LAW ON PUBLIC CORPORATION Reviewer I.

General Principles; Corporations Nature; Elements; Kinds of Public

Corporation artificial being created by operation of law, having the right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence. an artificial being, invisible, intangible and existing only in contemplation of law most important power is its continuous legal identity or unity and perpetual or indefinite succession under the corporate name Classes of Corporation 1. Public formed or organized for the government of a portion of the State for the accomplishment of parts of its own public works established for the purposes connected with the administration of civil or local governments creation of the State either by general or special act 2. Private formed for some private purpose, benefit, aim or end organized wholly for profit and advantage of their own members and cannot constitutionally be granted governmental powers created for private aim, benefit or purpose of their members created by the will of the incorporators with the recognizance of the State 3. Quasi-Public private corporations that render public service or supply public wants, while purposely organized for the gain or benefit of its members Test to determine whether a corporation is public or private relation of the corporation to the State if corporation is created by the State as its own agency or instrumentality to help the state in carrying out its governmental functions, then it is public

Classes of Public Corporations 1. Quasi-Public Corporations created by law as agencies of the State for a narrow and limited purpose not possessed of the powers and liabilities of self-governing corporations powers generally relate to powers of the State in order to take charge of some, public or state work other than community government for the general welfare 2. Municipal Corporations to which belongs provinces, municipalities and chartered cities Municipal Corporations body politic and corporate, constituted by the incorporation of inhabitants of a city or town for the purpose of local government established by law partly as an agency of the State to assist in the civil government of the country, but chiefly to regulate and administer the local or internal affairs of the city, town or district which is incorporated subordinate branch of the government of the State and exercises delegated powers of the government political division of the state and variedly described as an arm of the state, a miniature of the state, an instrumentality of the state, a mere creature of the state, an agent of the state Elements of Municipal Corporation 1. a legal creation or incorporation; 2. a corporate name, by which the legal entity is known and in which all corporate acts are done; 3. inhabitants, consisting the population who are invested with the political and corporate powers which is executed through duly constituted officers and agents; and 4. territory, within which the local civil government and corporate functions are exercised Purpose of Municipal Corporations 1. to serve as an agency or instrumentality of the state in carrying out its functions of government which the state

cannot conveniently exercise, such as the collection of taxes, assessment of property and enforcement of police regulations 2. to act as agency of the inhabitants of the community in the regulation and operation of municipal franchises and public utilities, the promotion and management of their local affairs Dual Nature of Municipal Corporations 1. governmental aspects acts as agents of the state for the government of the territory and the inhabitants within the municipal limits exercise by delegation of a part of the sovereignty of the State 2. private acts in a similar category as a business corporation, forming functions not strictly governmental stands for the community in the administration of local affairs Dual Functions of Municipal Corporations 1. serves as instrumentality of the State carrying out functions of the government 2. act as an agency of the community in the administration of local affairs Kinds of Municipal Corporations 1. Municipal Corporation Proper refers to incorporated cities, towns or villages invested with the power of local legislation exists and is governed by its charter invested with power of local government called into existence either at the direct solicitation or by free consent of persons composing them 2. Quasi-Municipal Corporation another term for quasi-corporation operates directly as an agency of the State to help in the administration of public functions sometimes involuntary corporations are

only local organizations which for purposes of civil administration are invested with few of the characteristics of corporate existence local subdivision of the state, created by the sovereign legislative power of its own sovereign will and without any particular solicitation, consent or concurrent action of the people who inhabit them

Tests to determine whether a corporation is a municipal corporation proper or quasi-municipal 1. the voluntary or involuntary nature of the corporation 2. the existence or non-existence of a charter 3. whether the purpose of the corporation is solely as a government agency or one for self-government Municipal Corporations Distinguished from Public Corporations 1. all municipal corporations are public corporations but not all public corporations are municipal 2. municipal applies to incorporated villages, towns, and cities, with power of local administration CASES Feliciano vs. Commission on Audit The COAs audit jurisdiction extends not only to government agencies or instrumentalities, but also to government-owned and controlled corporations with original charters as well as other government-owned or controlled corporations without original charters. The Constitution recognizes two classes of corporations. The first refers to private corporations created under a general law. The second refers to government-owned or controlled corporations created by special charters. The Constitution emphatically prohibits the creation of private corporations except by a general law applicable to all citizens. The purpose of this constitutional provision is to ban private corporations created by special charters, which historically gave certain individuals, families or groups special privileges denied to other citizens. In short, Congress cannot enact a law creating a private corporation with a special charter. Such legislation would be unconstitutional. Private corporations may exist only under a

general law. If the corporation is private, it must necessarily exist under a general law. Stated differently, only corporations created under a general law can qualify as private corporations. Under existing laws, that general law is the Corporation Code. Obviously, LWDs are not private corporations because they are not created under the Corporation Code. Since under the Constitution only government-owned or controlled corporations may have special charters, LWDs can validly exist only if they are government-owned or controlled. To claim that LWDs are private corporations with a special charter is to admit that their existence is constitutionally infirm. The phrase government-owned and controlled corporations with original charters means GOCCs created under special laws and not under the general incorporation law. There is no difference between the term original charters and special charters.

3. In absence of constitutional restriction, legislature may create any kind of corporation it deems essential for the more efficient administration of civil government 4. Constitution mandates that no province, city, municipality or barrio may be created, divided, merged or abolished or its boundary substantially altered, except in accordance with the criteria established in LGC, and subject to the approval by a majority of the votes cast in a plebiscite in the unit or units affected 5. LGC mandates that the creation of a LGU shall be based on factors relative to viability and projected capacity to provide services which can be clearly shown by verifiable indicators Delegation of Power 1. Power to create municipal corporations cannot be delegated by the legislature to any inferior or subordinate tribunal or board in the absence of constitutional provision permitting it 2. Congress may pass a general law for the incorporation of municipal corporations giving the conditions on which they may be created, and determining whether such conditions exist 3. Legislature may prescribe a standard for its guidance and empower such agency to determine facts on which the operation of a statute may provide for the creation of such a corporation depends Conditions Precedent to the Creation of a Municipal Corporation 1. extent of area proposed to be incorporated 2. nature of the territory 3. character of the land and the uses to which it may be devoted 4. number of the inhabitants 5. density and location of the area to be incorporated Essential Requisites Necessary for the Incorporation of Municipal Corporations 1. Territory 2. Population - RA 2370 (Barrio Charter) require 500 inhabitants for the creation of a barrio 3. Charter - it invests the people of the place with the power of local government, determines the form of government of the municipal entity and defines its rights, powers and obligations. It is conferred for political purposes Note: Creation of political division should be subject to the approval by a

II. Creation and Dissolution of Public Corporations Power to Create Municipal Corporations 1. Essentially Legislative Section 68 of the Revised Administrative Code provides that the President may, by EO, define the boundary of any LGU and increase or diminish the territory comprised therein, may divide any province into one or more subprovinces, separate any political subdivision, other than a province into such portion as may be required, merge any of such subdivisions or portions with one another, name any subdivision so created, and may change the seat of government within any subdivision, PROVIDED, that the authorization of the Congress shall be obtained whenever the boundary of any province or subprovince is to be defined or any province is to be divided into one or more sub-provinces. IF THE VALIDITY OF THE DELEGATION OF POWER MADE IN THIS SECTION WERE UPHELD, there would be no longer any legal impediment to a statutory grant of authority to the President to do anything which, in his opinion, may be required by public interest. Such grant is an abdication of the power of Congress. 2. Exclusively and Practically Unlimited

majority of the votes in the unit or units affected Municipal Corporations may exist by prescription. 1. Community has claimed and exercised corporate functions 2. Knowledge and acquiescence of the legislature 3. Without interruption for a long period of time long enough to afford title by prescription De Facto Corporations - exists in fact although not in point of law because of certain defects in some essential features of its organization 1. valid law authorizing incorporation 2. an attempt in good faith to organize under it 3. a colorable compliance with the law 4. an assumption of corporate powers Attack against Validity of Incorporation 1. de Facto may be challenged by the State in a direct proceeding such as Quo Warranto corporation that is an absolute nullity may be subject to collateral attack 2. de Jure impregnable to any attack, direct or collateral 3. where an individual dealt with the corporation and acquiesced in the exercise of corporate functions, or where he has entered into a contract with said corporation, he may be estopped to deny its corporate existence 4. A person or private corporation may be precluded by laches, from attacking the validity of the incorporation of a municipality Beginning of Corporate Existence 1. Law creating the corporation - law fixes the beginning 2. Law is silent - from the moment the law or charter creating it becomes effective 3. Local Government Code - Section 6, corporate existence shall commence upon the qualification of its executive and a majority of the members of its legislative body or sanggunian unless some other time is fixed therefore by law Note: Organization presupposes necessarily the previous existence of said corporation at the time its government is organized Proof of Existence (Operative Act of the Beginning of Corporate Existence) 1. Record of Incorporation 2. By the Charter 3. In the absence of a charter, incorporation may be shown by parol evidence, at least to prove a de facto existence 4. Existence may also be shown by reputation or long use of its corporate powers or by legislative Alteration and Dissolution Nature of the power of the legislature to fix boundaries of Municipal Corporations - it is within the power of the legislature to fix, change, alter and prescribe the boundaries and territorial limits of a municipal corporation and to set up the procedure whereby said boundaries may be fixed General Rule: Municipal corporations cannot, without legal authorization, exercise its powers beyond its own corporate limits. Boundaries must be fixed, definite and certain, in order that they may be identified and that all may know the exact scope or section of territory embraced within the corporate limits and over which the local corporation has jurisdiction. Disputes as to Jurisdiction of Municipal Governments Barangays in one province Sangguning Panlalawigan of the Province where the municipalities are situated Barangays claimed by Sangguniang Panlalawigan municipalities situated in different provinces No settlement is reached within RTC of province which first took 60 days from date dispute was cognizance of the case (case shall referred to Sangguniang be decided within 1 year from start Panlalawigan of proceedings)

Disputes as to Settlement of Barangay Boundaries Within the same city/ municipality Sangguniang Panglunsod or Sangguniang Bayan No settlement is reached within 60 RTC of province or city where the

days from date dispute was referred to Sangguniang Panglunsod or Sangguniang Bayan

barangays concerned are located within 1 year from start of court proceedings

Power to Alter and Dissolve Municipal Corporations In absence of Constitutional prohibition, Congress has the absolute power to alter and dissolve municipal corporations: 1. fixing and altering the boundaries of municipal corporations 2. dividing a municipal corporations into 2 or more 3. merging or consolidating 2 or more into one municipal corporations 4. annexing one municipality to another 5. repealing its charter

