59191891 adsum notes public corp reviewer midterm
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I. Public Corporation: Introduction
a.
Corporation- an artificial being created by operation of law, having the right of succession and the powers,
attributes and properties expressly authorized by law or incident to its existence.
b. Classes of Corporations
Private Corporation Public Corporation
-those formed for some private
purpose, benefit, aim or end.
DEFINITION
-one created by the State either by general
or special act for purposes of
administration of local government or
rendering service in the public interest.
-created for private aim, gain, or
benefits of its members PURPOSE OF
CREATION
-established for purposes connected with
the administration of civil or local
governments
-created by the will of the
incorporators with the recognizance of
the State.CREATORS
-creations of the State either by general or
special act
-constitute a voluntary agreement by
and among its members NATURE
-involuntary consequence of legislation
Metropolitan Manila Development Authority vs. Bel-Air Village Association, Inc
G.R. No. 135962, March 27, 2000
A local government is a "political subdivision of a nation or state which is constituted by law and has
substantial control of local affairs." The Local Government Code of 1991 defines a local government unit as a "body
politic and corporate"-- one endowed with powers as a political subdivision of the National Government and as a
corporate entity representing the inhabitants of its territory. Local government units are the provinces, cities,
municipalities and barangays. They are also the territorial and political subdivisions of the state
c.
Classes of Public Corporations
Quasi-public Corporations Municipal Corporations/Local Government
-created as agencies of the State for narrow and
limited purposes without the powers and liabilities
of self-governing corporations.
-body politic and corporate constituted by the
incorporation of the inhabitants for purposes of local
government thereof.
-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.
-political subdivision of a nation or state which is
constituted by law and has substantial control of local
affairs
d. Elements: Municipal Corporations
1. A legal creation or incorporation
2.
A corporate name by which the artificial personality or legal entity is known and in which all corporate
acts are done
3.
Inhabitants constituting the population who are invested with the political and corporate power which
are executed through duly constituted officers and agents
4.
A place or territory within which the local civil government and corporate functions are exercised
e. Local Government: Dual Personality
Public or Governmental Private or Corporate
-it is an agent of the state for the government
of the territory and the inhabitants within the
-acts in a similar category as a business corporation,
performing functions not strictly governmental or
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power it had was confined to a "review [of] legislation proposed by the local legislative assemblies to ensure
consistency among local governments and with the comprehensive development plan of Metro Manila," and to
"advise the local governments accordingly."
The MMDA is not a political unit of government thus cannot validly exercise police power.
Solicitor General v. Metropolitan Manila Authority
The measures in question are enactments of local governments acting only as agents of the national
legislature. Necessarily, the acts of these agents must reflect and conform to the will of their principal. To test the
validity of such acts in the specific case now before us, we apply the particular requisites of a valid ordinance as laid
down by the accepted principles governing municipal corporations.
According to Elliot, a municipal ordinance, to be valid: 1) must not contravene the Constitution or any
statute; 2) must not be unfair or oppressive; 3) must not be partial or discriminatory; 4) must not prohibit
but may regulate trade; 5) must not be unreasonable; and 6) must be general and consistent with public
policy.
A careful study of the Gonong decision will show that the measures under consideration do not pass the
first criterion because they do not conform to existing law. The pertinent law is PD 1605. PD 1605 does not allow
either the removal of license plates or the confiscation of driver's licenses for traffic violations committed inMetropolitan Manila. There is nothing in the following provisions of the decree authorizing the Metropolitan Manila
Commission (and now the Metropolitan Manila Authority) to impose such sanctions.
In fact, the provisions prohibit the imposition of such sanctions in Metropolitan Manila. The Commission
was allowed to "impose fines and otherwise discipline" traffic violators only "in such amounts and under such
penalties as are herein prescribed," that is, by the decree itself. Nowhere is the removal of license plates directly
imposed by the decree or at least allowed by it to be imposed by the Commission. Notably, Section 5 thereof
expressly provides that "in case of traffic violations, the driver's license shall not be confiscated." These restrictions
are applicable to the Metropolitan Manila Authority and all other local political subdivisions comprising
Metropolitan Manila, including the Municipality of Mandaluyong.
