1

--a corporation that may exist in fact although not

point of law because of certain defects in some
essential features of its incorporation.

LAW ON PUBLIC CORPORATIONS

1.

7. Elements of De Facto Municipal Corporation:

a. A valid law authorizing incorporation
b. An attempt in good faith to organize
under it
c. A colorable compliance with the law
d. An assumption of corporate powers
8. Three forms of decentralization:

General Principles

1. CORPORATIONan artificial being created by

operation of law, having the right of succession and
the powers, attributes and properties expressly
authorized by law or incident to its existence.
a. PUBLIC CORPORATIONone formed and
organized for the government of a portion of the State.

a.

2. Classes of Corporation:
a. Public or Municipala body politic
and
corporate
constituted
by
incorporation of inhabitants of city or
town for purposes of local government
thereof or as agency of State to assist
in civil government of the country; one
formed and organized for the
government of a portion of the State.
b. Privateone formed for some private
purpose, benefit, aim or end.
c. Quasi-Publica private corporation
that renders public service or supplies
public wants.
d. Quasi-corporationpublic
corporations created as agencies of
State for narrow and limited purpose.

b.

c.

Decentralization of Administration- the central

government delegates administrative powers to
political subdivisions in order to broaden the base of
government power.

3. Elements of Municipal Corporation

a. Legal creation or incorporation
b. Corporate name
c. Inhabitants
d. Territory
4. Dual Nature of Municipal Corporation
Every local government unit created or
organized is a body politic and corporate endowed
with powers to be exercised by it in conformity with
law. As such, it shall exercise powers as political
subdivision of the National Government and as a
corporate entity representing the inhabitants of its
territory.
a. Public/Governmentalit acts as an
agent of the State for the government
of the territory and the inhabitants
within the municipal limits; it exercises
by delegation a part of the sovereignty
of the State.
b. Private/Proprietaryit acts in a
similar category as a business
corporation, performing functions not
strictly governmental or political; it
stands for the community in the
administration of local affairs. It acts as
a separate entity for its own purposes
and not as a subdivision of the State.
5. Criterion to determine whether corporation is
public:
The relationship of the corporation to the
State, i.e., if created by the State as its own agency to
help the State in carrying out its governmental
functions, then it is public, otherwise, it is private.
6. De Facto Municipal Corporation

Devolution- is the transfer of power and

authority from the national government to
LGUs as the territorial and political
subdivisions of the State. The nature of
power transfer is political and the approach
is territorial or areal.
Deconcentration- is the transfer of power,
authority or responsibility, or the discretion
to plan, decide and manage from central
point or local levels, but within the central or
national government itself. The nature of
the transfer is administrative and the
approach is sectoral.
Debureaucratization- is the transfer of
some public functions and responsibilities,
which the government may perform, to
private entities or non-governmental
organizations; it is peoples empowerment
or participation in local governance.

Decentralization
of
Power
(Political
Decentralization)- involves abdication of political
power in favor of LGUs declared autonomous.
(Limbonas vs. Mangelin, 170 SCRA 786)
NOTE:
Local Autonomy- is self-governing. It is
the granting of more powers, authority, responsibilities
and resources to the lower or local levels of a
government system. The principle of local autonomy
under the 1987 Constitution simply means
decentralization.
It does not make the local
government sovereign within the state or an imperium
in imperio.

Among the regulatory powers of the National

Government Agencies transferred or devolved to the LGUs
include the following:
2.
3.
4.
5.
6.

The reclassification of agricultural lands- DAR to cities

and municipalities
Enforcement of environmental laws- DENR to all
LGUs
Inspection of food products and quarantine- DOH to
cities and municipalities
The enforcement of the National Building CodeDPWH to cities and municipalities
The processing and approval of subdivision plansHLURB to cities and municipalities

2
7.
8.

The operation of tricycles- LTFRB to cities and

municipalities
The establishment of cockpits and holding of
cockfights- Philippine Gamefowl Commission to cities
and municipalities

b. In case of doubt, any tax ordinance or

revenue measure shall be construed strictly
against the local govt unit enacting it, and
liberally in favor of the taxpayer. Any tax
exemption, incentive or relief granted by any
local govt unit pursuant to the provisions of
this Code shall be construed strictly against
the person claiming it;

Among the basic services and facilities devolved to

LGUs include:
1.

Agricultural extension and on-site research of the

Department of Agriculture;
2. Community-based forestry project of the DENR;
3. Field health and hospital services and other tertiary
health services of the DOH;
4. Public works and infrastructure projects funded out of
local funds of the DPWH;
5. The school building program of the DECS;
6. Social welfare services of the DSWD;
7. Tourism facilities and tourism promotion and
development of the DOT;
8. Telecommunications services for provinces and cities
of the DOTC;
9. Housing projects for provinces and cities; and
10. Other services such as investment support.

c.

The general welfare provisions in this

Code shall be liberally interpreted to
give more powers to local govt units in
accelerating economic development
and upgrading the quality of life for the
people in the community.

d.

Rights and obligations existing on the

date of effectivity of this Code and
arising out of contracts or any other
source of prestation involving a local
govt unit shall be governed by the
original terms and conditions of said
contracts or the law in force at the time
such rights were vested.

9. How local autonomy enhances governmental and

corporate powers of LGUs:

e.

In the resolution of controversies

arising under this Code where no legal
provision or jurisprudence applies,
resort may be had to the customs and
traditions in the place where the
controversies take place.

a. Every local government unit shall have:

i. Full autonomy in their exercise of proprietary
rights and management of economic enterprises.
ii. Full authority to secure domestic or foreign
grants without the approval of the NGAs
concerned, unless these are projects with
national security implications, and
iii. Financial undertakings for LGUs for mutual
advantage thru loans and assistance to calamitystricken LGUs.

4.

Declaration of State Policy over LGUs

(Sec. 2, RA 7160)
a.

B. R.A. 7160Policy and Application; Constitutional

Provisions

1. EffectivityJanuary 1, 1992
2.

3.

Scope of Application (Sec. 4, RA 7160)

Applicable to:
a. all provinces
b. cities
c. municipalities
d. barangays
e. and other political bodies as
may be created by law, and
f. to the extent provided in the
LGC (i.e. devolution of powers):
-officials
-offices, or
-agencies
of
the
National Government
Rules of Interpretation (Sec. 5, RA 7160)
a. Any provision on a local government unit
shall be liberally interpreted
its
favor, and in case of doubt, any question
thereon shall be resolved in favor of
devolution of powers and of the lower local
government unit. Any fair and reasonable
doubt as to the existence of the power shall
be interpreted in favor of the local
government unit concerned;

b.

c.

The territorial and political

subdivisions of the State shall
enjoy genuine and meaningful
local autonomy to enable them
to
attain
their
fullest
development as self-reliant
communications and make
them more effective partners in
the attainment of national goals.
To ensure the accountability of
local govt units through the
institution
of
effective
mechanisms of recall, initiative
and referendum.
To require all national agencies
and offices to conduct periodic
consultations with appropriate
local
govt
units,
nongovernmental and peoples
organizations
and
other
concerned sectors of the
community before any project
or program is implemented in
their respective jurisdictions.

II. INTER-GOVERNMENTAL RELATIONS

1. National Government and Local Government Units
a. The President shall exercise general supervision
over LGUs.
i.
The
President
shall
exercise
supervisory authority directly over
provinces, highly urbanized cities and
independent component cities.

3
ii.

The President shall exercise supervision

over
component
cities
and
municipalities, through province, and
over barangays through city and
municipality. (Sec. 25)
The Presidents power of general
supervision over LGUs includes the
authority to investigate and impose
disciplinary measures (suspension or
removal) upon elective local officials.

Basis
A. as to
nature of
power
B. as to who
exercises
the power

C. as to
what the
power
includes

Power of Control

Power of
General
Supervision

Legislative

Executive

Congress

President
assisted by the
DILG Secretary

-creation,
conversion of
LGUs and
alteration of its
boundaries;
-allocate powers,
responsibilities
and resources
among LGUs;
-provide for
qualifications,
election,
appointment,
removal, term,
salaries and
functions and
duties of local
officials;
-provide other
matters relating to
the organization
and operation of
LGUs;
-amendment of
charters of LGUs.

-oversee
whether LGUs
are performing
their duties in
accordance
with law;
-investigate
and impose
disciplinary
measures upon
erring elective
local
government
officials

b. General responsibilities of the National

Government towards LGUs:
i.
formulate policies and set standards
and guidelines
ii.
provide funding support
iii.
augment basic services assigned to
LGUs
iv.
provide technical and other forms of
assistance and coordinate on the
discharge of NGA functions
v.
ensure the participation of LGUs in
planning and implementing national
projects
vi.
conduct mandatory consultations with
LGUs
NOTE:
No project shall be implemented by government
authorities without consultation with the local government units
and prior approval of the Sanggunian concerned. (Sec.27)
The requirement of prior consultation applies only to
national projects and/or
programs which are to be
implemented in a particular local community. Although
sanctioned by the national government, the operation of lotto is
neither a program nor project of the national government but of
charitable institution, the Philippine Charity Sweepstakes Office.
The projects and programs mentioned in Sec. 27 should be
interpreted to mean projects and programs whose
environmental and ecological effects are among those
mentioned in Sec. 26 and 27 of the LGC (Lina vs. Pano, G.R.
No. 129093, August 30, 2001).
c. Extent of the LCEs authority over NGAs and their
functionaries:
i.

ii.

iii.

The LCE can call upon any employee

stationed or assigned in his locality to
advise him on matters affecting the LGU as
well as coordinate with said officials, plans,
programs and projects.
The LCE can enlist the attendance of the
national official stationed in the LGU on a
meeting of elective and appointed officials of
the LGU treating matters in the promotion of
the general welfare of the residents.
The LCE can also initiate proper administrative
or judicial action against national government
official or employee who may have committed
an offense while stationed or assigned in the
LGU.

Power of Control and Power of General

Supervision distinguished:
2. Inter-Local Government Relations
a. The province, through the governor, shall ensure that
every component city and municipality acts within its
powers.

c. The governor shall review all executive orders

promulgated by the mayor. The mayor shall review orders
promulgated by the punong barangay.

b. The city or municipality, through the mayor, shall ensure

that barangays act within the scope of their powers.

