Public Corporations Law 2 Memory Aid (2)

8/6/2019 Public Corporations Law 2 Memory Aid (2)

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ZPG & ASSOCIATES(Zambales.Pablo.Gonzales) 1

LAW ON PUBLIC CORPORATIONS

A. General Principles

1. CORPORATION—an artificial being created byoperation of law, having the right of succession andthe powers, attributes and properties expresslyauthorized by law or incident to its existence.a. PUBLIC CORPORATION—one formed andorganized for the government of a portion of the State.

2. Classes of Corporation:a. Public or Municipal—a body politic

and corporate constituted byincorporation of inhabitants of city or town for purposes of local government

thereof or as agency of State to assistin civil government of the country; oneformed and organized for thegovernment of a portion of the State.

b. Private—one formed for some privatepurpose, benefit, aim or end.

c. Quasi-Public—a private corporationthat renders public service or suppliespublic wants.

d. Quasi-corporation—publiccorporations created as agencies of State for narrow and limited purpose.

3. Elements of Municipal Corporationa. Legal creation or incorporationb. Corporate namec. Inhabitantsd. Territory

4. Dual Nature of Municipal Corporation●Every local government unit created or

organized is a body politic and corporate endowedwith powers to be exercised by it in conformity withlaw. As such, it shall exercise powers as politicalsubdivision of the National Government and as acorporate entity representing the inhabitants of itsterritory.

a. Public/Governmental—it acts as anagent of the State for the governmentof the territory and the inhabitantswithin the municipal limits; it exercisesby delegation a part of the sovereigntyof the State.

b. Private/Proprietary—it acts in asimilar category as a businesscorporation, performing functions notstrictly governmental or political; itstands for the community in theadministration of local affairs. It acts asa separate entity for its own purposes

and not as a subdivision of the State.

5. Criterion to determine whether corporation ispublic:

The relationship of the corporation to theState, i.e., if created by the State as its own agency tohelp the State in carrying out its governmentalfunctions, then it is public, otherwise, it is private.

6. De Facto Municipal Corporation

--a corporation that may exist in fact although notpoint of law because of certain defects in someessential features of its incorporation.

7. Elements of De Facto Municipal Corporation:a. A valid law authorizing incorporationb. An attempt in good faith to organize

under itc. A colorable compliance with the lawd. An assumption of corporate powers

8. Three forms of decentralization:

a. Devolution- is the transfer of power andauthority from the national government toLGUs as the territorial and politicalsubdivisions of the State. The nature of power transfer is political and the approachis territorial or areal.

b. Deconcentration- is the transfer of power,authority or responsibility, or the discretion

to plan, decide and manage from centralpoint or local levels, but within the central or national government itself. The nature of the transfer is administrative and theapproach is sectoral.

c. Debureaucratization- is the transfer of some public functions and responsibilities,which the government may perform, toprivate entities or non-governmentalorganizations; it is people’s empowermentor participation in local governance.

●Decentralization of Administration- the central

government delegates administrative powers topolitical subdivisions in order to broaden the base of government power.

●Decentralization of Power (PoliticalDecentralization)- involves abdication of politicalpower in favor of LGU’s declared autonomous.(Limbonas vs. Mangelin, 170 SCRA 786)

NOTE:●Local Autonomy- is self-governing. It is

the granting of more powers, authority, responsibilitiesand resources to the lower or local levels of agovernment system. The principle of local autonomyunder the 1987 Constitution simply meansdecentralization. It does not make the localgovernment sovereign within the state or an “imperiumin imperio.

Among the regulatory powers of the NationalGovernment Agencies transferred or devolved to the LGUsinclude the following:

1. The reclassification of agricultural lands- DAR to citiesand municipalities

2. Enforcement of environmental laws- DENR to allLGUs

3. Inspection of food products and quarantine- DOH tocities and municipalities

4. The enforcement of the National Building Code-DPWH to cities and municipalities

5. The processing and approval of subdivision plans-HLURB to cities and municipalities




6. The operation of tricycles- LTFRB to cities andmunicipalities

7. The establishment of cockpits and holding of cockfights- Philippine Gamefowl Commission to citiesand municipalities

Among the basic services and facilities devolved toLGUs include:

1. Agricultural extension and on-site research of theDepartment of Agriculture;

2. Community-based forestry project of the DENR;3. Field health and hospital services and other tertiary

health services of the DOH;4. Public works and infrastructure projects funded out of

local funds of the DPWH;5. The school building program of the DECS;6. Social welfare services of the DSWD;7. Tourism facilities and tourism promotion and

development of the DOT;

8. Telecommunications services for provinces and citiesof the DOTC;

9. Housing projects for provinces and cities; and10. Other services such as investment support.

9. How local autonomy enhances governmental andcorporate powers of LGUs:

a. Every local government unit shall have:i. Full autonomy in their exercise of proprietaryrights and management of economic enterprises.ii. Full authority to secure domestic or foreigngrants without the approval of the NGAs

concerned, unless these are projects withnational security implications, andiii. Financial undertakings for LGUs for mutualadvantage thru loans and assistance to calamity-stricken LGUs.

B. R.A. 7160—Policy and Application; ConstitutionalProvisions

1. Effectivity—January 1, 1992 2. Scope of Application (Sec. 4, RA 7160)

Applicable to:a. all provincesb. citiesc. municipalitiesd. barangayse. and other political bodies as

may be created by law, andf. to the extent provided in the

LGC (i.e. devolution of powers):-officials-offices, or -agencies of theNational Government

3. Rules of Interpretation (Sec. 5, RA 7160)

a. Any provision on a local government unitshall be liberally interpreted itsfavor, and in case of doubt, any questionthereon shall be resolved in favor of devolution of powers and of the lower localgovernment unit. Any fair and reasonabledoubt as to the existence of the power shallbe interpreted in favor of the localgovernment unit concerned;

b. In case of doubt, any tax ordinance or revenue measure shall be construed strictlyagainst the local gov’t unit enacting it, andliberally in favor of the taxpayer. Any taxexemption, incentive or relief granted by anylocal gov’t unit pur suant to the provisions of this Code shall be construed strictly againstthe person claiming it;

c. The general welfare provisions in thisCode shall be liberally interpreted togive more powers to local gov’t units inaccelerating economic developmentand upgrading the quality of life for thepeople in the community.

d. Rights and obligations existing on thedate of effectivity of this Code andarising out of contracts or any other source of prestation involving a local

gov’t unit shall be governed by theoriginal terms and conditions of saidcontracts or the law in force at the timesuch rights were vested.

e. In the resolution of controversiesarising under this Code where no legalprovision or jurisprudence applies,resort may be had to the customs andtraditions in the place where thecontroversies take place.

4. Declaration of State Policy over LGU’s

(Sec. 2, RA 7160)

a. The territorial and politicalsubdivisions of the State shallenjoy genuine and meaningfullocal autonomy to enable themto attain their fullestdevelopment as self-reliantcommunications and makethem more effective partners inthe attainment of national goals.

b. To ensure the accountability of local gov’t units through theinstitution of effectivemechanisms of recall, initiativeand referendum.

c. To require all national agenciesand offices to conduct periodicconsultations with appropriatelocal gov’t units, non-governmental and people’sorganizations and other concerned sectors of thecommunity before any projector program is implemented intheir respective jurisdictions.

II. INTER-GOVERNMENTAL RELATIONS1. National Government and Local Government Units

a. The President shall exercise general supervisionover LGUs.

i. The President shall exercisesupervisory authority directly over provinces, highly urbanized cities andindependent component cities.




ii. The President shall exercise supervisionover component cities andmunicipalities, through province, andover barangays through city andmunicipality. (Sec. 25)

The President’s power of generalsupervision over LGUs includes theauthority to investigate and imposedisciplinary measures (suspension or removal) upon elective local officials.

b. General responsibilities of the NationalGovernment towards LGUs:

i. formulate policies and set standardsand guidelines

ii. provide funding supportiii. augment basic services assigned to

LGUsiv. provide technical and other forms of

assistance and coordinate on thedischarge of NGA functions

v. ensure the participation of LGUs inplanning and implementing nationalprojects

vi. conduct mandatory consultations withLGUs

NOTE: ●No project shall be implemented by government

authorities without consultation with the local government unitsand prior approval of the Sanggunian concerned. (Sec.27)

●The requirement of prior consultation applies only tonational projects and/or programs which are to beimplemented in a particular local community. Althoughsanctioned by the national government, the operation of lotto isneither a program nor project of the national government but of charitable institution, the Philippine Charity Sweepstakes Office.The projects and programs mentioned in Sec. 27 should beinterpreted to mean projects and programs whoseenvironmental and ecological effects are among thosementioned in Sec. 26 and 27 of the LGC (Lina vs. Pano, G.R.No. 129093, August 30, 2001).

c. Extent of the LCE’s authority over NGAs and their functionaries:

i. The LCE can call upon any employeestationed or assigned in his locality toadvise him on matters affecting the LGU aswell as coordinate with said officials, plans,programs and projects.

ii. The LCE can enlist the attendance of thenational official stationed in the LGU on ameeting of elective and appointed officials of the LGU treating matters in the promotion of the general welfare of the residents.

iii. The LCE can also initiate proper administrativeor judicial action against national governmentofficial or employee who may have committedan offense while stationed or assigned in theLGU.

Power of Control and Power of GeneralSupervision distinguished:

2. Inter-Local Government Relations

a. The province, through the governor, shall ensure thatevery component city and municipality acts within itspowers.

b. The city or municipality, through the mayor, shall ensure

that barangays act within the scope of their powers.

c. The governor shall review all executive orderspromulgated by the mayor. The mayor shall review orderspromulgated by the punong barangay.

The Sangguniang Panlalawigan of a province reviewsall ordinances enacted by the Sangguniang Panlungsod of component cities and Sangguniang Bayan of municipalitiesunder their jurisdiction. In turn, the Sangguniang Panlungsod

Basis Power of Control

Power of General

Supervision

A. as tonature of

power Legislative Executive

B. as to whoexercisesthe power

Congress

President

assisted by theDILG

Secretary

C. as towhat thepower

includes

-creation,conversion of

LGUs andalteration of its

boundaries;-allocate powers,responsibilitiesand resourcesamong LGUs;-provide for

qualifications,election,

appointment,removal, term,salaries andfunctions andduties of local

officials;-provide other

matters relating tothe organizationand operation of

LGUs;

-amendment of charters of LGUs.

