Ust Golden Notes Law On Public Corporationspdf

LOCAL GOVERNMENTS
L. LOCAL GOVERNMENTS Note: Every LGU created or recognized under this

code is a body politic and corporate endowed with
a. PUBLIC CORPORATIONS powers to be exercised by it in conformity with law.
As such, it shall exercise powers as a political
Q: What is a public corporation? subdivision of the national government and has a
corporate entity representing the inhabitants of its
A: It is one created by the State either by general territory (Sec.15, LGC)
or special act for purposes of administration of
local government or rendering service in the Q: What are the classes of corporations?
public interest. (Rodriguez, p. 2, LGC 5th Edition)
A:
Q: Distinguish public corporation from private 1. Quasi‐public corporations – public

corporation. corporations created as agencies of the
State for narrow and limited purposes
A: without the powers and liabilities of
PUBLIC self‐governing corporations.
PRIVATE CORPORATION
CORPORATION
Purpose 2. Municipal corporations – body politic
and corporate constituted by the
Administration of
Private purpose incorporation of inhabitants for
local government
purposes of local government. It is
Who creates established by law partly as an agency
of the State to assist in the civil
By the state either by By incorporators with
general or special act recognizance of the state government of the country, but chiefly
to regulate and administer the local or
How created internal affairs of the city, town or
district which is incorporated. (Dillon,
By legislation By agreement of members Municipal Corporations, Vol.2, pp. 58‐
59.)
Q: What is the criterion to determine whether a
Q: What is a Government Owned and Controlled
corporation is a public corporation?
Corporation (GOCC)?
A: By the relationship of the corporation to the
A: any agency organized as a stock or non‐stock
state; if created by the State as its own agency to
corporation vested with functions relating to
help it in carrying out its governmental functions,
public needs whether governmental or
it is public, otherwise, it is private.
proprietary in nature, and owned by the
government directly or indirectly through its
Q: What are the dual characteristics of a public
instrumentalities either wholly, or where
corporation?
applicable as in the case of stock corporations to
A: the extent of at least 51% of its capital stock.
1. Public or governmental – acts as an (Section 2 (13) of Executive Order No. 292
agent of the State for the government (Administrative Code of 1987)
of the territory and its inhabitants.
Q: What are the requisites of a GOCC?
2. Private or proprietary – acts as an agent
of the community in the administration A:
of local affairs. As such, it acts as 1. Any agency organized as a stock or non‐
separate entity for its own purposes, stock corporation
and not a subdivision of the State. (Bara 2. Vested with functions relating to public
Lidasan vs. COMELEC G.R. No. L‐28089, needs whether governmental or
October 25, 1967 citing McQuillin, proprietary in nature
Municipal Corporations, 3d ed., pp. 456‐ 3. Owned by the Government directly or
464) through its instrumentalities either
wholly, or, where applicable as in the
ACADEMICS CHAIR: LESTER JAY ALAN E. FLORES II UNIVERSITY OFSANTOTOMA S 1
VICE CHAIRS FOR ACADEMICS: KAREN JOY G. SABUGO & JOHN HENRY C.
MENDOZA F a c u lt a d d e D e r e c ho
VICE CHAIRS FORALDMINISTRATION
HAIR FOR AND F:INANCE
AY‐OUT AND DESIGN EARL L:OUIE
JEANELLE
M. MC.ASACAYAN
LEE & THEENA C. Civ il
MARTINEZ
case of stock corporations, to the extent and municipalities, upon the recommendation of the
of at least fifty‐one (51) of its capital sangguniang concerned provided that the same shall
stock. (Leyson, Jr. v. Office of the
be effective only upon ratification in a plebiscite
Ombudsman, G.R. No. 134990, April 27,
conducted for the purpose in the political unit
2000)
directly affected. (R.A. 7160, Sec. 13)
Q: What laws may govern GOCCs and how do
Q: What is the nature and function of a
you determine which will govern?
municipal corporation?
A: Government corporations may be created by
A: It is body politic and corporate constituted by
special charters or by incorporation under the
the incorporation of inhabitants for purposes of
general corporation law. Those created by special
local government. It is established by law partly
charters are governed by the Civil Service Law
as an agency of the State to assist in the civil
while those incorporated under the general
government of the country, but chiefly to
corporation law are governed by the Labor Code.
regulate and administer the local or internal
(Blaquera vs. Alcala, G.R. No. G.R. No. 109406.
affairs of the city, town or district which is
September 11, 1998)
incorporated. (Dillon, Mun. Corp., Vol.2, pp. 58‐
Q: Distinguish public corporation from a GOCC. 59.)
A: Q: What are the different types of municipal

corporations?
PUBLIC
GOCCs
CORPORATION
Purpose A:
consultation with the Philippine Historical
Performance of functions
Administration of relating to public needs Commission change the name of component cities
local government whether Governmental or
Proprietary in nature
Who creates
By the state either by By Congress or by

general or special act incorporators
How created
(1) Original charters or
special laws or (2) general
By legislation
corporation law as a stock
or non‐stock corporation
b. MUNICIPAL CORPORATIONS
Q: What are the essential elements of a

municipal corporation?
A:
1. Legal creation
2. Corporate name
3. Inhabitants constituting the population
who are vested with political and
corporate powers
4. Territory (Rodriguez, p.4, LGC 5th
Edition)
Note: The sangguniang panlalawigan may, in

1. De jure municipal corporations – created
or recognized by operation of law.
2. Municipal corporations by prescription –
exercised their powers from time
immemorial with a charter, which is
presumed to have been lost or destroyed.
3. De facto municipal corporations – where
the people have organized themselves,
under color of law, into ordinary
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. (Rodriguez,
pp.17‐18, LGC 5th Edition)
Note: An inquiry into the legal existence of a de facto

corporation is reserved to the State in a proceeding for
quo warranto or other direct proceeding. (The
Municipality of Malabang, Lanao del Sur vs.
Pangandapun Benito, G.R. No. L‐28113, March 28,
1969)
Q: What are the essential requisites of a de facto

corporation?
A: VACA
1. Valid law authorizing incorporation
2. Attempt in good faith to organize under b. Highly Urbanized City – P 50M
it c. City – P 20M (100M RA. 9009
3. Colorable compliance with law amending Sec 450 of LGC)
4. Assumption of corporate powers d. Municipality – P 2.5M
(Rodriguez, p. 18, LGC 5th Edition)
3. Population requirement – to be
determined as the total number of
c. CREATION inhabitants within the territorial
jurisdiction of the local government unit
Q: Who has the authority to create municipal concerned. The required minimum
corporations? How is a public corporation population shall be:
created?
a. Barangay – 2K
A: A Local Government Unit may be created, But 5K in:
divided, merged, abolished or its boundaries i. Metro Manila
ii. Highly urbanized cities
substantially altered either by:
b. Municipality – 25K
c. City – 150K
1. Law enacted by Congress in case of
d. Province – 250K
province, city, municipality or any other
political subdivision;
2. By an ordinance passed by the 4. Land requirement – must be
Sangguniang Panlalawigan or contiguous, unless it comprises two or
Sangguniang Panlungsod concerned in more islands or is separated by a local
the case of a barangay located within its government unit; properly identified by
territorial jurisdiction, subject to such metes and bounds; and sufficient to
limitations and requirements prescribed provide for such basic services and
in the LGC. (Sec. 6, R.A. 7160) facilities. Area requirements are:
Q: What are the requisites or limitations a. Municipality – 50 sq. km (Sec.442