5. Debts and obligations of annexed territory debts and obligations contracted before its annexation shall be assumed by the annexing territory in the absence of any provision to the contrary Effect of Division 1. Legal Existence it extinguishes the corporate existence of the original municipality 2. Property, Powers, Rights and Obligations Falling within its Territorial Limits each municipality acquires title to all the property, powers, rights and obligations falling within its territorial limits 3. Assets and Liabilities shall be determined by the law providing for the division of municipal corporations

Effects of annexation or consolidation of municipal corporations 1. Legal existence of the territory annexed dissolves the annexed territory becomes part of the annexing corporation and will fall under the jurisdiction of the latter exception: otherwise provided for by law 2. Laws and ordinances subject to all laws and ordinances by which the annexing corporation is governed 3. Right of officers of the annexed or consolidated territory to continue to hold their offices officers and employees of annexed or consolidated territory shall terminate their official relation with their offices, subject to what legislature may provide as criterion 4. Title to the property of the annexed territory annexing territory shall acquire title to the property of the annexed territory at the time of annexation without compensation unless the annexing statute provides otherwise. where the annexed territory forms part of a municipality from which it is taken, the legislature may provide for the payment of compensation for the indebtedness incurred on account of the property taken

Power to Dissolve Municipal Corporations subject to constitutional limitations and restrictions, legislature may abolish or dissolve a municipal corporation. municipal corporations are dissolved by Congress by repealing the Charter and as a result of annexation, merger or consolidation or division of municipal corporations

Limitations on the power to dissolve Municipal Corporations 1. Express provision in the Constitution prohibiting the legislature to dissolve municipal corporation 2. Provisions in the Constitution affording protection to the rights, property and contracts of the inhabitants A. Courts have no power to dissolve municipal corporations except when this power to do so is constitutionally conferred on the, Courts can, however, declare the act of the legislature creating a municipal corporation illegal. B. Non-User

1. Municipal corporations cannot bring about their own dissolution by a mere surrender of the charter 2. Municipal corporation is not ipso facto dissolved by non-use of its powers in whole or in part; or for failure for a number of years to exercise the functions of a municipality 3. In such cases, municipal corporation would be suspended for the time but would not be civilly dead 4. Failure to elect or appoint its officers does not dissolve the municipal corporation Exception: statute provides that it dissolves the municipal corporation 5. Officers do not constitute the corporation, the inhabitants residing in the locality are the corporators C. Change of sovereignty does not necessarily dissolve municipal corporations D. Change of name, boundaries or mode of government does not dissolve municipal corporations E. Absorption by annexation or consolidation will cause dissolution Dissolution

Income + Land Area Failure to specify the seat of government (of the proposed City of Novaliches, in this case) is not fatal to the validity of the law as the City can establish a seat of government after its creation.

Miranda vs. Aguirre (Conversion of Independent Component City t Component City) A plebiscite is needed for the conversion of an independent city to a component city. Though downgrading is not specifically mentioned in Article X, Section 10 of the Constitution (need for plebiscite in creation, abolition, etc.), it falls within the meaning of such section. There is a common denominator among creation, division, merger, abolition or substantial alteration; material change in the political and economic rights of the LGU directly affected as well as the people therein. It is precisely for this reason that the Constitution requires the approval of the people "in the political units directly affected" Camid vs. Office of the President Municipality of Jimenez et al vs. Baz (Creation of Municipalities through Eos) Where a municipality created as such by Executive Order is later impliedly recognized and its acts are accorded legal validity, its creation can no longer be questioned. The municipality attained de facto status at the time the 1987 Constitution tooke effect since it was not subject to the plebiscite requirement. This requirement only applies to new municipalities created for the first time under the Constitution. The municipality has attained de jure status by virtue of the ordinance appended to the 1987 Constitution apportioning legislative districts throughout the country which considered the municipality of Sinacaban part of the Second District of Misamis Occidental. LLDA vs. CA (Creation and Territorial Jurisdiction of a Quasi-municipal Corporation) The LLDA charter should prevail over the 1991 LGC. The

destroys and puts an end to the existence of the corporation territory and inhabitants are subject to such government function as the state may impose subject to constitutional limitations

Cawiling vs. COMELEC Section 10, Article X of the Constitution allows the merger of local government units to create a province, city, municipality or barangay in accordance with the criteria established (income, population, and/or land area). The only requirement as stated in the Constitution, is that the city to be created shall comply with the requirements prescribed by the LGC. Samson vs. Aguirre A proposed city should comply with the Income Requirement together with the population OR land area requirement. So, its either Income + Population OR

provisions of the LGC do not necessarily repeal the laws creating the LLDA. This is because of the Statutory Construction rules that: 1) the repeal of laws should be made clearly and expressly, and 2) a special law (LLDA Charter) should prevail over a general law (LGC). The power of the LGUs to issue fishing privileges were closely granted for revenue purposes, while the LLDA power to grant permit for fishpens and other structures is to regulate and monitor the activities in the Laguna de Bay region, which is in the nature of police power (most pervasive and the least limitable of all state powers) Finally, removal from the LLDA of its licensing authority will render nugatory its avowed purpose of protecting and developing the lake.

2) the right to be allocated a just share in national taxes, such as shares in the form of IRAs; and 3) the right to be given an equitable share in the proceeds of the utilization and development of national wealth within its territorial boundaries. Note: IRAs (internal revenue allotments) form part of the income of the LGUs because they form part of the gross accretion of funds of the LGU. IRAs regularly and automatically accrue to the local treasury without need of any further action on the part of the LGU. Thus they constitute income which the local government can invariably rely upon as the source of much needed funds. Tobias vs. Abalos (Conversion of Municipality into Highly Urbanized City) The limit on the members of the House of Representatives is not absolute; it is expressly subjected to provisions of law. Hence, the law converting Mandaluyong to a highly urbanized city validly increased the Members of the House of Representatives. The Constitution provides that "the House shall be composed of not more than 250 members unless otherwise provided by law" The inescapable import of the latter clause is that the present composition of Congress may be inceased, if Congress itself mandates through a legislative enactment. The absence on the face of the Act that minimum 250,000population requirement has been met does not invalidate the act, as Congress is presumed to have considered that fact before it passed the law. The creation of a separate congressional district for Mandaluyong is not a subject separate and distinct from the subject of its conversion into a highly rbanized city but is a natural and logical consequence of such conversion. The inhabitants of San Juan which ised to be part of the congressional districy together with Mandaluyong were properly excluded from the plebiscite on the conversion of Mandaluyong into a highly urbanized city since the matter of separate district representation was only ancillary thereto. The inhabitants of San Juan were properly excluded as they had nothing to do with the change of status of neighboring Mandaluyong.

Padilla vs. COMELEC (What LGUs should be included in the Plebiscite) The deletion of the phrase "unit or" in Article X, Section 10 of the 1987 Constitution (from its percursor in the 1973 Constitution) did not affect the ruling in Tan vs. COMELEC, where the SC ruled that where a local unit is segregated from a parent unit, only the voters of the unit to be segregated should be included in the plebiscite. In the ConCon discussions, CJ Davide provides that the plebiscite must include the entire municipality itself because it is affected. The plebiscite would mean loss of territory. When the law states that the plebiscite shall be conducted in the political unit directly affected this means that residents of political entity who would be economically affected by the separation of a portion thereof have the right to vote in the plebiscite. Evidently, what is contemplated by the phrase "political units directly affected" is the plurality of political units which would participate in the plebiscite. All political units affected includes the mother unit. Alvarez vs. Guingona (What comprises minimum average annual income law; Law creating cities must originate from House of Representative) A LGU is a political subdivision of the state which is constituted by law and possessed with substantial control over its own affairs. Availment to needed resources is effectuated through the vesting in every LGU the: 1) right to create and broaden its own source of revenue;

Mariano vs. COMELEC The boundaries must be clear for they define the territorial jurisdiction of a LGU. The LGU can legitimately exercise powers of government only within the limits of its territorial jurisdiction. Beyond these limits, its acts are ultra vires. Needless to state, any uncertainty in the boundaries of LGUs will sow costly conflicts in the exercise of governmental powers which ultimately will prejudice the people's welfare. This is the evil sought to be avoided in the LGC in requiring that the land area of an LGU be spelled out in metes and bounds, with technical descriptions. Congress has a legitimate reason for refraining from the use of the metes and bounds description or the land area, considering that territorial dispute at the time of legilation. Out of a becoming respect to a co-equal department of government, the legislators felt that the dispute shold be left to the courts to decide. They did not want to foreclose the dispute by making a legislative finding of fact of which could decide the issue. Reapportionment of legislative districts may be made through a special law, such as in a charter of a new city. To hold that reapportionment can only be made through a general apportionment law, with a review of all the legislative districts allotted to each government unit nationwide, would create an inequitable situation where anew city or province created by Congress will be denied legislative representation for an indeterminate period of time. The intolerable situation will deprive the people of new city/ provinces a part of their sovereignty. Kananga vs. Madrona (Jurisdiction of RTC to settle disputes between 2 municipal corporations) Boundary dispute between Municipality of Kanaga and City of Ormoc. RTC has jurisdiction to settle the controversy. Sec 118 of the LGC provides that the settlement of a boundary dispute between a component city or municipality on the one hand and a highly urbanized city on the other, or between two or more highly urbanized cities shall be jointly referred for settlement to the respective sanggunians of the LGU involved. Sec 118 applies to a situation in which a component city or a municipality seeks to settle a boundary dispute with a highly urbanized city. But Ormoc City is only an independent component city. It is such because its charter prohibits its voters

from voting for provincial elective officials. There is neither a declaration by the President or an allegation by the parties that it is highly urbanized. Since LGC finds no application, the Rules governing jurisdiction should be used which provides that in all cases not within the exclusive jurisdiction of any court, tribunal or person or body exercising judicial or quasi-judicial functions, RTC shall exercise exclusive original jurisdiction.

Pasig City vs. COMELEC A requisite for the creation of a baranggay is for its territorial jurisdiction to be properly identified. Hence, whether the areas shall be decided as belonging to Pasig or Cainta has material bearing to the creation of the proposed barangays. The fact that the plebiscite has been conducted for the creation of Barangay Napico does not make the issue moot and academic. In Tan vs. COMELEC, it was held that the holding of a plebiscite does not render the issue academic since the legality of the same is in issue for non-compliance with the constitutional requirements. Buac vs. COMELEC

APPLICABLE LAWS Constitution Article X Section 1. The territorial and political subdivisions of the Republic of the Philippines are the provinces, cities, municipalities, and barangays. There shall be autonomous regions in Muslim Mindanao and the Cordilleras as hereinafter provided.

