REVIEWER - LAWS ON LOCAL GOVERNMNENT

Room 136 – 6:00 PM to 8:00 PM

[email protected]
https://forms.gle/mvSwH3S1YHaq5doN7
I. INTRODUCTION
 LOCAL GOVERNMENT CODE OF THE PHILIPPINES (R.A. No. 7160)
PUBLIC CORPORATIONS
Definition:
- A corporation created by either a general or special law for administrating local
government or serving the public interest.
Vs. PRIVATE CORPORATIONS
 Corporations (SEC. 2 – 4, REVISED CORPORATION LAW)
- Legislation is prohibited from creating private corporations //1 under General
Corporation Law
PUBLIC PRIVATE
concerned with the
As to
administration of civil or local for the benefit of its private members
Purpose
governments
created by a general or special formed by the voluntary agreement of
As to
law; its members;
Creation
no will as a result of legislation under the recognition of the state

Vs. GOCCs
- GOCCs are created through an Original Charter2; the Government has direct or
indirect control or ownership over them
- Either organized as a stock (for profit) or a non-stock corporation (for non-profit).
o Under the jurisdiction of COA
- R.A. No. 10149 –law about GOCC governance
o Government owns 51% of the outstanding performance
- The Economic Viability Test is required in GOCCs.
REQUISITES OF GOCCs
a) established by an original charter or by a general corporation law
b) vested with either governmental or proprietary functions towards the public need
c) either directly owned by the government or indirectly by its instrumentalities or
where the Government owns a majority of the outstanding capital stock

1
// – exemption
2
created by a special law
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Classes of Public Corporations:

QUASI-PUBLIC CORPORATIONS
- Basically, a private corporation whose services are geared towards public
service. (i.e., water supply corporations & transportation companies)
o Can be given the Power of Eminent Domain

MUNICIPAL CORPORATIONS (LGUs)

Definition:
- A body politic for local government; it incorporates inhabitants to govern a
particular territory (barangays, towns, cities).
Elements:
- LEGAL CREATION/INCORPORATION
- CORPORATE NAME
- INHABITANTS
- TERRITORY
DELEGATION OF POWER TESTS:
1) Completeness Test;
2) Sufficient Standard Test
REQs. FOR CREATION, CONVERSION, DIVISION, MERGER OR DISSOLUTION
 SEC. 10, ART. 10, 1987 Constitution
o Adherence to the Local Government Code (R.A. No. 7160)
o Approved by plebiscite (voters, not population)
 SEC. 6 – 10, LGC
o Only Congress can create a Province, City, Town, or Municipality
o The Sangguniang Panlalawigan or Panlungsod can create Barangays
 SEC. 7, LGC
o Three Indicators of Viability:

POPULATION, LAND AREA,

INCOME, sufficient
determinate contiguous
Not less than 2,000 square
Province at least 250,000
P20,000,000 meters
Highly Urbanized Not less than
200,000
City P50,000,000
Component City
Municipalities 25,000
2,000 (Outside
Manila)
Barangay
4,000 (Metro
Manila)
- Not meeting the minimum requirements or irreversible reduction of it = abolition
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DETERMINING WHETHER A POLITICAL UNIT IS DIRECTLY AFFECTED BY THE

CREATION, MERGER, DIVISION, ABOLITION, OR SUBSTANTIAL ALTERATION OF
BOUNDARIES OF A POLITICAL UNIT
- Territorial
- Alteration
- Political Effects
- Economic Effects.

KEY CONCEPTS:
- Legislative Districts vs LGUs
o Legislative districts; popular unit
 Does not need a plebiscite for reapportionment since such is
different from the creation, division, merger, abolition, or alteration
of boundaries of an LGU
 Basis of an election of a particular member of the House of
Representatives
 Not a political subdivision; they do not carry out governmental and
proprietary powers as LGUs
 Representatives of legislative districts do not act as chief
executives of a particular unit.
 they do not act for or on behalf of the people comprising the
district
 they represent the district in the legislative body, nor oversee
the affairs of the legislative district

TERRITORIAL JURISDICTION (specified Metes and Bounds)

- Up to the extent only of its physical location or area as identified by its
boundaries
 Section 386 (b), LGC – new barangay
 Section 442 (b), LGC – newly-created municipality
INCOME (of LGUs)—forms part of its gross accretion of funds
 Internal Revenue Allotment
o Not a special fund
o Reoccurring
 Funds Generated from Local Taxes
o Not subject to execution
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II. DUAL PERSONALITY of LGUs

GOVERNMENTAL
- Acting as an agent of the State
o Administers the powers of the state and promotes public welfare
- No liability if officers do their functions in good faith or without malice
PROPRIETARY
- Acting as a business corporation
- Exercising for the special benefit and advantage of the community
- Liabilities arise when there is negligence or a breach of contracts entered into
(TORIO vs FONTANILLA Case)
SOURCES of POWER
1. The 1987 Constitution
2. The Local Government Code (R.A. No. 7160)
3. Other laws consistent with the Constitution and the LGC
CLASSIFICATION of POWERS
1. Expressed
- Found in provisions; i.e., the Constitution & the LGC
2. Implied
- Incident to the powers expressly granted
3. Inherent
- Indispensable, not convenient
4. Legislative
- Ordinance to make and execute laws
5. Intramural
- Exercised within the corporate limits of LGUs
6. Extramural
- Exercised without the said limits (i.e., water supply)
7. Public/Governmental
- As an agent of the State
8. Private/Corporate
- Acts similarly to a business corporation
9. Mandatory
- Required
10. Discretion
- Depends on judgment (or discretion)
Execution of Municipal Laws:
- As prescribed by law
- With discretion, if silent
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RULES to OWNERSHIP of PROPERTY

