UP ASH Code (Approved)

Local Government - Notes
HISTORICAL BACKGROUND OF LOCAL

GOVERNMENTS IN THE PHILIPPINES
_______________________________________________
*notes from Tapales’ article*
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NATURE AND STATUS Private corporations are regulated by laws of general application
_______________________________________________ on the subject.
Partnerships and associations for private interest or purpose are
governed by the provisions of this Code concerning partnerships.
DEFINITIONS
Art. 46, CC. - Juridical persons may acquire and possess property
Local Governments - as per Alvarez v. Guingona (1996) of all kinds, as well as incur obligations and bring civil or criminal
actions, in conformity with the laws and regulations of their
• political subdivision of the State organisation.
• constituted by law
• possessed of substantial control over its own affairs Art. 47, CC. - Upon the dissolution of corporations, institutions
and other entities for public interest or purpose mentioned in No.
Autonomous 2 of Article 44, their property and other assets shall be disposed
of in pursuance of law or the charter creating them. If nothing has
• given more powers, authority, responsibilities and resources
been specified on this point, the property and other assets shall be
• once highly centralised power is decentralised, enabling
applied to similar purposes for the benefit of the region, province,
especially the peripheral LGUs to not only develop at their
city or municipality which during the existence of the institution
own pace and discretion, but also w/ their own assets and derived the principal benefits from the same.
resources
Municipal Corporation Proper
Municipal Corporation - as per Basco v. PH Amusement &
Gaming
• body politic and corporate constituted by the incorporation
of inhabitants for the purpose of local gov’t
• mere creatures of Congress • not ‘limited’ as a mere subdivision of the State
• Congress has the power to create and abolish such • general term w/c refers to incorporated cities, towns, or
corporations thru general legislative powers villages vested w/ power of local legislation
• its powers are as provided by its charter (no inherent right
to tax in this case) Local Government Power
• distinctive purpose + distinguishing feature of a municipal
LGU: interchangeable with Municipal Corporation corporation
• both are mere creatures of the State Twin Functions:

• cannot defeat national policies, as mere “intra sovereign • serve as instrumentality of the State re carrying out gov’t
subdivisions of a sovereign nation” functions
• only difference: respective histories (based on Tapales) • act as agency of the community in the admin of local affairs
*from BP 337 (1983) to RA 7160 (1991); a change in focus* Quasi-Municipal Corporation
NATURE & STATUS OF MUNICIPAL CORPORATIONS *another term for quasi-corporation*
KINDS OF MUNICIPAL CORPORATIONS

• public agency, created for the sole purpose of performing 1
public function; or
Juridical Persons, whether Private or Public; State and
• public entity created by law to deliver limited public services
Political Subdivisions
• has for most purposes the status and powers of municipal
corporations, but not that of municipal corporations proper
Art. 44, CC. - The following are juridical persons:
• ex: water services; school districts
(1) The State and its political subdivisions;
(2) Other corporations, institutions and entities for public
• public corporations created as agencies of the state for a
interest or purpose, created by law, their personality begins as narrow and limited purpose
soon as they have been constituted according to law; • not possessed of the powers and liabilities of self-governing
(3) Corporations, partnerships and associations for private corporations
interest or purpose to which the law grants a juridical
personality, separate and distinct from that of each Municipal Corp.Proper Quasi-Municipal Corp.
shareholder, partner or member.
public corporation SAME
Art. 45, CC. - Juridical persons mentioned in Nos. 1 and 2 of the
preceding article are governed by the laws creating or recognising has power of local gov’t agent of state for limited and
them. narrow purposes
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national government and as a corporate entity representing the

Municipal Corp.Proper Quasi-Municipal Corp.
inhabitants of its territory.
has powers and liabilities of vested w/ few of
self-government characteristics of corporate *as provided in Villas v. City of MNL (1911)*
existence, for the purpose of
civil administration As a Governmental Subdivision
called into existence either at sometimes involuntary

• instrumentality of State re carrying out gov’t functions
the direct solicitation of, by corporations, created by the
• for this purpose it exercises by delegation a part of state
the free consent of the persons sovereign legislative power of
sovereignty
composing them its own sovereign will w/o
solicitation, consent or
concurrent action of the As a Mere Legal Entity/Juristic Person
people who inherit them
• agent of its community re administration of local affairs,
wholly beyond the sphere of the public purposes for w/c its
Public Corporation
governmental powers are conferred
Tolentino Lidasan v. COMELEC (1967)

• such only as are founded by gov’t for public purposes, where Section 21 of Art. VI of the (then) Constitution contains dual
the whole interests belong also to the gov’t limitations upon legislative power. First, that Congress is to
refrain from conglomeration, under one statute, of heterogenous
Black, et al. subjects; and, second, that the title of the bill is to be couched in a
• created by gov’t for political purposes language sufficient to notify the legislators and the public and
• has both subordinate and local powers of legislation those concerned of the import of the single subject thereof.
• a category thereof is actually the QMC
Republic v. City of Davao (2002)
Section 15 of Republic Act 7160, otherwise known as the Local
Regents of University v. Williams
Government Code, defines a local government unit as a body
• those organised for political purposes w/ political powers
politic and corporate endowed with powers to be exercised by it in
exercised for purposes connected w/ the public good in the conformity with law. As such, it performs dual functions,
admin of civil gov’t governmental and proprietary. Governmental functions are those
• instrument of the gov’t, subject to the control of the that concern the health, safety and the advancement of the public
legislature and its members, officers of the gov’t, for the good or welfare as affecting the public generally. Proprietary
admin or discharge of public duties as in the case of cities functions are those that seek to obtain special corporate benefits
and towns or earn pecuniary profit and intended for private advantage and
benefit. When exercising governmental powers and performing
Non-Municipal Public Corporation governmental duties, an LGU is an agency of the national
government. When engaged in corporate activities, it acts as an
agent of the community in the administration of local affairs.
• created by the State as its own agency/instrumentality to
carry-out a certain public purpose, other than the local gov’t
City of Bacolod v. Phuture Visions (2018)
carried on in a designated portion of its territory by
The issuance of business licenses and permits by a municipality or
municipal corporations city is essentially regulatory in nature. The authority, which
devolved upon local government units to issue or grant such
Municipal Corporation Public Corporation licenses or permits, is essentially in the exercise of the police
power of the State within the contemplation of the general
formed/organised for the gov’t welfare clause of the Local Government Code.
of a portion of the State
Purposes - 2-fold:
all are public corporations not all are municipal
Governmental Private
DUAL NATURE
rep of the State, for the gov’t acts in a similar category as a
Dual Nature and Functions of Municipal Corporations of the territory and the business corporation,
inhabitants w/in the performing functions not
municipal limits strictly governmental or
Sec. 15, LGC. - Every local government unit created or
political
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
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Governmental Private Division and Merger. - Sec. 8.
exercises by delegation a part stands for the community in Complies with Same Reqs as Creation, provided:
of the sovereignty of the State the admin of local affairs, w/c • division shall not reduce income, population or land area;
is wholly beyond the sphere of • income classification of original LGU shall not fall below its
the public purposes for w/c current income classification prior to such division
the governmental powers are
conferred *income classification of an LGU shall be updated w/in 6 mos.
from the Code’s effectivity*
General Powers and Attributes
Abolition of LGUs. - Sec. 9.
*as found in secs. 6-24; check Codal*
When
Authority to Create LGUs - Sec. 6. • its income, population, or land area’s been irreversibly
reduced to < minimum standards prescribed for its creation
*LGU may be created, divided, merged, abolished, or its
boundaries substantially altered* Certification
• by national agencies in section 7
How: • either to Congress or to the concerned Sanggu
Law Ordinance
*shall specify the province, city, municipality; barangay with
enacted by Congress by Sannguniang Panlalawigan w/c the LGU sought to be abolished will be incorporated/
or Panglungsod merged*
for province, city, municipality, for barangay located w/in its What do not cause Dissolution:
or any other political territorial jurisdiction • non-user or surrender of charter
subdivision
• failure to elect municipal officer
• change of sovereignty
*subject to limitations and requirements prescribed by LGC* • change of name
Creation and Conversion. - Sec. 7. Plebiscite Requirement. - Sec. 10.
GR: based on verifiable indicators of viability and projected Requirement

capacity to provide services: • no creation, division, merger, abolition, or substantial
alteration of boundaries of LGUs shall take effect w/o
Income approval from majority of the votes cast in a plebiscite
• sufficient to provide for all essential government facilities
and special functions commensurate w/ population Conditions of Plebiscite
• based on acceptable standards • called for that purpose;
• in the political unit(s) directly affected;
Population • conducted by COMELEC;
• total number must be w/in territorial jurisdiction • w/in 120 days from its effectively;
• on date fixed by law/ordinance effecting such action
Land Area
• must be contiguous, unless (a) comprised of 2 or more Selection and Transfer of LG Sites, Offices & Facilities. - Sec.
islands, or (b) separated by LGU independent of the others 11.
• must be properly identified by metes and bounds, w/
technical descriptions Law/Ordinance creating/merging LGUs shall specific seat of gov’t,
• must be sufficient to provide for basic services and facilities from where governmental and corporate services shall be delivered
Compliance to Indicators - attested to by: Factors to select site:

• DOF; • geographical centrality;
• NSO; • accessibility;
• LMB; • availability of transportation and communication;
• DENR • drainage and sanitation;
• other relevant considerations
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When Conditions and Developments in LGU have significantly changed • for public hospitals, health centres and other health
subsequent to Establishment of Seat of Gov’t, the LGU Sanggu may facilities, change shall be made upon the recommendation of
transfer the same to a Site better suited to its needs the local health board concerned
• change of name of any LGU shall be effective only upon
How: ratification in a plebiscite conducted for the purpose in the
• public hearing; political unit directly affected
• vote of 2/3 members • in any change of name, the OP and rep of the legislative
district concerned, and Bureau of Posts, shall be notified
Conditions:
• no such transfer shall be made outside its territorial Beginning of Corporate Existence. - Sec. 14.
boundaries
• old site and its improvements may be disposed of by sale or *for new local LGUs*
lease or converted dos such other uses as he Sanggunian
may deem beneficial • upon election and qualification of its (a) chief executive and
(b) majority of the sanggu members;
LG Offices and Facilities shall not be transferred, relocated or converted • unless another time is fixed by the law/ordinance creating it
to other uses
Political and Corporate Nature of LGUs. - Sec. 15. (supra)
Unless:
• public hearings are first conducted; and General Welfare. - Sec. 16.
• w/ concurrence of majority of sanggunian members
Powers that each LGU may exercise:
Government Centers. - Sec. 12. • those expressly granted;
• those necessarily implied therefrom;
• provinces, cities and municipalities shall endeavour to • those necessary, appropriate, or incidental for its efficient
establish a gov’t centre where offices, agencies or branches and effective governance; and
of the national gov’t, LGUs, or government-owned or • those w/c are essential to the promotion of the gen. welfare
controlled corporations may, as far as practicable, be located
• in designating such a center, the LGU concerned shall take Responsibility w/in Territorial Jurisdiction - ensure +
into account the existing facilities of national and local support:
agencies and offices w/c may serve as the gov’t centre as • preservation and enrichment of culture
contemplated under this section • promote health and safety
• national gov’t, lGU or government-owned or controlled • enhance the right of the people to a balanced ecology
corporation concerned shall bear the expenses for the • encourage and support the development of appropriate and
construction of its buildings and facilities in the gov’t centre self-reliant scientific tech capabilities
• improve public morals
Naming of LGUs and Public Places, Streets and Structures. - • enhance economic prosperity and social justice
Sec. 13. • promote full employment among their residents
• maintain peace and order
*super long provision, better to just familiarise summary w/ • preserve comfort and convenience of their inhabitants
codal or C2017 reviewer*
Basic Services and Facilities - Sec. 17.
• Sanggu Panlalawigan may change the name of a component
city, if done upon the recommendation of the Sanggu *way too long to type so just familiarise yourself w/ codal*
concerned
• Sanggu Panlungsod changing the name of barangays can Different sets for:
only do so upon recommendation of the barangay concerned • barangay;
• cannot be named after a living person, nor may change of • municipality;
name be made unless for a justifiable reason; in any case, • province; and
not oftener than once every 10 years • city
• name of a LGU or public place, sweet or structure w/
historical, cultural or ethnic significance shall not be Thrusts of LGU
changed, unless by unanimous vote of the sanggu concerned • discharge the functions and responsibilities of central
and in consultation w/ PHC agencies and offices that are now devolved to them
• change of public school’s name shall be made only upon the • strive for reliance
recommendation of the local school board concerned
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• continue exercising the powers and discharging the duties sharing the same w/ the inhabitants by way of direct
that are currently vested upon them benefits;
• exercise such other owners and discharge such other • to acquire, develop, lease, encumber, alienate or otherwise
functions and responsibilities as are necessary, appropriate, dispose of real or personal property held by them in their
or incidental to efficient and effective provision of the basic proprietary capacity and to apply their resources and assets
services and facilities enumerated for productive, developmental, or welfare purposes, in the
exercise or furtherance of their governmental or proprietary
*list is not exclusive* powers and functions and thereby ensure their development
into self-reliant communities and active participants in the
Barangay attainment of national goals
• power to admin the katarungang pambarangay Eminent Domain. - Sec. 19.
Municipality • thru its chief executive and acting pursuant to an ordinance