The requirement that the municipal enactment must not violate existing law explains itself. Local political
subdivisions are able to legislate only by virtue of a valid delegation of legislative power from the national
legislature (except only that the power to create their own sources of revenue and to levy taxes is conferred by the
Constitution itself.) They are mere agents vested with what is called the power of subordinate legislation. Asdelegates of the Congress, the local government unit cannot contravene but must obey at all times the will of their
principal. In the case before us, the enactments in question, which are merely local in origin, cannot prevail against
the decree, which has the force and effect of a statute.
h. Administrative Regions
DEFINITION
Chiongbian vs. Orobos 254 SCRA 253 (1995)
Administrative regions are mere groupings of contiguous Provinces for administrative
purposes. They are not territiorial and political subdivisions like Provinces, Cities, Municipalities and Barangays.
R. A. 6766 (Organic Act for Cordillera Autonomous Region of 1989)
This Act provides for creation of the Cordillera Autonomous Region (CAR) shall consist of the cities and provinces that
shall vote favorable in a plebiscite pursuant ant 10, Sec. 18 of the Constitution. Those cities and provinces are Benguet,
Ifugao, Muslim Province, Abra, Kalinga-Apayao and Baguio
The Act consists of the following pertinent articles:
1)
Guiding principles and policies similar to that of Art. 2 of the 1987 Constitution
2)
Vesting of legislative power in the Cordillera Assembly; executive power Cordillera governor with a deputy
governor as well; creation of indigenous special courts whose decisions are final and executory but subject to
the original and appellate jurisdiction of the Supreme Court
3) Creation of a Regional Commission on Appointments
4) Measures to protect and develop the ancestral lands and ancestral domains of indigenous cultural communities
as well as the national economy and patrimony
The rest of its provisions are roughly similar to the Organic Act for ARMM (see11-c) CAR never came to existence. Only
Ifugao province voted in favor of CAR, so the Supreme Court in Ordillo v. COMELEC ruled that Ifugao could no constitute
itself into the CAR
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The sole province of Ifugao cannot validly constitute the Cordillera Autonomous Region.
Cordillera Regional Assembly v. COMELEC, G. R. No. 93054, December 4, 1990
The keywords provinces, cities, municipalities and geographical areas connote that "region" is to be made
up of more than one constituent unit. The term "region" used in its ordinary sense means two or more provinces.
This is supported by the fact that the thirteen (13) regions into which the Philippines is divided for administrative
purposes are groupings of contiguous provinces.
Aside from the 1987 Constitution, a reading of the provisions of Republic Act No. 6766 strengthens the
petitioner's position that the Region cannot be constituted from only one province.
xxx
From these sections, it can be gleaned that Congress never intended that a single province may constitute
the autonomous region. Otherwise, we would be faced with the absurd situation of having two sets of officials, a set
of provincial officials and another set of regional officials exercising their executive and legislative powers over
exactly the same small area.
R.A. 6732 (Organic Act for ARMM [Autonomous Region in Muslim Mindanao])
Meaning of majority vote required to approve the creation of administrative region
Abbas vs. COMELEC G.R. No. 89651 (1989)
As provided in the Constitution, the creation of the autonomous region in Muslim Mindanao is made
effective upon the approval "by majority of the votes cast by the constituent units in a plebiscite called for the
purpose" [Art. X, sec. 18]. The question has been raised as to what this majority means. Does it refer to a majority of
the total votes cast in the plebiscite in all the constituent units, or a majority in each of the constituent units, or both?
We need not go beyond the Constitution to resolve this question.
