Public Corporations | LAW ON LOCAL GOVERNMENTS

LAW ON LOCAL GOVERNMENTS

Topic: Public Corporations

Public corporations refer to entities created by law as agencies of the State to perform certain functions and to govern particular areas within the State. In the context of Philippine local government law, public corporations include local government units (LGUs) such as provinces, cities, municipalities, and barangays. These public corporations are established under the 1987 Constitution and the Local Government Code of 1991 (Republic Act No. 7160), and they have a special legal standing in relation to both the national government and their constituents.

I. Nature of Local Government Units (LGUs) as Public Corporations

LGUs are categorized as political subdivisions of the State, endowed with the following characteristics:

1. Corporation by Law: Local governments are corporate bodies created by law, endowed with legal personality separate from the State. They can sue and be sued, enter into contracts, acquire and dispose of properties, and perform activities within the powers delegated to them.
2. Dual Nature: LGUs have a dual nature: as governmental agencies tasked with public administration and as corporate entities with proprietary powers. Their governmental functions pertain to the administration of laws and the promotion of general welfare, while proprietary functions are similar to those of private corporations (e.g., engaging in business or commerce).
3. Autonomy: LGUs enjoy local autonomy as provided by the Constitution and the Local Government Code. This autonomy refers to the capacity to govern their own affairs, especially with respect to administrative functions and fiscal autonomy. However, this is subject to the oversight of the national government.

II. Basis for the Creation and Existence of LGUs

The creation, powers, and functions of LGUs are provided by:

1. 1987 Philippine Constitution: It mandates the existence of autonomous territorial and political subdivisions (Article X). It guarantees the establishment of LGUs and provides the framework for decentralization, local autonomy, and the relationship between the national and local governments.
2. Local Government Code of 1991 (RA 7160): This law operationalizes the constitutional mandate on local autonomy, providing for the structure, powers, and responsibilities of LGUs.

A. Constitutional Basis

1. Article X, Section 1: The Constitution explicitly states that territorial and political subdivisions of the Philippines are the provinces, cities, municipalities, and barangays. Each is provided with autonomy to govern its affairs.
2. Section 2: It ensures the territorial and political subdivisions shall enjoy local autonomy.
3. Section 3: The creation, division, merger, abolition, or substantial alteration of LGU boundaries shall be determined by law, subject to approval by a majority of the votes cast in a plebiscite.
4. Section 4: The President exercises general supervision over LGUs to ensure that their acts are within the law. However, the President does not have direct control over LGUs, respecting their autonomy.

B. Local Government Code of 1991 (RA 7160)

1. Section 15: It provides that every LGU is a body corporate, enjoying both government powers and corporate powers.
2. Section 16: Known as the General Welfare Clause, it allows LGUs to promote health, safety, and the well-being of their inhabitants, giving them broad discretion to create policies and ordinances that are deemed beneficial to the public.
3. Section 17: Outlines the basic services and facilities that LGUs are required to provide to their constituents, ranging from health and education to environmental services and infrastructure.

III. Powers of Local Government Units

The Local Government Code grants LGUs a wide range of powers, which are grouped into several key categories:

A. General Powers

1. Corporate Powers: As a public corporation, each LGU has the power to:
   • Acquire and dispose of real or personal property.
   • Enter into contracts in line with their governmental and proprietary functions.
   • Sue and be sued.
2. Police Power: LGUs are granted limited police power to enact ordinances to promote general welfare, protect public health, safety, morals, and ensure the economic and social well-being of its people.
3. Power of Eminent Domain: LGUs may expropriate private property for public use, with just compensation, provided that the taking is for a legitimate purpose.
4. Power of Taxation: LGUs have the authority to levy taxes, fees, and charges, subject to the limitations provided in the Local Government Code and other special laws. This power is essential for the fiscal autonomy of LGUs.

B. Specific Powers

1. Legislative Power: LGUs have legislative bodies (Sangguniang Panlalawigan, Sangguniang Panlungsod, Sangguniang Bayan, and Sangguniang Barangay) that enact ordinances, pass resolutions, and appropriate funds for the local government.
2. Executive Power: The Local Chief Executive (Governor, Mayor, Barangay Chairman) has the duty to execute laws and ordinances passed by the legislative body. They are responsible for local governance and administration.
3. Judicial Power: LGUs, through local courts (e.g., barangay justice system), have a limited quasi-judicial role, primarily in the amicable settlement of disputes under the Katarungang Pambarangay Law.

IV. Public Corporations and the Doctrine of Local Autonomy

The doctrine of local autonomy is central to the role of LGUs as public corporations. The principle of autonomy ensures that LGUs can manage their local affairs without undue interference from the national government. However, this autonomy is not absolute, as the national government still exercises general supervision over LGUs to ensure that their acts conform to law.

General Supervision vs. Control

1. General Supervision: The national government, through the President and the Department of the Interior and Local Government (DILG), can only ensure that LGUs perform their duties as mandated by law. This means that the national government cannot interfere with the discretion of local officials in matters within their jurisdiction, except to ensure legality.
2. Control: The power of control would allow the national government to substitute its judgment for that of the LGUs. However, the Constitution limits the national government to supervision, not control.

V. Types of LGUs and Their Powers as Public Corporations

A. Provinces

• The largest political unit in the country.
• Governed by a governor and the Sangguniang Panlalawigan.
• Powers include the creation of provincial development plans, collection of real property taxes, and oversight of municipalities and component cities.

B. Cities

• Classified into Highly Urbanized Cities, Independent Component Cities, and Component Cities.
• Governed by a mayor and the Sangguniang Panlungsod.
• Cities have more extensive powers, especially in taxation, due to their larger population and greater economic activity.

C. Municipalities

• Political units smaller than cities and provinces but larger than barangays.
• Governed by a mayor and the Sangguniang Bayan.
• Municipalities are responsible for delivering basic services and coordinating development efforts in the rural areas.

D. Barangays

• The smallest political unit.
• Governed by a Barangay Captain and the Sangguniang Barangay.
• Barangays handle the most basic services and facilities, including maintaining peace and order through the barangay justice system.

VI. Relationship with the National Government

1. Intergovernmental Relations: The relationship between the national government and LGUs is based on the principles of decentralization and autonomy. While LGUs enjoy substantial powers, the national government provides oversight and sets national standards.
2. Decentralization: The transfer of powers, responsibilities, and resources from the national government to LGUs is a hallmark of the Local Government Code, which aims to empower local governments to become self-reliant and responsive to local needs.

VII. Conclusion

Public corporations, as embodied by LGUs, play a vital role in Philippine governance, promoting local autonomy while maintaining alignment with national laws and policies. The system of local government in the Philippines ensures that each political subdivision can address the needs and concerns of its constituents while contributing to national development.

LAW ON LOCAL GOVERNMENTS

LAW ON LOCAL GOVERNMENTS

Topic: Public Corporations

Public corporations refer to entities created by law as agencies of the State to perform certain functions and to govern particular areas within the State. In the context of Philippine local government law, public corporations include local government units (LGUs) such as provinces, cities, municipalities, and barangays. These public corporations are established under the 1987 Constitution and the Local Government Code of 1991 (Republic Act No. 7160), and they have a special legal standing in relation to both the national government and their constituents.

I. Nature of Local Government Units (LGUs) as Public Corporations

LGUs are categorized as political subdivisions of the State, endowed with the following characteristics:

1. Corporation by Law: Local governments are corporate bodies created by law, endowed with legal personality separate from the State. They can sue and be sued, enter into contracts, acquire and dispose of properties, and perform activities within the powers delegated to them.
2. Dual Nature: LGUs have a dual nature: as governmental agencies tasked with public administration and as corporate entities with proprietary powers. Their governmental functions pertain to the administration of laws and the promotion of general welfare, while proprietary functions are similar to those of private corporations (e.g., engaging in business or commerce).
3. Autonomy: LGUs enjoy local autonomy as provided by the Constitution and the Local Government Code. This autonomy refers to the capacity to govern their own affairs, especially with respect to administrative functions and fiscal autonomy. However, this is subject to the oversight of the national government.

II. Basis for the Creation and Existence of LGUs

The creation, powers, and functions of LGUs are provided by:

1. 1987 Philippine Constitution: It mandates the existence of autonomous territorial and political subdivisions (Article X). It guarantees the establishment of LGUs and provides the framework for decentralization, local autonomy, and the relationship between the national and local governments.
2. Local Government Code of 1991 (RA 7160): This law operationalizes the constitutional mandate on local autonomy, providing for the structure, powers, and responsibilities of LGUs.

A. Constitutional Basis

1. Article X, Section 1: The Constitution explicitly states that territorial and political subdivisions of the Philippines are the provinces, cities, municipalities, and barangays. Each is provided with autonomy to govern its affairs.
2. Section 2: It ensures the territorial and political subdivisions shall enjoy local autonomy.
3. Section 3: The creation, division, merger, abolition, or substantial alteration of LGU boundaries shall be determined by law, subject to approval by a majority of the votes cast in a plebiscite.
4. Section 4: The President exercises general supervision over LGUs to ensure that their acts are within the law. However, the President does not have direct control over LGUs, respecting their autonomy.

B. Local Government Code of 1991 (RA 7160)

1. Section 15: It provides that every LGU is a body corporate, enjoying both government powers and corporate powers.
2. Section 16: Known as the General Welfare Clause, it allows LGUs to promote health, safety, and the well-being of their inhabitants, giving them broad discretion to create policies and ordinances that are deemed beneficial to the public.
3. Section 17: Outlines the basic services and facilities that LGUs are required to provide to their constituents, ranging from health and education to environmental services and infrastructure.

III. Powers of Local Government Units

The Local Government Code grants LGUs a wide range of powers, which are grouped into several key categories:

A. General Powers

1. Corporate Powers: As a public corporation, each LGU has the power to:
   • Acquire and dispose of real or personal property.
   • Enter into contracts in line with their governmental and proprietary functions.
   • Sue and be sued.
2. Police Power: LGUs are granted limited police power to enact ordinances to promote general welfare, protect public health, safety, morals, and ensure the economic and social well-being of its people.
3. Power of Eminent Domain: LGUs may expropriate private property for public use, with just compensation, provided that the taking is for a legitimate purpose.
4. Power of Taxation: LGUs have the authority to levy taxes, fees, and charges, subject to the limitations provided in the Local Government Code and other special laws. This power is essential for the fiscal autonomy of LGUs.

B. Specific Powers

1. Legislative Power: LGUs have legislative bodies (Sangguniang Panlalawigan, Sangguniang Panlungsod, Sangguniang Bayan, and Sangguniang Barangay) that enact ordinances, pass resolutions, and appropriate funds for the local government.
2. Executive Power: The Local Chief Executive (Governor, Mayor, Barangay Chairman) has the duty to execute laws and ordinances passed by the legislative body. They are responsible for local governance and administration.
3. Judicial Power: LGUs, through local courts (e.g., barangay justice system), have a limited quasi-judicial role, primarily in the amicable settlement of disputes under the Katarungang Pambarangay Law.

IV. Public Corporations and the Doctrine of Local Autonomy

The doctrine of local autonomy is central to the role of LGUs as public corporations. The principle of autonomy ensures that LGUs can manage their local affairs without undue interference from the national government. However, this autonomy is not absolute, as the national government still exercises general supervision over LGUs to ensure that their acts conform to law.

General Supervision vs. Control

1. General Supervision: The national government, through the President and the Department of the Interior and Local Government (DILG), can only ensure that LGUs perform their duties as mandated by law. This means that the national government cannot interfere with the discretion of local officials in matters within their jurisdiction, except to ensure legality.
2. Control: The power of control would allow the national government to substitute its judgment for that of the LGUs. However, the Constitution limits the national government to supervision, not control.

V. Types of LGUs and Their Powers as Public Corporations

A. Provinces

• The largest political unit in the country.
• Governed by a governor and the Sangguniang Panlalawigan.
• Powers include the creation of provincial development plans, collection of real property taxes, and oversight of municipalities and component cities.

B. Cities

• Classified into Highly Urbanized Cities, Independent Component Cities, and Component Cities.
• Governed by a mayor and the Sangguniang Panlungsod.
• Cities have more extensive powers, especially in taxation, due to their larger population and greater economic activity.

C. Municipalities

• Political units smaller than cities and provinces but larger than barangays.
• Governed by a mayor and the Sangguniang Bayan.
• Municipalities are responsible for delivering basic services and coordinating development efforts in the rural areas.

D. Barangays

• The smallest political unit.
• Governed by a Barangay Captain and the Sangguniang Barangay.
• Barangays handle the most basic services and facilities, including maintaining peace and order through the barangay justice system.

VI. Relationship with the National Government

1. Intergovernmental Relations: The relationship between the national government and LGUs is based on the principles of decentralization and autonomy. While LGUs enjoy substantial powers, the national government provides oversight and sets national standards.
2. Decentralization: The transfer of powers, responsibilities, and resources from the national government to LGUs is a hallmark of the Local Government Code, which aims to empower local governments to become self-reliant and responsive to local needs.

VII. Conclusion

Public corporations, as embodied by LGUs, play a vital role in Philippine governance, promoting local autonomy while maintaining alignment with national laws and policies. The system of local government in the Philippines ensures that each political subdivision can address the needs and concerns of its constituents while contributing to national development.

Classifications | Public Corporations | LAW ON LOCAL GOVERNMENTS

Topic: Classifications of Public Corporations under Political Law and Public International Law

I. Introduction to Public Corporations

Public corporations are legal entities created by law, vested with certain public powers to manage local affairs and administer governmental functions. These entities operate for public purposes and benefit, differing from private corporations that pursue commercial objectives. The most common form of public corporation in the Philippines is the local government unit (LGU).

The Philippine Constitution, the Local Government Code of 1991 (Republic Act No. 7160), and various special laws govern the formation, classification, powers, and functions of public corporations. Understanding the classifications of public corporations is crucial in political law and public international law, as these classifications determine the extent of powers, fiscal autonomy, and responsibilities of such entities.

II. Classifications of Public Corporations

Public corporations in the Philippines are primarily classified based on their nature and functions, as well as the scope of authority they exercise. The following are the classifications:

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A. Local Government Units (LGUs)

Local Government Units (LGUs) are political subdivisions of the state that are autonomous to a certain extent, granted certain rights and powers under the Constitution and the Local Government Code. LGUs in the Philippines are classified into different levels, with each level having varying degrees of political, fiscal, and administrative autonomy.

1. Provinces

   • Definition: A province is the largest political unit in the country and is comprised of component cities and municipalities. It acts as an intermediate level between the national government and the municipal or city government.
   • Powers and Functions: Provinces exercise both executive and legislative functions. The executive power is vested in the Provincial Governor, while the legislative power is vested in the Sangguniang Panlalawigan (Provincial Board).
   • Examples: Cebu, Laguna, Bulacan.

2. Cities

   • Definition: A city is a political unit that is often more autonomous than a municipality, with a larger population and more economic activity. Cities are classified into highly urbanized cities (HUCs), independent component cities (ICCs), and component cities (CCs).
     • Highly Urbanized Cities (HUCs): Cities with a population of at least 200,000 inhabitants and an annual income of at least PHP 50 million. These cities are independent of the province and do not vote for provincial officials.
     • Independent Component Cities (ICCs): Cities that are not under the administrative supervision of the province but are not HUCs. ICCs are independent in terms of their operations.
     • Component Cities (CCs): Cities that are part of the province and subject to provincial supervision.
   • Powers and Functions: Cities are empowered with more autonomy than municipalities, with extensive fiscal powers and broader jurisdiction over services.
   • Examples: Quezon City (HUC), Iloilo City (ICC), Baguio City (CC).

