THE LOCAL GOVERNMENT CODE OF 1991 ANNOTATED Fifth Edition By RUFUS B. RODRIGUEZ A.B. (DLSU), M.A. (XU), LL.B. (UP), LL.M, (Columbia) Former Vice-Governor and Senior Board Member, =" _ Province of Misamis Oriental Former Commissioner, Bureau of Immigration; Former Dean, San Sebastian College of Law; LLM. (Harlan Fiske Stone Honore), Columbia Law School, New York City (1995); Certificate (With Honors), Parker School of Foreign & Comparative Law, Célumbia University, New York City (1995); Certificate, Academy on American & International Law, Dallas, Texas (1998); M.A. Beonomies (With High Distinetion) Xavier University, (1984); Lith Place (86%), 1981 Bar Exams; ‘7th in Rank, LL.B. (Member, Order of the Purple Feather Honor Society), University of the Philippines (1980), AB Economies (Summa Cum Laude), De La Salle University (1975); High School (Valedictorian), Xavier University (1971); Grade School (Valedictorian), Xavier University (1967) Published & Distributed by REX Book Store £856 Nicanor Reyes, Sr. St. Tel Nos, 796-05-67 + 735-13-64 1977 GM, Recto Avenue Tel. Nos. 795-5527 + 735-5534 Mania Philippines \wwnw.rexpublishing.com.phPhilippine Copyright, 1984, 1991, 1998, 1995, 2003 ee ae B. RODRIG ISBN 978-971-23-3792-5 No portion of this book may be copied or repro- duced in books, pamphlets, outlines or notes, whether printed, mimeographed, typewritten, copied in differ- ent electronic devices or in any other form, for distri- bution or sale, without the written permission of the author except brief passages in books, articles, re- views, legal papers, and judicial or other official pro- ceedings with proper citation. Any copy of this book without the corresponding number and the signature of the author on this page either proceeds from an illegitimate source or is in possession of one who has no authority to dispose of the same, ALL RIGHTS RESERVED BY THE AUTHOR Ne 8135 = hw wo = Reprinted: June 2016 25 9 Frasrizisszs Printed by eeeava Zantipets ha co "2m Me BONBON Lan s0 O08 LA ea a = ete ie Dedicated to Papa, Atty. Maximo G. Rodriguez, Sr, former board member and provincial fiscal of Misamis Oriental, who served his constituents well and faithfully. itiPREFACE TO THE FIRST EDITION I was introduced to Local Government in 1976 when I was a freshman at the U.P. College of Law. Teaching the subject was Pro- fessor Pacifico A. Agabin who gave us a frightening long list of cases to be studied In 1979, together with my classmate Jesus P. Casila, we pre- pered a Handbook on Local Governments, which contained provi- sions of law, notes and cases on Local Governments. This Handbook was printed and published in the same year and has sold about 2,000 copies. I was a fourth year law student in January, 1980 when elec- tions for local officials were announced. Having been drafted to run for board member of Misamis Oriental, I requested my professor at UP. to excuse my absence from January 5, 1980, the start of the campaign up to January 30, 1980, the date of the elections. Luckily, they agreed. And I was off for the campaign. The result of the local elections came as a surprise as I topped the winners in the provincial board. On February 1, 1980, I was back at the U.P. College of Law to finish my last semester. In March, 1980, I came home to Misamis Oriental, was inducted, and began to serve my six-year term of office. I was reintroduced to Local Governments, this time not only in theory but also in actual practice. The laws on Local Governments were so numerous, separate and confusing, that early this year, the Batasang Pambansa enacted the Local Government Code as mandated by the 1973 Constitution. This book is written in order to guide not only the local gov- ernment officials in provinces, cities, municipalities and barangays, as well as students taking up courses on local governments and practicing lawyers, but also the ordinary citizens who may find this book of help in the protection of their rights and enhancement of their welfare. In the preparation of this book, I am specially thankful to As- semblyman and Minister of State for Local Governments, AntonioR. Tupaz, who gave me his personal copy of the Code the very day it came out of the Batasan Press, and who encouraged me to write a book on it. ‘ I also wish to thank Ambassador Eduardo M. Conjuangco, Jn, who assisted me in the production of this book; and also to UCPB Vice President Narciso “Chit” Pineda who helped me in the prepa- ration of this book. I would also like to thank Assemblyman Concordio C. Diel, Governor Fernando B. Pacana, Jr, Kagawads Constantino G. Jaraula, Vicente L. dela Lara, Jr., Alfredo Q. Tan, Narsica E. Pelaez, Teddy S. Cabeltes, Jovencio R. Roa and Ana Lucia 8. Kho of Misamis Oriental, who assisted and encouraged me to write this book. Also, I wish to express my gratitude to Regional Director Juliano Z. Barcinas, Assistant Regional Director Romulo G. Ventenilla and Atty. Rene K. Burdeos of the Ministry of Local Gov. erments, Region X who had supplied me with the relevant laws and decrees on local governments. In the preparation of this book, I am also very thankful for the support given by my co-aiithors Atty, Jesus P. Casila, Atty. Proculo Sarmen, Atty. Mario Hisular, Atty. Edwin Catacutan, and Atty. Godofredo de Guzman. RUFUS B. RODRIGUEZ Misamis Oriental September 13, 1984PREFACE TO THE SECOND EDITION The copies of the First Edition having been sold out, the pub- ication of this edition becomes necessary because of its continuous demand. It is hoped that this book will continue to guide not only our local government officials as well as law students taking up local governments or public corporations and practicing lawyers, but also our enlightened citizenry. RUFUS B. RODRIGUEZ Makati, Metro Manila October 1, 1990PREFACE TO THE THIRD EDITION On October 10, 1991, Republic Act No. 7160 otherwise known as the “Local Government Code of 1991” was signed into law and became effective ou January 1, 1992. ‘This new law repealed B.P. Blg. 337, otherwise known as the “Local Government Code” and other previous statutes, executive orders, presidential decrees and issuances dealing on local govern- ments. R.A. 7160 hopes to usher in a new era of genuine and mean- ingful local autonomy to enable territorial and political subdivisions of the State to attain their fullest.development as self-reliant com- munities and make them more effective partners in the attainment of national goals. % This book aims to serve law professors and law students as a textbook on the course Local Governments or Public Corporations by presenting the legal provisions of the Code itself followed by brief comments by the author and then digests of leading Supreme Court cases on the subject. ‘This will likewise be a handy reference material to all elective and appointive local officials and employees to guide them in their actions. RUFUS B. RODRIGUEZ March 15, 1993 ManilaPREFACE TO THE FOURTH EDITION In view of the numerous cases decided and promulgated by the Supreme Court after the effectivity of the Local Government Code of 1991, I decided to come up with a fourth edition’ of this book. For a better appreciation, the significant portions of the Court's pronouncements in the cases of Aguinalda v. Santos (212 SCRA 768) on removal, Flores v. Drilon (223 SCRA 568) on the appointment of elective officials to another public office, Bunye v. Escareal (226 SCRA 332) on preventive suspension, Garcia v. COMELEC (227 SCRA 100) on recall, Galarosa v. Valencia (227 SCRA 728) on the hold-over doctrine and Magtajas v. Pryce (234 SCRA 255) on gam- bling, have been extensively included, To Grace, Luz and Nonoy, my gratitude. RUFUS B. RODRIGUEZ October 15, 1995 ManilaPREFACE TO THE FIFTH EDITION This edition updates the previous one by including all Supreme Court cases dealing with local governments up to September, 2002. It now provides a one sentence ruling before every case digest presented so that it will properly introduce the case digest to the reader. I thank Atty. Alvin Saldafia and Ms. Janice dela Cruz for their help in coming out with this book. RUFUS B. RODRIGUEZ March 27, 2003 ManilaNOapeowe 10, i. 12, 13. 14. 16. TABLE OF CONTENTS | INTRODUCTION Political Law, defined Case: People v. Perfecto, 43 Phil. 397 Political law, its subdivisions Corporation defined Classes of Corporations ... Public Corporation, defined Private Corporation, defined Public and Private Corporations, distinguished Case: Asuncion v, Yriarte, 28 Phil. 67. Public Corporations, classes Municipal Corporation, defined . Municipal Corporation, elements Local Government, defined Local Government, its dual personality Local Government, as an agency of the State Cases: Coyle v. Gray, 30 Atlantic 728 Aguado v. City of Manila, 9 Phil. 513 Vilas v. City of Manila, 42 Phil. 936... Municipality of Catbalogan v. Director of Lands, 17 Phil. 216. Local Governments, powers and functions a. Sources of Power of Local Governments. b. Classification of Local Government Powers ¢. Execution of Municipal Powers .. d. Decided Case... Case: Rabuco v. Villegas, 55 SCRA 656... Local Governments, rules regarding their properties a. Introduction : b. Kinds of Properties of Local Government Units © Alionation of the Properties of Local Government Units . 4. Properties Intended for Public f£ Decided Case NOOO RRO ww IORI Ho16. Case: Province of Zamboanga Del Norte v. City of Zamboanga, 22 SCRA 133 z Decided Case tty of Manila v. Intermediate Arete Court, 179 SCRA 428 bh. Other Clasifiation hased on Mode of Acquisition . i. Properties for Public Use not Subject to Levy or Execution Local Government, Types .. Case: 17. Local Governments, Extent of Legislative Control 18. Local Governments, History... i a. The Barangays b. Spanish Conquest and Centraliam Local Governments During the First Philippine Republi 4. Local Governments During the American Regime e, The Commonwealth and Centralism , ; £, Local Governments under the Republic g. Local Governments at present 19. Local Governments, 1987 Constitutional Provisions .. Il SALIENT FEATURES OF THE LOCAL GOVERNMENT CODE Ill LOCAL GOVERNMENT CODE OF 1991 BOOK | GENERAL PROVISIONS TITLE ONE. — BASIC PRINCIPLES Chapter 1. — THE CODE: POLICY AND APPLICATION Section 1. Title Section 2. Declaration of Policy Section 3. Operative Principles of Decentralization. Section 4. Scope of Application. Section 5. Rules of Interpretation Section 6. Authority to Create Local Government Units Chapter 2. — GENERAL POWERS AND ATTRIBUTES OF LOCAL GOVERNMENT UNITS ion and Conversion... xii aT 38 42 42 SeeSection 9, Abolition of Local Government Units. 48 Section 10. Plebiscite Requirement........ 48 Section 11, Selection and Transfer of Local Site, Offices, and Facilities 50 Section 12. Government Centers.. 51 Section 13. Naming of Local Government Units and Public Places, Streets and Structures semen. 51 Section 14. Beginning of Corporate Existence 53 Section 16. Political and Corporate Nature of Local Government Units wen... 55 Section 16. General Welfare 56 Section 17. Basic Services and Facilities 67 Section 18. Power to Generate and Apply Resuurtes.. 5 Section 19. Eminent Domain. 15 Section 20. Reclassification of Lands... 82 Section 21. Closure and Opening of Roads 86 Section 22. Corporate Powers 92 Section 23. Authority to Negotiate and Secure Grants 104 Section 24. Liability for Damages. 105 Chapter 3, — INTERGOVERNMENTAL RELATIONS Article One. — National Government and Local Government Units Section 25. National Supervision over Local Government Units i 5 no Section 26. Duty of National Government Agencies in the Maintenance of Ecological Balance 123 Seetion 27. Prior Consultations Required 124 Article Two. — Relations with the Philippine National Police Section 28. Power of Local Chief Executives over the Units of the Philippine National Police . 125 Article Three. — Inter-Local Government Relations Section 29. Provincial Relations with Component Cities and Municipalities 126 Section 30. Review of Executive Orders . 126 Secticn 31. Submission of Municipal Questions to the Provincial Legal Officer or Prosecutor 127 Section 32. City and Municipal Supervision over their Respective Barangay: i 127 Section 33. Cooperative Undertakings Among Local Government Units ba 127Chapter 4. — RELATIONS WITH PEOPLE'S AND NON-GOVERNMENTAL ORGANIZATIONS Section 34. Role of People’s and Non-governmental Organizations . > Section 35. Linkages with People’s and Non-governmental Organizations... Section 36. Assistance to People's and Non-governmental Organization S Chapter 5. — LOCAL PREQUALIFICATION, BIDS AND AWARDS COMMITTEE Section 37. Local Prequalification, Bids and Awards Committee (Local PBAC) Section 38. Local Technical Commit TITLE TWO, — ELECTIVE OFFICIALS Chapter 1. — QUALIFICATIONS AND ELECTIONS Section 39. Qualifications Section 40. Disqualifications Section 41. Manner of Election . Section 42. Date of Election Section 43. Term of Office Chapter 2. — VACANCIES AND SUCCESSION Section 44. Permanent Vacancies in the Offices of the Governor, Vice-Governor, Mayor, and Vice-Mayor .. Section 45. Permanent Vacancies in the Sanggunian Section 46. Temporary Vacancy in the Office of the Local Chief Executive .. i Section 47. Approval of Leaves of Absence Chapter 3. — LOCAL LEGISLATION Section 48. Local Legislative Power .. Section 49. Presiding Officer Section 50. Internal Rules of Procedure é Section 51. Full Disclosure of Financial and Business Interest of Sanggunian Members. Section 52, Sessions Section 53, Quorum. : Section 54. Approval of Ordinances Section 55. Veto Power of the Local Chief Executive xiv 128 128 128 128 129 130 143, 150 151 161 159 162 166 168 169 173 175 176 178 180 181 182Section 56. Review of Component City and Municipal Ordinances or Resolutions by the Sangguniang Panlalawigan Section 57. Review of Barangay Ordinances by the Sangguniang Panlungsod or Sangguniang Bayan Section 58. Enforcement of Disapproved Ordinances or Resolutions. Section 59. Effectivity of Ordinances or Resolutions. Chapter 4. — DISCIPLINARY ACTIONS Seccion 60, Grounds for Disciplinary Actions Section 61. Form and Filing of Administrative Complaint Section 62, Notice of Hearing... Section 63. Preventive Suspension Section 64. Salary of Respondent Pending Suspension Section 65. Rights of Respondent. Section 66. Form and Notice of Decision Section 67. Administrative Appeals Section 68. Execution Pending Appeal Chapter 5.— RECALL Section 69. By Whom Exercised Section 70. Initiation of the Recall Process Section 71. Election on Recall Section 72. Effectivity of Recall.. Section 73. Prohibition from Resignation Section 74. Limitations on Recall .. Section 75. Expenses Incident to Recall Elections TITLE THREE. — HUMAN RESOURCES AND DEVELOPMENT Section 76. Organizational Structure and Staffing Pattern Section 77. Responsibility for Human Resources and Development. Section 78. Civil Service Law, Rules and Regulations, and Other Related Issuances Secticn 79. Limitation on Appointments Section 80, Public Notice of Vacaney; Personnel Selection Board Section 82, Resignation of Elective Section 83. Grievance Procedure. Section 84. Administrative Discipline 185 185 185 188 192 192 193 195 195 195 200 202 202 206 206 207 207 210 210 210 211 2 au 212 2138 213 214Ce ee eee Officials and Employees Section 86. Administrative Inve: Section 87. Disciplinary Jurisdiction Section 88. Execution Pending Appeal Section 89, Prohibited Business and Pecuniary Interest Section 90. Practice of Profession .. Section 91. Statement of Assets and Liabilities Section 92. Oath of Office Section 93. Partisan Political Activity .. Section 94. Appointment of Elective and Appointive Local Officials; Candidates who Lost in an Blection Section 95. Additional or Double Compensation Section 96, Permission to Leave Station . Section 97. Annual Report TITLE FOUR. — LOCAL SCHOOL BOARDS Section 98. Creation, Composition, and Compensation Section 99. Functions of Local School Boards Section 100. Meeting and Quorum; Budget Section 101, Compensation and Remuneration .. TITLE FIVE. — LOCAL HEALTH BOARDS . Section 102. Creation and Composition Section 103, Meetings and Quorum.. Section 104. Compensation and Remuneration ... Section 105. Direct National Supervision and Control by the Secretary of Health TITLE SIX. — LOCAL DEVELOPMENT COUNCILS Section 106. Local Development Councils... Section 107. Composition of Local Development Councils Section 108, Representation of Non-governmental Organizations Section 109. Functions of Local Development Councils Section 110. Meetings and Quorum Section 111. Executive Committee .. Section 112. Sectoral or Functional Committees Section 113. Secretariat Section 114. Relation-of Local Development Councils to ‘Sanggunian and the Regional Development Council.. Section 115. Budget Information... : 230 231 231 282, 232 233 234 234 234,TITLE SEVEN. — LOCAL PEACE AND ORDER COUNCIL Secrion 116. Organization... TITLE EIGHT. — AUTONOMOUS SPECIAL ECONOMIC ZONES Section 117. Establishment of Autonomous Special Economic Zones... TITLE NINE. — OTHER PROVISIONS APPLICABLE TO LOCAL GOVERNMENT UNITS Chapter 1. — SETTLEMENT OF BOUNDARY DISPUTES Section 118. Jurisdictional Basho for Settlement of Boundary Dispute... Section 119. Appeal .... Chapter 2. — LOCAL INITIATIVE AND. REFERENDUM Section 120. Local Initiative Defined Section 121. Who may Exercise Section 122. Procedure in Local Initiative Section 123. Effectivity of Local Propositions Section 124. Limitations on Local Initiatives Section 125. Limitations upon Sanggunians...... Section 126. Local Referendum Define: Section 127, Authority of Courts BOOK I LOCAL TAXATION AND FISCAL MATTERS TITLE ONE. — LOCAL GOVERNMENT TAXATION Chapter 1. — GENERAL PROVISIONS Section 128. Section 129. Section 130, Fundamental Principles Section 131. Definition of Terms... Section 132, Loral Taxing Authority Section 133. Common Limitations on the Taxing Powers of Local Government Units ... 235 235 235 243 243 250 251 257Chapter 2, — SPECIFIC PROVISIONS ON THE TAXING AND OTHER REVENUE-RAISING POWERS OF LOCAL GOVERNMENT UNITS Article One. — Provinces Section 184, Scope of Taxing Powers . Section 135. Tax on Transfer of Real Property Ownership Section 136. Tax on Business of Printing and Publication Section 137. Franchise Tax... Section 198, Tax on Sand, Gravel and Other Quarry Resources Section 139, Professional Tax Section 140. Amusement Tax Section 141, Annual Fixed Tax for Every Delivery Truck or Van of Manufacturers or Producers, Wholesalers of, Dealers, or Retailers in Certain Products .. Article Two. — Municipalities Section 142. Scope of Taxing Powers Section 143. Tax on Busines: Section 144. Rates of Tax within the Metropolitan ‘Manila Area Section-145. Retirement of Business Section 146. Payment of Business Taxes .. Section 147. Fees and Charges Section 148. Fees for Sealing and Licensing of Weights and Measures Section 149. Fishery Rentals, Fees and Charges Section 150. Situs of the Tax. Article Three. — Cities Section 151, Scope of Taxing Powers .. Article Four. — Barangays Section 152. Scope of Taxing Power: Article Five. — Common Revenue-Raising Powers Séction 153. Service Fees and Charges Section 154. Public Utility Charges Section 155, Toll Fees or Charges Article Six. — Community Tax Section 156. Community Tax. 258 259 259 260 264 266 269 270 270 274 274 274 274 275 275 280 281 287 288 288 288Section 157. Individuals Liable to Community Tas...... Section 158. Juridical Persons Liable to Community Tax Section 159, Exemptions... Section 160, Place of Payment Section 161. Time for Payment; Penalties for Delinquency Section 162. Community Tax Certificate... Section 163. Presentation of Community Tax Certificate on Certain Occasions... . Section 164. Printing of Community and Distribution of Proceeds... Chapter 3. — COLLECTION OF TAXES Section 165. Tax Period and Manner of Payment Section 168, Accrual of Tax Section 167. Time of Payment 5 Section 168. Surcharges and Penalties on Unpaid Taxes, Fees, or Charges ... Section 169. Interests on Other Unpaid Revenues Section 170. Collection of Local Revenues by Treasurer. Section 171. Examination of Books of Accounts and Pertinent Records of Businessmen by Local Treasurer Chapter 4, — CIVIL REMEDIES FOR COLLECTION OF REVENUES ~ Section 172, Application of Chapter . Section 173. Local Government's Lien Section 174. Civil Remedies Section 175: Distraint of Personal Property - Section 176. Levy on Real Property Section 177. Penalty for Failure to Issue and Execute Warrant Section 178, Advertisement and Sale Section 179. Redemption of Property Sol Section 180. Final Deed to Purchaser ... Section 181. Purchase of Property by the Local Government Units for Want of Bidder , Section 182. Resale of Real Estate Taken for Taxes, Fees, or Charges .. Section 183. Collection of Delinquent Taxes, Fees, Charges or Other Revenues Through Judicial Action Section 184, Further Distraint or Levy... Section 185. Personal Property Exempt from Distraint or Levy Chapter 5. — MISCELLANEOUS PROVISIONS Secticn 186. Power to Levy Other Taxes, Fees or Charges .. be 289 289 290 290 290 291 291 292 293 293. 293 293 294 294 294 295 295 295 296 298 299 299 300 301 301 302 302 302 302 303= —=S = = — Section 187, Procedure for Approval and Wifectivity of Tax Ordinances and Revenue Measures; Mandatory Public Hearings Sains Section 188. Publication of Tax Ordinances and Revenue Measures... Syst Section 189. Furnishing of Copies of Tax Ordinances and Revenue Measures .. = Section 190. Attempt to Enforce Void or Suspended Tax Ordinances and Revenue Measures Section 191. Authority of Local Government Adjust Rates of Tax Ordinances .. Section 192. Authority to Grant Tax Exemption Privileges . Section 193. Withdrawal of Tax Exemption Privileges Chapter 6. — TAXPAYER'S: REMEDIES Section 194. Periods of Assessment and Collection ... Section 195. Protest of Assessment i.e... Section 196. Claim for Refund of Tax Credit TITLE TWO. — REAL PROPERTY TAXATION Chapter 1. — GENERAL PROVISIONS Section 197. Section 198, Section 199. Definition of Terms .. Section 200. Administration of the Real Property Tax. Chapter 2. — APPRAISAL AND ASSESSMENT OF REAL PROPERTY Section 201. Appraisal of Real Property Section 202. Declaration of Real Property by the Owner or Administrator A Section 203. Duty of Person Acquiring Real Property or Making Improvement Thereon ... Section 204, Declaration of Real Property by the Assessor .. Section 205. Listing of Real Property in the Assessment Rolls ....... Section 206. Proof of Exemption of Real Property from Taxation... Section 207. Real Property Identification System ... Section 208. Notification of Transfer of Real Property Ownership ...... ees - Section 209. Duty of Registrar of Deeds to Appraise Assessor of Real Property Listed in Registry... 308 308 308 308 309 309 309 310 310 aut att 311 ES B14 314 315 315 315 316 317 317 317po Section 210. Duty of Official Issuing Building Permit or Certificate of Registration of Machinery to ‘Transmit Copy to Assessor Section 211. Duty of Geodetic Engineers to Furnish Copy of Plans to Assessor... Section 212. Preparation of Schedule of Fair Market Value Section 313. Authority of Assessor to Take Evidence Section 314. Amendment of Schedule of Fair Market Values Section 315. Classes of Real Property for Assessment Purposes Section 216, Special Classes of Real Property vsssusoecnn Section 217. Actual Use of Real Property as Basis for Assessment Section 218, Assessment Levels... Section 219. General Revision of Asse: Classification i Section 220. Valuation of Real Property Seccion 221. Date of Effectivity of Assessment or Reassessment .... Section 222. Assessment of Property Subject to Back Taxes. Section 223. Notification of New or Revised Assessment Section 224. Appraisal and Assessment of Machinery Section 225. Depreciation Allowance for Machinery . Chapter 3. — ASSESSMENT APPEALS Section 226. Local Board of Assessment Appeals .. Section 227. Organization, Powers, Duties, and Functions of the Local Board of Assessment Appeals ...... Section 228. Meetings and Expenses of the Local Board of Assessment Appeals, as Section 229. Action by the Local Board of Assessment Appeals . Section 230. Central Board of Assessment Appeals Section 231. Effect of Appeal on the Payment of Real Property Tax... : Chapter 4. — IMPOSITION OF REAL PROPERTY TAX Section 282. Power to Levy Real Property Tax Section 299; Rates of LEVY... Section 234, Exemptions from Real Property Tax... Chapter 5. — SPECIAL LEVIES ON REAL PROPERTY Section 235. Additional Levy on Real Property for the Special Education Fund (SEF) Section 236, Additional Ad Valorem Tax on Idle Lands 318 318 318 321 321 321 322 327 328 329 329 330 331 332 332 332 &&Section 287, Idle Lands, Coverage Section 238, Idle Lands Exempt from Tax Section 239. Listing of Idle Lands by the Assessor Section 240, Special Levy by Local Government Units .. Section 241. Ordinance Imposing a Special Levy. ‘i Section 242. Publication of Proposed Ordinance Imposing a Special Levy..... Section 243. Fixing the Amount of Special Levy ...... Section 244, Taxpayer's Remedies Against Special Levy Section 245, Accrual of Special Levy... Chapter 6. — COLLECTION OF REAL. PROPERTY TAX Section 246, Date of Accrual of Tax Section 247. Collection of Tax Section 248, Assessor to Furnish Local Treasurer with Assessment Roll Section 249. Notice of Time for Section 250. Payment of Real Property ‘Taxes in Installments Section 251. Tax Discount for Advanced Prompt Payment. Section 252. Payment Under Protest. Section 253. Repayment of Excessive Collections Section 254. Notice of Delinquency in the Payment of the Real Property Tax Section 255, Interests on Unpaid Real Property Tax... 2 Section 256. Remedies for the Collection of Real Property Tax .. Section 257. Local Government's Lien Section 258, Levy on Real Property Section 259. Penalty for Failure to Issue and Execute | Warrant Section 260, Advertisement and Sale... Section 261. Redemption of Property Sold Section 262. Final Deed to Purchaser .. Section 263. Purchase of Property by the Local Government Units for Want of Bidder. Section 264, Resale of Real Estate Taken for Taxes, Fees, or Charges Section 265, Further Distraint or Levy Section 266. Collection of Real Property Tax Throws the Courts Section 267. Action Assailing Validity of Tax Sale .. Section 268, Payment of Delinquent Taxes on Property Subject of Controversy Section 269. Treasurer to Certify Delinquencies Remaining Uncollected Section 270, Periods within which to Collect Property Taxes .. ii 335 236 336 336 236 337 337 337 338 338 398 338 338 339 339 340 340 340 341 342 342 342 343 343 344 345, 346 346 346 348 347 347 347 ~~:Chapter 7. — DISPOSITION OF PROCEEDS Section 271. Distribution of Proceeds Section 272. Application of Proceeds of the Additional One Percent SEF Tax... cs Section 273. Proceeds of the Tax on Idle Lands Section 274. Proceeds of Special Levy ... Chapter 8. — SPECIAL PROVISIONS Section 275. General Assessment Revision; Expenses Incident thereto ...... ; N Section 276. Condonation or Reduction of Real Property ‘Tax and Interest ge Section 277. Condonation or Reduction of Tax by the President of the Philippines Section 278. Duty of Registrar of Deeds and Notaries to Assist the Provincial, City or Municipal Assessor Section 279. Insurance Companies to Furnish Information... Section 280. Fees on Court Actions .. , Section 281. Fees in Registration of Papers or Documents oa Sale of Delinquent Real Property to Provinee, City or Municipality... 