GENERAL PRINCIPLES OF PUBLIC CORPORATION AND LOCAL

GOVERNMENT UNIT

I.

Corporation

A corporation is an artificial being created by operation of law having the

right of succession and the powers, attributes and properties expressly
authorized by law or incident of to its existence.
II.

Public Corporation

It is formed or organized for the government of a portion of the State either by

general or special act for purposes of administration of local government or
rendering service in the public interest.
A public is a corporation created by the State as the latters own agency or
instrumentality to help it in carrying out its governmental functions. (The
Philippine Society for the Prevention of Cruelty to Animals vs COA, G.R. No.
169752)
The criterion to determine whether a corporation is public is the relationship of
the corporation to the State, if createdby the State as its own agency to help the
State in carrying out itsgovernmental functions then it is public, otherwise, it is
private.
The mere fact however, that a corporation has been created by virtue of a
special law does not necessarily qualify it as a public corporation. (supra)
III.

Classes of Corporations

1. Quasi Corporations- private corporations created as agencies of State for

narrow and limited purposes without the powers and liabilities of selfgoverning corporations.
2. Municipal Corporations- body politic and corporate constituted by the
incorporation of inhabitants for purposes of local government. It is
established by law partly as an agency of the State to assist in the civil
government of the country, but chiefly to regulate and administer the local or
internal affairs of the city, town or district which is incorporated.
a. Elements of Municipal Corporation:
1. A legal creation or incorporation.
2. A corporate name by which the artificial personality or legal entity
is known and in which allcorporate acts are done.
3. Inhabitants constituting the population who are invested with the
political and corporate powerswhich are executed through duly
constituted officers and agents.
4. A place or territory within which the local civil government and
corporate functions are exercised.
b. Dual Nature of Municipal Corporations:
a. Governmental or Public- the municipal corporation acts as an agent
of the State for the government of the territory and the inhabitants
within the municipal limits.
b. Proprietary or Private- it acts in a similar category as a business
corporation performing functions not strictly governmental or

political, those exercised for the special benefit and advantage of

the community.
IV.

Local Autonomy
In constitutional sense, it means to polarize Local Government Units
from over dependence of central government. Local Government Units
(LGUs)have certain powers given by the Constitution which may not be
curtailed by the national government, but outside of these, local
governments may not pass ordinances contrary to statute.
Kinds of Autonomy:
1. Decentralization of Administration- central government delegates
administrative powers to political subdivisions in order to broaden
the base of government power and in the process make LGUs more
responsive and accountable and ensure their fullest development
as self-reliant communities and make them effective partners in the
pursuit of national development and social progress.
2. Decentralization of Power- involves abdication of political power in
favor of LGUs declared autonomous and amounts to selfimmolation, because the autonomous region becomes accountable
not to the central authorities but to its constituency.

V.

Devolution
Is an act by which the national government confers power and
authority upon various LGUs to perform specific functions and
responsibilities.(LCG, Sec. 17, Par. E)

VI.

Declaration of Policy
1. Territory and subdivisions of the State shall enjoy genuine and
meaningful autonomy to enable then to attain fullest development and
make them more effective partners in attaining national goals.
2. Ensure accountability of LGUs through institution of effective
mechanisms of recall, initiative and referendum.
3. Require all national agencies and offices to conduct periodic
consultations with appropriate LGUs, NGOs and Peoples Organizations
(POs) and other concerned sector of the community before any project
or program is implemented in their respective jurisdictions. (Sec 2,
LGC)

VII.

Interpretation of the Provision Local Government Code

Any doubt or question on a power of a local government shall be
resolved in favor of the devolution of powers and in favor of the lower
local government unit. Exceptions are tax measures enacted by local
government shall be considered strictly/against the local government
and liberally in favor of the taxpayer.

VIII.

Authority to Create Local Government

An LGU may be created, divided, merged, abolished, or its boundaries
substantially altered.
1. For province, city, municipality or any other political subdivisionsonly by Act of Congress
2. For barangays- ordinance passed by SangguniangPanlalawigan or
SangguniangPanglungsod concerned in the case of any barangay
within its territorial jurisdiction.

IX.

Creation and Conversion of Local Government Units

SECTION 7.Creation and Conversion. - As a general rule, the creation of a

local government unit or its conversion from one level to another level
shall be based on verifiable indicators ofviability and projected capacity to
provide services, to wit:
(a) Income - It must be sufficient, based on acceptable standards, to
provide for all essential government facilities and services and special
functions commensurate with the size of itspopulation, as expected of the
local government unit concerned;
(b) Population - It shall be determined as the total number of inhabitants
within the territorial jurisdiction of the local government unit concerned;
and
(c) Land Area - It must be contiguous, unless it comprises two or more
islands or is separated by a local government unit independent of the
others; properly identified by metes andbounds with technical
descriptions; and sufficient to provide for such basic services andfacilities
to meet the requirements of its populace. Compliance with the foregoing
indicatorsshall be attested to by the Department of Finance (DOF), the
National Statistics Office(NSO), and the Lands Management Bureau (LMB)
of the Department of Environment andNatural Resources (DENR).
X.

Essential Requisites for the Creation and Conversion of Municipal

Corporation
1. Law or ordinance.
2. Income sufficient to provide for all essential government facilities
and services commensurate with the size of its population.
3. Population or the total number of inhabitants within the territory.
4. Land Area or Territory that must be contiguous except for islands or
when divided or separated by an LGU independent of the others.
5. Attestation given by the Department of Finance for income, NSO for
population and LMB of DENR for land area
6. Plebiscite subject to the approval by the majority votes by unit or
units directly affected.

XI.

Conditions Precedent
for the Creation and Conversion
Municipal Corporation
1. Extent of the area proposed to be incorporated.
2. Nature of the territory.
3. Character of the land and the uses to which it may be devoted.
4. Number of inhabitants.
5. Destiny and location of the area to be incorporated.

XII.

Division and Merger of Local Government Units

of

The requirements for the division and merger of LGUs are the same as
those of their creation, provided that:
1. It shall not reduce the income, population or land area of LGUs
concerned to less than the minimum requirements prescribed;
2. The income classification of the original LGU shall not fall below its
current income classification prior to division;
3. A plebiscite be held in LGU affected;
4. The assets and liabilities of creation shall be equitably distributed
between the LGUs affected and new LGU. When a municipal district of
other territorial divisions is converted or fused into a municipality all

property rights vested in the original territorial organization shall

become vested in the government of the municipality. (LGC, Sec.8)
XIII.

Beginning of Corporate Existence

SECTION 14.Beginning of Corporate Existence. - When a new local
government unit is created, its corporate existence shall commence upon
the election and qualification of its chiefexecutive and a majority of the
members of its Sanggunian, unless some other time is fixedtherefor by
the law or ordinance creating it.

POWERS OF LOCAL GOVERNMENT UNITS

Sources of Power
1. Section 25, ArticleII and Section 5 to 7, Article 10 of the 1987 Constitution
2. Republic Act 7160 The Local Government Code
3. Charter
4. Doctrine of the Right to Self- Government
In the execution of powers, where the statute prescribes the manner of exercise,
the procedure must be followed. However, is the statute is silent, the local
government units have discretion to select reasonable means and methods of
exercise.
Governmental Powers
I. General Welfare (Section 16, R.A. 7160): Every local government unit
shall exercise the powers expressly granted, those necessarily implied therefrom, as
well as powers necessary, appropriate, or incidental for its efficient and effective
governance, and those which are essential to the promotion of the general welfare.
Within their respective territorial jurisdictions, local government units shall ensure
and support, among other things, the preservation and enrichment of culture,
promote health and safety, enhance the right of the people to a balanced ecology,
encourage and support the development of appropriate and self-reliant scientific
and technological capabilities, improve public morals, enhance economic prosperity
and social justice, promote full employment among its residents, maintain peace
and order, and preserve the comfort and convenience of their inhabitants.
a. As to nature, the police power of a municipal corporation extends to all
great public needs, and includes all legislation and functions of the
municipal government. The drift is towards social welfare legislation
geared towards state policies to provide adequate social services, the
promotion of general welfare and social justice. (Binayvs Domingo, G.R. #
92389 September 11, 199)
b. As to public use, the public in general should have equal or common rights
to use the land or facility involved on the same terms and that the number
of users is not the yarkstick in determining whether property is properly
reserved for public use or benefit. (Republic of the Philippines vs
Gonzales, G.R. # L-45338-39, July 31, 1991)
c. There are two branches of General Welfare Clause, the general legislative
power, which authorizes municipal councils to enact ordinances and make
regulations not repugnant to law and may be necessary to carry into
effect and discharge the powers and duties conferred upon it by law. The

police power, which authorizes the municipality to enact ordinances as

may be proper and necessary for the health and safety, prosperity,
morals, peace, good order, comfort and convenience of the municipality
and its inhabitants, and for the protection of their property. (Rural Bank of
Makati vs Municipality of Makati, G.R. # 150763 July 7, 2004)
d. The limitations on the exercise of power under the General Welfare
Clause:
i. It is exercisable only within territorial limits of the local
government unit, except for protection of water supply.
ii. Equal protection clause. The interest of the public in general,
as distinguished from those of a particular class, require the
exercise of the power.
iii. Due process clause. The means employed are reasonably
necessary for the accomplishment of the purpose and not
unduly oppressive on individuals.
iv. Must not be contrary to the Constitution and the laws.
Prohibited activities may not be legalized in the guise of
regulation; activities allowed by law cannot be prohibited,
only regulated.
In Magtajasvs Pryce Properties, G.R. # 111097, July 20, 1994, the
Supreme Court reiterated its ruling in Tatelvs Municipality of Virac,
Catanduanes 207 Scra 157,that to be valid,an ordinance to be valid (a)
must not contravene the Constitution and any Statute; (b) must not be
unfair or oppressive; (c) must not be partial or discriminatory; and (d)
must be general in application and consistent with public policy.
II. Eminent Domain (Section 19, R.A. 7160). A local government unit may,
through its chief executive and acting pursuant to an ordinance, exercise the
power of eminent domain for public use, or purpose, or welfare for the benefit of
the poor and the landless, upon payment of just compensation, pursuant to the
provisions of the constitution and pertinent laws: Provided, however, that the
power of eminent domain may not be exercised unless a valid and definite offer
has been previously made to the owner and such offer was not accepted:
Provided, further, that the local government unit may immediately take
possession of the property upon the filing of the expropriation proceedings and
upon making a deposit with the proper court of at least 15% of the fair market
value of the property based on the current tax declaration of the property to be
expropriated: Provided, finally, that the amount to be paid for the expropriated
property shall be determined by the proper court, based on the fair market value
at the time of the taking of the property.
It is the right or power of the sovereign state to appropriate private property
within the territorial sovereignty for public purpose.
a. As to its nature, the exercise of eminent domain is necessarily in
derogation of private rights, hence the authority to exercise such
must be strictly construed. (Heirs of Suguitanvs City of Mandaluyon,
G.R. No. 135087, March 14, 2000)
b. Requisites for valid expropriation (Section 19, Local Government
Code):
i.
Ordinance enacted by the local legislative council authorizing
the local Chief Executive to exercise eminent domain.
ii.
For purpose of public use, public purpose, or welfare for the
benefit of the poor and landless
iii.
Payment of just compensation based on the fair market value
of the property at the time of taking

iv.

Valid and definite offer was previously made to the owner of

the property, but the offer was not accepted.

According to the case of National Power Corporation vsLleto, G.R. No. 171558
July 11,2012, the determination of just compensation in eminent domain
cases is a judicial function.
Under the Urban Development and Housing Act (Socialized Housing R.S.
7279), expropriation by an LGU for purposes of socialized housing projects shall
occur only as a last resort. It must be shown by the LGU that other methods of
acquisition have been exhausted: mortgage, land swapping, land consolidation,
donation, joint venture agreements, and negotiated purchase.
If all the other methods have been exhausted and expropriation to continue,
the Local Government Unit shall prioritize expropriation of property of:
a. Government Lands
b. Alienable public Lands
c. Abandoned lands
d. Areas for priority development
e. Unacquired BLISS sites
f. Private lands
Furthermore, small property landowners are similarly exempt from
expropriation for purposes of socialized housing, provided:
1. Those owners of real property which consist of residential lands within an
area of not more than 300sq meters in highly urbanized cities, and 800 in
other urban cities;
2. They do not own real property other than the same.