Section 10. No province, city, municipality, or barangay may be created, divided, merged, abolished, or its boundary substantially altered, except in accordance with the criteria established in the local government code and subject to approval by a majority of the votes cast in a plebiscite in the political units directly affected. Section 11. The Congress may, by law, create special metropolitan political subdivisions, subject to a plebiscite as set forth in Section 10 hereof. The component cities and municipalities shall retain their basic autonomy and shall be entitled to their own local executive and

legislative assemblies. The jurisdiction of the metropolitan authority that will thereby be created shall be limited to basic services requiring coordination. Section 12. Cities that are highly urbanized, as determined by law, and component cities whose charters prohibit their voters from voting for provincial elective officials, shall be independent of the province. The voters of component cities within a province, whose charters contain no such prohibition, shall not be deprived of their right to vote for elective provincial officials. Local Government Code SEC. 6. Authority to Create Local Government Units. - A local government unit may be created, divided, merged, abolished, or its boundaries substantially altered either by law enacted by Congress in the case of a province, city, municipality, or any other political subdivision, or by ordinance passed by the sangguniang panlalawigan or sangguniang panlungsod concerned in the case of a barangay located within its territorial jurisdiction, subject to such limitations and requirements prescribed in this Code. SEC. 7. Creation and Conversion. - As a general rule, the creation of alocal government unit or its conversion from one level to another level shall be based on verifiable indicators of viability and projected capacity to provide services, to wit: (a) Income. - It must be sufficient, based on acceptable standards, to provide for all essential government facilities and services and special functions commensu- rate with the size of its population, as expected of the local government unit concerned; (b) Population. - It shall be determined as the total number of inhabitants within the territorial jurisdiction of the local government unit concerned; and (c) Land Area. - It must be contiguous, unless it comprises two or more islands or is separated by a local government unit independent of the others; properly identified by metes and bounds with technical descriptions; and sufficient to provide for such basic services and facilities to meet the requirements of its populace. Compliance with the foregoing indicators shall be attested to by the Department of Finance (DOF), the National Statistics Office (NSO), and the Lands Management Bureau(LMB) of the Department of Environment and Natural

Resources(DENR). SEC. 8. Division and Merger. - Division and merger of existing local government units shall comply with the same requirements herein prescribed for their creation: Provided, however, That such division shall not reduce the income, population, or land area of the local government unit or units concerned to less than the minimum requirements prescribed in this Code: Provided, further, That the income classification of the original local government unit or units shall not fall below its current income classification prior to such division. The income classification of local government units shall be updated within six (6) months from the effectivity of this Code to reflect the changes in their financial position resulting from the increased revenues as provided herein. SEC. 9. Abolition of Local Government Units. - A local government unit may be abolished when its income, population, or land area has been irreversibly reduced to less than the minimum standards prescribed for its creation under Book III of this Code, as certified by the national agencies mentioned in Section 17 hereof to Congress or to the sanggunian concerned, as the case may be. The law or ordinance abolishing a local government unit shall specify the province, city, municipality, or barangay with which thelocal government unitsought to be abolished will be incorporated or merged. SEC. 10. Plebiscite Requirement. - No creation, division, merger, abolition, or substantial alteration of boundaries of local government units shall take effect unless approved by a majority of the votes cast in a plebiscite called for the purpose in the political unit or units directly affected. Said plebiscite shall be conducted by the Commission on Elections (Comelec) within one hundred twenty (120) days from the date of effectivity of the law or ordinance effecting such action, unless said law or ordinance fixes another date. SEC. 14. Beginning of Corporate Existence. - When a new local government unit is created, its corporate existence shall commence upon the election and qualification of its chief executive and a majority of the members of its sanggunian, unless some other time is fixed therefor by the law or ordinance creating it.

SEC. 385. Manner of Creation. - A barangay may be created, divided, merged, abolished, or its boundary substantially altered, by law or by an ordinance of the sangguniang panlalawigan or sangguniang panlungsod, subject to approval by a majority of the votes cast in a plebiscite to be conducted by the Comelec in the local government unit or units directly affected within such period of time as may be determined by the law or ordinance creating said barangay. In the case of the creation of barangays by the sangguniang panlalawigan, the recommendation of the sangguniang bayan concerned shall be necessary. SEC. 386. Requisites for Creation. - (a) A barangay maybe created out of a contiguous territory which has apopulation of at least two thousand (2,000) inhabitants ascertified by the National Statistics Office except in cities and municipalities within Metro Manila and other metropolitan political subdivisions or in highly urbanized cities where such territory shall have a certified population of at least five thousand (5,000) inhabitants: Provided, That the creation thereof shall not reduce the population of the original barangay or barangays to less than the minimum requirement prescribed herein. To enhance the delivery of basic services in the indigenous cultural communities, barangays may be created in such communities by an Act of Congress, notwithstanding the above requirement. (b) The territorial jurisdiction of the new barangay shall be properly identified by metes and bounds or by more or less permanent natural boundaries. The territory need not be contiguous if it comprises two (2) or more islands. (c) The governor or city mayor may prepare a consolidation plan for barangays, based on the criteria prescribed in this Section, within his territorial jurisdiction. The plan shall be submitted to the sangguniang panlalawigan or sangguniang panlungsod concerned for appropriate action. In the case of municipalities within the Metropolitan Manila area and other metropolitan political subdivisions, the barangay consolidation plan shall be prepared and approved by the sangguniang bayan concerned. SEC. 441. Manner of Creation. - A municipality may be created, divided, merged, abolished, or its boundary substantially altered only by an Act of Congress and subject to the approval by a majority of the votes cast

in a plebiscite to be conducted by the Comelec in the local government unit or units directly affected. Except as may otherwise be provided in the said Act, the plebiscite shall be held within one hundred twenty (120) days from the date of its effectivity. SEC. 442. Requisites for Creation. - (a) A municipality may be created if it has an average annual income, as certified by the provincial treasurer, of at least Two million five hundred thousand pesos (P=2,500,000.00) for the last two (2) consecutive years based on the 1991 constant prices; a population of at least twenty-five thousand (25,000) inhabitants as certified by the National Statistics Office; and a contiguous territory of at least fifty (50) square kilometers as certified by the Lands Management Bureau: Provided, That the creation thereof shall not reduce the land area, population or income of the original municipality or municipalities at the time of said creation to less than the minimum requirements prescribed herein. (b) The territorial jurisdiction of a newly-created municipality shall be properly identified by metes and bounds. The requirement on land area shall not apply where the municipality proposed to be created is composed of one (1) or more islands. The territory need not be contiguous if it comprises two (2) or more islands. (c) h The average annual income shall include the income accruing to the general fund of the municipality concerned, exclusive of special funds, transfers and non-recurring income. (d) Municipalities existing as of the date of the effectivity of this Code shall continue to exist and operate as such. Existing municipal districts organized pursuant to presidential issuances or executive orders and which have their respective set of elective municipal officials holding office at the time of the effectivity of this Code shall henceforth be considered as regular municipalities.

SEC. 449. Manner of Creation. - A city may be created, divided, merged, abolished, or its boundary substantially altered, only by an Act of Congress, and subject to approval by a majority of the votes cast in a plebiscite to be conducted by the Comelec in the local government unit or units directly affected. Except as may otherwise be provided in such Act, the plebiscite shall be held within one hundred twenty (120) days

from the date of its effectivity. SEC. 450. Requisites for Creation. - (a) A municipality or a cluster of barangays may be converted into a component city if it has an average annual income, as certified by the Department of Finance, of at least Twenty million pesos (P20,000,000.00) for the last two (2) consecutive years based on 1991 constant prices, and if it has either of the following requisites: (i) a contiguous territory of at least one hundred (100) square kilometers, as certified by the Lands Management Bureau; or, (ii) a population of not less than one hundred fifty thousand (150,000) inhabitants, as certified by the National Statistics Office: Provided, That, the creation thereof shall not reduce the land area, population, and income of the original unit or units at the time of said creation to less than the minimum requirements prescribed herein. (b) The territorial jurisdiction of a newly-created city shall be properly identified by metes and bounds. The requirement on land area shall not apply where the city proposed to be created is composed of one (1) or more islands. The territory need not be contiguous if it comprises two (2) or more islands. (c) The average annual income shall include the income accruing to the general fund, exclusive of special funds, transfers, and non-recurring income. SEC. 451. Cities, Classified. - A city may either be component or highly urbanized: Provided, however, That the criteria established in this Code shall not affect the classification and corporate status of existing cities. Independent component cities are those component cities whose charters prohibit their voters from voting for provincial elective officials. Independent component cities shall be independent of the province. SEC. 460. Manner of Creation. - A province may be created, divided, merged, abolished, or its boundary substantially altered, only by an Act of Congress and subject to approval by a majority of the votes cast in a plebiscite to be conducted by the Comelec in the local government unit or units directly affected. The plebiscite shall be held within one hundred twenty (120) days from the date of effectivity of said Act, unless

otherwise provided therein. SEC. 461. Requisites for Creation. - (a) A province may be created if it has an average annual income, as certified by the Department of Finance, of not less than Twenty million pesos (P=20,000,000.00) based on 1991 constant prices and either of the following requisites: (i) a contiguous territory of at least two thousand (2,000) square kilometers, as certified by the Lands Management Bureau; or, (ii) a population of not less than two hundred fifty thousand (250,000) inhabitants as certified by the National Statistics Office: Provided, That, the creation thereof shall not reduce the land area, population, and income of the original unit or units at the time of said creation to less than the minimum requirements prescribed herein. (b) The territory need not be contiguous if it comprises two (2) or more islands or is separated by a chartered city or cities which do not contribute to the income of the province. (c) The average annual income shall include the income accruing to the general fund, exclusive of special funds, trust funds, transfers, and nonrecurring income. SEC. 462. Existing Sub-Provinces. - Existing sub- provinces are hereby converted into regular provinces upon approval by a majority of the votes cast in a plebiscite to be held in the said subprovinces and the original provinces directly affected. The plebiscite shall be conducted by the Comelec simultaneously with the national elections following the effectivity of this Code. The new legislative districts created as a result of such conversion shall continue to be represented in Congress by the duly-elected representatives of the original districts out of which said new provinces or districts were created until their own representatives shall have been elected in the next regular congressional elections and qualified. The incumbent elected officials of the said sub- provinces converted into regular provinces shall continue to hold office until June 30, 1992. Any vacancy occurring in the offices occupied by said incumbent elected

officials, or resulting from expiration of their terms of office in case of a negative vote in the plebiscite results, shall be filled by appointment by the President. The appointees shall hold office until their successors shall have been elected in the regular local elections following the plebiscite mentioned herein and qualified. After effectivity of such conversion, the President shall fill up the position of governor of the newly-created province through appointment if none has yet been appointed to the same as hereinbefore provided, and shall also appoint a vice-governor and the other members of the sangguniang panlalawigan, all of whom shall likewise hold office until their successors shall have been elected in the next regular local elections and qualified. All qualified appointive officials and employees in the career service of the said subprovinces at the time of their conversion into regular provinces shall continue in office in accordance with civil service law, rules and regulations.