3 Section 282, Real Property Assessment Notices or Owner's Copies of Tax Declarations to be Exempt from:Postal Charges or Fees ... Section 283. Sale and Forfeiture Before Effectivity of Code... lie TITLE THREE. — SHARES OF LOCAL GOVERNMENT UNITS IN THE PROCEEDS OF NATIONAL TAXES Chapter 1. — ALLOTMENT OF INTERNAL REVENUE Secticn 284. Allotment of Internal Revenue Taxes Section 285. Allocation to Local Government Units Section 286. Automatic Release of Shares Section 287. Local Development Projects Section 288. Rules and Regulations... Chapter 2. — SHARE OF LOCAL GOVERNMENT UNITS IN THE NATIONAL WEALTH Section 289. Share in the Proceeds from the Development and Utilization of the National Wealth ........... Section 290. Amount of Share of Local Government Units xxiii 349 350 350 350 351 351 351 361 351 352 352 852 352 B56 357 358 358 359 359Section Share of the Local Governments ‘rom any Ge ment Agency or Government-Owned or Co Corporation Section Alloc= of Shares ... Section Remi:cance of the Share of Lo« G ament Units Section _Deveiopment and Livelihood Projects TITLE FOUR. — CREDIT FINANCING Section Score... Section General Polic Section Loans, Credits, and Other Forms of ebtecaess of Local Government Units Section De/.rred-Payment and Other Financial Schemes Section Bonds and Other Long-Term Securities Section _Inter-Local Government Loans, Grants, ar ubsidies Section Loans from Funds Secured by the National G_ ament from Foreign Source: Section Financing; Construction, Maintenance, ©) sion, and Management of Infrastructure Project or Private Sector Section Re-aedies and .etions, TITLE FIVE. — LOCAL FISCAL ADMINISTRATION Chapter 1. — GENERAL PROVISIONS, Sectio Scope... Sectior _». Fundamental Principles Section. Definition of Terms Chapter 2. — LOCAL AND OTHER SPECIAL FUNDS Article One. — Receipts, Safekeeping and Disposition of Local Funds Sectior 307 Remittance of Government Monies to the Seetio. 08. Local Funds. Sectio’ 19. Special Funds..... . Sectio 10. Seperation of Books and Dep Sectior J11. Depository Accounts Section 312. Sevaration of Personal Money Som Pablie Funds a ory Accounts, xxiv 359 360 360 361 361 361 361 362 262 363 363 364 368 369 369 370 372 372 373 373 378 373Section 313. Special Accounts to be Maintained in the General Fund... Chapter 3. — BUDGETING Article One. — Local Government Budgets Section 314. Form and Content Section 315. Submission of Detailed Statements of Income and Expenditures, Section 316. Local Finance Committee ... Section 317. Submission of Budget Proposals by Heads of Departments or Offices Section 318. Preparation of the Budget by the Local Chief Executive....... Section 319. Legislative Authorization of the Budget . Section 320. Bffectivity of Budgets ... Section 21. Changes in the Annual Budget ..... Section 322. Reversion of Unexpended Balances of Appropriations, Continuing Appropriations Section 323. Failure to Enact the Annual Appropriation. Section 324. Budgetary Requirements e Section 325. General Limitations . Section 326. Review of Appropriation Ordinances of Highly Urbanized Cities, Independent Component Cities, and Municipalities within the Metropolitan Manila Area... Section 327. Review of Appropriation Ordinances of Component Cities and Municipalities... Section 328. Duration of Appropriation Article Two. — Barangay Budgets Section 329. Barangay Funds.. Section 330. Submission of Detailed Statements of Income and Expenditures for the Barangay Budgets Section 331, Preparation of the Barangay Budget Section 332, Effectivity of Barangay Budgets. Section 333. Review of the Barangay Budget Section 334. Barangay Financial Procedures . Chapter 4. — EXPENDITURES, DISBURSEMENTS, ACCOUNTING AND ACCOUNTABILITY Section 336. Prohibitions Against Expenditures for Religious or Private Purposes... Section 336. Use of Appropriated Funds and Savings Section 337, Restriction upon Limit of Disbursement 374 374 376 376 377 378 380 380 380 381 382 383 383 385 386 386 386 386 387 387 388 389 389 389Section 838, Prohibitions Against Acvance Payments Section 339. Cash Advances Section 340. Persons -\ccountable for Local Government Funds Section $41, rohibiticas Against Pecuniary interes Section 342. Liability “or Acts Done Upon Direction of Superior Officer, or Upon Participation of Other Department Heads or Officers of Equivalent Rank Section 343. Prohibition Against Expenses for Reception and Entertainment ir Section $44. Certification on and Approval of Vouchers . Section 346. Officials Authorized to Draw Checks in Settlement of Obiigations.. Section 346. Disbursements of Local Funds und Statements of Accounts .... Section 347. Rendition of Accounts Section 348. Auditorial Visitation .. Section 349. Accounting for Revenues .. Section 350. Accounting for Obligations Section 351. General Liability for Unlawful Expenditures Section 352. Posting of the Summary of Income and Expenditures Section 353. The Official Fiscal Year Section 354, Administrative Insurances; Budg=t Opera ions Manual TITLE SIX. — PROPERTY AND SUPPLY MANAGEMENT IN THE LOCAL GOVERNMENT UNITS Section 355. Scope ... Section 366. General Rule in Procurement or Disposal. Section 367. Definition of Terms Section 358. Requirements of Requisition Section 359. Officers Having Authority to Draw Requisitio Section 360. Certification by the Local Budget Officer, Accountant, and Treasurer Section 361. Approval of Requisit Section 362, Call for Bids Section 363. Publication of Call for Bids Section 364. The Committee on Awards Section 365, Rule on Awards Section 366. Procurement without Public Bicding Section 367, Procurement through Personal Canvass Section 368. Emergency Purchase Section 369. Negotiated Purchase.. Section 370. Procurement from Duly Licensed Manufacturer 390 390 391 391 391 392 392 392 393, 393 393 394, 394, 395 395 396 396 396 396 396 397 397 398 398 398 399 400 401Seccion 371. Procurement from Exclusive Philippine Agents or Distributors recone ds 402 Section 872. Procurement from Government Entities 402 Section 373. Annual Procurement Program... 02 Section 274. Establishment of an Archival Syste1 403 Section 375. Primary and Secondary Accountability for Government Property. - 403 Section 376. Responsibility for Proper Use and Care of Government Property ; 404 Section 377. Measure of Liability of Persons Accountable for Government Property i acapuaiimae 404 Section 378, Credit for Loss Oceurring in Transit or Due to Casualty . 404 Section 379, Property Disposal ... 405 Section 380. Negotiated Sale of Property . 406 Section 881. Transfer without Cost 406 Section 382, Tax Exemption Privileges of Local Government Units ... 406 Section 383. Implementing Rules and Regulatio 407 BOOK III LOCAL GOVERNMENT UNITS TITLE ONE. — THE BARANGAY Chapter 1.— ROLE AND CREATION OF THE BARANGAY Section 984, Role of the Barangay... 408 Section 385. Manner of Creation 408 Section 386. Requisites for Creation. 412 Chapter 2.— BARANGAY OFFICIALS AND OFFICES Section 387. Chief Officials and Offices 413 Section 388. Persons in Authority... 414 Chapter 3. — THE PUNONG BARANGAY Secticn 389. Chief Executive: Powers, Duties, and Functions 416 Chapter 4. — THE SANGGUNIANG BARANGAY Section 390. Composition 419 Section 391, Powers, Duties, and Functions 419 SSSection 392. Other duties of Sangguniang Barangay Members Section 393, Benefits of Barangay Officials .. Chapter 5. — APPOINTIVE BARANGAY OFFICIALS Section 394. Barangay Secretary: Appointment, Qualifications, Powers and Duties Section 395, Barangay Treasurer: Appointment, Qualifications, Powers and Duties... Section 396, Other Appointive Officials Chapter 6. — BARANGAY ASSEMBLY Section 397. Composition; Meetings ... Seetion 298. Powers of the Barangay Assembly . Chapter 7. — KATARUNGANG PAMBARANGAY Section 399, Lupong Tagapamayapa Section 400. Oath and Term of Office. Section 401. Vacancies ....... Section 402. Funetions of the Lupon . Section 403. Secretary of the Lupon .. Section 404. Pangkat ng Tagapagkasundo Section 405. Vacancies in the Pangkat Section 406, Character of Office and Service of Lupon Members .... Seotion 407, Legal Advice on Matters Involving Questions of Law Section 408, Subject Matter for Exception Thereto Section 409. Venue ... Section 410. Procedure for Amicable Settlement Section 411. Form of Settlement Section 412. Conciliation ... Section 413. Arbitration aaa Section 414. Proceedings Open to the Publie; Exception Section 415. Appearance of Parties in Person... Section 416. Effect of Amicable Settlement and Arbitration Award Section 417. Executio Section 418, Repudiation ... Section 419. Transmittal of Settlement and Arbitration Award to the Court... iieable Settlement; 425 425 427 428 429 86 496 436 437 437 437 438 498 458 439 450 452. 457 457 473, AT 474 416 416 416 478Section 420. Power to Administer Oath ‘ Section 421. Administration; Rules and Regulations Section 422. Appropriations Chapter 8. — SANGGUNIANG KABATAAN Section 428. Creation and Election. Section 424. Katipunan ng Kabataan Section 425. Meetings of the Katipunan ng Kabataan . Section 426. Powers and Functions of the Sangguniang Kabataan ... ieee Section 427. Meetings of the Sangguniang Kabataan, Section 428. Qualifications Sectiou 429, Term of Office. Section 430. Sangguniang Kabataan Chairman Section 431. Powers and Duties of the Sangguniang Kabataan Chairman ve fr Section 492, Sangguniang Kabataan Secretary Section 433. Sangguniang Kabataan Treasurer .. Section 434, Privileges of Sangguniang Kabataan Officials . Seetion 435, Succession and Filling of Vacancies Chapter 9.— PEDERASYON NG MGA SANGGUNIANG KABATAAN Secticn 436. Pederasyon ng mga Sangguniang Kabataan Secticn 437. Constitution and By-Laws Section 438. Membership in the Sanggunian Chapter 10. — LINGGO NG KABATAAN Section 439. Observance of Linggo ng Kabataan TITLE TWO. — THE MUNICIPALITY Chapter 1. — ROLE AND CREATION OF THE MUNICIPALITY Section 440. Role of the Municipality .. Section 441. Manner of Creation Section 442. Requisites of Creation .. Chapter 2.— MUNICIPAL OFFICIALS IN GENERAL Section 443. Officials of the Municipal Government wocix a 478 479 479 479 479 481 481 482 486 487 487 489 490 490 491 495a a i a ee ee Chapter 3. — OFFICIALS AND OFFICES COMMON TO ALL MUNICIPALITIES Article One. — The Municipal Mayor Section 444, The Chief Executive: Powers, Duties, Functions and Compensation .. i Article Two. — The Vice-Mayor Section 445, Powers, Duties and Compensation. Article Three. — The Sangguniang Bayan Section 446, Composilion. Section 447, Powers, Duties, Funetions and Compensation .. TITLE THREE. — THE CITY Chapter 1. — ROLE AND CREATION OF THE CITY Section 448. Role of the City .. Section 449. Manner of Creation Section 450. Requisites for Creation..... Section 451. Cities, Classified Section 452: Highly Urbanized Citic Section 453, Duty to Declare Highly-Urbanized Status Chapter 2. — CITY OFFICIALS IN GENERAL Section 454. Officials of the City Government. Chapter 8. — OFFICIALS AND OFFICES COMMON TO ALL CITIES Article One. — The City Mayor Section 455. Chief Executive: Powers, Duties and Compensation is Article Two. — The City Vice-Mayor Section 456, Powers, Duties and Compensation .. Article Three. — The Sangguniang Panlungsod Section 457. Composition... 499 514 554 54 556 558 558 560 560 562 SelSection 458. Powers, Duties, Functions and Compensation .. TITLE FOUR. — THE PROVINCE Chapter 1. — ROLE AND CREATION OF THE PROVINCE Section 459. Role of the Province. Sectioa 460. Manner of Creatior Section 461, Requisites for Creation... Section 462. Existing Sub-provinces Chapter 2. — PROVINCIAL OFFICIALS IN GENERAL Section 463. Officials of the Provincial Government Section 464. Residence and Office .... Chapter 3. — OFFICIALS AND OFFICES COMMON TO ALL PROVINCES Article One. — The Provincial Governor Section 485. The Chief Executive: Powers, Duties, Functions and Compensation .. Article Two. — The Provincial Vice-Governor. Section 466. Powers, Duties and Compensation Article Three. — The Sangguniang Panlalawigan Section 467. Composition Section 468. Powers, Duties, ‘unctions and Compensation TITLE FIVE. — APPOINTIVE LOCAL OFFICIALS COMMON TO ALL MUNICIPALITIES, CITIES, AND PROVINCES Article One. — Secretary to the Sanggunian Section 469. Qualifications, Powers and Duties .. Article Two. — The Treasurer Section 470. Appointment, Qualifications, Powers and Duties Section 471. Assistant Treasurer - 584 622 622 622 623 624 625 626 636 637 638 647 650 652Article Three. — The Assessor Section 472, Qualifications, Powers and Duties Section 473. Assistant Assessor ... Article Four. — The Accountant Section 474. Qualifications, Powers and Duties Article Five. — The Budgetary Officer Section 475. Qualification, Powers and Duties .. Article Six. — The Planning and Development Coordinator Section 476. Qualifications, Powers and Duties .... Article Seven. — The Engineer Section 477. Qualifications, Powers and Duties Article Eight. — The Health Officer Section 478. Qualifications, Powers and Duties Article Nine. — The Civil Registrar Section 479, Qualifications, Powers and Duties ... Article Ten. — The Administrator Section 480. Qualifications, Term, Powers and Duties Article Eleven. — The Legal Officer Section 481. Qualifications, Term, Powers and Duties Article Twelve, — The Agriculturist Section 482. Qualifications, Powers and Duties Article Thirteen. — The Social Welfare and Development Officer Section 483. Qualifications, Powers and Duties ... ee 653 655 655 657 662 665 672 eraArticle Fourteen. — The Environment and Natural Resources Officer Section 484. Qualifications, Powers and Duties ... Article Fifteen, — The Architect Section 485, Qualifications, Powers and Duties Article Sixteen. — The Informations Officer Section 486. Qualifications, Powers and Duties Article Seventeen. — The Cooperatives Officer Section 487. Qualifications, Powers and Duties .. Article Eighteen. — The Population Officer Section 488. Qualifications, Powers and Duties Article Nineteen. — The Veterinarian Secticn 489. Qualifications, Powers and Duties .. Article Twenty. — The General Services Officer Section 490. Qualifications, Powers and Duties..... TITLE SIX. — LEAGUES OF LOCAL GOVERNMENT UNITS AND ELECTIVE OFFICIALS Chapter 1. — LEAGUES OF LOCAL GOVERNMENT UNITS Article One. — Liga ng mga Barangay Section 491. Purpose of Organizatio - Section 492, Representation, Chapters, National Liga Section 493. Organization... an Section 494, Ex-Officio Membership in Sanggunians . Section 495. Powers, Functions and Duties of the Liga ng mga Barangay er eee Article Two. — League of Municipalities Section 496, Purpose of Organization. Section 497. Representation 876 678 680 682 684 685 687 690 690 691 697 700 701 701Section 498. Powers, Functions and Duties of the League of Municipalities .. Article Three. — League of Cities Section 499, Purpose of Organization. Section 500. Representation a Section 501. Powers, Functions and Duties of the League of Cities Article Four. — League of Provinces Section 502. Purpose of Organization Section 503, Representation... Section 504. Powers, Functions and Duties of the League of Provinces Article Five. — Provisions Common to All Leagues Section 505. Funding Son Section 506. Organizational Structure Section 507. Constitution and By-Laws of the Liga and the Leagues.. Chapter 2. — LEAGUES AND FEDERATIONS OF LOCAL ELECTIVE OFFICIALS Section 508, Organization Section 509, Constitution and By-I Section 510. Funding BOOK IV MISCELLANEOUS AND FINAL PROVISIONS TITLE ONE. — PENAL PROVISIONS Section 511. Posting and Publication of Ordinances with Penal Sanctions... Section 512. Withholding of Benefits Accorded to Barangay Officials .. 5 Section 613. Failure to Post and Publish the Itemized Monthly Collections and Disbursements Section 514. Engaging in Prohibited Business Transactions or Possessing Ilegal Pecuniary Interest Section 515. Refusal or Failure of Any Party or Witness to Appear before the Lupon or Pangkat Section 516. Penalties for Violation of Tax Ordinances 705 705 706 707 707 708 708 709 709 709 m0| Sestion 517. Omission of Property from Assessment or Tax Rolls by Officers and Other Acts .. 5 710 Section 518. Government Agents Delaying Assosement of Real Property and Assessment Appeals... m2 Section 519. Failure to Dispose of Delinquent Real Property at Public Auction......... 711 Section 520. Prohibited Aets Related to the Award of Contracts under the Provisions on Credit Financing... m2 TITLE TWO. — PROVISIONS FOR IMPLEMENTATION Section 521. Mandatory Review every Five Vears 72 Section 522, Insurance Coverage . Se 72 Section 523, Personnel Retirement and/or Benelite n3 Section 524, Inventory of Infrastructure and Other Community Facilities .... 713 Section 525. Records and Properties 713 TITLE THREE. — TRANSITORY PROVISIONS Section 526. Application of this Code to Local Government Units in the Autonomous Regions m4 Section 527. Prior Approval or Clearance on Regular and Recurring Transactions ‘ m4 Section 528. Deconcentration of Requisile Authority and Power ie a m4 Section 529. Tax Ordinances or Revenue Measures m4 Section 530. Local Water Districts... aii 714 Section 531, Debt Relief for Local Government Units 715 Section 532. Elections for the Sangguniang Kabataan a7 Section 583. Formulation of Implementing Rules and Regulations .... cotter 718 TITLE FOUR. — FINAL PROVISIONS Section 534. Repealing Clause ... 720 Section 535. Separability Clause 724 Section 536, Effectivity Clause. 724TABLE OF CASES | A Acebedo Optical Company, Ine. v. CA, 329 SORA 314... 572 Acufia v. Mun. of Ioilo, 2 Phil. 217 .. . 102, 520 Agbayani v. Delen, 145 SCRA 635, 451 | Aguado v. City of Manila, 9 Phil. 51: 6 Aguinaldo v. Santos, 212 SCRA 763 189 Alinsugay v. Cagampang, Jr., 143 SCRA 146 456 Allen y. Province of Tayabas, 38 Phil. 2 58 | Alquizola, Sr. v. Ocol, 313 SCRA 273 ... 418 Alvarez v. Guingona, 252 SCRA 695, 557 Andaya v. RTC, 319 SCRA 696 125 { Asuncion v. Yriarte, 28 Phil. 67 .... 3 B | Bacolod City v. Enriquez, 102 Phil. 49 . 99 Bagatsing v. Ramirez, 74 SCRA 306 613 Balacuit v, CFI of Agusan Del Norte, 163 SCRA 182 601 Banares II v. Balising, 328 SCRA 36... 466, 468 | Barangay Matictic v, Elbinias, 148 SCRA 83 78 Bengzon y. Province of Pangasinan, 62 Phil. 816 107 Bito-Onon v. Fernandez, 360 SCRA 732. 695 Blardony, Jr, v. Coscolluela, Jr., 182 SCRA 825 471 | Boleyley v. Villanueva, 314 SCRA 364 442 Borja, Jr. v. COMELEC, 295 SCRA 157 158 Bunye v. Escareal, 226 SCRA 332 167 | Bunye v. Sandiganbayan, 306 SCRA 663 103 c Cabagnot v. Civil Service Commission, 223 SCRA 59 627 Cabaluna v. Ventura, 47 Phil. 165 ie Se 498 Candido v. Macapagal, 221 SCRA 441 Case v. Board of Health, 24 Phil. 260..... 539 | Casibang v. Aquino, 92 SCRA 642 152 Ceniza v. COMELEC, 95 SCRA 763 359 | aviCereno v. Dictado, 160 SCRA 759 «cee. 156 Chamber of Filipino Retailers v. Villegas, 44 SCRA 406 ......... 6 Chavez v, Public Estates Authority, G.R. No. 133250 367 City Government of San Pablo, Laguna v. Reyes, 805 SCRA 353 ee 260, 286 5 City of Manila v. IAC, 179 SCRA 428 15 City of Manila v. Teotieo, 22 SCRA 267 106 City of Pasig v. COMELEC, 314 SCRA 179 . 49, 411 City of Quezon v. Lexber, Inc., 354 SCRA 493 563 Claudio v. COMELEC, 331 SCRA 388....... 208 Co Kiam v. City of Manila, 69 Phil. 649 612 Constantino x. Desierto, 288 SCRA 654 512 Coquilla v. COMELEC, G.R. No. 151914 ... 141 Cornejo v. Gabriel, 41 Phil. 188 .. 194 Corpus v. VA, 274 SCRA 275 sb 466 Correa v. CFT of Bulacan, 92 SCRA 312 102 Cortes v, Bartolome, 100 SCRA 1 649 Coyle v. Gray, 30 Atlantic 728 5 Cruz v. CA, 153 SCRA 142 413, Cu-Unjieng v. Patstone, 42 247 D David v. COMELEC, 271 SCRA 90 157 De Leon y. Esguerra, 153 SCRA 602 ... 155 De Los Reyes v. Sandiganbayan, 281 SCRA 631 182 Diu v. CA, 251 SCRA 472..... 460, 723 Drilon v. Lim, August 4, 1994 , 305 Dumlzo v. COMELEC, 95 SCRA 392. 133 E Ebol v. Amin, 135 SCRA 438 .. 465 Ermitc-Malate Hotel & Motel Operators Association v. City Mayor of Manila, 20 SCRA 849. 530, 541 Bscarda y, Manalo, 101 SCRA 1... 432 F Farifias v. Barba, 256 SCRA 396 164 Farrales v. Camarista, 327 SCRA 84 449 Faypor: v. Quirino, 96 Phil. 294 135 Felizardo v. CA, 233 SCRA 220 469 Figuertes v. CA, 305 SCRA 206 304, 319 Fortich v. Corona, 298 SCRA 67! Frivaldo v. COMELEC, 257 SCRA 727 137G Gabriel v. Provineial Board of Pampang: Galarosa v. Valencia, 227 SCRA 728 Gallego v. Vera, 73 Phil. 453 . Galuba v, Laureta, 157 SCRA 627 Gamboa y. Aguirre, 310 SCRA 867... Garees v. CA, 162 SORA 504 Graces v. Estenzo, 104 SCRA 510 . Gareia v. COMELEC, 227 SCRA 100. Gareia v. Mojica, 314 SCRA 207 Garcia y, Pajaro, G.R. No. 141149. Garvida v. Sales, Jr., 271 SCRA 767..... Gegare v. CA, 177 SCRA 47 Ginson v. Municipality of Murcia, 158 SCRA 1... Gonzales v. CA, 151 SCRA 289 .. Grego v. COMELEC, 274 SCRA 481... Guzman v. Municipality of Taytay, 65 Phil. 340 H Hagad v. Gozo-Dadole, 251 SCRA 242...... Hagonoy Market Vendor Association v, Municipality of Hagonoy, Bulacan, G.R. No, 137621 Hebron v. Reyes, 104 Phil. 175 Heirs of Fernando Vinzons x. CA, 3 Herrera v. COMELEC, 318 SCRA 336 .. 1 Ignacio y, Banate, Jr., 153 SCRA 546 Iloilo Ice & Cold Storage Co. v. Municipal Council of Tloilo, 24 Phil. 471 Javier v. CA, 232 SCRA 673 Javier y. Harnshaw, 64 Phil. 626 Lacson v. Roque, 92 Phil. 45 Laguna Lake Development Aut sority v. CA, Land Transportation Office v, City of Butuan, 322 SCRA 805 Lapid v. CA, 334 SCRA 74: Ledesma v. CA, 211 SCRA Lim v. CA, G.R. No. 111397... sow 639 698 133 aut 174 722, 307 1 458 638 582 587 661 523 ut 721 603 200 474 574Lina y. Dizon Paflo, G.R. No. 129083 Luque v. Villegas, 30 SCRA 408... M (2 Macasiano v. Diokno, 211 SCRA 464 .. Mactan Cebu International Airport Authority v. Marcos, 261 SCRA 667 Maglalang v. CA, 17: Magtajas v. Pryce Properties Corp., Inc., 284 SORA 255 Malinao v. Reyes, 255 SCRA 616 Malonzo v. Zamora, 323 SCRA 875 Mangubat v. Villegas, 158 SCRA 733 Manila Electric Company v. Province of 306 SCRA 750 Mariano v, COMELEC, 242 SCRA 211 Marquez v. COMELEC, 243 SCRA 538 . Mejia v. Balolong, 81 Phil. 486..... Mendoza v. De'Leon, 33 Phil. 5 Mereado v. Manzano, 307 SCRA 630 .. + Metropolital Manila Development Authority v. Bel-Air Village Association, Inc., 328 SCRA 836 Millare v. Hernando, 151 SCRA 484. Milo v. Salanga, 152 SCRA 113. ‘Moday y. CA, 268 SCRA 586 ‘Mondafto ¥. Silvosa, 97 Phil. 143 Montesclaros v. COMELEC, G.R. No. 152295 . Montoya v. Escayo, 171 SCRA 442. ‘Municipality of Cardona y. Municipality of Binangonan, 34 Phil. 518 Municipality of Catbalogan v. Director of Lands, 17 Phil. 216 Municipality of Daet v. CA, 93 SCRA 503 . Municipality of Jimenez v, Baz, Jr., 265 SCRA 182 Municipality of Moncada v. Cajuigan, 21 Phil. 184... ‘¥ Municipality of Paraiiaque v. V.M. Realty Co. 292 SCRA 678 ... ‘Municipality of San Narciso, Quezon v. Mendez, St 239 SCRA 11 .. N Negros Oriental II Electric Cooperative, Inc. y, Sangguniang Panlungsod of Dumaguete, 155 SCRA 421 169 Nessia v. Fermin, 220 SCRA 615 ° Olivarez v. Sandiganbayan, 248 SCRA 700. wood 66, 178, 124 615 88 338 473 587 196 180 él 261 45 145 54 100 148 379Ormoe Sugar Co., Inc. 22 SCRA 608 .. Ortigas & Co. v, Feati Bank & Trust Co., 94 SCRA 53: Ortigas & Co., Limited Parmership v. Feati Bank and Trust Co., 94 SCRA 533 .. Osea y. Malaya, G.R. No. 139821 Osias v. Ferrer, 159 SCRA 305 ‘Treasurer of Ormoc City, Pp Pablico v. Villapando, G.R. No. 147870 Palafox v. Province of locos Norte, 102 Phil. 1186 Palma v. Fortich, 147 SCRA 397 a Palma v. Graciano, 99 Phil. 72 Pamil v. Teleron, 86 SCRA 413 .. Pandi v, CA, G.R. No. 116850..... Paras v. COMELEC, 264 SCRA 49 Paredes v. Executive Secretary, 128 SCRA 6 . Patalinghug v. CA, 229 SCRA 554... Pelaez v. Auditor General, 15 SCRA 569... Pefiaflor v. Panis, 117 SCRA 968 ... People v. Sion, 277 SCRA 127... People v. Caruneho, Jr., 127 SCRA 1 People v. Cruz, 54 Phil. 24 People v. Fajardo, 104 Phil. 443 People v. Fortes, 223 SCRA 619 People v. Gabriel, 43 Phil. 641 People v. Gozo, 53 SCRA 476.. People v. Pefia, 291 SCRA 606 People v. Solon, 110 Phil. 39 People v. ‘Toledano, 332 SCRA 210 Peregrina v. Panis, 133 SCRA 72 Philippine Basketball Association v. CA, 337 SCRA 358 Philippine Gamefowl Commission v. IAC, 146 SCRA 294 Philippine Transit Ass'n v. City Treasurer of Manila, 83 Phil. 722 ... Physical Therapy Organization of the Philippines v. Municipal Board of Manila, 101 Phil. 114: Pilapil v. CA, 216 SCRA 33 ..... Pimentel, Jr. v. Aguirre, 336 SCRA 201 Planas v. Gil, 67 Phil. 62 .. PLDI y. City of Davao, G.R. No. 143867 Ponsiea v. Ignalaga, 152 SCRA 647 Primicias v. Municipality of Urdaneta, 93 SCRA 46: Procter & Gamble, Phil. v. Municipality of Jagna, 94 SORA 894 Province of Bulacan y. CA, 299 SCRA 44: Province of Camarines Sur v. CA, 222 SCRA 173 al 353, 249 533 63 223 156 531 543, 91 357 3 262 510 550 532 265Province of Zamboanga del Norte v, City of Zamboanga, 22 SCRA 1334 ... a Punsalan v. Mun. Board of the City of Manila, 95 Phil. 46 L Rabueo y, Villegas, 55 SCRA 656 Radia % Review Committee under Executive Order No. 17, 157 SCRA 749 Ramos v. CA, 269 SCRA 34 Ramos v. Lorenzana, Nov. 26, 1987 Reeabo v. COMELEC, 308 SCRA 79: Recreation and Amusement Ass'n. v. City of Manila, 100 Phil. 950 Republic v, CA, 299 SCRA 199 Reyes v. Ferrer, 156 SCRA 314 Rodrigo v. Sandiganbayan, 309 SCRA 661 .. Rodriguez v. City of Manila, 46 Phil. 171 Rodriguez v. COMELEC, 259 SCRA 296 .. Royales v. IAC, 127 SCRA 470 Salalima v. Guingona, 257 SCRA 5: Samson v. Mayor of Bacolod City, 60 SCRA 276 Seng Kee & Co. v, Earnshaw, 56 Phil. 204 .. Spouses Morata v. Spouses Go, 125 SCRA 444... Subic Bay Metropolitan Authority v, COMELEC, 262 SCRA 49: Site Switzer v. Municipality of Cebu, ‘Tano y, Socrates, 278 SORA 154 . Taule v Santos, 200 SCRA 512... Tavora v, Veloso, 117 SCRA 613 .. The City of Cebu v. Dedamo, G.R. No. 142971 ‘The Commission on Audit v. Garcia, G.R, No. 141386. ‘The Municipality of Candijay, Bohol v. CA, 251 SCRA 530... Tobias x. Abalos, 239 SCRA 106 . ‘Torayno, Sr. v. COMELEC, 337 Si (oTorio ¥. Fontanilla, 85 SCRA 599 ‘Torraiba v. Municipality of Sibagat, 147 SCRA 380 ... ‘Tuzon ». CA, 212 SCRA 738 Ty v. Trampe, 250 SCRA 500. li 13 248 10 123 671 154 162 60 620 583 513 187 146 464 197 527 461 240 524 BBA 139 109 492 511 319, 327U ‘U.S. Gaspay, 33 Phil. 96 540 USS. v. Abendan, 24 Phil. 166 .. 