-overseewhether LGUsare performingtheir duties inaccordance

with law;-investigateand imposedisciplinarymeasures

upon erringelective localgovernment

officials




and Sangguniang Bayan review all ordinances passed by theSannguniang Barangay under the jurisdiction.

Likewise, the Sangguniang Panlalawigan of aprovince exercises the quasi-judicial function (administrativedisciplinary authority) of hearing and deciding administrativecases involving elective municipal and component city officials

under their jurisdiction. In turn, the Sangguniang Panlungsodand Sangguniang Bayan exercise disciplinary authority over elective barangay officials within their jurisdiction.

3. Relations with People’s Organizations and Non-Government Organizations

a. Private Sector Participation in Local GovernancePurpose: to ensure the viability of local autonomy as analternative strategy for sustainable development. LGUsshall encourage private-sector participation in thedelivery of basic services.

b. Role of POs, NGOs in the LGUs:

●LGUs shall promote the establishment and operationof people’s and non-governmental organizations asactive partners.

●LGUs may enter into joint venture and cooperativeundertakings with people’s and non-governmentalorganizations particularly in the following:

1. delivery of certain basic services2. capability building and livelihood

projects; and3. developing local enterprises designed to

improve productivity and income,diversifies agriculture, spur ruralindustrialization, and enhance theeconomic and social well-being of thepeople.

c. Special Local Bodies where the private sector mayparticipate in local governance:

1. Local Development Council-a duly constituted body which shall assist the

corresponding Sanggunian in setting the direction of economic and social development, and coordinatingdevelopment efforts in its territorial jurisdiction.

2. Prequalification, Bids and Awards Committee

(PBAC)●responsible for the conduct of prequalification of

contractors, bidding, evaluation of bids, and therecommendation of awards concerning localinfrastructure projects.

●governor or the city or municipality mayor:Chairman

3. Local Peace and Order Council, pursuant toE.O. No.309, as amended, Series of 1988.

4. Local School BoardThe DECS shall consult the Board on the

appointment of division superintendents, districtsupervisors, school principals, and other school officials.

5. Local Health Board

6. People’s Law Enforcement Board (PLEB)

III. CREATION, CONVERSION, DIVISION, MERGER ANDCONSOLIDATION, AND ABOLITION OF LGUs

A. Creation of LGUs: A local government unit may be created, divided,

merged, abolished, or its boundaries substantially altered bylaw enacted by Congress in the case of a province, city,municipality, or other political subdivisions, or by SanggunianPanlalawigan or Sanggunian Panlungsod ordinance in thecase of a barangay. (Sec.6)

NOTE:●nature of the power to create: LEGISLATIVE

1. While the power to create barangays has been delegatedto Sanggunian Panlalawigan and Sangguniang Panlungsod,Congress, in order to enhance the delivery of basic servicesin indigenous cultural communities, may create barangays in

such communities notwithstanding the requirements set forthby law. (Sec.385a, LGC)

2. The creation or conversion of a local government unit toanother level shall be based on the following verifiableindicators of viability and projected capacity to provideservices:

a. Sufficient income andb. Population and/or c. Land area

NOTE: Compliance with the above-cited indicators shall beattested by the Department of Finance, the National StatisticsOffice and the Land Management Bureau of the DENR,respectively.

3. Necessity of Fixing Corporate Limits: As a matter of general rule, municipal corporations

cannot, without legal authorization, exercise its powersbeyond its own corporate limits. It is necessary that it musthave its boundaries fixed, definite and certain, in order thatmay be identified and that all may know the exact scope or section of territory or geographical division embraced withinthe corporate limits and over which the municipal corporationhas jurisdiction. A description of the boundaries of amunicipal corporation is said to be an essential part of itscharter and necessary to corporate existence. An

incorporation is void where the boundaries of the municipalcorporation are not described with certainty.

4. Manner of Creation1. Creation of Barangays:

a. Role: serves as the primary planning andimplementing unit of government policies, plans programs,projects and activities in the community, and as a forumwherein the collective views of the people may be expressed,crystallized and considered, and where disputes may beamicably settled.

b. Who creates: a barangay may be created,

divided, merged, abolished or its boundary substantiallyaltered by law or by an ordinance of the SangguniangPanlalawigan or Sangguniang Panlungsod. Where abarangay is created by an ordinance of the SangguniangPanlalawigan, the recommendation of the SangguniangBayan concerned shall be necessary.




c. Substantive Requisites:1. Population- at least 2000 inhabitants

●Except in cities and municipalities within MetroManila or in highly urbanized cities—must be atleast 5000 inhabitants

2. Income- no minimum income requirement

3. Land Area- no minimum requirement, but itmust be contiguous but it need not becontiguous if the barangay is comprised withtwo or more islands.

NOTE: ●The creation of the new barangay shall not however reducethe population of the original barangay to less than theminimum requirement prescribed in the Code. (Sec.386,LGC)

2. Creation of Municipalitiesa. Role: serves primarily as a general purpose

government for the coordination and delivery of basic, regular and direct services and effective governance of theinhabitants within its territorial jurisdiction.

b. Who creates: may be created, divided, merged,abolished or its boundary substantially altered only by an actof Congress subject to the criteria established by the Code.

c. Substantive Requisites:1. Population- at least 25,000 inhabitants2. Income- average annual income of at least

P2.5 million for the last two consecutive yearsbased on the 1991 constant prices.

3. Land Area- a contiguous territory of 50 squarekilometers.

3. Creation of Component Citiesa. Role- serves primarily as a general purpose

government for the coordination and delivery of basic, regular and direct services and effective governance of theinhabitants within its territorial jurisdiction.

b. Who creates- may be created, divided, mergedor abolished, or its boundary substantially altered only by an

act of Congress subject to the criteria provided in the Code.

c. Substantive Requisites:1. Population- at least 150,000 inhabitants2. Income- at least P100 million for the last two

consecutive years3. Land Area- contiguous territory of at least

100 square kilometers

NOTE:●The Internal Revenue Allotments shall be included

in the computation of the average annual income of themunicipality for purposes of determining whether the

municipality may be validly converted into a city. Income isdefined in the LGC to be all revenues and receipts collectedor received forming the gross accretions of funds of the localgovernment unit. The IRAs are regular and recurring incomeand not merely special funds or transfers and/or budgetaryaids from the national government or non-recurring income.

The IRAs regularly and automatically accrue to the localtreasury without need of any further action on the part of thelocal government unit (Alvarez vs. Guingona, 252 SCRA695).

4. Conversion of a Component City into a Highly

Urbanized Citya. If a component city shall have met the minimum

requirements for a highly urbanized city, it shall be the duty of the President to declare the city as highly urbanized cityupon: (1) proper application and (2) upon ratification in aplebiscite by the majority of registered voters therein.

b. Substantive Requisites:1. Population- at least 200,000 inhabitants2. Income- at least P50 million

5. Creation of Provincesa. Role- as a political and corporate unit of

government, it serves as a dynamic mechanism for development processes and effective governance of localgovernment units within its territorial jurisdiction.

b. Who creates- may be created, divided, merged,or abolished, or its boundary substantially altered, only by anact of Congress, subject to the satisfaction of the criteria setforth by the LGC.

c. Substantive Requirements:1. Population- not less than 250,000 inhabitants2. Income- average annual income of at least

P20 million3. Land Area- a contiguous territory of at least

2000 square kilometers

NOTE: ●BP 885, which created the Province of Negros del

Norte was declared unconstitutional because it did not complywith the land area criterion prescribed under the LGC. Theuse of the word territory in Sec. 17 of the LGC refers only tothe physical mass of land area, not to the waters comprising apolitical entity. It excludes the waters over which the politicalunit exercises control (Tan vs. Comelec, 142 SCRA 727).

6. Status of Sub-provincesExisting sub-provinces are converted into regular

provinces upon the approval by a majority votes cast in aplebiscite to be held in the said sub-province and the originalprovince directly affected. (Sec.462, LGC)

7. Autonomous RegionsThe Philippine Constitution mandates the creation of

autonomous regions in Muslim Mindanao and in theCordilleras consisting of provinces, cities, municipalities, andgeographical areas sharing common and distinctive historicaland cultural heritage, and economic and social cultures.(Sec.15, Art.10, PC)

NOTE:

●RA 6734, the organic act establishing the Autonomous Regional Government of Muslim Mindanao washeld valid by the Supreme Court. (Datu Firdausi Abbas vs.COMELEC, 179 SCRA 287). However, the sole Province of Ifugao which, in the plebiscite, alone voted in favor of RA




6766, cannot validly constitute the Autonomous Region of theCordilleras. (Ordillo vs. COMELEC, 192 SCRA 100)

8. Special Metropolitan Political SubdivisionsThe Congress may, by law, create special metropolitan

political subdivisions, but the component cities and

municipalities shall retain their basic autonomy and shall beentitled to their own local executives and legislativeassemblies. The jurisdiction of the metropolitan authority thatwill be thereby created shall be limited to basic servicesrequiring coordination. (Sec. 11, Art. X, PC)

NOTE:●With the passage of RA 7924, Metropolitan Manila

was declared as a “special development and administrativeregion” and the administration of “metrowide basic servicesaffecting the region was placed under a “developmentauthority” referred to as the Metropolitan Manila Development

Authority (MMDA), whose functions were without prejudice to

the autonomy of the affected local government units. The lawdoes not grant police nor legislative powers to MMDA. Eventhe Metro Manila Council, the governing board of the MMDA,has not been delegated any legislative power. Clearly,MMDA is not a political unit. There is no grant of authority toenact ordinances and regulations for the general welfare of the inhabitants of the metropolis. MMDA cannot open for public use a private road in a private subdivision (MMDA vs.Bel-Air Village Association, Inc., G.R. No. 135962, March27, 2000).

9. Attack against invalidity of incorporationNo collateral attack shall lie; an inquiry into the legal

existence of a municipal corporation is reserved to the Statein a proceeding for quo warranto or other direct proceeding.But this rule applies only when the municipal corporation is, atleast, a de facto municipal corporation.

