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    ZPG & ASSOCIATES(Zambales.Pablo.Gonzales)

    LAW ON PUBLIC CORPORATIONS

    A. General Principles

    1. CORPORATIONan artificial being created byoeration of la!" #a$ing t#e rig#t of %&cce%%ion andt#e o!er%" attrib&te% and roertie% e're%%lya&t#ori(ed by la! or incident to it% e'i%tence.a. PUBLIC CORPORATIONone for)ed andorgani(ed for t#e go$ern)ent of a ortion of t#e State.

    2. Classes of Corporation:

    a. Public or Municipala body olitic

    and cororate con%tit&ted byincororation of in#abitant% of city orto!n for &ro%e% of local go$ern)ent

    t#ereof or a% agency of State to a%%i%tin ci$il go$ern)ent of t#e co&ntry* onefor)ed and organi(ed for t#ego$ern)ent of a ortion of t#e State.

    b. Priateone for)ed for %o)e ri$ate

    &ro%e" benefit" ai) or end.

    c. !uasi"Publica ri$ate cororation

    t#at render% &blic %er$ice or %&lie%&blic !ant%.

    d. !uasi"corporation&blic

    cororation% created a% agencie% ofState for narro! and li)ited &ro%e.

    #. $le%ents of Municipal Corporationa. Legal creation or incororationb. Cororate na)ec. In#abitant%d. Territory

    &. 'ual Nature of Municipal Corporation+,$ery local go$ern)ent &nit created or

    organi(ed i% a body olitic and cororate endo!ed!it# o!er% to be e'erci%ed by it in confor)ity !it#la!. A% %&c#" it %#all e'erci%e o!er% a% olitical%&bdi$i%ion of t#e National -o$ern)ent and a% acororate entity rere%enting t#e in#abitant% of it%

    territory.a. Public(Goern%entalit act% a% an

    agent of t#e State for t#e go$ern)entof t#e territory and t#e in#abitant%!it#in t#e )&nicial li)it%* it e'erci%e%by delegation a art of t#e %o$ereigntyof t#e State.

    b. Priate(Proprietar)it act% in a

    %i)ilar category a% a b&%ine%%cororation" erfor)ing f&nction% not%trictly go$ern)ental or olitical* it%tand% for t#e co))&nity in t#ead)ini%tration of local affair%. It act% a%

    a %earate entity for it% o!n &ro%e%and not a% a %&bdi$i%ion of t#e State.

    *. Criterion to +eter%ine ,-et-er corporation ispublic:

    T#e relation%#i of t#e cororation to t#eState" i.e." if created by t#e State a% it% o!n agency to#el t#e State in carrying o&t it% go$ern)entalf&nction%" t#en it i% &blic" ot#er!i%e" it i% ri$ate.

    . 'e acto Municipal Corporation //a cororation t#at )ay e'i%t in fact alt#o&g# notoint of la! beca&%e of certain defect% in %o)ee%%ential feat&re% of it% incororation.

    0. $le%ents of 'e acto Municipal Corporation:a. A $alid la! a&t#ori(ing incororation

    b. An atte)t in good fait# to organi(e&nder it

    c. A colorable co)liance !it# t#e la!d. An a%%&)tion of cororate o!er%

    /. T-ree for%s of +ecentrali0ation:

    a. 'eolution/ i% t#e tran%fer of o!er and

    a&t#ority fro) t#e national go$ern)ent toL-U% a% t#e territorial and olitical%&bdi$i%ion% of t#e State. T#e nat&re ofo!er tran%fer i% olitical and t#e aroac#i% territorial or areal.

    b. 'econcentration/ i% t#e tran%fer of o!er"

    a&t#ority or re%on%ibility" or t#e di%cretionto lan" decide and )anage fro) centraloint or local le$el%" b&t !it#in t#e central ornational go$ern)ent it%elf. T#e nat&re oft#e tran%fer i% ad)ini%trati$e and t#earoac# i% %ectoral.

    c. 'ebureaucrati0ation/ i% t#e tran%fer of

    %o)e &blic f&nction% and re%on%ibilitie%"!#ic# t#e go$ern)ent )ay erfor)" tori$ate entitie% or non/go$ern)entalorgani(ation%* it i% eole% e)o!er)entor articiation in local go$ernance.

    1'ecentrali0ation of A+%inistration" t#e centralgo$ern)ent delegate% ad)ini%trati$e o!er% toolitical %&bdi$i%ion% in order to broaden t#e ba%e ofgo$ern)ent o!er.

    +'ecentrali0ation of Po,er Political'ecentrali0ation3" in$ol$e% abdication of oliticalo!er in fa$or of L-U% declared a&tono)o&%.(Limbonas vs. Mangelin, 170 SCRA 786)

    NOT$:1Local Autono%)" i% %elf/go$erning. It i%

    t#e granting of )ore o!er%" a&t#ority" re%on%ibilitie%

    and re%o&rce% to t#e lo!er or local le$el% of ago$ern)ent %y%te). T#e rincile of local a&tono)y&nder t#e 1230 Con%tit&tion %i)ly )ean%decentrali(ation. It doe% not )a4e t#e localgo$ern)ent %o$ereign !it#in t#e %tate or an 5i)eri&)in i)erio.

    A)ong t#e reg&latory o!er% of t#e National-o$ern)ent Agencie% tran%ferred or de$ol$ed to t#e L-U%

    incl&de t#e follo!ing6

    1. T#e recla%%ification of agric&lt&ral land%/ 7AR to citie%and )&nicialitie%

    8. ,nforce)ent of en$iron)ental la!%/ 7,NR to allL-U%

    9. In%ection of food rod&ct% and :&arantine/ 7O; tocitie% and )&nicialitie%

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    ZPG & ASSOCIATES(Zambales.Pablo.Gonzales)

    =. T#e roce%%ing and aro$al of %&bdi$i%ion lan%/;LURB to citie% and )&nicialitie%

    . T#e oeration of tricycle%/ LT>RB to citie% and)&nicialitie%

    0. T#e e%tabli%#)ent of coc4it% and #olding ofcoc4fig#t%/ P#iliine -a)efo!l Co))i%%ion to citie%and )&nicialitie%

    A%on4 t-e basic serices an+ facilities +eole+ toLGUs inclu+e:

    1. Agric&lt&ral e'ten%ion and on/%ite re%earc# of t#e7eart)ent of Agric&lt&re*

    8. Co))&nity/ba%ed fore%try ro?ect of t#e 7,NR*9. >ield #ealt# and #o%ital %er$ice% and ot#er tertiary

    #ealt# %er$ice% of t#e 7O;*&ll a&tono)y in t#eir e'erci%e of rorietaryrig#t% and )anage)ent of econo)ic enterri%e%.

    ii. >&ll a&t#ority to %ec&re do)e%tic or foreigngrant% !it#o&t t#e aro$al of t#e N-A%concerned" &nle%% t#e%e are ro?ect% !it#national %ec&rity i)lication%" andiii. >inancial &nderta4ing% for L-U% for )&t&alad$antage t#r& loan% and a%%i%tance to cala)ity/%tric4en L-U%.

    B. R.A. 789;Polic) an+ Application< ConstitutionalProisions

    1. $ffectiit)an&ary 1" 1228

    2. =cope of Application =ec. &> RA 7893Alicable to6

    a. all ro$ince%b. citie%c. )&nicialit ie%d. barangay%e. and ot#er oli tical bodie% a%

    )ay be created by la!" andf. to t#e e'tent ro$ided in t#e

    L-C i.e. de$ol&tion of o!er%6/official%/office%" or/agencie% of t#eNational -o$ern)ent

    #. Rules of Interpretation =ec. *> RA 7893a. Any ro$i%ion on a local go$ern)ent &nit%#all be liberally interreted it%fa$or" and in ca%e of do&bt" any :&e%tiont#ereon %#all be re%ol$ed in fa$or ofde$ol&tion of o!er% and of t#e lo!er localgo$ern)ent &nit. Any fair and rea%onabledo&bt a% to t#e e'i%tence of t#e o!er %#all

    be interreted in fa$or of t#e localgo$ern)ent &nit concerned*

    b. In ca%e of do&bt" any ta' ordinance orre$en&e )ea%&re %#all be con%tr&ed %trictlyagain%t t#e local go$t &nit enacting it" andliberally in fa$or of t#e ta'ayer. Any ta'

    e'e)tion" incenti$e or relief granted by anylocal go$t &nit &r%&ant to t#e ro$i%ion% oft#i% Code %#all be con%tr&ed %trictly again%tt#e er%on clai)ing it*

    c. T#e general !elfare ro$i%ion% in t#i%Code %#all be liberally interreted togi$e )ore o!er% to local go$t &nit% inaccelerating econo)ic de$elo)entand &grading t#e :&ality of life for t#eeole in t#e co))&nity.

    d. Rig#t% and obligation% e'i%ting on t#e

    date of effecti$ity of t#i% Code andari%ing o&t of contract% or any ot#er%o&rce of re%tation in$ol$ing a localgo$t &nit %#all be go$erned by t#eoriginal ter)% and condition% of %aidcontract% or t#e la! in force at t#e ti)e%&c# rig#t% !ere $e%ted.

    e. In t#e re%ol&tion of contro$er%ie%ari%ing &nder t#i% Code !#ere no legalro$i%ion or ?&ri%r&dence alie%"re%ort )ay be #ad to t#e c&%to)% andtradition% in t#e lace !#ere t#e

    contro$er%ie% ta4e lace.

    &. 'eclaration of =tate Polic) oer LGU?s=ec. 2> RA 7893

    a. T#e territorial and olitical%&bdi$i%ion% of t#e State %#allen?oy gen&ine and )eaningf&llocal a&tono)y to enable t#e)to attain t#eir f&lle%tde$elo)ent a% %elf/reliantco))&nication% and )a4et#e) )ore effecti$e artner% int#e attain)ent of national goal%.

    b. To en%&re t#e acco&ntability oflocal go$t &nit% t#ro&g# t#ein%tit&tion of effecti$e)ec#ani%)% of recall" initiati$eand referend&).

    c. To re:&ire all national agencie%and office% to cond&ct eriodiccon%&ltation% !it# aroriatelocal go$t &nit%" non/go$ern)ental and eole%organi(ation% and ot#erconcerned %ector% of t#eco))&nity before any ro?ect

    or rogra) i% i)le)ented int#eir re%ecti$e ?&ri%diction%.

