PUBCORP

Atty. Alex Gamboa

Trisha Ruzol

I. INTRODUCTION o You can’t make some illegal to legal in your LGU

Brief History and vice versa (ex. Vico wanted to allow tricycles
Public Corporation in Pasig during COVID-19, Du30 said no)
 An entity formed and organized for the government as a  Delegate cannot be superior over principal (congress)
portion of the state (Sec 6, LGC) because Congress gives power and delegation
 Juridical persons include the state and its political  Ordinances in question contravene PD 1869 and the
subdivision (Art. 37 & 44, Chap 3, Book 1, NCC) public policy embodied therein insofar as they prevent
Municipality of Catbalogan v. Director of Lands PAGCOR from exercising the power conferred on it to
 Land of the court house = public property operate a casino in Cagayan de Oro City
 A political subdivision has an independent juridical
entity. As a political entity, it exercises both Constitution
governmental and proprietary functions Art. VII, Sec. 1, 17
 A municipality has both a governmental and proprietary  Executive power is vested in the President
function  President shall have control of all executive dept,
 Properties owned by municipality bureaus, and offices
o Public – for public purpose a. Does not apply to LGUs = general supervision
o Patrimonial – for raising revenue
Province of Negros v. COA

Mondano v. Silvosa  Healthcare insurance

 Criminal action for an admin complaint; personal  LGU can use surplus funds to their discretion (fiscal
criminal liability is different from discharge of autonomy)
responsibility as mayor
 Provincial governor can only investigate mayor on crime Art. X, Sec 1-14
relating to him being mayor (not for rape)
 Provinces, cities, municipalities, barangays, and
autonomous regions
Magtajas v. Pryce Properties
 Shall enjoy local autonomy
 Ordinances should not contravene statues
 Congress to enact LGC
 National government over LGUs
a. Responsive and accountable LGU
b. System of decentralization
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Atty. Alex Gamboa
Trisha Ruzol

c. Recall, initiative, and referendum b. + Public hearing (no showing in this case)
 President = exercises general supervision
 LGU has power to create its own sources of revenue, levy Kulayan v. Gov. Tan
tax and fees  Governor cannot exercise commander-in-chief powers of
 LGU has just share in national taxes and equitable share the President (solely vested on President)
in proceeds of national wealth
 Term of elective local officials = 3 years, no more than 3 Art. XVIII, Sec 9
consecutive terms  A sub-province continues to exist and operate until it is
a. XPN: barangay officials converted into a regular province/ its component
 No LGU can be created, divided, merged, abolished etc municipalities are reverted to mother province

Buklod ng Magbubukid sa Lupaing Ramos v. E.M Ramos Local Government Code

 LGU may reclassify lands without intervention of office of
Extent of Application – Sec. 4, LGC
the President
a. EMRASON applied for application = reclassified  LGC applies to all provinces, cities, municipalities,
from agricultural to non-agricultural land barangays, and political subdivisions
 HLURB is tasked to provide technical assistance in the  All under executive; are municipal corporations
formulation of zoning ordinance
 Vested right theory Rules of Interpretation – Sec. 5, LGC

 Construed in favor of local autonomy

Holy Trinity Realty v. Dela Cruz
 In favor of devolution
 An ordinance is required in order to reclassify
 Tax ordinance = strictly against LGU, liberal against
agricultural lands and may only be passed after public
taxpayer
hearing
 General welfare provision = liberally construed
 Resolution
a. Declaration of opinion of lawmaking body Harmonization of laws
(temporary)
 Ordinance  Zoning ordinance may prevail over national law (CARP)
a. Required to reclassify agricultural lands (in this if local ordinance was enacted prior to effectivity of
case, no showing that land had agri activity) national law (Davao New Town v. Sps Espino)
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Atty. Alex Gamboa
Trisha Ruzol

 Ordinances must conform with existing laws (Veloso v. b. Administrative decentralization =