3. Municipalities

   • Definition: A municipality is a political unit that is generally smaller in size and scope compared to cities. It serves as the local government entity for more rural or less densely populated areas.
   • Powers and Functions: Municipalities are governed by a Mayor (executive) and the Sangguniang Bayan (legislative). They are responsible for delivering basic services to their constituents.
   • Examples: Pagsanjan, Taal, Kalibo.

4. Barangays

   • Definition: The barangay is the smallest political unit in the Philippines, functioning as a grassroots government unit.
   • Powers and Functions: Barangays are responsible for delivering basic local services, including public safety, sanitation, and community-level dispute resolution through the Lupong Tagapamayapa. The barangay is headed by a Punong Barangay (Barangay Captain), with the Sangguniang Barangay as its legislative body.
   • Examples: Barangay San Antonio (Makati City), Barangay Poblacion (Mandaluyong).

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B. Special Metropolitan Political Subdivisions

1. Metropolitan Manila Development Authority (MMDA)

   • Definition: The MMDA is a special public corporation created by Republic Act No. 7924, tasked with the management of Metro Manila, an area comprised of multiple highly urbanized cities and municipalities.
   • Nature: It is not an LGU but a government agency with both administrative and regulatory functions over Metro Manila.
   • Powers and Functions: The MMDA handles urban planning, transportation management, waste management, flood control, and other regional concerns across the National Capital Region (NCR).
   • Example: Metro Manila.

2. Autonomous Regions

   • Definition: Autonomous regions are political subdivisions that have been granted administrative and fiscal autonomy due to historical, cultural, and geographical considerations. Currently, the only autonomous region in the Philippines is the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).
   • Legal Basis: Autonomous regions are established under the Constitution, and the details of their powers and functions are specified in organic laws (Republic Act No. 11054 for BARMM).
   • Powers and Functions: Autonomous regions have legislative power through their regional assemblies and executive power through a regional governor. They enjoy broader fiscal autonomy than other LGUs, with control over natural resources, taxation, and revenue-sharing schemes.
   • Example: Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).

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C. Quasi-Public Corporations

Quasi-public corporations are entities that perform certain public functions, but they are either privately controlled or semi-governmental. These corporations may not be directly classified as LGUs but are still involved in the management of public services or public infrastructure.

1. Government-Owned and Controlled Corporations (GOCCs)
   • Definition: GOCCs are entities created by law, owned by the government, and organized to conduct both commercial and public service functions.
   • Powers and Functions: GOCCs have varying degrees of autonomy and operate with a certain degree of financial independence. They are subject to rules on transparency, accountability, and governance provided in the GOCC Governance Act of 2011 (Republic Act No. 10149).
   • Examples: Philippine National Oil Company (PNOC), Philippine Amusement and Gaming Corporation (PAGCOR), Land Bank of the Philippines (LBP).

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D. Other Special Districts and Authorities

1. Local Special Bodies

   • These are bodies created within LGUs for special purposes, such as the Local School Board, Local Health Board, and Local Development Council. They function to assist in specific aspects of local governance and are composed of both government officials and private sector representatives.

2. Economic Zones and Development Authorities

   • Special economic zones are created under Republic Act No. 7916 (Special Economic Zone Act) to attract investment and provide employment in specific areas. These zones are governed by development authorities or corporations, such as the Subic Bay Metropolitan Authority (SBMA) or the Philippine Economic Zone Authority (PEZA), which regulate business operations within these zones.

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III. Conclusion

Public corporations in the Philippines are categorized into various classifications, each designed to serve distinct governmental functions or specific territorial jurisdictions. From local government units to special metropolitan authorities, autonomous regions, and quasi-public corporations, these entities play a critical role in decentralized governance, public service delivery, and regional development. Each classification of public corporations possesses varying degrees of political, fiscal, and administrative autonomy, as specified by law, contributing to the overall structure of governance in the Philippines.

Municipal Corporations | Classifications | Public Corporations | LAW ON LOCAL GOVERNMENTS

LAW ON LOCAL GOVERNMENTS

Public Corporations > Classifications > Municipal Corporations

I. Definition and Nature of Municipal Corporations

A municipal corporation is a body politic and corporate, created under national law, for the purpose of governing a local area, usually defined by territorial boundaries. It is primarily tasked with administering local governance within its jurisdiction. Municipal corporations are a subset of public corporations, specifically organized to manage local public affairs and provide services such as public safety, infrastructure maintenance, and community development.

They possess dual characteristics:

1. Governmental or Public Functions: Exercising sovereign functions, such as implementing laws and ensuring peace and order.
2. Corporate or Private Functions: Engaging in activities for the economic or commercial benefit of the local community, such as operating public utilities.

Municipal corporations in the Philippines are created through legislative enactments or by the Constitution itself, and they exist to enable the decentralization of powers from the national government to local government units (LGUs).

II. Constitutional and Legal Basis

The creation, organization, powers, and functions of municipal corporations are primarily governed by:

1. 1987 Philippine Constitution: Article X provides for the creation, structure, and autonomy of local government units.
2. Republic Act No. 7160 (Local Government Code of 1991): The Local Government Code (LGC) is the fundamental statute that organizes and regulates the structure and powers of local government units, including municipal corporations.
3. Jurisprudence: Various decisions of the Supreme Court help clarify the application of laws governing municipal corporations.

III. Classifications of Municipal Corporations

Municipal corporations can be classified into several types according to their powers, jurisdiction, and other criteria.

A. Types of Municipal Corporations in the Philippines

The Local Government Code defines several types of LGUs as municipal corporations, including:

1. Provinces: These are composed of component cities and municipalities. The province is headed by a governor and serves as an intermediary between national government and municipalities/cities.

2. Cities: There are two types of cities:

   • Highly Urbanized Cities (HUCs): Cities with a minimum population of 200,000 and an annual income of at least P50 million. They are independent of the province in which they are geographically located.
   • Component Cities: These cities are part of a province unless they have been explicitly declared independent. Component cities share revenue and administrative links with the province.

3. Municipalities: These are local government units typically found within provinces and governed by a mayor. They are autonomous in performing certain administrative functions but are under the general supervision of the province.

4. Barangays: The smallest political unit, often described as the grassroots level of governance. Every municipality and city is composed of barangays.

B. Nature of Powers

Municipal corporations possess three primary powers under the Local Government Code:

1. Police Power: This refers to the authority of the municipal corporation to enact and enforce local ordinances and regulations to protect public health, safety, morals, and general welfare. For instance, they may impose curfews, regulate businesses, or implement zoning laws.

2. Power of Eminent Domain: This is the power to appropriate private property for public use, with just compensation. Municipal corporations can use this power to acquire land for public purposes like roads, schools, or public utilities.

3. Taxation Power: The power to impose and collect local taxes, fees, and charges necessary to generate revenue for the delivery of local services. Municipalities and cities can impose taxes such as real property taxes, business taxes, and fees for permits and licenses.

C. Autonomy and Supervision

Local autonomy is the foundation of the powers and operations of municipal corporations. The 1987 Constitution guarantees local autonomy to ensure that LGUs can govern their affairs independently, without undue interference from the national government. However, local autonomy is not absolute. The President exercises general supervision over local governments to ensure that they perform their functions in accordance with the law.

IV. Corporate Functions and Liabilities

Municipal corporations perform both governmental (public) and proprietary (corporate) functions:

1. Governmental Functions: These are sovereign powers conferred upon them by law, such as enforcing laws, protecting public order, and maintaining infrastructure. Actions under this capacity enjoy immunity from lawsuits unless specifically waived by law.

2. Proprietary Functions: These involve activities conducted by municipal corporations in their capacity as a corporate entity, akin to private enterprises. Examples include operating markets, waterworks, or transportation systems. Municipal corporations may be held liable for contracts or torts arising from their proprietary functions.

V. Creation, Alteration, and Dissolution

1. Creation: Municipal corporations are created through laws passed by Congress, ordinances from the Sangguniang Panlalawigan (provincial board), or via a plebiscite approved by a majority of the voting population in the affected area. The Local Government Code sets out the requirements for creating new LGUs, including population size, income level, and land area.

2. Alteration of Boundaries: The alteration of boundaries or the conversion of a municipality into a city requires a legislative act, often accompanied by a plebiscite where the affected constituents vote on the proposed change.

3. Dissolution: Municipal corporations can be dissolved if they fail to meet statutory requirements or upon the declaration of the national government through an act of Congress. Dissolution results in the termination of the legal existence of the municipal corporation, and its powers and assets revert to the national government or the relevant provincial or city government.

VI. Key Doctrines and Jurisprudence

The Supreme Court has clarified several key issues regarding municipal corporations, including:

1. Doctrine of Qualified Political Agency: Local officials are representatives of the State, and their acts are the acts of the State itself, but only within the limits of their powers.

2. Doctrine of Local Autonomy: Local governments must have sufficient latitude in deciding on local matters without undue interference from the national government. However, national laws remain supreme over local ordinances.

3. Vicarious Liability: Municipal corporations are liable for the acts of their employees only when acting within their proprietary capacity. They are generally immune from liability for governmental functions unless a law provides otherwise.

4. Power to Sue and Be Sued: As legal persons, municipal corporations may enter into contracts and sue or be sued in their corporate name, especially in relation to their proprietary functions.

VII. Conclusion

Municipal corporations play a crucial role in decentralizing the functions of the national government to promote local development and self-governance. Governed by the 1987 Constitution, the Local Government Code, and judicial pronouncements, these entities ensure that local areas are governed efficiently, addressing the needs and interests of their constituents while remaining subject to the laws of the Republic of the Philippines. The balance between local autonomy and national supervision is vital in maintaining the integrity of the political and legal structure of the country.

LGUs | LAW ON LOCAL GOVERNMENTS

Political Law and Public International Law

XV. Law on Local Governments

D. Local Government Units (LGUs)

Local Government Units (LGUs) in the Philippines are constitutionally established political subdivisions vested with governmental powers to manage their local affairs. The framework for their creation, organization, powers, and responsibilities is provided primarily by the 1987 Constitution and the Local Government Code of 1991 (Republic Act No. 7160).

1. Constitutional Basis

The 1987 Philippine Constitution recognizes the existence of autonomous local governments and grants LGUs the power to govern their respective localities with significant autonomy. Article X of the Constitution outlines the principles of local autonomy, decentralization, and the right of LGUs to create their own sources of revenue and to have a just share in the national taxes.

Relevant Constitutional provisions include:

• Article X, Section 1: The territorial and political subdivisions of the Philippines are the provinces, cities, municipalities, and barangays. There shall be autonomous regions in Muslim Mindanao and the Cordilleras as provided in this Constitution.
• Article X, Section 2: Local autonomy is recognized and ensured.
• Article X, Section 3: The Congress shall enact a Local Government Code providing for a more responsive and accountable local government structure.

2. Classification of LGUs

Local Government Units are classified into four main levels:

• Provinces
• Cities
• Municipalities
• Barangays

Additionally, Autonomous Regions (e.g., Bangsamoro Autonomous Region in Muslim Mindanao) have special laws and arrangements.

Each LGU has its own local government officials, revenue sources, and governing powers.

3. Creation, Division, Merger, and Abolition of LGUs

• Creation: LGUs are created by law or by an ordinance passed by the local legislative body. However, for the creation of provinces, cities, municipalities, or barangays, the requirements set forth under Section 7 of the Local Government Code must be complied with. This includes:

  • Income requirement
  • Population requirement
  • Land area requirement

• Division and Merger: LGUs can be divided or merged with another LGU subject to certain conditions under the Local Government Code and with the approval of the people in the affected areas through a plebiscite.

• Abolition: An LGU can only be abolished by law or ordinance and must likewise be subject to a plebiscite.

4. Autonomous Regions

• Article X, Sections 15-21 of the Constitution provide for the establishment of autonomous regions.
• The Bangsamoro Organic Law (RA 11054) governs the establishment of the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM), which replaced the former Autonomous Region in Muslim Mindanao (ARMM). The BARMM has its own parliament, more fiscal autonomy, and broader governance powers than regular LGUs.

5. Powers and Functions of LGUs

The Local Government Code grants LGUs decentralized powers, emphasizing their authority to make decisions regarding local affairs. These powers include:

1. Police Power: LGUs are granted the authority to enforce laws and ordinances to promote public welfare, public safety, and public morals within their jurisdictions.

2. Taxation Power: LGUs can levy taxes, fees, and charges as outlined in the Local Government Code. They are empowered to create their own sources of revenue, collect taxes, and receive a share of national taxes. This includes the authority to levy real property taxes, business taxes, community taxes, and other local taxes.

3. Eminent Domain: LGUs have the power to exercise eminent domain for public use, subject to the payment of just compensation.

4. Corporate Powers: LGUs can enter into contracts, acquire properties, and sue or be sued. They have the power to engage in partnerships with private entities, including Public-Private Partnerships (PPPs), in accordance with the provisions of the law.

5. Legislative Powers: LGUs exercise legislative powers through their respective local legislative bodies (i.e., Sangguniang Panlalawigan, Sangguniang Panlungsod, and Sangguniang Bayan). These bodies pass ordinances and resolutions, subject to the general welfare clause, provided they are not inconsistent with national law.

6. Officials of LGUs

• Elective Officials: The main elective officials of LGUs include:

  • Provincial Level: Governor, Vice-Governor, and members of the Sangguniang Panlalawigan.
  • City and Municipal Level: Mayor, Vice-Mayor, and members of the Sangguniang Panlungsod (for cities) and Sangguniang Bayan (for municipalities).
  • Barangay Level: Barangay Captain and members of the Sangguniang Barangay.

• Appointive Officials: These include the local treasurer, assessor, budget officer, engineer, health officer, social welfare officer, and others necessary to carry out the functions of the LGU.

7. Fiscal Autonomy of LGUs

One of the hallmarks of local autonomy is fiscal independence. Under the Local Government Code, LGUs have the right to create their own sources of revenue and receive a just share from the national taxes in the form of Internal Revenue Allotment (IRA), which has been modified by the Mandanas-Garcia ruling of the Supreme Court.

• Internal Revenue Allotment (IRA): IRA is the share of LGUs from the national internal revenue taxes collected by the government. It is based on the following distribution formula:

  • 40% - Provincial government
  • 23% - City government
  • 34% - Municipal government
  • 20% - Barangay government

  The Supreme Court's Mandanas ruling (G.R. Nos. 199802 and 208488) significantly expanded the scope of the IRA to include all national taxes, not just internal revenue taxes, which has increased the funding for LGUs.

8. Supervision and Control

While LGUs enjoy local autonomy, they are still subject to supervision by the national government. This means that the national government can ensure that LGUs are operating within the scope of the law, but it cannot interfere with purely local matters. The President, through the Department of the Interior and Local Government (DILG), exercises general supervision over LGUs.

However, control is not vested in the national government, meaning that it cannot dictate the manner by which LGUs execute their powers, except in cases provided by law, such as administrative disciplinary actions or national policy requirements.

9. Local Legislation

Local legislative bodies are empowered to pass ordinances and resolutions on matters that directly affect the LGU. These laws must adhere to the Constitution, national laws, and public welfare.

Each legislative body corresponds to an LGU level:

• Sangguniang Panlalawigan (Provincial)
• Sangguniang Panlungsod (City)
• Sangguniang Bayan (Municipal)
• Sangguniang Barangay (Barangay)

10. Devolution of Services and Functions

A key component of the Local Government Code of 1991 is the devolution of certain powers and responsibilities from the national government to LGUs. This devolution includes areas such as:

• Health services
• Agriculture support services
• Environmental protection
• Infrastructure development
• Social welfare services

The principle of devolution is intended to bring services closer to the people by transferring the responsibility of delivering basic services from the national government to the LGUs.

