IRODUCTION
The strength of free nations resides in the local communit Local institutions institutions are to liberty, what prma schools are to science; the bng it wthin peple's reah the the tach people to use and and enjo it. Without local institutions a nation ma establish a free overnment but it cannot ve the spirit o libert ansient passions mo mentar interests a chance of circumstances ma create create the exter nal rms of independence but the despotic despo tic tendenc which has been repressed into the interior of the social bod will sner or later appear on the surace exs de Tocquevle, Democracy Amerca
Bere going int a ll discussion on the Local Govement Code it is essential that basic denitions and undamental prnci ples on the subject be revewed 1.
Political law, def defined
Political law is that branch of public law which deals with the oranization and operation of the ovement orans of the state and denes the relations of the state with the inhabitants of its i ts ter rtor (People v. Perecto, 43 Phil. 887) 2
Poli olitica ticall law aw its its sub subiv ivisio isions ns
Political la embraces: (a) (a)
Con Constit stitu ution tiona al law law
(b) (b)
Admin dminis istr trat ativ ivee law law
(c
Law Law of of Public O Oces and and
(d) (d )
Law of Public Corporations 1
2
THE LOCAL GOVERNMEN CODE OF 1991 Anotaed
3.
Corporation de defined
A corporation corporation is an articial being created by b y operatio operatio oflaw, havg the rght of successon ad the powers attrbutes ad pro p ro eies exressly authorzed by law or icident to its eistee. (Sec. 2, Corporation Code) 4
Classes of of Co Corporations
Corporations are classied into ubli and private. Some au thortes clude quasi-publi corporatios in the classiatio 5
Publ Public ic Corpora porati tio on, defin fined.
A pubc orporation s one reated by the state ether by gen eral or special spec ial act a ct r urposes ofadmnistratio ofloa governmet or rederng sere in the publc interest It s one rmed or o r organied r the govemet of portio of a state Sc 3 Act No No 1459; it s created by the state as its own agey r the acoml a comlishme ishment nt of arts of ts own ow n ublic works. (LLIOT, MN ORP. p. 1.) 6.
Priva ivate Corporation def defined
ur old orporation Law dees prate coporatios as "those rmed r some rivate purpose beet am or ed Sec t No 49 7.
Public and Priate Corportions distinguished.
ubli corporations are established r urposes coeted wth the administration of il or local goeents; while pvate cor poratios are created r private aim gain g ain or beets of its mem bers ublc orporatios are creatios ofthe ofthe state either by genera or special act while prvate cororatios are reated by the wl of the incorporators with the recogiance of the state ublic orporatios are inoluntary i noluntary onsequence of the legs l egs latio whle priate cororatio osttute a oluntary agreement by and among ts members.
2
THE LOCAL GOVERNMEN CODE OF 1991 Anotaed
3.
Corporation de defined
A corporation corporation is an articial being created by b y operatio operatio oflaw, havg the rght of successon ad the powers attrbutes ad pro p ro eies exressly authorzed by law or icident to its eistee. (Sec. 2, Corporation Code) 4
Classes of of Co Corporations
Corporations are classied into ubli and private. Some au thortes clude quasi-publi corporatios in the classiatio 5
Publ Public ic Corpora porati tio on, defin fined.
A pubc orporation s one reated by the state ether by gen eral or special spec ial act a ct r urposes ofadmnistratio ofloa governmet or rederng sere in the publc interest It s one rmed or o r organied r the govemet of portio of a state Sc 3 Act No No 1459; it s created by the state as its own agey r the acoml a comlishme ishment nt of arts of ts own ow n ublic works. (LLIOT, MN ORP. p. 1.) 6.
Priva ivate Corporation def defined
ur old orporation Law dees prate coporatios as "those rmed r some rivate purpose beet am or ed Sec t No 49 7.
Public and Priate Corportions distinguished.
ubli corporations are established r urposes coeted wth the administration of il or local goeents; while pvate cor poratios are created r private aim gain g ain or beets of its mem bers ublc orporatios are creatios ofthe ofthe state either by genera or special act while prvate cororatios are reated by the wl of the incorporators with the recogiance of the state ublic orporatios are inoluntary i noluntary onsequence of the legs l egs latio whle priate cororatio osttute a oluntary agreement by and among ts members.
INTRODUCION
A.
3
Decided Case
1. The Arti Articl cles es of of Incor Incorpo pora rat ton on seek seekn ng g to inco incorpo rpora rate te a barro s unlawul r beng volative of the Muncpal Code. UNCION v. YITE, 28 PHIL. 67, 9/24/14 Moreland, J. Facts: hi i i bi wi f mnmu mp h hif f h iii f hi f h xui Buu i i f ipi w u u i f f Held W f h pii h i i h uy f h hif iii wh i p gii mi whh h bj f h pi p i h i w W bi h impy bu h i f ipi p i m h mu p g pi whih w giz m uw imm pup h pup i h i f ipi i "h h b f h pi i ) gi gu h mgm pii mii mii whih h b u S ig i ihbi h h mm ppy f i ihbi bgg h wh b uh; b) u h u pu f i ppy h g f h barrio." h pup i pp i mk h bi pi whih wi bm h w f h h igh f mii y ppy bgg h muiipiy f ig u wihi h imi f h barrio hi i uw big y h pi i f h uiip whih gi h muiipiy juiii h barros wihi hi pi ii Jugm ARD
8.
Publc Co Corpora orations ions,, cl classes. They are:
9.
(a)
Quas-public corporatons, which are created as agences of the state r narrow and lmted purposes without the powers and liablities liabl ities of selgovening corporatons. corporatons. They render publc servce or supply public wants.
(b) (b)
Mun Munci cip pal corp corpo orat ratons ons..
Munic unicip ipa al Cor Corpora pora on on,, def defne ned. d.
A municpal corporation is a "body poltc and corporate con sttuted by the incorporation of the inhabiants r purposes of lo
THE LOCAL GOVERNMENT CODE OF 1991
4
Aotated
cal govement govement thereof; it is established by law partly as an agency o the state to assist in the civil government o the countr, but chiey to regulate regulate and administer administer the local loca l or internal aairs o the cit town to wn or stict which is incoporated." (DIN, M CO VL 2, pp 58-59 e term municipa municipa corporation has gradually ven way to the more recent term local govement govement whic has a substantially substantially iden cal dention as a s that o the mer unicipal coorations ad local loc al govements are therere one and the same entit 10.
11 11
Muni Munici cipa pall Corp Corpor orat atio ion, n, ele eleme ment nts s
a
A legal creation or incorporaton
b)
A coporate name by which the aticial personali or legal enti is known and in which all corporate acts are done;
c
Inhabitats constituting the population who are invested wth the poltical and corporate power which e executed though duly constituted ocers and agents;
d
A place or territory witn which the ocal iil Gove ment and corp co rpora orate te uncti un ctions ons are eerci ee rcised sed (URE S N p 29 citing QU M I pp 289290
Loa Loall Gove Govern rnme ment nt def defin ined ed
The tem ocal Govement rers to a political subdivision o a nation or state which is constituted cons tituted by law and has substantial control o local aairs P aw enter onstitution evision Project Part II p 72 citing Y IMPROVEMENT OF LOC GON MENT AD AMNSN O DEOPMT UPOSE.)
12
oal Government its dual personalty
oca government has a dual personalit namely: 1 public or governmental and 2 pvate or corporate In its public or goveental capaci it i t is an agent o the state r the govement o the terito and the inhabitans thin the local govement limits In its private capacit it acts in a similar catego as a business corporation peroming unctions not strictly
INTRODUCTION
5
govenmental o poltical. In its govenmental chaacter, chaacter, it i t execises by delegation delegation a pat of the soveeignty of the state Eamples of the st class ae: a e: a) establishment and opeation of schools; b) adoption of egulations against e and diseases and c) pesevation of the public peace etc Examples of the latte class ae a) establishment of makets and slaughte houses b) opeation of telephone system and c) opeation of seice etc Municipal copoations peom twin nctions Fistl they seve as an instumentality of the State in caing out the nc tions of goveent Secondl they act as a s an agency of the commu nity in the admistation admistation of local aais aais t is in the latte chac te that they ae a sepaate entty acting thei own puposes and not a subdivision of o f the State (Surigao Electric Co., Inc v Muicipality of Suigao, 24 SR 898.) 13. 13.
Local Local Gover Governm nment ent,, as an an agenc agency y of of the the Sta State te
A
Decded Cases
1 A muni munici cipa pall cop copo oat atio ion n (loc (local al gove govee ent nt)) is me meel ely y an agency instituted by the State the pupose of caying out in detail the objes of goveent goveent t t is essentially essentially a evocable evocable agen It has no vested powes o anchises It is subect to he contol of the legslative (Coyle Gr 30 Atlatic 728) COE v. GRY, 30 Attic 728 Facts: n w ped by he leglure eblhg bord of wer ommoner r r he y of Wlmngon Delwre kng he onrol of he werwork of munpl orporon om he myor nd plng uder h of he pe bord I onuonly w queoned Peoner onend he wrwork pre prop ery of he publ orporon nd gurneed y he due proe of lw lue; nd h proeon exemp om regulon nd onol of he Se of he Leglure Leglure onuonl onuonl munpl opo H The ron beng merely n geny gen y of he e he leglure my hnge h nge nel goernmen pleure unpl orporon doe no hold propery propery lke weork pre orporon orporon o o o pre en he leglu ro odng he mngemen hereof wl There no eron of he proper om orgnl ue
6
THE LOCAL GOVRMENT CODE OF 1991 Anoated
2. The present City of Manila is not liable nder the contrat entere into by its predecesso, the Old Auntamiento because it is not its sccessor and such obligations are not incurred by the present ci AGUO v. CI OF M 9 Ph 518, 1/9/0 Johnson, J.