538 US. v. Espiritusanto, 23 Phil. 610 37 ‘U.S. v. Pompeya, 31 Phil. 245 58 US. v. Saiaveria, 39 Phil. 102 59. U.S. v. Sumulong, 30 Phil. 38: 279 Urbano v. IAC, 157 SCRA 1 447 Uy v. Contreras, 237 SCRA 167 433, 472 v ‘Vda. De Borromeo y. Pogoy, 126 SCRA 217 454 Victoria v. COMELEC, 229 SCRA 269 161 Vilar v. Paraiso, 96 Phil. 659... 131 Vilas v. City of Manila, 42 Phil. 935 .. 7 Villasis v. Sandiganbayan, G.R. No. 78326 ...... 652 Villegas v. Hiu Chiong Tsai Pao Ho, 86 SCRA 270 .. 509 ‘Villena y, Secretary of Interior, 67 Phil. 451... 4 Viola v. Alunan III, 277 SCRA 409 .. aod Y Yasay y. Flores, G.R, No. 81047 .... 1531 2 INTRODUCTION The strength of free nations resides in the local community. Local institutions are to liberty, what primary schools are to science; they bring il within people's reach, they teach people to use and enjoy it. Without local institutions, a nation may establish a free govern- ment, but it cannot have the spirit of liberty. Transient passions, mo- mentary interests, a chance of circumstances, may create the exter- nal forms of independence; but the despotic tendency which has been repressed into the interior of the social body will, sooner or later, appear on the surface. Alexis de Tocqueville, Democracy in America Before going into a full discussion on the Local Government Code, i: is essential that basic definitions and fundamental princi- ples on the subject be reviewed. Political law, defined. Political law is that branch of public law which deals with the organization and operation of the government organs of the state and defines the relations of the state with the inhabitants of its ter- ritory. (People v. Perfecto, 43 Phil. 887.) Political law, its subdivisions. Political law embraces: (a) (b) {c) (d) Constitutional law; Administrative law; Law of Public Officers; and Law of Publie Corporations.THE LOCAL GOVERNMENT CODE OF 1991 Annotated 3. Corporation defined. A corporation is an artificial being created by operation of law, having the right of succession and the powers, attributes and prop- erties expressly authorized by law or incident to its existence. (Sec. 2, Corporation Code.) 4. Classes of Corporations. Corporations are classified into public and private. Some au- thorities include quasi-public corporations in the classification. 5. Public Corporation, defined. A public corporation is one created by the state either by gen- eral or special act for purposes of administration of local government: or rendering service in the public interest. It is one formed or organized for the government of portion of a state (Sec. 3, Act No. 1459); it is created by the state as its own agency for the accomplishment of parts of its own public works. (Buuiot, Mow. Corp., p. 1.) 6. Private Corporation, defined. Our old Corporation Law defines private corporations as “those formed for some private purpose, benefit, aim or end.” (Sec, 3, Act No. 1459.) 7. Public and Private Corporations, distinguished. Public corporations are established for purposes connected with the administration of civil or local governments; while private cor- porations are created for private aim, gain or benefits of its mem- bers. Public corporations are creations of the state either by general or special act; while private corporations are created by the will of the incorporators with the recognizance of the state Public corporations are involuntary consequence of the legis- lation; while private corporations constitute a voluntary agreement by and among its members. -——INTRODUCTION A. Decided Case 1, The Articles of Incorporation seeking to incorporate a barrio is unlawful for being violative of the Municipal Code. ASUNCION v. YRIARTE, 28 PHIL. 67, 9/24/14, Moreland, J. Facts: This is an action to obtain a writ of mandamus to compel the chief of the division of archives of the Executive Bureau to file certain articles of incorporation. Lower court found in favor of defendant. Held: We are of the opinion that it is the duty of the chief division when articles are presented for registration to determine whether the abjects of the corporation as expressed in the articles are lawful. We do not believe that simply because the articles of incorporation are Perfect in form, he must accept and register a corporation which was organized for some unlawful or immoral purposes, ‘The purpose as stated in the articles of incorporation is “that the object of the corporation is: a) to organize and regulate the man. agement, disposition, administration and control which the barrio Pulo or San Miguel or its inhabitants have over the common property of said inhabitants belonging to the whole barrio as such; and b) to use the natural produets of said property for the advantage of the barrio,” ‘Tae purpose as its appears is to make the barrio a corporation which will become the owner of and have the right of control and adminis. ter any property belonging to the municipality of Pasig found within the limits of the barrio. This is unlawful being contrary ta the provi. sions of the Municipal Code which gives the municipality jurisdiction over the barrios within their respective territories, Judgment AFFIRMED. 8. Public Corporations, classes. wie Coreen: Shik They are: pbk HMI Gre paepoces (a) Quasi-publie corporations, which are created as agencies of the state for narrow and limited purposes without the Powers and liabilities of self-governing corporations, They render public service or si blic wants, (b) Municipal corporations, 9. Municipal Corporation, defined. stat municipal corporation is a “body politic and corporate con- Stituted by the incorporation of the inhabitants for purposes of Io.4 THE LOCAL GOVERNMENT CODE OF 1991 Annotated cal government thereof; 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.” (Diton, Mu. Corp., Vor. 2, pp. 58-59.) The term municipal corporation has gradually given way tothe more recent term, local government, which has a substantially iden- tical definition as that of the former. Municipal corporations and local governments are therefore une and the same entity, 10. Municipal Corporation, elements. a) A legal creation or incorporation; b) A corporate name by which the artificial personality or legal entity is known and in which all corporate acts are done; ©) Inhabitants constituting the population who are invested with the political and corporate power which are executed through duly constituted officers and agents; a) A place or territory within which the Local Civil Govern- ment and corporate functions are exercised. (LAUREL, Cass on Mun. Core., p. 29, citing McQuiti, Mun. Corr... Vou. I, pp. 289-290.) 11. Local Government, defined. ‘The term Local Government refers to a “political subdivision of nation or state which is constituted by law and has substantial control of local affairs.” (UP Law Center Constitution Revision Project, Part II, p. 712, citing Sapy, Iuprovemanr or Local. Govery- MENT AND ADMINISTRATION FOR DaveLopMENT PuR?osE.) 12. Local Government, its dual personality. Local government has a dual personality, namely: 1) public or governmental; and 2) private or corporate In its public or governmental capacity, it is an agent of the state for the government of the territory and the inhabitants within the local government limits. In its private capacity, it acts in a similar category as a business corporation, performing functions not stricily| INTRODUCTION governmental or political. In its governmental character, it exercises by delegation a part of the sovereignty of the state, Examples ofthe first class are: a) establishment and operation of schools; b) adoption of regulations against fire ana diseases; and ©) preservation of the public peace, ete. Examples of the latter class are: a) establishment of markets and slaughter houses; b) operation of telephone system; and c) op- eration of ferry service, ete, Municipal corporations perform twin functions. Firstly, they tions af, nstrumentality of the State in carrying out the fune. Hons of government. Secondly, they act as an agency of the commu- nity in the administration of local affairs. It is in the latter charac- fer that they are a separate entity acting for their own Purposes and patig, subdivision of the State. (Surigao Blectric Co. Ine t Munici- pality of Surigao, 24 SCRA 898.) 13. Local Government, as an agency of the State. A. Decided Cases 1. _A municipal corporation (local government) is merely an agency instituted by the State for the Purpose of carrying out in detail the objects of government, It is essentially a revocable agency. Tt has no vested powers or franchises, It is subject to the control of the legislative, (Coyle v. Gray, 30 Atlantic 728.) COYLE v. GRAY, 30 Atlantic 728 Held: The Act of the Legislature is constitutional. Amunicipal ‘corpo- [autn being merely an agency ofthe Stata, the legislature may change jSinternal government at pleasure. A municipal corporation does not hold property, like waterworks, as a private corporation, $0 as to pre- vent the legislature from modifying the Management thereof at will. There is no diversion of the Property from its original use,3 ‘HE LOCAL GOVERNMENT CODE OF 1991 Annotated 2. The present City of Manila is not liable under the con- tract entered into by its predecessor, the Old Ayuntamiento because it is not its successor and such obligations are not incurred by the present city. AGUADO v. CITY OF MANILA, 9 Phil. 513, 1/9/08, Johnson, J. Facts: Plaintiff Aguado was the successor of Muioz, Mufioz entered into certain contract with Ayuntamiento de Manila for the sale of coal ‘amounting to P3,070.40, and deposited with Ayuntamiento, P1,920 as a guaranty for the fulfillment of the contract. It was admitted that Mujioz had well and truly fulfilled all the terms and requirements of the contract and faithfully discharged the obligation contained. After fulfillment of such obligation, Mufioz made due demand in the man- ner required by law and by the terms of the contract for the payment of coal and recovery of deposit totalling P5,621.40, which sums ‘Ayuntamiento did not pay. In August 1898, Ayuntamiento was forcibly suspended and the Military Government succeéded it, possessing all its properties. In February 1899, Mutioz transferred all his rights and interest to said sum unto plaintiff Aguado, who at various times made due demand for said sum upon Military Government and the present successor City of Manila, which demand was not paid. Plaintiff thereafter commenced this action in the Manila CFI against the City of Manila for the pur- pose of recovering from the city the sum of P5,621.40 with interest and cost. Trial court rendered judgment against defendant for the sum plus interest. Held: The issue in this case is whether or not the present City of Manila is liable under the contracts for the obligation created therein by Ayuntamiento as its successor, and, if it is, whether the plaintiff is entitled to a writ of execution against any of the property of the presont city for the purpose of satisfying the liability. ‘The old Ayuntamiento, as the contracts themselves show, in making the contract did not act as trustee or agent; but in its corpo- rate capacity, subject to the limitations imposed by the law. So that ‘when its principal, the Spanish Government in the Philippines, ceased to have: control over this territory, all its agents including the ‘Ayuntamiento, also ceased to exist. Although the present city govern- iment exercise certain powers which were formerly exercised by the “Ayuntamiento, it is not in law, the successor of the same and cannot bbe charged with the obligations of the latter. The City of Manila, there- fore, is not liable for the obligations created by contracts executed byINTRODUCTION 7 the Ayuntamiento for they were never incurred by the present city, For the reason that the city is not liable upon the contract, no ques- tion as to the right to take out a writ of execution against the prop- erty of said city can arise in the present case. (N.B. This was over- ruled by US Supreme Court, see Vilas v. City of Manila, infra.) 3. The new City of Manila is liable to its creditors for obli- gations ineurred by the old City of Manila. For the mere change of the sovereign authority does not necessarily dissolve the municipal corporation under the former sovereign. VILAS v. CITY OF MANILA, 42 Phil. 935, 4/3/11 Lurton, J. Facts: Before the cession of the Philippines to the United States by the treaty of Paris, Vilas was creditor of the City of Manila. When the City of Manila was incorporated under Act No, 183 of the Philip- pine Commission, he brought an action against the City of Manila to recover the sum due to him. As a matter of defense, it was claimed that the old city of Manila which incurred the indebtedness had been dissolved by the change of sovereignty and that by the incorporation of the new city under Act No. 183, the liability of the old city has al- ready been extinguished. Held: The juristic identity of the corporation has in no wise been af- fected, and in law, the present city is in very legal sense the succes- sor of the old. As such it ia entitled to the property and property rights of the predecessor corporation, and is in law subject to all of its li- abilities. The mere change of the sovereign authority governing a coun- try does not necessarily dissolve the municipal corporation organized under the former sovereign. The argument that by the change of sov- ereignty the old city was extinguished in the same manner as the agent dies upon the death of the principal, loses sight of the dual char- acter of municipal corporations, corporate and governmental. Only such governmental functions as are incompatible with the present sovereignty may be considered suspended. The juristic identity of the corporation is not affected by the change of sovereignty. The City of Manila stands liable to its creditors. 4, A municipality, the pueblo of Catbalogan, as a juridical person, may acquire patrimonial property under its own inde- pendent personality and not as a mere agent of the Central Gov- ernmeént, he14. THE LOCAL GOVERNMENT CODE OF 1991 Annotated MUNICIPALITY OF CATBALOGAN v. DIRECTOR OF LANDS, 17 Phil. 216, 10/17/10 ‘Torres, J. Facts: The Municipal President of the pueblo of Catbalogan applied with the Court of Land Registration asking for the registration of a parcel of land which the court-house occupies, with the said pueblo as absolute owner. The Attorney-General opposed. Held: The question in this case is whether the lot occupied by the court-house of the Municipality of Catbalogan, Samar belongs to the said municipality or is a state land under the control of the Insular Government. Ifa municipality, as a juridical person susceptible of rights and duties, can acquire all kinds of property such as that termed propios or patrimoniales, it undoubtedly merits the designation of owner with respect to the property which may have been awarded to it as its own. ‘The exercise on the part of the municipality of a right of ownership in land vested with the character of eommon (propio) or patrimonial land is very distinct from the administration proceedings or acts ex- ecuted by it, and from the contracts made by the same, inasmuch as, in the exercise of the right of ownership in the property of the exclu- sive ownership of the municipality, this entity has an independent personality of its own, and does not act as a mere agent of the Cen- tral Government; wherefore, the decision rendered in Aguado v. City of Manila is not applicable here. Local Governments, powers and functions. Sources of Power of Local Governments. 1. The 1987’ Constitution; its provisions in local govern- ments; 2. The Local Government Code of 1991; and 3. All existing laws, acts, decrees, executive orders, procla- mations and administrative regulations not inconsistent with the 1987 Constitution and the Local Government Code of 1991. Classification of Local Government Powers. 1. Express powers — those granted in express words. 2. Implied powers — those necessary or fairly implied in or incident-te-the- powers expressly granted,c. INTRODUCTION 9 Inherent powers — those essential to the declared objects and purposes of the cg i imply convenient but indispensable such as: a) to have perpetual succession; b) to sue and be sued; c) to purchase, hold and sell property for the benefit of the municipal corporation: d) to have a common seal; 2) tomake by-laws and ordinanees for the government of the municipality. Legislative and executive powers — a) ordinance to make Jaws; b) ordinance to execute laws. Intramural and extramural powers — a) those exercised within the corporate limits of municipal corporation; lice — Governmental and municipal powers — a) administer the powers of the state and promoting the public welfare within It; b) those for the special benefit and advantage of the urban community. Among the governmental pow- ef are: the power of eminent domain; of taxation, to pro- mote public education; to maintain a firé department or police foree. Among the municipal powers are: eréction of waterworks, gas works, power electric plants, from Which profits may derived by the municipality. Mandatory and discretionary powers — a) those the ex- ercise of which can be required of municipal corporations; b) those which it may perform or not, depending upon its judgment and discretion. Execution of Municipal Powers When the charter or statute specifically prescribes the man- ner by which the certain corporate acts are to be executed and points out the agency or officers who are to execute them, no other method of procedure may be used in the premises. But if the law is silent Satter of exercise. the corporate autharities are necessarily Clothed with discretion in determining the same. All the methods of executing such acts, as may be reasonably inferred, are deemed0 THE LOCAL GOVERNMENT CODE OF 1991 ‘Annotated granted, provided that the action taken is neither arbitrary nor ca- pricious and must be in good faith. Unless restrained by law, 2 municipal corporation has the discretion to select the means and methods of exercising its powers, provided that the means thus se- lected must be reasonable. In making the selection, the common couneil may proceed either by way. of ordinance or resolution. D. Decided Case. 1. RA.3120 is constitutional and is a manifestation of the leg- islature’s right to deal with the state property which includes those held by municipal corporations in its public or governmental capa- city. RABUCO y, VILLEGAS, 55 SCRA 656, 2/28/74 ‘Teehankee, J. Faets: R.A. No. 3120 converted the Malate area, which are reserved as communal property, into disposable or alienable lands of the state. to be placed under the administration ‘and disposal of the LTA, for subdivisions into small lots not exeeeding 120 meters per lot for sale in installments to the tenants or bona fide occupants thereof and ex- pressly prohibited ejectment and demolition of petitioner's homes under See: 2 of the Act. Respondent city officials contended that the Act must be stricken down as unconstitutional for depriving the City of Manila of the lots in question, and providing for their sale without payment of just com- pensation thus constituting deprivation of property without due proc- ess of law. Held: The lots in question are manifestly owned by the city in its pub- lic and governmental capacity and not in its private or propriotary capacity of which it could not be deprived without due process and without just compensation, The Act was intended to implement the social justice policy of the Constitution and the government's program of land for the landless. It is a manifestation of the legislature's right and power to deal with the state property which includes those held by municipal corporation in its public and governmental capacity. ‘Therefore, R.A. 3120 is constitutional. 15. Local Governments, rules regarding their properties. A. Introduction. Art. 423 of the New Civil Code provides:INTRODUCTION ul “The property of provinces, cities, and municipalities is divided into property for public use and patrimonial property. (343)" Art, 424 of the same Code provides: “Property for public use, in the provinces, cities, and munici- palisies, consist of the provincial roads, city streets, municipal streets, the squares, fountains, public waters, promenades, and pub- lic works for public service paid for by said provinces, cities or mu- nicipalities. All other property possessed by any of them is patrimonial and shall be governed by this Code, without prejudice to the provisions of special laws. (344a)” B. Kinds of Properties of Local Government Units. Provinces, cities, municipalities or barangays have two kinds of properties, namely: 1. property for public use; and 2. patrimonial property. Properties for public use consists of: (1) Provincial, city, municipal or barangay roads or streets, squares, fountains, public waters and promenades. These are open for use by everybody; and (2) Public works for public service paid for by said units. Examples are provincial, city, municipal or barangay buildings or water systems. These may not be freely used by everybody. All other properties are patrimonial properties of the units. C. Alienation of the Properties of Local Government Units. 1. Properties for public use cannot be alienated as such and may not be acquired by prescription, (Mun. of Oas v. Roa, 7 Phil. 20.) 