6_LocGov_261to319

5

LOCAL GOVERNMENTSI. INTRODUCTION: HISTORY AND PERSPECTIVES Basic Laws 1987 CONSTITUTION, Article X ADMINISTRATIVE CODE OF 1987, Title XII, as amended by RA 6975 Chapter I THE DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT Section 4. The Department of the Interior and

a)

Office of the Secretary. The office of the Secretary of be the shall consist of the and (2) local Secretary and his immediate staff; and

b)

Office shall

Undersecretaries by (1) two for

Assistant Secretaries. The Secretary assisted one Undersecretaries,

government and the other for peace and order, at least one (1) of whom must belong to the career executive service, and three (3) career Assistant Secretaries. Section 8. Head of Department. The head of

the Department, hereinafter referred to as the Secretary, shall also be the ex-officio Chairman of the National Police Commission and shall be appointed by the President subject to confirmation of the Commission on Appointments. No retired or resigned military officer or police official may be appointed as Secretary within one (1) year from the date of his retirement or resignation. Section 9. and General Powers, Term of Office and for the and exercise functions of shall the be

Local Government. To carry out the policies and purposes of this Act, the Department of Local Government Department Government, this Act. Section this 5. the the Powers and Functions shall of the to the is of hereby the reorganized Interior referred to into as the Local the and

hereinafter

Compensation of the Secretary. The authority responsibility Departments powers

Department, in accordance with the provisions of

vested in the Secretary, who shall hold office at the pleasure of the Presidents and shall receive the compensation, allowanced and other emoluments to which heads of departments are entitled. Section 10. Specific Powers and Functions of the Secretary. In addition to his powers and functions as provided in Executive Order No. 262, the Secretary as Department Head shall have the following powers and functions:a) Prepare and submit periodic reports, including a Quarterly Anti-Crime Operations Report and such other reports as the President and Congress may require; Act as Chairman and Presiding Officer of the National Police Commission; and Delegate authority to exercise any substantive or administrative function to the members of the National Police Commission or other officers of rank within the Department.

Department. In furtherance of the objective of Act, Department powers and continue of exercise functions

Department of Local Government in addition to the powers as herein provided. Section 6. Organization. The Department shall consist of the Department Proper, the existing bureaus and offices of the Department of Local Government, the National Police Commission, the Philippine Public Safety College, and the following bureaus: the Philippine National Police, the

b) c)

Bureau of Fire Protection, and the Bureau of Jail Management and Penology. Section 7. Department Proper. The Department Proper shall consist of the existing staff services as provided for under Executive Order No. 262 and the following offices:

[Lorybeth_Baldrias.head] [Nayna_Malayang.deputy] [Rhudz_Raymundo.secretariat] [Dionne_Sanchez.acads] [Jam_Jacob.design] Bobbie_StaMaria.printing] [Miles_Malaya.lectures] [Japee_DeLeon.poli_law] [Ascheia_Yumul.rem_law] [Paul_Sorino/Judy_Ripol.civ_law] [Hya_Rafael/Mac_Macapagal.crim_law] [Vivian_Tan/Justin_Mendoza.labor_law] [Miguel_DeJesus.legal_ethics] [Lianne_Gervasio.comm_law] [Ces_Sicangco/Rowena_Romero.tax_law]

6Section 11. Regional Offices. The Department 7160 expressly repeals BP 337 (the old LGC), said RA is to take effect only on Jan. 1, 1992. As the facts of this case arose before the effectivity of RA 7160, the old LGC applies. Secretary of Health v. CA, 241 SCRA 688 (1995) Secretary of Health still has jurisdiction over the administrative complaint in question, despite the enactment of the Local Government Code, which Code divested the Sec. of Health of administrative jurisdiction over the health officer. The petitioner was charged and placed under Section 12. Relationship of the Department with the Department of National Defense. During a period of twenty-four (24) months from the effectivity of this Act, the Armed Forces of the Philippines (AFP) shall continue its present role of preserving the internal and external security of the State: extended justifiable, twenty-four Provided, That said period may be by for the (24) President, period months, if he not finds it the another exceeding Innovations in the law on local governments introduced by the Local Government Code of 1991 Devolution of basic services (e.g. health, environment, etc.) to LGUs; Increase of financial resources available to LGUs; Devolution (e.g. lands); Legal infrastructure for participation of NGOs and Pos in the process of governance of responsibility of for enforcement of certain regulatory powers reclassification agricultural suspension in 1991, before the enactment of RA 7160, and thus, was within the administrative jurisdiction of the Secretary of Health. shall establish, operate and maintain a regional office in each of the administrative regions of the country to implement the policies and programs of the Department. Each regional office shall be headed by a regional director to be assisted by two (2) assistant regional directors: one (1) for jail management and penology and another for fire protection in addition to the present assistant regional directors of the Department of Local Government.

after

which,

Department shall automatically take over from the AFP the primary role of preserving internal security leaving to the AFP its primary role of preserving external security. However, even after the Department on has matters assumed affecting primary internal responsibility

security, including the suppression of insurgency, and there are serious threats to national security and public order, such as where insurgents have gained considerable foothold in the community thereby necessitating the employment of bigger tactical forces and the utilization of higher caliber armaments and better armored vehicles, the President may, upon recommendation of the peace and order council, call upon the Armed Forces of the Philippines to assume the primary role and the Philippine National Police (PNP) to play the supportive role in the area concerned. Effectivity of the Code LGC Sections 5d, 536. Evardone v. Comelec, 204 SCRA 464 (1991) Art. XVIII, Sec. 3 of the Constitution provides that all existing laws not inconsistent with the Constitution shall remain operative until amended, repealed or revoked. Although RA Local

II. BOOK I. GENERAL PROVISIONS TITLE ONE: BASIC PRINCIPLES A. Policy and Application LGC Sections 1-4 Government, Decentralization,

Autonomy De Leon v. Esguerra, 153 SCRA 603 (1987) The 1987 Constitution took effect on February 2, 1987, the date of the plebiscite for ratification, and not on February 11, 1987, the date of the proclamation of its ratification by the


7President. Constitution Art. XVIII, Sec. 27 of the 1987 states that it shall take effect Ganzon v. CA, 200 SCRA 271 (1991) The President may still administer administrative sanctions against local officials, despite the change in the language of the 1987 Constitution, wherein the phrase as may be provided by law (referring to the authority of the Secretary of Local Governments to discipline local officials), a phrase contained in the previous Constitutions, was deleted. The omission only underscored the LGUs autonomy from Congress and break its control over the LGUs affairs. Autonomy does not contemplate making mini-states San Juan v. Civil Service Commission, 196 SCRA 69 (1991) Where a law is capable of two interpretations, one in favor of centralized power in Malacaang and the other beneficial to local autonomy, the scales must be weighed in favor of autonomy. Thus, when the Civil Service Commission interpreted the recommending power of the Provincial Governor in the selection of a Provincial Budget Officer as purely directory, it went against the constitutional provisions on local autonomy. The Secretary of the Department of Budget and Management must appoint only from the list of qualified recommendees nominated by the Governor. If none is qualified, he must return the list of nominees to the Governor explaining why no one meets the legal requirements and ask for new recommendees who have the necessary eligibilities and qualifications. Basco v. PAGCOR, 197 SCRA 52 (1991) NOTE: (fr. San Juan v. CSC) Starting from the Petitioners assail the constitutionality of PD 1869, which created PAGCOR, on several grounds, among which is that it waived and infringed the right of the Manila City govt to impose taxes and license fees. declared constitutional. The SC stated that Manila City, being a mere municipal corporation, has no inherent right to impose taxes. Its charter must plainly show an intent to confer that power of the municipality cannot assume it. Under the 1987 Constitution, its power to tax must always yield to the limitations provided by Congress, which has the inherent power. In this case, the exemption PD 1869 was 1935 Constitution, the Presidents power over LGUs is clearly limited to general supervision while he exercises control over executive departments. Supervision goes no further than out of LGUs. It is not a decentralization of power but merely a devolution of national administration. It is subject to the Note that the guiding star of the legislature.

immediately upon its ratification by a majority of the votes cast in a plebiscite held for the purpose. The act of ratification is the act of voting by the people, which is the date of the plebiscite. canvass during of the votes date thereafter of the is merely and The the the

mathematical confirmation of what was done plebiscite proclamation of the President is merely the official confirmatory declaration of the act of the people in adopting the Constitution when they cast their votes on the date of the plebiscite.

local autonomy is not self-executing as it is subject to the passage of a LGC, local tax law, among others. The Constitution even allowed Congress to include in the LGC provisions for the removal of local officials suggesting Congress may exercise removal powers and delegate this exercise to the President. While the Constitution left the President mere supervisory powers, this does not exclude necessarily the power of investigation or removal. The power of investigation or removal is not inconsistent with the power of supervision/overseeing. Thus, the argument that the Constitution repealed Sec. 61 and 62 of the LGC is untenable.

overseeing; it is the power/authority to see to it that subordinate officers perform their duties. Should there be failure or neglect to fulfill these duties, the superior by law officer to make may take steps prescribed them perform.