10. PLEBISCITE REQUIREMENT: Who shall participateSec. 10 of the LGC provides that the creation, division

and merger, abolition or substantial alteration of theboundaries of local government units must be approved by amajority of votes cast in a plebiscite in the political unit or units directly affected. Such plebiscite shall be conducted bythe COMELEC within 120 days from the date of the effectivityof the law. The completion of the publication of the lawshould be the reckoning point in determining the 120-day

period within which to conduct the plebiscite, not from thedate of its approval when the law had not yet been published.Since publication is indispensable for the effectivity of a law, aplebiscite can be scheduled only after the law creating a citytook effect. (Cawaling vs. COMELEC, Oct. 26, 2002)

The plebiscite for the creation of a new province or municipality shall include the participation of the residents of the mother province or mother municipality in order toconform to the constitutional requirement. (Padilla vs.COMELEC, 214 SCRA 735)

●In the conversion of a municipality into a componentcity, however, only the registered voters of the municipality

sought to be converted into a component city, shall participatein the plebiscite.

Summary of Substantive Requirements in the Creation of LGUs

LGU Created Income Population Land area

BarangayNo minimumrequirement

2,000 but5,000 for

MetroManila and

highly

urbanizedcities

No minimumrequirement

Municipality P2.5 million 25,000, and 50 sq.km

ComponentCity

P100 million 150,000 or 100 sq.km.

HighlyUrbanized

CityP50 million 200,000

No minimumrequirement

Province P20 million 250,000 or 2,000 sq.km.

11. Beginning of Corporate ExistenceWhen a new local government unit is created, its

corporate existence shall commence upon the election and

qualification of its chief executive and a majority members of the Sanggunian, unless some other date is fixed therefore bylaw or ordinance creating it. (Sec.14, LGC)

12. Division and Merger of LGUsThe division and merger of local government units

shall comply with the same requirements for their creation.The income, population or land area shall not be reduced toless than the minimum requirements. Likewise, the incomeclassification of the original local government unit shall not fallbelow its current income classification prior to such division.(Sec.8, LGC)

13. Abolition of LGUs A local government unit may be abolished when its

income, population or land area has been irreversibly reducedto less than the minimum standards prescribed for its creationunder the LGC, as certified by the national agencies toCongress or to the Sanggunian concerned. Likewise, the lawor, ordinance abolishing an LGU shall specify the province,city, municipality, or barangay with which the localgovernment unit sought to be abolished will be incorporatedor merged. (Sec.9, LGC)

14. Effects of Annexation/Consolidation of MunicipalCorporations

1. On the legal existence of the territoryannexed- Unless otherwise provided for bylaw, the annexation of one municipalcorporation to another will dissolve theannexed territory. It shall become part of theannexing corporation and will fall under the

jurisdiction of the latter.2. On the laws and ordinances of the annexed

corporation- In the absence of any provisionof law to the contrary, when a territory isannexed to a municipal corporation, it shallbecome subject to all the laws and ordinancesby which the annexing corporation isgoverned.

3. On the right of officers or employees of theannexed or consolidated territory to continueto hold their offices- Subject to what thelegislature may provide upon annexation, theofficers and employees of the annexed or




consolidated territory shall terminate their official relation with their offices.

4. On the title to the property of the annexedterritory- When a municipal corporation isannexed to another, the annexing territoryshall acquire title to the property of the

annexed territory at the time of annexationwithout compensation unless the annexingstatute provides otherwise. Where theannexed territory, however, forms part of amunicipality from which it is taken, thelegislature may provide for the payment of compensation for the indebtedness incurredon account of the property taken.

With regard to public buildings andimprovements located in theannexed territory, the annexing territory is notrequired to pay for said buildings or improvements as they have already been paid

for by the annexed territory. It would beotherwise if there exists an indebtedness onsaid buildings in which case, the annexingstate may be required to share in the paymentof said indebtedness.

5. On the debts and obligations of the annexedterritory- It has been stated that debts andobligations of a municipal corporationcontracted before its annexation to another territory shall be assumed by the annexingterritory in the absence of any provision to thecontrary. The same rule applies of consolidation where the consolidatingmunicipal corporation is held responsible for the indebtedness and obligations incurred bythe territories which are consolidated.

15. Effects of Division of LGUs On the legal existence of the original corporation: The

division of municipal corporation extinguishes the corporateexistence of the original municipality.

On the property, powers and rights of the originalcorporation: Unless the law provides otherwise, when amunicipal corporation is divided into two or moremunicipalities, each municipality acquires title to all theproperty, powers, rights and obligations falling within itsterritorial jurisdiction.

IV. GENERAL POWERS AND ATTRIBUTES OF LGUsA. Powers in general

1. Sources: a. Sec. 25, Art II: Secs. 5,6 and 7, Art. X, Philippine

Constitutionb. Statutes, e.g., R.A. 7160c. Charter (particularly of cities)d. Doctrine of the right of self-government, but applies

only in States which adhere to the doctrine.

2. Classifications: a. Express, implied and inherentb. Public or governmental, private or proprietaryc. Intramural or extramurald. Mandatory and directory, ministerial and discretionary

3. Execution of powers:a. Where the statute prescribes the manner of exercise,

the procedure must be followed.b. Where the statute is silent, local government units

have discretion to select reasonable means and methods of

exercise.

B. GOVERNMENTAL POWERS:1. General Welfare Clause- the statutory grant of policepower to local government units.●Limitations: a. Express grant by lawb. Exercisable only within the territorial limits of the LGU,except for protection of water supplyc. Equal protection claused. Due process clausee. Must not be contrary to the Constitution and the laws.

NOTE: A local government unit may exercise delegated

governmental powers:●Police power (under the General Welfare Clause)● Power of Taxation ● Power of Eminent Domain

a. Requisites for the validity of a municipal ordinance:1. Must not contravene the Constitution and any

statute;2. Must not be unfair or oppressive;3. Must not be partial or discriminatory;4. Must not prohibit, but may regulate trade which is

not illegal per se;5. Must not be unreasonable; and6. Must be general in application and consistent with

public policy.

● An ordinance extending burial assistance of P500 to abereaved family whose gross income does not exceedP2,000 a month, has been upheld by the Supreme Court as avalid exercise of police power. This power is organic andflexible. The care for the poor is generally recognized as apublic duty. The support for the poor has long been anaccepted exercise of police power in the promotion of common good. The police power of a municipal corporationis broad and commensurate with the duty to provide for the

real needs of the people in their health, safety, comfort, andconvenience as consistently as may be with private rights. Itextends to all the great public needs and in a broad senseincludes all legislation and almost every function of themunicipal government. (Binay vs. Domingo, 201 SCRA508)

2. Basic Services and Facilities: §17, LGC—(a) Local government units shall endeavor to

be self-reliant and shall continue exercising the powers anddischarging the duties and functions currently vested uponthem. They shall also discharge the functions and

responsibilities of national agencies and offices devolved tothem pursuant to this Code. Local government units shalllikewise exercise such other powers and discharge suchother functions and responsibilities as are necessary,appropriate, or incidental to efficient and effective provision of the basic services and facilities enumerated under the Code.




●Devolution refers to the act by which the nationalgovernment confers powers and authority upon the variouslocal government units to perform specific functions andresponsibilities. This includes the transfer to the localgovernment units of the records, equipment and other assets

and personnel of national agencies and offices.

3. Power to generate and apply resources (§18, LGC) The exercise by local governments of the power to tax

is ordained by the present Constitution (§5, Art. X, Phil.Constitution). Only guidelines and limitations that may beestablished by Congress can define and limit such power of local governments. But local governments have no power totax instrumentalities of the National Government. PAGCORbeing an instrumentality of the National Government istherefore exempt from local taxes. (Basco vs. PAGCOR,197 SCRA 52)

●Main Sources of Revenues of LGUs A. Under the Constitution

1. taxes, fees and charges (§5, Art. X)2. share in the national taxes- Internal

Revenue Allotment3. share in the proceeds of the utilization

and development of the national wealthwithin their areas (§7, Art. X)

B. Under the Local Government Code1. floating of bonds2. grants/aids

● All LGUs are empowered to create their own sources of revenue and to levy taxes, fees and charges subject to theprovisions on local taxation consistent with the basic policy of local autonomy. The Sanggunian concerned through anordinance has the power to impose a tax, fee or charge. Theprocedural requirements of public hearing and publicationmust be observed for purposes of compliance with therequirements of due process.

C. Fundamental Principles on Local taxation1. Taxation shall be uniform in each local government

unit;2. Taxes, fees, charges and other impositions shall:a. be equitable and based as far as practicable on the

taxpayer’s ability to pay;

b. be levied and collected only for public purposes;c. not be unjust, excessive, oppressive or

confiscatory;d. not be contrary to law, public policy, national

economic policy, or in restraint of trade.3. The collection of taxes, fees, charges and other

impositions shall in no case be let to any privatepersons;

4. The revenue collected pursuant to the provisions of the LGC shall inure solely to the benefit of, and besubject to disposition by, the local government unitlevying the tax, fee, charge or other impositionunless otherwise specifically provided herein; and

5. Each local government unit shall, as far aspracticable, evolve a progressive system of taxation.

NOTES:●Shares of LGUs in the proceeds of national taxes

The share of the LGU in Internal Revenue Taxes is40%. The 40% IRA is allocated to LGUs as follows: for provinces and cities- 23%; for municipalities- 34%; for barangays- 20%.

No less than 20% of the IRA is allotted for development project by the local unit from the IRA.

●Shares in National Wealth40% of the gross collection from mining taxes,

royalties, forestry and fishery charges, and from each share inany joint effort in utilizing and developing the national wealthwithin the LGU’s jurisdiction and shall be remitted withoutneed for further action to the local treasurer on a quarterlybasis within five days after the end of every quarter.

LGUs shall receive 1% of the gross sale or receipts of the preceding calendar year and 40% of taxes, fees or charges that GOCCs would have paid if not tax exempt,whichever is higher.

●How National Wealth is Distributed If the national wealth is located in one province, the

province shall receive 20%, the component city/municipalityshall receive 45% and the barangays 35%.