COA) deconcentration
 delegation of authority and responsibility
Declaration of Policy – Sec. 2, LGC from the national office to the regional
and local offices
 Local autonomy
 ex. Local school boards, health boards
a. Decentralization
c. Fiscal decentralization
 Accountability
 LGU has the power to create own sources
a. Recall, initiative, referendum
of revenue in addition to their share in
 Periodic consultation
national taxes
Devolution (Sec 17, 4e, i, LGC)  Power to allocate accordance with their
priorities
 Act of conferring power to LGU d. Policy/decision-making decentralization
 Efficient delivery of services  Exclusive authority to make decisions on
 Government confers power to LGUs for basic services: at least 1 policy issue
agriculture, health, tourism, building of schools
Pimentel v. Executive Secretary Ochoa
 Transfer of assets to who has power to deliver basic
services  The implementation of a program of national
Decentralization (Sec 2, LGC) government under the GAA does not violate local
autonomy
 System, framework, general term for devolution  National government has not relinquished all powers to
 Decision of the central government to empower its LGUs but has only delegated powers
subordinates to exercise authority, a delegated power
Overview, Local Governments
a. Political decentralization = devolution
 transfer of powers, responsibilities, and Art. X, Sec 2, 4
resources from government to the LGUs
for the performance of certain functions  Sec. 2 – local autonomy
 to make them self-reliant and improve  Sec. 4 – general supervision
their capabilities
Sec 25, LGC
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Atty. Alex Gamboa
Trisha Ruzol

 General supervision of President on LGUs  Local legislative body may enact ordinances but
 National agencies with project implementation functions barangay may overrule such action
will coordinate with LGU  Hierarchy of pubcorps
 Upon request of LGU, President can direct a national
agency to provide assistance to LGU Public Corp vs. GOCC

Province of Batangas v. Romulo  Corporate form but no government functions

 Share in IRA (internal revenue allotment) must be NAWASA v. NWSA Union

released without any condition = local (admin and fiscal)  GOCCs are agencies of the State for limited purpose to
autonomy take charge of some public or state work other than
II. PUBLIC CORPORATIONS community work

Concept Classifications

 Created by the state as its own device and agency for the 1. Quasi-corporations
accomplishment of parts of its own public works  State agencies having corporate form but with merely
 Created by law independent powers but under control of the state
 Has both governmental and police functions
LGUs 2. Municipal corporations
 Is a body corporate and politic organized for the
 Barangay > Municipality > City > Province > Autonomous government of a definite locality
Region  To regulate and administer internal affairs of a locality
 LGUs exercise local governance over inhabitants
 Assist in the civil government of the country
 An agency of the state for assistant in civil government of a. De jure – organized by law considering
the country for regulation of local and internal affairs population, area, and income
Greenhills East Association v. EGI b. De facto – exists in fact but not in law (has defects
in creation)
 A barangay can exercise regulatory powers but Office of i. Collateral attack not allowed
the Mayor may overrule such action
Municipality of San Narciso v. Mendez
 PUBCORP
Atty. Alex Gamboa
Trisha Ruzol

 A law creating an LGU by a former president is on its face Vilas v. City of Manila
defective but the transitory provision under the LGC
provides for a curative measure to transform the LGU  Juristic identity of the city is not affected by change of
into a de jure political subdivision sovereignty. Liability of old city attaches to new city
 Operative fact doctrine must be applied  Unless there is a clear showing that a political
a. Even if unconstitutional, the law recognizes the subdivision is abolished, the presumption is that it
effects of such act continues to have its juridical personality and can be held
liable for its subsisting obligations
Requisites
Elements of a loc gov
1. Apparently valid law under which corporation may be
formed 1. Legal creation or incorporation
2. Attempt in good faith to organize the corporation 2. Corporate name
3. Colorable compliance with law 3. Population
4. Assumption of corporate powers 4. Territory