11. Challenges and Issues Facing LGUs

Despite the legal framework designed to promote local autonomy, LGUs in the Philippines face several challenges:

• Fiscal Dependence: Many LGUs remain heavily dependent on IRA and other national government funds, with limited ability to generate their own revenue.
• Administrative Capacity: Some LGUs lack the technical expertise and administrative capacity to effectively govern and deliver public services.
• Corruption and Patronage Politics: Issues of graft, corruption, and patronage politics persist at the local level, affecting governance and service delivery.
• Urban vs. Rural Divide: There is often a significant disparity in resources and services between urban and rural LGUs.

12. Recent Developments

• Mandanas-Garcia Ruling: The Supreme Court ruling in Mandanas v. Ochoa expanded the scope of the revenue share of LGUs, significantly increasing their fiscal autonomy and resources starting in 2022.

• Public-Private Partnerships: Increasing reliance on PPPs for infrastructure and service delivery, especially in cities, has been encouraged as a means for LGUs to engage private sector participation in local development projects.

In conclusion, LGUs in the Philippines play a crucial role in decentralizing governance, ensuring local autonomy, and bringing government services closer to the people. Their powers and functions are grounded in the Constitution and fleshed out by the Local Government Code, which provides a comprehensive legal framework for their operations. However, they continue to face fiscal, administrative, and governance challenges.

Powers | LGUs | LAW ON LOCAL GOVERNMENTS

Powers of Local Government Units (LGUs)

Local Government Units (LGUs) in the Philippines derive their powers from Republic Act No. 7160, also known as the Local Government Code of 1991 (LGC), as well as from other special laws and the Constitution. The grant of powers to LGUs is grounded in the principle of decentralization, which aims to allow them to exercise greater autonomy and to foster development through local governance. Below is a comprehensive discussion of the various powers of LGUs under Philippine law.

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I. General Powers of Local Government Units

1. Corporate Powers
   LGUs, as corporations, are given certain corporate powers that allow them to operate as quasi-private entities in some respects. These powers include the following:

   a. To Have Continuous Succession
   LGUs have continuous succession in their corporate name. They can sue and be sued, enter into contracts, and own and manage properties.

   b. To Enter into Contracts
   LGUs may enter into various contracts necessary for their operations, including public-private partnerships, joint ventures, and other arrangements with private entities, provided these contracts are authorized by their respective legislative bodies (Sanggunians).

   c. To Acquire and Hold Property
   LGUs can acquire and hold real and personal property. They can also dispose of their assets, subject to the rules and limitations provided in the Local Government Code.

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II. Express Powers under the Local Government Code

1. Police Power LGUs possess police power, which allows them to enact ordinances necessary to promote public health, safety, morals, general welfare, and convenience. This includes the regulation of business, maintenance of public order, sanitation, and the abatement of nuisances.

   LGUs’ exercise of police power must meet the following criteria:

   • It must be within their territorial jurisdiction.
   • It should not contravene the Constitution, existing laws, or public policy.
   • It must be necessary for the promotion of the general welfare.

2. Power of Eminent Domain The power of eminent domain, or the right to expropriate private property for public use upon payment of just compensation, is expressly granted to LGUs. However, certain procedural and substantive requirements must be followed, such as:

   • The expropriation must be for a public purpose.
   • A prior valid ordinance must authorize the expropriation.
   • Payment of just compensation to the property owner must be made before taking possession.

   LGUs may only exercise eminent domain after the approval of an ordinance and should ensure that the property to be expropriated is within their territorial jurisdiction.

3. Power to Tax, Levy Fees, and Other Impositions (Taxing Power) LGUs have the authority to impose taxes, fees, and charges. This power is granted under Section 129 of the Local Government Code and allows LGUs to generate their own revenue sources to finance their operations and projects.

   LGUs can levy the following:

   • Real property taxes
   • Business taxes
   • Fees for services
   • Franchise taxes
   • Community taxes
   • Other local taxes authorized by the LGC or other laws

   However, LGUs must strictly comply with the procedural requirements for the imposition of taxes, including public hearings and the publication of tax ordinances.

4. Power to Reclassify Lands LGUs have the power to reclassify agricultural lands into residential, commercial, industrial, or other uses in accordance with their development plans and zoning ordinances. This power is crucial in facilitating local development and ensuring that land use is aligned with the needs of the community.

   Reclassification is limited by the following:

   • The land must not exceed a certain percentage of the total agricultural land of the LGU, as prescribed by the Department of Agrarian Reform.
   • The land must not be covered by the Comprehensive Agrarian Reform Program (CARP) unless authorized by law.

5. Power to Grant Franchises, Licenses, and Permits LGUs may grant franchises, licenses, and permits for the operation of public utilities, businesses, and other activities within their jurisdiction. These powers allow LGUs to regulate economic activities within their territories and ensure public safety and order.

   Examples include:

   • Granting of franchises for transportation routes within the LGU
   • Issuance of business permits and building permits
   • Licensing of establishments such as restaurants, bars, and other commercial entities

6. Power to Create and Dissolve Local Offices LGUs have the authority to create, divide, merge, or abolish offices or departments within their administrative structure, provided such actions comply with the Local Government Code and other pertinent laws. The LGUs’ legislative bodies have the power to create these positions through ordinances, subject to the availability of funds.

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III. Implied Powers of LGUs

While most of the powers of LGUs are explicitly granted by law, certain powers are implied as necessary for carrying out their mandated functions. These implied powers include:

• Power to Issue Orders and Implement Programs
  LGUs have implied authority to issue orders, circulars, and memoranda to implement their programs and projects, provided that these are consistent with national laws.

• Power to Protect the Environment
  LGUs are tasked with promoting the ecological balance and protecting the environment within their territorial jurisdictions, as part of their mandate to ensure the general welfare. This includes regulating the disposal of waste, the use of natural resources, and the establishment of industries that may harm the environment.

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IV. Limitations on the Powers of LGUs

The powers of LGUs are not absolute. They are subject to certain limitations:

1. Compliance with National Laws and Policies LGUs must exercise their powers in accordance with the Constitution, laws, and national policies. Their ordinances, resolutions, and executive orders must not contravene national statutes or regulations issued by higher authorities.

2. Territorial Jurisdiction LGUs can only exercise their powers within their respective territorial jurisdictions. Any action taken outside their geographical boundaries is ultra vires, or beyond their authority, unless expressly authorized by law.

3. Administrative Oversight The President of the Philippines, through the Department of the Interior and Local Government (DILG), exercises general supervision over LGUs to ensure that their actions are within the bounds of law. The President may suspend or remove local officials for abuse of authority, misconduct, or gross negligence in the performance of duty.

4. Expropriation for Public Use The power of eminent domain is subject to constitutional requirements, such as the taking must be for public use, and just compensation must be provided. Additionally, the courts may review the necessity of expropriation.

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V. Delegated Powers

LGUs are also vested with powers delegated to them by national agencies or Congress through special laws. Examples include:

• Power to Regulate the Utilization of Natural Resources Special laws, such as the Philippine Mining Act, allow LGUs to exercise regulatory functions over the exploration and development of natural resources within their jurisdiction.

• Implementation of National Programs
  Certain programs and projects, such as those under the Department of Health (DOH) or the Department of Education (DepEd), are devolved to LGUs, making them responsible for the implementation of these services.

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VI. Autonomy and the Doctrine of Local Fiscal Autonomy

One of the fundamental principles behind the decentralization of power is fiscal autonomy, which allows LGUs to generate and manage their own financial resources, giving them the freedom to allocate funds for local projects without excessive dependence on the national government. The fiscal autonomy of LGUs is enhanced by the following:

• Internal Revenue Allotment (IRA)
  Now known as the National Tax Allotment (NTA) under the Mandanas-Garcia ruling, it ensures a steady flow of financial resources to LGUs.
• Own-source Revenues
  LGUs are empowered to raise their own funds through local taxes, fees, and other impositions, as mentioned earlier.

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Conclusion

The powers of LGUs in the Philippines are broad and multi-faceted, encompassing corporate, police, taxation, eminent domain, and regulatory powers. These powers enable LGUs to effectively govern their jurisdictions, promote local development, and ensure the well-being of their constituents. However, these powers are subject to certain limitations, including compliance with national laws, territorial jurisdiction, and oversight by higher authorities. The overarching goal is to balance local autonomy with the need for national unity and policy coherence.

Requisites for Creation, Conversion, Division, Merger or Dissolution | Municipal Corporations | Classifications | Public Corporations | LAW ON LOCAL GOVERNMENTS

LAW ON LOCAL GOVERNMENTS > A. Public Corporations > 3. Classifications > b. Municipal Corporations > iii. Requisites for Creation, Conversion, Division, Merger or Dissolution

In Philippine law, the creation, conversion, division, merger, or dissolution of municipal corporations, such as provinces, cities, municipalities, and barangays, is governed primarily by the 1987 Constitution, the Local Government Code of 1991 (Republic Act No. 7160), and pertinent laws and jurisprudence. Below are the key requirements and legal considerations:

1. Creation of Local Government Units (LGUs)

The creation of a municipal corporation, such as a province, city, municipality, or barangay, requires the fulfillment of several substantive and procedural requisites.

a. Substantive Requisites

1. Income Requirement:

   • The creation of provinces, cities, and municipalities is contingent on the generation of a minimum annual income derived from local sources, as certified by the Department of Finance. This ensures the financial viability of the new LGU. The minimum income requirements are as follows:
     • Provinces: PHP 20 million
     • Cities: PHP 100 million
     • Municipalities: PHP 2.5 million
     • Barangays: No specific income requirement; however, it must be capable of supporting itself.

2. Population Requirement:

   • A minimum population threshold must be met as certified by the Philippine Statistics Authority (PSA). These thresholds are:
     • Provinces: Not less than 250,000 inhabitants
     • Cities: Not less than 150,000 inhabitants
     • Municipalities: Not less than 25,000 inhabitants
     • Barangays: Not less than 2,000 inhabitants (or 5,000 in Metro Manila and other highly urbanized cities)

3. Land Area Requirement:

   • The new LGU must have a minimum land area, unless it is composed of islands or is a metropolitan area. These are:
     • Provinces: At least 2,000 square kilometers
     • Cities: At least 100 square kilometers
     • Municipalities: At least 50 square kilometers
     • Barangays: No specific land area requirement.

4. Compliance with General Welfare:

   • The creation must be in accordance with the principles of general welfare. It must promote a more efficient and effective delivery of services and public administration.

b. Procedural Requisites

1. Petition or Initiative:

   • The creation of a new LGU can be initiated by an act of Congress or a local initiative by a majority of the local legislative body concerned, subject to the approval of the President, and must follow the necessary administrative processes.

2. Plebiscite Requirement:

   • No creation of a new province, city, municipality, or barangay shall take effect unless approved by a majority of the votes cast in a plebiscite. The plebiscite must be conducted by the Commission on Elections (COMELEC) within 120 days from the effectivity of the law or ordinance creating the new LGU. The plebiscite must be held in the affected area(s), which include not only the proposed new LGU but also the areas affected by the separation.

2. Conversion of Local Government Units

Conversion pertains to changing the status or classification of an LGU (e.g., from a municipality to a city).

a. Substantive Requisites

1. Compliance with Income, Population, and Land Area Requirements:
   • The LGU seeking conversion must meet the income, population, and land area requirements applicable to the higher category of LGU it seeks to become. For instance, for a municipality to be converted into a city, it must meet the income, population, and land area requirements for cities.

b. Procedural Requisites

1. Plebiscite:

   • Similar to the creation of new LGUs, no conversion shall take effect unless approved by a majority vote in a plebiscite conducted by the COMELEC within the political unit or units affected.

2. Congressional Action:

   • The conversion of an LGU requires an act of Congress (a law) for its conversion to be valid and effective.

3. Division of Local Government Units

An LGU can be divided into two or more LGUs, subject to specific legal requisites.

a. Substantive Requisites

1. Compliance with Income, Population, and Land Area Requirements:

   • Each of the resulting LGUs from the division must independently meet the income, population, and land area requirements under the Local Government Code.

2. General Welfare:

   • The division must serve the general welfare and promote the more efficient delivery of services.

b. Procedural Requisites

1. Plebiscite:

   • The division of an LGU must be approved by a majority of the votes cast in a plebiscite conducted in the political units affected.

2. Legislative or Executive Initiative:

   • The division can be initiated through a law passed by Congress or through a local legislative ordinance, subject to the approval of the President.

4. Merger of Local Government Units

LGUs can be merged into a single unit.

a. Substantive Requisites

1. Income, Population, and Land Area Requirements:

   • The merged LGU must meet the income, population, and land area requirements applicable to the merged entity’s classification.

2. General Welfare:

   • The merger must promote efficiency and effectiveness in governance and public service delivery.

b. Procedural Requisites

1. Plebiscite:

   • The merger must be ratified through a plebiscite conducted by the COMELEC within the affected political units.

2. Legislative or Executive Initiative:

   • A merger can be accomplished through an act of Congress or a local ordinance ratified by a plebiscite, subject to presidential approval.

5. Dissolution of Local Government Units

Dissolution occurs when an LGU ceases to exist due to annexation, incorporation into another LGU, or its inability to sustain itself.

a. Substantive Requisites

1. General Welfare and Public Interest:
   • The dissolution must be in the interest of public welfare and must be justified by reasons such as the LGU's inability to maintain itself financially or provide services effectively.

b. Procedural Requisites

1. Plebiscite:

   • Similar to the creation, division, and merger of LGUs, dissolution must be ratified by a majority vote in a plebiscite held in the LGU to be dissolved and the affected political units.

2. Act of Congress:

   • The dissolution of an LGU requires an act of Congress or a local ordinance subject to the approval of the President.

6. Jurisdictional Challenges and Limitations

a. Constitutional Limitations:

• The 1987 Constitution provides for certain restrictions, such as limiting the powers of local legislative bodies and Congress to reorganize political subdivisions without proper observance of the people’s right to vote on changes.

b. Judicial Review:

• Any legal dispute regarding the creation, conversion, division, merger, or dissolution of LGUs is subject to judicial review. Courts may nullify actions that fail to comply with constitutional or statutory requirements, particularly in cases where the plebiscite is not conducted or the substantive requirements (income, population, land area) are not met.

7. Relevant Jurisprudence

Several Supreme Court rulings interpret and clarify the application of these provisions:

• Comelec v. Nemenzo (G.R. No. 127325, September 25, 2000): This case emphasized the necessity of plebiscites in the creation of barangays.
• Pimentel v. Aguirre (G.R. No. 132988, July 19, 2000): This case dealt with the power of the President in altering or creating LGUs and underscored the role of Congress in legislative processes involving LGUs.

Conclusion

The creation, conversion, division, merger, or dissolution of local government units in the Philippines is a process that must follow strict legal and procedural guidelines laid out in the Local Government Code and the 1987 Constitution. The essential principles of financial viability, population, territorial integrity, and public welfare govern these processes. Furthermore, the participation of the affected constituents through a plebiscite ensures that changes to municipal corporations reflect the will of the people.

Nature and Functions | Municipal Corporations | Classifications | Public Corporations | LAW ON LOCAL GOVERNMENTS

Political Law and Public International Law: Municipal Corporations (Nature and Functions)

Overview

Municipal corporations are a specific type of public corporation in the Philippines, created to perform public or governmental functions within a defined local area. They are essential units of local government, vested with legal personality and the authority to manage their own affairs within the framework set by law.

The relevant provisions regarding the nature, functions, and powers of municipal corporations can be found in the 1987 Philippine Constitution, particularly in Article X (Local Government), and the Local Government Code of 1991 (Republic Act No. 7160), which provides the legal framework for the organization, powers, and functions of local government units (LGUs).