If the national wealth is located in two or more LGUs,distribution shall be based on the following: population- 70%and land area- 30%.

If the national wealth is located in highly urbanized cityor independent component city, the HUC or ICC shall receive65% and the barangays shall receive 35%.

D. Fundamental Principles of Local FiscalAdministration

1. No money shall be paid out of the local treasuryexcept in pursuance of an appropriation ordinance or law;

2. Local government funds and monies shall bespent solely for public purposes;

3. Local revenue is generated only from the sourcesexpressly authorized by law or ordinance, and collectionthereof shall at all times be acknowledged properly;

4. All monies officially received by a localgovernment officer in any capacity or on any occasion shallbe accounted for as local funds, unless otherwise provided bylaw;

5. Trust funds in the local treasury shall not be paidout except in fulfillment of the purpose for which the trust iscreated or the funds received.

6. Every officer of the local government unit whoseduties permit or require the possession or custody of localfunds shall be properly bonded, and such officer shall beaccountable and responsible for said funds and for thesafekeeping thereof in conformity with the provisions of law.

7. Local governments shall formulate sound financialplans, and the local budgets shall be based on functions,activities and projects, in terms of expected results.

8. Local budget plans and goals shall, as far aspracticable, be harmonized with national development plans,goals and strategies in order to optimize the utilization of resources and to avoid duplication in the use of fiscal andphysical resources.

9. Local budgets shall operationalize approveddevelopment plans.

10. Local government units shall ensure that their respective budgets incorporate the requirements of their component units and provide for equitable allocation of resources among these component units.




11. National planning shall be based on localplanning to ensure that the needs and aspirations of thepeople as articulated by the local government units in their respective local development plans are considered in theformulation of budgets of national line agencies or offices.

12. Fiscal responsibility shall be shared by all those

exercising authority over the financial affairs, transactions,and operations of the local government units.

13. The local government unit shall endeavor to havea balanced budget in each fiscal year of operation.

4. Eminent Domain (§19, LGC)

The power to expropriate private property has beendelegated by Congress to LGUs under §19, LGC. Theexercise by LGUs of the power of eminent domain are subjectto the usual constitutional limitations such as necessity,private property, taking, public use, just compensation and

due process of law.The determination of whether there is genuine

necessity for the exercise of the power of eminent domain is a justiciable question when exercised by the LGUs andgenerally a political question when exercised by Congress.

NOTE:Private property already devoted to public use can still be asubject of expropriation by Congress but not by LGUs.

The additional limitations on the exercise of the power of eminent domain by LGUs are, as follows:1. Exercised only by the local chief executive, acting pursuantto a valid ordinance;2. For public use or purpose or welfare, for the benefit of thepoor and the landless;3. Only after a valid and definite offer had been made to, andnot accepted by, the owner;4. An LGU shall file a complaint for expropriation on thestrength of an ordinance and not a mere resolution passed bythe Sanggunian. (Municipality of Paranaque vs. VM RealtyCorp., 292 SCRA 676)

●The promulgation of the ordinance authorizing the localchief executive to exercise the power must be promulgatedprior to the filing of the complaint for eminent domain with theproper court, and not after the court shall have determined

the amount of just compensation to which the defendant isentitled. (Heirs of Suguitan vs. City of Mandaluyong, 328 SCRA 137)

NOTE: ● An LGU may immediately take possession of the propertyupon filing of expropriation proceedings and deposit in courtof 15% of the FMV of the property.

5. Other powersa. Reclassification of lands (§20, RA 7160)

A city or municipality may, through an ordinancepassed after conducting public hearings for the

purpose, may authorize the reclassification of agricultural lands and provide for the manner of their utilization or their disposition:

i. When the land ceases to be economicallyfeasible and sound for agricultural

purposes as determined by theDepartment of Agriculture;

ii. Where the land shall have substantiallygreater economic value for residential,commercial or industrial purposes asdetermined by the sanggunian; provided that

such reclassification shall be limited to thefollowing percentage of the total agriculturalland area at the time of the passage of theordinance:

●for highly urbanized cities and independentcomponent cities: 15%●for component cities and 1st to 3rd classmunicipalities: 10%●for 4th and 6th class municipalities: 5%

●Provided that agricultural land distributed to land reformbeneficiaries shall not be affected by such reclassification.

b. Closure and opening of roads (§21, RA 7160) A local government unit may, pursuant to

an ordinance, permanent or temporarily close or open anylocal road, alley, park, or square falling within its jurisdiction,provided that in case of permanent closure, such ordinancemust be approved by at least 2/3 of all the members of thesanggunian, and when necessary, and adequate substitutefor the public facility shall be provided.

NOTE: ● Additional limitations in case of permanent closure:

i. Adequate provision for the maintenance of publicsafety must be made;

ii. The property may be used or conveyed for anypurpose for which other real property may belawfully used or conveyed, but no freedom parkshall be closed permanently without provision for itstransfer or relocation to a new site.

●Temporary closure may be made during an actualemergency, fiesta celebrations, public rallies, etc.

c. Naming of LGUs, public places, streets andstructures

1. Provinces- The sangguniang panlalawigan maychange the name of the following within its territorial

jurisdiction:i. Component cities and municipalities,

upon the recommendation of the sangguniangconcerned;

ii. Provincial roads, avenues, boulevards,thoroughfares and bridges;

iii. Public vocational or technical schoolsand other post secondary and tertiary schools;

iv. Provincial hospitals, health centers,and other health facilities; and

v. Any other public place or buildingowned by the provincial government.

2. Highly Urbanized and IndependentComponent Cities- The sanggunians of HUCs and ICCsmay change the name of the following within its territorial

jurisdiction:




i. City barangays, upon therecommendation of the sangguniang barangayconcerned;

ii. City roads, avenues, boulevards,thoroughfares, and bridges;

iii. Public elementary, secondary and

vocational or technical schools, community collegesand non-chartered colleges;

iv. City hospitals, health centers andother health facilities; and

v. Any other public place or buildingowned by the city government.

3. Component Cities and Municipalities- Thesanggunians of component cities and municipalities maychange the name of the following within its territorial

jurisdiction:i. City and municipal barangays, upon

recommendation of the sangguniang barangay

concerned;ii. City, municipal and barangay roads,

avenues, boulevards, thoroughfares, and bridges;iii. City and municipal public elementary,

secondary and vocational or technical schools,post-secondary and other tertiary schools;

iv. City and municipal hospitals, healthcenters and other health facilities; and

v. Any other public place or buildingowned by the municipal government.

NOTES: ●None of the foregoing local government units, institutions,places, or buildings shall be named after a living person, nor may a change of name be made unless for a justifiablereason and, in any case, not oftener than once every tenyears. The name of a local government unit or a public place,street or structure with historical, cultural, or ethnicsignificance shall not be changed, unless by a unanimousvote of the sanggunian concerned and in consultation with thePhilippine Historical Commission.

●A change of name of a public school shall be made onlyupon the recommendation of the local school boardconcerned.

●A change of name of public hospitals, health centers, and

other health facilities shall be made only upon therecommendation of the local health board concerned.

●The change of name of any local government unit shall beeffective only upon ratification in a plebiscite conducted for the purpose in the political unit directly affected.●In any change of name, the Office of the President, the representative of the legislative district concerned, and theBureau of Posts shall be notified. (§13, LGC)

d. Settlement of boundary disputes (§118 a-d,RA 7160):

Boundary disputes between and among

local government units shall, as much as possible,be settled amicably. To this end:

a. Boundary disputes involving twoor more barangays in the samecity or municipality shall bereferred for settlement to the

sangguniang panlungsod or sangguniang bayan concerned.

b. Boundary disputes involving twoor more municipalities within thesame province shall be referredfor settlement to the

sangguniang panlalawiganconcerned.

c. Boundary disputes involvingmunicipalities or componentcities of different provinces shallbe jointly referred for settlementto the sanggunians of theprovinces concerned.

d. Boundary disputes involving acomponent city or municipalityon the one hand and a highlyurbanized city on the other, or two or more highly urbanized

cities, shall be jointly referred for settlement to the respectivesanggunians of the parties.

Procedure:In the event the sanggunian fails to effect an

amicable settlement within 60 days from the date the disputewas referred thereto, it shall issue a certification to that effect.Thereafter, the dispute shall be formally tried by thesanggunian concerned which shall decide the issue within 60days from the date of the certification referred to above.

Within the time and manner prescribed by the Rulesof Court, any party may elevate the decision of thesanggunian concerned, any party may elevate the decision of the sanggunian concerned to the proper Regional Trial Courthaving jurisdiction over the area in dispute. The RegionalTrial Court shall decide the appeal within one (1) year fromthe filing thereof. Pending final resolution of the case, thedisputed area prior to the dispute shall be maintained andcontinued for all legal purposes. (§119, LGC)

e. Authority over police units (§6, Art. XVI,Philippine Constitution)

The State shall establish and maintain one policeforce, which shall be national in scope and civilian incharacter, to be administered and controlled by a NationalPolice Commission. The authority of local executives over the police units in their jurisdiction shall be provided by law.

6. LOCAL LEGISLATIVE POWERA. Products of legislative action

1. Ordinance- prescribes a rule of conduct.

2. Resolution- of temporary character,or expresses sentiment.

B. Requisites for validity: 1. Must not contravene the Constitution

and any statute2. Must not be unfair or oppressive3. Must not be partial or discriminatory

4. Must not prohibit, but may regulatetrade

5. Must not be unreasonable6. Must be general in application and

consistent with public policy.




Approval of ordinances:Ordinances passed by the sangguniang

panlalawigan, sangguniang panlungsod or sangguniangbayan shall be approved:If the local chief executive approves the same, affixing hissignature on each and every page thereof.

If the local chief executive vetoes the same, and the veto isoverridden by 2/3 vote of all the members of the sanggunian.

●Where petitioner was charged with falsification of a publicdocument for approving a resolution which purportedlyappropriated money to pay for the terminal leave of 2employees when actually no such resolution was passed, thepetitioner argued that his signature on the resolution wasmerely ministerial. The Supreme Court disagreed, sayingthat the grant of the veto power accords the Mayor thediscretion whether or not to approve the resolution. (De LosReyes vs. Sandiganbayan, G.R. 121215, Nov. 13, 1997)

NOTES:

1. The vice governor, the vice mayor and the punongbarangay shall be the presiding officer of the sanggunians butshall vote only in case of tie.