Control is the power of an officer to alter, modify or nullify or set aside what a subordinate had done in the performance of their duties and substitute the judgment of the former for that of the latter. (citing Hebron v. Reyes)


8granted in PD 1869 can be construed as a limitation of the LGUs power. Moreover, the power of Manila City to impose license fees has long been revoked the power to regulate gambling has been vested exclusively in the National Govt. The principle of local autonomy simply means decentralization. As to what powers should be decentralized to LGUs is a matter of policy and wisdom of Congress (political question). Lastly, LGUs have no power to tax PAGCOR of is instrumentalities of the National Govt. dual roles: the operation The and Merger of Administrative Regions; Autonomous Regions Abbas v. COMELEC, 179 SCRA 287 (1989) Petitioners sought to declare RA 6734, providing for an organic act for the Autonomous Region in Muslim Mindanao, unconstitutional and to restrain the COMELEC from conducting plebiscites for the creation of the autonomous region, based on the ff. grounds: RA 6734 violates the Constitution which makes the creation of the region dependent on the outcome of the plebiscite by making its creation absolute and automatic; it grants the President the power to NOTE: Supremacy of the National Govt. A merge regions, a power not granted by the Constitution RA 6734 was declared constitutional. Its reference to the provisions of the Constitution which set forth the necessary conditions for the creation of the autonomous region and the inclusion of a specific provision incorporating Magtajas v. Pryce Properties Corp., 234 SCRA 255 (1994) Ordinances prohibiting the issuance of business permits to or canceling the permits of, establishments allowed to be used for the operation of casinos and prohibiting the operation of casinos in the city are not valid. These only ordinances violate PD 1869, which is a statute. LGUs are only agents of the National Govt. exercising delegated legislative powers. The delegate cannot be superior to the principal. This basic relationship is not weakened by the policy of local autonomy. Congress retains control of LGUs although in a reduced degree. Section 458 of the LGC cannot be relied on to sustain the validity of the ordinances. gambling which is not prohibited by law. It A only authorizes LGUs to prevent or suppress reading of the entire repealing clause of the LGC will show that there is no express repeal of PD 1869. There is also no implied repeal since this is not favored, and because Congress recognized PAGCOR as a source of funding in two later enactments. the be substantially the same requirements in the Constitution clearly indicates that the creation of the region will take place only in accord with ff. the constitutional requirements: creation shall take effect when approved by a majority of the votes cast by the constituent units is a plebiscite; provinces act shall and be cities included while where in a the those majority vote in favor of the organic autonomous region, political subdivision cannot regulate a federal instrumentality in such a way as to prevent it from consummating its federal responsibility or seriously burden it in its accomplishment of its objectives. Scope of Application LGC Section 4 (supra)

is a GOCC with an original charter, performing regulation role gambling casinos. latter

governmental, placing it in the category of an agency or instrumentality of the govt.

provinces and cities where a majority is not attained shall not be included; single an plebiscite autonomous shall region be in determinative of (a) WON there shall Mindanao and (b) which provinces and cities shall comprise it. As to the 2nd ground, the merger of administrative regions, referred to in the statute, is merely the grouping of contiguous provinces for administrative purposes. Administrative regions And though are not territorial and political subdivisions like provinces, cities and municipalities.


9the power to merge administrative regions is not expressly provided for in the Constitution, it is a power which has traditionally been lodged with the President to facilitate the exercise of power of general supervision of local governments. NOTE: The majority vote required by the empted Congress from its task of enacting an organic act and created an autonomous region in the Cordillera. EO The SC held that there was no provides for transitory It preemption of Congress. merely measures in anticipation of the enactment of an organic act and the creation of the region. Constitution for the creation of an autonomous region is a simple majority of votes approving the Organic Act in individual constituent units and not a double majority of the votes in all constituent units put together, as well as in the individual constituent units. Chiongbian v. Orbos, 245 SCRA 253 (1995) Pres. Aquino issued EO 429 providing for the reorganization of the administrative regions in Mindanao. Petitioners assail the validity of the EO claiming that no law authorizes the President to pick certain cities and provinces within the Ordillo v. COMELEC, 192 SCRA 100 (1990) The sole province of Ifugao cannot validly constitute the Cordillera Autonomous Region. The key words in Article X, Section 15 of the Constitution, provinces, cities, municipalities and subsequent geographical areas, connote that a region is to be made up of more than one constituent unit. The term region as used in its ordinary sense means two or more provinces. Ifugao is a province by itself. To become part of a region, it must join other provinces, cities, municipalities and geographical areas. Badua v. Cordillera Bodong Administration, 194 SCRA 101 (1991) The tribal court does not have jurisdiction to try a case involving a dispute over land. Due to the rejection of the creation of a Cordillera Autonomous Region, the tribal court was not NOTE: groupings Administrative of purposes, regions not are for mere for political constituted into an indigenous or special court under RA 6676 (providing for the creation of the autonomous region). The tribal court does not Like the pangkat or possess judicial power as it is not a part of the Philippine judicial system. Cordillera Broad Coalition v. COA, 181 SCRA 495 (1990) Petitioners assail the constitutionality of EO 220 which created the Cordillera Administrative Region (CAR) on the ground that, by issuing the EO, the President virtually preconciliation panels created by the Katarungang Pambarangay, it is an advisory and conciliatory body whose primary purpose is to bring parties to a compromise. contiguous provinces existing regions, some of which did not even take part in the plebiscite, and restructure them into new administrative regions. The creation The SC held said and power is executive in character. reorganization of administrative regions by the President is pursuant to authority granted to her by law (RA 5435, which authorized the President to reorganize executive departments). In conferring the power to merge, Congress merely followed the pattern set by previous legislation. The SC reiterates the Abbas doctrine that the power to merge by the President is similar to the power to adjust municipal boundaries which was described as executive in nature in the Pelaez case. Thus, there is no abdication by Congress of its legislative power. prepares the ground for autonomy. The CAR was created merely for purposes of administrative coordination as it consolidates and coordinates the delivery of services of line departments and agencies of the National Government in the areas covered by the administrative region. Moreover, subsequent to the EO, Congress passed RA 6658 which created the commission tasked to prepare the draft of the organic act, thus strengthening the conclusion that the President, through the EO did not preempt Congress.

administrative representation.


10Rules of Interpretation LGC Section 5 Greater Balanga Development Corp. v. Balanga, 239 SCRA 436 (1994) The Sangguniang Bayan passed a resolution annulling the mayors permit issued to the petitioner. The petitioner contends that it has not violated any law or ordinance to warrant the revocation of its permit and that the issuance of the resolution was a quasi-judicial act and not the mere exercise of police power. The Court found in favor of the petitioner. The power of municipal corporations are to be construed in strictissimi juris and any doubt or ambiguity must be construed against the municipality. While the Sanggunian has the power to regulate and prescribe conditions under which the municipal license may be revoked, the anxiety, uncertainty, restiveness among the stallholders as stated in the resolution cannot be valid grounds for revocation. NOTES: and upgrade the quality of life for the people of the community. Indispensable decentralization devolution. includes under to the the policy of is Constitution

One of the devolved powers is the This necessarily ordinances to enactment of

enforcement of fishery laws. the

effectively carry out the fishery laws within municipal waters. To be able to effectively realize these powers, provisions on LGUs should be given liberal interpretation and any doubt should be resolved in favor of devolution. Any fair and reasonable doubt as to the existence of the power shall be interpreted in favor of the LGU.