It will readily be seen that the creation of the autonomous region is made to depend, not on the total
majority vote in the plebiscite, but on the will of the majority in each of the constituent units and the proviso
underscores this. For if the intention of the framers of the Constitution was to get the majority of the totality of thevotes cast, they could have simply adopted the same phraseology as that used for the ratification of the Constitution,
i.e. "the creation of the autonomous region shall be effective when approved by a majority of the votes cast in a
plebiscite called for the purpose."
It is thus clear that what is required by the Constitution is a simple majority of votes approving the
Organic Act in individual constituent units and not a double majority of the votes in all constituent units put
together, as well as in the individual constituent units.
Executive has power to merge administrative regions; no plebiscite is required
Abbas vs. COMELEC G.R. No. 89651 (1989)It must be pointed out that what is referred to in R.A. No. 6734 is the merger of administrative regions, i.e.
Regions I to XII and the National Capital Region, which are mere groupings of contiguous provinces for
administrative purposes [Integrated Reorganization Plan (1972), which was made as part of the law of the land by
Mindanao, encompassing 13 provinces and 9 cities, through a plebiscite for that purpose. This government shall operate
within the framework of the Regional Government. The executive power is conferred on the Regional Governor. The
legislative power is conferred in the Regional Assembly. The Supreme Court, the Court of Appeals and the lower courts
shall continue to exercise their power as mandated in the Constitution; ho wever, there shall be a Shariah Appellate Court
which shall also be learned in Islamic law and jurisprudence. The Shariah Courts decisions shall be final and executory
subject to the original and appellate jurisdiction of the Supreme Court. Tribal Appellate Courts for cases dealing with tribal
codes shall also be established.
The Regional Government shall have fiscal autonomy or the power to create its own sources of revenue, subject to
the limitations of the Constitution and this Organic Act. The Organic Act also provides for: Protection of ancestral lands,
ancestral domain and indigenous cultural communities; urban and rural planning and development; power to enact laws
pertaining to the national economy and patrimony responsive to the needs of the Regional Government; public order and
security; education, science and technology and sports development; social justice and services; and power to amend or
revise the Organic Act, either by Congress or by the Regional Assembly, the latter being subject to approval by Congress.
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(j) Effective mechanisms for ensuring the accountability of local government units to their respective constituents
shall be strengthened in order to upgrade continually the quality of local leadership;
(k) The realization of local autonomy shall be facilitated through improved coordination of national government
policies and programs and extension of adequate technical and material assistance to less developed and deserving
local government units;
(l) 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 strategy for sustainable development; and(m) The national government shall ensure that decentralization contributes to the continuing improvement of the
performance of local government units and the quality of community life.
San Juan vs. Civil Service Commission 196 SCRA 69
The tug of war between the Secretary of Budget and Management and the Governor of the premier
province of Rizal over a seemingly innocuous position involves the application of a most important constitutional
policy and principle, that of local autonomy. We have to obey the clear mandate on local autonomy. Where a law is
capable of two interpretations, one in favor of centralized power in Malacaang and the other beneficial to local
autonomy, the scales must be weighed in favor of autonomy.
xxxNational officials should not only comply with the constitutional provisions on local autonomy but should
also appreciate the spirit of liberty upon which these provisions are based.
The 1987 Constitution by deleting the phrase "as may be provided by law," did not stripped the
President of the power of control over local governments.
Ganzon vs. CA G. R. No. 93252 August 5, 1991
It is a mistaken impression because legally, supervision is not incompatible with disciplinary authority.
As hereinabove indicated, the deletion of "as may be provided by law" was meant to stress, sub silencio, the
objective of the framers to strengthen local autonomy by severing congressional control of its affairs, as observed by
the Court of Appeals, like the power of local legislation. The Constitution did nothing more, however, and insofar as
existing legislation authorizes the President (through the Secretary of Local Government) to proceed against local
officials administratively, the Constitution contains no prohibition."Control"has been defined as "the power of an officer to alter or modify or nullify or set aside what a
subordinate officer had done in the performance of his duties and to substitute the judgment of the former for test of
the latter." "Supervision" on the other hand means "overseeing or the power or authority of an officer to see that
subordinate officers perform their duties." As we held, however, "investigating" is not inconsistent with
"overseeing", although it is a lesser power than "altering".