III. LOCAL GOVERNMENT Requirements for creation, conversion, division, merger,

dissolution
Nature
1. Under Consti (Sec. 10, Art. 10)
Sec. 15 of LGC a. No LGU can be divided, merged etc
b. XPN
 LGU has a political and corporate nature i. In accordance with LGC
 Dual function: governmental and proprietary function ii. Via a plebiscite in the political unit
2. General Reqs
Homeowners Association of Talayan v. JM Tuason
a. Applicable to all LGUs
 Donation of common areas in a private subdivision to a b. Law or ordinance
local government unit must be perfected with c. Plebiscite
acceptance. (The QC govt did not accept and notarize the d. Election of officials
deed of donation) 3. Creation of LGU is legislative in nature
 Every LGU enjoys powers as a juridical entity (law/ordinance)
a. Law
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Atty. Alex Gamboa
Trisha Ruzol

i. Enacted by Congress for provinces, cities,  Complies with the “one-city-one representative” proviso
municipalities, and political subdivisions of the Constitution
b. Ordinance  Only inhabitants of LGU being upgraded are required to
i. Passed by the Sangguniang participate in plebiscite
Panlalawigan/Panlunsod (barangay
within its jurisdiction) (Sec. 6, LGC) c. Downgrading – from independent component
ii. S.Panlalawigan nneeds recommendation city to component city
of S. Bayan is needed (Sec. 385, LGC)
4. Conduct of Plebiscite Miranda v. Aguirre
a. Role of COMELEC
 Downgrading of Santiago, Isabela Plebiscite is still
i. Conducted within 120 days from date of
required when downgrading
effectivity of law/ordinance unless law
fixes another day (Sec. 10, LGC)
d. Upgrading – component city to HUC
Cagas v. COMELEC
Gov. Umali v. COMELEC
 The COMELEC has residual power to conduct a plebiscite
 Upgrade Cabanatuan from a component city to HUC.
even beyond the deadline prescribed by law.
LGUs whose boundaries are to be altered and whose
When Plebiscite is required economy would be affected are entitled to participate in
the plebiscite. All registered voters of Nueva Ecija are
 When LGU is created, divided, merged, abolished, altered allowed to participate in plebiscite and not just those in
(Sec. 10, LGC) Nueva Ecija because they stand to be affected by the
b. Conversion change.
i. Income
ii. Population When Plebiscite is not required
iii. Land area
e. Legislative Districts
Tobias v. Abalos
Bagabuyo v. COMELEC
 Convert municipality to city of Mandaluyong (creation of  Legislative districts are not political subdivisions
a new legislative district)  Apportionment – determination of # of reps to be sent to
legislative body
 PUBCORP
Atty. Alex Gamboa
Trisha Ruzol

 Reapportionment – every 5 years (from census)  In creating a city, all constituents must ratify the law thru
 Apportionment/Reapportionment = under Art VI, Sec 5 a plebiscite
 Compare to Tobias v. Abalos 5. Factors to Consider
 Conversion v. reapportionment a. Population
o Conversion – income and population/land area –  A duly-certified census which indicates the total number
Art. X of inhabitants within the territorial jurisdiction of the
o Reapportionment – population - Art. VI LGU is essential in the creation of the LGU (Sec. 7b, LGC)
City  Chief Statistician of the PSA is the only person authorized
- 250k population to issue population cert for
Province o All barangays in MM and Highly Urbanized Areas
- No need for population req (given when created) o Municipalities
f. Administrative Regions o City
o Provinces
Abbas v. COMELEC
Aldaba v. COMELEC
 Administrative regions are not territorial or political
subdivisions  Congress must ensure that all statutory requisites in
 Power to merge and create admin regions is vested in the amending the charter of Malolos City including the
President creation of a new congressional district are complied
 Merger of provinces that did not vote to be included in with
the ARMM do not require a plebiscite  In case of the population requirement, a certification as
to census of population must be issued by the public
Plebiscite Requirement officer designated by law. The population must be based
Sec. 10, LGC on actual number of inhabitants.