1. a legal creation or incorporation 2. a corporate name by which the artificial personality or legal entity is known an in which all corporate acts are done 3. inhabitants instituting the population who are invested with political and corporate powers executed through duly constituted officers and agents 4. a place or territory within which the local civil government and corporate functions are exercised Kinds of Municipal Corporations Municipal Corporation Proper Refers to incorporated cities and towns with power of local legislation Governed by its Charter Quasi-Municipal Corporations Another term for QuasiCorporations

III. Nature of the Municipal Corporations; Concept of Local Autonomy; Devolution and Deconcentration; Autonomous Regions Municipal Corporation, defined a body politic and corporate, constituted by the incorporation of the inhabitants of a city or town for the purpose of local government thereof established by law partly as an agency of the state to assist in the civil government of the country chiefly, it is meant to regulate and administer the local or internal affairs of the city, town or district which is incorporated Nature and Status of Municipal Corporations Municipal corporations are regarded by the courts as a subordinate branch of the State and municipal administration as an instrumentality of state administration exercises delegated powers has a charter for better government of a specified area political division of a state and is regarded as an agent, instrumentality, creature of the state Elements of a Municipal Corporation

Operates as an agency of the State in administration of Public Functions Test to Determine whether MCP or QMC: - voluntary or involuntary nature of the corporation - existence or non-existence of a charter - whether or not the purpose is self-governance or a governmental agency Dual purpose and function of municipal corporations 1. agency or instrumentality of the state in carrying functions of the government which the state cannot conveniently exercise eg. collect taxes, assess property, etc. 2. agency of the inhabitants in the regulation of local affairs and operation of municipal franchises and public utilities, promotion and management of local affairs eg. maintenance of water systems, ferries Municipal Corporations Distinguished Municipal Corporations Incorporated Towns and Cities with the power of local administration Public Corporations All municipal corporations are public corporations but not all public corporations are municipal corporations Quasi-Corporations

Municipal Corporations

Called into existence either at the direct solicitation or by free consent of the persons composing them

Involuntary corporations, for purposes of civil administration. Invested with few characteristics of corporate (entity) Local subdivisions of the (state created) by the sovereign will and without any particular solicitation, consent or concurrent action of the people who inhabit them ( ) Note: malabo na my copy of the reviewerbut it makes sense naman, diba? Distinguishing feature of municipal corporations --> power of local government Dual nature of municipal corporations 1. Public acts as an agent of the State for the government of the territory ad the inhabitants within the municipal limits exercises by delegating a part of the sovereignty of the State 2. Private acts as business corporation performing functions not strictly governmental or political stands for the community in the administration of local affairs which is wholly beyond the sphere of public purposes for which its governmental powers are conferred Plaza vs. Cassion Sec. 17 of the LGC authorizes the devolution of personnel, assets and liabilities, records of basic services, and facilities of a national govt agency to LGUs. Under this code, the term devolution refers to the act by w/c the national govt confers power and authority upon the various LGUs to perform specific functions and responsibilities.

The mayor was empowered to issue the EO in order to give effect to the devolution decreed by the LGC. As the local chief executive of Butuan City, the mayor has the authority to reappoint devolved personnel and may designate an employee to take charge of a department until the appointment of a regular head, as was done by the mayor here. The Court Appeals erred in ruling that EO No. 06-92 violated respondents security of tenure as they were transferred to another office without their consent. There was no such transfer. Transfer is a movement from one position to another which is of equivalent rank, level or salary without break in service and may be imposed as an administrative penalty. The change of respondents place of work from the original CSSDO office to the DSWD building is not a transfer. It was only a physical transfer of their office to a new one done in the interest of public service. There were no new movements or appointments from one position to another.

Feliciano vs. Commission on Audit Chapter I Lina vs. Pano While lotto is clearly a game of chance, the national government deems it wise and proper to permit it. Hence, the Sangguniang Panlalawigan of Laguna, a local government unit, cannot issue a resolution or an ordinance that would seek to prohibit permits. Stated otherwise, what the national legislature expressly allows by law, such as lotto, a provincial board may not disallow by ordinance or resolution. As a policy statement expressing the local governments objection to the lotto, such resolution is valid. This is part of the local governments autonomy to air its views which may be contrary to that of the national governments. However, this freedom to exercise contrary views does not mean that local governments may actually enact ordinances that go against laws duly enacted by Congress. Given this premise, the assailed resolution in this case could not and should not be interpreted as a measure or ordinance prohibiting the operation of lotto.

In our system of government, the power of local government units to legislate and enact ordinances and resolutions is merely a delegated power coming from Congress. Ordinances should not contravene an existing statute enacted by Congress. Rationale: Municipal governments are only agents of the national government. Local councils exercise only delegated legislative powers conferred upon them by Congress as the national lawmaking body. The delegate cannot be superior to the principal or exercise powers higher than those of the latter. It is a heresy to suggest that the local government units can undo the acts of Congress, from which they have derived their power in the first place, and negate by mere ordinance the mandate of the statute. Ours is still a unitary form of government, not a federal state. Being so, any form of autonomy granted to local governments will necessarily be limited and confined within the extent allowed by the central authority. Besides, the principle of local autonomy under the 1987 Constitution simply means decentralization. It does not make local governments sovereign within the state or an imperium in imperio.

A: Yes, the Court assumes jurisdiction over the Sangguniang Pampook. It enjoys autonomy subject alone to the decree of the ORGANIC ACT creating it and the accepted principles on the effects and limits of "autonomy. PD 1618 creating the autonomous regions established "local autonomy" within the framework of the national sovereignty and the territorial integrity of the RP and the Constitution, with legislative and executive machinery to exercise the powers and responsibilities specified therein. It requires the autonomous regions to "undertake all internal administrative matters for the respective regions except to "act on matters with the competence of the national government." In relation to the national government, it provides that the President shall have the power of general supervision and control over Autonomous Regions.

Limbona vs. Mangelin Autonomy is either: 1) Decentralization of Administration - central government delegates administrative powers to political subdivisions to make local government more responsive abd accountable and relieves the central government of the burden of managing local affairs; and 2) Decentralization of Power - abdication of political power in favor of LGUs, which are free to chart their own destiny and shape its future with minimum intervention from central authorities. An autonomous government that enjoys political autonomy is subject alone to the decree of the Organic Act creating it, and accepted principles on the effects and limits of autonomy, while an autonomous government enjoying administrative autonomy is under the supervision of the national government, acting through its President. Q: Are the autonomous governments of Mindanao subject to the jurisdiction of the national court? What is the extent of selfgovernance given to autonomous governments?

Matajas vs. Pryce Municipal governments are only agents of the national government. Local councils exercise only delegated legislative powers conferred on them by Congress. The delegate cannot be superior to the principal or exercise power higher than those of the principal. In order for an ordinance to be valid it must not contravene the Constitution or any statute and it must be general and consistent with public policy. A municipal corporation owe their origin to, and derive their powers and rights wholly from the legislature. As it creates it, so it may destroy. Iloilo City Zoning vs. Gegato-Abecia Funeral The power of the HLURB to issue locational clearance is now limited to projects considered to be of vital and national or regional economic or environmental significance, as stated by the second paragraph of Section 3 of Executive Order No. 72. Clearly therefore, what were devolved to local government units were only the powers and responsibilities specifically stated in Section 1 of E.O. No. 71, as well the authority of the HLURB to issue locational clearance for locally significant projects as provided in Section 3 of E.O. No. 72. The power to act as appellate body over decisions and actions of local and regional planning and zoning bodies and deputized official of the board

was retained by the HLURB and remained unaffected by the devolution under the Local Government Code. No rule or regulation may alter, amend, or contravene a provision of law. Implementing rules should conform, not clash, with the law that they implement. Furthermore, the issuance of a permit to operate a funeral establishment and the grant of exception from the zoning ordinances is a discretionary act of the CZBAA of Iloilo. Wellsettled is the rule that mandamus may not be availed of to direct the exercise of judgment or discretion in a particular way, or to retract or reverse an action already taken in the exercise of either. In the present case, the trial court cannot substitute its judgment for that of the CZBAA of Iloilo by directing the latter to issue a permit to operate a funeral establishment in favor of respondent. All that the court can do is to see to it that the licensing authorities have proceeded according to law. Where an administrative body simply refuses to take any action whatsoever, the court may issue a writ of mandamus to compel it to take some action, but should not attempt to prescribe the action to be taken and thereby control the discretion or judgment of the board or officer.

implied in the exercise of its express powers. As a regulatory and quasi-judicial body with respect to the pollution cases in the Laguna Lake Region, the authority of the LLDA to issue a "cease and desist order" is perforce, implied. However, the charter of LLDA did not confer upon it the means directly of enforcing such an order, LLDA still has to seek for writs of mandamus and injunction from the proper courts.

LTO vs. Butuan City Under the LGC, certain functions of the DOTC were transferred to the LGUs. LGUs now have the power to regulate the operation of tricycles for hire and grant franchises for the operation thereof, subject to the guidelines prescibed by DOTC. The newly delegated powers given to the LGUs pertain to franchising and regulatory powers exercised by LTFRB and not the functions of LTO (registration of motor vehicles and licensing). The 3 inherent powers of the sovereignty may be delegated by the State to the LGUs as may be provided in the Constitution or by the Statute. All these powers are for a public purpose and are legislative in character. LLDA vs. CA (1995) LLDA has the power and authority to issue cease and desist orders under its charter and amendatory laws. While as a rule, an administrative agency only has such powers which are expressly granted to it by law, it is likewise a settled rule that an administrative agency also has such powers as are necessarily

