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LOCAL GOVERNMENT LAW 2016 TRANSCRIPT

ATTY. AGRA  

SESSION 1 • All quasi-corporations are GOCCs and vice-versa


• Examples: Land Bank of the Philippines (which is also a
Q: Why do we have so many terms with regard to Local government financial institution); local water districts
Government Law? What is the value in differentiating them? • NOT examples: MIAA or BCDA (governmental
A: (1) Powers, (2) Remedies against the institutions, (3) Relationships instrumentalities)
(supervision, control), (4) Tax liabilities and exemptions (i.e., local
• Related Questions:
taxation purposes), (5) Role of COA.
o Can GIs be GOCCs?
§ As a general rule, no because a GI is not a
Q: There are 131 types of entities. Give me one type, define it, give
corporation, although it has corporate powers.
me an example, and give me something that does not fall under
it. § Exception: Boy Scouts of the Philippines

A1: Government Instrumentality A3: Local Government Unit/Municipal Corporation Proper/Public


Corporation
• Defining Characteristics:
o Created for a particular purpose under a particular • Elements:
charter (i.e., under a special law, not the Corporation (1) Created by the State (i.e., Congress or local legislative
Code) bodies)
o NOT integrated within the departmental framework o Sanggunian bayan cannot create a LGU
o It is endowed with some but not all corporate powers (2) Vested with sovereign powers and functions, and
o It must have its own special funds • Government of a portion of a State.
o NOT a corporation, although it has corporate powers • The legislative cannot delegate powers to create LGUs to
• Examples: MIAA – GI; Boy Scouts – both a GOCC & GI President
• Has both political (in relation to private and proprietary rights)
and territorial subdivisions
A2: Quasi-Corporation/GOCC • Example: Barangays
• Elements:
(1) Stock/non-stock, A4: Administrative Agency
(2) Government-owned, • Elements:
(3) Performing a public function, and (1) Any unit of the Government (department, bureau, office,
(4) Created by special charter or under the Corporation Code. instrumentality, GOCC, LGU or a district therein,
(2) Quasi-legislative, quasi-judicial, investigative powers
• Examples: DOF, DOST, GOCCs, GIs
                                                                                                                • NOT examples: Congress, Ateneo, San Miguel, Meralco
1 Sir Agra said there were 13 but we only were able to take note of 9 & we made an assumption as

to the 10th, as he mentioned it as well. • Related Questions:

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LOCAL GOVERNMENT LAW 2016 TRANSCRIPT
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o What’s the ONLY administrative agency with power


to legislate? A10: Sui Generis Entities
§ Local government units • Manila Economic and Cultural Office (MECO)
o Created under Corporation Code as a non-stock
A5: Public Office corporation
• Elements: o Not a GOCC (not owned by Government); also, not a
(1) Conferred by law, GI (since it was incorporated under Corporation
(2) Defined powers, Code)
(3) Some portion of the sovereign power is exercised o Sui Generis
(4) Relationship with the superior, and o Funds subject to COA
(5) Continuing and permanent in nature.
• Examples that are not administrative agencies: Congress, Q: What are the different kinds of relationships?
Courts, Office of the President A: The different kinds of relationships and examples of each are:
1) Supervision and control
A6: Quasi-public Corporation § DOF has control and supervision of Land Bank
• Private corporation with a public purpose § LTO has control and supervision over DOTC
• There is a franchise or certificate of public convenience 2) Supervision
required to operate its business § President has supervision over LGUs
• They are really private, but are quasi-public because they § Water districts are under the supervision of Local Water
(a) Offer public services or Utilities Administration
(b) Supply public wants. 3) Attachment
§ Extent of autonomy between department and attached agency
• Examples: Meralco, San Miguel Corporation’s subsidiaries
§ The department can be represented in the Board, but such ex
(franchises are needed for San Miguel water, power, etc.).
officio officer will only have one vote
§ The department agency does not control day-to-day operations
A7: State University
§ The department can only ask for periodical reports
A8: Quasi-municipal corporations § Examples: MIAA is an attached agency of DOTC; Philippine
Fisheries is an attached agency of DENR
• Public corporations created by the local government units
• NOT example: Leyte Metropolitan Water District previously Q: Are all public offices administrative agencies and vice versa?
claimed that it is a quasi-municipal corporation, but SC ruled it A: Not all public offices are administrative agencies. Examples of these
was a GOCC (because it was created by law, PD 198) are Congress, Courts, and the President.
However, all administrative agencies are public offices.
A9: Government Financial Institutions

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Q: What is attachment? • Philippine Ports Authority


A: Extent of authority between the department and attached agency is
such that A3: Administrative Agencies
• ALL in the list, except Ateneo, Congress, San Miguel, Meralco
Q: Why is a charter important?
A: It provides for – A4: LGUs
(1) Name of the entity,
(2) Purpose, A5: Sui Generis
(3) Powers, • MECO - Neither a GOCC, nor GI, but its fees are being
(4) Limits of the powers, audited by COA)
(5) Administrative structure,
• Boy Scouts of the Philippines -it’s both a GI and GOCC
(6) Relationship [supervision, attachment, control]
(7) Date of effectivity
A6: Under COA audit
Q: Why do GOCCs want to be GIs? • ALL in the list, except the private corporations (Ateneo,
A: Because GIs are entitled to certain tax exemptions (i.e., local real Meralco, San Miguel)
estate tax in the MIAA case).
A7: Municipal corporations
Q: Are all public corporations admin agencies? • Makati City
A: YES. • Municipality of Tuburan Cebu

Q: Are all admin agencies public corporations? A8: Local taxation


A: NO. Examples of these are the BIR, Government Instrumentalities • Ateneo, San Miguel, Meralco, VFP are subject to local tax
• EXCEPT GIs [MIAA, BCDA, Philippine Fisheries
Q: Give me a category and examples. Development Authority], LGUs, MECO (it is in Taiwan)

A1: Private corporations A9: Quasi-public corporations


• ADMU • Meralco
• San Miguel • San Miguel’s subsidiaries
• Meralco
A10: Attachment
A2: Government Instrumentalities
• MIAA A11: Supervision and control
• Philippine Fisheries Development Authority • DOTC (under the Office of the President)

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• BCDA (under the Office of the President) Administrative Agency


• Land Bank (under DOF) Land Bank of the Philippines GOCC; Administrative
Agency
A12: General supervision Bangko Sentral ng Pilipinas GOCC; Administrative
• LGUs (under the Office of the President) Agency
• MECO Barangay Saint Ignatius Municipal corporation;
Administrative Agency
A13: Independent constitutional commissions Quezon Province Municipal corporation;
Administrative Agency
• COMELEC
University of the Philippines GI under its charter
Classifications based on Assignment COMELEC Administrative agency
*Note: Not all these classifications were confirmed by Sir Agra Makati City Municipal corporation;
Administrative Agency
Government Institution Type Municipality of Tuburan Municipal corporation;
Manila International Airport Authority Government instrumentality; Administrative Agency
Administrative Agency Ateneo de Manila University Quasi-public corporation
Veterans Federation of the Philippines GOCC; Administrative Philippine Tourism Authority GOCC; Administrative
Agency Agency
Manila Economic and Cultural Office Sui generis entity; Congress Public Office
Administrative Agency San Miguel Quasi-public corporation
Boy Scouts of the Philippines GOCC & GI; Administrative Meralco Quasi-public corporation
Agency
Philippine Fisheries Development GI; Administrative Agency SESSION 2
Authority
Leyte Metropolitan Water District GOCC; Administrative Q: What are the requirements for making local governments?
Agency A: Income, land area, population.
Bases Conversion Development Government instrumentality; For barangay, population and land area must be present;
Authority Administrative Agency For component cities/independent component cities = population and
Department of Transportation and Administrative agency income, or income and land area;
Communications For province = population and income, or income and land area;
For municipality = population, income, and land area
National Telecommunications Administrative agency
Commission For highly urbanized cities = population and income
Note: Independent city = province has no control; President has
Land Transportation Office GI under DOTC;
supervision; for component cities = province has supervision.