imposed on the creation or conversion of R.A. 7160)
b. City – 100 sq. km (Sec.450 R.A.
municipal corporations?
7160)
c. Province – 2,000 sq.km (Sec.461
A:
R.A. 7160)
1. Plebiscite requirement – must be
approved by majority of the votes cast Q: Are the Internal Revenue Allotments (IRAs)
in a plebiscite called for such purpose in
considered income and, therefore, to be
the political unit or units directly
affected. included in the computation of the average
annual income of a municipality for purposes of
Note: The plebiscite must be participated its conversion into an independent component
in by the residents of the mother province city?
in order to conform to the constitutional
requirement. A: Yes. The IRAs are items of income because
they form part of the gross accretion of the funds
2. Income requirement – must be of the LGU. The IRAs regularly and automatically
sufficient on acceptable standards to accrue to the local treasury without need of any
provide for all essential government further action on the part of the local government
facilities and services and special unit. They thus constitute income which the local
functions commensurate with the size
government can invariably rely upon as the
of its population as expected of the
local government unit concerned. source of much needed funds. (Alvarez v.
Average annual income for the last Guingona, G.R. No. 118303, Jan. 31, 1996)
consecutive year should be at least:
Q: When does corporate existence begin?
a. Province – P 20M
A: Upon the election and qualification of its chief 2. The challenged “cities” claim that it
executive and a majority of the members of its was the intent of Congress anyway to
sanggunian, unless some other time is fixed grant them exemption from the
therefor by law or ordinance creating it. (Sec. 14, income requirement, as per the
R.A. 7160) deliberations of the 11th Congress.
What became of the cityhood bills and
their deliberations that were pending
Q: What is the rule relative to the merger and at the adjournment of the 11th
division of local government units? Congress?
A: A:
1. Such division or merger shall not reduce 1. Yes, The 16 cities covered by the Cityhood Laws
the income, population or land area of not only had conversion bills pending during the
the LGC concerned to less than the 11th Congress, but have also complied with the
minimum requirement requirements of the LGC prescribed prior to its
2. That the income classification of the
amendment by R.A. No. 9009. Congress
original LGU/s shall not fall below its
current income classification prior to undeniably gave these cities all the considerations
the division that justice and fair play demanded. Hence, this
3. A plebiscite must be held in LGUs Court should do no less by stamping its
affected imprimatur to the clear and unmistakable
4. Assets and liabilities of creation shall be legislative intent and by duly recognizing the
equitably distributed between the LGUs
certain collective wisdom of Congress. (League of
affected and new LGU
Cities of the Philippines (LCP) v. COMELEC, G.R.
No. 176951, April 12, 2011)
Note: When a municipal district of other territorial
divisions is converted or fused into a municipality all 2. Notwithstanding that both the 11th and 12th
property rights vested in original territorial Congress failed to act upon the pending cityhood
organization shall become vested in the government bills, both the letter and intent of Section 450 of
of the municipality. (R.A. 688) the LGC, as amended by R.A. No. 9009, were
carried on until the 13th Congress, when the
Q: At the end of the 11 th Congress’s existence, Cityhood Laws were enacted. The exemption
several bills aiming to convert certain clauses found in the individual Cityhood Laws are
municipalities into cities were pending. The the express articulation of that intent to exempt
same were not entered into law. respondent municipalities from the coverage of
R.A. No. 9009. (League of Cities of the Philippines
The 12th Congress enacted R.A. No. 9009, (LCP) v. COMELEC, G.R. No. 176951, February 15,
amending the Local Government Code (LGC) by 2011)
increasing the income requirement for
conversion of municipalities into cities. Congress Note: On November 18, 2008, the SC ruled the
deliberated on exempting the municipalities cityhood laws unconstitutional. On December 21,
mentioned earlier from the new income 2009, it reversed the ruling. Then again, on August
24, 2010, it decided to uphold the original ruling.
requirement; however, no concrete action came
And finally, last April 12, 2011 it upheld the
out of such deliberations. constitutionality of the creation of the 16 new cities.
The municipalities filed, through their respective Q: May Congress validly delegate to the ARMM
sponsors, individual cityhood bills containing a Regional Assembly the power to create
common proviso exempting them from the new provinces, cities, and municipalities within the
income requirement. The Congress approved the ARMM, pursuant to Congress’s plenary
same. Concerned parties protested such laws legislative powers?
allowing a “wholesale conversion” of
municipalities as being unconstitutional. Decide. A: No. There is no provision in the Constitution
that conflicts with the delegation to regional
1. Are the cityhood laws valid? legislative bodies of the power to create
municipalities and barangays. However, the Constitution. (Aladaba v. Comelec, G.R. No.
creation of provinces and cities is another matter. 188078, Jan. 25, 2010)
Only Congress can create provinces and cities
because the creation of the same necessarily Q: Congress enacted a law reapportioning the
includes the creation of legislative districts, a composition of the Province of Camarines Sur
power only Congress can exercise under Section 5 and created legislative districts thereon. Aquino
Art. VI of the Constitution and Section 3 of the challenged the law because it runs afoul to the
Ordinance appended to it. (Bai Sandra S.A. Sema constitutional requirement that there must be
v. COMELEC, et al. G.R. No. 178628, July 18, 2008) 250,000 population create a legislative districts.
Comelec argued that the mention requirement
Q: Considering the legislative power validly does not apply to provinces. Is the 250,000
delegated to the ARMM Regional Assembly, population standard an indispensible
what is the limitation of such that prevents the requirement for the creation of a legislative
same to create legislative districts? district in provinces?
A: The ARMM Regional Assembly cannot enact a A: No. Section 5(3), Article VI of the 1987
law creating a national office like the office of a Constitution which requires 250,000 minimum
district representative of Congress because the population requirement apply only for a city to be
legislative powers of the ARMM Regional entitled to a representative but not for a
Assembly operate only within its territorial province.
jurisdiction as provided in Section 20 Art. X of the
Constitution. (Sema v. COMELEC, G.R. No. The provision draws a plain and clear distinction
178628, July 16, 2008) between the entitlement of a city to a district on
one hand, and the entitlement of a province to a
Q: Congress enacted a law creating the district on the other. For while a province is
legislative district of Malolos based on a entitled to at least a representative, with nothing
certification of the demographic projection from mentioned about population, a city must first
NSO stating that by 2010, Malolos is expected to meet a population minimum of 250,00 in order to
reach the population of 250,000, hence entitling be similarly situated. (Aquino and Robredo v.
it to one legislative district. Is the law valid? Comelec, G.R. No. 189793, April 7, 2010)
A: No. Congress cannot establish a new legislative Q: Congress passed a law providing for the
district based on a projected population of the apportionment of a new legislative district in
National statistics Office (NSO) to meet the CDO City. The COMELEC subsequently issued a
population requirement of the Constitution in the resolution implementing said law. B now assails
reapportionment of legislative districts. the resolution, contending that rules for the
conduct of a plebiscite must first be laid down,
A city that has attained a population of 250,000 is
as part of the requirements under the
entitled to a legislative district only in the
Constitution. According to B, the apportionment
“immediately following election.” In short, a city
is a conversion and division of CDO City, falling
must first attain the 250,000 population, and
under Section 10 Art X of the Constitution, which
thereafter, in the immediately following election,
provides for the rule on creation, division,
such city shall have a district representative.
merger, and abolition of LGUs. Decide.
There is no showing in the present case that the
City of Malolos has attained or will attain a A: There is no need for a plebiscite. CDO City
population of 250,000, whether actual or politically remains a single unit and its
projected, before May 10, 2010 elections. Thus, administration is not divided along territorial
the City of Malolos is not qualified to have a lines. Its territory remains whole and intact. Thus,
legislative district of its own under Section 5(3), Section 10 Art. X of the Constitution does not
Article VI of the 1987 Constitution and Section 3 come into play. (Bagabuyo v. COMELEC, G.R. No.
of the Ordinance appended to the1987 17690, Dec. 8 2008)
d. DIVISION, MERGER, ABOLITION 2. Approved by a majority of the votes cast in a
plebiscite called for the purpose in the
political unit or units directly affected.
Q: What are the requirements for division and (Sec.10 R.A. 7160)
merger of local government units?
A: Same requirements as creation of LGU e. LOCAL GOVERNMENT CODE

provided:
1. It shall not reduce the income, population Q: How should the Local Government Code be
or land area of the LGU/S concerned to less interpreted?
than minimum requirements prescribed;
2. Income classification of the original LGU/S A:
shall not fall below its current income GR: That any doubt or question on a power of
classification prior to division. (Sec.8 R.A.
local government shall be resolved in favor of
7160)
3. Plebiscite be held in LGUs affected (Sec.10 devolution of powers and in favor of the LGU.
R.A. 7160) (Sec.5 (a) R.A. 7160)
4. Assets and liabilities of creation shall be
equitably distributed between the LGUs XPN: In case of tax measures enacted by local
affected and new LGU. (R.A. 688) government, any doubts shall be resolved strictly
against the local government and liberally in favor
Q: When may an LGU be abolished? of the taxpayer. (Sec.5 (b) R.A. 7160)
A: When its income, population or land area has Q: What are the other rules in interpreting the
been irreversibly reduced to less than the Local Government Code?
minimum standards prescribed for its creation, as
certified by the national agencies mentioned. A:
(Sec. 9, R.A. 7160)
1. General Welfare provisions – liberally
Note: A barangay may officially exist on record and interpreted to give more powers to the
the fact that nobody resides in the place does not local government units in accelerating
result in its automatic cessation as a unit of local economic development and upgrading
government. (Sarangani vs. COMELEC, G.R. No. the quality of life for the people in the
community
135927. June 26, 2000)
2. Rights and obligations existing on
effectivity of this LGC and arising out of
Q: Who may abolish a LGU?
contracts – governed by the original
terms and conditions of said contracts
A:
or the law in force at the time such
1. Congress – in case of provinces, city, rights were vested
municipality, or any other political 3. Resolution of controversies where no
subdivision. legal provision or jurisprudence applies
2. Sangguniang Panlalawigan or Sangguniang – Resort to the customs and traditions
Panglungsod – in case of a barangay, except of the place where the controversies
in Metropolitan Manila area and in cultural take place. (Sec. 5, R.A. 7160)
communities. (Sec.9 R.A. 7160)
Q: What are the requirements prescribed by law 1. PRINCIPLES OF LOCAL AUTONOMY

in abolishing LGUs?
Q: What is the principle of local autonomy?
A:
1. The law or ordinance abolishing a local
government unit shall specify the province, A: Under the 1987 Constitution, it simply means
city, municipality, or barangay with which decentralization; it does not make the local governments
the local government unit sought to be sovereign within the state or an “imperium in imperio”.
abolished will be incorporated or merged. (Basco v. PAGCOR, G.R. 91649, May 14, 1991)
(Sec.9 R.A. 7160)
Q: Distinguish decentralization of administration 2. Where the law is silent, LGU have the discretion
(DA) from decentralization of power (DP). to select reasonable means and methods to
exercise (Rodriguez, pp. 9‐10, LGC 5th Edition)
A:
DA DP
Consists merely in the Involves abdication by Q: What are the different governmental powers
delegation of the national of the LGU?
administrative powers to government of political
broaden the base of power in favor of LGUs A:
governmental power. declared autonomous. 1. Police power
2. Basic services and facilities
3. Power to generate and apply resources
Q: Define devolution with respect to local
4. Power of eminent domain
government units.
5. Taxing Power
6. Reclassification of Land
A: The act by which the national government 7. Local legislative power
confers power and authority upon the various 8. Closure and opening of roads
local government units to perform specific 9. Corporate Powers
functions and responsibilities. 10. Liability of LGUs
11. Settlement of Boundary Disputes
12. Succession of Local Officials
13. Discipline of Local Officials
2. GENERAL POWERS AND ATTRIBUTES OF A LOCAL GOVERNMENT UNIT 14. Authority over police units
2.a. Police Power

Q: What are the sources of powers of a
municipal corporation? Q: What is the nature of the police power of the
LGU?
A:
A: The police power of the LGU is not inherent.
1. Constitution
2. Statutes (e.g. LGC) LGUs exercise the police power under the general
3. Charter welfare clause. (Sec 16, R.A. 7160)
4. Doctrine of right to Self‐Government
(but only to those where it can be Q: What are the requisites/limitations for the
applied) exercise of the police power for it to be
considered as properly exercised?
Q: What are the classifications of municipal
powers? A:
1. The interests of the public generally, as
A: distinguished from those of a particular
class, require the interference of the
1. Express, Implied, Inherent
state. (Equal protection clause)
2. Government or public, Corporate or
2. The means employed are reasonably
private
necessary for the attainment of the
3. Intramural, extramural
object sought to be accomplished and
4. Mandatory, directory; ministerial,
not duly oppressive. (Due process
discretionary
clause)
3. Exercisable only within the territorial
Q: How are powers to be executed?
limits of the LGU, except for protection
of water supply (Sec 16, R.A. 7160)
A:
4. Must not be contrary to the
1. Where statute prescribes the manner of Constitution and the laws.
exercise, procedure must be followed.
Q: May a nuisance be abated without a judicial profession. (Acebedo Optical v. CA, G.R. No.
proceeding? 100152, Mar. 31, 2000)
A: Yes, provide it is nuisance per se. The

abatement of nuisances without judicial
2.b. Eminent Domain
proceedings applies to nuisance per se or those
which affect the immediate safety of persons and
Q: What are the requisites for a valid exercise of
property and may be summarily abated under the
power of eminent domain by LGU?
undefined law of necessity. (Tayaban v. People,
G.R. No. 150194, Mar. 6, 2007)
A: OPOC
Note: The local sanggunian does not have the power 1. An Ordinance is enacted by the local
legislative council authorizing the local
to find, as a fact, that a particular thing is a nuisance
chief executive, in behalf of the local
per se, a thing which must be determined and
government unit, to exercise the power
resolved in the ordinary courts of law (AC Enterprise,
of eminent domain or pursue
Inc. v. Frabelle Properties Corporation, G.R. No. expropriation proceeding over a
166744, Nov. 2, 2006) particular property.
Q: What does the power to issue licenses and Note: A resolution will not suffice for a
permits include? LGU to be able to expropriate private
property; a municipal ordinance is
A: It includes the power to revoke, withdraw or
different from a resolution in that an
restrict through the imposition of certain
ordinance is a law while a resolution is
conditions. However, the conditions must be
merely a declaration of the sentiment
reasonable and cannot amount to an arbitrary
or opinion of a lawmaking authority on
interference with the business. (Acebedo Optical
a specific matter.
Company, Inc. vs. CA, G.R. No. 100152. March 31,
2000) 2. For Public use, purpose or welfare of for
the benefit of the poor or landless
Note: Only the Sanggunian, not the mayor of the 3. Payment of just Compensation
city, has the power to allow cockpits, stadiums, etc. 4. A valid and definite Offer has been
Without an ordinance, he cannot compel mayor to previously made to the owner of the
issue him a business license (Canet v. Decena, G.R. property sought to be expropriated, but
No. 155344, Jan. 20, 2004) said offer was not accepted.
(Municipality of Paranaque vs. V.M.
Q: Distinguish between the grant of a license or Realty Corporation G.R. No. 127820.
July 20, 1998)
permit to do business and the issuance of a
license to engage in the practice of a particular Q. What are the due process requirements in
profession. eminent domain?
A: A: Offer must be in writing specifying:

LICENSE/PERMIT TO DO LICENSE TO ENGAGE IN
1. Property sought to be acquired
BUSINESS A PROFESSION
2. The reason for the acquisition
Board or Commission
Granted by the local 3. The price offered
tasked to regulate the
authorities
particular profession
Note:
Authorizes the person to Authorizes a natural
engage in the business person to engage in the a. If owner accepts offer: a contract of
or some form of practice or exercise of sale will be executed
commercial activity his or her profession
b. If owner accepts but at a higher
Note: A business permit cannot, by the imposition of price: Local chief executive shall call
a conference for the purpose of
condition, be used to regulate the practice of a
reaching an agreement on the selling
price; If agreed, contract of sale will
be drawn. (Article 35 of LGC IRR)
UST GOLDEN NOTES
2011
Q: What are the requisites for an authorized these limits, it usurps the legislative functions of
immediate entry? the municipal council or president. Such has been
the consistent course of executive authority.”
A: (Velazco v. Blas G.R. No., L‐30456 July 30, 1982)
1. The filling of a complaint for
expropriation sufficient in form and
substance 2.c. Taxation
2. The deposit of the amount equivalent
to fifteen percent (15%) of the fair Q: What is the nature of the power of taxation?
market value of the property to be In LGUs?
expropriated based on its current tax
declaration. (City of Iloilo vs Legaspi:
A: A municipal corporation, unlike a sovereign
G.R. No. 154614, November 25, 2004)
state, is clothed with no inherent power of
Note: Upon compliance, the issuance of writ of taxation. The charter or statue must plainly show
possession becomes ministerial. (City of Iloilo vs an intent to confer that power or the municipality
Legaspi, G.R. No. 154614, November 25, 2004) cannot assume it. And the power when granted is
to be construed strictissimi juris. (Medina vs. City
Q: What are the two phases of expropriation of Baguio, G.R. No. L‐4060 August 29, 1952)
proceedings?
Q: Under the Constitution, what are the three
A: main sources of revenues of local government
1. The determination of the authority to units?
exercise the power of eminent domain A:
and the propriety of its exercise in the 1. Taxes, fees, and charges. (Sec. 5, Art. X,
context of the facts involved in the suit. 1987 Constitution)
2. Share in the national taxes. (Share in
2. The determination by the court of “just the proceeds of the utilizations and
compensation for the property sought development of the national wealth
to be taken. (Brgy. Son Roque, Talisay, within their areas. (Sec. 7, Art. X, 1987
Cebu v. Heirs of Francisco Pastor, G.R. Constitution)
No. 138896, June 20, 2000) 3. Sec. 6, Art. X, 1987 Constitution)
Q: May the Sangguniang Panlalawigan validly Q: What are the fundamental principles that
disapprove a resolution or ordinance of a shall govern the exercise of the taxing and
municipality calling for the expropriation of
revenue‐raising powers of local government
private property to be made site of a Farmers
center and other government sports facilities on units?
the ground that said “expropriation is
unnecessary considering that there are still A:
available lots of the municipality for the 1. Taxation shall be uniform in each local
establishment of a government center”? government unit
2. Taxes, fees, charges and other
A: No, The only ground upon which a provincial impositions shall be equitable and
board may declare any municipal resolution, based as far as practicable on the
ordinance or order invalid is when such taxpayer’s ability to pay; be levied and
resolution, ordinance, or order is ‘beyond the collected only for public purpose; not
powers conferred upon the council or president be unjust, excessive, oppressive, or
making the same.’ A strictly legal question is confiscatory; not be contrary to law,
before the provincial board in its consideration of public policy, national economic policy,
a municipal resolution, ordinance, or order. The or restraint of trade;
provincial board’s disapproval of any resolution, 3. The collection of local taxes, fees,
ordinance, or order must be premised specifically charges and other impositions shall in
upon the fact that such resolution, ordinance, or no case be left to any private person
order is outside the scope of the legal powers 4. The revenue collected shall inure solely
conferred by law. If a provincial board passes to the benefit of and be subject to
190 POLITICAL LAW TEAM:

ADVISER: ATTY. EDWIN REY SANDOVAL; SUBJECT HEAD: RACHEL MARIE L. FELICES; ASST. SUBJECT HEADS: WIVINO E. BRACERO II &
HERAZEUS CHRISTINE Y. UY; MEMBERS: LAWRENCE PAULO H. AQUINO, LEANDRO RODEL V. ATIENZA, MARINETH EASTER AN D. AYOS,
CARLO R. BALA, WILFREDO T. BONILLA, JR., KEEL ACHERNAR R. DINOY, APRIL V. ENRILE, KENNETH JAMES CARLO C. HIZON, JOSE
MARIA
G. MENDOZA, ROGER CHRISTOPHER R. REYES, ROMILINDA C. SIBAL, JASMIN M. SISON, ZARAH PATRICIA T. SUAREZ, RALPH JULIOUS L.
VILLAMOR.
disposition by, the local government be
unit, unless specifically provided
therein;
5. Each local government, as far as
practicable, evolves a progressive
system of taxation. (Sec. 130, R.A. 7160)
Q: Under the Constitution, what is the basis of

ARMM’s taxing power?
A: The ARMM has the legislative power to create

sources of revenues within its territorial
jurisdiction and subject to the provisions of the
1987 Constitution and national laws. (Sec. 20[b],
Art. X)
Q: Distinction between the power to tax by

ordinary LGUs and that of the Autonomous
Regions.
A:
LGU’s outside LGU’s inside autonomous
autonomous regions regions (i.e. ARMM)
Basis of Taxing Power
Organic Act which Sec.
Sec. 5, Article X, 1987 20(b), Article X, 1987
Constitution Constitution allows
Congress to pass
Governing Guidelines and limitatitons
Local Government
Respective Organic Act
Code of 1991
Note: Unlike Sec. 5, Article X, Sec. 20, Article X of the

1987 Constitution is not self‐executing. It merely
authorizes Congress to pass the Organic Act of the
autonomous regions which shall provide for
legislative powers to levy taxes upon their
inhabitants.
Q: The president, through AO 372, orders the

withholding of 10 percent of the LGUs' IRA
"pending the assessment and evaluation by the
Development Budget Coordinating Committee of
the emerging fiscal situation" in the country. Is
the AO valid?
A: No, A basic feature of local fiscal autonomy is

the automatic release of the shares of LGUs in the
national internal revenue. This is mandated by no
less than the Constitution. The Local Government
Code specifies further that the release shall be
made directly to the LGU concerned within five
(5) days after every quarter of the year and "shall
not be subject to any lien or holdback that may
imposed by the national government for
whatever purpose." As a rule, the term "shall" is
a word of command that must be given a
compulsory meaning. The provision is,
therefore, imperative. (Pimentel, Jr. v. Aguirre,
G.R. No. 132988, July 19, 2000)
Q: What are the fundamental principles

governing financial affairs, transactions and
operations of LGUs?
A:
1. No money shall be paid out of the local
treasury except in pursuance of an
appropriation ordinance or law;
2. Local government funds and monies

shall be spent solely for public
purposes;
3. Local revenue is generated only from

sources expressly authorized by law or
ordinance, and collection thereof shall
at all times be acknowledged property
4. All monies officially received by a local

government officer in any capacity or
on any occasion shall be accounted for
as local funds, unless otherwise
provided
5. Trust funds in the local treasury shall

not be paid out except in the
fulfillment of the purpose for which
the trust was created or the funds
received
6. Every officer of the local government

unit whose duties permit or require
the possession or custody of local
funds shall be properly bonded, and
such officer shall be accountable and
responsible for said funds and for the
safekeeping thereof in conformity with
the provisions of law;
7. Local governments shall formulate a

sound financial plans and local budgets
shall be based on functions, activities
and projects, in terms of expected
results
8. Local budget plans and goals shall, so

far as practicable, be harmonized with
national development plans, goals and
strategies in order to optimize the
utilization of resources and to avoid
duplication in the use of fiscal and
physical resources
UST GOLDEN NOTES
2011
ii. Component city or
9. Local budgets shall operationalize municipality where it was
approved local development plans extracted‐ 30%
iii. Barangay where it was
10. Local government units shall ensure extracted‐ 40% (Sec. 138
that their respective budgets R.A. 7160)
incorporate the requirements of their
component units and provide for e. Professional tax: not exceeding
equitable allocation of resources among P300.00. (Sec. 139 R.A. 7160)
these component units f. Amusement tax: not more than
30% of the gross receipts. (Sec.
11. National planning shall be based on 140
local planning to ensure that the needs R.A. 7160)
and aspirations of the people as g. Annual fixed tax for every delivery
articulated by the local government truck or van of manufacturers or
units in their respective local producers, wholesalers of, dealers,
development places, are considered in or retailers in certain products: not
the formulation of budgets of national exceeding P500.00 (Sec. 141 R.A.
line agencies or offices 7160)
12. Fiscal responsibility shall be shared by 2. For municipalities‐ May levy taxes, fees,
all those exercising authority over the and charges not otherwise levied by
financial affairs, transactions and provinces, except as provided for in the
operations of the local government LGC.
units; and a. Tax on business. (Sec. 143 R.A.
7160)
13. The local government unit shall b. Fees and charges on business and
endeavor to have a balanced budget in occupation except those reserved
each fiscal year of operation(Sec. 305, for the province. (Sec. 147 R.A.
R.A. 7160) 7160)
c. Fees for sealing and licensing of
Q: What are the taxes that may be imposed by weights and measures. (Sec.
the LGUs? 148
R.A. 7160)
A: d. Fishery rentals, fees and charges.
(Sec. 149 R.A. 7160)
1. For provinces 1. For cities – May levy taxes, fees and
a. Tax on transfer of real property charges which the province and
ownership (sale, donation, barter, municipality may impose provided:
or any other mode of transferring a. That the taxes, fees and charges
ownership): not more than 50% of levied and collected of highly
1% of the total consideration urbanized and independent
involved in the acquisition of the component cities shall accrue to
property (Sec. 135 R.A. 7160) them, and
b. Tax on business of printing and b. That the rate that the city may levy
publication: not exceeding 50% of may exceed the maximum rates
1% of the gross annual receipt allowed for the province or
(Sec. 136 R.A. 7160) municipality by not more than 50%
c. Franchise tax: not exceeding 50% except the rates of professional
of 1% of the gross annual receipt and amusement taxes. (Sec. 151
(Sec. 137 R.A. 7160) R.A. 7160)
d. Tax on sand, gravel and other
quarry resources: not more than Q: What are the taxes, fees and charges that
10% of the fair market value per may be imposed by the barangay?
cubic meter. Proceeds will be
distributed as follows: A:
i. Province‐ 30%
1. Taxes on stores and retails with fixed
business establishment with gross sales
MARIA
VILLAMOR.
of the preceding calendar year of ensuing quarter and the taxes, fees, or charges
P50,000 or less, in the case of cities and
due shall begin to accrue therefrom. (Art. 276,
P30,000 or less, in the case of
IRR of LGC)
municipalities, at a rate not exceeding
1% on such gross sales or receipts.
2. services rendered Q: The Province of Palawan passes an ordinance
3. barangay clearances requiring all owners/operators of fishing vessels
4. commercial breeding of fighting cocks, that fish in waters surrounding the province to
cockfights and cockpits invest ten percent (10%) of their net profits from
5. places of recreation which charge operations therein in any enterprise located in
admission fees Palawan. NARCO Fishing Corp., a Filipino
6. Billboards, signboards, neon signs and
corporation with head office in Navotas, Metro
outdoor advertisements. (Sec. 152 R.A.
7160) Manila, challenges the ordinance as
unconstitutional. Decide the case.
Note: Where the Secretary of Justice reviews,
pursuant to law, a tax measure enacted by a local A: The ordinance is invalid. The ordinance was
government unit to determine if the officials apparently enacted pursuant to Art. X, Sec. 7 of
performed their functions in accordance with law, the Constitution, which entitles local
i.e, with the prescribed procedure for the enactment governments to an equitable share in the
of tax ordinances and the grant of powers under the proceeds of the utilization and development of
Local Government Code, the same is an act of mere the national wealth within their respective areas.
supervision and not control (Drilon vs. Lim, G.R. No. However, this should be made pursuant to law. A
112497, Aug.4, 1994). law is needed to implement this provision and a
local government cannot constitute itself unto a
Q: What procedures must a LGU comply with for law. In the absence of a law the ordinance in
a revenue ordinance to be valid? question is invalid.
A: Q: Who determines the legality or propriety of a