    II. INT$R"GO@$RNM$NTAL R$LATION=8. National Goern%ent an+ Local Goern%ent Units

    a. T#e Pre%ident %#all e'erci%e general %&er$i%iono$er L-U%.

    2

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    ZPG & ASSOCIATES(Zambales.Pablo.Gonzales)

    i. T#e Pre%ident %#all e'erci%e%&er$i%ory a&t#ority directly o$erro$ince%" #ig#ly &rbani(ed citie% andindeendent co)onent citie%.

    ii. T#e Pre%ident %#all e'erci%e %&er$i%iono$er co)onent citie% and)&nicialitie%" t#ro&g# ro$ince" and

    o$er barangay% t#ro&g# city and)&niciality. Sec. 8=

    T#e Pre%ident% o!er of general%&er$i%ion o$er L-U% incl&de% t#ea&t#ority to in$e%tigate and i)o%edi%cilinary )ea%&re% %&%en%ion orre)o$al &on electi$e local official%.

    b. General responsibilities of t-e NationalGoern%ent to,ar+s LGUs:

    i. for)&late olicie% and %et %tandard%and g&ideline%

    ii. ro$ide f&nding %&ortiii. a&g)ent ba%ic %er$ice% a%%igned to

    L-U%i$. ro$ide tec#nical and ot#er for)% of

    a%%i%tance and coordinate on t#edi%c#arge of N-A f&nction%

    $. en%&re t#e articiation of L-U% inlanning and i)le)enting nationalro?ect%

    $i. cond&ct )andatory con%&ltation% !it#L-U%

    NOT$:

    +No ro?ect %#all be i)le)ented by go$ern)enta&t#oritie% !it#o&t con%&ltation !it# t#e local go$ern)ent &nit%and rior aro$al of t#e Sangg&nian concerned. Sec.80

    +T#e re:&ire)ent of rior con%&ltation alie% only tonational ro?ect% andDor rogra)% !#ic# are to bei)le)ented in a artic&lar local co))&nity. Alt#o&g#%anctioned by t#e national go$ern)ent" t#e oeration of lotto i%neit#er a rogra) nor ro?ect of t#e national go$ern)ent b&t ofc#aritable in%tit&tion" t#e P#iliine C#arity S!ee%ta4e% Office.T#e ro?ect% and rogra)% )entioned in Sec. 80 %#o&ld beinterreted to )ean ro?ect% and rogra)% !#o%een$iron)ental and ecological effect% are a)ong t#o%e

    )entioned in Sec. 8 and 80 of t#e L-C (Lina vs. Pano, G.R.No. 129093, August 30, 2001).

    c. $tent of t-e LC$?s aut-orit) oer NGAs an+ t-eirfunctionaries:

    i. T#e LC, can call &on any e)loyee%tationed or a%%igned in #i% locality toad$i%e #i) on )atter% affecting t#e L-U a%!ell a% coordinate !it# %aid official%" lan%"rogra)% and ro?ect%.

    ii. T#e LC, can enli%t t#e attendance of t#enational official %tationed in t#e L-U on a)eeting of electi$e and aointed official% oft#e L-U treating )atter% in t#e ro)otion oft#e general !elfare of t#e re%ident%.

    iii. T#e LC, can al%o initiate roer ad)ini%trati$eor ?&dicial action again%t national go$ern)ent official or e)loyee!#o )ay #a$e co))itted an offen%e !#ile %tationed or a%%ignedin t#e L-U.

    Po,er of Control an+ Po,er of General

    =uperision +istin4uis-e+:

    2. Inter"Local Goern%ent Relations

    a. T#e ro$ince" t#ro&g# t#e go$ernor" %#all en%&re t#ate$ery co)onent city and )&niciality act% !it#in it%o!er%.

    b. T#e city or )&niciality" t#ro&g# t#e )ayor" %#all en%&ret#at barangay% act !it#in t#e %coe of t#eir o!er%.

    c. T#e go$ernor %#all re$ie! all e'ec&ti$e order%ro)&lgated by t#e )ayor. T#e )ayor %#all re$ie! order%ro)&lgated by t#e &nong barangay.

    Ba%i% Po!er of Control

    Po!er of-eneral

    S&er$i%ion

    A. a% tonat&re of

    o!erLegi%lati$e ,'ec&ti$e

    B. a% to !#oe'erci%e%t#e o!er

    Congre%%Pre%ident

    a%%i%ted by t#e7IL- Secretary

    C. a% to!#at t#eo!er

    incl&de%

    /creation"con$er%ion of

    L-U% andalteration of it%

    bo&ndarie%*/allocate o!er%"re%on%ibilitie%

    and re%o&rce%a)ong L-U%*/ro$ide for

    :&alification%"election"

    aoint)ent"re)o$al" ter)"%alarie% and

    f&nction% andd&tie% of local

    official%*/ro$ide ot#er

    )atter% relating tot#e organi(ationand oeration of

    L-U%*/a)end)ent of

    c#arter% of L-U%.

    /o$er%ee!#et#er L-U%

    are erfor)ingt#eir d&tie% inaccordance

    !it# la!*/in$e%tigateand i)o%edi%cilinary

    )ea%&re% &onerring electi$e

    localgo$ern)ent

    official%

    3

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    ZPG & ASSOCIATES(Zambales.Pablo.Gonzales)

    T#e Sangg&niang Panlala!igan of a ro$ince re$ie!%all ordinance% enacted by t#e Sangg&niang Panl&ng%od ofco)onent citie% and Sangg&niang Bayan of )&nicialitie%&nder t#eir ?&ri%diction. In t&rn" t#e Sangg&niang Panl&ng%odand Sangg&niang Bayan re$ie! all ordinance% a%%ed by t#eSanng&niang Barangay &nder t#e ?&ri%diction.

    Li4e!i%e" t#e Sangg&niang Panlala!igan of a

    ro$ince e'erci%e% t#e :&a%i/?&dicial f&nction ad)ini%trati$edi%cilinary a&t#ority of #earing and deciding ad)ini%trati$eca%e% in$ol$ing electi$e )&nicial and co)onent city official%&nder t#eir ?&ri%diction. In t&rn" t#e Sangg&niang Panl&ng%odand Sangg&niang Bayan e'erci%e di%cilinary a&t#ority o$erelecti$e barangay official% !it#in t#eir ?&ri%diction.

    #. Relations ,it- People?s Or4ani0ations an+ Non"Goern%ent Or4ani0ations

    a. Priate =ector Participation in Local GoernanceP&ro%e6 to en%&re t#e $iability of local a&tono)y a% analternati$e %trategy for %&%tainable de$elo)ent. L-U%

    %#all enco&rage ri$ate/%ector articiation in t#edeli$ery of ba%ic %er$ice%.

    b. Role of POs> NGOs in t-e LGUs:+L-U% %#all ro)ote t#e e%tabli%#)ent and oerationof eole% and non/go$ern)ental organi(ation% a%acti$e artner%.

    +L-U% )ay enter into ?oint $ent&re and cooerati$e

    &nderta4ing% !it# eole% and non/go$ern)entalorgani(ation% artic&larly in t#e follo!ing6

    1. deli$ery of certain ba%ic %er$ice%8. caability b&ilding and li$eli#oodro?ect%* and

    9. de$eloing local enterri%e% de%igned toi)ro$e rod&cti$ity and inco)e" di$er%ifie% agric&lt&re" %&rr&ral ind&%triali(ation" and en#ance t#e econo)ic and %ocial!ell/being of t#e eole.

    c. =pecial Local Bo+ies ,-ere t-e priate sector %a)participate in local 4oernance:

    8. Local 'eelop%ent Council /a d&ly con%tit&ted body !#ic# %#all a%%i%t t#ecorre%onding Sangg&nian in %etting t#e direction ofecono)ic and %ocial de$elo)ent" and coordinatingde$elo)ent effort% in it% territorial ?&ri%diction.

    2. Preualification> Bi+s an+ A,ar+s Co%%itteePBAC3

    +re%on%ible for t#e cond&ct of re:&alification ofcontractor%" bidding" e$al&ation of bid%" and t#ereco))endation of a!ard% concerning localinfra%tr&ct&re ro?ect%. +go$ernor or t#e city or )&niciality )ayor6C#air)an

    3. Local Peace an+ Or+er Council> pursuant to

    $.O. No.#5> as a%en+e+> =eries of 85//.

    &. Local =c-ool Boar+

    T#e 7,CS %#all con%&lt t#e Board on t#eaoint)ent of di$i%ion %&erintendent%" di%trict%&er$i%or%" %c#ool rincial%" and ot#er %c#ool official%.

    *. Local 6ealt- Boar+

    9. People?s La, $nforce%ent Boar+ PL$B3

    III. CR$ATION> CON@$R=ION> 'I@I=ION> M$RG$R AN'CON=OLI'ATION> AN' ABOLITION O LGUs

    A. Creation of LGUs: A local go$ern)ent &nit )ay be created" di$ided")erged" aboli%#ed" or it% bo&ndarie% %&b%tantially altered byla! enacted by Congre%% in t#e ca%e of a ro$ince" city")&niciality" or ot#er olitical %&bdi$i%ion%" or by Sangg&nianPanlala!igan or Sangg&nian Panl&ng%od ordinance in t#e

    ca%e of a barangay. Sec.NOT$:+nat&re of t#e o!er to create6 L,-ISLATIE,

    1. W#ile t#e o!er to create barangay% #a% been delegatedto Sangg&nian Panlala!igan and Sangg&niang Panl&ng%od"Congre%%" in order to en#ance t#e deli$ery of ba%ic %er$ice%in indigeno&% c&lt&ral co))&nitie%" )ay create barangay% in%&c# co))&nitie% not!it#%tanding t#e re:&ire)ent% %et fort#by la!. Sec.93=a" L-C

    8. T#e creation or con$er%ion of a local go$ern)ent &nit to

    anot#er le$el %#all be ba%ed on t#e follo!ing $erifiableindicator% of $iability and ro?ected caacity to ro$ide%er$ice%6 a. =ufficient inco%e an+ b. Population an+(or c. Lan+ areaNOT$:Co)liance !it# t#e abo$e/cited indicator% %#all beatte%ted by t#e 7eart)ent of >inance" t#e National Stati%tic%Office and t#e Land Fanage)ent B&rea& of t#e 7,NR"re%ecti$ely.