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Q: How many types of cities are there? Q: Can Congress enact a law and say that the city is the basic
A: There are – political unit?
• HUCs – Income (higher qualification for HUCs) A: No. The barangay is the basic political unit, according to the
• Independent Component Cities –the President has authority & Constitution.
supervision
• Component Cities – this can vote for provincial officials and Q: Is Dinagat still a LGU now?
the province has direct supervision over the city A: No. Dinagat was made pursuant to an implementing rule which is
inconsistent with law. As has been learned from administrative law,
Q: If you have different types of cities, are there different types of IRRs cannot be inconsistent with law.
barangays?
A: No. Q: Can Congress add/subtract from the list of five?
A: Yes, but not through ordinary legislative powers (i.e., there needs to
Q: Are there different types of municipalities? be an amendment the Constitution).
A: Only one is unique – Pateros. Pateros is not under any province, but
is a municipality. It is the President who has direct supervision over Q: Does the Constitution provide for the term ‘local government
Pateros. unit’?
A: No, it provides for territorial and political subdivisions.
Q: Are there different type of provinces? Under the reading of Martin, the term LGU means the municipal
A: Yes. There are different types of provinces; the provinces within the corporation proper, Barangay, Municipality, City, Province, and
ARMM and outside ARMM are not the same. Autonomous Regions.
The provinces inside the ARMM are governed by a different set of laws
and are supervised by the ARMM’s central government. For provinces Q: What is the instrument that creates a LGU?
outside, they are under the supervision of the President. A: Charter.

Q: Can Congress provide for the creation of more autonomous Q: Is it possible to have a LGU without a charter?
regions? A: Yes. LGUs by prescription are –
A: NO. It’s only CAR and ARMM. Congress cannot add to the list (1) Created by executive fiat,
without making Constitutional amendments. (2) Existence was not judicially nullified (via quo warranto,
prescriptive period: 5 years),
(3) Continues to operate and exist after the 1992 LGC,
(4) There must be acquiescence or recognition
Q: Can Congress make just 4 types of LGUs? The 1991 LGC is thus a curative legislation. If judicially annulled in a
A: No. quo warranto case, the 1991 LGC will have no curative effect

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(Section 442[d], 1991 LGC). A LGU created by executive fiat which TWO CRITERIA to be granted the right to vote in a plebiscite: (1)
operated or functioned without interruption for a considerable length of time economic dislocation, and (2) plurality.
is considered a municipality by prescription (Municipality of Jimenez v.
Baz). Sub-Q1: What if a municipality is converted into an
independent city, do you need a plebiscite?
Q: Is there such a thing as a de facto LGU? A: Yes.
A: Yes. LGUs with de facto charters are de facto LGUs.
Sub-Q2: How about if you make an independent city to a
Q: What are the elements of a municipality created by component city, do you need a plebiscite?
prescription? A: Yes. Because certain rights and provisions, like the
A: The elements are – relationship with the province, would necessarily change.
1. No charter Furthermore, there is a material change.
2. Its existence was not declared void by the courts
3. There is a passage of time over which it existed Q: When is a LGU created, incorporated and when does its
4. It must function as a corporation corporate existence commence?
5. Acquiescence or recognition A: It is deemed created on the day its charter takes effect.
It is deemed incorporated when its charter is approved by a majority of
Q: How would you classify a LGU declared invalid by the courts? the votes cast in a plebiscite in the political units directly affected
A: It is inexistent, unless it is cured. Its corporate existence commences upon and qualification of its chief
In the case of Jimenez v. Baz, the name of the LGU was appended to the executive and majority of the members of its sanggunian
1987 Constitution.
*Note: sangguniang officials are not elective officials
Q: President creates a LGU in 1989, and there was no quo
warranto case filed. What is the status of said LGU? Q: Do you include water in the creation requirements?
A: It is de jure, because there is a curative provision in the LGC A: No, because it is land area, not territory, that is determinative.
(wherein LGUs created previous to the LGC are recognized) where
Congress passed a law recognizing it OR there was no judicial Q: What if there is a boundary dispute? What if a municipality is
nullification. converted into a city, who votes?*
A: Not the entire Metro Manila, but those inside the municipality to be
Q: Do we have a Novaliches City? converted.
A: No. Although there was a plebiscite in which the electorate was
composed of inhabitants who were (1) registered voters, (2) resident of *Note: This must be resolved before the plebiscite because it is a
Novaliches, and (3) even those residing outside. This plebiscite, prejudicial question.
however did not prosper.

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Q: Will you have a distinct, separate personality upon conversion? Q: A lot of barangays in Pampanga are still covered in lahar. Are
A: Distinct, because there is a material change in the political and they now non-existent?
economic rights of the LGU. A: Although there are no inhabitants in these barangays, the barangays
are NOT automatically rendered non-existent. There must first be a
Q: Where do you file a case contesting the results of the plebiscite.
plebiscite)?
A: COMELEC division, because it is a judicial matter. The caption of Q: Under the LGC, there are municipal/city waters. Do we
the petition is plebiscite protest. include that in the determination of the city?
A: No, because the LGC provides that only the land area is counted.
Q: Who has the power to create a local government?
A: Congress does; this cannot be delegated to the President either. The Q: Is the IRA included in the creation & conversion of a LGU?
Constitution categorically provides that it is only the Congress which A: Yes. Note that the IRA is funding from government, which is
can create local governments. externally generated.
HOWEVER, not that there is an exception: sangguniang panlalawigan The general rule is that the internal revenue allotments (IRA) are
and sangguniang panlungsod can create barangays. (sangguniang bayan included in the created when the LGUs are created. This is because,
CANNOT create barangays). according to the case of Alvarez, IRA is part of the regular income.
However, IRAs are excluded for municipalities which will be converted
Sub-Q1: Can Congress dissolve the barangay created by a into a component city. In this case, funds must be internally generated.
province? This is provided for in a special law created for that purpose.
A: Yes, because the power of the barangay to create is only
delegated. Congress has plenary legislative power. Q: Is it required that the seat of government, population census
be in the Charter of a LGU?
Q: When will the corporate existence of a LGU commence? A: No. This is because these are only formal requirements.
A: Upon election and qualification of its local chief executive, and a
majority members of its sanggunian. Q: Can a Senator propose for the creation of a 17th city?
A: No. According to the case of Alvarez, creation of LGUs are of
Q: Do you include internal revenue allotment for purposes of considered local application. According to the Constitution, bills of
creation or conversion? local application must emanate from the House of Representatives.
A: Generally, Yes. The exception is when the conversion is from
municipality to component city, because there is a special law which Q: Can Congress enact laws listing the requirements for the
provides that requirement. creation of LGU?
A: Yes, based on the Constitution and the League of Cities case. Recall
that Congress has plenary authority.

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Q: Where do you file a case to protest a plebiscite? A: It entails that the central government relinquishes certain powers,
A: COMELEC Division. which are delegated to local governments, while others are retained by
the national government.
Q: What is the effect in personality when a municipality is
converted into an independent city? Q: Devolution v. deconcentration
A: They become distinct entities because there is a material change in A: Devolution is a mandatory process by which delegates the power
political and economic rights. and authority upon various local governments to perform specific
functions and responsibilities.
Q: A municipality that was converted into a city, now wants to Meanwhile, deconcentration is a legislative act and an important
become a component city, do you need a plebiscite? element of decentralization, whereby powers of the central government
A: Yes, according to the case of Miranda, there is a change in the are delegated to LGUs as a matter of policy..
relationship. A plebiscite is needed whether there is an “upgrade” or a Both devolution/deconcentration are mandatory, and both are time-
“downgrade.” They will now have to vote for the provincial elective bound. The recipients, however, are different. For example,
officials. deconcentration involves field offices (i.e., Region 1, Region 2; it is an
issue of accessibility).
Q: Can you call a plebiscite even if there is a boundary dispute?
A: No, settle the boundary issues first. Q: Can LGUs refuse devolved powers?
A: No. LGUs cannot refuse devolved powers, because devolution is
Q: Who can take cognizance of the case? mandatory. And part of what is devolved is personnel. Thus, if you are
A: The higher LGU, or the entity that has supervisory control of that a devolved personnel, you will no longer be a part of the national
area. If the law is silent, it is the RTC since the case is incapable of government, but a part of the local government.
pecuniary estimation.
Q: Is there a finite list of powers that are devolved?
SESSION 3 Yes, under the LGC. Devolution is power-specific. If it is not on the
list, the power remains with the national government.
Q: What is local autonomy?
A: It means a more responsive and accountable local government Q: Is there a finite list of powers that are deconcentrated?
structure instituted through a system of decentralization. It is No, they are not specifically stated.
responsive and accountable to both the national government, and the
constituents; decentralization presupposes delegation of powers. Q: Is there a list of delegated powers?
Yes, they are: power of taxation, police power, and power to
Q: What does the system of decentralization presuppose? expropriate. Other powers are either devolved or deconcentrated.