Nature of Municipal Corporations

Municipal corporations are public entities established for local self-government. They are created by law and endowed with powers necessary to carry out public and governmental functions in a particular locality. Their existence and powers derive from both constitutional provisions and statutory enactments, particularly the Local Government Code of 1991.

The nature of municipal corporations can be classified as follows:

1. Political and Corporate Nature: Municipal corporations are recognized as both political and corporate entities. This means that they function not only as agents of the national government for administrative purposes but also as corporate bodies with legal personality capable of contracting, suing, and being sued.

   • As political entities: They perform governmental functions, such as implementing national laws and regulations within their territorial jurisdiction, maintaining peace and order, and providing basic services to their constituents.
   • As corporate entities: They are empowered to enter into contracts, acquire and hold properties, and manage their own local affairs independently within the bounds of law.

2. Creature of the State: A municipal corporation is created by the legislature, and as such, its powers are derived directly from the sovereignty of the State. Their powers are not inherent but are delegated to them by law, primarily through the Local Government Code. Thus, the principle of local autonomy underpins the operation of these corporations, granting them powers to govern local matters without undue interference from the national government.

3. Legal Personality: Municipal corporations possess a distinct legal personality, separate from the individuals who compose them. This grants them the ability to:

   • Sue and be sued;
   • Own and manage property;
   • Contract obligations;
   • Enter into agreements with private entities or other local governments;
   • Exercise powers vested upon them by the Constitution and law.

4. Inviolability of Municipal Charters: The charter of a municipal corporation, once granted by the legislature, cannot be altered or revoked arbitrarily. However, it remains subject to legislative control, and any changes to the powers or organization of the corporation must be done in accordance with the law.

Functions of Municipal Corporations

Municipal corporations, as local government units, are empowered to carry out a variety of governmental and corporate functions to serve the public welfare. The distinction between these two types of functions is crucial:

1. Governmental Functions: These are functions performed by municipal corporations as agents of the state, for the general welfare of the public. They are primarily regulatory and administrative in nature and include:

   • Law enforcement: Ensuring peace and order within their jurisdictions by enforcing national laws and local ordinances.
   • Public safety: Providing basic public safety services, such as fire protection, disaster response, and emergency services.
   • Health services: Administering health services, including managing hospitals, clinics, and other healthcare facilities within their jurisdiction.
   • Public infrastructure and utilities: Managing and maintaining public infrastructure such as roads, bridges, water supply, and drainage systems.
   • Taxation and revenue generation: Imposing and collecting local taxes, fees, and charges, subject to the limits prescribed by law.

   Key Principle: Municipal corporations do not have inherent power to tax. Their power to levy taxes must be expressly granted by law, and they must follow strict statutory guidelines in doing so.

2. Corporate (Proprietary) Functions: Municipal corporations also engage in corporate or proprietary functions, which are activities that are not inherently governmental but are undertaken to benefit the community and raise local revenues. These include:

   • Public markets and slaughterhouses: Operating and maintaining public markets, slaughterhouses, and similar enterprises.
   • Public utilities: Managing local utilities like water and electricity services, as well as public transportation systems.
   • Commercial ventures: Engaging in activities or ventures that may generate income, such as leasing public property or running enterprises for local benefit.

   Key Principle: When performing proprietary functions, municipal corporations act more like private entities, and they can be held liable in civil cases involving contracts, torts, or property disputes in the same way that private corporations can.

Powers of Municipal Corporations

The powers of municipal corporations can be divided into three general categories:

1. Express Powers: These are powers explicitly granted to municipal corporations by law, especially under the Local Government Code. Examples include the power to legislate local ordinances, impose taxes, and regulate land use.

2. Implied Powers: These are powers not explicitly stated but are considered necessary for the municipal corporation to effectively exercise its express powers. For instance, if a municipal corporation is given the power to maintain public roads, it is implied that it has the power to hire personnel to carry out road maintenance.

3. Inherent Powers: These are powers that are naturally vested in municipal corporations by virtue of their existence. One key inherent power is the police power, which allows the municipality to enact ordinances and regulations for the protection of public health, safety, and welfare.

   Under the Local Government Code, specific powers include:

   • Police Power: Municipalities can enact ordinances to regulate behavior and ensure the general welfare of their residents. This power is broad but must meet three tests: (1) the ordinance must not violate the Constitution, (2) it must be reasonable, and (3) it must serve the public welfare.
   • Power of Eminent Domain: Municipalities can exercise the power of eminent domain, or the right to expropriate private property for public use, subject to the payment of just compensation.
   • Power of Taxation: Municipalities have the authority to levy taxes, fees, and charges on businesses, properties, and services within their jurisdiction, as provided by the Local Government Code.

Supervision and Control

Although municipal corporations are granted a degree of autonomy, they remain subject to the general supervision of the national government, specifically the Department of the Interior and Local Government (DILG). The national government does not exercise control, which means it cannot substitute its judgment for that of the local government unit; instead, it ensures that local laws and policies conform to national laws.

The principle of local autonomy, enshrined in the 1987 Constitution, grants local government units the right to govern their local affairs, but this is subject to limitations set by law, especially when matters of national interest are involved.

Conclusion

Municipal corporations in the Philippines play a critical role in local governance. Their nature as both political and corporate entities allows them to balance governmental and proprietary functions for the welfare of their constituents. Although they enjoy local autonomy, their powers remain delegated by the national government, and they must operate within the bounds of the Constitution and statutory laws. Understanding the nature, functions, and limitations of municipal corporations is essential to ensuring they serve their purpose effectively within the Philippine legal framework.

Elements | Municipal Corporations | Classifications | Public Corporations | LAW ON LOCAL GOVERNMENTS

POLITICAL LAW AND PUBLIC INTERNATIONAL LAW

LAW ON LOCAL GOVERNMENTS

A. Public Corporations

3. Classifications

b. Municipal Corporations

Municipal corporations are essential elements in the structure of local governance, being political subdivisions created by law for the efficient administration of local affairs. Under Philippine law, municipal corporations fall within the broader concept of public corporations, which can either be public corporations for government purposes (like provinces, cities, municipalities, and barangays) or private corporations for proprietary or business purposes. The focus of this discussion is on municipal corporations as public entities.

i. Elements of Municipal Corporations

Municipal corporations possess certain essential elements that define their nature, authority, and functions under Philippine law. These elements are as follows:

1. Creation by Law or Legislative Grant

The first and foremost element of a municipal corporation is that it must be created by law or through legislative action. Municipal corporations do not arise through the voluntary association of individuals, but rather, they are created by the national legislature through a law or statute. In the Philippines, this is usually done through a Republic Act passed by Congress or through ordinances created by the legislative branch.

• The Local Government Code of 1991 (Republic Act No. 7160) governs the creation, organization, and functions of local government units (LGUs) in the Philippines, including provinces, cities, municipalities, and barangays. This Code provides the legal basis for the existence and operation of municipal corporations.
• Congress has the authority to create, divide, merge, abolish, or substantially alter the boundaries of municipalities and other local government units. However, such legislative action must be subject to the criteria established under the Local Government Code, including factors such as population, income, and land area.

2. Corporate Existence

A municipal corporation possesses dual personalities—it acts as both:

• A public or governmental entity, performing political and governmental functions such as enforcing laws, maintaining peace and order, and providing basic services.
• A corporate entity, with its own legal personality separate from its constituents, possessing corporate powers to enter into contracts, own property, sue and be sued, and manage its assets and liabilities.

This dual nature is what distinguishes municipal corporations from purely private entities. The powers and functions exercised by the municipal corporation vary according to whether it is acting in a governmental or proprietary capacity.

3. Defined Territory

A municipal corporation must have a definite and identifiable territorial jurisdiction. The boundaries of a municipality or city are defined by law or legislative action and serve as the geographical limits within which the corporation exercises its powers and performs its functions.

• The determination of territorial boundaries is critical, as it determines the extent of the municipal corporation’s jurisdiction over its residents and the area where it can collect taxes, enforce regulations, and provide services.
• Any alteration to the territorial limits of a municipal corporation must follow the procedures outlined in the Local Government Code, including the holding of a plebiscite among the affected constituents.

4. Population or Community

A municipal corporation is created for the benefit of a community of people residing within a defined territory. The population must meet certain minimum requirements, as stipulated in the Local Government Code. Municipalities and cities must have a minimum number of residents to ensure that they are viable and can sustain their operations, services, and governance responsibilities.

• For instance, the Local Government Code sets a minimum population requirement for the creation of municipalities (at least 25,000 inhabitants for municipalities and 150,000 for cities). These population thresholds help ensure that the local government unit can operate effectively and have sufficient resources to provide essential services to its constituents.

5. Corporate Powers

Municipal corporations possess certain corporate powers necessary for them to function effectively. These powers are granted by law and may be classified into express, implied, and inherent powers:

• Express powers are those specifically granted by the Constitution, laws, or the charter of the municipal corporation. Examples include the power to levy taxes, create ordinances, enter into contracts, and acquire property.
• Implied powers are those that are reasonably necessary to carry out the express powers. For instance, the power to hire personnel is implied from the power to operate offices and provide services.
• Inherent powers refer to those powers that are inherent in municipal corporations, such as the power of eminent domain, police power, and the power to tax.

These powers must be exercised within the framework of the Constitution, national laws, and the charter creating the municipal corporation. Municipalities, being creatures of the State, cannot act outside of the powers granted to them by law (the doctrine of ultra vires applies).

6. Governmental and Proprietary Functions

Municipal corporations exercise governmental and proprietary functions:

• Governmental functions are those related to the exercise of sovereign power and include functions such as law enforcement, public safety, health services, education, and infrastructure development. These are typically considered public in nature and are not subject to taxation or legal liability in the same way private actions might be.

• Proprietary functions refer to activities that the municipal corporation undertakes in a business or commercial capacity, such as operating markets, water supply systems, or transportation services. When engaging in proprietary activities, a municipal corporation acts like a private entity and may be held liable for its commercial dealings.

7. Local Autonomy

Municipal corporations are granted a certain degree of local autonomy under the 1987 Philippine Constitution and the Local Government Code. Local autonomy refers to the ability of LGUs, including municipal corporations, to govern themselves and make decisions concerning their internal affairs without undue interference from the national government.

• The principle of decentralization is embodied in the Constitution, which encourages the devolution of powers to LGUs. This allows local governments to address local needs and concerns more effectively by giving them the authority to craft policies, pass ordinances, manage budgets, and deliver basic services such as health, education, and infrastructure.

• However, local autonomy is not absolute. Municipal corporations remain subject to the Constitution, national laws, and the supervisory authority of the national government, primarily through the Department of the Interior and Local Government (DILG). The President of the Philippines also exercises general supervision over LGUs to ensure that local officials perform their duties in accordance with the law.

Conclusion

Municipal corporations in the Philippines are public entities created by law with specific governmental and corporate powers. Their essential elements include creation by legislative grant, defined territorial boundaries, a resident population, a corporate personality, the ability to exercise both governmental and proprietary functions, and a certain degree of local autonomy. Their operation and functions are primarily governed by the Local Government Code of 1991, and their powers are subject to the Constitution and national laws. The creation and functioning of municipal corporations are designed to foster local governance and decentralization while ensuring that the State retains oversight and control for matters of national importance.

Ultra Vires Acts | Powers | LGUs | LAW ON LOCAL GOVERNMENTS

Ultra Vires Acts of Local Government Units (LGUs) – A Detailed Discussion

I. Introduction

In the context of Local Government Units (LGUs) in the Philippines, the doctrine of ultra vires acts pertains to actions taken by an LGU or its officials that exceed the scope of their authority. The Local Government Code of 1991 (Republic Act No. 7160) defines the general powers and limitations of LGUs. Acts beyond those expressly or impliedly granted by law are considered ultra vires, making them void or unenforceable.

This discussion will delve into the scope of LGU powers, the concept of ultra vires acts, the consequences of such acts, relevant jurisprudence, and exceptions or mitigating principles.

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II. Powers of LGUs

Under the Local Government Code, LGUs are granted specific powers and responsibilities. These powers are classified into the following:

1. Express Powers: Those explicitly provided by law (R.A. No. 7160) and the Constitution.
2. Implied Powers: Powers necessary or incidental to the effective exercise of express powers.
3. Delegated Powers: Powers that are devolved by national legislation to LGUs, such as the powers relating to taxation, enactment of ordinances, and control over local resources.

The inherent powers of LGUs include:

• Police Power: The ability to enact laws and ordinances that promote the welfare of the community.
• Power of Eminent Domain: The right to expropriate private property for public use, subject to due process and payment of just compensation.
• Power of Taxation: The authority to impose local taxes, fees, and charges.

However, these powers must be exercised within the confines of the law and must follow prescribed procedures. Actions outside these bounds are considered ultra vires.

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III. The Doctrine of Ultra Vires

The term ultra vires is a Latin phrase meaning “beyond the powers.” In the legal context, it refers to acts or decisions made beyond the legal authority of the entity or official performing them. For LGUs, an ultra vires act is an action that exceeds their statutory authority or violates limitations set by the Local Government Code or other relevant laws.

Key Legal Basis: Section 22(c) of the Local Government Code specifically provides that an LGU shall have “such other powers as are necessary, appropriate, or incidental to efficient and effective governance and those which are essential to the promotion of the general welfare.”

However, actions falling outside these parameters are not allowed.

Types of Ultra Vires Acts:

1. Substantive Ultra Vires: Acts that LGUs do not have the authority to undertake at all. For example, passing an ordinance regulating a matter exclusively within national legislation.

2. Procedural Ultra Vires: Acts that LGUs might have the authority to perform but are rendered ultra vires because they were done without following the proper procedures (e.g., failure to follow the required steps in passing an ordinance).

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IV. Consequences of Ultra Vires Acts

An ultra vires act by an LGU or its officials results in the following consequences:

1. Nullity of the Act: Ultra vires acts are void ab initio (from the beginning) and have no legal effect. This is a fundamental principle in administrative law.

2. Personal Liability of Officials: LGU officials who engage in ultra vires acts may be held personally liable, especially if the act was done with malice, bad faith, or gross negligence. The doctrine of qualified political immunity may not shield them if their actions are ultra vires.

3. Non-Ratifiability: Ultra vires acts cannot be ratified, even by the LGU itself, since the actions were beyond the scope of their legal authority to begin with.

4. Injunctions or Declaratory Relief: Affected parties can seek judicial remedies, such as injunctions or declaratory relief, to nullify ultra vires acts.

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V. Examples of Ultra Vires Acts

1. Imposition of Unauthorized Taxes: An LGU imposes a tax that is not authorized by the Local Government Code, such as a tax on national government instrumentalities like the Bureau of Customs. This would be an ultra vires exercise of the LGU’s taxation power.

2. Ordinances Inconsistent with National Law: LGUs passing ordinances that are inconsistent with or violate national laws are acting ultra vires. For instance, if an LGU enacts a traffic regulation that contradicts the Land Transportation and Traffic Code, such ordinance will be struck down.

3. Unlawful Use of Eminent Domain: LGUs are given the power to expropriate property, but doing so without following proper procedures (such as the requirement to negotiate with the property owner before filing for expropriation) renders the act ultra vires.

4. Overstepping Jurisdiction: If an LGU passes an ordinance or takes action that pertains to matters outside its territorial jurisdiction, such act is ultra vires. For example, a municipality cannot enact ordinances regulating businesses located outside its geographic boundaries.

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VI. Jurisprudence on Ultra Vires Acts

Several cases have defined the boundaries of ultra vires acts by LGUs:

1. Province of Cebu v. City of Cebu (G.R. No. 138043, 2001): The Supreme Court ruled that the city’s imposition of a franchise tax on the Province of Cebu’s water distribution system was ultra vires, as local governments cannot impose taxes on government instrumentalities.