III. Power to Generate and Apply Resources (Section 18, of R.A.

7160).Local government units shall have the power and authority to establish an
organization that shall be responsible for the efficient and effective implementation
of their development plans, program objectives and priorities; to create their own
sources of revenue and to levy taxes, fees and charges which shall accrue
exclusively to their use and disposition and which shall be retained by them; to have
a just share in the national taxes which shall be automatically and directly released
to them without need of any further action; to have an equitable share in the
proceeds from the utilization and development of the national wealth and resources
within their lease, encumber, alienate or otherwise dispose of real or personal
property held by them in their proprietary capacity and to apply their resources and
assets for productive, developmental or welfare purpose, in the exercise or
furtherance of their governmental or proprietary powers and functions and thereby
ensure their development into self-reliant communities and active participants in
the attainment of national goals.
This provision restates and implements Sections 5,6 and 7, of Article X of the
1987 Constitution.
The Fundamental Principles on Taxation by a Local Government Unit
(Section 130, Local Government Code)
1. Taxation shall be uniform
2. Taxes, fees, and charges shall be equitable and based as far as practicable
on the taxpayers ability to pay;
3. Levied and collected only for a public purpose;
4. Shall not be unjust, excessive, oppressive, or confiscatory;
5. The collection of taxes, fees and charges shall in no case be left to any
private person;

6. The revenue shall insure solely to the LGU, unless otherwise specified;
7. Each LGU shall, as far as practicable, evolve a progressive system of
taxation
8. Shall not be contrary to law, public policy, national economic policy, or in
restraint of trade.
Sources of Local Government Unit Funds
1. Own sources of revenue
2. Taxes, fees and charges which accrue exclusively for their use and
disposition
3. Just share in national taxes which shall be automatically and directly
released to themselves
4. Equitable share in the proceeds from utilization and development of
national wealth and resources within their territorial jurisdiction.
Common Limitations on Taxing Power (Section 133, Local
Government Code)
Unless otherwise provided herein, the exercise of the taxing powers of
provinces, cities, municipalities, and barangays shall not extend to the levy of
the following:
(a) Income tax, except when levied on banks and other financial institutions;
(b) Documentary stamp tax;
(c) Taxes on estates, inheritance, gifts, legacies and other acquisitions mortis
causa, except as otherwise provided herein;
(d) Customs duties, registration fees of vessel and wharfage on wharves,
tonnage dues, and all other kinds of customs fees, charges and dues except
wharfage on wharves constructed and maintained by the local government
unit concerned;
(e) Taxes, fees and charges and other impositions upon goods carried into or
out of, or passing through, the territorial jurisdictions of local government
units in the guise of charges for wharfage, tolls for bridges or otherwise, or
other taxes, fees or charges in any form whatsoever upon such goods or
merchandise; (f) Taxes, fees or charges on agricultural and aquatic products
when sold by marginal farmers or fishermen; (g) Taxes on business
enterprises certified to by the Board of Investments as pioneer or non-pioneer
for a period of six (6) and four (4) years, respectively from the date of
registration;
(h) Excise taxes on articles enumerated under the National Internal Revenue
Code, as amended, and taxes, fees or charges on petroleum products;
(i) Percentage or value-added tax (VAT) on sales, barters or exchanges or
similar transactions on goods or services except as otherwise provided
herein; (j) Taxes on the gross receipts of transportation contractors and
persons engaged in the transportation of passengers or freight by hire and
common carriers by air, land or water, except as provided in this Code;
(k) Taxes on premiums paid by way of reinsurance or retrocession;
(l) Taxes, fees or charges for the registration of motor vehicles and for the
issuance of all kinds of licenses or permits for the driving thereof, except
tricycles;
(m) Taxes, fees, or other charges on Philippine products actually exported,
except as otherwise provided herein; (n) Taxes, fees, or charges, on
Countryside and Barangay Business Enterprises and cooperatives duly
registered under R.A. No. 6810 and Republic Act Numbered Sixty-nine
hundred thirty-eight (R.A. No. 6938) otherwise known as the "Cooperatives
Code of the Philippines" respectively; and
(o) Taxes, fees or charges of any kind on the National Government , its
agencies and instrumentalities, and local government units.

Section 133 of the Local Government Code provides a limitation on the power
of a Local Government Unit to levy taxes, fees, or charges on the national
government, its agencies and instrumentalities, unless otherwise provided.
Section 234 on the other hand, grants Local Government Units the power to
impose real property tax on properties of the Republic of the Philippines and
its political subdivisions when its beneficial use is granted to a taxable
person.
Fundamental Principles on the Financial Affairs of a Local
Government Unit
(a) No money shall be paid out of the local treasury except in pursuance of an
appropriations ordinance or law;
(b) Local government funds and monies shall be spent solely for public
purposes;
(c) Local revenue is generated only from sources expressly authorized by law
or ordinance, and collection thereof shall at all times be acknowledged
properly;
(d) All monies officially received by a local government officer in any capacity
or on any occasion shall be accounted for as local funds, unless otherwise
provided by law;
(e) Trust funds in the local treasury shall not be paid out except in fulfillment
of the purpose for which the trust was created or the funds received;
(f) Every officer of the local government unit whose duties permit or require
the possession or custody of local funds shall be properly bonded, and such
officer shall be accountable and responsible for said funds and for the
safekeeping thereof in conformity with the provisions of law;
(g) Local governments shall formulate sound financial plans, and the local
budgets shall be based on functions, activities, and projects, in terms of
expected results; pment plans, goals, and strategies in order to optimize the
utilization of resources and to avoid duplication in the use of fiscal and
physical resources;
(i) Local budgets shall operationalize approved local development plans;
(j) 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;
(k) National planning shall be based on local planning to ensure that the
needs and aspirations of the people as articulated by the local government
units in their respective local development plans are considered in the
formulation of budgets of national line agencies or offices;
(l) Fiscal responsibility shall be shared by all those exercising authority over
the financial affairs, transactions, and operations of the local government
units; and
(m) The local government unit shall endeavor to have a balanced budget in
each fiscal year of operation.
In the case of BascovsPagcor, 197 scra 52, Congress has the power of control
over local governments. If Congress can grant a municipal corporation the power
to tax certain maatters, it can also provide for exemptions or even take back the
power, xxx The power of local governments to impose taxes and fees is always
subject to limitations which Congress may provide by law xxx Local governments
have no power to tax instrumentalities of the National Government; PAGCOR
being an instrumentality of the National Government is therefore exempt from
local taxes.

IV. Basic Services and Facilities (Section 17, R.A.7160). Local Government
units shall endeavor to be self-reliant and shall continue exercising the powerrs and
discharging the duties and functions currently vested upon them. They shall also
discharge the functions and responsibilities of national agencies and offices
devolved to them pursuant to this code.
The public works and infrastructure projects and other facilities, programs and
services funded by the national government under the General Appropriations Act
and other laws, are not covered under this section, except where the local
government unit is duly designated as the implementing agency for such projects,
facilities, programs and services.
V. Closure and Opening of Roads
(Section 21, R.A. 7160). A local
Government unit may, pursuant to an ordinace, permanently or temporarily close or
open any local road, alley, park, or square falling within its jurisdiction: Provided,
however, That in case of permanent closure, such ordinance must be approved by
at least two-thirds (2/3) of all the members of the sanggunian, and when necessary,
an adequate substitute for the public facility that is subject to closure is provided.
The requisites for temporary closure:
1. Via ordinance
2. May be done due to:
a. Actual Emergency
b. Fiesta celebrations
c. Public rallies
d. Agricultural or industrial fairs
e. Undertaking of public works and highways, telecommunications, and
waterworks projects
3. Duration of closure must be specifically stated in the order of closure
4. If for thepurpose of athlectic, cultural, or civil activites; these must be
officially sponsored, recognized, or approved by the local government.
The requisites for permanent closure:
1. Via Ordinance approved by at least two-thirds (2/3) of all members of the
Sanggunian
2. Such ordinance must have provisions for the maintenance of public safety
therein
3. Such property withdrawn may be used or conveyed for any purpose for which
other real property belonging to the local government may be lawfully used
or conveyed
4. When necessary, an adequate substitute for the public facility that is subject
to closure should be provided
5. If a freedom park is permanently closed, there must be a provision for its
transfer or relocation to a new site.
For closure by Cities, Municipalities and Barangays
1. Via ordinance
2. May temporarily close and regulate the use of any local street, road, or any
other public place
3. For shopping malls, Sunday flea, or night markets, or shopping areas for the
sale of goods, merchandise, foodstuffs and commodities.

LOCAL LEGISLATIVE POWER

PRODUCTS OF LEGISLATIVE ACTION:

1.
2.

ORDINACE- prescribes a permanent rule of conduct.

RESOLUTION- prescribes a temporary character, or express sentiment.

GENERAL REQUIREMENT:
Exercised by (Sec. 48)
1. sangguniangpanlalawigan for the province
2. sangguniangpanlungsod for the city
3. sangguniangbayan for the municipality
4. sangguniang barangay for the barangay
CONSTITUTIONAL REQUIREMMENT:
1)
2)
3)
4)
5)
6)

it
it
it
it
it
it

must
must
must
must
must
must

not contravene the Constitution or any statute;

not be unfair or oppressive;
not be partial or discriminatory;
not prohibit but nay regulate trade;
be general and consistent with public policy
not be unreasonable

Magtajasvs Pryce Properties, Inc. [234 SCRA 255]

(Municipal Corporation Tests of a Valid Ordinance)
Facts: The Philippine Amusement and Gaming Corporation (PAGCOR) is a
corporation created directly by P.D. 1869 to help centralize and regulate all games
of chance, including casinos on land and sea within the territorial jurisdiction of the
Philippines. In Basco v. Philippine Amusements and Gaming Corporation, this Court
sustained the constitutionality of the decree and even cited the benefits of the
entity to the national economy as the third highest revenue-earner in the
government.
PAGCOR decided to expand its operations to Cagayan de Oro City by leasing a
portion of a building belonging to Pryce Properties Corporation Inc. for its casino.
On December 7, 1992, SangguniangPanlungsod of CDO enacted ordinance 3353,
prohibiting the issuance of business permit and cancelling existing business permit
to any establishment for the using and allowing to be used its premises or portion
thereof for the operation of a casino.
On January 4, 1993, it enacted Ordinance 3375-93, prohibiting the operation of
casino and providing penalty for violation therefore.
Pryce assailed the ordinances before the CA, where it was joined by PAGCOR as
intervenor.
The Court found the ordinances invalid and issued the writ prayed for to prohibit
their enforcement. CDO City and its mayor filed a petition for review under Rules of
Court with the Supreme Court.
Issue: WON the SangguniangPanlungsod can prohibit the establishment of casino
operated by PAGCOR through an ordinance or resolution.
Held: No. Gambling is not illegal per se. While it is generally considered inimical to
the interests of the people, there is nothing in the Constitution categorically
proscribing or penalizing gambling or, for that matter, even mentioning it at all. In
the exercise of its own discretion, the Congress may prohibit gambling altogether or
allow it without limitation or it may prohibit some forms of gambling and allow
others for whatever reasons it may consider sufficient.
Under Sec. 458 of the Local Government Code, local government units are
authorized to prevent or suppress, among others, gambling and other prohibited
games of chance.
Ordinances should not contravene a statue as municipal governments are only
agents of the national government. Local councils exercise only delegated powers
conferred on them by Congress as the national lawmaking body. The delegate
cannot be superior to the principal or exercise powers higher than those of the
latter.

