Part 1. LOCAL GOVERNMENTS

Question 1

What is the nature of Local Government Units?

Answer 1

Under the 1987 Constitution, local governments or local government units
(LGUs) or municipal corporations proper are referred to as “territorial and
political subdivisions” (Section 1, Article X, 1987 Constitution).

An LGU is a public office, a public corporation, and is classified as a
municipal corporation proper.

Question 2

What does it mean by territorial and political subdivision?

Answer 2

If we talk about political subdivision, then we look at local governments as agents of the national governments and therefore, tasked to perform certain government functions.

If we talk about territorial subdivision, we look at it as a place.

Question 3

What are the territorial and political subdivisions of the Local Government?

Answer 3

Provinces
Cities
Municipalities
Barangays

Question 5

What are the elements of an LGU?

Answer 5

The four elements of an LGU are:
(1) legal creation;
(2) corporate name;
(3) inhabitants; and
(4) place or territory
(Public Corporations, Ruperto G. Martin, 1985).

Question 6

What is the jurisdiction of LGU?

Answer 6

An LGU can only exercise its powers within its territorial boundary
or jurisdiction.

Question 7

What is the EXCEPTION to the territorial jurisdiction of LGU?

Answer 7

An LGU can only exercise its powers within its territorial boundary or jurisdiction. Its powers are intramural. As exceptions, an LGU can exercise its powers outside the subdivision (extramural) in
three occasions; namely,

(1) protection of water supply;
(2) prevention of nuisance; and
(3) police purposes.

(Public Corporations, Ruperto G. Martin, 1985). Forestlands, although under the management of the DENR, are not exempt from the territorial application of municipal laws, for local government units legitimately exercise their powers of government over their defined territorial jurisdiction
(Aquino v. Municipality of Malay, Aklan, G.R. No. 211356, September 29, 2014).

NB:
Local governments are administrative agencies and agencies of Government distinguished from the National Government, which refers to the entire machinery of the central government

(Sections 2[4] and [2], 1987 Administrative Code)

Question 8

What does “Agency of the Government” mean?

Answer 8

“Agency of the Government” refers to any of the various units of the Government, including a department, bureau, office,
instrumentality, or government-owned or controlled corporations, or a local government or a distinct unit therein.

Question 9

What are public corporations?

Answer 9

Public corporation is a corporation that is created by the state, either by general or special act, for purposes of administration of local government or rendering of service in the public interest.

Question 10

What are the classifications of public corporations?

Answer 10

Classes of public corporations:
i. Quasi-public corporation/quasi municipal corporation
–
created by the state for a narrow or limited purpose; a private corporation created pursuant to the Corporation Code that renders public service or supplies public wants

Examples: Public utility companies, electric companies, water districts, telecommunication companies

ii. Real public corporation/Municipal corporation
–
a body politic and corporate constituted by the incorporation of the inhabitants for the purpose of local government.

Question 11

see

Answer 11

https://www.scribd.com/document/156180568/Municipal-Corporations-public-corporations

Question 12

Quasi-corporations

Answer 12

All quasi-corporations are GOCCs

A government-owned and -controlled corporation (GOCC) must be
organized either as a stock or non-stock corporation. (MIAA vs.
CA, G.R. No. 155650, July 20, 2006).
i. A GOCC is vested by law with a legal personality separate and
distinct from those acting for and in its behalf and, in general,
from the people comprising it (MIAA vs. CA, G.R. No. 155650,
July 20, 2006).
12 January 2016
Reviewer on Local Government Law
Alberto C. Agra, Ateneo Law School
4
ii. A GOCC created through special charter must meet two
conditions, namely: (a) it must be established for the common
good; and (b) it must meet the test of economic viability
(Section 16, Article XII, 1987 Constitution).
Congress shall not, except by general law, provide for the
formation, organization, or regulation of private corporations.
Government-owned or controlled corporations may be created
or established by special charters in the interest of the
common good and subject to the test of economic viability.
iii. By definition, three attributes make an entity a GOCC: first, its
organization as stock or non-stock corporation; second, the
public character of its function; and third, government
ownership over the same. Possession of all three attributes is
necessary to deem an entity a GOCC.
(Funa vs. MECO, G.R. No. 193462, February 4, 201

In order to qualify as a GOCC, a corporation must also, if not
more importantly, be owned by the government (Funa vs.
MECO, G.R. No. 193462, February 4, 2014).