The Sangguniang Panlalawigan of a province reviews

all ordinances enacted by the Sangguniang Panlungsod of
component cities and Sangguniang Bayan of municipalities
under their jurisdiction. In turn, the Sangguniang Panlungsod
and Sangguniang Bayan review all ordinances passed by the
Sannguniang Barangay under the jurisdiction.

4
Likewise, the Sangguniang Panlalawigan of a
province exercises the quasi-judicial function (administrative
disciplinary authority) of hearing and deciding administrative
cases involving elective municipal and component city officials
under their jurisdiction. In turn, the Sangguniang Panlungsod
and Sangguniang Bayan exercise disciplinary authority over
elective barangay officials within their jurisdiction.

law enacted by Congress in the case of a province, city,

municipality, or other political subdivisions, or by Sanggunian
Panlalawigan or Sanggunian Panlungsod ordinance in the
case of a barangay. (Sec.6)

3. Relations with Peoples Organizations and NonGovernment Organizations

1. While the power to create barangays has been delegated

to Sanggunian Panlalawigan and Sangguniang Panlungsod,
Congress, in order to enhance the delivery of basic services
in indigenous cultural communities, may create barangays in
such communities notwithstanding the requirements set forth
by law. (Sec.385a, LGC)

a.

b.

Private Sector Participation in Local Governance

Purpose: to ensure the viability of local autonomy as an
alternative strategy for sustainable development. LGUs
shall encourage private-sector participation in the
delivery of basic services.
Role of POs, NGOs in the LGUs:
LGUs shall promote the establishment and operation
of peoples and non-governmental organizations as
active partners.

LGUs may enter into joint venture and cooperative

undertakings with peoples and non-governmental
organizations particularly in the following:
1. delivery of certain basic services
2. capability building and livelihood
projects; and
3. developing local enterprises designed to
improve productivity and income,
diversifies agriculture, spur rural
industrialization, and enhance the
economic and social well-being of the
people.
c. Special Local Bodies where the private sector may
participate in local governance:
1.

Local Development Council

-a duly constituted body which shall assist the
corresponding Sanggunian in setting the direction of
economic and social development, and coordinating
development efforts in its territorial jurisdiction.
2.

Prequalification, Bids and Awards Committee

(PBAC)
responsible for the conduct of prequalification of
contractors, bidding, evaluation of bids, and the
recommendation of awards concerning local
infrastructure projects.
governor or the city or municipality mayor:
Chairman

3. Local Peace and Order Council, pursuant to

E.O. No.309, as amended, Series of 1988.
4.

Local School Board

The DECS shall consult the Board on the
appointment of division superintendents, district
supervisors, school principals, and other school officials.
5.

Local Health Board

6.

Peoples Law Enforcement Board (PLEB)

III. CREATION, CONVERSION, DIVISION, MERGER AND

CONSOLIDATION, AND ABOLITION OF LGUs
A. Creation of LGUs:
A local government unit may be created, divided,
merged, abolished, or its boundaries substantially altered by

NOTE:
nature of the power to create: LEGISLATIVE

2. The creation or conversion of a local government unit to

another level shall be based on the following verifiable
indicators of viability and projected capacity to provide
services:
a. Sufficient income and
b. Population and/or
c. Land area
NOTE: Compliance with the above-cited indicators shall be
attested by the Department of Finance, the National Statistics
Office and the Land Management Bureau of the DENR,
respectively.
3. Necessity of Fixing Corporate Limits:
As a matter of general rule, municipal corporations
cannot, without legal authorization, exercise its powers
beyond its own corporate limits. It is necessary that it must
have its boundaries fixed, definite and certain, in order that
may be identified and that all may know the exact scope or
section of territory or geographical division embraced within
the corporate limits and over which the municipal corporation
has jurisdiction. A description of the boundaries of a
municipal corporation is said to be an essential part of its
charter and necessary to corporate existence.
An
incorporation is void where the boundaries of the municipal
corporation are not described with certainty.
4. Manner of Creation
1. Creation of Barangays:
a. Role: serves as the primary planning and
implementing unit of government policies, plans programs,
projects and activities in the community, and as a forum
wherein the collective views of the people may be expressed,
crystallized and considered, and where disputes may be
amicably settled.
b. Who creates: a barangay may be created,
divided, merged, abolished or its boundary substantially
altered by law or by an ordinance of the Sangguniang
Panlalawigan or Sangguniang Panlungsod.
Where a
barangay is created by an ordinance of the Sangguniang
Panlalawigan, the recommendation of the Sangguniang
Bayan concerned shall be necessary.
c. Substantive Requisites:
1. Population- at least 2000 inhabitants
Except in cities and municipalities within Metro
Manila or in highly urbanized citiesmust be at
least 5000 inhabitants
2.

Income- no minimum income requirement

3.

Land Area- no minimum requirement, but it

must be contiguous but it need not be

5
contiguous if the barangay is comprised with
two or more islands.
NOTE:
The creation of the new barangay shall not however reduce
the population of the original barangay to less than the
minimum requirement prescribed in the Code. (Sec.386,
LGC)
2. Creation of Municipalities
a. Role: serves primarily as a general purpose
government for the coordination and delivery of basic, regular
and direct services and effective governance of the
inhabitants within its territorial jurisdiction.

5. Creation of Provinces
a. Role- as a political and corporate unit of
government, it serves as a dynamic mechanism for
development processes and effective governance of local
government units within its territorial jurisdiction.
b. Who creates- may be created, divided, merged,
or abolished, or its boundary substantially altered, only by an
act of Congress, subject to the satisfaction of the criteria set
forth by the LGC.
c. Substantive Requirements:
1. Population- not less than 250,000 inhabitants
2. Income- average annual income of at least
P20 million
3. Land Area- a contiguous territory of at least
2000 square kilometers

b. Who creates: may be created, divided, merged,

abolished or its boundary substantially altered only by an act
of Congress subject to the criteria established by the Code.
c. Substantive Requisites:
1. Population- at least 25,000 inhabitants
2. Income- average annual income of at least
P2.5 million for the last two consecutive years
based on the 1991 constant prices.
3. Land Area- a contiguous territory of 50 square
kilometers.
3. Creation of Component Cities
a. Role- serves primarily as a general purpose
government for the coordination and delivery of basic, regular
and direct services and effective governance of the
inhabitants within its territorial jurisdiction.
b. Who creates- may be created, divided, merged
or abolished, or its boundary substantially altered only by an
act of Congress subject to the criteria provided in the Code.
c. Substantive Requisites:
1. Population- at least 150,000 inhabitants
2. Income- at least P100 million for the last two
consecutive years
3. Land Area- contiguous territory of at least
100 square kilometers
NOTE:
The Internal Revenue Allotments shall be included
in the computation of the average annual income of the
municipality for purposes of determining whether the
municipality may be validly converted into a city. Income is
defined in the LGC to be all revenues and receipts collected
or received forming the gross accretions of funds of the local
government unit. The IRAs are regular and recurring income
and not merely special funds or transfers and/or budgetary
aids from the national government or non-recurring income.
The IRAs regularly and automatically accrue to the local
treasury without need of any further action on the part of the
local government unit (Alvarez vs. Guingona, 252 SCRA
695).
4. Conversion of a Component City into a Highly
Urbanized City
a. If a component city shall have met the minimum
requirements for a highly urbanized city, it shall be the duty of
the President to declare the city as highly urbanized city
upon: (1) proper application and (2) upon ratification in a
plebiscite by the majority of registered voters therein.
b. Substantive Requisites:
1. Population- at least 200,000 inhabitants
2. Income- at least P50 million

NOTE:
BP 885, which created the Province of Negros del
Norte was declared unconstitutional because it did not comply
with the land area criterion prescribed under the LGC. The
use of the word territory in Sec. 17 of the LGC refers only to
the physical mass of land area, not to the waters comprising a
political entity. It excludes the waters over which the political
unit exercises control (Tan vs. Comelec, 142 SCRA 727).
6. Status of Sub-provinces
Existing sub-provinces are converted into regular
provinces upon the approval by a majority votes cast in a
plebiscite to be held in the said sub-province and the original
province directly affected. (Sec.462, LGC)
7. Autonomous Regions
The Philippine Constitution mandates the creation of
autonomous regions in Muslim Mindanao and in the
Cordilleras consisting of provinces, cities, municipalities, and
geographical areas sharing common and distinctive historical
and cultural heritage, and economic and social cultures.
(Sec.15, Art.10, PC)
NOTE:
RA 6734, the organic act establishing the
Autonomous Regional Government of Muslim Mindanao was
held valid by the Supreme Court. (Datu Firdausi Abbas vs.
COMELEC, 179 SCRA 287). However, the sole Province of
Ifugao which, in the plebiscite, alone voted in favor of RA
6766, cannot validly constitute the Autonomous Region of the
Cordilleras. (Ordillo vs. COMELEC, 192 SCRA 100)
8. Special Metropolitan Political Subdivisions
The Congress may, by law, create special metropolitan
political subdivisions, but the component cities and
municipalities shall retain their basic autonomy and shall be
entitled to their own local executives and legislative
assemblies. The jurisdiction of the metropolitan authority that
will be thereby created shall be limited to basic services
requiring coordination. (Sec. 11, Art. X, PC)
NOTE:
With the passage of RA 7924, Metropolitan Manila
was declared as a special development and administrative
region and the administration of metrowide basic services
affecting the region was placed under a development
authority referred to as the Metropolitan Manila Development
Authority (MMDA), whose functions were without prejudice to
the autonomy of the affected local government units. The law
does not grant police nor legislative powers to MMDA. Even
the Metro Manila Council, the governing board of the MMDA,

6
has not been delegated any legislative power. Clearly, MMDA
is not a political unit. There is no grant of authority to enact
ordinances and regulations for the general welfare of the
inhabitants of the metropolis. MMDA cannot open for public
use a private road in a private subdivision (MMDA vs. Bel-Air
Village Association, Inc., G.R. No. 135962, March 27,
2000).
9. Attack against invalidity of incorporation
No collateral attack shall lie; an inquiry into the legal
existence of a municipal corporation is reserved to the State
in a proceeding for quo warranto or other direct proceeding.
But this rule applies only when the municipal corporation is, at
least, a de facto municipal corporation.
10. PLEBISCITE REQUIREMENT: Who shall participate
Sec. 10 of the LGC provides that the creation, division
and merger, abolition or substantial alteration of the
boundaries of local government units must be approved by a
majority of votes cast in a plebiscite in the political unit or
units directly affected. Such plebiscite shall be conducted by
the COMELEC within 120 days from the date of the effectivity
of the law. The completion of the publication of the law
should be the reckoning point in determining the 120-day
period within which to conduct the plebiscite, not from the
date of its approval when the law had not yet been published.
Since publication is indispensable for the effectivity of a law, a
plebiscite can be scheduled only after the law creating a city
took effect. (Cawaling vs. COMELEC, Oct. 26, 2002)
The plebiscite for the creation of a new province or
municipality shall include the participation of the residents of
the mother province or mother municipality in order to
conform to the constitutional requirement. (Padilla vs.
COMELEC, 214 SCRA 735)
In the conversion of a municipality into a component
city, however, only the registered voters of the municipality
sought to be converted into a component city, shall participate
in the plebiscite.
Summary of Substantive Requirements in the Creation of
LGUs
LGU Created

Income

Barangay

No minimum
requirement

Municipality
Component
City
Highly
Urbanized
City
Province

P2.5 million

Population
2,000 but
5,000 for
Metro
Manila and
highly
urbanized
cities
25,000, and

Land area

P100 million

150,000 or

100 sq.km.