• for public use, purpose or welfare for the benefit of the poor
• agriculture and aquaculture and the landless
• health services • upon payment of just compensation
• social services • consistent w/ Constitution and pertinent laws
• other services, including info dissemination on investment
needs and job placements Other Conditions
• power may not be exercised, unless a valid and definite offer
City has been previously made to the owner, and such offer was
not accepted;
• of all the LGUs, the city has been granted the most powers • LGU may immediately take possession of the property upon
• LGC devolved to it ALL the services and facilities w/c the the filing of the expropriation proceedings and upon making
barangay, municipality, province, had been empowered to a deposit w/ the proper court of at least 15% of FMV of
deliver property based on current tax declaration;
• exc: power to admin the katarungang barangay • amount to be paid for the expropriated property shall be
• additional express powers: (a) adequate communication and determined by the proper court, based on the FMV at the
transportation services; and (b) support for education, time of the taking of the property
police and fire services and facilities
Reclassification of Lands - Sec. 20.
Province
City/Municipality - may, thru ordinance passed by sanggu,
Varied Services, such as: after conducting public hearings for the purpose, authorise
• industrial development services; the reclassification of agricultural lands and provide for the
• health care and tertiary healthcare; manner of their utilisation or disposition in the ff. cases:
• computerising tax information and collection services; • when land ceases to be economically feasible and sound for
• intra-municipal telecomm services agricultural purposes as determined by the Dept. of
Agriculture;
Power to Generate and Apply Resources - Sec. 18. • where the land shall have substantially greater economic
value for residential, commercial, or industrial purposes, as
LGUs have power and authority to: determined by the sanggu concerned;
• establish an org that shall be responsible for the efficient • such reclassification shall be limited to the ff. percentage of
and effective implementation of their development plans, the total agricultural land area at the time of the passage of
program objectives and priorities; the ordinance:
• to create their own sources of revenues and to levy taxes, • 15% for Highly Urbanised and Independent Component
fees, and charges w/c shall accrue exclusively for their use Cities;
and disposition and w/c shall be retained by them; • 10% for component cities and 1st to 3rd class
• to have a just share in national taxes w/c shall be municipalities; and
automatically and directly released to them w/o need of any • 5% for 4th to 6th class municipalities
further action; • provided further that agricultural lands distributed to
• to have an equitable share in the proceeds from the agrarian reform beneficiaries pursuant to RA 6657 shall
utilisation and development of the national wealth and not be affected by the said reclassification and the
resources w/in respective territorial jurisdictions including conversion of such lands into other purposes shall be
governed by sec. 65 (of said Act)
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President - may authorise a city/municipality to reclassify foodstuffs, commodities, or articles of commerce may be sold
lands in excess of the limits set in previous paragraph: and dispensed to the general public*
• when public interest so requires; and
• upon recommendation of the National Economic and Corporate Powers - Sec. 22.
Development Authority
• to have continuous succession in its corporate name;
LGUs - shall, in conformity w/ existing laws, continue to • to sue and be sued;
prepare their respective comprehensive land use plans enacted • to have and use a corporate seal;
thru zoning ordinances w/c shall be the: • to acquire and convey real/personal property;
• primary and dominant bases for the future use of land • to enter into contracts; and
resources; • to exercise such other powers as are granted to
• provided, that the req for food production, human corporations, subject to the limitations provided in this
settlements, and industrial expansion shall be taken into Code and other laws
consideration in the prep of such plans
LGUs - may continue using, modify, or change their existing
Where Approval by National Agency is required for corporate seals, provided:
Reclassification, such shall: • newly established LGUs or those w/o corporate seals may
• not be unreasonably withheld; create their own corporate seals w/c shall be registered w/
• failure to act on a proper and complete application for the DILG;
reclassification w/in 3 months from receipt of the same shall • any change of corporate seal shall also be registered as
be deemed as approval thereof provided hereon
*provision is not to convert land for any purpose contrary to How to Enter into Contracts
the CARL, but merely to reclassify land* • by local chief executive in LGU’s behalf
• w/ prior authorisation from concerned sanggu; exceptions:
Closure and Opening of Roads - Sec. 21. (a) provided otherwise in Code; (b) legible copy of such
contract shall be posted at a conspicuous place in the
• pursuant to an ordinance provincial capital or the city, municipal or barangay hall
• may be permanent or temporary closure/opening
• upon any local road, alley, park or square falling w/in its Enjoyment of Full Autonomy in Exercise of:
jurisdiction • proprietary functions;
• if permanent closure, such ordinance must be approved by • management of economic enterprises
at least 2/3 of all members of sanggu, and when necessary,
an adequate substitute for the public facility that is subject *subject to the limitations provided in this Code and other
to closure is provided applicable laws*
• making provisions for maintenance of public safety is
needed for permanent closure Other Notes:
• no hard and fast rule for purposes of determining the true
Temp. Closure of National/Local Road, Alley, Park, or Square nature of an undertaking or function of an LGU, w/ the
• actual emergency surrounding circumstances to be considered
• fiesta celebrations • basic element, however beneficial to the public undertaking
• public rallies may be, is that it is governmental in essence; otherwise, it is
• agricultural/industrial fairs proprietary
• undertaking of public works and highways, telecomm and
waterworks projects Authority to Negotiate and Secure Grants - Sec. 23.
*no such closure for athletic, cultural, or civic activities not Local Chief Execs may negotiate and secure such grants/
officially sponsored. recognised, or approved by the LGU donations in kind:
concerned* • for the support of the basic services or facilities in sec. 17;
• from local and foreign assistance agencies w/o necessity of
*any city, municipality or brgy. may, by a duly enacted securing clearance or approval therefor from any
ordinance, temporarily close and regulate the use of any local department, agency, or office of the National Gov’t, or from
street, road, thoroughfare, or any other public place where any higher LGU (upon authority of the Sanggu);
shopping malls, Sunday, flea or night markets, or shopping • provided, that projects financed by such grants/assistance
areas may be established and where goods, merchandise, w/ national security implications shall be approved by the
national agency concerned
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*when such national agency fails to act on the request for

approval w/in 30 days from receipt thereof, same shall be
deemed approved*
When Approved
• local chief exec shall, w/in 30 days upon signing of such
grant agreement or deed of donation, report the nature,
amount, and terms of such assistance to both Houses of
Congress and the President
Liability for Damages - Sec. 24.
• LGUs and their officials are not exempt from liability for the
death or injury to persons or damage to property
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GENERAL PRINCIPLES AND POLICIES List:

——————————————————————— • Highly Urbanised;
• Independent Component; and
Art. X, sec. 1. - The territorial and political subdivisions of the • Component
Republic of the Philippines are the provinces, cities,
municipalities, and barangays. There shall be autonomous regions Sec. 1, LGC. - This Act shall be known and cited as the “Local
in Muslim Mindanao and the Cordilleras as hereinafter provided. Government Code of 1991.”
LGUs Sec. 2, LGC. -

(a) It is hereby declared the policy of the State that the territorial
and political subdivisions of the State shall enjoy genuine and
• divisions of the RP
meaningful local autonomy to enable them to attain their
• intra-sovereign subdivision of a sovereign nation fullest development as self-reliant communities and make
• not intended to be an imperium in imperio them more effective partners in the attainment of national
• autonomous in a sense, as it is given more powers, goals. Toward this end, the State shall provide for a more
authority, responsibilities and resources responsive and accountable local government structure
instituted through a system of decentralization whereby local
Autonomous Regions government units shall be given more powers, authority,
responsibilities, and resources. The process of decentralization
• one for Muslim Mindanao (won in plebiscite) shall proceed from the National Government to the local
• one for Cordilleras (but the ‘A’ is Administrative) government units.
(b) It is also the policy of the State to ensure the accountability of
local government units through the institution of effective
Art. X, sec. 3. - The Congress shall enact a local government code
mechanisms of recall, initiative and referendum.
which shall provide for a more responsive and accountable local
government structure instituted through a system of (c) It is likewise the policy of the State to require all national
agencies and offices to conduct periodic consultations with
decentralisation with effective mechanisms of recall, initiative,
appropriate local government units, nongovernmental and
and referendum, allocate among the different local government
people’s organizations, and other concerned sectors of the
units their powers, responsibilities, and resources, and provide for
community before any project or program is implemented in
the qualifications, election, appointment and removal, term,
their respective jurisdictions.
salaries, powers and functions and duties of local officials and all
other matters relating to the organisation and operation of local
Sec. 3, LGC. - The formulation and implementation of policies
units.
and measures on local autonomy shall be guided by the following
operative principles:
Art. X, sec. 11. - The Congress may, by law, create special
metropolitan political subdivisions, subject to a plebiscite as set (a) there shall be an effective allocation among the different local
government units of their respective powers, functions,
forth in section 10 hereof. The component cities and
responsibilities, and resources;
municipalities shall retain their basic autonomy and shall be
entitled to their own local executive and legislative assemblies. (b) there shall be established in every local government unit an
accountable, efficient, and dynamic organizational structure
The jurisdiction of the metropolitan authority that will thereby be
and operating mechanism that will meet the priority needs
created shall be limited to basic services requiring coordination.
and service requirements of its communities;
(c) subject to civil service law, rules and regulations, local officials
• NOT just another territorial political subdivision and employees paid wholly or mainly from local funds shall be
• jurisdiction is limited to basic services requiring appointed or removed, according to merit and fitness, by the
coordination appropriate appointing authority;
(d) the vesting of duty, responsibility, and accountability in local
Art. X, sec. 12. - Cities that are highly urbanised, as determined government units shall be accompanied with provision for
by law, and component cities whose charters prohibit their voters reasonably adequate resources to discharge their powers and
from voting for provincial elective officials, shall be independent effectively carry out their functions; hence, they shall have the
of the province. The voters of component cities within a province, power to create and broaden their own sources of revenue and
whose charters contain no such prohibition, shall not be deprived the right to a just share in national taxes and an equitable
of their right to vote for elective provincial officials. share in the proceeds of the utilization and development of the
national wealth within their respective areas;
Classification of Cities (e) provinces with respect to component cities and municipalities,
and cities and municipalities with respect to component
• based on their regular income barangays, shall ensure that the acts of their component units
• indicative of its capability to develop as relatively are within the scope of their prescribed powers and functions;
independent social, economic and political unit (f) local government units may group themselves, consolidate or
coordinate their efforts, services, and resources for purposes
commonly beneficial to them;
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(g) the capabilities of local government units, especially the be had to the customs and traditions in the place where the
municipalities and barangays, shall be enhanced by providing controversies take place.
them with opportunities to participate actively in the
implementation of national programs and projects; LOCAL AUTONOMY
(h) there shall be a continuing mechanism to enhance local
autonomy not only by legislative enabling acts but also by Art. II, sec. 25. - The State shall ensure the autonomy of local
administrative and organizational reforms; governments.
(i) local government units shall share with the national
government the responsibility in the management and Art. X, sec. 2. - The territorial and political subdivisions shall
maintenance of ecological balance within their territorial enjoy local autonomy.
jurisdiction, subject to the provisions of this Code and
national policies; Art. X, sec. 4. - The president of the Philippines shall exercise
(j) effective mechanisms for ensuring the accountability of local general supervision over local governments. Provinces with
government units to their respective constituents shall be respect to component cities and municipalities, and cities and
strengthened in order to upgrade continually the quality of municipalities with respect to component barangays, shall ensure
local leadership; that the acts of their component units are within the scope of
(k) the realization of local autonomy shall be facilitated through their prescribed powers and functions.
improved coordination of national government policies and
programs and extension of adequate technical and material Power of Supervision =/= Control
assistance to less developed and deserving local government • means he exercises gen. supervision but only to ensure that
units; local affairs are administered according to law
(l) the participation of the private sector in local governance,
particularly in the delivery of basic services, shall be
encouraged to ensure the viability of local autonomy as an Supervision Control
alternative strategy for sustainable development; and
(m)the national government shall ensure that decentralization overseeing or the authority of power to amend, correct, or
contributes to the continuing improvement of the an officer to see that substitute subordinate
performance of local government units and the quality of subordinate officers perform officer’s judgment(s)
community life. their duties
Sec. 4, LGC. - This Code shall apply to all provinces, cities, Art. X, sec. 11. - supra.
municipalities, barangays, and other political subdivisions as may
be created by law, and, to the extent herein provided, to officials, Art. X, sec. 12. - supra.
offices, or agencies of the National Government.
San Juan v. CSC (1991)
Sec. 5, LGC. - In the interpretation of the provisions of this Where a law is capable of 2 interpretations, one in favour of
Code, the following rules shall apply: centralised power and the other beneficial to local autonomy, the
(a) any provision on a power of a local government unit shall be scales must be weighed in favour of the latter.
liberally interpreted in its favor, and in case of doubt, any
question thereon shall be resolved in favor of devolution of Pimentel v. Aguirre (2000)
powers and of the lower local government unit. Any fair and Local autonomy signified a more responsive and accountable local
reasonable doubt as to the existence of the power shall be government structure instituted thru a system of decentralisation;
interpreted in favor of the local government unit concerned; decentralisation just means the devolution of national
(b) in case of doubt, any tax ordinance or revenue measure shall administration (not power) to local governments. Local officials
be construed strictly against the local government unit remain accountable to the central government as the law may
enacting it, and liberally in favor of the taxpayer. Any tax provide. As per the PH concept of local autonomy, the national
exemption, incentive or relief granted by any local government government has not completely relinquished all its powers over
unit pursuant to the provisions of this Code shall be construed local governments, including autonomous regions; only admin
strictly against the person claiming it; powers over local affairs are delegated to political subdivisions.
(c) the general welfare provisions in this Code shall be liberally The purpose of the delegation is to make governance more
interpreted to give more powers to local government units in directly responsive and effective at the local levels.
accelerating economic development and upgrading the quality
of life for the people in the community; Ganzon v. CA (1990)
(d) rights and obligations existing on the date of effectivity of this The change in constitutional language - with respect to the
Code and arising out of contracts or any other source of supervision clause - was meant to only deny legislative control
prestation involving a local government unit shall be governed over local governments, and did not exempt the latter from
by the original terms and conditions of said contracts or the legislative regulations, provided that regulation is consistent with
law in force at the time such rights were vested; and the fundamental premise of autonomy. Since local governments
(e) in the resolution of controversies arising under this Code remain accountable to the national authority, the latter may, by
where no legal provision or jurisprudence applies, resort may law, and in the manner set forth therein, impose disciplinary
action against local officials.
Page 10
CAB v. COA (1990) • also relieves central gov’t of the burden of managing local
EO 220 does not create the autonomous region as contemplated affairs and enables it to concentrate on national concerns
in the Constitution, but merely provides for transitory measures. • President exercises “gen. supervision” over them but only to
It only created a region, covering a specified area, for admin “ensure that local affairs are administered according to law,”
purposes w/ the objective of coordinating the planning and
as he has no control over their acts in the sense that he can
implementation of programs and services. The constitutional
sub their judgments w/ his own
guarantee of local autonomy refers to the admin autonomy of
LGUs or the decentralisation of government authority. The
creation of autonomous regions contemplates the grant of Of Power
political autonomy, and not just admin autonomy to these • abdication of political power in favour of LGUs declared to
regions. The CAR is a mere transitory coordinating agency that be autonomous
would prepare the sage for political autonomy for the Cordilleras. • the autonomous gov’t in that case is free to chart its own
“destiny” and “shape its future” w/ minimum intervention
SEMA v. COMELEC (2008) from central authorities
Only an act of Congress can create a province, as per the Code. • amounts to “self-immolation,” since in that event, the
The delegation of Congress to the ARMM to create provinces and autonomous gov’t becomes accountable not to the central
cities is unconstitutional for being a non-delegable power.
authorities but to its constituency
DECENTRALIZATION
Autonomy
Art. X, sec. 3. - The Congress shall enact a local government code

which shall provide for a more responsive and accountable local In 2 Senses:
government with effective mechanisms of recall, initiative, and • an autonomous gov’t that enjoys autonomy of the latter
referendum, allocate among, the different local government units category is subject alone to the decree of the organic act
their powers, responsibilities, and resources, and provide for the creating it, and accepted principles on the effects ad limits of
qualifications, election, appointment and removal, term, salaries, autonomy
powers and functions and duties of local officials and all other • one that enjoys autonomy of the former category is under
matters relating to the organisation and operation of local units. the supervision of the national government acting thru the
President
Art. X, sec. 14. - The President shall provide for regional
development councils or other similar bodies composed of local
government officials, regional heads of departments and other
government offices, and representatives from non-governmental
organisations within the region for purposes of administrative
decentralisation to strengthen the autonomy of the units therein
and to accelerate the economic and social growth and
development of the units in the region.
LGUs’ relationship w/ Regional Development Councils