    #. Necessit) of iin4 Corporate Li%its:

    A% a )atter of general r&le" )&nicial cororation%cannot" !it#o&t legal a&t#ori(ation" e'erci%e it% o!er%beyond it% o!n cororate li)it%. It i% nece%%ary t#at it )&%t#a$e it% bo&ndarie% fi'ed" definite and certain" in order t#at)ay be identified and t#at all )ay 4no! t#e e'act %coe or%ection of territory or geogra#ical di$i%ion e)braced !it#int#e cororate li)it% and o$er !#ic# t#e )&nicial cororation#a% ?&ri%diction. A de%crition of t#e bo&ndarie% of a)&nicial cororation i% %aid to be an e%%ential art of it%c#arter and nece%%ary to cororate e'i%tence. Anincororation i% $oid !#ere t#e bo&ndarie% of t#e )&nicialcororation are not de%cribed !it# certainty.

    &. Manner of Creation8. Creation of Baran4a)s:

    a. Role: %er$e% a% t#e ri)ary lanning andi)le)enting &nit of go$ern)ent olicie%" lan% rogra)%"ro?ect% and acti$itie% in t#e co))&nity" and a% a for&)!#erein t#e collecti$e $ie!% of t#e eole )ay be e're%%ed"cry%talli(ed and con%idered" and !#ere di%&te% )ay bea)icably %ettled.

    b. -o creates: a barangay )ay be created"di$ided" )erged" aboli%#ed or it% bo&ndary %&b%tantiallyaltered by la! or by an ordinance of t#e Sangg&niangPanlala!igan or Sangg&niang Panl&ng%od. W#ere abarangay i% created by an ordinance of t#e Sangg&niang

    Panlala!igan" t#e reco))endation of t#e Sangg&niangBayan concerned %#all be nece%%ary.

    c. =ubstantie Reuisites:1. Po&lation/ at lea%t 8@@@ in#abitant% +,'cet in citie% and )&nicialitie% !it#in FetroFanila or in #ig#ly &rbani(ed citie%)&%t be atlea%t =@@@ in#abitant%

    8. Inco)e/ no )ini)&) inco)e re:&ire)ent

    4

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    ZPG & ASSOCIATES(Zambales.Pablo.Gonzales)

    9. Land Area/ no )ini)&) re:&ire)ent" b&t it)&%t be contig&o&% b&t it need not becontig&o&% if t#e barangay i% co)ri%ed !it#t!o or )ore i%land%.

    NOT$:

    +T#e creation of t#e ne! barangay %#all not #o!e$er red&cet#e o&lation of t#e original barangay to le%% t#an t#e)ini)&) re:&ire)ent re%cribed in t#e Code. Sec.93"L-C

    2. Creation of Municipalities a. Role:%er$e% ri)arily a% a general &ro%ego$ern)ent for t#e coordination and deli$ery of ba%ic" reg&larand direct %er$ice% and effecti$e go$ernance of t#ein#abitant% !it#in it% territorial ?&ri%diction.

    b. -o creates:)ay be created" di$ided" )erged"aboli%#ed or it% bo&ndary %&b%tantially altered only by an act

    of Congre%% %&b?ect to t#e criteria e%tabli%#ed by t#e Code.

    c. =ubstantie Reuisites:1. Po&lation/ at lea%t 8="@@@ in#abitant%8. Inco)e/ a$erage ann&al inco)e of at lea%t

    P8.= )illion for t#e la%t t!o con%ec&ti$e year%ba%ed on t#e 1221 con%tant rice%.

    9. Land Area/ a contig&o&% territory of =@ %:&are4ilo)eter%.

    #. Creation of Co%ponent Cities a. Role" %er$e% ri)arily a% a general &ro%ego$ern)ent for t#e coordination and deli$ery of ba%ic" reg&lar

    and direct %er$ice% and effecti$e go$ernance of t#ein#abitant% !it#in it% territorial ?&ri%diction.

    b. -o creates")ay be created" di$ided" )ergedor aboli%#ed" or it% bo&ndary %&b%tantially altered only by anact of Congre%% %&b?ect to t#e criteria ro$ided in t#e Code.

    c. =ubstantie Reuisites:1. Po&lation/ at lea%t 1=@"@@@ in#abitant%8. Inco)e/ at lea%t P1@@ )illion for t#e la%t t!o

    con%ec&ti$e year%9. Land Area/ contig&o&% territory of at lea%t

    1@@ %:&are 4ilo)eter%

    NOT$: +T#e Internal Re$en&e Allot)ent% %#all be incl&dedin t#e co)&tation of t#e a$erage ann&al inco)e of t#e)&niciality for &ro%e% of deter)ining !#et#er t#e)&niciality )ay be $alidly con$erted into a city. Inco)e i%defined in t#e L-C to be all re$en&e% and receit% collectedor recei$ed for)ing t#e gro%% accretion% of f&nd% of t#e localgo$ern)ent &nit. T#e IRA% are reg&lar and rec&rring inco)eand not )erely %ecial f&nd% or tran%fer% andDor b&dgetaryaid% fro) t#e national go$ern)ent or non/rec&rring inco)e.T#e IRA% reg&larly and a&to)atically accr&e to t#e localtrea%&ry !it#o&t need of any f&rt#er action on t#e art of t#elocal go$ern)ent &nit (Alvarez vs. Guingona, ! SCRA

    6"!).

    &. Conersion of a Co%ponent Cit) into a 6i4-l)Urbani0e+ Cit) a. If a co)onent city %#all #a$e )et t#e )ini)&)re:&ire)ent% for a #ig#ly &rbani(ed city" it %#all be t#e d&ty oft#e Pre%ident to declare t#e city a% #ig#ly &rbani(ed city&on6 1 roer alication and 8 &on ratification in alebi%cite by t#e )a?ority of regi%tered $oter% t#erein.

    b. =ubstantie Reuisites:1. Po&lation/ at lea%t 8@@"@@@ in#abitant%8. Inco)e/ at lea%t P=@ )illion

    *. Creation of Proinces a. Role" a% a olitical and cororate &nit ofgo$ern)ent" it %er$e% a% a dyna)ic )ec#ani%) for

    de$elo)ent roce%%e% and effecti$e go$ernance of localgo$ern)ent &nit% !it#in it% territorial ?&ri%diction.

    b. -o creates")ay be created" di$ided" )erged"or aboli%#ed" or it% bo&ndary %&b%tantially altered" only by anact of Congre%%" %&b?ect to t#e %ati%faction of t#e criteria %etfort# by t#e L-C.

    c. =ubstantie Reuire%ents:1. Po&lation/ not le%% t#an 8=@"@@@ in#abitant%8. Inco)e/ a$erage ann&al inco)e of at lea%t

    P8@ )illion

    3. Land Area/ a contig&o&% territory of at lea%t

    8@@@ %:&are 4ilo)eter%

    NOT$: +BP 33=" !#ic# created t#e Pro$ince of Negro% delNorte !a% declared &ncon%tit&tional beca&%e it did not co)ly!it# t#e land area criterion re%cribed &nder t#e L-C. T#e&%e of t#e !ord territory in Sec. 10 of t#e L-C refer% only tot#e #y%ical )a%% of land area" not to t#e !ater% co)ri%ing aolitical entity. It e'cl&de% t#e !ater% o$er !#ic# t#e olitical&nit e'erci%e% control(#an vs. Comele$, 1% SCRA 77).

    9. =tatus of =ub"proinces ,'i%ting %&b/ro$ince% are con$erted into reg&lar

    ro$ince% &on t#e aro$al by a )a?ority $ote% ca%t in alebi%cite to be #eld in t#e %aid %&b/ro$ince and t#e originalro$ince directly affected. Sec.

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    t#e a&tono)y of t#e affected local go$ern)ent &nit%. T#e la!doe% not grant olice nor legi%lati$e o!er% to FF7A. ,$ent#e Fetro Fanila Co&ncil" t#e go$erning board of t#e FF7A"#a% not been delegated any legi%lati$e o!er. Clearly"FF7A i% not a olitical &nit. T#ere i% no grant of a&t#ority toenact ordinance% and reg&lation% for t#e general !elfare oft#e in#abitant% of t#e )etrooli%. FF7A cannot oen for

    &blic &%e a ri$ate road in a ri$ate %&bdi$i%ion (MM&A vs.el-Air illage Asso$ia'ion, /n$., G.R. o. 1!"6, Mar$27, 000).

    5. AttacD a4ainst inali+it) of incorporationNo collateral attac4 %#all lie* an in:&iry into t#e legal

    e'i%tence of a )&nicial cororation i% re%er$ed to t#e Statein a roceeding for :&o !arranto or ot#er direct roceeding.B&t t#i% r&le alie% only !#en t#e )&nicial cororation i%" atlea%t" a de facto )&nicial cororation.

    1@. PL$BI=CIT$ R$!UIR$M$NT:W#o %#all articiate Sec. 1@ of t#e L-C ro$ide% t#at t#e creation" di$i%ion

    and )erger" abolition or %&b%tantial alteration of t#ebo&ndarie% of local go$ern)ent &nit% )&%t be aro$ed by a)a?ority of $ote% ca%t in a lebi%cite in t#e olitical &nit or&nit% directly affected. S&c# lebi%cite %#all be cond&cted byt#e COF,L,C !it#in 18@ day% fro) t#e date of t#e effecti$ityof t#e la!. T#e co)letion of t#e &blication of t#e la!%#o&ld be t#e rec4oning oint in deter)ining t#e 18@/dayeriod !it#in !#ic# to cond&ct t#e lebi%cite" not fro) t#edate of it% aro$al !#en t#e la! #ad not yet been &bli%#ed.Since &blication i% indi%en%able for t#e effecti$ity of a la!" alebi%cite can be %c#ed&led only after t#e la! creating a citytoo4 effect. (Ca3aling vs. C*M+L+C, *$'. 6, 00) T#e lebi%cite for t#e creation of a ne! ro$ince or

    )&niciality %#all incl&de t#e articiation of t#e re%ident% oft#e )ot#er ro$ince or )ot#er )&niciality in order toconfor) to t#e con%tit&tional re:&ire)ent. (4ailla vs.C*M+L+C, 1% SCRA 7!)