San Juan vs. CSC (keyword: Provincial Budget Officer, appointed by the Dept. Head) Where the law is capable of two interpretations, one in favor of the centralized power in Malacanang and the other beneficial to local autonomy, the scales must be weighed in favor of autonomy. The local government official is given by law authority to recommend nominees for the position of provincial budget managers. The Department of Budget and Management, in the absence of any qualified candidate in the list of nominees, cannot substitute its judgment and appoint the official itself, pursuant to EO 112 which provides that "all budget officers shall be appointed by the Minister of Budget and Management upon recommendation of the local chief executive concerned, subject to civil service laws, rules and regulations." The reason behind this is that the Provincial Budget Officer is expected to properly administer fiscal affairs at local level, who must work within the constraints of those budgets. Basco vs. PAGCOR Municipal corporations do not have the inherent power to tax, their power to tax must always yield to a legislative act. Since Congress has the power of control over local governments and can grant the City of Manila the power to tax certain matters, it can also provide for exemptions or even take back the power. Local governments have NO POWER to tax instrumentalities of the National Government. Otherwise, its operations may be burdened by a mere local government. This doctrine emanates from the supremacy of the national government. Besides, the principle of local autonomy does not make local governents sovereign within the State, it simply means decentralization. Mactan Cebu International Airport Authority vs. Marcos The power to tax is vested in Congress, but because Article X, Section 5 of the Constitution, LGUs are directly authorized to

exercise this power. The exercise of such power may be subject to such guidelines and limitations as Congress may provide, which, however, must be consistent with the basic policy of local autonomy. Ganzon vs. CA The Constitution did not intend to divest the Legislature of its right, or the President of his prerogative as conferred by existing legislation to provide administrative sanctions againts local officials. Under the Charter, "local autonomy" is not instantly self-executing, but subject to, among other things, the passage of a local government law, a local tax law, income distribution legislation and a national representation law, and measures designed to realize autonomy in the local level. The Charter also allows Congress to include in the LGC provisions for removal of local officials which suggests that Congress may exercise removal powers and as existing LGC has done delegate its powers to the President. City of Manila vs. IAC The power of a municipal corporation are two-fold in character: 1) public, governmental or political - those exercised in administering the powers of the state and promoting the public welfare, including the legislative, judicial and political; and 2) corporate, private and propriety - exercised for the special benefit and advantage of the community and include those which are ministerial private and corporate. It may acquire property in its public or governmental capacity, and in its private or proprietary capacity. With respect to proprietary functions, a municipal corporation can be held liable to third persons ex contractu. A cemetery is a patrimonial property of the city and a breach of the contract of lease may entitle the other party to damages. The municipality is liable for torts in the exercise of their proprietary functions, the rule is that a municipal corporation can be held liable to third persons ex-contractu or ex-delicto. A municipal corporation proper has a public character as regards the state at large insofar as it is its agent in government. It also has a public character insofar as it is to promote local

necessities and convenience for its community. La Union vs. Firme Municipal corporations, like provinces and cities, are agencies of the state and enjoy sovereign immunity from suit when they are exercising governmental functions. The municipality cannot be held liable for the torts committed by its regular employee who was then engaged in the discharge of governmental functions. A provision in the charter allowing it to sue or be sued is consent to be sued. But a distinctions must be made between suability and liability. The former depends on the consent of the State to be sued, while the liability depends on the applicable law and established facts. Consent can either be express or implied. Express consent may be embodied in a general or special law. A special law may be passed to enable a person to sue the government for an alleged quasi-delict. Consent is implied when the government enters into business contracts, thereby descending to the level of the other contracting party, as also when the State files a complaint, thus opening itself to counterclaim. Lim vs. Pacquing RA409 which gave Municipal Board certain delegated powers shows that these powers are basically regulatory in nature and do not include the authority to issue franchises for gambling operations. A franchise is mere privilege especiallu in matters which are within the government's power to regulate and even prohibit through the exercise of police power. Thus a gambling franchise is always subject to the exercise of police power for the public welfare. Disomangcop vs. Secretary of Public Works and Highways Regional autonomy is the degree of self-determination exercised by the local government unit vis--vis the central government. Regional autonomy refers to the granting of basic internal government powers to the people of a particular area or region with least control and supervision from the central government. The objective of the autonomy system is to permit determined groups, with a common tradition and shared social-cultural characteristics, to develop freely their ways of life and heritage, exercise their rights, and be in charge of their own business.

This is achieved through the establishment of a special governance regime for certain member communities who choose their own authorities from within the community and exercise the jurisdictional authority legally accorded to them to decide internal community affairs. A necessary prerequisite of autonomy is decentralization. Decentralization is a decision by the central government authorizing its subordinates, whether geographically or functionally defined, to exercise authority in certain areas. It involves decision-making by subnational units. It is typically a delegated power, wherein a larger government chooses to delegate certain authority to more local governments. Federalism implies some measure of decentralization, but unitary systems may also decentralize. Decentralization differs intrinsically from federalism in that the sub-units that have been authorized to act (by delegation) do not possess any claim of right against the central government. Decentralization comes in two formsdeconcentration and devolution. Deconcentration is administrative in nature; it involves the transfer of functions or the delegation of authority and responsibility from the national office to the regional and local offices. This mode of decentralization is also referred to as administrative decentralization. Devolution, on the other hand, connotes political decentralization, or the transfer of powers, responsibilities, and resources for the performance of certain functions from the central government to local government units. It aims to grant greater autonomy to local government units in cognizance of their right to self-government, to make them selfreliant, and to improve their administrative and technical capabilities. And by regional autonomy, the framers intended it to mean meaningful and authentic regional autonomy. Substantial and meaningful autonomy is the kind of local self-government which allows the people of the region or area the power to determine what is best for their growth and development without undue interference or dictation from the central government. With R.A. 8999, however, this freedom is taken away, and the National Government takes control again. The hands, once more, of the autonomous peoples are reined in and tied up. The challenged law creates an office with functions and powers which, by virtue of E.O. 426, have been previously devolved to the DPWH-ARMM, First Engineering District in Lanao del Sur.

The office created under D.O. 119, having essentially the same powers, is a duplication of the DPWH-ARMM First Engineering District in Lanao del Sur formed under the aegis of E.O. 426. The department order, in effect, takes back powers which have been previously devolved under the said executive order. D.O. 119 runs counter to the provisions of E.O. 426. The DPWHs order, like spring water, cannot rise higher than its source of powerthe Executive.

Pandi vs. CA The official exercising supervision and control over an office has the administrative authority to designate, in the interest of public service, an Officer-in-charge if the office becomes vacant. Abbas vs. COMELEC Does majority refer to a majority of the total votes cast in the plebiscite in all the constituent units or a majority in each of the constituent units or both? o What is required by the Constitution is a simple majority of votes approving the Organic Act in individual constituent units and not a double majority of the votes in all constituent units put together, as well as the individual constituent units. Ordillos vs. COMELEC WON the province Ifugao, the only province who voted favorably for the creation of the CAR can, alone, validly constitute such Region o Nope. Region is to be made up of more than one constituent unit. The term used in its ordinary sense means two or more provinces Badua vs. CBA WON the tribal court of the CBA can render a valid and executory decision in a land dispute o The Maeng Tribal Court is an ordinary tribal court under the customs and traditions of an indigenous cultural community. It is not part of the Philippine judicial system and does not possess judicial power o The decision thus rendered is null and void. Cordillera Board Coalition vs. COA Won the Eo is unconstitutional as it pre-empts the enactment of

the organic act by the Congress and the creation of the autonomous region in the Cordilleras o Eos do not create the autonomous region, it merely provides for transitory measures in the anticipation of the enactment of an organic act and the creation of an autonomous region, hence, the EOs are unconstitutional. o Creation of autonomous regions in Muslim Mindanao and the Cordilleras contemplates the grant of political autonomy and not just administrative autonomy to these regions. APPLICABLE LAWS Constitution Article X Section 2. The territorial and political subdivisions shall enjoy local autonomy. Section 15. There shall be created autonomous regions in Muslim Mindanao and in the Cordilleras consisting of provinces, cities, municipalities, and geographical areas sharing common and distinctive historical and cultural heritage, economic and social structures, and other relevant characteristics within the framework of this Constitution and the national sovereignty as well as territorial integrity of the Republic of the Philippines. Section 16. The President shall exercise general supervision over autonomous regions to ensure that laws are faithfully executed. Section 17. All powers, functions, and responsibilities not granted by this Constitution or by law to the autonomous regions shall be vested in the National Government. Section 18. The Congress shall enact an organic act for each autonomous region with the assistance and participation of the regional consultative commission composed of representatives appointed by the President from a list of nominees from multi-sectoral bodies. The organic act shall define the basic structure of government for the region consisting of the executive department and legislative assembly, both of which shall be elective and representative of the constituent political units. The organic acts shall likewise provide for special courts with personal, family, and property law jurisdiction consistent with the

provisions of this Constitution and national laws. The creation of the autonomous region shall be effective when approved by majority of the votes cast by the constituent units in a plebiscite called for the purpose, provided that only provinces, cities, and geographic areas voting favorably in such plebiscite shall be included in the autonomous region. Section 19. The first Congress elected under this Constitution shall, within eighteen months from the time of organization of both Houses, pass the organic acts for the autonomous regions in Muslim Mindanao and the Cordilleras. Section 20. Within its territorial jurisdiction and subject to the provisions of this Constitution and national laws, the organic act of autonomous regions shall provide for legislative powers over: (1) Administrative organization; (2) Creation of sources of revenues; (3) Ancestral domain and natural resources; (4) Personal, family, and property relations; (5) Regional urban and rural planning development; (6) Economic, social, and tourism development; (7) Educational policies; (8) Preservation and development of the cultural heritage; and (9) Such other matters as may be authorized by law for the promotion of the general welfare of the people of the region. Section 21. The preservation of peace and order within the regions shall be the responsibility of the local police agencies which shall be organized, maintained, supervised, and utilized in accordance with applicable laws. The defense and security of the regions shall be the responsibility of the National Government. Local Government Code SEC. 2. Declaration of Policy. - (a) It is hereby declared the policy of the State that the territorial and political subdivisions of the State shall enjoy genuine and meaningful local autonomy to enable them to attain their fullest development as self-reliant communities and make them more effective partners in the attainment of national goals. Toward this end, the State shall provide for a more responsive and accountable local government structure instituted through a system of decentralization whereby local government units shall be given more powers, authority,

responsibilities, and resources. The process of decentralization shall proceed from the national government to the local government units. (b) It is also the policy of the State to ensure the accountability of local government units through the institution of effective mechanisms of recall, initiative and referendum. (c)It is likewise the policy of the State to require all national agencies and offices to conduct periodic consultations with appropriate local government units, non-governmental and people's organizations, and other concerned sectors of the community before any project or program is implemented in their respective jurisdictions. SEC. 3. Operative Principles of Decentralization. - The formulation and implementation of policies and measures on local autonomy shall be guided by the following operative principles: (a) There shall be an effective allocation among the different local government units of their respective powers, functions, responsibilities, and resources; (b) There shall be established in every local government unit an accountable, efficient, and dynamic organizational structure and operating mechanism that will meet the priority needs and service requirements of its communities; (c) Subject to civil service law, rules and regulations, local officials and employees paid wholly or mainly from local funds shall be appointed or removed, according to merit and fitness, by the appropriate appointing authority; (d) The vesting of duty, responsibility, and accountability in local government units shall be accompanied with provision for reasonably adequate resources to discharge their powers and effectively carry out their functions; hence, they shall have the power to create and broaden their own sources of revenue and the right to a just share in national taxes and an equitable share in the proceeds of the utilization and development of the national wealth within their respective areas; (e) Provinces with respect to component cities and municipalities, and cities and municipalities with respect to component barangays, shall

