UST Golden Notes Law On Public Corporations

UST GOLDEN NOTES 2011
L. LOCAL GOVERNMENTS Note: Every LGU created or recognized under this

code is a body politic and corporate endowed with
a. PUBLIC CORPORATIONS powers to be exercised by it in conformity with law.
As such, it shall exercise powers as a political
subdivision of the national government and has a
Q: What is a public corporation?
corporate entity representing the inhabitants of its
territory (Sec.15, LGC)
It is one created by the State either by general or
special act for purposes of administration of
Q: What are the classes of corporations?
local government or rendering service in the
th
public interest. (Rodriguez, p. 2, LGC 5 Edition) A:
0.0 Quasi‐public corporations – public
0 Distinguish public corporation from private corporations created as agencies of the
corporation. State for narrow and limited purposes
without the powers and liabilities of
A: self‐governing corporations.
PUBLIC
PRIVATE CORPORATION
CORPORATION 0.1 Municipal corporations – body politic
Purpose and corporate constituted by the
Administration of incorporation of inhabitants for
Private purpose purposes of local government. It is
local government
established by law partly as an agency
Who creates of the State to assist in the civil
government of the country, but chiefly
By the state either by By incorporators with
to regulate and administer the local or
general or special act recognizance of the state
internal affairs of the city, town or
How created district which is incorporated. (Dillon,
Municipal Corporations, Vol.2, pp. 58‐
By legislation By agreement of members 59.)
0 What is a Government Owned and Controlled

0 What is the criterion to determine whether a Corporation (GOCC)?
corporation is a public corporation?
0 any agency organized as a stock or non‐stock
By the relationship of the corporation to the state; corporation vested with functions relating to
if created by the State as its own agency to help it public needs whether governmental or
in carrying out its governmental functions, it is proprietary in nature, and owned by the
public, otherwise, it is private. government directly or indirectly through its
instrumentalities either wholly, or where
0 What are the dual characteristics of a public
applicable as in the case of stock corporations to
corporation?
the extent of at least 51% of its capital stock.
A: (Section 2 (13) of Executive Order No. 292
5888 Public or governmental – acts as an (Administrative Code of 1987)
agent of the State for the government of
the territory and its inhabitants. Q: What are the requisites of a GOCC?
5889 Private or proprietary – acts as an A:

agent of the community in the 0 Any agency organized as a stock or non‐
administration of local affairs. As such, it stock corporation
acts as separate entity for its own 1 Vested with functions relating to public
purposes, and not a subdivision of the needs whether governmental or
State. (Bara Lidasan vs. COMELEC G.R. proprietary in nature
No. L‐28089, October 25, 1967 citing 2 Owned by the Government directly or
McQuillin, Municipal Corporations, 3d through its instrumentalities either
ed., pp. 456‐ 464) wholly, or, where applicable as in the
182
POLITICAL LAW TEAM:
ADVISER: ATTY. EDWIN REY SANDOVAL; SUBJECT HEAD: RACHEL MARIE L. FELICES; ASST. SUBJECT HEADS: WIVINO E. BRACERO II &
HERAZEUS CHRISTINE Y. UY; MEMBERS: LAWRENCE PAULO H. AQUINO, LEANDRO RODEL V. ATIENZA, MARINETH EASTER AN D. AYOS,
CARLO R. BALA, WILFREDO T. BONILLA, JR., KEEL ACHERNAR R. DINOY, APRIL V. ENRILE, KENNETH JAMES CARLO C. HIZON, JOSE
MARIA G. MENDOZA, ROGER CHRISTOPHER R. REYES, ROMILINDA C. SIBAL, JASMIN M. SISON, ZARAH PATRICIA T. SUAREZ, RALPH
JULIOUS L. VILLAMOR.
LOCAL GOVERNMENTS
case of stock corporations, to the extent and municipalities, upon the recommendation of the
of at least fifty‐one (51) of its capital sangguniang concerned provided that the same shall
stock. (Leyson, Jr. v. Office of the be effective only upon ratification in a plebiscite
Ombudsman, G.R. No. 134990, April 27, conducted for the purpose in the political unit
2000) directly affected. (R.A. 7160, Sec. 13)
0 What laws may govern GOCCs and how do

0 What is the nature and function of a
you determine which will govern?
municipal corporation?
0 Government corporations may be created by

It is body politic and corporate constituted by the
special charters or by incorporation under the
incorporation of inhabitants for purposes of local
general corporation law. Those created by special
government. It is established by law partly as an
charters are governed by the Civil Service Law
agency of the State to assist in the civil
while those incorporated under the general
government of the country, but chiefly to regulate
corporation law are governed by the Labor Code.
and administer the local or internal affairs of the
(Blaquera vs. Alcala, G.R. No. G.R. No. 109406.
city, town or district which is incorporated.
September 11, 1998)
(Dillon, Mun. Corp., Vol.2, pp. 58‐ 59.)
0 Distinguish public corporation from a GOCC.
0 What are the different types of municipal
23
corporations?
PUBLIC
GOCCs
CORPORATION
Purpose
A:
Performance of functions 0 De jure municipal corporations – created
Administration of relating to public needs or recognized by operation of law.
local government whether Governmental or 1 Municipal corporations by prescription –
Proprietary in nature exercised their powers from time
Who creates immemorial with a charter, which is
presumed to have been lost or
By the state either by By Congress or by destroyed.
general or special act incorporators 2 De facto municipal corporations – where
the people have organized themselves,
How created
under color of law, into ordinary
(1) Original charters or
municipal bodies, and have gone on,
special laws or (2) general
By legislation year after year, raising taxes, making
corporation law as a stock
improvements, and exercising their
or non‐stock corporation
usual franchises, with their rights
dependent quite as much on
acquiescence as on the regularity of
b. MUNICIPAL CORPORATIONS their origin. (Rodriguez, pp.17‐18, LGC
th
5 Edition)
5888 What are the essential elements of a
municipal corporation? Note: An inquiry into the legal existence of a de facto
corporation is reserved to the State in a proceeding
A: for quo warranto or other direct proceeding. (The
0Legal creation Municipality of Malabang, Lanao del Sur vs.
1Corporate name Pangandapun Benito, G.R. No. L‐28113, March 28,
2Inhabitants constituting the population who 1969)
are vested with political and corporate
powers 0 What are the essential requisites of a de facto
th
3Territory (Rodriguez, p.4, LGC 5 Edition) corporation?
Note: The sangguniang panlalawigan may, in 0 VACA

consultation with the Philippine Historical Valid law authorizing incorporation
Commission change the name of component cities
Facult DerechoCi
VICE CHAIR FOR ADMINISTRATION AND FINANCE: JEANELLE C. LEE adde vil 183
ACADEMICS CHAIR: LESTER JAY ALAN E. FLORES II U NIVERSITYOF S ANTO T OMAS
VICE CHAIRS FOR ACADEMICS: KAREN JOY G. SABUGO & JOHN HENRY C. MENDOZA
VICE CHAIRS FOR LAY‐OUT AND DESIGN: EARL LOUIE M. MASACAYAN & THEENA C. MARTINEZ
Attempt in good faith to organize under it 0 Highly Urbanized City – P 50M

Colorable compliance with law 1 City – P 20M (100M RA.
Assumption of corporate powers (Rodriguez, 9009 amending Sec 450 of
th
p. 18, LGC 5 Edition) LGC)
2 Municipality – P 2.5M
CREATION 0.512 Population requirement – to be

determined as the total number of
0 Who has the authority to create municipal inhabitants within the territorial
corporations? How is a public corporation jurisdiction of the local government unit
concerned. The required minimum
created?
population shall be:
A Local Government Unit may be created, divided, 512.0 Barangay

merged, abolished or its boundaries substantially – 2K But 5K
altered either by: in:
0.0 Metro Manila
Law enacted by Congress in case of province, 0.1 Highly urbanized cities
city, municipality or any other political 512.1 Municipality – 25K
subdivision; 512.2 City – 150K
By an ordinance passed by the 512.3 Province – 250K
Sangguniang Panlalawigan or
Sangguniang Panlungsod concerned in 0.513 Land requirement – must be contiguous,
the case of a barangay located within its unless it comprises two or more islands
territorial jurisdiction, subject to such or is separated by a local government
limitations and requirements prescribed unit; properly identified by metes and
in the LGC. (Sec. 6, R.A. 7160) bounds; and sufficient to provide for
such basic services and facilities. Area
0 What are the requisites or limitations imposed requirements are:
on the creation or conversion of municipal
corporations? 513.0 Municipality – 50 sq. km
(Sec.442 R.A. 7160)
A: 513.1 City – 100 sq. km (Sec.450
0 Plebiscite requirement – must be R.A. 7160)
approved by majority of the votes cast 513.2 Province – 2,000 sq.km
in a plebiscite called for such purpose in (Sec.461 R.A. 7160)
the political unit or units directly
affected. 0 Are the Internal Revenue Allotments (IRAs)
considered income and, therefore, to be included
Note: The plebiscite must be participated in the computation of the average annual income
in by the residents of the mother province of a municipality for purposes of its conversion
in order to conform to the constitutional into an independent component city?
requirement.
0 Yes. The IRAs are items of income because
1 Income requirement – must be sufficient they form part of the gross accretion of the funds
on acceptable standards to provide for of the LGU. The IRAs regularly and automatically
all essential government facilities and
accrue to the local treasury without need of any
services and special functions
commensurate with the size of its further action on the part of the local government
population as expected of the local unit. They thus constitute income which the local
government unit concerned. Average government can invariably rely upon as the source
annual income for the last consecutive of much needed funds. (Alvarez v. Guingona, G.R.
year should be at least: No. 118303, Jan. 31, 1996)
a. Province – P 20M Q: When does corporate existence begin?
184
POLITICAL LAW TEAM:
LOCAL GOVERNMENTS
0 Upon the election and qualification of its chief 0 The challenged “cities” claim that it was
executive and a majority of the members of its the intent of Congress anyway to grant
them exemption from the income
sanggunian, unless some other time is fixed requirement, as per the deliberations
therefor by law or ordinance creating it. (Sec. 14, th
of the 11 Congress. What became of
R.A. 7160) the cityhood bills and their
deliberations that were pending at the
th
23 What is the rule relative to the merger and adjournment of the 11 Congress?
division of local government units?
A:
A: 23 Yes, The 16 cities covered by the
23 Such division or merger shall not reduce Cityhood Laws not only had conversion bills
the income, population or land area of pending during the 11th Congress, but have also
the LGC concerned to less than the complied with the requirements of the LGC
minimum requirement prescribed prior to its amendment by R.A. No.
24 That the income classification of the
9009. Congress undeniably gave these cities all
original LGU/s shall not fall below its
current income classification prior to the considerations that justice and fair play
the division demanded. Hence, this Court should do no less by
25 A plebiscite must be held in LGUs stamping its imprimatur to the clear and
affected unmistakable legislative intent and by duly
26 Assets and liabilities of creation shall be recognizing the certain collective wisdom of
equitably distributed between the LGUs Congress. (League of Cities of the Philippines (LCP)
affected and new LGU
v. COMELEC, G.R. No. 176951, April 12, 2011)
24 Notwithstanding that both the 11th and 12th

Note: When a municipal district of other territorial
Congress failed to act upon the pending cityhood
divisions is converted or fused into a municipality all
property rights vested in original territorial bills, both the letter and intent of Section 450 of
organization shall become vested in the government the LGC, as amended by R.A. No. 9009, were
of the municipality. (R.A. 688) carried on until the 13th Congress, when the
Cityhood Laws were enacted. The exemption
th clauses found in the individual Cityhood Laws are
23 At the end of the 11 Congress’s existence,
several bills aiming to convert certain the express articulation of that intent to exempt
municipalities into cities were pending. The same respondent municipalities from the coverage of
were not entered into law. R.A. No. 9009. (League of Cities of the Philippines
(LCP) v. COMELEC, G.R. No. 176951, February 15,
th
The 12 Congress enacted R.A. No. 9009, 2011)
amending the Local Government Code (LGC) by
increasing the income requirement for Note: On November 18, 2008, the SC ruled the
conversion of municipalities into cities. Congress cityhood laws unconstitutional. On December 21,
2009, it reversed the ruling. Then again, on August
deliberated on exempting the municipalities 24, 2010, it decided to uphold the original ruling.
mentioned earlier from the new income And finally, last April 12, 2011 it upheld the
requirement; however, no concrete action came constitutionality of the creation of the 16 new cities.
out of such deliberations.
5888 May Congress validly delegate to the
The municipalities filed, through their respective ARMM Regional Assembly the power to create
sponsors, individual cityhood bills containing a provinces, cities, and municipalities within the
common proviso exempting them from the new ARMM, pursuant to Congress’s plenary
income requirement. The Congress approved the legislative powers?
same. Concerned parties protested such laws
allowing a “wholesale conversion” of 0 No. There is no provision in the Constitution
municipalities as being unconstitutional. Decide. that conflicts with the delegation to regional
legislative bodies of the power to create
0 Are the cityhood laws valid?
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municipalities and barangays. However, the Constitution. (Aladaba v. Comelec, G.R. No.
creation of provinces and cities is another matter. 188078, Jan. 25, 2010)
Only Congress can create provinces and cities
because the creation of the same necessarily Congress enacted a law reapportioning the
includes the creation of legislative districts, a composition of the Province of Camarines Sur
power only Congress can exercise under Section 5 and created legislative districts thereon. Aquino
Art. VI of the Constitution and Section 3 of the challenged the law because it runs afoul to the
Ordinance appended to it. (Bai Sandra S.A. Sema constitutional requirement that there must be
v. COMELEC, et al. G.R. No. 178628, July 18, 2008) 250,000 population create a legislative districts.
Comelec argued that the mention requirement
0 Considering the legislative power validly does not apply to provinces. Is the 250,000
delegated to the ARMM Regional Assembly, population standard an indispensible
what is the limitation of such that prevents the requirement for the creation of a legislative
same to create legislative districts? district in provinces?
0 The ARMM Regional Assembly cannot enact a 0 No. Section 5(3), Article VI of the 1987
law creating a national office like the office of a Constitution which requires 250,000 minimum
district representative of Congress because the population requirement apply only for a city to be
legislative powers of the ARMM Regional entitled to a representative but not for a province.
Assembly operate only within its territorial
jurisdiction as provided in Section 20 Art. X of the The provision draws a plain and clear distinction
Constitution. (Sema v. COMELEC, G.R. No. 178628, between the entitlement of a city to a district on
July 16, 2008) one hand, and the entitlement of a province to a
district on the other. For while a province is
5888 Congress enacted a law creating entitled to at least a representative, with nothing
the legislative district of Malolos based on a mentioned about population, a city must first
certification of the demographic projection from meet a population minimum of 250,00 in order to
NSO stating that by 2010, Malolos is expected to be similarly situated. (Aquino and Robredo v.
reach the population of 250,000, hence entitling Comelec, G.R. No. 189793, April 7, 2010)
it to one legislative district. Is the law valid?
0 Congress passed a law providing for the
0 No. Congress cannot establish a new legislative apportionment of a new legislative district in
district based on a projected population of the CDO City. The COMELEC subsequently issued a
National statistics Office (NSO) to meet the resolution implementing said law. B now assails
population requirement of the Constitution in the the resolution, contending that rules for the
reapportionment of legislative districts. conduct of a plebiscite must first be laid down,
as part of the requirements under the
A city that has attained a population of 250,000 is Constitution. According to B, the apportionment
entitled to a legislative district only in the is a conversion and division of CDO City, falling
“immediately following election.” In short, a city under Section 10 Art X of the Constitution, which
must first attain the 250,000 population, and provides for the rule on creation, division,
thereafter, in the immediately following election, merger, and abolition of LGUs. Decide.
such city shall have a district representative. There
is no showing in the present case that the City of 0 There is no need for a plebiscite. CDO City
Malolos has attained or will attain a population of politically remains a single unit and its
250,000, whether actual or projected, before May administration is not divided along territorial
10, 2010 elections. Thus, the City of Malolos is not lines. Its territory remains whole and intact. Thus,
qualified to have a legislative district of its own Section 10 Art. X of the Constitution does not
under Section 5(3), Article VI of the 1987 come into play. (Bagabuyo v. COMELEC, G.R. No.
Constitution and Section 3 of the Ordinance 17690, Dec. 8 2008)
appended to the1987
186
POLITICAL LAW TEAM:
LOCAL GOVERNMENTS
d. DIVISION, MERGER, ABOLITION Approved by a majority of the votes cast in a

plebiscite called for the purpose in the
0 What are the requirements for division and political unit or units directly affected.
merger of local government units? (Sec.10 R.A. 7160)
0Same requirements as creation of LGU provided:

0 LOCAL GOVERNMENT CODE
23 It shall not reduce the income, population
or land area of the LGU/S concerned to less
than minimum requirements prescribed; 0 How should the Local Government Code be
24 Income classification of the original LGU/S interpreted?
shall not fall below its current income
classification prior to division. (Sec.8 R.A. A:
7160) GR: That any doubt or question on a power of
25 Plebiscite be held in LGUs affected (Sec.10
local government shall be resolved in favor of
R.A. 7160)
26 Assets and liabilities of creation shall be devolution of powers and in favor of the LGU.
equitably distributed between the LGUs (Sec.5 (a) R.A. 7160)
affected and new LGU. (R.A. 688)
XPN: In case of tax measures enacted by local
Q: When may an LGU be abolished? government, any doubts shall be resolved strictly
against the local government and liberally in favor
23 When its income, population or land area has of the taxpayer. (Sec.5 (b) R.A. 7160)
been irreversibly reduced to less than the
minimum standards prescribed for its creation, as 0 What are the other rules in interpreting the
certified by the national agencies mentioned. Local Government Code?
(Sec. 9, R.A. 7160)
A:
Note: A barangay may officially exist on record and 0 General Welfare provisions – liberally
the fact that nobody resides in the place does not interpreted to give more powers to the
result in its automatic cessation as a unit of local local government units in accelerating
government. (Sarangani vs. COMELEC, G.R. No. economic development and upgrading
135927. June 26, 2000) the quality of life for the people in the
community
1 Rights and obligations existing on
Q: Who may abolish a LGU?
effectivity of this LGC and arising out of
contracts – governed by the original
A:
terms and conditions of said contracts
23 Congress – in case of provinces, city, or the law in force at the time such
municipality, or any other political rights were vested
subdivision. 2 Resolution of controversies where no
24 Sangguniang Panlalawigan or Sangguniang legal provision or jurisprudence applies
Panglungsod – in case of a barangay, except – Resort to the customs and traditions
in Metropolitan Manila area and in cultural of the place where the controversies
communities. (Sec.9 R.A. 7160) take place. (Sec. 5, R.A. 7160)
768 What are the requirements prescribed by

law in abolishing LGUs? 5888 PRINCIPLES OF LOCAL AUTONOMY
A: 768 What is the principle of local autonomy?

ĀĀȀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀĀĀĀĀĀĀȀĀ㨀ĀĀĀȀĀᜀĀᜀĀ
ᜀĀᜀĀᜀĀᜀᄀ̀̀Ā768 The law or ordinance 0 Under the 1987 Constitution, it simply means
abolishing a local government unit shall
decentralization; it does not make the local
specify the province, city, municipality, or
barangay with which the local government governments sovereign within the state or an
unit sought to be abolished will be “imperium in imperio”. (Basco v. PAGCOR, G.R.
incorporated or merged. (Sec.9 R.A. 7160) 91649, May 14, 1991)
VICE CHAIR FOR ADMINISTRATION AND FINANCE: JEANELLE C. LEE

ACADEMICS CHAIR: LESTER JAY ALAN E. FLORES II
Facult
adde
U NIVERSITYOF
DerechoCi
vil
S ANTO T OMAS
187
5888 Distinguish decentralization of 0.0 Where the law is silent, LGU have the
administration (DA) from decentralization of discretion to select reasonable means
and methods to exercise (Rodriguez, pp.
power (DP). th
9‐10, LGC 5 Edition)
A:
DA DP 0 What are the different governmental powers
Consists merely in the Involves abdication by
of the LGU?
delegation of the national
administrative powers to government of political
A:
broaden the base of power in favor of LGUs
governmental power. declared autonomous. 0 Police power
1 Basic services and facilities
2 Power to generate and apply resources
3 Power of eminent domain
0 Define devolution with respect to local 4 Taxing Power
government units. 5 Reclassification of Land
6 Local legislative power
23 The act by which the national government 7 Closure and opening of roads
confers power and authority upon the various 8 Corporate Powers
local government units to perform specific 9 Liability of LGUs
10 Settlement of Boundary Disputes
functions and responsibilities.
11 Succession of Local Officials
12 Discipline of Local Officials
13 Authority over police units
0 GENERAL POWERS AND ATTRIBUTES OF A
LOCAL GOVERNMENT UNIT
2.a. Police Power
0 What are the sources of powers of a 0 What is the nature of the police power of the
municipal corporation? LGU?
Ȁ㨀ĀĀĀĀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀĀĀȀ㨀 က̀̀ĀȀĀ㨀
A:
ĀĀȀȀ⸀ĀᜀĀᜀĀᜀĀᜀĀᜀ0 The police power of
0 Constitution
1 Statutes (e.g. LGC) the LGU is not inherent. LGUs exercise the police
2 Charter power under the general welfare clause. (Sec 16,
3 Doctrine of right to Self‐Government R.A. 7160)
(but only to those where it can be
applied) 0 What are the requisites/limitations for the
exercise of the police power for it to be
0 What are the classifications of municipal considered as properly exercised?
powers?
A:
A: 0 The interests of the public generally, as
0 Express, Implied, Inherent distinguished from those of a particular
1 Government or public, Corporate or class, require the interference of the
private state. (Equal protection clause)
2 Intramural, extramural 1 The means employed are reasonably
3 Mandatory, directory; ministerial, necessary for the attainment of the
discretionary object sought to be accomplished and
not duly oppressive. (Due process
0How are powers to be executed? clause)
2 Exercisable only within the territorial
A: limits of the LGU, except for protection
of water supply (Sec 16, R.A. 7160)
0 Where statute prescribes the manner of
3 Must not be contrary to the
exercise, procedure must be followed.
Constitution and the laws.
188
POLITICAL LAW TEAM:
LOCAL GOVERNMENTS
23 May a nuisance be abated without a judicial profession. (Acebedo Optical v. CA, G.R. No.
proceeding? 100152, Mar. 31, 2000)
23 Yes, provide it is nuisance per se. The

abatement of nuisances without judicial 2.b. Eminent Domain
proceedings applies to nuisance per se or those
which affect the immediate safety of persons and 0 What are the requisites for a valid exercise of
property and may be summarily abated under the power of eminent domain by LGU?
undefined law of necessity. (Tayaban v. People,
G.R. No. 150194, Mar. 6, 2007) 5888 OPOC
5888 An Ordinance is enacted by
Note: The local sanggunian does not have the power
the local legislative council authorizing
to find, as a fact, that a particular thing is a nuisance the local chief executive, in behalf of the
per se, a thing which must be determined and local government unit, to exercise the
resolved in the ordinary courts of law (AC Enterprise, power of eminent domain or pursue
Inc. v. Frabelle Properties Corporation, G.R. No. expropriation proceeding over a
166744, Nov. 2, 2006) particular property.
23 What does the power to issue licenses and Note: A resolution will not suffice for a
permits include? LGU to be able to expropriate private
property; a municipal ordinance is
5888 It includes the power to revoke, withdraw different from a resolution in that an
or restrict through the imposition of certain ordinance is a law while a resolution is
conditions. However, the conditions must be merely a declaration of the sentiment or
reasonable and cannot amount to an arbitrary opinion of a lawmaking authority on a
interference with the business. (Acebedo Optical specific matter.
Company, Inc. vs. CA, G.R. No. 100152. March 31,
2000) 5889 For Public use, purpose or
welfare of for the benefit of the poor or
Note: Only the Sanggunian, not the mayor of the landless
city, has the power to allow cockpits, stadiums, etc. 5890 Payment of just Compensation
Without an ordinance, he cannot compel mayor to 5891 A valid and definite Offer has
been previously made to the owner of
issue him a business license (Canet v. Decena, G.R.
the property sought to be expropriated,
No. 155344, Jan. 20, 2004) but said offer was not accepted.
(Municipality of Paranaque vs. V.M.
Distinguish between the grant of a license or Realty Corporation G.R. No. 127820.
permit to do business and the issuance of a July 20, 1998)
license to engage in the practice of a particular
profession. Q. What are the due process requirements in
eminent domain?
A:
0 Offer must be in writing specifying:
LICENSE/PERMIT TO DO LICENSE TO ENGAGE IN 0.0 Property sought to be acquired
BUSINESS A PROFESSION 0.1 The reason for the acquisition
Board or Commission 0.2 The price offered
Granted by the local
tasked to regulate the
authorities Note:
particular profession
Authorizes the person to Authorizes a natural 2.0 If owner accepts offer: a contract of
engage in the business person to engage in the sale will be executed
or some form of practice or exercise of
commercial activity his or her profession 2.1 If owner accepts but at a higher
price: Local chief executive shall call a
Note: A business permit cannot, by the imposition of conference for the purpose of
reaching an agreement on the selling
condition, be used to regulate the practice of a
price; If agreed, contract of sale will
be drawn. (Article 35 of LGC IRR)
Facult DerechoCi
What are the requisites for an authorized these limits, it usurps the legislative functions of
immediate entry? the municipal council or president. Such has been
the consistent course of executive authority.”
(Velazco v. Blas G.R. No., L‐30456 July 30, 1982)
A:
0 The filling of a complaint for
expropriation sufficient in form and 2.c. Taxation
substance
1 The deposit of the amount equivalent to
fifteen percent (15%) of the fair market 23 What is the nature of the power of taxation?
value of the property to be expropriated In LGUs?
based on its current tax declaration.
(City of Iloilo vs Legaspi: G.R. No. 512 A municipal corporation, unlike a sovereign
154614, November 25, 2004) state, is clothed with no inherent power of
taxation. The charter or statue must plainly show
Note: Upon compliance, the issuance of writ of
an intent to confer that power or the municipality
possession becomes ministerial. (City of Iloilo vs
cannot assume it. And the power when granted is
Legaspi, G.R. No. 154614, November 25, 2004)
to be construed strictissimi juris. (Medina vs. City
0 What are the two phases of expropriation of Baguio, G.R. No. L‐4060 August 29, 1952)
proceedings?
0 Under the Constitution, what are the three
A: main sources of revenues of local government
0 The determination of the authority to units?
exercise the power of eminent domain 0
and the propriety of its exercise in the 0.14848 Taxes, fees, and charges. (Sec.
context of the facts involved in the suit. 5, Art. X, 1987 Constitution)
0.14849 Share in the national taxes.
1 The determination by the court of “just (Share in the proceeds of the utilizations
compensation for the property sought and development of the national wealth
to be taken. (Brgy. Son Roque, Talisay, within their areas. (Sec. 7, Art. X, 1987
Cebu v. Heirs of Francisco Pastor, G.R. Constitution)
No. 138896, June 20, 2000) 0.14850 Sec. 6, Art. X, 1987 Constitution)
0 May the Sangguniang Panlalawigan validly ĀȀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀĀĀȀ㨀ĀĀĀĀĀĀᜀĀᜀĀᜀĀᜀĀᜀ

disapprove a resolution or ordinance of a ĀᜀĀᜀᄀ̀̀ĀȀ1 What are the fundamental
municipality calling for the expropriation of principles that shall govern the exercise of the
private property to be made site of a Farmers
taxing and revenue‐raising powers of local
center and other government sports facilities on
the ground that said “expropriation is government units?
unnecessary considering that there are still
available lots of the municipality for the A:
establishment of a government center”? 0 Taxation shall be uniform in each local
government unit
23 No, The only ground upon which a provincial 1 Taxes, fees, charges and other
board may declare any municipal resolution, impositions shall be equitable and
ordinance or order invalid is when such based as far as practicable on the
resolution, ordinance, or order is ‘beyond the taxpayer’s ability to pay; be levied and
powers conferred upon the council or president collected only for public purpose; not be
making the same.’ A strictly legal question is unjust, excessive, oppressive, or
before the provincial board in its consideration of confiscatory; not be contrary to law,
a municipal resolution, ordinance, or order. The public policy, national economic policy,
provincial board’s disapproval of any resolution, or restraint of trade;
ordinance, or order must be premised specifically 2 The collection of local taxes, fees,
upon the fact that such resolution, ordinance, or charges and other impositions shall in
order is outside the scope of the legal powers no case be left to any private person
conferred by law. If a provincial board passes 3 The revenue collected shall inure solely
to the benefit of and be subject to
190
POLITICAL LAW TEAM:
LOCAL GOVERNMENTS
disposition by, the local government imposed by the national government for whatever
unit, unless specifically provided purpose." As a rule, the term "shall" is a word of
therein; command that must be given a compulsory
0.0.0 Each local government, as far as meaning. The provision is, therefore, imperative.
practicable, evolves a progressive (Pimentel, Jr. v. Aguirre, G.R. No. 132988, July 19,
system of taxation. (Sec. 130, R.A. 7160) 2000)
0 Under the Constitution, what is the basis of 0 What are the fundamental principles governing
ARMM’s taxing power? financial affairs, transactions and operations of
LGUs?
0 The ARMM has the legislative power to create
sources of revenues within its territorial A:
jurisdiction and subject to the provisions of the 23 No money shall be paid out of the local
1987 Constitution and national laws. (Sec. 20[b], treasury except in pursuance of an
Art. X) appropriation ordinance or law;
3 Distinction between the power to tax by 24 Local government funds and monies
shall be spent solely for public purposes;
ordinary LGUs and that of the Autonomous
Regions. 25 Local revenue is generated only from
sources expressly authorized by law or
A: ordinance, and collection thereof shall
at all times be acknowledged property
LGU’s outside LGU’s inside autonomous
autonomous regions regions (i.e. ARMM) 26 All monies officially received by a local
Basis of Taxing Power government officer in any capacity or on
Organic Act which Sec. any occasion shall be accounted for as
Sec. 5, Article X, 1987 20(b), Article X, 1987 local funds, unless otherwise provided
Constitution Constitution allows
Congress to pass
27 Trust funds in the local treasury shall
Governing Guidelines and limitatitons
not be paid out except in the fulfillment
Local Government of the purpose for which the trust was
Respective Organic Act created or the funds received
Code of 1991
28 Every officer of the local government
unit whose duties permit or require the
Note: Unlike Sec. 5, Article X, Sec. 20, Article X of the
possession or custody of local funds
1987 Constitution is not self‐executing. It merely shall be properly bonded, and such
authorizes Congress to pass the Organic Act of the officer shall be accountable and
autonomous regions which shall provide for responsible for said funds and for the
legislative powers to levy taxes upon their safekeeping thereof in conformity with
inhabitants. the provisions of law;
5888 The president, through AO 372, orders the 29 Local governments shall formulate a
sound financial plans and local budgets
withholding of 10 percent of the LGUs' IRA
shall be based on functions, activities
"pending the assessment and evaluation by the and projects, in terms of expected
Development Budget Coordinating Committee of results
the emerging fiscal situation" in the country. Is
the AO valid? 30 Local budget plans and goals shall, so far
as practicable, be harmonized with
0 No, A basic feature of local fiscal autonomy is national development plans, goals and
the automatic release of the shares of LGUs in the strategies in order to optimize the
national internal revenue. This is mandated by no utilization of resources and to avoid
less than the Constitution. The Local Government duplication in the use of fiscal and
Code specifies further that the release shall be physical resources
made directly to the LGU concerned within five
(5) days after every quarter of the year and "shall
not be subject to any lien or holdback that may be
Facult DerechoCi
3 Component city or
23 Local budgets shall operationalize municipality where it was
approved local development plans extracted‐ 30%
4 Barangay where it was
24 Local government units shall ensure that extracted‐ 40% (Sec. 138
their respective budgets incorporate the R.A. 7160)
requirements of their component units
and provide for equitable allocation of Āᄀ̀̀ĀȀĀ㨀ĀĀĀȀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀ
resources among these component ĀĀĀĀĀĀĀȀĀ㨀ĀĀĀȀĀᜀĀᜀĀᜀĀᜀĀᜀ0
units Professional tax: not exceeding
P300.00. (Sec. 139 R.A. 7160)
25 National planning shall be based on Āᄀ̀̀ĀȀĀ㨀ĀĀĀȀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀĀĀĀĀĀĀȀĀ
local planning to ensure that the needs 㨀ĀĀĀȀĀᜀĀᜀĀᜀĀᜀĀᜀ1 Amuseme
and aspirations of the people as nt tax: not more than 30% of the
articulated by the local government gross receipts. (Sec. 140 R.A. 7160)
units in their respective local
Āᄀ̀̀ĀȀĀ㨀ĀĀĀȀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀĀĀĀĀĀĀȀĀ
development places, are considered in
㨀ĀĀĀȀĀᜀĀᜀĀᜀĀᜀĀᜀ2 Annual
the formulation of budgets of national
fixed tax for every delivery truck or
line agencies or offices
van of manufacturers or producers,
wholesalers of, dealers, or retailers
26 Fiscal responsibility shall be shared by
in certain products: not exceeding
all those exercising authority over the
P500.00 (Sec. 141 R.A. 7160)
financial affairs, transactions and
operations of the local government
0 For municipalities‐ May levy taxes, fees,
units; and
and charges not otherwise levied by
provinces, except as provided for in the
27 The local government unit shall
LGC.
endeavor to have a balanced budget in
0 Tax on business. (Sec. 143 R.A.
each fiscal year of operation(Sec. 305,
7160)
R.A. 7160)
1 Fees and charges on business and
occupation except those reserved
23 What are the taxes that may be imposed by
for the province. (Sec. 147 R.A.
the LGUs? 7160)
2 Fees for sealing and licensing of
A: weights and measures. (Sec. 148
23 For provinces R.A. 7160)
Tax on transfer of real property 3 Fishery rentals, fees and charges.
ownership (sale, donation, barter, (Sec. 149 R.A. 7160)
or any other mode of transferring
ownership): not more than 50% of 0 For cities – May levy taxes, fees and
1% of the total consideration charges which the province and
involved in the acquisition of the municipality may impose provided:
property (Sec. 135 R.A. 7160) 0 That the taxes, fees and charges
Tax on business of printing and levied and collected of highly
publication: not exceeding 50% of urbanized and independent
1% of the gross annual receipt component cities shall accrue to
(Sec. 136 R.A. 7160) them, and
Franchise tax: not exceeding 50% of 1% 1 That the rate that the city may levy
of the gross annual receipt (Sec. may exceed the maximum rates
137 R.A. 7160) allowed for the province or
Tax on sand, gravel and other quarry municipality by not more than 50%
resources: not more than 10% of except the rates of professional
the fair market value per cubic and amusement taxes. (Sec. 151
meter. Proceeds will be distributed R.A. 7160)
as follows:
i. Province‐ 30% 0 What are the taxes, fees and charges that
may be imposed by the barangay?
A:
Taxes on stores and retails with fixed
business establishment with gross sales
POLITICAL LAW TEAM:

LOCAL GOVERNMENTS
of the preceding calendar year of ensuing quarter and the taxes, fees, or charges
P50,000 or less, in the case of cities and due shall begin to accrue therefrom. (Art. 276, IRR
P30,000 or less, in the case of of LGC)
municipalities, at a rate not exceeding
1% on such gross sales or receipts. 5888 The Province of Palawan passes an
0 services rendered
ordinance requiring all owners/operators of
1 barangay clearances
2 commercial breeding of fighting cocks, fishing vessels that fish in waters surrounding
cockfights and cockpits the province to invest ten percent (10%) of their
3 places of recreation which charge net profits from operations therein in any
admission fees enterprise located in Palawan. NARCO Fishing
4 Billboards, signboards, neon signs and Corp., a Filipino corporation with head office in
outdoor advertisements. (Sec. 152 R.A. Navotas, Metro Manila, challenges the ordinance
7160)
as unconstitutional. Decide the case.
Note: Where the Secretary of Justice reviews,
0 The ordinance is invalid. The ordinance was
pursuant to law, a tax measure enacted by a local
apparently enacted pursuant to Art. X, Sec. 7 of
government unit to determine if the officials
the Constitution, which entitles local governments
performed their functions in accordance with law,
to an equitable share in the proceeds of the
i.e, with the prescribed procedure for the enactment
of tax ordinances and the grant of powers under the utilization and development of the national
Local Government Code, the same is an act of mere wealth within their respective areas. However,
supervision and not control (Drilon vs. Lim, G.R. No. this should be made pursuant to law. A law is
112497, Aug.4, 1994). needed to implement this provision and a local
government cannot constitute itself unto a law. In
0 What procedures must a LGU comply with for the absence of a law the ordinance in question is
a revenue ordinance to be valid? invalid.
A: 0 Who determines the legality or propriety of a

5888 A prior public hearing on the local tax ordinance or revenue measure?
measure conducted according to
prescribed rules. 0 It is the Secretary of Justice who shall
5889 Publication of the tax ordinance, determine questions on the legality and
within 10 days after their approval, for 3 constitutionality of ordinances or revenue
consecutive days in a newspaper of local measures. Such questions shall be raised on
circulation provided that in provinces, appeal within thirty (30) days from the effectivity
cities, and municipalities where there thereof to the Secretary of Justice who shall
are no newspapers of local circulation, render a decision within sixty (60) days from the
the same may be posted in at least two date of receipt of the appeal: Provided, however,
(2) conspicuous and publicly accessible That such appeal shall not have the effect of
places. suspending the effectivity of the ordinance and
the accrual and payment of the tax, fee, or charge
Note: If the tax ordinance or revenue measure levied therein: Provided, finally, That within thirty
contains penal provisions as authorized in (30) days after receipt of the decision or the lapse
Article 280 of this Rule, the gist of such tax of the sixty‐day period without the Secretary of
ordinance or revenue measure shall be Justice acting upon the appeal, the aggrieved
published in a newspaper of general circulation party may file appropriate proceedings with a
within the province where the sanggunian
court of competent jurisdiction (RTC). (Sec. 187
R.A. 7160)
concerned belongs. (Art. 276, IRR of LGC)
Q: When shall a tax ordinance take effect? 23 What is the nature of a community tax?
In case the effectivity of any tax ordinance or 0 Community tax is a poll or capitation tax which
revenue measure falls on any date other than the is imposed upon person who resides within a
beginning of the quarter, the same shall be specified territory.
considered as falling at the beginning of the next
Facult DerechoCi
0 Who are exempted from the payment of the 0 What are the requisites for a real estate tax
community tax? protest?
A: A:
1. Diplomatic and consular 0 The taxpayer has already paid the tax
representatives; 1 The protest must be in writing
0 Transient visitors when their stay in the 2 Must be filed within 30 days from
Philippines does not exceed 3 months. payment of the tax to the local treasurer
(Sec. 159 R.A. 7160) concerned who shall decide the same
within 60 days from receipt of such
0 What are the remedies available to the local protest.
government units to enforce the payment of
Note: Payment of tax is precondition in protest
taxes?
questioning the reasonableness of the assessment or
amount of tax; but not when the issue raised is the
A:
authority of assessor or treasurer. (Ursal, Philippine
0 Imposing penalties (surcharges and
Law on Local Government Taxation, 2000 Ed.)
penalty interest) in case of delinquency
(Sec. 167 R.A. 7160)
0 How much real property tax can be imposed
1 Availing local government’s liens (Sec.
173 R.A. 7160) by the local government units?
2 Administrative action through distraint
of goods, chattels, and other personal 0 A real estate levy may be imposed by the
property (Sec. 174(a) R.A. 7160) province or city or a municipality w/in metro
3 Judicial action (Sec. 174(b) R.A. 7160) manila as follows:
0What are the other sources of revenue? 23 By the province, not exceeding 1% of the
assessed value of the property; and
3 The local government units are entitled to 24 By the city or a municipality w/in metro
manila, not exceeding 2% of the assessed
definite shares in:
value of the property. (Sec. 233 R.A.
7160)
23 The proceeds from development and
utilization of mines, forests, and marine 0 Bayantel was granted by Congress after the
resources up to 40% of the gross effectivity of the Local Government Code (LGC), a
collections there from by the national
legislative franchise with tax exemption
government. (Sec. 290 R.A. 7160)
privileges which partly reads “the grantee, its
24 The proceeds of government owned or successors or assigns shall be liable to pay the
controlled corporations engaged in the same taxes on their real estate, buildings and
utilization and development of the personal property, exclusive of this franchise, as
national wealth up to 1% of the gross other persons or corporations are now or
sales or 40% of the gross collections hereafter may be required by law to pay.” This
made by the national government there
provision existed in the company’s franchise
from, whichever is higher. (Sec. 291 R.A.
7160) prior to the effectivity of the LGC. Quezon City
then enacted an ordinance imposing a real
1 What are real property taxes? property tax on all real properties located within
the city limits and withdrawing all exemptions
3 These are directly imposed on privilege to use previously granted. Among properties covered
real property such as land, building, machinery, are those owned by the company. Bayantel is
and other improvements, unless specifically imposing that its properties are exempt from tax
exempted. under its franchise. Is Bayantel correct?
0 Yes. The properties are exempt from taxation.

Note: Real property taxes are local taxes and not
national taxes. (Pimentel, 2007 Edition, p. 415) The grant of taxing powers to local governments
under the Constitution and the LGC does not
194
POLITICAL LAW TEAM:
LOCAL GOVERNMENTS
affect the power of Congress to grant tax

exemptions. 3. And the corresponding recommendation
of the secretaries of the Department of
The term "exclusive of the franchise" is Finance, Interior and Local Government,
interpreted to mean properties actually, directly and Budget and Management.
(Pimentel, Jr. vs. Aguirre, G.R. No.
and exclusively used in the radio and
132988, July 19, 2000)
telecommunications business. The subsequent
piece of legislation which reiterated the phrase May a local government unit (LGU) regulate the
“exclusive of this franchise” found in the previous subscriber rates charged by cable tv operators
tax exemption grant to the company is an express within its territorial jurisdiction?
and real intention on the part of the Congress to
once against remove from the LGC’s delegated 0 No. Under E.O. No. 205, the National
taxing power, all of the company’s properties that Telecommunications Commission has exclusive
are actually, directly and exclusively used in the jurisdiction over matters affecting CATV operation,
pursuit of its franchise. (The City Government of including specifically the fixing of subscriber rates.
Quezon City, et al., v. Bayan Telecommnications, CATV system is not a mere local concern. The
Inc., G.R. No. 162015, Mar. 6, 2006) complexities that characterize this new
technology demand that it be regulated by a
Note: An ordinance levying taxes, fees or charges
specialized agency. This is particularly true in the
shall not be enacted without any prior public hearing
area of rate‐fixing. However, there is nothing
conducted for the purpose. (Figuerres v. CA, G.R.
under E.O. 205 precludes LGUs from exercising its
No. 119172, Mar.25, 1999)
general power, under R.A. No. 7160, to prescribe
Q: What are the special levies on real property? regulations to promote health, morals, peace,
education, good order or safety and general
A: welfare of their constituents. (Batangas CATV, Inc.
23 A special education fund may also be v. CA, G.R. No. 138810, Sept. 29, 2004)
assessed in provinces, cities, or
Metropolitan Manila municipalities up
to a maximum of 1% of the assessed 2.d. Closure of Roads
value of a real property. (Sec. 235 R.A.
7160)
0 What are subject to the power of an LGU to
24 Idle lands in provinces, cities or open or close a road?
municipalities in Metro Manila may be
additionally taxed at not exceeding 5% 0 Any local road, alley, park, or square falling
of their assessed value. (Sec. 236 R.A. within its jurisdiction may be closed, either
7160) permanently or temporary. (Sec 21(a) R.A. 7160)
25 Lands benefited by public works
projects or improvements in provinces,
cities and municipalities may be levied a 0 What are the limitations in case of permanent
special tax of not exceeding 60% of the and temporary closure?
actual cost of the project. (Sec. 240 R.A.
7160) A:
0 In case of permanent closure:
3 What are the requisites so that the President 0 Must be approved by at least 2/3
may interfere in local fiscal matters? of all the members of the
sanggunian and when necessary
A: provide for an adequate substitute
̀̀ĀĀĀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀᄀ̀̀ĀȀ㨀ĀĀĀĀĀĀᜀ for the public facility
ĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀ768 An 1 Adequate provision for the public
unmanaged public sector deficit of the safety must be made
national government; 2 The property may be used or
conveyed for any purpose for
̀̀ĀĀĀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀᄀ̀̀ĀȀ㨀ĀĀĀĀĀĀᜀ which other real property may be
ĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀ769 Consultations
with the presiding officers of the Senate
and the House of Representatives and
the presidents of the various local
leagues;
Facult DerechoCi
lawfully used or conveyed, but no Note: He shall certify within 10 days from the
freedom park shall be closed passage of ordinances enacted and resolutions
permanently without provision for adopted by the sanggunian in the session over which
its transfer or relocation to a new he temporarily presided. (Sec. 49(b) R.A. 7160)
site. (Sec 21(a&b) R.A. 7160)
0 May an incumbent Vice‐Governor, while
23 In case of temporary closure:
23 For actual emergency, fiesta concurrently the acting governor, continue to
celebration, public rallies, preside over the sessions of the Sangguniang
agricultural or industrial works and Panlalawigan? If not, who may preside in the
highway telecommunications and meantime?
water work projects
24 Duration of which shall be specified 0 A vice‐governor who is concurrently an acting
25 Except for those activities not
governor is actually a quasi‐governor. For
officially sponsored or approved by
the LGU concerned (Sec 21(c) R.A. purposes of exercising his legislative prerogatives
7160) and powers, he is deemed a non‐member of the
SP for the time being.
Note: Any city, municipality or barangay may, by
ordinance, temporarily close and regulate the use of In the event of inability of the regular presiding
a local street, road, thoroughfare or any other public officer to preside at the sanggunian session, the
place where shopping, Sunday, flea or night markets members present and constituting a quorum shall
may be established and where articles of commerce elect from among themselves a temporary
may be sold or dispensed with to the general public. presiding officer.(Gamboa v. Aguirre, G.R. No.
(Sec 21(d) R.A. 7160) 134213, July 20, 1999)
Q: What is the quorum in the sanggunian?

2.e. Local Legislative Power
0 A majority of all the members of the
5888 Who exercises local legislative sanggunian who have been elected and qualified.
power and their presiding officer (PO)? (Sec. 53(a) R.A. 7160)
A: 0 What are the procedural steps or actions to be

Sangguniang taken by the presiding officer if there is a
Province Vice‐governor
panlalawigan question of quorum and if there is no quorum?
Sangguniang City vice‐
City
panlungsod mayor
0Should there be a question of quorum raised
Sangguniang Municipality
Municipality during a session, the PO shall immediately
bayan vice‐mayor
proceed to call the roll of the members and
Sangguniang Punong
Barangay thereafter announce the results. (Sec. 53(a) R.A.
barangay barangay
7160)
Note: The PO shall vote only to break a tie. (Sec.

If there is no quorum:
49(a) R.A. 7160)
23 Declare a recess until such time that
quorum is constituted
0 In the absence of the regular presiding officer, 24 Compel attendance of the member
who presides in the sanggunian concerned? absent without justifiable cause
25 Declare the session adjourned for lack
0 The members present and constituting a of quorum and no business shall be
transacted (Sec. 53(b) R.A. 7160)
quorum shall elect from among themselves a
temporary presiding officer.
23 How are sessions fixed?
196
POLITICAL LAW TEAM:
LOCAL GOVERNMENTS
A: sentiment or opinion of a
IF REGULAR SESSIONS IF SPECIAL SESSIONS lawmaking body on a specific
When public interests matter
st General and
By resolution on the 1 so demand may be
day of the session called by the local chief permanent Temporary in nature
immediately following the executive or by a character
election the elections of majority of the GR: Not necessary in resolution
its members members of the
sanggunian XPN: unless decided otherwise
Third reading is
by a majority of all the
necessary for an
23 What are the requirements of a sanggunian sangguniang members (Article
ordinance
session? 107, pars. a and c,
Implementing Rules and
Regulations of RA 7160)
A:
5888 Shall be open to public unless it is
a closed‐door session Q. What are the requisites for validity? (must
5889 No two sessions, regular or not be CUPPU, must be GC)
special, may be held in a single day
5890 Minutes of the session be A:
recorded and each sanggunian shall
0 Must not Contravene the constitution
keep a journal and record of its
and any statute
proceedings which may be published
1 Must not be Unfair or oppressive
upon resolution of the sanggunian
2 Must not be Partial or discriminatory
concerned.
3 Must not Prohibit, but may regulate
5891 In case of special sessions:
trade
4 Must not be Unreasonable
5888 Written notice to the members 5 Must be General in application and
must be served personally at least Consistent with public policy. (Magtajas
24 hours before vs. Pryce Properties Corporation, Inc,
5889 Unless otherwise concurred in by G.R. No. 111097 July 20, 1994)
2/3 votes of the sanggunian
members present, there being no
quorum, no other matters may be Local Initiative and Referendum
considered at a special session
except those stated in the notice.
(Sec. 52 R.A. 7160) Q: Distinguish local initiative from referendum.
On its first regular session, may the Sanggunian A:

transact business other than the matter of INITIATIVE REFERENDUM
adopting or updating its existing rules or The legal process The legal process
procedure? whereby the registered whereby the registered
voters of a LGU may voters of the LGU may
0 Yes. There is nothing in the language of the LGC directly propose, enact approve, amend or reject
that restricts the matters to be taken up during or amend any any ordinance enacted by
ordinance. (Sec. 120 the sanggunian. (Sec. 126
the first regular session merely to the adoption or
R.A. 7160) R.A. 7160)
updating of the house rules. (Malonzo v. Zamora,
G.R. No. 137718, July 27, 1999).
Q: What are the limitations on local initiative?
0 What are the products of legislative action
and their requisites for validity? A:
0 It shall not be exercised for more than
once a year.
A:
1 It shall extend only to subjects or
matters which are within the legal
ORDINANCE RESOLUTION
Law Merely a declaration of the
Facult DerechoCi
powers of the sanggunian to enact. effected(Sec. 56 and

(Sec. 124 R.A. 7160) 58, R.A. 7160)
Note: Any proposition or ordinance approved

0 What is the effect of the enforcement of a
through an initiative and referendum shall not be
disapproved ordinance or resolution?
repealed, modified or amended by the sanggunian
within 6 months from the date of approval thereof,
0 It shall be sufficient ground for the suspension
and may be amended, modified or repealed within 3
years thereafter by a vote of ¾ of all its members. In or dismissal of the official or employee (Sec. 58,
case of barangays, the period shall be 18 months R.A. 7160)
after the approval thereof. (Sec. 125 R.A. 7160)
0 When is the effectivity of ordinances or
0 How is a review of the ordinances or resolutions?
resolutions done?
A:
A: GR: Within 10 days from the date a copy is
REVIEW OF posted in a bulletin board and in at least 2
COMPONENT CITY AND conspicuous spaces. (Sec. 59(a) R.A. 7160)
REVIEW OF BARANGAY
MUNICIPAL
ORDINANCES
ORDINANCES OR XPN: Unless otherwise stated in the
RESOLUTIONS ordinance or resolution. (Sec. 59(a) R.A.
Who reviews 7160)
Sangguniang
Sanggunian Panlalawigan Panglungsod or 0 What ordinances require publication for its
Sangguniang Bayan effectivity?
When copies of ordinance or resolutions be
forwarded A:
Within 3 days after Within 10 days after 0 Ordinances that carry with them penal
approval its enactment sanctions. (Sec. 59(c) R.A. 7160)
Period to examine 1 Ordinances and resolutions passed by
Within 30 days after the highly urbanized and independent
receipt; may examine or component cities. (Sec. 59(d) R.A. 7160)
may transmit to the
provincial attorney or 0 What are the instances of approval of
provincial prosecutor. Within 30 days after ordinances?
If the latter, must submit the receipt
his comments or A:
recommendations within ĀĀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀĀĀȀ㨀ĀᜀĀᜀĀᜀĀᜀĀᜀ
10 days from receipt of the ĀᜀĀᜀĀᜀĀ0 If the chief executive approves
document the same, affixing his signature on each
and every page thereof
When declared valid
If no action has been taken ĀĀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀĀĀȀ㨀ĀᜀĀᜀĀᜀĀᜀĀᜀ
within 30 days after Same ĀᜀĀᜀĀᜀĀ1 If the local chief executive
vetoes the same, and the veto is
submission
overridden by 2/3 vote of all members
When invalid (grounds) of the sanggunian.
If inconsistent with
the law or city or Note: Local Chief Executive may veto the
municipal ordinance ordinance only once on the ground that
If beyond the power
conferred on the the ordinance is ultra vires and prejudicial
Effect: Brgy ordinance to public welfare. The veto must be
sangguniang panlungsod
is suspended until communicated to the sanggunian within
such time as the ᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀᄀ̀̀ĀȀ㨀ĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀ
revision called is Āᜀ768 15 days = province
ᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀᄀ̀̀ĀȀ㨀ĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀ
Āᜀ769 10 days = city or municipality
0 What are the items that the local chief

executive may veto:
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POLITICAL LAW TEAM:
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0 What is the difference between the suability