P50 million

200,000

No minimum
requirement

P20 million

250,000 or

2,000 sq.km.

No minimum
requirement
50 sq.km

11. Beginning of Corporate Existence

When a new local government unit is created, its
corporate existence shall commence upon the election and
qualification of its chief executive and a majority members of
the Sanggunian, unless some other date is fixed therefore by
law or ordinance creating it. (Sec.14, LGC)
12. Division and Merger of LGUs
The division and merger of local government units
shall comply with the same requirements for their creation.

The income, population or land area shall not be reduced to

less than the minimum requirements. Likewise, the income
classification of the original local government unit shall not fall
below its current income classification prior to such division.
(Sec.8, LGC)
13. Abolition of LGUs
A local government unit may be abolished when its
income, population or land area has been irreversibly reduced
to less than the minimum standards prescribed for its creation
under the LGC, as certified by the national agencies to
Congress or to the Sanggunian concerned. Likewise, the law
or, ordinance abolishing an LGU shall specify the province,
city, municipality, or barangay with which the local
government unit sought to be abolished will be incorporated
or merged. (Sec.9, LGC)
14. Effects of Annexation/Consolidation of Municipal
Corporations
1. On the legal existence of the territory
annexed- Unless otherwise provided for by
law, the annexation of one municipal
corporation to another will dissolve the
annexed territory. It shall become part of the
annexing corporation and will fall under the
jurisdiction of the latter.
2. On the laws and ordinances of the annexed
corporation- In the absence of any provision
of law to the contrary, when a territory is
annexed to a municipal corporation, it shall
become subject to all the laws and ordinances
by which the annexing corporation is
governed.
3. On the right of officers or employees of the
annexed or consolidated territory to continue
to hold their offices- Subject to what the
legislature may provide upon annexation, the
officers and employees of the annexed or
consolidated territory shall terminate their
official relation with their offices.
4. On the title to the property of the annexed
territory- When a municipal corporation is
annexed to another, the annexing territory
shall acquire title to the property of the
annexed territory at the time of annexation
without compensation unless the annexing
statute provides otherwise.
Where the
annexed territory, however, forms part of a
municipality from which it is taken, the
legislature may provide for the payment of
compensation for the indebtedness incurred
on account of the property taken.
With regard to public buildings and
improvements
located
in
the
annexed territory, the annexing territory is not
required to pay for said buildings or
improvements as they have already been paid
for by the annexed territory. It would be
otherwise if there exists an indebtedness on
said buildings in which case, the annexing
state may be required to share in the payment
of said indebtedness.
5. On the debts and obligations of the annexed
territory- It has been stated that debts and
obligations of a municipal corporation
contracted before its annexation to another
territory shall be assumed by the annexing
territory in the absence of any provision to the
contrary.
The same rule applies of
consolidation where the consolidating

7
municipal corporation is held responsible for
the indebtedness and obligations incurred by
the territories which are consolidated.
15. Effects of Division of LGUs
On the legal existence of the original corporation: The
division of municipal corporation extinguishes the corporate
existence of the original municipality.
On the property, powers and rights of the original
corporation: Unless the law provides otherwise, when a
municipal corporation is divided into two or more
municipalities, each municipality acquires title to all the
property, powers, rights and obligations falling within its
territorial jurisdiction.
IV. GENERAL POWERS AND ATTRIBUTES OF LGUs
A. Powers in general
1. Sources:
a. Sec. 25, Art II: Secs. 5,6 and 7, Art. X, Philippine
Constitution
b. Statutes, e.g., R.A. 7160
c. Charter (particularly of cities)
d. Doctrine of the right of self-government, but applies
only in States which adhere to the doctrine.
2. Classifications:
a. Express, implied and inherent
b. Public or governmental, private or proprietary
c. Intramural or extramural
d. Mandatory and directory, ministerial and discretionary
3. Execution of powers:
a. Where the statute prescribes the manner of exercise,
the procedure must be followed.
b. Where the statute is silent, local government units
have discretion to select reasonable means and methods of
exercise.
B. GOVERNMENTAL POWERS:
1. General Welfare Clause- the statutory grant of police
power to local government units.
Limitations:
a. Express grant by law
b. Exercisable only within the territorial limits of the LGU,
except for protection of water supply
c. Equal protection clause
d. Due process clause
e. Must not be contrary to the Constitution and the laws.
NOTE:
A local government unit may exercise delegated
governmental powers:
Police power (under the General Welfare Clause)
Power of Taxation
Power of Eminent Domain
a. Requisites for the validity of a municipal ordinance:
1. Must not contravene the Constitution and any
statute;
2. Must not be unfair or oppressive;
3. Must not be partial or discriminatory;
4. Must not prohibit, but may regulate trade which is
not illegal per se;
5. Must not be unreasonable; and
6. Must be general in application and consistent with
public policy.

An ordinance extending burial assistance of P500 to a

bereaved family whose gross income does not exceed
P2,000 a month, has been upheld by the Supreme Court as a
valid exercise of police power. This power is organic and
flexible. The care for the poor is generally recognized as a
public duty. The support for the poor has long been an
accepted exercise of police power in the promotion of
common good. The police power of a municipal corporation
is broad and commensurate with the duty to provide for the
real needs of the people in their health, safety, comfort, and
convenience as consistently as may be with private rights. It
extends to all the great public needs and in a broad sense
includes all legislation and almost every function of the
municipal government. (Binay vs. Domingo, 201 SCRA
508)
2. Basic Services and Facilities:
17, LGC(a) Local government units shall endeavor to
be self-reliant and shall continue exercising the powers and
discharging the duties and functions currently vested upon
them.
They shall also discharge the functions and
responsibilities of national agencies and offices devolved to
them pursuant to this Code. Local government units shall
likewise exercise such other powers and discharge such
other functions and responsibilities as are necessary,
appropriate, or incidental to efficient and effective provision of
the basic services and facilities enumerated under the Code.
Devolution refers to the act by which the national
government confers powers and authority upon the various
local government units to perform specific functions and
responsibilities. This includes the transfer to the local
government units of the records, equipment and other assets
and personnel of national agencies and offices.
3. Power to generate and apply resources (18, LGC)
The exercise by local governments of the power to tax
is ordained by the present Constitution (5, Art. X, Phil.
Constitution). Only guidelines and limitations that may be
established by Congress can define and limit such power of
local governments. But local governments have no power to
tax instrumentalities of the National Government. PAGCOR
being an instrumentality of the National Government is
therefore exempt from local taxes. (Basco vs. PAGCOR,
197 SCRA 52)
Main Sources of Revenues of LGUs
A. Under the Constitution
1. taxes, fees and charges (5, Art. X)
2. share in the national taxes- Internal
Revenue Allotment
3. share in the proceeds of the utilization
and development of the national wealth
within their areas (7, Art. X)
B. Under the Local Government Code
1. floating of bonds
2. grants/aids
All LGUs are empowered to create their own sources of
revenue and to levy taxes, fees and charges subject to the
provisions on local taxation consistent with the basic policy of
local autonomy. The Sanggunian concerned through an
ordinance has the power to impose a tax, fee or charge. The
procedural requirements of public hearing and publication
must be observed for purposes of compliance with the
requirements of due process.
C. Fundamental Principles on Local taxation

8
1.
2.
a.
b.
c.
d.
3.
4.

5.

Taxation shall be uniform in each local government

unit;
Taxes, fees, charges and other impositions shall:
be equitable and based as far as practicable on the
taxpayers ability to pay;
be levied and collected only for public purposes;
not be unjust, excessive, oppressive or
confiscatory;
not be contrary to law, public policy, national
economic policy, or in restraint of trade.
The collection of taxes, fees, charges and other
impositions shall in no case be let to any private
persons;
The revenue collected pursuant to the provisions of
the LGC shall inure solely to the benefit of, and be
subject to disposition by, the local government unit
levying the tax, fee, charge or other imposition
unless otherwise specifically provided herein; and
Each local government unit shall, as far as
practicable, evolve a progressive system of
taxation.

NOTES:
Shares of LGUs in the proceeds of national taxes
The share of the LGU in Internal Revenue Taxes is
40%. The 40% IRA is allocated to LGUs as follows: for
provinces and cities- 23%; for municipalities- 34%; for
barangays- 20%.
No less than 20% of the IRA is allotted for
development project by the local unit from the IRA.
Shares in National Wealth
40% of the gross collection from mining taxes,
royalties, forestry and fishery charges, and from each share in
any joint effort in utilizing and developing the national wealth
within the LGUs jurisdiction and shall be remitted without
need for further action to the local treasurer on a quarterly
basis within five days after the end of every quarter.
LGUs shall receive 1% of the gross sale or receipts of
the preceding calendar year and 40% of taxes, fees or
charges that GOCCs would have paid if not tax exempt,
whichever is higher.
How National Wealth is Distributed
If the national wealth is located in one province, the
province shall receive 20%, the component city/municipality
shall receive 45% and the barangays 35%.
If the national wealth is located in two or more LGUs,
distribution shall be based on the following: population- 70%
and land area- 30%.
If the national wealth is located in highly urbanized city
or independent component city, the HUC or ICC shall receive
65% and the barangays shall receive 35%.
D. Fundamental Principles of Local Fiscal
Administration
1. No money shall be paid out of the local treasury
except in pursuance of an appropriation ordinance or law;
2. Local government funds and monies shall be
spent solely for public purposes;
3. Local revenue is generated only from the sources
expressly authorized by law or ordinance, and collection
thereof shall at all times be acknowledged properly;
4. All monies officially received by a local
government officer in any capacity or on any occasion shall
be accounted for as local funds, unless otherwise provided by
law;
5. Trust funds in the local treasury shall not be paid
out except in fulfillment of the purpose for which the trust is
created or the funds received.