2. Patrimonial properties may be alienated and acquired by prescription. (Mun. of Oas v. Roa, supra.) In City of Manila v. Garcia, 19 SCRA 413, squatters entered a piece of land belonging to the City of Manila and later secured per- mits or lease contracts from the city mayor. The land later on was needed for the expansion of the elementary school adjacent to it. =12 ‘THE LOCAL GOVERNMENT CODE OF 1991 Annotated ‘The Supreme Court ruled that the squatters never became ten- ants of the land. The property being a public one, the Manila mayor did not have authority to give permits or execute leases, written or oral with defendants. Said permits or lease contracts are void. In Muyot v, De la Fuente, G.R. No. L-6534, 48 O.G. 4860, it was held that the City of Manila could not lease a portion of a pub- lic sidewalk on Plaza Sta. Cruz, being likewise beyond the commerce of man. In Espiritu v. Municipal Council of Pozzorubio, 102 Phil. 866, the Supreme Court declared: “There is absolutely no question that the town plaza cannot be used for the construction of market stalls, specially of residences, and that such structures constitute a nuisance subject to abatement according to law. Town plazas are properties of public dominion, to be devoted to public use and to be made available to the public in general. They are outside the commerce of man and cannot be dis- posed of or even leased by the municipality to private parties.” In Villanueva v. Castarieda, Jn, 154 SCRA 142, the pronounce- ments in the above cases were cited when the Supreme Court ruled that the place occupied by the stalls forming a talipapa of the ven- dors/petitioners is a public plaza and as such beyond the commerce of man and cannot be the subject of lease or any other contractual undertaking. The removal of the stalls was ordered. D. Properties Intended for Public Use or Service. In the case of Capitulo v. Aquino, 53 O.G. No. 5, 1477, the Su- preme Court ruled that under Art. 424 NCC, it does not matter that the property is not actually devoted for public use or for some pub- lic services. If the property has been intended for such use or serv- ice, and the city has not devoted it to other uses, or adopted any measure which amounted to withdrawal thereof from public use or service, the same remains property for public use. In this case, where the lot was donated to the City of Manila by Sulucan Development exclusively for street purposes and plain- tills Capitulo, et al., occupied said lot and later secured lease con- tracts on said lot from the city mayor, the said occupation and lease contract are illegal because, even if not yet developed and opened for public use, it remains property for public use not subject to ap- propriation.INTRODUCTION 13 5. Withdrawal of Roads or Plazas from Public Use. See comments under Section 21 on Closure and Opening of Roads. FE Decided Case. 1. The 24 lots owned by the Province of Zamboanga in its public and governmental capacity is subject to the control of Con- gress. However, the 26 remaining lots which are patrimonial prop erties must be paid just compensation. PROVINCE OF ZAMBONGA DEL NORTE v. CITY OF ZAMBOANGA, 22 SCRA 1384 3/28/68, Bengzon, J.P., J. Faets: The municipality of Zamboanga used to be the provincial capi- tal of Zamboanga Province. In 1936, Commonwealth Act 39 converted it into a city. Sec. 50 provided that properties which the province shall abandon will be acquired and paid by the City of Zamboanga at a price fixed by the Auditor-General. The properties consisted of 50 lots and some buildings. The city paid P47,000 of the 704,000. ‘However, in 1961, R.A. 3039 amended Sec. 50 providing for the acquisition of the properties “free of charge.” Province filed a suit and prayed for R.A. 3039 to be declared unconstitutional for depriving plaintiff of property without due process of law and just compensa- tion. The CFI declared R.A. 3039 unconstitutional and held the 50 Properties as private properties of the province of Zamboanga. Issue: Whether the 50 properties are public property or private prop- erty of the province. Held: 1. On control by State of Properties of Local Government Units, The principle is: a. Ifthe property is owned by the municipality in its public and governmental capacity, the property is public and Congress has absolute control over it. b. If the property is owned in its private or proprietary ca- pacity, then it is patrimonial and Congress has no abso- Jute control. The municipality cannot be deprived of it without due process and payment of just compensation. 2. Which of Two Norms May Be Used in Classifying the Properties Held. a. Classification Under the Civil Code.14 THE LOCAL GOVERNMENT CODE OF 1991 ‘Annotated Articles 423 and 424, NCC classify property of provinees, cities and municipalities into property for public use and patrimonial prop- erty. Applying this norm, all the 50 lots and buildings thereon, except the two lots used as High School playgrounds, could be considered as patrimonial properties of the former Zamboanga province. Even the capitol site, the hospital and leprosarium sites, and the school sites will be considered patrimonial for they are not for public use. ‘They would fall under the phrase “public works for public serv- ico” for it has been held that under the ejusdem generis rule, such public works must be for free and indiscriminate use by anyone, just like the preceding enumerated properties in the first paragraph of Art. 424. (Cebu City v. NWSA, 107 Phil. 112.) Unlike in the Civil Code classification regarding State proper- ties, properties for public service in the municipalities are not classi- fied as public. b, Classification Under the Law of Municipal Corporations Applying the norm obtaining under the principles constituting the law of Municipal Corporations, all those of the 50 properties in question which are devoted to public service are deemed publie, Un- der this norm, to be considered public it is enough that the property be held and devoted for‘ governmental purposes like local administra- tion, public education, public health, ete. Following this classification, R.A. 3039, which provides that all properties of the former province of Zamboanga and located within the City of Zamboanga are hereby transferred, free of charge, in favor of the said City of Zamboanga, is valid insofar as it affects the lots as capitol sites and its grounds, hospital and leprosarium sites and the high school playground sites totaling 24 lots, since they were held by the former Zamboanga province in its governmental capacity and therefore subject to the absolute control of Congress. But R.A. 3039 cannot be applied to deprive Zamboanga prov- ince of its share in the value of the 26 remaining lots which are patrimonial properties since they are not being utilized for distinetly governmental purposes. 3. Conclusion Reached by the Supreme Court. The Supreme Court applied the latter norm or classification stating: “The controversy here is more along the domains of the law of Municipal Corporations than along that of Civil Law.”INTRODUCTION 6 (Note: The author agrees with the result reached by the deci- sion. However, he finds it unnecessary to distinguish between the two norms discussed by the decision above, It is quite clear from Article 424 that property for public use in the province, cities and municipalities consist of. 1) __provineial, city or municipal roads or streets, ete.; and 2) public works for public service. “Public works for public services,” although not for free and indiscriminate by everyone, are therefore considered as property for Public use. The phrase is placed together in the same paragraph on Properties for public use and distinct from the other paragraph deal. ing oa patrimonial property. And certainly the 24 properties above mentioned, e.g., Capitol lot and building, hospital lot and building ete. are public worke for Public service and, are therefore considered as for public use. Hence, Congress has control over them.) G. Decided Case. 1. Breach of a contractual obligation between the City of Manila and plaintiff, involving property which is patrimonial in charaeter entitles the latter to damages. CITY OF MANILA v. INTERMEDIATE APPELLATE COURT 179 SCRA 428, 11/15/89 Paras, J. Faets: Vivencio Sto. Domingo, deceased husband of plaintiff Irene Sto, Domingo was buried in a lot of the North Cemetery, which lot was leased by the City of Manila to Irene from 1971 to 2021. Irene paid the full rental thereof. In January 1978, the cemetery authorities exhumed and re- ‘moved the remains of Viveneio from the lot which were then placed ina bag and kept in the bodega of the cometery, In November 1978 (All Souls Day), when Irene went to the cem- etery, she was shocked to learn that the remains of her husband were not anymore in the lot, as the same had been rented out to another lessee, Held: Under Philippine laws, the City of Manila is a political body corporate and as such endowed with the faculties of municipal corpo- rations to be exercised by and through its city government in conform.THE LOCAL GOVERNMENT CODE OF 1991 Annotated ity with law, and its proper corporate name, It may sue and be sued, and contract and be contracted with. Its powers are twofold in char- acter; public, governmental or political on one hand, and corporate, private and proprietary on the other. In MeQuiilin on Municipal Corporation, the rule is stated thus: “A municipal corporation proper has’... a public character as regards the state at large insofar as it is its agent in government, and private (so called) insofar as it is to promote local necessities and conveniences for its awn community” (Toro » Fontanilla, 85 SCRA 599 [1978)), In Torio v. Fontanilia, supra, the Court deciared that with re- spect to proprietary functions the settled rule is that a municipal cor- poration can be held liable to third persons ex contractu. (Municipal- ity of Moncada v. Canjuigan, et al., 21 Phil. 184, 1912) or ex delieto, (Mendoza v. de Leon, 33 Phil. 508, 1916.) Under the foregoing considerations and the absence of a special law, the North Cemetery is a patrimonial property of the City of Ma- nila which was created by resolution of the Municipal Board of Au- gust 27, 1903 and January 7, 1904. The administration and govern- ment of the cemetery are under the City of Health Officer (Ibid., See. 3189), the order and police of the cemetery (Ibid., See. 319), the open- ing of graves, niches, or tombs, the exhuming of remains, and the purification of the same (Ibid., Sec. 327) are under the charge and responsibility of the superintendent of the cemetery. ‘The City of Manila furthermore prescribes the procedure and guidelines for the use and dispositions of burial lots and plots within the North Cemetery through Administrative Order No. 5, s. 1975. With the acts of dominion, there is, therefore no doubt that the North Cem- etery is within the class of property which the City of Manila owns in its proprietary or private character. Furthermore, there is no dispute that the burial lot was leased in favor of the private respondents. Hence, obligation arising from contracts have the force of law between the contracting parties, Thus a lease contract executed by the lessor and lessee remains as the law between them. (Henson. v. Intermediate Appellate Court, 148 SCRA ‘11, 1987.) Therefore a breach of contractual provision entitles the other party to damages even if no penalty for such breach is prescribed in the contract. (Boysaw v. Interphii Promotions, Inc., 148 SCRA 636, 1987.) Under the doctrine of respondeat superior (Torio v. Fontanilla, supra), petitioner City of Manila is liable for the tortious act commit- ted by its agents who failed to verify and check the duration of the contract of lease,rt. OO INTRODUCTION Ww H. Other Classification Based on Mode of Acquisition. Froperties of local government units may also be classified as: J) __those acquired by the units by their own funds in their Proprietary capacity. These may be disposed of by the unite as they please. 2) those acquired by the units in its governmental capacity suck as those acquired hy succession or by donation from the State or National Government or from funds received from the State, These are held in trust by these units for the State, for the benefit of ite inhabitants. These cannot be sold by the local government units, - ‘A municipality cannot acquire a lot through prescription since said lot has an owner and the-owner can bring an action to recover Ammen Transportation Co., Inc., 26 SCRA 218.) {n the absence of title deed to any land claimed by the City of Manila as its own, showing that it is acquired with ite private or seperate funds, the presumption is that such land came from the State upon the creation of the municipality. (Salas » Jarencio, 45 SCRA 743.) Regardless of the source or classification of land in the Posses- Sion of a municipality, excepting those acquired with its own funds in its private or corporate capacity, such Property is held in trust for the State for the benefit of its inhabitants, whether it be for gov- ernmental or proprietary Purposes. (Ibid.) L. Properties for Publie Use Not Subject to Levy or Execution. Properties of a municipality, whether real or personal, which are necessary for public use cannot be attached and sold at execu- tion sale to satisfy a money judgment against the municipality, Pub- ie funds are not subject to levy and execution. (Municipality of Makati v. Court of Appeals, 190 SCRA 206) 16. Local Government, Types. ined, ,Dedure municipal corporations — those created or recog: nized by operation of law. 2. Municipal corporations by prescription — exercised their18 ‘THE LOCAL GOVERNMENT CODE OF 1991 Annotated powers from time immemorial with a charter, which is presumed to have been lost or destroyed. 3 _ De facto municipal corporations — where the people have organized themselves, under color of law, into ordinary municipal bodies, and have gone on, year after year, raising taxes, making improvements, and exercising their usual franchises, with their rights dependent quite as much as on acquiescence as on the regu- larity of their origin. ‘The essential requisites of a de facto corporation are: a) a valid law authorizing incorporation; b) an attempt in good faith to organize under it; ©) acolorable compliance with law; @) an assumption of corporate powers. Where the mode of creating a municipal corporation and the conditions under which it may exist are prescribed by a general law, the legislature may properly leave to the courts or to a commission or board the duty of ascertaining the facts and deciding whether the prescribed conditions have been satisfied and proper steps have been taken under the law to bring the municipal corporation into exist- ence. 17. Local Governments, Extent of Legislative Control. 1. Historical view — holds that the municipal corporations have an inherent right to local self-government which cannot be taken away by statute, having regard to the long history of local autonomy enjoyed by towns and cities in the United States and the United Kingdom, the local governments antedating state govern- ments; although it recognizes the fact that the state retains com- plete control of matters of general concern, such as health and sani- tation, and the maintenance of peace and order, in respect of which the municipal corporation acts merely as the state agency or instru- mentality. It maintains that so long as such a corporation exists, it has the right which the state cannot take away, to regulate its in- ternal or local affairs. In the absence of express constitutional pro- visions, the greater weight of authority repudiates the historical view. 2. Legal view — This sanctions the possession by the State of absolute control over local governments, local government beinga INTRODUCTION 19 more creatures of the State. The right of municipal corporations to apver themselves in their purely local affairs will nar be held to be abridged except upon clear expression of the legislative will, 18. Local Governments, History. The cities, municipalities, and provinces of today evolved from the barangays of pre-Spanish times, the pueblos and cabildos of the Spanish colonial ‘days and the townships of the American regime. A. The Barangays, The pre-Spanish barangays were the first Political and social sonsnizations of the Philippines. A barangay wos & settlement of inde £0 100 families and a governmental unit in texte Each was independent from all the others. There was ne central government whatsoever, although confederations of barangays were formed for mutual protection and support. The chief of the barangay was called a datu “an absolute ruler in whose hands were the legislative, executive, and judicial Powers of the government.” Laws were unwritten, and derived largely from customs and traditions. ‘They were formulated by the datu who also acted as judge in cases of disobedience to the law. The Chief exacted tribute of harvest and labor from his subjects, B. Spanish Conquest and Centralism, The lack of unity in the warring barangays made conquest powers the Spaniards Gradually, the datue wore shorn of their wore veane barangays disintegrated as independent city states and The Spaniards organized pueblos (municipalities), cabildos (cit- ““S), and provincias (provinces). The proviness were established “for20 ‘THE LOCAL GOVERNMENT CODE OF 1991 Annotated the convenience of administration and constituted the immediate agencies through which the central government could extend its authority on numerous villages.” In place of the barangay, barrios were established, and the datus were made into cabezas de barangay whose only remaining function was the collection of taxes for the Spanish government. ‘The cabildo was usually organized in fairly urban areas like Manila. It was a municipal corporation endowed with law-making powers and had two ordinary alcaldes, eight regidores (alderman), a registrar, and a constable. ‘The Godernadorcillo headed the pueblo and exercised execu- tive and judicial functions in the locality. He was assisted by an Assessor and a Notary. ‘The province constituted the larger local unit. It was headed by an Alcalde Mayor who was assisted by a chief of police and one lieutenant each for police, for the field, and for the large cattle. Election of local officials was limited to a few by a few. The Gobernadorcillo was elected by an electoral college while the ordi- nary alealdes were elected by house-holders By virtues of the Laws of the Indies and royal decrees passed from time to time, taxes were collected by the local governments for the national government. For their own revenue, they relied on re- sources coming from fisheries, urban property, rent or communal property, billiard halls, theaters, cockfighting, and weights and measures. Spanish colonization, therefore, effected strong centralism and tolled the death knell of indigenous political institutions. The sys- tem of local governments in the Philippines was partly responsible for the many uprisings against the Spaniards. The local institutions degenerated to “a point of decadence and confusion that local offi- cials who (had) not been corrupted (had) become atrophied or un- less.” ‘The need for reforms was recognized too late by the Spaniards. It took three ministers of the colonies to map out a plan of local government through the Maura Law of 1893 authored by Antonio Maura y Montaner who was then Minister of the Colonies. The law attempted to “confer upon the towns and provinces of Luzon and Mindanao a greater measure of autonomy.”INTRODUCTION 2 The Maura Law introduced many reforms affecting the pueblos. | Each town “contributin; posed of a Prosecuting Attorney, an Administra, £27 of Finance, Vicars of the Province, the parish priest of the capi- ‘al, and four prominent residents of the capital elected by the mu- nicipal captains in the province, Even after the enactment of the Maura Law, the centralism characceristic of the Spanish regime continued, Smaller political rewarded fifty percent of the amount collected. The Provincial gov- ernor had disciplinary power over members of the municipal coun- cils. This centralism was characterized in this wise ‘The most striking character is undoubtedly the subardi- nation and even subserviency of the Municipal Tribunal to other authorities... The Maura Law itself closely hedges within a narrow circle of the activities of the Municipal Tribu- 4 political representative of the general government, and, as it were, an arbitrary governor of the Province, C. Locat Governments During the First Philippine Republic. The importance of Jocal governments was recognized by Gen. Emilio Aguinaldo and Apolinsrio Mabini in their program of gov.22 ‘THE LOCAL GOVERNMENT CODE OF 1991 Annotated ernment for the first Philippine Republic, Filipino leaders knew that “if a strong enduring Filipino nation was to be established, it must be able to maintain itself in all emergencies, and the whole politi- cal fabric must be well founded on an efficient system of local gov- ernments.” In his Proclamation of June 18, 1898, General Aguinaldo stated “the urgent necessity of establishing in each town a solid, robust or- ganization, the strongest bulwark of public security and that sole means of serving the union and discipline which are indispensable for the establishment of the Republic, that is, government of the people, for the people, and warding off the internal conflict which might arise.” Mabini saw that it was imperative for every government to interpret the people's will, and reeognized the need of surrounding General Aguinaldo with the best minds from the towns “to the end that, the true necessities of each town being known to them, meas- ures may be adopted to meet the necessities and apply the remedies in accordance with the desire of all.” After the establishment of the dictatorial government, the de- cree of June 18 and 20, 1898, organized the municipalities. Special conimissioners were appointed to supervise the municipalities. Each town had a President who was assisted by a delegate for police and internal order, another for justice and civil registry, and a third for taxes and property, These officers were elected in a meeting by in- habitants of the municipality known for “high character, social po- sition and honorable conduct.” The town President, with the headman of each village within the town and the delegates constituted the Popular Assembly which had the task of enforcing the law. Heads of all the towns in the prov- ince elected the chief and three councilors of the province. The of- ficers of the province supervised the enforcement of instruction from the central government. Municipal and provincial officials were given jurisdiction over criminal and civil case. Decisions of municipal of- ficials were appealable to the Provincial Board. The Malolos Constitution provided a separate article on local government. (Title XI, Article 82.) Local autonomy was made explicit in the introductory portion which stipulated that “the organization and powers of the provincial and municipal assemblies shail be gov- erned by their respective laws.” Article 82 provided for “popular and direct clection being the basis of the organization of said corpora-OT INTRODUCTION 23 Hons,” “publicity of local sessions and budgets, accounts and ordi- ances,” and “determination of their powers in matter of taxes, in order that the provineial and municipal taxation may never be am. tagonistic to the system of local taxation.” Despite the autonomy given to the local government units, however, central intervention in local affairs was retained. This ax, sured “the intervention of the government and in a proper case by the national assembly, in order to prevent the provincial and mee. It was pointed out that “the idea itself was just an instance of they desire for a strong goverment; a government which needed great Powers to give the people benefits they never had before” D. Local Governments During the American Regime. The Americans contribute very little, if at all, to the develop- ment of local autonomy. In fact, national-local relationship reverted to the strong centralism that characterized the Spanish colonial regime. ‘The first local government established during the American regime was the municipality. General Order No. 43, series 1899, provided for a municipal council in each town composed of a Presi. dent and the headmen of the barrios within the town, The couscil [as charged with the maintenance of peace and order, the regula- tion of municipal affairs, and the adoption of ordinances foe the municipality. After the establishment of the towns, the Schurman Commis: sion was instructed to prepare a simple scheme of municipal gov- sible vat) 82 Similar to the old system as to be readily comprehen. sible to the natives, but giving them liberties which they had never enjoyed before.” The Commission's blueprint for town organization Provided for a President to be clected viva voce by resideats of the ‘own with the approval of the Commanding Officer His duty con- sisted in the establishment of a police force, collection of taxes, en- forcement of regulations on market and sanitation, establishment pe schools, and the provision for lighting facilities, Hie wee assisted by the village headmen,24 ‘THE LOCAL GOVERNMENT CODE OF 1991 Annotated The Council was given the function of the conducting prelimi- nary investigation in criminal cases and the determination of prop- erty cases not exceeding $500. Military authorities exercised abso- lute control over the local officials, Even Council ordinances were subject to approval by the American Commanding Officer in the town, who was responsible to the central government. ‘The establishment of civil government affected the pattern of government of local units. President McKinley's “Instruction to the Philippine Commission” of April 7, 1990 made specific mention of local autonomy: ‘The establishment of municipal government in which the natives of the islands, both in the cities and the rural commu- nities, shall be afforded the opportunity to manage their own local affairs to the fullest extent of which they are capable, and subject to the least degree of supervision and control... In the distribution of power among the governments organized by the commission, the presumption is always to be in favor of the smaller subdivision, so that all the powers which can properly be exercised by the municipal government shall be vested in that government .. . so that . . . that central government of the Island . . . shall have no direct administration except in matters of a purely general concern and shall have only such supervision and control over the local government as may be necessary to serve and enforce faithful and efficient adminis- tration by local officials. Pursuant to the President's Instruction, the Philippine Com- mission enacted Act No. 82 providing for the organization and gov- ernment of municipalities and Act No. 83, for the organization of provinces. Under Act No. 82, each town was headed by a President as chief executive and presiding officer of the municipal council. The coun- cil was composed of one representative from each of the barrios. It promulgated ordinances and was charged with the maintenance of peace and order in the locality. The other officials of the town in- cluded a Secretary, a Treasurer, and a Chief of Police. The town re- lied on revenue from real property taxes, rents, profits, tools, mar- kets, slaughterhouses, and tuition fees for intermediate schools. Provincial governments established by Act No. 83 had a Gov- ernor, a Treasurer and a Supervisor (later replaced by a DivisionINTRODUCTION 2 Superintendent of Schools). Until 1907, the Governor was elected by the councilors of organized