A: and liability of the Local Government?
Item/s of an appropriation ordinance.
Ordinance/resolution adopting local ĀĀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀᄀ̀̀ĀȀ㨀ĀᜀĀᜀĀᜀĀᜀĀᜀ
development plan and public
ĀᜀĀᜀĀᜀĀ0 Where the suability of the
investment program
Ordinance directing the payment of money state is conceded and by which liability is
or creating liability ascertained judicially, the state is at liberty to
determine for itself whether to satisfy the
Note: Ordinances enacted by the sangguniang judgment or not. (Municipality of Hagonoy
barangay shall, upon approval by a majority of all its Bulacan vs. Hon. Simeon Dumdum, G.R. No.
members be signed by the punong barangay. The 168289 March 22, 2010)
latter has no veto power.
0 May LGU funds and properties be seized
under writs of execution or garnishment to
2.f. Corporate Powers satisfy judgments against them?
Q: What are the corporate powers of an LGU? 5888 No, The universal rule that where the
State gives its consent to be sued by private
A: parties either by general or special law, it may
0To have continuous succession in its limit claimants action only up to the completion of
corporate name proceedings anterior to the stage of execution and
1To sue and be sued
that the power of the Courts ends when the
judgment is rendered, since government funds
Note: Only the Provincial Fiscal or the Municipal
Attorney can represent a province or municipality in
and properties may not be seized under writs of
lawsuits. This is mandatory. Hence, a private attorney execution or garnishment to satisfy such
cannot represent a province or municipality. judgments, is based on obvious considerations of
public policy. Disbursements of public funds must
0 To have and use a corporate seal be covered by the corresponding appropriations
as required by law. The functions and public
Note: Any new corporate seals or changes on such services rendered by the State cannot be allowed
shall be registered with DILG. to be paralyzed or disrupted by the diversion of
public funds from their legitimate and specific
To acquire and convey real or personal objects. (Traders Royal Bank v. Intermediate
property Appellate Court, G.R. No. 68514, December 17,
To enter into contracts; and 1990)
To exercise such other powers as granted to
corporations (Sec. 21, R.A. 7160)
0 What is the exception to the above stated rule?
0 Who is the proper officer to represent the city
in court actions? 5888 The rule on the immunity of public
funds from seizure or garnishment does not apply
0 The city legal officer is supposed to represent where the funds sought to be levied under
the city in all civil actions and special proceedings execution are already allocated by law specifically
wherein the city or any of its officials is a party, for the satisfaction of the money judgment
but where the position is as yet vacant, the City against the government. In such a case, the
Prosecutor remains the city’s legal adviser and monetary judgment may be legally enforced by
officer for civil cases. (Asean Pacific Planners vs. judicial processes. (City of Caloocan v. Allarde,
City of Urdaneta, G.R. No. 162525, September 23, G.R. No. 107271, September 10, 2003)
2008)
23 What are the requisites of a valid municipal
contract?

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A: 0 Is Public bidding required when LGUs enter

23 The local government unit has the into contracts?
express, implied or inherent power to
enter into the particular contract 0 Yes, in the award of government contracts, the
law requires competitive public bidding. It is
24 The contract is entered into by the
aimed to protect the public interest by giving the
proper department board, committee,
officer or agent. public the best possible advantages thru open
competition. It is a mechanism that enables the
Note: No contract may be entered into by the local government agency to avoid or preclude
chief executive on behalf of the local government anomalies in the execution of public contracts.
without prior authorization by the sanggunian (Garcia vs.Burgos, G.R. No. 124130, June 29,
concerned, unless otherwise provided. (Sec 22(c) 1998)
R.A. 7160)
When is there a failure of bidding?
23 The contract must comply with certain
substantive requirements: 23 when any of the following occurs:
23 Actual appropriation; and
23 There is only one offeror
24 certificate of availability of funds
24 When all the offers are non‐complying
or unacceptable. (Bagatsing vs.
24 The contract must comply with the Committee on Privatization, G.R. No.
formal requirements of written 112399 July 14, 1995 )
contracts
Note: This includes the power to acquire and convey 24 Can a municipal contract be ratified?
properties by the LGU through written contracts.
5888 No, when the local chief executive
Q: What are ultra vires contracts? enters into contracts, he needs prior authorization
or authority from the Sanggunian and not
5888 These are contracts entered into ratification. (Vergara vs. Ombudsman, G.R. No.
without the first and third requisites. Such are null 174567, March 12, 2009)
and void and cannot be ratified or validated.
Q: What properties may be alienated by LGUs?
0 What documents must support the contract
of sale entered into by the LGU? 0 Only Properties owned in its private or
proprietary capacity (Patrimonial Property).
A: (Province of Zamboanga del Norte vs. City of
1. Resolution of the sanggunian Zamboanga, G.R. No. L‐24440, March 28, 1968)
authorizing the local chief executive to
enter into a contract of sale. The Article 424 of the Civil Code lays down the basic
resolution shall specify the terms and
principle that properties of public dominion
conditions to be embodied in the
contract; devoted to public use and made available to the
0 Ordinance appropriating the amount public in general are outside the commerce of
specified in the contract man and cannot be disposed of or leased by the
1 Certification of the local treasurer as to local government unit to private persons.
availability of funds together with a (Macasiano vs. Diokno, G.R. No. 97764, August
statement that such fund shall not be 10, 1992)
disbursed or spent for any purpose
other than to pay for the purchase of
the property involved. (Jesus is Lord 23 Give important rules regarding LGU’s power
Christian School Foundation, Inc. vs. to acquire and convey real or personal property.
Municipality of Pasig, G.R. No. 152230,
August 9, 2005)
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POLITICAL LAW TEAM:
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A: 23 What is the rule with respect to the liabilities

23 In the absence of proof that the of (LGU’s) and their officials?
property was acquired through
corporate or private funds, the 5888 LGUs and their officials are not exempt
presumption is that it came from the
from liability for death or injury to persons or
State upon the creation of the
municipality and, thus, is governmental damage to property (Sec. 24, R.A. 7160).
or public property. (Salas vs. Jarencio,
G.R. No. L‐29788, August 30, 1972; What are the specific provisions making LGUs
Rabuco vs. Villegas, G.R. No. L‐24661, liable?
February 28, 1974)
24 Town plazas are properties of public A:
dominion; they may be occupied
0 LGU shall be liable for damages for the
temporarily, but only for the duration of
death of, or injuries suffered by, any
an emergency (Espiritu vs. Municipal
person by reason of the defective
Council of Pozorrubio, Pangasinan, G.R.
condition of roads, streets, bridges,
No. L‐11014, January 21, 1958).
public buildings, and other public works
25 Public plazas are beyond the commerce
under their control or supervision. (Art.
of man, and cannot be the subject of
2189, New Civil Code)
lease or other contractual undertaking.
And, even assuming the existence of a
valid lease of the public plaza or part Note: LGU is liable even if the road does not belong
thereof, the municipal resolution to it as long as it exercises control or supervision over
effectively terminated the agreement, said roads.
for it is settled that the police power
cannot be surrendered or bargained The State is responsible when it acts through
away through the medium of a contract. a special agent. (Art. 2180, NCC)
(Villanueva vs. Castaneda, G.R. No. L‐
61311, September 2l, 1987) When a member of a city or municipal police
force refuses or fails to render aid or
23 Who has the authority to negotiate and protection to any person in case of
secure grants? danger to life or property, such peace
officer shall be primarily liable for
23 The local chief executive may, upon authority damages and the city or municipality
shall be subsidiarily responsible
of the sanggunian, negotiate and secure financial
therefor.(Art. 34, NCC)
grants or donations in kind, in support of the basic
services and facilities enumerated under Sec. 17, 0 What are the bases for municipal liabilities?
R.A. 7160 from local and foreign assistance
agencies without necessity of securing clearance A:
or approval of any department, agency, or office
0 Liability arising from violation of law
of the national government or from any higher
local government unit; Provided that projects Note: Liability arising from violation of
financed by such grants or assistance with law such as closing municipal streets
national security implications shall be approved without indemnifying persons
by the national agency concerned. prejudiced thereby, non‐payment of
wages to its employees or its refusal to
abide a temporary restraining order may
result in contempt charge and fine.
2.g. Municipal Liability
1 Liability on contracts
23 What is the scope of municipal liability?
Note: LGU is liable on a contract it enters
into provided that the contract is intra
23 Municipal liabilities arise from various sources
vires. If it is ultra vires they are not liable.
in the conduct of municipal affairs, both
governmental and proprietary.

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0 Liability for tort A:

3 LGU‐engaged (governmental function) –
Note: Liability for tort – may be held for not liable
torts arising from the performance of its 4 LGU‐engaged (proprietary function) –
private and proprietary functions under th
liable (Rodriguez, p.105, LGC 5 Edition)
the principle of respondeat superior. They
are also liable for back salaries for
employees illegally dismissed/separated or
for its refusal to reinstate employees. 2.h. Settlement of Boundary Disputes
23 What are the conditions under which a local 23 State how the two local government units
executive may enter into a contract in behalf of should settle their boundary dispute.
his government unit?
3 Boundary disputes between local government
23 WAFAC units should, as much as possible, be settled
23 The contract must be Within the power amicably. After efforts at settlement fail, then the
of the municipality dispute may be brought to the appropriate RTC in
24 The contract must be entered into by an the said province. Since the LGC is silent as to
Authorized officer (e.g. mayor with
what body has exclusive jurisdiction over the
proper resolution by the Sangguniang
Bayan, Sec. 142 LGC) settlement of boundary disputes between a
25 There must be appropriation and municipality and an independent component city
Certificate of availability of funds of the same province, the RTC have general
26 The contract must conform with the jurisdiction to adjudicate the said controversy.
Formal requisites of a written contract
as prescribed by law; and
3 What body or bodies are vested by law with
27 In some cases the contract must be
the authority to settle disputes involving:
Approved by the President and/or
provincial governor (Sec. 2068 and Sec. 23 Two or more owns within the same
2196, Revised Adm. Code) province
24 Two or more highly urbanized cities.
23 What is the doctrine of Implied Municipal
A:
Liability?
768 Boundary disputes involving two or
more municipalities within the same
4 A municipality may become obligated upon an province shall be settled by the
implied contract to pay the reasonable value of sangguniang panlalawigan concerned.
the benefits accepted or appropriated by it as to (Section 118[b], Local Government
which it has the general power to contract. Code)
(Province of Cebu v. IAC, G.R. No. L‐72841, Jan. 29, 769 Boundary disputes involving two or
1987) more highly urbanized cities shall be
settled by the sangguniang panlungsod
of the parties. (Section 118[d], Local
Note: Estoppel cannot be applied against a municipal Government Code)
corporation in order to validate a contract which the
municipal corporation has no power to make or
23 State the importance of drawing with precise
which it is authorized to make only under prescribed
strokes the territorial boundaries of a local
limitations or in a prescribed mode or manner – even
government unit.
if the municipal corporations has accepted benefits
thereunder. (Favis vs. Municipality of Sabangan, G.R.
23 The boundaries must be clear for they define
No. L‐26522, February 27, 1969)
the limits of the territorial jurisdiction of a local
Q: State the rules on municipal liability for tort. government unit. It can legitimately exercise
powers of government only within the limits of its
territorial jurisdiction. Beyond these limits, its acts
are ultra vires. Needless to state, any uncertainty
in the boundaries of local
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POLITICAL LAW TEAM:
LOCAL GOVERNMENTS
government units will sow costly conflicts in the At least 23 years old on election day
exercise of governmental powers which ultimately
0 Governor
will prejudice the people’s welfare. This is the evil
1 Vice Governor
sought to be avoided by the Local Government 2 Mayor
Code in requiring that the land area of a local 3 Vice Mayor
government unit must be spelled out in metes 4 Member of Sangguniang Panlungsod in
and bounds, with technical descriptions. highly urbanized cities
(Mariano, Jr. v. COMELEC, G.R. No., 118577, Mar. At least 21 years old
7, 1995)
0 Mayor
1 Vice Mayor of Independent component
3. LOCAL OFFICIALS cities or municipalities
3.a. Elective Officials At least 18 years old
0 Member of Sangguniang Panglungsod

23 What are the qualifications of elective 1 Member of Sangguniang Bayan
government official? 2 Punong Barangay
3 Member of Sangguniang Barangay
A: At least 15 years of age but not more than 18 years
23 Must be a Filipino citizen of age on election day (as amended under R.A.
24 Must be a registered voter in: 9164)
23 The barangay, municipality, city or
province where he intends to be Candidates for the Sangguniang Kabataan
elected
24 The district where he intends to be
5888 When should the citizenship
elected in case of a member if the
Sangguniang Panlalawigan, requirement be possessed?
Sangguniang Panlungsod, or
Sangguniang Bayan The citizenship requirement in the LGC is to be
possessed by the elective official, at the latest, as
25 Must be a resident therein for at least 1 of the time he is proclaimed and at the start of
year immediately preceding the day of the term of office to which he has been elected.
the election;
The LGC does not specify any particular date or
time when the candidate must possess
Note: The term “residence” under Section 39(a) of
citizenship, unlike the requirements for residence
the LGC of 1991 is to be understood not in its
and age. Repatriation under PD 825 is valid and
common acceptation as referring to “dwelling” or
“habitation”, but rather to “domicile” or “legal effective and retroacts to the date of the
residence” that is, the place where a party actually application. (Frivaldo v. COMELEC, G.R. No.
or constructively has his permanent home, where he, 120295, June 28, 1996)
no matter where he may be found at any given time,
eventually intends to return and remain (animus Note: Filing of certificate of candidacy is sufficient to
manendi)( Coquilla v. COMELEC, G.R. No. 151914, renounce foreign citizenship. However the Court
July 31, 2002). ruling has been superseded by the enactment of R.A.
No. 9225 in 2003. R.A. No. 9225 Sec. 5 expressly
0 Able to read and write Filipino/ any provides for the conditions before those who re‐
other local language or dialect acquired Filipino citizenship may run for a public
office in the Philippines. (Lopez v. COMELEC, G.R. No.
1 Age requirement: (Sec. 39, LGC) 182701, June 23, 2008)
Upon repatriation, a former natural‐born Filipino is

deemed to have recovered his original status as a
natural‐born citizen. (Bengzon III v. HRET, GR 142840
May 7, 2001)

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0 X was a natural‐born Filipino who went to the more of imprisonment, within 2 years
USA to work and subsequently became a after serving sentence
naturalized American citizen. However, prior to Removed from office as a result of an
administrative case
filing his Certificate of Candidacy for the Office of
Convicted by final judgment for violating the
Mayor of the Municipality of General Macarthur, oath of allegiance of the Republic
Eastern Samar, on 28 March 2007, he applied for With dual citizenship
reacquisition of his Philippine Citizenship. Such
application was subsequently granted. Y filed a Note: The phrase “dual citizenship” as a
petition to disqualify X on the ground of failure disqualification in R.A. No. 7160, §40(d) and in R.A.
to comply with the 1‐year residency No. 7854, §20 must be understood as referring to
requirement. Y argues that reacquisition of “dual allegiance.” (Mercado v. Manzano, G.R. No.
Philippine citizenship, by itself, does not 135083, May 26,1999)
automatically result in making X a resident of the
locality. Is Y correct? Fugitives from justice in criminal or non‐
political cases here or abroad
5888 Yes. X’s reacquisition of his
Note: Fugitives from justice in criminal and non‐
Philippine citizenship under R.A. No. 9225 had no
criminal cases here and abroad include not only
automatic impact or effect on his those who flee after conviction to avoid punishment,
residence/domicile. He could still retain his but likewise those who after being charged, flee to
domicile in the USA, and he did not necessarily avoid prosecution (Marquez v. COMELEC, G.R. No.
regain his domicile in the Municipality of General 112889, April 18, 1995; Rodriguez v. COMELEC, GR
Macarthur, Eastern Samar, Philippines. X merely 120099 July 24, 1996)
had the option to again establish his domicile in
the Municipality of General Macarthur, Eastern 0 Permanent residents in a foreign
Samar, Philippines, said place to have become his country or those who have acquired the
new domicile of choice. The length of his right to reside abroad and continue to
residence therein shall be determined from the avail of the same right after the
effectively of this LGC;
time he made it his domicile of choice, and it shall
1 Insane or feeble‐minded (Sec. 40, LGC)
not retroact to the time of his birth. It is the fact
2 Other grounds for disqualification:
of residence that is the decisive factor in 0 Vote buying (upon determination
determining whether or not an individual has in a summary administrative
satisfied the residency qualification requirement. proceeding) (Nolasco v COMELEC,
GR Nos. 122250 & 122258 July 21,
1997)
However, even if Y’s argument is correct, this does
1 Removalbyadministrative
not mean that X should be automatically proceedings (perpetual
disqualified as well, since there is proof that aside disqualification) (Lingating v
from reacquisition of his Philippine Citizenship, COMELEC, G.R. No. 153475, Nov.
there are other subsequent acts executed by X 13, 2002)
which show his intent to make General Arthur,
Eastern Samar his domicile, thus making him May an official removed from office as a result of
qualified to run for Mayor. (Japzon v. COMELEC, an administrative case, before the effectivity of
G.R. No. 180088, Jan.19, 2009) the LGC be disqualified under Section 40 of said
law?
0 Who are persons disqualified from running
for any elective local position? No. Section 40 (b) of the LGC has no retroactive
effect and therefore, disqualifies only those
A: administratively removed from office after
0 Sentenced by final judgment for an offense January 1,1992 when LGC took effect (Greco v.
involving moral turpitude or for an COMELEC, G.R. No. 125955, June 19, 1997). The
offense punishable by 1 year or administrative case should have reached a final
204
POLITICAL LAW TEAM:
LOCAL GOVERNMENTS
determination. (Lingating v. COMELEC, G.R. No. A:

153475, Nov. 13, 2002) TEMPORARY
PERMANENT VACANCY
VACANCY
What is the significance of possession of a “green Arises when: Arises when an
card” by a candidate for an elective position? elective local official: elected official is
1. Fills a higher vacant temporarily
office incapacitated to
Possession of a “green card” is ample evidence to
2. Refuses to assume perform their duties
show that the person is an immigrant to or a office
permanent resident of the U.S. Hence, due to legal or
3. Fails to qualify
4. Dies physical reasons such
immigration to the US by virtue of a “Green card”
which entitles one to reside permanently in that 5. Removed from office as:
6. Voluntarily resigns 1. Physical sickness,
country, constitutes abandonment of domicile in
7. Permanently 2. Leave of absence,
the Philippines. (Ugdoracion v. COMELEC, G.R. No. incapacitated to 3. Travel abroad or
179851, April 18, 2008) discharge the functions 4. Suspension from
of his office (Sec. 44, office. (Sec. 46,
Can a candidate receiving the next highest vote LGC) LGC)
be declared the winner after the candidate
receiving the majority of votes is declared Q: What are the two ways of filling the vacancy?
ineligible?
A:
A: Automatic succession
By appointment (Sec. 45, LGC)
GR: No. The ineligibility of a candidate
receiving the majority of votes does not
State the rules of succession in case of
entitle the eligible candidate receiving the
permanent vacancies.
next highest number of votes to be declared
winner.
A:
In case of permanent vacancy in:
XPN: The rule would be different if the Office of the governor: vice‐ governor
electorate, fully aware of a candidate’s Office of the mayor: vice‐mayor
disqualification so as to bring such awareness Office of the governor, vice governor,
within the realm of notoriety, would mayor or vice‐mayor: highest
nonetheless cast the votes in favor of the ranking Sanggunian member or in
ineligible candidate. In such case, the case of his permanent inability, the
second highest ranking Sanggunian
electorate may be said to have waived the
member – successor should have
validity and efficacy of their votes by come from the same political party.
notoriously applying their franchises or Office of the punong barangay: the
throwing away their votes in which case, the highest ranking sangguniang
eligible candidate obtaining the next highest barangay member – successor may
number of votes may be deemed elected. or may not have come from the
same political party.
(Labo v. COMELEC, G.R. No. 105111, July 3,
1992)
Note: For purposes of succession, ranking
in the Sanggunian shall be determined on
the basis of the proportion of the votes
3.b. Vacancies and Succession obtained by each winning candidate to the
total number of registered voters in each
What are the two classes of vacancies in the district in the preceding election.
elective post?

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In case of tie between and among the A:

highest ranking Sangguniang members, In case of temporary vacancy of the post of
resolved by drawing lots (Section 44, LGC). the local executive (leave of absence,
The general rule is that the successor (by travel abroad, suspension): vice‐
appointment) should come from the same governor, vice mayor, highest ranking
political party as the Sangunian member sangguniang barangay shall
whose position has become vacant. The automatically exercise the powers and
perform the functions of the local Chief
exception would be in the case of vacancy
Executive concerned.
in the Sangguniang barangay.
GR: He cannot exercise the power to
In case automatic succession is not appoint, suspend or dismiss employees
applicable and there is vacancy in the
membership of the sanggunian: XPN: If the period of temporary
incapacity exceeds 30 working days.
The President thru the Executive
Secretary shall appoint the political If travelling within the country, outside his
nominee of the local executive for jurisdiction, for a period not exceeding 3
the sangguniang days: he may designate in writing the
panlalawigan/panlungsod of highly officer‐in‐charge. The OIC cannot
urbanized cities/independent exercise the power to appoint, suspend
component cities or dismiss employee.
The Governor, shall appoint the political
nominees for the If without said authorization, the vice‐
sanggunianpanlungsod of governor, vice‐mayor or the highest
component cities/bayan concerned ranking sangguniang barangay member
th
The city/municipal mayor shall appoint shall assume the powers on the 4 day
the recommendee of the of absence. (Sec. 46, LGC)
sangguniang barangay concerned.
How is temporary incapacity terminated?
Note: The “last vacancy” in the
Sanggunian refers to that created by the A:
elevation of the member formerly
It shall terminate upon submission to the
occupying the next higher in rank which in appropriate sanggunian of a written
turn also had become vacant by any of the declaration by the local chief executive
causes already enumerated. The term “last concerned that he has reported back to
vacancy” is thus used in Section 45(b) to office – If the temporary incapacity was
differentiate it from the other vacancy due to:
previously created. The term by no means 0 Leave of absence
refers to the vacancy in the No.8 position 1 Travel abroad
which occurred with the elevation of 8
th 2 Suspension.
If the temporary incapacity was due to legal
placer to the seventh position in the
reasons, the local chief executive should
Sanggunian. Such construction will result
also submit necessary documents
in absurdity. (Navarro v. CA, G.R. No. showing that the legal cause no longer
141307, Mar. 28, 2001) exist. (Sec. 46[b], LGC)
In case of vacancy in the representation of May the local chief executive authorize any local
the youth and the barangay in the official to assume the powers, duties and
Sanggunian, vacancies shall be filled functions of the office other than the vice‐
automatically with the official next in rank
governor, city or municipal vice‐mayor, or highest
of the organization concerned.
ranking sangguniang barangay member as the
case maybe?
State the rules in case of temporary vacancies in
local positions.
A:
GR: No.
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Note: An elective local official may be removed from

XPN: If travelling within the country, outside office on the ground enumerated above by order of
his jurisdiction. (Sec. 46[c], LGC) the proper court only. The Office of the President is
without any power to remove elected officials, since
Note: A vice‐governor who is concurrently an such power is exclusively vested in the proper courts
acting governor is actually a quasi‐governor. For as expressly provided for in the last paragraph of
the purpose of exercising his legislative Section 60, LGC. (Salalima v. Guingona, G.R. No.
prerogatives and powers, he is deemed a non‐ 117589, May 22, 1996)
member of the sangguninang panlalawigan for
the time being. (Gamboa v. Aguirre, G.R. No. Q: What is removal?
134213, July 20, 1999)
Removal imports the forcible separation of the
incumbent before the expiration of his term and
3.c. Disciplinary Actions can be done only for cause as provided by law.
(Dario v. Mison, G.R. No. 81954, August 8, 1989)
Q: What are the grounds for disciplinary actions?
Note: The removal not for a just cause or non‐
An elective local official may be disciplined, compliance with the prescribed procedure
constitutes reversible error and this entitles the
suspended or removed from office on any of the
officer or employee to reinstatement with back
following grounds:
salaries and without loss of seniority rights. Basis
Disloyalty to the Republic of the Philippines

Does the Sangguniang Panglungsod and
Note: An administrative, not criminal, case Sangguniang Bayan have the power to remove
for disloyalty to the Republic only requires elective officials?
substantial evidence (Aguinaldo v. Santos,
G.R. No. 94115, August 21, 1992) No. The pertinent legal provisions and cases
decided by this Court firmly establish that the
Culpable violation of the Constitution Sanggunaing Bayan is not empowered to do so.
Dishonesty, oppression, misconduct in office, Section 60 of the Local Government Code
gross negligence, dereliction of duty conferred upon the courts the power to remove
Commission of nay offense involving moral elective local officials from office. (The
turpitude or an offense punishable by at Sangguniang Barangay of Don Mariano Marcos
least prision mayor
vs. Martinez, G.R. No. 170626, March 3, 2008)
Abuse of authority
GR: Unauthorized absence for 15
consecutive working days, Who may file an administrative action?
XPN: in the case of members of the A:

Sangguniang: Any private individual or any government
0 Panlalawigan officer or employee by filling a sworn
1 Panglunsod written complaint (verified);
2 Bayan Office of the President or any government
3 Barangay agency duly authorized by law to ensure
that LGUs act within their prescribed
Application for or acquisition of foreign powers and functions.
citizenship or residence or the status of (ADMINISTRATIVE ORDER NO. 23, Rule 3
an immigrant of another country; Sec. 1, December 17, 1992)
Such other grounds as may be provided by
the Code/other laws. (Sec. 60, LGC) Where should an administrative complaint be
filed?

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A verified complaint shall be filed with the records and other evidence. (Sec. 63[b],
following: LGC)
Office of the President – against elective
official of provinces, HUC, ICC, Who can impose preventive suspension?
component cities.
Sangguniang Panlalawigan – elective
officials of municipalities; and Authority to
Sangguniang Panglunsod or Bayan – elective
impose
barangay officials. (Sec. 61, LGC)
suspension Respondent Local Official
belongs to
Note: A re‐elected local official may not be held
the
administratively accountable for misconduct
Elective official of a province,
committed during his prior term of office. There is no
President highly urbanized or independent
distinction as to the precise timing or period when
the misconduct was committed, reckoned from the component city
date of the official’s re‐election, except that it must Elective official of a component city
Governor
be prior to said date. (Garcia v. Mojica, G.R. No. of municipality
139043, Sept. 10, 1999) Elective official of a barangay. (Sec
Mayor
63[a], LGC)
When is subsequent re‐election considered a
condonation? Q: State the rule on preventive suspension.
When proceeding is abated due to elections and A:

there is no final determination of misconduct yet. A single preventive suspension shall not
(Malinao v Reyes, GR 117618 Mar.29, 1996) extend beyond 60 days;
In the event that there are several
administrative cases filed, the elective
Note: Subsequent re‐election cannot be deemed a official cannot be preventively
condonation if there was already a final suspended for more than 90 days within
determination of his guilt before the re‐election.
a single year on the same ground or
(Reyes v. COMELEC, G.R. No. 120905 March 7, 1996)
grounds existing and known at the time
of his first suspension. (Sec. 63[b], LGC)
The rule that public official cannot be removed for
administrative misconduct committed during a prior
term, since his re‐election to office operates as a
State the rules on administrative appeals.
condonation of the officer’s previous misconduct to
the extent of cutting off the right to remove him
Decisions in administrative cases may, within
therefore, has no application to pending criminal
30 days from receipt thereof, be appealed to the
cases against petitioner for the acts he may have
committed during a failed coup. (Aguinaldo v. following:
Santos, G.R. No. 94115, Aug. 21, 1992)
The Sangguniang panlalawigan, in case of
decisions of the sangguniang
When should preventive suspension be
panlungsod of component cities and the
imposed?
sangguniang bayan; and
The Office of the President, in the case of
A: decisions of the sangguniang
After the issues are joined; panlalawigan and the sangguniang
When the evidence of guilt is strong; panlungsod of highly urbanized cities
Given the gravity of the offense, there is and independent component cities.
great probability that the continuance in (Sec. 67, LGC)
office of the respondent could influence
the witnesses or pose a threat to the Note: Decisions of the President shall be final and
safety and integrity of the executory.
208
POLITICAL LAW TEAM:
LOCAL GOVERNMENTS
When is resignation of a public elective official Does the LGC withdraw the power of the
effective? Ombudsman under R.A. 6770 to conduct
administrative investigation?
Resignation of elective officials shall be deemed
effective only upon acceptance by the following No. Hence, the Ombudsman and the Office of the
authorities: President have concurrent jurisdiction to conduct
administrative investigations over elective
0 The President, in case of governors, officials. (Hagad v. Gozo‐Dadole, G.R. No. 108072,
vice‐governors, and mayors and vice‐ Dec.12, 1995)
mayors of highly urbanized cities and
independent and component cities
Who may sign an order preventively suspending
1 The Governor, in the case of municipal
mayors and vice‐mayors, city mayors officials?
and vice‐mayors of component cities
2 The Sanggunian concerned, in case of It is not only the Ombudsman, but also his
sangguninan members Deputy, who may sign an order preventively
3 The City or Municipal Mayor, in case of suspending officials. Also, the length of the period
barangay officials. (Sec. 82, LGC) of suspension within the limits provided by law
and the evaluation of the strength of the evidence
What is the difference between the preventive
both lie in the discretion of the Ombudsman. It is
suspension provided under R.A. 6770 and under
immaterial that no evidence has been adduced to
LGC?
prove that the official may influence possible
witnesses or may tamper with the public records.
A:
It is sufficient that there exists such a possibility.
PREVENTIVE PREVENTIVE
(Castilo‐Co v. Barbers, G.R. No. 129952 June 16,
SUSPENSION UNDER RA SUSPENSION UNDER
6770 LGC 1998)
Requirements:
1. The evidence of guilt is Q. What is the effect of an appeal on the
strong; and preventive suspension ordered by the
Requirements:
Ombudsman?
2. That any of the 1. There is reasonable
following circumstances ground to believe
are present: that the respondent A. An appeal shall not stop the decision from
a. The charge against has committed the being executory. In case the penalty is suspension
the officer of act or acts or removal and the respondent wins such appeal,
employee should complained of; he shall be considered as having been under
involve 2. The evidence of preventive suspension and shall be paid the salary
dishonesty, culpability is strong; and such other emoluments that he did not
oppression or 3. The gravity of the receive by reason of the suspension or removal. A
grave misconduct offense so warrants; decision of the Office of the Ombudsman in
or neglect in the 4. The continuance in
administrative cases shall be executed as a matter
performance of office of the
of course. (Office of the Ombudsman vs.
duty; respondent could
Samaniego, G.R. No. 175573, October 5, 2010)
b. The charges influence the
should warrant witnesses or pose a
removal from threat to the safety
office; or and integrity of the 3.d. Recall
c. The respondent’s records and other
continued stay in evidence. Q: What is recall?
office would
prejudice the case
filed against him. It is a mode of removal of a public officer by the
Maximum period: 60 people before the end of his term. The people’s
Maximum period: 6 days. (Hagad v. Gozo‐ prerogative to remove a public officer is an
months Dadole, G.R. No. 108072 incident of their sovereign power, even in the
Dec. 12, 1995)
absence of constitutional restraint; the power is

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209
implied in all governmental operations. (Garcia v. term of office for loss of confidence; and
Comelec, G.R. No. 111511 October 5, 1993)
No recall shall take place within one year
Note: Expenses for the conduct of recall elections: from the date of the official’s
Annual General Appropriations Act has a contingency assumption to office or one year
fund at the disposal of the COMELEC (Sec. 75, LGC)
immediately preceding a regular
election. (Sec. 74, LGC)
What is the ground for recall? Is this subject to

Section 74 of the Local Government Code
judicial inquiry?
provides that “no recall shall take place within
one year immediately preceding a regular local
The only ground for recall of local government
election.” What does the term “regular local
officials is loss of confidence. No, it is not subject
election,” as used in this section, mean?
to judicial inquiry, the Court ruled that ‘loss of
confidence’ as a ground for recall is a political
It refers to one where the position of the official
question. (Evardone v. COMELEC, G.R. No. 94010
sought to be recalled is to be actually contested
Dec. 2, 1991).
and filled by the electorate. (Paras v. Comelec,
G.R. No. 123169, Nov. 4, 1996)
Upon whom and how may a recall be initiated?
The one‐year time bar will not apply where the
A:
local official sought to be recalled is a Mayor and
Who: any elective
the approaching election is a barangay election.
Provincial
(Angobung v. COMELEC, G.R. No. 126576, Mar. 5,
City
1997)
Municipal
Barangay official Q. State the initiation of the recall process.
How: by a petition of a registered voter in the LGU A:

concerned and supported by the registered voters
Petition of a registered voter in the LGU
in the LGU concerned during the election in which concerned, supported by percentage of
the local official sought to be recalled was elected. registered voters during the election in
(Sec. 70 of R.A. 7160, as amended by R.A. 9244) which the local official sought to be
recalled was elected.(% decreases as
Note: By virtue of R.A. 9244, Secs. 70 and 71 of the population of people in area increases.
Also, the supporting voters must all sign
Local Government Code were amended, and the
the petition).
Preparatory Recall Assembly has been eliminated as
Within 15 days after filing, COMELEC must
a mode of instituting recall of elective local
certify the sufficiency of the required
government officials. number of signatures. Failure
toobtain required number automatically
All pending petitions for recall initiated through the nullifies petition.
Preparatory Recall Assembly shall be considered Within 3 days of certification of sufficiency,
dismissed upon the effectivity of RA 9244 (Approved COMELEC provides official with copy of
Feb. 19, 2004) petition and causes its publication for
three weeks (once a week) in a national
newspaper and a local newspaper of
Q: What are the limitations on recall?
general circulation. Petition must also
be posted for 10 to 20 days at
A: conspicuous places. Protest should be
Any elective local official may be subject of a filed at this point and ruled with finality
recall election only once during his 15 days after filing.
COMELEC verifies and authenticates the
signature
210
POLITICAL LAW TEAM:
LOCAL GOVERNMENTS
0 COMELEC announces acceptance of What is the term limit of Barangay officials?