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*Note: Later in the Q&A, Sir Agra states that the power to legislate is A: False. According to the case of Atienza, the Vice Mayor can also
another delegated power. But he explicitly stated that there were only 3 appoint provided that (1) the employees belong to the sanggunian, and
delegated powers in this Session. (2) the appropriation of funds for salaries will come from the
sanggunian.
Q: What makes Quezon City a municipal corporation proper?
A: There are four elements: Q: When can the Mayor appoint an employee of a sanggunian?
(1) Legal creation, A: If the funds are not allocated for the sanggunian.
(2) Corporate name,
(3) Inhabitants, and Q: In relation to corporate succession, can previous contracts be
(4) Territory. cancelled by the new mayor?
A: Only with the consent of both parties.
Sub-Q1: Assuming there is a change of officers, will the LGU
continue? Q: Can there be unilateral rescission (by the new mayor)?
A: Yes, because of the rule of corporate succession. There is A: No. The real party to the contract is the local government.
thus no change in the corporate identity.
Q:What is the Two-fold character of government?
Q: Can Mayor #2 rescind the contracts entered into by Mayor #1? A: It is (a) Public (government); and (b)Private (proprietary).

A: The successor mayor, Mayor #2, cannot rescind all contracts. This, Q: When a mayor signs a contract, in what capacity is the local
however, is not an absolute prohibition. For example, when the government entering into that contract? For example a mayor
contract is ultra vires. signs a contract to purchase a bulldozer – in what character is the
In the case where Mayor #2 hopes to successfully rescind the contract, municipality entering into that contract?
he has the following options – A: Proprietary.
(1) Get the consent of both parties to rescind; or
(2) Go to court to seek rescission; or
(3) Get the consent of the sanggunian so that if the rescission is Sub-Q1: What if the dump truck is used to deliver sand,
unwarranted, the liability will not fall on Mayor #2 alone. which would be used to construct a municipal road?
A: Governmental [basis: case law].
Q: What is the only limitation that would restrain Congress’
allocation of powers to LGUs? *Note: The case was decided prior to the LGC, and the city
A: The 1987 Constitution. could not be sued without its consent.

Q: Mayor can appoint all the employees and officials in a city. Q: What is the party clause?

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A: It is the part of a contract which states, for example, “The City of The exceptions is that the Sangguniang panlalawigan’s employees are
Makati, duly authorized under charter (RA #), herein represented by appointed by the vice mayor.
(mayor) per sanggunian ordinance # __, herein referred to as the city.” HOWEVER, note that if the appropriation is outside sanggunian, the
power is vested in the mayor. If the appropriation is made within
Sub-Q1: Why is this important? sanggunian, then the power is with the vice mayor.
A: The mayor is an agent of the LGU.
Q: Who allocates the powers? Who makes the delineation?
Sub-Q2: Is it also correct to say that the LGU is an agent? Congress.
(Of the people or the national government)
A: It depends on the purpose. Referring to the earlier example, Sub-Q1: Can this be delegated?
if bulldozer is for public works, then it is governmental. If A: No.
looking at just the contract, proprietary.
Q: What is the main function of the mayor?
Why do we need to distinguish governmental v. proprietary? Administrative.
A: To determine delegability. Proprietary functions, for example, are
delegable to private entitites. Previously, there was also immunity from Q: What is the main function of the vice mayor, sanggunian?
suit for a LGU, if it exercised its governmental powers. This, however, A: Legislative.
no longer holds true - LGUs can now be sued even without their
consent. Q: Is there a separation of local government powers under the
constitution?
Sub-Q1: What powers are used when a municipality A: No. National only.
enacts a law?
A: Governmental. Q: Can the Congress merge these two powers by an act of
Congress?
Sub-Q2: Control over the police? A: YES. Such was the case in the 1983 LGC.
A: Governmental.
Can the President create a state? Case of the Bangsamoro
Sub-Q3: Entering into a contract with a coop for it to Juridical Entity under the MOA-AD?
manage the public market? Unconstitutional. it was a state in all but the name.
A: Proprietary.
Q: Can the Mayor preside over the session of a sanggunian?
Q: T/F. Mayor appoints all the local officials and employees of A: No, the Mayor cannot preside today because of the statutory system
the LGU. of separation of local powers found in the LGC. It is actually the Vice
A: False. The general rule is that the mayor appoints. Mayor who presides. HOWEVER, the LGC can be amended to abolish

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such separation of local powers. This is because there is no said system A: No. Is the case concerning the Bangsamoro Juridical Entity, the SC
found under the Constitution for LGUs. We only have a system of held that the BJE is a state in all but the name.
separation of national powers under the Constitution.
Q: Local autonomy means self-governance.
Q: Mayor Duterte wants to shift to a federal form of government. A: False. Local autonomy means qualified/limited, but with broad self-
Can that be done? governance.
A: NO. The Constitution is silent as to what our form of government
is. However, this does not mean that a federal form of government can Q: If local autonomy does not mean self-governance, how come
be provided for absent an amendment of the constitution for 7 reasons: ARMM can chart its own destiny?
(1) jurisprudence, (2) political history, (3) there is no mention of federal A: Although there is minimal supervision over ARMM, it is still subject
form of government in our Constitution, (4) the use of the term of to executive supervision.
subdivision, rather than “state,” (5) power of supervision of the
President. Sub-Q1: Can we amend the Charter of Makati, without
plebiscite?
Q: Distinguish unitary from federal. A: Yes.
A: In a federal government, each state has its own limited autonomy,
which it exercises independently of the federal government. LGUs Sub-Q2: Can we amend the Charter of ARMM, without
become similar to mini-states. In the Philippines, it has already been plebiscite?
said in a case that our LGUs are not empires within empires. A: No. ANY amendment requires a plebiscite. Thus, the
general rule is that all charters of all LGUs may be amended
Q: Differentiate between the autonomy of cities, municipalities, without plebiscite, except the ARMM.
barangays and ARMM.
A: The ARMM has political autonomy, which is greater than mere Q: What are the hierarchy of laws governing local governments?
administrative autonomy. However, there is still no absolute abdication A: The hierarchy goes –
of power to the ARMM – that would be federal in nature. 1) Constitution
As for the other LGUs, they have administrative autonomy and are still 2) Organic Act
accountable to the central government. 3) Local Government Code
4) Laws of the Regional Assembly
Q: Having a plebiscite answers two questions, what are these 2
questions? Q: Can the President create the Cordillera Autonomous Region?
A: (1) Whether or not we will have an autonomous region, and (2) what A: No, but he can create the Cordillera Administrative Region. The
will comprise said region. latter is just a region like NCR, Region 1, Region 2, etc.

Q: Can the President create a state? Q: Can you apply for a driver’s license within a municipality?

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A: No, it must be with the regional office of the LTO. Enforcement of national building Devolved
code
Q: If you want to operate a bus? Where would you secure the Socialized housing Shared
franchise?
A: The LTFRB. SESSION 4

Q: How come franchising of tricycle can be applied for in the Q: Can the LGU impose a curfew?
municipal level? A: There are two views on the matter.
A: Because the regulation of the tricycle has been devolved. VIEW #1: No. Under the centralist view of local autonomy, this is not
one of the express, implied, or necessary powers of the LGU under the
Q: How about the registration of tricycles, vehicle registration? LGC.
A: With the LTO. VIEW #2: Yes. According to the liberal view of local autonomy, as long
as it is for the general welfare and not violating the Constitution or
Q: Why make the above distinctions? statute, even if it is not expressly conferred then it can be done.
A: Because tricycle/vehicle registration is not a devolved power.
Q: Can the President suspend a Punong Barangay?
Q: What powers are being devolved? A: No. The President only has indirect supervision over barangays.
A: The delivery of basic services, Regulatory powers, Assets, Personnel. Component cities/municipalities have direct supervision over
barangays.
Q: Classify the following powers according to whether or not they
are devolved. Q: Can the President suspend Governor of Laguna?
A: A: Yes. President has direct supervision over provinces outside of
LTFRB giving power to LGU to Devolved autonomous regions (ARMM).
issue franchise for tricycles
Issuance of clearance for Devolved, if locally significant Q: Can the President/DILG Secretary/DOJ Secretary declare a
subdivisions BUT if the project is nationally tax ordinance illegal?
significant, the power remains A: President - no. DILG Secretary - no. DOJ Secretary - yes. Even if
with HLURB the President has direct supervision over LGUs, there is no law
Forfeiture of illegally logged Not devolved providing that President has such power over tax ordinances. The same
forestry products can be said for the DILG Secretary. On the contrary, the NIRC
Inspections regarding pollution Devolved explicitly provides that the DOJ Secretary has said power.
Regulation of cockfighting Devolved
Quarantine Devolved Q: Can the DOJ Secretary declare that a tax ordinance is
Meat inspection Devolved “confiscatory”?