Examples of GOCCs are: GOCCs incorporated under the
Corporation Code, subsidiaries of GOCCs, Government
Financial Institutions (GFIs), Water Districts, governmentacquired asset corporation (MIAA vs. CA, G.R. No. 155650, July
20, 2006).

Question 13

What are the two-fold characteristics of LGs?

Answer 13

1. governmental or public; and
2. proprietary or
   private
   (City of Manila vs. Intermediate Appellate Court, G.R. No. 71159,
   November 15, 1989).

Question 14

Differentiate governmental or public and propriety or private powers.

Answer 14

Governmental powers are those exercised in administering the powers of the state and promoting the public welfare and they
include the legislative, judicial, public and political.

Examples are: delivery of sand for a municipal road
(Municipality of San Fernando, La Union vs. Firme, G.R. No. L-52179, April 8, 1991), local legislation, control over police and abatement of nuisance.

Proprietary powers, on the other hand, are exercised for the special
benefit and advantage of the community and include those which are
ministerial, private and corporate (Municipality of San Fernando, La
Union vs. Firme, G.R. No. L-52179, April 8, 1991).

Examples are: public
cemeteries, markets, ferries and waterworks.

Therefore, the purpose of LGs is also two-fold, i.e., LGs are agents of
the State in the exercise of government or public powers, and are
agents of the community and people in the exercise of proprietary or
private powers

(Lina, Jr. vs. Paňo, G.R. No. 129093, August 30, 2001;
Magtajas vs. Pryce Properties and Philippine Amusements and
Gaming Corporation, G.R. No. 111097, July 20, 1994; Basco vs.
Philippine Amusements and Gaming Corporation, G.R. No. 91649, May
14, 1991).

Question 15

Does the rule on corporate succession applies to local governments?

Answer 15

Yes
3.1 They have the power of continuous succession under their corporate
name.
(Section 22, Local Government Code of 1991 or 1991 LGC).

3.2 When there is a perfected contract executed by the former Governor,
the succeeding Governor cannot revoke or renounce the same
without the consent of the other party

(Government Service Insurance
System vs. Province of Tarlac, G.R. No. 157860, December 1, 2003).

Question 16

(Section 3, Article X, 1987
Constitution).

Answer 16

Congress shall enact a local government code which shall provide for a more
responsive and accountable local government structure instituted through a
system of decentralization with effective mechanisms of recall, initiative, and
referendum, allocate among the different local government units their powers,
responsibilities, and resources, and provide for the qualifications, election,
appointment and removal, term, salaries, powers and functions and duties of
local officials, and all other matters relating to the organization and operation of
the local units.

Question 17

Does the governor has the power to appoint officials and employees of sangguniang panlalawigan?

Answer 17

No.
While the Governor has the authority to appoint officials and employees whose salaries are paid out of the provincial funds, this does not extend to the officials and employees of the sangguniang panlalawigan because such authority is lodged with the Vice-Governor.

(Atienza vs. Villarosa,
G.R. No. 161081, May 10, 2005).

The authority to appoint casual and job order employees of the
sangguniang panlalawigan belongs to the Vice-Governor. The
authority of the Vice-Governor to appoint the officials and employees
of the sangguniang panlalawigan is anchored on the fact that the
salaries of these employees are derived from the appropriation
specifically for said local legislative body. Accordingly, the appointing
power of the Vice-Governor is limited to those employees of the
sangguniang panlalawigan, as well as those of the Office of the ViceGovernor, whose salaries are paid out of the funds appropriated for
12 January 2016
Reviewer on Local Government Law
Alberto C. Agra, Ateneo Law School
7
the sangguniang panlalawigan (Atienza vs. Villarosa, G.R. No. 161081,
May 10, 2005).