• in matters w/c concern their own development
Limbona v. Mangellin (1989)

PD 1619, creating the autonomous gov’t of Mindanao,
persuades us that they were never meant to exercise
autonomy in the second sense. That “the President shall have
the power of general supervision and control over
Autonomous Regions” is provided is indicative of this. The
Sanggu Pampook is made to discharge chiefly admin services.
Decentralisation
Of Administration
• central gov ’t delegates admin powers to political
subdivisions to broaden the base of gov’t power
• in the process it makes local governments “more responsive
and accountable,” and “ensure their fullest development as
self-reliant communities and make them more effective
partners in the pursuit of national development and social
progress”
Page 11
CREATION OF MUNICIPAL CORPORATIONS Art. X, sec. 15. - There shall be created autonomous regions in
——————————————————————— Muslim Mindanao and in the Cordilleras consisting of provinces,
cities, municipalities, and geographical areas sharing common and
distinctive historical and cultural heritage, economic and social
NATURE AND POWERS TO CREATE MUNICIPAL
structures, and other relevant characteristics within the
CORPORATIONS framework of this Constitution and the national sovereignty as
well as the territorial integrity of the Republic of the Philippines.
Pelaez v. Auditor General (1965)
Under the Barrio Charter Act, barrios may not be created or their Art. X, sec. 18. - The Congress shall enact an organic act for each
boundaries altered, or names changed, except by an act of autonomous region with the assistance and participation of the
Congress, or he corresponding provincial board upon petition of a regional consultative commission composed of representatives
majority of voters and recommendation by municipal council. If appointed by the President from a list of nominees form multi-
barrios may not be created by President, then there is more reason sectoral bodies. The organic act shall define the basic structure of
to deny him of the bigger power to create municipalities, which government for the region consisting of the executive department
are groups of several barrios. Whereas the power to fix a and legislative assembly, both of which shall be elective and
boundary, in order to avoid or settle conflicts of jurisdiction representative of the constituent political units. The organic act
between adjoining municipalities, may partake of an admin nature shall likewise provide for special courts with personal, family, and
- involving, as it does, the adoption of means and ways to carry property law jurisdiction consistent with the provisions of
into effect the law creating said municipalities - the authority to Constitution and national laws.
create municipal corporations is essentially legislative in nature. The creation of the autonomous region shall be effective when
The Constitution merely confers upon the President the power of approved by majority of the votes cast by the constituent units in
supervision over LGUs, as distinguished form the presidential a plebiscite called for the purpose, provided that only provinces,
grant of power of control over executive departments, bureaus cities, and geographic areas voting favourably in such plebiscite
and offices. If sec. 68 were valid, he could in effect remove any of shall be included in the autonomous region.
its officials by creating a new municipality and including therein
the barrio where the official resides, for his office would become Art. X, sec. 19. - The first Congress elected under this
vacant. Constitution shall, within eighteen months from the time of
organisation of both Houses, pass the organic acts for the
Municipality of Kapalong v. Moya (1988) autonomous regions in Muslim Mindanao and the Cordilleras.
As held, the President has no power to create municipalities.
Thus, the Municipality of Sto. Tomas, as a creation of the Alvarez v. Guingona (supra)
President, had no legal personality to file a suit, and the motion to It is true that for a municipality to be converted into a component
dismiss is granted. city, it must, among others, have an average annual income of at
least Twenty Million Pesos for the last two consecutive years
CREATION OF MUNICIPAL CORPORATIONS based on 1991 constant prices. Such income must be duly
certified by the Department of Finance.
Constitutional Provisions Although a bill of local application like HB No. 8817 should, by
constitutional prescription,16 originate exclusively in the House
Art. X, sec. 1. - The territorial and political subdivisions of the of Representatives, the claim of petitioners that Republic Act No.
Republic of the Philippines are the provinces, cities, 7720 did not originate exclusively in the House of Representatives
municipalities, and barangays. There shall be autonomous regions because a bill of the same import, SB No. 1243, was passed in the
in Muslim Mindanao and the Cordilleras as hereinafter provided. Senate, is untenable because it cannot be denied that HB No.
8817 was filed in the House of Representatives first before SB No.
Art. X, sec. 10. - No province, city, municipality, or barangay may 1243 was filed in the Senate. Petitioners themselves cannot
be created, divided, merged, abolished, or its boundary disavow their own admission that HB No. 8817 was filed on April
substantially altered, except in accordance with the criteria 18, 1993 while SB No. 1243 was filed on May 19, 1993. The filing
established in the Local Government Code and subject to approval of HB No. 8817 was thus precursive not only of the said Act in
by a majority of the votes cast in a plebiscite in the political units question but also of SB No. 1243. Thus, HB No. 8817, was the bill
directly affected. that initiated the legislative process that culminated in the
enactment of Republic Act No. 7720. No violation of Section 24,
Art. X, sec. 11. - The Congress may, by law, create special Article VI, of the 1987 Constitution is perceptible under the
metropolitan political subdivisions, subject to a plebiscite as set circumstances attending the instant controversy.
forth in Section 10 thereof. The component cities and
municipalities shall retain their basic autonomy and shall be Navarro v. Ermita (April 2010)
entitled to their own local executive and legislative assemblies. The Constitution clearly mandates that the creation of local
The jurisdiction of the metropolitan authority that will thereby be government units must follow the criteria established in the Local
created shall be limited to basic services requiring coordination. Government Code. Any derogation of or deviation from the
criteria prescribed in the Local Government Code violates Sec. 10,
Art. X.
Page 12
Navarro v. Ermita (May 2010) Further Notes:

As the law-making branch of the government, indeed, it was the • for the creation of brgys by the Sanggu Panlalawigan, the
Legislature that imposed the criteria for the creation of a province recommendation of the Sanggu Bayan concerned shall be
as contained in Section 461 of the Local Government Code. No necessary creation of new LGUs shall not reduce the
law has yet been passed amending Section 461 of the Local
population of the orig LGUs to < minimum req
Government Code, so only the criteria stated therein are the bases
prescribed in the LGC
for the creation of a province. The Constitution clearly mandates
that the criteria in the Local Government Code must be followed • territorial jurisdiction of a newly-created LGU shall be
in the creation of a province; hence, any derogation of or deviation properly identified by metes and bounds
from the criteria prescribed in the Local Government Code • average annual income shall include the income accruing
violates Section 10, Article X of the Constitution. to gen. fund of the LGU concerned, exclusive of special
funds, transfers and non-recurring income
Navarro v. Ermita (2011)
It must be borne in mind that the central policy considerations in Statutory Provisions
the creation of local government units are economic viability,
efficient administration, and capability to deliver basic services to Sec. 6, LGC. - A local government unit may be created, divided,
their constituents. The criteria prescribed by the LGC, i.e., merged, abolished, or its boundaries substantially altered either
income, population and land area, are all designed to accomplish by law enacted by Congress in the case of a province, city,
these results. In this light, Congress, in its collective wisdom, has municipality, or any other political subdivision, or by ordinance
debated on the relative weight of each of these three criteria, passed by the sangguniang panlalawigan or sangguniang
placing emphasis on which of them should enjoy preferential panlungsod concerned in the case of a barangay located within its
consideration. Without doubt, the primordial criterion in the territorial jurisdiction, subject to such limitations and
creation of local government units, particularly of a province, is requirements prescribed in the Code.
economic viability. This is the clear intent of the framers of the
LGC. Sec. 7, LGC. - As a general rule, the creation of a local
Consistent with the declared policy to provide local government government unit or its conversion from one level to another level
units genuine and meaningful local autonomy, contiguity and shall be based on verifiable indicators of viability and projected
minimum land area requirements for prospective local capacity to provide services, to wit:
government units should be liberally construed in order to achieve (a) Income. - It must be sufficient, based on acceptable standards,
the desired results. The strict interpretation adopted by the to provide for all essential government facilities and services
February 10, 2010 Decision could prove to be counter-productive, and special functions commensurate with the size of its
if not outright absurd, awkward, and impractical. population, as expected of the local government unit
concerned;
SEMA v. COMELEC (supra) (b) Population. - It shall be determined as the total number of
As mentioned, only an act of Congress can create a province, as inhabitants within the territorial jurisdiction of the local
per the LGC; the delegation of Congress to the ARMM to create government unit concerned; and
provinces and cities is unconstitutional for being a non-delegable (c) Land Area. - It must be contiguous, unless it comprises two or
power. more islands or is separated by a local government unit
independent of the others; properly identified by metes and
*Requisites for the Creation of LGUs* bounds with technical descriptions; and sufficient to provide
for such basic services and facilities to meet the requirement
Barangay Municipality City Province
of its populace.
Population Compliance with the foregoing indicators shall be attested to by
not < 2k not < 25k not < 150k not < 250k
inhabitants inhabitants inhabitants inhabitants the Department of Finance (DOF), the National Statistics Office
(5k for (NSO), and the Lands Management Bureau (LMB) of the
cities and Department of Environmental and Natural Resources (DENR).
muns. w/in
MM & Sec. 385, LGC. - A barangay may be created, divided, merged,
other abolished, or its boundary substantially altered, by law or by an
metropoli ordinance of the sangguniang panlalawigan or panlungsod, subject
subdivs or
to approval by a majority of the votes cast in a plebiscite to be
HUCs
conducted by the COMELEC in the local government unit or units
Land at least 50 at least 100 at least 2k directly affected within such period of time as may be determined
Area sq. km sq. km sq. km by the the law or ordinance creating said barangay. In the case of
the creation of barangays by the sangguniang panlalawigan, the
Annual at least at least at least recommendation of the sangguniang bayan concerned shall be
Income P2.5M P100M P20M necessary.
Page 13
Sec. 441, LGC. - A municipality may be created, divided, merged, (b) The territorial jurisdiction of a newly created city shall be
abolished, or its boundary substantially altered only by an Act of properly identified by metes and bounds. The requirement on
Congress and subject to the approval by a majority of the votes land area shall not apply where the city proposed to be created
cast in a plebiscite to be conducted by the COMELEC in the local is composed of 1 or more islands. The territory need not be
government unit or units directly affected. Except as may contiguous if it comprises 2 or more islands.
otherwise be provided in the said Act, the plebiscite shall be held (c) The average annual income shall include the income accruing
within one hundred twenty (120) days from the date of its to the general fund, exclusive of special funds, transfers, and
effectivity. non-recurring income.
Sec. 442, LGC. - Sec. 460, LGC. - A province may be created, divided, merged,
(a) A municipality may be created if it has an average annual abolished, or its boundary substantially altered, only by an Act of
income, as certified by the provincial treasurer, of at least Two Congress and subject to approval by a majority of the votes cast in
million five hundred thousand pesos (P=2,500,000.00) for a plebiscite to be conducted by the COMELEC in the local
the last two (2) consecutive years based on the 1991 constant government unit or units directly affected. The plebiscite shall be
prices; a population of at least twenty-five thousand (25,000) held within 120 days from the date of effectivity of said Act,
inhabitants as certified by the National Statistics Office; and a unless otherwise provided therein.
contiguous territory of at least fifty (50) square kilometers as
certified by the Lands Management Bureau: Provided, That Sec. 461, LGC. -
the creation thereof shall not reduce the land area, population (a) A province may be created if it has an average annual income,
or income of the original municipality or municipalities at the as certified by the Department of Finance, of not less than
time of said creation to less than the minimum requirements P20M, based on 1991 constant prices and either of the
prescribed herein. following requisites: (i) a contiguous territory of at least 2000
(b) The territorial jurisdiction of a newly-created municipality square kilometers, as certified by the Land Management
shall be properly identified by metes and bounds. The Bureau; or (ii) a population of not less than 250,000
requirement on land area shall not apply where the inhabitants by the National Statistics Office. Provided, That the
municipality proposed to be created is composed of one (1) or creation thereof shall not reduce the land area, population,
more islands. The territory need not be contiguous if it and income of the original unit or units at the time of said
comprises two (2) or more islands. creation to less than the minimum requirements prescribed
(c) The average annual income shall include the income accruing therein.
to the general fund of the municipality concerned, exclusive of (b) The territory need not be contiguous if it comprises 2 or more
special funds, transfers and non-recurring income. islands or is separated by a chartered city or cities which do
(d) Municipalities existing as of the date of the effectivity of this not contribute to the income of the province.
Code shall continue to exist and operate as such. Existing (c) The average annual income shall include the income accruing
municipal districts organized pursuant to presidential to the general fund, exclusive of special funds, trust funds,
issuances or executive orders and which have their respective transfers, and non-recurring income.
set of elective municipal officials holding office at the time of
the effectivity of this Code shall henceforth be considered as Summary:
regular municipalities.
LGU may be created, divided, merged, abolished, or its
Sec. 449, LGC. - A city may be created, divided, merged,
boundaries substantially altered:
abolished, or its boundary substantially altered, only by an Act of
Congress, and subject to approval by a majority of the votes cast
• province, city, municipality, or any other political
in a plebiscite to be conducted by the COMELEC in the local subdivision: by law enacted by Congress
government unit or units directly affected. Except as may be • barangay: by law enacted by Congress or by ordinance
provided in such Act, the plebiscite shall be held within one passed by Sanggu Panlalawigan/Panlungsod, located w/in
hundred twenty (120) days from the date of its effectivity. territorial jurisdiction
• IN ALL CASES, subject to approval by a majority of votes
Sec. 450, LGC. - cast in a plebiscite to be conducted by COMELEC in LGUs
(a) A municipality or a cluster of barangays may be converted into directly affected
a component city if it has a locally generated average annual
income, as certified by the Department of Finance, of at least Verifiable Indicators of Viability and Projected Capacity to
One hundred million pesos (P100M) for the last two (2)
provide services:
consecutive years based on 2000 constant prices, and if it has
either of the following requisites: (i) a contiguous territory of
• income - sufficient to provide for all essential gov’t facilities
at least 100 square kilometers, as certified by the Land and services and special f(x)ns commensurate w/ size of its
Management Bureau; or (ii) a population of not less than population, as expected of the LGU concerned;
150,000 inhabitants, as certified by the National Statistics • population - total number of inhabitants w/in territorial
Office. The creation thereof shall not reduce the land area, jurisdiction of LGU concerned; and
population and income of the original unit or units at the time • land area - contiguous (unless comprises 2 or more lands or
of said creation to less than the minimum requirements is separated by an independent LGU), properly identified by
prescribed therein. metes and bounds w/ technical descriptions, and sufficient
Page 14
to provide for basic services and facilities to meet the reqs of • Bills do not violate the equal protection clause since there
its populace was a valid classification as to the municipalities w/ pending
Cityhood Bills against those without
Breakdown of “League of Cities v. COMELEC* • As the P100M amount was arbitrarily made, there is no
reason to prevent these cities pending bills from being
2008 - Cityhood bills are unconstitutional enacted into law, being as the purpose of preventing the
• applying the P100M income req in RA 9009 is a prospective “mad rush” was not yet enacted into law when the Bills
application, as the law took effect in 2001 while the bills were introduced in Congress
became law more than 5 years later
• the Constitution requires that Congress shall prescribe all April 2011 - not unconstitutional
the criteria for the creation of a city in the LGC, and not in • newly created cities were intend by Congress to be
any other law, including the Cityhood Laws exempted from req of P100M income as per RA 9009, w/c
• Cityhood Laws violate Art. X, sec. 6, as they prevent a fair amended the LGC
and just distribution of the national taxes to the LGUs
• criteria prescribed in sec. 450 of the LGC, as amended by Cawaling v. COMELEC (2001)
RA 9009, for converting a municipality into a city, are clear, Petitioner’s constricted reading of Section 450(a) of the Code is
plain and unambiguous, needing no resort to any statutory erroneous. The phrase “A municipality or a cluster of barangays
may be converted into a component city” is not a criterion but
construction
simply one of the modes by which a city may be created. Section
• intent of 11th Congress’ members to exert certain
10, Article X of the Constitution, quoted earlier and which
municipalities from the coverage of RA 9009 remained an
petitioner cited in support of his posture, allows the merger of
intent, and was never written into sec. 450 of the LGC local government units to create a province, city, municipality or
• deliberations of the 11th or 12th Congress on unapproved barangay in accordance with the criteria established by the Code.
bills or resolutions are not extrinsic aids in interpreting a Quite plainly, the last sentence of Section 10 mandates that the
law passed in the 13th plebiscite shall be conducted within 120 days from the date of the
• even if the exemption in the Cityhood Laws were written in effectivity of the law, not from its approval. While the same
sec. 450, the exemption would still be unconstitutional for provision allows a law or ordinance to fix “another date” for
violation of the equal protection clause conducting a plebiscite, still such date must be reckoned from the
date of the effectivity of the law.
2009 - laws are not unconstitutional
Samson v. Aguirre (1999)
• from the Drilon-Pimentel exchange during the deliberations,
The representative from the Bureau of Local Government Finance
Congress did not intend to give RA 9009 retroactive effect
estimated the combined average annual income of the 13
• operative fact finds application barangays for the years 1995 and 1996 to be around
• existence of the cities consequent to the approval of the P26,952,128.26. Under the Local Government Code, a proposed
creating (but challenged) Cityhood Laws in the plebiscites city must have an average annual income of only at least
held in the affected LGUs is now an operative fact P20,000,000.00 for the immediately preceding two years. The
• new cities appear to have been organised and are representative from the NSO estimated the population in the
functioning accordingly, w/ new sets of officials and barangays that would comprise the proposed City of Novaliches to
employees be around 347,310. This figure is more than the 150,000 required
by the Implementing Rules. There is no need to consider the land
area, given these figures, since under the Local Government Code,
2010 - unconstitutional
the proposed city must comply with requirements as regards
• Constitution mandates that LGUs shall be created by
income and population or land area. Other than the income
Congress in accordance w/ the criteria provided in the LGC
requirement, the proposed city must have the requisite number of
• exemptions granted to the 16 municipalities are contained inhabitants or land area. Compliance with either requirement, in
in separate laws and not in the LGC addition to income, is sufficient. Judicial notice may also be taken
• RA 9009 meanwhile, w/c increased the income threshold to that Novaliches is now highly urbanized.
P100M, amended the LGC, making it a part of the latter A reading of R.A. No. 8535 will readily show that it does not
• hence, upon RA 9009’s taking effect, all municipalities had provide for a seat of government. However, this omission, to our
to follow this req to be able to convert into a component city mind, is not as fatal to the validity of R.A. No. 8535 as petitioner
makes it to be. We agree with respondents that under Section 12
Feb 2011 - not unconstitutional of the Local Government Code, which applies to the proposed
City of Novaliches by virtue of Section 54 of R.A. No. 8535, the
• Congress intended to exempt cities from the LGC, as Bills
City of Novaliches can still establish a seat of government after its
are legislative acts, and may be basis to maned the LGC
creation. While Section 12 speaks of the site of government
(another legislative act)
centers, such site can very well also be the seat of government,
• Congress saw wisdom of exempting the 16 municipalities “from where governmental and corporate service shall be
from complying w/ higher income req from RA 9009 delivered.”
Page 15
Under the Revised Admin. Code Municipal Corporation by Prescription
Sec. 68, RAC. - The (Governor-General) President of the • an MC may exist by prescription
Philippines may by executive order define the boundary, or • existence will be presumed where it is shown that the
boundaries, of any province, subprovince, municipality, community’s claimed and exercised corporate functions w/o
[township] municipal district, or other political subdivision, and
interruption or objection for a period long enough to afford
increase or diminish the territory comprised therein, may divide
title by prescription
any province into one or more subprovinces, separate any political
subdivision other than a province, into such portions as may be
required, merge any of such subdivisions or portions with De Facto Municipal Corporations
another, name any new subdivision so created, and may change
the seat of government within any subdivision to such place • corporation may exist in fact, although not in point of law,
therein as the public welfare may require: Provided, That the as certain defects in some essential features of its
authorisation of the (Philippine Legislature) National Assembly of organisation
the Philippines shall first be obtained whenever the boundary of • as such it may still be regarded as an existing corporation de
any province or subprovince is to be defined or any province is to facto
be divided into one or more subprovinces. When any action by the
(Governor-General) President of the Philippines in accordance
Requisites for Consideration
herewith makes necessary a change of the territory under the
jurisdiction of any administrative officer or any judicial officer, the
• valid law authorising incorporation;
(Governor-General) President of the Philippines, with the • an attempt, in GF, to organise under it;
recommendation and advice of the head of the Department having • colourable compliance w/ the law; and
executive control of such officer, shall redistrict the territory of the • assumption of corporate powers
several officers affected and assign such officers to the new
districts so formed. *considering sec. 44(d) of the LGC, no de facto municipal
Upon the changing of the limits of political divisions in pursuance corporations or municipal corporations by prescription
of the foregoing authority, an equitable distribution of the funds continue to exist*
and obligations of the divisions thereby affected shall be made in
such manner as may be recommended by the (Insular Auditor) Sec. 44(d), LGC. - The successors as defined herein shall serve
Auditor General and approved by the (Governor-General) only the unexpired terms of their predecessors.
President of the Philippines.
Attack Against the Validity of Incorporations
Pelaez v. Auditor General (supra)
The creation of municipalities, is not an administrative function,
but one which is essentially and eminently legislative in character.
• when a corporation is de jure, it is impregnable to any attack
The question of whether or not "public interest" demands the • validity of incorporation and corporate existence of a
exercise of such power is not one of fact. municipal corporation may not be attacked collaterally
• may be challenged only by the State in a direct proceeding
Municipality of Condijay Bohol v. CA (1995) such as quo warranto
Respondent municipality's situation in the instant case is • however, where the corporation is an absolute nullity, it is
strikingly similar to that of the municipality of San Andres. subject to collateral attack
Respondent municipality of Alicia was created by virtue of
Executive Order No. 265 in 1949, or ten years ahead of the Beginning of Corporate Existence of Municipal
municipality of San Andres, and therefore had been in existence Corporations
for all of sixteen years when Pelaez vs. Auditor General was
promulgated. And various governmental acts throughout the
Sec. 14, LGC. - When a new local government unit is created, its
years all indicate the State's recognition and acknowledgment of
corporate existence shall commence upon the election and
the existence thereof. For instance, under Administrative Order
qualification of its chief executive and a majority of the members
No. 33 above-mentioned, the Municipality of Alicia was covered
of its sanggunian, unless some other time is fixed therefore by the
by the 7th Municipal Circuit Court of Alicia-Mabini for the
law or ordinance creating it.
province of Bohol.
Inasmuch as respondent municipality of Alicia is similarly
situated as the municipality of San Andres, it should likewise • legal existence is to be determined by its creating law
benefit from the effects of Section 442 (d) of the Local • where law is silent, existence shall commence upon the
Government Code, and should henceforth be considered as a election of its chief exec. and a majority of its sanggu
regular, de jure municipality. members
Page 16
ALTERATION AND DISSOLUTION OF Brgy. Sangalang v. Brgy. Magian (2009)

MUNICIPAL CORPORATIONS The sanggu decision may be appealed to the RTC having
jurisdiction over the area in dispute. When the RTC takes
———————————————————————
cognisance of a case in the exercise of its appellate jurisdiction any
NATURE OF POWER further appeal must be thru a petition for review under Rule 42.
Necessity for Defining Territorial Boundaries MANNER OR MODE
• municipal corporation cannot, w/o legal authorisation, Sec. 7, LGC. - As a general rule, the creation of a local
exercise its powers beyond its own corporate limits government unit or its conversion from one level to another level
• necessary that it has its boundaries fixed, definite, certain, shall be based on verifiable indicators of viability and projected
so that they may be identified, and that all may know the capacity to provide services, to wit:
exact scope/section of territory or geographical division (a) Income. - It must be sufficient, based on acceptable standards,
embraced w/in the corporate limits and over w/c the local to provide for all essential government facilities and services
corporation has jurisdiction and special functions commensurate with the size of its
population, as expected of the local government unit
• incorporation is void where the boundaries of the MC are
concerned;
not described w/ certainty
(b) Population. - It shall be determined as the total number of
inhabitants within the territorial jurisdiction of the local
Apportioning government unit concerned; and
• legislature may apportion the common property/assets and (c) Land Area. - It must be contiguous, unless it comprises 2 or
the common borders between or among the corporations in more islands or is separated by a local government unit
a reasonable and equitable manner independent of the others; properly identified by metes and
• this may be done in the law dividing the corporations, or it bounds with technical descriptions; and sufficient to provide
may be left to the executive and admin authorities for for such basic services and facilities to meet the requirements
determination of its populace.
Compliance with the foregoing indicators shall be attested to by
the Department of Finance (DOF), the National Statistics Office
Basic Procedure for Boundary Disputes
(NSO), and the Lands Management Bureau (LMB) of the
Department of Environmental Resources (DENR).
Disputes bet. Municipal Governments over Areas/Barangays
• heard and decided by the Sanggu Panlalawigan of the Sec. 8, LGC. - Division and merger of existing local government
province where the municipalities are situated units shall comply with the same requirements herein prescribed
• if the municipalities are in different provinces, the SP of for their creation: Provided, however, That such division shall not
both provinces shall jointly hear and decide the dispute reduce the income, population, or land area of the local
• if not settlement is reached w/in 60 days from referral to government unit(s) concerned to less than the minimum
the SP, the dispute shall be brought to the RTC w/c shall requirements prescribed in this Code: Provided, further, That the
decide the case w/in 1 year from start of the proceedings income classification of the original local government unit(s) shall
not fall below its current income classification prior to such
division.
Disputes w/in Barangays
The income classification of local government units shall be
• heard and decided by the SP or SB concerned
updated within 6 months from the effectivity of this Code to
• in case no settlement is reached w/in 60 days, the case shall reflect the changes in their financial position resulting from the
be heard and decided by the RTC w/in 1 year from the start increased revenues as provided herein.
of court proceedings
Sec. 9, LGC. - A local government unit may be abolished when
Calanza v. PICOP (2009) its income, population, or land area has been irreversibly reduced
The settlement of a boundary dispute involving municipalities or to less than the minimum standards prescribed for its creation
component cities of different provinces shall be jointly referred for under Book III of this Code, as certified by national agencies
settlement to the respective sanggunians or the provincial boards mentioned in section 17 hereof to Congress or to the sanggunian
of the different provinces involved, with the dissatisfied party concerned, as the case may be.
being given an avenue to question the decision of the sanggunian The law or ordinance abolishing a local government unit shall
to the Regional Trial Court (RTC) having jurisdiction over the specify the province, city, municipality, or barangay with which
area. the local government unit sought to be abolished will be
The RTC cannot assume original jurisdiction over boundary incorporated or merged.
disputes since the LGC allocates such power to the sanggu
panlalawigans of the provinces involved. Neither can it exercise its Sec. 10, LGC. - No creation, division, merger, abolition, or
appellate jurisdiction as no petition had been filed and decided by substantial alteration of boundaries of local government units
the said sanggus. shall take effect unless approved by a majority of the votes cast in
a plebiscite called for the purpose in the political unit(s) directly
affected. Said plebiscite shall be conducted by the COMELEC
Page 17
within 120 days from the date of effectivity of the law or Subject Matter Effect
ordinance effecting such action, unless said law or ordinance fixes
another date. those contracted prior to the
On Debts and Obligations of
Annexed Territory annexation shall be assumed by
Art. X, s. 10. - No province, city, municipality, or barangay may the annexing territory in the
be created, divided, abolished, or its boundary substantially absence of any provision to the
altered, except in accordance with the criteria established in the contrary
Local Government Code and subject to approval by a majority of
the votes cast in a plebiscite in the political units directly affected.
Of Division of Municipal Corporations
EFFECTS
Subject Matter Effect
O f A n n ex a t i o n o r C o n s o l i d a t i o n o f M u n i c i p a l
Corporations Legal Existence of the OG corporate existence of the
Municipal Corporation original municipality is
extinguished
Subject Matter Effect
Property, Powers and Rights unless law provides otherwise,
Legal Existence of the unless otherwise provided, the of the OG Corporation when a mun. corporation is
Territory Annexed annexation of 1 municipal divided into 2 or more
corporation to another will municipalities, each one
dissolve the annexed territory acquires title to all the property,
powers, rights and obligations
Laws and Ordinances of the in the absence of a provision to falling w/in its territorial limits
Annexed Corporations the contrary, the annexed
territory shall become subject to
the laws + ordinances by w/c WHEN THERE IS NO DISSOLUTION
the annexing corporation is
governed Non-User or Surrender of Charter
Right of Officers or subj. to what the legislature
Employees of the Annexed provides upon annexation, the • municipal corporations cannot bring about their own
Corporation to Continue to officers and employees of the dissolution by a mere surrender of charter
annexed territory shall
Hold their Offices • municipal corporation is not ipso facto dissolved/destroyed
terminate their official relation
by non-use of its powers in whole/part, or for its failure for
w/ their offices
a number of years to exercise the functions of a municipality
Title to the Property of the annexing territory shall acquire • in such cases, the municipal corporation would be
Annexed Territory title to the property of the suspended but not civilly dead, as its dormant functions
annexed territory at the time of
could be revived w/o action on account of the sovereignty
the annexation, unless the
annexing statute provides from w/c, in theory of law, corporate life originally came
otherwise
Failure to Elect Municipal Officers
when the annexed territory
forms part of a municipality
from w/c it is taken, the • in absence of a statute, a municipal corporation is not
legislature may provide for the dissolved by mere failure to elect or appoint its officers and
payment of compensation for agents to conduct its gov’t
the indebtedness incurred on • officers do not constitute a corporation; rather, the
account of the property taken
inhabitants of the designated locality are the incorporators
public buildings and
improvements in the annexed Change of Sovereignty
territory are not required to be
paid for by the annexing Vilas v. City of Manila (supra)
territory, as they have already
While there is a total abrogation of the former political relations
been paid for by said
of inhabitants of ceded territory, and an abrogation of laws in
territory;However, if any
conflict with the political character of the substituted sovereign,
indebtedness on these exists,
the annexing territory must be the great body of municipal law regulating private and domestic
req’d to share in the payment of rights continues in force until abrogated or changed by the new
said indebtedness ruler. Although the United States might have extinguished every
municipality in the territory ceded by Spain under the Treaty of
1898, it will not, in view of the practice of nations to the contrary,
be presumed to have done so.
Page 18
The legal entity of the City of Manila survived both its military
occupation by, and its cession to, the United States, and, as in law,
the present city, as the successor of the former city, is entitled to
the property rights of its predecessor, it is also subject to its
liabilities.
Sultan Usman Sarangani v. COMELEC (2000)

