Section 13

2. Corporate/Proprietary
Naming of LGUs and Public Places, Streets and Structures
Two functions/aspects/powers of LGUs
Must consult with the Philippine Historical Center
Must not be a name of a living person

1. Governmental
a. Immune from suit
b. Acts are always thru an ordinance (Ex. CDMAB)
c. Taxation

Note:

d. Eminent Domain
The change of name of the local govt. shall take effect
only after ratification by a MAJORITY of votes cast in a
plebiscite held for the purpose in the political units
directly affected.

e. General Welfare (statutory grant of police

power)
f. Local Legislative power
Ex. The establishment of a public market.

Section 14
Start of the LGUs corporate existence

2. Proprietary (Ex. Establishment of a waterworks system)

a. Not immune from suit

It commences upon

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i. Except if it was in connection or necessary

in pursuance of its
functions
b. Exercised thru a resolution.

governmental

Ordinance vs. Resolution:

Ordinance is a law while a resolution is merely a declaration of
sentiment or opinion of a law-making body on a specific matter
A 3rd reading is needed for an ordinance, not for a resolution
unless decided otherwise by a majority of the members of the
Sanggunian

-Tokie

and to apply their resources and assets for productive,

developmental or proprietary powers and functions and
Reqs:
1.

In behalf of said govt.

2.

Upon resolution of the provincial board

3.

Approval of the chief executive Section 16

(When in doubt provision)

The General Welfare Clause

The

statutory grant of police power

MEMORIZE!

NOTE!
Atty. Puebs VEHEMENTLY says that a resolution has the
same force and effect as that of a law.
Esoteric lang na dw!
Why? Because it also came from the same people who
exercise local legislative powers.
WHEN IN DOUBT-When the govt. is exercising its
governmental powers
Its presumed to be thru an ordinance.
LGUS have powers to alienate or otherwise dispose of real or
personal property held by them in their proprietary capacity

Every local government unit shall exercise the powers expressly

granted, those necessarily implied there from, as well as
powers necessary, appropriate, or incidental for its efficient and
effective governance, and those which are essential to the
promotion of the general welfare. Within their respective
territorial jurisdictions, local government units shall ensure and
support, among other things, the preservation and enrichment
of culture, promote health and safety, enhance the right of the
people to a balanced ecology, encourage and support the
development of appropriate and self-reliant scientific and
technological capabilities, improve public morals, enhance
economic prosperity and social justice, promote full

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employment among their residents, maintain peace and order,

and preserve the comfort and convenience of their inhabitants.
Limitations:

-Tokie

(CUPPUG)
1. It must not contravene the Constitution or statute
2. It must not be unfair or oppressive

1. exercisable only within territorial limits EXCEPT for

protection of water supply

3. It must not be partial or discriminatory

2. Equal protection clause

5. It must not be unreasonable

3. Due process clause

6. It must be general in application and consistent with

public policy

a. (Lawful Subject) The subject matter of the law

must be lawful. W/c means that public interest,
as distinguished from those of a particular
interest requires the interference of the state.

4. It must not prohibit but regulate trade

Note: An attempt to enforce a disapproved ordinance or

resolution can be a ground for suspension or removal from
office.

b. (Lawful means) The means employed are

reasonably necessary and not unduly oppressive
for the accomplishment of the purpose
4. Must not be contrary to the Constitution and the laws.
Prohibited activities cannot be legalized in the guise of
regulation.

Note:

Valid use of police power:

1. Promotion of the general welfare and public interest
2. Promotion of public health, public morals, public safety,
and the general welfare of each inhabitants
3. Preservation of the public order and prevention of
offenses against the State and establishment of rules of
good manners and prevention of conflict of rights
among neighbors

Those activities w/c are allowed by the law cannot be

prohibited entirely by the Sangguinian.
Remember the requirements for an ordinance to be valid.

4. Prohibition of things hurtful to the comfort, safety and

welfare of society
5. The abatement of nuisance

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Section 17 (When in doubt pagd)

-Tokie

GENERAL RULE:

Basic Services and Facilities

Just take note of paragraph (C) of section 17.
Notwithstanding the provisions of subsection (b) hereof, public
works and infrastructure projects and other facilities 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.
Note:

The national government cannot interfere with the local

govt.
Exceptions:
1. To check of the local govt. is
performing its functions properly
or if there is proper devolution of
powers
2. Section 17, Paragraph (C) Section 18
Power to create revenue

Please refer to the sources of income as stated

above/previously.