2. In case of inability of the presiding officer, the membersshall elect a temporary presiding officer from amongthemselves. (§49)

3. For disorderly behavior and absence without justifiablecause for 4 consecutive sessions, a member may becensured, reprimanded, excluded from the session,suspended for not more than 60 days, or expelled.Suspension or expulsion shall require concurrence of at least2/3 of all sanggunian members. A member sentenced byfinal judgment to imprisonment for at least one year for acrime involving moral turpitude shall be automaticallyexpelled. (§50)

4. Every sanggunian member, upon assumption of officeshall make a full disclosure of his business and financialinterests. He shall also disclose any business, financial or professional relationship or any relationship within the 4 th degree which he may have with anyone affected by anyordinance or resolution of the sanggunian which involves a

conflict of interests.●Such relationship includes:

i. Investment in the entity to which the ordinancemay apply

ii. Contracts with any person to which the ordinancemay apply

●Conflict of interests refers to a situation where asanggunian member may not act in the public interest due topersonal consideration that may affect his judgment to theprejudice of the public. (§51)

5. A special session may be called by the local chief executive or a majority of the sanggunian members. Unless

concurred in by 2/3 vote of the members present, no matter may be reconsidered at the special session except thosestated in the notice. (§52)6. A majority of all the members of the sanggunian shallconstitute a quorum. (§53)

7. An ordinance shall be approved by the local chief executive by affixing his signature in each and every pagethereof.

8. The governor or mayor may veto any item in the followingcases:

a. Particular item or items in an appropriationsordinance

b. Ordinance adopting a local development plan andpublic investment program

c. Ordinance directing the payment of money or creating liability. (§55)

9. The grounds for veto are:a. The ordinance is ultra viresb. Or that it is prejudicial to public welfare

10. The veto shall be communicated to the sanggunian within15 days in the case of a province and 10 days in the case of a

city or municipality; otherwise, the ordinance shall be deemedapproved, as if he signed it. The sanggunian may overridethe veto by 2/3 of all its members. (§54)

11. Ordinances enacted by the sangguniang barangay shall,upon approval by a majority of all its members, be signed bythe Punong Barangay. The latter has no veto power.

12. Reviewa. The sangguniang panlalawigan shall review

ordinances and resolution of cities andmunicipalities to determine if they are within their power. (§56)Procedure:

Within 3 days after approval, thesecretary of the sangguniang panlungsod (incomponent cities) or sangguniang bayan shallforward to the sangguniang panlalawigan for reviewcopies of approved ordinances and resolutionsapproving the local development plans and publicinvestment programs formulated by the localdevelopment councils. The sangguniangpanlalawigan shall review the same within 30 days;if it finds that the ordinance or resolution is beyondthe power conferred upon the sangguniangpanlungsod or sangguniang bayan concerned, itshall declare such ordinance or resolution invalid in

whole or in part. If no action is taken within 30days, the ordinance or resolution is presumedconsistent with law, and therefore, valid.

b. The sangguniang panlungsod or bayan shall reviewsangguniang barangay ordinances to determine if they are lawful. (§57)

●Procedure:Within 10 days from enactment, the sangguniang

barangay shall furnish copies of all barangay ordinancesto the sangguniang panlungsod or sangguniang bayanfor review. If the reviewing sanggunian finds the

barangay ordinances inconsistent with law or city or municipal ordinances, the sangguniang concerned shall,within 30 days from receipt thereof, return the same withits comments and recommendations to the sangguniangbarangay for adjustment, amendment or modification, inwhich case the effetivity of the ordinance is suspended




until the revision called for is effected. If no action istaken by the sangguniang panlungsod or sangguniangbayan within 30 days, the ordinance is deemedapproved.

13. Enforcement of disapproved ordinances/resolutions:

Any attempt to enforce an ordinance or resolutionapproving the local development plan and public investmentprogram, after the disapproval thereof, shall be sufficientground for the suspension or dismissal of the official or employee concerned.

14. Effectivitya. Unless otherwise stated in the ordinance, it shall

take effect after 10 days from posting at theprovincial capitol or city, municipal or barangay halland two other conspicuous places.

b. The gist of all ordinances with penal sanction shallbe published in a newspaper of general circulation

in the province. In the absence of such newspaper,the ordinance shall be posted in all municipalitiesand cities of the province where the sanggunian of origin is situated.

c. In highly urbanized and independent componentcities, in addition to posting, the main features of the ordinance shall be published in a localnewspaper of general circulation. In the absence of such newspaper, it shall be published in anynewspaper of general circulation. (§59

C. Corporate Powers (§22, RA 7160)1. To have continuous succession in its corporate name2. To sue and be sued3. To have and use a corporate seal4. To acquire and convey real or personal property

a. The local government unit may acquire real or personal, tangible or intangible property, in anymanner allowed by law, e.g., sale, donation,etc.

b. The local government unit may alienate onlypatrimonial property, upon proper authority.

c. In the absence of proof that the property wasacquired through corporate or private funds,the presumption is that it came from the Stateupon the creation of the municipality and, thus,is governmental or public property. (Salas vs.

Jarencio, 48 SCRA 734; Rebuco vs.Villegas, 55 SCRA 656)

d. Town plazas are properties of public dominion;they may be occupied temporarily, but only for the duration of an emergency (Espiritu vs.Municipal Council of Pozorrubio,Pangasinan, 102 Phil. 866).

e. A public plaza is beyond the commerce of man, and cannot be the subject of lease or other contractual undertaking. And, evenassuming the existence of a valid lease of thepublic plaza or part thereof, the municipalresolution effectively terminated the

agreement, for it is settled that the policepower cannot be surrendered or bargainedaway through the medium of a contract(Villanueva vs. Castaneda, 154 SCRA 142).

5. Power to enter into contracts

a. Requisites of a valid municipal contractsi. The local government unit has the

express, implied or inherent power toenter into the particular contract.

ii. The contract is entered into by theproper department, board, committee,

officer or agent. Unless otherwiseprovided by the Code, no contractmay be entered into by the local chief executive on behalf of the localgovernment unit without prior authorization by the sangguniangconcerned.

iii. The contract must comply with certainsubstantive requirements, i.e., whenexpenditure of public fund is to bemade, there must be an actualappropriation and a certificate of availability of funds.

iv. The contract must comply with theformal requirements of writtencontracts, e.g., the Statute of Frauds.

b. Ultra vires contracts When a contract is entered into without

compliance with the first and the third requisites(above), the same is ultra vires and is null and void.Such contract cannot be ratified or validated.Ratification of defective municipal contracts ispossible only when there is non-compliance with thesecond and/or fourth requirements above.Ratification may be express or implied.

c. Authority to negotiate and secure contracts (§23,RA 7160)

The local chief executive may, upon authority of the sanggunian, negotiate and secure financialgrants or donations in kind, in support of the basicservices and facilities enumerated under §17, fromlocal and foreign assistance agencies withoutnecessity of securing clearance or approval fromany department, agency, or office of the nationalgovernment or from any higher local governmentunit; Provided, that projects financed by such grantsor assistance with national security implicationsshall be approved by the national agencyconcerned.

6. To exercise such other powers as are granted tocorporations, subject to limitations provided in the Codeand other laws.

V. MUNICIPAL LIABILITY

A. Specific provisions making LGUs liable:a. §24, RA 7160- Liability for damages- Local

government units and their officials are not exemptfrom liability for death or injury to persons or damageto property.

b. Art. 2189, NCC- The local government unit is liablein damages for death or injuries suffered by reasonof the defective condition of roads, streets, bridges,public buildings and other public works.

c. Art. 2180, (par.6), NCC- The State is responsiblewhen it acts through a special agent.




d. Art. 34, NCC- The local government unit issubsidiarily liable for damages suffered by a personby reason of the failure or refusal of a member of thepolice force to render aid and prosecution in case of danger to life and property.

2. Liability for Torta. If the local government unit is engaged in

governmental functions, it is NOT liable.b. If engaged in proprietary functions, local government

unit is liable.●Holding of town fiesta is a proprietary function.The Municipality of Malasique, Pangasinan, washeld liable for the death of a member of the zarzuelagroup when the stage collapsed, under the principleof respondeat superior.

NOTE:●The municipal council managed the town fiesta.

While the municipality was held liable, the councilorsthemselves are not liable for the negligence of their employees or agents. (Torio vs. Fontanilla, 85 SCRA 599)

c. Personal Liability of local officials

3. Liability for violation of law

Case:The Municipality of Bunawan, Agusan del Sur,

through the Mayor, was held in contempt and fined P1,000.00with a warning, because of the refusal of the Mayor to abideby a Temporary Restraining Order issued by the Court(Moday vs. CA, 243 SCRA 152).

4. Liability for contractsa. General Rule- A municipal corporation, like an

ordinary person, is liable on a contract it enters into,provided that the contract is intra vires. If thecontract is ultra vires, the munipal corporation is notliable.

NOTES:●A private individual who deals with a municipalcorporation is imputed constructive knowledge of theextent of the power or authority of the municipalcorporation to enter into contracts.

●Ordinarily, therefore, the doctrine of estoppel does notlie against municipal corporation.

b. Doctrine of Implied Municipal Liability- Amunicipality may become obligated upon an impliedcontract to pay the reasonable value of the benefitsaccepted or appropriated by it as to which it has thegeneral power to contract (Province of Cebu vs.IAC, 147 SCRA 447).

The doctrine applies to all cases where money or property of a party is received under suchcircumstances that the general law, independent of an express contract, implies an obligation to do

justice with respect to the same.Thus, in this case, the Province of Cebu cannot

set up the plea that the contract was ultra vires andstill retain benefits thereunder. Having regarded thecontract as valid for purposes of reaping benefits,

the Province of Cebu is estopped to question itsvalidity for the purpose of denying answerability.