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A: No. He can declare it illegal because it is a question of law; but when A: No. This would amount to control, involving substitution of
he declares it to be confiscatory, or contrary to general welfare, or judgment of the Sanggunian over that of the barangay.
excessive, it is a mixed question of fact and law, which is not within the
power of the DOJ Secretary to review. The latter goes into the wisdom Q: Under the law, a barangay can impost a fine up to P1k. A
of the ordinance. barangay provided for a fine of P1200. Can the Sanggunian direct
the barangay to decrease it to P600?
Q: How does one answer a question when confronted with an A: No. The sanggunian can only declare the ordinance illegal or ultra
issue of whether or not an executive official can perform a certain vires, but cannot direct the barangay to decrease the fine to a specific
act? amount because that would be tantamount to control.
A: First ask, is there a law? Assuming there is a law, is it a question of law or
a question of fact? Recall that supervision pertains only to legal questions, Q: What would be the manifestation of supervision?
not factual questions. A: The following powers –
(1) Power to review EOs/ordinances,
Q: Who has direct supervision over the various LGUs? (2) Power to discipline,
A: It depends. (3) Power to integrate local development plans,
Supervisor LGU over whom direct (4) Power to settle boundary disputes of supervised LGUs,
supervision is exercised (5) Power to accept resignations,
City and municipality Barangay (6) Power to fill vacancies in Sanggunian,
Province 1. Municipality (7) Power to approve leaves,
• EXC: Pateros, which is (8) Power to augment basic services.
supervised by the
President Q: Can a city give P10,000 for every judge within the jurisdiction?
2. Component cities A: As long as there is no law prohibiting the same.
• EXC: Metro Manila
President 1. Provinces, except the provinces Q: Is the President’s approval before a province can provide
inside the ARMM healthcare benefits to its constituents?
2. Autonomous regions A: No. There is no law requiring approval.
3. Highly urbanized cities
4. Independent component cities Q: Can the DBM impose a cap on LGU expenditures?
A: No. This is a substitution of their judgment for that of the LGU.
ARMM Provinces inside ARMM
An executive official cannot impose a limit where no limit is imposed
Q: Under the law, a barangay can impose a fine up to P1k. A
by law.
barangay provided for a fine of P800. Can the Sanggunian direct
the barangay to increase it to P1k.

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Q: T/F. The State exercises control over LGUs. A: The Laguna Lake Development Authority. According to case law,
A: This is qualifiedly true. The executive branch has only general the issue of fish pens was not just a local issue, but a cross-boundary
supervision over LGUs. But the legislative exercises control. issue. When there is a cross-boundary issue, the national government
should prevail.
Q: Can DAR require its prior approval before LGUs can
expropriate agricultural land? Q: Can a city have more than 1 cockpit?
A: No. A LGU has the power to expropriate. By imposing such a A: According to the Cockfighting Law, there can only be 1 cockpit per
requirement, when there is no law providing for such, the DAR’s city. Even if it is a devolved power, the LGU must still follow the law.
exercise would amount to control and not mere supervision. This
would violate the principle of local autonomy. Q: Can a Governor suspend the Mayor of a component city? Does
this amount to control?
Q: Can the DILG appoint an interim caretaker for the National A: Yes. The Governor has direct supervision over component cities.
Liga ng mga Barangay? Moreover, suspension does not amount to control, because the power
A: No. According to case law, this would amount to control and not to discipline is within the power of supervision. There is no substitution
mere supervision. Furthermore, this would constitute a violation of the of judgment involved; there is only a finding of guilt where due process
principle of local autonomy of the barangays, through the League (the is accorded.
Liga case).
Q: What is the basis for saying that Congress has power of control
Q: Can CDO ban the establishment of casinos within its over LGUs?
jurisdiction? Argument #1 of CDO is that LGC, a later law, A: Article VI, and Section 3, Article X of the Constitution.
repealed the law about gambling. Argument #2 of CDO is that it
violates principle of local autonomy. Q: Congress can provide that for Makati City, the Mayor (rather
than the Vice Mayor) will appoint employees in the Sanggunian.
A: No. PAGCOR has the power and authority to centralize gambling in A: Allowed, because this won’t prejudice the other cities.
the Philippines. On the first argument, the law on gambling is specific
while LGC is general; therefore, under the principles of statutory Q: Congress can provide for different criteria for Makati City with
construction, the law on gambling should prevail. On the second regard to the Internal Revenue Allotment.
argument, although this is a local issue, PAGCOR prevailed because A: Not allowed, because this would prejudice the other cities (i.e.,
there was a law. Makati could receive more than other cities, in violation of the equal
Remember – When there is a law, apply the law, whether local or protection clause).
national. If not, that is the time you apply statutory construction. LGUs
must follow the law, even if power is to devolve to them. Q: Can you have two Vice Mayors for QC?
A: Yes, if Congress amends QC’s charter. Anyway, it won’t HARM
Q: Who has the authority to demolish fish pens in Laguna Lake? Makati or the others.

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Q: Can you have 5-year term for provincial governor?


A: No. Under Article X of the Constitution, local elective officials,
except barangay officials which shall be determined by law, shall have 3                                                                                                                                                                                                                                          
health and safety, enhance the right of the people to a balanced ecology, encourage and support
year terms. the development of appropriate and self-reliant scientific and technological 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 convenience of their
Q: Is fire protection a devolved power? inhabitants.
A: Not right now. Congressional control. Sec. 19. Eminent Domain. - A local government unit may, through its chief executive and acting
pursuant to an ordinance, exercise the power of eminent domain for public use, or purpose or
welfare for the benefit of the poor and the landless, upon payment of just compensation, pursuant
Q: How come tricycle franchises are devolved among the LGUs, to the provisions of the Constitution and pertinent laws: Provided, however, That the power of
but not cable TV franchises? eminent domain may not be exercised unless a valid and definite offer has been previously made
A: Political question. to the owner, and such offer was not accepted: Provided, further, That the local government unit
may immediately take possession of the property upon the filing of the expropriation proceedings
and upon making a deposit with the proper court of at least fifteen percent (15%) of the fair
SESSION 5 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
Q: LGUs have inherent power. property.
A: No. otherwise local autonomy would mean self-government. LGUs Sec. 20. Reclassification of Lands. - (a) A city or municipality may, through an ordinance passed by
the sanggunian after conducting public hearings for the purpose, authorize the reclassification of
instead have express, implied, or incidental/necessary powers. agricultural lands and provide for the manner of their utilization or disposition in the following
cases: (1) when the land ceases to be economically feasible and sound for agricultural purposes as
Q: What are the sources of powers of LGUs? determined by the Department of Agriculture or (2) where the land shall have substantially greater
economic value for residential, commercial, or industrial purposes, as determined by the
A: The sources of powers of the LGUs include the Constitution, sanggunian concerned: Provided, That such reclassification shall be limited to the following
statutes, jurisprudence, charter. percentage of the total agricultural land area at the time of the passage of the ordinance: (1) For
highly urbanized and independent component cities, fifteen percent (15%); (2) For component
cities and first to the third class municipalities, ten percent (10%); and (3) For fourth to sixth class
municipalities, five percent (5%): Provided, further, That agricultural lands distributed to agrarian
Q: Do LGUs only possess delegated powers? reform beneficiaries pursuant to Republic Act Numbered Sixty-six hundred fifty-seven (R.A. No.
6657). otherwise known as "The Comprehensive Agrarian Reform Law", shall not be affected by
A: No, they can exercise residual powers (i.e., powers that are not the said reclassification and the conversion of such lands into other purposes shall be governed by
expressly granted, but can be implied from the powers granted) This is Sec. 65 of said Act. (b) The President may, when public interest so requires and upon
based on the liberal view of local autonomy. recommendation of the National Economic and Development Authority, authorize a city or
municipality to reclassify lands in excess of the limits set in the next preceding paragraph. (c) The
local government units shall, in conformity with existing laws, continue to prepare their respective
Q: Can Congress repeal Secs. 16, 19, and 202 of the LGC? comprehensive land use plans enacted through zoning ordinances which shall be the primary and
dominant bases for the future use of land resources: Provided. That the requirements for food
                                                                                                                production, human settlements, and industrial expansion shall be taken into consideration in the
2 Sec. 16. General Welfare. - Every local government unit shall exercise the powers expressly preparation of such plans. (d) Where approval by a national agency is required for reclassification,
granted, those necessarily implied therefrom, as well as powers necessary, appropriate, or such approval shall not be unreasonably withheld. Failure to act on a proper and complete
incidental for its efficient and effective governance, and those which are essential to the promotion application for reclassification within three (3) months from receipt of the same shall be deemed as
of the general welfare. Within their respective territorial jurisdictions, local government units shall approval thereof. (e) Nothing in this Sec. shall be construed as repealing, amending, or modifying
ensure and support, among other things, the preservation and enrichment of culture, promote in any manner the provisions of R.A. No. 6657.