Facts: Pni udo w he ueor of Muoz. Muoz enered no ern onr wih A ynmieno de Mn r he e of o mouing o P3,07040 nd depoied wih Aunmieno Pl920 rny r he men of he onr I w dmed h Muoz hd we nd ruy ed he erm nd requremen of he onr nd ihy dihged he obigon onined r men of uh obgion Muoz mde due demnd in he mnner required by w nd by he erm of he onr r he pymen of o nd reovery of depoi ong P56140 whh um unmieno did no py In ug 1898 A ynmeno w rby upended nd he Miiry Governmen ueeded i poeng i propere In ebrury 1899 Muoz rnfered hi righ nd inere o d um uno pin gudo who vrou ime mde due demnd r d um upon Miiry veen nd he preen ueor Ciy of Mni whih demnd w no pid Pin hereer ommend h ion in he Mn CI gin he Ciy of Mn r he pur poe of reoveing om he iy he um of P56140 wh inre nd o i our rendered judgmen gin dendn r he um pu inere H e iue in hi e wheher or no he preen Cy of Mni i ibe under he onr r he obigon reed heren by unmeno i ueor nd f i wheher e pn enied o wr of exeuion gin ny of he propery of he preen iy r he purpoe of ing he bii The od A nmeno he onr hemeve how n mking he onr d no ree or gen; bu i n orpo re pi ubje o he iion impoed by he w So h when i pnp he pnh oveen n he Phiippne eed o hve onro over h errory gen nudng he A ynieno o ee d o exi hough he preen y gove men exere ein power wh were ery exeed by he A nmieno i i no in w he ueor of he me nd nno be hged wih he obigon of he r The C of Mni here re i no ibe r he obigon reed by onr exeued by
TRODUCION
7
the Auntamiento r the were never incurred b the present city. For the reason that the cit is not liable upon the contract, no question as to the rght to take out a writ of execution against the prop ert of said cit can arse in the present case (N.B This was ove ruled by US Supeme Cut, ee Vl Ct f Mnl n)
3. The new City of Manila is liable to its credtors r obligations incurred by the old City of Manila For the mere change of the soveregn authority does not necessarily dissolve the municipal corporation nder the rmer sovereig L CIY O L 42 P 935 4/3/11 L J. : Bere the cession of the hilippines to the Uited States b the treat of aris Vlas was creditor of the i of Maila When the it of Manila was incorporated under ct No 8 of the hilip pine ommission he brought an action against the it of Manila to recover the sum due o him s a matter of dense it was claimed that the old ct of Manila whch incurred the indebtedness had ben dissolved b the change of sovereignt and that b the incorporation of the new cit under ct No 8 the liabilit of the old cit has alread been extingshed H The jurstic identit of the corporation has in no wise been acted and in law the present cit is in ver legal sense the succes sor of the old such it is entitled the propert and propet rghts of the predecessor corporation and is in law subject to all of its li ablties The mere change of te sovereign authort goveing a coun tr does not necessaril dissolve the muncipal corporation organzed under the rer sovereign he argment that b the change of sov ereignt the old cit was etingished in the same manner as the agent die upon the death of the pncipal loses sight of the dual character of municipal corporations corporate and govemental nl such governmental nctions as are incompatible with the present sovereit ma be considered suspended The jurstic identit of the corporation is not aected b the change of sovereity The it o Manila stands liable to its creditors
4 A nicipalit, the peblo of Catbalogan as a jridical person may acquire patroial property under ts own inde pendent personality and not as a ere agent of the Central Gv erent
THE LOCAL GOVERNMENT CODE OF 1991 Annotated
8
MNICIPITY OF CABOG v. DIRECTOR OF LDS, 17 hil 216 10/17/10 Tores J.
The Municipal President of the pueblo o Cablogn pplid wih he Cour o Land Reisrion sg r he registraion of a parce o lnd which the cou-house occuies, with the sid pueblo s solue owner. The AtoeyGeneral opposed
Facts:
The question in this cse is wheher the lo occupied by the couthouse of the Muicipliy o Ctbloga Sr belongs to the said municipliy or is a stae ld under the control of the Insular oveent
Held:
I a unicipi s a juridical person susceptible of righs and duies can cuire all kinds o propery such s tha tered propios or patrimoniles, i undoubdly erts the designation o owner with respect to he propery which y hae been awrded to it s its own The exercise on the par of the unicipaliy o right o owership in ln vested wth he charctr o coon (propio) or patrionial lnd is vey distinct o the dinistrtion proceedings or cts e ecuted by i and o he conracs ade by he sae inasuch s in the eercise of he ght of ownership in the property o he eclu sive ownership o the unicipalit ts entity has an independen personaliy of is own nd does no ct as a ere gent of the Cen trl oveent; wherere the decision rendered in Aud u. City of Manila is no ppicble here
14.
Local Governments, powers and functions.
A
Sources of Power of Local Govements.
B
1
The 1987 Constitution; its provsions in local govern ments
2
The Local Government Code of 1991 and
3.
ll estin laws, acts decrees executive orders procla ations and administrative reglations not inconsistent with the 198 Constitution and the Local Goveent Coe o 1991
Classiation of Loal Govenment Powes
1
Express powers - those gated in express words
2
Iplied powers those necessa or iry impied in or icident to the powers epressly anted
INTRODUCION
3.
Iherent powers - those essentil to the declred objects and pupses f the coporatin not simply cnvenient but indispensable such as: ) b) c) d) e)
C
9
t hve perpetul succession; to sue nd e sued to purchase, hold nd sell prpety r the benet f the municipl corporton t hve common sel to mke bylaws and ordinances r the government of the mniciplity
4
Legislative and executive powers a) ordinance to make lws ) rdinance t execute laws
5
Intramurl and extrmurl powers ) thse exercised within the crporate limits of municipl corporation b) hose exercised wthout like those gven· r the pr tection of water suppl preventin of nuisance and also r police rces
6
Govemental nd micipal powers a) administer the pwers f the state and promting the pulic welre within it ) thse r the special enet nd advantge of the urban cmmit Amng the governmental pw ers are the pwer f eminent dmain of txatin t pro mote public educatin to maintain re department r police rce Among he municipal pwers are erection f waterworks gas works power electric plnts m wich prts may derived by the micipalit
7
Mndato nd discretinr powers a) thse the ex erise f which can be required f municipl crporatins ) thse which it may perm or not depending upon its udgment nd discretion
Execution of Municpal Powrs.
When the chrter or sttute specically prescribes the mn ner by which the cetain crporte acts are to be executed and pints out the agency r cers who re t execute them n other methd f prcedure may be used in the premises But if the lw is silent on the mtter of exercse the crprate authities are necessaily clothed wth discretion in determining the sme l the methods f executing such acts s may be reasonaly inrred re deemed
10
THE LOCAL GOVRNMNT CODE OF 1991 nnotated
granted, provided that the action taen is neither arbitrary nor capricious and must be in good ith. Unless restrained by law a unicipal corporation has the discretion to select the means and method of exercising its powers proded that the eans thus selected must be reasonable In ing the selection the coon council ay proceed either b way o ordinance or resolution D.
Decided Case.
1 3120 is constitutional and is a anistation o the leg islatures right to dea with the state proper which includes those held b unicipal corporations in its public or governmental capa cit CO VEGAS 55 SA 656 /8/74 Teehnkee, J.
F: N M LT bona fde j ' R k M q H T q a T T 15.
Local Governments, rules regarding their properties
A. Introductin
rt 3 o the ew ivil ode provides
INTRODUCON
1
"e property of provnces, cities and mucipaliies s dividd to rpy r publ ue an patrimon proert. (343) t. 424 f h sa Ce prds: Prpery r publ us i te pove itis d piie nss f the vi r it streets munip 8reets the squres utans pubc wate pomenades and pu wrks pubic i pd r b aid provs cies or mu nplites Al othr property posesd b n o he s ptrimol an al b gond by Cod withu pre judc h priss pl aw B.
Kinds of Properties of Local Government Units.
Pre iies pae ar he w nds propie name 1 rt r pl u; d patrimnal prper Proprt r pub ue ns o 1 Proval munip or bga ro r rs squres untins pul waters nd prmendes Te op u y eeybo nd ublic wk r pulic sri pid r by sad uit. Exal ar proicil it uncial or barangy buildig water stem. he a nt be eel used by eeyody All the popert r ptnl ppertes of th ut C
Alienation of the Properties o f Local Govemet Unit
1
Poper r pubic se cano e alentd as sc and ay e aud presipton. (Mun of Oas v Ro, 7
Phil 20)
Ptrinl pertis m b ited d acquied b prerpti Mun of Oas v Roa supra
I City of Mania v Garcia 19 S 413 qutts ne a pece f land ngig o e y Manla and e ecured er its r leae tcs om he a he land ltr on w eded h ps the lmntary scho d ant o .
12
THE LOCAL GOVERNMNT OD OF 1991 Anotated
The Supreme Cour red that the squatters never became tenants of the land. The property being a public one, the Manila mayor did not have authorty to ive permits or execute leases wrtten or oral with dendants. Said permits or lease contracts are void In Muyot v. De la Fuente, GR No L-6534 48 OG 4860 it was held that the City of Manila could not lease a portion of a pub c sidewalk on Plaza S Cuz being likewise beyond the commerce of an In Espiritu v. Municial Council of Pozzorubio 102 Phil 866, the Supeme Cout declared: There is absolutely no question that the town plaza cannot be used r the construction of market stalls, specially of esidences and that such structures constitute a nuisance subject to abatement accordng to law Town plazas are properies of public dominion o be devoted to public use and to be made available to the public in eneral They are outside the commerce of man and cannot be s posed of or ven leased by the municipality to pvate parties" In Villanueva v Casaeda Jr, 154 S 142 the pronounce ments in the above cases were cited when the Supreme Court uled that the place occupied by the stalls rming a taliaa of the ven dors/petitioners is a public plaza and as such beyond the commerce of man and cannot be the subject of lease or any other contractual unertaking The removal of the stalls was ordered D.
Proerties Intended fo ublic Use or Service
In the case of Caitulo v Aquino 53 OG No 5 1477 the Su preme Cour ruled that under Art 424 NCC it does not matter that the property is not actually devoted r public use or r some pub lic sevces If the property has been intended r such use or sev ice and the city has not devoted it to other uses or adopted any measure hich amounted to ihdraal thereof om public use or sevice, the same remains property r public use In this case where the lot was donated to the City of Manila by Sulucan Development eclusively r street purposes and plin tis Capitulo et al occupied said lot and later secured lease con tracts on said lot om the city mayor the said occupation and lease contract are illegal because even if not yet developed and opened r publc use it remains property r public use not subject to ap propriation
TRODUCTION
E
13
Wthdwal of Roads or Plazas om Publc Use.
See comments under Section 21 on Closre and Opening of Roads. F.