VI. LOCAL OFFICIALS

A. Provisions applicable to elective and appointiveofficials

1. §89, RA 7160: Prohibited business and pecuniaryinterest- It shall be unlawful for any local government officialor employee, directly or indirectly, to:

a. Engage in any business transaction with the localgovernment unit in which he is an official or employee or over which he has the power of supervision, or with any of its authorized boards,officials, agents, or attorneys, whereby money isto be paid, or property or any other thing of valueis to be transferred, directly or indirectly, out of theresources of the local government unit to such

person or firm;b. Hold such interests in any cockpit or other games

licensed by a local government unit;c. Purchase any real estate or other property

forfeited in favor of such local government unit for unpaid taxes or assessment, or by virtue of a legalprocess at the instance of the said localgovernment unit;

d. Be a surety for any person contracting or doingbusiness with the local government unit for whicha surety is required; and

e. Possess or use any public property of the localgovernment unit for private purposes.

f. The prohibitions and inhibitions prescribed in RA6713 also apply.

2. Practice of Profession (§90, RA 7160) a. Governors or mayors are prohibited from

practicinìstrative proceedings involving the localgovernment unit of which he is an official.iv. Use property and personnel of the governmentexcept when the sanggunian member isdefending the interest of the government.

Case:It was held that by appearing as counsel for

dismissed employees, City Councilor Javellana violated the

prohibition against engaging in private practice if suchpractice represents interests adverse to the government.(Javellana vs. DILG, 212 SCRA 475)

b. Physicians may practice their profession evenduring office hours only on emergencies andwithout monetary compensation.

3. Prohibition against appointment (§94, RA 7160)a. No elective or appointive local official shall be

eligible for appointment or designation to anypublic office during his tenure.

b. Unless otherwise allowed by law or by the primaryfunction of his office, no elective or appointive

local official shall hold any other office.c. Except for losing candidates in barangay

elections, no candidate who lost in any electionshould be appointed to any office within one year after election.




B. ELECTIVE LOCAL OFFICIALS

1. Qualifications:a. Common qualifications:

i. Filipino Citizenii. Registered voter of the local government unit, or

of the district where he intends to be elected in thecase of the members of the sanggunian.iii. Resident therein for at least one year immediately before the electioniv. Ability to read and write Filipino or any other local dialect.

b. Agei. Candidates in provinces and highly urbanizedcities- at least 23 years oldii. Candidates for mayor and vice mayor of component cities and municipalities- at least 21years oldiii. Candidates for sanggunian members in

component cities and municipalities- at least 18years oldiv. Barangay officials- at least 18 years oldv. Sangguniang Kabataan- at least 15-21 years

NOTES:●Age- must be possessed on the day of the election.●The LGC does not specify any particular date when thecandidate must possess Filipino citizenzship. Philippinecitizenship is required to ensure that no alien shall govern our people. An official begins to govern only upon hisproclamation and on the day that his term begins. SinceFrivaldo took his oath of allegiance on June 30, 1995, whenhis application for repatriation was granted by the Specialcommittee on Naturalization created under PD 825, he wastherefore qualified to be proclaimed. Besides, §39 of the LGCspeaks of qualifications of elective officials, not of candidates(Frivaldo vs. COMELEC, 271 SCRA 767).

●Petitioner was over 21 years of age on the day of theelection was ordered disqualified by the Supreme Court whenthe latter rejected the contention of the petitioner that she wasqualified because she was less than 22 years old. Thephrase “not more than 21 years old” is not equivalent to “lessthan 22 years old” (Garvida vs. Sales).

2. Disqualifications (§40, RA 7160)- The following are

disqualified from running for any elective local position:a. Those sentenced by final judgment for an

offense involving moral turpitude or for anoffense punishable by one year or more of imprisonment, within two years after servingsentence;

b. Those removed from office as a result of anadministrative case;

c. Those convicted by final judgment for violatingthe oath of allegiance to the Republic;

d. Those with dual citizenship;e. Fugitives from justice in criminal or non-

political cases here or abroad;

f. Permanent residents in a foreign country or those who have acquired the right to resideabroad and continue to avail of the same rightafter the effectivity of the Code; and

g. The insane or feeble-minded.

3. Manner of Electiona. The governor, vice-governor, city or

municipal mayor, city or municipal vice-mayor and punong barangay shall be elected atlarge in their respective units. Thesangguniang kabataan chairman shall be

elected by the registered voters of thekatipunan ng kabataan.

b. The regular members of the sangguniangpanlalawigan, panlungsod and bayan shallbe elected by district, as may be provided bylaw. The presidents of the leagues of sanggunian members of component citiesand municipalities shall serve as ex officiomembers of the sangguniang panlalawiganconcerned. The presidents of the liga ngmga barangay and the pederasyon ng mgasangguniang kabataan elected by their respective chapters, shall serve as ex officio

members of the sangguniang panlalawigan,panlungsod or bayan.

c. In addition, there shall be one sectoralrepresentative from the women, one from theworkers, and one from any of the followingsectors: urban poor, indigenous culturalcommunities, disabled persons, or any other sector as may be determined by thesanggunian concerned within 90 days prior tothe holding of the next local elections as maybe provided by law. The Comelec shallpromulgate the rules and regulations toeffectively provide for the election of suchsectoral representatives.

4. Date of Election Every three years on the second Monday of May,

unless otherwise provided by law.

5. Term of Office Three years, starting from noon of June 30, 1992,

or such date as may be provided by law, except that of elective barangay officials. No local elective official shallserve for more than three consecutive terms in the sameposition. The term of office of barangay officials andmembers of the sangguniang kabataan shall be for five years,which shall begin after the regular election of barangay

officials on the second Monday of May, 1997. (R.A. 8524)

●The three-term limit on a local official is to be understood torefer to terms for which the official concerned was elected.Thus, a person who was elected Vice Mayor in 1988 andwho, because of the death of the Mayor, became Mayor in1989, may still be eligible to run for the position of Mayor in1998, even if elected as such in 1992 and 1995 (Borja v.Comelec, G.R. No. 133495, Sept. 3, 1998).

6. Rules on Succession (§44-46, RA 7160)A. Permanent vacancies: A permanent vacancy ariseswhen an elective local official fills a higher vacant office,

refuses to assume office, fails to qualify, dies, is removedfrom office, voluntarily resigns, or is permanentlyincapacitated to discharge the functions of his office.a. Governor and Mayor

i. Vice Governor and Vice Mayor ii. Sanggunian members according to ranking




b. Punong barangayi. Highest ranking sanggunian member ii. Second highest ranking sangguniang barangaymember

c. Ranking in the sanggunian shall be determined onthe basis of the proportion of the votes obtained to

the number of registered votes in each district.d. Ties will be resolved by drawing of lots. (§44)e. Sanggunian:

i. Provinces, highly urbanized cities and independentcomponent cities- appointment by the Presidentii. Component city and municipality- appointment bygovernor iii. Sangguniang barangay- appointment by mayor iv. Except for the sangguniang barangay, theappointee shall come from the political party of themember who caused the vacancy.

NOTE:

● A nomination and a certificate of membership of theappointee from the highest official of the political partyconcerned are conditions sine qua non, and any appointmentwithout such nomination and certificate shall be null and voidand shall be a ground for administrative action against theofficial concerned.

v. If the member does not belong to any party, theappointee shall be recommended by thesanggunian.vi. The appointee for the sangguniang barangayshall be recommended by the sangguniangbarangay.vii. Vacancy in the representation of the youth andthe barangay in the sanggunian shall be filled by theofficial next in rank of the organization. (§45)

B. Temporary vacancya. When the governor, mayor or punong barangay is

temporarily incapacitated to perform his duties, thevice governor, vice mayor, or ranking sangguniangbarangay member shall exercise his powers exceptthe power to appoint, suspend or dismissemployees, which can only be exercised after 30working days.

b. When the local chief executive is traveling withinthe Philippines for not more than 3 consecutive

days, he may designate an officer-in-charge. Theauthorization shall specify the powers of the officer-in-charge except the power to appoint, suspend or dismiss employees.

c. If the local chief executive does not issue theauthorization, the vice governor, vice mayor, or highest ranking sangguniang barangay member shall assume his powers on the fourth day of hisabsence. (§46)

7. Compensation (§81, R.A. 7160)The compensation of local officials and personnel shall be

determined by the sanggunian concerned, subject to the

provisions of R.A. 6758 (Compensation and PositionClassification Act of 1989). The elective barangay officialsshall be entitled to receive honoraria, allowances and other emoluments as may be provided by law or barangay,municipal or city ordinance, but in no case less than P1,000

per month for the punong barangay and P600 for thesangguniang barangay members.

●Elective local officials shall be entitled to the same leaveprivileges as those enjoyed by appointive local officials,including the cumulation and commutation thereof.

7. Recall- termination of official relationship of an electiveofficial for loss of confidence prior to the expiration of his termthrough the will of the electorate.

a. By whom exercised- by the registered voters of alocal government unit to which the local elective officialsubject to such recall belongs. (§69, R.A. 7160)b. Two modes of initiating recall:

i. By a preparatory recall assemblyii. By the registered voters of the local government

unitc. Preparatory recall assembly- composed of the

following:i. Provincial level: All mayors, vice mayors andsanggunian members of the municipalities andcomponent cities.ii. City level: All punong barangay andsangguniang barangay members in the city.iii. Legislative district level: Where sangguniangpanlalalwigan members are elected by district, allelective municipal officials in the district; and incases where sangguniang panglungsod membersare elected by district, all elective barangay officialsin the district.iv. Municipal level: All punong barangay andsangguniang barangay members in themunicipality.

d. Procedure for initiating recall by preparatory recallassembly

A majority of all the preparatory recall assemblymembers may convene in session in a public place andinitiate a recall proceeding against any elective official in thelocal government unit concerned. Recall of provincial, city or municipal officials shall be validly initiated through aresolution adopted by a majority of all the members of thepreparatory recall assembly concerned during its sessioncalled for that purpose.