candidates.
1 COMELEC sets election within 30 days The term of office of barangay officials was fixed
upon completion of previous section in
at three years under R.A. No. 9164 (19 March
barangay/city/municipality proceedings
and 45 days in the case of provincial 2002). Further, Sec.43 (b) provides that "no local
officials. Officials sought to be recalled elective official shall serve for more than three (3)
are automatically candidates. (Sec 70, consecutive terms in the same position. The Court
R.A. 7160) interpreted this section referring to all local
elective officials without exclusions or exceptions.
May an elective local official sought to be (COMELEC v. Cruz, G.R. No. 186616, Nov. 19,
recalled resign? 2009)
The elective local official sought to be recalled

shall not be allowed to resign while the recall 3.f. Appointive Officials
process is in progress. (Sec. 73, LGC)
May a governor designate an acting assistant
Q. When does recall take effect? treasurer?
Only upon the election and proclamation of a No. Under the LGC and Revised Administrative
successor in the person of the candidate receiving Code, provincial governor is not authorized to
the highest number of votes cast during the appoint or even designate a person in cases of
election on recall. Should the official sought to be temporary absence or disability. Power resides in
recalled receive the highest number of votes, the President or Secretary of Finance. (Dimaandal
confidence in him is thereby affirmed, and he v. COA G.R. No. 122197, June 26, 1998)
shall continue in office. (Sec. 72, LGC)
May the mayor of Olongapo be appointed as
Q. Will it be proper for the COMELEC to act on a SBMA chairman for the first year of operation?
petition for recall signed by just one person?
No. This violates constitutional prohibition against
A petition for recall signed by just one person is in appointment or designation of elective officials to
violation of the statutory 25% minimum other government posts. Appointive officials may
requirement as to the number of signatures be allowed by law or primary functions of his
supporting any petition for recall. (Angobung v. position to hold multiple offices. Elective officials
COMELEC, G.R. No. 126576, March 5, 1997) are not so allowed, except as otherwise
recognized in the Constitution. The provision also
encroaches on the executive power to appoint.
3.e. Term Limits (Flores v. Drilon, G.R. No. 104732, June 22, 1993)
What is the term of office of an elected local What is the role of CSC in appointing officials?
official?
CSC cannot appoint but can determine
Three (3) years starting from noon of June 30 qualification. In disapproving or approving
following the election or such date as may be appointments, CSC only examines:
provided by law, except that of elective barangay 0 The conformity of the appointment with
officials, for maximum of 3 consecutive terms in applicable provisions of law;
same position (Section 43, LGC). 1 Whether or not appointee possesses
the minimum qualifications and none of
The term of office of Barangay and Sangguniang the disqualifications.(Debulgado v. CSC,
G.R. No. 111471 Sept. 26, 1994)
Kabataan elective officials, by virtue of R.A. No.
9164, is three (3) years.

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What are the grounds for recall of appointment? No. Mayor is not allowed even if the wife is
qualified because of prohibition against nepotic
A: appointments. (Sec. 59, Book 5 of RAC) This
Non‐compliance with procedure or criteria prohibition covers all appointments, original and
provided in the agency’s merit personnel actions (promotion, transfer,
promotion plan; reinstatement, re‐employment). (Debulgado v.
Failure to pass through agency’s CSC, G.R. No. 111471, Sept. 26, 1994)
selection/promotion board;
Violation of existing collective agreement
between management and employees Note: The boyfriend of the daughter of the mayor
relative to promotion; was appointed to a post. When his appointment was
Violation of other existing civil service law temporary, he became the son‐in‐law. Mayor then
rules and regulations. (Maniebo v. CA, recommended that his appointment become
G.R. No. 158708, August 10, 2010) permanent. This was considered nepotism and was
disallowed (CSC v. Tinaya, GR 154898 Feb.16, 2005)
Does the Governor have the authority to
terminate or cancel appointments of casual/ job
order employees of the Sangguniang 3.g. Provisions Applicable to Elective and
Panlalawigan Members and Office of the Vice‐ Appointive Officials
Governor?
What are the prohibited business and pecuniary
No. While the Governor has the authority to interest?
appoint officials and employees whose salaries
are paid out of the provincial funds, this does not A:
extend to the officials and employees of the Engage in any business transaction with the
Sangguniang Panlalawigan because such authority local government unit in which he is an
is lodged with the Vice‐Governor. In the same official or employee or over which he
manner, the authority to appoint casual and job has the power of supervision, or with
order employees of the Sangguniang Panlalawigan any of its unauthorized boards, officials,
belongs to the Vice‐Governor. This authority is agents, or attorneys, whereby money is
anchored on the fact that the salaries of these to be paid, or property or any other
employees are derived from the appropriation thing of value is to be transferred
specifically allotted for the said local legislative directly or indirectly, out of the
body (Atienza v. Villarosa, G.R. No. 161081, May resources of the local government unit
10, 2005) to such person or firm.
Does the constitutional prohibition on midnight Hold such interests in any cockpit or other
appointments apply to LGUs? games licensed by a local government
unit;
No. The prohibition applies only to presidential
appointments. They do not apply to LGUs, as long Purchase any real estate or other property
as the appointments meet all the requisites of a forfeited in favor of such local
valid appointment. Once an appointment has government unit for unpaid taxes or
assessment, or by virtue of a legal
been made and accepted, the appointing
process at the instance of the said local
authority cannot unilaterally revoke it. But the government unit.
CSC may do so if it decides that the requirements
were not met. (De Rama v. CA, G.R. No. 131136 Be a surety for any person contacting or
Feb. 28, 2001) doing business with the local
government unit for which a surety is
May a mayor appoint his wife as head of Office required; and
of General Services?
Possess or use any public property of the
local government unit for private
purposes. (Sec. 89 LGC)
212
POLITICAL LAW TEAM:
LOCAL GOVERNMENTS
What are the elements of unlawful intervention concerned do not derive monetary compensation
and prohibited interests? therefrom. (Section 90[c], LGC)
A: May a municipality adopt the work already

ELEMENTS OF performed in good faith by a private lawyer,
ELEMENTS OF
UNLAWFUL
PROHIBITED INTEREST
which work proved beneficial to it?
INTERVENTION
1. Accused is a public
1. Public officer Although a municipality may not hire a private
officer lawyer to represent it in litigations, in the interest
2. Accused has direct or
indirect financial or
2. He has direct or of substantial justice, however, it was held, that a
indirect financial or
pecuniary interest in any municipality may adopt the work already
pecuniary interest in any
business, contract, or
business, contract,
performed in good faith by such private lawyer,
transaction, Whether or
transaction which work is beneficial to it, provided that no
not prohibited by law injustice is thereby headed on the adverse party
3. He intervenes or takes
part in his official
3. He is prohibited from and provided further that no compensation in any
having such interest by
capacity in connection guise is paid therefore by said municipality to the
the Constitution or law.
with such interest
(Teves v.
private lawyer. Unless so expressly adopted, the
(Teves v.
Sandiganbayan, G.R. No. private lawyer’s work cannot bind the
Sandiganbayan, G.R. No.
154182, Dec. 17, 2004) municipality (Ramos v. CA, G.R. No. 99425, Mar. 3,
154182, Dec. 17, 2004)
1997)
Can local chief executives practice their

May a municipality be represented by a private
profession?
law firm which had volunteered its services for
free, in collaboration with the municipal attorney
No. All governors, city and municipal mayors are
and the fiscal?
prohibited from practicing their profession or
engaging in any occupation other than the
Such representation will be violative of Section
exercise of their functions as local chief
1983 of the old Administrative Code. Private
executives.” (Sec. 90[a], LGC)
lawyers may not represent municipalities on their
own. Neither may they do so even in collaboration
Can Sanggunian members practice their
with authorized government lawyers. This is
profession?
anchored on the principle that only accountable
public officers may act for and in behalf of public
Yes. Subject to certain limitations:
entities and that public funds should not be
Cannot appear in civil case where the local
government unit, officer or agency or expended to hire private lawyers. (Ramos v. CA,
instrumentality is the adverse party G.R. No. 99425, Mar.3, 1997)
Cannot appear in criminal case wherein an
officer or employee is accused of an Note: The municipality’s authority to employ a
offense committed in relation to his private lawyer is expressly limited only to situations
office where the provincial fiscal is disqualified to represent
Cannot collect fees for their appearance in it. For the exception to apply, the fact that the
administrative proceedings involving provincial fiscal was disqualified to handle the
local government unit of which he is an
municipality’s case must appear on record. The
official
refusal of the provincial fiscal to represent the
Cannot use property and personnel of the
municipality is not a legal justification for employing
government except when the
sanggunian member concerned is the services of private counsel. Instead of engaging
defending the interest of the the services of special attorney, the municipal council
government. (Sec. 90[b], LGC) should request the Secretary of Justice to appoint an
acting provincial fiscal in place of the provincial fiscal
Note: Doctors of medicine may practice their who has declined to handle and prosecute its case in
profession even during official hours of work only on court. (Pililla v. CA, G.R. No. 105909, June 28, 1994)
occasions of emergency: Provided, that the officials
Facult DerechoCi
What are the instances when a private lawyer province in accordance with the provisions of R.A.
can represent an LGU? 7160. The same statute vests upon the Vice‐
Governor the power to be the presiding officer of
the Sangguniang Panlalawigan and sign all
A:
warrants drawn on the provincial treasury for all
When the municipality is an adverse party in a expenditures appropriated for the operation of
case involving the provincial government the Sangguniang Panlalawigan. (Atienza v.
or another municipality or city within the Villarosa G.R. 161081, May 10, 2005)
province
May the punong‐barangay validly appoint or
Where original jurisdiction is vested with the remove the barangay treasurer, the barangay
SC.
secretary, and other appointive barangay officials
without the concurrence of the majority of all
What is the test in determining whether a local
the members of the Sangguniang Barangay?
government official can secure the services of
private counsel?
No. The LGC explicitly vests on the Punong
barangay, upon approval by a majority of all the
In resolving whether a local government official
members of the Sangguniang Barangay, the power
may secure the services of private counsel in an
to appoint or replace the barangay treasurer, the
action filed against him in his official capacity, the
barangay secretary, and other appointive
nature of the action and the relief sought are to
barangay officials. Verily, the power of
be considered. (Mancenido v. CA, G.R. No.
appointment is to be exercised conjointly by the
118605, Apr. 12, 2000)
punong barangay and a majority of all the
State the rule on prohibition against members of the sangguniang barangay. Without
appointment of elective officials to another such conjoint action, neither appointment nor
office. replacement can be effectual. (Ramon Alquizoia,
Sr. v. Gallardo Ocol, G.R. No. 132413, Aug. 27,
0 No elective official shall be eligible for 1999)
appointment or designation in any
capacity to any public office or position
during his tenure (Flores v. Drilon, G.R. 0 INTERGOVERNMENTAL RELATIONS
104732, June 22, 1993)
1 Discuss the inter‐local government relations.
1 Except for losing candidates in barangay
elections, no candidate who lost in any 2 The governor shall review all executive orders
election shall, within one year after such promulgated by the component city or municipal
election, be appointed to any office in mayor within his jurisdiction within 3 days from
the government or any GOCC or their their issuance. So do with the city or municipal
subsidiaries. (Sec.94, LGC) mayor over the executive orders promulgated by
the punong barangay.
Who between the Governor and the Vice‐
Governor is authorized to approve purchase If the executive orders concerned are not acted
orders issued in connection with the upon by the referred local executives, it shall be
procurement of supplies, materials, equipment, deemed consistent with law and therefore valid.
including fuel, repairs, and maintenance of the
Sangguniang Panlalawigan?
Vice‐Governor. Under R.A. 7160, local legislative

power for the province is exercised by the
Sangguniang Panlalawigan and the Vice‐ Governor
is its presiding officer. Being vested with legislative
powers, the Sangguniang Panlalawigan enacts
ordinances, resolutions and appropriates funds
for the general welfare of the
214
POLITICAL LAW TEAM:
NATIONAL ECONOMY AND PATRIMONY
M. NATIONAL ECONOMY AND PATRIMONY indigenous peoples. Its purpose is definitional and
not declarative of a right or title.
What are the policies of the national economy?
The specification of what areas belong to the
A: ancestral domains is, to our mind, important to
More equitable distribution of wealth ensure that no unnecessary encroachment
Increased wealth for the benefit of the on private properties outside the ancestral
people domains will result during the delineation
Increased productivity process. The mere fact that Section 3(a) defines
ancestral domains to include the natural
What is meant by patrimony? resources found therein does not ipso
facto convert the character of such natural
It refers not only to natural resources but also to resources as private property of the indigenous
cultural heritage. (Manila Prince Hotel v. GSIS, peoples. Similarly, Section 5 in relation to Section
G.R. No. 122156, Feb. 3, 1997) 3(a) cannot be construed as a source of
ownership rights of indigenous people over the
natural resources simply because it recognizes
0 REGALIAN DOCTRINE ancestral domains as their “private but
community property.”
What is the Regalian Doctrine (jura regalia)?
It is the doctrine which reserves to the State the The phrase “private but community property” is
full ownership of all natural resources or natural merely descriptive of the indigenous peoples’
wealth that may be found in the bowels of the concept of ownership as distinguished from that
earth. (Albano, Political Law Reviewer) provided in the Civil Code. In contrast, the
indigenous peoples’ concept of ownership
Note: All lands of the public domain, waters, emphasizes the importance of communal or
minerals, coal, petroleum, and other mineral oils, all group ownership. By virtue of the communal
forces of potential energy, fisheries, forests, or character of ownership, the property held in
timber, wildlife, flora and fauna, and natural common “cannot be sold, disposed or destroyed”
resources belong to the State. With the exception of because it was meant to benefit the whole
agricultural lands, all other natural resources shall indigenous community and not merely the
not be alienated. (Sec. 2, Art. XII, 1987 Constitution) individual member.
What is the exception to the provision of Sec. 2, That IPRA is not intended to bestow ownership
Art. XII, 1987 Constitution? over natural resources to the indigenous peoples
is also clear from the deliberations of the
Any land in the possession of an occupant and of bicameral conference committee on Section 7
his predecessors‐in‐interest since time which recites the rights of indigenous peoples
immemorial. (Oh Cho v. Director of Land, G.R. No. over their ancestral domains.
48321, Aug. 31, 1946)
Further, Section 7 makes no mention of any right
Does R.A. 8371, otherwise known as “the of ownership of the indigenous peoples over the
Indigenous People’s Rights Act” infringe upon natural resources. In fact, Section 7(a) merely
the State’s ownership over the natural resources recognizes the “right to claim ownership over
within the ancestral domains? lands, bodies of water traditionally and actually
occupied by indigenous peoples, sacred places,
No. Section 3(a) of R.A. 8371 merely defines the traditional hunting and fishing grounds, and all
coverage of ancestral domains, and describes the improvements made by them at any time within
extent, limit and composition of ancestral the domains.” Neither does Section 7(b), which
domains by setting forth the standards and enumerates certain rights of the indigenous
guidelines in determining whether a particular peoples over the natural resources found within
area is to be considered as part of and within the their ancestral domains, contain any recognition
ancestral domains. In other words, Section 3(a) of ownership vis‐à‐vis the natural resources.
serves only as a yardstick which points out what (Separate Opinion, Kapunan, J., in Cruz
properties are within the ancestral domains. It Secretary of Environment and Natural Resources,
does not confer or recognize any right of G.R. No. 135385, Dec. 6, 2000, En Banc [Per
ownership over the natural resources to the Curiam])
Facult DerechoCi
Q: What does the IPRA protect? 0 Utilization of natural resources in rivers,

lakes, bays, and lagoons may be allowed
What is evident is that the IPRA protects the on a “small scale” Filipino citizens or
indigenous peoples’ rights and welfare in relation cooperatives‐ with priority for
to the natural resources found within their subsistence fishermen and fishworkers
ancestral domains, including the preservation of (The bias here is for the protection of
the ecological balance therein and the need to the little people). (Bernas, The 1987
ensure that the indigenous peoples will not be Philippines Constitution: A Reviewer ‐
unduly displaced when the State‐approved Primer, 2006)
activities involving the natural resources located
therein are undertaken. (Ibid.) What is the presumption in case of absence of
proof of private ownership?
What is the consequence of the Regalian
Doctrine in Section 2, Art. XII, 1987 Constitution? The presumption is that the land belongs to the
State. Thus, where there is no showing that the
Any person claiming ownership of a portion of a land had been classified as alienable before the
land of the public domain must be able to show title was issued, any possession thereof, no matter
title from the State according to any of the how lengthy, cannot ripen into ownership.
recognized modes of acquisition of title. (Lee (Republic v. Sayo, G.R. No. L‐60413, October 31,
Hong Kok v. David, G.R. No. L‐30389, December 1990).
27, 1972 ).
And all lands not otherwise appearing to be
What are the limits imposed by Section 2 that clearly within private ownership are presumed to
embodies the Jura Regalia of the State? belong to the State. (Seville v. National
Development Company, GR no. 129401, February
A: 2, 2001)
Only agricultural lands of the public domain
may be alienated. Do the courts have jurisdiction over classification
of public lands?
The exploration, development, and
utilization of all natural resources shall In our jurisdiction, the task of administering and
be under the full control and disposing lands of the public domain belongs to
supervision of the State either by the Director of Lands and, ultimately, the
directly undertaking such exploration, Secretary of Environment and Natural Resources.
development, and utilization or through The classification of public lands is, thus, an
co‐production, joint venture, or exclusive prerogative of the Executive Department
production‐sharing agreements with through the Office of the President. (Republic v.
qualified persons or corporations. Register of Deeds of Quezon, G.R. No. 73974, 31
May 1995)
All agreements with the qualified private
sector may be for only a period not What is the Stewardship Doctrine?
exceeding 25 years, renewable for
another 25 years. (The 25 year limit is Private property is supposed to be held by the
not applicable to “water rights for individual only as a trustee for the people in
irrigation, water supply, fisheries, or general, who are its real owners.
industrial uses other than the
development of water power,” for
which “beneficial use may be the b. NATIONALIST AND CITIZENSHIP
measure and the limit of the grant.”) REQUIREMENT PROVISIONS
The use and enjoyment of marine wealth of What are the Filipinized activities as provided in
the archipelagic waters, territorial sea, Article XII of the Constitution?
and exclusive economic zone shall be
reserved for Filipino citizens. (It would A:
seem therefore that corporations are Co‐production, joint venture or production
excluded or at least must be fully sharing agreement for
owned by Filipinos.) exploration, development and utilization
(EDU) of natural resources:
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POLITICAL LAW TEAM:
GR: Filipino citizens or entities with c. EXPLORATION, DEVELOPMENT AND