Decided Case
1 The 24 lots owned by the Province of Zamboanga in its public and overnmental capaci is subjet to the control of Congress Howeve, the 6 remaining lots which are patrimonal prop eie mut be paid jut ompenation PROVCE OF ONGA DEL NORT v. CI OF ZBONGA 22 SC 1334 3/28/68 Bengon, J J. Facts: The munipliy of Zmbong ued o be he provinil pi l of Zmbong Proine. In 1936, Commonwelh A 39 onvered i ino iy Se 50 provded h properie whih he provne hll bndon w be uired nd pd by he Ci of Zbong pre ed by he Audior-Generl The properie onied of 50 lo nd ome blding The iy pid P47000 of he P704000 However in 1961 RA 3039 mended Se 50 proidng r he quiiion of he properie "ee of hrge ovine led ui nd pryed r RA 3039 o be delred unoniuionl r depring plin of propery wihou due proe of lw nd ju ompen ion The CI delred RA 3039 unoniuionl nd held he 50 properi prive properie of he prone of Zbong Weher he 50 propere re pub propery or prive prop ery of he prone
Held: On control by State of Popeties of Locl Govement Units. The prniple i a.
b
2.
If he propery i owned by he munipliy in i publi nd governmenl pi he propery i publi nd Congre h bolue onrol over i f he propery i oned in i prive or propriery pi hen i i primonil nd Congre h no bo lue onrol The muniipliy no be deprived of i whou due proe nd pyen of u ompenion
Whih of 'o Nos M Be Used in Clssifying the operies Held.
Cliion Under he Civl Code
THE LOCAL GOVERMNT CODE OF 991 Annotaed
14
Artcles 423 d 424, NCC classi property of provinces cities and muncpaltes nto property r publc use and patrmonial propery. Applyg ths nor all the 50 lots and buldngs thereon except te two lots used as Hg Scool playounds could be considered as patrioia propeties of the rer Zaboanga provnce Even the capitol site, the hospital and leprosaru stes, and the school sites will be consdered patrmonial r they are not r publc use They would ll under the phrase "pblic works r publc sevce r it has been held tat under the ejusdem generi rule, such publc works ust be r ee and indscrmnate use by anyone just like te preceding enumerated propeties n the rst paraaph of t 24 (Cebu City v. NSA 107 Phil. 112) Unlike n the Cvl Code classcaton regarding tate properties, propeties r pubc servce in the uicipalities are not classed as public b
Classicatio Under the Law of Municipal Coporatons
pplg the norm obtainng under the prncples costtutng the law of Mucpal Corporations all those of the 0 propertes in queston which are devoted to public sevce are deemed public Under ths norm, to be consdered publc it is enough that the propety be held and devoted r governmental puposes lke local adnstraton public education, public helth etc Followng this classicatio R 3039 whc provides that a properts of the mer province of Zamboanga and located wthn te Cty of Zamboanga are hereby transrred fre of charge, n vor of the sd City of Zamboanga s valid sor as t aects the lots as captol stes and ts grounds hosptal and leprosaru stes and te hgh school playgroud stes totaling 2 lots, snce they were held by the rer Zaboanga province in ts governmental capacity and therere subect to the absolute control of Conress But R 303 cannot be applied to deprve Zaboanga provnce of its share in the value of the 26 reanng lots wch are patrmonial propeties snce they are not beng utlzed r distctly governmental purposes 3
Conclson Reahed by he Spe Cot.
The upree Court applied the latter nor or classicatio statng: The controversy here is ore along the doans of te law of Munipal Corporatons than along that of Civil aw
INTRODUCION
15
(Note: auhr agrs wh h rsul rachd by h dci sin. Hwvr, h nds i unncssary singuish bwn h w nrs discussd by h dcisin abv. is qui clar frm ricl 424 ha prpry r public us in h prvnc ciis and municipaliis nsis f 1) prvncial ciy r municipal rads r srs c; and 2) publc wrks r public srvic ublc wrks r public srcs" alhugh n r and ndiscrimina by vyn ar hrr cnsidrd as prpry r public us Th phras is placd ghr in h sam paragraph n prpis r publc us d disinc m h h paragraph dal ing n parimnial prpr nd crainly h 24 prpris abv mnind e.g., Capil l and building hspial l and building c ar public wrks r public srvic and ar hrr cnsidrd as r public us Hnc Cnss has cnrl vr hm G.
Decided Case.
1 Brach f a cnracual bligain bwn h Ciy f Manila and plaini invlving prpry which is parmnial in characr nils h lar daags CIY OF M v. INEDITE APPELLTE COU 179 SCR 428, /589 Paras, J. Facts: S D
S D I 97 0 J 978 x v V 97 A S D I U P -
16
THE LOCAL GOVERNMENT CODE OF 1991 Anotated
ity with la, and its proper corporate name. It may sue and be sued and contract and be contracted with Its powers are twold i charater; pubic govemental or political on one had and coporate private and propetay o the oer I McQuillin o Municipal Corporation the rule is stated thus: "A municipal corporation proper has . a public character as reards the state at large insor as it is its agent in goverment and private (so called) insof as it is to promote local ecessities ad covenieces r its own communit (Torio v. Fontanila, 85 SCR 599 [1978]). I orio v. ontanill supr the Court declared that with re spect to propietary nctios the settled le is that a municipal cor poratio can be held liable to third persons ex contactu Municipality of Moncad v anjuigan et al, 21 Phil 184 1912) or ex delicto endoz v. de Leon 33 Phil 508 1916 Under the regoig cosideratios ad the absece o a special law the North Cemete is a patrimonial property o the City o Ma nila which was created by resolution o the Muncipal Board o Augst 27 1903 and Januar 7 04 The administration and ove ment o the cemetery are under the City o Health Ocer bid Sec 3189), the order and police o the cemete Ibid Sec 319 the ope in o aves iches o r tombs the· euming o remains and the puricaton o the same bid Sec 327 are under the chare and responsibility o the superintedent o the cemeter The City o aila rthrmore prscrbes the procedure and gidelines r the use and dispositions o buri lots and plots wthin the North Cemetery through Admiistratie Order No 5 s 195With the acts o dominio there is therere no doubt that the North Cem etery is within the lass o property which the City o Maila owns in its proprietary or prvate character Furthermore there is no dispute that the bural lot was leased i vor o the prvate respondets Hece obliatio arisin om contracts have the rce o law between the cotractin parties Thus a lease contract executed by the lessor ad lessee reains as the law between them Henon v Intermediate Appellate ourt 148 SC 11 1987 Therere a breach o contactua povsion entitles the other party to damaes even i o penalty r such breach is prescribed in the contract Boyw v Interphil Promotion Inc 148 S 636 1987 Under the doctine o repondeat uperior oio v Fontnilla, upra) petitioer City o Maila is liable r the tortious at ommit ted by its agents who filed to veri and check the dratio o the contract o lease.
INTRODUCTION
H.
17
Other Classification Based on Mode of Acquisiton. Popeties of loal govement units may also be classied as:
1) those acquied by the units by their own nds in their propieta apait. These may be disposed of by the units as they please 2 those acqred by the units in its govemental apacity suh as those acquied by sucession or by donation om the State o National Govenment or om nds eceived om the State hese ae held in tust by these units the State, the benet of its inhabitants. These annot be sold by the loal govenment units A municipality annot aque a lot tough presription since said lot has an owner and the owner an bing an acton to ecover possession at any time because possession is one of the attibutes of ownership of the land (Muncipalty [now cty] of Legasp v L Ammen Tanspotaton C Inc, 26 SCR 218) n the absene of title deed to any land claimed by the ity of Mala as its own showing that it is acqured with its pivate o corpoate nds the pesumption is that suh land ae om the State upon the eation of the munipait (Salas v Jarenco 45 SA 743.) Regardless of the sore o lassiation of land in the posses sion of a municipalit exceptin those aquired with its own nds in its pvate or corporate apait suh propety is held in trust the State the benet of its inhabitants whethe it be gov emental or propieta purposes bid) I
Popertes for Publ Use Not Subject to Levy or Executon
Poperties of a munipalit whether eal o personal whih are neessa r publ use cannot be attahed and sold at exeu tion sale to satisfy a money judgment against the muipalit Pub li nds are not subjet to levy and exeution (Muncipalty of Makat v Court of Appeals 90 S 206 16
Local Government, Types
De ure municipal copoations - those reated or reog 1 nized by opeation of law
2
Municipa orporations by presciption - execised their
18
THE LOCAL GOVERNMET ODE OF 99 Annotaed
powers from time immemoal with a chae, which is pesumed to have been lost or destroyed. De facto mucipal opoations - whee the people have 3 organized theselves under olo of law ito odinary muicipal bodies and have gone o year aer yea raising taxes making impoveents and exeising thei usual franchises with their ights dependet quite as much as on aquiescence as on the egu laity of their oin
The essetial equisites of a d facto oporatio are: a)
a valid law authorizig iorporation;
b)
an attempt in good ith to ogaze under it
c)
a coloable compliace with law
d)
an assumptio of copoate powes
Whee the mode of eating a miipal opoatio and the conditios unde which it may exist are pesbed by a geneal la the legislatue ay properly leave to the courts o to a omissio or boad the duty of ascetaiig the ts and deiding wether the pescribed ondios have been satised and pope steps have been taken ude the law to bring the muiipal coporatio into exst ee 17.
Local Govenments, Extent of Legisative Contro
1 Histoial view holds that the muniipal cooations have an iheent ight to local selgovernment whih cannot be take away by statute having regard to the long history of local autooy ejoyed by towns and cities in the United States ad the nited Kigdom the local governmets atedating state govern mets although it eoizes the t that the state etains om plete conrol of mattes of geneal conen suh as health ad sani tation and the aintenane of peace ad order in espect of whih the muniipal opoation ats erely as the state agecy o instu metalit It maintains that so long as suh a copoation exists it has the right which the state cannot tae awa to egulate its in tenal o loal aais. In the absee of expess onstitutional pro visions the eater weight of authoity epudiates the histoal vie. 2 Legal vew This sanctios the possessio by the State of absolute ontol ove local govements local govement beig
INTRODUCTION
19
mere creatures of the State. The rght o municipal corporations to govern themselves in their purely ocal airs wil not be held to be abrdged except upon clear expression o the legislative will The equal protection clause may be vaidly invoked by a mu nicipal corporation to complain against a esser grant of jurisdiction and nctons in its charter as against a larger grant of powers and autonomy by Congress in the charters of other municipal corpora tions (Enriquez v. Secretary of Finance, 27 SCR 1261) 18.