municipalities within the provinces. Subsequently, he was elected by popular vote. Special laws enacted by the Philippine Commission governed the capital city of Manila and the summer capital of Baguio in the Mountain Province. While President McKinley's “Instructions” recognized local au- tonomy, the various laws passed and the rules for their implemen- tation only served to diminish local autonomy. Control over local affairs were exercised by the national government through its many agencies. The province, for instance, acted as a'mere administrative agent of the national govern meet. “In practice,” commented Joseph Haydea, “it turned out that the most important work of the provin- cial government was the supervision of the governments of munici- palities,” through visitation, investigation, and supervision by pro- vincial officials. ‘The Provincial Board.was also given a considerable amount of control over the municipal councils, whose orders and ordinances it serutinized and might disallow on grounds of illegality. The central government directly supervised local governments through the Executive Bureau, whose task was to see “that provin- cial officials did not exceed or abuse their legal authority.” Likewise, it exercised control over local finance by controlling the budgets of Provinces and regulating loans made from the treasury of the cen- tral government to the localities. This arrangement is a sharp con- trast with the autonomy enjoyed by the states in the American un- ion. It was a virtual carryover of the Spanish system of local gov- ernment in the Philippines. E. The Commonwealth and Centralism. ‘The forms and patterns of local government during the Ameri- can civil administration remained essentially the same during the Commonwealth period. The only notable changes were the transfer of central supervision from the Executive Bureau to the Department of Interior and the creation of more chartered cities. The relation- ship between the national and local governments became increas- ingly parasitic in the sense that the local units became very depend- ent on the national government,THE LOCAL GOVERNMENT CODE 01 Annotated. President Quezon, the central figure of the government dur- ing this period, even argued against autonomy in the cities, hinting that “under the unitary system of government which exists in the Philippines, the national chief executive does and should control all local offices.” Under the Commonwealth, “central supervision . . . not only rapidly increased, but, personally exercised by the chief ex- ecutive to a degree previously unheard of.” F. Local Governments under the Republic. ‘The structure of local governments as established in Act Nos. 82 and 83 remained essentially the same under the 1935 and 1973 Constitutions. The national government was supreme and local gov- ernments were merely its political and administrative subdivisions. Most of the formal and real powers were vested and exercised by the national government. Local units, however, possessed a certain degree of autonomy. The basic law on local governments was con- tained in the various provisions of the Revised Administrative Code. This Code has been amended by several laws, notably: Republic Act No. 2259 (making the positions of mayors, vice-mayors, and coun- cilors in chartered cities elective): Republic Act No. 2370, as amended by Republic Act No. 3590 (The Revised Barrio Charter); Republic Act No. 5185 (The Decentralization Act of 1967.). Cities have sepa- rate charters for their own governance. G. Local Governments at present. On May 12, 1983, Batas Pambansa Blg. 337, otherwise known as the Local Government Code took effect. On Feb. 2, 1987, the 1987 Constitution was ratified and took effect. On October 10, 1991, The Local Government Code of 1991 (R.A. 7160) was signed into law. ‘This Code ordained an authentic and workable local autonomy through the devolution of certain powers from the national govern ment to the local governments. In 1995 there were 75 provinces, 1 sub-provinee, 60 cities, 1,553 municipalities and 40,000 barangays in the country. ‘At present, there are 79 provinces, 113 cities, 1,496 municipali- ties and 41,933 barangays in the country.49. INTRODUCTION Local Governments, 1987 Constitutional Provisions. Sec. 25, Art. II, 1987 Constitution, provides; “The State shall ensure the autonomy of local governments.” Article X, 1987 Constitution provides: LOCAL GOVERNMENT GENERAL PROVISIONS Section 1. The territorial and political subdi- visions of the Republic of the Philippines are the provinces, cities, municipalities, and barangays. There shall be autonomous regions in Muslim Min- danao and the Cordilleras as hereinafter provided. See, 2. The territorial and political subdivi- sions shall enjoy local autonomy. Sec. 3. The Congress shall enact a local govern- ment code which shall provide for a more respon- sive and accountable local government structure instituted through a system of decentralization with effective mechanisms of recall, initiative, and referendum, allocate among the different local gov- ernment units their powers, responsibilities, and resources, and provide for the qualifications, elec- tions, appointment and removal, term, salaries, powers and functions and duties of local officials, and all other matters relating to the organization and operation of the local units. Sec. 4. The President of the Philippines shall exercise general supervision over local govern- ments. Provinces with respect to component cities and municipalities, and cities and municipalities with respect to component barangays shall ensure that the acts of their component units are within the scope of their prescribed powers and functions. Sec, 5. Each local government unit shall have the power to create its own sources of revenues and to levy taxes, fees, and charges subject to such28 THE LOCAL GOVERNMENT CODE OF 1991 Annotated guidelines and limitations as the Congress may pro- vide, consistent with the basic policy of local au- tonomy. Such taxes, fees, and charges shall accrue exclusively to the local governments. See. 6. Local government units shall have ajust share, as determined by law, in the national taxes which shail be automatically released to them. See. 7. Local governments shall be entitled to an equitable shure in the proceeds of the utilization. and development of the national wealth within their respective areas, in the manner provided by law, including sharing the same with the inhabit- ants by way of direct benefits. Sec. 8. The term of office of elective local offi- cials, except barangay officials, which shall be de- termined by law, shall be three years and no such official shall serve for more than three consecutive terms. Voluntary renunciation of the office for any length of time shall not be considered as an inter- ruption in the continuity of his service for the full term for which he was elected. Sec. 9. Legislative bodies of local governments shall have sectoral representation as may be pre- scribed by law. Sec. 10, No province, city, municipality, or barangay may be created, divided, merged, abol- ished, or its boundary substantially altered, except in accordance with a criteria established in the lo- cal government code and subject to approval by a majority of the votes cast in a plebiscite in the po- litical units directly affected. Sec. 11, The Congress may, by law, create spe- cial metropolitan political subdivisions, subject to a plebiscite as set forth in Section 10 hereof. The component cities and municipalities shall retain their basic autonomy and shall be entitled to their own local executives and legislative assemblies. The jurisdiction of the metropolitan authority that will thereby be created shall be limited to basic services requiring coordination. reee INTRODUCTION 29 Sec. 12. Cities that are highly urbanized, as determined by law, and component citice whose Prohibit their voters from voting for pro. Vincial elective officials, shall be independent of the See. 14, The President shall provide for re- gional development councils or other similar bod- AUTONOMOUS REGIONS See. 15. There shall he created autonomous regions in Muslim Mindanao and in the Cordilleras consisting of provinces, cities, municipalities, and HigursPhical areas sharing common and distinctive historical and cultural heritage, economie and so- cial structures, and other relevant characteristicsTHE LOCAL GOVERNMENT CODE OF 1991 Annotated Sec. 18, The Congress shall enact an organic act for each autonomous region with the assistance and participation of the regional consultative com- mission composed of representatives appointed by the President from a list of nominees from multi- sectoral bodies. The organic-act shall define the basic structure of government for the region con- sisting of the executive department and legislative assembly, both of which shall he elective and rep- resentative of the constituent political units. The organic acts shall likewise provide for specific courts with personal, family, and property law ju- risdiction consistent with the provisions of this Constitution and national laws. The creation of the autonomous region shall be effective when approved by majority of the votes cast by the constituent units in a plebiscite called for the purpose, provided that only provinces, cit- ies, and geographic areas voting favorably in such plebiscite shall be included in the autonomous re- gion. Sec, 19. The first Congress elected under this Constitution shall, within eighteen months from the time of organization of both Houses, pass the or- ganic acts for the autonomous regions in Muslim Mindanao and the Cordilleras. Sec. 20. Within its territorial jurisdiction and subject to the provisions of this Constitution and national laws, the organic act of autonomous re- gions shall provide for legislative powers over: (1) Administrative organization; (2) Creation of sources of revenues; (8) Ancestral domain and natural resources; (4) Personal, family, and property relations; (5) Regional urban and rural planning develop- ment (6) Economic, social, and tourism develop- ment;a INTRODUCTION 3t (7) Educational policies; (8) Preservation and development of the cul- tural heritage; and (9) Such other matters as may be authorized by law for the promotion of the general welfare of the people of the region. Sec. 21. The preservation of peace and urder within the regions shall be the responsibility of the local police agencies which shall be organized, maintained, supervised, and utilized in accordance with applicable laws. The defense and security of the regions shall be the responsibility of the Na- tional Government. Salient Features of the Local Government Code of 1991! The Local Government Code is the key to the development of the countryside. The Code will make possible the development of the far flung areas of the country without the necessity of appropriating additional funds. This it will make possible by allocating a substantial portion of the public money to and sharing a broad range of the powers now held by the national government with the local government unite The Code mandates the devolution of certain national govern- ment powers to and the increase of (a) the share of national taxes {or the local government units, namely: provinces, cities, municipal. ties and barangays, and (b) their power to tax. Powers devolved Certain powers that used to be exercised by the national gov- emment, to wit: (1) public works; (2) health; (3) agriculture; (4) so- cial welfare; (5) certain tourism funetions; and (6) construction of School buildings and facilities are now devolved to local government ‘units, a sais was published in a national paper through the ofio of Senator Aquilino Pimentel, J, the principal author of the lav.92 ‘THE LOCAL GOVERNMENT CODE OF 1991 Annotated Public works In public works, responsibility will now be fixed. For example, purely barangay roads will be the responsibility of the barangay; mu- hicipal roads will be that of the municipality and provincial roads, that of the province. Roads that lead from one barangay to another will be the re- sponsibility of the municipality. Roads that lead from one munic:- pality to another will be the responsibility of the province, and the foads that lead from one province to another will be the responsi- bility of the national government. Pending clarification by the Oversight Committee which will come up with the guidelines to ensure the faithful implementation of the provisions of the Code, national roads in island provinces may remain the responsibility of the national government. Health Under the Code, barangays now have power of establishment and maintenance of barangay health and ‘day care centers. Municipalities now have power over the delivery of primary health care, maternal and child care, communicable and non-com- municable diseases control services. Provinces may establish and run hospitals and other tertiary health services. Cities may exercise the powers vested in municipalities and provinces on the matter of health services. Now, the purchase of medicines, medical equipment and sup- plies is also lodged with local government units. Agriculture Agricultural support services such as distribution of planting materials and operation of collecting and buying stations for farm produce will now be placed under the authority of barangays. Municipalities will now take charge of agriculture extension and research services and delivery of services and facilities related to fisheries and agriculture and the enforcement of fishery laws and DENR laws relative to forestry conservation projects. Provinces will do agricultural extension and on-site research and on-site facilities. The organization of dairy farms, livestockINTRODUCTION 33 markets, and farmers and fishermen cooperatives is placed under the jurisdiction of the provinces. The cities will exercise the powers over agriculture and fish- ing that provinces and municipalities have. Social Welfare Municipalities will now have powers over the welfare of chil- dren ard youth, family and community, women, elderly and disa- bled persons, vagrants, beggars, street children, scavengers, juve- nile delinquents, victims of drug abuse, nutrition and family plan- ning services and other pro-poor services. Provinces will now handle rebel returnees and evacuees pro- grams, relief operations and population development services. Cities will now exercise the powers of the provinces and the municipalities over the social welfare School building ‘The power to build schools is now lodged with local government units concerned. Tax share increased The share of taxes of the local government units has been in- creased from the present 11% to 40% under the following schedule: (1) 30% upon the effectivity of the Code on January 1, 1992; (2) 35% on January 1, 1993; and (3) 40% on January 1, 1994, Tax power increased Aside from being granted a huge increase in their share of the taxes of the nation, the local government units are invested by the Local Government Code with increased powers to tax, thereby em- powering them with a wider capacity to raise their own revenues within their respective territorial jurisdictions. Provincial taxes As examples, the provinces may now impose a tax on (a) trans- fers of real property; (b) businesses of printing and publication [not on newspapers]; (c) franchises; (d) sand and gravel; (e) professions: () amusement enterprises; and (g) delivery vans of all kinds of prod- ‘ucts.a4 THE LOCAL GOVERNMENT CODE OF 1991 Annotated Municipal taxes Municipalities may impose a tax on (a) manufacturers, proc- essors, brewers, distillers, rectifiers, and compounders of liquors and distilled spirits; (b) wholesalers, distributors or dealers of any arti- cle of commerce; (c) exporters, manufacturers, millers, producers, wholesalers, distributors, dealers or retailers of essential commodi- ties; (d) retailers; (e) banks and other financial institutions; and (£) peddlers of merchandise. Municipalities may also levy fees for sealing and licensing weights and measures and impose fishery fees and for the use of municipal waters. City taxes Cities may levy taxes, fees and charges which provinces and municipalities may impose. Like municipalities, the cities may also impose a community tax, which is the new name for the residence tax, which has been deleted from our statute books. Barangay sales taxes City barangays may tax stores and retails whose gross sales do not exceed P50,000 per annum. Municipal barangays may tax those whose sales do not exceed P30,000 per annum. Barangay fees Barangays may also impose fees for: (a) services rendered; (b) barangay clearances; (c) commercial breeding of fighting cocks: (d) cockfights; (e) cockpits; (f) places of recreation which charge admis- sion fees; (f) billboards; and (g) neon signs. Common revenue powers Provinces, cities and municipalities have common revenue rais- ing powers. They may impose (a) fees for services rendered by them: and (b) toll fees. Other sources of revenue In addition, the local government units are entitled to definite shares in (a) the proceeds from development and utilization of mines,ne INTRODUCTION 35 Distribution of shares from natural resuurces The distribution of shares of the local government derived from the development and use of natural resources located in 4 province are as follows: (1) 20% to the province; (2) 45% to the component city or municipality where located; and (3) 35% to the barangay where located. T' the natural résouices is located in a highly urbanized city, the distribution of shares are as follows: (1) 65% to the city; and (2) 35% to the barangay. Real estate levy A teal estate levy may be imposed by the province or city as {ollows' (1) by the provinee, not exceeding 1% of the assessed value of the property; and (2) by the city, not exceeding 2% of the assessed value of the property. Special education fund Idle land levy Idle lands in Provinces, cities or municipalities in Metro Ma- nila may be additionally taxed at not exceeding 5% of their assessed value,— eee 36 THE LOCAL GOVERNMENT CODE OF 1991 Annotated Billions for Development With 30% of national taxes going to local governments in 1992 (effectivity date; January 1), 35% by 1993 and 40% by 1994 we are tallcing here of billions of pesos for the development of the country- side. For 1992, the share of local government units will be P24.441 billion, for 1993, P36.414 billion and for 1994, P46,270 billion. Limits on Salary spending The Code limits expenses for salaries to only 45% for highly urbanized cities and for Ist to 3rd class provinces, cities and mu- nicipalities; 4th to 6th class cities and the barangays may go up to 55% of their budgets for salaries. The rest of the money must be spent for development purposes. Expected Results: Jobs and Peace This means that there will be more money available for roads and bridges, water, light, medical care, school needs and other ba- sic requirements for modern living for the people in the countryside. Also with the infrastructure in place, industries and business will be enticed to go to the countryside. Manila will be decongested and work will be available to the people in places far from the Na- tional Capital Region. Hopefully with development there will be peace. LGU percentage shares The amounts will be apportioned to the provinces, 23%; cities, 23%; municipalities, 34%; and the barangays, 20%.REPUBLIC ACT NO. 7160 AN ACT PROVIDING FOR A LOCAL GOVERNMENT CODE OF 1991 Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled: BOOK | GENERAL PROVISIONS Title One BASIC PRINCIPLES CHAPTER 1. — The Code: Policy and Application SECTION 1. Title. — This Act shall. be known and cited as the “Local Government Code of 1991.” A. Comments Prginally, the laws on local governments were principally found in the Revised Administrative Code. In 1959, the Local Autonomy Act (R.A. 2264) was enacted. This creaath act amending the laws governing local goveraments by in. Greasing their autonomy and reorganizing the provincial govern. ments. ide 1963: The Barrio Charter (R.A. 3590) was passed, which pro- vided for the organization of Barrios and provided for the powers, Tights and duties of the barrio council. R.A. 5185 otherwise known as the Decentralization Act, an Act granting further autonomous powers to local governments, was Passed in 1967. 3738 ‘THE LOCAL GOVERNMENT CODE OF 1991 Annotated, Martial Law was declared in 1972 bringing with it the Inte- grated Reorganization Plan, Art. XVII of which dealt on Local Gov- ernment and Community Development. From September 1972 up to January 1982, when Martial Law was lifted, Presidential Decrees and Proclamations were issued af- fecting local governments. ‘The laws on local governments were so numerous, separate and confusing that bey were codified as mandated in the 1973 Consti- tution. Thus, Batas Pambansa Blg. 337, the Local Government Code was finally approved and took effect on May 12, 1983. ‘To further assure decentralization and development in the countryside, the 1987 Constitution mandated the enactment of an- other local government code. To implement this constitutional direc- tive, Republic Act No. 7160 was enacted by Congress and signed into law on October 10, 1991 by the President. It took effect on January 1, 1992. SEC. 2. Declaration of Policy. — (a) It is hereby declared the policy of the State that the territorial and political subdivisions of the State shall enjoy genuine and meaningful local autonomy to enable them to attain their fullest development as self-re- liant communities and make them more effective partners in the attainment of national goals. To- ward this end, the State shall provide for a more responsive and accountable local government struc- ture instituted through a system of decentralization whereby local government units shall be given more powers, authority, responsibilities, and re- sources. The process of decentralization shall pro- ceed from the National Government to the local government units. (b) It is also the policy of the State to ensure the accountability of local government units through the institution of effective mechanisms of recall, initiative and referendum. {e) Ibis likewise the policy of the State to re- quire all national agencies and offices to conduct periodic consultations with appropriate local gov- ernment units, non-governmental and people’s or-GENERAL PROVISIONS a9 Basic Principles ganizations, and other concerned sectors of the community before any project or program is imple- mented in their respective jurisdictions. Comments: This section is based on Sections 1, 2 and 3, Art. X of the 1987 Constitution. The declared policy of this Code is the promotion of local au- tonomy, through a system of decentralization. The history of this trend towards local autonomy is presented below: 1900. President McKinley's Instructions. — It laid down the policy that municipal governments should be subject to the least degree of supervision and control, and confined to the narrowest lim- its. 1916. Philippine Autonomy Act of 1916. — The Governor-Gen- eral as the supreme executive power had genéral supervision and control of all the executive departments and bureaus of the govern- ment, and all executive functions directly under him or within one of the executive departments under his supervision and control. Ex- ecutive functions of local subdivisions come under this all-embrac- ing authority. 1935. Constitution. — It provided that the President shall only have general supervision over all local governments 1935. Lacson v. Roque. — This is the departure from the Planas v. Gil and the Villena v. Secretary rulings. 1959, Local Autonomy Act (R.A. 2264). — This is an act amend- ing the laws, governing local governments by increasing their au- tonomy and reorganizing the provincial governments. 1967. Decentralization Act (R.A. 5185). — This act granted fur- ther autonomous powers to local governments. 1972. Integrated Reorganization Plan. — Part XVIL, on Local Government and Community Development. 1973. Constitution. — Sec 10 declares that the State shall guar- antee and promote the autonomy of local government units. ‘Thrust of the 1973 Constitution is for fullest autonomy of lo-40 ‘THE LOCAL GOVERNMENT CODE OF 1991 Annotated cal government units. (Ceniza v. Commission on Elections, 95 SCRA 763.) 1983. The Local Government Code (B.P. 337). — It was enacted codifying the numerous laws on local governments and granted more autonomy to local governments. 1987. Constitution. — Sec. 25, Art II declares that: the State shall ensure the autonomy of local governments. The 1987 Consti- tution provides for an entire article (Art. X) on local governments. (Sees. 1-14 on General Provisions and Secs. 15-21 on Autonomous Regions.) 