Local autonomy: power of LGUs to decide for themselves certain matters without need for clearance or approval by the national government

Tano v. Socrates, 278 SCRA 154 (1997) The Sangguniang Panlungsod of Puerto Princesa enacted an ordinance which banned the shipment of all live fish outside the city.

Decentralization:

devolution

of

national

administration (not power) from the national government to the LGUs Decentralization Administration Delegation central administrative by govt the of of Decentralization Power Abdication declared autonomous. of to political be In this power in favor of LGUs of

Petitioners assailed its constitutionality on the grounds of lack of due process, deprivation of livelihood and undue restriction from the practice of their trade. On the other hand, public respondents contend that the ordinance is a valid enactment under the General Welfare Clause (Sec. 16) of the LGC, and pursuant to its specific power to protect the environment. The SC upheld the ordinance as valid under the General Welfare Clause. In connection with this, Sec. 5(c) of the LGC provides for the liberal interpretation of the general welfare provisions of the Code, to give more powers to the LGUs in accelerating economic development

powers

to political subdivisions in order to broaden the base of govt power (Limbona v. Mangelin)

case, the autonomous govt is free to chart its own destiny and shape its future with minimum intervention

from central authorities (Limbona v. Mangelin) Local government units Autonomous regions

Deconcentration: flow of autonomy from the national agencies government towards regional

the transfer of power and authority from the National Government to LGUs to enable them to perform specific functions and responsibilities (Art. 24, IRR of the LGC)

Devolution: government

act

by

which power

the and

national authority

confers

upon the various LGUs to perform specific functions and responsibilities (LGC, Sec. 17)


11B. General Powers and Attributes Creation of Local Government Units 1987 CONSTITUTION, Article X Sections 1, 7, 10, 11, 15, 16, 19 (supra) LGC Sections 6-10 Province LGC, Secs. 460461 Average annual income, as certified by the Department of Finance, of not less than P20,000,000 based on 1991 constant prices Municipality LGC, Secs. 441442 Average annual income, as certified by the provincial treasurer, of at least P2,500,000.00 for the last two consecutive years based on 1991 constant prices 2,000 inhabitants 5,000 inhabitants, in cities and municipalities within MM and other metropolitan political subdivisions or in highly urbanized cities Territory need not be contiguous if it comprises 2 or more islands (For creation of specific LGUs, check LGC 385386, 441-442, 449-450, 460-461; SEE TABLE FOR SUMMARY)

Requirements

City RA 9009 (2001) Average anual income, as certified by the Department of Finance, of at least P100,000,000 for the last 2 consecutive years based on 2000 constant prices

Barangay LGC, Secs. 385-386

Income

Population

250,000 inhabitants

150,000 inhabitants

25,000 inhabitants

contiguous territory of at least 2,000 km2

contiguous territory of at least 100 km2

contiguous territory of at least 50 km2

Territory

territory need not be contiguous if it comprise 2 or more islands or is separated by a chartered city or cities which do not contribute to the income of the province

requirement on land area shall not apply where the city proposed to be created is composed of 1 or more islands; the territory need not be contiguous if it comprises 2 or more islands

requirement on land area shall not apply where the municipality proposed to be created is composed of 1 or more islands; territory need not be contiguous if it comprises 2 or more islands


12By law or by an ordinance of the sangguniang panlalawigan or panlungsod; case of the creation of barangays by the sangguniang panlalawigan, the recommendation of the sangguniang bayan concerned shall be necessary By an Act of Congress, to enhance the delivery of basic services in the indigenous cultural communities Plebiscite (in LGUs directly affected) Approval must be by majority of the votes cast; except otherwise provided in the Act of Congress, the plebiscite shall be held within 120 days from the date of its effectivity and cities, the Approval must be by majority of the votes cast; except otherwise provided in the Act of Congress, the plebiscite shall be held within 120 days from the date of its effectivity Approval must be by majority of the votes cast; except otherwise provided in the Act of Congress, the plebiscite shall be held within 120 days from the date of its effectivity Approval must be by majority of the votes cast; plebiscite shall be held within such period of time as may be determined by the law or ordinance creating said barangay

Manner of Creation

By an Act of Congress



without observing the standards prescribed For provinces income by the LGC shall not be entitled to any share of the taxes that are allotted to the local governments units under the provisions of the Code. (Art. VI, Sec. 19; RA 9054, 2001) As to the income shall requirement, include the average income holding of a plebiscite to determine the will of the majority of the voters of the areas affected by the creation, division, merger, or whose boundaries are being altered shall be observed Division and merger of existing LGUs shall comply with the same requirements prescribed for their creation however, such division the income, population, LGUs concerned to less requirements prescribed should not reduce or land area of the than the minimum in the LGC

requirement must be satisfied and EITHER population OR territory

annual

income

accruing to the general fund, exclusive of special funds, transfers, and non-recurring income The Regional Assembly of the ARMM may prescribe mandated the standards by the lower LGC of in than the those creation, cities,

division, merger, abolition, or alteration of boundaries provinces, municipalities, or barangay. Provinces, cities, municipalities, or barangay created, divided, merged, or whose boundaries are altered

the income classification of the original local government unit or units should not


13fall below its current classification prior to such division. Territory should be properly identified by metes and bounds with technical descriptions Creation Padilla v. COMELEC, Oct 19, 1992 It stands to reason that when the law states that the plebiscite shall be conducted in the political units directly affected, it means that the residents of the political entity who would be economically dislocated by the separation of a portion thereof have the right to vote in said plebiscite. What is contemplated by the phrase political units directly affected is the plurality of political units which would participate in the plebiscite. Torralba v. Sibagat, 147 SCRA 390 (1987) The petitioners challenge the constitutionality of BP Blg. 56, creating the Municipality of Sibagat. They contend that under the 1973 Constitution, a Local Government Code must first be enacted to determine the criteria for the creation, division, merger, abolition or substantial alteration of the boundary of any province, city, municipality or barrio; and since there was no LGC when the said BP was passed, the latter could not have complied with any such criteria, making the BP null and void. BP Blg. 56 was upheld. The Constitution does not require that the enactment of the Local Government Code is a condition sine qua non for the creation of a municipality. Before the enactment of such Code, the legislative power to create municipal corporations remains plenary except that said creation should be approved by the people concerned in a plebiscite called for the purpose. NOTE: power It is a long-recognized principle that the to create a municipal corporation is Pelaez v. Auditor General, 15 SCRA 569 (1965) In 1964, the President, purporting to act pursuant to Section 68 of the Revised Administrative Code, issued several EOs creating 33 municipalities. and void. Whereas the power to fix a common boundary, in order to avoid or settle conflicts of jurisdiction between adjoining municipalities, may partake of an administrative nature involving the adoption of means and ways to carry into effect the law creating said municipalities the The SC declared the EOs null Cawaling v. COMELEC, Oct. 26, 2001 Petitioners question the validity of RA 8806, which created the City of Sorsogon, based on the following grounds: creation of Sorsogon City by merging two municipalities violates Section 450(a) of the LGC which requires that only a municipality or a cluster of barangays may be converted into a component city; it contains two subjects: (a) the creation of the City of Sorsogon, and (b) the abolition the one of the Municipalities one bill of rule Bacon and Sorsogon, in violation of subject, prescribed by the Constitution. RA 8806 is valid. The petitioner is not assailing the non-compliance with the criteria set by the Local Government Code, but the mode of its creation. The phrase A municipality or a cluster of barangays may be converted into a component city is not a criterion but simply one of the modes by which a city may be created. The creation of an entirely new local government unit through a division or merger of existing local government Constitution, division shall units is recognized that with such the under merger the or provided comply

requirements

prescribed by the Code. As to the 2nd ground relied upon, the SC ruled that the abolition of the corporate existence of the Municipalities of Bacon and Sorsogon due to their merger is not a subject separate and distinct from the creation of Sorsogon City, but the logical, natural and inevitable consequence of the merger.

essentially legislative in nature. In the absence of any constitutional limitations, a legislative body may create any corporation it deems essential for the more efficient administration of government.