6. Every officer of the local government unit whose

duties permit or require the possession or custody of local
funds shall be properly bonded, and such officer shall be
accountable and responsible for said funds and for the
safekeeping thereof in conformity with the provisions of law.
7. Local governments shall formulate sound financial
plans, and the local budgets shall be based on functions,
activities and projects, in terms of expected results.
8. Local budget plans and goals shall, as far as
practicable, be harmonized with national development plans,
goals and strategies in order to optimize the utilization of
resources and to avoid duplication in the use of fiscal and
physical resources.
9. Local budgets shall operationalize approved
development plans.
10. Local government units shall ensure that their
respective budgets incorporate the requirements of their
component units and provide for equitable allocation of
resources among these component units.
11. National planning shall be based on local
planning to ensure that the needs and aspirations of the
people as articulated by the local government units in their
respective local development plans are considered in the
formulation of budgets of national line agencies or offices.
12. Fiscal responsibility shall be shared by all those
exercising authority over the financial affairs, transactions,
and operations of the local government units.
13. The local government unit shall endeavor to have
a balanced budget in each fiscal year of operation.
4. Eminent Domain (19, LGC)
The power to expropriate private property has been
delegated by Congress to LGUs under 19, LGC. The
exercise by LGUs of the power of eminent domain are subject
to the usual constitutional limitations such as necessity,
private property, taking, public use, just compensation and
due process of law.
The determination of whether there is genuine
necessity for the exercise of the power of eminent domain is a
justiciable question when exercised by the LGUs and
generally a political question when exercised by Congress.
NOTE:
Private property already devoted to public use can still be a
subject of expropriation by Congress but not by LGUs.
The additional limitations on the exercise of the power of
eminent domain by LGUs are, as follows:
1. Exercised only by the local chief executive, acting pursuant
to a valid ordinance;
2. For public use or purpose or welfare, for the benefit of the
poor and the landless;
3. Only after a valid and definite offer had been made to, and
not accepted by, the owner;
4. An LGU shall file a complaint for expropriation on the
strength of an ordinance and not a mere resolution passed by
the Sanggunian. (Municipality of Paranaque vs. VM Realty
Corp., 292 SCRA 676)
The promulgation of the ordinance authorizing the local
chief executive to exercise the power must be promulgated
prior to the filing of the complaint for eminent domain with the
proper court, and not after the court shall have determined
the amount of just compensation to which the defendant is
entitled. (Heirs of Suguitan vs. City of Mandaluyong, 328
SCRA 137)
NOTE:

9
An LGU may immediately take possession of the property
upon filing of expropriation proceedings and deposit in court
of 15% of the FMV of the property.
5. Other powers
a. Reclassification of lands (20, RA 7160)
A city or municipality may, through an ordinance
passed after conducting public hearings for the
purpose, may authorize the reclassification of
agricultural lands and provide for the manner of
their utilization or their disposition:
i. When the land ceases to be economically
feasible and sound for agricultural
purposes as determined by the
Department of Agriculture;
ii. Where the land shall have substantially
greater economic value for residential,
commercial or industrial purposes as
determined by the sanggunian; provided that
such reclassification shall be limited to the
following percentage of the total agricultural
land area at the time of the passage of the
ordinance:
for highly urbanized cities and independent
component cities: 15%
for component cities and 1 st to 3rd class
municipalities: 10%
for 4th and 6th class municipalities: 5%
Provided that agricultural land distributed to land reform
beneficiaries shall not be affected by such reclassification.
b. Closure and opening of roads (21, RA 7160)
A local government unit may, pursuant to
an ordinance, permanent or temporarily close or open any
local road, alley, park, or square falling within its jurisdiction,
provided that in case of permanent closure, such ordinance
must be approved by at least 2/3 of all the members of the
sanggunian, and when necessary, and adequate substitute
for the public facility shall be provided.
NOTE:
Additional limitations in case of permanent closure:
i. Adequate provision for the maintenance of public
safety must be made;
ii. The property may be used or conveyed for any
purpose for which other real property may be
lawfully used or conveyed, but no freedom park
shall be closed permanently without provision for its
transfer or relocation to a new site.
Temporary closure may be made during an actual
emergency, fiesta celebrations, public rallies, etc.
c. Naming of LGUs, public places, streets and
structures
1. Provinces- The sangguniang panlalawigan may
change the name of the following within its territorial
jurisdiction:
i. Component cities and municipalities,
upon the recommendation of the sangguniang
concerned;
ii. Provincial roads, avenues, boulevards,
thoroughfares and bridges;
iii. Public vocational or technical schools
and other post secondary and tertiary schools;
iv. Provincial hospitals, health centers,
and other health facilities; and

v. Any other public place or building

owned by the provincial government.
2. Highly Urbanized and Independent
Component Cities- The sanggunians of HUCs and ICCs
may change the name of the following within its territorial
jurisdiction:
i.
City
barangays,
upon
the
recommendation of the sangguniang barangay
concerned;
ii. City roads, avenues, boulevards,
thoroughfares, and bridges;
iii. Public elementary, secondary and
vocational or technical schools, community colleges
and non-chartered colleges;
iv. City hospitals, health centers and
other health facilities; and
v. Any other public place or building
owned by the city government.
3. Component Cities and Municipalities- The
sanggunians of component cities and municipalities may
change the name of the following within its territorial
jurisdiction:
i. City and municipal barangays, upon
recommendation of the sangguniang barangay
concerned;
ii. City, municipal and barangay roads,
avenues, boulevards, thoroughfares, and bridges;
iii. City and municipal public elementary,
secondary and vocational or technical schools,
post-secondary and other tertiary schools;
iv. City and municipal hospitals, health
centers and other health facilities; and
v. Any other public place or building
owned by the municipal government.
NOTES:
None of the foregoing local government units, institutions,
places, or buildings shall be named after a living person, nor
may a change of name be made unless for a justifiable
reason and, in any case, not oftener than once every ten
years. The name of a local government unit or a public place,
street or structure with historical, cultural, or ethnic
significance shall not be changed, unless by a unanimous
vote of the sanggunian concerned and in consultation with the
Philippine Historical Commission.
A change of name of a public school shall be made only
upon the recommendation of the local school board
concerned.
A change of name of public hospitals, health centers, and
other health facilities shall be made only upon the
recommendation of the local health board concerned.
The change of name of any local government unit shall be
effective only upon ratification in a plebiscite conducted for
the purpose in the political unit directly affected.
In any change of name, the Office of the President, the
representative of the legislative district concerned, and the
Bureau of Posts shall be notified. (13, LGC)
d. Settlement of boundary disputes (118 a-d,
RA 7160):
Boundary disputes between and among
local government units shall, as much as possible,
be settled amicably. To this end:
a. Boundary disputes involving two
or more barangays in the same

10

b.

c.

d.

city or municipality shall be

referred for settlement to the
sangguniang panlungsod or
sangguniang bayan concerned.
Boundary disputes involving two
or more municipalities within the
same province shall be referred
for
settlement
to
the
sangguniang
panlalawigan
concerned.
Boundary disputes involving
municipalities or component
cities of different provinces shall
be jointly referred for settlement
to the sanggunians of the
provinces concerned.
Boundary disputes involving a
component city or municipality
on the one hand and a highly
urbanized city on the other, or
two or more highly urbanized
cities, shall be jointly referred for
settlement to the respective
sanggunians of the parties.

Procedure:
In the event the sanggunian fails to effect an
amicable settlement within 60 days from the date the dispute
was referred thereto, it shall issue a certification to that effect.
Thereafter, the dispute shall be formally tried by the
sanggunian concerned which shall decide the issue within 60
days from the date of the certification referred to above.
Within the time and manner prescribed by the Rules
of Court, any party may elevate the decision of the
sanggunian concerned, any party may elevate the decision of
the sanggunian concerned to the proper Regional Trial Court
having jurisdiction over the area in dispute. The Regional
Trial Court shall decide the appeal within one (1) year from
the filing thereof. Pending final resolution of the case, the
disputed area prior to the dispute shall be maintained and
continued for all legal purposes. (119, LGC)
e. Authority over police units (6, Art. XVI,
Philippine Constitution)
The State shall establish and maintain one police
force, which shall be national in scope and civilian in
character, to be administered and controlled by a National
Police Commission. The authority of local executives over
the police units in their jurisdiction shall be provided by law.
6. LOCAL LEGISLATIVE POWER
A. Products of legislative action
1. Ordinance- prescribes a rule of
conduct.
2. Resolution- of temporary character, or
expresses sentiment.
B. Requisites for validity:
1. Must not contravene the Constitution
and any statute
2. Must not be unfair or oppressive
3. Must not be partial or discriminatory
4. Must not prohibit, but may regulate
trade
5. Must not be unreasonable
6. Must be general in application and
consistent with public policy.
Approval of ordinances:

Ordinances passed by the sangguniang

panlalawigan, sangguniang panlungsod or sangguniang
bayan shall be approved:
If the local chief executive approves the same, affixing his
signature on each and every page thereof.
If the local chief executive vetoes the same, and the veto is
overridden by 2/3 vote of all the members of the sanggunian.
Where petitioner was charged with falsification of a public
document for approving a resolution which purportedly
appropriated money to pay for the terminal leave of 2
employees when actually no such resolution was passed, the
petitioner argued that his signature on the resolution was
merely ministerial. The Supreme Court disagreed, saying
that the grant of the veto power accords the Mayor the
discretion whether or not to approve the resolution. (De Los
Reyes vs. Sandiganbayan, G.R. 121215, Nov. 13, 1997)
NOTES:
1. The vice governor, the vice mayor and the punong
barangay shall be the presiding officer of the sanggunians but
shall vote only in case of tie.
2. In case of inability of the presiding officer, the members
shall elect a temporary presiding officer from among
themselves. (49)
3. For disorderly behavior and absence without justifiable
cause for 4 consecutive sessions, a member may be
censured, reprimanded, excluded from the session,
suspended for not more than 60 days, or expelled.
Suspension or expulsion shall require concurrence of at least
2/3 of all sanggunian members. A member sentenced by final
judgment to imprisonment for at least one year for a crime
involving moral turpitude shall be automatically expelled.
(50)
4. Every sanggunian member, upon assumption of office
shall make a full disclosure of his business and financial
interests. He shall also disclose any business, financial or
professional relationship or any relationship within the 4th
degree which he may have with anyone affected by any
ordinance or resolution of the sanggunian which involves a
conflict of interests.
Such relationship includes:
i. Investment in the entity to which the ordinance
may apply
ii. Contracts with any person to which the ordinance
may apply
Conflict of interests refers to a situation where a
sanggunian member may not act in the public interest due to
personal consideration that may affect his judgment to the
prejudice of the public. (51)
5. A special session may be called by the local chief
executive or a majority of the sanggunian members. Unless
concurred in by 2/3 vote of the members present, no matter
may be reconsidered at the special session except those
stated in the notice. (52)
6. A majority of all the members of the sanggunian shall
constitute a quorum. (53)
7. An ordinance shall be approved by the local chief
executive by affixing his signature in each and every page
thereof.
8. The governor or mayor may veto any item in the following
cases:

11
a.
b.
c.

Particular item or items in an appropriations

ordinance
Ordinance adopting a local development plan and
public investment program
Ordinance directing the payment of money or
creating liability. (55)

9. The grounds for veto are:

a. The ordinance is ultra vires
b. Or that it is prejudicial to public welfare
10. The veto shall be communicated to the sanggunian within
15 days in the case of a province and 10 days in the case of a
city or municipality; otherwise, the ordinance shall be deemed
approved, as if he signed it. The sanggunian may override
the veto by 2/3 of all its members. (54)
11. Ordinances enacted by the sangguniang barangay shall,
upon approval by a majority of all its members, be signed by
the Punong Barangay. The latter has no veto power.
12. Review
a. The sangguniang panlalawigan shall review
ordinances and resolution of cities and
municipalities to determine if they are within their
power. (56)
Procedure:
Within 3 days after approval, the
secretary of the sangguniang panlungsod (in
component cities) or sangguniang bayan shall
forward to the sangguniang panlalawigan for review
copies of approved ordinances and resolutions
approving the local development plans and public
investment programs formulated by the local
development councils.
The sangguniang
panlalawigan shall review the same within 30 days;
if it finds that the ordinance or resolution is beyond
the power conferred upon the sangguniang
panlungsod or sangguniang bayan concerned, it
shall declare such ordinance or resolution invalid in
whole or in part. If no action is taken within 30
days, the ordinance or resolution is presumed
consistent with law, and therefore, valid.
b.

The sangguniang panlungsod or bayan shall review

sangguniang barangay ordinances to determine if
they are lawful. (57)

Procedure:
Within 10 days from enactment, the sangguniang
barangay shall furnish copies of all barangay ordinances
to the sangguniang panlungsod or sangguniang bayan
for review. If the reviewing sanggunian finds the
barangay ordinances inconsistent with law or city or
municipal ordinances, the sangguniang concerned shall,
within 30 days from receipt thereof, return the same with
its comments and recommendations to the sangguniang
barangay for adjustment, amendment or modification, in
which case the effetivity of the ordinance is suspended
until the revision called for is effected. If no action is
taken by the sangguniang panlungsod or sangguniang
bayan within 30 days, the ordinance is deemed
approved.
13. Enforcement of disapproved ordinances/resolutions:
Any attempt to enforce an ordinance or resolution
approving the local development plan and public investment
program, after the disapproval thereof, shall be sufficient
ground for the suspension or dismissal of the official or
employee concerned.

14. Effectivity
a. Unless otherwise stated in the ordinance, it shall
take effect after 10 days from posting at the
provincial capitol or city, municipal or barangay hall
and two other conspicuous places.
b. The gist of all ordinances with penal sanction shall
be published in a newspaper of general circulation
in the province. In the absence of such newspaper,
the ordinance shall be posted in all municipalities
and cities of the province where the sanggunian of
origin is situated.
c. In highly urbanized and independent component
cities, in addition to posting, the main features of
the ordinance shall be published in a local
newspaper of general circulation. In the absence of
such newspaper, it shall be published in any
newspaper of general circulation. (59
C.
1.
2.
3.
4.

Corporate Powers (22, RA 7160)

To have continuous succession in its corporate name
To sue and be sued
To have and use a corporate seal
To acquire and convey real or personal property
a. The local government unit may acquire real or
personal, tangible or intangible property, in any
manner allowed by law, e.g., sale, donation,
etc.
b. The local government unit may alienate only
patrimonial property, upon proper authority.
c. In the absence of proof that the property was
acquired through corporate or private funds,
the presumption is that it came from the State
upon the creation of the municipality and, thus,
is governmental or public property. (Salas vs.
Jarencio, 48 SCRA 734; Rebuco vs.
Villegas, 55 SCRA 656)
d. Town plazas are properties of public dominion;
they may be occupied temporarily, but only for
the duration of an emergency (Espiritu vs.
Municipal
Council
of
Pozorrubio,
Pangasinan, 102 Phil. 866).
e. A public plaza is beyond the commerce of
man, and cannot be the subject of lease or
other contractual undertaking. And, even
assuming the existence of a valid lease of the
public plaza or part thereof, the municipal
resolution
effectively
terminated
the
agreement, for it is settled that the police
power cannot be surrendered or bargained
away through the medium of a contract
(Villanueva vs. Castaneda, 154 SCRA 142).

5. Power to enter into contracts

a. Requisites of a valid municipal contracts
i.
The local government unit has the
express, implied or inherent power to
enter into the particular contract.
ii.
The contract is entered into by the
proper department, board, committee,
officer or agent. Unless otherwise
provided by the Code, no contract
may be entered into by the local chief
executive on behalf of the local
government unit without prior
authorization by the sangguniang
concerned.
iii.
The contract must comply with certain
substantive requirements, i.e., when
expenditure of public fund is to be

12

b.

c.

made, there must be an actual

appropriation and a certificate of
availability of funds.
iv.
The contract must comply with the
formal requirements of written
contracts, e.g., the Statute of Frauds.
Ultra vires contracts
When a contract is entered into without
compliance with the first and the third requisites
(above), the same is ultra vires and is null and void.
Such contract cannot be ratified or validated.
Ratification of defective municipal contracts is
possible only when there is non-compliance with the
second and/or fourth requirements above.
Ratification may be express or implied.
Authority to negotiate and secure contracts (23,
RA 7160)
The local chief executive may, upon authority of
the sanggunian, negotiate and secure financial
grants or donations in kind, in support of the basic
services and facilities enumerated under 17, from
local and foreign assistance agencies without
necessity of securing clearance or approval from
any department, agency, or office of the national
government or from any higher local government
unit; Provided, that projects financed by such grants
or assistance with national security implications
shall be approved by the national agency
concerned.

6. To exercise such other powers as are granted to

corporations, subject to limitations provided in the Code
and other laws.
V. MUNICIPAL LIABILITY
A. Specific provisions making LGUs liable:
a. 24, RA 7160- Liability for damages- Local
government units and their officials are not exempt
from liability for death or injury to persons or damage
to property.
b. Art. 2189, NCC- The local government unit is liable
in damages for death or injuries suffered by reason
of the defective condition of roads, streets, bridges,
public buildings and other public works.
c. Art. 2180, (par.6), NCC- The State is responsible
when it acts through a special agent.
d. Art. 34, NCC- The local government unit is
subsidiarily liable for damages suffered by a person
by reason of the failure or refusal of a member of the
police force to render aid and prosecution in case of
danger to life and property.
2. Liability for Tort
a. If the local government unit is engaged in
governmental functions, it is NOT liable.
b. If engaged in proprietary functions, local government
unit is liable.
Holding of town fiesta is a proprietary function.
The Municipality of Malasique, Pangasinan, was
held liable for the death of a member of the zarzuela
group when the stage collapsed, under the principle
of respondeat superior.
NOTE:
The municipal council managed the town fiesta.
While the municipality was held liable, the councilors

themselves are not liable for the negligence of their

employees or agents. (Torio vs. Fontanilla, 85 SCRA 599)
c.

Personal Liability of local officials

3. Liability for violation of law

Case:
The Municipality of Bunawan, Agusan del Sur,
through the Mayor, was held in contempt and fined P1,000.00
with a warning, because of the refusal of the Mayor to abide
by a Temporary Restraining Order issued by the Court
(Moday vs. CA, 243 SCRA 152).
4. Liability for contracts
a. General Rule- A municipal corporation, like an
ordinary person, is liable on a contract it enters into,
provided that the contract is intra vires. If the
contract is ultra vires, the munipal corporation is not
liable.
NOTES:
A private individual who deals with a municipal
corporation is imputed constructive knowledge of the
extent of the power or authority of the municipal
corporation to enter into contracts.
Ordinarily, therefore, the doctrine of estoppel does not
lie against municipal corporation.
b.

Doctrine of Implied Municipal Liability- A

municipality may become obligated upon an implied
contract to pay the reasonable value of the benefits
accepted or appropriated by it as to which it has the
general power to contract (Province of Cebu vs.
IAC, 147 SCRA 447).
The doctrine applies to all cases where money or
property of a party is received under such
circumstances that the general law, independent of
an express contract, implies an obligation to do
justice with respect to the same.
Thus, in this case, the Province of Cebu cannot
set up the plea that the contract was ultra vires and
still retain benefits thereunder. Having regarded the
contract as valid for purposes of reaping benefits,
the Province of Cebu is estopped to question its
validity for the purpose of denying answerability.