60% capitalization; UTILIZATION OF NATURAL RESOURCES
XPN: For large‐scale EDU of minerals, What is the State policy regarding exploration,
petroleum and other mineral oils, the development and utilization of Natural
President may enter into agreements Resources?
with foreign‐owned corporations
involving technical or financial The exploration, development, and utilization of
agreements. natural resources shall be under the full control
and supervision of the State. The State may
Note: These agreements refer to service directly undertake such activities, or it may enter
contracts which involve foreign into co‐production, joint venture, or production‐
management and operation provided that sharing agreements with Filipino citizens, or
the Government shall retain that degree of corporations or associations at least 60 per
control sufficient to direct and regulate the centum of whose capital is owned by such
affairs of individual enterprises and citizens. (Sec. 2, Art XII, 1987 Constitution)
restrain undesired activities. (La Bugal‐
B’laan Tribal Assoc. v. DENR Secretary,G.R.
Section 2 speaks of “co‐production, joint
No. 127882, Dec. 1, 2004)
venture, or production sharing agreements” as
modes of exploration, development, and
Use and enjoyment of nation’s marine
utilization of inalienable lands. Does this
wealth within the territory: Exclusively
effectively exclude the lease system?
for Filipino citizens.
Yes, with respect to mineral and forest lands
Alienable lands of the public domain:
(Agricultural lands may be subject of lease).
Only Filipino citizens may acquire not
(Bernas, The 1987 Philippines Constitution: A
more than 12 hectares by
Reviewer ‐ Primer, 2006)
purchase, homestead or grant, or
lease not more than 500 hectares.
Who are qualified to take part in the exploration,
Private corporations may lease not
development and utilization of natural
more than 1000 hectares for 25
resources?
years renewable for another 25
years;
Filipino citizens and corporations or associations
at least sixty percent (60%) of whose capital is
Certain areas of investment: reserved for
owned by Filipino citizens.
Filipino citizens or entities with 60%
owned by Filipinos, although Congress
Note: However, that as to marine wealth, only
may provide for higher percentage;
Filipino citizens are qualified. This is also true of
In the Grant of rights, privileges and
natural resources in rivers, bays, lakes and
concessions covering the national
lagoons, but with allowance for cooperatives.
economy and patrimony, State shall give
(Bernas, The 1987 Philippines Constitution: A
preference to qualified Filipinos; and
Reviewer ‐ Primer, 2006)
Franchise, certificate or any other form of
If natural resources, except agricultural land,
authorization for the operation of a
cannot be alienated, how may they be explored,
public utility; only to Filipino citizens or
developed, or utilized?
entities with 60% owned by Filipinos;
A:
Note: Such franchise, etc., shall neither be
exclusive, nor for a period longer than 50 Direct undertaking of activities by the State or
years and subject to amendment, Co‐production, joint venture, or production
alteration or repeal by Congress; All sharing agreements with the State and all
executive and managing officers must be “under the full control and supervision of the
Filipino citizens. State. (Miners Association of the Philippines v.
Factoran, G.R. No. 98332, January 16, 1995)
If the State enters into a service contract with

BULLET, a foreign owned corporation, is it valid?

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Yes, but subject to the strict limitations in the last Yes, Section 10, RA 776 reveals the clear intent of
two paragraphs of Section 2. Financial and Congress to delegate the authority to regulate the
technical agreements are a form of service issuance of a license to operate domestic air
contract. Such service contacts may be entered transport services. (Philippine Airlines v. Civil
into only with respect to minerals, petroleum, and Aeronautics Board, G.R. No. 119528, March 26,
other mineral oils. The grant of such service 1997)
contracts is subject to several safeguards, among
them: Also, the Supreme Court acknowledged that there
That the service contract be crafted in accordance is a trend towards delegating the legislative power
with a general law setting standard of uniform to authorize the operation of certain public
terms, conditions and requirements; utilities to administrative agencies and dispensing
The President be the signatory for the with the requirement of a congressional franchise.
government; and However, in this case, it was held that in view of
The President report the executed agreement to the clear requirement for a legislative franchise
Congress within thirty days. (La Bugal B’laan under PD 576‐A, the authorization of a certificate
Tribal Association v. DENR, G.R. No. 127882, of public convenience by the NTC for the
December 1, 2004) petitioner to operate television Channel 25 does
not dispense with the need for a franchise.
(Associated Communications and Wireless
FRANCHISES, AUTHORITY AND CERTIFICATES FOR Services ‐ United
PUBLIC UTILITIES Broadcasting Networks v. National
Telecommunications Commission, GR No. 144109,
Who are qualified to acquire a Franchise, February 17, 2003)
certificate or any other form of authorization for
the operation of a public utility? Q: What is a public utiliy?
Filipino citizens or corporations at least 60% of A public utility is a business or service engaged in
whose capital is Filipino owned. (Art. XII, Section regularly supplying the public with some
11, 1987 Constitution) commodity or service of public consequence, such
as electricity, gas, water, transportation,
Does a public utility franchise have the telephone or telegraph service. To constitute a
characteristic of exclusivity? public utility, the facility must be necessary for the
maintenance of life and occupation of the
No, A franchise to operate a public utility is not an residents. As the name indicates, “public utility”
exclusive private property of the franchisee. No implies public use and service to the public. (JG.
franchisee can demand or acquire exclusivitly in Summit Holdings v. Court of Appeals, G.R. No.
the operation of a public utility. Thus, a franchisee 124293, September 24, 2003)
cannot complain of seizure or taking of property
because of the issuance of another franchise to a Is a franchise required before one can own the
competitor. (Pilipino Telephone Corporation v. facilities to operate a public utility?
NRC, G.R. No. 138295, 2003)
A franchise is not required before one can own
Is the power to grant licenses for or to authorize the facilities needed to operate a public utility so
the operation of public utilities solely vested to long as it does not operate them to serve the
congress? public. (Tatad v. Garcia, G.R. No. 114222, April 6,
1995)
No, the law has granted certain administrative
agencies such power (See E.O. nos. 172& 202), Q: Is a shipyard a public utility?
Supreme Court said that Congress does not have
the exclusive power to issue such authorization. A shipyard is not a public utility. Its nature dictates
Administrative bodies, e.g. LTFRB, ERB, etc., may that it serves but a limited clientele whom it may
be empowered to do so., Franchises issued by choose to serve at its discretion. It has no legal
congress are not required before each and every obligation to render the services sought by each
public utility may operate. (Albano v. Reyes 175 and every client. (JG. Summit Holdings v. CA, G.R.
SCRA 264) No. 124293, September 24, 2003)
Can the Congress validly delegate its authority to

issue franchises and licenses?
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POLITICAL LAW TEAM:
Can the government amend a radio or television The State may take over or direct the
franchise to grant free airtime to operation of any privately owned public
COMELEC? utility or business affected with public
interest. (Sec. 17, Article XII, 1987
Yes, all broadcasting, whether by radio or Constitution)
television stations, is licensed by the Government.
Radio and television companies do not own the Who has the prerogative in the Classification of
airwaves and frequencies; they are merely given Public Lands?
temporary privilege of using them. A franchise is a
privilege subject to amendment, and the The prerogative of classifying public lands
provision of BP 881 granting free airtime to the pertains to administrative agencies which have
COMELEC is an amendment of the franchise of been specially tasked by statutes to do so and the
radio and television stations. (TELEBAP v. courts will not interfere on matters which are
COMELEC, G.R. No. 132922, April 21, 1998) addressed to the sound discretion of government
and/or quasi‐judicial agencies entrusted with the
May a foreigner who owns substantial regulation of activities coming under their special
stockholdings in a corporation engaged in the technical knowledge and training. (Republic v.
advertising industry sit as a treasurer of said Mendoza, GR no.153727. March 28, 2007)
corporation?
No, because a treasurer is an executive or a

managing officer. Sec. 11 (2), Art. XVI provides 0 Acquisition, Ownership and Transfer of Public
that the participation of the foreign investors in and Private Lands
the governing bodies of entities shall be limited to
their proportionate share in the capital thereof, 1 When does land of the public domain become
and all the managing and executive officers of private land?
such entities must be citizens of the Philippines.
2 When it is acquired from the government
What is the ownership requirement imposed by either by purchase of by grant. (Oh Cho v. Director
the Constitution upon business entities engaged of Lands, G.R. No. 48321, Aug. 31, 1946)
in advertising?
3 What is the requirement for the
70% of their equity must be owned by Filipino reclassification or conversion of lands of public
citizens. (Sec. 11 (2), Art. XVI, 1987 Constitution) domain?
What is the ownership requirement imposed by There must be a positive act of government; mere
the Constitution upon Mass Media? issuance of title is not enough. (Sunbeam
Convenience Food v. CA, G.R. No. 50464, Jan. 29,
It must be wholly owned by Filipino citizens. (Sec. 1990)
11 (1), Art. XVI, 1987 Constitution)
Can public land be transformed into private land
What is the ownership requirement imposed by thru prescription?
the Constitution upon educational institutions.
Yes, if it is alienable land. OCENCO for more than
60% of their equity must be owned by Filipino 30 years must, however, be conclusively
citizens. (Sec. 4 [2], Art. XIV, 1987 Constitution) established. This quantum of proof is necessary to
avoid erroneous validation of actually fictitious
What are the requisites for the State to claims or possession over the property in dispute.
temporarily take over a business affected with (San Miguel Corporation v. CA, GR No. 57667,
public interest? May 28, 1990)
A: What is the rule on private lands?

There is national emergency;
The public interest so requires; A:
During the emergency and under reasonable GR: No private land shall be transferred or
terms prescribed by it; conveyed except to individuals, corporations or
associations qualified to acquire or hold lands of
the public land.

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XPNs: treatment as regards natural resources. The

1. Foreigners who inherit through intestate unique value of natural resources has been
succession; acknowledged by the State and is the underlying
Former natural‐born citizen may be a reason for its consistent assertion of ownership
transferee of private lands subject to and control over said natural resources from the
limitations provided by law; Spanish regime up to the present. (Noblejas,
Ownership in condominium units; Philippine Law on Natural Resources, 1961
Parity right agreement, under the 1935 Revised Ed., p. 6)
Constitution.
On the other hand, the United States viewed
Can a natural born citizen of the Philippines who natural resources as a source of wealth for its
has lost his Philippine citizenship be a transferee nationals. As the owner of natural resources over
of private lands? the Philippines after the latter’s cession from
Spain, the United States saw it fit to allow both
A: Yes, subject to the limitations imposed by Law, Filipino and American citizens to explore and
Thus, even if private respondents were already exploit minerals in public lands, and to grant
Canadians when they applied for registration of patents to private mineral lands. x x x The framers
the properties in question, there could be no legal of the 1935 Constitution found it necessary to
impediment for the registration thereof, maintain the State’s ownership over natural
considering that it is undisputed that they were resources to insure their conservation for future
formerly natural‐born citizens. (Republic of the generations of Filipinos, to prevent foreign control
Philippines v. CA, G.R. No. 108998, August 24, of the country through economic domination; and
1984) to avoid situations whereby the Philippines would
become a source of international conflicts,
Can private corporations and associations thereby posing danger to its internal security and
acquire public lands? independence.
No. They are only allowed to lease public lands. The declaration of State ownership and control
(Sec. 3, Art. XII) over minerals and other natural resources in the
1935 Constitution was reiterated in both the 1973
Does the constitutional policy of a “self‐ reliant and 1987 Constitutions. (Separate Opinion,
and independent national economy” rule out Kapunan, J., in Cruz v. Secretary of Environment
foreign competition? and Natural Resources, G.R. No. 135385, Dec. 6,
2000, En Banc [Per Curiam])
No. It contemplates neither “economic seclusion”
nor “mendicancy in the international community.” Is a religious corporation qualified to have lands
in the Philippines on which it may build its
Aside from envisioning a trade policy based on church and make other improvements provided
“equality and reciprocity,” the fundamental law these are actually, directly, exclusively used for
encourages industries that are “competitive in religious purposes?
both domestic and foreign markets,” thereby
demonstrating a clear policy against a sheltered No. The mere fact that a corporation is religious
domestic trade environment, but one in favor of does not entitle it to own public land. As held in
the gradual development of robust industries that Register of Deeds v. Ung Siu Si Temple (G.R. No. L‐
can compete with the best in the foreign markets. 6776), land tenure is not indispensable to the free
(Tañada v. Angara, G.R. No. 118295, May 2, 1997) exercise and enjoyment of religious profession of
worship. The religious corporation can own
Has the concept of native title to natural private land only if it is at least 60% owned by
resources, like native title to land, been Filipino citizens.
recognized in the Philippines?
Is a corporation sole qualified to purchase or
No. While native title to land or private own lands in the Philippines?
ownership by Filipinos of land by virtue of time
immemorial possession in the concept of an Yes. Sec. 113, BP Blg. 68 states that any
owner was acknowledged and recognized as far corporation sole may purchase and hold real
back during the Spanish colonization of the estate and personal property for its church,
Philippines, there was no similar favorable charitable, benevolent or educational purposes,
and may receive bequests or gifts for such
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POLITICAL LAW TEAM:
purposes. There is no doubt that a corporation What does Section 14, Article XII of the
sole by the nature of its Incorporation is vested Constitution seek to achieve?
with the right to purchase and hold real estate
and personal property. It need not therefore be Section 14 reflects the desire not only to develop
treated as an ordinary private corporation a ready reservoir of Filipino professionals,
because whether or not it be so treated as such, scientists and skilled workers but also to protect
the Constitutional provision involved will, their welfare. (ibid.)
nevertheless, be not applicable. (Republic of the
Philippines v. IAC., G.R. No. 75042, Nov. 29, 1988)
0 ORGANIZATION AND REGULATION OF
Is a religious corporation allowed to lease private CORPORATIONS, PRIVATE AND PUBLIC
land in the Philippines?
1 May Congress provide for the organization
Yes. Under Sec. 1 of P.D. 471, corporations and and regulation of private corporations?
associations owned by aliens are allowed to lease
private lands up to 25 years, renewable for a 2 The Congress shall not, except by general law,
period of 25 years upon the agreement of the provide for the formation, organization, or
lessor and the lessee. Hence, even if the religious regulation of private corporations. (Sec. 16, Art.
corporation is owned by aliens, it may still lease XII, 1987 Constitution)
private lands.
3 What is the purpose of this provision?
Are lands devoted to swine, poultry and
livestock raising included in the definition of Its purpose is to insulate Congress against
agricultural land? pressures from special interests. To permit the law
making body by special law to provide for the
No. (Luz Farms v. Secretary of Agrarian Reform, organization or formation or regulation of private
G.R. No. 86889, Dec. 4, 1990) corporations x x x would be in effect to offer to it
the temptation in many cases to favor certain
Is fishpond considered within the definition of groups to the prejudice of others or to the
agricultural land? prejudice of the interests of the country. (Bernas,
The 1987 Constitution of the Philippines: A
Yes, according to the definition adopted by the Commentary)
Constitutional Commission.
0 May Congress enact a law creating
Government‐Ownedand Controlled
f. PRACTICE OF PROFESSION corporations?
What is the State policy with regard to

professionals and skilled workers? Government‐owned and controlled corporations
may be created or established by special charters
The sustained development of a reservoir of in the interest of the common good and subject to
national talents consisting of Filipino scientists, the test of economic viability. (Sec. 14, Art. XII,
entrepreneurs, professionals, managers, high‐ 1987 Constitution)
level technical manpower and skilled workers and
craftsmen in all fields shall be promoted by the What does the phrase ‘in the interest of the
State. (Par. 1, Sec. 14, Art. XII, 1987 Constitution) public good and subject to the test of economic
viability’ mean?
Who may practice their profession in the
Philippines? It means that government‐owned and controlled
corporations must show capacity to function
A: efficiently in business and that they should not go
GR: The practice of all professions in the into activities which the private sector can do
Philippines shall be limited to Filipino citizens. better. Moreover, economic viability is more than
financial viability but also included capability to
XPN: In cases provided by law. (Par. 2, Sec. 14, make profit and generate benefits not
Art. XII, 1987 Constitution) quantifiable in financial terms. (Bernas, The 1987
Constitution of the Philippines: A Commentary)