Case:It was held that notice to all the members of the

Preparatory Recall Assembly is imperative; thus, where theresolution was adopted without giving notice to all themembers of the PRA, the same is fatally flawed (Garcia vs.Comelec, G.R. No. 111511, October 5, 1993) . However, inMalonzo vs. Comelec, G.R. No. 127066, March 11, 1997, itwas held that where the Comelec has already conducted aninvestigation and found the initiatory recall proceedings to bein accord with law, there is no necessity for the SupremeCourt to refer the matter of the veracity of the questionednotices back to the Comelec.

e. Initiation of recall by registered voters: Recall of aprovincial, city, municipal or barangay official may also bevalidly initiated upon petition by at least 25% of the totalnumber of registered voters in the local government unitconcerned during the election in which the local official soughtto be recalled was elected.




f. Procedure:i. A written petition for recall duly signed before theelection registrar or his representative, and in thepresence of a representative of the petitioner andrepresentative of the official sought to be recalled,

and in a public place in the province, city,municipality or barangay, as the case may be, shallbe filed with the Comelec through its office in thelocal government unit concerned.ii. The Comelec or its duly authorizedrepresentative shall cause the publication of thepetition in a public and conspicuous place for aperiod of not less than 10 days nor more than 20days, for the purpose of verifying the authenticityand genuineness of the petition and the requiredpercentage of voters.iii. Upon the lapse of the aforesaid period, theComelec or its duly authorized representative shall

announce the acceptance of candidates to theposition and thereafter prepare the list of candidateswhich shall include the name of the official sought tobe recalled.

●The elective local official sought to be recalled shall not beallowed to resign while the recall process is in progress.●Limitations on Recall:

1. Any elective local official may be the subject of a recallelection only once during his term of office for loss of confidence.

2. No recall shall take place within one year from the dateof the official’s assumption to office or one year immediatelypreceding a regular local election.●The official sought to be recalled is automatically acandidate.●Recall shall be effective upon the election and proclamationof successor receiving the highest number of votes.

9. Resignation of elective local officials shall be deemedeffective only upon acceptance by the followingauthorities:

a. The President, in case of governors, vicegovernors, and mayors and vice mayors of highlyurbanized cities and independent componentcities;

b. The governor, in case of municipal mayors and

vice mayors, city mayors and vice mayors of component cities;

c. Sanggunian concerned, in case of sangguniangmembers; and

d. The city or municipal mayor, in case of barangayofficials.

●Effectivity:c. Resignation takes effect upon acceptance.d. It is deemed accepted if not acted upon within 15

working days.e. Irrevocable resignation by sanggunian members

takes effect upon presentation before an open

session. (§82, R.A. 7160)

10. Grievance Procedure (§83, R.A. 7160)- The local chief executive shall establish a procedure to inquire into, act upon,resolve or settle complaints and grievances presented bylocal government employees.

11. Discipline (§60-68, R.A. 7160)a. Grounds for disciplinary action: An elective local

official may be disciplined, suspended, or removed from officeon any of the following grounds:

i. Disloyalty to the Republic of the Philippines.

ii. Culpable violation of the Constitutioniii. Dishonesty, oppression, misconduct in office,

gross negligence, or dereliction of duty.iv. Commission of any offense involving moral

turpitude or an offense punishable by at least prision mayor.v. Abuse of authority.

vi. Unauthorized absence for 15 consecutiveworking days, except in the case of members of thesangguniang panlalawigan, panlungsod, bayan andbarangay.

vii. Application for, or acquisition of, foreigncitizenship or residence or the statusì Elective barangayofficials, shall be filed before the sangguiniang panlungsod or

sangguniang bayan concerned, whose decision shall be finaland executory.

c. Notice of Hearing (§62, R.A. 7160)- (a) Within 7days after the administrative complaint is filed, the Officeof the President or the sanggunian concerned as thecase may be, shall require the respondent to submit hisverified answer within 15 days from receipt thereof, andcommence the investigation of the case within 10 daysafter the receipt of such answer of the respondent.

(b) When the respondent is an elective official of aprovince or highly urbanized city, such hearing andinvestigation shall be conducted in the place where herenders or holds office. For all other local electiveofficials, the venue shall be the place where thesanggunian concerned is located.

(c) However, no investigation shall be held within 90days immediately prior to any local election, and nopreventive suspension shall be imposed prior to the 90-day period immediately preceding local election, it shallbe deemed automatically lifted upon the start of aforesaid period.

d. Preventive Suspension1. Who may impose:

a. By the President, if the respondent is anelective official of a province, a highly

urbanized or an independent componentcity;

b. By the governor, if the respondent is anelective local official of a component cityor municipality;

c. By the mayor, if the respondent is anelective official of the barangay.

2. When may be imposed: Preventive suspensionmay be imposed at any time:

a. After the issues are joined;b. When the evidence of guilt is strong; andc. Given the gravity of the offense, there is

great probability that the continuance in

office of the respondent could influencethe witnesses or pose a threat to thesafety and integrity of the records andother evidence.




●Provided that any single preventive suspensionshall not extend beyond 60 days, and in the eventseveral administrative cases are filed against therespondent, he cannot be suspended for more than90 days within a single year on the same ground or grounds existing and known at the time of the first

suspension.

Case:When the petitioner failed to file his answer despite

the many opportunities given to him, he was deemed to havewaived his right to answer and to present evidence. At thatpoint, the issues were deemed joined, and it was proper for the Executive Secretary to suspend him, inasmuch as theSecretary found that the evidence of guilt was strong and thatcontinuance in office could influence the witnesses and posea threat to the safety and integrity of the evidence against him(Joson vs. Torres, 290 SCRA 279).

The authority to preventively suspend is exercisedconcurrently by the Ombudsman, pursuant to R.A. 6770; thesame law authorizes a preventive suspension of six months(Hagad vs. Gozo-Dadole, G.R. no. 108072, Dec. 12, 1995).

e. Suspended elective official when deemed reinstatedUpon expiration of the preventive suspension, the

respondent shall be deemed reinstated in office withoutprejudice to the continuation of the proceedings against him,which shall be terminated within 120 days from the time hewas formally notified of the case against him.

●Any abuse of the exercise of the power of preventive suspension shall be penalized as abuse of authority.

f. Salary of respondent pending suspension (§64, R.A.7160)

The respondent official preventively suspended fromoffice shall receive no salary or compensation during suchsuspension; but, upon subsequent exoneration andreinstatement, he shall be paid full salary or compensationincluding such emoluments accruing during such suspension.

g. Rights of respondent (§65, R.A. 7160)The respondent shall be accorded full opportunity to

appear and defend himself in person or by counsel, toconfront and cross-examine the witnesses against him, and to

require the attendance of witnesses and the production of documentary evidence in his favor through compulsoryprocess of subpoena or subpoena duces tecum.

h. Form and notice of decision (§66a, R.A. 7160)The investigation of the case shall be terminated

within 90 days from the start thereof. Within 30 days after theend of the investigation, the Office of the President or thesanggunian concerned shall render a decision in writingstating clearly an distinctly the facts and the reasons for suchdecision. Copy of said decision shall immediately befurnished the respondent and all interested parties.

i. PenaltyThe penalty of suspension imposed upon the

respondent shall not exceed his unexpired term, or a periodof 6 months for every administrative offense, nor shall saidpenalty be a bar to the candidacy of the respondent as longas he meets the qualifications required for the office. But the

penalty of removal from office as a result of an administrativeinvestigation shall be a bar to the candidacy of therespondent for any elective position.

Case:The Supreme Court upheld the imposition of the

administrative penalty of suspension of not more than 6months for each offense, provided that the successive serviceof the sentence should not exceed the unexpired portion of the term of the petitioners. The suspension did not amount toremoval from office (Salalima vs. Guingona, 257 SCRA 55).

j. Administrative appeal- Decisions may, within 30days from receipt thereof, be appealed to:

i. The sangguniang panlalawigan, in the case of decisions of component cities’ sangguniang panlungsod andthe sangguiniang bayan;

ii. The Office of the President, in the case of decisions of the sangguniang panlalawigan and the

sangguniang panlungsod of highly urbanized cities andindependent component cities. Decisions of the Office of thePresident shall be final and executory.

Case: The Supreme Court ruled that certiorari will not lie

because there is still an adequate remedy available in theordinary course of law, i.e., appeal of the decision of theSangguniang Panlalawigan to the Office of the President (Malinao vs. Reyes, 255 SCRA 616).

k. Execution pending appeal An appeal shall not prevent a decision from being

executed; the respondent shall be considered as having beenplaced under preventive suspension during the pendency of the appeal. But in Berces vs. Executive Secretary, 241SCRA 539, the Supreme Court pointed out that

Administrative Order No. 18 authorizes the Office of thePresident to stay the execution of a decision pending appeal.

A.O. No. 18 was not repealed by the Local GovernmentCode.

l. Presidential power to grant executive clemencym. Effect of re-election

The re-election of a local official bars the continuationof the administrative case against him.

C. Appointive Local Officials1. Responsibil ity for human resources and

development- The local chief executive shall be responsiblefor human resources and development in his unit and shalltake all personnel actions in accordance with the Constitution,pertinent laws, including such policies, guidelines andstandards as the Civil Service Commission may establish;Provided that the local chief executive may employemergency or casual employees or laborers paid on a dailywage or piecework basis and hired through job orders for local projects authorized by the sanggunian concerned,without need of approval or attestation by the CSC as long asthe said employment shall not exceed 6 months.

Case: But the Provincial Governor is without authority to

designate the petitioner as Assistant Provincial Treasurer for Administration, because under §471 of the Local GovernmentCode, it is the Secretary of Finance who has the power to




appoint Assistant Provincial Treasurers from a list of recommendees of the Provincial Governor (Dimaandal vs.Commission on Audit, 291 SCRA 322).

2. Officials common to all Municipalities, Cities andProvinces (§469-490, R.A. 7160)

a. Secretary to the Sanggunianb. Treasurer c. Assessor d. Accountante. Budget Officer f. Planning and Development Coordinator g. Engineer h. Health Officer i. Civil Registrar

j. Administrator k. Legal Officer l. Agriculturistm. Social Welfare and Development Officer

n. Environment and Natural ResourcesOfficer

o. Architectp. Information Officer q. Cooperatives Officer r. Population Officer s. Veterinariant. General Services Officer

NOTE: ●In the barangay, the mandated appointive officials

are the Barangay Secretary and the Barangay Treasurer,although other officials of the barangay may be appointed bythe punong barangay.