Provisional Constitution must be deemed to have been overtaken by Section 27, Article XVIII of the 1987
Constitution.
De Leon v. Esguerra, G.R. No. 78059 August 31, 1987
The 1987 Constitution was ratified in a plebiscite on February 2, 1987. By that date, therefore, the
Provisional Constitution must be deemed to have been superseded. Having become inoperative, respondent OIC
Governor could no longer rely on Section 2, Article III, thereof to designate respondents to the elective positionsoccupied by petitioners.
Petitioners must now be held to have acquired security of tenure especially considering that the Barangay
Election Act of 1982 declares it "a policy of the State to guarantee and promote the autonomy of the barangays to
ensure their fullest development as self-reliant communities.Similarly, the 1987 Constitution ensures the autonomy
of local governments and of political subdivisions of which the barangays form a part, and limits the President's
power to "general supervision" over local governments.
LOCAL AUTONOMY
-means a more responsive and accountable local government structure instituted through a system of
decentralization.
-not meant to end the relation of partnership and interdependence between the central administration and LGU.
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TYPES OF DECENTRALIZATION
Limbona vs. Mangelin 170 SCRA 786 (1989)Now, autonomy is either decentralization of administration or decentralization of power. There is
decentralization of administrationwhen the central government delegates administrative powers to political
subdivisions in order to broaden the base of government power and in the process to make local governments "moreresponsive and accountable," "and ensure their fullest development as self-reliant communities and make them
more effective partners in the pursuit of national development and social progress." At the same time, it relieves the
central government of the burden of managing local affairs and enables it to concentrate on national concerns. The
President exercises "general supervision" over them, but only to "ensure that local affairs are administered according
to law." He has no control over their acts in the sense that he can substitute their judgments with his own.
Decentralization of power, on the other hand, involves an abdication of political power in the favor of
local governments units declare to be autonomous. In that case, the autonomous government is free to chart its own
destiny and shape its future with minimum intervention from central authorities. According to a constitutional
author, decentralization of power amounts to "self-immolation," since in that event, the autonomous government
becomes accountable not to the central authorities but to its constituency.
Decentralization of power is a political question; decentralization of administration is a judicial
question
Limbona vs. Mangelin 170 SCRA 786 (1989)An autonomous government that enjoys autonomy of the latter category [decentralization of power] is
subject alone to the decree of the organic act creating it and accepted principles on the effects and limits of
"autonomy." On the other hand, an autonomous government of the former class [decentralization of administration]
is, as we noted, under the supervision of the national government acting through the President (and the Department
of Local Government). If the Sangguniang Pampook (of Region XII), then, is autonomous in the latter sense
[decentralization of power], its acts are, debatably beyond the domain of this Court in perhaps the same way that the
internal acts, say, of the Congress of the Philippines are beyond our jurisdiction. But if it is autonomous in the
former category [decentralization of administration] only, it comes unarguably under our jurisdiction.
DEVOLUTION
Tano vs. Socrates 278 SCRA 154Finally, the centerpiece of LGC is the system of decentralization as expressly mandated by the Constitution.
Indispensable thereto is devolution and the LGC expressly provides that [a]ny provision on a power of a local
government unit shall be liberally interpreted in its favor, and in case of doubt, any question thereon shall be
resolved in favor of devolution of powers and of the lower local government unit. Any fair and reasonable doubt as
to the existence of the power shall be interpreted in favor of the local government unit concerned, Devolution
refers to the act by which the National Government confers power and authority upon the various local
government units to perform specific functions and responsibilities.
One of the devolved powers enumerated in the section of the LGC on devolution is the enforcement of
fishery laws in municipal waters including the conservation of mangroves. This necessarily includes enactment of
ordinances to effectively carry out such fishery laws within the municipal waters.