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h. MONOPOLIES, RESTRAINT OF TRADE AND competition, among producers who will

UNFAIR COMPETITION manufacture it. (Energy Regulatory Board v. CA
G.R. No. 113079, April 20, 2001)
What is the State policy regarding monopolies?
Are monopolies prohibited by the Constitution?
The State shall regulate or prohibit monopolies
when the public interest so requires. No Monopolies are not per se prohibited by the
combination in restraint of trade or unfair Constitution but may be permitted to exist to aid
competition shall be allowed. (Sec. 19, Art. XII, the government in carrying on an enterprise or to
1987 Constitution) aid in the interest of the public. However, because
monopolies are subject to abuses that can inflict
What is meaning of the phrase “Unfair Foreign severe prejudice to the public, they are subjected
Competition And Trade Practices”? to a higher level of State regulation than an
ordinary business undertaking. (Agan, Jr. v.
The phrase is not to be understood in a limited PIATCO, G.R. No. 155001, May 5, 2003)
legal and technical sense but in the sense of
anything that is harmful to Philippine enterprises. Are contracts requiring exclusivity void?
At the same time, however, the intention is not to
protect local inefficiency. Nor is the intention to Contracts requiring exclusivity are not per se void.
protect local industries from foreign competition Each contract must be viewed vis‐à‐vis all the
at the expense of the consuming public. (Bernas, circumstances surrounding such agreement in
The 1987 Philippines Constitution: A Reviewer ‐ deciding whether a restrictive practice should be
Primer, 2006) prohibited as imposing an unreasonable restraint
on competition. (Avon v. Luna, G.R. No. 153674,
Q: What is a monopoly? December 20, 2006)
A monopoly is a privilege or peculiar advantage What is prohibited by Section 19?

vested in one or more persons or companies,
consisting in the exclusive right (or power) to Combinations in restraint of trade and unfair
carry on a particular business or trade, competition are prohibited by the Constitution.
manufacture a particular article, or control the (Sec. 19, Art. XII, 1987 Constitution)
sale of a particular commodity. (Agan, Jr. v.
PIATCO, G.R. No. 155001, May 5, 2003) When is a monopoly considered in restraint of
trade and thus prohibited by the Constitution?
Q: What is the rationale behind the provision?
From the wordings of the Constitution, truly then,
The provision is a statement of public policy on what is brought about to lay the test on whether a
monopolies and on combinations in restraint of given an unlawful machination or combination in
trade. Section 19 is anti‐trust in history and spirit. restraint of trade is whether under the particular
It espouses competition. Only competition which circumstances of the case and the nature of the
is fair can release the creative forces of the particular contract involved, such contract is, or is
market. Competition underlies the provision. The not, against public policy. (Avon v. Luna, G.R. No.
objective of anti‐trust law is ‘to assure a 153674, December 20, 2006)
competitive economy based upon the belief that
through competition producers will strive to Does the government have the power to
satisfy consumer wants at the lowest price with intervene whenever necessary for the promotion
the sacrifice of the fewest resources. Competition of the general welfare?
among producers allows consumers to bid for
goods and services, and, thus matches their Yes, although the Constitution enshrines free
desires with society’s opportunity costs. enterprise as a policy, it nevertheless reserves to
Additionally, there is a reliance upon “the the Government the power to intervene
operation of the ‘market’ system (free enterprise) whenever necessary for the promotion of the
to decide what shall be produced, how resources general welfare, as reflected in Sections 6 and 19
shall be allocated in the production process, and of Article XII. (Association of Philippine Coconut
to whom various products will be distributed. The
market system relies on the consumer to decide
what and how much shall be produced, and on
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POLITICAL LAW TEAM:
Desiccators v. Philippine Coconut Authrotiy, G.R.

No. 110526, February 10, 1998)
Does the WTO agreement violate Article II

Section 19 of the Constitution?
No, the WTO agreement does not violate Article II

Section 19, nor Sections 19 and 12 of Article XII,
because these sections should be read and
understood in relation to Sections 1 and 13 of
Article XII, which require the pursuit of trade
policy that “serves the general welfare and utilizes
all forms and arrangements of exchange on the
basis of equality and reciprocity.” (Tañada v.
Angara, G.R. No. 118295, May 2, 1997)

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N. SOCIAL JUSTICE AND HUMAN RIGHTS Women

Role and rights of people’s organization
What are the goals of social justice under the Human rights
Constitution?
Are workers in the private sector entitled to the
A: right to strike?
Equitable diffusion of wealth and political
power for common good; Yes, but the same must be exercised in
Regulation of acquisition, ownership, use accordance with the law. (Sec. 3, Art. XII, 1987
and disposition of property and its Constitution)
increments; and
Creation of economic opportunities based on What are the provisions of the Constitution on
freedom of initiative and self‐ reliance. women?
(Sec. 1 and 2, Art. XIII, 1987
Constitution) A:
0 The State shall equally protect the life of
the mother and the life of the unborn
0 CONCEPT from conception. (Sec. 12, Art II, 1987
Constitution)
What is social justice?
1 The State recognizes the role of women
Social justice is “neither communism, nor in nation‐building, and shall ensure the
despotism, nor atomism, nor anarchy,” but the fundamental equality before the law of
humanization of laws and the equalization of women and men. (Sec. 14, Art. II, 1987
social and economic force by the State so that Constitution)
justice in its rational and objectively secular
conception may at least be approximated. Social 2 The State shall protect working women
justice means the promotion of the welfare of all by providing safe and healthful working
the people, the adoption by the Government of conditions, taking into account their
measures calculated to insure economic stability maternal functions, and such faculties
of all competent elements of society, through the and opportunities that will enhance
maintenance of a proper economic and social their welfare and enable them to realize
equilibrium in the interrelations of the members their full potential in the service of the
of the community, constitutionally, through the nation. (Sec. 14, Art. XIII, 1987
adoption of measures legally justifiable, or extra‐ Constitution)
constitutionally, through the exercise of powers
underlying the existence of all governments on Is there a need for consultation before urban
the time‐honored principle of salus populi est and rural dwellers can be relocated?
suprema lex. (Calalang v. Williams, 70 Phil 726,
[1940]) Yes. The urban and rural dwellers and the
communities where they are to be relocated must
Social justice simply means the equalization of be consulted. Otherwise, there shall be no
economic, political, and social opportunities with resettlement. (Sec. 15 [2], Art. XIII)
special emphasis on the duty of the state to tilt
the balance of social forces by favoring the What is meant by people’s organization?
disadvantaged in life. (Bernas, The 1987
Philippines Constitution: A Reviewer ‐ Primer, People’s Organizations are bona fide associations
2006) of citizens with demonstrated capacity to promote
the public interest and with identifiable
What aspects of human life are covered by Art. leadership, membership and structure. (Sec. 15
XIII? [2], Art. XIII)
A:
Social justice 0 COMMISSION ON HUMAN RIGHTS
Labor
Agrarian and natural resources reform What is the composition of the Commission on
Urban land reform and housing Human Rights?
Health
224
POLITICAL LAW TEAM:
SOCIAL JUSTICE AND HUMAN RIGHTS
A:
Chairman
4 Members
What are the qualifications of members of the

CHR?
A:
0 Natural‐born citizens
1 Majority must be members of the Bar.
Does the CHR have the power to investigate?
Yes. The CHR has the power to investigate all

forms of human rights violations involving civil
and political rights and monitor the compliance by
the government with international treaty
obligations on human rights. (Sec. 18, Art. XIII,
1987 Constitution)
Does the CHR have the power to issue TRO?
No. It also has no power to cite for contempt for

violation of the restraining order or a writ of
preliminary injunction. (Simon v. CHR, G.R. No.
100150, Jan. 5, 1994)

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O. EDUCATION, SCIENCE AND TECHNOLOGY, The State cannot require children to attend only
ARTS, CULTURE, AND SPORTS public schools before they reach a certain age.
The child is not a mere creature of the State.
What are the principal characteristics of Those who nurture him and direct his destiny
education which the State must promote and have the right to recognize and prepare him.
protect? (Pierce v. Society of Sisters 268 US 510)
A: What are the principal characteristics of

Quality education education which the State must promote and
Affordable education (Sec. 1, Art. XIV) protect?
Education that is relevant to the needs of the
people. (Sec. 2 [1], Art. XIV) A:
Quality education
What is Parens Patriae with regards to Affordable education (Sec. 1, Art. XIV)
education? Education that is relevant to the needs of the
people. (Sec. 2 [1], Art. XIV)
The State has the authority and duty to step in
where parents fail to or are unable to cope with What are the nationalized educational activities?
their duties to their children.
A:
What is the basis for the requirement that a Ownership:
school or educational institution first obtain Filipino Citizens or
government authorization before operating? Corporations or associations where at
least 60% of the capital is owned
It is based on the State policy that educational by Filipino citizens except those
programs and/or operations shall be of good established by religious groups and
quality and, therefore, shall at least satisfy mission boards;
minimum standards with respect to curricula,
teaching staff, physical plant and facilities and Control and administration; and
administrative and management viability. Student population (Sec. 4 [2], Art. XIV)
(Philippine Merchant Marine School Inc. v. Court
of Appeals, G.R. No. 112844, June 2, 1995) Note: The Congress may increase Filipino equity
participation in all educational institutions.
Can the State regulate the right of a citizen to
select a profession or course of study? What language shall be used as official medium
of communication and instruction?
Yes, while it is true that the Court has upheld the
constitutional right of every citizen to select a The official languages are Filipino and, until
profession or course of study subject to fair, otherwise provided by law, English. The regional
reasonable and equitable admission and academic languages are the auxiliary official languages in
requirements, the exercise of this right may be the regions and shall serve as auxiliary media of
regulated pursuant to the police power of the instruction therein. Spanish and Arabic shall be
State to safeguard health, morals, peace, promoted on a voluntary and optional basis. (Sec.
education, order, safety and general welfare. Thus, 7, Art. XIV, 1987 Constitution)
persons who desire to engage in the learned
professions requiring scientific or technical
knowledge may be required to take an a. ACADEMIC FREEDOM
examination as a prerequisite to engaging in their
chosen careers. This regulation assumes particular What are the aspects of Academic Freedom?
pertinence in the field of medicine, in order to
protect the public from the potentially deadly There are 3 views:
effects of incompetence and ignorance. (PRC v. De
Guzman, GR No. 144681, june 21, 2004) From the standpoint of the educational
institution ‐ To provide that atmosphere
Can the State require a citizen to attend only which is most conducive to speculation,
Public School? experimentation and creation;
226
POLITICAL LAW TEAM:
EDUCATION, SCIENCE AND TECHNOLOGY, ART, CULTURE AND SPORTS
From the standpoint of the faculty – request for the approval of the penalty of
0 Freedom in research and in automatic expulsion imposed on Aguilar et al.
the publication of the results, and ruled that they be reinstated. Lowering the
subject to the adequate penalty from expulsion to exclusion.
performance of his other
academic duties Was DLSU within its rights in expelling the
students?
1 Freedom in the classroom in
discussing his subject less No. The penalty of expulsion imposed by DLSU on
controversial matters which private respondents is disproportionate to their
bear no relation to the subject deeds. It is true that schools have the power to
instil discipline in their students as subsumed in
2 Freedom from institutional their academic freedom and that “the
censorship or discipline, establishment of rules governing university‐
limited by his special position student relations particularly those pertaining to
in the community student discipline, may be regarded as vital, not
merely to the smooth and efficient operation of
1 From the standpoint of the student the institution but to its very survival”. This power
– right to enjoy in school the does not give them the untrammelled discretion
guarantee of the Bill of Rights. to impose a penalty which is not commensurate
(Non v. Dames, G.R. No. 89317, with the gravity of the misdeed. If the concept of
May 20, 1990) proportionality between the offense committed
and the sanction imposed is not followed, an
What are the limitations? element of arbitrariness intrudes. (De La Salle
University, Inc.v. CA)
A:
Dominant police power of the State
Social Interest of the community
What are the freedoms afforded to educational

institutions relating to its right to determine for
itself on academic grounds?
A:
Who may teach
What may be taught
How shall it be taught
Who may be admitted to study (Miriam
College Foundation v. CA, G.R. No.
127930, Dec. 15, 2000)
James Yap et al., students of De La Salle

University (DLSU) and College of Saint Benilde
are members of the “Domingo Lux Fraternity”.
They lodged a complaint with the Discipline
Board of DLSU charging Alvin Aguilar et al. of Tau
Gamma Phi Fraternity with “direct assault”
because of their involvement in an offensive
action causing injuries to the complainants which
were result of a fraternity war.
The DLSU‐CSB Joint Discipline Board found

Aguilar et al. guilty and were meted the penalty
of automatic expulsion. On a petition for
certiorari filed with the RTC, it ordered DLSU to
allow them to enroll and complete their degree
courses until their graduation. The Commission
on Higher Education (CHED) disapproved DLSU’s

Facult
adde
U NIVERSITYOF
DerechoCi
vil
S ANTO T OMAS
227

UST Golden Notes Law On Public Corporations

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UST Golden Notes Law On Public Corporations

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UST GOLDEN NOTES 2011

L. LOCAL GOVERNMENTS Note: Every LGU created or recognized under this

0 What is a Government Owned and Controlled

5889 Private or proprietary – acts as an A:

0 What laws may govern GOCCs and how do

0 Government corporations may be created by

Note: The sangguniang panlalawigan may, in 0 VACA

Attempt in good faith to organize under it 0 Highly Urbanized City – P 50M

CREATION 0.512 Population requirement – to be

A Local Government Unit may be created, divided, 512.0 Barangay

a. Province – P 20M Q: When does corporate existence begin?

24 Notwithstanding that both the 11th and 12th

d. DIVISION, MERGER, ABOLITION Approved by a majority of the votes cast in a

0Same requirements as creation of LGU provided:

768 What are the requirements prescribed by

A: 768 What is the principle of local autonomy?

VICE CHAIR FOR ADMINISTRATION AND FINANCE: JEANELLE C. LEE

23 Yes, provide it is nuisance per se. The

0 May the Sangguniang Panlalawigan validly ĀȀĀᜀĀᜀĀᜀĀᜀĀᜀĀᜀĀĀĀȀ㨀ĀĀĀĀĀĀᜀĀᜀĀᜀĀᜀĀᜀ

POLITICAL LAW TEAM:

A: 0 Who determines the legality or propriety of a

0 Yes. The properties are exempt from taxation.

affect the power of Congress to grant tax

Q: What is the quorum in the sanggunian?

A: 0 What are the procedural steps or actions to be

Note: The PO shall vote only to break a tie. (Sec.

On its first regular session, may the Sanggunian A:

powers of the sanggunian to enact. effected(Sec. 56 and

Note: Any proposition or ordinance approved

0 What are the items that the local chief

0 What is the difference between the suability

VICE CHAIR FOR ADMINISTRATION AND FINANCE: JEANELLE C. LEE

A: 0 Is Public bidding required when LGUs enter

A: 23 What is the rule with respect to the liabilities

VICE CHAIR FOR ADMINISTRATION AND FINANCE: JEANELLE C. LEE

0 Liability for tort A:

3.a. Elective Officials At least 18 years old

0 Member of Sangguniang Panglungsod

Upon repatriation, a former natural‐born Filipino is

VICE CHAIR FOR ADMINISTRATION AND FINANCE: JEANELLE C. LEE

determination. (Lingating v. COMELEC, G.R. No. A:

VICE CHAIR FOR ADMINISTRATION AND FINANCE: JEANELLE C. LEE

In case of tie between and among the A:

Note: An elective local official may be removed from

Disloyalty to the Republic of the Philippines

XPN: in the case of members of the A:

VICE CHAIR FOR ADMINISTRATION AND FINANCE: JEANELLE C. LEE

When proceeding is abated due to elections and A:

VICE CHAIR FOR ADMINISTRATION AND FINANCE: JEANELLE C. LEE

What is the ground for recall? Is this subject to

How: by a petition of a registered voter in the LGU A:

0 COMELEC announces acceptance of What is the term limit of Barangay officials?

The elective local official sought to be recalled

VICE CHAIR FOR ADMINISTRATION AND FINANCE: JEANELLE C. LEE

A: May a municipality adopt the work already

Can local chief executives practice their

Vice‐Governor. Under R.A. 7160, local legislative

Q: What does the IPRA protect? 0 Utilization of natural resources in rivers,

GR: Filipino citizens or entities with c. EXPLORATION, DEVELOPMENT AND

If the State enters into a service contract with

VICE CHAIR FOR ADMINISTRATION AND FINANCE: JEANELLE C. LEE

Can the Congress validly delegate its authority to