Question 18

Can Congress provide for a system of checks and balances?

Answer 18

YES
In allocating local powers, Congress may provide for a system of
checks and balances.

a. The system of checks and balances under the current system is
statutorily, not constitutionally (unlike the three branches of
National Government), prescribed.

b. Under the 1983 Local Government Code, the local chief executive
performed dual functions – executive and legislative, he/she being
the presiding officer of the sanggunian. Under the 1991 LGC, the
union of legislative and executive powers in the office of the local
chief executive has been disbanded, so that either department
now comprises different and non-intermingling official
personalities with the end in view of ensuring better delivery of
public service and provide a system of check and balance between
the two (Atienza vs. Villarosa, G.R. No. 161081, May 10, 2005).

Question 19

What are the types of Local Government Units?

Answer 19

There are five levels/ kinds of political and territorial subdivisions, namely: (1)
Autonomous Regions; (2) Provinces; (3) Cities; (4) Municipalities; and (5)
Barangays (Section 1, Article X, 1987 Constitution).

Question 20

What consist the Autonomous Region?

Answer 20

a. Autonomous Regions consist of provinces, cities, municipalities,
and geographical areas which share common and distinctive historical and cultural heritage, economic and social structures, and other relevant characteristics (Section 15, Article X, 1987
Constitution).

b. Autonomous Regions are under the general supervision of the
President
(Section 16, Article X, 1987 Constitution).
The President shall exercise general supervision over autonomous
regions to ensure that the laws are faithfully executed.
c. Section 20, Article X of the 1987 Constitution enumerates the
irreducible legislative powers of autonomous regions.
d. Regional peace and order, and defense and security shall be the
responsibility of the local police agencies and the National
Government respectively (Section 21, Article X, 1987 Constitution).
Whatever power or authority is not vested on the autonomous
regions remains with the National Government (Section 17, Article
X, 1987 Constitution). Residual regional powers lie with the
National Government.

Question 21

What are the three sub-types of cities?

Answer 21

There are three sub-types of cities, namely: (1) highly-urbanized (HUC)
 Independent from the province by reason of status. It’s outside the supervisory power of the province;
(2) independent cities;
Independent in the sense that the charter prohibits the voters from voting for provincial elective posts and this is outside the supervisory power of the province
 Inhabitants cannot vote for provincial elective posts neither can they
run for provincial elective posts not because of income factor but
simply because the charter prohibits the voters from voting or running
for provincial posts; and
(3) component cities (CC).
Inhabitants can vote for provincial candidates and can run for
provincial elective posts.

Question 22

Who supervise HUC and IC?

Answer 22

a. The highly-urbanized cities and independent component cities are
not under the supervision of provinces and their voters are not qualified to vote for provincial officials
(Section 12, Article X, 1987Constitution; Section 29, 1991 LGC).
These cities are under the direct supervision of the President (Section 25, 1991 LGC) and are independent of provinces.

Question 23

Why is HUC not subject to provincial oversight?

Answer 23

a.1. An HUC is not subject to provincial oversight because the complex and varied problems in an HUC due to a bigger population and greater economic activity
require greater autonomy. The provincial government stands to lose the power to ensure that the local government officials act within the scope of its prescribed powers and functions, to review executive
orders issued by the city mayor, and to approve resolutions and ordinances enacted by the city council.
The province will also be divested of jurisdiction over disciplinary cases concerning the elected city officials
of the new HUC, and the appeal process for
administrative case decisions against barangay officials of the city will also be modified accordingly. Likewise,
the registered voters of the city will no longer been titled to vote for and be voted upon as provincial officials
(Umali vs. COMELEC, G.R. No. 203974, April 22,
2014).