    +In t#e con$er%ion of a )&niciality into a co)onentcity" #o!e$er" only t#e regi%tered $oter% of t#e )&niciality%o&g#t to be con$erted into a co)onent city" %#all articiatein t#e lebi%cite.

    =u%%ar) of =ubstantie Reuire%ents in t-e Creation ofLGUs

    L-U Created Inco)e Po&lation Land area

    BarangayNo )ini)&)re:&ire)ent

    8"@@@ b&t="@@@ for

    FetroFanila and

    #ig#ly&rbani(ed

    citie%

    No )ini)&)re:&ire)ent

    F&niciality P8.= )illion 8="@@@" and =@ %:.4)

    Co)onentCity

    P1@@ )illion 1=@"@@@ or 1@@ %:.4).

    ;ig#lyUrbani(ed

    CityP=@ )illion 8@@"@@@

    No )ini)&)re:&ire)ent

    Pro$ince P8@ )illion 8=@"@@@ or 8"@@@ %:.4).

    88. Be4innin4 of Corporate $istence W#en a ne! local go$ern)ent &nit i% created" it%cororate e'i%tence %#all co))ence &on t#e election and:&alification of it% c#ief e'ec&ti$e and a )a?ority )e)ber% oft#e Sangg&nian" &nle%% %o)e ot#er date i% fi'ed t#erefore byla! or ordinance creating it. Sec.1

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    territory in t#e ab%ence of any ro$i%ion to t#econtrary. T#e %a)e r&le alie% ofcon%olidation !#ere t#e con%olidating)&nicial cororation i% #eld re%on%ible fort#e indebtedne%% and obligation% inc&rred byt#e territorie% !#ic# are con%olidated.

    8*. $ffects of 'iision of LGUs On t#e legal e'i%tence of t#e original cororation6 T#edi$i%ion of )&nicial cororation e'ting&i%#e% t#e cororatee'i%tence of t#e original )&niciality. On t#e roerty" o!er% and rig#t% of t#e originalcororation6 Unle%% t#e la! ro$ide% ot#er!i%e" !#en a)&nicial cororation i% di$ided into t!o or )ore)&nicialitie%" eac# )&niciality ac:&ire% title to all t#eroerty" o!er%" rig#t% and obligation% falling !it#in it%territorial ?&ri%diction.

    I@. G$N$RAL PO$R= AN' ATTRIBUT$= O LGUs

    A. Po,ers in 4eneral

    8. =ources: a. Sec. 8=" Art II6 Sec%. =" and 0" Art. G" P#iliineCon%tit&tion b. Stat&te%" e.g." R.A. 01@ c. C#arter artic&larly of citie% d. 7octrine of t#e rig#t of %elf/go$ern)ent" b&t alie%only in State% !#ic# ad#ere to t#e doctrine.

    2. Classifications: a. ,'re%%" i)lied and in#erent

    b. P&blic or go$ern)ental" ri$ate or rorietary c. Intra)&ral or e'tra)&ral d. Fandatory and directory" )ini%terial and di%cretionary

    9. ,'ec&tion of o!er%6 a. W#ere t#e %tat&te re%cribe% t#e )anner of e'erci%e"t#e roced&re )&%t be follo!ed. b. W#ere t#e %tat&te i% %ilent" local go$ern)ent &nit%#a$e di%cretion to %elect rea%onable )ean% and )et#od% ofe'erci%e.

    B. GO@$RNM$NTAL PO$R=:8. General elfare Clause" t#e %tat&tory grant of oliceo!er to local go$ern)ent &nit%.1Li%itations:a. ,'re%% grant by la!b. ,'erci%able only !it#in t#e territorial li)it% of t#e L-U"e'cet for rotection of !ater %&lyc. ,:&al rotection cla&%ed. 7&e roce%% cla&%ee. F&%t not be contrary to t#e Con%tit&tion and t#e la!%.

    NOT$:A local go$ern)ent &nit )ay e'erci%e delegated

    go$ern)ental o!er%6+Police o!er &nder t#e -eneral Welfare Cla&%e+ Po!er of Ta'ation

    + Po!er of ,)inent 7o)ain

    a. Reuisites for t-e ali+it) of a %unicipal or+inance:

    1. F&%t not contra$ene t#e Con%tit&tion and any

    %tat&te*8. F&%t not be &nfair or ore%%i$e*9. F&%t not be artial or di%cri)inatory*

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    C. un+a%ental Principles on Local taation1. Ta'ation %#all be &nifor) in eac# local go$ern)ent

    &nit*8. Ta'e%" fee%" c#arge% and ot#er i)o%ition% %#all6a. be e:&itable and ba%ed a% far a% racticable on t#e

    ta'ayer% ability to ay*

    b. be le$ied and collected only for &blic &ro%e%*c. not be &n?&%t" e'ce%%i$e" ore%%i$e or

    confi%catory*d. not be contrary to la!" &blic olicy" national

    econo)ic olicy" or in re%traint of trade.9. T#e collection of ta'e%" fee%" c#arge% and ot#er

    i)o%ition% %#all in no ca%e be let to any ri$ateer%on%*

    4. T#e re$en&e collected &r%&ant to t#e ro$i%ion% oft#e L-C %#all in&re %olely to t#e benefit of" and be%&b?ect to di%o%ition by" t#e local go$ern)ent &nitle$ying t#e ta'" fee" c#arge or ot#er i)o%ition&nle%% ot#er!i%e %ecifically ro$ided #erein* and

    =. ,ac# local go$ern)ent &nit %#all" a% far a%racticable" e$ol$e a rogre%%i$e %y%te) ofta'ation.

    NOT$=:1=-ares of LGUs in t-e procee+s of national taes T#e %#are of t#e L-U in Internal Re$en&e Ta'e% i%or &blic &%e or &ro%e or !elfare" for t#e benefit of t#eoor and t#e landle%%*9. Only after a $alid and definite offer #ad been )ade to" andnot acceted by" t#e o!ner*

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    entitled. (eirs o Sugui'an vs. Ci'5 o Manalu5ong, 8SCRA 17)

    NOT$:+An L-U )ay i))ediately ta4e o%%e%%ion of t#e roerty&on filing of e'roriation roceeding% and deo%it in co&rtof 1=J of t#e >FE of t#e roerty.

    *. Ot-er po,ers

    a. Reclassification of lan+s E2> RA 7893 A city or )&niciality )ay" t#ro&g# an ordinancea%%ed after cond&cting &blic #earing% for t#e&ro%e" )ay a&t#ori(e t#e recla%%ification ofagric&lt&ral land% and ro$ide for t#e )anner oft#eir &tili(ation or t#eir di%o%ition6

    i. W#en t#e land cea%e% to be econo)icallyfea%ible and %o&nd for agric&lt&ral&ro%e% a% deter)ined by t#e7eart)ent of Agric&lt&re*

    ii. W#ere t#e land %#all #a$e %&b%tantially

    greater econo)ic $al&e for re%idential"co))ercial or ind&%trial &ro%e% a%deter)ined by t#e %angg&nian* provided t#at%&c# recla%%ification %#all be li)ited to t#efollo!ing ercentage of t#e total agric&lt&ralland area at t#e ti)e of t#e a%%age of t#eordinance6

    +for #ig#ly &rbani(ed citie% and indeendentco)onent citie%6 1=J+for co)onent citie% and 1%t to 9rd cla%%)&nicialitie%6 1@J+for RA 7893A local go$ern)ent &nit )ay" &r%&ant to

    an ordinance" er)anent or te)orarily clo%e or oen anylocal road" alley" ar4" or %:&are falling !it#in it% ?&ri%diction"ro$ided t#at in ca%e of er)anent clo%&re" %&c# ordinance)&%t be aro$ed by at lea%t 8D9 of all t#e )e)ber% of t#e%angg&nian" and !#en nece%%ary" and ade:&ate %&b%tit&tefor t#e &blic facility %#all be ro$ided.

    NOT$:+Additional li)itation% in ca%e of er)anent clo%&re6

    i. Ade:&ate ro$i%ion for t#e )aintenance of &blic%afety )&%t be )ade*

    ii. T#e roerty )ay be &%ed or con$eyed for any&ro%e for !#ic# ot#er real roerty )ay bela!f&lly &%ed or con$eyed" b&t no freedo) ar4%#all be clo%ed er)anently !it#o&t ro$i%ion for it%tran%fer or relocation to a ne! %ite.

    +Te)orary clo%&re )ay be )ade d&ring an act&ale)ergency" fie%ta celebration%" &blic rallie%" etc.

    c. Na%in4 of LGUs> public places> streets an+

    structures8. Proinces/ T#e %angg&niang anlala!igan )ay

    c#ange t#e na)e of t#e follo!ing !it#in it% territorial?&ri%diction6

    i. Co)onent citie% and )&nicialitie%"&on t#e reco))endation of t#e %angg&niangconcerned*

    ii. Pro$incial road%" a$en&e%" bo&le$ard%"t#oro&g#fare% and bridge%*

    iii. P&blic $ocational or tec#nical %c#ool%and ot#er o%t %econdary and tertiary %c#ool%*

    i$. Pro$incial #o%ital%" #ealt# center%"and ot#er #ealt# facilitie%* and

    $. Any ot#er &blic lace or b&ildingo!ned by t#e ro$incial go$ern)ent.

    2. 6i4-l) Urbani0e+ an+ In+epen+entCo%ponent Cities" T#e %angg&nian% of ;UC% and ICC%)ay c#ange t#e na)e of t#e follo!ing !it#in it% territorial

    ?&ri%diction6i. City barangay%" &on t#e

    reco))endation of t#e %angg&niang barangayconcerned*

    ii. City road%" a$en&e%" bo&le$ard%"t#oro&g#fare%" and bridge%*

    iii. P&blic ele)entary" %econdary and$ocational or tec#nical %c#ool%" co))&nity college%and non/c#artered college%*

    i$. City #o%ital%" #ealt# center% and

    ot#er #ealt# facilitie%* and$. Any ot#er &blic lace or b&ilding

    o!ned by t#e city go$ern)ent.