Local Governments, Hisory
The cities, municipalities and provinces of tday evolved om the barangays of pre-Spanish times the pueblos and cabildos o the Spanish colonial days and the townships o the American regime A
The Barangays
The preSpanish barangays were the rst political and social organizations of the Phiippines A barangay was a settlement of some 30 to 100 miles and a governmental unit in itsel Each was independent om all the others. There was no centra government whatsoever athough conderations o barangays wee rmed r mutual protection and support The chie of the barangay was called a datu "an absolute ruler in whose hands were the legslative executive, and judicial powes of the government. Laws were unwritten and derived largely om customs and traditions They were rmuated by the datu who also acted as judge in cases of disobedience to the law. The Chie exacted tribute of harvest and abor om his subjects. B.
Spanish onquest and entralism
The lack of unity in the warring barangays made conquest easier r the Spaniards Graduall the datus were shorn o their powers The barangays disintegrated as independent city states and were transrmed into "somewhat articial subdivsions of the greater more complex rm of government that the colonists super imposed. The Spaniards estabished the encomienda system as the nucleus of local government in the countr. n encomienda was prac ticaly a gant o Indians to vored Spaniards. The grantee called encomiendero had the task of colecting the trbute om the natives. The Spaniards organized pueblos (municipalities) cabildos (ct ies) provincias (provinces) The provinces were estabished "r
20
THE LOCAL GOVERNMENT CODE OF 1991 Anotated
the convenence of admstratio and constituted the immediate agences through whch the cetral goverment could extend its authoy on numerous llages." In place of the barangay, barios were establshed, and the datus were made nto cabezas de baangay whose only remaning nction was the collection of taes r the Spansh government The cabildo was usually organized i irly urban areas ke Manila It was a mnicipal corporaton endowed wth law-makg powers and had two ordinay alcalds eight egidoe (alderman) a registrar and a costable The Gobeadocill headed the pueblo ad eercised eecu tve and judical nctons n the localt He was assisted by an ssessor and a Notar The pronce constitted the larger local unt It was headed by an Alcalde Mao who was asssted by a chef of polce ad one letenant each r polie r the eld ad r the large cattle Electon o local ocials was lmted to a w by a w The obadoillo was elected by a electoral college whle the ord nary alcalds were elected by householders By vitues of the Laws of the Ides ad royal decrees passed om tme to tme es were coected by the local governments r the national government For ther ow revenue they relied on re sorces comng om sheres urban propet rent or commun propert billard halls theaters cockghting ad weights and measures Spansh colonizatio therere eected strong centralsm and tolled the death knell of ndigenous poltcal nstitutons The sys tem o local governments n the Phlippes was patly responsble r the mny upsgs aganst the Spaads The local insttutons degeerated to a pont of decadence and conso that local o cials who had) not bee corrupted had) become atrophed or u less The need r rems was recoized oo late by the Spaards It took three mnisters of he colones to map out a plan of local govermet through the Maura Law of 1893 auhored by Antonio Maura y Montaner who was the Minister of the Coloes The law attempted to coner upon the towns and provinces of Luzon and Mndanao a geater measure of atonom
INTRODUCTION
21
The Maura Law introduced many rerms aecting the pueblos. Each town "contributing one thousand cedula each year to the state was to have a Municipal Council of ve members consisting of capitan municipal (municipal captain), teniente mayor chief lieu tenant), and three lieutenants. Municipal ocials were now elected by plurality through secret ballot, and relative autonomy granted to the pueblos in matters of local taxation The Municipal ibunal, aside om preparng the municipal budget, determined the amount of real property tax In addition to this source of income, the pueblos depended on fees om markets, tolls, and slaughterhouses The provnce remained the largest administrative division and acted as the intermedia between the national gvernment and its subordinate local units It was headed by a Governor The Provin cial Board was composed of a Prosecuting Attorne, an Administra tor of Finance, Vicars of the Province the parish priest of the api tal, and ur promnent residents of the capital elected by the mu nicpal captains in the province ven after the enactment of the Maura Law, the centralism characteristic of the Spanish regime continued. Smaller political subdivsions were wholly subordinated to the national government Cabeza de barangay became merely collectors of taxes who were eah rewarded fty percent of the amount collected The provincial gov ernor had disciplinary power over members of the municipal coun cils This centralism was characterized in this wise: The most striking character is undoubtedly the subordi nation and even subserviency of the Municipal ibunal to other authorites The Maura Law itself closely hedges within a narrow circle of the activties of the Municipal ibu nal and subjects this body to constant and unnecessary inspec tion and supervsion by the provincial council Indeed, the pro vincal council was not charged with the direct administration of the aairs of the province, but solely with the inspection and supervsion of the bodies which administered the airs of the pueblos (also) the captain, though a member and presiding ocer of the tribunal, might ignore its decisions, being in truth a politcal representative of the general government, and, as it were, an arbitrary goveor of the province C
Local Govements Durin the First Philiine Republi
The importance of local governments was recognized by Gen milio Aguinaldo and Apolinario Mabini in their program of gov-
22
THE LOCAL GOVERNMENT CODE OF 1991 Annotated
eent r the rst Philippine Republic. Filipino leaders kew that "if a strong enuring Filipo nation was to be established, it must be able to maintain itsef in all eergencies an the hole politi cal br must be wel uned on an ecient system of local gov eents. In his Proclaaon of June 18 1898 General Aginalo state "the urgent necessity of establishing n each town a soli robust or ganization the strongest bulark of public security an that sole eas of servng the union and disciplne which are inispensable r the establisent of the Republic that is goveent of the people r the people an waring o the internal coict which ight arise. Mabini saw that it was iperative r every goveent to interpret the people's will an recoized the nee of surrounding Geeral Aguinaldo with the best minds o the towns to the e that the tre necessitis of each town being known to the meas ures ay be adopte t meet the necessities an apply the reeies i accordance with the esire of all Aer the establishment of the dictatoral governent the e cree of une 8 an 20 898 organized the unicipalities Special commissioners were appointed to superise the muicipalties Each town ha a President who was assiste by a delegate r police an inteal order another r justce and civil registr an a thir r tes and propert These ocers were electe in a meeting by in habitants of the municipality known r "high character social po sition and honorable conuct The town Presient with the heaman of each village within the town and the delegates constitute he Popar Assembly hich had the task of eorcing the law Heads of all the tos in the prov ince elected the chief an three councilors of the province The o cers of the province supervsed te eorceent of instrcon o the central goveent Municipal and povncial ocials were ven jurisiction over cminal and civil case Decisions of munipal o cials ere appealable to the Provincial Boar The Malolos Constitutio prove a eparate article on local goveent (Ttle X, Articl 82.) Local autonomy was ae explicit in the introducto portion which stipulate that the organization an powers of the provincial a municipal assemblies shall be gov erne by their respective laws. Article 82 provied r popular an direct election being the basis of the organization of sai corpora-
INTRODUCTION
23
tions," publcity of local sessions and budgets accounts and ordi nances and determination of their powers in matter of taxes in order that the provncial and mnicipal taation may never b e an tagonistic to the system o local taation. Despite the autonomy given to the local government units however central interention in local aairs was retained This as sured the intervention of the government and in a proper case by the national assembl in order to prevent the provincial and mu nicipal corporations om eceeding their powers to the prejudice of general ad indivdual interests The govemen of the First Phlippine Republic encouraged greater participation by the local uits but the intervention o the central govement was deemed necessa because the eisting conditions called r national ut It was pointed out that the idea itself was just an instance ofthe desire r a strong goveent; a goveent wch needed great powers to give the people benets they never had bere D.
Local Governments During the America �ime.
The Amecans contribute very little ifat ll to the develop ment oflocal autonom In ct national-local relationshp reverted to the strong centralism that characterized the Spanish colonial regime The rst local govement established during the ercan regime was the municipality General Order No 43 series 1899 provided r a municipal council in each town coposed o a resi dent and the headmen o the barrios wthin the town The cocl was charged with the maintenance o peace ad order the regula tion o municipal airs and the adoption of ordinances r the municipalit er the establishment ofthe towns the Schura Commis sion was instructed to prepare a simple scheme of mucipal gov eent so similar to the old system as to be readily comprehen sible to the natives but giving them liberies which they had never enjoyed bere The Commission's blueprint r town organization provided r a resident to be elected viva voe by residents o the town th the approval of the ommanding Oce His duty con sisted n the establshment of a police rce collection of taxes en rcement of relations on market and sanitation establishment ofschools and the provsion r lighting lities He was assisted by the vilage headmen
24
THE LOCAL GOVERNMENT CODE OF 1991 notated
The Council was given the nction of th conducting prlmina investiation in cinal cases and the deteination of prop rty cases not xcedin $500. Military authotis exercised abso lut control over the local ocials Evn Council ordinances were subject to approval b the Ameican Commanding Ocer in the town, who was responsibl to the cntral government The establishmnt of civl govment aected the patte o goveent of local units Prsidnt McKnle's "Instrction o the hilippine Commission of Apil 7 1990 mad specic mention o local autonom: The establishment of municipal ovemnt in which th natives of the islands both in the cities and th rral commu nities shall be aorded the oppotunity to manae thi ow local aars to the llest extent of which the are capable and subect to the least degee of suprvision and control In the distibution of power among th governments orgaizd b th commission the prsumption is always to be in vor o th smaller subdivision so that all th powrs which can properl be ercised b the municipal oveent shall be vested in that govement so that . that central ovn o the Island shall have no direct administration excep n matters of a purel gneral conce and shall have onl such supvsion and control over the local govement as ma b necessar to serve and enrce itl and ecint adis tration by local ocials Pursuant to the residents Instuction the Phlippine om mission enacted Act No 82 providing r the oranization and gov ement of municipalitis and Act No 83 r th organiation o provincs Undr Act No 82 ach town was headed b a rsident s chi cutiv and presidin ocer of the municipal cocil Th co cil was composed of one reprsentativ om each of the barrios. I promulgated ordinances and was charged with th maintenance o peace and order in the localit The other ocials of the tow in cluded a Screta a asurer and a Chief of Police Th o re lid on rvnue om real property taxs rents prots tools a kts slaughtrhouses and tuiton es r intermdiat schools rovincial govemnts stablished by Act No 83 had a Gv eo a easurer and a Supesor (later replaced a Division
INTRODUCTION
25
Superntendent of Schools). Until 1907, the Goveor was elected by the concilors of organized municipalities within the pronces Subsequentl he was elected by popar vote Special laws enacted by the Philippine Coission goeed the capital city of Manila and the summer capital of Baguo in the Mountain rovnce While resident McKnley's "Instructions recognized local autonom the various laws passed and the rules r their implemen tation only served to diminish local auonomy. Control oer local aairs were exercised by the nation government through its many agencies. The proce r instance acted as a ere admnistrative agent of the national goe meet In practice commented Joseph Hayden it trned out that the most important work of the pron cial goement was the supersion of the governments of munici palities through sitation inestigation and supersion by pro incial ocials The roncial Board was also gen a considerable amount of control over the unicipal councls whose orders and ordinances it scrutinied and might disallow on grounds of illegalit The central goernment directly superised local governments through the Executive Bureau whose task was to see "that proin cl ocils did not exceed or abuse their legal authort Likewise it exercised cotrol oer local nance by controlling the budgets of provnces and reguating loans made o the treasury of the cen tral government to the localities This arrangeent is a sharp con trast with the autonomy enjoyed by the states in the American un ion It was a rtual carryoer of the Spanish syste of local go ement in the Plippines E.