Question 24

Who supervise Component cities?

Answer 24

Component cities are under the supervision of provinces and their
voters elect provincial officials (Section 12, Article X, 1987
Constitution).

Question 25

Who can create LGs?

Answer 25

Only Congress and, by authority of law, local legislative councils, can create
specific LGs. Creation is a legislative act. The enabling law is referred to as the
charter of the LGU.

Question 26

Can the sangguniang panlalawigan and sangguniang panglungsod create barangays?

Answer 26

The sangguniang panlalawigan and sangguniang panlungsod can create barangays (Section 6, 1991 LGC). The sangguniang bayan has no such authority under the 1991 LGC.

Question 27

When LGU is deemed created?

Answer 27

An LGU is deemed created on the day its charter takes effect.
LGC 1991 Section 10

Question 28

When does charter takes effect?

Answer 28

a. It is deemed incorporated on the day the charter is APPROVED by MAJOTIY of the VOTES cast in a PLEBISCITE in the political units directly affected.
(Section 10, Article X, 1987 Constitution; Section 10, 1991 LGC).

Question 29

What is plebiscite requirement under the 1991 LGC?

Answer 29

Section 10 of the 1991 LGC
No creation, division, merger, abolition or substantial alteration of boundaries of local government units shall be made unless APPROVE by MAJORITY of the VOTES case in a PLEBISCITE in the political unit or units directly affected. Said plebiscite shall be conducted by the COMELEC.

Question 30

+
Is plebiscite required in conversion of municipality to an independent component city?

Answer 30

A plebiscite is required when a municipality is converted into an independent component city and when the latter is later
converted to a component city as there was an “upgrade” and “downgrade” particularly insofar as taxes and supervision are
concerned.
(Miranda vs. Aguirre, G.R. No. 133064, September 16, 1999).

Question 31

Is boundary dispute a prejudicial question to a plebiscite?

Answer 31

A boundary dispute presents a prejudicial question to a plebiscite and thus must be resolved prior to the conduct of any plebiscite.
(City of Pasig vs. Commission on Elections, G.R.No. 125646, September 10, 1999).

Question 32

Who has jurisdiction over plebiscite protest cases?

Answer 32

The Commission on Elections, not the regular courts, has jurisdiction over plebiscite protest cases.
(Buac vs. Commission on Elections, G.R. No. 155855, January 26, 2004).

Question 33

When is the beginning of corporate existence?

Answer 33

When a new local government unit is created, its corporate existence shall commence upon the election qualifications of its chief executive and majority of the members of its sanggunian, unless some other time is fixed therefor by the law or ordinance creating it.

Question 34

What are the requirements for the creation of local governments?

Answer 34

The requirements for creation of local governments are: (1) population; (2)
income; and (3) land area.

Question 35

What are the specific requirements for every type or level of LGU?

Answer 35

Under the 1991 LGC, these are specific requirements for every type or
level of LGU (Sections 461, 450, 442, 386, 1991 LGC):

INCOME
Province- 20 M
C- 20 M
CC- 50 M
HUC-100 M
Municipality- 2.5M

POPULATION
Province- 250k
CC- 150K
HUC- 200K
Municipality- 25k
Barangay- 1000
5000- metro

LAND AREA
Province- 2000 km2
City- 100 km2
Municipality 50 km
Barangay- contiguous

Question 36

For purposes of creation, which requirement is material?

Answer 36

For purposes of creation, only the land area is material. The law is
clear.
a. The aggregate territory which includes waters is not the criteria
for creation under the 1991 LGC (Section 131 [r]).
b. A charter states the boundaries of the local government. Areas or
barangays not mentioned are excluded (Municipality of Nueva Era
vs. Municipality of Marcos, G.R. No. 169435, February 27, 2008).