    #. Co%ponent Cities an+ Municipalities" T#e%angg&nian% of co)onent citie% and )&nicialitie% )ayc#ange t#e na)e of t#e follo!ing !it#in it% territorial

    ?&ri%diction6i. City and )&nicial barangay%" &on

    reco))endation of t#e %angg&niang barangayconcerned*

    ii. City" )&nicial and barangay road%"a$en&e%" bo&le$ard%" t#oro&g#fare%" and bridge%*

    iii. City and )&nicial &blic ele)entary"%econdary and $ocational or tec#nical %c#ool%"o%t/%econdary and ot#er tertiary %c#ool%*

    i$. City and )&nicial #o%ital%" #ealt#center% and ot#er #ealt# facilitie%* and

    $. Any ot#er &blic lace or b&ildingo!ned by t#e )&nicial go$ern)ent.

    NOT$=:+None of t#e foregoing local go$ern)ent &nit%" in%tit&tion%"lace%" or b&ilding% %#all be na)ed after a li$ing er%on" nor)ay a c#ange of na)e be )ade &nle%% for a ?&%tifiablerea%on and" in any ca%e" not oftener t#an once e$ery tenyear%. T#e na)e of a local go$ern)ent &nit or a &blic lace"%treet or %tr&ct&re !it# #i%torical" c&lt&ral" or et#nic%ignificance %#all not be c#anged" &nle%% by a &nani)o&%$ote of t#e %angg&nian concerned and in con%&ltation !it# t#eP#iliine ;i%torical Co))i%%ion.

    +A c#ange of na)e of a &blic %c#ool %#all be )ade only&on t#e reco))endation of t#e local %c#ool boardconcerned.

    +A c#ange of na)e of &blic #o%ital%" #ealt# center%" andot#er #ealt# facilitie% %#all be )ade only &on t#ereco))endation of t#e local #ealt# board concerned.

    +T#e c#ange of na)e of any local go$ern)ent &nit %#all beeffecti$e only &on ratification in a lebi%cite cond&cted fort#e &ro%e in t#e olitical &nit directly affected.+In any c#ange of na)e" t#e Office of t#e Pre%ident" t#erere%entati$e of t#e legi%lati$e di%trict concerned" and t#eB&rea& of Po%t% %#all be notified. 19" L-C

    +. =ettle%ent of boun+ar) +isputes E88/ a"+>RA 7893:

    9

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    Bo&ndary di%&te% bet!een and a)onglocal go$ern)ent &nit% %#all" a% )&c# a% o%%ible"be %ettled a)icably. To t#i% end6

    a. Bo&ndary di%&te% in$ol$ing t!oor )ore barangay% in t#e %a)ecity or )&niciality %#all bereferred for %ettle)ent to t#e

    %angg&niang anl&ng%od or%angg&niang bayan concerned.

    b. Bo&ndary di%&te% in$ol$ing t!oor )ore )&nicialitie% !it#in t#e%a)e ro$ince %#all be referredfor %ettle)ent to t#e%angg&niang anlala!iganconcerned.

    c. Bo&ndary di%&te% in$ol$ing)&nicialitie% or co)onentcitie% of different ro$ince% %#allbe ?ointly referred for %ettle)entto t#e %angg&nian% of t#e

    ro$ince% concerned.d. Bo&ndary di%&te% in$ol$ing a

    co)onent city or )&nicialityon t#e one #and and a #ig#ly&rbani(ed city on t#e ot#er" ort!o or )ore #ig#ly &rbani(edcitie%" %#all be ?ointly referred for%ettle)ent to t#e re%ecti$e%angg&nian% of t#e artie%.

    Proce+ure:In t#e e$ent t#e %angg&nian fail% to effect an

    a)icable %ettle)ent !it#in @ day% fro) t#e date t#e di%&te!a% referred t#ereto" it %#all i%%&e a certification to t#at effect.

    T#ereafter" t#e di%&te %#all be for)ally tried by t#e%angg&nian concerned !#ic# %#all decide t#e i%%&e !it#in @day% fro) t#e date of t#e certification referred to abo$e.

    Wit#in t#e ti)e and )anner re%cribed by t#e R&le%of Co&rt" any arty )ay ele$ate t#e deci%ion of t#e%angg&nian concerned" any arty )ay ele$ate t#e deci%ion oft#e %angg&nian concerned to t#e roer Regional Trial Co&rt#a$ing ?&ri%diction o$er t#e area in di%&te. T#e RegionalTrial Co&rt %#all decide t#e aeal !it#in one 1 year fro)t#e filing t#ereof. Pending final re%ol&tion of t#e ca%e" t#edi%&ted area rior to t#e di%&te %#all be )aintained andcontin&ed for all legal &ro%e%. 112" L-C

    e. Aut-orit) oer police units E9> Art. F@I>P-ilippine Constitution3

    T#e State %#all e%tabli%# and )aintain one oliceforce" !#ic# %#all be national in %coe and ci$ilian inc#aracter" to be ad)ini%tered and controlled by a NationalPolice Co))i%%ion. T#e a&t#ority of local e'ec&ti$e% o$ert#e olice &nit% in t#eir ?&ri%diction %#all be ro$ided by la!.

    9. LOCAL L$GI=LATI@$ PO$RA. Pro+ucts of le4islatie action

    1. Or+inance" re%cribe% a r&le ofcond&ct.

    8. Resolution" of te)orary c#aracter"or e're%%e% %enti)ent.

    B. Reuisites for ali+it):1. F&%t not contra$ene t#e Con%tit&tion

    and any %tat&te8. F&%t not be &nfair or ore%%i$e9. F&%t not be artial or di%cri)inatory

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    0. An ordinance %#all be aro$ed by t#e local c#iefe'ec&ti$e by affi'ing #i% %ignat&re in eac# and e$ery aget#ereof.

    3. T#e go$ernor or )ayor )ay $eto any ite) in t#e follo!ingca%e%6

    a. Partic&lar i te) or i te)% in an aroriation%

    ordinanceb. Ordinance adoting a local de$elo)ent lan and

    &blic in$e%t)ent rogra)c. Ordinance directing t#e ay)ent of )oney or

    creating liability. ==

    2. T#e gro&nd% for $eto are6a. T#e ordinance i% &ltra $ire%b. Or t#at it i% re?&dicial to &blic !elfare

    1@. T#e $eto %#all be co))&nicated to t#e %angg&nian !it#in1= day% in t#e ca%e of a ro$ince and 1@ day% in t#e ca%e of acity or )&niciality* ot#er!i%e" t#e ordinance %#all be dee)ed

    aro$ed" a% if #e %igned it. T#e %angg&nian )ay o$erridet#e $eto by 8D9 of all it% )e)ber%. = RA 78931. To #a$e contin&o&% %&cce%%ion in it% cororate na)e8. To %&e and be %&ed9. To #a$e and &%e a cororate %eal

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    e'ec&ti$e on be#alf of t#e localgo$ern)ent &nit !it#o&t riora&t#ori(ation by t#e %angg&niangconcerned.

    i ii. T#e contract )&%t co)ly !it# certain%&b%tanti$e re:&ire)ent%" i.e." !#ene'endit&re of &blic f&nd i% to be

    )ade" t#ere )&%t be an act&alaroriation and a certificate ofa$ailability of f&nd%.

    i$. T#e contract )&%t co)ly !it# t #efor)al re:&ire)ent% of !rittencontract%" e.g." t#e Stat&te of >ra&d%.

    b. Ultra ires contracts W#en a contract i% entered into !it#o&tco)liance !it# t#e fir%t and t#e t#ird re:&i%ite%abo$e" t#e %a)e i% &ltra $ire% and i% n&ll and $oid.S&c# contract cannot be ratified or $alidated.Ratification of defecti$e )&nicial contract% i%o%%ible only !#en t#ere i% non/co)liance !it# t#e

    %econd andDor fo&rt# re:&ire)ent% abo$e.Ratification )ay be e're%% or i)lied.

    c. Aut-orit) to ne4otiate an+ secure contracts E2#>RA 7893 T#e local c#ief e'ec&ti$e )ay" &on a&t#ority oft#e %angg&nian" negotiate and %ec&re financialgrant% or donation% in 4ind" in %&ort of t#e ba%ic%er$ice% and facilitie% en&)erated &nder 10" fro)local and foreign a%%i%tance agencie% !it#o&tnece%%ity of %ec&ring clearance or aro$al fro)any deart)ent" agency" or office of t#e nationalgo$ern)ent or fro) any #ig#er local go$ern)ent

    &nit* Provided,t#at ro?ect% financed by %&c# grant%or a%%i%tance !it# national %ec&rity i)lication%%#all be aro$ed by t#e national agencyconcerned.

    9. To eercise suc- ot-er po,ers as are 4rante+ tocorporations> subect to li%itations proi+e+ in t-e Co+ean+ ot-er la,s.

    @. MUNICIPAL LIABILITH

    A. =pecific proisions %aDin4 LGUs liable:

    a. E2&> RA 789/ Liability for da)age%/ Local

    go$ern)ent &nit% and t#eir official% are not e'e)tfro) liability for deat# or in?&ry to er%on% or da)ageto roerty.

    b. Art. 28/5> NCC/ T#e local go$ern)ent &nit i% liable

    in da)age% for deat# or in?&rie% %&ffered by rea%onof t#e defecti$e condition of road%" %treet%" bridge%"&blic b&ilding% and ot#er &blic !or4%.

    c. Art. 813@" ar." NCC/ T#e State i% re%on%ible!#en it act% t#ro&g# a %ecial agent.

    d. Art. 9

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    re%o&rce% of t#e local go$ern)ent &nit to %&c#er%on or fir)*

    b. ;old %&c# intere%t% in any coc4it or ot#er ga)e%licen%ed by a local go$ern)ent &nit*

    c. P&rc#a%e any real e%tate or ot#er roertyforfeited in fa$or of %&c# local go$ern)ent &nit for&naid ta'e% or a%%e%%)ent" or by $irt&e of a legal

    roce%% at t#e in%tance of t#e %aid localgo$ern)ent &nit*

    d. Be a %&rety for any er%on contracting or doingb&%ine%% !it# t#e local go$ern)ent &nit for !#ic#a %&rety i% re:&ired* and

    e. Po%%e%% or &%e any &blic roerty of t#e localgo$ern)ent &nit for ri$ate &ro%e%.

    f. T#e ro#ibition% and in#ibition% re%cribed in RA019 al%o aly.