The Comonwalth and ntralis.
The rms and patterns of local govement dring the e can civil adinistration remained essentially the sae durng the Commowealth period. The only notable changes were the transr of centra supesion om the Executie Bureau to the Department of Interior and the creation of ore chartered cities The relation ship between the national and local governents became increasingly parasitic in the sense hat the local unts became ve depend ent on the national goveent
26
THE LOCAL GOVERNMENT CODE OF 199 Annotaed
President Quezon, the central gure of the government dur ing this period, even argued against autonomy in the cities, hinting that "under the unitary system of government which exists in the Philippines, the national chief executive does and should control all local oces. Under the Commonwealth, central supervision ... not only rapidly increased, but, personally exercised by the chief ex ecutive to a degree previously unheard o F.
Local Governments under the Republic.
The structure of local governments as established in Act Nos. 82 and 83 remained essentially the same under the 1935 and 1973 Constitutions The national govement was supreme and local gov ernments were merely its political and administrative subdivisions. Most of the rmal and real powers were vested and eercised by the national government.Local units, however, possessed a certain degree of autonomy.The basic law on local governments was con tained in the various provsions of the Revised Administrative Code This Code has been amended by several laws, notably: Republic Act No 2259 (making the positions of mayors, vce-mayors, and coun cilors in chartered cities elective ) Republic Act No.230, as amended by Republic Act No.3590 (The Revsed Barrio Charter; Republic Act No.5185 (The Decentralization Act of 1967.).Cities have sepa rate charters r their own governance. G.
Local Governments at present.
On May 12, 1983 Batas Pambansa Blg.337, otherwise known as the Local Government Code took eect On Feb.2, 1987, the 1987 Constitution was ratied and took eect On October 10, 1991, The Local Govement Code of 1991 (.A 7160) was signed into law This Code ordained an authentic and workable local autonomy through the devoluton of certain powers om the national gove ment to the local governments In 1995 there were 75 provnces, 1 sub-province 60 cities, 1,553 municipalities and 40,000 barangays in the country. At present, there are 79 provinces, 113 cities, 1,496 municipali ties and 41,933 barangays in the country.
INODUCTON
19.
Local Governments, 1987 Constitutional Proisions S 25 A pd; "Th h h y f g A X pd: O OVERMENT ENER ROVIION Th b· f h Rb f h h h bgy Th h b g M M h h Th h y y 3 Th g h g whh h f b g hgh y f z wh h f f g h g h w f h q w f h g h gz f h 4 Th f h h h x g g wh h bgy h h h f h wh h f h w Eh g h h h w w f y x hg bj h
27
28
THE LOCAL GOVERNMENT CODE OF 191 Annotaed
gidelines and litations as the Coness may provie, consistent with the basic policy of local autonom. Such taxes fees and charges shll accrue exclusively to the local governments. Sec 6 Local goveent units shall have a just share as determined by la in the national taxes which shall be automatically release to them. Sec 7. Local governments shall be entitled to an equitable share i the proceeds o the utilization and development o the national wealth within their respective areas in the mnner provide by la incluing sharing the same ith the inhabitants by way of direct benets. Sec. 8. The term of oce of elective local ocials except barangay ocials hich shall be determined by law shall be three years and no such ocial shall serve for more than tree consecutive terms. Voluntary renunciation of the oce or any length of time sha not be considered as an interruption in the continuity of his service for the ll term for hich he as electe Sec. 9 Legislative bodies o local goverents shall have sectoral representation as may be pre scribed by la Sec 10 No province city municipality or barangay may be create, divied merge abolishe or its boundary substantially altered except in accordance with a criteria established in the local goverent code and subject to approval by a mority o the votes cast in a plebiscite in the political its directly aected Sec. 11 e Congress ma, by la create special metropotan political subdivisions subject to a plebiscite as set forth in Section 10 hereo The component cities and municipalities shall retain their basic autonomy and shal be entitled to their own local executives and legislative assembies The jrisdiction o the metropolitan authority that ill thereby be created shal be limited t basic serices requiring coordination
INTRODUCTION
Sec. 12. Cities that are highly urbanized as determined b law and component cities whose charters prohibit their voters om voting for pro vincial elective ocis, shall be independent of the province The voters of component cities within a province whose charters contain no such prohibi tion shall not be deprived of their right to vote for elective provincial ocials. Sec. 13 Local government units may group themselves consolidate or coordinate their eorts serces and resorces for puoses commonly ben ecial to them in accordance with law. Sec 14 The President shall provide for re gional development councils or other similar bod ies composed of local goveent ocials, regional heads of departments and other goveent oces and representatives om non-goveental organi ations within the regions for purposes of admin istrative ecentraliation to strengthen the au tonom of the units therein an to accelerate the economic and social growth and evelopment of the nits in the region AUTONOMOUS REGIONS Sec. 15 There shall be created autonomous regions in uslim indanao and in the Cordilleras consisting of provinces, cities municipalities and geoapcal areas sharng common and distinctive historical and cltral heritage economic an so cial structures and other relevant characteristics within the amework of this Constitution and the national sovereity as well as terrtorial inteity of the Republic of the Philipines. Sec. 16 The President shall exercise general supervision over autonomous reons to ensure that laws are ithflly executed. Sec. 17. ll powers nctions, and responsibi ties not granted by this Constitution or b law to the autonomous reons shall be vested in the Na tional Goveent.
29
THE LOCAL GOVRNMENT CODE OF 1991 Annotaed
30
Sec. 18 The Congress shall enact an organic act for each autonomous reon with the assistance and participation of the regional consultative com ission coposed of representatives appointed by the President om a list of nominees om multi sectoral bodies. The organic act sha dene the basic structure of govement for the reon con sisting of the executive departent and legislative asembl, both of which shall be elective and rep resentative of the constituent political units. The organic acts shal likewise provide for specific cours with personal famil and propery law ju risdiction consistent with the provisions of this Constitution and national aws. The creation of the autonomous reion shal be eective when approved by majority of the votes cast by the constituent units in a plebiscite caed for the purpose provide that only provinces cit ies and georaphic areas voting favorably in such plebiscite shal be included in the autonoous re gion Sec 19. The rst Congress elected under this Contitution shall, within eighteen months om the time of organization of both Houses, pass the or ganic acts for the autonomous regions in Musli Mindanao and the Cordileras Sec. 20 Within its territorial jurisdiction and subject to the provision of this Contitution and national laws, the organic act of autonomous re ons shal provide r egislative powers over: (1) Ainistrative organization; (2)
Creation of sources of revenues
(3) Ancestral domain and natural resources (4 )
Personal, amil and property relations
(5)
Regionl r and rral panning develop-
ment (6) ent
Economic social, and tourism develop
INRODUCTON
(7)
31
Educational policies;
(8) Preservation nd development of the cultural heritage and (9) Such other mtters as may be authorized by law for the promotion of the general welfare of the people of te region. Sec 21 The preservation of peace and order within the regions shall be the responsibility of the local police gencies wic shall be organized, maintained supervised and utilized in accordance wi applicable laws The defense and security of the regions shall be the responsibility of the National Goveent Salient Features of the Local Goveent Code of 1991 1
The Local Govement Code is the key to the development of the countyside. e Code will make possible the developent of the r ug areas of the count wthout the necessity of apppating additional unds This it will make possible by allocating a substantial poion of the public oney to and shaing a broad range of the powers now held by the national govenment with the local govement units The Code mandates the devolution of certain national govement powes to and the incease of (a) the share of national taxes r the local govement units, naely: povinces cities, municipali ties and baangays and (b) their powe to tax Powers devled
Certain powes that used to be execised by the national gov eent to wit: (1) public woks; (2) heath; (3) agiture; (4) so cial wele; (5) cetain tosm nctions and (6) construction of school builings and cilities are now devolved to local govement units
1Tis was published n a natoal paper through the oce of Senator Aqulno Q. Pentel, J the pipa author of the aw
THE LOCAL GOVERNMET CODE OF 1991 Anotaed
32
Public works
In pubc works, responsiblty wil now be xed. For example puey brangay roads be the responsblty of the barngay; mu nicipa roads wll be that of the muncipality and pronca roads that of the province Roads that ead om one barangay to another wl be the re sponsbity of the muncpalt Roads that lead om one munc paty o another will be the responsibility of the provnce and the roads that ead om one provnce to another w be the responsi bilty of the nationa goernment Pending arcaton by the Oversight Comittee whch wi come up with the gudelnes to ensure the thl mpementation of the prosions of the Code national roads n sand provnces may remain the responsbty of the natonal government Health
Under the Code barangays now have power of establishment and antenance of barangay heath and day care centers Municpaities now have power over the delivey of pimay health care matea and chid care communcable and non-com mncable dseases control serices Pronces may establsh and run hosptas and other tertia health services Cities may exercse the powers vested in muncpalties and pronces on the matter of heath sevices Now the purchase of medicines medcal equpment and sup ples is also lodged with loca govement uts Arcultur
Agrcutural support serces such as distibution of plantng materals and operation of colecting and buying stations r rm produce wi now be placed under the authority of barangays Muncpaties w now take charge of agriculture extenson and research serices and deve of seces and ciltes reated to sheries and agriclture and the enrcement of shery laws and DENR aws relative to restry conservation projects rovnces wl do agricutural extenson and onsite research and on-site cites The organization of dairy rms livestock
INODUCTON
3