The tests of a valid ordinance are well established. A long line of decisions has held
that to be valid, an ordinance must conform to the following substantive
requirements:
1) It must not contravene the constitution or any statute.
2) It must not be unfair or oppressive.
3) It must not be partial or discriminatory.
4) It must not prohibit but may regulate trade.
5) It must be general and consistent with public policy.
6) It must not be unreasonable.
Presided by(sec. 49):
1.Vice-governor or vice-mayor or punong barangay hewill vote only in case of a
tie (because he is not a member of the Sanggunian Perez v. De la Cruz [1969])
2. Inability of the above: members present and constituting a quorum shall elect
from among themselves a temporary presiding officer
What is the effect of the enforcement of a disapproved ordinance or
resolution?
A: It shall be sufficient ground for the suspension or dismissal of the official or
employee (Sec. 58, R.A. 7160)
When is the effectivity of ordinances or resolutions?
A: GR: Within 10 days from the date a copy is posted in a bulletin board and in at
least 2 conspicuous spaces. (Sec. 59(a) R.A. 7160)
XPN: Unless otherwise stated in the ordinance or resolution. (Sec. 59(a) R.A. 7160)
What ordinances require publication for its effectivity
A:
1.
Ordinances that carry with them penal sanctions. (Sec. 59(c) R.A. 7160)
2.
Ordinances and resolutions passed by highly urbanized and independent
component cities. (Sec. 59(d) R.A. 7160)
What are the instances of approval of ordinances?
1. If the chief executive approves the same, affixing his signature on each and every
page thereof
2. If the local chief executive vetoes the same, and the veto is overridden by 2/3
vote of all members of the sanggunian.
Note: Local Chief Executive may veto the ordinance only once on the ground that
the ordinance is ultra viresand prejudicial to public welfare. The veto must be
communicated to the sanggunian within
a. 15 days = province
b. 10 days = city or municipality
Note: Local Chief Executive may veto the ordinance only once on the ground that
the ordinance is ultra viresand prejudicial to public welfare. The veto must be
communicated to the sanggunian within
a. 15 days = province
b. 10 days = city or municipality
Ordinances enacted by the sangguniang barangay shall, upon approval by the
majority of all its members, be signed by the punong barangay. (Sec. 54, LGC)
REVIEW OF ORDINANCES/RESOLUTIONS
Component
City
or Barangay Ordinances

Reviewed by
Furnish
ordinance
within

copies
of
or resolution

Period to examine/review
documents

Ground
to
invalidate
ordinance or resolution

Municipality
Ordinances
and Resolutions
SangguniangPanlalawigan SangguniangPanlungsod
or Sangguniang Bayan
3 days after approval of 10 days after enactment
ordinance or resolution of ALL ordinances
approving
the
local
devopment plans and
public
investment
programs formulated by
the local development
councils
30 days after receipt of 30 days after receipt of
copies, after which the copies, after which the
ordinance or resolution is ordinance is presumed
presumed valid if no valid if no action is taken
action is taken
within the 30 days, it may
also be transmitted to the
provincial
attorney
or
prosecutor
for
examination; said atty. or
prosecutor shall give his
written recommendations
within 10 days from
receipt of document
ordinance or resolution is ordinance is inconsistent
beyond
the
power with law and city or
conferred
upon
the municipal ordinances
Sanggunian concerned
in
such
case,
the
sangguniang
barangay
may adjust, amend or
modify
the
ordinance
within 30 days from
receipt
from
the
sangguniangpanlungsod
or sangguniangbayan

Judicial Intervention
RULES OF COURT, Rule 63
Section 4. Local Government Ordinances. In any action involving the validity of a
local government ordinance, the corresponding prosecutor or attorney of the local
government unit involved shall be similarly notified and entitled to be heard. If such
ordinance is alleged to be unconstitutional, the Solicitor General shall also be
notified and entitled to be heard.
Perez v. De la Cruz, 27 SCRA 587 (1969)
The vice-mayor, as presiding officer of the sanggunian, may not vote to
create a tie, and then vote again to break the deadlock. This is because the
presiding officer is not a member of the sanggunian. Thus, he can only vote in case
of a tie. However, a member of the sanggunian acting as chairman may vote as a
member and as chairman, to break the tie.
Homeowners Association of the Phil., Inc. v. Municipal Board of City of Manila, 24
SCRA 856 (1968)
The failure of the Solicitor General to appear in the lower court to defend the
constitutionality of an ordinance is not fatal to the case. The determination of the
question of WON the Sol-Gen should be required to appear in any action involving

the validity of any treaty, law, executive order, rule or regulation is a matter left to
the discretion of the Court pursuant to the Rules of Court. Inasmuch as the said
requirement is not mandatory, but discretionary, non-compliance therewith affected
neither the jurisdiction of the trial court nor the validity of the proceedings therein.
Ortega vs. QC Government, GR 161400, September 2, 2005
Consti provides that SC may Review, revise, reverse, modify, or affirm on
appeal or certiorari, as the law or the Rules of Court may provide, final judgments
and orders of lower courts cases where the validity of an ordinance is questioned.
There must be a decision by an inferior court before the SC can assume jurisdiction.
Also, SC cannot have original jurisdiction over actions for declaratory relief. No
factual issues should be discussed by the Supreme Court
What is the quorum in the sanggunian?
A: A majority of all the members of the sanggunian who have been elected and
qualified. (Sec. 53(a) R.A. 7160)
SESSION:
1.
Regular sessions: fixed by resolution on 1st day of the session immediately
following the election of its members
2.
Minimum numbers of regular sessions: once a week (panlalawigan,
panlungsod, bayan) and twice a month for the sangguniang barangay
3.
Special session: may be called by the local chief executive or by a majority of
the members of the sanggunian
cause: when public interest demands
Written notice: served personally at the member's usual place of residence at
least 24 hours before the session
Unless otherwise concurred in by 2/3 vote of the sanggunian members present,
there being a quorum, no other matters may be considered except those stated in
the notice
o Open to the public
UNLESS a closed-door session is ordered by an affirmative vote of a majority of
the members present (there being a quorum)
in the public interest or for reasons of security, decency, or morality.
o No 2 sessions may be held in a single day
INITIATIVE AND REFERENDUM
INITIATIVE
The legal process whereby the registered voters of a LGU may directly propose,
enact or amend any ordinance. (Sec. 120 R.A. 7160)

REFERENDUM
The legal process whereby the registered voters of the LGU may approve, amend or
reject any ordinance enacted by the sanggunian. (Sec. 126 R.A. 7160)
Who may exercise all registered voters of the provinces, cities, municipalities
and barangays
Requirements

a.
referendum or initiative affecting a resolution or ordinance passed by the
legislative assembly of a province or city: petition must be signed by at least 10% of
the registered voters in the province or city, of which every legislative district must
be represented by at least 3% of the registered voters therein; Provided, however,
That if the province or city is composed only of 1 legislative district, then at least
each municipality in a province or each barangay in a city should be represented by
at least 3% of the registered voters therein.
b.
referendum or initiative on an ordinance passed in a municipality: petition
must be signed by at least 10% of the registered voters in the municipality, of which
every barangay is represented by at least 3% of the registered voters therein
c.
referendum or initiative on a barangay resolution or ordinance: must be
signed by at least 10% of the registered voters in said barangay
Procedure in Local Initiative
a.
not less than 1,000 registered in case of provinces and cities, 100 in case of
municipalities, and 50 in case of barangays, may file a petition with the local
legislative body, respectively, proposing the adoption, enactment, repeal, or
amendment, of any law, ordinance or resolution
b.
if no favorable action thereon is made by local legislative body within 30 days
from its presentation, the proponents through their duly authorized and registered
representative may invoke their power of initiative, giving notice thereof to the local
legislative body concerned
c.
2 or more propositions may be submitted in an initiative
d.
proponents shall have 90 days in case of provinces and cities, 60 days in case
of municipalities, and 30 days in case of barangays, from notice mentioned in
subsection (b) hereof to collect the required number of signatures
e.
the petition shall be signed before the Election Registrar, or his designated
representative, in the presence of a representative of the proponent, and a
representative of the regional assemblies and local legislative bodies concerned in a
public place in the LGU
f.
if the required number of the signatures is obtained, the COMELEC shall then
set a date for the initiative for approval of the proposition within 60 days from the
date of certification by the COMELEC in case of provinces and cities, 45 days in case
of municipalities, and 30 days in case of barangays
Effectivity of Local Propositions If the proposition is approved by a majority of
the votes cast, it shall take effect 15 days after certification by the COMELEC
Limitations on Local Initiatives
a.
the power of local initiative shall not be exercised more than once a year
b.
initiative shall extend only to subjects or matters which are within the legal
powers of the local legislative bodies to enact
c.
if at any time before the initiative is held, the local legislative body shall adopt
in toto the proposition presented, the initiative shall be cancelled. However, those
against such action may, if they so desire, apply for initiative in the manner herein
provided
Limitations Upon Local Legislative Bodies Any proposition or ordinance or
resolution approved through the system of initiative and referendum as herein
provided shall not be repealed, modified or amended, by the local legislative body
concerned within 6 months from the date therefrom, and may be amended,
modified or repealed by the local legislative body within 3 years thereafter by a vote
of 3/4 of all its members: Provided, however, that in case of barangays, the period
shall be 18 months after the approval thereof
Local Referendum Any local legislative body may submit to the registered
voters of autonomous region, provinces, cities, municipalities and barangays for the
approval or rejection, any ordinance or resolution duly enacted or approved

 Courts are not precluded from declaring null and void any proposition approved
for violation of the Constitution or want of capacity of the local legislative body to
enact the said measure.

Garcia v. COMELEC, 237 SCRA 279 (1994)

A resolution is a proper subject of an initiative. This is based on Sec. 32, Art.
VI of the Constitution, which directs Congress to provide a system of initiative and
referendum where the people can directly propose and enact laws or approve or
reject any act or law passed by Congress or local legislative body. An act includes a
resolution.
The LGC did not limit the coverage of local initiatives to ordinances alone.
Sec. 120 merely defines the concept of legal initiative but does not deal with the
subjects that can be taken up in a local initiative. The correct provision would be
Sec. 124 which does not limit the application of the initiatives to ordinances, but to
all subjects or matters which are within the legal powers of the sanggunian to enact.
SBMA v. COMELEC, 262 SCRA 492 (1996)
There is a difference between initiative and referendum. Initiative is the
power of the people to propose bills and laws, and to enact or reject them at the
polls independent of the legislative assembly. Referendum is the right reserved to
the people to adopt or reject any act or measure which has been passed by a
legislative body and which in most cases would without action on the part of
electors become law. These law-making powers belong to the people and the
COMELEC only exercises administration and supervision of the process. Hence,
COMELEC cannot control or change the substance or the content of the legislation.
CORPORATE POWERS
What are the corporate powers of an LGU?
1.To have continuous succession in its corporate name ;
2. To sue and be sued ;
Note: Only the Provincial Fiscal or the Municipal Attorney can represent a
province or municipality in lawsuits. This is mandatory. Hence, a private attorney
cannot represent a province or municipality.
3. To have and use a corporate seal;
Note: Any new corporate seals or changes on such shall be registered with
DILG.
4. To acquire and convey real or personal property;
5. To enter into contracts; and
6. To exercise such other powers as granted to corporations (Sec. 21, R.A. 7160)
Requisites of valid municipal contracts:
1. LGU has express, implied or inherent power to enter into a particular contract;
2. Entered into by proper department, board, committee, or agent;
3. must comply with substantive requirements;
4. must comply with formal requirements;
5. in case entered into by local chief executive on behalf of LGU, prior authorization
by Sanggunian concerned is needed
Difference Between the Political Nature and Corporate Nature of LGUs
Corporate/Municipal
Political/Governmental

Political
subdivision
of
national
government
Administering the powers of state and
promoting public welfare
Includes the legislative, judicial, public
and political
LGU cannot be held liable
Except:
if statute provides otherwise
Art. 2189, CC

Corporate
entity
representing
inhabitants of its territory
Exercised for special benefit and
advantage of the community
Includes those which are ministerial,
private and corporate
Can be held liable ex contractu or ex
delicto

What are ultra vires contracts?

A: These are contracts entered into without the first and third requisites. Such are
null and void and cannot be ratified or validated.

NAWASA v. Dator, 21 SCRA 355 (1967)

The authority of a municipality to fix and collect rents for water supplied by
its waterworks system is expressly granted by law. However, even without these
provisions, the authority of the municipality to fix and collect fees from its
waterworks would be justified from its inherent power to administer what it owns
privately. The municipality enjoys the attributes of ownership under the Civil Code,
i.e. the right to use or enjoy the property. NAWASA may regulate and supervise the
water plants owned and operated by cities and municipalities, the ownership
thereof is vested in the municipality and I the operation thereof, the municipality
acts in its proprietary capacity. If a governmental entity, like NAWASA, were allowed
to collect the fees that the consuming public pay for the water supplied to them by
the municipality, the latter, as owner, would be deprived of the full enjoyment of its
property.