2. Metropolitan Manila Development Authority (MMDA) v. Bel-Air Village Association (G.R. No. 135962, 2000): The Supreme Court held that the MMDA’s action of opening streets within a private subdivision without the necessary authority was an ultra vires act. While MMDA has certain supervisory powers, its actions must be within the parameters of the law.

3. Paje v. Casino (G.R. No. 207257, 2014): The Supreme Court invalidated a municipal ordinance that sought to regulate the issuance of mining permits, ruling that the authority to regulate mining operations was vested exclusively in the national government under the Mining Act of 1995.

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VII. Exceptions and Mitigating Principles

While ultra vires acts are generally void, there are instances where courts may not strictly apply the doctrine:

1. De Facto Officer Doctrine: This doctrine protects the public and third parties who rely on the actions of an officer or official who is later found to have acted without authority. It allows for the validity of certain acts taken in good faith by a de facto officer, despite the lack of authority.

2. Public Welfare Consideration: In some instances, courts may uphold acts that are ultra vires in nature if they were done for the benefit of the general welfare, provided there was no evident bad faith or malice.

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VIII. Conclusion

The doctrine of ultra vires serves as a necessary limitation on the powers of Local Government Units (LGUs) in the Philippines. While LGUs are given broad powers under the Local Government Code to govern and promote the general welfare, such powers are not without boundaries. Any act outside these boundaries—whether by overstepping the authority granted or failing to follow the proper procedures—is considered ultra vires, rendering the act void.

LGU officials must be mindful of the scope of their powers and ensure that their actions are in accordance with the law. Ultra vires acts can lead to the nullity of government actions, as well as personal liability for the officials involved, making it crucial for local governance to remain within the limits prescribed by law and jurisprudence.

Liability of LGUs | LGUs | LAW ON LOCAL GOVERNMENTS

Liability of Local Government Units (LGUs) in the Philippines

The liability of Local Government Units (LGUs) in the Philippines is primarily governed by the 1987 Constitution, the Local Government Code of 1991 (Republic Act No. 7160), and relevant jurisprudence. This liability may arise from acts or omissions in the exercise of governmental or proprietary functions, as well as from certain statutory obligations. The key areas that define LGU liability include civil liability, criminal liability, and administrative liability. Below is a meticulous and comprehensive overview of the legal framework surrounding LGU liability:

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1. Constitutional Framework

The 1987 Constitution of the Philippines recognizes the autonomy of LGUs under Article X, Section 2. However, this autonomy does not exempt them from liability for certain acts or omissions. The provisions of the Constitution aim to balance autonomy with accountability, especially in the performance of duties and delivery of public services.

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2. Local Government Code of 1991

a. Governmental vs. Proprietary Functions

The liability of LGUs hinges on whether the act or omission involves governmental or proprietary functions:

• Governmental functions refer to activities inherently vested in the state, such as public safety, health, and order. LGUs are generally immune from suit when exercising governmental functions unless there is a specific waiver of immunity. This immunity derives from the doctrine of state immunity from suit.

• Proprietary functions are activities that are more commercial or business-like in nature, such as operating public utilities or maintaining markets. LGUs, in this case, are treated similarly to private entities and may be held liable for damages arising from negligence or breach of contract.

Important provision:

• Section 24 of the Local Government Code clarifies that LGUs are "liable for damages" resulting from the exercise of proprietary functions in the same manner as private corporations.

b. Tort Liability of LGUs

The liability of LGUs for tortious acts is governed by Article 2189 of the Civil Code, which holds provinces, cities, and municipalities liable for damages caused by "defective conditions of roads, streets, bridges, public buildings, and other public works under their control."

• Article 2189 establishes strict liability, meaning that LGUs can be held liable regardless of fault or negligence, provided that the damage was caused by defective infrastructure under their control.

However, for torts arising from governmental functions, LGUs are typically immune from suit unless an exception to immunity applies. One recognized exception is when the LGU acts in a capacity similar to that of a private entity in proprietary functions.

c. Statutory Liability

Under the Local Government Code, specific provisions impose liability on LGUs in the following instances:

• Section 444(b)(3)(v) provides that a local chief executive (mayor) can be held liable for gross negligence or dereliction of duty in preventing the escape of prisoners.
• Section 511 provides that LGUs may be held liable for illegal or unlawful disbursements of public funds and may be compelled to return such funds.

d. Corporate Personality of LGUs

LGUs have a distinct corporate personality under Section 15 of the Local Government Code, which allows them to sue and be sued in their corporate names. The liability of LGUs may be differentiated from that of their officers; the LGU itself is liable in proprietary matters or in cases where its direct negligence or breach of duty can be established.

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3. Civil Liability of LGUs

a. Contractual Liability

LGUs may enter into contracts in accordance with their powers and functions. If an LGU enters into a contract and breaches it, it may be held liable under civil law. The Local Government Code allows LGUs to contract debts, borrow funds, and engage in business enterprises, subject to the limitations provided by law.

LGUs may be held liable for breach of contract if:

• They enter into contracts not in conformity with the law (e.g., contracts without the necessary approvals).
• They default on financial obligations.

b. Quasi-delict (Tort) Liability

Under Article 2189 of the Civil Code, LGUs are strictly liable for damages arising from defective infrastructure. This includes negligence in the maintenance of roads, bridges, public buildings, and other public works. LGUs may also be liable under Article 2176 of the Civil Code for quasi-delicts arising from negligence in the performance of proprietary functions.

c. Civil Liability of Public Officers

LGU officials may be held personally liable for acts done with bad faith, malice, or gross negligence under Article 27 of the Civil Code. If an official’s act leads to damage or injury, the aggrieved party may file a civil case against the official for damages. The LGU may also be held subsidiarily liable.

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4. Criminal Liability of LGUs and Public Officials

Criminal liability for acts or omissions of LGU officials falls under general laws, such as the Revised Penal Code and special penal laws. LGUs as entities do not incur criminal liability; however, LGU officials may be personally charged for crimes committed in the performance of their duties.

Key laws applicable to LGU officials include:

• Anti-Graft and Corrupt Practices Act (Republic Act No. 3019), which penalizes public officials for corrupt acts such as causing undue injury to any party, whether the government or a private entity.
• Code of Conduct and Ethical Standards for Public Officials and Employees (Republic Act No. 6713), which sets standards of accountability for public officers.

In cases where LGU officials commit criminal acts, they can face both criminal prosecution and administrative sanctions.

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5. Administrative Liability

LGU officials may be held administratively liable under the Local Government Code, particularly in instances of:

• Abuse of authority
• Misconduct or dereliction of duty
• Inefficiency or gross negligence

Under Section 60 of the Local Government Code, the President may discipline, suspend, or remove LGU officials for administrative violations. Grounds for removal or suspension include:

• Dishonesty
• Oppression
• Gross misconduct
• Neglect of duty

6. Jurisprudence on LGU Liability

Several cases provide clarity on the liability of LGUs:

• City of Manila v. Teotico (1966): The Supreme Court held that an LGU could be held liable under Article 2189 for damages arising from injuries sustained due to a defective road.

• Santos v. IAC (1985): LGUs were not liable for acts of their employees that were beyond the scope of their authority or performed in a personal capacity.

• Mendoza v. de Leon (1993): The Supreme Court ruled that public officers could be held administratively and criminally liable for dereliction of duty and gross misconduct.

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7. Exceptions to Immunity

LGUs can be sued and held liable in the following instances:

• Waiver of immunity: If the government waives immunity, typically in proprietary functions.
• Proprietary functions: When an LGU acts in a business capacity, such as operating public utilities or markets, it may be sued for damages like any private corporation.
• Special laws: Certain laws explicitly provide for the liability of LGUs, such as environmental laws or laws concerning public infrastructure.

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Conclusion

The liability of LGUs is a complex interplay of constitutional principles, statutory provisions, and judicial interpretations. LGUs enjoy certain immunities, especially when performing governmental functions, but they may be held accountable in their proprietary capacity or when specific laws impose obligations and liabilities. Understanding these nuances is critical to navigating the legal landscape governing LGU liability in the Philippines.

Settlement of Boundary Disputes | LGUs | LAW ON LOCAL GOVERNMENTS

Settlement of Boundary Disputes in Local Government Units (LGUs)

The settlement of boundary disputes between local government units (LGUs) is governed by specific provisions under Republic Act No. 7160, also known as the Local Government Code of 1991. The Code outlines the procedure and authorities responsible for resolving disputes involving territorial boundaries between various LGUs (barangays, municipalities, cities, and provinces). Below is a meticulous breakdown of the relevant provisions and procedures.

1. Legal Basis:

Boundary disputes arise when two or more LGUs contest their territorial limits. The authority and process to settle these disputes are primarily found in:

• Section 118 of the Local Government Code of 1991
• Section 119 of the Local Government Code of 1991
• Relevant Implementing Rules and Regulations (IRR) of the Local Government Code

2. Key Principles:

• The LGUs involved should prioritize an amicable settlement of the dispute at the administrative level.
• The Sangguniang Bayan, Sangguniang Panlungsod, or Sangguniang Panlalawigan, depending on the nature of the dispute, have the jurisdiction to settle these disputes.
• Should the administrative process fail, the matter may be elevated to the courts for judicial resolution.

3. Hierarchy of Jurisdiction:

a. Disputes Between Barangays:

• Section 118(a) provides that disputes between or among barangays within the same city or municipality shall be referred for settlement to the Sangguniang Panlungsod or Sangguniang Bayan concerned.
• These legislative bodies must attempt to mediate and resolve the issue.

b. Disputes Between Municipalities or Component Cities within the Same Province:

• Section 118(b) specifies that disputes between municipalities or component cities within the same province shall be referred for settlement to the Sangguniang Panlalawigan of the province.

c. Disputes Between Highly Urbanized Cities, Independent Component Cities, or Provinces:

• Section 118(c) applies when the dispute involves highly urbanized cities, independent component cities, or provinces. The dispute is referred to the Sangguniang Panlalawigan of the province involved, or the Sangguniang Panlalawigan of the province where the independent component city or highly urbanized city is geographically located.

d. Disputes Between LGUs of Different Provinces:

• Section 118(d) governs disputes between municipalities or cities of different provinces. These disputes are referred for settlement to the Sanggunians of the provinces involved.

4. Procedural Process:

a. Filing of a Petition:

• A petition for settlement of boundary dispute must be filed by any of the LGUs involved, typically represented by their respective local chief executives (mayors or governors).
• The petition must clearly state the facts and arguments supporting the claim of the LGU regarding its boundary, often based on historical records, cadastral surveys, and official maps.

b. Mediation and Amicable Settlement:

• Upon the filing of a petition, the concerned Sangguniang Bayan, Sangguniang Panlungsod, or Sangguniang Panlalawigan is tasked with mediating the dispute.
• The goal is to arrive at an amicable settlement between the LGUs involved. The local legislative body may request the assistance of technical agencies, such as the Department of Environment and Natural Resources (DENR) for cadastral and land survey assistance.

c. Adjudication:

• If mediation fails, the local legislative body proceeds to adjudicate the dispute. A hearing may be conducted, wherein both LGUs present their evidence and arguments.
• The decision of the local legislative body should be based on the facts presented, particularly regarding official records, land surveys, historical boundaries, and legislative enactments affecting the boundaries.

d. Appeal:

• The decision of the Sangguniang Bayan, Sangguniang Panlungsod, or Sangguniang Panlalawigan may be appealed to the Regional Trial Court (RTC) within the region where the LGUs are located.
• The appeal must be made within the period prescribed under the Rules of Court.

5. Resolution by Courts:

If the dispute remains unresolved at the administrative level, or if any of the parties are dissatisfied with the decision of the local legislative body, the dispute may be brought before the courts for judicial determination.

• The courts will then rely on the same evidence, particularly the official records and cadastral surveys, to determine the proper boundaries.
• In most cases, the final arbiter of boundary disputes between LGUs is the Supreme Court, particularly when questions of law or jurisdiction are involved.

6. General Considerations in Boundary Disputes:

a. Evidentiary Weight of Historical and Official Documents:

• Cadastral Maps, Presidential Decrees, and legislative enactments (laws, ordinances) are crucial pieces of evidence in boundary disputes. These documents often provide the clearest demarcations of territorial limits and are accorded great weight in determining boundaries.

b. Role of the Department of Environment and Natural Resources (DENR):

• The DENR, through its Land Management Bureau (LMB), plays a significant role in providing technical assistance, including cadastral surveys, which are vital for determining the precise locations of disputed boundaries.

c. Amicable Settlement vs. Judicial Proceedings:

• The law encourages amicable settlement at the administrative level through mediation by the local legislative bodies. The rationale is to avoid prolonged legal battles that could strain relationships between neighboring LGUs and cause administrative inefficiencies.

d. Importance of Local Autonomy and Coordination:

• The principle of local autonomy allows LGUs to manage their own affairs, but disputes over boundaries can disrupt governance and local administration. Hence, the resolution process seeks to balance local autonomy with administrative efficiency and harmonious relations.

7. Cases on Boundary Disputes:

The jurisprudence on boundary disputes involves several cases where the Supreme Court has resolved issues based on the cadastral surveys, historical documents, and the Local Government Code. Courts consistently reiterate the necessity of factual evidence, such as historical boundaries and land surveys, in the adjudication of these disputes.

Example Case:

• Piedad Estate v. Municipality of Quezon: This landmark case involved a boundary dispute where the Court ruled based on official documents, land surveys, and historical records in determining the boundaries between LGUs.

8. Conclusion:

Boundary disputes are inherent in the administration of local government units due to the complex history of territorial demarcations in the Philippines. The Local Government Code of 1991 provides a clear legal framework to resolve these disputes, prioritizing amicable settlements through mediation and adjudication by local legislative bodies. However, unresolved disputes can be elevated to the judiciary for final resolution, emphasizing the importance of documentary evidence, especially cadastral maps, in determining the correct territorial boundaries.

Vacancies and Succession of Local Officials | LGUs | LAW ON LOCAL GOVERNMENTS

Vacancies and Succession of Local Officials

Under the Local Government Code of 1991 (Republic Act No. 7160), the procedures and rules for vacancies and succession of local officials are governed primarily by the principles of continuity in public service and the preservation of local governance. The law provides for the manner by which vacancies may arise and the corresponding mechanisms for succession to ensure that local government units (LGUs) can continue functioning effectively.

I. Causes of Vacancy in Local Offices

A vacancy in the office of a local elective official can occur under the following circumstances:

1. Death – The demise of the local official results in an immediate vacancy.
2. Permanent Disability – When a local official becomes incapacitated due to physical or mental disability that permanently prevents the official from performing the functions of the office.
3. Removal from Office – This may be by virtue of:
   • Administrative proceedings leading to dismissal from service,
   • Disqualification from holding office due to criminal conviction,
   • Removal by a competent authority for just cause.
4. Resignation – A voluntary resignation submitted by the local official creates a vacancy. However, the resignation must be accepted by the proper authority to become effective.
5. Abandonment – Absence from office without authority for a continuous period of six months can be considered abandonment of office.
6. Conviction of a Crime Involving Moral Turpitude – A local official convicted of such crime is disqualified from holding public office, resulting in a vacancy.
7. Assumption of an Incompatible Office – If a local official assumes another office or employment in the government that is incompatible with their current office, it results in a vacancy.
8. Other Legal Causes – Vacancies may also arise due to other legal causes provided by law, such as forfeiture of office due to certain violations.

II. Succession of Local Officials

The succession of local officials is crucial to ensure uninterrupted local governance. The Local Government Code specifies the process of succession for each type of local elective position.

