LGC

1. Chapter 1 - 5

2. WHAT IS POLITICAL LAW?

3. DIVISIONS OF POLITICAL LAW:
(a) Constitutional Law
(b) Administrative law
(c) Law on Municipal Corporations
(d) Law of Public Officers
(e) Election Laws
(f) Public International Law

4. CORPORATION DEFINED.
(a) Artificial being
(b) Operation of law
(c) Succession
(d) Powers, attributes, and properties

5. CLASSES OF CORPORATIONS
(a) Public
(b) Private
(c) Quasi-Public

6. CLASSES OF CORPORATIONS
(a) Public
- Quasi Corporations
- Municipal Corporation
(b) Private
(c) Quasi-Public

7. MUNICIPAL CORPORATION DEFINED.
- a body politic and corporate constituted by the
incorporation of the inhabitants for purposes of local
government thereof
- it is established by law partly as an agency of the
state to assist in the civil government of the country,
but chiefly to regulate and administer the local or
internal affairs of the city, town, or district which is
incorporated

8. ELEMENTS OF MUNICIPAL
CORPORATIONS:
1. Legal creation or incorporation
2. Corporate name
3. Inhabitants
4. Territory

9. LOCAL GOVERNMENT DEFINED.
- a political subdivision of a nation or state which is
constituted by law and has substantial control of
local affairs
- it has a dual nature and function, namely:
 public or governmental
 private or corporate

10. SOURCES OF POWER OF LOCAL
GOVERNMENTS
 The 1987 Constitution
 The Local Government Code of 1991
 All existing laws, acts, decrees, executive orders,
proclamations and administrative regulations

11. CLASSIFICATION OF LOCAL
GOVERNMENT POWERS
 Express Powers
 Implied Powers
 Inherent Powers
 Legislative and Executive Powers
 Intramural and Executive Powers
 Governmental and Municipal Powers
 Mandatory and Discretionary Powers

12. KINDS OF PROPERTIES OF
LOCAL GOVERNMENT UNITS
 Property for public use
 Patrimonial property

13. TYPES OF LOCAL GOVERNMENT
 De jure municipal corporations
 Municipal corporations by prescription
 De facto municipal corporations
- a valid law authorizing incorporation
- an attempt in good faith to organize it
- a colorable compliance with law
- an assumption of corporate powers

14. Local Government,
1987 Constitutional Provisions
Sec. 25, Art. II, 1987 Constitution, provides;
“The State shall ensure the autonomy of local
governments.”
Congress SHALL enact a local government code (a)
to provide a more responsive and accountable local
government structure initiated through a system of
DECENTRALIZATION with effective mechanisms of
recall, initiative and referendum

15. AUTONOMY
 Decentralization of administration (deconcentration)
 Decentralization of power (devolution).

16. ADMINISTRATIVE REGIONS vs.
AUTONOMOUS REGIONS
Administrative Regions are mere grouping
of contiguous provinces for administrative
purposes, not for political representation whereas,
Autonomous Regions creation of autonomous
regions in Muslim Mindanao and the Cordilleras,
which is unique to the 1987 Constitution,
contemplates grant of political autonomy and not
just administrative autonomy to those regions.

17. CHAPTER 1
THE CODE, POLICY AND
APPLICATION

18. Section 1, Local Gov’t Code
Title
This Act shall be known and cited as the "Local
Government Code of 1991"

19. Section 2, Local Gov’t Code
Declaration of Policy
LGU to enjoy genuine and meaningful autonomy to
enable them to attain their fullest development as
self-reliant communities and make them effective
partners in attainment of national goals – thru
decentralization. National agencies and offices to
conduct periodic consultations with appropriate
LGUs, NGOs and POs, before any project or
program is implemented in their jurisdiction.

20. LINA VS. PANO 364 SCRA 76
The SC ruled that, the game of lotto is a game of chance duly
authorized by the national government through an Act of
Congress (RA1169), as amended by BP42, the law granting a
franchise to the PCSO and allows it to operate lotteries. This
statute remains valid today. While lotto is a game of chance, the
national government deems it wise and proper to permit it.
Hence, the Provincial Board of Laguna, as a LGU, cannot issue
a resolution or an ordinance that would seek to prohibit permits.
What the national legislature allows by law, such as lotto, a
provincial board may not disallow by ordinance or resolution.

21. Section 3, Local Gov’t Code
Operative Principles of Decentralization
Section 4, Local Gov’t Code
Rules of Interpretation
Section 5, Local Gov’t Code
Scope of Application

22. CHAPTER 2
GENERAL POWERS AND
ATTRIBUTES OF LOCAL
GOVERNMENT UNITS

23. Section 6, Local Gov’t Code
Authority to Create Local
Government Unit

24. Section 7, Local Gov’t Code
Creation/Conversion of Local
Government Unit

25. Indicators of viability in the creation of
 INCOME
 POPULATION
 LAND AREA

26. Section 8, Local Gov’t Code
Division / Merger of existing of Local Government
Unit
Section 9, Local Gov’t Code
Abolition of Local Government Unit

27. Section 10, Local Gov’t Code
Plebiscite Requirement
to be conducted by COMELEC within 120
days from date of effectivity of
law/ordinance effecting such action, unless
said law/ordinance fixes another date.