    2. Practice of Profession E5> RA 7893

    a. -o$ernor% or )ayor% are ro#ibited fro)racticinK%trati$e roceeding% in$ol$ing t#e local

    go$ern)ent &nit of !#ic# #e i% an official.i$. U%e roerty and er%onnel of t#e go$ern)ente'cet !#en t#e %angg&nian )e)ber i%defending t#e intere%t of t#e go$ern)ent.

    Case6It !a% #eld t#at by aearing a% co&n%el for

    di%)i%%ed e)loyee%" City Co&ncilor a$ellana $iolated t#ero#ibition again%t engaging in ri$ate ractice if %&c#ractice rere%ent% intere%t% ad$er%e to t#e go$ern)ent.(avellana vs. &/LG, 1 SCRA %7!)

    b. P#y%ician% )ay ractice t#eir rofe%%ion e$end&ring office #o&r% only on e)ergencie% and

    !it#o&t )onetary co)en%ation.

    #. Pro-ibition a4ainst appoint%ent E5&> RA 7893a. No electi$e or aointi$e local official %#all be

    eligible for aoint)ent or de%ignation to any&blic office d&ring #i% ten&re.

    b. Unle%% ot#er!i%e allo!ed by la! or by t#e ri)aryf&nction of #i% office" no electi$e or aointi$elocal official %#all #old any ot#er office.

    c. ,'cet for lo%ing candidate% in barangayelection%" no candidate !#o lo%t in any election%#o&ld be aointed to any office !it#in one yearafter election.

    B. $L$CTI@$ LOCAL OICIAL=

    8. !ualifications:a. Co))on :&alification%6

    i. >iliino Citi(enii. Regi%tered $oter of t#e local go$ern)ent &nit" orof t#e di%trict !#ere #e intend% to be elected in t#eca%e of t#e )e)ber% of t#e %angg&nian.iii. Re%ident t#erein for at lea%t one yeari))ediately before t#e electioni$. Ability to read and !rite >iliino or any ot#erlocal dialect.

    b. Age

    i. Candidate% in ro$ince% and #ig#ly &rbani(edcitie%/ at lea%t 89 year% oldii. Candidate% for )ayor and $ice )ayor ofco)onent citie% and )&nicialitie%/ at lea%t 81year% oldiii. Candidate% for %angg&nian )e)ber% inco)onent citie% and )&nicialitie%/ at lea%t 13year% oldi$. Barangay official%/ at lea%t 13 year% old$. Sangg&niang abataan/ at lea%t 1=/81 year%

    NOT$=:+Age/ )&%t be o%%e%%ed on t#e day of t#e election.+T#e L-C doe% not %ecify any artic&lar date !#en t#ecandidate )&%t o%%e%% >iliino citi(en(%#i. P#iliineciti(en%#i i% re:&ired to en%&re t#at no alien %#all go$ern o&reole. An official begin% to go$ern only &on #i%

    rocla)ation and on t#e day t#at #i% ter) begin%. Since>ri$aldo too4 #i% oat# of allegiance on &ne 9@" 122=" !#en#i% alication for reatriation !a% granted by t#e Secialco))ittee on Nat&rali(ation created &nder P7 38=" #e !a%t#erefore :&alified to be roclai)ed. Be%ide%" 92 of t#e L-C%ea4% of :&alification% of electi$e official%" not of candidate%(rivalo vs. C*M+L+C, 71 SCRA 767).

    +Petitioner !a% o$er 81 year% of age on t#e day of t#eelection !a% ordered di%:&alified by t#e S&re)e Co&rt !#ent#e latter re?ected t#e contention of t#e etitioner t#at %#e !a%:&alified beca&%e %#e !a% le%% t#an 88 year% old. T#e#ra%e 5not )ore t#an 81 year% oldH i% not e:&i$alent to 5le%%

    t#an 88 year% oldH (Garvia vs. Sales).

    2. 'isualifications E&> RA 7893" T#e follo!ing aredi%:&alified fro) r&nning for any electi$e local o%ition6

    a. T#o%e %entenced by final ?&dg)ent for anoffen%e in$ol$ing )oral t&rit&de or for anoffen%e &ni%#able by one year or )ore ofi)ri%on)ent" !it#in t!o year% after %er$ing%entence*

    b. T#o%e re)o$ed fro) office a% a re%&lt of anad)ini%trati$e ca%e*

    c. T#o%e con$icted by final ?&dg)ent for $iolatingt#e oat# of allegiance to t#e Re&blic*

    d. T#o%e !it# d&al citi(en%#i*e. >&giti$e% fro) ?&%tice in cri)inal or non/olitical ca%e% #ere or abroad*

    f. Per)anent re%ident% in a foreign co&ntry ort#o%e !#o #a$e ac:&ired t#e rig#t to re%ideabroad and contin&e to a$ail of t#e %a)e rig#tafter t#e effecti$ity of t#e Code* and

    g. T#e in%ane or feeble/)inded.

    #. Manner of $lectiona. T#e go$ernor" $ice/go$ernor" city or

    )&nicial )ayor" city or )&nicial $ice/)ayorand &nong barangay %#all be elected atlarge in t#eir re%ecti$e &nit%. T#e%angg&niang 4abataan c#air)an %#all beelected by t#e regi%tered $oter% of t#e4ati&nan ng 4abataan.

    b. T#e reg&lar )e)ber% of t#e %angg&nianganlala!igan" anl&ng%od and bayan %#allbe elected by di%trict" a% )ay be ro$ided byla!. T#e re%ident% of t#e leag&e% of%angg&nian )e)ber% of co)onent citie%and )&nicialitie% %#all %er$e a% e' officio)e)ber% of t#e %angg&niang anlala!iganconcerned. T#e re%ident% of t#e liga ng)ga barangay and t#e edera%yon ng )ga%angg&niang 4abataan elected by t#eir

    re%ecti$e c#ater%" %#all %er$e a% e' officio)e)ber% of t#e %angg&niang anlala!igan"anl&ng%od or bayan.

    c. In addition" t#ere %#all be one %ectoralrere%entati$e fro) t#e !o)en" one fro) t#e!or4er%" and one fro) any of t#e follo!ing%ector%6 &rban oor" indigeno&% c&lt&ralco))&nitie%" di%abled er%on%" or any ot#er%ector a% )ay be deter)ined by t#e%angg&nian concerned !it#in 2@ day% rior to

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    t#e #olding of t#e ne't local election% a% )aybe ro$ided by la!. T#e Co)elec %#allro)&lgate t#e r&le% and reg&lation% toeffecti$ely ro$ide for t#e election of %&c#%ectoral rere%entati$e%.

    &. 'ate of $lection

    ,$ery t#ree year% on t#e %econd Fonday of Fay"&nle%% ot#er!i%e ro$ided by la!.

    *. Ter% of OfficeT#ree year%" %tarting fro) noon of &ne 9@" 1228"

    or %&c# date a% )ay be ro$ided by la!" e'cet t#at ofelecti$e barangay official%. No local electi$e official %#all%er$e for )ore t#an t#ree con%ec&ti$e ter)% in t#e %a)eo%ition. T#e ter) of office of barangay official% and)e)ber% of t#e %angg&niang 4abataan %#all be for fi$e year%"!#ic# %#all begin after t#e reg&lar election of barangayofficial% on t#e %econd Fonday of Fay" 1220. R.A. 3=8

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    A )a?ority of all t#e rearatory recall a%%e)bly)e)ber% )ay con$ene in %e%%ion in a &blic lace andinitiate a recall roceeding again%t any electi$e official in t#elocal go$ern)ent &nit concerned. Recall of ro$incial" city or)&nicial official% %#all be $alidly initiated t#ro&g# are%ol&tion adoted by a )a?ority of all t#e )e)ber% of t#erearatory recall a%%e)bly concerned d&ring it% %e%%ion

    called for t#at &ro%e.

    Case:It !a% #eld t#at notice to all t#e )e)ber% of t#e

    Prearatory Recall A%%e)bly i% i)erati$e* t#&%" !#ere t#ere%ol&tion !a% adoted !it#o&t gi$ing notice to all t#e)e)ber% of t#e PRA" t#e %a)e i% fatally fla!ed (Gar$ia vs.Comele$, G.R. o. 111!11, *$'ober !, 1""). ;o!e$er" inMalonzo vs. Comele$, G.R. o. 17066, Mar$2 11, 1""7, it!a% #eld t#at !#ere t#e Co)elec #a% already cond&cted anin$e%tigation and fo&nd t#e initiatory recall roceeding% to bein accord !it# la!" t#ere i% no nece%%ity for t#e S&re)eCo&rt to refer t#e )atter of t#e $eracity of t#e :&e%tioned

    notice% bac4 to t#e Co)elec.

    e. Initiation of recall b) re4istere+ oters6 Recall of aro$incial" city" )&nicial or barangay official )ay al%o be$alidly initiated &on etition by at lea%t 8=J of t#e totaln&)ber of regi%tered $oter% in t#e local go$ern)ent &nitconcerned d&ring t#e election in !#ic# t#e local official %o&g#tto be recalled !a% elected.

    f. Proce+ure:i. A !ritten etition for recall d&ly %igned before t#eelection regi%trar or #i% rere%entati$e" and in t#ere%ence of a rere%entati$e of t#e etitioner and

    rere%entati$e of t#e official %o&g#t to be recalled"and in a &blic lace in t#e ro$ince" city")&niciality or barangay" a% t#e ca%e )ay be" %#allbe filed !it# t#e Co)elec t#ro&g# it% office in t#elocal go$ern)ent &nit concerned.ii. T#e Co)elec or it% d&ly a&t#ori(edrere%entati$e %#all ca&%e t#e &blication of t#eetition in a &blic and con%ic&o&% lace for aeriod of not le%% t#an 1@ day% nor )ore t#an 8@day%" for t#e &ro%e of $erifying t#e a&t#enticityand gen&inene%% of t#e etition and t#e re:&iredercentage of $oter%.iii. Uon t#e la%e of t#e afore%aid eriod" t#eCo)elec or it% d&ly a&t#ori(ed rere%entati$e %#allanno&nce t#e accetance of candidate% to t#eo%ition and t#ereafter reare t#e li%t of candidate%!#ic# %#all incl&de t#e na)e of t#e official %o&g#t tobe recalled.