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A: Yes. Police power (Sec. 16), eminent domain (Sec. 19), and power to A: When the law is clear.
reclassify land (Sec. 20) are all statutorily granted to LGUs, not
constitutionally granted, and therefore can be taken away. Q: How come the SC ruled differently in Buendia and in Javier?
A: In Buendia, the power expressly granted was maintenance of water
*Note: The power to tax is constitutionally granted to LGUs under Sec. works, and the power claimed is appropriation of water. In Javier, the
5, Art X, and therefore cannot be taken away by mere statute power expressly granted was the power to create offices, while the
power implied is the power to abolish office. In Buendia, the power to
Q: When do we use Sec. 53 of the LGC? appropriate water was denied as an implied power because the latter
A: Rules in interpreting provisions of the LGC are used when there is power falls within the jurisdiction of a national government agency. In
doubt as to the interpretation of the law. Sec 5, therefore, is useless Javier, the power to abolish was not given to a national government
when the law is clear. How to interpret: agency.

Powers (in general) In favor of local autonomy Q: What is police power? Is this a duty?
Police Power In favor of local autonomy A: It is the plenary right of the legislative to enact ordinances to protect
Eminent Domain Strictly construed against LGU the general welfare of the people. Police power is granted to LGUs via
Power to Tax Strictly construed against LGU the General Welfare Clause (Sec. 16, LGC). People have a right to
expect that the LGU will exercise this power for the general welfare od
Q: Aside from above, when else is a rule strictly construed against the people, because of the principle of dual agency. The LGU is not
LGUs? only an agent of the State, but also an agent of the constituents.
Furthermore, local autonomy calls for a government that is more
                                                                                                                responsive to people’s needs.
3 Sec. 5. Rules of Interpretation. - In the interpretation of the provisions of this Code, the

following rules shall apply: (a) Any provision on a power of a local government unit shall be
liberally interpreted in its favor, and in case of doubt, any question thereon shall be resolved in Q: What are the two branches of the general welfare clause?
favor of devolution of powers and of the lower local government unit. Any fair and reasonable A: 1) General legislative power - talks about powers expressly conferred
doubt as to the existence of the power shall be interpreted in favor of the local government unit by statute (i.e., power to issue a business permit, power to abate
concerned; (b) In case of doubt, any tax ordinance or revenue measure shall be construed strictly
against the local government unit enacting it, and liberally in favor of the taxpayer. Any tax nuisance per se)
exemption, incentive or relief granted by any local government unit pursuant to the provisions of 2) Police power proper - talks about powers not expressly given, but
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
promotes safety, propriety, morals, peace, good order, comfort, and
in accelerating economic development and upgrading the quality of life for the people in the convenience of the LGU (i.e., power to impose a curfew)
community; (d) Rights and obligations existing on the date of effectivity of this Code and arising
out of contracts or any other source of presentation involving 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 Q: What are the two requisites of a valid exercise of police power?
rights were vested; and (e) In the resolution of controversies arising under this Code where no A: 1) Lawful subject - the interests of the public generally, as
legal provision or jurisprudence applies, resort may be had to the customs and traditions in the distinguished from those of a particular class, require its exercise
place where the controversies take place.
 
 

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2) Lawful means - means employed are reasonably necessary for the 1. Apply the test of whether there is a lawful purpose and whether
accomplishment of the purpose and not unduly oppressive upon lawful means are employed to accomplish that police power purpose;
individuals OR
2. Determine if it is a nuisance per se or nuisance per accidens.
Q: Fernando v. St Scholastica provided for two tests. What are
they? Q: An ordinance ordered the closing, transfer, and conversion of
A: 1) Rational basis test karaokes, bars, and establishments – can it be done? How could
a) Lawful subject, and the ordinance have been valid in the case of Ermita?
b) Lawful means A: If the LGU did it pursuant to its power of eminent domain,
2) Strict scrutiny test provided it complies with the requisites.
a) There must be a compelling, not just substantial, government
interest, and Q: Difference between nuisance per se and nuisance per accidens.
b) Absence of less restrictive means A: LGU can cause the abatement of nuisance per se even without a
hearing. On the contrary, LGU can cause the abatement of nuisance per
Q: So, does this mean that a LGU can never cause the demolition accidens, but the latter would require a hearing – this means that the
of a wall in the exercise of police power? mayor would have to go to court and file a case.
A: No, as long as they pass the tests. Moreover, if there is a clear and
present danger (i.e., a wall in the middle of EDSA which is about to Q: By what authority can a massage parlor operate in a LGU?
collapse), then the LGU can order its demolition. A: Business permit.

Q: What happened in the case of Ermita? Q: Can a mayor order the closure of a restaurant or a massage
A: A LGU ordered the owners of sauna and massage parlors, karaoke parlor?
bars, beerhouses, nightclubs, discotheques, cabarets, dance halls, A: Yes, through the revocation no business permit. There are no vested
motels, and inns to do any of three things: 1) to close down, 2) to rights to a business permit, which is privilege, which can be revoked for
transfer, or 3) to convert their businesses. Here, the ordinance was just cause (i.e., violation of the law)
invalid. While the ordinance had a lawful purpose (to curtail
prostitution), it failed to satisfy the lawful means standard (as it was a Q: What would be a valid reason for revoking the permit of a gas
blanket prohibition). The ordinance unduly infringed on the station?
constitutional guarantees of due process and equal protection of laws, A: The permit could be revoked if, for example, the permit business
not even under the guise of police power. fails to follow the conditions in the license or if the operator violates
the law (e.g., National Building Code, local taxation, sanitation,
Q: How do you approach a police power problem, as presented in environmental compliance, easement, etc.).
the Ermita test?
A: One must – Q: Can a LGU order the closure of a bank?

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A: Yes, for violation of laws. But in the Rural Bank of Makati case, the subdivision into specific land uses as present and future projection of
bank was closed for non-payment of taxes, since the appropriate needs.
remedies to enforce payment of delinquent taxes are specifically
provided under the Local Tax Code. Closure is not a remedy. Q: Does the LGU have to pay you when it re-zones your property?
A: No, because there is no taking. Thus, no compensation need be
Q: What happened in the case of Abecedo? given. It is just an exercise of police power.
A: SC held that the LGU has no power to regulate the practice of a
profession (like optometry) through the issuance of a business permit. Q: Can the LGU impose an absolute ban on rallies?
Such a function is the exclusive domain of the Profession Regulations A: NO. Rallies are a constitutional right.
Commission.
Q: When is there compensable taking for eminent domain? Q: Can LGU impose provisions on taxes for an illegal numbers
A: There is compensable taking when – game?
1. There is a permanent taking of property. A: No. It is against the law.
2. After the power is exercised, somebody else, aside from the original
owner, will use the property. SESSION 6
Examples include, sports facilities, socialized housing, etc. That is why
compensation would be just. Q: Can a local government unit order the killing of all infested
pigs without just compensation?
When is there police power that may appear similar to eminent A: Yes, this is an exercise of police power (2nd branch - police power
domain? proper, because it is not expressly granted by the law).
Q: In this case –
1. There is a permanent taking of property. Q: Can a LGU order a cemetery to grant a portion of its property
2. The property is totally condemned and will no longer be used after it for indigents?
is taken. A: Yes, through the exercise of eminent domain, which also entails just
compensation.
Q: Why is there just compensation in eminent domain but not in
police power, if both result to deprivation of property? Q: Why is eminent domain referred to as “inferior domain” by Fr.
A: In eminent domain, after the power is exercised, another will use the Bernas?
property (i.e., socialized housing, sports facility, etc.); in police power, A: Because it is statutorily granted, and may be subject to the limits of
the property is totally condemned. Congress.

Q: What is a zoning ordinance? Q: How do you classify the power of eminent domain for LGUs?
A: A zoning ordinance is a local city or municipal legislation which A: The power is –
logically arranges, prescribes, defines, and apportions a given political (1) Delegated, not devolved nor deconcentrated