1991. The Local Government Code of 1991 (R.A. 7160) was enacted. National officials should not only comply with the constitutional provisions on local autonomy, but should also appreciate the spirit of liberty upon which these provisions are based. (San Juan v. Civil Service Commission, 196 SCRA 69.) The principle of local autonomy does not make local govern- ments sovereign within the state, it simply means decentralization. (Basco v. Philippine Amusements and Gaming Corporation, 197 SCRA 52.) “X SKC. 3. Operative Principles of Decentraliza- tion. — The formulation and implementation of policies and measures on local autonomy shall be guided by the following operative principles: (a) There shall be an effective allocation among the different local government units of their respective powers, functions, responsibilities, and resources; (b) There shall be established in every local government unit an accountable, efficient, and dy- namic organizational structure and operating mechanism that will meet the priority needs and service requirements of its communities; (c) Subject to civil service law, rules and regulations, local officials and employees paid wholly or mainly from local funds shall be ap- pointed or removed, according to merit and fitness, by the appropriate appointing authority;Basie Principles (da) The vesting of duty, responsibility, and ac- countability in local government units shall be ac- companied with provision for reasonably adequate resources to discharge their powers and effectively carry out their functions; hence, they shall have the power to create and broaden their own sources of revenue and the right to a just share in national taxes and an equitable share in the proceeds of the wilization and development of the national wealth within their respective areas; (e) Provinces with respect to component cit- ies and municipalities, and cities and municipali- ties with respect to component barangay’s shall ensure that the acts of their component units are within the scope of their prescribed Powers and functions; (Local government units may group them selves, consolidate or coordinate their efforts, serv- ices, and resources for purposes commonly benefi- cial to them; (g) The capabilities of local government units, especially the municipalities and barangays shall be enhanced by providing them with the opportu- nities to participate actively in the implementation of national programs and projects; (h) There shall be a continuing mechanism to enhance local autonomy not only by legislative ena- bling acts but also by administrative and organiza- tional reforms; () Local government units shall share with the National Government the responsibility in the management and maintenance of ecological balance within their territorial jurisdiction, subject to the Provisions of this Code and national policies; @ Effective mechanisms for ensuring the ac- countability of local government units to their respective constituents shall be strengthened in or- der to upgrade continually the quality of local lead. ership; 442 THE LOCAL GOVERNMENT CODE OF 1991 Annotated (k) ‘The realization of local autonomy shall be facilitated through improved coordination of na- tional government policies and programs and ex- tension of adequate technical and material assist- ance to less developed and deserving local govern- ment units; (1) The participation of the private sector in local governance, particularly in the delivery of basic services, shall be encouraged to ensure the viability of local autonomy as an alternative strat- egy for sustainable development; and (m) The National Government shall ensure that decentralization contributes to the continuing improvement of the performance of local govern- ment units and the quality of community life. A. Comments ‘This is a new section which lays down in detail and specific terms the operative principles to effect decentralization and local autonomy. SEC. 4. Seope of Application. — This Code shall apply to all provinces, cities, municipalities, barangays, and other political subdivisions as may be created by law, and, to the extent herein pro- vided, to officials, offices, or agencies of the Na- tional Government. A. Comments ‘The Code also contains provisions which apply to national of- ficials, like the President as provided for in Section 25, and the Phil- ippine National Police under Section 28 in their inter- governmen- tal relations with the local government units. SEC. 5. Rules of Interpretation. — In the inter- pretation of the provisions of this Code, the follow- ing rules shall apply: (a) Any provision on a power of a local gov- ernment unit shall be liberally interpreted in itsGENERAL PROVISIONS 43 Basie Principles favor, and in case of doubt, any question thereon shall be resolved in favor of devolution of powers and of the lower local government unit. Any fair and reasonable doubt as to the existence of the power shall be interpreted in favor of the local gov- ernment unit concerned; (b) Incase of doubt, any tax ordinance or rev- enuc measure shall be construed stricily aguinst the local government unit enacting it, and liberally in favor of the taxpayer. Any tax exemption, incen- tive or relief granted by ainy local government unit pursuant to the provisions of this Code shall be construed strictly against the person claiming it; (c) The general welfare provisions in this Code shall be liberally interpreted to give more powers to local government units in accelerating economic development and upgrading the quality of life for the people in the community; (d@) Rights and obligations existing on the date of effectivity of this Code and arising out of contracts or any other source of prestation involv- ing a local government unit shall be governed by the original terms and conditions of said contracts or the law in force at the time such rights were vested; and (e)_In the resolution of controversies arising under this Code where no legal provisions or juris- prudence applies, resort may be had to the customs and traditions in the place where the controversies take place. A. Comments This section provides that any doubt or question on a power of a local government shall be resolved in favor of devolution of pow- ers and in favor of the lower local government unit. However, for tax measures enacted by local governments, any doubt shall be construed strictly against the local government and liberally in favor of the taxpayer.44 THE LOCAL GOVERNMENT CODE OF 1991 Annotated This section also strengthens the power of local governments, to enaet ordinances under the general welfare provisions by provid. ing for liberal interpretation in favor of local governments CHAPTER 2. — General Powers and Attributes of Local Government Units SEC. 6. Authority to Create Local Government Units. — A local government unit may be created, divided, merged, abolished, or its boundaries sub. stantially altered either by law, enacted by Con- gress in the case of a province, city, municipality, or any other political subdivision, or by ordinance passed by the sangguniang panlalawigan or Sangguniang panlungsod concerned in the case of a barangay located within its territorial jurisdic- tion, subject to such limitations and requirements prescribed in this Code. A. Comments Congress has the power to create or abolish a province, city, municipality, or any other political subdivision, The sangguniang panlalawigan or sangguniang panlungsod has the power to create and abolish barangays located within its terri. torial jurisdiction. SEC. 7. Creation and Conversion. — As a gen- eral rule, the creation of a local government unit or its conversion from one level to another level shall be based on verifiable indicators of viability and projected capacity to provide services, to wit: (a)_ Income. — It must be sufficient, based on acceptable standards, to provide for ail essential government facilities and services and special func- tions commensurate with the size of its population, as expected of the local government unit concerned; (b) Population. — It shall be determined as the total number of inhabitants, within the territo- rial jurisdiction of the local government unit con- cerned; andee GENERAL PROVISIONS 45 Basic Prineiples Environment and Natural Resources (DENR). A. Decided Cases 1, retitioners have not demonstrated that the delineation of the land area of the proposed City of Makati (without metes and bounds) will cause confusion as to ite boundaries. Congress has re- frained from using the metes and bounds description of land areas of other local government units. MARIANO v. COMELEC, 242 SCRA 211, 3/7/95 Puno, J, Facts: Petitioners aseail section 2 of RA. 7854 8 unconstitutional tuihe ground that it did not properly identify the lane area or terri- torial jurisdiction of Makati by metes and bounds, in violation of Sec- tion 10 of the 1987 Constitution in relation tn Sections 7 and 450 of the Local Government Code, Held: We find no merit in the petition, ‘The delineated land area of the proposed city of Makati provides that SEC. 2. City of Makati. — Reece 7 ‘The importance of drawing the Precise strokes of territorial dea not be over emphasized. The boundaries must be clear for they define the limits of the territorial jurisdiction of the local| 46 ‘THE LOCAL GOVERNMENT CODE OF 1991 Annotated government unit. Beyond these limits, its acts are ultra vires. Any uncertainty in the boundaries will sow costly confliets in the exercise of governmental powers which ultimately will prejudice the peoples welfare. This is the evil sought to be avoided by the Local Govern- ment Code in requiring that the land area be spelled out in metes and bounds, with technical description, Given the facts, we cannot perceive how this evil ean be brought about by the description made in section 2. Petitioners have not dem- onstrated that the delineation of the land area of the proposed City of Makati will eause confusion as to its boundaries, The delineation did not change even by an inch the land area previously covered. Sec- tion 2 did not add, subtract, divide or multiply the established land area of Makati. In language that cannot be any clearer, the city's land | area shall comprise the present territory of the municipality? We take judicial notice of the fact that Congress has also refrained from using the metes and bounds description of land areas of other local govern- | ment units with unsettled boundary disputes. | 2. The technical description, containing the metes and bounds of a-municipality’s territory stated in EO 258 ereating the | Municipality of Sinacaban, Misamis Oriental, is binding. MUNICIPALITY OF JIMENEZ v. BAZ, JR. 265 SCRA 182, 12/2/96 | Mendoza, J. Facts: The Municipality of Sinacaban was created by Executive Or- der No, 258 of then President Elpidio Quirino, It provides: There is hereby created, in the Province of Misamis Occidental, a municipal- ity to be known as the Municipality of Sinacaban, which shall consist of the Southern portion of the Municipality of Jimenez, Misamis Occidental, more particularly described as follows: the lighthouse on the Tabo-o point S. 84° 30'W., 7,250 meters to point 2 which is on the bank of Palilan River branch; thence fol- lowing Palilan River branch 2,400 meters southwesterly to point 3; thence a straight line $ 87° 00'W, 22,550 meters to point 4, where this intersects the Misamis Occidental-Zamboanga bound- ary; on the west by the present Misamis Occidental-Zamboanga boundary; and on the south by the present Jimenez-Tudela boundary; and on the east, by the limits of the municipal wa- ers which the municipality of Sinacaban shall have pursuant to Section 2321 of the Revised Administrative Code. The Mu- nicipality of Jimenez shall have its present territory, minus the portion thereof included in the Municipality of Sinacaban, | (On the north by a line starting from point 1, the center ofEEE eT GENERAL PROVISIONS 47 Basie Principles Based on the technical description, Sinacaban laid claim to a Portion of Barrio Tabo-o and Barrios Macabayao, Adorable, Sinara Baja, and Sinara Alto. The claim was filed with the Provincial Board of Misamis Occidental against the Municipality of Jimenez. Jimenez countered in its answer that while under EO 258, the disputed area 's part of Sinaeaban, it nonetheless asserts jurisdiction on the basis of an agreement entered with Sinacaban in 1950. The agreement (Resolution No. 77), which was approved hy the Provincial Board of Misamis Occidental states that: “The barrio of Macabayao, Sitio Ador- able and site will be a part of Jimenez town.” ‘The Provincial Board declared the disputed area to be part of Sinacaban. Jimenes filed a petition for certiorari, prohibition and mandamus in the RTC of Oroquieta City, against Sinacaban, et al, ‘The RTC denied the petition and the subsequent motion for reconsi eration. Hence, this petition on whether it is the boundary provided in EO 258 or in Resolution No..77 which should be used as basis for adjudicating Sinacaban’s claim, Held: Jimenez argues that the RTC erred in ordering a relocation sur- vey of the boundary of Sinacaban, because the barangays which Sinacaban are claiming are not enumerated in EO 258 and that in any event, the parties entered into an agreement whereby the barangays in question were considered part of the territory of Jimenes, EO 258 does not say that Sinacaban comprises only the barrios (now called barangays) therein mentioned, What it says is that “Sinacaben contains” those barrios without saying they are the only ones com. prising it. The reason for this is that technieal description, contain. ing the metes and bounds of its territory, is controlling. The trial court correctly ordered a relocation survey as the only. ‘means of determining the boundaries of the municipality and conse. (vently the question to which municipality the barangays questioned belong. Therefore, if Resolution No. 77 is contrary to the technical de- Seription of the territory of Sinacaban, it cannot be used by Jimenez as basis for opposing the claim. SEC. 8, Division and Merger. — Division and merger of existing local government units shall comply with the same requirements herein pre- scribed for their creation: Provided, however, That such division shall not reduce the income, popula- tion, or land area of the local government unit ov units concerned to less than the minimum require. ments preseribed in this Code: Provided, further,SEER 48 ‘THE LOCAL GOVERNMENT CODE OF 1991 | Annotated That the income classification of the original local government unit or units shall not fall below its current income classification prior to such division. The income classification of local government units shall be updated within six (6) months from the effectivity of this Code to reflect the changes in their financial position resulting from the increased | revenues as provided herein. SEC. 9. Abolition of Local Government Units. — A local government unit may be abolished when its income, population, or land area has been irrevers- ibly reduced to less than the minimum standards prescribed for its creation under Book III of this Code, as certified by the national agencies men- | tioned in Section 7 hereof to Congress or to the sanggunian concerned, as the case may be. The law or ordinance abolishing a local gov- ernment unit shall specify the province, city, mu- | nicipality, or barangay with which the local govern- ment unit sought to be abolished will be incorpo- rated or merged. A. Comments The Code now lays down three important indicators of viabil- | | ity in the creation of local government units namely: income, popu- lation and land area. | | SEC. 10. Plebiscite Requirement. — No creation, division, merger, abolition, or substantial alteration of boundaries of local government units shall take | effect unless approved by a majority of the votes cast in a plebiscite called for the purpose in the political unit or units directly affected. Said plebi- scite shall be conducted by the Commission on Elec- | tions (COMELEC) within one hundred twenty (120) days from the date of effectivity of the law or ordi- nanee effecting such action, unless said law or or- | dinance fixes another date.| GENERAL PROVISIONS 49 Basic Principles A. Decided Cases CITY OF PASIG v. COMELEC, $14 SCRA 179, 9/10/99 Ynares-Santiago, J. ahe municipality of Cainta called the attention of the COMELEC to a pending case in the RTC of Antipolo, Rizal for sottle- meat of boundary dispute, in which the proposed barangays involve Than included in the boundary dispute subject of said pending case. The COMELEC ordered the plebiscite for the creation of Barangay Karangalan to be held in abeyance. However, the COMELEC ruled Held: We agree with the position of the COMELEC that the civil case involving the boundary dispute between the Municipality of CaintaTHE LOCAL GOVERNMENT CODE OF 1991 Annotated Court can very weil suspend action on one case pending the final out- come of another case closely interrelated or linked to the first. When territorial jurisdiction is an issue raised in the pending civil case, until and unless such issue is resolved with finality, to de- fine the territorial jurisdiction of the proposed barangay would be an exercise in futility. For indeed, a requisite for the creation of a barangay, is for its territorial jurisdiction to be properly identified by metes and bounds or by more or less permanent natural boundaries. However, we do not agree with the contention that merely be- cause a plebiscite had already been held in the case of the proposed Barangay Napico, the petition of the Municipality of Cainta had al- ready been rendered moot and academic. The issues raised by the ‘Municipality of Cainta before the COMELEC against the holding of a plebiscite for the creation of Barangay Napico are still pending de- termination before the Antipolo RTC. SEC. 11. Selection and Transfer of Local Gov- ernment Site, Offices, and Facilities. — (a) The law or ordinance creating or merging local government units shall specify the seat of government from where governmental and corporate services shall be delivered. In selecting said site, factors relating to geographical centrality, accessibility, availability of transportation and communication facilities, drainage and sanitation, development and eco- nomic progress , and other relevant considerations shall be taken into account. (b) Whén conditions and development in the local government unit concerned have significantly changed subsequent to the establishment of the seat of government, its sanggunian may, after pub- lic hearing and by a vote of two-thirds (2/3) of all its members, transfer the same to a site better suited to its needs: Provided, however, That no such transfer shall be made outside the territorial boundaries of the local government unit concerned. The old site, together with the improvements thereon, may be disposed of by sale or lease or con- verted to such other use as the sanggunian con- cerned may deem beneficial to the local govern- ment unit concerned and its inhabitants.—_—_—_—_————— GENERAL PROVISIONS ot Basic Principles (c) Local government offices and facilities shall not be transferred, relocated, or converted to other uses unless public hearings are first con- ducted for the purpose and the concurrence of the majority of all the members of the sanggunian con- cerned is obtained. SEC. 12. Government Centers. — Provinces, vit- jes, and municipalities shall endeavor to establish 4 government center where offices, agencies, or branches of the National Government, local govern- ment units, or government-owned or controlled. forporations may, as far as practicable, be located. In designating such a center, the local government unit concerned shall take into account the existing facilities of national and local agencies and offices which may serve as the Sovernment center as con- templated under this Section, The National Govern- ment, local government unit or government-owned or controlled-corporation concerned shall bear the expenses for the construction of its buildings and facilities in the government center. SEC. 13. Naming of Local Government Units and Public Places, Streets and Structures. — (a) The Satgguniang panlalawigan may, in consultation with the Philippine Historical Commission (PHO), change the name of the following within its tess’ torial jurisdiction: (1) Component cities and municipalities, upon the recommendation of the sanggunian concerned; (@) Provincial roads, avenues, boulev- ards, thoroughfares, and bridges; (3) _ Publi vocational or technical schools and other post-secondary and tertiary schools; (4) Provincial hospitals, health centers and other health facilities; and (5) Any other public place or building owned by the provincial government,THE LOCAL GOVERNMENT CODE OF 1991 ‘Annotated (b) The sanggunians of highly urbanized cit. ies and of component cities whose charters prohibit their voters from voting for provincial elective of- ficials, hereinafter referred to in this Code as inde- pendent component cities, may, in consultation with the Philippine Historical Commission, change the name of the following within its territorial ju- risdiction: (1) City barangays, upon the recommen- dation of the sangguniang barangay con- cerned; (2) City roads, avenues, boulevards, thor- oughfares, and bridges; (3) Public elementary, secondary, and vocational or technical schools, community col- leges, and non-chartered colleges; (4) City hospitals, health centers and other health facilities; and (5) Any other public place or building owned by the city government. (c) The sanggunians of component cities and municipalities may, in consultation with the Phil- ippine Historical Commission, change the name of the following within its territorial jurisdiction. (1) City and municipal barangays; upon recommendation of the sangguniang barangay concerned; (2) City, municipal and barangay roads, avenues, boulevards, thoroughfares, and bridges; (3) City and municipal public elemen- tary, secondary and vocational or technical schools, post-secondary and other tertiary schools; (4) City and municipal hospitals, health centers and other health facilities; and (5) Any other public place or building owned by the municipal government.Ne GENERAL PROVISIONS 53 Basic Principles (@) None of the foregoing local government units, institutions, places, or buildings shall be named after a living person, nor may a change of Bame be made unless for a justifiable reason and, in any case, not oftener than once every tex ao) years. The name of a local government unit or » Public place, street or structure with historical, cuitnral, or ethnic significance shall not be changed, unless by a unanimous vote of the prgeunian concerned and in consultation with the PHC. (e) A change of name of a publie school shall he made only upon the recommendation of the lo- cal school board concerned. (). A change of name of public hospital, health centers, and other health facilities shall be made only upon the recommendation of the local health board concerned, {h) In any change of name, the Office of the President, the representative of the legislative dis- trict concerned, and the Bureau of Posts shall be notified. majority of the members of its sanggunian, unless de thet time is fixed therefor by the law or on, dinance creating it, A. Comments This section settles the question of the beginning of the corpo- Sue existence of a new local government une which divided the Supreme Court in the case of Mujia Balolong, infra.a a a 54 THE LOCAL GOVERNMENT CODE OF 1991 Annotated The legal existence of a municipal corporation is to be deter- mined by the law creating it. Usually, the law fixes the beginning of the corporate existence of a municipal corporation from the effectivity of the law creating it or upon the organization of its gov- ernment or upon the qualification of its officers. Where the law, however, is silent as to the beginning of its cor- porate existence, it shall commence upon the election and qualifica- tion of ils chief executive and a majority of the members of its sanggunian. B. Decided Cases 1. The City of Dagupan came into existence as a legal en- tity upon the approval of the law creating it. However, before the City of Dagupan ean act as a public corporation or juridical entity, it is necessary that the officials thereof be appointed or elected in order that it may transact business as such public corporation or city. MEJIA v. BALOLONG, 81 Phil. 486, 9/16/48 Feria, J. Facts: This is an action for quo warranto. The four petitioners were elected councilors of the city of Dagupan on Nov.11, 1947. The four respondents were appointed by the President on Dee 30, 1947. Accord- ing to Section 88 of Act No. 170 “the city government provided for in this chapter shall be organized on such a date as may be fixed by the President and upon the qualification of the City Mayor and the ap- pointment or election of the members of the Municipal Board.” Pend- ing the next general elections for provincial and municipal officials, the officers of the members of the municipal board shall be filled by appointment of the President of the Philippines with the consent of ‘the Commission on Appointment. The validity of the appointment of the respondents as councilors of Dagupan by the President depends upon whether the City of Dagupan was created and came into exist- ence on June 20, 1947, the date Act No, 170 became effective, or on January 1, 1948, when the city government was organized by Execu- tive Order No. 96. If the first, the next general elections referred to was that of Nov. 11, 1947 and the President had no power to appoint herein respondents. Held: It is evident that the City of Dagupan created by Act No. 170 came into existence as a legal entity or public corporation upon theee GENERAL PROVISIONS 56 Basic Principles The general elections referred to is that of Nov, 11, 1947 where the petitioners were elected. Therefore, the appointments of the re- Spondents by the President are null and void. Petition is granted, Paras, J.: Dissenting The City of Dagupan must be deemed to have been formally grsanized only on Jan. 1, 1948, the date fixed in Executive Order No. 96. The general elections referred to is not the Nov. 11, 1947 elections but the next general elections after the organization of the city, SEC. 15. Political and Corporate Nature of Lo- cal Government Units. — Every local government unit created or recognized under this Code is a body politic and corporate endowed with powers to be exercised by it in conformity with law As such, it shalll exercise powers as a