Automatic release of LGU shares

Of all the LGUs, the city is granted the most powers.

for LGUS

Two functions that a city is empowered to provide:

1. Adequate communication and transportation facilities
2. Support for education, police and fire services and
facilities

Fiscal autonomy IRA primary source of income

When in DOUBT:
All funds pass thru the local government as well as all
projects, even proposals.
Exception:

Conditional Cash Transfer (Ex. sa DSWD)

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Requirements for Valid Exercise of Revenue Generating

Powers

-Tokie

How is it exercised by the LGUs?

Through chief executive and acting pursuant to an
ordinance

1. Uniform Taxation
2. Equitable Taxation
3. Progressive System of Taxation

Never forget the requirements.

4. Collected for public use and shall inure solely to the LGU

1. Must be thru an ordinance

5. Collection of taxes, fees, charges and other imposition

should not be left to any person.

2. For public purpose/use/welfare, or for the benefit of the

poor and landless
3. Payment of just compensation

Note:

a. 15% deposit

- LGUs cannot tax government instrumentalities. (Basco vs.

PAGCOR)
Section 19

Note: You can obtain a TRO to stop the local govt. even after it
has deposited 15% for the just compensation.
4. Valid and definite offer has been previously made to the
owners and such offer was not accepted

Power of eminent domain

Note:
The LGUs are not exercising the power of eminent
domain directly.

Note: Hmbl ni atty. Puebs dapat kadtu.an gd personally when

making the offer.
5. Genuine Taking (Additional Requirement dw)

They are only exercising a delegated power of eminent

domain. Which means it must be within the metes and
bounds of the law granting the same.
Why? Because eminent domain is essentially lodged in
the Legislature.

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Section 20

-Tokie

Note:

Reclassification of Lands

You cannot reclassify lands covered by CARP.

1. For Highly urbanized and independent component cities

a. 15%
2. For component cities and first to 3rd class municipalities
a. 10%
3. For 4th to 6th class municipalities
a. 5%
Exception:
When public interest requires and upon
recommendation from NEDA, the president can
authorize a city or municipality to reclassify in excess of
the limits set forth above.

PRIMARY

SECONDARY

(AG-FO-TI-MI-NA)

(RE-CO-IN)

1. Agricultural
2. Forest
3. Timber

1. Residential
2. Commercial
3. Industrial

4. Mineral
5. National Parks
Vested
in
the
President
upon
recommendation of
the DENR

Vested in the LGUs

Section 21
Closure and Opening of Roads

Grounds:
1. land ceases to be economically feasible and sound for
agricultural purposes as determined by Department of
Agriculture
2. land shall have substantially greater economic value for
residential, commercial or industrial purposes, as
determined by the sanggunian

1. Pursuant to an ordinance
2. Permanently or temporarily close or open any road,
alley, park or square falling within its jurisdiction
3. Provided, in case of permanent closure, ordinance must
be approved by at least 2/3 of all members of the
sanggunian and when necessary, an adequate substitute
for the public facility shall be provided.

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Additional limitations:

1.

1. adequate provision for the maintenance of public safety

2. property may be used or conveyed for any purpose for
which other real property may be lawfully used or
conveyed but no freedom parks shall be closed
permanently without provision for its transfer or
relocation to a new site.
3. temporary closure may be made during an actual
emergency, fiesta celebration, public rallies, etc.
Note:

-Tokie

the local chief executive, affixing his signature on each

and every page

2.
local chief executive vetoes the same and the veto is
overridden by 2/3 vote of all the members of the sanggunian.
The local chief executive may veto only once.
Grounds:
1. ultra vires

&

2. prejudicial to the public welfare

He may veto any particular item/s of an:

1. appropriation ordinance

provincial roads and city streets are property for public

use and under absolute control of Congress; they are
outside commerce of man and cannot be disposed to
private persons
Power to vacate is discretionary on the Sanggunian
City Council has the authority to determine whether or
not a certain street is still necessary for public use.
NOTE THE LIFE CYCLE OF AN ORDINANCE
Approval of Ordinances passed by SANGGUNIANG
PANLALAWIGAN,
SANGGUNIANG
PANLUNGSOD,
SANGGUNIANG BAYAN shall be approved by:

2. ordinance/resolution adopting a development plan and

public investment program
3. ordinance directing the payment of money or creating
liability

The veto shall not affect the item/s not objected to.
The veto shall be communicated by the local chief executive
to the sanggunian
1. w/in 15 days in case of a province
2. w/in 10 days in case of a municipality

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Otherwise, the ordinance shall be deemed approved, as if

signed
Grant of veto power accords the Mayor the discretion whether
or not to approve the resolution
NOTE! signature on the resolution is NOT ministerial duty of the
Mayor. Ordinance enacted by the sangguniang barangay shall,
upon approval by a MAJORITY of all its members, be signed by
the punong barangay no veto power.
Review by Sangguniang Panlalawigan:
w/in 3 days from approval, the secretary of the
sangguniang panlungsod (in component cities) or
sangguniang bayan shall forward to the sangguniang
panlalawigan for review copies of approved ordinances
and resolutions.
Sangguniang panlalawigan shall review the same w/in 30
days
If it finds that it is beyond the power of the sangguniang
panlungsod/sangguniang bayan, it shall declare the
ordinance/resolution invalid.
If no action is taken w/in 30 days, it is presumed consistent
w/ law and valid.

-Tokie

Review of Barangay Ordinance:

w/in 10 days from enactment, the sangguniang barangay
shall furnish copies of all barangay ordinances to the
sangguniang panlungsod or sangguniang bayan for
review.
If the reviewing sanggunian finds that it is inconsistent with law
or city or municipal ordinances, the sangguniang concerned,
shall within 30 days return the same with its comments and
recommendations to the sangguniang barangay for
adjustment, amendment or modification.
The effectivity of the ordinance is suspended.
If no action is taken by the reviewing sangguinan within 30 days,
the ordinance is deemed approved.
Section 22
Corporate Powers
1. To have continuous succession in its corporate name
2. To sue and be sued
3. To have and use a corporate seal
4. To acquire and convey real or personal property
5. Power to enter into contracts

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6. To exercise such other powers as are granted to

corporations, subject to limitations provided in the Code
and other laws

-Tokie

The legality of the representation of an unauthorized counsel

may be raised at any stage of the proceeding.

The Local govt. enjoys autonomy in the exercise of its

proprietary functions subject to limitations provided in this
Code and other applicable laws.

Municipal Attorney may validly adopt the work already

performed by a private lawyer provided that no injustice is
committed against the adverse party and that no compensation
has been paid to the private counsel.

To have continuous succession in its corporate name

To have and use a corporate seal

Self-explanatory.

1. Use, modify or change corporate seal

To sue and be sued

2. Any change shall be registered with DILG (Ministerial

Duty since it is provided by the law.)

Suit is commenced by the LOCAL EXECUTIVE, upon authority of

the SANGGUINIAN except when the CITY COUNCILORS, by
themselves and as representatives of or on behalf of the City
bring the action to prevent unlawful disbursement of City funds.

3. Must be thru a RESOLUTION

Municipality cannot be represented by a private attorney.

Only the Provincial Fiscal or the Municipal Attorney. This is
mandatory.
Exception: when the Provincial Fiscal is disqualified to represent
it and the fact of disqualification appears on record.
Fiscals refusal to represent the municipality is not a legal
justification. The Municipality should request DOJ Secretary to
appoint an Acting Provincial Fiscal

4. No imprimatur of the people is needed

To acquire and convey real or personal property (includes
donating)
Note:
If local govt. plans to sell its properties, it must notify DILG. The
National govt., thru the DILG, can restrain it. (Files in court a
TRO)
LGU may acquire real or personal, tangible or intangible
property in any manner allowed by law.

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LGU may only alienate patrimonial property, upon proper

authority

-Tokie

2. The contract is entered into by the proper department,

board, committee, officer, or agent.