Determination of whether or not a certain election precint actually
exists, and whether the voters registered in the precint are real
voters, is a factual matter. Under the LGC, the abolition of an
LGU may be done by Congress in the case of a province, city,
municipality, or any other political subdivision. In the case of a
barangay, except in Metro Manila and in cultural communities, it
may be done by the Sanggu Panlalawigan or Panlungsod
concerned, subject to the mandatory requirement of a plebiscite
conducted for the purpose in the political units affected.
Page 19
PLEBISCITE REQUIREMENTS The creation of a separate congressional district for Mandaluyong

——————————————————————— is not a subject separate and distinct from the subject of its
conversion into a highly urbanized city but is a natural and logical
Art. X, s. 10. - No province, city, municipality, or barangay may
consequence of its conversion into a highly urbanized city. Verily,
be created, divided, merged, abolished, or its boundary
the title of R.A. No. 7675, “An Act Converting the Municipality of
substantially altered, except in accordance with the criteria
Mandaluyong Into a Highly Urbanized City of Manda-luyong”
established in the Local Government Code and subject to approval
necessarily includes and contemplates the subject treated under
by a majority of the votes cast in a plebiscite in the political units
Section 49 regarding the creation of a separate congressional
directly affected.
district for Mandaluyong.
Sec. 10, LGC. - No creation, division, merger, abolition, or
Municipality of Nueva Era, Ilocos v. Marcos (2008)
substantial alteration of boundaries of local government units
The plebiscite is an instance where the people in their sovereign
shall take effect unless approved by a majority of the votes cast in
capacity decide on a matter which affects them - direct democracy
a plebiscite called for the purpose in the political unit(s) directly
of the people as opposed to democracy thru people’s
affected. Said plebiscite shall be conducted by the COMELEC
representatives. This plebiscite requirement is also in accord with
within 120 days from the date of effectivity of the law or
the philosophy of the Constitution granting more autonomy to
ordinance effecting such action, unless said law or ordinance fixes
LGUs. Moreover, it is prospective in character, and cannot apply to
another date.
municipalities already created.
Padilla v. COMELEC (1992)
 
When the law states that the plebiscite shall be conducted “in the
political units directly affected,” it means that residents of the
political entity who would be economically dislocated by the
separation of a portion thereof have a right to vote in said
plebiscite. Evidently, what is contemplated by the phrase “political
units directly affected,” is the plurality of political units which
would participate in the plebiscite.
The plebiscite here is valid as the phrase mentioned means that
residents of the political entity who would be economically
dislocated by the separation of a portion thereof have a right to
vote. Logically, this includes the mother Municipality.
Tan v. COMELEC (1996)

A plebiscite for creating a new province should include the
participation of the residents of the mother province for the
plebiscite to conform to the constitutional requirements.
Boundaries of the existing province of Negros Occidental would
necessarily be substantially altered by the division of its existing
boundaries in order that there can be created the proposed new
province of Negros del Norte. Therefore, both the new province
and the Mother province come within the meaning of “political
units affected.”
Miranda v. Aguirre (1999)

Both the Constitution and the LGC require for a plebiscite. The
rule covers all conversions, whether upward or downward, so long
as they result in a material change in the LGU directly affected,
especially a change in political and economic rights of the people.
RA 8528 is then unconstitutional.
Tobias v. Abalos (1994)

The statutory conversion of Mandaluyong into a highly urbanized
city with a population of not less than two hundred fifty thousand
indubitably ordains compliance with the “one city-one
representative” proviso in the Constitution: “x x x Each city with
a population of at least two hundred fifty thousand, or each
province, shall have at least one representative” (Article VI,
Section 5(3), Constitution). Hence, it is in compliance with the
aforestated constitutional mandate that the creation of a separate
congressional district for the City of Mandaluyong is decreed
under Article VIII, Section 49 of R.A. No. 7675.
Page 20
GEN. POWERS OF LOCAL GOVERNMENTS Sanggu Panlungsod

———————————————————————
POLICE POWER • approve ordinances and pass resolutions necessary for an
efficient and effective city gov’t
General Welfare • generate and maximise the use of resources and revenues
• enact ordinances granting franchises and authorising the
Sec. 16, LGC. - Every local government unit shall exercise the issuance of permits or licenses
powers expressly granted, those necessarily implied therefrom, as • regulate activities relative to the use of land, buildings and
well as powers necessary, appropriate, or incidental for its efficient structures w/in the city
and effective governance, and those which are essential to the • approve ordinances w/c shall ensure the efficient and
promotion of the general welfare. Within their respective effective delivery of the basic services and facilities
territorial jurisdictions, local government units shall ensure and
• exercise such other powers and perform such other duties
support, among other things, the preservation and enrichment of
and functions as may be prescribed by law or ordinance
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 Sanggu Panlalawigan
technological capabilities, improve public morals, enhance
economic prosperity and social justice, promote full employment • approve ordinances and pass resolutions
among their residents, maintain peace and order, and preserve the • generate and maximise the use of resources and revenues
comfort and convenience of their inhabitants. • adopt measures to enhance the full implementation of the
national agrarian reform program in coordination w/ DAR
Powers, Duties and Functions of LGUs • grant franchises, approve issuance of permits or licenses, or
enact ordinances levying taxes, fees and charges
Sanggu Barangay • approve ordinances w/c shall ensure the efficient and
effective delivery of the basic services and facilities
• enact ordinances
• enact tax and revenue ordinances City of Manila v. Laguio (2005)
• enact annual and supplemental budget The police power granted to local government units must always
• provide for the construction and maintenance of facilities be exercised with utmost observance of the rights of the people to
and projects chargeable to the general fund of the barangay due process and equal protection of the law; Due process requires
the intrinsic validity of the law in interfering with the rights of the
• submit to the sanggu panlungsod/bayan suggestions or
person to his life, liberty and property. A reasonable relation must
recommendations
exist between the purposes of the police measure and the means
• assist in establishment of coop enterprises w/c will improve employed for its accomplishment, for even under the guise of
the economic condition and well-being of the residents protecting the public interest, personal rights and those
• regulate the use of facilities constructed w/ gov’t funds and pertaining to private property will not be permitted to be
charge reasonable fees arbitrarily invaded.
• solicit or accept monies, materials and voluntary labor An ordinance which permanently restricts the use of property that
• solicit or accept cooperation by national, provincial, city, or it can not be used for any reasonable purpose goes beyond
municipal agencies to render financial, technical, and regulation and must be recognized as a taking of the property
advisory assistance to barangays and to barangay residents without just compensation. The Ordinance does not specify the
standards to ascertain which establishments “tend to disturb the
community,” “annoy the inhabitants,” and “adversely affect the
Sanggu Bayan
social and moral welfare of the community.” The cited case
supports the nullification of the Ordinance for lack of
• enact ordinances, approve resolutions and appropriate funds comprehensible standards to guide the law enforcers in carrying
• generate and maximise use of resources and revenues out its provisions.
• grant franchises, enact ordinances authorising the issuance
of permits or licenses, or enact ordinances levying taxes, fees White Light v. City of Manila (2009)
and charges upon such conditions Police power, while incapable of exact definition, has been
• regulate activities relative to the use of land, buildings and purposely veiled in such general terms so as to underscore its
structures w/in the municipality comprehensiveness to meet all exigencies and prove enough room
• approve ordinances to ensure the efficient and effective for an efficient and flexible response as the conditions warrant. It
delivery of the basic services and facilities is based upon the concept of necessity of the State and its
• exercise such other powers and perform such other duties corresponding right to protect itself and its people.
To be a valid measure, the ff. requisites must occur: (i) appears
and functions as may be prescribed by law or ordinance
that the interests of the public generally, as distinguished from
those of a particular class, require an interference w/ private
rights; (ii) evident that no other alternative for the
accomplishment of the purpose less intrusive of private rights can
Page 21
work; (iii) reasonable relation must exist bet. the purpose of the Patalinhug v. CA (1994)
measure and the means employed for its accomplishment. The declaration of the area as a commercial zone thru a municipal
ordinance is an exercise of police power, to promote the good
Malate v. City of Manila (1967) order and general welfare of the people in the locality. The state,
To satisfy the due process requirement, an official action must not to promote the general welfare, may interfere with personal
outrun the bounds of reason and result in sheer oppression; due liberty, with property, and with business and occupations.
process after all is freedom from arbitrariness.
Parayno v. Jovellanos (2006)
Dela Cruz v. Paras (1983) The requisites to consider that a local government has managed to
Police Power may be exercised by a municipality, however it must properly exercise its police powers are the ff.: (a) interests of the
be read in connection w/ the constitution and pertinent laws. public generally, as distinguished from those of a particular class,
Municipalities have no power to prohibit, but only to regulate. require the interference of the State; and (b) the means employed
are reasonably necessary for the attainment of the object sought
Technology Developers v. CA (1991) to be accomplished and not unduly oppressive.
A town mayor has as much responsibility to protect its
inhabitants from pollution, and by virtue of his police power he Greater Balanga Dev’t Corp. v. Municipality Balanga (1994)
may deny the application for a permit to operate a business, or The sanggu bayan has the duty, in the exercise of its police
otherwise close the same, unless appropriate measures are taken powers, to regulate any business subject to municipal license fees
to control and/or avoid injury to the health of the residents of the and prescribe the conditions under which a municipal license
community from the emissions in the operation of the business. already issued may be revoked. In this case, the claim that the EO
and the Resolution were measures “designed to promote peace
Chua Huat v. CA (1991) and order and protect the general welfare of the people” was
The power to condemn and remove the buildings and structures is considered by the Court to be too amorphous and convenient an
an exercise of the police power granted to the City, in order to excuse to justify the respondents’ acts.
promote public safety.
Tano v. Socrates (1997)
Tatel v. Municipality of Virac (1992) Indispensable to the system of decentralisation is devolution. One
For an ordinance to be valid, it must not only be within the of the devolved powers enumerated in the LGC re Devolution is
corporate powers of the municipality to enact but must also be the enforcement of fishery laws in municipal waters, including the
passed according to the procedure prescribed by law, and must be conservation of mangroves. This necessarily includes enactment
in consonance with certain well established and basic principles of of ordinances to effectively carry out such fishery laws within the
a substantive nature. These principles require that a municipal municipal waters.
ordinance (1) must not contravene the Constitution or any statute
(2) must not be unfair or oppressive (3) must not be partial or Roble v. Villaflor (2006)
discriminatory (4) must not prohibit but may regulate trade (5) Here the Mayor’s power to issue licenses is pursuant to the
must be general and consistent with public policy, and (6) must General Welfare Clause, which encapsulates the delegated police
not be unreasonable. Ordinance No. 13, Series of 1952, meets power to local governments. Municipal mayor has the power to
these criteria. issue licenses and permits, as well as to suspend or revoke the
same for any violation of the conditions upon which said licenses
Judge Tamin v. CA (1992) or permits had been issued, pursuant to law or ordinance.
The LGC allows the municipality, thru the legislative body, to pass LGUs exercise police power thru their respective legislative
an ordinance in order to summarily abate a public nuisance. bodies. Thru the general welfare clause, LGUs may prescribe
regulations to protect the lives, health, and property of their
Binay v. Domingo (1991) constituents and maintain peace and order within their respective
Municipal corporations are agencies of the State for the territorial jurisdictions.
promotion and maintenance of local self-government and as such
are endowed with police powers in order to effectively accomplish Closure and Opening of Roads
and carry out the declared objects of their creation.
To be valid, it must not only be within the corporate powers of the Sec. 21, LGC. -
municipality to enact but must also be passed according to the (a) A local government unit may, pursuant to an ordinance,
procedure prescribed by law, and must be in consonance with permanently or temporarily close or open any local road, alley,
certain well established and basic principles of a substantive park, or square falling within its jurisdiction: Provided,
nature. These principles require that a municipal ordinance (1) however, That in case of permanent closure, such ordinance
must not contravene the Constitution or any statute (2) must not must be approved by at least 2/3 of all the members of the
be unfair or oppressive (3) must not be partial or discriminatory sanggunian, and when necessary, an adequate substitute for
(4) must not prohibit but may regulate trade (5) must be general the public facility that is subject to closure is provided.
and consistent with public policy, and (6) must not be (b) No such way or place or any part thereof shall be permanently
unreasonable. Ordinance No. 13, Series of 1952, meets these closed without making provisions for the maintenance of
criteria. public safety therein. A property thus permanently withdrawn
from public use may be used or conveyed for any purpose for
which other real property belonging to the local government
Page 22
unit concerned may be lawfully used or conveyed: Provided, delegated, the agents can only exercise such legislative powers
however, That no freedom park shall be closed permanently conferred upon them by the national lawmaking body.
without provision for its transfer or relocation to a new site. The MMDA has limited powers which does not include police
(c) Any national or local road, alley, park, or square may be power. Not being a political subdivision, the MMDA is limited to
temporarily closed during an actual emergency, or fiesta the administration and implementation of basic services, provided
celebrations, public rallies, agricultural or industrial fairs, or in its charter and cannot open Neptune Street without the proper
an undertaking of public works and highways, ordinance.
telecommunications, and waterworks projects, the duration of
which shall be specified by the local chief executive concerned Sun Valley Home Owners’ Assn. v. Barangay Sun Valley
in a written order: Provided, however, That no national or (2011)
local road, alley, park, or square shall be temporarily closed for Once roads are donated or turned over to the city government, the
athletic, cultural, or civic activities not officially sponsored, road lots shall take the nature of public roads, which are
recognised, or approved by the local government unit withdrawn from the commerce of man, and hence placed beyond
concerned. the private rights or claims of private party.
(d) Any city, municipality, or barangay may, by a duly enacted
ordinance, temporarily close and regulate the use of any local EMINENT DOMAIN
street, road, thoroughfare, or any other public place where
shopping malls, Sunday, flea or night market, or shopping Sec. 19, LGC. - All local government unit may, through its chief
areas may be established and where goods, merchandise, executive and acting pursuant to an ordinance, exercise the power
foodstuffs, commodities, or articles of commerce may be sold of eminent domain for public use, or purpose or welfare for the
and dispensed to the general public. benefit of the poor and the landless, upon payment of just
compensation, pursuant to the provisions of the Constitution and
Cabrera v. CA (1991) pertinent laws: Provided, however, That the power of eminent
The provincial board has the duty of maintaining such roads for domain may not be exercised unless a valid and definite offer has
the comfort and convenience of its inhabitants. This authority is been previously made to the owner, and such offer was not
inferred from the grant by the national legislature of the funds to accepted: Provided, further, That the local government unit may
the Province for the construction of provincial roads. immediately take possession of the property upon the filing of the
expropriation proceedings and upon making a deposit with the
Dacanay v. Asistio (1992) proper court of at least 15% of the fair market value of the
The public street is property for public use, hence outside the property to be expropriated: Provided, finally, That, the amount to
commerce of man. Being outside the commerce of man, it may be paid for the expropriated property shall be determined by the
not be the subject of lease or other contract. The right of the proper court, based on the fair market value at the time of the
public to use the city streets may not be bargained away thru taking of the property.
contract.
Art. III, s. 9. - Private property shall not be taken for public use
Macasiano v. Diokno (1992) without just compensation.
Roads and streets which are available to the public in general and
ordinarily used for vehicular traffic are still considered public Summary of Rule 67 (Expropriation)
property devoted to public use. In such case, the local government
Verified Complaint
has no power to use it for another purpose or to dispose of or
lease it to private persons.
Entry of Plaintiff
Pilapil v. CA (1992)
Defences and Objections w/ objections and defences:
A camino vecinal is a municipal road; here, the municipality had
answer w/in time stated in the
the unassailable authority to (a) prepare and adopt a land use summons
map; (b) promulgate a zoning ordinance which may consider,
among other things, the municipal roads to be constructed, if none: notice of appearance
maintained, improved or repaired; and (c) close any municipal
road. No private party can interfere with such a right. Order of Expropriation ascertainment of compensation
Sangalang v. IAC (1989) uncertain ownership; conflicting