28. Section 11, Local Gov’t Code
Selection and Transfer of Local Government Sites,
Offices and Facilities
Section 12, Local Gov’t Code
Government Centers
Section 13, Local Gov’t Code
Naming of Local Government Units and Public
Places, Streets and Structures

29. Section 14, Local Gov’t Code
Beginning of Corporate
Existence

30. MEJIA vs. BALOLING 81 PHIL 486
Since a city is a public corporation or
juridical entity, and as such cannot operate or
transact business by itself but through agents
and officials, it is necessary that officials
thereof be appointed or elected in order
that it may transact business as such public
corporation or city.

31. Section 15, Local Gov’t Code
Political and Corporate Nature of
Local Government Units

32. Municipal Corporation in the
Philippines:
 Province (Sec. 459, LGC)
 City (Sec. 448)
 Municipality (Sec. 440, LGC)
 Barangay (Sec. 384, LGC)
 Autonomous Regions

33. Section 16, Local Gov’t Code
General Welfare Clause

34. Limits on LGUs Police Power
 Exercisable only within territorial limits of LGU
 Equal Protection Clause
 Due Process Clause
 Not contrary to the Constitution and the laws

35. TAN vs. PEREÑA, G.R. No. 149743, 02/18/2005
In 1993, the Municipal Council of Daanbantayan,
Cebu enacted municipal ordinances which eventually
allowed the operation of not more than three cockpits
in the municipality. In 1995, Petitioner (Leonardo Tan)
applied for a license to operate a cockpit. Respondent
(Socorro Perena), who was an existing licensee, filed
a complaint with the RTC to enjoin Petitioner from
operating his cockpit citing that the challenged
ordinance allowing the operation of not more than
three cockpits violated PD449.

36. The trial court dismissed the complaint and upheld
Petitioner’s franchise reasoning that, while the
ordinance may be in conflict with PD449, any doubt in
interpretation should be resolved in favor of the grant
of more power to LGUs under the LGC’s principle of
devolution.
Whether the municipal ordinance (Ordinance 7)
contravenes the Cockfighting Law as to the
number of cockpits allowed per municipality?

37. Petition is denied. Cockfighting Law arises from a
valid exercise of police power by the national
government. Of course, local governments are
similarly empowered under Section 16 of the Local
Government Code. We do not doubt, however, the
ability of the national government to implement police
power measures that affect the subjects of municipal
government, especially if the subject of regulation is a
condition of universal character irrespective of
territorial jurisdictions. Cockfighting is one such
condition.

38. A municipal ordinance must not contravene the
Constitution or any statute, otherwise it is void.
Ordinance No. 7 unmistakably contravenes the
Cockfighting Law in allowing three cockpits in
Daanbantayan.

39. Section 17, Local Gov’t Code
Basic Services and Facilities

40. Section 18, Local Gov’t Code
Power to Generate & Apply
Resources

41. SMART COMMUNICATIONS, INC. vs. CITY OF
DAVAO, G.R. No. 155491, 09/16/2008
The Tax Code of Davao City, Sec. 1, Art. 10 thereof,
provided that: “Notwithstanding any exemption
granted by any law or other special law, there is
hereby imposed a tax on businesses enjoying a
franchise, at a rate of seventy-five percent (75%) of
one percent (1%) of the gross annual receipts for the
preceding calendar year based on the income or
receipts realized within the territorial jurisdiction of
Davao City.

42. Whether or not Smart is liable to pay the franchise tax
imposed by the City of Davao.
YES. The SC find that there is no violation of Article III,
Section 10 of the 1987 Philippine Constitution. Tax
exemptions are never presumed and are strictly construed
against the taxpayer and liberally in favor of the taxing
authority. They can only be given force when the grant is
clear and categorical. Moreover, Smarts franchise was
granted with the express condition that it is subject to
amendment, alteration, or repeal. In this case since there is
doubt it must be resolved in favor of the City of Davao. The
“in lieu” of all taxes clause applies only to national internal
revenue taxes and not to local taxes.

43. Section 19, Local Gov’t Code
Eminent Domain

44. In the case of MUN. OF PARANAQUE vs. V.M.
REALTY CORP, LGC in effect when complaint for
expropriation was filed, explicitly requires an
ordinance for this purpose. If Congress intended to
allow LGU to exercise eminent domain through
MERE resolution, it would have simply adopted the
language of the previous local government code (BP
337 of 1983).