 In creating, division, merger, and abolition requires 2/3 Aquino & Robredo v. COMELEC
votes in a plebiscite  The creation of new congressional districts in a province
 Conducted by the COMELEC within 100 days from date of need not meet the 250,000 inhabitant threshold. The
effectivity unless law fixes another date threshold applies only to HUCs
Samson v. Aguirre
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Atty. Alex Gamboa
Trisha Ruzol

 A congressional district is not a political subdivision = no  The new requirements under a congressional act will not
need for plebiscite affect the cityhood laws which are pending prior to the
b. Income effectivity of the new law. Thus, all measures introduced
 Income must be sufficient to provide essential prior to the new law are exempt from the higher income
government services (Sec. 7a, LGC) requirement
 Average annual income  April 2011
o Income accruing to the general fund, exclusive of o The two-year average income of an LGU must be
special funds, transfers, and non-recurring certified by the Secretary of Finance. The share in
income IRA forms part of income of a LGU
o For municipalities (Sec. 442, LGC) o This ruling has been modified by Gov Mandanas
 At least 2.5M for the last 2 consecutive v. Ochoa
years c. Land area
 Population of at least 25k  Properly identified by metes and bounds with technical
 Contiguous territory of at least 50 sq. km descriptions
o For cities (Sec. 450, LGC)  Sufficient to provide basic services (Sec. 7c, LGC)
 At least 100M income for last 2  Sec. of DENR – certify land area of LGU
consecutive years and o Municipality – 50 sq km
 Contiguous territory of at least 100 sq. km o City – 100 sq km
OR o Province – 2000 sq km
 Population of at least 150k
o For provinces (Sec. 461, LGC) Navarro v. Ermita
 Income of not less than 20M and
 The creation of Dinagat Island as a province is valid
 Contiguous territory of at least 2000 sq
despite the fact that it did meet the land area
km OR
requirement. Island provinces need not meet the 2,000
 Not less than 250k population
sq. km. requirement because by their very nature islands
Alvarez v. Guingona do not form a mass that could be contiguous and
adjacent.
 IRA forms part of the average annual income of the LGU
Province of Palawan v Secretary of Energy
League of Cities
 PUBCORP
Atty. Alex Gamboa
Trisha Ruzol

 LGU territorial jurisdiction MMDA v. Bel-Air Village

o Only refers to land area
 MMDA has no law-making powers because it is not a
o Jurisdiction can only be enforced within the
political subdivision
15km limit of municipal waters, after that, it is
 They cannot enforce RA 7924 for Bel-Air to open its
under jurisdiction of national government
roads because they are not authorized with police power
 National territory
or legislative powers
 Camago-Malampaya is outside the territorial jurisdiction
 7 basic services (PUSH-DTF)
of Palawan
o Development planning
o Transport and trac management
6. Creation of autonomous regional bodies
o Solid waste disposal and management
Art X, Sec. 1 o Flood control and sewerage management
o Urban renewal, zoning and land use planning,
 RP has provinces, cities, municipalities and barangays
and shelter services
 There shall be autonomous regions in Muslim Mindanao
o Health and sanitation, urban protection and
and Cordilleras
pollution control
Art.X, Sec. 4 o Public safety

 The President shall exercise general supervision over MMDA v. Garin

LGUs
 MMDA has no police powers and cannot impound an
Art.X, Sec. 13 illegally parked vehicle nor can it confiscate the driver’s
license of an individual
 LGUs may group themselves, consolidate, or coordinate  The LGU must deputize MMDA enforcers to implement
their efforts,, services, and resources for purposes the Traffic Ordinance of a local government unit within
commonly beneficial to them its territorial jurisdiction
 Sec. 5f of RA 7924 grants the MMDA with the duty to
Art.X, Sec. 14
enforce existing traffic rules and regulations
 President shall provide for regional development
MMDA v. Viron
councils
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Atty. Alex Gamboa
Trisha Ruzol