Unlike the power of eminent domain, police power is exercised claims
without provision for just compensation. However, it may not be
commissioners provide their
done arbitrarily or unreasonably. But the burden of showing that
report to determine judgment
it is unjustified lies on the aggrieved party.
Rights of Plaintiff after enter and appropriate (not
MMDA v. Bel Air Village Assn. (2000) Judgment and Payment - delayed by an appeal)
The national legislature may delegate police power to the either:
President, and admin boards as well as lawmaking bodies of
retain
municipal corporations or local government units. Once
Page 23
Contents of Complaint Court Action

• either to accept the report, or recommit the same for further
• right and purpose of expropriation acts
• description of real or personal property • may also set aside report and appoint new commissioners
• join defendants - all persons owning/claiming to own or • may also accept and reject it in part
occupying any part or interest
• make averments, if (i) title is w/ Republic but occupied by Uncertain Ownership; Conflicting Claims
private individuals, or (ii) title is obscure or doubtful
If Ownership of Property is Uncertain/there are Conflicting
Entry of Plaintiff Claims:
• court may order sums awarded as compensation
• upon filing of complaint and after due notice to defendant(s) • judgment shall require payment of sums awarded to
• deposit of amount equivalent to the assessed value defendant before the plaintiff can enter property or retain it
for public use
Defences and Objections
Plaintiff ’s Rights
No Objections
• file notice of appearance and manifestation Upon Payment of Compensation, w/ Legal Interest:
• contents: (a) manifestation to the effect that he has no • right to enter;
objection or defense; and (b) specifically designating/ • right to retain (if he took immediate possession)
identifying the property in which he claims to be interested
Entry not Delayed by Appeal
W/ Objections
• file answer to complaint, w/in time stated in summons If Appellate Court decides that Plaintiff had no Right to
• contents: (a) specifically designating/identifying the Expropriate:
property in w/c he claims to have an interest in; (b) nature • order the RTC to restore defendant of his possession
and extend of interest; and (c) all objections and defences to • determine the damages
the complaint or any allegation
• no counterclaim, cross-claim or 3PC alleged/allowed Moday v. CA (1993)
The limitations on the power of Eminent Domain are that: (i) the
Order of Expropriation use must be public; (ii) compensation be made; and (iii) due
process of law is observed.
When Issued
Camarines Sur v. CA (1993)
• objections/defenses against the right of plaintiff to While the LGU’s delegated power of Eminent Domain is only of
expropriate are overruled; or limited authority, it is complete within its limits. The limitations
• no party appears to defend the case on the exercise of the delegated power must be clearly expressed,
either in the law conferring the power or in other legislations.
Ascertainment of Compensation Statutes that confer the power of Eminent Domain to political
subdivisions cannot be broadened or constricted by implication.
• court appoints at most 3 Commissioners who will ascertain
the jus compensation for property Municipality of Meycauayan v. IAC (1988)
The foundation of the right to use Eminent Domain is Genuine
Necessity, and such necessity must be of public character. The
Objections to Appointment
condemnation of private property is justified only if it is for the
• to be filed w/in 10 days;
public good, and there is genuine necessity; thus, the courts have
• to be resolved w/in 30 days the power to inquire into the legality of the exercise of the right of
eminent domain, and to determine whether or not there is
Commissioners genuine necessity.
The government may not capriciously choose what private
• take and subscribe to an oath property should be taken. With due recognition then of the power
• view and examine the property sought to be expropriated of Congress to designate, the particular property to be taken and
• assess the consequential damages and benefits how much thereof may be condemned in the exercise of the
power of expropriation, it is still a judicial question whether in
Report the exercise of such competence, the part adversely affected is the
victim of partiality and prejudice.
• to be filed w/in 60 days from time of appointment
• parties are allowed to object to findings of report w/in 10
days
Page 24
QC v. Ericta (1983) owner of the property sought to be expropriated, but said offer
It is not within the police powers of the City, as it constitutes was not accepted.
confiscation and not merely regulation - confiscation in the The Court is not precluded from considering the fact of lack of a
context of police powers would lead to destruction, and not public proper ordinance for expropriation, despite being raised for the
use.. Neither is it expropriation, as there is no just compensation first time on appeal.
when “lots are donated.”
The State’s exercise of the power of expropriation requires City of Cebu v. Spouses Apolonio and Blasa Dedamo (2002)
payment of just compensation. Passing the ordinance without Eminent Domain is a fundamental state power inseparable from
benefiting the owner of the property with just compensation or sovereignty. It is the government’s right to appropriate, in the
due process, would amount to unjust taking of a real property. nature of a compulsory sale to the State, private property for
Since the property that is needed to be taken will be used for the public use or purpose. However, the Government must pay the
public's benefit, then the power of the state to expropriate will owner thereof just compensation - to be determined at the time of
come forward and not the police power of the state. taking - as consideration.
City of Manila v. Arellano College (1950) Republic v. CA (2002)

To authorise the condemnation of any particular land by a grantee For local governments to be able to use the power, it must, by
of the power of Eminent Domain, a necessity must exist for the enabling law, be delated to it by the national legislature. But even
taking thereof for the proposed uses and purposes. The very then, this delegated power is not a power of eminent, but only of
foundation of the right to exercise Eminent Domain is a genuine inferior, domain.
necessity, and that such necessity be of public character. The Expropriated lots cannot be recovered since they have already
ascertainment of necessity must precede or accompany, and not taken the character of public property, so the proper remedy is to
follow, the taking of the land. demand for their fair market value.
Necessary does not mean an absolute but only a reasonable or a
practical necessity, such as would combine the greatest benefit to TAXATION AND FISCAL ADMINISTRATION
the public with the least inconvenience and expense to the
condemning party and property owner consistent with such Local Taxation
benefit.
Art. X, s. 5. - Each local government unit shall have the power to
City of Manila v. Chinese Community (1920) create its own sources of revenues and to levy taxes, fees, and
If the expropriation is of a certain or particular parcel of land, for charges subject to such guidelines and limitations as the Congress
some specified public purpose, then the courts would be without may provide, consistent with the basic policy of local autonomy.
jurisdiction to inquire into the purpose of that legislation. If, upon Such taxes, fees, and charges shall accrue exclusively to the local
the other hand, however, the Legislature should grant general governments.
authority to a municipal corporation to expropriate private land
for public purposes, the courts have the ample authority to make Art. X, s. 6. - Local government units shall have a just share, as
an inquiry and to hear proof, upon an issue properly presented, determined by law, in the national taxes which shall be
concerning whether or not the lands were private and whether the automatically released to them.
purpose was, in fact, of a public nature.
Art. X, s. 7. - Local governments shall be entitled to an equitable
Municipality of Paranaque v. VM Realty (1998) share in the proceeds of the utilisation and development of the
With the enactment of the LGC, an ordinance is now required to national wealth within their respective areas, in the manner
exercise the power of Eminent Domain. A mere resolution is provided by law, including sharing the same with the inhabitants
insufficient. by way of direct benefits.
The principles of res judicata and ‘law of the case’ cannot bar the
State’s exercise of such power. Secs. 128-196, LGC. (summary)
Beluso v. Panay (2006) Taxing Power of LGUs in General

LGUs do not have the inherent power of Eminent Domain; rather,
the power delegated to them is in reality inferior, as it must
Fundamental Principles
conform to the limits imposed by the delegation, and thus
partakes only of a share in Eminent Domain. The national
legislature is still the principal of the LGU, and the latter cannot Taxation:
go against the principals’ will, or modify the same. • uniform in each LGU
Requisites for an LGU to properly exercise Eminent Domain: (a)
an ordinance, enacted by the local legislative council authorising Taxes, Fees, Charges and Other Impositions, shall:
the chief executive, in behalf of the LGU, to exercise the power or • be equitable and based as far as practicable on the taxpayer’s
pursue expropriation proceedings over a particular private ability to pay;
property; (b) for public use, purpose of welfare, or for the benefit • be levied and collected only for public purposes;
of the poor and the landless; (c) payment of just compensation;
• not be unjust, excessive, oppressive, or confiscatory; and
and (d) a valid and definite offer was previously made to the
• not contrary to law, public policy, national economic policy,
or in the restraint of trade
Page 25
Collection Distribution of Proceeds

• in no case shall it be left to any private person
*BIR is tasked w/ printing community tax certificates*
Revenue Collected
• shall inure solely to the benefit of + subj. to the disposition Proceeds
by the LGU levying imposition • accrue to LGU’s general funds; however, portion shall accrue
• unless otherwise specifically provided herein to the national gov’t to cover the actual cost of printing and
distribution of the forms and other related expenses
Others • those actually and directly collected by the city/municipality
• each LGU shall, as far as practicable, evolve a progressive treasurer shall accrue entirely to the general fund of the city
system of taxation or municipality concerned, IF:
• power to impose a tax, fee, or charge or to generate revenue • collected thru barangay treasurer, apportioned as:
in this Code shall be exercised by the sanggu of the • 50% to general fund of LGU concerned + 50% to
concerned LGU thru an appropriate ordinance barangay where tax is collected
Common Limitations Special Provisions on LGUs
LGUs may not levy taxes enumerated in sec. 133, including: Provinces
• income taxes (except banks); Special Tax Provisions for Provinces
• DST;
• taxes on acquisitions mortis causa; Tax on Transfer of Ownership tax base is the higher amount
• taxes on exported PH products; of Real Property bet. the total consideration
• customs, fees, and charges in general; involved in the transfer of FMV
• taxes on agricultural/aquatic products when sold by Tax on Printing and base is either:
marginal farmers/fishermen; Publication Business gross annual receipts (existing
• excise taxes under the Tax Code, and those on petrol businesses), or capital
products; investment (new businesses)
• taxes on persons engaged in transportation; books or reading materials
• percentage or VAT on sales or similar transactions; prescribed by DepEd as school
• charges for motor vehicle registration; texts or references are exempted
• taxes on the national government, its agencies and
Franchise Tax base is either:
instrumentalities gross annual receipts (existing
businesses), or capital
Common Revenue - Raising Powers investment (new businesses)
exemption: those provided by