ensure that the acts of their component units are within the scope of their prescribed powers and functions; (f) Local government units may group themselves, consolidate or coordinate their efforts, services, and resources for purposes commonly beneficial to them; (g) The capabilities of local government units, especially the municipalities and barangays, shall be enhanced by providing them with opportunities to participate actively in the implementation of national programs and projects; (h) There shall be a continuing mechanism to enhance local autonomy not only by legislative enabling acts but also by administrative and organizational reforms; (i) Local government units shall share with the national government the responsibility in the management and maintenance of ecological balance within their territorial jurisdiction, subject to the provisions of this Code and national policies; (j) Effective mechanisms for ensuring the accountability of local government units to their respective constituents shall be strengthened in order to upgrade continually the quality of local leadership; (k) The realization of local autonomy shall be facilitated through improved coordination of national government policies and programs and extension of adequate technical and material assistance to less developed and deserving local government units; (l) The participation of the private sector in local governance, particularly in the delivery of basic services, shall be encouraged to ensure the viability of local autonomy as an alternative strategy for sustainable development; and (m) The national government shall ensure that decentralization contributes to the continuing improvement of the performance of local government units and the quality of community life. SEC. 4. Scope of Application. - This Code shall apply to all provinces, cities, municipalities, barangays, and other political subdivisions as may

be created by law, and, to the extent herein provided, to officials, offices, or agencies of the national government. SEC. 15. Political and Corporate Nature of Local Government Units. Every local government unit created or recognized under this Code is a body politic and corporate endowed with powers to be exercised by it in conformity with law. As such, it shall exercise powers as a political subdivision of the national government and as a corporate entity representing the inhabitants of its territory. SEC. 17. Basic Services and Facilities. - (a) Local government units shall endeavor to be self-reliant and shall continue exercising the powers and discharging the duties and functions currently vested upon them. They shall also discharge the functions and responsibilities of national agencies and offices devolved to them pursuant to this Code. Local government units shall likewise exercise such other powers and discharge such other functions and responsibilities as are necessary, appropriate, or incidental to efficient and effective provision of the basic services and facilities enumerated herein. (b) Such basic services and facilities include, but are not limited to, the following: (1)For a Barangay: (i) Agricultural support services which include planting materials distribution system and operation of farm produce collection and buying stations; (ii) Health and social welfare services which include maintenance of barangay health center and day-care center; (iii) Services and facilities related to general hygiene and sanitation, beautification, and solid waste collection; (iv) Maintenance of katarungang pambarangay; (v) Maintenance of barangay roads and bridges and water supply systems

(vi) Infrastructure facilities such as multi- purpose hall, multipurpose pavement, plaza, sports center, and other similar facilities; (vii) Information and reading center; and (viii) Satellite or public market, where viable; (2) For a municipality: (i) Extension and on-site research services and facilities related to agriculture and fishery activities which include dispersal of livestock and poultry, fingerlings, and other seeding materials for aquaculture; palay, corn, and vegetable seed farms; medicinal plant gardens; fruit tree, coconut, and other kinds of seedling nurseries; demonstration farms; quality control of copra and improvement and development of local distribution channels, preferably through cooperatives; interbarangay irrigation system; water and soil resource utilization and conservation projects; and enforcement of fishery laws in municipal waters including the conservation of mangroves; (ii) Pursuant to national policies and subject to supervision, control and review of the DENR, implementation of communitybased forestry projects which include integrated social forestry programs and similar projects; management and control of communal forests with an area not exceeding fifty (50) square kilometers; establishment of tree parks, greenbelts, and similar forest development projects; (iii) Subject to the provisions of Title Five, Book I of this Code, health services which include the implementation of programs and projects on primary health care, maternal and child care, and communicable and non-communicable disease control services; access to secondary and tertiary health services; purchase of medicines, medical supplies, and equipment needed to carry out the services herein enumerated; (iv) Social welfare services which include programs and projects on child and youth welfare, family and community welfare, women's welfare, welfare of the elderly and disabled persons; community-based rehabilitation programs for vagrants, beggars, street children, scavengers, juvenile delinquents, and victims of drug abuse; livelihood and other pro-poor

projects; nutrition services; and family planning services; (v) Information services which include investments and job placement information systems, tax and marketing information systems, and maintenance of a public library; (vi) Solid waste disposal system or environmental management system and services or facilities related to general hygiene and sanitation; (vii) Municipal buildings, cultural centers, public parks including freedom parks, playgrounds, and sports facilities and equipment, and other similar facilities; (viii) Infrastructure facilities intended primarily to service the needs of the residents of the municipality and which are funded out of municipal funds including, but not limited to, municipal roads and bridges; school buildings and other facilities for public elementary and secondary schools; clinics, health centers and other health facilities necessary to carry out health services; communal irrigation, small water impounding projects and other similar projects; fish ports; artesian wells, spring development, rainwater collectors and water supply systems; seawalls, dikes, drainage and sewerage, and flood control; traffic signals and road signs; and similar facilities; (ix) Public markets, slaughterhouses and other municipal enterprises; (x) Public cemetery; (xi) Tourism facilities and other tourist attractions, including the acquisition of equipment, regulation and supervision of business concessions, and security services for such facilities; and (xii) Sites for police and fire stations and substations and the municipal jail; (3) For a Province: (i) Agricultural extension and on-site research services and facilities which include the prevention and control of plant and

animal pests and diseases; dairy farms, livestock markets, animal breeding stations, and artificial insemination centers; and assistance in the organization of farmers' and fishermen's cooperatives and other collective organizations, as well as the transfer of appropriate technology; (ii) Industrial research and development services, as well as the transfer of appropriate technology; (iii) Pursuant to national policies and subject to supervision, control and review of the DENR, enforcement of forestry laws limited to community-based forestry projects, pollution control law, small-scale mining law, and other laws on the protection of the environment; and mini-hydro electric projects for local purposes; (iv) Subject to the provisions of Title Five, Book I of this Code, health services which include hospitals and other tertiary health services; (v) Social welfare services which include pro grams and projects on rebel returnees and evacuees; relief operations; and, population development services; (vi) Provincial buildings, provincial jails, freedom parks and other public assembly areas, and other similar facilities; (vii) Infrastructure facilities intended to service the needs of the residents of the province and which are funded out of provincial funds including, but not limited to, provincial roads and bridges; inter-municipal waterworks, drainage and sewerage, flood control, and irrigation systems; reclamation projects; and similar facilities; (viii) Programs and projects for low-cost housing and other mass dwellings, except those funded by the Social Security System (SSS), Government Service Insurance System (GSIS), and the Home Development Mutual Fund (HDMF): Provided, That national funds for these programs and projects shall be equitably allocated among the regions in proportion to the ratio of the homeless to the population; (ix) Investment support services, including access to credit

financing; (x) Upgrading and modernization of tax information and collection services through the use of computer hardware and software and other means; (xi) Inter-municipal telecommunications services, subject to national policy guidelines; and (xii) Tourism development and promotion programs; (4) For a City: All the services and facilities of the municipality and province, and in addition thereto, the following: (i) Adequate communication and transportation facilities; (ii) Support for education, police and fire services and facilities. (c) Notwithstanding the provisions of subsection (b) hereof, public works and infrastructure projects and other facilities funded by the national government under the annual General Appropriations Act, other special laws, pertinent executive orders, and those wholly or partially funded from foreign sources, are not covered under this Section, except in those cases where the local government unit concerned is duly designated as the implementing agency for such projects, facilities, programs, and services. (d) The designs, plans, specifications, testing of materials, and the procurement of equipment and materials from both foreign and local sources necessary for the provision of the foregoing services and facilities shall be undertaken by the local government unit concerned, based on national policies, standards and guidelines. (e) National agencies or offices concerned shall devolve to local government units the responsibility for the provision of basic services and facilities enumerated in this Section within six (6) months after the effectivity of this Code. As used in this Code, the term "devolution" refers to the act by which the national government confers power and authority upon the various local

government units to perform specific functions and responsibilities. (f) The national government or the next higher level of local government unit may provide or augment the basic services and facilities assigned to a lower level of local government unit when such services or facilities are not made available or, if made available, are inadequate to meet the requirements of its inhabitants. (g) The basic services and facilities hereinabove enumerated shall be funded from the share of local government units in the proceeds of national taxes and other local revenues and funding support from the national government, its instrumentalities and government-owned or -controlled corporations which are tasked by law to establish and maintain such services or facilities. Any fund or resource available for the use of local government units shall be first allocated for the provision of basic services or facilities enumerated in subsection (b) hereof before applying the same for other purposes, unless otherwise provided in this Code. (h) The Regional offices of national agencies or offices whose functions are devolved to local government units as provided herein shall be phased out within one (1) year from the approval of this Code. Said national agencies and offices may establish such field units as may be necessary for monitoring purposes and providing technical assistance to local government units. The properties, equipment, and other assets of these regional offices shall be distributed to the local government units in the region in accordance with the rules and regulations issued by the oversight committee created under this Code. (i) The devolution contemplated in this Code shall include the transfer to local government units of the records, equipment, and other assets and personnel of national agencies and offices corresponding to the devolved powers, functions, and responsibilities. Personnel of said national agencies or offices shall be absorbed by the local government units to which they belong or in whose areas they are assigned to the extent that it is administratively viable as determined by the said oversight committee: Provided, That the rights accorded to such personnel pursuant to civil service law, rules and regulations shall not be impaired: Provided, Further, That regional directors who are career executive service officers and other officers of similar rank in the said regional offices who cannot be absorbed by the local government unit shall be retained by the national government, without any diminution of

rank, salary or tenure. (j) To ensure the active participation of the private sector in local governance, local government units may, by ordinance, sell, lease, encumber, or otherwise dispose of public economic enterprises owned by them in their proprietary capacity. Costs may also be charged for the delivery of basic services or facilities enumerated in this Section. Section 133(o) - Taxes, fees or charges of any kind on the National Government , its agencies and instrumentalities, and local government units. (o) Taxes, fees or charges of any kind on the National Government, its agencies and instrumentalities, and local government units.

do not constitute a contract within the impairment clause, thus, legislature has absolute power to amend or alter at will the provisions granting rights, powers or privileges to the municipality for its own private interests constitutes a contract falling under the protection of the impairment clause. B. Form of Government unless the constitution prohibits, the legislature has absolute power to fix and prescribe the form of government for the municipal corporation any change in form of government shall not take effect until ratified by a majority of the votes cast in a plebiscite called for the purpose legislature has absolute power to deprive municipal corporations the right to the self-government because this is not inherent C. Municipal Officers control over manner of selection but not the actual selection officers performing functions of municipal concerns eg. caretakers of parks or streets D. Municipal Property complete control over the property acquired in its public or governmental capacity and which is devoted to public or governmental use but in the case of property acquired in its private power, the legislature is subject to constitutional restriction concerning the property except thru police power or by taking upon just compensation E. City Streets absolute control, public streets are not the private property of the city F. Public Cemeteries and Markets no power to require the city to transfer the cemetery to the corporation without compensation because a cemetery is within the class of property which the city owns in its private or proprietary character G. Capitol Sites subject to absolute control