45. Where the law is clear and ambiguous, the law is
applied according to the express terms. Eminent
Domain necessarily involves a derogation of a
fundamental or private right of the people, hence,
manifest change in legislative language from
“resolution” under BP337 to “ordinance” under
RA7160 demands strict interpretation.

46. Section 20, Local Gov’t Code
Reclassification of Lands

47. Agricultural Land, defined: Those public lands
acquired from Spain which are not timber or mineral
land; land devoted to agriculture or to any growth.
Grounds for Reclassification: (i) When land ceases
to be economically feasible and sound for agricultural
purposes as determined by the Dept. of Agriculture;
and (ii) when land shall have substantially greater
economic value for residential, commercial or
industrial purposes as determined by the Sanggunian

48. Section 21, Local Gov’t Code
Closure and Opening of Roads

49. Section 22, Local Gov’t Code
Corporate Powers

50. Corporate Powers
 To continuous succession in its corporate
name;
 To sue and be sued;
 To have and use a corporate seal;
 To acquire and convey real or personal
property;
 To enter into contracts; such other powers as
are granted corporation subject to limits
provided in LGC and other laws.

51. Section 23, Local Gov’t Code
Authority to Negotiate and
Secure Grants

52. Section 24, Local Gov’t Code
Liability for Damages

53. In the case of CORREA vs. CFI of BULACAN,
municipal corporation is responsible only for acts of
its officers only when they have acted by authority of
law and in conformity with requirements. A public
officer who commits a tort or wrongful act, done in
excess or beyond the scope of his duty, is not
protected by his office and is personally liable therefor
like any private individual.

54. In the case of PILAR vs. SANGGUNIANG BAYAN
OF DANSOL, PANGASINAN, municipal mayor is
personally liable for damages (moral and exemplary)
and attorney’s fees for having vetoed in bad faith,
resolution appropriating funds for salary of the vice
mayor.

55. In the case of MENDOZA vs DE LEON, operation of
ferry service is a proprietary function. Municipality is
negligent and therefore liable for having awarded
franchise to operate ferry service to another
notwithstanding previous grant of franchise to the
plaintiff.

56. In the case of MUNICIPALITY OF JAASAN,
MISAMIS ORIENTAL vs. GENTALLAN, there being
no malice or bad faith in the illegal dismissal and
refusal to reinstate respondent Gentallan by her
superior officers, the latter cannot be held personally
liable for her back salaries. Municipal government,
ergo, should disburse funds to answer for her claims.

57. • Liability for contracts
• As to tort liability

58. CHAPTER 3
INTERGOVERNMENTAL
RELATIONS

59. Section 25, Local Gov’t Code
National Supervision over Local
Government Units

60. President’s General Supervision
 directs over provinces, highly urbanized cities
and independent component cities, (through
provinces over) component cities and
municipalities; and (through cities and
municipalities over) barangays;
 to ensure that acts of LGU are within the scope
of their prescribed powers and functions;
Article X, Section 16 of 1987 Constitution –
President shall exercise general supervision over
autonomous regions to ensure that laws are
faithfully executed.

61. Section 26, Local Gov’t Code
Duty of National Government Agencies in the
Maintenance of Ecological Balance
Section 27, Local Gov’t Code
Prior Consultations Required

62. Section 28, Local Gov’t Code
Power of Local Chief Executives
over the Units of PNP

63. In the case of ANDAYA vs. RTC, PNP RD Andaya
submitted a list of 5 eligibles not including the name
of P/Chief Insp. Andres Sarmiento, to Mayor of Cebu
City. Mayor Garcia wants the name of Sarmiento on
the list. Andaya claims Sarmiento not qualified.
SC held that, Mayor has no power to appoint, has
only limited power of selecting, one from among list of
eligibles to be named chief of police. Mayor cannot
require Regional Director to include the name of any
officer, no matter how qualified, in the list.

64. Section 29, Local Gov’t Code
Provincial Relations with Component Cities and
Municipalities
Section 30, Local Gov’t Code
Review of Executive Orders
Section 31, Local Gov’t Code
Submission of Municipal Questions to the
Provincial Legal Officer or Prosecutor

65. Section 32, Local Gov’t Code
City and Municipal Supervision over their
Respective Barangays
Section 33, Local Gov’t Code
Cooperative Undertakings among Local
Government Units

66. CHAPTER 4
RELATIONS WITH PEOPLE'S AND
NONGOVERNMENTAL
ORGANIZATIONS

67. Section 34, Local Gov’t Code
Role of People's and Nongovernmental
Organizations
Section 35, Local Gov’t Code
Linkages with People's and Non-Governmental
Organizations
Section 36, Local Gov’t Code
Assistance to People's and Nongovernmental
Organizations

68. CHAPTER 5
LOCAL PREQUALIFICATION, BIDS
AND AWARDS COMMITTEE

69. Section 37, Local Gov’t Code
Local Prequalification, Bids and Awards
Committee
Section 38, Local Gov’t Code
Local Technical Committee