• reasonable fees and charges for services rendered law
• rates for operation of public utilities owned, operated, and
maintained by LGUs Tax on Sand, Gravel and other Division of Proceeds:
Quarry Resources 30% to province;
• toll fees or charges for the use of any public road, pier, or
30% to CC/municipality;
wharf, waterway, bridge, ferry or telecommunication system
40% to barangay
funded and constructed by the LGU concerned;
• except those enumerated as by law Most fought over by LGUs
Community Tax Professional Tax place of payment: province

where he practices profession or
maintains his principal office
*poll tax is part of this*
payment of tax in any province
Who are Liable entitles taxpayer to practice his
profession in any part of the PH
w/o being subjected to any
Natural Persons other tax for his practice
• P5 annual tax + P1 per P1k income, w/c shall not > P5k
employers must req payment of
• liable to pay the community tax in their place of residence
professional tax before hiring an
employee
Juridical Persons
• P500 annual community tax w/c shall not > P10k
• liable to pay the community tax in their principal place
Page 26
Special Tax Provisions for Provinces Special Tax Provisions for Municipalities
Amusement Tax collected from proprietors, exporters, and on

lessees, or operators of theatres, manufacturers, millers,
cinemas, concert halls, circuses, producers, wholesalers,
boxing stadia, and other places distributors, dealers or retailers
of amusement of essential commodities
enumerated hereunder:
base: gross receipts from
admission fees rice and corn / wheat or cassava
flour / cooking oil / laundry soap /
for theatres/cinemas, tax shall
agricultural implements / feeds /
first be deducted and withheld
school supplies / cement / etc;
by taxpayers and paid to the
retailers;
provincial treasurer before the
contractors and other
gross receipts are divided bet.
independent contractors;
the taxpayers and the
rate for banks and other financial
distributors of the
institutions;
cinematographic films
peddlers engaged in the sale of
any merchandise or article of
exemption: operas, concerts,
commerce;
dramas, recitals, painting and art
businesses subject to the excise,
exhibitions, flower shows,
value-added or percentage tax
musical programs, literary and
under the NIRC;
oratorical presentations…
other businesses not otherwise
except pop, rock or similar
specified in the LGC, w/c the
concerts
sanggu concerned may deem
Division of Proceeds: shared proper to tax
equally by the province and the
Situs of Taxation and For branches of taxpayers of
municipality
Distribution of Proceeds for business tax:
Tax for Every Delivery Truck / products covered: Business Taxes 100% to LGU, where branch is
Van of Manufacturers or distilled spirits, fermented located
Producers, Wholesalers of, liquors, soft drinks, cigars and
Dealers, or Retailers in, cigarettes, and others products (if sale commenced in LGU
Certain Products as determined by the sanggu where no branch exists, then the
panlalawigan LGU where principal)
taxpayers herein shall be exempt taxpayers w/ factories, project

from the tax on peddlers offices, plants, and plantations in
the pursuit of their business:
30% where principal office is at;
Municipalities 70% where factory/project office
is located
*those in Metro Manila may levy taxes at rates not exceeding

(if plantation is located at a place
50% of the max rates prescribed by the LGC* other than where factory is: 70%
will be divided 60-40, 60 to
location of factory and 40 to
Special Tax Provisions for Municipalities
location of plantation)
(if > 2 factories/plantations/etc.,
Tax on Business Manufacturers, assemblers, 70% will be divided pro rata
repackers, processors, brewers, among localities in proportion to
distillers, rectifiers, and their respective volumes of
compounders of liquors, distilled production during taxable period)
spirits, and wines or
manufacturers of any article of Other Fees and Charges that on any business/occupation on
commerce of whatever kind or may be Imposed by Municipal the practice of any profession or
nature; Government calling (except those reserved to
the province under sec. 139)
wholesalers, distributors, or
dealers in any article of fees for sealing and licensing of
commerce of whatever kind or weights and measures
nature;
Page 27
Special Tax Provisions for Municipalities Civil Remedies

• distraint of personal property
fishery rentals, fees, and • levy no real property
charges are exclusive w/ • judicial action
municipalities
Miscellaneous Provisions
may be imposed on:
grant of fishery privileges to
erect aquatic beds of bangus Conditions for LGU’s Power to Levy Taxes not imposed in
fury areas; either NIRC or LGC:
grant of privilege to gather, take
• taxes are not unjust, excessive, oppressive, confiscatory, or
or catch fisheries using certain
contrary to national policy;
means; and
issuance of licenses for • ordinance levying the taxes shall not be enacted w/o public
operation of fishing vessels hearing conducted for the purpose
Questions re Validity of Tax Ordinance

Cities
• may be raised on appeal to DOJ Sec w/in 30 days from the
effectivity thereof
Special Tax Provisions for Cities • DOJ Sec shall render a decision w/in 60 days from date of
receipt of the appeal
cities may levy the taxes, fees, and charges w/c provinces or
municipalities may impose
Publication of Tax Ordinance
exception: otherwise provided by the LGC • in full;
• for 3 consecutive days;
taxes, fees and charges levied and collected by HUCs and ICCs
• in a newspaper of local circulation
shall accrue to them and distributed in accordance w/ the provisions
of the LGC
*copies shall be furnished to the respective local treasurers for
rates may exceed maximum rates allowed for the province or public dissemination*
municipality by not > 50% except the rates of professional and
amusement taxes
LGU’s Authority to Adjust Tax Rates
• not oftener than once every 5 years
• but adjustments must never > 10% of rates under LGC
Barangays *unless otherwise provided in the LGC, tax exemptions/

incentives granted to or presently enjoyed by all persons,
Special Tax Provisions for Barangays including government-owned or controlled corporations
(except local water districts, coops duly registered under RA
Business taxes for business establishments w/ gross sales of 6938, nonstick and nonprofit hospitals and educational
receipts of the preceding calendar year: institutions) are hereby withdrawn upon the effectivity of this
Code*
P50k or less, for cities;
P30k or less, for municipalities
Taxpayer’s Remedies
What may be levied upon by barangays, as long as the charges and
fees are reasonable:
Local Taxes
services rendered in connection w/ regulations or the use of • assessed w/in 5 years from date they become due
barangay-owned properties or service facilities such as palay, copra • collected w/in 5 years from date of assessment
or tobacco dryers;
commercial breeding of fighting cocks, cockfights and cockpits; Prescription Periods - suspended, when:
places of recreation w/c charge admission fees;
billboards, signboards, neon signs, and outdoor advertisements;
• treasurer is legally prevented from making assessment of
barangay clearance for any business or activity to be located or collection;
conducted w/in the barangay • taxpayer requests for a reinvestigation and executes a waiver
in writing before expiration of the period w/in w/c to assess
or collect; and
Civil Remedies for Collection of Revenues (on LGU’s part)
• taxpayer is out of the country or otherwise cannot be
located
Lien - whether:
• administrative; or
• judicial
Page 28
Protest
• re deficiency, surcharges, or other defective assessment
• w/in 60 days from receipt of notice of assessment
Written Claim for Refund or Credit

• needs to be filed w/ local treasurer for a case to be
maintained in court for the recovery of erroneously collected
tax
• no case or proceeding shall be entertained in any court after
the expiration of 2 years from the date of the payment of
such tax or from the date the taxpayer is entitled to a refund
or credit
Real Property Taxation
General Provisions
Fundamental Principles
• real property shall be appraised at its current FMV

• real property shall be classified for assessment purposes on
the basis of its actual use
• assessment shall be based on a uniform classification w/in
each LGU
• appraisal, assessment, levy and collection shall not be let to
any private person
• appraisal and assessment of real property shall be equitable
• provinces and cities (and municipalities w/in Metro Manila)
shall be primarily responsible for the proper, efficient, and
effective admin of the real property tax
Appraisal and Assessment
*purpose of these provisions is to determine the tax base*
Duties
Persons owning/administering Real Property

