XI. LOCAL GOVERNMENTS Flashcards
XI. LOCAL GOVERNMENTS (1987 CONST., art. X; R.A. No. 7160)
A. Principles of Local Autonomy
In essence, local autonomy under the Philippine Constitution and laws allows local government units to have fiscal and legislative autonomy within certain limits, enabling them to address local needs and priorities more responsively.
However, they must still operate within the parameters set by national laws and the Constitution.
The key principles aim to balance local autonomy with adherence to national laws and interests, while still empowering local governments to govern their jurisdictions effectively.
Key principles:
Local governments have the right to an equitable share in the national taxes and revenues (Section 6) to fund their operations and services.
Local governments can create their own sources of revenues through taxes, fees, and charges (Section 5), subject to limitations set by Congress.
Local legislative bodies can have sectoral representation as prescribed by law (Section 9).
Local governments can group themselves, consolidate resources, and coordinate efforts for mutually beneficial purposes (Section 13).
Local governments have the power to vote on matters like the creation, merger, abolition of local government units and their boundaries (Section 10).
Local governments are entitled to sectoral representation in national agencies and bodies (Section 14).
XI. LOCAL GOVERNMENTS (1987 CONST., art. X; R.A. No. 7160)
B. Local Government Units
- Powers of Local Government Units
a. Police Power and General Welfare Clause
b. Eminent Domain and Taxation
Police Power and General Welfare Clause
- Police Power: Authority to enact ordinances for public welfare, safety, and order.
- General Welfare Clause: Powers necessary for efficient governance and promotion of general welfare.
Eminent Domain and Taxation
- Eminent Domain: Power to expropriate property for public use with just compensation.
- Taxation: Authority to levy taxes and fees to fund local projects and services.
XI. LOCAL GOVERNMENTS (1987 CONST., art. X; R.A. No. 7160)
B. Local Government Units
- Powers of Local Government Units
c. Requisites of a Valid Ordinance; Local Initiative and Referendum
Here are the key concepts regarding the validity of ordinances, along with brief examples for each point and an acronym for easy memorization:
Key Concepts and Examples
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Not Contravene the Constitution or Any Statute:
- Example: An ordinance that prohibits the sale of alcohol on Sundays, which contradicts a national law allowing such sales, would be invalid.
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Not Unfair or Oppressive:
- Example: An ordinance imposing excessively high fines for littering that disproportionately affects low-income residents would be considered oppressive.
-
Not Partial or Discriminatory:
- Example: An ordinance that allows only certain businesses to operate in a specific area based on ownership would be discriminatory.
-
Not Prohibit, but May Regulate Trade:
- Example: An ordinance requiring food vendors to obtain permits and adhere to health standards regulates trade without outright prohibiting it.
-
General and Consistent with Public Policy:
- Example: An ordinance promoting the use of renewable energy sources aligns with public policy goals of sustainability and environmental protection.
-
Not Unreasonable:
- Example: An ordinance mandating that all dogs in the city wear muzzles at all times, regardless of behavior, would be deemed unreasonable.
Acronym for Easy Memorization: CUDGRU
- C: Contravene the Constitution or Statute X
- U: Unfair or Oppressive X
- D: Discriminatory X
- G: General and Consistent with Public Policy
- R: Regulate Trade (not prohibit)
- U: Unreasonable X
Moreover, substantively, the ordinance
(i) must not contravene the Constitution or any statute;
(ii) must not be unfair or oppressive;
(iii) must not be partial or discriminatory;
(iv) must not prohibit, but may regulate trade;
(v) must be general and consistent with public policy; and
(vi) must not be unreasonable.
XI. LOCAL GOVERNMENTS (1987 CONST., art. X; R.A. No. 7160)
B. Local Government Units
- Powers of Local Government Units
d. Corporate Powers
Under the Local Government Code of the Philippines (R.A. No. 7160), local government units (LGUs) possess specific corporate powers that enable them to act as legal entities. These powers allow LGUs to enter into contracts, acquire and dispose of property, and perform other activities necessary to fulfill their functions. Here is a brief explanation of these corporate powers with illustrative examples:
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Power to Sue and Be Sued
- Explanation: LGUs can initiate legal action and can also be the subject of lawsuits.
- Example: If a municipality is not paid for the services it rendered, it can sue the debtor in court to recover the amount due. Conversely, if an individual or entity believes the municipality has violated a contract, they can sue the municipality for breach of contract. -
Power to Acquire and Convey Real or Personal Property
- Explanation: LGUs can acquire, hold, lease, and dispose of real and personal property to achieve their objectives.
- Example: A city government can purchase a parcel of land to build a new public school. Similarly, it can sell an old municipal building that is no longer needed. -
Power to Enter into Contracts
- Explanation: LGUs can enter into contracts necessary for the implementation of their projects and activities.
- Example: A provincial government can enter into a contract with a private construction company to build a new hospital. The contract would outline the terms and conditions of the construction project. -
Power to Exercise Eminent Domain
- Explanation: LGUs can exercise the power of eminent domain, or expropriation, to acquire private property for public use, with just compensation to the owner.
- Example: A municipality may expropriate private land to expand a public road. The landowner would be compensated fairly based on the market value of the property. -
Power to Tax and Generate Revenue
- Explanation: LGUs have the power to levy taxes, fees, and charges to generate revenue for local development projects and services.
- Example: A city government can impose business taxes on commercial establishments within its jurisdiction. The revenue collected can be used to fund infrastructure projects like road repairs and public parks. -
Power to Enter into Public-Private Partnerships (PPP)
- Explanation: LGUs can engage in partnerships with private entities to implement development projects that benefit the public.