1. A prior public hearing on the measure local tax ordinance or revenue measure?
conducted according to prescribed
rules.
A: It is the Secretary of Justice who shall
2. Publication of the tax ordinance, within
determine questions on the legality and
10 days after their approval, for 3
constitutionality of ordinances or revenue
consecutive days in a newspaper of
measures. Such questions shall be raised on
local circulation provided that in
appeal within thirty (30) days from the effectivity
provinces, cities, and municipalities
thereof to the Secretary of Justice who shall
where there are no newspapers of local
render a decision within sixty (60) days from the
circulation, the same may be posted in
date of receipt of the appeal: Provided, however,
at least two (2) conspicuous and
That such appeal shall not have the effect of
publicly accessible places.
suspending the effectivity of the ordinance and
the accrual and payment of the tax, fee, or charge
Note: If the tax ordinance or revenue measure
levied therein: Provided, finally, That within thirty
contains penal provisions as authorized in
(30) days after receipt of the decision or the lapse
Article 280 of this Rule, the gist of such tax of the sixty‐day period without the Secretary of
ordinance or revenue measure shall be Justice acting upon the appeal, the aggrieved
published in a newspaper of general circulation party may file appropriate proceedings with a
within the province where the sanggunian court of competent jurisdiction (RTC). (Sec. 187
concerned belongs. (Art. 276, IRR of LGC) R.A. 7160)
Q: When shall a tax ordinance take effect? Q: What is the nature of a community tax?
A: In case the effectivity of any tax ordinance or A: Community tax is a poll or capitation tax which
revenue measure falls on any date other than the is imposed upon person who resides within a
beginning of the quarter, the same shall be specified territory.
considered as falling at the beginning of the next
Q: Who are exempted from the payment of the Q: What are the requisites for a real estate tax
community tax? protest?
A: A:
1. Diplomatic and consular 1. The taxpayer has already paid the tax
representatives; 2. The protest must be in writing
2. Transient visitors when their stay in the 3. Must be filed within 30 days from
Philippines does not exceed 3 months. payment of the tax to the local
(Sec. 159 R.A. 7160) treasurer concerned who shall decide
the same within 60 days from receipt of
Q: What are the remedies available to the local such protest.
government units to enforce the payment of
taxes? Note: Payment of tax is precondition in protest
questioning the reasonableness of the assessment or
A: amount of tax; but not when the issue raised is the
1. Imposing penalties (surcharges and authority of assessor or treasurer. (Ursal, Philippine
penalty interest) in case of delinquency Law on Local Government Taxation, 2000 Ed.)
(Sec. 167 R.A. 7160)
2. Availing local government’s liens (Sec. Q: How much real property tax can be imposed
173 R.A. 7160) by the local government units?
3. Administrative action through distraint
of goods, chattels, and other personal A: A real estate levy may be imposed by the
property (Sec. 174(a) R.A. 7160) province or city or a municipality w/in metro
4. Judicial action (Sec. 174(b) R.A. 7160)
manila as follows:
Q: What are the other sources of revenue? 1. By the province, not exceeding 1% of the
assessed value of the property; and
A: The local government units are entitled to 2. By the city or a municipality w/in metro
definite shares in: manila, not exceeding 2% of the assessed
value of the property. (Sec. 233 R.A.
1. The proceeds from development and 7160)
utilization of mines, forests, and marine
resources up to 40% of the gross Q: Bayantel was granted by Congress after the
collections there from by the national effectivity of the Local Government Code (LGC), a
government. (Sec. 290 R.A. 7160) legislative franchise with tax exemption
privileges which partly reads “the grantee, its
2. The proceeds of government owned or successors or assigns shall be liable to pay the
controlled corporations engaged in the same taxes on their real estate, buildings and
utilization and development of the
personal property, exclusive of this franchise, as
national wealth up to 1% of the gross
sales or 40% of the gross collections other persons or corporations are now or
made by the national government there hereafter may be required by law to pay.” This
from, whichever is higher. (Sec. 291 R.A. provision existed in the company’s franchise
7160) prior to the effectivity of the LGC. Quezon City
then enacted an ordinance imposing a real
Q: What are real property taxes? property tax on all real properties located within
the city limits and withdrawing all exemptions
A: These are directly imposed on privilege to use previously granted. Among properties covered
real property such as land, building, machinery, are those owned by the company. Bayantel is
and other improvements, unless specifically imposing that its properties are exempt from tax
exempted. under its franchise. Is Bayantel correct?
Note: Real property taxes are local taxes and not A: Yes. The properties are exempt from taxation.
national taxes. (Pimentel, 2007 Edition, p. 415) The grant of taxing powers to local governments
under the Constitution and the LGC
does not
affect the power of Congress to grant tax
exemptions. 3. And the corresponding
recommendation of the secretaries of
The term "exclusive of the franchise" is the Department of Finance, Interior and
interpreted to mean properties actually, directly Local Government, and Budget and
and exclusively used in the radio and Management. (Pimentel, Jr. vs. Aguirre,
telecommunications business. The subsequent G.R. No. 132988, July 19, 2000)
piece of legislation which reiterated the phrase
Q: May a local government unit (LGU) regulate
“exclusive of this franchise” found in the previous
the subscriber rates charged by cable tv
tax exemption grant to the company is an express
operators within its territorial jurisdiction?
and real intention on the part of the Congress to
once against remove from the LGC’s delegated
A: No. Under E.O. No. 205, the National
taxing power, all of the company’s properties that
Telecommunications Commission has exclusive
are actually, directly and exclusively used in the
jurisdiction over matters affecting CATV
pursuit of its franchise. (The City Government of
operation, including specifically the fixing of
Quezon City, et al., v. Bayan Telecommnications,
subscriber rates. CATV system is not a mere local
Inc., G.R. No. 162015, Mar. 6, 2006)
concern. The complexities that characterize this
Note: An ordinance levying taxes, fees or charges new technology demand that it be regulated by a
shall not be enacted without any prior public hearing specialized agency. This is particularly true in the
conducted for the purpose. (Figuerres v. CA, G.R. area of rate‐fixing. However, there is nothing
No. 119172, Mar.25, 1999) under E.O. 205 precludes LGUs from exercising its
general power, under R.A. No. 7160, to prescribe
Q: What are the special levies on real property? regulations to promote health, morals, peace,
education, good order or safety and general
A: welfare of their constituents. (Batangas CATV,
1. A special education fund may also be Inc. v. CA, G.R. No. 138810, Sept. 29, 2004)
assessed in provinces, cities, or
Metropolitan Manila municipalities up
to a maximum of 1% of the assessed
2.d. Closure of Roads
value of a real property. (Sec. 235 R.A.
7160)
Q: What are subject to the power of an LGU to
2. Idle lands in provinces, cities or open or close a road?
municipalities in Metro Manila may be
additionally taxed at not exceeding 5% A: Any local road, alley, park, or square falling
of their assessed value. (Sec. 236 R.A.
within its jurisdiction may be closed, either
7160)
3. Lands benefited by public works permanently or temporary. (Sec 21(a) R.A. 7160)
projects or improvements in provinces,
cities and municipalities may be levied a Q: What are the limitations in case of permanent
special tax of not exceeding 60% of the and temporary closure?
actual cost of the project. (Sec. 240 R.A.
7160)
A:
the various local leagues;
Q: What are the requisites so that the President
may interfere in local fiscal matters?
A:
1. An unmanaged public sector deficit of
the national government;
2. Consultations with the presiding officers

of the Senate and the House of
Representatives and the presidents of
1. In case of permanent closure:
a. Must be approved by at least 2/3 of
all the members of the sanggunian
and when necessary provide for an
adequate substitute for the public
facility
b. Adequate provision for the public
safety must be made
c. The property may be used or
conveyed for any purpose for
which other real property may be
lawfully used or conveyed, but no Note: He shall certify within 10 days from the
freedom park shall be closed passage of ordinances enacted and resolutions
permanently without provision for
adopted by the sanggunian in the session over which
its transfer or relocation to a new
he temporarily presided. (Sec. 49(b) R.A. 7160)
site. (Sec 21(a&b) R.A. 7160)
2. In case of temporary closure: Q: May an incumbent Vice‐Governor, while

a. For actual emergency, fiesta concurrently the acting governor, continue to
celebration, public rallies, preside over the sessions of the Sangguniang
agricultural or industrial works and Panlalawigan? If not, who may preside in the
highway telecommunications and
meantime?
water work projects
b. Duration of which shall be
specified A: A vice‐governor who is concurrently an acting
c. Except for those activities not governor is actually a quasi‐governor. For
officially sponsored or approved by purposes of exercising his legislative prerogatives
the LGU concerned (Sec 21(c) R.A. and powers, he is deemed a non‐member of the
7160) SP for the time being.
Note: Any city, municipality or barangay may, by

In the event of inability of the regular presiding
ordinance, temporarily close and regulate the use of
officer to preside at the sanggunian session, the
a local street, road, thoroughfare or any other public
members present and constituting a quorum shall
place where shopping, Sunday, flea or night markets
may be established and where articles of commerce elect from among themselves a temporary
may be sold or dispensed with to the general public. presiding officer.(Gamboa v. Aguirre, G.R. No.
(Sec 21(d) R.A. 7160) 134213, July 20, 1999)
Q: What is the quorum in the sanggunian?

