07/07/2018 - Delegated to the DILG Secretary the general supervision

over other units

PUBLIC CORPORATION LAW - Distinguish supervision from control
Creation, Conversion, Division, Merger or Dissolution of LGUS  Control – power of an official to alter,
modify, nullify or set aside what a
- Types of LGUS subordinate officer had done in the
 Autonomous Regions performance of his duties and substitute the
 Provinces judgment of the former for that of the latter.
 Cities  Supervision – the power of an officer to see
 Municipalities that subordinate officers perform their duties
 Barangays (Sec. 1, Art. X, 1987 Constitution) - IRA shares would include other collections from other
o MMDA v. Garin (2005) collecting agencies
o MMDA v. Bel-Air - Sub-types of Cities
Association  Highly-Urbanized Cities (HUCs) (does not
 MMDA is not a local participate in provincial electoral process)
government, no  Independent Component Cities (ICCs) (does
authority to enact not participate in provincial electoral
ordinances, no process)
regulatory and  Component Cities (CCs)
governmental powers, - 1991 Local Government Code is a curative law
not a political - The President cannot create local governments
subdivision, not a - Sec. 452 of the LGC
legislative body - February 2, 1987 – date of ratification of the 1987
created with no Constitution, the date of the casting of votes
plebiscite, only an - Conversion to HUC in between Feb. 2, 1987 and Jan. 2,
administrative office 1992, Mandaue City can participate in provincial electoral
thus can only process
discharge - Authority to Create LGUs (Sec. 6, RA 7160) and LGs
administrative within ARMM (RA 9054)
functions, under the  Congress
control of the  Local Sanggunian
President  Regional Assembly
- The President exercises general supervision over local  (Sec. 19, Art. IV – declared by SC
government units (provinces, cities) as unconstitutional. A local unit
cannot create a national office)
- Congress can create any political subdivisions and can also Metropolitan
delegate it but only to the creation of barangays with Political
respect to Sangguniang Pambarangay and Sangguniang Subdivisions
Panglungsod and HUCs)
Municipality 2.5 M (Ave. And 25K And 50 sq
- Only the Congress can create a legislative district
(LIP) for 2 km except if
- SEMA case consecutive an island
- Aquino v. Mayor Robredo case preceding
- Requirement of creation of legislative districts years)
- REQUIREMENTS (provided by the Local Government Component 100 M RA And 150K Or 100 sq
Code only) Cirt (I + P or 9009 (June km
LA) 30, 2001)
 Law
[exclusive of
 Verifiable Indicators of Viability (income, IRA]
population, area) HUD (IP) 50 M (inc of And 200K
 Plebiscite IRA)
 No conflict arises with any provision of the Province (I + 20 M (inc of And 250K Or 2k sq km
Constitution (SEMA v. COMELEC, 2005) PPO) IRA) contiguous
- No local government, no plebiscite territory
(Except:
- Determine if it is a political subdivision of the State to
Art. 9 [2]
determine if there is a need for a plebiscite IRA with
- Administrative Regions are not political subdivisions more than
- To create a region, there must be at least two (2) local one island
governments [Non-
- Legislative districts are not political subdivisions, so no Contiguity])
plebiscite
- Who participates in the plebiscite? Political units directly - There is no automatic dissolution, there must be a
affected (1987, Constitution) plebiscite
- Why do we need to conduct a plebiscite? There is a
material change in the political rights and economic rights - Beginning of Corporate Existence
of the local governments directly affected as well as the - GR: Upon Election and qualification of its Chief Executive
people therein (Supreme Court) and a majority of the members of its sanggunian
(Bagabuyo v. COMELEC, G.R. No. 176970, Dec. 8, 2008)
LGU INCOME POPULATION LAND  “Upon qualification” – Taking of an Oath of
AREA Office or by “commencing” in the
Barangay X 2k/5k (MM; X performance of duty (having assumed office)
(P) Special
 - EXCEPTION: Unless some other time is fixed by the law or
ordinance creating it
- Municipality – 8 sanggunian members
- City – 10 sanggunian members
07/21/2018
Power of LGUs