    +T#e electi$e local official %o&g#t to be recalled %#all not beallo!ed to re%ign !#ile t#e recall roce%% i% in rogre%%.1Li%itations on Recall: 1. Any electi$e local official )ay be t#e %&b?ect of a recallelection only once d&ring #i% ter) of office for lo%% ofconfidence. 8. No recall %#all ta4e lace !it#in one year fro) t#e dateof t#e official% a%%&)tion to office or one year i))ediately

    receding a reg&lar local election.+T#e official %o&g#t to be recalled i% a&to)atically acandidate.+Recall %#all be effecti$e &on t#e election and rocla)ationof %&cce%%or recei$ing t#e #ig#e%t n&)ber of $ote%.

    5. Resi4nation of electie local officials s-all be +ee%e+effectie onl) upon acceptance b) t-e follo,in4aut-orities:

    a. T#e Pre%ident" in ca%e of go$ernor%" $icego$ernor%" and )ayor% and $ice )ayor% of #ig#ly&rbani(ed citie% and indeendent co)onentcitie%*

    b. T#e go$ernor" in ca%e of )&nicial )ayor% and$ice )ayor%" city )ayor% and $ice )ayor% ofco)onent citie%*

    c. Sangg&nian concerned" in ca%e of %angg&niang)e)ber%* and

    d. T#e city or )&nicial )ayor" in ca%e of barangayofficial%.

    1$ffectiit):c. Re%ignation ta4e% effect &on accetance.d. It i% dee)ed acceted if not acted &on !it#in 1=

    !or4ing day%.e. Irre$ocable re%ignation by %angg&nian )e)ber%

    ta4e% effect &on re%entation before an oen%e%%ion. 38" R.A. 01@

    8. Grieance Proce+ure E/#> R.A. 7893" T#e local c#iefe'ec&ti$e %#all e%tabli%# a roced&re to in:&ire into" act &on"re%ol$e or %ettle co)laint% and grie$ance% re%ented bylocal go$ern)ent e)loyee%.

    88. 'iscipline E9"9/> R.A. 7893 a. Groun+s for +isciplinar) action: An electi$e localofficial )ay be di%cilined" %&%ended" or re)o$ed fro) officeon any of t#e follo!ing gro&nd%6 i. 7i%loyalty to t#e Re&blic of t#e P#iliine%. ii. C&lable $iolation of t#e Con%tit&tion

    iii. 7i%#one%ty" ore%%ion" )i%cond&ct in office"gro%% negligence" or dereliction of d&ty.

    i$. Co))i%%ion of any offen%e in$ol$ing )oralt&rit&de or an offen%e &ni%#able by at lea%t ri%ion )ayor.$. Ab&%e of a&t#ority.

    $i. Una&t#ori(ed ab%ence for 1= con%ec&ti$e!or4ing day%" e'cet in t#e ca%e of )e)ber% of t#e%angg&niang anlala!igan" anl&ng%od" bayan andbarangay. $ii. Alication for" or ac:&i%ition of" foreignciti(en%#i or re%idence or t#e %tat&%K ,lecti$e barangayofficial%" %#all be filed before t#e %angg&iniang anl&ng%od or%angg&niang bayan concerned" !#o%e deci%ion %#all be finaland e'ec&tory.

    c. Notice of 6earin4 E92> R.A. 7893" a Wit#in 0day% after t#e ad)ini%trati$e co)laint i% filed" t#e Officeof t#e Pre%ident or t#e %angg&nian concerned a% t#eca%e )ay be" %#all re:&ire t#e re%ondent to %&b)it #i%$erified an%!er !it#in 1= day% fro) receit t#ereof" andco))ence t#e in$e%tigation of t#e ca%e !it#in 1@ day%after t#e receit of %&c# an%!er of t#e re%ondent.

    b W#en t#e re%ondent i% an electi$e official of aro$ince or #ig#ly &rbani(ed city" %&c# #earing andin$e%tigation %#all be cond&cted in t#e lace !#ere #erender% or #old% office. >or all ot#er local electi$eofficial%" t#e $en&e %#all be t#e lace !#ere t#e%angg&nian concerned i% located.

    c ;o!e$er" no in$e%tigation %#all be #eld !it#in 2@

    day% i))ediately rior to any local election" and nore$enti$e %&%en%ion %#all be i)o%ed rior to t#e 2@/day eriod i))ediately receding local election" it %#allbe dee)ed a&to)atically lifted &on t#e %tart ofafore%aid eriod.

    +. Preentie =uspension 8. -o %a) i%pose:

    a. By t#e Pre%ident" if t#e re%ondent i% anelecti$e official of a ro$ince" a #ig#ly

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    &rbani(ed or an indeendent co)onentcity*

    b. By t#e go$ernor" if t#e re%ondent i% anelecti$e local official of a co)onent cityor )&niciality*

    c. By t#e )ayor" i f t#e re%ondent i% anelecti$e official of t#e barangay.

    2. -en %a) be i%pose+: Pre$enti$e %&%en%ion)ay be i)o%ed at any ti)e6

    a. After t#e i%%&e% are ?oined*b. W#en t#e e$idence of g&ilt i% %trong* andc. -i$en t#e gra$ity of t#e offen%e" t#ere i%

    great robability t#at t#e contin&ance inoffice of t#e re%ondent co&ld infl&encet#e !itne%%e% or o%e a t#reat to t#e%afety and integrity of t#e record% andot#er e$idence.

    +Pro$ided t#at any %ingle re$enti$e %&%en%ion%#all not e'tend beyond @ day%" and in t#e e$ent

    %e$eral ad)ini%trati$e ca%e% are filed again%t t#ere%ondent" #e cannot be %&%ended for )ore t#an2@ day% !it#in a %ingle year on t#e %a)e gro&nd orgro&nd% e'i%ting and 4no!n at t#e ti)e of t#e fir%t%&%en%ion.

    Case:W#en t#e etitioner failed to file #i% an%!er de%ite

    t#e )any oort&nitie% gi$en to #i)" #e !a% dee)ed to #a$e!ai$ed #i% rig#t to an%!er and to re%ent e$idence. At t#atoint" t#e i%%&e% !ere dee)ed ?oined" and it !a% roer fort#e ,'ec&ti$e Secretary to %&%end #i)" ina%)&c# a% t#eSecretary fo&nd t#at t#e e$idence of g&ilt !a% %trong and t#at

    contin&ance in office co&ld infl&ence t#e !itne%%e% and o%ea t#reat to t#e %afety and integrity of t#e e$idence again%t #i)(oson vs. #orres, "0 SCRA 7").

    T#e a&t#ority to re$enti$ely %&%end i% e'erci%edconc&rrently by t#e O)b&d%)an" &r%&ant to R.A. 00@* t#e%a)e la! a&t#ori(e% a re$enti$e %&%en%ion of %i' )ont#%(aga vs. Gozo-&aole, G.R. no. 10807, &e$. 1, 1""!).

    e. =uspen+e+ electie official ,-en +ee%e+ reinstate+Uon e'iration of t#e re$enti$e %&%en%ion" t#e

    re%ondent %#all be dee)ed rein%tated in office !it#o&tre?&dice to t#e contin&ation of t#e roceeding% again%t #i)"!#ic# %#all be ter)inated !it#in 18@ day% fro) t#e ti)e #e!a% for)ally notified of t#e ca%e again%t #i).

    +Any ab&%e of t#e e'erci%e of t#e o!er ofre$enti$e %&%en%ion %#all be enali(ed a% ab&%e ofa&t#ority.

    f. =alar) of respon+ent pen+in4 suspension E9&> R.A.7893 T#e re%ondent official re$enti$ely %&%ended fro)office %#all recei$e no %alary or co)en%ation d&ring %&c#%&%en%ion* b&t" &on %&b%e:&ent e'oneration andrein%tate)ent" #e %#all be aid f&ll %alary or co)en%ationincl&ding %&c# e)ol&)ent% accr&ing d&ring %&c# %&%en%ion.

    4. Ri4-ts of respon+ent E9*> R.A. 7893 T#e re%ondent %#all be accorded f&ll oort&nity toaear and defend #i)%elf in er%on or by co&n%el" toconfront and cro%%/e'a)ine t#e !itne%%e% again%t #i)" and tore:&ire t#e attendance of !itne%%e% and t#e rod&ction ofdoc&)entary e$idence in #i% fa$or t#ro&g# co)&l%oryroce%% of %&boena or %&boena d&ce% tec&).

    -. or% an+ notice of +ecision E99a> R.A. 7893

    T#e in$e%tigation of t#e ca%e %#all be ter)inated!it#in 2@ day% fro) t#e %tart t#ereof. Wit#in 9@ day% after t#eend of t#e in$e%tigation" t#e Office of t#e Pre%ident or t#e%angg&nian concerned %#all render a deci%ion in !riting%tating clearly an di%tinctly t#e fact% and t#e rea%on% for %&c#deci%ion. Coy of %aid deci%ion %#all i))ediately bef&rni%#ed t#e re%ondent and all intere%ted artie%.

    i. Penalt) T#e enalty of %&%en%ion i)o%ed &on t#ere%ondent %#all not e'ceed #i% &ne'ired ter)" or a eriodof )ont#% for e$ery ad)ini%trati$e offen%e" nor %#all %aidenalty be a bar to t#e candidacy of t#e re%ondent a% longa% #e )eet% t#e :&alification% re:&ired for t#e office. B&t t#eenalty of re)o$al fro) office a% a re%&lt of an ad)ini%trati$ein$e%tigation %#all be a bar to t#e candidacy of t#ere%ondent for any electi$e o%ition.

    Case:T#e S&re)e Co&rt eld t#e i)o%ition of t#e

    ad)ini%trati$e enalty of %&%en%ion of not )ore t#an )ont#% for eac# offen%e" ro$ided t#at t#e %&cce%%i$e %er$iceof t#e %entence %#o&ld not e'ceed t#e &ne'ired ortion oft#e ter) of t#e etitioner%. T#e %&%en%ion did not a)o&nt tore)o$al fro) office (Salalima vs. Guingona, !7 SCRA!!).

    . A+%inistratie appeal" 'ecisions %a)> ,it-in #+a)s fro% receipt t-ereof> be appeale+ to:

    i. T#e %angg&niang anlala!igan" in t#e ca%e ofdeci%ion% of co)onent citie% %angg&niang anl&ng%od andt#e %angg&iniang bayan*

    ii. T#e Office of t#e Pre%ident" in t#e ca%e of

    deci%ion% of t#e %angg&niang anlala!igan and t#e%angg&niang anl&ng%od of #ig#ly &rbani(ed citie% andindeendent co)onent citie%. 7eci%ion% of t#e Office of t#ePre%ident %#all be final and e'ec&tory.