VI. LOCAL OFFICIALS

A.
Provisions applicable to elective and appointive
officials
1. 89, RA 7160: Prohibited business and pecuniary
interest- It shall be unlawful for any local government official
or employee, directly or indirectly, to:
a. Engage in any business transaction with the local
government unit in which he is an official or
employee or over which he has the power of
supervision, or with any of its authorized boards,
officials, agents, or attorneys, whereby money is
to be paid, or property or any other thing of value
is to be transferred, directly or indirectly, out of the
resources of the local government unit to such
person or firm;
b. Hold such interests in any cockpit or other games
licensed by a local government unit;
c. Purchase any real estate or other property
forfeited in favor of such local government unit for
unpaid taxes or assessment, or by virtue of a legal

13

d.
e.
f.

process at the instance of the said local

government unit;
Be a surety for any person contracting or doing
business with the local government unit for which
a surety is required; and
Possess or use any public property of the local
government unit for private purposes.
The prohibitions and inhibitions prescribed in RA
6713 also apply.

2. Practice of Profession (90, RA 7160)

a. Governors or mayors are prohibited from
practicinstrative proceedings involving the local
government unit of which he is an official.
iv. Use property and personnel of the government
except when the sanggunian member is
defending the interest of the government.
Case:
It was held that by appearing as counsel for
dismissed employees, City Councilor Javellana violated the
prohibition against engaging in private practice if such
practice represents interests adverse to the government.
(Javellana vs. DILG, 212 SCRA 475)
b. Physicians may practice their profession even
during office hours only on emergencies and
without monetary compensation.
3. Prohibition against appointment (94, RA 7160)
a. No elective or appointive local official shall be
eligible for appointment or designation to any
public office during his tenure.
b. Unless otherwise allowed by law or by the primary
function of his office, no elective or appointive
local official shall hold any other office.
c. Except for losing candidates in barangay
elections, no candidate who lost in any election
should be appointed to any office within one year
after election.
B. ELECTIVE LOCAL OFFICIALS
1. Qualifications:
a. Common qualifications:
i. Filipino Citizen
ii. Registered voter of the local government unit, or
of the district where he intends to be elected in the
case of the members of the sanggunian.
iii. Resident therein for at least one year
immediately before the election
iv. Ability to read and write Filipino or any other local
dialect.
b. Age
i. Candidates in provinces and highly urbanized
cities- at least 23 years old
ii. Candidates for mayor and vice mayor of
component cities and municipalities- at least 21
years old
iii. Candidates for sanggunian members in
component cities and municipalities- at least 18
years old
iv. Barangay officials- at least 18 years old
v. Sangguniang Kabataan- at least 15-21 years
NOTES:
Age- must be possessed on the day of the election.
The LGC does not specify any particular date when the
candidate must possess Filipino citizenzship. Philippine
citizenship is required to ensure that no alien shall govern our
people. An official begins to govern only upon his

proclamation and on the day that his term begins. Since

Frivaldo took his oath of allegiance on June 30, 1995, when
his application for repatriation was granted by the Special
committee on Naturalization created under PD 825, he was
therefore qualified to be proclaimed. Besides, 39 of the LGC
speaks of qualifications of elective officials, not of candidates
(Frivaldo vs. COMELEC, 271 SCRA 767).
Petitioner was over 21 years of age on the day of the
election was ordered disqualified by the Supreme Court when
the latter rejected the contention of the petitioner that she was
qualified because she was less than 22 years old. The
phrase not more than 21 years old is not equivalent to less
than 22 years old (Garvida vs. Sales).
2. Disqualifications (40, RA 7160)- The following are
disqualified from running for any elective local position:
a. Those sentenced by final judgment for an
offense involving moral turpitude or for an
offense punishable by one year or more of
imprisonment, within two years after serving
sentence;
b. Those removed from office as a result of an
administrative case;
c. Those convicted by final judgment for violating
the oath of allegiance to the Republic;
d. Those with dual citizenship;
e. Fugitives from justice in criminal or nonpolitical cases here or abroad;
f. Permanent residents in a foreign country or
those who have acquired the right to reside
abroad and continue to avail of the same right
after the effectivity of the Code; and
g. The insane or feeble-minded.
3. Manner of Election
a.
The governor, vice-governor, city or municipal
mayor, city or municipal vice-mayor and
punong barangay shall be elected at large in
their respective units. The sangguniang
kabataan chairman shall be elected by the
registered voters of the katipunan ng
kabataan.
b.
The regular members of the sangguniang
panlalawigan, panlungsod and bayan shall
be elected by district, as may be provided by
law. The presidents of the leagues of
sanggunian members of component cities
and municipalities shall serve as ex officio
members of the sangguniang panlalawigan
concerned. The presidents of the liga ng
mga barangay and the pederasyon ng mga
sangguniang kabataan elected by their
respective chapters, shall serve as ex officio
members of the sangguniang panlalawigan,
panlungsod or bayan.
c.
In addition, there shall be one sectoral
representative from the women, one from the
workers, and one from any of the following
sectors: urban poor, indigenous cultural
communities, disabled persons, or any other
sector as may be determined by the
sanggunian concerned within 90 days prior to
the holding of the next local elections as may
be provided by law. The Comelec shall
promulgate the rules and regulations to
effectively provide for the election of such
sectoral representatives.
4. Date of Election

14
Every three years on the second Monday of May,
unless otherwise provided by law.
5. Term of Office
Three years, starting from noon of June 30, 1992,
or such date as may be provided by law, except that of
elective barangay officials. No local elective official shall
serve for more than three consecutive terms in the same
position. The term of office of barangay officials and
members of the sangguniang kabataan shall be for five years,
which shall begin after the regular election of barangay
officials on the second Monday of May, 1997. (R.A. 8524)
The three-term limit on a local official is to be understood to
refer to terms for which the official concerned was elected.
Thus, a person who was elected Vice Mayor in 1988 and
who, because of the death of the Mayor, became Mayor in
1989, may still be eligible to run for the position of Mayor in
1998, even if elected as such in 1992 and 1995 (Borja v.
Comelec, G.R. No. 133495, Sept. 3, 1998).
6. Rules on Succession (44-46, RA 7160)
A. Permanent vacancies: A permanent vacancy arises
when an elective local official fills a higher vacant office,
refuses to assume office, fails to qualify, dies, is removed
from office, voluntarily resigns, or is permanently
incapacitated to discharge the functions of his office.
a. Governor and Mayor
i. Vice Governor and Vice Mayor
ii. Sanggunian members according to ranking
b. Punong barangay
i. Highest ranking sanggunian member
ii. Second highest ranking sangguniang barangay
member
c. Ranking in the sanggunian shall be determined on
the basis of the proportion of the votes obtained to
the number of registered votes in each district.
d. Ties will be resolved by drawing of lots. (44)
e. Sanggunian:
i. Provinces, highly urbanized cities and independent
component cities- appointment by the President
ii. Component city and municipality- appointment by
governor
iii. Sangguniang barangay- appointment by mayor
iv. Except for the sangguniang barangay, the
appointee shall come from the political party of the
member who caused the vacancy.
NOTE:
A nomination and a certificate of membership of the
appointee from the highest official of the political party
concerned are conditions sine qua non, and any appointment
without such nomination and certificate shall be null and void
and shall be a ground for administrative action against the
official concerned.
v. If the member does not belong to any party, the
appointee shall be recommended by the
sanggunian.
vi. The appointee for the sangguniang barangay
shall be recommended by the sangguniang
barangay.
vii. Vacancy in the representation of the youth and
the barangay in the sanggunian shall be filled by the
official next in rank of the organization. (45)
B. Temporary vacancy
a. When the governor, mayor or punong barangay is
temporarily incapacitated to perform his duties, the
vice governor, vice mayor, or ranking sangguniang

b.

c.

barangay member shall exercise his powers except

the power to appoint, suspend or dismiss
employees, which can only be exercised after 30
working days.
When the local chief executive is traveling within
the Philippines for not more than 3 consecutive
days, he may designate an officer-in-charge. The
authorization shall specify the powers of the officerin-charge except the power to appoint, suspend or
dismiss employees.
If the local chief executive does not issue the
authorization, the vice governor, vice mayor, or
highest ranking sangguniang barangay member
shall assume his powers on the fourth day of his
absence. (46)

7. Compensation (81, R.A. 7160)

The compensation of local officials and personnel shall be
determined by the sanggunian concerned, subject to the
provisions of R.A. 6758 (Compensation and Position
Classification Act of 1989). The elective barangay officials
shall be entitled to receive honoraria, allowances and other
emoluments as may be provided by law or barangay,
municipal or city ordinance, but in no case less than P1,000
per month for the punong barangay and P600 for the
sangguniang barangay members.
Elective local officials shall be entitled to the same leave
privileges as those enjoyed by appointive local officials,
including the cumulation and commutation thereof.
7. Recall- termination of official relationship of an elective
official for loss of confidence prior to the expiration of his term
through the will of the electorate.
a. By whom exercised- by the registered voters of a
local government unit to which the local elective official
subject to such recall belongs. (69, R.A. 7160)
b. Two modes of initiating recall:
i. By a preparatory recall assembly
ii. By the registered voters of the local government
unit
c. Preparatory recall assembly- composed of the
following:
i. Provincial level: All mayors, vice mayors and
sanggunian members of the municipalities and
component cities.
ii.
City level: All punong barangay and
sangguniang barangay members in the city.
iii. Legislative district level: Where sangguniang
panlalalwigan members are elected by district, all
elective municipal officials in the district; and in
cases where sangguniang panglungsod members
are elected by district, all elective barangay officials
in the district.
iv.
Municipal level: All punong barangay and
sangguniang barangay members in the
municipality.
d.

Procedure for initiating recall by preparatory recall

assembly
A majority of all the preparatory recall assembly
members may convene in session in a public place and
initiate a recall proceeding against any elective official in the
local government unit concerned. Recall of provincial, city or
municipal officials shall be validly initiated through a
resolution adopted by a majority of all the members of the
preparatory recall assembly concerned during its session
called for that purpose.

15
Case:

d.

It was held that notice to all the members of the

Preparatory Recall Assembly is imperative; thus, where the
resolution was adopted without giving notice to all the
members of the PRA, the same is fatally flawed (Garcia vs.
Comelec, G.R. No. 111511, October 5, 1993). However, in
Malonzo vs. Comelec, G.R. No. 127066, March 11, 1997, it
was held that where the Comelec has already conducted an
investigation and found the initiatory recall proceedings to be
in accord with law, there is no necessity for the Supreme
Court to refer the matter of the veracity of the questioned
notices back to the Comelec.
e. Initiation of recall by registered voters: Recall of a
provincial, city, municipal or barangay official may also be
validly initiated upon petition by at least 25% of the total
number of registered voters in the local government unit
concerned during the election in which the local official sought
to be recalled was elected.
f.