2.e. Local Legislative Power
A: A majority of all the members of the
Q: Who exercises local legislative power and their sanggunian who have been elected and qualified.
presiding officer (PO)? (Sec. 53(a) R.A. 7160)
A: Q: What are the procedural steps or actions to

Sangguniang be taken by the presiding officer if there is a
Province Vice‐governor question of quorum and if there is no quorum?
panlalawigan
Sangguniang City vice‐
City
panlungsod mayor A: Should there be a question of quorum raised
Sangguniang Municipality during a session, the PO shall immediately
Municipality
bayan vice‐mayor proceed to call the roll of the members and
Sangguniang Punong thereafter announce the results. (Sec. 53(a) R.A.
Barangay
barangay barangay 7160)
Note: The PO shall vote only to break a tie. (Sec. If there is no quorum:
49(a) R.A. 7160) 1. Declare a recess until such time that
quorum is constituted
Q: In the absence of the regular presiding officer, 2. Compel attendance of the member
who presides in the sanggunian concerned? absent without justifiable cause
3. Declare the session adjourned for lack
of quorum and no business shall be
A: The members present and constituting a
transacted (Sec. 53(b) R.A. 7160)
quorum shall elect from among themselves a
temporary presiding officer. Q: How are sessions fixed?
UST GOLDEN NOTES
2011
A: sentiment or opinion of a
IF REGULAR SESSIONS IF SPECIAL SESSIONS lawmaking body on a specific
When public interests matter
By resolution on the 1st so demand may be General and
day of the session called by the local chief permanent Temporary in nature
immediately following the executive or by a character
election the elections of majority of the GR: Not necessary in resolution
its members members of the
sanggunian XPN: unless decided otherwise
Third reading is
by a majority of all the
necessary for an
Q: What are the requirements of a sanggunian sangguniang members (Article
ordinance
session? 107, pars. a and c,
Implementing Rules and
Regulations of RA 7160)
A:
1. Shall be open to public unless it is a
closed‐door session Q. What are the requisites for validity? (must
2. No two sessions, regular or special, may not be CUPPU, must be GC)
be held in a single day
3. Minutes of the session be recorded and A:
each sanggunian shall keep a journal
1. Must not Contravene the constitution
and record of its proceedings which
and any statute
may be published upon resolution of
2. Must not be Unfair or oppressive
the sanggunian concerned.
3. Must not be Partial or discriminatory
4. In case of special sessions:
4. Must not Prohibit, but may regulate
trade
a. Written notice to the members 5. Must not be Unreasonable
must be served personally at least
6. Must be General in application and
24 hours before Consistent with public policy. (Magtajas
b. Unless otherwise concurred in by vs. Pryce Properties Corporation, Inc,
2/3 votes of the sanggunian G.R. No. 111097 July 20, 1994)
members present, there being no
quorum, no other matters may be
considered at a special session Local Initiative and Referendum
except those stated in the notice.
(Sec. 52 R.A. 7160)
Q: Distinguish local initiative from referendum. A:
Q: On its first regular session, may the
Sanggunian transact business other than the
matter of adopting or updating its existing rules INITIATIVE REFERENDUM
or procedure? The legal process The legal process
whereby the registered whereby the registered
voters of a LGU may voters of the LGU may
A: Yes. There is nothing in the language of the
directly propose, enact approve, amend or reject
LGC that restricts the matters to be taken up
or amend any any ordinance enacted by
during the first regular session merely to the
ordinance. (Sec. 120 the sanggunian. (Sec. 126
adoption or updating of the house rules.
Q: WhatR.A. 7160)
are R.A. initiative?
the limitations on local 7160)
(Malonzo v. Zamora, G.R. No. 137718, July 27,
1999).
Q: What are the products of legislative action

A:
and their requisites for validity?
1. It shall not be exercised for more than
once a year.
A: 2. It shall extend only to subjects or
ORDINANCEmatters which are RESOLUTION
within the legal
Law Merely a declaration of the

MARIA
VILLAMOR.
powers of the sanggunian to enact. effected(Sec. 56 and
(Sec. 124 R.A. 7160) 58, R.A. 7160)
Note: Any proposition or ordinance approved

Q: What is the effect of the enforcement of a
through an initiative and referendum shall not be
disapproved ordinance or resolution?
repealed, modified or amended by the sanggunian
within 6 months from the date of approval thereof,
and may be amended, modified or repealed within 3 A: It shall be sufficient ground for the suspension
years thereafter by a vote of ¾ of all its members. In or dismissal of the official or employee (Sec. 58,
case of barangays, the period shall be 18 months R.A. 7160)
after the approval thereof. (Sec. 125 R.A. 7160)
Q: When is the effectivity of ordinances or
Q: How is a review of the ordinances or resolutions?
resolutions done?
A:
A: GR: Within 10 days from the date a copy is
REVIEW OF posted in a bulletin board and in at least 2
COMPONENT CITY AND conspicuous spaces. (Sec. 59(a) R.A. 7160)
REVIEW OF BARANGAY
MUNICIPAL
ORDINANCES
ORDINANCES OR XPN: Unless otherwise stated in the
RESOLUTIONS ordinance or resolution. (Sec. 59(a) R.A.
Who reviews 7160)
Sangguniang
Sanggunian Panlalawigan Panglungsod or Q: What ordinances require publication for its
Sangguniang Bayan effectivity?
When copies of ordinance or resolutions be
forwarded A:
Within 3 days after
1. Ordinances that carry with them Within 10 days
penal after (Sec. 59(c) R.A. 7160)
sanctions.
approval its enactment 2. Ordinances and resolutions passed by
Period to examine highly urbanized and independent
Within 30 days after the component cities. (Sec. 59(d) R.A. 7160)
receipt; may examine or
may transmit to the Q: What are the instances of approval of
provincial attorney or ordinances?
provincial prosecutor. Within 30 days after
If the latter, must submit the receipt A:
his comments or 1. If the chief executive approves the
recommendations within same, affixing his signature on each and
10 days from receipt of the every page thereof
document 2. If the local chief executive vetoes the
When declared valid same, and the veto is overridden by 2/3
If no action has been taken vote of all members of the sanggunian.
within 30 days after Same
submission Note: Local Chief Executive may veto the
When invalid (grounds) ordinance only once on the ground that
If inconsistent with the ordinance is ultra vires and prejudicial
the law or city or to public welfare. The veto must be
municipal ordinance communicated to the sanggunian within
If beyond the power
a. 15 days = province
conferred on the b. 10 days = city or municipality
Effect: Brgy ordinance
sangguniang panlungsod
is suspended until
such time as the Q: What are the items that the local chief
revision called is executive may veto:
LOCAL GOVERNMENTS
2008)
A:
1. Item/s of an appropriation ordinance.
2. Ordinance/resolution adopting local
development plan and public
investment program
3. Ordinance directing the payment of
money or creating liability
Note: Ordinances enacted by the sangguniang

barangay shall, upon approval by a majority of all its
members be signed by the punong barangay. The
latter has no veto power.
2.f. Corporate Powers
Q: What are the corporate powers
of an LGU?
A:
1. To have continuous succession in its
corporate name
2. To sue and be sued
Note: Only the Provincial Fiscal or the Municipal

Attorney can represent a province or municipality in
lawsuits. This is mandatory. Hence, a private
attorney cannot represent a province or
municipality.
3. To have and use a corporate seal
Note: Any new corporate seals or changes on

such shall be registered with DILG.
4. To acquire and convey real or personal

property
5. To enter into contracts; and
6. To exercise such other powers as
granted to corporations (Sec. 21, R.A.
7160)
Q: Who is the proper officer to represent the city

in court actions?
A: The city legal officer is supposed to represent

the city in all civil actions and special proceedings
wherein the city or any of its officials is a party,
but where the position is as yet vacant, the City
Prosecutor remains the city’s legal adviser and
officer for civil cases. (Asean Pacific Planners vs.
City of Urdaneta, G.R. No. 162525, September 23,

JEANELLE
M. MC.ASACAYAN
MARTINEZ
UST GOLDEN NOTES
2011
Q: What is the difference between the suability
and liability of the Local Government?
A: Where the suability of the state is conceded

and by which liability is ascertained judicially, the
state is at liberty to determine for itself whether
to satisfy the judgment or not. (Municipality of
Hagonoy Bulacan vs. Hon. Simeon Dumdum, G.R.
No. 168289 March 22, 2010)
Q: May LGU funds and properties be seized

under writs of execution or garnishment to
satisfy judgments against them?
A: No, The universal rule that where the State

gives its consent to be sued by private parties
either by general or special law, it may limit
claimants action only up to the completion of
proceedings anterior to the stage of execution
and that the power of the Courts ends when the
judgment is rendered, since government funds
and properties may not be seized under writs of
execution or garnishment to satisfy such
judgments, is based on obvious considerations of
public policy. Disbursements of public funds must
be covered by the corresponding appropriations
as required by law. The functions and public
services rendered by the State cannot be allowed
to be paralyzed or disrupted by the diversion of
public funds from their legitimate and specific
objects. (Traders Royal Bank v. Intermediate
Appellate Court, G.R. No. 68514, December 17,
1990)
Q: What is the exception to the above stated

rule?
A: The rule on the immunity of public funds from

seizure or garnishment does not apply where the
funds sought to be levied under execution are
already allocated by law specifically for the
satisfaction of the money judgment against the
government. In such a case, the monetary
judgment may be legally enforced by judicial
processes. (City of Caloocan v. Allarde, G.R. No.
107271, September 10, 2003)
Q: What are the requisites of a valid municipal

contract?

MARIA
VILLAMOR.
A: Q: Is Public bidding required when LGUs enter
1. The local government unit has the into contracts?
express, implied or inherent power to
enter into the particular contract
A: Yes, in the award of government contracts, the
2. The contract is entered into by the law requires competitive public bidding. It is
proper department board, committee, aimed to protect the public interest by giving the
officer or agent. public the best possible advantages thru open
competition. It is a mechanism that enables the
Note: No contract may be entered into by the local government agency to avoid or preclude
chief executive on behalf of the local government anomalies in the execution of public contracts.
without prior authorization by the sanggunian (Garcia vs.Burgos, G.R. No. 124130, June 29,
concerned, unless otherwise provided. (Sec 22(c) 1998)
R.A. 7160)
Q: When is there a failure of bidding?
3. The contract must comply with certain
substantive requirements:
A: when any of the following occurs:
a. Actual appropriation; and
b. certificate of availability of funds 1. There is only one offeror
2. When all the offers are non‐complying
4. The contract must comply with the or unacceptable. (Bagatsing vs.
formal requirements of written Committee on Privatization, G.R. No.
contracts 112399 July 14, 1995 )
Note: This includes the power to acquire and convey Q: Can a municipal contract be ratified?
properties by the LGU through written contracts.
A: No, when the local chief executive enters into
Q: What are ultra vires contracts? contracts, he needs prior authorization or
authority from the Sanggunian and not
A: These are contracts entered into without the ratification. (Vergara vs. Ombudsman, G.R. No.
first and third requisites. Such are null and void 174567, March 12, 2009)
and cannot be ratified or validated.
Q: What properties may be alienated by LGUs?
Q: What documents must support the contract
of sale entered into by the LGU? A: Only Properties owned in its private or
proprietary capacity (Patrimonial Property).
A: (Province of Zamboanga del Norte vs. City of
1. Resolution of the sanggunian Zamboanga, G.R. No. L‐24440, March 28, 1968)
authorizing the local chief executive to
enter into a contract of sale. The
resolution shall specify the terms and Article 424 of the Civil Code lays down the basic
conditions to be embodied in the principle that properties of public dominion
contract; devoted to public use and made available to the
2. Ordinance appropriating the amount public in general are outside the commerce of
specified in the contract man and cannot be disposed of or leased by the
3. Certification of the local treasurer as to local government unit to private persons.
availability of funds together with a
(Macasiano vs. Diokno, G.R. No. 97764, August
statement that such fund shall not be
disbursed or spent for any purpose 10, 1992)
other than to pay for the purchase of
the property involved. (Jesus is Lord Q: Give important rules regarding LGU’s power
Christian School Foundation, Inc. vs. to acquire and convey real or personal property.
Municipality of Pasig, G.R. No. 152230,
August 9, 2005)
A: in the conduct of municipal affairs, both
1. In the absence of proof that the governmental and proprietary.
property was acquired through
corporate or private funds, the
presumption is that it came from the
State upon the creation of the
municipality and, thus, is governmental
or public property. (Salas vs. Jarencio,
G.R. No. L‐29788, August 30, 1972;
Rabuco vs. Villegas, G.R. No. L‐24661,
February 28, 1974)
2. Town plazas are properties of public
dominion; they may be occupied
temporarily, but only for the duration of
an emergency (Espiritu vs. Municipal
Council of Pozorrubio, Pangasinan, G.R.
No. L‐11014, January 21, 1958).
3. Public plazas are beyond the commerce
of man, and cannot be the subject of
lease or other contractual undertaking.
And, even assuming the existence of a
valid lease of the public plaza or part
thereof, the municipal resolution
effectively terminated the agreement,
for it is settled that the police power
cannot be surrendered or bargained
away through the medium of a
contract. (Villanueva vs. Castaneda,
G.R. No. L‐61311, September 2l, 1987)
Q: Who has the authority to negotiate and

secure grants?
A: The local chief executive may, upon authority

of the sanggunian, negotiate and secure financial
grants or donations in kind, in support of the
basic services and facilities enumerated under
Sec. 17, R.A. 7160 from local and foreign
assistance agencies without necessity of securing
clearance or approval of any department, agency,
or office of the national government or from any
higher local government unit; Provided that
projects financed by such grants or assistance
with national security implications shall be
approved by the national agency concerned.
2.g. Municipal Liability
Q: What is the scope of municipal
liability?
A: Municipal liabilities arise from various sources