- Interpretation of LGU Powers – weighed in favor of
autonomy (San Juan v. CSC, G.R. No. 92299, April 29,
1991)
- Governmental Powers
1. Police Power (Sec. 16, R.A. 7160)
2. Eminent Domain (Sec. 19, R.A. 7160)
3. Taxation
- Sec. 16 – Police Power (General Welfare Clause)
 delegation of the State to the LGUs
 promotion of general welfare
 legislative in character
 enabling ordinance from the sanggunian
(council) – regulating ordinance
 primarily lodged to the Congress
 delegated power
 salus populi est suprema lex
 two branches:
1. general legislative power
2. police power proper
 initiative – people directly enacts
 referendum – Congress submits the law to
the people for approval
 recall – Sec. 60 of the 1987 Constitution
related to Sec. 88 of the Omnibus Code
 requisites for proper exercise of police
power:
1. lawful subject
2. lawful method – means employed
to achieve the goal
*there must be concurrence of the
two otherwise, absence of one is an
invalid exercise of police power
 reasonable necessary
- Zoning Classification through a Zoning Ordinance
1. Comprehensive Development Plan (CDP, 6-
year plan) – responsibility of the Local Chief
Executive
2. Comprehensive Land Use Plan – sanggunian
- authority to convert lands – not within the authority of the
LGU but of the national government
- authority to reclassify use of lands and buildings – function
of the LGU through the sanggunian
- Sec. 447 and 448 – Abatement of Nuisance – within the
authority of the LGU relate to Art. 669 of the Civil Code –
Abatement of Nuisance Per Se with Judicial Intervention
- Business Permit – regulatory power or measure
- Law Firm – no business permit as it is a practice of
profession
- if self-owned, no business permit as it is a direct
consequence for the practice of profession
- Closure and Opening of Roads – General Rule: Land
roads used for public service are considered public property
under the absolute power of Congress. As such, LGUs
have no authority to control or regulate their use.
Exception: Sec. 21 – Delegate to the LGUs for the control
of local roads. (Figuracion v. Sps. Cresenciano, G.R. No.
155688, November 28, 2007)
- Permanent:
 ordinance – 2/3 vote from the sanggunian
  simple majority *if not accepted, mayor goes to the sanggunian
 absolute majority to ask for authority to expropriate
*if the law is silent, use simple - LINA Law
majority - Sec. 9 and 10 of R.A. 7279 – UDHA, Lands for Socialized
 provisions for maintenance of public safety Housing
 substitute for the public facility that is subject 1. if there is government land, do not get from the
to closure, if necessary private
 property may be used or conveyed for any 2. availability of lands in public domain
purpose which other real property may be 3. idle lands
lawfully used or conveyed provided, 4. outland areas
FREEDOM PARK shall be permanently - Jurisdiction:
closed without provision to transfer to a new  incapable of pecuniary estimation (RTC)
site  not involve the recovery of a sum of money
- Temporary:  regardless of the value of the subject
 actual emergencies property
 fiestas - Two Stages in Expropriation Proceedings:
 public activities 1. condemnation
 agricultural or fairs 2. determination of just compensation
 telecommunications and water work projects - Legality of Entry – Two Requisites:
- Sec. 19 – Eminent Domain 1. filing of complaint for expropriation
 legislative in character  form and substance - two requirements
 delegated power before a writ of possession may be issued
 genuine necessity – public character 2. deposit
 not an absolute power  15 % of the fair market value based on the
 limitation: current tax declaration
1. due process requirement  purpose: payment of damage
2. just compensation requirement - Returning the Property
- Essential Requisites of the Power to Expropriate (Rule  If the public use of the property is
67 of the Rules of Court) abandoned, does the property need to be
1. ordinance, not a resolution returned to its original owner? IT DEPENDS.
2. public use, purpose or welfare for the benefit of If there is a condition, it must be returned or
the poor and the landless if agreement is complete (absolute) title
3. just compensation ownership.