• to prepare a sworn statement declaring true value of
property
• includes those persons acquiring any real property
Local Assessor
• to make such declarations, if the owner/acquirer defaults in
his duty
*AH FUCK THIS RELY NA LANG ON THE REVIEWER*
Page 29
LOCAL LEGISLATION the ordinance or resolution may apply; and (ii) contracts or
agreements with any person or entity which the ordinance or
Sec. 48, LGC. - Local legislative power shall be exercised by the resolution under consideration may affect. In the absence of a
sangguniang panlalawigan for the province; the sangguniang specific constitutional or statutory provision applicable to this
panlungsod for the city; the sangguniang bayan for the situation, “conflict of interest” refers in general to one where
municipality; and the sangguniang barangay for the barangay. it may be reasonable deduced that a member of a sanggunian
may not act in the public interest due to some private,
Sec. 49, LGC. - pecuniary, or other personal considerations that may tend to
(a) The vice-governor shall be the presiding officer of the affect his judgment to the prejudice of the service of the
sangguniang panlalawigan; the city vice-mayor, of the public.
sangguniang panlungsod; the municipal vice-mayor, of the (b) The disclosure required under this Act shall be made in
sangguniang bayan; and the punong barangay, of the writing and submitted to the secretary of the sanggunian or
sangguniang barangay. The presiding officer shall vote only to the secretary of the committee of which he is a member. The
break a tie. disclosure shall, in all cases, form part of the record of the
(b) In the event of the inability of the regular presiding officer to proceedings and shall be made in the following manner: (i)
preside at a sanggunian session, the members present and Disclosure shall be made before the member participates in
constituting a quorum shall elect from among themselves a the deliberations on the ordinance or resolution under
temporary presiding officer. He shall certify within 10 days consideration: Provided, That, if the member did not
form the passage of ordinances enacted and resolutions participate during the deliberations, the disclosure shall be
adopted by the sanggunian in the session over which he made before voting on the ordinance or resolution on second
temporarily presided. and third readings; and (ii) Disclosure shall be made when a
member takes a position or makes a privilege speech on a
Sec. 50, LGC. - matter that may affect the business interest, financial
(a) On the first regular session following the election of its connection, or professional relationship described herein.
members and within 90 days thereafter, the sanggunian
concerned shall adopt or update its existing rules of Sec. 52, LGC. -
procedure. (a) On the first day of the session immediately following the
(b) The rules of procedure shall provide for the following: (i) the election of its members, the sanggunian shall, by resolution,
organization of the sanggunian and the election of its officers fix the day, time, and place of its regular sessions. The
as well as the creation of standing committees which shall minimum numbers of regular sessions shall be once a week
include, but shall not be limited to, the committees on for the sangguniang panlalawigan, sangguniang panlungsod,
appropriations, women and family, human rights, youth and and sangguniang bayan, and twice a month for the
sports development, environmental protection, and sangguniang barangay.
cooperatives; the general jurisdiction of each committee; and (b) When public interest so demands, special sessions may be
the election of the chairman and members of each committee; called by the local chief executive or by a majority of the
(ii) the order and calendar of business for each session; (iii) members of the sanggunian.
the legislative process; (iv) the parliamentary procedures (c) All sanggunian sessions shall be open to the public unless a
which include the conduct of members during sessions; (v) closed-door session is ordered by an affirmative vote of a
the discipline of members for disorderly behavior and majority of the members present, there being a quorum, in
absences without justifiable cause for four (4) consecutive the public interest or for reasons of security, decency, or
sessions, for which they may be censured, reprimanded, or morality. No two (2) sessions, regular or special, may be held
excluded from the session, suspended for not more than sixty in a single day.
(60) days, or expelled: Provided, That the penalty of (d) In the case of special sessions of the sanggunian, a written
suspension or expulsion shall require the concurrence of at notice to the members shall be served personally at the
least two-thirds (2/3) vote of all the sanggunian members: member's usual place of residence at least twenty-four (24)
Provided, further, That a member convicted by final judgment hours before the special session is held. Unless otherwise
to imprisonment of at least one (1) year for any crime concurred in by two-thirds (2/3) vote of the sanggunian
involving moral turpitude shall be automatically expelled from members present, there being a quorum, no other matters
the sanggunian; and (vi) such other rules as the sanggunian may be considered at a special session except those stated in
may adopt. the notice.
(e) Each sanggunian shall keep a journal and record of its
Sec. 51, LGC. - proceedings which may be published upon resolution of the
(a) Every sanggunian member shall, upon assumption to office, sanggunian concerned.
make a full disclosure of his business and financial interests,
or professional relationship or any relation by affinity or Sec. 53, LGC. -
consanguinity within the fourth civil degree, which he may (a) A majority of all the members of the sanggunian who have
have with any person, firm, or entity affected by any ordinance been elected and qualified shall constitute a quorum to
or resolution under consideration by the sanggunian of which transact official business. Should a question of quorum be
he is a member, which relationship may result in conflict of raised during a session, the presiding officer shall immediately
interest. Such relationship shall include: (i) Ownership of proceed to call the roll of the members and thereafter
stock or capital, or investment, in the entity or firm to which announce the results.
Page 30
(b) Where there is no quorum, the presiding officer may declare a Sec. 56, LGC. -
recess until such time as a quorum is constituted, or a (a) Within three (3) days after approval, the secretary to the
majority of the members present may adjourn from day to day sanggunian panlungsod or sangguniang bayan shall forward to
and may compel the immediate attendance of any member the sangguniang panlalawigan for review, copies of approved
absent without justifiable cause by designating a member of ordinances and the resolutions approving the local
the sanggunian to be assisted by a member or members of the development plans and public investment programs
police force assigned in the territorial jurisdiction of the local formulated by the local development councils.
government unit concerned, to arrest the absent member and (b) Within thirty (30) days after the receipt of copies of such
present him at the session. ordinances and resolutions, the sangguniang panlalawigan
(c) If there is still no quorum despite the enforcement of the shall examine the documents or transmit them to the
immediately preceding subsection, no business shall be provincial attorney, or if there be none, to the provincial
transacted. The presiding officer, upon proper motion duly prosecutor for prompt examination. The provincial attorney or
approved by the members present, shall then declare the provincial prosecutor shall, within a period of ten (10) days
session adjourned for lack of quorum. from receipt of the documents, inform the sangguniang
panlalawigan in writing of his comments or
Sec. 54, LGC. - recommendations, which may be considered by the
(a) Every ordinance enacted by the sangguniang panlalawigan, sangguniang panlalawigan in making its decision.
sangguniang panlungsod, or sangguniang bayan shall be (c) If the sangguniang panlalawigan finds that such an ordinance
presented to the provincial governor or city or municipal or resolution is beyond the power conferred upon the
mayor, as the case may be. If the local chief executive sangguniang panlungsod or sangguniang bayan concerned, it
concerned approves the same, he shall affix his signature on shall declare such ordinance or resolution invalid in whole or
each and every page thereof; otherwise, he shall veto it and in part. The sangguniang panlalawigan shall enter its action in
return the same with his objections to the sanggunian, which the minutes and shall advise the corresponding city or
may proceed to reconsider the same. The sanggunian municipal authorities of the action it has taken.
concerned may override the veto of the local chief executive by (d) If no action has been taken by the sangguniang panlalawigan
two-thirds (2/3) vote of all its members, thereby making the within thirty (30) days after submission of such an ordinance
ordinance or resolution effective for all legal intents and or resolution, the same shall be presumed consistent with law
purposes. and therefore valid.
(b) The veto shall be communicated by the local chief executive
concerned to the sanggunian within fifteen (15) days in the Sec. 57, LGC. -
case of a province, and ten (10) days in the case of a city or a (a) Within ten (10) days after its enactment, the sangguniang
municipality; otherwise, the ordinance shall be deemed barangay shall furnish copies of all barangay ordinances to the
approved as if he had signed it. sangguniang panlungsod or sangguniang bayan concerned for
(c) Ordinances enacted by the sangguniang barangay shall, upon review as to whether the ordinance is consistent with law and
approval by the majority of all its members, be signed by the city or municipal ordinances.
punong barangay. (b) If the sangguniang panlungsod or sangguniang bayan, as the
case may be, fails to take action on barangay ordinances
Sec. 55, LGC. - within thirty (30) days from receipt thereof, the same shall be
(a) The local chief executive may veto any ordinance of the deemed approved.
sanggunian panlalawigan, sangguniang panlungsod, or (c) If the sangguniang panlungsod or sangguniang bayan, as the
sanggunian bayan on the ground that it is ultra vires or case may be, finds the barangay ordinances inconsistent with
prejudicial to the public welfare, stating his reasons therefor law or city or municipal ordinances, the sanggunian concerned
in writing. shall, within thirty (30) days from receipt thereof, return the
(b) The local chief executive, except the punong barangay, shall same with its comments and recommendations to the
have the power to veto any particular item or items of an sangguniang barangay concerned for adjustment, amendment,
appropriations ordinance, an ordinance or resolution adopting or modification; in which case, the effectivity of the barangay
a local development plan and public investment program, or ordinance is suspended until such time as the revision called
an ordinance directing the payment of money or creating for is effected.
liability. In such a case, the veto shall not affect the item or
items which are not objected to. The vetoed item or items Sec. 58, LGC. - Any attempt to enforce any ordinance or any
shall not take effect unless the sanggunian overrides the veto resolution approving the local development plan and public
in the manner herein provided; otherwise, the item or items investment program, after the disapproval thereof, shall be
in the appropriations ordinance of the previous year sufficient ground for the suspension or dismissal of the official or
corresponding to those vetoed, if any, shall be deemed employee concerned.
reenacted.
(c) The local chief executive may veto an ordinance or resolution Sec. 59, LGC. -
only once. The sanggunian may override the veto of the local (a) Unless otherwise stated in the ordinance or the resolution
chief executive concerned by two-thirds (2/3) vote of all its approving the local development plan and public investment
members, thereby making the ordinance effective even program, the same shall take effect after ten (10) days from
without the approval of the local chief executive concerned. the date a copy thereof is posted in a bulletin board at the
entrance of the provincial capitol or city, municipal, or
Page 31
barangay hall, as the case may be, and in at least two (2) other Sec. 121, LGC. - The power of local initiative and referendum
conspicuous places in the local government unit concerned. may be exercised by all registered voters of the provinces, cities,
(b) The secretary to the sanggunian concerned shall cause the municipalities, and barangays.
posting of an ordinance or resolution in the bulletin board at
the entrance of the provincial capitol and the city, municipal, Sec. 122, LGC. -
or barangay hall in at least two (2) conspicuous places in the (a) Not less than 1000 registered voters incase of provinces and
local government unit concerned not later than five (5) days cities, 100 in case of municipalities, and 50 in case of
after approval thereof. The text of the ordinance or resolution barangays, may file a petition with the sanggunian concerned
shall be disseminated and posted in Filipino or English and in proposing the adoption, enactment, repeal, or amendment of
the language understood by the majority of the people in the an ordinance.
local government unit concerned, and the secretary to the (b) If no favourable action thereon is taken by the sanggunian
sanggunian shall record such fact in a book kept for the concerned within 30 days from its presentation, the
purpose, stating the dates of approval and posting. proponents, through their duly authorised and registered
(c) The gist of all ordinances with penal sanctions shall be representatives, may invoke their power of initiative, giving
published in a newspaper of general circulation within the notice thereof to the sanggunian concerned.
province where the local legislative body concerned belongs. (c) The proposition shall be numbered serially starting from
In the absence of any newspaper of general circulation within Roman numeral I. The COMELEC or its designated
the province, posting of such ordinances shall be made in all representative shall extend assistance in the formulation of
municipalities and cities of the province where the sanggunian the proposition.
of origin is situated. (d) 2 or more propositions may be submitted in an initiative.
(d) In the case of highly urbanized and independent component (e) Proponents shall have 90 days in case of provinces and cities,
cities, the main features of the ordinance or resolution duly 60 days in case of municipalities, and 30 days in case of
enacted or adopted shall, in addition to being posted, be barangays, from notice mentioned in subsection (b) hereof to
published once in a local newspaper of general circulation collect the required number of signatures.
within the city: Provided, That in the absence thereof the (f) The petition shall be signed before the election registrar, or
ordinance or resolution shall be published in any newspaper his designated representatives, in the presence of a
of general circulation. representative of the proponent, and a representative of the
sanggunian concerned in a public place in the local
Art. X, s. 9. - Legislative bodies of local government shall have government unit, as the case may be. Stations for collecting
sectoral representation as may be prescribed by law. signatures may be established in as many places as may be
warranted.
Casino v. CA (1991) (g) Upon the lapse of the period herein provided, the COMELEC,
Although the general law requires only majority, the higher through its office in the local government unit concerned,
requisite in Resolution 49 shall govern, as municipal authorities shall certify as to whether or not the required number of
are in a better position to determine the evils sought to be signatures has been obtained. Failure to obtain the required
prevented by the inclusion or operation of particular provisions in number defeats the proposition.
enacting a particular statute and, therefore, to pass the (h) If the required number of signatures is obtained, the
appropriate ordinance to attain the main objective of the law. COMELEC shall then set a date for the initiative during which
the proposition shall be submitted to the registered voters in
Gamboa v. Aguirre (supra) the local government unit concerned for their approval within
An incumbent vice-governor, while concurrently the acting 60 days from the date of certification by the COMELEC, as
governor, cannot continue to preside over the sessions of the provided in subsection (g) hereof, in case of provinces and
sangguniang panlalawigan. cities, 45 days in case of municipalities, and 30 days in case of
A vice-governor concurrently an acting governor is actually a barangays. The initiative shall then be held on the date set,
quasi-governor. For the purposes of exercising his legislative after which the results thereof shall be certified and
prerogatives and powers, he is deemed as a non-member of the SP proclaimed by the COMELEC.
for the time being. By tradition, the offices of the provincial
governor and vice-governor are essentially executive in nature, Sec. 123, LGC. - If the proposition is approved by a majority of
whereas plain members of the provincial board perform legislative the votes cast, it shall take effect 15 days after certification by the
functions, because the authority vested by law in said boards COMELEC as if affirmative action thereon had been made by the
involves primarily a delegation of some legislative powers of sanggunian and local chief executive concerned. If it fails to obtain
Congress. said number of votes, the proposition is considered defeated.
Local Initiative and Referendum Sec. 124, LGC. -

(a) The power of local initiative shall not be exercised more than
Sec. 120, LGC. - Local initiative is the legal process whereby the once a year.
registered voters of a local government unit may directly propose, (b) Initiative shall extend only to subjects or matters which are
enact, or amend any ordinance. within the legal powers of the sanggunian to enact.
(c) If at any time before the initiative is held, the sanggunian
concerned adopts in toto the proposition presented and the
local chief executive approves the same, the initiative shall be
Page 32
cancelled. However, those against such action may, if they so

desire, apply for initiative in the manner herein provided.
Sec. 125, LGC. - Any proposition or ordinance approved through

the system of initiative and referendum as herein provided shall
not be repealed, modified or amended by the sanggunian
concerned within 6 months from the date of approval thereof, and
may be amended, modified or repealed by the sanggunian within
3 years thereafter by a vote of 3/4 of all its members: Provided,
that in case of barangays, the period shall be 18 months after the
approval thereof.
Sec. 126, LGC. - Local referendum is the legal process whereby

the registered voters of the local government units may approve,
amend or reject any ordinance enacted by the sanggunian.
The local referendum shall be held under the control and
direction of the COMELEC within 60 days in case of provinces
and cities, 45 days in case of municipalities and 30 days in case of
barangays.
The COMELEC shall certify and proclaim the results of the said
referendum
Sec. 127, LGC. - Nothing in this Chapter shall prevent or

preclude the proper courts from declaring null and void any
proposition approved pursuant to this Chapter for violation of the
Constitution or want of capacity of the sanggunian concerned to
enact said measure.
*Compare w/ RA 6735 (Initiative and Referendum Act)
Garcia v. COMELEC (1994)

The Constitution clearly includes not only ordinance but also
resolutions as appropriate subjects of a local initiative. Sec. 32 of
Art. VI provides in luminous language: “The Congress shall, as
early as possible, provide for a system of initiative and
referendum, and the exceptions therefrom, whereby the people
can directly propose and enact laws or approve or reject any act or
law or part thereof passed by the Congress, or local legislative
body…” An act includes a resolution.
Subic Bay Metropolitan Authority v. COMELEC (1996)

As defined, “Initiative” is the power of the people to propose bills
and laws, and to enact or reject them at the polls independent of
the legislative assembly; on the other hand, “Referendum” is the
right reserved to the people to adopt or reject any act or measure
which has been passed by a legislative body, and w/c in most
cases would w/o action on the part of electors become a law.
In initiative and referendum, the COMELEC exercises
administration and supervision of the process itself, making to its
powers over the conduct of elections. These law-making powers
belong to the people, hence the respondent Commission cannot
control or charge the substance or content of legislation.
Acts of Sanggunian
Ordinance and Resolution
New Sounds Broadcasting v. Dy (2009)
Page 33

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Local Government - Notes

HISTORICAL BACKGROUND OF LOCAL

*notes from Tapales’ article*

• both are mere creatures of the State Twin Functions:

*from BP 337 (1983) to RA 7160 (1991); a change in focus* Quasi-Municipal Corporation

NATURE & STATUS OF MUNICIPAL CORPORATIONS *another term for quasi-corporation*

KINDS OF MUNICIPAL CORPORATIONS

national government and as a corporate entity representing the

called into existence either at sometimes involuntary

Tolentino Lidasan v. COMELEC (1967)

Governmental Private Division and Merger. - Sec. 8.

Creation and Conversion. - Sec. 7. Plebiscite Requirement. - Sec. 10.

GR: based on verifiable indicators of viability and projected Requirement

Compliance to Indicators - attested to by: Factors to select site:

• power to admin the katarungang pambarangay Eminent Domain. - Sec. 19.

Municipality • thru its chief executive and acting pursuant to an ordinance

*when such national agency fails to act on the request for

Liability for Damages - Sec. 24.

GENERAL PRINCIPLES AND POLICIES List:

LGUs Sec. 2, LGC. -

Art. X, sec. 3. - The Congress shall enact a local government code

LGUs’ relationship w/ Regional Development Councils

Limbona v. Mangellin (1989)

Navarro v. Ermita (May 2010) Further Notes:

Under the Revised Admin. Code Municipal Corporation by Prescription

ALTERATION AND DISSOLUTION OF Brgy. Sangalang v. Brgy. Magian (2009)

Necessity for Defining Territorial Boundaries MANNER OR MODE

Sultan Usman Sarangani v. COMELEC (2000)

PLEBISCITE REQUIREMENTS The creation of a separate congressional district for Mandaluyong

Tan v. COMELEC (1996)

Miranda v. Aguirre (1999)

Tobias v. Abalos (1994)

GEN. POWERS OF LOCAL GOVERNMENTS Sanggu Panlungsod

Sangalang v. IAC (1989) uncertain ownership; conflicting

Contents of Complaint Court Action

City of Manila v. Arellano College (1950) Republic v. CA (2002)

Beluso v. Panay (2006) Taxing Power of LGUs in General

Collection Distribution of Proceeds

Common Limitations Special Provisions on LGUs

exemption: those provided by

Community Tax Professional Tax place of payment: province

Amusement Tax collected from proprietors, exporters, and on

taxpayers herein shall be exempt taxpayers w/ factories, project

*those in Metro Manila may levy taxes at rates not exceeding

Special Tax Provisions for Municipalities Civil Remedies

Questions re Validity of Tax Ordinance

Barangays *unless otherwise provided in the LGC, tax exemptions/

Written Claim for Refund or Credit

Real Property Taxation

• real property shall be appraised at its current FMV

Appraisal and Assessment

*purpose of these provisions is to determine the tax base*

Persons owning/administering Real Property

*AH FUCK THIS RELY NA LANG ON THE REVIEWER*

Local Initiative and Referendum Sec. 124, LGC. -

cancelled. However, those against such action may, if they so

Sec. 125, LGC. - Any proposition or ordinance approved through

Sec. 126, LGC. - Local referendum is the legal process whereby

Sec. 127, LGC. - Nothing in this Chapter shall prevent or

notes from Tapales’ article

from BP 337 (1983) to RA 7160 (1991); a change in focus Quasi-Municipal Corporation

NATURE & STATUS OF MUNICIPAL CORPORATIONS another term for quasi-corporation

purpose of these provisions is to determine the tax base

AH FUCK THIS RELY NA LANG ON THE REVIEWER