1. Succession for the Position of Local Chief Executives (Governor, Vice Governor, Mayor, Vice Mayor)

• If the Governor or Mayor position becomes vacant, the following rules apply:
  • Vice Governor or Vice Mayor – The Vice Governor (for the Governor) or Vice Mayor (for the Mayor) automatically succeeds to the position of Governor or Mayor in the event of a vacancy. This principle ensures an immediate transition without any need for appointment or special election.
  • Filling the Position of Vice Governor or Vice Mayor – Once the Vice Governor or Vice Mayor assumes the higher office, their position is also vacated. The law provides that the highest-ranking member of the Sangguniang Panlalawigan (provincial board) or Sangguniang Panlungsod (city council) shall succeed to the position of Vice Governor or Vice Mayor.
    • In cases where two members have equal ranking (such as both having the same number of votes in the last election), the law mandates the drawing of lots to determine who will succeed.

2. Succession for the Position of Sangguniang Members

• Provincial Board Members (Sangguniang Panlalawigan), City Councilors (Sangguniang Panlungsod), and Municipal Councilors (Sangguniang Bayan) are likewise subject to the rules of succession:
  • Ranking of Sangguniang Members – The ranking of the members of the Sangguniang Panlalawigan, Panlungsod, or Bayan is based on the order in which they were elected. In case of equal votes, the tie-breaking procedure of drawing lots applies.
  • Filling Vacancies in the Sangguniang – If a seat in the Sangguniang becomes vacant, it shall be filled by the political party to which the member who caused the vacancy belongs, in accordance with the following rules:
    • Nomination by Political Party – The party of the official who vacated the seat has the right to nominate a replacement. The replacement must come from the same political party.
    • In the Absence of Political Party Affiliation – If the official who vacated the seat does not belong to any political party, or if the vacancy occurs in a seat held by an independent candidate, the President, Governor, or Mayor (as the case may be, depending on the level of the Sanggunian) appoints a qualified person to fill the vacancy upon the recommendation of the Sangguniang concerned.

3. Special Rules for Barangay Officials

• The same basic principles apply to barangay officials (Barangay Chairperson and Barangay Kagawad). If the Barangay Chairperson position becomes vacant, the highest-ranking Barangay Kagawad automatically succeeds to the position. If two or more Barangay Kagawad have the same rank, the same method of drawing lots will apply.

III. Temporary Vacancies

In certain cases, a local official may be temporarily unable to perform their duties, such as when they are:

• Suspended from Office – In this case, an officer-in-charge (OIC) may be appointed to temporarily take over the functions of the suspended official. However, the suspension is not considered a permanent vacancy.
• Absent due to Authorized Leave – If a local official is on an approved leave of absence, the Vice Governor, Vice Mayor, or highest-ranking Sanggunian member temporarily assumes the functions of the absent official.
• Preventive Suspension – If a local official is under preventive suspension, the Vice Governor, Vice Mayor, or highest-ranking Sanggunian member takes over for the duration of the suspension. This suspension, however, does not create a vacancy.

IV. Appointments by the President in Case of Permanent Vacancies

Under exceptional circumstances, when a permanent vacancy occurs in both the positions of Governor and Vice Governor or both Mayor and Vice Mayor, the President of the Philippines is authorized to appoint a replacement from a list of three (3) nominees submitted by the respective Sangguniang Panlalawigan, Panlungsod, or Bayan.

In these instances, the appointee must meet the qualifications required by law and belong to the same political party as the official who vacated the office. If the official was independent, the President has the discretion to appoint a qualified person.

V. Special Elections

While the Local Government Code generally emphasizes succession and appointments to fill vacancies, there are circumstances where special elections may be called to fill a vacancy. This is more common in the case of congressional representatives but may apply to local positions if mandated by law or circumstance.

VI. Qualifications and Limitations in Succession

• Qualifications of Successors – The successor to any vacant position must meet all the qualifications required for the office, including residency, age, and citizenship requirements under the law.
• Term of the Successor – The successor serves only for the unexpired portion of the term of the official they are replacing.
• Prohibition on Successive Terms – While successors may serve for the unexpired term, the usual limitations on successive terms apply. For example, an official who succeeds a Governor or Mayor cannot serve more than three consecutive terms in the same office.

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Key Principles in the Doctrine of Vacancy and Succession

1. Continuity of Governance – The law ensures that there is always a qualified individual ready to assume office in case of vacancies, preventing any disruption in the functions of the local government.
2. Preservation of Political Party Rights – The political party of the official who vacated the office is given the right to nominate a replacement, maintaining the balance of political representation.
3. Expedient and Efficient Transition – The procedures for succession are designed to be swift and straightforward, with provisions like automatic succession and the drawing of lots to resolve ties, ensuring that leadership transitions smoothly and governance is not interrupted.

These detailed procedures enshrined in the Local Government Code are essential in maintaining the stability, order, and functionality of local government units across the Philippines, while also respecting democratic principles and party affiliations.

Recall | LGUs | LAW ON LOCAL GOVERNMENTS

RECALL UNDER THE LOCAL GOVERNMENT CODE OF THE PHILIPPINES

Legal Basis

The concept of recall in the Philippines is governed by the Local Government Code of 1991 (Republic Act No. 7160), specifically under Title I, Chapter 5, Section 69 to Section 75. It is one of the mechanisms provided by law to ensure accountability of local government officials. Recall serves as a direct democratic remedy by which the electorate can remove an elected local official before the end of their term for loss of confidence.

Grounds for Recall

The singular ground for initiating recall under Philippine law is loss of confidence. Unlike other accountability mechanisms that may require proving specific misconduct, the recall process is based purely on the collective sentiment of the electorate. It is premised on the democratic right of the people to withdraw their trust from an elected official if they believe the official no longer represents their interests or has otherwise lost the confidence of the public.

Who Can Be Recalled

All elective officials of Local Government Units (LGUs) can be subject to recall. These include:

• Provincial Governors and Vice Governors
• City and Municipal Mayors and Vice Mayors
• Members of the Sanggunian (Provincial, City, or Municipal)

However, members of the Sangguniang Barangay (Barangay Council) and the Punong Barangay (Barangay Captain) are not subject to recall as provided by specific laws concerning barangay officials.

Who May Initiate Recall

The recall process may be initiated by either:

1. Registered Voters: A recall can be initiated directly by registered voters of the LGU through a petition signed by a specific percentage of the voters. The required percentage varies depending on the size of the population of the LGU:

   • For LGUs with up to 20,000 voters: At least 25% of the total registered voters are needed.
   • For LGUs with more than 20,000 but less than 75,000 voters: At least 20% of the total registered voters.
   • For LGUs with more than 75,000 but less than 300,000 voters: At least 15% of the total registered voters.
   • For LGUs with over 300,000 voters: At least 10% of the total registered voters.

2. The Preparatory Recall Assembly (PRA): This assembly consists of local government officials elected in the previous election. The assembly can initiate recall by a majority vote of all its members, only for officials holding positions in the province, city, or municipality concerned. This option is unavailable for barangay officials.

Timing of Recall

There are strict time limitations regarding when recall may be initiated:

• Within the first year of the term of office of an official, no recall can be initiated.
• After the second year of the official's term, no recall can be initiated.
• Therefore, the window to initiate a recall is during the second year of the official's term. For instance, if a local official's term began in 2022, recall proceedings can only occur between 2023 and 2024.

Furthermore, only one recall election can be held for an official during their term.

Procedure for Recall by Voters' Petition

1. Filing of Petition: The recall petition, signed by the required percentage of registered voters, must be submitted to the Commission on Elections (COMELEC). The petition must specify the names of the petitioners, their signatures, addresses, and precinct numbers, as well as the specific reasons for loss of confidence.

2. Verification by COMELEC: Upon receipt of the petition, COMELEC must verify the signatures to ensure that the required number of voters has been met. This involves a physical verification process, often including the examination of voter records and the conduct of hearings.

3. Scheduling of Recall Election: Once verified, the COMELEC will schedule the recall election not earlier than 30 days but not later than 45 days from the time the petition is found sufficient, or 90 days in cases where the LGU is located in the Autonomous Region in Muslim Mindanao (ARMM).

4. Election Campaign: The official who is the subject of recall, along with other candidates who may file their candidacies, will be allowed to campaign for the position.

5. The Recall Election: The electorate of the concerned LGU will vote to either retain the incumbent official or elect a replacement. The incumbent automatically becomes a candidate in the recall election.

Effect of Recall Election

If the incumbent official wins the recall election, they will remain in office for the remainder of the term. However, if the official loses, the winner of the recall election will serve for the remainder of the unexpired term of the recalled official.

Prohibition on Resignation to Avoid Recall

An official cannot resign to avoid a recall election. Any resignation tendered after the filing of a recall petition will not prevent the continuation of the recall process. This is to ensure that an official cannot use resignation as a means of evading the democratic process.

Limitations on Recall Elections

1. Frequency: Only one recall election can be conducted within the term of an elected official.
2. Term Restrictions: A local official who has been recalled and subsequently won the recall election cannot be subjected to another recall for the remainder of their term.

Role of the COMELEC

The COMELEC plays a critical role in the recall process. It has the authority to:

• Determine the sufficiency of the recall petition.
• Conduct the verification of the signatures.
• Organize and oversee the recall election.
• Set rules and regulations regarding the recall process to ensure fairness and transparency.

Supreme Court Decisions on Recall

There have been significant rulings by the Supreme Court related to the recall process:

1. Angobung v. COMELEC (1995): The Court ruled that the petition for recall must comply strictly with the procedural and substantive requirements under the Local Government Code. This case emphasized the importance of the verification process.

2. Terse v. COMELEC (1997): The Court upheld the power of the Preparatory Recall Assembly to initiate a recall process, affirming that this body is a legitimate source of initiating recall in local government units.

3. Monsale v. COMELEC (2010): The Court reiterated that the recall mechanism is a valid and democratic method of ensuring public officials' accountability, as long as it is exercised within the parameters provided by the law.

Conclusion

Recall is an essential component of the political law system in the Philippines as it ensures accountability and gives the people a direct mechanism to express their loss of confidence in their local leaders. While limited in application—given the time restrictions, procedural requirements, and the single-use limit—recall serves as a reminder that sovereignty resides in the people and that elected officials are accountable to them throughout their term.

Term Limits | LGUs | LAW ON LOCAL GOVERNMENTS

Term Limits of Local Government Officials under Philippine Law

Under the Philippine Constitution and the Local Government Code (Republic Act No. 7160), local government officials, including governors, mayors, and members of the local legislative bodies, are subject to term limits to promote democratic governance and prevent excessive concentration of power. The relevant laws set specific rules governing these term limits, which will be discussed below.

1. Constitutional Provision

The 1987 Philippine Constitution provides the general framework for term limits of elective local government officials. Article X, Section 8 of the Constitution states:

• "The term of office of elective local officials, except barangay officials, which shall be determined by law, shall be three years and no such official shall serve for more than three consecutive terms."

This provision explicitly limits local government officials to a maximum of three consecutive terms, each lasting three years. After serving three consecutive terms, an official becomes ineligible to run for the same position in the subsequent election cycle. However, after skipping one election, the official may run again for the same office.

2. Scope of Term Limits under the Local Government Code

The Local Government Code (LGC), particularly Section 43, reinforces and implements the constitutional provision on term limits. It specifies the positions subject to term limits, including:

• Provincial Governors and Vice Governors
• City and Municipal Mayors and Vice Mayors
• Members of the Provincial Board (Sangguniang Panlalawigan)
• Members of the City Council (Sangguniang Panlungsod)
• Members of the Municipal Council (Sangguniang Bayan)

The Local Government Code mirrors the constitutional provision, affirming that these officials may serve for a maximum of three consecutive terms. Each term is three years long, making a total of nine years for any official who serves the maximum number of consecutive terms.

Key Features of the Term Limits in the Local Government Code:

1. Three consecutive terms limit: Officials can only serve three consecutive terms in the same position.

2. Ineligibility after three consecutive terms: After serving the maximum number of consecutive terms, the official cannot run for re-election in the same position in the next regular election.

3. Break in service allows re-election: After a one-term break, an official becomes eligible to run for the same office again.

3. Interpretation and Application of the Term Limits

3.1. Consecutive Terms

The term “consecutive” is a crucial element in determining whether the term limit applies. An official’s three-term limit applies only if the terms are served consecutively. If an official does not serve a full consecutive term (for example, due to resignation or removal), the incomplete term may not count toward the three-term limit, depending on the circumstances.

For example, the Supreme Court in Borja v. Commission on Elections (G.R. No. 133495, September 3, 1998) clarified that a “term” refers to the full three-year period for which an official is elected. Therefore, if an official serves a term that is interrupted (e.g., through resignation or removal), the interrupted term may not count as one of the three consecutive terms under the law. In this case, the official might still be eligible to run in subsequent elections without violating the term limit rule.

3.2. Voluntary and Involuntary Interruption

Another important aspect of the term limit rule is the distinction between voluntary and involuntary interruption of terms. An involuntary interruption (e.g., disqualification or removal from office through no fault of the official) may prevent that period from being counted as part of the consecutive terms. The Aldovino v. Commission on Elections (G.R. No. 184836, December 23, 2009) case tackled this matter, where the Supreme Court ruled that the prohibition only applies to successive full terms. If an official is disqualified, and this disqualification is subsequently lifted or the official resumes office, such period may not be counted as part of the consecutive terms for purposes of the three-term limit.

3.3. Absence of a Clear Prohibition on Running for Other Positions

It is important to note that the term limit applies only to the same position. An official who has served three consecutive terms as mayor, for example, is not prohibited from running for other local elective positions (e.g., governor or congressman). This practice has been commonly used by political families in the Philippines as a way to circumvent term limits while maintaining political control over different jurisdictions.

3.4. Substitutions and Appointments

Officials who assume office due to succession or appointment are subject to specific rules. If a Vice Mayor or Vice Governor assumes the office of Mayor or Governor due to vacancy, the period during which they hold office may or may not be counted as a full term, depending on the duration of the service. In cases where the assumption of office lasts more than half of the regular three-year term, it is typically counted as one full term for purposes of the three-term limit.

4. Jurisprudence on Term Limits

Philippine jurisprudence has clarified several ambiguities regarding the application of term limits, particularly regarding the question of what constitutes a “term.” Some key rulings include:

• Borja v. COMELEC (1998): This case clarified the distinction between full and incomplete terms and provided guidance on whether incomplete terms count towards the three-term limit.

• Aldovino v. COMELEC (2009): The Supreme Court ruled that an official could still run for office after serving incomplete or non-consecutive terms, provided the official did not complete three full consecutive terms.

• Lonzanida v. COMELEC (G.R. No. 135150, July 28, 1999): This case discussed the effects of involuntary interruption of an official’s term and clarified that such interruptions could restart the term limit count.

5. Special Considerations for Barangay Officials

Barangay officials (Barangay Captains and members of the Sangguniang Barangay) are not covered by the three-term limit rule stated in the Constitution and the Local Government Code. Instead, their term limits and rules of office are determined by specific laws governing barangays. Currently, the term of office for barangay officials is also three years, but there is no explicit term limit set under the Constitution.

6. Key Exceptions and Loopholes

While term limits are meant to prevent political dynasties and the entrenchment of power, various strategies have emerged to circumvent the term limit provisions, including:

• Shuffling positions: After serving the maximum number of terms, many officials shift to other positions (e.g., from mayor to vice mayor or governor) to remain in power, often with the support of family members holding other local government posts.

• Running in different jurisdictions: Some officials move to run in nearby municipalities or cities, thereby avoiding the term limit in their original jurisdiction while maintaining political influence.