3. Administrative disciplineInvestigation and adjudication of

administrative complaints against appointive local officialsand employees as well as their suspension and removal shallbe in accordance with the civil service law and rules and other pertinent laws.

a. Preventive suspension- The local chief executive may preventively suspend for aperiod not exceeding 60 days anysubordinate official or employee under his authority pending investigation if the

charge against such official or employeeinvolves dishonesty, oppression or gravemisconduct or neglect in the performanceof duty, or if there is reason to believethat the respondent is guilty of thecharges which would warrant his removalfrom the service.

b. Disciplinary Action- Except as otherwiseprovided by law, the local chief executivemay impose the penalty of removal fromservice, demotion in rank, suspension for not more than 1 year without pay, fine in

an amount not exceeding 6 months’salary or reprimand. If the penaltyimposed is suspension without pay for not more than 30 days, his decision shallbe final; if the penalty imposed is heavier,the decision shall be appealable to the

Civil Service Commission which shalldecide the appeal within 30 days fromreceipt thereof.

VII. LOCAL INITIATIVE AND REFERENDUM

A. Local Initiative1. Defined- It is the legal process

whereby the registered voters of alocal government unit may directlypropose, enact or amend anyordinance. It may be exercised byall registered voters of theprovinces, cities, municipalities andbarangays

2. Procedure:

a. Not less than 2,000 registered

voters in the region; 1,000registered voters in case of provinces and cities; 100 votersin case of municipalities, and50 in case of barangays, mayfile a petition with thesanggunian concernedproposing the adoption,enactment, repeal or amendment of an ordinance.

b. If no favorable action is takenby the sanggunian concernedwithin 30 days frompresentation, the proponents,through their duly authorizedand registered representatives,may invoke their power of initiative, giving notice thereof to the sanggunian concerned.

c. The proposition shall benumbered serially, starting fromRoman numeral I. Two or morepropositions may be submittedin an initiative. The Comelec or its designated representativeshall extend assistance in theformulation of the proposition.

d. Proponents shall have 90 days(in case of provinces andcities), 60 days (in case of municipalities) and 30 days (incase of barangays) from noticementioned in (b) to collect therequired number of signatures.

e. The petition shall be signedbefore the election registrar or his designated representatives,and in the presence of arepresentative of the proponentand a representative of the

sanggunian concerned in apublic place in the localgovernment unit.

f. Upon the lapse of the period,the Comelec shall certify as towhether or not the required




number of signatures has beenobtained. Failure to obtain therequired number of signaturesdefeats the proposition.

g. If the required number isobtained, the Comelec shall set

a date for the initiative duringwhich the proposition issubmitted to the registeredvoters in the local governmentunit for their approval within 60days (in case of provinces), 45days (in case of municipalities),and 30 days (in case of barangays) from the date of certification by the Comelec.The initiative shall be held onthe date set after which theresults thereof shall be certified

and proclaimed by theComelec.

h. If the proposition is approvedby a majority of the votes cast,it shall take effect 15 days after the certification by the Comelecas if affirmative action had beentaken thereon by thesanggunian and the local chief executive concerned.

3. Limitations:a. On local initiative:

i. The power of local initiative shallnot be exercised more than once ayear.ii. Initiative shall extend only tosubjects or matters which are withinthe legal powers of the sanggunianto enact.iii. If at any time before the initiativeis held, the sanggunian concernedadopts in toto the propositionpresented and the local chief executive approves the same, theinitiative shall be cancelled.However, those against such action

may, if they so desire, apply for initiative in the manner hereinprovided.

b. On the sanggunian: Any propositionor ordinance approved through aninitiative and referendum shall not berepealed, modified or amended bythe sanggunian within 6 months fromthe date of approval thereof, andmay be amended, modified or repealed within 3 years thereafter bya vote of ¾ of all its members. Incase of barangays, the period shall

be 18 months after the approvalthereof.

B. Local referendum:3. Defined- It is the legal process whereby

the registered voters of the local

government units may approve, amend or reject any ordinance enacted by thesanggunian.

4. The local referendum shall be held under the control and direction of the Comelecwithin 60 days (in case of provinces), 45

days (in case of municipalities) and 30days (in case of barangays). TheComelec shall certify and proclaim theresults of the said referendum.

C. Authority of Courts- Nothing in the foregoing shallpreclude the proper courts from declaring null andvoid any proposition approved pursuant hereto for violation of the Constitution or want of capacity of the sanggunian concerned to enact said measure.

VIII. LOCAL GOVERNMENT UNITS

A. The Barangay1. Chief Officials and Offices

a. There shall be in each barangay apunong baranagy, seven (7) sangguniangbarangay members, the sangguniangkabataan chairman, a barangay secretaryand a barangay treasurer. There shallalso be in every barangay a lupongtagapamayapa. The sangguniangbarangay may form community brigadesand create such other positions or officesas may be deemed necessary to carry outthe purposes of the barangaygovernment.

b. For purposes of the Revised Penal Code,the punong barangay, sangguniangbarangay members, and the members of the lupong tagapamayapa in eachbarangay shall be deemed as persons inauthority in their jurisdiction, while other barangay officials and members who maybe designated by law or ordinance andcharged with the maintenance of publicorder, protection and security of life andproperty, or the maintenance of adesirable and balanced environment, andany barangay member who comes to the

aid of persons in authority, shall bedeemed as agents of persons in authority.

c. §389 (b)5), R.A. 7160, provides that thepunong barangay shall, upon approval bya majority of all the members of theSangguniang Barangay, appoint or replace the barangay treasurer, thebarangay secretary, and other appointivelocal officials.

2. The Barangay AssemblyThere shall be a barangay assembly

composed of all persons who are actual residents

of the barangay for at least 6 months, 15 years of age or over, citizens of the Philippines, and dulyregistered in the list of barangay assemblymembers. It shall meet at least twice a year to hear and discuss the semestral report of thesangguniang barangay concerning its activities and




finances, as well as problems affecting thebarangay.

a. Powers of the Barangay Assembly: i. Initiate legislative processes byrecommending to the sangguniang

barangay the adoption of measures for thewelfare of the barangay and the city or municipality concerned;ii. Decide on the adoption of initiative as alegal process whereby the registeredvoters of the barangay may directlypropose, enact or amend any ordinance;andiii. Hear and pass upon the semestralreport of the sangguniang barangayconcerning its activities and finances.

3. Katarungang Pambarangay

a. Lupong TagapamayapaThere is hereby created in each barangay

a lupong tagapamayapa, composed of the punongbarangay as chairman and 10 to 20 members. TheLupon shall be constituted every 3 years.

b. Powers of the Lupon: i. Exercise administrative supervisionover the conciliation panels;ii. Meet regularly once a month to providea forum for exchange of ideas among itsmembers and the public of mattersrelevant to the amicable settlement of disputes, and to enable variousconciliation panel members to share withone another their observations andexperiences in effecting speedy resolutionof disputes; andiii. Exercise such other powers andperform such other duties and functions asmay be prescribed by law or ordinance.

c. Pangkat ng TagapagkasundoThere shall be constituted for each disputebrought before the lupon a conciliationpanel to be known as the pangkat ngtagapagkasundo, consisting of 3 memberswho shall be chosen by the parties to thedispute from the list of members of the

lupon. Should the parties fail to agree onthe pangkat membership, the same shallbe determined by lots drawn by the luponchairman.

d. Subject matter of amicable settlement:The Lupon of each barangay shall haveauthority to bring together the partiesactually residing in the same city or municipality for amicable settlement of alldisputes except;i. Where one party is the government or any subdivision or instrumentality thereof;ii. Where one party is a public officer or

employee, and the dispute relates to theperformance of his official functions;iii. Offenses punishable by imprisonmentexceeding one (1) year or a fine of P5,000.00.

iv. Offenses where there is no privateoffended party;v. Where the dispute involves realproperties located in different cities or municipalities unless the parties theretoagree to submit their differences to

amicable settlement by an appropriatelupon;vi. Disputes involving parties who actuallyreside in barangays of different cities or municipalities, except where suchbarangay units adjoin each other and theparties thereto agree to submit their differences to amicable settlement by anappropriate lupon;vii. Such other classes of disputes whichthe President may determine in theinterest of justice or upon therecommendation of the Secretary of

Justice.

4. Sangguniang Kabataan:a. Creation; composition: There shall be in

every barangay a sangguniang kabataan to becomposed of a chairman, seven members, asecretary and a treasurer. An official who, duringhis term of office, shall have passed the age of 21shall be allowed to serve the remaining portion of the term for which he was elected.

b. Katipunan ng Kabataan: Shall be compsed of all citizens of the Philippines actually residing in thebarangay for at least 6 months, who are 15 but notmore than 21 years of age, who are duly registeredin the list of the sangguniang kabataan or in theofficial list in the custody of the barangay secretary.It shall meet once every 3 months, or at the call of the sanggunian kabataan chairman, or upon writtenpetition of at least 1/20 of its members.

c. Pederasyon ng mga sangguniang kabataan:There shall be an organization of all the pederasyonng mga sangguniang kabataan:

i. In municipalities, the pambayangpederasyon;

ii. In cities, panlungsod na pederasyon;

iii. In provinces, panlalawigangpederasyon;

iv. In special metropolitan politicalsubdivisions, pangmetropolitang pederasyon;

v. On the national level, pambansangpederasyon.

B. The MunicipalityC. The CityD. The ProvinceE. Leagues of Local Government Units/Officials:

1. Liga ng mga Barangay- Organization of all barangaysfor the primary purpose of determining the representation of

the Liga in the sanggunians, and for ventilating, articulatingand crystallizing issues affecting barangay governmentadministration and securing, through proper and legal means,solutions thereto.

Case:




Where the Supreme Court held that Sec. 493, R.A.7160, which empowers the Liga to “create such other positions as may be deemed necessary”, is valid, and doesnot constitute an irregular delegation of power (Viola vs.

Alunan, G.R. No. 115844, August 15, 1997)

2. League of Municipalities- Organized for the primarypurpose of ventilating, articulating and crystallizing issuesaffecting municipal governments administration, and securing,through proper and legal means, solutions thereto.

Public Corporations Law 2 Memory Aid (2)

Documents

Transcript of Public Corporations Law 2 Memory Aid (2)