Q: What is the rule with respect to the liabilities
of (LGU’s) and their officials?
A: LGUs and their officials are not exempt from

liability for death or injury to persons or damage
to property (Sec. 24, R.A. 7160).
Q: What are the specific provisions making LGUs

liable?
A:
1. LGU shall be liable for damages for the
death of, or injuries suffered by, any
person by reason of the defective
condition of roads, streets, bridges,
public buildings, and other public works
under their control or supervision. (Art.
2189, New Civil Code)
Note: LGU is liable even if the road does not belong

to it as long as it exercises control or supervision
over said roads.
2. The State is responsible when it acts

through a special agent. (Art. 2180,
NCC)
3. When a member of a city or municipal

police force refuses or fails to render
aid or protection to any person in case
of danger to life or property, such
peace officer shall be primarily liable for
damages and the city or municipality
shall be subsidiarily responsible
therefor.(Art. 34, NCC)
Q: What are the bases for municipal liabilities?
A:
1. Liability arising from violation of law
Note: Liability arising from violation of

law such as closing municipal streets
without indemnifying persons
prejudiced thereby, non‐payment of
wages to its employees or its refusal to
abide a temporary restraining order
may result in contempt charge and fine.
2. Liability on contracts
Note: LGU is liable on a contract it enters

into provided that the contract is intra
vires. If it is ultra vires they are not liable.
3. Liability for tort A:
1. LGU‐engaged (governmental function) –
Note: Liability for tort – may be held for
not liable
torts arising from the performance of its
2. LGU‐engaged (proprietary function) –
private and proprietary functions under
the principle of respondeat superior. They liable (Rodriguez, p.105, LGC 5th Edition)
are also liable for back salaries for
employees illegally dismissed/separated
or for its refusal to reinstate employees. 2.h. Settlement of Boundary Disputes
Q: What are the conditions under which a local Q: State how the two local government units
executive may enter into a contract in behalf of should settle their boundary dispute.
his government unit?
A: Boundary disputes between local government
A: WAFAC units should, as much as possible, be settled
1. The contract must be Within the power amicably. After efforts at settlement fail, then the
of the municipality
dispute may be brought to the appropriate RTC in
2. The contract must be entered into by an
Authorized officer (e.g. mayor with the said province. Since the LGC is silent as to
proper resolution by the Sangguniang what body has exclusive jurisdiction over the
Bayan, Sec. 142 LGC) settlement of boundary disputes between a
3. There must be appropriation and municipality and an independent component city
Certificate of availability of funds of the same province, the RTC have general
4. The contract must conform with the jurisdiction to adjudicate the said controversy.
Formal requisites of a written contract
as prescribed by law; and
5. In some cases the contract must be Q: What body or bodies are vested by law with
Approved by the President and/or the authority to settle disputes involving:
provincial governor (Sec. 2068 and Sec. 1. Two or more owns within the same
2196, Revised Adm. Code) province
2. Two or more highly urbanized cities.
Q: What is the doctrine of Implied Municipal
Liability? A:
1. Boundary disputes involving two or
A: A municipality may become obligated upon an more municipalities within the same
province shall be settled by the
implied contract to pay the reasonable value of
sangguniang panlalawigan concerned.
the benefits accepted or appropriated by it as to (Section 118[b], Local Government
which it has the general power to contract. Code)
(Province of Cebu v. IAC, G.R. No. L‐72841, Jan. 2. Boundary disputes involving two or
29, 1987) more highly urbanized cities shall be
settled by the sangguniang panlungsod
Note: Estoppel cannot be applied against a municipal of the parties. (Section 118[d], Local
Government Code)
corporation in order to validate a contract which the
municipal corporation has no power to make or
Q: State the importance of drawing with precise
which it is authorized to make only under prescribed
limitations or in a prescribed mode or manner – strokes the territorial boundaries of a local
even if the municipal corporations has accepted government unit.
benefits thereunder. (Favis vs. Municipality of
Sabangan, G.R. No. L‐26522, February 27, 1969) A: The boundaries must be clear for they define
the limits of the territorial jurisdiction of a local
Q: State the rules on municipal liability for tort. government unit. It can legitimately exercise
powers of government only within the limits of its
territorial jurisdiction. Beyond these limits, its
acts are ultra vires. Needless to state, any
uncertainty in the boundaries of local
LOCAL GOVERNMENTS
government units will sow costly conflicts in the At least 23 years old on election day
exercise of governmental powers which
1. Governor
ultimately will prejudice the people’s welfare.
2. Vice Governor
This is the evil sought to be avoided by the Local
Government Code in requiring that the land area 4. Vice Mayor
of a local government unit must be spelled out in 5. Member of Sangguniang Panlungsod in
metes and bounds, with technical descriptions. highly urbanized cities
(Mariano, Jr. v. COMELEC, G.R. No., 118577, Mar. At least 21 years old
7, 1995)
1. Mayor
2. Vice Mayor of Independent component
3. LOCAL OFFICIALS cities or municipalities
3.a. Elective Officials At least 18 years old
a. Member of Sangguniang Panglungsod

Q: What are the qualifications of elective b. Member of Sangguniang Bayan
government official? c. Punong Barangay
d. Member of Sangguniang Barangay
A: At least 15 years of age but not more than 18

1. Must be a Filipino citizen years of age on election day (as amended under
2. Must be a registered voter in: R.A.
9164)
a. The barangay, municipality, city or
Candidates for the Sangguniang Kabataan
province where he intends to be
elected
b. The district where he intends to be Q: When should the citizenship requirement be
elected in case of a member if the
possessed?
Sangguniang Panlalawigan,
Sangguniang Panlungsod, or
Sangguniang Bayan A: The citizenship requirement in the LGC is to be
possessed by the elective official, at the latest, as
3. Must be a resident therein for at least 1 of the time he is proclaimed and at the start of
year immediately preceding the day of the term of office to which he has been elected.
the election; The LGC does not specify any particular date or
time when the candidate must possess
Note: The term “residence” under Section 39(a) of
citizenship, unlike the requirements for residence
the LGC of 1991 is to be understood not in its
and age. Repatriation under PD 825 is valid and
common acceptation as referring to “dwelling” or
effective and retroacts to the date of the
“habitation”, but rather to “domicile” or “legal
application. (Frivaldo v. COMELEC, G.R. No.
residence” that is, the place where a party actually
or constructively has his permanent home, where he,
120295, June 28, 1996)
no matter where he may be found at any given time,
eventually intends to return and remain (animus Note: Filing of certificate of candidacy is sufficient to
manendi)( Coquilla v. COMELEC, G.R. No. 151914, renounce foreign citizenship. However the Court
July 31, 2002). ruling has been superseded by the enactment of R.A.
No. 9225 in 2003. R.A. No. 9225 Sec. 5 expressly

JEANELLE
M. MC.ASACAYAN
MARTINEZ
UST GOLDEN NOTES
Able to read2011
provides for the conditions before those who re‐
4. and write Filipino/ any
other local language or dialect acquired Filipino citizenship may run for a public
office in the Philippines. (Lopez v. COMELEC, G.R. No.
5. Age requirement: (Sec. 39, LGC) 182701, June 23, 2008)
Upon repatriation, a former natural‐born Filipino is

deemed to have recovered his original status as a
natural‐born citizen. (Bengzon III v. HRET, GR 142840
May 7, 2001)

MARIA
VILLAMOR.
Q: X was a natural‐born Filipino who went to the more of imprisonment, within 2 years
USA to work and subsequently became a after serving sentence
naturalized American citizen. However, prior to 2. Removed from office as a result of an
filing his Certificate of Candidacy for the Office administrative case
of Mayor of the Municipality of General 3. Convicted by final judgment for
violating the oath of allegiance of the
Macarthur, Eastern Samar, on 28 March 2007, he
Republic
applied for reacquisition of his Philippine 4. With dual citizenship
Citizenship. Such application was subsequently
granted. Y filed a petition to disqualify X on the Note: The phrase “dual citizenship” as a
ground of failure to comply with the 1‐year disqualification in R.A. No. 7160, §40(d) and in R.A.
residency requirement. Y argues that No. 7854, §20 must be understood as referring to
reacquisition of Philippine citizenship, by itself, “dual allegiance.” (Mercado v. Manzano, G.R. No.
does not automatically result in making X a 135083, May 26,1999)
resident of the locality. Is Y correct?
5. Fugitives from justice in criminal or non‐
A: Yes. X’s reacquisition of his Philippine political cases here or abroad
citizenship under R.A. No. 9225 had no automatic
Note: Fugitives from justice in criminal and non‐
impact or effect on his residence/domicile. He
criminal cases here and abroad include not only
could still retain his domicile in the USA, and he
those who flee after conviction to avoid punishment,
did not necessarily regain his domicile in the but likewise those who after being charged, flee to
Municipality of General Macarthur, Eastern avoid prosecution (Marquez v. COMELEC, G.R. No.
Samar, Philippines. X merely had the option to 112889, April 18, 1995; Rodriguez v. COMELEC, GR
again establish his domicile in the Municipality of 120099 July 24, 1996)
General Macarthur, Eastern Samar, Philippines,
said place to have become his new domicile of 6. Permanent residents in a foreign
choice. The length of his residence therein shall country or those who have acquired the
be determined from the time he made it his right to reside abroad and continue to
domicile of choice, and it shall not retroact to the avail of the same right after the
effectively of this LGC;
time of his birth. It is the fact of residence that is
7. Insane or feeble‐minded (Sec. 40, LGC)
the decisive factor in determining whether or not
8. Other grounds for disqualification:
an individual has satisfied the residency a. Vote buying (upon determination
qualification requirement. in a summary administrative
proceeding) (Nolasco v COMELEC,
However, even if Y’s argument is correct, this GR Nos. 122250 & 122258 July 21,
1997)
does not mean that X should be automatically
b. Removal by administrative
disqualified as well, since there is proof that aside proceedings (perpetual
from reacquisition of his Philippine Citizenship, disqualification) (Lingating v
there are other subsequent acts executed by X COMELEC, G.R. No. 153475, Nov.
which show his intent to make General Arthur, 13, 2002)
Eastern Samar his domicile, thus making him
qualified to run for Mayor. (Japzon v. COMELEC, Q: May an official removed from office as a
G.R. No. 180088, Jan.19, 2009) result of an administrative case, before the
effectivity of the LGC be disqualified under
Q: Who are persons disqualified from running Section 40 of said law?
for any elective local position?
A: No. Section 40 (b) of the LGC has no
A: retroactive effect and therefore, disqualifies only
1. Sentenced by final judgment for an those administratively removed from office after
offense involving moral turpitude or for January 1,1992 when LGC took effect (Greco v.
an offense punishable by 1 year or COMELEC, G.R. No. 125955, June 19, 1997). The
administrative case should have reached a final
LOCAL GOVERNMENTS
determination. (Lingating v. COMELEC, G.R. No. A:

153475, Nov. 13, 2002) TEMPORARY
PERMANENT VACANCY
VACANCY
Q: What is the significance of possession of a Arises when: elective Arises when an
“green card” by a candidate for an elective local official: elected official is
position? 1. Fills a higher vacant temporarily
office incapacitated to
A: Possession of a “green card” is ample evidence 2. Refuses to assume perform their duties
office
to show that the person is an immigrant to or a due to legal or
3. Fails to qualify
permanent resident of the U.S. Hence, 4. Dies physical reasons such
immigration to the US by virtue of a “Green card” 5. Removed from office as:
which entitles one to reside permanently in that 6. Voluntarily resigns 1. Physical sickness,
7. Permanently 2. Leave of absence,
country, constitutes abandonment of domicile in
incapacitated to 3. Travel abroad or
the Philippines. (Ugdoracion v. COMELEC, G.R. discharge the functions 4. Suspension from
No. 179851, April 18, 2008) of his office (Sec. 44, office. (Sec. 46,
LGC) LGC)
Q: Can a candidate receiving the next highest
vote be declared the winner after the candidate Q: What are the two ways of filling the vacancy?
receiving the majority of votes is declared
ineligible? A:
1. Automatic succession
A: 2. By appointment (Sec. 45, LGC)
GR: No. The ineligibility of a candidate
receiving the majority of votes does not Q: State the rules of succession in case of
entitle the eligible candidate receiving the permanent vacancies.
next highest number of votes to be declared
winner. A:
1. In case of permanent vacancy in:
a. Office of the governor: vice‐
XPN: The rule would be different if the
governor
electorate, fully aware of a candidate’s b. Office of the mayor: vice‐mayor
disqualification so as to bring such awareness c. Office of the governor, vice
within the realm of notoriety, would governor, mayor or vice‐mayor:
nonetheless cast the votes in favor of the highest ranking Sanggunian
ineligible candidate. In such case, the member or in case of his
permanent inability, the second
electorate may be said to have waived the
highest ranking Sanggunian
validity and efficacy of their votes by member – successor should have
notoriously applying their franchises or come from the same political
throwing away their votes in which case, the party.
eligible candidate obtaining the next highest d. Office of the punong barangay: the
number of votes may be deemed elected. highest ranking sangguniang
(Labo v. COMELEC, G.R. No. 105111, July 3, barangay member – successor may
or may not have come from the
1992)
same political party.
Note: For purposes of succession, ranking

3.b. Vacancies and Succession in the Sanggunian shall be determined on
the basis of the proportion of the votes
obtained by each winning candidate to the
Q: What are the two classes of vacancies in the total number of registered voters in each
elective post? district in the preceding election.

JEANELLE
M. MC.ASACAYAN
MARTINEZ
In case of tie between and among the A:
highest ranking Sangguniang members,
1. In case of temporary vacancy of the
resolved by drawing lots (Section 44, LGC). post of the local executive (leave of
The general rule is that the successor (by absence, travel abroad, suspension):
appointment) should come from the same vice‐ governor, vice mayor, highest
political party as the Sangunian member ranking sangguniang barangay shall
whose position has become vacant. The automatically exercise the powers and
exception would be in the case of vacancy perform the functions of the local Chief
in the Sangguniang barangay. Executive concerned.
GR: He cannot exercise the power to

2. In case automatic succession is not
appoint, suspend or dismiss employees
applicable and there is vacancy in the
membership of the sanggunian:
XPN: If the period of temporary
incapacity exceeds 30 working days.
a. The President thru the Executive
Secretary shall appoint the political 2. If travelling within the country, outside
nominee of the local executive for his jurisdiction, for a period not
the sangguniang exceeding 3 days: he may designate in
panlalawigan/panlungsod of highly writing the officer‐in‐charge. The OIC
urbanized cities/independent cannot exercise the power to appoint,
component cities suspend or dismiss employee.
b. The Governor, shall appoint the
political nominees for the 3. If without said authorization, the vice‐
sanggunian panlungsod of governor, vice‐mayor or the highest
component cities/bayan concerned ranking sangguniang barangay member
c. The city/municipal mayor shall shall assume the powers on the 4 th day
appoint the recommendee of the of absence. (Sec. 46, LGC)
sangguniang barangay concerned.
Q: How is temporary incapacity terminated?
Note: The “last vacancy” in the
Sanggunian refers to that created by the
A:
elevation of the member formerly
occupying the next higher in rank which in 1. It shall terminate upon submission to
the appropriate sanggunian of a written
turn also had become vacant by any of the
declaration by the local chief executive
causes already enumerated. The term
concerned that he has reported back to
“last vacancy” is thus used in Section 45(b) office – If the temporary incapacity was
to differentiate it from the other vacancy due to:
previously created. The term by no means a. Leave of absence
refers to the vacancy in the No.8 position b. Travel abroad
which occurred with the elevation of 8th c. Suspension.
placer to the seventh position in the 2. If the temporary incapacity was due to
Sanggunian. Such construction will result legal reasons, the local chief executive
in absurdity. (Navarro v. CA, G.R. No. should also submit necessary
141307, Mar. 28, 2001) documents showing that the legal cause
no longer exist. (Sec. 46[b], LGC)
In case of vacancy in the representation of
Q: May the local chief executive authorize any
the youth and the barangay in the
Sanggunian, vacancies shall be filled
local official to assume the powers, duties and
automatically with the official next in rank functions of the office other than the vice‐
of the organization concerned. governor, city or municipal vice‐mayor, or
highest ranking sangguniang barangay member
Q: State the rules in case of temporary vacancies as the case maybe?
in local positions.
A:
GR: No.
Note: An elective local official may be removed from
XPN: If travelling within the country, outside office on the ground enumerated above by order of
his jurisdiction. (Sec. 46[c], LGC) the proper court only. The Office of the President is
without any power to remove elected officials, since
Note: A vice‐governor who is concurrently an such power is exclusively vested in the proper courts
acting governor is actually a quasi‐governor. as expressly provided for in the last paragraph of
For the purpose of exercising his legislative Section 60, LGC. (Salalima v. Guingona, G.R. No.
prerogatives and powers, he is deemed a non‐ 117589, May 22, 1996)
member of the sangguninang panlalawigan for
the time being. (Gamboa v. Aguirre, G.R. No. Q: What is removal?
134213, July 20, 1999)
A: Removal imports the forcible separation of the
incumbent before the expiration of his term and
3.c. Disciplinary Actions can be done only for cause as provided by law.
(Dario v. Mison, G.R. No. 81954, August 8, 1989)
Q: What are the grounds for disciplinary actions? Note: The removal not for a just cause or non‐
compliance with the prescribed procedure
constitutes reversible error and this entitles the
A: An elective local official may be disciplined,
officer or employee to reinstatement with back
suspended or removed from office on any of the
salaries and without loss of seniority rights. Basis
following grounds:
Q: Does the Sangguniang Panglungsod and

1. Disloyalty to the Republic of the
Sangguniang Bayan have the power to remove
Philippines
elective officials?
Note: An administrative, not criminal, case
for disloyalty to the Republic only requires A: No. The pertinent legal provisions and cases
substantial evidence (Aguinaldo v. Santos, decided by this Court firmly establish that the
G.R. No. 94115, August 21, 1992) Sanggunaing Bayan is not empowered to do so.
Section 60 of the Local Government Code
2. Culpable violation of the Constitution conferred upon the courts the power to remove
3. Dishonesty, oppression, misconduct in elective local officials from office. (The
office, gross negligence, dereliction of Sangguniang Barangay of Don Mariano Marcos
duty
vs. Martinez, G.R. No. 170626, March 3, 2008)
4. Commission of nay offense involving
moral turpitude or an offense
punishable by at least prision mayor Q: Who may file an administrative action?
5. Abuse of authority
6. GR: Unauthorized absence for 15 A:
consecutive working days,
XPN: in the case of members of the 1. Any private individual or any

Sangguniang: government officer or employee by
a. Panlalawigan filling a sworn written complaint
b. Panglunsod (verified);
c. Bayan 2. Office of the President or any
d. Barangay government agency duly authorized by
law to ensure that LGUs act within their
prescribed powers and functions.
7. Application for or acquisition of foreign
(ADMINISTRATIVE ORDER NO. 23, Rule
citizenship or residence or the status of
3 Sec. 1, December 17, 1992)
an immigrant of another country;
8. Such other grounds as may be provided
by the Code/other laws. (Sec. 60, LGC) Q: Where should an administrative complaint be
filed?
LOCAL GOVERNMENTS
A: A verified complaint shall be filed with the records and other evidence. (Sec. 63[b],
following: LGC)
1. Office of the President – against elective
official of provinces, HUC, ICC, Q: Who can impose preventive suspension?
component cities.
2. Sangguniang Panlalawigan – elective A:
officials of municipalities; and Authority to
3. Sangguniang Panglunsod or Bayan – impose
elective barangay officials. (Sec. 61,
suspension Respondent Local Official
LGC)
belongs to
Note: A re‐elected local official may not be held the
administratively accountable for misconduct Elective official of a province,
committed during his prior term of office. There is no President highly urbanized or independent
distinction as to the precise timing or period component city
when the misconduct was committed, reckoned Elective official of a component city
Governor
from the date of the official’s re‐election, except that of municipality
it must be prior to said date. (Garcia v. Mojica, G.R. Elective official of a barangay. (Sec
Mayor
No. 139043, Sept. 10, 1999) 63[a], LGC)
Q: When is subsequent re‐election considered a Q: State the rule on preventive suspension.

condonation?
A:
A: When proceeding is abated due to elections 1. A single preventive suspension shall not
and there is no final determination of misconduct extend beyond 60 days;
2. In the event that there are several
yet. (Malinao v Reyes, GR 117618 Mar.29, 1996)
administrative cases filed, the elective
official cannot be preventively
Note: Subsequent re‐election cannot be deemed a suspended for more than 90 days
condonation if there was already a final within a single year on the same ground
determination of his guilt before the re‐election. or grounds existing and known at the
(Reyes v. COMELEC, G.R. No. 120905 March 7, 1996) time of his first suspension. (Sec. 63[b],
LGC)
The rule that public official cannot be removed for
administrative misconduct committed during a prior
Q: State the rules on administrative appeals.
term, since his re‐election to office operates as a
condonation of the officer’s previous misconduct to
A: Decisions in administrative cases may, within
the extent of cutting off the right to remove him
30 days from receipt thereof, be appealed to the
therefore, has no application to pending criminal
following:
cases against petitioner for the acts he may have
committed during a failed coup. (Aguinaldo v.
Santos, G.R. No. 94115, Aug. 21, 1992) 1. The Sangguniang panlalawigan, in case
of decisions of the sangguniang
panlungsod of component cities and the
Q: When should preventive suspension be
sangguniang bayan; and
imposed? 2. The Office of the President, in the case
of decisions of the sangguniang
A: panlalawigan and the sangguniang
1. After the issues are joined; panlungsod of highly urbanized cities
2. When the evidence of guilt is strong; and independent component cities.
3. Given the gravity of the offense, there is (Sec. 67, LGC)
great probability that the continuance
in office of the respondent could Note: Decisions of the President shall be final and
influence the witnesses or pose a threat executory.
to the safety and integrity of the
ACADEMICS CHAIR: LESTER JAY ALAN E. FLORES II