14authority to create municipal corporations is essentially legislative in nature. Section 68 does not meet the standards for a valid delegation. It does not enunciate a policy nor give a sufficient standard for the exercise of the power, making such grant of authority a virtual abdication of the powers of Congress in favor of the Executive. Moreover, the authority to create municipal corporations granted by Section 68 would give the President the power of control over local governments, Constitution. De Facto Corporations Malabang v. Benito, 27 SCRA 533 (1969) The Municipality of Balabagan was created through an EO, which was subsequently declared invalid by the Pelaez ruling. Petitioners bring an action to restrain the respondent municipal officials (of Balabagan) from performing the functions of their offices. On the other hand, the respondents claim that although the EO was void, Balabagan is at least a de facto corporation, having been organized under color of a statute before this was declared unconstitutional, and that as a de facto corporation, its existence cannot be collaterally attacked. The SC ruled that the Municipality of Balabagan is not a de facto corporation since there can be no color of authority in an unconstitutional statute. An unconstitutional act Municipality of Candijay v. CA, 251 SCRA 695 (1994) The Municipality of Candijay assails the juridical personality of the Municipality of Alicia to present evidence in a separate case. Candijay claims that the EO which created Alicia is void, inasmuch as said EO was issued pursuant to Sec. 68 of the Revised Administrative Code which was declared unconstitutional in the Pelaez ruling. The SC ruled that the Municipality of Alicia is a de jure municipality, pursuant to the ruling in the San Narciso case. Not only was Alicia created 16 years prior to the ruling in Pelaez, but its existence was also recognized through various governmental acts. Municipality of Jimenez v. Baz, 265 SCRA 182 (1996) Municipality of San Narciso v. Mendez, 239 SCRA 11 (1994) In 1959, EO 353 created the municipal district of San Andres by segregating certain barrios from the Municipality of San Narciso. Fiver years later, San a another Andres petition EO as for a quo was 5th issued, class recognizing municipality. Narciso filed The claim of the Municipality of Jimenez that Sec. 442 of the LGC is invalid because it does not conform to the constitutional requirement for the holding of plebiscites in the creation of new municipalities will not hold. Said requirement applies only to new municipalities created for the first time under the Constitution and cannot be applied to municipal corporations created before. which is violative of the contending that EO 353 is void for being a usurpation of legislative powers. SC ruled that the petition was not seasonably brought, being filed only 30 years after the creation of the municipality of San Andres. Granting that the EO was void, San Andres is still considered to have attained at least a status closely approximating that of a de facto corporation. continued The State itself recognized the of San Andres when itth

existence

classified it as a 5

class municipality.

More The

importantly, Sec. 442 (d) of the LGC cured whatever defect there was in its creation. said provision states that municipal districts

organized pursuant to presidential issuances or executive orders and which have their respective sets of elective municipal officials holding office at the time of the effectivity of the Code shall henceforth be considered as regular municipalities.

confers no rights, imposes no duties, affords no protection and creates no office. However, even if the EO was invalid, it does not mean that the acts done by the municipality of Balabagan in the exercise of its corporate powers are a nullity. This is because the existence of the EO is an operative fact which cannot justly be ignored.

In 1989, the Municipality of San warranto


15NOTE: In this case, the Court also held that the power of provincial boards to settle boundary disputes is limited to implementing the law creating a municipality. does not have the Thus, provincial boards authority to approve certitude the territorial jurisdiction of a local government unit. Thus, Congress maintained the existing boundaries of the proposed City of Makati but made them subject to the ultimate resolution by the courts in the boundary dispute between Makati and Taguig. City of Pasig v. COMELEC, 314 SCRA 179 (1999) Tobias v. Abalos, 239 SCRA 106 (1994) Petitioners assail the constitutionality of RA 7675, which converted the Municipality of Mandaluyong into a Highly Urbanized City. SC dismissed the petition. The creation of a separate congressional district for Mandaluyong is not a subject separate and distinct from the subject of its conversion into a highly urbanized city but is a natural and logical consequence of its conversion into a highly urbanized city. The Constitution does not require the title to fully index or catalogue all the contents and minute details in the law. Moreover, that there is no mention of any census to show that Mandaluyong and San Juan had each Miranda v. Aguirre, 314 SCRA 603 (1999) RA 7720 converted the municipality of Santiago into an independent component city. It was ratified by people in the plebiscite. Subsequently, RA 8528 was enacted, changing the status of Santiago from an independent Mariano v. COMELEC, 242 SCRA 211 (1995) RA 7854, converting the Municipality of Makati into a Highly Urbanized City, is being assailed for not properly identifying the land area or territorial jurisdiction of Makati by metes and bounds, in violation of Art. X of the Constitution. The SC ruled that the requirement on metes and bounds was meant merely as a tool in the establishment of local government units. So long as the territorial jurisdiction of a city may be reasonably ascertained, the intent behind the law (i.e., the determination of the territorial A jurisdiction over which governmental powers may be exercised) has been sufficiently served. cadastral type description is not necessary. NOTE: In this case, the Court also held that the existence of a boundary dispute does not per se present an insurmountable difficulty which will prevent Congress from defining with reasonable component city to a component city. Petitioners assail the constitutionality of RA8528, alleging that it does not provide for the ratification in a plebiscite. The SC held that there is merit in the petition. The Constitution provides that no province, city, municipality or barangay may be created, or divided, merged, abolished, or its boundaries substantially altered except in accordance with the criteria in the LGC and subject to approval by a majority of the votes cast in a plebiscite in the political units directly affected. division, The question is whether or not the merger, Notice the abolition, common or substantial is downgrading falls within the meaning of creation, alteration of boundaries. denominator material change in the political and economic rights of the LGUs directly affected as well as the people therein. It is therefore but reasonable to attained the minimum requirement of 250,000 inhabitants to justify their separation does not suffice to strike down the validity of the statute. It is not required that all laws must contain all relevant data. The A requisite for the creation of a barangay is for its territorial jurisdiction to be properly identified by metes and bounds or by more or less permanent natural boundaries. Because territorial jurisdiction is an issue raised in the pending civil case, until and unless such issue is resolved with finality, to define the territorial jurisdiction of the proposed barangays would only be useless. of a LGU. The boundaries must be clear for It can legitimately exercise power of they define the limits of the territorial jurisdiction government only within the limits of its territorial jurisdiction. Beyond these limits its acts are ultra vires.

agreements which in effect amend the boundary stated in the creating statute.