    Case:T#e S&re)e Co&rt r&led t#at certiorari !ill not lie

    beca&%e t#ere i% %till an ade:&ate re)edy a$ailable in t#eordinary co&r%e of la!" i.e." aeal of t#e deci%ion of t#eSangg&niang Panlala!igan to t#e Office of t#e Pre%ident(Malinao vs. Re5es, !! SCRA 616).

    D. $ecution pen+in4 appeal An aeal %#all not re$ent a deci%ion fro) being

    e'ec&ted* t#e re%ondent %#all be con%idered a% #a$ing beenlaced &nder re$enti$e %&%en%ion d&ring t#e endency oft#e aeal. B&t in Berce% $%. ,'ec&ti$e Secretary" 8

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    !age or iece!or4 ba%i% and #ired t#ro&g# ?ob order% forlocal ro?ect% a&t#ori(ed by t#e %angg&nian concerned"!it#o&t need of aro$al or atte%tation by t#e CSC a% long a%t#e %aid e)loy)ent %#all not e'ceed )ont#%.

    Case:B&t t#e Pro$incial -o$ernor i% !it#o&t a&t#ority to

    de%ignate t#e etitioner a% A%%i%tant Pro$incial Trea%&rer forAd)ini%tration" beca&%e &nder Cities an+Proinces E&95"&5> R.A. 7893

    a. Secretary to t#e Sangg&nianb. Trea%&rer c. A%%e%%or d. Acco&ntant

    e. B&dget Officerf. Planning and 7e$elo)ent Coordinatorg. ,ngineer #. ;ealt# Officeri. Ci$il Regi%trar

    ?. Ad)ini%trator4. Legal Officerl. Agric&lt&ri%t). Social Welfare and 7e$elo)ent Officern. ,n$iron)ent and Nat&ral Re%o&rce%

    Officero. Arc#itect. Infor)ation Officer

    :. Cooerati$e% Officerr. Po&lation Officer%. Eeterinariant. -eneral Ser$ice% Officer

    NOT$:+In t#e barangay" t#e )andated aointi$e official%

    are t#e Barangay Secretary and t#e Barangay Trea%&rer"alt#o&g# ot#er official% of t#e barangay )ay be aointed byt#e &nong barangay.

    #. A+%inistratie +isciplineIn$e%tigation and ad?&dication of

    ad)ini%trati$e co)laint% again%t aointi$e local official%and e)loyee% a% !ell a% t#eir %&%en%ion and re)o$al %#allbe in accordance !it# t#e ci$il %er$ice la! and r&le% and ot#erertinent la!%.

    a. Pre$enti$e %&%en%ion/ T#e local c#iefe'ec&ti$e )ay re$enti$ely %&%end for aeriod not e'ceeding @ day% any%&bordinate official or e)loyee &nder#i% a&t#ority ending in$e%tigation if t#ec#arge again%t %&c# official or e)loyeein$ol$e% di%#one%ty" ore%%ion or gra$e)i%cond&ct or neglect in t#e erfor)anceof d&ty" or if t#ere i% rea%on to belie$e

    t#at t#e re%ondent i% g&ilty of t#ec#arge% !#ic# !o&ld !arrant #i% re)o$alfro) t#e %er$ice.

    b. 7i%cilinary Action/ ,'cet a% ot#er!i%ero$ided by la!" t#e local c#ief e'ec&ti$e)ay i)o%e t#e enalty of re)o$al fro)%er$ice" de)otion in ran4" %&%en%ion fornot )ore t#an 1 year !it#o&t ay" fine inan a)o&nt not e'ceeding )ont#%

    %alary or reri)and. If t#e enaltyi)o%ed i% %&%en%ion !it#o&t ay fornot )ore t#an 9@ day%" #i% deci%ion %#allbe final* if t#e enalty i)o%ed i% #ea$ier"t#e deci%ion %#all be aealable to t#eCi$il Ser$ice Co))i%%ion !#ic# %#alldecide t#e aeal !it#in 9@ day% fro)

    receit t#ereof.

    @II. LOCAL INITIATI@$ AN' R$$R$N'UMA. Local Initiatie

    1. 7efined/ It i% t#e legal roce%%!#ereby t#e regi%tered $oter% of alocal go$ern)ent &nit )ay directlyroo%e" enact or a)end anyordinance. It )ay be e'erci%ed byall regi%tered $oter% of t#ero$ince%" citie%" )&nicialitie% andbarangay%

    2. Proce+ure:

    a. Not le%% t#an 8"@@@ regi%tered$oter% in t#e region* 1"@@@regi%tered $oter% in ca%e ofro$ince% and citie%* 1@@ $oter%in ca%e of )&nicialitie%" and=@ in ca%e of barangay%" )ayfile a etition !it# t#e%angg&nian concernedroo%ing t#e adotion"enact)ent" reeal or

    a)end)ent of an ordinance.b. If no fa$orable action i% ta4enby t#e %angg&nian concerned!it#in 9@ day% fro)re%entation" t#e roonent%"t#ro&g# t#eir d&ly a&t#ori(edand regi%tered rere%entati$e%")ay in$o4e t#eir o!er ofinitiati$e" gi$ing notice t#ereofto t#e %angg&nian concerned.

    c. T#e roo%ition %#all ben&)bered %erially" %tarting fro)Ro)an n&)eral I. T!o or )oreroo%ition% )ay be %&b)ittedin an initiati$e. T#e Co)elec orit% de%ignated rere%entati$e%#all e'tend a%%i%tance in t#efor)&lation of t#e roo%ition.

    d. Proonent% %#all #a$e 2@ day%in ca%e of ro$ince% andcitie%" @ day% in ca%e of)&nicialitie% and 9@ day% inca%e of barangay% fro) notice)entioned in b to collect t#ere:&ired n&)ber of %ignat&re%.

    e. T#e etition %#all be %ignedbefore t#e election regi%trar or

    #i% de%ignated rere%entati$e%"and in t#e re%ence of arere%entati$e of t#e roonentand a rere%entati$e of t#e%angg&nian concerned in a&blic lace in t#e localgo$ern)ent &nit.

    f. Uon t#e la%e of t#e eriod"t#e Co)elec %#all certify a% to!#et#er or not t#e re:&ired

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    n&)ber of %ignat&re% #a% beenobtained. >ail&re to obtain t#ere:&ired n&)ber of %ignat&re%defeat% t#e roo%ition.

    g. If t#e re:&ired n&)ber i%obtained" t#e Co)elec %#all %eta date for t#e initiati$e d&ring

    !#ic# t#e roo%it ion i%%&b)itted to t#e regi%tered$oter% in t#e local go$ern)ent&nit for t#eir aro$al !it#in @day% in ca%e of ro$ince%"

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    ii. 7ecide on t#e adotion of initiati$e a% alegal roce%% !#ereby t#e regi%tered$oter% of t#e barangay )ay directlyroo%e" enact or a)end any ordinance*andiii. ;ear and a%% &on t#e %e)e%tralreort of t#e %angg&niang barangay

    concerning it% acti$itie% and finance%.

    #. atarun4an4 Pa%baran4a)a. Lupon4 Ta4apa%a)apa

    T#ere i% #ereby created in eac# barangaya l&ong tagaa)ayaa" co)o%ed of t#e &nongbarangay a% c#air)an and 1@ to 8@ )e)ber%. T#eL&on %#all be con%tit&ted e$ery 9 year%.

    b. Po,ers of t-e Lupon:i. ,'erci%e ad)ini%trati$e %&er$i%iono$er t#e conciliation anel%*ii. Feet reg&larly once a )ont# to ro$idea for&) for e'c#ange of idea% a)ong it%

    )e)ber% and t#e &blic of )atter%rele$ant to t#e a)icable %ettle)ent ofdi%&te%" and to enable $ario&%conciliation anel )e)ber% to %#are !it#one anot#er t#eir ob%er$ation% ande'erience% in effecting %eedy re%ol&tionof di%&te%* andiii. ,'erci%e %&c# ot#er o!er% anderfor) %&c# ot#er d&tie% and f&nction% a%)ay be re%cribed by la! or ordinance.

    c. Pan4Dat n4 Ta4apa4Dasun+oT#ere %#all be con%tit&ted for eac# di%&tebro&g#t before t#e l&on a conciliation

    anel to be 4no!n a% t#e ang4at ngtagaag4a%&ndo" con%i%ting of 9 )e)ber%!#o %#all be c#o%en by t#e artie% to t#edi%&te fro) t#e li%t of )e)ber% of t#el&on. S#o&ld t#e artie% fail to agree ont#e ang4at )e)ber%#i" t#e %a)e %#allbe deter)ined by lot% dra!n by t#e l&onc#air)an.

    +. =ubect %atter of a%icable settle%ent:T#e L&on of eac# barangay %#all #a$ea&t#ority to bring toget#er t#e artie%act&ally re%iding in t#e %a)e city or)&niciality for a)icable %ettle)ent of alldi%&te% e'cet*i. W#ere one arty i% t#e go$ern)ent orany %&bdi$i%ion or in%tr&)entality t#ereof*ii. W#ere one arty i% a &blic officer ore)loyee" and t#e di%&te relate% to t#eerfor)ance of #i% official f&nction%*iii. Offen%e% &ni%#able by i)ri%on)ente'ceeding one 1 year or a fine ofP="@@@.@@.i$. Offen%e% !#ere t#ere i% no ri$ateoffended arty*$. W#ere t#e di%&te in$ol$e% realroertie% located in different citie% or)&nicialitie% &nle%% t#e artie% t#ereto

    agree to %&b)it t#eir difference% toa)icable %ettle)ent by an aroriatel&on*$i. 7i%&te% in$ol$ing artie% !#o act&allyre%ide in barangay% of different citie% or)&nicialitie%" e'cet !#ere %&c#barangay &nit% ad?oin eac# ot#er and t#eartie% t#ereto agree to %&b)it t#eirdifference% to a)icable %ettle)ent by anaroriate l&on*

    $ii. S&c# ot#er cla%%e% of di%&te% !#ic#t#e Pre%ident )ay deter)ine in t#eintere%t of ?&%tice or &on t#ereco))endation of t#e Secretary of&%tice.