political subdivisions of the National Government and as n corporate entity representing the inhabitants of its territory. A. Comments Aguado v. City of Manila; Villas v, City of Manila, alt infra.) Municipal corporations perform dual functions, one governmen- tal and another corporate. In the exercise of ite governmental pow-586 ‘THE LOCAL GOVERNMENT CODE OF 1991 Annotated porations are on the same plane as any private corporation. The regulation violated by petitioner was a zoning ordinance, which seeks to protect the people and their property, and to promote their well- being. It was enacted in the exercise of the police power, which es- sentially, is political and governmental in nature. (Villas v. City of Manila, 42 Phil. 953; 220 U.S. 545; Mendoza v. De leon, 33 Phil. 508; People v. Cruz, 54 Phil. 24; Seng Kee & Co. v. Earnshaw, 56 Phil. 204.) In other words, it was promulgated by the municipal gov- emmment of Lucena acting as an agent of the national government. Hence, it partakes of the nature of “government promulgated rule,” although limited in its application to said locality. (Tiu San v. Re- public, 96 Phil. 817.) SEC. 16. General Welfare. — Every local gov- ernment unit shall exercise the powers expressly granted, those necessarily implied therefrom, as well as powers necessary, appropriate, or inciden- tal 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 techno- logical capabilities, improve public morals, enhance economic prosperity and social justice, promote full employment among their residents, maintain peace and order, and preserve the comfort and conven- ience of their inhabitants. A. Comments This is the so-called “general welfare clause” which empowers local government units to enact and implement measures for the general well-being of their inhabitants. Its basis is the police power of the State as delegated to local government units. Verily, the powers of a local government unit are not absolute. They are subject to limitations laid down by the Constitution and the laws such as our Civil Code. Moreover, the exercise of such pow- (AtomC—O GENERAL PROVISIONS 37 Basic Principles ers should be subservient to paramount considerations of health and well-being of the members of the community. Every local government unit has the sworn obligation to enact measures that will enhance the public health, safety and convenience, maintain peace and or. der, and promote the general prosperity of the inhabitants of the loval units, Based on this objective, the local government should refrain from acting towards that which prejudice or adversely affect the general welfare (Makasiano v. Diokno, 212 SCRA 464.) B. Decided Cases f_, .The municipal couneil of Malabon acted within its pow- crs when it enacted an ordinance prohibiting jueteng within the lim, its of the municipality. US. v. ESPIRITUSANTO, 23 Phil. 610, 12/11/12 Torres, J. Facts: The municipality of Malabon passed an ordinance strietly pro- hibiting the game of jueteng within the limits of said municipality ard prescribing the penalties to be imposed for its violation, De. fendant was charged with a violation of said ordinance for collec, ing wagers for the gambling game of jueteng, the tickets newer. fay for conducting the same having been seized in his possession, Defendant argued that the ordinance is contrary to the Municn pal Code because the council exceeded the powers conferred une it by the eode which only authorizes it to provide against the evita of gambling, gambling houses, and disorderly house of whateves sort, Defendant was convicted. Held: The municipal council acted within its powers, as conferred by the organic law, in enacting an ordinance prohibiting the game called Justeng within the limits of the municipality. The Municipal Code Shthorizing the municipality to provide against the evils of gambling should be understood to include the power to prohibit games of chan es from Hak’ necessary regulations to exterminate the evils ensuing from the playing of prohibited games, Furthermore, a municipal ordinance prohibiting the game of tend is in conformity with the provisions of Act No. 1757, in as much as jueteng is included in the games of chance that are absolutely pro- hibited by the general law, and must be prosecuted and completely cota! aot! in order to avoid ropetitions of the great and far-reaching Plan! and moral evils it has been producing in the localities of the Philippine Islands,58. ‘THE LOCAL GOVERNMENT CODE OF 1991 Annotated 2. Sine it is the ancient obligation of the individual to as- sist in the protection of peace and order in the community, residents of a municipality may be compelled to render civil service. Hence, an ordinance to that effect does not violate the liberty of citizens. U.S. v. POMPEYA, 31 Phil. 245, 8/6/15 Johnson, J. Facts: Accused Pompeya was charged with violation of an ordinance of Noilo on the subject of patrol duty, based on an Executive Order and the Municipal Code, requiring able-bodied male residents of the municipality between the ages of 18-50, to assist for a period not ex- ceeding five days in any one month, in the apprehension of bandits and thieves. It is alleged that accused did willfully, illegally and crimi- nally and without justifiable motive fail to render service on patrol duty. Accused argued-that the ordinance alleged to have been violated is unconstitutional because it is repugnant to the Organic Act of the Philippines, which guarantees the liberty of the citizens. Accused was convicted. Held: The ancient obligation of the individual to assist in the protec- tion of the peace and order of his community is still recognized in all well-organized governments. Under this power, the persons in the state, country or town who were charged with the maintenance of peace and order were bound ex-officio, to pursue and to take all per- sons who had violated the law. For that purpose, they may command all male inhabitants of a certain age to assist them. This power is called “posse comitatus.” This was a right well-recognized at common law. The Municipal Code attempts simply to designate the cases and the method when and by which the people of the town may be called upon to render assistance for the protection of the public and the pres- ervation of peace and good order. The right or power conferred the municipalities by the Munici- pal Code falls within the police power of the state which has been defined as the power of government, inherent in every sovereign and cannot be limited; and which may embrace the whole system of internal regulations by which the state seeks to preserve pub- lic order and to prevent offenses. The state was, therefore, fully authorized and justified in conferring the same power upon the municipality, and consequently the provisions of the ordinance in question are constitutional and not in violation nor in derogation of the rights of the persons affected thereby. The police power of the State includes not only the public health and safety, but also the public's best interest.—__— GENERAL PROVISIONS 39. Basic Principles 3. While the panguingue is not a game of chance, it is still the proper subject of regulation by the municipality acting under their delegated police power, whose laudable intention is to impose Public morals and promote the prosperity of the people. U.S. v. SALAVERIA, 39 Phil. 102, 11/12/18 Malcolm, J. Facts: The municipal council of Orion, Bataan enacted an ordinance which, among other things, prohibited the playing of panguingue on days not Sundays or legal holidays and penalized the violation thereof Accused justice of the peace, notwithstanding his official station, on one evening not a Sunday or holiday, together with his wife and seven persons-were surprised by the police while indulging in a game of Fanguingue in the house of the accused. The police took possession of the cash and the cards used in the game, Accused was convicted and appealed on the ground that the municipal ordinance is invalid, Held: Although panguingue is not named in the géneral law of gam- bling, and although not entirely a game of chanee, yet it is a proper subject for regulation by the municipal authority acting under their delegated police power, whose laudable intention is to impose public morals and promote the prosperity of the people. Sec. 2238 of the Administrative Code, known as the general welfare clause, delegates i= statutory form the police power to a municipality. The general wol. fare clause has two branches. One branch attaches itself to the main [unk of municipal authority, and relates to such ordinances and regu- lations as may be necessary to carry into effect and discharge the Pawers and duties conferred upon the municipal council by law. The Second branch of the clause is much independent of the specific func. tions of the municipal couneil which are enumerated by law, which authorizes such ordinances as shall scem necessary and proper to provide for the health and safety, and promote the prosperity of the People. Not only does the state effectuate its purposes through the ex: excise of the police power, but the municipality does also. Like the Stete, the police power of a municipal corporation extends to all such mraters affecting the comfort and safety of its citizens, the security piocial order, and the best and highest interest of the municipality, gre ordinance in question is valid, it being within the police power of the municipality, 4. As long as the ordinance which prohibits the use of bells alike Get? attzact buyers applies to all kinds and classes of people alike doing business in the prohibited area, such may be regulated. —ae eo | 60 THE LOCAL GOVERNMENT CODE OF 1991 Annotated. ‘The regulation of business affairs of the city is a matter of discre- tion of the council acting under its police power. PEOPLE v. GABRIEL, 43 Phil. 641, 7/25/22 Johns, J. Facts: An ordinance of the City of Manila provides: “No bell or crier, or other means of attracting buyers or bidders by the use of noise or show, other than a sign or flag, shall be employed or suffered or permitted to be used, except between the hours of 8:00 AM to 12:00 PM, and from 2:00 PM to 7:00 PM, during working days, at or near any place of sale or at or near any auction room or near any auction whatsoever: Pro- vided, That the ringing of bells and the use of megaphone, magnavox, and criers and other means of attracting buyers and bidders to any place of sale or auction shalll be prohibited on Calles Escolta, Rosario, and Eehague, and Plaza Sta. Cruz, and Plaza Goiti” Defendant was accused of a violation of said ordinance and convieted. He appealed contending that said ordinance is unconstitutional for being diserimi- natory, Held: The challenged ordinance is a valid exercise of police power. It is nothing more than a regulation of the business affairs of the city, and is a matter in the discretion of the council acting under its police power. There is no discrimination in the ordinance. It applies to all kinds and classes of people alike doing business within the prohib- ited area, and no person within the city limits has any legal or con- stitutional right to auction his goods without a license from, or the consent of the city, and it must follow that, so long as the ordinance is uniform, the city has a legal right to specify how, when, where, and in what manner goods may be sold at auction within its limits, and to prohibit their sale in any other manner. 5, The Municipal Board of Manila can pass an ordinance for the regulation of the operation and maintenance of slot machines since such slot machines are inimical to the general welfare of the population. Such ordinance is a lawful exercise of the police power of the State. RECREATION AND AMUSEMENT ASS'N. v. CITY OF MANILA, 100 Phil. 950, 2/22/57 Felix, J. Facts: The Municipal Board of Manila passed an ordinance which lim- its the operation and maintenance of a certain kind of slot machines in Manila, to areas not within the radius of 200 meters from anyee GENERAL PROVISIONS 61 Basic Principles church, hospitals, institution of learning, publie market, plaza and gov- Pamment buildings, and increases the annual fee from PS5.06 to P300.00 payable in advance. Petitioner prayed for a Preliminary in- junction against the City Mayor and Treasurer to enjoin said off ine from enforcing said ordinance. v fg An ordinance passed by the City of Cebu, designed to climinate animal waste in city streets and other public places is a qasute designed to promote the health and well being of the rest dents. Such being the case, the’ ordinance is valid. PEOPLE v. SOLON, 110 Phil. 39, 11/23/60 Barrera, J. tion, the Municipal Board of the City of Cebu passed the questioned legislation. As stated in the resolution of the Board, this ening was Prineipally brought about by the presence of about 5,000 horse-drawn es for hire, that ply the city streets day and night which, in the chase, Of their occupation, naturally make the objectionable die. charges. The Board estimated the wastes discharged by these animals juni deposited therein to be around 5,000 kilos a day, Appellants ob- jection, however is against the application of the prebibicee only to these vehicle-drawing animals and in not extending its operations to those animals that, although not so utilized, similarly pass through the same streets,62 THE LOCAL GOVERNMENT CODE OF 1991 Annotated Itis possible that there may be non-vehicle drawing animals that also traverse these roads, but their number must be negligible and their appearance therein merely occasional, compared to the rig-draw- ing ones, as not to constitute a proof that in its application, the ordi- nance grants favors or impose restrictions on certain owners of vehi- cle-drawing animals which are not accorded or enforced on others, In the light of the above considerations, we are convinced that the ques- tioned ordinance does not violate the constitutional prohibition against class legislation. 7. The City of Olongapo can require building permits on buildings located inside the U.S. Naval Reservation under the Gen- eral Welfare Clause which scope is wide, well-nigh all embracing, covering every aspect of public health, morals, safety and well-be. ing and good order of the community. PEOPLE v. GOZO, 53 SCRA 476, 10/26/73 Fernando, J. Facts: Appellant Gozo was charged with a violation of an ordinance of Olongapo, Zambales requiring a permit from the municipal mayor for the construction of a building, as well as any modification, altera- tion, repair or demolition thereof. It appears that appellant bought a house and lot located inside the US Naval Reservation within the ter- ritorial jurisdiction of Olongapo City. She demolished the house and built another one without a building permit from the City Mayor be- ‘cause she was told by her neighbors that such permit was not necas- nary Held: Local government units are not devoid of authority to require building permits. The Supreme Court since 1911 has sanctioned the validity of such measures. It is much too late in the day to contend that such a requirement cannot be validly imposed. The questioned ordinance is predicated under the general welfare clause. Its scope is wide, well-nigh all embaracing, covering every aspect of public health, morals, safety and well-being and good order of the community. Chal. longed ordinance is valid. It is likewise, applicable to appellant because within the limits of a municipal territory, whatever statutory powers are vested upon it’ may be validly exercised. Any residual authority therein conferred, whether expressly or impliedly, belongs to the national government, not to an alien country. What is even more to be deplored in the ap- pellant’s claim that she is not covered by said ordinance is that there is even no such claim made by the American naval authorities. Thees GENERAL PROVISIONS 63 Basic Principles Of the censor the provisions of the Bases Agreement is the concern pf the contracting parties alone, Whether, therefore, « given case which by the treaty comes within the American jurisdictios should be trans- ‘erred to the Philippine authorities is a matter abeur which the ap- pellant has nothing to do or say. SAMSON v. MAYOR OF BACOLOD CITY 60 SCRA 276, 10/23/74 Fernando, J. Facts: Petitioners, movie operators, question an ordinance which pro- hibited the admission in an amusement place of two or more persons with only one ticket for depriving them of their Property without due Eineess, because it limited their right to manage their theaters in the manner that they wished, Held: The ordinance is valid, for it is in the interest of preventing fraud in the collection of municipal taxes and in accordance with public safety and general welfare. It is not an arbitrary exercise of police power, 9. Although the exercise of the municipality's general wel- fare powers is subordinate when such exercise thereof will conflict with vested rights arising from contracts, in this case, police power 18 superior to contractual rights. ORTIGAS & CO., LIMITED PARTNERSHIP v. FEATI BANK AND TRUST CO,, 94 SCRA 533, 12/14/79 Santos, J.64 ‘THE LOCAL GOVERNMENT CODE OF 1991 Annotated rights arising from its contracts. However, in this case, police power is superior to contractural stipulations between parties on the use of lands sold by subdivisions even if said conditions are annotated on the Torrens Title. 10. LGUs may enact police power measures pursuant to the general welfare clause. TANO v. SOCRATES, 278 SCRA 154, 8/21/97 Davide, Jr, J. Facts: On December 15, 1992, the Sangguniang Panlungsod ng Puerto Princesa City enacted Ordinance No. 15-92 which took effect on Janu- ary 1, 1993 entitled: “An ordinance banning the shipment of all live fish and lobster outside Puerto Princesa City From January 1, 1993 to January 1, 1998 and providing exemptions, penalties, and for other purposes thereof.” The Sangguniang Panlalawigan, Provincial Government of Palawan enacted Resolution No. 33 entitled: “A resolution prohibit- ‘ing the catching, gathering, possessing, buying, selling and shipment of live marine coral dwelling aquatic organisms x x x for a period of five (5) years in and coming from Palawan waters.” The petitioners Airline Shippers Association of Palawan and other marine merchants were charged criminally for violation of the above enactments. Petitioners invoke the preferential right of marginal fishermen in Section 149 of the LGC, which pertinently provides: Rentals, Fees and Charges; (b) The sangguniang bayan mai (1) Grant fishery privileges to erect fish corrals, oyster, mus- sels or other aquatic beds or bangus fry areas, within a definite zone of the municipal waters, as determined by it: Provided, however, That duly registered organizations and cooperatives of marginal fishermen shall have the preferential right to such fishery privileges ... In their comment, public respondents defended the validity of Ordinance No. 2, Series of 1993, as a valid exercise of the Provincial Government's power under the general welfare clause. ‘Held: The so-called “preferential right” of subsistence or marginal fish- ermen to the use of marine resources is not at all absolute. The LGC provisions invoked by private respondents seek to give flesh and blood to the right of the people to a balanced and healthful ecology. In fact, the General Welfare Clause, expressly mentions thisa GENERAL PROVISIONS 65 Basic Principles “ight, Section 5(c) of the LGC explicitly mandates that the general welfare provisions of the LGC “shall be liberally interpreted to give more powers to the loeal government units in accelerating economic development and upgrading the quality of life for the people of the community.” ery laws within the municipal waters, In light then of the principles of decentralization and devolu- tion enshrined in the LGC, and the powers granted therein to local @vernment units under the General Welfare Clause, which unques« fonably involve the exercise of police power, the validity of the ques. tioned Ordinances cannot be doubted. Tl." ‘The MMDA which has no police and legislative powers, has no power to enact ordinances for the general welfare of the int habitants of Metro Manila. It has no authority to order the opening of Nepiune Street, a private subdivision road in Makati City ana cause the demolition of it's perimeter walls, METROPOLITAN MANILA DEVELOPMENT AUTHORITY \. BEL-AIR VILLAGE ASSOCIATION, INC. 328 SCRA 836, 2/27/00 PUNO, J. Facts: Petitioner MMDA is a government agency tasked with the de- livery of basic services in Metro Manila. Respondent Bel-Air Village Astociation, Ine, (BAVA) is a non-stock, non-profit corporation whees On December 30, 1996, respondent recsived from petitioner, through its Chairman, a notice dated December 22, 1995 requesting feepondent to open Neptune Street to public vehicular traffic start ifg January 2, 1996. On the same day, respondent was apprised that the perimeter wall separating the subdivision from the adjacent Kalayaan Avenue would be demolished. Respondent instituted against pititioner before the RTC of Makati City, a Civil Case for injunction which the court denied, ‘The appellate court held that the MMDA has no authority to order the opening of Neptune Street, a private subdivision road and86 ‘THE LOCAL GOVERNMENT CODE OF 1991 ‘Annotated cause the demolition of its perimeter walls. It held that the authority is lodged in the City Council of Makati by ordinance. Held: There is no syllable in R.A. No, 7924 that grants the MMDA police power, let alone legislative power. Even the Metro Manila Coun- cil has not been delegated any legislative power. Unlike the legisla- tive bodies of the local government units, there is no provision in RA. No. 7924 that empowers the MMDA ar its Couneil to “enact ordi- nanecs, approve resolutions and appropriate funds for the general welfare” of the inhabitants of Metro Manila, The MMDA is not a po- litical unit of government. The power delegated to the MMDA is that given to the Metro Manila Council to promulgate administrative rules and regulations in the implementation of the MMDA‘ funetions. The MMDA has no power to enact ordinances for the welfare of the eam- munity. It is the local government units, acting through their respec- tive legislative councils, that possess legislative power and police power. ‘The MMDA was created to put some order in the metropolitan transportation system, but unfortunately the powers granted by its charter are.limited. Its good intontions cannot justify the opening for public use of a private street in a private subdivision without any le- gal warrant. The promotion of the general welfare is not antithetical to the preservation of the rule of law. 12. Since Congress has allowed the PCSO to operate lotter- ies which PCSO seeks to conduct in Laguna, pursuant to its legis- lative grant of authority, the province's Sangguniang Panlalawigan cannot nullify the exercise of said authority by preventing something already allowed by Congress. LINA v. DIZON PANO, G.R. No. 129093, 8/30/01 Quisumbing, J. Faets: On December 29, 1995, respondent Tony Calvento was ap- pointed agent by the Philippine Charity Sweepstakes Office (PCSO) to install Terminal OM 20 for the operation of lotto. He asked Meyor Calixto Cataquiz of San Pedro, Laguna, for a mayor's permit to open the lotto outlet which was denied on the ground that an ordinance was passed by the Sangguniang Panlalawigan of Laguna entitled Kapasiyahan Blg. 508, T. 1995 on September 18, 1995, which reads: “TSANG KAPASIYAHAN TINUTUTULAN ANG MGA “ILLE- GAL GAMBLING” LALO NA ANG LOTTO SA LALAWIGAN NG LAGUNA” —GENERAL PROVISIONS 67 Basie Principles Held: Petitioners contend that the assailed resolution is a valid policy declaration of the Provincial Government of Laguna of its vehement odjection to the operation of lotto and all forms of gambling. It is like- wise a valid exercise of the provincial government's police power un- der the General Welfare Clause of Republic Act 7160. According to the mayor, he based his decision on the above-men- tioned ordinance. The ordinance, however, merely states the “objec- tion” of the council to the said game. It is but a mere policy state- ment on the part of the local council, which is not self-executing. Nor could it serve as a valid ground to probibit the operation of the lotto system in the province of Laguna. As a policy statement expressing the local government's objec- tion to the lotto, such resolution is valid. This is part of the local gov- emment’s autonomy to air its views which may be contrary to that of the national government's. However, this freedom to exercise contrary vews does not mean that local governments may actually enact ordi- nances that go against laws duly enacted by Congress. Given this premise, the assailed resolution in this case could not and should not be interpreted as a measure or ordinance prohibiting the operation of lotto. ‘The game of lotto is a game of chance duly authorized by the national government through an Act of Congress. Republic Act 1169, as amended by Batas Pambansa Big. 42, is the law which grants a franchise to the PCSO and allows it to operate the lotteries. In our system of government, the power of local government units to legislate and enact ordinances and resolutions is merely a delegated power coming from Congress. As held in Tatel vs. Virac, 207 SCRA 157, ordinances should not contravene an existing statute en- acted by Congress. SEC. 17. Basic Services and Facilities. — (a) Local government units shall endeavor to be self- reliant and shall continue exercising the powers 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. Local government units shall likewise exercise such other powers and discharge such