16require the consent of the people to be affected as part of democracy. will be placed of and the under ordinances The downgrading of the will administrative governor, have to (b) be Santiago will result in the ff: (a) the city mayor supervision resolutions provincial Income Alvarez v. Guingona, 252 SCRA 695 (1996) IRAs form part of the income of LGUs. A LGU is a political subdivision of the State which is constituted by law and possessed of substantial control over its own affairs. Understandably, the vesting of duty, responsibility and accountability in every LGU is accompanied with a provision for reasonably adequate resources to discharge its powers and effectively carry out its functions. The funds generated from local taxes, IRAs and national wealth utilization proceeds accrue to the general fund of the LGU and are used to finance Samson v. Aguirre, 315 SCRA 53 (1999) Challenge to the constitutionality of RA 8535 is without merit. Compliance with population OR land area, in addition to income, is sufficient to satisfy the requirements in the creation of a city. In this case, both the population and income requirements were met. Thus, there is no need to consider the land area of the LGU. NOTES: Abolition Sarangani v. COMELEC, 334 SCRA 379 (2000) A barangay may officially exist on record and the fact that nobody resides in the place does not result in its automatic cessation as a unit of local government. Under the LGC, the abolition of a LGU may be done by Congress, in the case of a province, city or municipality, or any other political subdivision. In the case of a barangay, except in the Metro Manila area and in cultural communities, it may be done by the Sangguniang Panlalawigan or Sangguniang Panglungsod concerned subject to the mandatory requirement of a plebiscite conducted for the purpose in the political units affected. Salva v. Makalintal, Sept. 18, 2000 The issuance of a resolution, governing the conduct of a plebiscite, is a ministerial duty of the COMELEC after it ascertains the issuance of the ordinance and resolution declaring the In the creation of barangays, there is no minimum requirement for area and income. Purpose legislative of plebiscite: to favor to a prevent particular gerrymandering (i.e. the practice of creating districts candidate or party) and creation or abolition of units for purely political purposes its operations subject to specified modes of spending the same as provided for in the LGC and its implementing rules and regulations. As such, for purposes of budget preparation, which budget should reflect the estimates of the income of the LGU, among others, the IRAs and the share in the national wealth utilization proceeds are considered items of income.

reviewed by the provincial board, (c) taxes will have to be shared with the province. If RA 7720, which upgraded Santiago, had to be approved through a plebiscite, theres more reason to consult the people when a law substantially diminishes their rights.

Where a plebiscite was held with its principal subject being the conversion of the municipality of Mandaluyong into a highlyurbanized city and the matter of separate district representation being merely ancillary thereto, the SC held that the exclusion of the inhabitants of San Juan (who belonged to the same congressional district as Mandaluyong) from the plebiscite was proper. Abalos) (Tobias v.

When the inquiry is focused on the legal existence of a body politic, the action is reserved to the State in a proceeding for quo warranto or any other direct proceeding. proceeding must be brought in the name of the Republic of the Philippines and

abolition of a LGU. It is a duty enjoined by law as part of the COMELECs administrative functions and involves no exercise of discretionary authority on the part of COMELEC.


17commenced by the Sol-Gen or the fiscal when directed by the President of the Philippines must be timely raised (Municipality of San Narciso v. Mendez) Sub-Provinces 1987 CONSTITUTION, Art XVIII Section 9. LGC Section 462 Grio v. COMELEC, 213 SCRA 672 (1992) The ballots used for the plebiscite did not provide any space for the election of provincial officials in the event that there is no conversion from sub-province to province, leading to the disenfranchisement of the people of the subprovince. The ballots were printed in accordance with the LGC, which itself is incomplete as it only provides for the eventuality where the people would vote affirmatively for the conversion of the sub-province into a province, in which case the President would fill up the position of governor of the newly created province through appointment. The law is silent on whether the voters of the sub-province proposed to be converted into a regular province shall no longer be allowed to vote for the provincial officials in the election held simultaneously with the plebiscite. The law however is clear that in case of a negative vote, the elected officials of the subprovince only shall be appointed by the President. The law did not provide that the President shall also of appoint the provincial officials shall of the to subbe province because, by a negative vote, the people sub-province continue represented by the provincial official. Selection and Transfer of Local Government Site LGC Section 11 Samson v. Aguirre, 315 SCRA 53 (1999) The failure of RA 8535 (creating the city of Novaliches) to specify the seat of government of the proposed City of Novaliches as required by Sec. 11 (a) of the LGC is not fatal to its validity. Under Sec. 12 of the LGC, the city can still establish a seat of government after its creation. While Sec. 12 speaks of the site of government centers, such site can very well also be the seat Lidasan v. COMELEC, 21 SCRA 496 (1967) Municipal functions. corporations they perform serve as twin an Firstly, Vilas v. City of Manila, 42 Phil 953 (1911) Plaintiff was a creditor of the City of Manila as it existed before the cession of the Philippine Islands to the United States. The action was brought upon the theory that the city, under its present charter from the Government of the Philippine Islands, was the same juristic person, and liable upon the obligations of the old city. The City was held liable since the juristic identity of the corporation was not affected, and the present city is, in every legal sense, the successor of the old. As such it is entitled to the property and property rights of the predecessor corporation, and is also subject to all of its liabilities. Barangay No. 24 v. Imperial, 338 SCRA 694 (2000) A local government unit is a juridical person subject to the payment of docket fees within the prescribed period for the perfection of an appeal. The LGU is bound by the failure of its counsel to make such payment. Political and Corporate Nature of Local Government Units LGC Sections 5d, 18 of government, from where governmental and corporate service shall be delivered.

instrumentality of the State in carrying out the functions of a government. Secondly, they act as an agency of the community in the administration of local affairs. It is in the latter character that they are a separate entity acting for their own purposes and not a subdivision of the State. Torio v. Fontanilla, 85 SCRA 599 (1978) Municipality a stage collapsed. was sued for damages arising from a death during a town fiesta wherein The municipality invoked the defense that the holding of a town fiesta was an exercise of its governmental function from which no liability can arise to answer for the negligence of any of its agents. The councilors maintained


18that they merely in acted as out agents the of the unless specific authority is vested upon them by Congress. but it One example of this authority is the be read in consonance with power to close roads under Sec. 10 of the LGC should established laws, like the Civil Code. NOTES: Examples of governmental activities: regulations against fire, disease preservation of public peace maintenance of municipal prisons establishment of schools, post offices, etc. Examples activities: municipal waterworks slaughterhouses markets City of Manila v. IAC, 179 SCRA 428 (1989) City is sued for damages by widow for the transfer of the remains of her husband from the North Cemetery to a warehouse, without giving her notice. The City was held liable. With respect to proprietary functions, the rule is that a municipal corporation can be held liable to 3rd persons ex contractu. their subordinates. And the superior or employer is liable for the acts and omissions of In the absence of a special law, the North Cemetery is a patrimonial property of the City, created by a resolution of the municipal board. Its administration is under the City health officer. Furthermore, it is the City Hence with Difference Between the Political Nature and Corporate Nature of LGUs Political/Governmental Political subdivision of national government Corporate/Municipal Corporate entity representing inhabitants of its territory Administering the powers Macasiano v. Diokno, 212 SCRA 464 (1992) The Municipality of Paraaque passed an ordinance which closed several streets in Baclaran and established a flea market thereon. The SC declared the ordinance invalid as the disputed areas are public streets, and as such are outside the commerce of men (CC, Art. 424) Therefore, they may not be subject of lease or other contract. LGUs have no authority whatsoever to control or regulate the use of public properties of state and promoting public welfare Includes the legislative, judicial, public and political LGU cannot be held liable Except: if statute provides otherwise Art. 2189, CC Exercised for special benefit and advantage of the community Includes those which are ministerial, private and corporate Can be held liable ex contractu or ex delicto which prescribes procedure and guidelines for the use and disposition of burial lots. proprietary character. provision damages. entitles the these acts of dominion, the City owns it in its A breach of contractual aggrieved party to stables bathing establishments wharves ferries fisheries maintenance of parks, golf courses, cemeteries, airports holding of a town fiesta of proprietary/corporate municipality ordinance. The SC ruled that the holding of a town fiesta is a proprietary function, though not for profit, for which a municipality is liable for damages to 3rd persons ex contractu or ex delicto; that under the principle of respondeat superior the principal is liable for the negligence of its agents acting within the scope of their assigned tasks; and that the municipal councilors have a personality distinct and separate from the municipality, hence, as a rule they are not coresponsible in an action for damages for tort or negligence unless they acted in bad faith or have directly participated in the commission of the wrongful act. carrying municipal