7. Conclusion

The law on term limits for local government officials in the Philippines is clearly set out in both the Constitution and the Local Government Code. It establishes a balance between the continuity of experienced governance and the need to prevent local officials from entrenching themselves in power for too long. While this system of term limits works to some extent, various legal interpretations and strategies have allowed many politicians to find ways to extend their influence beyond the set limits.

Local Elective and Appointive Officials | LAW ON LOCAL GOVERNMENTS

XV. LAW ON LOCAL GOVERNMENTS

E. Local Elective and Appointive Officials

This section deals with the provisions on local elective and appointive officials under Republic Act No. 7160, otherwise known as the Local Government Code of 1991 (LGC), and other relevant laws and jurisprudence.

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1. Categories of Local Officials

Local officials are divided into elective and appointive officials. Both categories have distinct qualifications, duties, functions, and accountability mechanisms.

A. Elective Officials

1. Elective Local Officials include the following:

   • Provincial Level: Governor, Vice Governor, Sangguniang Panlalawigan Members.
   • City Level: City Mayor, City Vice Mayor, Sangguniang Panlungsod Members.
   • Municipal Level: Municipal Mayor, Municipal Vice Mayor, Sangguniang Bayan Members.
   • Barangay Level: Barangay Captain and Sangguniang Barangay Members.
   • Sangguniang Kabataan (SK): SK Chairperson and SK Members at the barangay level.

2. Qualifications for Elective Officials:

   • Citizenship: Must be a Filipino citizen.
   • Age: Varies by position:
     • Governor, Vice Governor, Mayor, Vice Mayor: at least 23 years old.
     • Sangguniang Panlalawigan, Sangguniang Panlungsod, and Sangguniang Bayan Members: at least 21 years old.
     • Barangay and SK Officials: at least 18 years old.
   • Residency: Must be a resident of the locality for at least one year immediately preceding the day of the election.
   • Voter Registration: Must be a registered voter in the locality.
   • Literacy: Must be able to read and write Filipino, English, or any local dialect.

3. Term of Office:

   • Elective local officials serve a three-year term, with a maximum of three consecutive terms for the same position, per Section 43 of the LGC.
   • The term limits rule has been interpreted strictly by the Supreme Court to prevent circumvention (e.g., switching positions between family members, etc.).

4. Powers and Functions of Elective Officials:

   • The LGC provides detailed descriptions of the executive and legislative powers conferred upon local officials, such as:
     • Governor and Mayor: Chief executives of the province and city/municipality, respectively. They have powers of supervision, control, and appointment over local offices, as well as general administrative powers.
     • Vice Governor and Vice Mayor: Preside over the Sangguniang Panlalawigan and Sangguniang Panlungsod/Bayan and assume the governor’s/mayor’s duties in case of permanent or temporary vacancy.
     • Sanggunian Members: Exercise legislative powers such as passing ordinances, approving budgets, and creating programs for local development.

5. Vacancies:

   • Vacancies in elective positions are filled according to the rule of succession (Section 44, LGC). When the governor, mayor, or barangay captain dies, is permanently disabled, or resigns, the vice governor, vice mayor, or barangay kagawad (in rank order) will automatically assume the position.
   • Temporary vacancies, such as during leave or suspension, are filled by officials in the same order of succession.

6. Grounds for Disqualification:

   • Under Section 40 of the LGC, local elective officials may be disqualified from running or holding office on various grounds:
     • Having been removed from office due to administrative charges.
     • Conviction by final judgment of a crime involving moral turpitude.
     • Mental or physical incapacity to discharge the duties of the office.

B. Appointive Officials

1. Appointive Local Officials:

   • These are individuals appointed by elective officials to assist in the day-to-day operations of local government units (LGUs). Positions include:
     • Provincial, City, and Municipal Treasurers, Assessors, Health Officers, Planning and Development Coordinators, Accountants, Civil Registrars, and Social Welfare Officers.
     • Barangay Secretary and Barangay Treasurer at the barangay level.

2. Qualifications for Appointive Officials:

   • Vary depending on the office but typically include:
     • Educational and professional qualifications, such as relevant degrees and licensures (e.g., licensed civil engineer for the City Engineer position).
     • Good moral character and relevant experience in the field.

3. Appointment Process:

   • Appointment of department heads in provinces, cities, and municipalities is the prerogative of the local chief executive (governor, mayor) and is subject to concurrence by the Sanggunian.
   • Appointments must comply with the Civil Service Law and the merit and fitness principle outlined in the Constitution.

4. Duties and Functions of Appointive Officials:

   • Appointive officials perform administrative, technical, and regulatory functions, depending on their specific roles. For instance:
     • The Local Treasurer collects taxes and revenue.
     • The Assessor manages property assessment and taxation.
     • The Health Officer oversees public health programs and services.
   • They also act as advisors to the local chief executives in their respective technical capacities.

5. Tenure:

   • Appointive officials do not have fixed terms. Their tenure is subject to the discretion of the appointing authority but is governed by Civil Service regulations. Dismissal or discipline must follow due process.

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2. Administrative Discipline of Local Officials

A. Elective Officials

Elective officials can be disciplined for violations of the Local Government Code or other laws:

1. Grounds for Disciplinary Action (Section 60, LGC):

   • Dishonesty, misconduct in office, gross negligence, or dereliction of duty.
   • Abuse of authority, oppression, or acts contrary to law.
   • Commission of an offense involving moral turpitude.

2. Disciplinary Authorities:

   • The Sangguniang Panlalawigan or Sangguniang Panlungsod can initiate disciplinary actions against their members, while the President can suspend or remove provincial officials.
   • The Office of the Ombudsman also has concurrent jurisdiction to investigate and prosecute local officials.

3. Suspension and Removal:

   • A preventive suspension may be imposed for not more than 60 days (Section 63, LGC).
   • Removal is only allowed after due process, including formal charges and an investigation.

B. Appointive Officials

• Appointive officials are subject to disciplinary action under the Civil Service Law and the Administrative Code of 1987. Grounds for dismissal or suspension include inefficiency, insubordination, or conduct prejudicial to the best interest of the service.

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3. Accountability and Ethical Standards

1. Public Accountability:

   • Local officials are subject to Republic Act No. 6713 (the Code of Conduct and Ethical Standards for Public Officials and Employees), which mandates standards such as:
     • Transparency in decision-making and public access to information.
     • Prohibition against conflicts of interest.
     • Full disclosure of financial and business interests.

2. Criminal Liability:

   • Officials may face criminal charges for violations of anti-graft laws, such as Republic Act No. 3019 (Anti-Graft and Corrupt Practices Act).
   • Other laws such as Republic Act No. 7080 (Plunder Law) and Republic Act No. 10121 (Disaster Risk Reduction and Management Act) may also impose liabilities on local officials in relation to the misuse of public funds or dereliction of duty during emergencies.

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4. Jurisprudence

Several important Supreme Court rulings interpret provisions on local elective and appointive officials. For instance:

• Aldovino v. COMELEC (2010) clarified the strict enforcement of term limits.
• Paredes v. Sandiganbayan (2014) underscored the liability of local officials for graft and corruption offenses.

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This section on local elective and appointive officials provides a comprehensive understanding of the framework governing local governance in the Philippines. Local officials, whether elected or appointed, play a crucial role in the political and administrative functions of LGUs, with their responsibilities, qualifications, powers, and liabilities clearly outlined in both law and jurisprudence.

Corporate Powers | Powers | LGUs | LAW ON LOCAL GOVERNMENTS

LAW ON LOCAL GOVERNMENTS: CORPORATE POWERS OF LOCAL GOVERNMENT UNITS (LGUs)

I. Introduction to Corporate Powers of LGUs

Local Government Units (LGUs) in the Philippines, composed of provinces, cities, municipalities, and barangays, are granted specific corporate powers under the 1987 Constitution and Republic Act No. 7160, otherwise known as the Local Government Code of 1991 (LGC). These corporate powers enable LGUs to function as corporate entities with distinct legal personalities, allowing them to enter into transactions, contracts, and agreements to carry out their mandates.

The corporate powers of LGUs are essential in empowering local governments to act in their proprietary capacity and achieve local autonomy. Section 22 of the LGC serves as the fundamental provision granting LGUs their corporate powers.

II. General Corporate Powers (Sec. 22, Local Government Code)

Section 22 of the Local Government Code delineates the corporate powers of LGUs as follows:

1. To Have a Continuous Succession in its Corporate Name

   • LGUs have perpetual legal existence under their corporate names, ensuring that they can continue to function as legal entities even as their elected officials change through elections.

2. To Sue and be Sued

   • LGUs can initiate legal actions and defend themselves in court. This power is essential for protecting their interests and enforcing their rights in legal matters, whether in proprietary or governmental capacity.

3. To Have and Use a Corporate Seal

   • LGUs are authorized to adopt and use an official corporate seal, which symbolizes their identity as a legal entity. The corporate seal is affixed to official documents, contracts, and transactions.

4. To Acquire and Convey Real or Personal Property

   • LGUs are empowered to acquire, purchase, hold, lease, or dispose of both real and personal properties. This corporate power allows them to manage public properties, including those necessary for providing public services.

5. To Enter into Contracts

   • LGUs, acting through their local chief executives (e.g., governor, mayor), are authorized to enter into contracts necessary to carry out their governmental and proprietary functions. However, there are statutory and legal restrictions to this power, as LGUs must ensure that their contracts are within their powers, fiscally responsible, and compliant with relevant laws.

III. Limitations on the Corporate Powers of LGUs

While LGUs have broad corporate powers, they are also subject to specific limitations imposed by law, including:

1. Subject to Legal Authority and Council Approval

   • Corporate acts, such as entering into contracts or acquiring property, must generally have the approval of the Sangguniang Panlalawigan, Sangguniang Panlungsod, or Sangguniang Bayan (depending on the level of LGU). The local chief executive (e.g., governor, mayor) is the authorized representative in entering contracts, but the legislative council must approve these actions.

2. Comprehensive Financial Authority

   • The power to acquire property and contract obligations is subject to the availability of appropriations and the fiscal management rules. LGUs must operate within their annual budgets, and their contracts should not result in obligations beyond what their resources can sustain.

3. Limitations on Borrowing and Indebtedness

   • LGUs are permitted to contract loans and borrow funds, but this power is heavily regulated by laws such as Republic Act No. 4860 (Foreign Borrowing Act), Republic Act No. 7180 (Local Borrowing Act), and relevant guidelines from the Department of Finance (DOF) and Bureau of Local Government Finance (BLGF). LGUs are subject to debt ceilings, and borrowing transactions must be approved by the Department of Finance.

4. Expropriation Power

   • As part of its corporate powers, an LGU can exercise eminent domain, or the power to expropriate private property for public use, but only when a public purpose is established. The exercise of this power is also subject to due process and the payment of just compensation to the property owner.

IV. Specific Corporate Acts

1. Contracts and Agreements

• LGUs are authorized to enter into contracts necessary for their operation. These include procurement contracts, public-private partnership (PPP) agreements, supply contracts, construction, leases, and joint ventures. However, all contracts must follow the procurement laws, such as Republic Act No. 9184 (Government Procurement Reform Act), and must be approved by the local legislature.

2. Public-Private Partnerships (PPP)

• LGUs may enter into joint ventures or partnerships with private entities to undertake projects such as infrastructure, transportation, housing, and economic development. The framework for these agreements is governed by guidelines issued by the national government, such as the Public-Private Partnership Center.

3. Issuance of Bonds

• LGUs are empowered to issue bonds, debentures, securities, and other forms of indebtedness to fund projects for economic development. The issuance of such instruments is regulated and requires approval from the Department of Finance to ensure that the LGU has the capacity to repay its debts.

4. Acquisition and Disposal of Property

• LGUs can acquire real or personal property for public use or for their operations. They are also authorized to sell, lease, or dispose of surplus properties following proper legislative approval and processes.

5. Franchise and Licensing

• LGUs may grant franchises, licenses, or permits in areas under their jurisdiction. These grants are typically for businesses, utilities, and services that operate within the locality, such as transport services, markets, and public utilities.

V. Powers in Relation to Economic Enterprises

In their proprietary capacity, LGUs may operate and manage economic enterprises, which generate income for the local government. Examples include public markets, slaughterhouses, parking lots, and public transport terminals. The income derived from these enterprises augments the resources available to LGUs and funds the delivery of basic services.

VI. Oversight and Regulatory Role of National Government

Although LGUs enjoy local autonomy, their corporate powers remain subject to oversight by the national government. Key regulatory bodies include:

• Department of the Interior and Local Government (DILG): Provides general supervision over LGUs, ensuring that their corporate powers are exercised in accordance with the law.
• Commission on Audit (COA): Reviews and audits the financial transactions of LGUs to ensure that public funds are spent properly.
• Department of Finance (DOF): Regulates borrowing and other financial activities of LGUs, ensuring that they do not become financially insolvent.

VII. Conclusion

The corporate powers of LGUs, as enshrined in the Local Government Code, are fundamental to their ability to operate both as government entities and as corporate entities. These powers enable LGUs to carry out their mandates, provide services to their constituents, and promote economic development within their jurisdictions. However, LGUs must exercise their corporate powers within the limits imposed by law, with the necessary checks and balances provided by the oversight of national government agencies and local legislative bodies.

Local Legislation | Powers | LGUs | LAW ON LOCAL GOVERNMENTS

Local Legislation under the Local Government Code of the Philippines (Republic Act No. 7160)

Local legislation refers to the authority of local government units (LGUs) to enact laws, referred to as ordinances, and to adopt resolutions that address the needs of the local community within the framework of the law. The powers and responsibilities of LGUs in relation to local legislation are primarily governed by the Local Government Code of 1991 (LGC).

The LGUs include the following political subdivisions:

• Provinces
• Cities
• Municipalities
• Barangays

The legislative powers of these LGUs are vested in their respective local legislative bodies:

• Sangguniang Panlalawigan (Provincial Board) for provinces
• Sangguniang Panlungsod (City Council) for cities
• Sangguniang Bayan (Municipal Council) for municipalities
• Sangguniang Barangay (Barangay Council) for barangays

1. Scope of Local Legislation

Under Section 16 of the Local Government Code, LGUs have the power to legislate for the following purposes:

• General Welfare Clause: The promotion of the health, safety, prosperity, and general welfare of the people within the LGU’s territorial jurisdiction. This broad provision grants LGUs flexibility to enact ordinances addressing diverse concerns, as long as these serve the general welfare.

• Corporate Powers: LGUs, as legal entities, can create policies or rules relating to their proprietary functions. These powers include those that enable the LGU to enter into contracts, manage property, and engage in economic activities for income generation.

2. Legislative Process

The process of enacting ordinances and adopting resolutions involves several key stages:

• Introduction of Ordinance or Resolution: A member of the sanggunian introduces a proposed ordinance or resolution.

• Deliberations and Readings: The ordinance or resolution undergoes several readings and deliberations. This includes:

  • First Reading: Title of the ordinance is read, and it is referred to an appropriate committee for study and recommendation.
  • Second Reading: Deliberation on the ordinance, including amendments and discussions on its merits.
  • Third Reading: Final reading and approval or disapproval of the ordinance or resolution.

• Approval by the Local Chief Executive (LCE):

  • The local chief executive (governor for provinces, mayor for cities and municipalities, and punong barangay for barangays) is given 10 days to approve or veto the proposed ordinance or resolution.
  • If approved, the ordinance is published or posted in public places and becomes law.
  • If vetoed, the sanggunian may override the veto with a two-thirds vote of all its members.

3. Veto Power of the Local Chief Executive

Under Section 55 of the LGC, the LCE may veto an ordinance or resolution within 10 days from receipt. The veto must be based on the following grounds:

• The ordinance or resolution is ultra vires (beyond the powers of the sanggunian).
• It is prejudicial to the public welfare.
• It fails to comply with mandatory procedural requirements.