Procedure:
i. A written petition for recall duly signed before the
election registrar or his representative, and in the
presence of a representative of the petitioner and
representative of the official sought to be recalled,
and in a public place in the province, city,
municipality or barangay, as the case may be, shall
be filed with the Comelec through its office in the
local government unit concerned.
ii.
The Comelec or its duly authorized
representative shall cause the publication of the
petition in a public and conspicuous place for a
period of not less than 10 days nor more than 20
days, for the purpose of verifying the authenticity
and genuineness of the petition and the required
percentage of voters.
iii.
Upon the lapse of the aforesaid period, the
Comelec or its duly authorized representative shall
announce the acceptance of candidates to the
position and thereafter prepare the list of candidates
which shall include the name of the official sought to
be recalled.

The elective local official sought to be recalled shall not be

allowed to resign while the recall process is in progress.
Limitations on Recall:
1. Any elective local official may be the subject of a recall
election only once during his term of office for loss of
confidence.
2. No recall shall take place within one year from the date
of the officials assumption to office or one year immediately
preceding a regular local election.
The official sought to be recalled is automatically a
candidate.
Recall shall be effective upon the election and proclamation
of successor receiving the highest number of votes.
9. Resignation of elective local officials shall be deemed
effective only upon acceptance by the following
authorities:
a. The President, in case of governors, vice
governors, and mayors and vice mayors of highly
urbanized cities and independent component
cities;
b. The governor, in case of municipal mayors and
vice mayors, city mayors and vice mayors of
component cities;
c. Sanggunian concerned, in case of sangguniang
members; and

The city or municipal mayor, in case of barangay

officials.

Effectivity:
c. Resignation takes effect upon acceptance.
d. It is deemed accepted if not acted upon within 15
working days.
e. Irrevocable resignation by sanggunian members
takes effect upon presentation before an open
session. (82, R.A. 7160)
10. Grievance Procedure (83, R.A. 7160)- The local chief
executive shall establish a procedure to inquire into, act upon,
resolve or settle complaints and grievances presented by
local government employees.
11. Discipline (60-68, R.A. 7160)
a. Grounds for disciplinary action: An elective local
official may be disciplined, suspended, or removed from office
on any of the following grounds:
i. Disloyalty to the Republic of the Philippines.
ii. Culpable violation of the Constitution
iii. Dishonesty, oppression, misconduct in office,
gross negligence, or dereliction of duty.
iv. Commission of any offense involving moral
turpitude or an offense punishable by at least prision mayor.
v. Abuse of authority.
vi. Unauthorized absence for 15 consecutive
working days, except in the case of members of the
sangguniang panlalawigan, panlungsod, bayan and
barangay.
vii. Application for, or acquisition of, foreign
citizenship or residence or the status
Elective barangay
officials, shall be filed before the sangguiniang panlungsod or
sangguniang bayan concerned, whose decision shall be final
and executory.
c. Notice of Hearing (62, R.A. 7160)- (a) Within 7
days after the administrative complaint is filed, the Office
of the President or the sanggunian concerned as the
case may be, shall require the respondent to submit his
verified answer within 15 days from receipt thereof, and
commence the investigation of the case within 10 days
after the receipt of such answer of the respondent.
(b) When the respondent is an elective official of a
province or highly urbanized city, such hearing and
investigation shall be conducted in the place where he
renders or holds office. For all other local elective
officials, the venue shall be the place where the
sanggunian concerned is located.
(c) However, no investigation shall be held within 90
days immediately prior to any local election, and no
preventive suspension shall be imposed prior to the 90day period immediately preceding local election, it shall
be deemed automatically lifted upon the start of
aforesaid period.
d. Preventive Suspension
1. Who may impose:
a. By the President, if the respondent is an
elective official of a province, a highly
urbanized or an independent component
city;
b. By the governor, if the respondent is an
elective local official of a component city
or municipality;
c. By the mayor, if the respondent is an
elective official of the barangay.
2. When may be imposed: Preventive suspension
may be imposed at any time:

16
a.
b.
c.

After the issues are joined;

When the evidence of guilt is strong; and
Given the gravity of the offense, there is
great probability that the continuance in
office of the respondent could influence
the witnesses or pose a threat to the
safety and integrity of the records and
other evidence.

Provided that any single preventive suspension

shall not extend beyond 60 days, and in the event
several administrative cases are filed against the
respondent, he cannot be suspended for more than
90 days within a single year on the same ground or
grounds existing and known at the time of the first
suspension.

The penalty of suspension imposed upon the

respondent shall not exceed his unexpired term, or a period
of 6 months for every administrative offense, nor shall said
penalty be a bar to the candidacy of the respondent as long
as he meets the qualifications required for the office. But the
penalty of removal from office as a result of an administrative
investigation shall be a bar to the candidacy of the
respondent for any elective position.
Case:
The Supreme Court upheld the imposition of the
administrative penalty of suspension of not more than 6
months for each offense, provided that the successive service
of the sentence should not exceed the unexpired portion of
the term of the petitioners. The suspension did not amount to
removal from office (Salalima vs. Guingona, 257 SCRA
55).

Case:
When the petitioner failed to file his answer despite
the many opportunities given to him, he was deemed to have
waived his right to answer and to present evidence. At that
point, the issues were deemed joined, and it was proper for
the Executive Secretary to suspend him, inasmuch as the
Secretary found that the evidence of guilt was strong and that
continuance in office could influence the witnesses and pose
a threat to the safety and integrity of the evidence against him
(Joson vs. Torres, 290 SCRA 279).
The authority to preventively suspend is exercised
concurrently by the Ombudsman, pursuant to R.A. 6770; the
same law authorizes a preventive suspension of six months
(Hagad vs. Gozo-Dadole, G.R. no. 108072, Dec. 12, 1995).
e. Suspended elective official when deemed reinstated
Upon expiration of the preventive suspension, the
respondent shall be deemed reinstated in office without
prejudice to the continuation of the proceedings against him,
which shall be terminated within 120 days from the time he
was formally notified of the case against him.
Any abuse of the exercise of the power of
preventive suspension shall be penalized as abuse of
authority.
f. Salary of respondent pending suspension (64, R.A.
7160)
The respondent official preventively suspended from
office shall receive no salary or compensation during such
suspension; but, upon subsequent exoneration and
reinstatement, he shall be paid full salary or compensation
including such emoluments accruing during such suspension.
g. Rights of respondent (65, R.A. 7160)
The respondent shall be accorded full opportunity to
appear and defend himself in person or by counsel, to
confront and cross-examine the witnesses against him, and to
require the attendance of witnesses and the production of
documentary evidence in his favor through compulsory
process of subpoena or subpoena duces tecum.
h. Form and notice of decision (66a, R.A. 7160)
The investigation of the case shall be terminated
within 90 days from the start thereof. Within 30 days after the
end of the investigation, the Office of the President or the
sanggunian concerned shall render a decision in writing
stating clearly an distinctly the facts and the reasons for such
decision. Copy of said decision shall immediately be
furnished the respondent and all interested parties.
i. Penalty

j. Administrative appeal- Decisions may, within 30

days from receipt thereof, be appealed to:
i.
The sangguniang panlalawigan, in the case of
decisions of component cities sangguniang panlungsod and
the sangguiniang bayan;
ii. The Office of the President, in the case of
decisions of the sangguniang panlalawigan and the
sangguniang panlungsod of highly urbanized cities and
independent component cities. Decisions of the Office of the
President shall be final and executory.
Case:
The Supreme Court ruled that certiorari will not lie
because there is still an adequate remedy available in the
ordinary course of law, i.e., appeal of the decision of the
Sangguniang Panlalawigan to the Office of the President
(Malinao vs. Reyes, 255 SCRA 616).
k. Execution pending appeal
An appeal shall not prevent a decision from being
executed; the respondent shall be considered as having been
placed under preventive suspension during the pendency of
the appeal. But in Berces vs. Executive Secretary, 241 SCRA
539, the Supreme Court pointed out that Administrative Order
No. 18 authorizes the Office of the President to stay the
execution of a decision pending appeal. A.O. No. 18 was not
repealed by the Local Government Code.
l. Presidential power to grant executive clemency
m. Effect of re-election
The re-election of a local official bars the continuation
of the administrative case against him.
C. Appointive Local Officials
1. Responsibility for human resources and
development- The local chief executive shall be responsible
for human resources and development in his unit and shall
take all personnel actions in accordance with the Constitution,
pertinent laws, including such policies, guidelines and
standards as the Civil Service Commission may establish;
Provided that the local chief executive may employ
emergency or casual employees or laborers paid on a daily
wage or piecework basis and hired through job orders for
local projects authorized by the sanggunian concerned,
without need of approval or attestation by the CSC as long as
the said employment shall not exceed 6 months.
Case:
But the Provincial Governor is without authority to
designate the petitioner as Assistant Provincial Treasurer for
Administration, because under 471 of the Local Government
Code, it is the Secretary of Finance who has the power to

17
appoint Assistant Provincial Treasurers from a list of
recommendees of the Provincial Governor (Dimaandal vs.
Commission on Audit, 291 SCRA 322).
2. Officials common to all Municipalities, Cities and
Provinces (469-490, R.A. 7160)
a. Secretary to the Sanggunian
b. Treasurer
c. Assessor
d. Accountant
e. Budget Officer
f. Planning and Development Coordinator
g. Engineer
h. Health Officer
i. Civil Registrar
j. Administrator
k. Legal Officer
l. Agriculturist
m. Social Welfare and Development Officer
n. Environment and Natural Resources
Officer
o. Architect
p. Information Officer
q. Cooperatives Officer
r. Population Officer
s. Veterinarian
t. General Services Officer

VII. LOCAL INITIATIVE AND REFERENDUM

A. Local Initiative
1. Defined- It is the legal process
whereby the registered voters of a
local government unit may directly
propose, enact or amend any
ordinance. It may be exercised by
all registered voters of the
provinces, cities, municipalities and
barangays
2.