1. Property for Public Use
- Cannot be alienated or acquired by prescription
- Article 424, New Civil Code
- Outside the commerce of man
- Not Subject to levy or execution
2. Patrimonial Property
- May be alienated and acquired by prescription (Arts. 421 & 422, New Civil Code)
- LGUs may administer to them, like a private owner, as opposed to merely
regulating or supervising
- If a property is withdrawn from public use, it becomes patrimonial
- Property owned by the State in its private capacity
o Assumes the nature of private property
TYPES of LGUs
1. De Jure – those created or recognized by operation of law
2. Municipal Corporation by Prescription – based on a charter presumed to be
lost or destroyed
3. De Facto – organized by the people by incorporation into ordinary municipal
bodies
o Must have the following Essential Requirements:
 A valid law authorizing incorporation
 An attempt to organize it in good faith
 May be “colored” in compliance with the law
 The assumption of corporate powers
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III. DECENTRALIZATION
SOURCES
 Sec. 25, Art. II, 1987 Constitution
- Enjoyment of autonomy of LGUs.
 Secs. 2 & 3, Art. X, 1987 Constitution
- Local autonomy of territorial and political subdivisions
DISTRIBUTION OF POWER
1. VERTICAL – shared among different levels of the government: union, state and
local government
2. HORIZONTAL – power shared among the different organs of government
(legislative, executive, and judiciary)
Blending of Powers:
- Congress’ Enactment of Laws & Approval of the President
- Congress’ Proposal of Budget & Approval of the President
- The President enters into a treaty, and Congress ratifies it
- The appointment of members of the Supreme Court
 Parliamentary Government – support the legislature
RULE OF INTERPRETATION
 Sec. 5 (a), LGC – interpretation in favor of the LGU; in case of doubt, in favor of
the devolution of powers and the LGU
REQUISITES FOR THE PRES.’s IMPLEMENTATION OF ADJUSTING THE IRA
- Existence of an unmanaged sector
- Consultations from Congress and the chief executive of LGUs
- Corresponding recommendations of some secretaries of government agencies
RELEASE OF TAX TO LGUs
 Sec. 6, Art. X, 1987 Constitution –just share shall be automatically released to
LGUs
DECENTRALIZATION
Definition:
- The devolution of national administration to local governments; the national
government confers powers of authority to LGUs
LOCAL AUTONOMY
Decentralization of Administration Decentralization of Power
Delegation of administrative power Abdication of political power
Broadens the base power of the
Declares autonomy to local governments
government
Relieves the government of the burden of “Self-immolating”; free to shape its
managing local affairs to focus on destiny with minimum intervention but
national concerns becomes accountable to the people
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under it
Applies to the Phil. context
- No abdication of power Applies to. Phil context
- No mini-states/sovereigns within - From National Gov. to LGUs
the sovereign
I.e., CAR & ARMM
Powers: Sec. 20, Art. X, 1987
Constitution

(4) CATEGORIES OF DECENTRALIZATION

1. Administrative Decentralization / De-concentration
- Involves the transfer of functions or the delegation of authority and responsibility
from the national office to the regional and local offices
- I.e., National Gov., Department of Health, Department of Education; LGUs, Local
Health Boards, Local School Boards
2. Political Decentralization / Devolution
- Connotes the transfer of powers, responsibilities, and resources from the central
government to the LGUs for the performance of certain functions
- There is actual transfer of powers and responsibilities
- A more liberal form of decentralization; grants more autonomy to LGUs
3. Fiscal Decentralization
- Emanates from specific Constitutional mandates expressed in the Constitution
- LGU’s power to create its source of revenue in addition to National Taxes
4. Policy / Decision-making Decentralization
- One subnational level of government = exclusive authority to make decisions on
policy issues
- LGU’s authority to decide on at least one policy
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IV. POWERS OF THE PRESIDENT OVER LGUs

 Section 4, Article X, 1987 Constitution – the Supervisory Power of the
President over the LGUs
CONTROL vs SUPERVISION
Power of Control Power of Supervision
The superior officer merely oversees
things and ensures that the subordinate is
The power of a superior officer to alter or performing their duties;
modify, nullify or set aside subordinate The superior may take steps to make the
officers subordinate perform its duty if there is
failure or deviation in the performance of
duties
The alter-egos of the President fall under LGUs fall under the power of the
the latter’s control President

V. GENERAL WELFARE CLAUSE

- LGUs’ enactment of Ordinances geared towards the welfare of its constituents
 Sec. 16, LGC – the General Welfare Clause
- Police Power is inherent and practiced through the Gen. Welfare Clause
- From Legislature; may be exercised by LGUs by the enactment of Ordinances
by the Sangguinan
o Ordinances enacted as an agent of the State, thus not contradictory to it
 Not contravene the Constitution or laws
 Fair and not oppressive
 Impartial or non-discriminatory
 May regulate and not prohibit trade
 Consistent with Public Policy
 Reasonable
- G.R. what is delegated cannot be delegated //
o Police Power
o Basic Services & Facilities
o Power to Generate and Apply Resources
o Power of Eminent Domain
o Taxing Power
o Reclassification of Land
o Local Legislative Power
o Closure and Opening of Roads
o Corporate Powers
o Liability of LGUs
o Settlement of Boundary Disputes
o Succession of Local Officials
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o Discipline of Local Officials

o Authority Over Police Unit

(2) BRANCHES of the GENERAL WELFARE CLAUSE

- General Legislative Power
o LGU’s enactment of ordinances in its exercise of duties conferred upon it
- Police Power Proper
o LGU’s enactment of ordinances necessary and proper for the health and
safety, prosperity, morals, peace, good order, comfort, and convenience of
the municipality