FISCAL AUTONOMY
Internal Revenue Allotment forms part of a local governments annualincome
Alvarez v Giungona 252 SCRA 695The practical side to development through a decentralized local government system certainly concerns the
matter of financial resources. With its broadened powers and increased responsibilities, a local government unit
must now operate on a much wider scale. More extensive operations, in turn, entail more expenses. Understandably,
the vesting of duty, responsibility and accountability in every local government unit is accompanied with a provision
for reasonably adequate resources to discharge its powers and effectively carry out its functions. Availment of such
resources is effectuated through the vesting in every local government unit of (1) the right to create and
broaden its own source of revenue; (2) the right to be allocated a just share in national taxes, such share being in
the form of internal revenue allotments (IRAs); and (3) the right to be given its equitable share in the proceeds of the
utilization and development of the national wealth, if any, within its territorial boundaries.
xxx
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The IRAs are items of income because they form part of the gross accretion of the funds of the local
government unit. The IRAs regularly and automatically accrue to the local treasury without need of any further
action on the part of the local government unit. They thus constitute income which the local government can
invariably rely upon as the source of much needed funds.
SEC. 4. Scope of Application.- This Code shall apply to all provinces, cities, municipalities, barangays, and otherpolitical subdivisions as may be created by law, and, to the extent herein provided, to officials, offices, or agencies
of the national government.
Cordillera Broad Coalition vs. Commission on Audit G. R. No. 79956, January 29, 1990
We find that it [EO 220] did not create a new territorial and political subdivision or merge existing ones
into a larger subdivision. Firstly, the CAR is not a public corporation or a territorial and political subdivision. It does
not have a separate juridical personality, unlike provinces, cities and municipalities. Neither is it vested with the
powers that are normally granted to public corporations, e.g. the power to sue and be sued, the power to own and
dispose of property, the power to create its own sources of revenue, etc. As stated earlier, the CAR was created
primarily to coordinate the planning and implementation of programs and services in the covered areas.
Then, considering the control and supervision exercised by the President over the CAR and the offices
created under E.O. No. 220, and considering further the indispensable participation of the line departments of theNational Government, the CAR may be considered more than anything else as a regional coordinating agency of the
National Government, similar to the regional development councils which the President may create under the
Constitution. These councils are "composed of local government officials, regional heads of departments and other
government offices, and representatives from non-governmental organizations within the region for purposes of
administrative decentralization to strengthen the autonomy of the units therein and to accelerate the economic and
social growth and development of the units in the region." In this wise, the CAR may be considered as a more
sophisticated version of the regional development council.
EO 220 which created CAR did not contravene the constitutional guarantee of local autonomy of the
member LGUs.
Cordillera Broad Coalition vs. Commission on Audit G. R. No. 79956, January 29, 1990
As we have said earlier, the CAR is a mere transitory coordinating agency that would prepare the stage for
political autonomy for the Cordilleras. It fills in the resulting gap in the process of tr ansforming a group of adjacent
territorial and political subdivisions already enjoying local or administrative autonomy into an autonomous region
vested with political autonomy.
Abbas vs. COMELEC G.R. No. 89651 (1989)
Under the Constitution, the creation of the autonomous region hinges only on the result of the plebiscite. If
the Organic Act is approved by majority of the votes cast by constituent units in the scheduled plebiscite, the
creation of the autonomous region immediately takes effect. The questioned provisions in R.A. No. 6734 requiring
an Oversight Committee to supervise the transfer do not provide for a different date of effectivity. Much less would
the organization of the Oversight Committee cause an impediment to the operation of the Organic Act, for such is
evidently aimed at effecting a smooth transition period for the regional government. The constitutional objection onthis point thus cannot be sustained as there is no basis therefor.
The power to merge administrative regions is executive in character.