If the veto is overridden by a two-thirds vote of the sanggunian members, the ordinance becomes effective.

4. Powers of the Local Legislative Bodies

Each level of local government has specific powers granted to their legislative bodies under the LGC, as outlined below:

a. Sangguniang Panlalawigan (Provincial Board)

The Sangguniang Panlalawigan exercises legislative functions over the province. Its powers include:

• Appropriation of funds: Enacting ordinances that authorize the annual budget and other appropriations.
• Regulation of land use: Adopting measures that regulate the use of land within the province for agriculture, industry, and other purposes.
• Imposition of taxes and fees: Levying taxes, fees, and charges, particularly those related to the operation of the provincial government.
• Regulation of natural resources: Enacting ordinances that regulate the extraction and utilization of natural resources within the province.

b. Sangguniang Panlungsod (City Council)

The legislative authority of cities resides in the Sangguniang Panlungsod. In addition to the general powers granted under the LGC, cities have broader authority due to their status as independent or highly urbanized units. Their powers include:

• Taxation and revenue generation: Cities can impose taxes, fees, and charges as allowed under the LGC and other laws.
• Zoning ordinances: Cities can enact zoning ordinances to regulate the use and development of urban land.
• Public utilities and enterprises: City councils have the power to regulate public utilities and franchises operating within their jurisdiction.

c. Sangguniang Bayan (Municipal Council)

The Sangguniang Bayan serves as the legislative body of the municipality. Its powers are similar to those of cities but are limited to the municipality's jurisdiction. These powers include:

• Adopting ordinances for municipal development: Such as regulations on sanitation, waste management, and local economic enterprises.
• Taxation: Imposing taxes and fees that apply to the municipality.
• Issuance of permits and licenses: Municipal councils regulate local business operations through the issuance of permits and licenses.

d. Sangguniang Barangay (Barangay Council)

The Sangguniang Barangay, being the legislative body of the barangay, exercises more limited legislative functions, which include:

• Enactment of barangay ordinances: Ordinances that directly affect the day-to-day activities of barangay residents, including peace and order, sanitation, and local community projects.
• Issuance of barangay clearance: Barangays regulate small-scale local businesses and construction projects by issuing clearances and permits.

5. Limitations and Requirements on Local Legislation

While LGUs enjoy substantial legislative autonomy, their powers are subject to certain limitations, including:

a. Consistency with National Law

Local ordinances must be consistent with the Constitution and national laws. Under the principle of preemption, national law prevails over conflicting local ordinances.

b. Compliance with Procedural Requirements

Ordinances must go through the prescribed legislative process. Failure to comply with procedural requirements, such as public hearings for certain ordinances (e.g., zoning or taxation ordinances), renders the ordinances invalid.

c. Publication and Effectivity

For an ordinance to take effect, it must be published in a newspaper of general circulation or posted in prominent public places in the LGU, depending on the type of LGU and the ordinance involved (Section 59, LGC).

d. Judicial Review

Local ordinances are subject to judicial review. Courts may declare ordinances invalid if found to be beyond the powers of the LGU (ultra vires), unconstitutional, or in violation of statutory requirements.

6. Local Legislative Autonomy and Control

a. Autonomy

LGUs enjoy autonomy, particularly in the formulation of local policies through local legislation. This autonomy is enshrined in the Constitution and the Local Government Code, which recognize the right of LGUs to govern themselves and make laws for their local communities.

b. Supervisory Control

The President, through the Department of the Interior and Local Government (DILG), exercises general supervision over LGUs to ensure that their actions are within the scope of their powers and in accordance with the law. Supervision does not extend to control, which means that the national government cannot directly interfere with the actions of LGUs unless these are illegal or outside the bounds of their authority.

7. Challenges in Local Legislation

LGUs often face various challenges in local legislation, including:

• Limited financial resources that affect their ability to implement local ordinances.
• Conflicting interests between local officials and their constituents.
• Political pressures that may influence legislative decisions.

Conclusion

Local legislation is a critical component of governance in the Philippines, allowing LGUs to exercise self-governance and respond to the specific needs of their constituents. While LGUs are granted broad legislative powers, they must operate within the constraints of national law and constitutional principles. The Local Government Code provides the framework for the legislative process, and LGUs must ensure compliance with both substantive and procedural requirements for their ordinances to be valid and effective.

Closure and Opening of Roads | Powers | LGUs | LAW ON LOCAL GOVERNMENTS

Closure and Opening of Roads by Local Government Units (LGUs)

The power to open and close roads, streets, alleys, and other similar passageways is a significant function vested in Local Government Units (LGUs) under the Local Government Code of the Philippines (Republic Act No. 7160). This power is crucial as it directly affects the local community’s mobility, development, and public welfare. Below is a comprehensive legal discussion of this topic:

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I. Legal Basis

The power of LGUs to open or close roads is provided under the following provisions of Republic Act No. 7160:

• Section 21: Closure and Opening of Roads
• Section 10: Limitations on Closure of Roads

These provisions outline the legal requirements and limitations that an LGU must observe in exercising this power.

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II. Power to Open Roads

The Local Government Code grants LGUs the power to open new roads or other similar passageways as part of their general welfare functions and development programs. This includes the power to construct and maintain public roads and other infrastructure projects within their territorial jurisdiction.

• Scope of Power: The opening of new roads generally involves the planning and development of new streets and passageways for public use, which can be necessary for urban expansion, access to public services, or promoting economic development.

• Initiative Process: The LGU, through its legislative body (Sangguniang Bayan/Panlungsod/Barangay), may initiate the opening of a road. This action typically follows urban planning or development needs, or a public petition may request it.

• Funding: The funds for opening new roads may come from the LGU’s development funds, national government subsidies, or external grants, provided they are consistent with national development priorities.

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III. Power to Close Roads

The closure of roads, streets, alleys, or other passageways is more complex and subject to strict legal limitations. Closure can be permanent or temporary, depending on the reasons for closure.

1. Permanent Closure

Permanent closure refers to the cessation of a road’s status as public property and its conversion to private use or another form of public property use.

• Section 21(a) of the Local Government Code: This provision outlines the general authority of the LGU to permanently close roads, streets, or alleys provided that they are no longer necessary for public use.

• Procedure for Permanent Closure:

  1. Public Hearing: Before the permanent closure of any road, street, or alley, the LGU is required to conduct a public hearing with the residents of the community who may be affected by the closure. The public hearing ensures transparency and provides the community an opportunity to voice their concerns.

  2. Ordinance: After conducting the necessary public hearing, the local Sanggunian (Sangguniang Panlungsod or Sangguniang Bayan) must enact an ordinance to authorize the closure of the road. The ordinance is the legal instrument that formalizes the closure.

  3. Concurrence of National Agencies: If the road in question is part of a national highway or otherwise falls under the jurisdiction of a national government agency (such as the Department of Public Works and Highways or the Department of Transportation), the LGU must secure the concurrence of the concerned national agency before closure.

• Disposition of Property: Once closed, the property may be reclassified as patrimonial property, meaning the LGU can dispose of or use the property for another purpose (e.g., for housing projects, commercial developments, etc.). However, there is a restriction: the property may be sold only to the owners of the adjoining land at a reasonable price if it is no longer needed for public use.

2. Temporary Closure

Temporary closure is typically done for specific events or purposes and does not change the legal status of the road as public property.

• Section 21(b) of the Local Government Code: This provision allows LGUs to temporarily close and regulate the use of any local street, road, or alley during public events like fiestas, parades, and other similar occasions.

• Procedure for Temporary Closure:

  1. The LGU may pass a resolution or issue an executive order for the temporary closure of a road or street for a specific period.
  2. There is no requirement for a public hearing for temporary closure, but proper public notice should be provided to ensure minimal disruption to the community.

• Common Uses for Temporary Closure:

  • Community events like fiestas, parades, and other celebrations.
  • Maintenance and repair work on roads and infrastructure.
  • Public safety concerns during emergencies or calamities.

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IV. Limitations and Restrictions

While LGUs have the power to open and close roads, there are legal limitations and restrictions imposed to protect the public's interest and ensure accountability. These limitations are crucial to prevent arbitrary closures that could harm public welfare.

1. Necessity for Public Use (Section 21(a))

A road, street, or alley may be closed permanently only if it is no longer needed for public use. This criterion protects the public from being deprived of essential access routes, especially in densely populated areas where road space is scarce.

2. Requirement for Public Hearing

The mandatory public hearing for permanent closures ensures public participation and transparency in the decision-making process. The affected residents must be given a reasonable opportunity to be heard before the closure is finalized.

3. Compensation for Affected Parties

In cases where the closure of a road results in the impairment of access to a property or negatively impacts a business or residence, the LGU may be required to compensate the affected parties. This requirement stems from the constitutional provision that private property shall not be taken for public use without just compensation (Article III, Section 9 of the Philippine Constitution).

4. Restrictions on Sale of Closed Roads

Under Section 10 of the Local Government Code, if a permanently closed road is no longer required for public use, it may only be sold to owners of the adjacent properties. This limitation ensures that public property is not disposed of without due consideration of those who may be most affected by its closure.

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V. Other Relevant Considerations

1. National vs. Local Roads

LGUs only have jurisdiction over local roads within their territorial boundaries. National roads, which are under the jurisdiction of the national government, may only be closed or modified with the consent of the appropriate national agency, such as the Department of Public Works and Highways (DPWH).

2. Public Safety and Welfare

The closure or opening of roads must always consider public safety and welfare. Roads used for evacuation, emergency response, or essential public services should not be closed unless absolutely necessary, and alternative routes must be provided.

3. Judicial Review

Decisions to open or close roads are subject to judicial review. If an LGU’s action is deemed arbitrary, discriminatory, or in violation of due process, affected individuals or entities may challenge the closure or opening before the courts. LGUs must ensure that all actions comply with procedural and substantive due process requirements.

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Conclusion

The power of Local Government Units to close and open roads is a significant tool for urban planning and development, but it is subject to several legal requirements and limitations. LGUs must ensure that closures and openings are conducted transparently, with due regard for public welfare, property rights, and procedural fairness. The legal framework provided by the Local Government Code of 1991 ensures that this power is exercised within a balanced system that respects both public and private interests.

Taxing Power | Powers | LGUs | LAW ON LOCAL GOVERNMENTS

Taxing Power of Local Government Units (LGUs) Under Political Law and Public International Law

Constitutional and Statutory Framework

The taxing power of Local Government Units (LGUs) in the Philippines is derived primarily from Section 5, Article X of the 1987 Constitution, which grants LGUs the power to create their own sources of revenue. This is further elaborated in Republic Act No. 7160, otherwise known as the Local Government Code of 1991 (LGC), which provides the legal framework for the taxing power of LGUs.

The constitutional provision empowers LGUs to:

1. Exercise their taxing power directly, subject to the limitations established by law;
2. Create their own sources of revenue;
3. Levy taxes, fees, and charges as provided under the Local Government Code;
4. Allocate shares in the national taxes, through mechanisms such as the Internal Revenue Allotment (IRA), now termed as the National Tax Allotment (NTA) under the Mandanas-Garcia ruling.

Scope and Limitations of LGU Taxing Power

1. General Rule on Taxation (Sec. 129, LGC)

LGUs are empowered to create their own sources of revenue and to levy taxes, fees, and charges within their territorial jurisdictions, subject to limitations outlined in the Local Government Code and other special laws.

2. Limitations on LGU Taxing Power

LGU taxing powers are not absolute. The Constitution and the Local Government Code place various limitations on the exercise of these powers, including:

• Non-delegability: The power to tax cannot be delegated to private entities.
• Uniformity and Equality: Taxes must be uniform and equitable within the LGU's jurisdiction.
• Public Purpose Requirement: Taxes must be levied for a public purpose.
• Constitutional and Statutory Prohibitions: LGUs are prohibited from levying certain taxes, such as those explicitly reserved for the national government (e.g., income tax, customs duties).

3. Specific Taxes that LGUs Can Levy

Sections 134 to 151 of the Local Government Code enumerate the specific taxes that LGUs are empowered to impose. These include:

• Provinces:

  • Tax on transfer of real property ownership.
  • Tax on businesses engaged in the printing and publication of books and other materials.
  • Franchise taxes on businesses operating within the province.
  • Tax on sand, gravel, and other quarry resources.
  • Professional tax.

• Cities:

  • Cities are granted broader taxing powers, allowing them to levy all the taxes that provinces and municipalities can impose, including additional revenue-generating mechanisms like amusement taxes.

• Municipalities:

  • Tax on business establishments within their jurisdiction (such as manufacturers, retailers, and wholesalers).
  • Fees and charges on business registrations and services provided by the municipality.

• Barangays:

  • Tax on stores or retailers with a gross sales of Php 50,000 or less within cities or Php 30,000 or less within municipalities.
  • Service fees for services rendered by barangay officials or employees.

Procedures and Requirements for Taxation by LGUs

The Local Government Code outlines the procedural requirements for LGUs when exercising their taxing powers:

• Ordinance Requirement: Taxes can only be imposed through ordinances enacted by the sanggunian of the LGU concerned.
• Publication and Public Hearing: Before the imposition of taxes, the proposed ordinance must be published, and a public hearing must be conducted to allow taxpayers to voice their concerns.
• Tax Rates and Bases: The tax rates and bases are established by law, and LGUs may not exceed the statutory limits.

Taxation and Public International Law

Under public international law, LGUs must ensure that their taxing ordinances do not violate international treaties and obligations to which the Philippines is a party. For instance:

• Non-Discrimination: LGUs cannot impose taxes that discriminate against foreign entities or individuals in violation of international treaties or agreements.
• Bilateral Investment Treaties (BITs): Taxation measures affecting foreign investors must comply with the protections provided in BITs, such as fair and equitable treatment and non-expropriation without compensation.

National Tax Allotment (NTA) and the Mandanas-Garcia Ruling

The Supreme Court decision in the Mandanas-Garcia case significantly affected the fiscal autonomy of LGUs by ruling that LGUs are entitled to a larger share of the national taxes. The Internal Revenue Allotment (IRA) was reinterpreted to include all national taxes, not just internal revenue taxes. The implementation of this ruling, which began in 2022, increased the fiscal resources available to LGUs, thus impacting their capacity to deliver services and fund local projects, including those supported by their own taxing powers.

Collection and Remedies

1. Taxpayer Remedies:

Taxpayers who wish to contest the legality or validity of taxes imposed by LGUs can file:

• Administrative appeals before the Secretary of Finance or the Department of the Interior and Local Government (DILG), depending on the issue.
• Judicial remedies via a petition for review in courts, typically starting at the Regional Trial Court.

2. LGU’s Power to Collect:

LGUs have the authority to enforce the collection of local taxes, fees, and charges through:

• Issuance of warrants of distraint and levy;
• Civil action for collection in courts;
• Administrative remedies, including imposing interest and penalties for non-payment.

Autonomy and Fiscal Responsibility

While the taxing power of LGUs enhances local autonomy, they are also held to standards of accountability and fiscal responsibility:

• Audit and Oversight: The Commission on Audit (COA) audits LGUs to ensure proper management and expenditure of locally generated funds.
• Limitations on Borrowing and Debt Servicing: LGUs are subject to debt ceilings, and their capacity to borrow is contingent on their ability to generate revenues.

Conclusion

The taxing power of LGUs under the Philippine legal system is an essential component of local autonomy, allowing provinces, cities, municipalities, and barangays to create their own revenue sources. This power is framed by constitutional, statutory, and regulatory guidelines to ensure proper, equitable, and responsible use. However, while LGUs enjoy broad taxing powers, these are subject to various limitations, including respect for national policies and international obligations.