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(2) An express power, given to ALL LGUs, including barangays Q: Can the mayor be compelled to file an expropriation case,
• Sec. 19: “A local government may…” pursuant to an ordinance?
• Where the law does not distinguish, neither should we. A: No, this is within the discretion of the executive, even if an
(3) Intramural, because it can be exercised only within the LGU’s ordinance is needed to exercise the power.
territory, rather than extramural which an be exercised outside its
territory Q: What happened in the case of …
(4) Discretionary, rather than mandatory. A: (1) Barangay Sindalan - intended feeder road will only benefit the
(5) Executive, although it needs an ordinance. resident of a private subdivision, so there is no valid purpose.
(2) Jesus is Lord - reasonable efforts must be exhausted in acquiring the
Q: Is the power to exercise eminent domain executive or property involuntarily; furthermore, there must be genuine necessity,
legislative? proven by preponderance of evidence.
A: Both, according to the LGC. There needs to be an ordinance to Courts can rule upon the existence of genuine necessity, but not the
exercise it (legislative), and it is the mayor who facilitates the choice of property.
expropriation. (3) Masikip v. Pasig - the project involved was a sports and recreational
facility; there was no genuine necessity, because (a) another sport
Q: What are the requisites of a valid exercise of eminent domain? complex was located nearby, and (b) it would benefit only a small
A: They are – community.
(1) Compensable taking, such that another person or entity would
benefit from the taking (otherwise, it would be an exercise of Q: Can the RTC say there is no genuine necessity?
police power) A: Yes. However, it cannot rule upon the choice of property, as this
(2) Public Purpose falls within the wisdom of the LGU.
(3) Deposit of 15% of fair market value in order to immediately
take and possess the property Q: Can the higher level LGU sanggunian say (1) the choice of
(4) Just an compensation, to be determined by the courts (RTC, property was capricious, and (2) there was no genuine necessity.
because expropriation suit is incapable of pecuniary estimation) A: (1) No, because the higher level sanggunian cannot rule upon the
(5) Valid offer has been made, and such offer was not accepted choice of property; this is within the discretion of the LGU exercising
(because if the offer was accepted, it would be a voluntary sale) the power of expropriation, (2) Yes, because the higher level LGU
(6) An ordinance allows the exercise of such power sanggunian can review the existence of genuine necessity.
(7) Complies with the requirements of Constitution and pertinent
statutes (i.e., for socialized housing, private lands can be Q: Upon the filing of a case, can the LGU take possession of the
expropriated provided they are expropriated as a last resort; property?
they are ranked last in priority of order according to the Urban A: Yes, provided that (1) a complaint, sufficient in form and substance,
Development and Housing Act). is filed, and (2) 15% of the fair market value, based on the current tax

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declaration, is deposited. Writ of possession is ministerial provided the A: The options are –
two requisites are present. (1) Ask for a review before the sanggunian of the higher level LGU,
(2) File a petition for declaratory relief in the courts,
Q: What is the power to legislate? (3) If the bill passes the third reading, go to local chief executive, who
A: Local legislative power is the power to enact, repeal, amend, modify can exercise his power to veto the bill,
ordinances and issue resolutions. (4) Initiate a referendum.

Q: Is the power to legislate exclusively with the sanggunian? Q: A municipality enacted an ordinance, which was approved by
A: No, the people at large can also legislate through plebiscite. the Mayor, published, and became effective. Where does it now
go?
Q: Power to legislate is (1) subordinate, (2) denominated & (3) A: It goes to the higher-level LGU for review.
derivative. Explain.
A: (1) Subordinate legislation - LGU cannot enact ordinance that Q: What happened in the case of Batangas Cable TV?
contravene, expand, restrict, modify A: Discussed the operative fact doctrine, but did not apply it. The LGU
(2) Denominated ordinance - to be valid, an ordinance must comply cannot issue a cable TV franchise.
with both substance and procedure.
(3) Derivative - the power is derived from the people Q: Ordinance or resolution?
A: Given the following –
Q: What are the two presumptions?
A: Presumption of regularity, with regard to procedural requirements; Appropriate Ordinance
and presumption of constitutionality. Development plan Ordinance OR resolution
Tax Ordinance
Q: What are the tests to determine whether the ordinance is valid Annual Investment Plan Ordinance OR resolution
with regard to substance? Eminent Domain Ordinance, because (1) such is
A: The statute – expressly provided by law, (2)
(1) Does not contravene the Constitution and statutes more or less of permanent
(2) Not unfair or oppressive character, and (3) jurisprudence
(3) Not partial or discriminatory says so.
(4) Does not prohibit trade (ex.: may regulate trade)
(5) Not unreasonable Authorizing mayor to sign loan Ordinance, since this is an
(6) Must be general and consistent with public policy agreement appropriation
Reclassification Ordinance
Q: If you want to declare an ordinance invalid, what are your
options?

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Q: Why is there a need to distinguish when an ordinance would


be necessary? Q: Can a sanggunian say that all the ordinances must be
A: Distinction is important because – approved by 1/3 of the members?
(1) Legality - ordinance is a law, resolution is an expression of A: No. The LGC provides that the general rule is that the approval of
sentiment or opinion the majority is needed; the exception is when it is provided that a 2/3
(2) Veto and review - ordinance is subject to veto; only some or ¾ vote is needed.
resolutions are subject to veto
(3) Process - ordinance is passed after 3 readings; resolution is Q: Assuming that the law does explicitly provide for a voting
passed after 2 readings requirement, can the local legislative body provide for a different
Where an act should be permitted by an ordinance but is couched in a voting requirement?
resolution, the act would be void. A: Yes, as provided in jurisprudence. In the Casino case, it was held that
amending a zoning ordinance could require a higher vote. This is also
Q: T/F only the sanggunian can enact a local law in a given supported by the principle of subsidiarity.
LGU.
A: False. The people at large can do so, through a plebiscite. Q: Can a city have more than 1 cockfighting?
A: No, because the law states so. LGUs must follow the law.
SESSION 7
Q: What is the composition of a sanggunian?
Q: Do we have the same procedure for mayors filing a case and A: The vice local chief executive (i.e., vice mayor or vice governor) and
entering into a contract? the councilors.
A: No. For filing a case, the mayor will not need prior authorization or
ratification by the local legislative council. However, for entering into Q: Is the mayor part of the legislative process?
contracts, prior authorization or ratification is needed. A: Yes, because the Mayor has power to approve or veto.

Sub-Q1: Why is this so? Is the mayor part of the council?


A: Because the law says so. There is no law requiring the mayor A: No.
to get prior authorization for filing suits; whereas, the LGC
requires prior authorization for entering into contracts. Q: Who votes in the council?
A: Councilors.
Q: Can a city council, rather than having weekly sessions, hold all
four sessions during the first week of the month, and no more Q: Does the vice local chief executive vote?
sessions for the rest of the month? What does the law provide Q: General rule: no. Except: in case of a tie.
regarding regularity?
A: No. The LGC provides that sessions are held once a week. Q: What is the quorum requirement? Is it the same as Congress?

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A: Not the same as Congress. For sanggunian, it’s the majority of all A: No, the law provides that Punong Barangay cannot veto. This is
elective and qualified members, including those who are on leave or because he presides over the sessions of the sanggunian of barangay.
those who are absent.
Q: What are the grounds for review of the higher council?
Q: Can 3 readings be conducted in one day? A: Ultra vires; only questions of law.
A: Congress - no, because the Constitution provides that they must be
on separate days; LGU - yes, because there is no law that prohibits it to Q: What are the grounds for veto?
be done. A: (1) ultra vires or (2) prejudicial to public welfare; both questions of
law and fact (wisdom of the law). Wisdom can be questioned because
the issue is intra-LGU, unlike in case of review by the higher
sanggunian where the issue is inter-LGU.
Q: What happens during the first day of session after June 30?
The minimum requirement is to adopt the internal rules of procedure.
You can make other transactions, including setting budget. Q: Can the Mayor veto just items in the ordinance?

Q: Can the Senate cite someone in contempt? Direct the A: Yes. General veto and item veto.
production of documents? What about admin agencies? Q: When can there be an item veto?
A: Yes to both, even if not in the Constitution, because contempt and
subpoena powers are inherent powers of Congress. For admin agencies A: Appropriations can be item vetoed.
and LGUs, they are NOT inherent powers. For LGUs, the LGC does Q: What is the effect if an ordinance is approved and not vetoed?
not provide for said powers and therefore, they cannot be exercised by A: It has the effect of law. Therefore, enforced.
a LGU.
Q: What items can be vetoed?
Q: Role of mayor in legislative process? A: Items that creates a liability or expenditure (i.e. cannot veto
A: (1) power to approve (2) veto an ordinance. declaration of policy)
Q: Role of vice mayor? Q: Can the mayor say that he will not enforce/implement?
A: (1) preside in session, (2) appoints Sanggunian employees when
funded from Sanggunian, and (3) vote in case of a tie. A: No, because the role of the mayor is local chief executive. He/she
must implement / execute local laws and ordinances.
Q: Who presides over the sessions of barangays? Q: If he/she didn't want to implement, what should he have
A: There is no vice chief executive. Punong Barangay. done?

Q: Can Punong Barangay veto? Why/why not? A: Veto the ordinance.

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Q: What happens to a void ordinance? A: It is proprietary in nature, and there is an express waiver in statutes.
There is an express waiver in LGC for LGUs.
A: It is void and can't be cured.

Q:Who has the authority to review an ordinance? Q: Can the President require prior approval before a local
A: The next higher council, government can sell property?
A: No, because this amounts to control.