IV. Inter-Governmental Supervision

Relations;

Bureaucracy;

Control

and

General Doctrine: Municipal corporations are under the control of the legislative subject only to such limitations as the Constitution may impose. This legislative control flows from the unlimited and absolute power of the legislature to create municipal corporations. Limitations on Legislative Control A. Constitutional Limitations 1. relating to the protection of private property 2. preventing the impairment of contractual obligations 3. prescribing a uniformity of law and prohibiting special or local legislation B. Limitations depending upon the nature of the rights and powers exercised by the municipality 1. public or governmental power; subject to state control 2. private or proprietary power, subject to state control Legislative Control Over: A. Municipal Charter - unless the constitution prohibits, the charter being a creation of the state may be modified, amended or repealed by the legislature when it is deemed necessary or advisable - provisions of charter relating to public or governmental matters

H. Public Utilities not absolute control because it involves exercise of proprietary functions municipal regulations over the operation of such utilities prevail as against national or state regulations I. Municipal Contracts legislature may prescribe the method of making municipal contracts or impose restrictions J. Municipal Finds and Revenues absolute control over the public revenues such as those dervied from taxation no control over public revenues which municipality or its creditors have already acquired a vested right Executive and Ministerial Supervision Over Local Governments General Supervision Over Local Governments president exercises general supervision over LGUs to ensure that local affairs are administered according to law such general supervision shall be exercised primarily through the DILG Supervision overseeing or the power or authority of an officer to see that his subordinate officers perform their duties and to take such action as prescribed by law if they should so fail to perform those duties Control power of an officer to alter, modify, nullify or set aside what a substitute had done in the performance of his duties and to substitute the judgment of the former for the latter DILG 1. confined to setting of uniform standards and guidelines 2. maintain coordinative arrangements with other departments 3. exercise supervisory authority over LGU 4. coordinate with and secure desired integration Regional offices of various departments (DOH, DOJ, COA and DECS) shall act as major points of control

departments are required to involve LGU in various substantive aspects of goverment projects and programs and to render technical and provide financial assistance to LGU national government required to encourage and take necessary measures for the transfer of responsibility and corresponding authority over service delivery functions from national to local governments

Tan vs. Perena While the sanggunian retains the power to authorize and license the establishment, operation, and maintenance of cockpits, its discretion is limited in that it cannot authorize more than one cockpit per city or municipality, unless such cities or municipalities have a population of over one hundred thousand, in which case two cockpits may be established. Considering that Section 447(a)(3)(v) speaks essentially of the identity of the wielder of the power of control and supervision over cockpit operation, it is not inconsistent with previous enactments that impose restrictions on how such power may be exercised. In short, there is no dichotomy between affirming the power and subjecting it to limitations at the same time. A municipal ordinance must not contravene the Constitution or any statute, otherwise it is void. Batangas CATV vs. CA There is no dispute that respondent Sangguniang Panlungsod, like other local legislative bodies, has been empowered to enact ordinances and approve resolutions under the general welfare clause of B.P. Blg. 337, the Local Government Code of 1983. That it continues to posses such power is clear under the new law, R.A. No. 7160 (the Local Government Code of 1991). The general welfare clause is the delegation in statutory form of the police power of the State to LGUs. Through this, LGUs may prescribe regulations to protect the lives, health, and property of their constituents and maintain peace and order within their respective territorial jurisdictions. Like any other enterprise, CATV operation maybe regulated by LGUs under the general welfare clause. This is primarily because the CATV system commits the indiscretion of crossing public properties. (It uses public properties in order to reach subscribers.) But, while we recognize the LGUs power under the general welfare clause, we cannot sustain Resolution No. 210. We are

convinced that respondents strayed from the well recognized limits of its power. The flaws in Resolution No. 210 are: (1) it violates the mandate of existing laws and (2) it violates the States deregulation policy over the CATV industry. Considering that the CATV industry is so technical a field, we believe that the NTC, a specialized agency, is in a better position than the LGU, to regulate it. The devolution of powers to the LGUs, pursuant to the Constitutional mandate of ensuring their autonomy, has bred jurisdictional tension between said LGUs and the State. LGUs must be reminded that they merely form part of the whole. Thus, when the Drafters of the 1987 Constitution enunciated the policy of ensuring the autonomy of local governments, it was never their intention to create an imperium in imperio and install an intra-sovereign political subdivision independent of a single sovereign state.

Indeed, under the general welfare clause of the Local Government Code, the local government unit can regulate the operation of cable television but only when it encroaches on public properties, such as the use of public streets, rights of ways, the founding of structures, and the parceling of large regions. Beyond these parameters, its acts, such as the grant of the franchise to Spacelink, would be ultra vires.

Zoomzat vs. People WON the LGUs can grant franchises to operate CATV systems. NO. Hence, the approval of the operation of a CATV system to Spacelink is not valid. Consequently, there was no undue preference given to it to the prejudice of petitioner. Executive Order No. 205 clearly provides that only the NTC could grant certificates of authority to cable television operators and issue the necessary implementing rules and regulations. Likewise, Executive Order No. 436, vests with the NTC the regulation and supervision of cable television industry in the Philippines. There is no law specifically authorizing the LGUs to grant franchises to operate CATV system. It is clear that in the absence of constitutional or legislative authorization, municipalities have no power to grant franchises. Consequently, the protection of the constitutional provision as to impairment of the obligation of a contract does not extend to privileges, franchises and grants given by a municipality in excess of its powers, or ultra vires Nothing herein should be interpreted as to strip LGUs of their general power to prescribe regulations under the general welfare clause of the Local Government Code. It must be emphasized that when E.O. No. 436 decrees that the regulatory power shall be vested solely in the NTC, it pertains to the regulatory power over those matters, which are peculiarly within the NTCs competence

National Liga ng mga Baranggay vs. Paredes The acts of the DILG went beyond the sphere of general supervision and constituted direct interference w/ the political affairs, not only of the Liga, but of the barangay as an institution. The election of Liga officers is part of the Ligas internal organization, for w/c the latter has already provided guidelines. In succession, the DILG assumed stewardship and jurisdiction over the Liga affairs, issued supplemental guidelines for the election, and nullified the effects of the Liga-conducted elections.) As the basic political unit, the barangay serves as the primary planning and implementing unit of government policies, plans, programs, projects and activities in the community, and as a forum wherein the collective views of the people may be expressed, crystallized and considered, and where disputes may be amicably settled. On the other hand, the Liga ng mga Barangay is the organization of all barangays, the primary purpose of which is the determination of the representation of the Liga in the sanggunians, and the ventilation, articulation, and crystallization of issues affecting barangay government administration and securing solutions thereto, through proper and legal means. The Liga ng mga Barangay has one principal aim, namely: to promote the development of barangays and secure the general welfare of their inhabitants. The Ligas are primarily governed by the provisions of the Local Government Code. However, they are empowered to make their own constitution and by-laws to govern their operations. Under Sec. 4 Art. X of the Const, the President exercises general supervision over local governments. This is interpreted to exclude the power of control. Hence, it only permits the President to wield no more authority than that of checking whether a local government or its officers perform their duties as provided by statutory enactments. Supervisory power, when contrasted with control, is the power of mere oversight over an

inferior body; it does not include any restraining authority over such body. In other words, the supervisor or superintendent merely sees to it that the rules are followed, but he himself does not lay down such rules, nor does he have the discretion to modify or replace them. If the rules are not observed, he may order the work done or re-done but only to conform to the prescribed rules. He may not prescribe his own manner for the doing of the act. He has no judgment on this matter except to see that the rules are followed. Does the presidents power of general supervision extend to the liga ng mga bgy, w/c is not an LGU? YES. However, like the local government units, the Liga ng mga Barangay is not subject to control by the Chief Executive or his alter ego. As the entity exercising supervision over the Liga ng mga Barangay, the DILGs authority over the Liga is limited to seeing to it that the rules are followed, but it cannot lay down such rules itself, nor does it have the discretion to modify or replace them. In this particular case, the most that the DILG could do was review the acts of the incumbent officers of the Liga in the conduct of the elections to determine if they committed any violation of the Ligas Constitution and By-laws and its implementing rules.

People vs. Sandiganbayan Leynes vs. COA 1.Was there a repeal of the LGC by RA 7645? 2.Was the prohibition in the NCC applicable in this case? 1.No Respondent COA was of the belief that the provision in the LGC of 1991, allowing a mun. govt to provide for addl allowances to judges stationed in their municipality, was repealed by RA 7645 (GAA of 1993). However, this is untenable. An administrative circular cannot supersede, abrogate, modify or nullify a statute. A statute is superior to an administrative circular, thus the latter cannot repeal or amend it. In the present case, NCC No. 67, being a mere administrative circular, cannot repeal a substantive law like RA 7160. Also, repeal of statutes by implication is not favored, unless it is manifest that the legislature so intended. The legislature is assumed to

know the existing laws on the subject and cannot be presumed to have enacted inconsistent or conflicting statutes. There was no other provision in RA 7645 from which a repeal of Section 447(a) (l)(xi) of RA 7160 could be implied. In the absence, therefore, of any clear repeal of Section 447(a)(l)(xi) of RA 7160, we cannot presume such intention on the part of the legislature. Moreover, the presumption against implied repeal becomes stronger when, as in this case, one law is special and the other is general. In this case, RA 7160 (the LGC of 1991) is a special law which exclusively deals with local government units (LGUs), outlining their powers and functions in consonance with the constitutionally mandated policy of local autonomy. RA 7645 (the GAA of 1993), on the other hand, was a general law which outlined the share in the national fund of all branches of the national government. 2.NO. Taking NCC No. 67 as a whole then, what it seeks to prevent is the dual collection of RATA by a national official from the budgets of more than one national agency. The other source referred to in the prohibition is another national agency. Clearly therefore, the prohibition in NCC No. 67 is only against the dual or multiple collection of RATA by a national official from the budgets of two or more national agencies. Stated otherwise, when a national official is on detail with another national agency, he should get his RATA only from his parent national agency and not from the other national agency he is detailed to. Since the other source referred in the controversial prohibition is another national agency, said prohibition clearly does not apply to LGUs like the Municipality of Naujan. National agency of course refers to the different offices, bureaus and departments comprising the national government. The budgets of these departments or offices are fixed annually by Congress in the General Appropriations Act. An LGU is obviously not a national agency. Its annual budget is fixed by its own legislative council (Sangguniang Bayan, Panlungsod or Panlalawigan), not by Congress. Without doubt, NCC No. 67 does not apply to LGUs. The Local Government Code of 1991 was specially promulgated by Congress to ensure the autonomy of local governments as mandated by the Constitution. By upholding, in the present case, the power of LGUs to grant allowances to judges and leaving to their discretion the amount of allowances they may want to grant, depending on the availability of local funds, we ensure the genuine and meaningful local autonomy of LGUs.