19compulsion to purchase a ticket. General Welfare Clause LGC Section 16 (See Secs. 391, 447, 458, 468 of the LGC for the specific powers and functions of the different sanggunians) US v. Salaveria, 39 Phil 103 (1918) It is a general rule that ordinances passed by virtue of the implied power found in the general welfare clause must be reasonable, consonant with the general powers and purposes of the corporation and not inconsistent with the laws or policy of the State. ordinance to be in this case, or The questioned which prohibited Its Villanueva v. Castaeda, 154 SCRA 142 (1987) In 1961, the municipal council of San Fernando authorized some merchants to construct permanent stalls and sell along a public street. In 1982, the incumbent mayor issued a resolution requiring the demolition of the stalls. prevent the demolition. petition. The problems caused by the usurpation of the place by the merchants, such as obstruction of traffic and deteriorated sanitation, Viray v. Caloocan, 20 SCRA 791 (1967) Caloocan issued an ordinance imposing fees on each cadaver coming from other places or buried in private cemeteries within the city, and for the exhumation of a dead person. ordinance Autonomy was Act, declared which void. The cities empowers The Local and Binay v. Domingo, 201 SCRA 508 (1991) The Municipality of Makati approved a resolution providing a burial service to be taken out of the unappropriated funds. This resolution was held valid. The police power of a municipal corporation extends to all the great public needs, and, in a broad sense includes all legislation and almost every function Public of the municipal is not government. Balacuit v. CFI, 163 SCRA 182 (1988) Butuan City Board passes an ordinance requiring that the sale of tickets to movies, exhibitions or other performances to children between 7-12 years of age should be at half price. The evident purpose of the ordinance is to help ease the burden of cost on the part of parents. The said ordinance was declared void. There is nothing immoral City Government of Quezon City v. Ericta, 122 SCRA 759 (1983) There is no reasonable relation between the setting aside of a portion of all private cemeteries for charity burial grounds of deceased The theater operators are merely conducting their legitimate businesses. children and adults. or injurious in charging the same price for both In fact, no person is under purpose are covered by the police power as delegated to the municipality under the general welfare clause. Moreover, the place in question was declared to be a public plaza, which is beyond the commerce of man and cannot be the subject of lease or any other contractual undertaking. The merchants filed a petition for prohibition to The SC dismissed the It is a totally voluntary act on the part of the purchaser if he buys a ticket to such performances. How can the municipal authorities consider the movies an attractive nuisance and yet encourage parents and children to patronize them by lowering the price of admission for children?

pangingue (a form of gambling), does not seem unreasonable discriminatory. purposes evidently are to improve the morals and stimulate the industry of the people.

municipalities to impose license fees and taxes does not sanction the levy of a cadaver transfer fee since the transfer and burial of the dead is not an occupation, business or a privilege which the city can regulate. discriminates Furthermore, the ordinance coming from places cadavers

outside the city and buried in private cemeteries in violation of the equal protection clause of the Constitution.

unconstitutional merely because it incidentally benefits a limited number of persons. The drift is towards social welfare legislation geared towards state policies to provide adequate social services , the promotion of general welfare and social justice.


20paupers and the promotion of health, morals, good order, safety or the general welfare of the people. The ordinance is actually a taking without just compensation of a certain area from the private cemeteries to benefit paupers who are charges of the municipal corporation. Patalinghug v. CA, 229 SCRA 554 (1994) The declaration of an area as a commercial zone through a municipal ordinance is an exercise of police power to promote the good order and general welfare of the people in the locality. Corollary thereto, the state, in order to promote the general welfare, may interfere with personal liberty, with property and with business and occupations. Thus, persons may be What powers do LGUs have under the general welfare clause of the LGC? Powers expressly granted to the LGU Those Powers powers necessarily implied or therefrom necessary, appropriate, incidental for its efficient and effective governance Those powers which are essential to the promotion of general welfare (LGC, Sec. 16) YOU CANNOT USE THE GENERAL BY WELFARE LAW TO CLAUSE TO JUSTIFY AN ACT YOU ARE NOT SPECIFICALLY PERFORM. AUTHORIZED

subjected to certain kinds of restraints and burdens in order to secure the general welfare of the state and to this fundamental aim of government, the rights of the individual may be subordinated. Rural Bank of Makati Inc. vs. Municipality of Makati, GR 150763, July 2, 2004 The Gen Welfare Clause has 2 branches: first known as the general legislative power which authorizes municipal councils to enact ordinances and make regulations not repugnant to law as may be necessary to carry into effect and discharge the powers and duties conferred upon it by law; second is the police power proper, authorizes the municipality to enact ordinances as may be proper and necessary for the health and safety, prosperity, morals, peace, good order, comfort and convenience of the municipality and its inhabitants, and for the protection of their property. Here, the ordinances imposing the licenses and permits for any business establishments, for purposes of regulation enacted by the municipal council of Makati falls under the first branch. Also, imposition of business tax is part of the power of taxation to create its own sources of revenue vested upon local governments as provided for under BP 337, Sec 8. The implementation of these ordinances is vested in the municipal mayor, the chief executive, as provided for in Sec 141 of the LGC. Hence, the mayor was clothed with authority to form a Task Force headed by Atty. Valero to enforce the ordinances and resolutions, hence the latter could hardly be faulted for performing his official duties. NOTES: Other ordinances/acts deemed valid under the general welfare clause: A municipal ordinance prescribing the zonification and classification of merchandise and foodstuff sold in the public market (Ebona v. Municipality of Daet) A proclamation reserving certain parcels of the public domain for street widening and parking space purposes (Republic v. Gonzales) Condemnation and demolition of buildings found to be in a dangerous or ruinous condition within the authority provided for by municipal ordinances (Chua Huat v. CA) To constitute public use: the public in general should have equal or common rights to use the land or facility involved on the same terms the number of users is not the yardstick in determining whether property is properly reserved for public use or public benefit (Republic v. Gonzales)


21Abatement of Nuisance Under Secs. 447 and 458 of the LGC, the Sangguniang Panlungsod Bayan have the and power Sangguniang to regulate Technology Developers v. CA, 193 SCRA 147 (1991) Mayor Technology padlocked the without premises notice, of for Developers,

activities relative to the use of land, buildings and structures within their jurisdiction in order to promote the general welfare and for said purpose shall declare, prevent or abate any nuisance Estate of Francisco v. CA, 199 SCRA 595 (1991) Respondents cannot seek cover under the general welfare clause authorizing the abatement of nuisances without judicial proceedings. That tenet applies to a nuisance per se, or one which affects the immediate safety of persons and property and may be summarily abated under the undefined Generoso). business. law of necessity (Monteverde v. The storage of copra is a legitimate By its nature, it cannot be said to be If it be a nuisance per It is not per se a

emitting particulate matters hazardous to health. Although matters on pollution are left with the Environment Management Board, the mayor of the town has as much responsibility to protect its inhabitants from pollution, and by virtue of his police power, he may deny the application for a permit to operate a business or otherwise close the same unless appropriate measures are taken to control and/or avoid injury to the health of the residents of the community from the emissions in the operation of the business. Technology Developers v. CA (Motion the EMB for had

Reconsideration) Reconsidered, because primary jurisdiction on all matters pertaining to pollution. Its powers supersede and prevail over any rules and regulations which may have been issued by all other government agencies and instrumentalities on the same subject. And the law provides that once there is a permit issued, then there is a need for a public hearing before any permit may be revoked by the EMB. Thus, the closure is null and void, as it is beyond the mayors ken and competence to review, revise, reverse or set aside a permit to operate which is presumably also issued in accordance with the national development policy of the government.

injurious to rights of property, health or comfort of the community. accidens it may be so proven in a hearing conducted for that purpose. judicial intervention. NOTE: Secs. 447 and 458 of the LGC grant the Sangguniang Bayan and Sangguniang Panlungsod the power to declared, prevent or abate any nuisance. nuisance nuisances The provisions of the Code DO NOT per accidens, need of thus a creating judicial a make a distinction between nuisance per se and presumption that LGUs can abate all kinds of without order. However, the jurisprudence holds that LGUs can abate extrajudicially only nuisances per se. nuisance warranting summary abatement without