Q: Why is it control? Can the executive branch impose a


Q: What are the options if a municipal council wants an limitation where there is none given by law?
ordinance, but it was declared void by provincial council? A: No In the case of buying and selling property, the President was not
A: Petition for certiorari, Petition for declaratory relief, It can enact a given that authority under the law.
new ordinance.
Q: Can the President review a provincial ordinance? Q: In the Waterworks Case, did the power to monitor waterworks
A: No, even if he has direct supervision over provinces outside ARMM carry with it the right to appropriate water rights?
and HUC, because unlike the DOJ and DBM, the president does not A: No, it was not an implied power, because the latter was given to
have the authority under any law. This becomes control and not just another agency.
supervision.
Q: Can LGU borrow money from a foreign bank?
Q: Why is corporate succession important? A: While the LGU can enter into loan agreements with GFIs, it cannot
A: So that contracts (rights and obligations arising therefrom) do so from foreign banks because of the express prohibition on
previously entered into can continue. contracting foreign loans.

Q: Can LGU unilaterally rescind a contract entered into by the Q: Can LGU secure a grant from a foreign institution?
previous administration? A: YES! Unless there is a national security concern.
A: No because of (1) doctrine of vested rights, and (2) doctrine of
corporate succession. Q: What are the sources of funds of LGUs?
A: Under the Constitution: (1) a share in the national revenues, (2)
share in the national wealth (3) local taxes, (4) fees and charges, (5)
Q: Are LGUs immune from suit? other sources of revenue << the last one is important because it lays
A: No, because of Sec. 22 -- they can sue and be sued. the basis for non-exclusivity of sources of funds.
Under the LGC: (1) loans, (2) donations and grants, (3) float bonds, (4)
Q: What is the rule on immunity from suit of government? exercise of proprietary functions, (5) and credit-financing schemes such
as Build-Operate-Transfer schemes.

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LOCAL GOVERNMENT LAW 2016 TRANSCRIPT
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Q: Can Congress take away fiscal autonomy? A: Yes, provided that their charter is amended by Congress giving them
A: No, because it is based on local autonomy. an exemption. The withdrawal of tax exemption applies only to those
granted before the 1991 LGC.
Q: Can there be local autonomy without fiscal autonomy?
A: No. Basis? Local autonomy includes both administrative autonomy Q: True or false. All GOCCs and GIs must pay local taxes?
and fiscal autonomy. A: False. GOCCs may be liable for tax. GIs are exempt from tax.

SESSION 8
Q: In a case, the DBM imposed a cap on the allowances of
judges. Allowed? Q: Why is the IRA referred to as the IRA? Why is it internal
A: No, because in the absence of a law imposing a limit, the DBM revenue? Why is it allotment?
cannot impose a cap because such would violate both fiscal autonomy A: Constitution provides that LGUs are entitled to a “just share in
and local autonomy. national revenues.” Current share is 40%; National government retains
60%. Of the 40%,
Q: Can Congress impose a limitation on the fiscal powers of Cities/provinces - 23%
LGU? Municipality - 34%
A: Yes, and the only limitation is that they cannot violate the Barangay - 20%
Constitution.

Q: Can the executive (President, DBM, etc) limit the power of Q: How do the cities allocate amongst themselves their 23%
LGUs? share?
A: In the absence of a law, the executive cannot limit the powers of A: 50% population 25% land area 25% equal sharing
LGUs because it would amount to control, not just supervision.
Moreover, it would infringe upon the local autonomy of the LGU. Q: What is the revenue contemplated in the Constitution?

Q: Is the NAPOCOR (in short, GOCCs) exempt from paying A: NATIONAL TAXES (includes customs and tariff)
local taxes?
A: No. Under the law, GOCCs which previously enjoy tax exemptions, Q: How is Section 6 under Article 10 of the Constitution
are no longer exempt, because tax exemption privileges have been operationalized under the LGC?
withdrawn. A: Section 284 of the LGC: NATIONAL INTERNAL REVENUE
TAXES
Q: Can NAPOCOR, in the future, be exempt from paying local
taxes? Q: Can Congress reduce the 40% share to 5%?
A: No, 5% is an unjust share.

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LOCAL GOVERNMENT LAW 2016 TRANSCRIPT
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Q: Can Valenzuela, where the pipelines pass through, claim a


Q: Can Congress say that 10% of the 40% will be channeled to an share?
Unprogrammed Fund only to be released upon reaching certain A: No, because Valenzuela is not part of the jurisdiction where the
goals? source of the water comes from.
A: (1) No, because the release of allotments should be automatic and
should not be subject to any condition, lien, or encumbrance, and (2) Q: Can Congress pass a law that national government will have a
Such is a rider in a General Appropriations Act, (3) appropriations act share in local taxes?
cannot repeal or amend a substantive law, such as the 1991 LGC. A: No, under the Constitution, local revenues shall accrue exclusively to
the LGUs.
Q: Can the DBM say that if you don't release your development Q: Can Congress repeal the power to tax given to LGUs?
plans to us, we won't release your IRA? A: No, the power to tax is constitutionally delegated to the LGUs and
A: No. The release must be automatic. therefore cannot be taken away by statute. However, power to tax can
be limited by law.
Q: Can the President lower the 40% share to 35%?
A: Yes, provided that there is (1) an unmanageable public sector deficit Q: Is the power of Congress to limit the power to tax absolute?
(2) recommendations from the Secretaries of DILG, DBM, and DOF, A: No, limitations must still be consistent with local autonomy.
(3) consultation with both Houses of Congress, and (4) consultation
with Presidents of the Liga. Q: Requirements to exercise power to tax.
A: (1) tax is not specifically enumerated under the NIRC, or other tax
Q: Can the national government say that the IRA cannot be used statutes, (2) the tax is not excessive, unjust, oppressive, or confiscatory,
for training? and (3) prior public hearing
A: No, this amount to control not just mere supervision. As such, it
violates local autonomy and fiscal autonomy. Discretionary powers of Q: Can a LGU levy an income tax?
the LGU cannot be restricted by the government, in the absence of a A: No, this is a tax specifically enumerated under the NIRC.
law limiting said powers.
Q: Can a LGU impose a tax not found in the LGC?
Q: Should Bulacan be entitled to some form of payment from the A: Yes. The list is inclusive, not exclusive.
water that comes from the Angat Dam, that is distributed in
Manila? Q: Are condominium corporations subject to business tax?
A: Yes. Under the Constitution, LGUs are entitled to an equitable share A: No, because they are non-profit. Only those engaged in profit-
in the proceeds of the utilization and development of the national oriented activities.
wealth within their respective areas. Under the LGC, the share is 40%
of gross collections. Q: Can LGU levy excise tax on petroleum products?

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A: No, excise taxes are specifically excluded as a form of tax that LGU
can impose. Q: What about the leased properties of PPA?
A: No, not exempt. When beneficial use has been transferred to a
Q: Can LGU levy a business tax on petroleum products? taxable entity, it is taxable.
A: No. There is a specific prohibition on the levying of any other type
of taxes with respect to petroleum products. This includes business Q: Lung Center of the Philippines?
taxes. A: Exempt. Charitable institution. (Exempt under NIRC, Constitution)

Q: Two cases involving double taxation: the SMART case and the Q: What about the stalls leased in Lung Center? Taxable.
COCA COLA case.
A: In SMART, there was no double taxation because one tax was local Q: Economic Zones?
franchise tax while the other is national franchise tax; in COCA COLA, A: Not exempt - no express categorical exemption. EXCEPT: Subic -
there was double taxation because it was imposed by the same taxing specifically provided in the creating law
authority.
Q: True or false - the remedies to challenge an assessment, a tax
Q: Are both DigiTel and PLDT exempt from paying local taxes? ordinance, and a fee are the same.
A: PLDT is liable, because its exemptions provided by its charter were A: False. Assessment - Board of Assessment Appeals; Tax Ordinance -
revoked by the LGC. DigiTel is exempt because the charter, which was DOJ; Fees - the LGU (this is because fees are in the exercise of police
granted after the enactment of the LGC, specifically provided the power; DOJ has jurisdiction only over tax ordinance)
exemption.
Q: Are cities public offices?
Q: What is the difference between GOCC and GI and why is it A: Yes, because what makes a public office as such is (1) sovereign
important to our discussion? function, (2) created by law, (3) permanency, (4) relationship [control,
A: GOCCs - non stock or stock; GIs - neither stock or non-stock. supervision], (5) defined powers
Difference between the two is important because GIs are exempt from
real property taxes (NOT ALL TAXES!!!) while GOCCs, having a Q: How would you classify public officials?
separate juridical entity from the State, are as a general rule are not A: (1) elective/appointive, (2) ex-officio/regular, (3) national/local, (4)
exempt. GOCCs exempt from real properties only if the property legislative/executive
involved is public property (Civil Code concept)
Q: Where do we find the structure of LGUs?
Q: Philippine Ports Authority - exempt or not exempt? A: LGC.
A: No, since it’s a GOCC. The ports themselves? Yes, exempt. Public
property. Q: Can the Mayor be an appointive position?
A: Yes, Congress can amend LGC to provide such.