markets, and rmers and shermen cooperatives is paced under the jusdiction of the provnces. The ities wil exercise the powers over aicuture and sh ing that provnces and municipalities have Social Welfare Municipaities wi now have powers over the welre of chil dren and youth, amiy and commuit, women, eldery and disa bed persons, vagrants, beggars street chidren, scavengers, uve nile delinquents, victims of drug abuse, nutition and mily pan ng serces and other pro-poor services Pronces wi now handle rebel returnees and evacuees pro gams, relief operations and population development services Cities wi now eercise the powers o the provinces and the municipalities over the socia welre School building The power to build schools is now odged wth local government units concerned Tax share increased The share of tes of the oca government units has been in creased om the present 11% to 40% under the lowing schedule: 1) 30% upon the eectivity of the Code on Janua 1, 1992; 2 35% o anua 1, 1993 ad 3 40% on January 1, 1994 ax powe increased Aide om being ranted a huge increase in their share of the taxes o the nation, the local government units are invested by the Local Government ode with increased powers to ta, thereby em powerng them with a wder capacity to raise their own revenues withn their respective teitora jurisdictions Provincia taxes A eamples, the provnces may now impose a t on a trans rs of real property (b businesses of pinting and pubication [not on newspapers] (c) anchises d sand and grave e prossions (0 amusement enterprises and (g delve vans of a knds of prod ucts
34
THE LOCAL GVERNMET CO DE OF 199 Annotaed
Municipal taxes
Muncpaltes may mpoe a tax on (a) manucturer, proceor brewer dtler recter and compounders of lquor and dstlled prts b wholesaler dtrbutor or dealers of any arti cle of commerce; c exporters manuacturers mlers producer wholesalers dtrbutors dealers or retalers of esental commod tes d retaler e banks and oter nancial nstitution and peddlers of merchandse. Muncpalte may also levy es r sealng and lcensng weght and measure and mpose shey e and r the ue of muncipal water Ciy aes
Cites may levy taes, fee and charges which provnce and muncpaltes may mpose Lke mncpalte te cte may also mpoe a communty tax whch the new name r the resdence tax, whch has been deleted from our tatute book Barangay sales axes
Cty barangay may tax tores and reta whose gro ales do not exceed P50000 per annum Muncpal barangays may tax thoe woe ales do not exceed P30000 per annum Barangay fees
Barangays may alo mpose es r: a seces rendered b barangay clearances c commerca breedng of ghting cocks d cockght (e cockpts ( places of recreaton wic charge adm on e bllboard and (g) neon sgn. Common revene powers
rovnces cite and municpaltes have common revenue rais ng powers They may mpoe (a fees r servces rendered by the and b toll e Oher sores f revene
In addton the local govement unt are enttled to dente hae n a the proceeds om deveopment and utzaton of mies,
INTRODUCTO
35
rests, and marie resources up to 40% of the gross collectios therefro by the atioal govemet; (b) the proceeds of govermet owed or cotrolled corporations egaged i the utilization and developmet of the national wealth up to 1 % of the goss sales or 40% of the gross collections made by the ational govermet thereom whichever is higher. Distributon of shares from natural resources
The distribution of shares of the local goveent derived om the development and use of natura resources located in a provice are as llows: (1) 20% to the provice (2 45% to the compoet city or muicipality where located and (3) 5% to the baragay where located f the atural resources is located i a highly urbaied cit the distibutio of shares are as llows 1) 65% to the city and (2) 5% to the baragay Real etate levy
A real estate ley may be imposed by the province or city as llows () by the province ot exceedig % of the assessed value of the property and 2) by the cit, not exceedig 2% of the assessed value of the propert Special educaton fund
A special education nd may also be assessed in provinces cities or Metropolitan Manila uicipalities up to a maximum of 1 % of the assessed value of a real propert Idle land levy
Idle lads i proices cities or muicipalities in Metro Ma nila may be additioally taxed at not exceeding 5% of their assessed value. Special levy
Lads beneted by public works projects or improements i provices cities and municipalities may be levied a special tax of not exceedg 60% of the actual cost of the proect
36
THE LOCAL GOVERNMENT CODE OF 199 Annotaed
Billions for Development
With 30% of national taxes going to local governments in 1992 (eectity date: January 1), 35% by 1993 and 40% by 1994 we are talking here of billions of pesos r the development of the countryside. For 1992 the share of local govement units will be P2441 billion r 1993 P36414 billion and r 1994, P46270 billion Limits on Salary spendng The Code limits expenses r salaies to only 4% r highly urbanized cities and r 1st to 3rd class provinces, cities and mu nicipalities; 4th to 6th class cities and the barangays may go up to 55% of their budgets r salaries The rest of the money must be spent r development prposes Expected Reults: Jobs an Peace his eans that there will be more money available r roads and bridges water, light medical care, school needs and other ba sic requirements r mode liing r the people in the countside Aso with the inrastucture in place industres and business will be enticed to go to the countside Manila will be decongested and wor will be avaable to the people in places r om the National Capital Region Hopelly with development there wil be peace GU pecenage hae he amounts ll be apportioned to the provinces 23% cities 23% municipalities, 34% and the barangays 20%
REPUBLIC ACT NO. 7160 N ACT PROVIDING FOR A LOCL GOVENT CODE OF 1991 Be it ented by the Senate and the House ofRepresentatives of the Philiines in Congress sembled: BOOKI
GEERL PROVISIONS Title One B CHPTER 1. - e Code: Policy and Application SECTION 1. Tt. - This Act hall be known and cited a the "Local Goverent Code of 1991 A.
Coments
Originally, the laws on local govrnmnts wr principall und in the Rvised Admiistrativ Cod. 1959 the Local Autono Act (R.A 2264) was enacted This was an act amending th laws goveing local govmnts b incrasing their autonom and rorganizing th provincial govemnts In
1963 The Barrio Chartr RA. 3590 was passd which pro vided r th orgaization of Barrios and proidd for the powrs rights and dutis of th barrio cocil. n
RA 5185 otherwise known as the Decntralization Act an Act granting rthr autonoous powers to local governments was passd in 1967 37
38
THE LOCAL GOVERMEN CODE OF 1991 Anotated
Martial Law was declared in 1972 bringing with it the Integated Reorganization Plan, Art. XVI of which dealt on Local Gov ement and Comunity Developent From September 1972 up to January 1982 when Matial Law was lied Presidential Decrees and Proclamations wee issued a cting local governments The laws on ocal governents were so numerous separate and consing that they were codied as andated in the 1973 Consti tution Thus Batas Pabansa Blg. 337 the Local Government Code was nally approved and took eect on May 12 1983 To rther assure decentralization and development in the countside the 1987 Constitution mandated the enactent of an other local goveent code iplement this constiutional direc tive Republic Act No 7160 was enacted by Congress and signed into law on October 10 199 by the President It took eect on Janua 1 1992 SEC. 2. Declaration ofPolicy. - (a) is hereby declared the policy of the State that the territorial and poitical subdivisions of the State shal eoy genuine and meanin local autonomy to enable them to attain their llest development as selre liant communities and ake them more eective partners in th attainment of national goals To ward tis end, the State shall provide for a more responsive and accontable local goveent strc tre stituted through a system of decentraization whereby local government units shall be given ore powers authority responsibilities and re sources The process of decentrazation shall pro ceed om the National Government to the local govement nits. (b) It is also the policy of the State to ensure the accountability of local government units through the institution of eective mechanisms of recall, initiative and referendum c) It is likewise the policy of the State to re quire all national agencies and oces to conduct periodic consltations with appropate local gov eent uts, nongovemental and people's or
GENERAL PROVISIONS Basic Prniple
39
ganizations, and other conceed sectors of the community before any project or program is implemented in their respective jurisdictions. Comments:
This section is based on Sections 1, 2 and 3, At. X of the 1987 Constitution The declared polc of ths Code is the promotion of local au tonomy, through a sstem of decentralization he hstor of ths trend towards local autonom is presened below: 1900 President McKinley's Instructions. - It laid down the polic that muncipal governments should be subject to the least degee of supesion and control and conned to the naowest lm its 1916 Philippine Autonomy Act of 1916 -The GoveorGen eral as the supreme executive power had general superson and control of all the executive departments and bureaus of the goern ment and all executive nctions directl under him or within one of the executive depatments under his superison and control Ex ecutive nctions of local subdiisions come under ths allembrac ing authort 1935 Constitution -It proded that the President shall onl have general supersion over all local govements 1935 Lacson v Roque -This is the depaure om the Pnas v Gil and the Villena v Secretary rulngs 199 Local Autonomy Act (A 2264) -Ths is an act amend ing the laws governing local governments b creasng their au tonom and reorganizing the proncial govements 1967 Decentralization Act A 5185) Ths act anted r ther autonomous powers to local govements 1972 Integrated eoranization Plan Government and Communit Development
Part XVII on Local
1973 Constitution Sec 10 declares that the State shall gur antee and promote the autonom of local government units Thust of the 1973 Constitution is r llest autonom of lo
40
THE LOCAL GOVERNMENT CODE OF 199 Anotated
cal govermet units. (Ceniza v. Commission on Elections, 95 S 763) 193 Th Lcal Govenment Cod (B.P 337 - It was enacted codiing the numerous laws o local govements and granted more autoomy to local goernments 87 Constitution Sec 25, At deares that: the State shall ensure the autoomy of local goverments The 19 Costi tution prodes r a etire aricle (Art X) o local governmets (Scs 1-14 on Genal Povisions and Scs 1521 on utonomous Regions 199 The Local Govement Code of 199 (RA. 760 was eacted Natioal ocials shoud ot on comply with the constitutioal provsons on local autonom but should also appreciate the spirt of libery upo which these proisios are based (San Juan Ciil Sevice Comission 96 S 69 he priciple of local autonomy does not make local gove mets sovereign withi the state it simply means decetralization (Basco v Philippin musements and Gaming Copoation 97 SCR 52 SEC. 3, Operative Principles of Decentraliza-
in. - The formulation and implementation of
policies and meases o loc autoomy shall be gided by the folowing operative principles: (a) There shall be a effective allocatio amon the deent local goveet units of their espective powers, nctions esposibilities and resorces; (b) here shall be established i every local oveent unit an accountable ecient ad dy namic or anizational stucture and operatig mechaism that will meet the pioity needs ad service requiements of its communities (c) Subject to civil se vice law ules and regulations local officials ad employees paid wholly or mainly fom local funds shall be ap pointed or emoved accordig to merit and tness by the appropriate appointing authoity
GENERA PROVISIONS Basic Priniples
(d) The vesting of duty, responsibilit, and ac countability in local government units shall be accompanied with provision r reasonably adequate resources to discharge their powers and eectively carry out their nctions; 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 espective areas; (e) Provinces with respect to component cit ies and municipalities, and cities and municipalities with respect to component barangay's shall ensure that the acts of their component units are within the scope of their prescribed powers and nctions; ( Local government units may group them selves, consolidate or coordinate their eorts, serv ices, and resources for purposes commonly benecial to them; (g) The capabilities of local goveent units, especially the municipalities and barangays shall be enhanced by providing them with the opportu nities 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 ena bling 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; ) Eective mechanisms for ensuring the ac countability of local government units to their respective constituents shall be strengthened in order to upgrade continually the quality of local lead ership;