Basic Services and Facilities LGC Section 17 Barangay Agricultural support services Municipality Agriculture and fishery extension and on-site research services and facilities Health services Same; health centers and clinics Province Agricultural extension and on-site research services and facilities; organization of farmers and fishermens cooperatives Same, including hospitals and tertiary health services See municipality and province province City See municipality and


22Social welfare services Same Same, including rebel returnees and evacuees, relief operations population development services General hygiene and sanitation Solid waste collection Solid waste disposal system or environmental management system Katarungang pambarangay Maintenance of roads, bridges and water supply systems Infrastructure facilities (e.g. plaza, multipurpose hall) Information and reading center Roads, bridges, communal irrigation, artesian wells, drainage, flood control Municipal buildings, cultural centers, public parks Information services, tax and marketing information systems and public library Satellite or public market Public markets, slaughterhouses Implementation of community-based forestry projects Enforcement of forestry laws, limited to community-based forestry projects, pollution control law, small-scale mining law, mini-hydroelectric projects for local purposes School buildings Pubic cemetery Tourism facilities Police, fire stations, jail Tourism development and promotion programs Same Industrial research and development services Low-cost housing and other mass dwellings Investment support services Inter-municipal telecommunication services Adequate communication and transportation facilities Same Same See municipality and province See municipality and province See municipality and province Same Same Upgrading and modernization of tax information and collection services See municipality and province See municipality and province See municipality and province See municipality and province Similar to those for municipality See municipality and province N/A N/A N/A Same See municipality and province See municipality and province


23LOCAL GOVERNMENT CODE, IMPLEMENTING LLDA charter specifically provides that it shall have exclusive jurisdiction to issue permits for the use of all surface water for an projects or activities in or affecting the said region. On the other hand, the LGC has granted to the municipalities the exclusive authority to grant fishery privileges in municipal waters. The LGC does not necessarily repeal the LLDA charter since there is no express repeal and implied repeals are not favored. Also, the power of the The power of the Municipal Government to issue fishing privileges For purposes of this rule, devolution is only for revenue purposes. LLDA to grant permits is for the purpose of effectively regulating and monitoring activities in the lake region and is in the nature of police power. Land Transportation Office v. City of Butuan, 322 SCRA 805 (2000) LGUs now have the power to regulate the Plaza II vs. Cassion, GR 136809, July 27, 2004 Butuan City government passed a resolution to authorize the mayor to sign a memo of agreement with DSWD to sign a memo of agreement with DSWD to devolve DSWD units to the LGU. Section 17 LGC authorizes the devolution of personnel, assets, and liabilities, records of basic services, and facilities of a national government agency to LGUs. As a consequence of devolution of national agencies, EO 503 was enacted to ensure efficient transfer of responsibilities. Under said EO, devolved personnel shall be automatically reappointed by the local chief executive upon transfer. The chief executive also exercises command responsibility over the personnel. CSC Memo Circular 19 r Ser. 1992 specifies that the positions absorbed by LGUs shall be automatically created upon transfer of budgetary allocation. executive, the mayor Thus, as local chief had th authority to Sources of LGU Funds: 1. Own sources of revenues 2. Taxes, fees and charges which shall accrue exclusively for their use and disposition and which shall be retained by them; 3. Just share in national taxes which shall be and directly released to them automatically 4. Laguna Lake Development Authority v. CA, 251 SCRA 42 (1995) Municipal Government of Laguna had been issuing by fishing the privileges Lake and fishpen permits. adopted Authority. They were issued violating the policies Laguna Development Eminent Domain LGC Section 19. Power to Generate Revenue LGC Section 18 operation of tricycles-for-hire and to grant franchises for the operation thereof. prescribed by the DOTC. However, RULES AND REGULATIONS Section 24. Devolution a) Consistent with local autonomy and decentralization, the provision for the delivery of basic services and facilities shall be devolved from the National Government to provinces, cities, municipalities, and barangays so that each LGU shall be responsible for a minimum set of services and facilities in accordance with established standards. b) shall mean the transfer of power and authority from the National Government to LGUs to enable them to c) perform specific functions and responsibilities. Any subsequent change in national policies, guidelines and standards shall be subject to prior consultation with the LGUs. national policies, guidelines and

this power is still subject to the guidelines Moreover, the newly delegated powers pertain to the franchising and regulatory powers theretofore exercised by the LTFRB and not to the registration of motor vehicles and issuance of licenses for the driving thereof, which powers remain with the LTO.

reappoint devolved personnel as in CAB.

without need of any further action; Equitable share in the proceeds from the utilization and development of the national wealth and resources within their respective territorial jurisdictions including sharing the same with the inhabitants by way of direct benefits;


24rejected. Local Government Payment possession Formal offer needed There must be an ordinance Barangay San Roque v. Heirs of Pastor, 334 SCRA 127 (2000) An expropriation suit is incapable of pecuniary estimation. It does not involve the Rather, it deals recovery of the sum of money. No formal offer needed Province of Camarines Sur v. CA, 222 SCR 173 (1993) The Sangguniang Panlalawigan need not obtain DAR approval to expropriate agricultural land for housing purposes. If it were otherwise, the power of the province to expropriate would be denigrated. exercises It is true that the local government power to expropriate only as the of 15% of value in order to take National Government Assessed value to take immediate possession Being annexed to the complaint, said ordinance is hypothetically admitted as true so that the petition cannot be dismissed for lack of cause of action (due to lack of one of the requirements).

with the exercise by the government of its authority and right to take private property for public use. It should be stressed that the primary consideration in an expropriation suit is whether the government has complied with the requisites of taking of private property. the necessity of of an the Hence, the courts determine the authority of the government entity, expropriation, suit and is the the observance of due process. subject In the main, the

delegated, and that there are restrictions imposed by Congress, but it is complete within its limits. Nowhere in the LGC is it provided that DAR approval is necessary for the conversion of land from agricultural to non-agricultural. Heirs of Ardona v. Reyes, 125 SCRA 220 (1983) At present whatever may be beneficially employed for the general welfare satisfies the requirement of public use. Thus, the petitioner's contention that the promotion of tourism is not "public use" because private concessionaires would be allowed to maintain various facilities

expropriation

governments exercise of eminent domain, a matter incapable of pecuniary estimation. Suguitan v. City of Mandaluyong, 328 SCRA 137 (2000) Section 19 of the LGC requires an ordinance, not a resolution, for the exercise of eminent domain. Such ordinance is necessary to authorize the filing of a complaint with the proper court since, beginning at this point, the power of eminent domain is already being exercised.

such as restaurants, hotels, stores, etc. inside the tourist complex is without merit. Private bus firms, taxicab fleets, roadside restaurants, and other private businesses using public streets and highways do not diminish in the least bit the public character of expropriations for roads and streets. Filstream International Inc. v. CA, 284 SCRA 716

NOTE: An ordinance is a law and it possesses a general and permanent character while a resolution is merely a declaration of opinion and is temporary in nature. City of Cebu v. CA, 258 SCRA 175 (1996) One of the requirements in the exercise of the power of eminent domain is that a valid and definite offer has been previously made to the owner of the property sought to be expropriated, but said offer was not accepted. In this case, the ordinance enacted provided that such offer was made to the owner but was

(1998) Under the Urban Land and Housing Act, there is a priority in expropriation, of which the properties of the government or any of its subdivisions rank number one and privately owned properties ranked last. Also, the said Act provides that expropriation should be the last alternative, acquisition swapping. property. giving like way to other modes of and community mortgage

Otherwise, there is a deprivation of


25City of Manila v. Serrano, June 20, 2001 A writ of execution may be issued by a court upon the filing by the government of a complaint for the expropriation sufficient in form and substance and upon deposit made by the government of the amount equivalent to the assessed value of the property of subject with the writ to of expropriation. requirements, Upon the compliance these MTC had no jurisdiction over expropriation proceedings, the doctrine of res judicata cannot apply in this case. NOTE: ANOTHER IMPORTANT POINT OF THIS CASE Requisites for IMMEDIATE entry of LGU 1. Filing of complaint for expropriation sufficient in form and substance. 2. The deposit of the amount equivalent to 15% of the fair market value of the property to be expropriated based on its current tax declaration. City of Iloilo vs. Legaspi GR 154614, November 25, 2004 Upon compiance with the requirements for immediate entry (see case above), the issuance of a writ of possession becomes MINISTERIAL. NO HEARING Is required for the issuance of the writ. The LGC did not put a time limit as to when a LGU may immediately take possession of the property. As long as the expropriation proceedings have been commenced and the deposit made, the LGU cannot be barred from praying for the issuance of writ of possession.