Villarena vs. COA Republic Act No. 6758 is a special law while Republic Act No. 7160 is a general law. A general law does not operate to modify or repeal a special law unless it has been so expressly provided. Furthermore, any apparent inconsistency should be reconciled by regarding the prohibition stated in Republic Act No. 6758 as an exception or limitation to the authority of local legislative bodies under Republic Act No. 7160. In the case at bar, the two statutes can easily be harmonized. Under the Local Government Code, local legislative bodies may provide for additional allowances and other benefits to national government officials stationed or assigned to their municipality or city. This authority, however, is not without limitation, as it does not include the grant of benefits that runs in conflict with other statutes, such as Republic Act No. 6758. The exception stated in these laws must be read together with the Local Government Code, so as to make both the Code and these laws equally effective and mutually complementary. Indeed, there are valid reasons to treat COA officials differently from other national government officials. The primary function of an auditor is to prevent irregular, unnecessary, excessive or extravagant expenditures of government funds. To be able properly to perform their constitutional mandate, COA officials need to be insulated from unwarranted influences, so that they can act with independence and integrity. As extensively discussed in Tejada v. Domingo, the prohibition under Section 18 of Republic Act No. 6758 was designed precisely to serve this purpose. The removal of the temptation and enticement the extra emoluments may provide is designed to be an effective way of vigorously and aggressively enforcing the Constitutional provision mandating the COA to prevent or disallow irregular, unnecessary, excessive, extravagant, or unconscionable expenditures or uses of government funds and properties. Osea vs. Malaya The appointment issued by President Ramos in favor of respondent to the Schools Division Superintendent position on September 3, 1996 did not specify her station. It was Secretary Gloria who, in a Memorandum dated November 3, 1997, assigned and designated respondent to the Division of Camarines Sur, and petitioner to the Division of Iriga City. Under the circumstances, the designation of respondent as Schools Division Superintendent of Camarines Sur was not a

case of appointment. Her designation partook of the nature of a reassignment from Iriga City, where she previously exercised her functions as Officer-in-Charge-Schools Division Superintendent, to Camarines Sur. Clearly, therefore, the requirement in Section 99 of the LGC of prior consultation with the local school board, does not apply. It only refers to appointments made by the DECS. Appointment the selection, by the authority vested with the power, of an individual who is to exercise the functions of a given office. When completed, usually with its confirmation, the appointment results in security of tenure for the person chosen unless he is replaceable at pleasure because of the nature of his office. Reassignment merely a movement of an employee from one organizational unit to another in the same department or agency which does not involve a reduction in rank, status or salary and does not require the issuance of an appointment. In the same vein, a designation connotes merely the imposition of additional duties on an incumbent official.

Province of Camarines Sur vs. CA LGUs have no inherent power of eminent domain and can exercise it only when expressly authorized by legislature. In delegating such power, the legislature may retain control or expose certain restraints on the exercise thereof by the local governments. The limitations on the exercise of delegated powers must be clearly expressed, either in the law conferring the power or in other legislations. Statutes conferring power of eminent domain cannot be broadened or constricted by implication. SC held that expropriation is for a "public use." Public use means public advantage, convenience or benefit which tends to contribute to general welfare and prosperity of the whole community. DAR intervention is only applicable in lands previously placed under agrarian reform program. Pasong Bayabas Farmers Associations vs. CA The power of the LGUs to convert or reclassify lands to residential lands to non-agricultural lands reclassified is not subject to the approval of the DAR. Sec. 65 of RA No. 6657 (CARL) applies only to applications by the landlord or the beneficiary for the conversion of lands previously placed under

the CARL after the lapse of 5y from its award. It does not apply to agricultural lands already converted as residential prior to the passage of RA 6657. In this case, the subject land was converted by the municipality of Carmona long before the CARL took effect.

Decentralization of Power: involves an abdication of political power, free to chart its own destiny with minimum intervention from central authorities

Drilon vs. Lim Macasiano vs. Diokno The property of political subdivisions is divided into property for public use and patrimonial property. Properties of the local government which are devoted to public service are deemed public and are under the absolute control of Congress. Hence, local governments have no authority whatsoever to control or regulate the use of public properties unless specific authority is vested upon them by Congress. It is only when the property is no longer intended or necessary for public use that it becomes patrimonial property and so municipality can use or convey them for any purpose. Ganzon vs. CA The President can still exercise disciplinary powers, notwithstanding the change in the constitutional language. In spite of autonomy, the constitution places the local government under the general supervision of the executive. The Constitution allows Congress to include in the LGC provisions for the removal of local officials, which suggest that Congress may exercise removal powers, and as the existing LGC has done in sec 3, delegated its exercise to the President. The President has the power to suspend or remove when the law grants him such power. Decentralization: devolution of national administration but not power to local levels Decentralization of Administration: delegate administrative powers to broaden base of governmental power and to make LGU more responsive and accountable and ensure their fullest development as self-reliant communities and make them more effective partners in the pursuit of national development and social progress.

Joson vs. Torres Power of the President over administrative disciplinary cases against elective officials is derived from the power of general supervision over LGUs. Power of supervision means "overseeing or the authority of an officer to see that the subordinate officers perform their duties." Supervision is not incompatible with discipline, the power to discipline and ensure that the laws be faithfully executed must be construed to authorize the President to order an investigation of the act or conduct of local officials when in his opinion the good of the public service so requires. The power to discipline necessarily includes the power to investigate complaints. AO No. 23 delegates the power to investigate to the DILG. This is not undue delegation since what was delegated was the power to investigate, not to discipline. Also, the power of the DILG to investigate is based on the alter-ego principle or the doctrine of qualified political agency. Under this principle, all executive and administrative agencies are assistants and agents of the Chief Executive, their acts performed and promulgated in the regular course of business, unless diapproved or reprobated by the President, are presumptively the acts of the latter. Berces vs. Guingona AO 18 provides that at any time during the pendency of the appeal, the President may direct or stay the execution of the decision/resolution/order appealed from upon such terms and conditions as it may deem just and reasonable. Since the repealing clause of LGC did not mention AO18, the only way that the latter could have repealed the former is impliedly. Implied repeals can only happen when there are clear inconsistencies and there is none in this case. APPLICABLE LAWS Constitution Article X

Section 4. The President of the Philippines shall exercise general supervision over local governments. Provinces with respect to component cities and municipalities, and cities and municipalities with respect to component barangays, shall ensure that the acts of their component units are within the scope of their prescribed powers and functions. Section 5. Each local government unit shall have the power to create its own sources of revenues and to levy taxes, fees and charges subject to such guidelines and limitations as the Congress may provide, consistent with the basic policy of local autonomy. Such taxes, fees, and charges shall accrue exclusively to the local governments. Section 6. Local government units shall have a just share, as determined by law, in the national taxes which shall be automatically released to them. Section 7. Local governments shall be entitled to an equitable share in the proceeds of the utilization and development of the national wealth within their respective areas, in the manner provided by law, including sharing the same with the inhabitants by way of direct benefits. Section 8. 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. Voluntary renunciation of the office for any length of time shall not be considered as an interruption in the continuity of his service for the full term for which he was elected. Section 9. Legislative bodies of local governments shall have sectoral representation as may be prescribed by law. Section 10. No province, city, municipality, or barangay may be created, divided, merged, abolished, or its boundary substantially altered, except in accordance with the criteria established in the local government code and subject to approval by a majority of the votes cast in a plebiscite in the political units directly affected. Section 11. The Congress may, by law, create special metropolitan political subdivisions, subject to a plebiscite as set forth in Section 10 hereof. The component cities and municipalities shall retain their basic

autonomy and shall be entitled to their own local executive and legislative assemblies. The jurisdiction of the metropolitan authority that will thereby be created shall be limited to basic services requiring coordination. Section 12. Cities that are highly urbanized, as determined by law, and component cities whose charters prohibit their voters from voting for provincial elective officials, shall be independent of the province. The voters of component cities within a province, whose charters contain no such prohibition, shall not be deprived of their right to vote for elective provincial officials. Section 13. Local government units may group themselves, consolidate or coordinate their efforts, services, and resources for purposes commonly beneficial to them in accordance with law. Section 14. The President shall provide for regional development councils or other similar bodies composed of local government officials, regional heads of departments and other government offices, and representatives from non-governmental organizations within the regions for purposes of administrative decentralization to strengthen the autonomy of the units therein and to accelerate the economic and social growth and development of the units in the region. Section 15. There shall be created autonomous regions in Muslim Mindanao and in the Cordilleras consisting of provinces, cities, municipalities, and geographical areas sharing common and distinctive historical and cultural heritage, economic and social structures, and other relevant characteristics within the framework of this Constitution and the national sovereignty as well as territorial integrity of the Republic of the Philippines. Section 16. The President shall exercise general supervision over autonomous regions to ensure that laws are faithfully executed. Local Government Code SEC. 25. National Supervision over Local Government Units. - (a) Consistent with the basic policy on local autonomy, the President shall exercise general supervision over local government units to ensure that their acts are within the scope of their prescribed powers and functions. The President shall exercise supervisory authority directly over provinces, highly urbanized cities, and independent component cities; through the province with respect to component cities and municipalities;

and through the city and municipality with respect to barangays. (b) National agencies and offices with project implementation functions shall coordinate with one another and with the local government units concerned in the discharge of these functions. They shall ensure the participation of local government units both in the planning and implementation of said national projects. (c) The President may, upon request of the local government unit concerned, direct the appropriate national agency to provide financial, technical, or other forms of assistance to the local government unit. Such assistance shall be extended at no extra cost to the local government unit concerned. (d) National agencies and offices including government-owned or controlled corporations with field units or branches in a province, city, or municipality shall furnish the local chief executive concerned, for his information and guidance, monthly reports including duly certified budgetary allocations and expenditures. SEC. 29. Provincial Relations with Component Cities and Municipalities. - The province, through the governor, shall ensure that every component city and municipality within its territorial jurisdiction acts within the scope of its prescribed powers and functions. Highly urbanized cities and independent component cities shall be independent of the province. SEC. 32. City and Municipal Supervision over Their Respective Barangays. - The city or municipality, through the city or municipal Mayor concerned, shall exercise general supervision over component barangays to ensure that said barangays act within the scope of their prescribed powers and functions.