Province of Zamboanga v. City of Zamboanga, 22 SCRA 133 (1968)

If the property is owned by the municipality in its public and governmental
capacity, the property is public and Congress has absolute control over it; if the
property is owned in its private or proprietary capacity, then it is patrimonial and
Congress has no absolute control, in which case, the municipality cannot be
deprived of it without due process and payment of just compensation.

Rabuco v. Villegas, 55 SCRA 656 (1974)

Petitioners assail the authority of the Manila Mayor to demolish their houses
or eject them as tenants of a parcel of land in Malatek, citing RA 3120 as authority.
The lots in question are manifestly owned by the city in its public and governmental
capacity and are therefore public property over which Congress has absolute control
as distinguished from patrimonial property owned by it in its private or proprietary
capacity of which it could not be deprived without due process and without just
compensation. It was not an exercise of the power of eminent domain without just
compensation but simply as a manifestation of its right and power to deal with state
property.

Municipal Board of Cebu City v. CTA, 12 SCRA 645 (1964)

The city constitutes a political body corporate created by a special charter

endowed with the power which pertains to a municipal corporation. As such it is
authorized to levy real estate taxes for its support. Moreover, the city can validly
appeal the decision of the Board of Assessment of Appeals exempting lots from real
property tax, as no entity is more adversely affected by such decision.

MUNICIPAL LIABILITY
RULE: Local government units (LGUs) and their officials are not exempt from
liability for death or injury to persons or damage to property (Sec. 24, R.A. 7160)
1. Specific provisions of law making LGUs liable:
a. Art. 2189, NCC: Provinces, cities and municipalities shall be liable for
damages for the death of, or injuries suffered by, any person by reason of
the defective condition of roads, streets, bridges, public buildings, and
other public works under their control or supervision.
The City of Manila was held liable for damages when a person fell into an
open manhole in the streets of the city. (City of Manila vs. Teotico, 22 SCRA
267)

Despite a management and operating contract with Asiatic Integrated

Corporation over the Sta. Ana Public Market, the City of Manila is solidarily
liable for injuries sustained by an individual who stepped on a rusted nail
while the market was flooded. (Jimenez vs. City of Manila, 150 SCRA 510)

Liability of the City for injuries due to defective roads attaches even if the
road does not belong to the LGU, as long as the City exercises control or
supervision over said road. (Guilatco vs. City of Dagupan, 171 SCRA 382)

b. Art. 2180 (6th par.), NCC: The State is responsible in like manner when
it acts through a special agent; but not when the damage has been
caused by the official to whom the task done properly pertains, in which
case what is provided in Article 2176 shall be applicable.
Merritt vs. Government of the Philippine Islands, 34 Phil 311
FACTS: E. Merritt was a constructor who was excellent at his work. One day, while
he was riding his motorcycle along Calle Padre Faura, he was bumped by a
government ambulance. The driver of the ambulance was proven to have been
negligent. Because of the incident, Merritt was hospitalized and he was severely
injured beyond rehabilitation so much so that he could never perform his job the
way he used to and that he cannot even earn at least half of what he used to earn.
In order for Merritt to recover damages, he sought to sue the government
which later authorized Merritt to sue the government by virtue of Act 2457 enacted
by the legislature (An Act authorizing E. Merritt to bring suit against the Government
of the Philippine Islands and authorizing the Attorney-General of said Islands to
appear in said suit). The lower court then determined the amount of damages and
ordered the government to pay the same.

ISSUE: Whether or not the government is liable for the negligent act of the driver of
the ambulance.
HELD: No. By consenting to be sued a state simply waives its immunity from suit. It
does not thereby concede its liability to plaintiff, or create any cause of action in his
favor, or extend its liability to any cause not previously recognized. It merely gives a
remedy to enforce a preexisting liability and submits itself to the jurisdiction of the
court, subject to its right to interpose any lawful defense. It follows therefrom that
the state, by virtue of such provisions of law, is not responsible for the damages
suffered by private individuals in consequence of acts performed by its employees
in the discharge of the functions pertaining to their office, because neither fault nor
even negligence can be presumed on the part of the state in the organization of
branches of public service and in the appointment of its agents. The State can only
be liable if it acts through a special agent (and a special agent, in the sense in which
these words are employed, is one who receives a definite and fixed order or
commission, foreign to the exercise of the duties of his office if he is a special
official) so that in representation of the state and being bound to act as an agent
thereof, he executes the trust confided to him.
In the case at bar, the ambulance driver was not a special agent nor was a
government officer acting as a special agent hence, there can be no liability from
the government. The Government does not undertake to guarantee to any person
the fidelity of the officers or agents whom it employs, since that would involve it in
all its operations in endless embarrassments, difficulties and losses, which would be
subversive of the public interest.

c. Art. 34, NCC: When a member of a city or municipal police force refuses
or fails to render aid or protection to any person in case of danger to life
or property, such peace officer shall be primarily liable for damages, and
the city or municipality shall be subsidiarily responsible therefor. The civil
action herein recognized shall be independent of any criminal
proceedings, and a preponderance of evidence shall suffice to support
such action.
The LGU is subsidiarily liable for damages suffered by a person by reason
of the failure or refusal of a member of the police to render aid and
protection in case of danger to life and property.
2. Liability for Tort
Despite the clear language of Sec. 24, RA 7160, that the local government
units and their officials are not exempt from liability for death or injury to
persons or damage to property, it is still unclear whether liability will accrue
when the local government unit is engaged in governmental functions.
Supreme Court decisions, interpreting legal provisions existing prior to the
effectivity of the Local Government Code, have come up with the following
rules on municipal liability for tort:
a. If the LGU is engaged in governmental functions, it is not liable.

In Palafox vs. Province of Ilocos Norte, 102 Phil 1186, as well as in Palma vs.
Garciano, it was held that the prosecution of crimes is a governmental
function, and thus, the LGU may not be held liable therefor.

The Municipality was not held liable for torts committed by a regular
employee, even if the dump truck used belonged to the municipality,
inasmuch as the employee was discharging governmental (public works)
functions. (Municipality of San Fernando vs. Firme 195 SCRA 692)

b. If engaged in proprietary functions, LGU is liable.

Operation of a ferry service is a proprietary function. The municipality is

negligent and thus liable for having awarded the franchise to operate ferry
service to another notwithstanding the previous grant of the franchise to the
plaintiff. (Mendoza vs. de Leon, 33 Phil 508)

Holding a town fiesta is a proprietary function. The Municipality of Malasigue,

Pangasinan, was held liable for the death of a member of the zarzuela group
when the stage collapsed, under the principle of respondeat superior. (Torio
vs. Fontanilla, 85 SCRA 599)

Liability for illegal dismissal of an employee.

Inasmuch as there is no finding that malice or bad faith attended the illegal
dismissal and refusal to reinstate respondent Gentallan by her superior
officers, the latter cannot be held personally accountable for back salaries.
(Municipality of Jasaan vs. Gentallan, G.R. No. 154961, May 9, 2005)
A Municipal corporation, whether or not included in the complaint for
recovery of back salaries due to wrongful removal from office is liable. (City of
Cebu vs. Judge Piccio, 110 Phil 558)

Local officials may also be held personally liable.

Where the city officials ordered the construction of a drug rehabilitation
center on the open space donated by the subdivision owner in violation of PD
1216, the cost of demolition of the drug rehabilitation center should be borne
by the city officials who ordered the construction because they acted beyond
the scope of their authority and with evident bad faith. (City of Angeles vs.
CA, 261 SCRA 90)
The Provincial Governor and the members of the Provincial Board were held
liable for damages in their personal capacity arising from the illegal act of
dismissing employees in bad faith. (Rama vs. Court of Appeals, 148 SCRA
496)
Mayor Sabillano was adjudged personally liable for payment of back salaries
of a policeman who was illegally dismissed. According to the Supreme Court:
The Mayor cannot hide behind the mantle of his official capacity and pass
the liability to the Municipality of which he is a Mayor. (Nemenzo vs.
Sabillano, 25 SCRA 1)

3. Liability for Violation of Law

When the Mayor refused to abide by a TRO issued by the court, he may be
held in contempt. (Moday vs. CA, 1997)

When the LGU does not pay the statutory minimum wage (mandated by law)
even if there is lack of funds. (Racho vs. Municipality of Ilagan, Isabela, 1968)

4. Liability for Contracts

General Rule: Local government unit is liable only for contracts that are intra vires.

Intra vires means within the powers

Ultra vires means beyond the powers"
If an act requires legal authority and it is done with such authority, it is
characterized in law as intra vires ("within the powers"). If it is done without
such authority, it is ultra vires. Acts that are intra vires may equivalently be
termed "valid" and those that are ultra vires "invalid".

Doctrine of Implied Municipal Liability

A municipality may become obligated upon an implied contract to pay the
reasonable value of the benefits accepted or appropriated by it as to which it has
the general power to contract (Province of Cebu vs. IAC, 147 SCRA 447). It applies to
all cases where money or other property of a party is received under such
circumstances that the general law, independent of an express contract, implies an
obligation to do justice with respect to the same.
Province of Cebu vs. IAC, 147 SCRA 447
FACTS: On 1964, while then incumbent Governor Espina was on official business in
Manila, the Vice-Gov, Almendras and 3 members of the Provincial Board enacted A
Resolution donating to the City of Cebu an area of over 380 hectares. The deed of
donation was immediately executed in behalf of the Province of Cebu by ViceGovernor Almendras and accepted in behalf of the City of Cebu by Mayor Sergio
Osmea, Jr. The document of donation was prepared and notarized by a private
lawyer.
The donated lots were to be sold by the City of Cebu to raise funds that would
be used to finance its public improvement projects. Upon his return from Manila,
Governor Espina disagreed with the donation and to prevent the sale of the lots, the
officers and members of the Cebu Mayor's League along with some taxpayers,
including Atty. Garcia, filed a case seeking to have the donation declared illegal, null
and void Named defendants in the suit were the City of Cebu, City Mayor Sergio
Osmea, Jr. and the Cebu provincial officials responsible for the donation of the
province-owned lots.
After the city announced the sale of the lots, Governor Espina, engaged the
services of respondent Garcia, for the annulment of the deed of donation
The Provincial Board passed a resolution authorizing the Provincial Attorney,
Baguia, to enter his appearance for the Province of Cebu and for the incumbent
Governor, Vice-Governor and members of the Provincial Board in this case.
For services rendered Atty. Garcia filed a Notice of Attorney's Lien, praying
that his statement of claim of attorney's lien in said case be entered upon the
records. To said notice, petitioner Province of Cebu opposed: the payment of
attorney's fees are not allowed by law.
ISSUE: whether the governor may validly engage the services of a private lawyer
and whether the province may be held liable to pay the fees.
HELD: Collaboration of a private law firm with the fiscal and the municipal attorney
is not allowed. Sec. 1683 Revised Administrative Code:The provincial fiscal shall
represent the province and any municipality when the provincial fiscal is disqualified
to serve any municipality or other political subdivision of a province, a special
attorney may be employed by its council.

The municipality's authority to employ a private lawyer is expressly limited

only to situations where the provincial fiscal is disqualified to represent it.
Ratio: (1) local government should not be burdened with the expenses of hiring a
private lawyer; (2) the interests of the municipal corporation would be best
protected if a government lawyer handles its litigations.
However, the circumstances obtaining in the case at bar are such that the
rule (governor must be authorized by resolution to hire private lawyer) cannot be
applied. The Provincial Board would never have given such authorization. The
present case, the controversy involved an intramural fight between the Provincial
Governor on one hand and the members of the Provincial Board on the other hand.
The Provincial Board would not adopt a resolution authorizing the Governor to
employ Atty. Garcia to act as counsel for the Province of Cebu for the purpose of
filing and prosecuting a case against the members to the same Provincial Board
According to the claimant.