41
42
THE LOCAL GOVERNMENT CODE OF 199 Annotated
(k) The realization of local autonomy shall be facilitated through improved coordination of na tional government policies and programs and ex tension of adequate technical and material assist ance to less developed and deserving local govern ment units; (1) 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 strat egy r sustainable development; and (m) The National Government shall ensure that decentralization contributes to the continuing improvement of the performance of local govern ment units and the quality of community life. A. Comments
This is a new section which lays down in detai and specic terms the operative principles to eect decentralization and local autonom. SEC 4 Scope ofApplication. - 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 pro vided, to ocials, oices, or agencies of the Na tional Government A Commes
The Code also contains povisions which appl to nationa of cials, like the President as povided r in Section 25 and the Phi ippine National Police under Section 28 i thei inter-govenmen ta relations with the local government units. SEC 5 Rules of Inerpretation - In the inter pretation of the provisions of this Code, the follow ing rules shall apply: (a) Any provision on a power of a local gov ernment unit shall be liberally interpreted in its
GENERA PROVISIONS Basic Prncples
43
favor, and in case of doubt any question thereon shall be resolved in favor of devolution o powers an o he lower local government uni. y ir and reasonable doubt as to the existence o the power shall be interpreted in favor of the local government unit concerned; (b) In case of doubt any tax ordinance or revenue measure shall be construed strictly against the local govement unit enacting i and liberally in avor o the taxpayer Any tax exemption incenive or relie granted by any local government unit pursuant to the provisions o this Code shall be construed strictly against the person claiming it; (c) The general welfare provisions in this Code shall be liberally interpreed to give more powers to local government units in accelerating economic development and upgrading the qualiy o lie r the people in the community; (d) Rights and obligations existing on the date of eecivity of this Code and arising out of conracts or any other source o prestation involving a local govement uni shall be goveed by the original terms and conditions of said contracts or the law in force at he time such rights were vesed; and (e) In the resolution of controversies arising under this Code where no legal provisions or jurisprudence applies resor may be had o the customs an traditions in he place where the controversies take place A
Comments
This section provides that any doubt or question on a power of a local government shall be resolved in vor of devolution of powers and in vor of the lower local government unit. However, r tax measures enacted by local governments, any doubt shall be construed strictly against the local government and liberally in vor of the taxpayer.
44
THE LOCAL GOVE RNMENT CODE OF 199
Annotated
This section also strengthens the power of local governments, o enac ordinances under the general welre provisions b providing r liberal interpretation in vor of local governments.
CHPTER 2. - General Powers and Attributes of Local Government Units SEC. 6. Authority to Create Local Government Units. local govement unit may be created, divided, merged, abolished, or its boundaries sub stantially altered either by law, enacted by Con gress in the case of a province, city, municipalit, 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 jurisdic tion, subject to such limitations and requirements prescribed in this Code. A. Comments
Congress has the power to create or abolish a province, city, municipality, or an oher political subdivsion e sanggniang panlalawigan or sanggniang panlungsod has the power to create and abolish barangas located wihin its terri torial jurisdcton
SEC. 7. Creation and Conversion -A a gen eral rule, the creation of a local govement unit or its conversion from one level to another level shall be based on veriable indicators of viability and projected capacity to provide services, to wit: (a) Income. - It must be sucient, based on acceptable standards, to provide for all essential goveent facilities and services and special nc tions commensurate with the size of its population, as expected o the local goveent unit conceed; (b) Population. It shall be determined as the total number of inhabitants, within the territo rial jurisdiction of the local govement unit con cerned and
GENERA PROVISIONS Basic Prncples
45
(c) Land Area. - It must be contiguous, un less t comprises two (2) or more islands or is sepa rated by a local goveent unit independent of the others; properly identied by metes and bounds with technical descriptions; and sucient to pro vide for such basic services and facilities to meet the requirements of its populace Compliance with the regoing indicators shall be attested to by the Department of Finance (DOF) the National Statistics Oce (NSO) and the Lands Management Bureau (L) of the Department of Environment and Natural Resources (DENR). A.
Decided Cases
1 Petitioners have not demonstrated that the delineation of the land area of the proposed City of Makati (without metes and bounds) will cause consion as to its boundaries. Congress has reained from using the metes and bounds description of land areas of other local government units. IO v. COLEC, 242 SC 211, 3//95
PJ Facts: Peiioner il eion of RA 78 unoniuionl on he gound h i did no popely idenify he lnd re or erri oril juridiion of Mki by mee nd bound in iolion of e ion 0 of he 8 oniuion in relion o eion nd 0 of he ol Goernmen ode We nd no meri in he peiion The delineed lnd re of he propoed iy of Mki proide h City of Makati. The Muniipliy of Mki hll be onered ino highly urbn ized iy o be known he iy of Mki hereinfer referred o he i whih hll omprie he preen eriory of he Muniipl iy of Mki in Meropolin Mnil Are oer whih i h juridi ion bounded on he norhe by Pig Rier nd beyond by he iy of Mndluyong nd he Muniipliy of Pig; on he ouhe by he muniipliie of Pero nd Tgig on he ouhwe by he iy of Py nd he Muniipliy of Tguig nd on he norhwe by he iy of Mnil Held:
The imporne of drwing he preie roke of errioril boundrie nno be oer emphized The boundrie mu be ler r hey dene he limi of he errioril juridiion of he lol
46
THE LOCAL GOVERNMEN CODE OF 199 Annotated gvrm ui. By hs limis, is cs r ultra vires. y ucriy i h buris will sw csly cics i h xrcis f gvrml pwrs which ulimly will prjuic h ppls wlr his is h il sugh b vi by h cl vr m i rquiig h h l r b spll u i ms bus wih chicl scripi. iv h cs, w c prciv hw his vil c b brugh bu by h scripi m i sci 2. Piirs hv m sr h h lii f h l r f h prps iy f ki wll cus csi s is buris h lii i chg v by ich h l r prviusly cvr. Sc i 2 i , subrc, ivi r muliply h sblish l r f ki lgug h c b y clrr, h ciy's l r shll cmpris h prs rriry f h muicipliy? W k uicil ic f h c h gss hs ls ri m usig h ms bus scripi f l rs f hr lcl gvr m uis wih usl bury ispus
2. The technical desription, containing the metes and bounds of a muncpaty's territory stated in EO 258 eatn the Munpaty o Snaaban Msams renta is bndng UIIY JIZ 65 8 //6 z J. : h uicipliy f Sicb ws cr by xcuiv r r 2 f h Prsi lpii Quiri pris hr is hrby cr, i h Prvc f ismis ccil, muicipl iy b kw s h uicipliy f Sicb, which shll csis f h Suhr pri f h uicipliy f im, ismis ccil, mr priculrly scrib s llws h rh by li srig m pi h cr f h lighhus h b- pi S. 4 ° 30W, 7,20 mrs pi 2 which is h bk f Plil ivr brch; hc l lwig Plil ivr brch 2,400 rs suhwsrly pi 3 hc srigh li S 7 ° , 22,0 mrs pi 4, whr his irscs h ismis ccilmbg bu ry h ws by h prs ismis ccilmbg bury h suh by h prs iml bury h s, by h limis f h muicipl w wc h muicply Scb s hv pusu Sci 232 f h vis miisriv h u icipliy f im shll hv is prs rriry, mius h pri hrf iclu i h uicipliy f Sicb.
GENERA PROVISIONS Basic rncples
47
Based on the technical description, Sinacaban laid claim to a portion of Barrio Tabo-o and Barrio Macabayao, Adorable Sinara Baja, and Sinara Ato. The claim was led with the Proncial Board of Miami Occidental againt the Municipality of Jimenez Jimene countered in its answer that while under EO 258, the disputed area i pat of inacaban it nonetheles aets ursdiction on the basis of an areement entered with Sinacaban in 1950 The agreement (Reolution No 77), which was approved by the Provincial Board o Miami Occidental state that: "The barrio of Macabayao Sitio Ador able and ite wll be a part of imene town. The Proncial Board declared the disputed area to be part of Sinacaban Jimene ed a petition r certiorari, prohibition and mandamus in the RTC of Oroquieta Cit againt Sinacaban, al. The RTC denied the petition and the subseuent motion r reconid eration. Hence, thi pettion on whether it i the boundary provided in EO 258 or in Resolution No 77 which hould be used as basis r adudicating Sinacaban's claim Jimene argues that the RTC erred in ordering a relocation sur vey of the boundary of Sinacaban, becaue the barangay which Sinacaban are claiming are not enumerated in EO 258 and that in any event the partie entered into an agreement whereby the barangay in quetion were considered pat of the territo of Jimene EO 258 doe not say that Sinacaban comprises only the barrios now called barangay therein mentioned What it say i that "Sinacaban contains thoe barrios without sayng they are the only ones com priing it The reaon r this is that technical decription, contain ing the metes and bounds of its territor is controlling Held:
The trial court correctly ordered a relocation survey as the only mean of determining the boundarie of the municipality and cone quently the quetion to which municipality the barangays questioned belong Therere, if Reolution No 77 i contrary to the technical de scription of the territory of Sinacaban it cannot be used by Jimene a bai r oppoing the claim
SEC. 8. Division and Merge - Division and merger of existing loca governent units shall comply with the same requirements herein pre scribed for their creation: Provided, however That such division shall not reduce the income, popula tion or land area of the local government unit or units concerned to less than the minimum require ments prescribed in this Code: Provided, frther
48
THE LOCAL GOVERNMENT CODE OF 199 Anotated
That the income classication of the original local government unit or units shall not fall below its cuent income classication prior to such division. The income classication of local goveent units shall be updated within six (6) months om the eectivity of this Code to reect the changes in their nancial position resulting om the increased revenues as provided herein. SEC. 9. Abolition ofLocal Government Units. A local goveent unit may be abolished when its income, population, or land area has been irrevers ibly reduced to less than the minimum standards prescribed for its creation under Book III of this Code, as certified by the national agencies men tioned in Section 7 hereof to Congress or to the sanggunian conceed, as the case may be. The law or ordinance abolishing a local gov ernment unit shall speci the province, city, mu nicipalit, or barangay with which the local gove ment unit sought to be abolished will be incorpo rated or merged. A
Comments
Th d w lay dw hr ipra idicar f viabiliy i rai la gvr ui ay: i, ppu lai ad lad ara.