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Q: Two types of vacancies.


Q: Can a vote for Vice Mayor be considered a vote for a Mayor?
A: No. LGC provides that they should be elected by a direct vote. This A: Permanent and temporary
can be amended later on, though. Q: Can an acting governor sign contracts? Can the vice governor
appoint officials of the Sanggunian?
Q: Can the Mayor, while holding said position, be the head of a A: Yes, as acting, he can assume powers of governor but he can't
GOCC? preside meetings of sanggunian (he can only do one)
A: Not allowed for 2 reasons: (1) Constitution provides that no local
elective official shall be eligible for appointment or designation in any
capacity to any public office or position during his/her tenure, and (2) SESSION 9
if it is not in an ex officio capacity.
Q: What is the term of office for local elective officials?
Q: Can a Mayor be an ex-officio member of a GOCC? Can that A: Generally 3 years, except for barangay officials which is provided by
ever happen? law (also happens to be 3 years though!)

A: If it is attached to the office of the Mayor, or allowed under the Q: What is the difference between term and tenure?
Constitution A: term is the period of time that the law provides; tenure is the actual
period of time that the official stays in office.
Q: Can a Councilor be a board member of an electric
cooperative? Q: Is there a situation where the term is greater than the tenure?
A: No. There is a prohibition by NEDA. A: Yes, in cases of vacancies for example.

Q: How do we classify an electric co-op? Q: Is there a situation where the tenure is greater than the term?
A: Neither GOCC, nor GI. Quasi public entity They are under the A: Yes, in case of hold-over for example.
regulation of the government.
Q: On the 3rd term of a mayor, the municipality became a city. In
the election for city officials, can said municipal mayor run now
Q: Can a Vice Mayor solemnize mayor? for city mayor?
A: Only if the Mayor is not available (i.e., there is a temporary vacancy) A: No, the fact of conversation by itself is not the interruption
contemplated by law because, for instance, the same position and the
Q: At the same time, can said Vice Mayor still preside over the same territory remain.
sessions of the sanggunian?
A: While Acting Mayor, cannot preside. Q: What if, when the municipality was converted into a city, 2
new barangays were annexed to the city?

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A: Mayor can now run again. This is because the territory and A: (1) Serve the same position for 3 terms, (2) no voluntary
constituency are now different. renunciation, (3) same jurisdiction and inhabitants, (4) elected to that
position
Q: Mayor went abroad for 2 months - is it an interruption of the
term? Q: What if the Mayor is disqualified, who becomes the mayor?
A: No, because it is only a temporary vacancy. A: It depends. If disqualified based on election offense - the vice
mayor, because he was qualified once but just got disqualified
Q: Mayor was put on preventive suspension for 2 months - is subsequently; if disqualified based on lack of qualifications - the 2nd
there an interruption of the term? What if it was suspension? (is placer, because the mayor was never qualified in the first place.
there a difference?)
A: The two are different, but have the same effect with regard to Q: In the event that there is a vacancy in the office of the Vice
interruption. They are not considered an interruption because, while the Mayor, who assumes his position?
Mayor cannot exercise full powers of a Mayor, he remains the Mayor. A: The “first councilor” determined by # of votes / # of registered
voters, form the same political party (rationale: to keep party
Q: Protestant wins in an election protest. Will that be considered equilibrium) appointed by official who exercises direct supervision:
a full term for the protestant? For the protestee? a) President - for sanggunian of province, independent city,
A: No for both, because (1) they are involuntary interruptions, and (2) highly urbanized city
they do not serve the full term. b) Governor - for sanggunian of component city/municipality
c) Mayor - for sanggunian of barangay
Q: Mayor for 3 terms. Does not run for the 4th term. But runs in a
recall election? Q: Is the power to discipline the power to control?
A: Allowed. There was an interim period where he was a private citizen, A: No, the power of supervision carries with it the power to discipline.
which is an interruption within the meaning of the law.
Q: Main requirement in power to discipline?
Q: What if Vice Mayor succeeds as Mayor, will that be a full term A: Due process.
as Mayor? What about as Vice Mayor?
A: As Mayor, no because (1) he did not serve the full term and (2) Vice Q: Who exercises the power to discipline?
Mayor was not elected to that position; As Vice Mayor, no because (1) A: Whoever exercises direct supervision (higher sanggunian), the
he did not serve the full term, and (2) succession was by operation of Ombudsman, or the courts
law.
Q: Can the DILG discipline a Governor?
Q: Requisites to apply 3-term rule? A: No, DILG can only investigate.

Q: Can Sandiganbayan discipline erring local elective officials?

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A: Not all - Salary Grade 27 and above only. A: Yes if COA disallows.

Q: What laws can power to discipline base itself on? Q: Can the Mayor continue to pay salaries to an employee when
A: Constitution, laws, anti graft and corruption act, RPC, election, the employee is already placed under preventive suspension?
LGC, code of conduct for public officials, A: No, otherwise said Mayor will be liable under the Anti Graft and
Corrupt Practices Act for giving of unwarranted benefits.
Q: Why does it matter?
A: Determines elements, procedure, who are liable, punishment, Q: If you’re a Mayor who fails to give assistance for calamities,
quantum of evidence, jurisdiction can you be held liable?
A: Yes, for dereliction of duty.
Q: What is the quantum of evidence for these cases?
A: civil - preponderance of evidence, criminal - beyond reasonable Q: What happened in Yabut v. Ombudsman?
doubt, disqualification cases - substantial evidence, election offense - A: He stopped in Makati Ave, conducted traffic, and beat up a
beyond reasonable doubt, admin cases - substantial evidence foreigner (lol?). Supreme Court said that an elective official must not be
onion-skinned.
Q: Is there a need to delineate between criminal liability and
administrative liability? Q: Mayor is placed under preventive suspension?
A: Yes, because punishment will be different. A: No, otherwise this would constitute a violation of the Anti Graft Act
for fraud.
Q: What happens to administrative and criminal liability when
the guilty person wins an election? Condonation? Q: What if said mayor’s defense was that it did not involve
A: NO TO BOTH. The Aguinaldo doctrine on condonation has been money?
renounced by the Supreme Court in the Jun Jun Binay case (because A: SC said there were two kinds of fraud: (1) one involving funds, and
there was never a basis for said doctrine) (2) one involving usurpation of functions

Q: Who issues local franchise? Business permit? Q: What are the grounds to discipline an official?
A: Local franchise - sanggunian; business permit - mayor A: (1) Disloyalty to the Republic of the Philippines
(2) Culpable violation of the Constitution
(3) Dishonesty, oppression, misconduct in office, gross negligence, or
Q: Can mayor own a cockpit dereliction of duty
A: No, Teves case, mayor liable under 2nd mode of Section 3(h) of RA (4) Commission of any offense involving moral turpitude or an offense
3019. punishable by at least prision mayor
(5) Abuse of authority
Q: Can mayor be excused from not paying salary? (6) Unauthorized absence for 15 consecutive working days

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EX: in case of members of the sanggunian A: Under the LGC, joinder of issues is required.
(7) Application for, or acquisition of, foreign citizenship or residence or EXCEPTIONS: (1) Under the Ombudsman Act, the Ombudsman can
the statutes of an immigrant of another country put said Mayor under preventive suspension, even without an answer,
(8) Such other grounds provided by 1991 LGC or other laws and
(2) Despite repeated demands for answer, and no answer is filed, higher
Q: Must they be committed in relation to the office? LGU can suspend.
A: Not always. For example, it is not needed for disloyalty to Republic.

Q: Can a barangay official be held liable by the Sandiganbayan?


A: SB has jurisdiction over officials with salary grade of 27 or higher.

Q: Mayor made a disbursement, COA approved it. Does this


mean that the Ombudsman cannot hold said mayor liable?
A: No. According to the case of Aguinaldo, approval of the COA does
not bar the Ombudsman from investigating the Mayor.

Q: What are the rights of a respondent in a disciplinary case?


A: Right to notice, opportunity to be heard, counsel is not necessary,
tried with tribunal with jurisdiction, decision is based on evidence
presented in the proceedings

Q: Who can remove the City Mayor from office?


A: Higher supervising unit cannot remove a lower official from office
because: (1) under the LGC, only the courts can remove (2) maximum
penalty that can be imposed by high supervising unit is suspension (3) it
was the mandate of the people to put the Mayor there, and (4) due
process

Q: In the Reyes case, there was removal by the higher supervising


unit. What happened?
A: Against the rule but he never questioned the removal.

Q: Can Mayor be put under suspension, even if she has not


answered (i.e. no joinder of issues)?

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