Absence of proof that the property was acquired through

corporate or private funds, the presumption is that it came
from the State, thus, governmental or public property.
Town plazas are properties of public domain; they may be
occupied temporarily but only for the duration of an emergency
Public Plaza is beyond the commerce of man and cannot be the
subject of lease or other contractual undertaking
Public streets or thoroughfares are property for public use,
outside the commerce of man and may not be the subject of
lease or other contracts
Procurement of supplies is made through public competitive
bidding

Unless otherwise provided, NO contract may be entered

into by the local chief executive without prior
authorization by the sangguinian concerned.
3. comply with substantive requirements
4. comply with formal requirements
Ultra Vires Contracts: contracts entered into without
compliance with first and third requisites ultra vires and void.
Cannot be ratified or validated.
NOTE:
-

Exception: amount is minimal

Requisites of Valid Municipal Contracts

1. LGU has the express, implied or inherent power to enter into
the particular contract

Ratification of defective municipal contracts is possible

only when there is non-compliance with the 2nd and/or
4th requisite.

If it does not provide that the absence of an appropriation

ordinance ipso facto makes a contract entered into by a LGU
null and void. Public funds may be disbursed not only pursuant
to an appropriation law, but also pursuant of other specific
statutory authority.
-

Police power prevails over non-impairment clause.

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Breach of contractual obligations city liable for damages

1. if a LGU is engaged in GOVERNMENTAL functions, it is NOT

liable

Remember the case of Teotico?

2. if a LGU is engaged in proprietary function, it is liable

General Rule:
-

-Tokie

LGUs and their officials are NOT exempt from liability for
DEATH or INJURY to persons or DAMAGE to property

Specific Provisions Making LGUs liable:

1. Article 2189, CC: The LGU is liable in damages for death
or injuries suffered by reason of the DEFECTIVE
CONDITION of roads, streets, bridges, public buildings
and other public works
NOTE! Attaches even if the road does not belong to the LGU,
provided that the City exercises control or supervision over said
road.ks.
2. Article 2180, CC: The State is responsible when it acts
through special agents
3. Article 34, CC: The LGU is subsidiarily liable for damages
suffered by a person by reason of the FAILURE or
REFUSAL of a member of the POLICE FORCE to render
aid and protection in case of danger to life and property.
Liability for Tort decisions PRIOR to LGC

City is liable for the tortuous acts of its employees under the
principle of respondeat superior
Liability for illegal dismissal of employee
1. Absent proof of malice or bad faith which attended the
illegal dismissal cannot be held personally
accountable
2. Municipal corporation, whether or not included in the
complaint for recovery of back salaries due to wrongful
removal from office is liable
Local officials may be held personally liable
1. Acted beyond the scope of their authority and with bad
faith
2. Must be sued in their personal capacity
3. When they act maliciously and wantonly and injure
individuals rather than discharged a public duty, they are
personally liable.

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Liability for Contracts

-Tokie

under prescribed limitations or in a prescribed mode or manner

1. Rule: A municipal corporation, like an ordinary person, is

liable on a contract it enters into, provided that the
contract is intra vires.
NOTE: If the contract is utra vires, the municipal corporation is

even if the municipal corporation has accepted benefits.

If a suit is filed against a local official which could result in
personal liability, the latter may engage the services of private
counsel.

not liable.

Section 23

Doctrine of Implied Municipal Liability:

Authority to negotiate and secure grants

- a municipality may become obligated upon an implied

contract to pay the reasonable value of the benefits
accepted or appropriated by it as to which it has the
general power to contract.
Applies to all cases where money or property of a party is
received under such circumstances that the general law,
independent of an express contract, implies an obligation to do
justice with respect to the same.
Cannot set up plea that it is ultra vires but still retain the
benefits.
Estoppel cannot be applied against a municipal corporation in
order to validate a contract which the municipal corporation
has no power to make or which it is authorized to make only

1. Local chief executive upon authority of the sangguinian

2. Negotiate and secure financial grants or donations in
kind
3. In support of the basic services and facilities in Section
17
4. From local and foreign assistance agencies
5. Without necessity of securing clearance or approval
from any department, agency, or office of the national
government or from any higher LGU
Exception:
- When the grant or assistance has national
security implications
6. Provided, projects financed by such grant or assistance
with national security implications shall be approved by
the national agency concerned.