Chiongbian, et al vs. Orbos, et al G.R. No. 96754, June 22, 1995
As this Court observed in Abbas, while the power to merge administrative regions is not expressly
provided for in the Constitution, it is a power which has traditionally been lodged with the President to
facilitate the exercise of the power of general supervision over local governments. R.A. No. 5435 was passed
authorizing the President of the Philippines, with the help of a Commission on Reorganization, to reorganize the
different executive departments, bureaus, offices, agencies and instrumentalities of the government, including
banking or financial institutions and corporations owned or controlled by it. The purpose was to promote
simplicity, economy and efficiency in the government. The law provided that any reorganization plan submitted
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would become effective only upon the approval of Congress. Thus the creation and subsequent reorganization of
administrative regions have been exercised by the President pursuant to authority granted to him by law.
The power granted authorizes the reorganization even of regions, provinces and cities that did not
take part in the plebiscite on the creation of the Autonomous Region or did not vote in favor of it
While Article XIX, Section 13 provides that The provinces and cities which in the plebiscite do not votefor inclusion in the Autonomous Region shall remain in the existing administrative regions, this provision is subject
to the qualification that the President may, by administrative determination, merge the existing regions. This
means that while non-assenting provinces and cities are to remain in the regions as designated upon the
creation of the Autonomous Region, they may nevertheless be regrouped with contiguous provinces forming
other regions as the exigency of administration may require.
On the applicability to only those which voted for inclusion in the Autonomous Region, the Presidents
power cannot be so limited without neglecting the necessities of administration.
A tribal court of the Cordillera Bodong Administration cannot render a valid and executory decision in a
land dispute
BADUA vs. CORDILLERA BODONG ADMINISTRATION 1991 Feb 14G.R. No. 92649.
In "Cordillera Regional Assembly Member Alexander P. Ordillo, et al. vs. The Commission on Elections,
et al found that in the plebiscite that was held on January 23, 1990 pursuant to Republic Act 6766, the creation of the
Cordillera Autonomous Region was rejected by all the provinces and city of the Cordillera region, except Ifugao
province, hence, the Cordillera Autonomous Region did not come to be.As a logical consequence of that judicial
declaration, the Cordillera Bodong Administration created under Section 13 of Executive Order No. 220, the
indigenous and special courts for the indigenous cultural communities of the Cordillera region (Sec. 1, Art. VII,
Rep. Act 6766), and the Cordillera People's Liberation Army, as a regional police force or a regional command of
the Armed Forces of the Philippines (Secs. 2 and 4, Article XVIII of R.A. 6766), do not legally exist. Since the
Cordillera Autonomous Region did not come into legal existence, the Maeng Tribal Court was not constituted
into an indigenous or special court under R.A. No. 6766. Hence, the Maeng Tribal Court is an ordinary tribal
court existing under the customs and traditions of an indigenous cultural community.
Such tribal courts are not a part of the Philippine judicial system which consists of the SupremeCourt and the lower courts which have been established by law(Sec. 1, Art. VIII, 1987 Constitution). They do
not possess judicial power. Like the pangkats or conciliation panels created by P.D. No. 1508 in the
barangays, they are advisory and conciliatory bodies whose principal objective is to bring together the parties
to a dispute and persuade them to make peace, settle, and compromise.
SEC. 5. Rules of Interpretation.- In the interpretation of the provisions of this Code, the following rules shall
apply:
(a)Any provision on a power of a local government unit shall be liberally interpreted in its favor, and in case of
doubt, any question thereon shall be resolved in favor of devolution of powers and of the lower local government
unit. Any fair and reasonable doubt as to the existence of 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 government
unit enacting it, and liberally in favor of the taxpayer. Any tax exemption, incentive or relief granted by any local
government unit pursuant to the provisions of this Code shall be construed strictly against the person claiming it.
(c) The general welfare provisions in this Code shall be liberally interpreted to give more powers to local
government units in accelerating economic development and upgrading the quality of life for the people in the
community;
(d) Rights and obligations existing on the date of effectivity of this Code and arising out of contracts or any other
source of prestation involving a local government unit shall be governed by the original terms and conditions of
said contracts or the law in force at the time such rights were vested; and
(e)In the resolution of controversies arising under this Code where no legal provision or jurisprudence applies,
resort may be had to the customs and traditions in the place where the controversies take place.