MUNICIPALITY OF PILILLA, RIZAL vs. COURT OF APPEALS, 233 SCRA 484

FACTS: Atty. Felix E. Mendiola served as counsel for the Municipality of Pililia in a
collection suit for unpaid business taxes, storage permit fee, mayors permit fee,
sanitary inspection fee, and the cost of the suit against private respondent
Philippine Petroleum Corporation (PPC). The municipality won in the trial court, and
when PPC elevated the case to the Supreme Court, the SC affirmed the aforesaid
judgment. The judgment became final and executory and the records were
remanded to the trial court for execution.
In connection with the execution of said judgment, Atty. Felix E. Mendiola filed
a motion in behalf of the municipality for the examination of defendant
corporation's gross sales for the years 1976 to 1978 and 1984 to 1991 for the
purpose of computing business tax. Defendant corporation filed a manifestation
that Pililla Mayor NicomedesPatenia received from it the sum of P11,457,907.00 as
full satisfaction of the above-mentioned judgment of the Supreme Court, as
evidence by the release and quitclaim documents executed by said mayor. The RTC
denied the municipality's motion for examination and execution of judgment on the
ground that the judgment had already been satisfied.
It was when the case was only when the case was brought before to the CA
that respondent PPC filed a motion questioning Atty. Mendiola's authority to
represent petitioner municipality.The Court of Appeals dismissed the petition for
having been filed by a private counsel in violation of law and jurisprudence, but
without prejudice to the filing of a similar petition by the Municipality of Pililla
through the proper provincial or municipal legal officer.
Issue: Whether or not Atty. Mendiola can represent the Municipality of Pilila
Held: No. The Court of Appeals is correct in holding that Atty. Mendiola has no
authority to file a petition in behalf of and in the name of the Municipality of Pililla.
Section 1683 of the Revised Administrative Code provides:

Section 1683.Duty of fiscal to represent provinces and provincial subdivisions

in litigation. The provincial fiscal shall represent the province and any
municipality or municipal district thereof in any court, except in cases
whereof original jurisdiction is vested in the Supreme Court or in cases where
the municipality or municipal district in question is a party adverse to the
provincial government or to some other municipality or municipal district in
the same province. When the interests of a provincial government and of any
political division thereof are opposed, the provincial fiscal shall act on behalf
of the province.
When the provincial fiscal is disqualified to serve any municipality or other
political subdivision of a province, a special attorney may be employed by its
council.
Only the provincial fiscal and the municipal attorney can represent a province or
municipality in their lawsuits. The provision is mandatory. The municipality's
authority to employ a private lawyer is expressly limited only to situations where
the provincial fiscal is disqualified to represent it.

Exception: LGU may not be estopped in order to validate a contract which the LGU
is not authorized to make even if it has accepted the benefits thereunder (San
Diego vs. Municipality of Naujan, 1960)
A private individual who deals with a LGU is imputed with constructive
knowledge of the extent of the power or authority of the LGU to enter into
contracts. Thus, ordinarily, the doctrine of estoppel does not lie against the LGU.
Mancenido vs. Court of Appeals, G.R. No. 118605, April 12, 2000
FACTS: Petitioners, who are public school teachers, filed a case against the
provincial officials to compel them to pay their claims for unpaid salary increases. In
this petition for review on certiorari, they argue that the CA erred in recognizing the
authority of the council of the provincial officials to file a notice of appeal.
HELD: The SC held that in resolving whether a local government official may
secure the services of private counsel in an action filed against him in his official
capacity, the nature of the action and the relief sought are to be considered. In view
of the damages sought in the case at bar which, if granted, could result in personal
liability, respondents could not be

LOCAL OFFICIALS
Provisions Applicable to Elective and Appointive Officials
A. Prohibited Business and Pecuniary Interest
Section 89 of Republic Act 7160 provides that; it shall be unlawfull for any
local government official or employee, directly or indirectly, to:
1. Engage in any business transaction with the local government 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

2.
3.

4.
5.

attorneys whereby money is to be paid, or property or any other thing of

value isto be transferred, directly or indirectly, out of the resources of
thelocal government unit to such person or firm;
Hold such interest in any cockpit or other games licensed by a local
governemtn unit;
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 legal
process at the instance of the said local government nuit;
Bea surety for any person contracting or doing business with the local
government unit for which a surety is required; and
Possess or use any public property of the local government unit for private
purposes.

B. Practice of Profession
Section 90 of R.A. 7160 states that:
1. All governors, city and municipal mayors are prohibited from practicing
their profession or engaging in any occupation other than the exercise of
their functions as local chief executives;
2. Saggunian members may practice their profession, engage in any
occupation, or teach in schools except during session hours: Provided,
That Sanggunian members who are also members of the Bar shall not:
a. Appear as counsel before any court in any civil case wherein a local
government unit or any office, agency, or instrumentality of the
government is the adverse party;
b. Appear as counsel in any criminal case whrein an officer or
employee of the national or local government is accused of an
offense committed in relation to his office.
c. Collect any fee for their appearance in administrative proceedings
involving the local government unit of which he is an official; and
d. Use property and personnel of the government except when the
sanggunian member concerned is defending the interest of the
government.
3. Doctors of medicine may practice their profession even during official
hours of work only on occassions of emergency: provided, That the
officials concerned do not derive monetary compensation therefrom.
C. Prohibition against Appointment
1. Section 7, Article IX-B of the Constitution states that, no elective official
shall be eligilbefor appointment or designation in any capacity to any
public office or position during his tenure.
Unless otherwise allowed by law or by the primary functions of his
position, no appointive official shall hold any other office or
employment n the Govenrment or any subdivision, agency or
instrumentality thereof, including government-owned or controlled
corporations or their subsidiaries.
2. Also Section 6, of Article IX-B of the 1987 Constitution provides that, no
candidate who has lost in any election shall, within one year after such
election, be appointed to any office in the Government of any
government-owned or controlled corporations or in any of its subsidiaries.
However, a losing candidate in barangay elections are not included in
the prohibition.
Elective Local Officials
Qualifications and Disqualifications

Section 39 of Republic Act 7160 provides for the qualifications of an Elective

Local Official:
(a) An elective local official must be a citizen of the Philippines; a registered voter in
the barangay, municipality, city, or province or, in the case of a member of the
sangguniangpanlalawigan, sangguniangpanlungsod, or sangguniangbayan, the
district where he intends to be elected; a resident therein for at least one (1) year
immediately preceding the day of the election; and able to read and write Filipino or
any other local language or dialect.
(b) Candidates for the position of governor, vice-governor, or member of the
sangguniangpanlalawigan,
or
mayor,
vice-mayor
or
member
of
the
sangguniangpanlungsod of highly urbanized cities must be at least twenty-three
(23) years of age on election day.
(c) Candidates for the position of mayor or vice-mayor of independent component
cities, component cities, or municipalities must be at least twenty-one (21) years of
age on election day.
(d) Candidates for the position of member of the sangguniangpanlungsod or
sangguniangbayan must be at least eighteen (18) years of age on election day.
(e) Candidates for the position of punong barangay or member of the sangguniang
barangay must be at least eighteen (18) years of age on election day.
(f) Candidates for the sangguniangkabataan must be at least fifteen (15) years of
age but not more than twenty-one (21) years of age on election day.
In the case of Garvidavs Sales, 271 scra 767 petitioner who was over 21
years of age on the day of the election was ordered disqualified by the Supreme
Court when the latter rejected the contention of the petitioner that she was
qualified because she was less then 22 years old. The phrase not more than 21
years old is not equivalent to less than 22 years old.
Section 40 under the same Act provides for the disqualifications:
The following persons are disqualified from running for any elective local position:
(a) Those sentenced by final judgment for an offense involving moral turpitude or
for an offense punishable by one (1) year or more of imprisonment, within two (2)
years after serving sentence;
(b) Those removed from office as a result of an administrative case;
(c) Those convicted by final judgment for violating the 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
reside abroad and continue to avail of the same right after the effectivity of this
Code; and
(g) The insane or feeble-minded.

Manner of Election
(a) The governor, vice-governor, city mayor, city vice-mayor, municipal mayor,
municipal vice-mayor, and punong barangay shall be elected at large in their
respective units by the qualified voters therein. However, the sangguniangkabataan
chairman for each barangay shall be elected by the registered voters of the
katipunanngkabataan, as provided in this Code.
(b) The regular members of the sangguniangpanlalawigan, sangguniangpanlungsod,
and sangguniangbayan shall be elected by district as follows:
First and second-class provinces shall have ten (10) regular members; third and
fourth-class provinces, eight (8); and fifth and sixth-class provinces, six (6):
Provided, That in provinces having more than five (5) legislative districts, each
district shall have two (2) sangguniangpanlalawigan members, without prejudice to
the provisions of Section 2 of Republic Act No. 6637. Sangguniang barangay
members shall be elected at large. The presidents of the leagues of sanggunian
members of component cities and municipalities shall serve as ex officio members
of the sangguniangpanlalawigan concerned. The presidents of the ligangmga
barangay and the pederasyonngmgasangguniangkabataan elected by their
respective chapters, as provided in this Code, shall serve as ex officio members of
the sangguniangpanlalawigan, sangguniangpanlungsod, and sangguniangbayan.
(c) In addition thereto, there shall be one (1) sectoral representative from the
women, one (1) from the workers, and one (1) from any of the following sectors: the
urban poor, indigenous cultural communities, disabled persons, or any other sector
as may be determined by the sanggunian concerned within ninety (90) days prior to
the holding of the next local elections as may be provided for by law. The COMELEC
shall promulgate the rules and regulations to effectively provide for the election of
such sectoral representatives. (Section 41, R.A. 7160)

Date of Election
Every three years on the second Monday of May, unless otherwise provided
by law.

Term Limits (Terms of Office)

Length of Term

For elective local officials, except barangay officials:

o

Three (3) years, starting from noon of June 30, 1992, or such date as
may be provided by law.

For elective barangay officials and members of the SangguniangKabataan:

Three (3) years, which shall begin after the regular election of
barangay officials on the second Monday of May 1994. (R.A. 9164:
Synchronized Barangay and SangguniangKabataan Elections 2002)

No elective local official shall serve for more than three (3) consecutive terms
in the same position.
a. Reckoned from the 1994 barangay elections
b. Voluntary renunciation of office for any length of time shall not be
considered as an interuption.

The three-term limit on a local official is to be understood to refer to

terms for which the official concerned was elected. Thus a person who was
elected Vice Mayor in 1988 and who, because of the death of the Mayor,
became mayor in 1989, may still be eligible to run for the position of mayor
in 1998, even if elected as such in 1992 and 1995. (Borja vs. Comelec,
G.R.No. 133495, September 3, 1998).
Consequently, it is not enough that an individual has served three
consecutive terms in an elective local office. He must also have been elected
to the same position for the same number of times before the disqualification
can apply. (Adormeo v. Comelec, G.R.No. 147927, February 4, 2002). Also
citing the case of Ongvs, Alegre, G.R. Nos. 163296 & 163354, January 23,
2006, for the three term limit for elective local government officials to apply,
two conditions must concur: (a) the official concerned has been elected for
three consecutive terms in the same local government post; and (b) he has
served three consecutive terms.

Rules for FULLY SERVED term

1. Voluntary renunciation of the office for any length of time shall not be
considered as an interruption in the continuity of service.
2. The conversion of a municipality to a city without interruption of the term
of an elective official is not considered an iterruption in the continuity of
service. (Latasa vs. COMELEC, G.R. No. 154829, december 10, 2003)
3. Election via recall election does not satisfy a fully-served
(Lonzanidavs COMELEC, G.R. No. 135150, July 28, 1999)

term.

4. The imposition of preventive suspension should not be considered an

interruption that allows an elective official to stay in office for more than
three terms. (Aldovino vs. COMELEC, G.R. No. 184836, december 23,
2009)

In the case of Socrates vs COMELEC, G.R. No. 154512, November 12, 2002,
after three consecutive terms, an elective official cannot run for immediate
re-election for a fourth term. The prohibited election refers to the next regular
election for the same office following the same office following the third
consecutive term. Any subsequent election, like recall election, is no longer
covered by the prohibition for two reasons: (1) a subsequent election like
recall election, is no longer an immediate re-election after three consecutive
terms; and (2) the intervening period constitutes an involuntary interruption
in the continuity of service.
The constitution does not require that the interruption be a full term of
3 years. The clear intent of the framers of the law is that iterruption for any
length of time is sufficient to break an elective local officials continuity of
service.

In the case of Latasavs COMELEC G.R. No. 154829, December 10, 2003, the
mayor of a municipality held his post for three terms. During his last term,
the municipality became a city and ge was declared hold-over mayor by the
charter. The said mayor should not be allowed to run again. If he were
allowed to do so, he would have served the same people for a term more
than what is allowed by law.