- Example: A municipality can enter into a PPP with a private company to develop a new market facility. The private partner could finance, build, and operate the market, with revenue-sharing arrangements benefiting both parties. -
Power to Contract Loans and Borrow Funds
- Explanation: LGUs can contract loans and other forms of credit to finance development projects, subject to limitations set by law.
- Example: A provincial government can secure a loan from a financial institution to finance the construction of a new provincial hospital. The loan would be repaid over time from the province’s revenue. -
Power to Grant Franchises and Licenses
- Explanation: LGUs can grant franchises, licenses, or permits to operate businesses and services within their jurisdiction.
- Example: A city government can grant a franchise to a private company to operate a public transportation service within the city. The franchise agreement would specify the routes, service standards, and fees.
These corporate powers provide LGUs in the Philippines with the legal capacity to manage resources, implement programs, and engage in activities that promote local development and public welfare. They enable LGUs to act independently and effectively in fulfilling their roles and responsibilities.
XI. LOCAL GOVERNMENTS (1987 CONST., art. X; R.A. No. 7160)
B. Local Government Units
- Local Elective and Appointive Officials
XI. LOCAL GOVERNMENTS (1987 CONST., art. X; R.A. No. 7160)
B. Local Government Units
- Rules of Succession
XI. LOCAL GOVERNMENTS (1987 CONST., art. X; R.A. No. 7160)
B. Local Government Units
- Term Limitations and Recall
Question 1:
A city council passed an ordinance imposing a tax on short-term rentals like Airbnb listings. A property owner challenges the ordinance, arguing that it goes beyond the scope of the city’s power to create its own revenue sources under Section 5 of the Local Government Code. The city council argues that regulating short-term rentals is a legitimate exercise of its police power to promote public safety and order in residential neighborhoods.
Is the ordinance valid?
(A) Yes, the ordinance is a valid exercise of the city’s power to create its own revenue sources.
(B) Yes, the ordinance is valid because it regulates short-term rentals for public safety reasons.
(C) No, the ordinance is invalid because it imposes a tax on a subject not traditionally subject to local taxation.
(D) No, the ordinance is invalid because it burdens a newly emerging industry not contemplated by the Local Government Code.
Answer: (C)
Legal Reasoning:
While Section 5 of the Local Government Code grants local governments the power to create their own revenue sources through taxes, fees, and charges, this power is not without limitations. Local government units cannot impose taxes on subjects traditionally under national taxation or those not explicitly granted to them by law.
Short-term rentals are a relatively new concept, and taxation on such activities may not have been explicitly contemplated by the framers of the Local Government Code. In this case, the city’s justification of regulating short-term rentals for public safety can be addressed through separate ordinances or licensing requirements. However, imposing a tax on this specific activity ventures into an area potentially reserved for national tax policy.
Question 2:
A provincial governor proposes a law requiring all tricycle drivers in the province to wear helmets while operating their vehicles. The Sangguniang Panlalawigan (provincial legislature) rejects the proposal, arguing that regulating tricycles falls under the power of the Land Transportation Office, a national agency. The governor argues that road safety is a local concern, and the province has the authority to enact laws promoting public safety under its police power.
Can the provincial government enact a law requiring tricycle drivers to wear helmets?
(A) Yes, the provincial government can enact such a law under its general police power.
(B) Yes, the provincial government can enact such a law because tricycles primarily operate within the province.
(C) No, the provincial government cannot enact such a law because regulating tricycles falls under the national government’s authority.
(D) No, the provincial government cannot enact such a law without prior approval from the Land Transportation Office.
Answer: (C)
Legal Reasoning:
The principle of local autonomy grants local government units the power to enact ordinances to promote public safety and order within their jurisdictions. However, this power is concurrent with the national government’s police power. When a national law or regulation already exists on a specific matter, local governments cannot enact ordinances that contradict or are inconsistent with national law.
In this case, the Land Transportation Office has national authority over tricycle regulations, including safety standards. While the provincial government has a legitimate interest in public safety, enacting a law requiring tricycle drivers to wear helmets would contravene existing national regulations overseen by the Land Transportation Office. The province could petition the Land Transportation Office to consider a helmet requirement or adopt complementary measures that support the national regulations.
- A municipality plans to construct a new public market to replace the existing dilapidated structure. However, the proposed site for the new market is currently occupied by several private residential properties. Which of the following corporate powers can the municipality exercise to acquire the necessary land?
a) Power to sue and be sued
b) Power to exercise eminent domain
c) Power to contract loans and borrow funds
d) Power to grant franchises and licenses
Answer: b) Power to exercise eminent domain
Legal Reasoning: The power to exercise eminent domain, or expropriation, allows LGUs to acquire private property for public use or purpose, subject to the payment of just compensation to the property owner. In this case, the construction of a new public market qualifies as a public purpose, and the municipality can exercise its eminent domain power to acquire the private residential properties occupying the proposed site, provided that the owners are fairly compensated based on the market value of their properties.
- A provincial government has entered into a contract with a private company to develop and operate a new provincial hospital under a public-private partnership (PPP) arrangement. However, the private company has encountered financial difficulties and is unable to complete the project. Which of the following corporate powers can the provincial government exercise to address this situation?
a) Power to enter into contracts
b) Power to acquire and convey real or personal property
c) Power to tax and generate revenue
d) Power to sue and be sued
Answer: d) Power to sue and be sued
Legal Reasoning: The power to sue and be sued allows LGUs to initiate legal action or be the subject of lawsuits. In this case, the provincial government can exercise this power to sue the private company for breach of contract or non-performance of its obligations under the PPP agreement. By filing a lawsuit, the provincial government can seek legal remedies, such as damages or specific performance, to address the private company’s failure to complete the hospital project as per the terms of the contract.