Procedure:
a.

b.

NOTE:
In the barangay, the mandated appointive officials
are the Barangay Secretary and the Barangay Treasurer,
although other officials of the barangay may be appointed by
the punong barangay.
c.
3. Administrative discipline
Investigation and adjudication of
administrative complaints against appointive local officials
and employees as well as their suspension and removal shall
be in accordance with the civil service law and rules and other
pertinent laws.
a.

b.

Preventive suspension- The local chief

executive may preventively suspend for a
period not exceeding 60 days any
subordinate official or employee under
his authority pending investigation if the
charge against such official or employee
involves dishonesty, oppression or grave
misconduct or neglect in the performance
of duty, or if there is reason to believe
that the respondent is guilty of the
charges which would warrant his removal
from the service.
Disciplinary Action- Except as otherwise
provided by law, the local chief executive
may impose the penalty of removal from
service, demotion in rank, suspension for
not more than 1 year without pay, fine in
an amount not exceeding 6 months
salary or reprimand. If the penalty
imposed is suspension without pay for
not more than 30 days, his decision shall
be final; if the penalty imposed is heavier,
the decision shall be appealable to the
Civil Service Commission which shall
decide the appeal within 30 days from
receipt thereof.

d.

e.

f.

g.

Not less than 2,000 registered

voters in the region; 1,000
registered voters in case of
provinces and cities; 100 voters
in case of municipalities, and
50 in case of barangays, may
file a petition with the
sanggunian
concerned
proposing
the
adoption,
enactment,
repeal
or
amendment of an ordinance.
If no favorable action is taken
by the sanggunian concerned
within
30
days
from
presentation, the proponents,
through their duly authorized
and registered representatives,
may invoke their power of
initiative, giving notice thereof
to the sanggunian concerned.
The proposition shall be
numbered serially, starting from
Roman numeral I. Two or more
propositions may be submitted
in an initiative. The Comelec or
its designated representative
shall extend assistance in the
formulation of the proposition.
Proponents shall have 90 days
(in case of provinces and
cities), 60 days (in case of
municipalities) and 30 days (in
case of barangays) from notice
mentioned in (b) to collect the
required number of signatures.
The petition shall be signed
before the election registrar or
his designated representatives,
and in the presence of a
representative of the proponent
and a representative of the
sanggunian concerned in a
public place in the local
government unit.
Upon the lapse of the period,
the Comelec shall certify as to
whether or not the required
number of signatures has been
obtained. Failure to obtain the
required number of signatures
defeats the proposition.
If the required number is
obtained, the Comelec shall set
a date for the initiative during
which the proposition is
submitted to the registered
voters in the local government

18

h.

unit for their approval within 60

days (in case of provinces), 45
days (in case of municipalities),
and 30 days (in case of
barangays) from the date of
certification by the Comelec.
The initiative shall be held on
the date set after which the
results thereof shall be certified
and proclaimed by the
Comelec.
If the proposition is approved
by a majority of the votes cast,
it shall take effect 15 days after
the certification by the Comelec
as if affirmative action had been
taken
thereon
by
the
sanggunian and the local chief
executive concerned.

3. Limitations:
a. On local initiative:
i. The power of local initiative shall
not be exercised more than once a
year.
ii.
Initiative shall extend only to
subjects or matters which are within
the legal powers of the sanggunian
to enact.
iii. If at any time before the initiative
is held, the sanggunian concerned
adopts in toto the proposition
presented and the local chief
executive approves the same, the
initiative shall be cancelled.
However, those against such action
may, if they so desire, apply for
initiative in the manner herein
provided.
b. On the sanggunian: Any proposition
or ordinance approved through an
initiative and referendum shall not be
repealed, modified or amended by
the sanggunian within 6 months from
the date of approval thereof, and
may be amended, modified or
repealed within 3 years thereafter by
a vote of of all its members. In
case of barangays, the period shall
be 18 months after the approval
thereof.
B. Local referendum:
3. Defined- It is the legal process whereby
the registered voters of the local
government units may approve, amend or
reject any ordinance enacted by the
sanggunian.
4. The local referendum shall be held under
the control and direction of the Comelec
within 60 days (in case of provinces), 45
days (in case of municipalities) and 30
days (in case of barangays). The
Comelec shall certify and proclaim the
results of the said referendum.
C. Authority of Courts- Nothing in the foregoing shall
preclude the proper courts from declaring null and
void any proposition approved pursuant hereto for

violation of the Constitution or want of capacity of

the sanggunian concerned to enact said measure.
VIII. LOCAL GOVERNMENT UNITS
A. The Barangay
1. Chief Officials and Offices
a. There shall be in each barangay a
punong baranagy, seven (7) sangguniang
barangay members, the sangguniang
kabataan chairman, a barangay secretary
and a barangay treasurer. There shall
also be in every barangay a lupong
tagapamayapa.
The sangguniang
barangay may form community brigades
and create such other positions or offices
as may be deemed necessary to carry out
the purposes of the barangay
government.
b. For purposes of the Revised Penal Code,
the punong barangay, sangguniang
barangay members, and the members of
the lupong tagapamayapa in each
barangay shall be deemed as persons in
authority in their jurisdiction, while other
barangay officials and members who may
be designated by law or ordinance and
charged with the maintenance of public
order, protection and security of life and
property, or the maintenance of a
desirable and balanced environment, and
any barangay member who comes to the
aid of persons in authority, shall be
deemed as agents of persons in authority.
c. 389 (b)5), R.A. 7160, provides that the
punong barangay shall, upon approval by
a majority of all the members of the
Sangguniang Barangay, appoint or
replace the barangay treasurer, the
barangay secretary, and other appointive
local officials.
2. The Barangay Assembly
There shall be a barangay assembly
composed of all persons who are actual residents
of the barangay for at least 6 months, 15 years of
age or over, citizens of the Philippines, and duly
registered in the list of barangay assembly
members. It shall meet at least twice a year to hear
and discuss the semestral report of the
sangguniang barangay concerning its activities and
finances, as well as problems affecting the
barangay.
a.

Powers of the Barangay Assembly:

i.
Initiate legislative processes by
recommending to the sangguniang
barangay the adoption of measures for the
welfare of the barangay and the city or
municipality concerned;
ii. Decide on the adoption of initiative as a
legal process whereby the registered
voters of the barangay may directly
propose, enact or amend any ordinance;
and
iii. Hear and pass upon the semestral
report of the sangguniang barangay
concerning its activities and finances.

3. Katarungang Pambarangay

19
a.

Lupong Tagapamayapa
There is hereby created in each barangay
a lupong tagapamayapa, composed of the punong
barangay as chairman and 10 to 20 members. The
Lupon shall be constituted every 3 years.
b. Powers of the Lupon:
i.
Exercise administrative supervision
over the conciliation panels;
ii. Meet regularly once a month to provide
a forum for exchange of ideas among its
members and the public of matters
relevant to the amicable settlement of
disputes, and to enable various
conciliation panel members to share with
one another their observations and
experiences in effecting speedy resolution
of disputes; and
iii. Exercise such other powers and
perform such other duties and functions as
may be prescribed by law or ordinance.
c. Pangkat ng Tagapagkasundo
There shall be constituted for each dispute
brought before the lupon a conciliation
panel to be known as the pangkat ng
tagapagkasundo, consisting of 3 members
who shall be chosen by the parties to the
dispute from the list of members of the
lupon. Should the parties fail to agree on
the pangkat membership, the same shall
be determined by lots drawn by the lupon
chairman.
d. Subject matter of amicable settlement:
The Lupon of each barangay shall have
authority to bring together the parties
actually residing in the same city or
municipality for amicable settlement of all
disputes except;
i. Where one party is the government or
any subdivision or instrumentality thereof;
ii. Where one party is a public officer or
employee, and the dispute relates to the
performance of his official functions;
iii. Offenses punishable by imprisonment
exceeding one (1) year or a fine of
P5,000.00.
iv. Offenses where there is no private
offended party;
v. Where the dispute involves real
properties located in different cities or
municipalities unless the parties thereto
agree to submit their differences to
amicable settlement by an appropriate
lupon;
vi. Disputes involving parties who actually
reside in barangays of different cities or
municipalities, except where such
barangay units adjoin each other and the
parties thereto agree to submit their
differences to amicable settlement by an
appropriate lupon;
vii. Such other classes of disputes which
the President may determine in the
interest of justice or upon the
recommendation of the Secretary of
Justice.
4. Sangguniang Kabataan:
a. Creation; composition: There shall be in
every barangay a sangguniang kabataan to be
composed of a chairman, seven members, a

secretary and a treasurer. An official who, during

his term of office, shall have passed the age of 21
shall be allowed to serve the remaining portion of
the term for which he was elected.
b. Katipunan ng Kabataan: Shall be compsed of
all citizens of the Philippines actually residing in the
barangay for at least 6 months, who are 15 but not
more than 21 years of age, who are duly registered
in the list of the sangguniang kabataan or in the
official list in the custody of the barangay secretary.
It shall meet once every 3 months, or at the call of
the sanggunian kabataan chairman, or upon written
petition of at least 1/20 of its members.
c. Pederasyon ng mga sangguniang kabataan:
There shall be an organization of all the pederasyon
ng mga sangguniang kabataan:
i. In municipalities, the pambayang
pederasyon;
ii. In cities, panlungsod na pederasyon;
iii.
In
provinces,
panlalawigang
pederasyon;
iv. In special metropolitan political
subdivisions, pangmetropolitang pederasyon;
v. On the national level, pambansang
pederasyon.
B.
C.
D.
E.

The Municipality
The City
The Province
Leagues of Local Government Units/Officials:
1. Liga ng mga Barangay- Organization of all barangays
for the primary purpose of determining the representation of
the Liga in the sanggunians, and for ventilating, articulating
and crystallizing issues affecting barangay government
administration and securing, through proper and legal means,
solutions thereto.
Case:
Where the Supreme Court held that Sec. 493, R.A.
7160, which empowers the Liga to create such other
positions as may be deemed necessary, is valid, and does
not constitute an irregular delegation of power (Viola vs.
Alunan, G.R. No. 115844, August 15, 1997)
2. League of Municipalities- Organized for the primary
purpose of ventilating, articulating and crystallizing issues
affecting municipal governments administration, and securing,
through proper and legal means, solutions thereto.