Strict adherence to the intent of the three-term limit rule demands that
preventive suspension should not be considered an interruption that allows
an elective officials stay in office beyond three terms. A preventive
suspension cannot simply be a term interruption because the suspended
official continues to stay in office although he is barred from exercising the
functions and prerogatives of the office within suspension period. The best
indicator of the suspended officials continuity in office is the absence of a
permanent replacement and the lack of the authority to appoint one since no
vacancy exists.
To allow a preventively suspended elective official to run for a fourth
and prohibited term is to close our eyes to this reality and to allow a
constitutional violation through sophistry by equating the temporary inability
to discharge the functions of office with the interruption of term that the
constitutional provision contemplates. (Aldovinovs COMELEC)

SUCCESSION OF ELECTIVE OFFICIALS

Permanent Vacancy
Under Section 44 of the Local Government Code, permanent vacancy
occurs when an elective local official:
1. Fills a higher vacant office
2. Refuses to assume office
3. Fails to qualify
4. Dies
5. Is removed from office
6. Voluntarily resigns
7. Otherwise permanently incapacitated from discharging the functions of his
office.
Permanent Vacancies in the Offices of the Governor, Vice-Governor, Mayor,
and Vice-Mayor. (a) If a permanent vacancy occurs in the office of the
governor or mayor, the vice-governor or vice-mayor concerned shall become
the governor or mayor. If a permanent vacancy occurs in the offices of the
governor, vice-governor, mayor, or vice-mayor, the highest ranking
sanggunian member or, in case of his permanent inability, the second highest
ranking sanggunianmember, shall become the governor, vice-governor,
mayor or vice-mayor, as the case may be. Subsequent vacancies in the said
office shall be filled automatically by the other sanggunian members
according to their ranking as defined herein.
(b) If a permanent vacancy occurs in the office of the punong barangay, the
highest ranking sanggunian barangay member or, in case of his permanent
inability, the second highest ranking sanggunianmember, shall become the
punong barangay.
A tie between or among the highest ranking sanggunian members
shall be resolved by the drawing of lots

The successors as defined herein shall serve only the unexpired terms
of their predecessors

Permanent Vacancies in the Sanggunian. (a) Permanent vacancies in

the sanggunian where automatic succession provided above do not apply
shall be filled by appointment in the following manner:
(1) The President, through the Executive Secretary, in the case of the
sangguniangpanlalawigan and the sangguniangpanlungsod of highly
urbanized cities and independent component cities;

(2) The governor, in the case of the sangguniangpanlungsod of component

cities and the sangguniangbayan;
(3) The city or municipal mayor, in the case of sangguniang barangay, upon
recommendation of the sangguniang barangay concerned.
(b) Except for the sangguniang barangay, only the nominee of the political
party under which the sanggunian member concerned had been elected and
whose elevation to the position next higher in rank created the last vacancy
in the sanggunian shall be appointed in the manner hereinabove provided.
The appointee shall come from the same political party as that of the
sanggunian member who caused the vacancy and shall serve the unexpired
term of the vacant office. In the appointment herein mentioned, a nomination
and a certificate of membership of the appointee from the highest official of
the political party concerned are conditions sine qua non, and any
appointment without such nomination and certification shall be null and void
ab initio and shall be a ground for administrative action against the official
responsible therefor.
(c) In case the permanent vacancy is caused by a sanggunian member who
does not belong to any political party, the local chief executive shall, upon
recommendation of the sanggunian concerned, appoint a qualified person to
fill the vacancy.
(d) In case of vacancy in the representation of the youth and the barangay in
the sanggunian, said vacancy shall be filled automatically by the official next
in rank of the organization concerned.
General Rule: the appointee under Section 45 must be a nominee of the
political party under which the sanggunian member had been elected.
Conditions sine qua non: There must be a nomination and certificate of
membership from the highest official of the political party or else the appointment
is:
1. Null and Void ad inito; and
2. a ground for administrative action against the responsible official.
If sanggunian member who caused vacancy does not belong to any political
party, the local chief executive shall appoint a qualified person, upon
recommendation of the sanggunian.
The right behind the right given to a political party to nominate a
replacement when a permanent vacancy occurs in the Sanggunian is to maintain
the party representation as willed by the people in the election. (Navarro vs Court of
Appeals, G.R. No. 141307, March 28, 2001)
Temporary Vacancy
Temporary vacancy occurs when the local chief executive is due to:
Leave of absence
Traveling abroad
Suspension from office
Extent of duty exercised by Temporary Successor
General Rule: The successor shall automatically exercise the powers and
perform the duties and functions of the local chief executive.
Exception: The power to appoint/suspend/dismiss employees can be
exercised on ly if the period of incapacity exceeds 30 working days; or if the

successor is appointed in writing, if the authorization specifies such powers to

the successor.
If the local chief executive is traveling within the country but outside his
territorial jurisdiction for a period not exceeding 3 consecutive days, he may
designate in writing the officer-in-charge.
General Rule: the local chief executive cannot authorize any local official to
assume the powers, or duties or the functions of his office, other than the vicegovernor, city or municipal vice-mayor, or highest ranking sangguniang
barangay member.
The authorization shall specify the powers and functions that the officer-incharge shall exercise.
If the local chief executive fails or refuses to issue the authorization, the vicegovernor, city or municipal vice-mayor, or highest ranking sangguniang
barangay member has right to assume the powers, duties, and functions of the
office on the fourth say of absence.
Exception: the power to appoint, suspend and dismiss employees.
Termination of Temporary Incapacity
Upon submission to the sanggunian of a written declaration that he has
reported back to office. If the temporary incapacity is due to legal causes, he
must also submit the necessary documents showing that the legal causes no
longer exist.

COMPENSATION
The compensation of local officials and personnel shall be determined by the
sanggunian concerned: Provided, That the increase in compensation of elective
local officials shall take effect only after the terms of office of those approving such
increase shall have expired: Provided, further, That the increase in compensation of
the appointive officials and employees shall take effect as provided in the ordinance
authorizing such increase: Provided, however, That said increases shall not exceed
the limitations on budgetary allocations for personal services provided under Title
Five, Book II of this Code: Provided, finally, That such compensation may be based
upon the pertinent provisions of Republic Act Numbered Sixty-seven fifty-eight (R.A.
No 6758), otherwise known as the Compensation and Position Classification Act of
1989.
The
punong
barangay,
the
sangguniang
barangay
members,
the
sangguniangkabataan chairman, the barangay treasurer, and the barangay
secretary shall be entitled to such compensation, allowances, emoluments, and
such other privileges as provided under Title One, Book III of this Code.
Elective local officials shall be entitled to the same leave privileges as those enjoyed
by appointive local officials, including the cumulation and commutation thereof.
(Section 81, LGC)

RECALL
The ground for recall is loss of confidence upon the local government official.

The right to recall is given to the registered voters of the Local government
unit to which the local elective official subject to recall belongs.
Commencement of Recall Process:

By a petition of a registered voter supported by

o

25% of registered voters if local government unit has population not

more than 20,000

20% of registered voters if local government unit has voting population

of 20,000 to 75,000. In no case shall petitioners be less than 5,000

15% of registered voters if the local government unit has voting

population of 75,000 to 300,000. In no case shall petitioners be less
than 15,000.

10% of registered voters if the local government unit has voting

population of more than 300,000. In no case shall petitioners be less
than 45,000.

Election on Recall

Barangay, city or municipal officials: not later than 30 days from completion

Provincial officials: not later than 45 days from compleyion.

Effects to official sought to be Recalled

Not allowed to resign while recall process is in process. And automatically
considered as candidate and is entitled to voted upon.

Effectivity of Recall
Upon election and proclamation of a successor. If the official sought to be
recalled receive the highest number of votes, confidence in him is affirmed and
he shall continue in office.

Limitation on Recall
Local elective official may be subject of a recall election only once during his
term of office for loss of confidence. No recall shall take place within one year
from the date of the officials assumption to office or one year immediately
preceding a regular local election.

RESIGNATION
Resignation of Elective Local Officials. (a) Resignations by elective local
officials shall be deemed effective only upon acceptance by the following
authorities:
(1) The President, in the case of governors, vice-governors, and mayors and vicemayors of highly urbanized cities and independent component cities;
(2) The governor, in the case of municipal mayors, municipal vice-mayors, city
mayors and city vice-mayors of component cities;
(3) The sanggunian concerned, in the case of sanggunian members; and
(4) The city or municipal mayor, in the case of barangay officials.
(b) Copies of the resignation letters of elective local officials, together with the
action taken by the aforesaid authorities, shall be furnished the Department of the
Interior and Local Government.
(c) The resignation shall be deemed accepted if not acted upon by the authority
concerned within fifteen (15) working days from receipt thereof.
(d) Irrevocable resignations by sanggunian members shall be deemed accepted
upon presentation before an open session of the sanggunian concerned and duly
entered in its records: Provided, however, That this subsection does not apply to
sanggunian members who are subject to recall elections or to cases where existing
laws prescribe the manner of acting upon such resignations.

Grievance procedure
In every local government unit, the local chief executive shall establish a
procedure to inquire into, act upon, resolve or settle complaints and grievances
presented by local government employees.

DISCIPLINE OF ELECTIVE OFFICIALS

Grounds for Disciplinary Actions. An elective local official may be
disciplined, suspended, or removed from office on any of the following grounds:
(a) Disloyalty to the Republic of the Philippines;
(b) Culpable violation of the Constitution;
(c) Dishonesty, oppression, misconduct in office, gross negligence, or dereliction of
duty;

(d) Commission of any offense involving moral turpitude or an offense punishable by

at least prision mayor;
(e) Abuse of authority;
(f) Unauthorized absence for fifteen (15) consecutive working days, except in the
case of members of the sangguniangpanlalawigan, sangguniangpanlungsod,
sangguniangbayan, and sangguniang barangay;
(g) Application for, or acquisition of, foreign citizenship or residence or the status of
an immigrant of another country; and
(h) Such other grounds as may be provided in this Code and other laws.
An elective local official may be removed from office on the grounds enumerated
above by order of the proper court.

Also, under Section 58 of the Local Government Code, any attempt to enforce
and disapproved ordinance or resolution on local development plans or public
investment programs, shall be sufficient ground for the suspension or dismissal of
the officer or employee concerned.

Jurisdiction of administrative complaints ( Section 61, LGC):

(a) A complaint against any elective official of a province, a highly urbanized city, an
independent component city or component city shall be filed before the Office of the
President;
(b) A complaint against any elective official of a municipality shall be filed before
the sangguniangpanlalawigan whose decision may be appealed to the Office of the
President; and
(c) A complaint against any elective barangay official shall be filed before the
sangguniangpanlungsod or sangguniangbayan concerned whose decision shall be
final and executory.

If the penalty is removal, it must be order of the proper court. The

Sanggunians cannot order the removal of an erring elective official from office, as
the courts are exclusively vested with this power under Section 60 of the Local
Government Code.
If the acts allegedly committed by the official are of grave nature and, if
found guilty, would merit the penalty of removal from office, the case should be
filed with the regional trial court. If it is found that the penalty will be lower than
removal, the court still retains its jurisdiction. (Sangguniang Barangay of Don
Mariano Marcos vs Martinez 2008)

The ombudsman have primary jurisdiction on acts or omissions of a public

officer or employee in cases cognizable by the Sandiganbayan, with a salary grade
of 27 or higher. (Section 15 of R.A. 6770)
The ombudsman exercises concurrent jurisdiction over administrative cases
against officials occupying positions below salary grade 27. Even if filed in the
Ombudsman and the Sanggunian concerned, identical complaints will not violate
the rule against forum shopping because the complaints are in the nature of an
administrative case.

PREVENTIVE SUSPENSION

Preventive Suspension under the Local Government Code

It will be imposed at any time the issues are joined, when the evidence of
guilt is strong, and that any of the following are present:

The charge against the officer or employee should involve dishonesty,

oppression or grave misconduct or neglect in the performance of duty;

The charges should warrant removal from office; or

The respondents continued stay in office would prejudice the case filed
against him.

Rules on length of Preventive Suspension

Not longer than 60 days

Cannot be imposed 90 days before an election; if imposed before said

period but extends to such, automatically lifted upon start of the 90 day
period

Cannot be suspended for more than 90 days within a single year on the
same fround existing and known at the time of the first suspension;

Once lifted, official is deemed reinstated without prejudice to the

continuance of the proceedings against him.

Pending preventive suspension

No salary shall be paid during period of suspension, but if subsequently

exonerated and reinstated, he shall be paid full that accrued during such
suspension;

Accorded full opportunity to appear and defend himself, to confront

witnesses, and require attendance of witnesses and production of evidence.