4. valid AND definite offer not accepted
 08/04/2018
QUIZ:
1. Describe the Police Power and Eminent Domain Power of
the LGUs
2. Cite the Requisites of the Proper Exercise of Police Power
3. Requisite to Concur in Properties Expropriated
4. Requisites for Immediate Entry of Local Government in
Expropriated Properties
- Local Government Unit:
 corporate body – agent of its inhabitants
 political body – agent of the State performing
governmental functions
- Sec. 22 – Corporate Powers
- Sec. 16
- Sec. 13
- Only liable for acts of officials acting in the discharge of
their duties
- Can LGUs hire lawyers to represent the municipalities? It is
only an optional position EXCEPT provinces and cities.
Only government lawyers can represent the LGUs. It is
optional as it depends upon the discretion of the mayor or
sanggunian. All mandatory positions must be filled before
making an optional position.
- Three Instances (G.R. No. 124354)
1. LGU is a party at first to other
2. When in a case involving a municipality, the
prosecutor is his wife
3. Jurisdiction of LGUs lies within the Supreme
Court
- Continuous Succession of Corporate Name
- Corporate Seal
- Sue and Be Sued
- Change of Seal
- Acquiring and Disposal of Properties
- Entering into Contracts
- Requisites for LGUs to enter into contracts:
1. LGU has power to enter into a contract
(expressly or impliedly) with a person or entity.
2. Entered into by a proper officer or officers.
Prior authorization from the Sanggunian to
the Local Chief Executive.
3. Comply with substantive requirements. If
expenditure of public funds, and there is no
appropriation, it is VOID.
 Actual appropriation
 Certification of availability of funds
4. Compliance of formal requirements of a
written contract e.g. Statute of Frauds from
the Sanggunian to the Local Chief Executive.
- Two Ways the Local Chief Executive Enters Into
Contract
1. by authority of sanggunian through a resolution
2. pursuant to a national law or local government
law (ordinance)
- If the first and third requisites are missing, it is an ultra
vires contract – null and void from the beginning
- if the second and fourth requisites are missing, it is a
defective or unenforceable contract, and it may be ratified
to be validated
- Sec. 22 (c) – Only the Local Chief Executive can enter into
a contract (Powers and Functions of a Mayor) in connection
with Sec. 456 (Vice Mayor) relate to the case of Vicencio v.
Villar: Vice Mayor may enter into a contract provided that
there is an express measure such as a law or an ordinance
authorizing him. Unlike the Mayor whereby it is an inherent
power granted to him.
- Quisumbing v. Garcia – Authority of a Governor to enter
into a contract
- Re-enacted Budget – budget for this year was not
approved so the budget from the previous year will be
used:
1. Salaries and Wages
2. Statutory or Contractual Obligations
3. Essential Operating Expenses
- If there is an ordinance authorizing the implementation of a
project or program
- Supreme Court said it depends if project has a particular
description e.g. cost and location, no need for another
authorization as an ordinance will suffice. If it has no
particular description, need for another authorization.
- GSIS v. Tarlac Province, when there is a perfected
contract by the previous official; it cannot be revoked by the
new official without consent of the other party (unilateral
revocation).
- Succession of Officials in a Barangay
1. Proper Appointing Authority
2. Certificate of Membership and Certificate of
Nomination – conditions sine qua non
- Sec. 45 (b)
- The highest official of political party is the National
Chairman and not the President
- If official does not belong to a political party
- Navarro v. CA, the first political party who loses the
position or representation shall give the replacement or
shall come from the same political party or the one who
caused the last vacancy, and shall follow the mandatory
requirements of certificate and authority to appoint.
- Fariñas v. Barba, recommendation and appointment.
- Whose appointment is valid? The governor’s or mayor’s?
Neither of them
- Nepotism applies only with appointive office and
recommending and designation. (Laurel v. CSC)
- barangay level – a non-partisan so follow Fariñas v. Barba
case (2010 Bar Question)
- Appointment of the Sanggunian Bayan Members and the
Mayor are conjoined powers
- The daughter of a Mayor recommended by a Sanggunian
Bayan Member. Is there a violation of law against
nepotism? NO, as it is an elective position. LGUs, 4th
degree (Sec. 7).