SEC. 10. Plebiscite Requirement No creation, division, merge, abolition, or substantial alteration of boundaries of local govement units shall take eect unless approved by a majority of the votes cast in a plebiscite called r the purpose in the political unit or units directly aected. Said plebi scite shall be conducted by the Commission on Elec tions (COMELEC) within one hundred twenty (120) days om the date of eectivity of the law or ordi nance eecting such action, unless said law or or dinance xes another date.
GENE PROSIONS Basic rncples A.
49
Decided Cases
1 The power o merge administraive regions is a power which has radiionally been lodged wih he Presiden o ciliae he exercise of he power of general supervision over local govemens. There is no conic beween he power of he Presiden o merge adminisraive regions wih he consiuional provision, re quiring plebiscie in he merge of local governmen unis because he requiremen of he plebiscie in a merger expressly applies only o provinces ciies, municipaliies or barangays, no o adminisra ive reions (Abbas v. Commissions on Electons, 179 SR 287) 2 A case involving a boundary dispue beween local gov ernmen unis presens a prejudicial quesion which mus rs be decided bere plebiscies r ceaion of proposed barangays may be held CIT OF PAIG v. COMLEC, 314 SCR 179 9/10/99 Ynares-Santiago, J. Facts: Th dt of Kg Vg ttod tht thy b ggtd om t moth gy Mggh d D z, Cty of g d to b kow gy Kg. bt o th to w t Ju 22 1996 Mwh, th Cty of g o td gy o g Cty h bt w t Mh 15, 1997. Uo g of th od t g th bgy, th Muty o f Ct movd to ud o th tv bt hdu by tto d wth th CMLC.
Th muty of Ct d th ttto of th CMLC to dg th C ofAtoo, z ttmt of boudy dut, whh th ood bgy vov udd th boudy dut ubjt of d dg Th CMLC odd th bt th to of gy Kg to b hd by. Howv, th CMLC ud dty wth t to th to of gy o, yg tht th tto h bom moot d dm by o of th hod g of bt o Mh 15, 1997. W g wth th oto of th CMLC tht th vovg th boudy dut btw th Muty of Ct d Cy of g t ud quto whh mut t b ddd b bt th to of th ood bgy my b hd. h th g u tht jud quto o tmt d m to d do ot om to y wh both v, th tt of good od, th um
Held:
50
THE LOCAL GOVERNMENT CODE OF 1991 Annotated ur c vry w susp ci cs pig h l ucm f hr s clsly irl r lik h rs. W rriril jurisici is issu ris i h pig civil cs, uil ulss such issu is rslv wih iy, h iril urisici f h prps brgy wu b xrcis i iliy r i, rquisi r h cri f brgy is r is riil jurisici b prpry ii by ms bus r by mr r ss prm url buris wvr w gr wih h ci h mrly bcus plbisci h lry b hl i h cs f h prps Brgy pic h pii f h uicipliy f i h l ry b rr m cmic h issus ris by h uicipliy f i br h gis h hig f plbisci r h cri f Brgy pic r sill pig rmii br h ipl
SEC. 11. Selection and Tansfer of Local Gov ernment Site, Oces, and Facilities. - (a) The law or ordinance creating or merging local government units shall specify the seat of government om where govemental and corporate services shall be delivered In selecting said site, factors relating to geographical centralit accessibilit, availability of transportation and communication facilities, drainage and sanitation, development and eco nomic progress and other relevant considerations shall be taken into account b) Wen conditions and development in the local government unit conceed have signicantly changed subsequent to the establishment of the seat of govement its sanggunian may, aer pub lic hearing and by a vote of twothirds 2/3) of all its members transfer the same to a site better suited to its needs: Provided, however That no such transfer shall be made outside the territorial boundaries of the local govement unit conceed The old site together with the improvements thereon, may be disposed of by sale or lease or con verted to such other use as the sanggunian con cerned may deem benecial to the local govern ment unit conceed and its inhabitants
GENE PROVISIONS
Basic Priniples
(c) Local government ofces and acilities shall not be transerred, relocated, or converted to other uses unless public hearings are rst con ducted or the purpose and the concurrence o the majority o all the members o the sanggunian con cerned is obtained. SEC 12 Government Centers. - Provinces, cit ies, and municipalities shall endeavor to establish a government center where ofces, agencies, or branches o the National Govement, local govern ment units, or governmentowned or controlled corporations ma, as ar as practicable, be located In designating such a center, the local govement unit conceed shall take into account the existing acilities o national and local agencies and oces which may serve as the government center as con templated under this Section The National Gove ment, local government unit or governmentowned or controlledcorporation concerned shall bear the expenses or the construction o its buildings and acilities in the government center SEC 13 Naming of Local Government Units and Public Places, Streets and Structures (a) The sangguniang panlalawigan may, in consultation with the Philippine Historical Commission (PHC), change the name o the ollowing within its terri torial jurisdiction: (1) Component cities and municipalities, upon the recommendation o the sanggunian concerned; (2) Provincial roads, avenues, boulev ards, thoroughares, and bridges; (3) Public vocational ortechnical schools and other postsecondary and tertiary schools (4) Provincial hospitals, health centers and other health acilities; and (5) Ay other public place or building owned by the provincial government
51
52
THE LOCAL GOVERNMENT CODE OF 199 nnotated
(b) The sanggunians of highly urbanized cit ies and of component cities whose charters prohibit their voters om voting for provincial elective o cials, hereinaer referred to in this Code as inde pendent component cities, may, in consultation with the Philippine Historical Commission, change the name of the following within its territorial ju risdiction: (1) City barangays, upon the recommen dation of the sangguniang barangay con ceed; (2) City roads, avenues, boulevards, thor oughfares, and bridges; (3) Public elementary, secondar, and vocational or technical schools, community col leges, and non-chartered colleges; (4) City hospitals, health centers and other health cilities; and (5) Any other public place or building owned by the city govement. (c) The sanggunians of component cities and municipalities ma, in consultation with the Phil ippine Historical Commission, change the name of the following within its territorial jurisdiction () City and municipal barangays, upon recommendation of the sanggunang barangay concerned; () Cit, municipal and barangay roads, avenues, boulevards, thoroughfares, and bridges; (3) City and municipal public elemen tar, secondary and vocational or technical schools, post-secondary and other tertiary schools; (4) City and municipal hospitals, health centers and other health cilities; and () Any other public place or building owned by the municipal government.
GENERA PROVISIONS Basic rncples
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(d) None of the regoing local government unts, insttutons, places, or buldings shall be named aer a lving person, nor may a change of name be made unless r a justable reason and, in any case, not oener than once every ten (10) years. The name of a local government unit or a public place, street or structure with historical, cultural, or ethnic signficance shall not be changed, unless by a unanimous vote of the sanggunan conceed and n consultation with the PHC. (e) A change of name of a public school shall be made only upon the recommendation of the lo cal school board conceed ( A change of name of public hosptal, health centers, and other health faclities shall be made only upon the recommendation of the local health board conceed (g) The change of name of any local govern ment unit shall be eective only upon ratication n a plebiscite conducted r the purpose in the politcal unit directly aected (h) In any change of name, the Oce of the Presdent, the representatve of the legislative dis trct conceed, and the Bureau of Posts shall be noted. SEC. 14. Beginning of Corporate Existence. When a new local government unit is created, its corporate exstence shall commence upon the elec tion and quaication of ts chef executive and a majority of the members of ts sanggnian unless some other tme is xed therefor by the law or or dnance creatng t A.
Comments
This section settles the question of the beginning of the corpoate existence of a new ocal govenment unit which divided the upeme out in the case of Mj v ll,
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THE LOCA GOVERNMENT CODE OF 1991 nnotaed
The legal existence of a municipal corporation is to be determined by the law creating it Usuall, the law xes the beginning of the corporate existence of a municipal corporation o the eectiity of the law creating it or upon the organization of its gov ement or upon the qualication of its ocers. Where the law howee is silent as to the begnning of its corporate existence it shal commence upon the election and qualication of its chief executie and a majority of the ebers of its sanggunian. B.
Decided Cases
1 The City of Dagpan came into estence as a legal en tity upon the approal of the law creating it Howeer bere the City of Dapan can act as a public corporation or jurdical entit it is necessary that the ocials thereof be appoined or elected in order that it may transact business as such public corporation or cit MJIA v. BALOLONG, 81 Phi. 486 9/148 Feria, J.
Facts: Th n on quo wno. Th pon w ld onlo of h of Dgupn on Nov11 1947 h u pondn w ppond by h Pdn on D 30 1947 Aodng o Son 88 of A No 170 "h y gonmn podd n h hp hll b ognzd on uh d my b xd by h Pdn nd upon h qulon of h Cy Myo nd h pponmn o lon of h mmb of h unpl Bod Pnd ng h nx gn lon ponl nd munp ol h o of h mmb of h munpl bod hll b lld by pponmn of h dn of h Phlppn wh h onn of h Common on Apponmn h ldy of h pponmn of h pondn ounlo of Dgupn by h Pdn dpnd upon whh h Cy of Dgupn w d nd m no x n on Jun 20 1947 h d A No 170 bm o on nuy 1 1948 whn h y gon w ognd by Exu Od No 96 If h h nx gnl lon d o w h of No 1 1947 nd h dn hd no pow o ppon hn pondn He I dn h h Cy of Dgupn d by A o 10 m no xn lgl ny o publ opoon upon h
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