While Preventive Suspension under Republic Act 6770 (Ombudsman)

The Ombudsman or his Deputy may preventively suspend any officer or
employee under his authority pending an investigation:

Is there is a reasonable ground to believe that the respondent has committed

the act or acts complained of;

The evidence of culpability is strong

The gravity of the offense so warrants;

The continuance in office of the respondent could influence the witnesses or

pose a threat to the safety and integrity of the records and other evidence.

Length of Preventive Suspension:

Until the case is terminated by the Office of the Ombudsman but not more
than six months, (a) without pay; and (b) when the delay in the disposition of the
case by the Ombudsman is due to the fault, negligence or petition of the
respondent, the period of such delay shall not be counted in computing the
period of suspension herein proviced.

REMOVAL

An elective official may be removed by order of the proper court.

The penalty of removal from office as a result of an administrative
investigation shall be considered a bar to the candidacy of the respondent for any
elective position. (Section 66, LGC)

ADMINISTRATIVE APPEAL

Decisions may, within 30 days from receipt thereof, be appealed to.

To Whom Appealable

Decisions of SangguniangPAnglungsod of component cities, and Sangguniang

Bayan, may be appealed to SangguniangPanlalawigan

Decisions of SangguniangPanlalawigan and SangguniangPanglungsod of

highly urbanized cities or independent component cities, may be appealed to
the Office of the President

Decisions of the Office of the President, is final and executor.

The appeal shall not prevent a decision from being final and executory.

Doctrine of Condonation
A public official cannot be removed for administrative misconduct committed
during a prior term, since his re-election to office operates as a condonation of
the officers previous misconduct to the extent of cutting off the right to remove
him therefor. The foregoing rule, however, finds no application to criminal cases,
as these are violations against the state itself. (Aguinaldo vs Santos 1992).
According to the case of Malinaovs Reyes, 255 scra 616, the re-election of a
local official bars the continuation of the administrative case against him,
inasmuch as the re-election of the official is tantamount to condonation by the
people of whatever past misdeeds he may have committed.

APPOINTIVE LOCAL OFFICIALS

Responsibility for human resources and development the local chief

executive shall be responsible for human resources and development in his unit and
shall take all personnel actions in accordance with the Constitution, pertinent laws,
including such policies, guidelines and standards as the Civil Service Commission
may establish; Provided that the local chief executive may employ emergency or
casual employees or laborers paid on a daily wage or piecework basis and hired
through job orders for local projects authorized by the sanggunian concerned,

without need of approval or attestation by the Civil Service Commission, as long as

the said employment shall not exceed sis months.
In the case of De Rama vs Court of Appeals, G.R. No. 131136, February 28,
2001, it was held that the constitutional prohibition on so-called midnight
appointments, specifically those made within two months immediately prior to the
next presidential elections, applies only to the President or to the Acting President.
There is no law that prohibits local elective officials from making appointments
during the last days of their tenure absent fraud on their part, when such
appointments are not tainted by irregularities or anomalies which breach laws and
regulations governing appointments.

Discipline of Appointive Officials

The power to discipline is specifically granted by the Revised
Administrative Code to heads of departments, agencies, and instrumentalities,
provinces, and cities. The appointing authority is generally the disciplinary authority.
Jurisdiction
Except as otherwise provided by law, the local chief executive may
impose the penalty:

of removal from service,

demotion in rank,

suspension for not more than one (1) year without pay,

fine in an amount not exceeding six (6) months salary,

or reprimand and otherwise discipline subordinate officials and

employees under his jurisdiction.

If the penalty imposed is suspension without pay for not more than
thirty (30) days, his decision shall be final.

If the penalty imposed is heavier than suspension of thirty (30) days,

the decision shall be appealable to the Civil Service Commission, which
shall decide the appeal within thirty (30) days from receipt thereof.

Resignation of Appointive Officials

Requisites to Constitute Resignation

Intention to relinquish a part of the term

Act of relinquishment

Acceptance by the proper authority

Elements of Abandonment:

Intent to abandon

And overt act by which the intention is to be carried into effect.

INTERGOVERNMENTAL RELATIONS
I.

II.

III.

IV.

V.

VI.

I.

National Government and Local Government Units

i. National Supervision over Local Government Units
ii. Duty of National Government Agencies in the Maintenance of
Ecological Balance
Relations with the Philippine National Police
i. Powers of Local Chief Executives over the Units of the Philippine
National Police
Inter-Local Government Relations
i. Provincial Relations with Component Cities and Municipalities
ii. Review of Executive Orders
iii. Submission of Municipal Questions to the Provincial Legal Officer
or Prosecutor
iv. City and Municipal Supervision over their respective Barangays
v. Cooperative Undertakings among Local Government Units
Relations with Peoples and Nongovernmental Organizations
i. Role of Peoples and Non-governmental Organizations
ii. Linkages with Peoples and Non-Governmental Organizations
iii. Assistance to Peoples and Non-Governmental Organizations
Mandated Local Agencies
i. Local School Board
ii. Local Health Board
iii. Local Development Council
iv. Local Peace and Order Council
Settlement of Boundary Disputes
i. Jurisdictional Responsibility for Settlement of Boundary Dispute
ii. Appeal

NATIONAL GOVERNMENT AND LOCAL GOVERNMENT UNITS

i. National Supervision over the Local Government Units
The President shall exercise general supervision over local
government units to ensure that their acts are within the scope
of their prescribed powers and functions
The President shall exercise supervisory authority directly
over:
a. Provinces;
b. Highly Urbanized Cities;
c. Independent Component Cities;
d. Through the province with respect to component
cities and municipalities; and

e. Through the city and municipality with respect to

Barangays.
As to Project Implementation Functions, National Agencies
and offices shall coordinate with one another and with the local
government units concerned in the discharge of these functions.
They shall ensure the participation of the local government units
both in the planning and implementation of said National
Projects.
As to provide Financial, Technical, or other forms of
assistance to the local government unit, upon request of the
local government, The President may direct the appropriate
national agency to provide assistance. Such assistance shall be
extended at no cost to the local government concerned.
For information and guidance, The National Agencies and
offices including GOCCs with field units or branches in the
province, city or municipality shall furnish monthly reports
including duly certified budgetary allocations and expenditures.
ii. Duty of National Government Agencies in the Maintenance of
Ecological Balance
It shall be the duty of every national agency or GOCC
authorizing or involved in the planning and implementation of
any project or program that may cause pollution, climate
change, depletion of non-renewable resources, loss of crop land,
rangeland, or forest cover and extinction of animal or plant
species to CONSULT with the LGUs, Nongovernmental
Organizations and other sectors concerned:
a. To explain the goals and objectives of project or
programs;
b. Its impact upon the people and the community in
terms of environmental or ecological balance; and
c. To measure that will be undertaken to prevent or
minimize the adverse effect thereof.
iii. Prior Consultation Required
No project or program shall be implemented by
government authorities unless consultations in Sec. 25 (c) and
Sec 26 of the LGC are complied with and prior approval of the
Sanggunian concerned is obtained: Provided, that occupants in
areas where such projects are to be implemented shall not be
evicted unless appropriate relocation sites have been provided,
in accordance with the provisions of the Constitution.

II.

RELATIONS WITH THE PHILIPPINE NATIONAL POLICE

i. Powers of Local Chief Executives over the Units of the Philippine
National Police
The extent of operational supervision and control of local
chief executives over the police force, fire protection unit, and

jail management personnel assigned in their respective

jurisdiction shall be governed by the provisions of RA No. 6975
(DILG Act of 1990) and the rules and regulations issued pursuant
thereto.
III.

INTER-LOCAL GOVERNMENT RELATIONS

i. Provincial Relations with Component Cities and Municipalities
The province through the governor shall ensure that every
competent city and municipality within its territorial jurisdiction
acts within the scope of its prescribed powers and functions.
Highly urbanized cities and independent component cities shall
be independent of the province.
ii.

Review of Executive Orders

Except as otherwise provided under the Constitution and
special statutes. The governor shall review all executive orders
promulgated by the component city or municipal mayor within
his jurisdiction. The city or municipal mayor shall review all
executive orders promulgated by the punong barangay within
his jurisdiction. If the governor or the city or the municipal
mayor fails to act on said executive orders within 30 days from
submission, the same shall be deemed consistent with law and
therefore valid.

iii. Submission of Municipal Questions to the Provincial Legal Officer

or Prosecutor
In the absence of a municipal legal officer, the municipal
government may secure the opinion of the provincial legal
officer, and in the absence of the latter, that of the provincial
prosecutor on any legal question affecting the municipality.
iv. City and Municipal Supervision over their respective Barangays
The city or municipality, through the city or municipal
mayor, shall exercise general supervision over component
barangays to ensure that said Barangays act within the scope of
their prescribed powers and functions.
v. Cooperative Undertakings among Local Government Units
Local government units may, through appropriate
ordinances, group themselves, consolidate, or coordinate their
efforts, services and resources for purposes commonly beneficial
to them. In support of such undertakings, the local government
units may, upon approval by the sanggunian after a public
hearing conducted for the purpose, contribute funds, real estate,
equipment and other kinds of property and appoint or assign
personnel under such terms and conditions as may be agreed
upon by the participating local units.
IV.

RELATIONS
WITH
PEOPLES
AND
NONGOVERNMENTAL
ORGANIZATIONS
i. Role of Peoples and Non- governmental Organizations

LGUs shall promote the establishment and operation of

peoples and non-governmental organizations to become active
partners in the pursuit of local autonomy.
ii. Linkages with Peoples and Non-governmental Organizations
LGUs may enter into joint ventures and such other
cooperative arrangements with peoples and nongovernmental
organizations to engage in the delivery of certain basic services,
etc.
iii. Assistance to Peoples and Non-Governmental Organizations
LGUs may, through its local chief executive and with the
concurrence of the sunggunian concerned, provide assistance,
financial or otherwise, to such peoples and nongovernmental
orgs. For economic, socially-oriented, environmental or cultural
projects tp be implemented within its territorial jurisdiction.
V.

MANDATED LOCAL AGENCIES

i. Local School Board - There shall be established in every
province, city, or municipality a provincial, city or municipal
school board, respectively.
1. The composition of local school boards shall be as follows:
a. The provincial school board shall be composed of
the governor and the division superintendent of
schools as co-chairmen; the chairman of the
education
committee
of
the
SangguniangPanlalawigan, the provincial treasurer,
the
representative
of
the
pederasyonngmgaSangguniangkabataan
in
the
SangguniangPanlalawigan,
the
duly
elected
president of the provincial federation of parentsteachers
association,
the
duly
elected
representative of the teachers' organization in the
province, and the duly elected representative of the
non-academic personnel of public schools in the
province, as members;
b. The city school board shall be composed of the city
mayor and the city superintendent of schools as cochairmen; the chairman of the education
committee of the SangguniangPanlungsod, the city
treasurer,
the
representative
of
the
pederasyonngmgaSangguniangkabataan
in
the
SangguniangPanlungsod, the duly elected president
of the city federation of parents-teachers
associations, the duly elected representative of the
teachers' organizations in the city, and the duly
elected representative of the non-academic
personnel of public schools in the city, as members;
and
c. The municipal school board shall be composed of
the municipal mayor and the district supervisor of
schools as co-chairmen; the chairman of the
education committee of the Sangguniangbayan,

the municipal treasurer, the representative of the

pederasyonngmgaSangguniangkabataan
in
the
Sangguniangbayan, the duly elected president of
the municipal federation of parents-teachers
associations, the duly elected representative of the
teachers' organizations in the municipality, and the
duly elected representative of the non-academic
personnel of public schools in the city, as members;
2. Functions of Local School Boards
The provincial, city or municipal school board shall:
a. Determine, in accordance with the criteria set by
the Department of Education, Culture and Sports,
the annual supplementary budgetary needs for the
operation and maintenance of public schools within
the province, city or municipality, as the case may
be, and the supplementary local cost of meeting
such needs, which shall be reflected in the form of
an annual school board budget corresponding to its
share in the proceeds of the special levy on real
property constituting the Special Education fund
and such other sources of revenue as this Code and
other laws or ordinances may provide;
b. Authorize the provincial, city or municipal treasurer,
as the case may be, to disburse funds from the
Special Education fund pursuant to the budget
prepared and in accordance with existing rules and
regulations;
c. Serve as an advisory committee to the Sanggunian
concerned on educational matters such as, but not
limited to, the necessity for and the uses of local
appropriations for educational purposes; and
d. Recommend changes in the names of public
schools within the territorial jurisdiction of the local
government unit for enactment by the Sanggunian
concerned.
The Department of Education shall consult the local school board on
the appointment of division superintendents, district supervisors, school
principals, and other school officials.
ii. Local Health Board
1. Creation and Composition. - There shall be established a
local health board in every province, city or municipality.
The composition of the local health boards shall be as
follows:
a. The provincial health board shall be headed by the
governor as chairman, the provincial health officer
as vice-chairman, and the chairman of the
committee
on
health
of
the
SangguniangPanlalawigan, a representative from
the
private
sector
or
non-governmental
organizations involved in health services, and a
representative of the Department of Health in the
province, as members;