- Sec. 79
Constitution CS LGC
4 3 4
08/11/2018
- Long Quiz next meeting – Sec. 16, 19, 22, 44, 45, 46, 79
- LGUs Power of Taxation – Sec. 5, Art. 10, 1987
Constitution
- Congress – sets the guidelines and limitations
- If no LGU Code of 1991,
- Indirect Double Taxation
- Prohibited Direct Double Taxation – same authority, same
rate, same period, same jurisdiction
- Sec. 129 of LGC reiteration of Sec. 5, Art. 10 of 1987
Constitution
- Tax ordinance determines tax liability. If no tax ordinance,
no valid collection of taxes or revenues. (condition sine qua
non)
- Stages, Aspects and Phases of Taxation:
 Levying (Imposition) – Sec. 132, LGCT Tax
Legislation and Legislative Function
 Tax Administration – Executive Authority
through Treasurers
 Assessment and Collection
 Payment - Obligation of the Taxpayer
- Limitations:
 Inherent
 Public Purpose
 Exemption of Government
 Non-Delegability
 International Comity
 Situs of Taxation
 Constitutional
 Actually, Directly and Exclusively
Used for …
 Congressional
- Primary Purpose is to raise revenues
- 3 Main Sources of LGUS:
 Sec. 5 – LGUs Power of Taxation
 Sec. 6 – Share in national taxes
 Sec. 7 – Share in the proceeds of utilization
and development of the national wealth
- Underlying Basis of Taxation
 Necessity Theory
 It is a necessary burden to
preserve the State's sovereignty
and a means to give the citizenry an
army to resist aggression, a navy to
defend its shores from invasion, a
corps of civil servants to serve, public
improvements for the enjoyment of
the citizenry, and those which come
within the State's territory and
facilities and protection which a
government is supposed to provide.
 Lifeblood Doctrine
 Taxes are the lifeblood of the
government. Without taxes, the
government can neither exist nor
endure. The exercise of taxing power
derives its source from the very
existence of the State whose social
contract with its citizens obliges it to
promote public interest and the
common good.
 Symbiotic Relationship Theory/Benefit
Protection Theory
 It bases the power of the State to
demand and receive taxes on the
reciprocal duties of support and
protection. The citizen supports the
State by paying the portion from his
property that is demanded in order
that he may, by means thereof, be
secured in the enjoyment of the
benefits of an organized society.
- Sec. 130 – Fundamentals of Taxation
 Ability to pay
 All collections must be for public purpose
(from beginning to end)

- Sec. 133 – Common Limitations or Statutory or
Congressional Limitations on the Powers of the LGUs
- Sec. 149
- Sec. 133, subsection e – prohibits pass through fees and
applies only to goods and merchandise
- Not applicable to persons in the case of toll fees, as long as
roads are funded and constructed by the LGUs
- Business Tax is the biggest source of income of cities and
municipalities
- Municipalities – business and real property tax
- Three (3) Principles (basing on 133)
  Pre-emption rule – political subdivisions are  Amusement Tax –
pre-empted to exercise taxing powers 50% Provinces, 50%
reserved to national government. Items Municipalities
under Sec. 133 are excluded in taxing  Components of the
powers of LGUs (Reservation Principle or Real Property Tax
Exclusionary Rule)  Annual Ad
 Valorem Tax
- Congress cannot abolish the taxing powers of the LGUs (Sec. 233 )
- Sources of Income  SEF –Special
 Non-Traditional – loans, credits and other Education
forms of debits Fund
 Traditional – province - Sec. 186 – Residual Taxing Power of the LGUs
 Internal Sources – exercising taxing
powers
 Business Related
Taxes
 Fees and Charges on
Occupation
 Sec. 147 Recommendation from highest official and
 Sec. 148
If independent, with recommendation from the Sanggunian and
 Sec. 149
appointing authority (Farinas case)
 External Sources – LGUs are not
exercising taxing powers under the
LGC
 IRA Share – automatic Sources of Revenue
release to LGUs, no
- Taxes, fees and charges
conditions (Pimentel v.
- Internal revenue, share and allocation
Aguirre)
- Equitable share in the development of national wealth
 Franchise Tax – Local
Franchise Tax
different from that
granted by the
Congress
 Income Tax