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Section 25

constitutionality or legality of a tax ordinance, and if

warranted, to revoke it on either or both grounds.

POWER TO DISCIPLINE
Authority to administer disciplinary actions against elective
officials
POWER TO INVESTIGATE
Authority to inquire into facts and conditions in order to render
the power real and effective

Section 26
Duty of National Government Agencies in the Maintenance of
Ecological Balance.
NOTE this pertinent line of this section:
-

Note:
-

-Tokie

LGUs are not attached to the DILG

(Radia vs. Review Committee)

to consult with the local government units,

nongovernmental organizations, and other sectors
concerned

If the LGU does not comply with the above requirement, THE
LGU CANNOT ENTER INTO CONTRACTS
Section 27

Finance Secretary has no Power to Review LGU Tax Ordinance

Parties aggrieved by the tax ordinance have two remedies

Section 28
Powers of Local Chief Executives over the Units of the
Philippine National Police.

1. Administrative
2. Judicial
Power of Review of the DOJ
-

Gives life to the above quoted line of Section 26 as well

as that of Section 2 paragraph (c).

RA 6975

The SC has held that Section 187 of this code authorizes

the secretary of justice to review only the

applicable to the LGU

Known as the DILG Act of 1990

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DILG/PNP Law governs

Governors Supervisory Powers

Deputization of local chief executives was challenged in

PP vs. CA 135 scra 372

Local chief executives, when deputized, are answerable

to the NAPOLCOM, their acts are valid and binding as
acts of the NAPOLCOM.

Chosen by the governor from a list of three qualified

nominees submitted by the NAPOLCOM

Over the component cities and municipalities within its

territorial jurisdiction.

President of the Philippines

-

Provincial Police Director

-

-Tokie

Exercises general supervision over highly urbanized

cities and independent cities.

Section 30
Review of Executive Orders - Governors power of review
over Mayors Executive Orders

Police Chief
-

Chosen by the mayor from a list of five qualified

statues, the governor has the power to review all

executive orders promulgated by the component city or

nominees submitted by the NAPOLCOM

municipal mayor within the province.

Note:
-

Unless excepted by the constitution or by special

Any deviation from this procedure is null and void.

Governor has power of review over Barangays Executive

Orders
It is deemed valid if the governor or mayor fails to act on said
executive order w/in 30 days.

Section 29
Provincial
Relations
Municipalities.

In Casino vs. CA 204 scra 449

with

Component

Cities and

Review is a reconsideration or reexamination for

purposes of correction

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Section 31

Section 34

Submission of Municipal Questions to the Provincial Legal

Officer or Prosecutor.

Role of People's and Nongovernmental Organizations

In the absence of a municipal legal officer, municipal

government may secure opinion of provincial legal
officer; absence of the latter, provincial prosecutor

-Tokie

LGUs shall promote their establishment to become

active partners in the pursuit of local autonomy.

LGUs may enter into joint ventures and other

cooperative arrangements with Peoples and NonGovernmental Organizations to engage in the delivery of
basic services.

Section 32
City or Municipal Mayor

Section 35
-

exercise general supervision over component barangays

Linkages with People's and Non-Governmental Organizations

-

Section 33
Cooperative Undertakings among Local Government Units

LGUs may through appropriate ordinance group

themselves,

consolidate

or

coordinate

their efforts/services/resources for purposes commonly

beneficial to them.
-

Contribute fund upon approval by sanggunian after

public hearing

LGU, through local chief executive with concurrence of

Sanggunian, provide assistance financial or otherwise
to Peoples and Non-Governmental Organizations for
economic, socially-oriented, environmental or cultural
projects to be implemented within its territorial
jurisdiction.

Mandated Local Agencies

1. Local School Board
2. Local Health Board
3. Local Development Council
4. Local Peace and Order Council

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SECTION 36
Assistance to People's and Nongovernmental Organizations.
-

NGO work may be funded by LGUs funds

SECTION 37
Local Prequalification, Bids and Awards Committee (Local
PBAC).
-

PBAC may tap the local technical services committee,

that is created in section 38, to ensure that LGUs are not
shortchanged by unscrupulous dealers.

SECTION 38.
Local Technical Committee

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-Tokie