Tano vs. Socrates 278 SCRA 154
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Moreover, Section 5(c) of the LGC explicitly mandates that the general welfare provisions of the LGC
shall be liberally interpreted to give more powers to the local government units in accelerating economic
development and upgrading the quality of life for the people of the community.
Rights existing on the date of effectivity of this Code involving a local government unit shall be governed
by the law in force at the time such rights were vested
THE SECRETARY OF HEALTH vs.COURT OF APPEALS G. R. No. 112243, Feb. 23, 1995
At the time of the commencement of the administrative action, the operative laws are the Administrative
Code of 1987 and Executive Order No. 119. Under the said laws, the Secretary of Health exercises control, direction
and supervision over his subordinates, which include private respondent. Consequently, since jurisdiction has been
acquired by the Secretary of Health over the person of private respondent before the effectivity of the Local
Government Code on January 1, 1992, it continues until the final disposition of the administrative case.
Greater Balanga Dev. Corp vs Balanga G. R. No. 83987, Dec. 27, 1994
The second paragraph of Section 3A-06(b) does not expressly require two permits for their conduct of two
or more businesses in one place, but only that separate fees be paid for each business. The powers of municipal
corporations are to be construed in strictissimi juris and any doubt or ambiguity must be construed against the
municipality (City of Ozamiz v. Lumapas, 65 SCRA 33 [1975]). Granting, however, that separate permits areactually required, the application form does not contain any entry as regards the number of businesses the applicant
wishes to engage in.
Evardone vs COMELEC GR. No. 95063, December 2, 1991
Art. 18 Sec. 3 of the Consti expressly provides that all existing laws not inconsistent with the 1987 Consti
shall remain operative until amended repealed or revoked. RA 7160 providing for the Local Government Code of
1991, expressly repeals BP 337. But, the new LGC will take effect only on January 1, 1992 therefore the old LGC
(BP 337) is still the applicable law to the present case.
The Court ruled that Resolution 2272 is valid and constitutional.
CREATION, CONVERSION AND ABOLITION OF LOCAL GOVERNMENT UNITS
SEC. 6. Authority to Create Local Government Units.- A local government unit may be created, divided,
merged, abolished, or its boundaries substantially altered either by law enacted by Congress in the case of a
province, city, municipality, 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
jurisdiction, subject to such limitations and requirements prescribed in this Code.
SEC. 7. Creation and Conversion.- As a general rule, the creation of alocal government unit or its conversion
from one level to another level shall be based on verifiable indicators of viability and projected capacity to
provide services, to wit:
(a) Income. - It must be sufficient, based on acceptable standards, to provide for all essential government
facilities and services and special functions commensu- rate with the size of its population, as expected of the
local government unit concerned;
(b) Population. - It shall be determined as the total number of inhabitants within the territorial jurisdiction of the
local government unit concerned; and
(c) Land Area. - It must be contiguous, unless it comprises two or more islands or is separated by a local
government unit independent of the others; properly identified by metes and bounds with technical descriptions;
and sufficient to provide for such basic services and facilities to meet the requirements of its populace.
Compliance with the foregoing indicators shall be attested to by the Department of Finance (DOF), the
NationalStatistics Office (NSO), and the Lands Management Bureau(LMB) of the Department of Environment
and Natural Resources(DENR).
SEC. 8. Division and Merger.- Division and merger of existinglocal government units shall comply with the
same requirements herein prescribed for their creation: Provided, however, That such division shall not reduce the
income, population, or land area of the local government unit or units concerned to less than the minimum
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requirements prescribed in this Code: Provided, further, That the income classification of the original local
government unit or units shall not fall below its current income classification prior to such division. The income
classification of local government units shall be updated within six (6) months from the effectivity of this Code to
reflect the changes in their financial position resulting from the increased revenues as provided herein.