b. The city health board shall be headed by the city

mayor as chairman, the city health officer as vicechairman, and the chairman of the committee on
health
of
the
SangguniangPanlungsod,
a
representative from the private sector or nongovernmental organizations involved in health
services, and a representative of the Department of
Health in the city, as members; and
c. The municipal health board shall be headed by the
municipal mayor as chairman, the municipal health
officer as vice-chairman, and the chairman of the
committee on health of the Sangguniangbayan, a
representative from the private sector or nongovernmental organizations involved in health
services, and a representative of the Department of
Health in the municipality, as members;
2. The functions of the local health board shall be:
a. To propose to the Sanggunian concerned, in
accordance with standards and criteria set by the
Department of Health, annual budgetary allocations
for the operation and maintenance of health
facilities and services within the municipality, city
or province, as the case may be.
b. To serve as an advisory committee to the
Sanggunian concerned on health matters such as,
but not limited to, the necessity for, and application
of, local appropriations for public health purposes;
and
c. Consistent with the technical and administrative
standards of the Department of Health, create
committees which shall advise local health
agencies on matters such as, but not limited to,
personnel selection and promotion, bids and
awards, grievances and complaints, personnel
discipline, budget review, operations review and
similar functions.
iii. Local Development Council - Each local government unit shall
have a comprehensive multi-sectoral development plan to be
initiated by its development council and approved by its
Sanggunian. For this purpose, the development council at the
provincial city, municipal, or Barangay level, shall assist the
corresponding Sanggunian in setting the direction of economic
and social development, and coordinating development efforts
within its territorial jurisdiction.
1. Composition of Local Development Councils. - The
composition of the local development council shall be as
follows:
a. The Barangay development council shall be headed
by the Punong Barangay and shall be composed of
the following members:

i. Members of the Sangguniang Barangay;

ii. Representatives
of
non-governmental
organizations operating in the Barangay, who
shall constitute not less than one fourth (1/4)
of the members of the fully organized
council;
iii. A representative of the congressman.
b. The city or municipal development council shall be
headed by the mayor and shall be composed of the
following members:
i. All Punong Barangays
municipality;

in

the

city

ii. The chairman of the committee

appropriations
of
SangguniangPanlungsod
Sangguniangbayan concerned;

or
on
the
or

iii. The congressman or his representative; and

iv. Representatives
of
non-governmental
organizations operating in the city or
municipality, as the case may be, who shall
constitute not less than one-fourth (1/4) of
the members of the fully organized council.
c. The provincial development council shall be headed
by the governor and shall be composed of the
following members:
i. All mayors of
municipalities;

component

cities

ii. The chairman of the committee

appropriations
of
SangguniangPanlalawigan;

and
on
the

iii. The congressman or his representative; and

iv. Representatives
of
nongovernmental
organizations operating in the province, who
shall constitute not less than one-fourth (1/4)
of the members of the fully organized
council.
d. The local development councils may call upon any
local official concerned or any official of national
agencies or offices in the local government unit to
assist in the formulation of their respective
development
plans
and
public
investment
programs.
2. Functions of Local Development Councils. - (a) The
provincial, city, and municipal development councils shall
exercise the following functions:

a. Formulate long-term, medium-term, and annual

socioeconomic development plans and policies;
b. Formulate the medium-term and annual public
investment programs;
c. Appraise and prioritize socioeconomic development
programs and projects;
d. Formulate local investment incentives to promote
the inflow and direction of private investment
capital;
e. Coordinate,
monitor,
and
evaluate
implementation of development programs
projects; and
f.

the
and

Perform such other functions as may be provided

by law or competent authority.

The Barangay development council shall exercise the

following functions:
a. Mobilize people's participation in local development
efforts;
b. Prepare Barangay development plans based on local
requirements;
c. Monitor and evaluate the implementation of national
or local programs and projects; and
d. Perform such other functions as may be provided by
law or competent authority.
iv. Local Peace and Order Council
1. Organization. - There is hereby established in every
province, city and municipality a local peace and order
council, pursuant to Executive Order Numbered Three
hundred nine (E.O. No. 309), Series of 1988. The local
peace and order councils shall have the same composition
and functions as those prescribed by the said executive
order.
VI.

SETTLEMENT OF BOUNDARY DISPUTES

i. Jurisdictional Responsibility for Settlement of Boundary Dispute.
- Boundary disputes between and among local government units
shall, as much as possible, be settled amicably. To this end:
1. Boundary disputes involving two (2) or more Barangays in
the same city or municipality shall be referred for
settlement
to
the
SangguniangPanlungsod
or
Sangguniangbayan concerned.
2. Boundary disputes
involving
two
(2) or more
municipalities within the same province shall be referred
for
settlement
to
the
SangguniangPanlalawigan
concerned.

3. Boundary disputes involving municipalities or component

cities of different provinces shall be jointly referred for
settlement to the Sanggunians of the provinces
concerned.
4. Boundary disputes involving a component city or
municipality on the one hand and a highly urbanized city
on the other, or two (2) or more highly urbanized cities,
shall be jointly referred for settlement to the respective
Sanggunians of the parties.
5. In the event the Sanggunian fails to effect an amicable
settlement within sixty (60) days from the date the
dispute was referred thereto, it shall issue a certification
to that effect. Thereafter, the dispute shall be formally
tried by the Sanggunian concerned which shall decide the
issue within sixty (60) days from the date of the
certification referred to above.
ii. Appeal. - Within the time and manner prescribed by the Rules of
Court, any party may elevate the decision of the Sanggunian
concerned to the proper Regional Trial Court having jurisdiction
over the area in dispute. The Regional Trial Court shall decide
the appeal within one (1) year from the filing thereof. Pending
final resolution of the disputed area prior to the dispute shall be
maintained and continued for all legal purposes.

LOCAL INITIATIVE AND REFERENDUM

I.

Mandated by:
A. The 1987 Constitution Article X, Sec. 3
B. Local Government Code Sections 120-127
C. RA 6735: AN ACT PROVIDING FOR A SYSTEM OF INITIATIVE AND
REFERENDUM

II.

Definitions
A. Local Initiative - A legal process whereby the registered voters of a LGU
may directly propose, enact, or amend any ordinance.
B. Local Referendum - A legal process whereby the registered voters of the
LGUs may approve, amend or reject any ordinance enacted by the
sanggunian.

III.

Statutory Requirements
A. Who may exercise - all registered voters of the provinces, cities,
municipalities and barangays.
B. Referendum or initiative affecting a resolution or ordinance passed by the
legislative assembly of a province or city:
1. The petition must be signed by at least 10% of the registered voters in the
province or city;
2. of which every legislative district must be represented by at least 3% of
the registered voters therein;
3. Provided, however, that if the province or city is composed only of 1
legislative district, then at least each municipality in a province or each
barangay in a city should be represented by at least 3% of the registered

voters therein. Referendum or initiative on an ordinance passed in a

municipality: petition must be signed by at least 10% of the registered
voters in the municipality, of which every barangay is represented by at
least 3% of the registered voters therein.
C. Referendum or initiative on a barangay resolution or ordinance: must be
signed by at least 10% of the registered voters in said barangay.
IV.
A.

B.
C.

D.
E.

Local Initiative Procedure (LGC, Sec. 122)

Number of voters who should file petition with Sanggunianconcerned
(Regional Assembly in cases of Autonomous Regions, Sec. 13, R.A. 6735)
1. Autonomous Regions - at least 2000 registered voters (Sec. 13, R.A. 6735)
2. Provinces and cities - at least 1000 registered voters
3. Municipality - at least 100
4. Barangay - at least 50
Sanggunianconcerned has 30 days to act on the petition. If the
Sangguniandoes not take any favorable action, the proponents may invoke
the power of initiative, giving notice to Sanggunian.
Proponents will have the following number of days to collect required number
of signatures
1. Provinces and cities - 90 days
2. Municipalities - 60 days
3. Barangays - 30 days
Signing of petition
Date for initiative set by Comelec if required number of signatures has been
obtained.

V.

Effectivity of Local Propositions (LGC, Sec. 123)

A. If the proposition is approved by a majority of the votes cast, it shall take
effect 15 days after certification by the COMELEC.
B. If it fails to obtain required number of votes, it is considered defeated.

VI.

Limitations on Initiatives (LGC, Sec. 124)

A. The power of local initiative shall not be exercised more than once a year.
B. Initiative shall extend only to subjects or matters which are within the legal
powers of the local legislative bodies to enact.
C. If at any time before the initiative is held, the local legislative body shall
adopt in totothe proposition presented, the initiative shall be cancelled.
However, those against such action may, if they so desire, apply for initiative
in the manner herein provided.

VII.

Limitations Upon Local Legislative Bodies (LGC, Sec. 125)

A. Any proposition or ordinance or resolution approved through the system of

initiative and referendum as herein provided shall:
1. Not be repealed, modified or amended, by the local legislative body
concerned within 6 months from the date therefrom, and;
2. May be amended, modified or repealed by the local legislative body within
3 years by a vote of 3/4 of all its members.
3. For barangays, the applicable period is 18 months.
VIII.

Local Referendum(LGC, Sec. 126)

A. Any local legislative body may submit to the registered voters of
autonomous region, provinces, cities, municipalities and barangays for the
approval or rejection, any ordinance or resolution duly enacted or
approved.
B. A local referendum shall be held under the control and direction of the
COMELEC within 60 days in case of provinces and cities, 45 days in case of
municipalities and 30 days in case of barangays. The COMELEC shall
certify and proclaim the results of the said referendum.

IX.

Authority of Courts(LGC, Sec. 127)

Courts are not precluded from declaring null and void any proposition
approved for violation of the Constitution or want of capacity of the local
legislative body to enact the said measure.

X.

Jurisprudence
A. Garcia v. COMELEC 237 SCRA 279 (1994) A resolution may be the
subject of an initiative or referendum.
Facts: The Sangguniang Bayan (SB) ngMorong, Bataan passed Resolution No.
10 wherein agreed to the inclusion of the municipality of Morong as part of
the Subic Special Economic Zone in accordance with RA 7227. Private citizen
Enrique Garcia and friends filed a petition with the SB to annul the said
resolution. When their petition went unheeded, Garcia resorted to the power
of initiative under the LGC of 1991. The COMELEC however denied the
petition for local initiative on the ground that under the LGC of 1991 the
subject of local initiative refers only to an ordinance and not a resolution.
Issue: Whether or not COMELEC is correct.
Held: No.
1) Sec. 32 of Article VI of the Constitution says that initiative and referendum
is a system wherein the people can directly propose and enact laws or
approve or reject any act or law. The word act makes it clear that
resolutions are also included initiatives.
2) RA 6735 defines 3 system of initiative, one of them being initiative on local
legislation which included, among others, resolution.
3) In the LGC itself, Section 124 says, Initiatives shall extend only to subjects
or matters which are within the legal powers of the Sanggunian to enact.
Definitely, the scope of Sanggunians powers includes resolutions which make
them covered under initiatives.
B. SBMA v. COMELEC 262 SCRA 492 (1996)
An Initiative is power of the people to propose bills and laws, and to enact or
reject them at the polls independent of the legislative assembly.
A
Referendum is the right reserved to the people to adopt or reject any act or
measure which has been passed by a legislative body and which in most
cases would without action on the part of electors become law. These lawmaking powers belong to the people and the COMELEC only
exercises administration and supervision of the process. Hence,
COMELEC cannot control or change the substance or the content of
the legislation. COMELEC should have prepared for an initiative, not
a referendum.