other functions and responsibilities as are necessary, appropriate, or incidental to efficient and effective provision of the basic services and facilities enumerated herein.68 (b) ‘THE LOCAL GOVERNMENT CODE OF 1991 Annotated Such basic services and faciliti but are not limited to, the following: @ (2) For a Barangay: @ Agricultural support services which include planting materials distribu- tion system and operation of farm produce collection and buying stations; (i) Health and social welfare serv- ices which include maintenance of barangay health center and day-care center; (iii) Services and facilities related to general hygiene and sanitation, beautifi- cation, and solid waste collection; (iv) Maintenance of “katarungang pambarangay”; (v) Maintenance of barangay roads and bridges and water supply systems; (vi) Infrastructure facilities such as multipurpose hall, multi-purpose pave- ment, plaza, sports center, and other simi- lar facilities; (vii) Information and reading center; and (viii) Satellite or public market, where viable; For a Municipality: (i) Extension and on-site research services and facilities related to agricul- ture and fishery activities which include dispersal of livestock and poultry, finger- lings, and other seeding materials for aquaculture; palay, corn, and vegetable seed farms; medicinal plant gardens; fruit tree, coconut, and other kinds of seedling nurseries; demonstration farms; quality control of copra and improvement andGENERAL PROVISIONS Basic Prineiples development of local distribution chan- nels, preferably through cooperatives; in- ter-barangay irrigation systems; water and soil resource utilization and conser- vation projects; and enforcement of fish- ery laws in municipal waters including the conservations of mangroves; Gi) Pursuant to national policies and subject to supervision, control and review of the DENR, implementation of community-based forestry projects which include integrated social forestry pro- grams and similar projects; management and control of communal forests with an area not exceeding fifty (50) square kilometers; establishment of tree parks, greenbelts, and similar forest develop- ment projects; rs (ii) Subject to the provisions of Title Five, Book I of this Code, health services which include the implementation of pro- grams and projects on primary health care, maternal and child care, and com- municable and non-communicable disease control services; access to secondary and tertiary health services; purchased of medicines, medical supplies, and equip- ment needed to carry out the services herein enumerated; (iv) Social welfare services which in- clude programs and projects on child and youth welfare, family and community wel- fare, women’s welfare, welfare of the eld- erly and disabled persons; community- based rehabilitations programs for va- grants, beggars, street children, scaven- gers, juvenile delinquents, and victims of drug abuse; livelihood and other pro-poor projects; nutrition services; and family planning services; 69‘THE LOCAL GOVERNMENT CODE OF 1991 Annotated (v) Information services which in- clude investments and job placement in- formation systems, tax and marketing in- formation systems; and maintenance of a public library; (vi) Solid waste disposal system or environmental management system and services or facilities related to general hygiene and sanitation; (vii) Municipal buildings, cultural centers, public parks including freedom parks, playgrounds, and sports facilities and equipment, and other similar facili- ties; (viii) Infrastructure facilities intend- ed primarily to service the needs of the residents of the municipality and which are funded out of municipal funds includ- ing, but not limited to, municipal roads and bridges; school buildings and other, facili- ties for public elementary and secondary schools; clinic, health services; communal irrigation, small water impounding projects and other similar projects; fish ports; artesian wells, spring development, rainwater collectors and water supply sys- tems; seawalls, dikes, drainage and sewer- age, and flood control; traffic signals and road signs; and similar facilities; (ix) Public markets, slaughterhouses and other municipal enterprises; (x) Public cemetery; (xi) Tourism facilities and other tour- ist attractions, including the acquisition of equipment, regulations and supervision of business concessions, and security serv- ices for such facilities; and (xii) Sites for police and fire stations and substations and the municipal jail;GENERAL PROVISIONS Basie Principles (3) For a Province: (@) Agricultural extension and on- site research services and facilities which include the prevention and control of plant and animal pests and diseases; dairy farms, livestock markets, animal breeding stations, and artificial insemination centers; and assistance in the organiza- tion of farmers’ and fishermen’s coopera- tives and other collective organizations, as well as the transfer of appropriate tech- nology; (ii) Industrial research and develop- ment services, as well as the transfer of appropriate technology; (ii) Pursuant to national policies _and subject to supervision, control and review of the DENR, enforcement of for- estry laws limited to community based forestry projects, pollution control law, small-scale mining law, and other laws on the protection of the environment; and mini-hydro electric projects for local pur- poses; (iv) Subject to the provisions of Title Five, Book I of this Code, health services which include hospitals and other tertiary health services; (v) Social welfare services which in- clude programs and projects on rebel returnees and evacuees; relief operations; and population development services; (vi) Provincial buildings, provincial jails, freedom parks and other public as- sembly areas, and other similar facilities; (vii) Infrastructure facilities intended to service the needs of the residents of the province and which are funded out of pro- vincial funds including, but not limited to,, (4) THE LOCAL GOVERNMENT CODE OF 1991 Annotated provineial roads and bridges; inter-mu- nicipal waterworks, drainage and sewer- age, flood control, and irrigation systems; reclamation projects; and similar facili- ties; (viii) Programs and projects for low- cost housing and other mass dwellings, ‘except those funded by the Social Security System (SSS), Government Service Insur- ance System (GSIS), and the Home Devel- opment Mutual Fund (HDMF): Provided, ‘That national funds for these programs and projects shall be equitably allocated among the regions in proportions to the ratio of the homeless to the population; (ix) Investment support services, in- cluding access to credit financing; (x) Upgrading and modernization of tax information and collection services through the use of computer hardware and software and other means; (xi) Inter-municipal telecommunica- tions services, subject to national policy guidelines; and (xii) Tourism development and pro- motion programs; For a City: All the services and facilities of the mu- nicipality and province, and in addition thereto, the following; @) Adequate communication and trans- portation facilities; (ii) Support for education, police and fire services and facilities; © Notwithstanding the provisions of subsec- tion (b) hereof, public works and infrastructure projects and other facilities, programs and servicesGENERAL PROVISIONS Basic Principles funded by the National Government under the an- nual General Appropriations Act, other special laws, pertinent executive orders, and those wholly or partially funded from foreign sources, are not covered under this Section, except in those cases where the local government unit concerned is duly designated as the implementing agency for such projects, facilities, programs, and services. (a) The designs, plans, specifications, testing of materials, and the procurement of equipment and materials from both foreign and local sources necessary for the provision of the foregoing serv- ices and facilities shall be undertaken by the local government unit concerned, based on national poli- cies, standards and guidelines. (e) National agencies of offices concerned shall devolve to local government units the respon- sibility for the provision of basis services and facili- ties enumerated in this Section within six (6) months after the effectivity of this Code. As used in this Code, the term “devolution” refers to the act by which the National Government confers power and authority upon the various lo- cal government units to perform specific functions and responsibilities. (® The National Government or the next higher level of local government unit may provide or augment the basic services and facilities as- signed to a lower level of local government unit when such services or facilities are not made avail- able or, if made available, are inadequate to meet the requirements of its inhabitants. (g) The basic services and facilities herein above enumerated shall be funded from the share of local government units in the proceeds of na- tional taxes and other local revenues and funding support from the National Government, its instrumentalities and government-owned or con- trolled corporations which are tasked by law to‘THE LOCAL GOVERNMENT CODE OF 1991 Annotated establish and maintain such services or facilities. Any fund or resource available for the use of local government units shall be first allocated for the provision of basic services or facilities enumerated in subsection (b) hereof before applying the same for other purposes, unless otherwise provided in this Code. (hb) Regional offices of nativual agencies or offices whose functions are devolved to local gov- ernment units as provided herein shall be phased out within one (1) year from the approval of this Code. Said national agencies and offices may estab- lish such field units as may be necessary for moni- toring purposes and providing technical assistance to local government units. The properties, equip- ment, and other assets of these regional offices shall be distributed to the local government units in the region in accordance with the rules and regulations issued by the Oversight Committee created under this Code. () The devolution contemplated in this Code shall include the transfer to local government units of the records, equipment, and other assets and personnel of national agencies and offices corre- sponding to the devolved powers, functions, and responsibilities. Personnel of said national agencies or offices shall be absorbed by the local government units to which they belong or in whose areas they are as- signed to the extent that it is administratively viable as determined by the said oversight commit- tee: Provided, That the rights accorded to such per- sonnel pursuant to civil service law, rules and regu- lations shall not be impaired; Provided, further, that regional directors who are career executive serv- ice officers and other officers of similar rank in the said regional offices who cannot be absorbed by the local government unit shall be retained by the Na- tional Government, without any diminution of rank, salary or tenure.GENERAL PROVISIONS Basie Principles (To ensure the active participation of the private sector in local governance, local govern- ment units may, by ordinance, sell, lease, encumber, or otherwise dispose of public economic enterprises owned by them in their proprietary capacity. Costs may also be charged for the delivery of basic services or facilities enumerated in this See- tion. SEC. 18. Power to Generate and Apply Re- sources. — Local government units shall have the power and authority to establish an organization that shall be responsible for the efficient and effec- tive 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 for their use and ‘disposition and which shall be retained by them; to have a just share in national taxes which shall be automatically and directly released to them without need of any further action; to have an eq- uitable share in the proceeds from the utilization and development of the national wealth and re- sources within their respective territorial jurisdic- tions including sharing the same with the inhabit- ants by way of direct benefits; to acquire, develop, lease, encumber, alienate, or otherwise dispose of real or personal property held by them in their pro- prietary capacity and to apply their resources and assets for productive, developmental, or welfare purposes, in the exercise or furtherance of their governmental or proprietary powers and functions and thereby ensure their development into self-re- liant communities and active participants in the attainment of national goals. SEC. 19. Eminent Domain. — A local govern- ment unit may, through its chief executive and act- ing 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 s— 76 ‘THE LOCAL GOVERNMENT CODE OF 1991 | “Annotated 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 imme- diately take possession of the property upon the filing of the expropriation proceedings and upon making a deposit with the proper court of at least fifteen percent (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. A. Comments This is an express grant of the power of eminent domain to local Votan? B. Decided Cases | 1, The assessed value of a property cannot be made the sole basis of just compensation since it constitutes only a percentage of its current fair market value. j j | MUNICIPALITY OF DAET v. CA, 93 SCRA 503, 10/18/79 Guerrero, J. Facts: Petitioner filed an expropriation case against private respond- ent, Invoking Presidential Decree No. 42, petitioner argued that the just compensation must be limited to the assessed value of the prop- | erty sought to be expropriated. Held: ‘The assessed value cannot be the basis of just compensation. The Decree fixes only the provisional value of the property to serve as basis for the immediate occupancy of the property being expropriated. | 2. ‘The Sangguniang Panlalawigan is without authority to disapprove a municipal resolution authorizing the mayor to initiate expropriation proceedings since a municipality has the power to exercise the right of eminent domain.GENERAL PROVISIONS "1 Basic Prineiples MODAY v. CA 268 SCRA 586, 2/20/97 Romero, J. Facts: The main issue presented in this case is whether a munici- pality may expropriate private property by virtue of a municipal reso- lution which was disapproved by the Sangguniang Panlalawigan. Held: The Municipality of Bunawan’s (Agusan del Sur) power to ex- eteise the right of cminent domain is not disputed as it is expressly provided for in Batas Pambansa Blg. 337, the Local Government Code in force at the time expropriation proceedings were initiated. ‘The Sangguniang Panlalawigan's disapproval of Municipal Reso- lution No. 43-89 is an infirm action which does not render said reso- lution null and void. The law, as expressed in Section 153 of B.P. Big. 387, grants the Sangguniang Panlalawigan the power to declare a mu- nicipal resolution invalid on the sole ground that it is beyond the power of the Sangguniang Bayan or the Mayor to issue, Thus, the Sanggu- niang Panlalawigan was without the authority to disapprove Munici- pal Resolution No. 43-89 for the Municipality of Bunawan clearly has the power to exercise the right of eminent domain and its Sangguniang Bayan the capacity to promulgate said resolution, pursuant to the earlier-quoted Section 9 of BP. Blg. 387. Perforce; it follows that Reso- lution No. 43-89 is valid and binding and could be used. 3. The power of eminent domain by LGUs may be effected only by ordinance not by a mere resolution MUNICIPALITY OF PARANAQUE v. V.M. REALTY CORPORATION, 292 SCRA 678, 7/20/98 Panganiban, J. Facts: Pursuant to Sangguniang Bayan Resolution No. 93-95, the Mu- nicipality of Paraiiaque filed a Complaint for expropriation against Private Respondent VM. Realty Corporation, over two parcels of land Iceated at Wakas, San Dionisio, Parafaque, Metro Manila. Allegedly, the complaint was filed “for the purpose of alleviating the living con- ditions of the underprivileged by providing homes for the homeless through a socialized housing project.” The RTC of Makati, issued an Order giving it due course. Act- ‘ing on petitioner’s motion said court issued an Order, authorizing pe- titioner to take possession of the subject property upon deposit: with its clerk of court of an amount equivalent to 15 percent of its fair mar- ket value based on its current tax declaration. Private respondent filed its Answer containing affirmative defenses and a counterclaim, alleging in the main that (a) the com-78 THE LOCAL GOVERNMENT CODE OF 1991 Annotated plaint failed to state a cause of action because it was filed pursuant to a resolution and not to an ordinance as required by RA 7160. Held: The following essential requisites must concur before an LGU can exercise the power of eminent domain: 1. Anordinance is enacted by the local legislative council au- thorizing the local chief executive, in behalf of the LGU, to exercise the power of eminent domain or pursue expropriation proceedings over a particular private property. 2. The power of eminent domain is exercised for public use, purpose or welfare, or for the benefit of the poor and the landless. 3. ‘There is payment of just compensation, as required under Section 9, Article III of the Constitution, and other pertinent laws. 4. Avalid and definite offer has been previously made to the ‘owner of the property sought to be expropriated, but said offer was not accepted. In the case at bar, the local chief executive sought to exercise the power of eminent domain pursuant to a resolution of the munici- pal council. Thus, there was no compliance with the first requisite that the mayor be authorized through an ordinance. We are not convinced by petitioner's insistence that the terms “resolution” and “ordinanee” are synonymous. A municipal ordinance is different from a resolution. An ordinance is a law, but a resolution is merely a declaration of the sentiment or opinion of a lawmaking body on a specific matter. An ordinance possesses a general and per. manent character, but a resolution is temporary in nature, Addition- ally, the two are enacted differently — a third reading is necessary for an ordinance, but not for a resolution, unless decided otherwise by a majority of all the Sanggunian members. WHEREFORE, the petition is hereby DENIED without preju- dice to petitioner’s proper exercise of its power of eminent domain over subject property, 4. Proper party to appeal the dismissal of expropriation ee ee | proceedings is the municipality which filed the expropriation case. ‘The petitioner barangay, which is a different political entity by it- self cannot continue the expropriation case, BARANGAY MATICTIC v. ELBINIAS 148 SCRA 83, 2/27/87 Alampay, J. Facts: Subject of the petition is the Order of the then CFI of Bulacan, dismissing without prejudice, Civil Case No. SM-234, entitled “Mu- nicipality of Noreagaray vs. JJose Serapio.”i GENERAL PROVISIONS 79 Basic Principles {he case is an expropriation proceeding filed by the Municipal- ty of Norzagaray which the public respondent Judge dismissed on the Sround that at the time the original complaint was filed, the plaintiff Municipality had not yet obtained the requisite authority from the Department Head or Office of the President, as required in Section 2245 of the Revised Administrative Code. Geld: Regarding the annulment and setting aside ofthe orders of the CFI dismissing the expropriation proceedings, the proper party to ap- Peal the same or seek a review of such dismissal, would be she Munici- pality of Norzagaray, Petitioner Barrio Matictic, which s a differ vs Political entity, and although a part and parcel ofthe aforesaaa munici- progr far as said municipality is concerned, became final. The ae propriation case ceased to exist and there is consequently no more pro- »eeding wherein Barangay Matietic may possibly intervene We.are constrained to reject petitioner's averment that public Fabandent Judge “acted with grave and manifest abuse of diserctrecs Firstly, nothing is lost to the petitioner barangay. I at all petitioner Gan rightfully establish that it is allowed by law to institake 4 sepa- tang And independent action of its own, then there would be ne Sckily for it to intervene in the case initiated by the Municipality of Rorzagaray which is now apparently no longer interested ne continu- ins the expropriation proceedings. The dismissal of the expropriation case was without prejudice. PROVINCE OF CAMARINES SUR v. CA 222 SCRA 173, 5/17/93 Quiason, J,————— 80 THE LOCAL GOVERNMENT CODE OF 1991 Annotated contiguous to the provincial capitol site, in order to establish a pilot farm for non-food and non-traditional agricultural crops and a hous- ing project for provincial government employees. Governor Luis R. Villafuerte, filed two (2) separate cases for ex- propriation against Emesto N. San Joaquin and Efren N. San Joaquin, at the RTC of Trial Court, Pili, Camarines Sur. Held: Modernly, there has been a shift from the literal to a broader interpretation of “public purpose” or “public use” for which the power of eminent domain may be exercised. The old concept was that the condemned property must actually be used by the general public (eg. roads, bridges, public plazas, ete.) before the taking thereof could sat- isfy the constitutional requirement of “public use.” Under the new concept, “public use” means public advantage, convenience or benefit, which tends to contribute to the general wel- | fare and the prosperity of the whole community, like a resort complex for tourists or housing project. (Heirs of Juancho Ardano v. Reyes, 126 SCRA 220, etc.) ‘The expropriation of the property authorized by the questioned | resolution is for a public purpose. The establishment of a pilot devel- opment center would inure to the direct benefit and advantage of the people of the Province of Camarines Sur. Once operational, the center would make available to the community invaluable information and | technology on agriculture, fishery and the cottage industry. Ultimately, the livelihood of the farmers, fishermen and craftsmen would be en- hanced. The housing project also satisfies the public purpose require- | ment of the Constitution. As held in Sumulong v. Guerrero, 154 SCRA 461, “Housing is a basic human need.” Section 9 of B.P, Blg. 337 (Local Gov't Code of 1983) does not intimate in the least that local government units must first secure the approval of the Department of Land Reform for the conversion of lands from agricultural to non-agricultural use, before they can insti- tute the necessary expropriation proceedings. Likewise, there is no provision in the Comprehensive Agrarian Reform Law which expressly subjects the expropriation of agricultural lands by local government / ‘units to the control of the DAR. ‘To sustain the Court of Appeals would mean that the local goy- ernment units can no longer expropriate agricultural lands needed for the construction of roads, bridges, schools, hospitals, ete., without first applying for conversion of the use of the lands with the DAR, because all of these projects would naturally involve a change in the land use. In effect, it would then be the DAR to scrutinize whether the expro- priation is for a public purpose or public use.GENERAL PROVISIONS 81 Basic Principles ‘The CA decision is set aside insofar as it requires the Province of Camarines Sur to obtain the approval of the DAR to convert or re- classify private respondents’ property from agricultural to non-agri- caltural use. 6 Section 19 of R.A. No. 7160, expressly provides that just compensation shall be determined as of the time of actual taking and not as of the date of the filing of the complaint. THE CITY OF CEBU y. DEDAMO G.R. No. 142971, 5/7/02 Davide, Jr., C.J. Facts: On 17 September 1993, petitioner City of Cebu filed a com- plaint for eminent domain against respondents spouses Apolonio and Blasa Dedamo alleging that it needed of respondents properties for a public purpose, i.e., for the construction of a public road which shall serve as an access/relief road of Gorordo Avenue to extend to the Gen- eral Maxilum Avenue and the back of Magellan Iaternational Hotel Roads in Cebu City. ‘The total area sought to be expropriated is 1,624 square meters with an assessed value of P1,786,400. Petitioner deposited with the Philippine National Bank, P51,156 representing fifteen percent (15%) of the fair market value of the property to enable the petitioner to take immediate possession of the property pursuant to Section 19 of RA, No, 7160. Respondents, filed a motion to dismiss the complaint because the purpose for which their property was to be expropriated was not for‘a publie purpose but for the benefit of a single private entity, the Cebu Holdings, Ine, Petitioner could simply buy directly from them the property at its fair market value if it wanted to, just like what it did with the neighboring lots. Besides, the price offered was very low in light of the consideration of P20,000 per square meter, more or less, which petitioner paid to the neighboring lots, Finally, respondents alleged that they have no other land in Cebu City. On the basis of the commissioners’ report and after due delib- eration thereon, the trial court rendered its decision directing the City to pay respondents P24,865,930. The CA affirmed the RTC decision. Petitioner filed with us the petition for review. It raises the sole issue of whether just compensation should be determined as of the date of the filing of the complaint, It asserts that it should be, which in this case should be 17 September 1993 and not at the time the