SEC. 9. Abolition of Local Government Units.- A local government unit may be abolished when its income,
population, or land area has been irreversibly reduced to less than the minimum standards prescribed for itscreation under Book III of this Code, as certified by the national agencies mentioned in Section 17 hereof to
Congress or to the sanggunian concerned, as the case may be.
The law or ordinance abolishing a local government unit shall specify the province, city, municipality, or
barangay with which thelocal government unitsought to be abolished will be incorporated or merged.
SEC. 10. Plebiscite Requirement.- No creation, division, merger, abolition, or substantial alteration of
boundaries of local government units shall take effect unless approved by a majority of the votes cast in a
plebiscite called for the purpose in the political unit or units directly affected. Said plebiscite shall be conducted
by the Commission on Elections (Comelec) within one hundred twenty (120) days from the date of effectivity of
the law or ordinance effecting such action, unless said law or ordinance fixes another date.
MMDA vs Dante O. Garin G. R. No. 130230, April 15, 2005
The MMDA is not a political unit of government. The power delegated to the MMDA is that given to
the Metro Manila Council to promulgate administrative rules and regulations in the implementation of the
MMDA's functions. There is no grant of authority to enact ordinances and regulations for the general welfare of
the inhabitants of the metropolis.
Therefore, insofar as Sec. 5(f) of Rep. Act No. 7924 is understood by the lower court and by the petitioner
to grant the MMDA the power to confiscate and suspend or revoke drivers' licenses without need of any other
legislative enactment, such is an unauthorized exercise of police power.
Sec. 5(f) grants the MMDA with the duty to enforce existing traffic rules and regulations. MMDA may
enforce, but not enact, ordinaces.
Sultan Osop B. Camid vs Office of the President et. al. G. R. No. 161414, Jan. 17, 2005
Section 442(d) of the Local Government Code requires that in order that the municipality created by
executive order may receive recognition, they must have their respective setof elective municipal officials holding
office at the time of the effectivity of the Local Government Code. Petitioner admits that Andong has never elected
its municipal officers at all.
Padilla vs. Comelec, G.R. No. 103328, October 19, 1992.
It stands to reason that when the law states that the plebiscite shall be conducted "in the political units
directly affected," it means that residents of the political entity who would be economically dislocated by the
separation of a portion thereof have a right to vote in said plebiscite. Evidently, what is contemplated by the phrase
"political units directly affected," is the plurality of political units which would participate in the plebiscite.
Logically, those to be included in such political areas are the inhabitants of the barangays of the proposed
Municipality of Tulay-Na-Lupa as well as those living in the parent Municipality of Labo, Camarines Norte.
Grio v. COMELEC
"SEC. 462. Existing Subprovinces. Existing sub-provinces are hereby converted into regular provinces
upon approval by a majority of the votes cast in a plebiscite to be held in the said sub-provinces and the original
provinces directly affected. The plebiscite shall be conducted by the Comelec simultaneously with the national
elections following the effectivity of this Code.
"The new legislative districts created as a result of such conversion shall continue to be represented in
Congress by the duly elected representatives of the original districts out of which said new provinces or districts
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Notes
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Note:
TYPES OF LOCAL GOVERNMENTS
1. De jure Municipal Corporations-those created or recognized by operation of law
2.
De facto municipal corporations-where the people have organized themselves, under color of law, intoordinary municipal bodies, and have gone on, year after year, raising taxes, making improvements, and
exercising their usual franchises, with their rights dependent quite as much on acquiescence as on the
regularity of their origin
Elements:
a. A valid law authorizing incorporation
b. An attempt in good faith to organize under it
c. A colorable compliance with law
d. An assumption of corporate powers
3. Municipal Corporation by prescription- exercised their powers from time immemorial with a charter
which is presumed to have been lost or destroyed.
Special thanks to:Julse Bacolod
Lemuel Leal
Russel Pernites
Welfredo Pongot
..and to all who submitted their case
digests and made this possible.
Godbless EH 402!