issuance

possession becomes ministerial. City of Cebu v. Apolonio, May 7, 2002 Although the general rule in determining just compensation in eminent domain is the value of the property as of the date of the filing of the complaint, the rule admits of an exception: where the SC fixed the value of the property as of the date it was taken and not at the date of the commencement of the expropriation proceedings. Finally, while Section 4, Rule 67 of the Rules of Court provides that just compensation shall be determined at the time of the filing of the complaint for expropriation, such law cannot prevail over the Local Government Code, which is substantive law. City of Mandaluyong vs. Aguilar, 350 SCRA 487(2001) The UDHA introduced a limitation on the size of the land sought to be expropriated for socialized housing. It exempted small property owners. The elements for small property owners are: (1) Those owners of real property which consists of residential lands with an area of not more than 300 m2 in highly urbanized cities (800 in other urban cities); (2) That they do not own real property other than the same. Both these elements were present in CAB. NOTE: The UDHA and Expropriation by LGUs Section 9 (which speaks of PRIORITIES In acquisition) should be read in connection with section 10 (MODES of acquisition). If land sought to be expropriated is located in urban areas and falls under the UDHA, the LGU must allege compliance with sections 9 and 10 for their suit to prosper. Otherwise, their suit is premature. Bardillon vs. Masili, 402 SCRA 440 (2003) The first case of expropriation was filed in the MTC but it was dismissed. A second case was filed in the RTC. Bardillon filed a MTD on grounds of res judicata. SC held that dismissal of the MTC case did not constitute res judicata. Since the

Jesus is Lord Christian School Foundation, Inc. vs. Municipality of Pasig, GR 152230, August 9, 2005 A valid and definite offer to acquire the property is necessary prior to the filing of the complaint. Article 35 of the IRR of LGC provides the requirements of a valid offer. The requisites were not met in this case. ARTICLE 35 IRR: 1. THE offer to buy private property for public IT shall use of purpose shall be in WRITING.

specify the property sought to be acquired, the reasons for the acquisition, and the price offered. 2. If the owner/s accept the offer in its entirety, a contract of sale shall be executed and payment forthwith made. 3. If the owner/s are willing to sell their property but at a price higher than that offered to them, the local chief executive shall call them to a conference for the purpose of reaching an agreement on the selling price. The chairman of the appropriation or finance committee of the sanggunian, or in his absence, any member of the sanggunian duly chosen as its representative,


26shall participate in the conference. sale shall be drawn and executed. 4. The contract of sale shall be supported by the following documents: a. Resolution of the sanggunian The the authorizing the local chief executive to enter into a contract of sale. conditions contract. b. c. Ordinance appropriating the amount NOTES: Certification of the local treasurer as specified in the contract, and to availability of funds together with a statement that such fund shall not be disbursed or spent for any purpose other than to pay for the purchase of the property involved. NOTES: Requisites in the Exercise of the Power of Eminent Domain (Suguitan v. City of Mandaluyong): An ordinance is enacted by the local legislative council authorizing the local chief executive, in behalf of the local government unit, to exercise the power of eminent domain or pursue expropriation proceedings over a particular private property. The power of eminent domain is exercised for public use, purpose or welfare, or for the benefit of the poor and the landless. There is payment of just compensation (based on the fair market value at the time of the taking, not at the time of payment), as required under Section 9, Art. III of the Constitution, and other pertinent laws. A valid and definite offer has been previously made to the owner of the property sought to be expropriated, but said offer was not accepted. Reclassification of Lands LGC Section 20 Fortich v. Corona, 298 SCRA 678 (1998) The issue of whether or not the power of the LGU to reclassify lands is subject to the Where approval by a national agency is required for reclassification, such approval shall not be unreasonably withheld. failure to act on a proper and complete application for reclassification within 3 months from receipt of the same shall be deemed as approval thereof Requisites for Reclassification of Land ordinance passed by sangguniang bayan or panlungsod after public hearings conducted for the purpose agricultural land must either: cease to be economically feasible and sound for agricultural purposes as determined by the Department of Agriculture, or have substantially greater economic value for residential, commercial, or industrial purposes, as determined by the sanggunian concerned reclassification shall be limited to the percentages of the total agricultural land area at the time of the passage of the ordinance as prescribed by the LGC to be embodied in Roxas v. CA, 321 SCRA 106 (1999) The agency charged with the mandate of approving or disapproving applications for conversion is the DAR. resolution shall specify the terms and When an approval of the DAR is no longer novel, this having been decided in the case of Province of Camarines Sur v. CA wherein it was held that LGUs need not obtain the approval of the DAR to convert or reclassify lands from agricultural to non-agricultural use. agreement is reached by the parties, a contract of

land use conversion: the act or process of changing the current use of a piece of agricultural land into some other use as approved by the DAR

reclassification: designation of intended use of land within the territory here, the land is not currently used as agricultural, although it is classified as such


27them by the municipality, the latter, as owner, Closure and Opening of Roads LGC Section 21 Cabrera v. CA, 195 SCRA 314 (1991) The provincial council is competent to determine whether or not a certain property (in this case, a provincial road) is still necessary for public use. The provincial board has, after all, the duty of maintaining such roads for the comfort and convenience of the inhabitants of the province. Dacanay v. Asistio, 208 SCRA 404 (1992) A public street is property for public use hence, outside the commerce of man. It may not be the subject of lease or other contract. Such Rabuco v. Villegas, 55 SCRA 656 (1974) Petitioners assail the authority of the Manila Mayor to demolish their houses or eject them as tenants of a parcel of land in Malatek, citing RA 3120 as authority. The lots in question are manifestly owned by the city in its public and governmental capacity and are therefore public property over which Congress has absolute control as distinguished from patrimonial property owned by it in its private or proprietary capacity of which it could not be deprived without due process and without just compensation. Corporate Powers LGC Section 22 NAWASA v. Dator, 21 SCRA 355 (1967) The authority of a municipality to fix and collect rents for water supplied by its waterworks system is expressly granted by law. However, even without these provisions, the authority of the municipality to fix and collect fees from its waterworks would be justified from its inherent power to administer what it owns privately. The municipality enjoys the attributes of ownership under the Civil Code, i.e. the right to use or enjoy the property. NAWASA may regulate and supervise the water plants owned and operated by cities and municipalities, the ownership thereof is vested in the municipality and I the operation thereof, the municipality acts in its proprietary capacity. If a governmental entity, like NAWASA, were allowed to collect the fees that the consuming public pay for the water supplied to Authority to Negotiate and Secure Grants LGC Section 23 Municipal Board of Cebu City v. CTA, 12 SCRA 645 (1964) The city constitutes a political body corporate created by a special charter endowed with the power which pertains to a municipal corporation. As such it is authorized to levy real estate taxes for its support. Moreover, the city can validly appeal the decision of the Board of Assessment of Appeals exempting lots from real property tax, as no entity is more adversely affected by such decision. without just compensation but simply It was as a not an exercise of the power of eminent domain manifestation of its right and power to deal with state property. leases are null and void for being contrary to law. The right of the public to use the city street may not be bargained away through contract. The authorization given for the use of the city street as a vending area for stallholders who were granted licenses by the City Govt contravenes the general law that reserves city streets and roads for public use. It may not infringe upon the vested right of the public to use city streets for the purpose they were intended to serve. would be deprived of the full enjoyment of its property. Province of Zamboanga v. City of Zamboanga, 22 SCRA 133 (1968) If municipality the in property its public is owned by the and governmental

capacity, the property is public and Congress has absolute control ov

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