 MMDA cannot exercise powers exclusively reserved by Sema v. COMELEC

law to a national agency. The institution of a
comprehensive traffic management scheme is within the  The creation of political subdivisions vested by the
powers of the DOTC Constitution in Congress cannot be delegated.
 The issuance of an admin order of the President  The SC struck down a provision in the Organic Act
designating MMDA to adopt and implement such traffic creating ARMM which enabled the ARMM Legislative
scheme is ultra vires Assembly to create a province. This is an invalid
 MMDA has no authority because they get their franchise delegation of power
from LTFRB; DOTC is the agency who regulates traffic Ordillo v. COMELEC
MMDA v. Trackworks  An autonomous region cannot be created with only one
 MMDA has no power to remove billboards and province
advertising materials installed by Trackworks  The province of Ifugao, being the only province which
 Trackworks has an agreement with MRTC under the BLT voted favorably for the creation of the Cordillera
agreement
7. Division and Merger
 Non-impairment of contracts – it is a contract between
MRTC and Trackworks = you can alter that Sec. 8, LGC
 Under Art. 10, Sec. 11 of the Constitution, MMDA’s
powers are limited to the formulation, coordination, 
regulation, implementation, preparation, management, 8. Abolition
monitoring, setting of policies, installing a system, and
Sec. 9, LGC
administration. Nothing in Republic Act No. 7924 granted
MMDA police power, let alone legislative power. IV. LGU AND LOCAL AUTONOMY
Disomangcop v. Datumanong Principle of Local Autonomy = decentralization
 The grant of certain executive powers in ARMM must be  Sec. 2 of LGC
respected by a national agency. The Secretary of DPWH is o Principal objective of empowering LGUs
precluded from making appointment or designations o Shall enjoy genuine and meaningful local
within the territorial jurisdiction of ARMM
autonomy
 PUBCORP
Atty. Alex Gamboa
Trisha Ruzol

Declaration of Policy (Sec. 2, LGC) Gov. Mandanas v. Exec Sec

 More responsive and accountable local government Decentralization

structure through decentralization
 Accountability of LGUs through recall, initiative and  Administrative
referendum o When the central government delegates admin
 Periodic consultations with LGUs, NGOs, people’s orgs powers to political subdivisions = more
and concerned sectors before any project is implemented responsive

Limbona v. Magellin
Decentralization and Devolution, distinguished  Political
Devolution o Abdication of political power in favor of the LGUs
declared to be autonomous regions
 Act by which the national gov’t confers power and o LGU is no longer accountable to the national
authority upon various LGUs to perform specific government but to its constituency
functions and responsibilities (Sec. 17, LGC)
Ganzon v. CA
Province of Rizal v. Exec Sec
V. Settlement of Boundary Disputes
 Implementation of a program implemented by national
government must be done in consultation of the LGU Sec. 118, LGC

Pimentel v. Aguirre Sec 15-19, IRR

 No conditions may be imposed on the release of IRA City of Pasig v. COMELEC

Batangas CATV Inc. v. CA Municipality of Kananga v. Madrona

 The regulation of businesses in the locality is expressly VI. GENERAL POWERS AND ATTRIBUTES OF LGUS
provided in the LGC Sources of Powers
Province of Palawan v. Sec. of Energy 1. Constitution
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Atty. Alex Gamboa
Trisha Ruzol

2. Charter New Sun Valley Homeowners v. Sangguniang Brgy.

3. LGC
4. Other laws City of Manila v. Chinese Community

Kinds of Power B. Eminent Domain

A. Police Power

General Welfare Clause

 Sec. 16, LGC

Rimando v. Naguilan Emission Testing Center

Art. 1267, NCC

SPARK v. QC

Holy Trinity Realty & Development Corp v. Dela Cruz

Social Justice Society v. Atienza, Jr,

Lucena Grand Central Terminal v. JAC

White Light Corp v. City of Manila

Albon v. Fernando

Boracay Foundation v. Province of Aklan

Power to Open and Close Roads

 Sec 21, LGC

 Art. 34-45, IRR

Factors to consider in vacating a street