MENDOZA
UNIVERSITY OFSANTOTOMA
F a c u lt a d d e D e r e c ho
S
209
JEANELLE
M. MC.ASACAYAN
MARTINEZ
Q: When is resignation of a public elective Q: Does the LGC withdraw the power of the
official effective? Ombudsman under R.A. 6770 to conduct
administrative investigation?
A: Resignation of elective officials shall be
deemed effective only upon acceptance by the A: No. Hence, the Ombudsman and the Office of
following authorities: the President have concurrent jurisdiction to
conduct administrative investigations over
1. The President, in case of governors, elective officials. (Hagad v. Gozo‐Dadole, G.R. No.
vice‐governors, and mayors and vice‐
108072, Dec.12, 1995)
mayors of highly urbanized cities and
independent and component cities
2. The Governor, in the case of municipal Q: Who may sign an order preventively
mayors and vice‐mayors, city mayors suspending officials?
and vice‐mayors of component cities
3. The Sanggunian concerned, in case of A: It is not only the Ombudsman, but also his
sangguninan members Deputy, who may sign an order preventively
4. The City or Municipal Mayor, in case of
suspending officials. Also, the length of the period
barangay officials. (Sec. 82, LGC)
of suspension within the limits provided by law
Q: What is the difference between the and the evaluation of the strength of the evidence
preventive suspension provided under R.A. 6770 both lie in the discretion of the Ombudsman. It is
and under LGC? immaterial that no evidence has been adduced to
prove that the official may influence possible
A: witnesses or may tamper with the public records.
PREVENTIVE PREVENTIVE It is sufficient that there exists such a possibility.
SUSPENSION UNDER RA SUSPENSION UNDER (Castilo‐Co v. Barbers, G.R. No. 129952 June 16,
6770 LGC 1998)
Requirements:
1. The evidence of guilt is
Q. What is the effect of an appeal on the
strong; and
Requirements: preventive suspension ordered by the
2. That any of the 1. There is reasonable Ombudsman?
following circumstances ground to believe
are present: that the respondent
A. An appeal shall not stop the decision from
a. The charge against has committed the
being executory. In case the penalty is suspension
the officer of act or acts
employee should complained of;
or removal and the respondent wins such appeal,
involve 2. The evidence of he shall be considered as having been under
dishonesty, culpability is strong; preventive suspension and shall be paid the salary
oppression or 3. The gravity of the and such other emoluments that he did not
grave misconduct offense so warrants; receive by reason of the suspension or removal. A
or neglect in the 4. The continuance in decision of the Office of the Ombudsman in
performance of office of the administrative cases shall be executed as a matter
duty; respondent could of course. (Office of the Ombudsman vs.
b. The charges influence the Samaniego, G.R. No. 175573, October 5, 2010)
should warrant witnesses or pose a
removal from threat to the safety
office; or and integrity of the 3.d. Recall
c. The respondent’s records and other
continued stay in evidence.
office would Q: What is recall?
prejudice the case
filed against him. A: It is a mode of removal of a public officer by
Maximum period: 60
the people before the end of his term. The
Maximum period: 6 days. (Hagad v. Gozo‐
months Dadole, G.R. No. people’s prerogative to remove a public officer is
108072 an incident of their sovereign power, even in the
Dec. 12, 1995) absence of constitutional restraint; the power is
UST GOLDEN NOTES
2011
implied in all governmental operations. (Garcia v. term of office for loss of confidence;
Comelec, G.R. No. 111511 October 5, 1993) and
Note: Expenses for the conduct of recall elections: 2. No recall shall take place within one
Annual General Appropriations Act has a year from the date of the official’s
contingency fund at the disposal of the COMELEC assumption to office or one year
(Sec. 75, LGC) immediately preceding a regular
election. (Sec. 74, LGC)
Q: What is the ground for recall? Is this subject
Q: Section 74 of the Local Government Code
to judicial inquiry?
provides that “no recall shall take place within
one year immediately preceding a regular local
A: The only ground for recall of local government
election.” What does the term “regular local
officials is loss of confidence. No, it is not subject
election,” as used in this section, mean?
to judicial inquiry, the Court ruled that ‘loss of
confidence’ as a ground for recall is a political
A: It refers to one where the position of the
question. (Evardone v. COMELEC, G.R. No. 94010
official sought to be recalled is to be actually
Dec. 2, 1991).
contested and filled by the electorate. (Paras v.
Comelec, G.R. No. 123169, Nov. 4, 1996)
Q: Upon whom and how may a recall be
initiated?
The one‐year time bar will not apply where the
local official sought to be recalled is a Mayor and
A:
the approaching election is a barangay election.
1. Who: any elective
(Angobung v. COMELEC, G.R. No. 126576, Mar. 5,
a. Provincial
1997)
b. City
c. Municipal
Q. State the initiation of the recall process.
d. Barangay official
A:
2. How: by a petition of a registered voter in the
1. Petition of a registered voter in the LGU
LGU concerned and supported by the registered
concerned, supported by percentage of
voters in the LGU concerned during the election
registered voters during the election in
in which the local official sought to be recalled which the local official sought to be
was elected. (Sec. 70 of R.A. 7160, as amended by recalled was elected.(% decreases as
R.A. 9244) population of people in area increases.
Also, the supporting voters must all sign
Note: By virtue of R.A. 9244, Secs. 70 and 71 of the the petition).
Local Government Code were amended, and the 2. Within 15 days after filing, COMELEC
must certify the sufficiency of the
Preparatory Recall Assembly has been eliminated as
required number of signatures. Failure
a mode of instituting recall of elective local
to obtain required number
government officials.
automatically nullifies petition.
3. Within 3 days of certification of
All pending petitions for recall initiated through the sufficiency, COMELEC provides official
Preparatory Recall Assembly shall be considered with copy of petition and causes its
dismissed upon the effectivity of RA 9244 (Approved publication for three weeks (once a
Feb. 19, 2004) week) in a national newspaper and a
local newspaper of general circulation.
Q: What are the limitations on recall? Petition must also be posted for 10 to
20 days at conspicuous places. Protest
should be filed at this point and ruled
A: with finality 15 days after filing.
1. Any elective local official may be subject 4. COMELEC verifies and authenticates the
of a recall election only once during his signature

MARIA
VILLAMOR.
5. COMELEC announces acceptance of Q: What is the term limit of Barangay officials?
candidates.
6. COMELEC sets election within 30 days
A: The term of office of barangay officials was
upon completion of previous section in
barangay/city/municipality proceedings fixed at three years under R.A. No. 9164 (19
and 45 days in the case of provincial March 2002). Further, Sec.43 (b) provides that
officials. Officials sought to be recalled "no local elective official shall serve for more than
are automatically candidates. (Sec 70, three (3) consecutive terms in the same position.
R.A. 7160) The Court interpreted this section referring to all
local elective officials without exclusions or
Q: May an elective local official sought to be
exceptions. (COMELEC v. Cruz, G.R. No. 186616,
recalled resign?
Nov. 19, 2009)
A: The elective local official sought to be recalled

shall not be allowed to resign while the recall
3.f. Appointive Officials
process is in progress. (Sec. 73, LGC)
Q: May a governor designate an acting assistant

Q. When does recall take effect?
treasurer?
A: Only upon the election and proclamation of a

A: No. Under the LGC and Revised Administrative
successor in the person of the candidate receiving
Code, provincial governor is not authorized to
the highest number of votes cast during the
appoint or even designate a person in cases of
election on recall. Should the official sought to be
temporary absence or disability. Power resides in
recalled receive the highest number of votes,
the President or Secretary of Finance. (Dimaandal
confidence in him is thereby affirmed, and he
v. COA G.R. No. 122197, June 26, 1998)
shall continue in office. (Sec. 72, LGC)
Q: May the mayor of Olongapo be appointed as

Q. Will it be proper for the COMELEC to act on a
SBMA chairman for the first year of operation?
petition for recall signed by just one person?
A: No. This violates constitutional prohibition

A: A petition for recall signed by just one person
against appointment or designation of elective
is in violation of the statutory 25% minimum
officials to other government posts. Appointive
requirement as to the number of signatures
officials may be allowed by law or primary
supporting any petition for recall. (Angobung v.
functions of his position to hold multiple offices.
COMELEC, G.R. No. 126576, March 5, 1997)
Elective officials are not so allowed, except as
otherwise recognized in the Constitution. The
provision also encroaches on the executive power
3.e. Term Limits
to appoint. (Flores v. Drilon, G.R. No. 104732,
June 22, 1993)
Q: What is the term of office of an elected local

Q: What is the role of CSC in appointing officials?
official?
A: CSC cannot appoint but can determine

A: Three (3) years starting from noon of June 30
qualification. In disapproving or approving
following the election or such date as may be
appointments, CSC only examines:
provided by law, except that of elective barangay
1. The conformity of the appointment
officials, for maximum of 3 consecutive terms in with applicable provisions of law;
same position (Section 43, LGC). 2. Whether or not appointee possesses
the minimum qualifications and none of
The term of office of Barangay and Sangguniang the disqualifications.(Debulgado v. CSC,
Kabataan elective officials, by virtue of R.A. No. G.R. No. 111471 Sept. 26, 1994)
9164, is three (3) years.
Q: What are the grounds for recall of A: No. Mayor is not allowed even if the wife is
appointment? qualified because of prohibition against nepotic
appointments. (Sec. 59, Book 5 of RAC) This
A: prohibition covers all appointments, original and
1. Non‐compliance with procedure or personnel actions (promotion, transfer,
criteria provided in the agency’s merit
reinstatement, re‐employment). (Debulgado v.
promotion plan;
CSC, G.R. No. 111471, Sept. 26, 1994)
2. Failure to pass through agency’s
selection/promotion board;
3. Violation of existing collective Note: The boyfriend of the daughter of the mayor
agreement between management and was appointed to a post. When his appointment was
employees relative to promotion; temporary, he became the son‐in‐law. Mayor then
4. Violation of other existing civil service recommended that his appointment become
law rules and regulations. (Maniebo v. permanent. This was considered nepotism and was
CA, G.R. No. 158708, August 10, 2010) disallowed (CSC v. Tinaya, GR 154898 Feb.16, 2005)
Q: Does the Governor have the authority to

terminate or cancel appointments of casual/ job 3.g. Provisions Applicable to Elective and Appointive Officials
order employees of the Sangguniang
Panlalawigan Members and Office of the Vice‐
Governor? Q: What are the prohibited business and
pecuniary interest?
A: No. While the Governor has the authority to
appoint officials and employees whose salaries A:
are paid out of the provincial funds, this does not 1. Engage in any business transaction with
extend to the officials and employees of the the local government unit in which he is
Sangguniang Panlalawigan because such authority an official or employee or over which he
is lodged with the Vice‐Governor. In the same has the power of supervision, or with
manner, the authority to appoint casual and job any of its unauthorized boards, officials,
order employees of the Sangguniang agents, or attorneys, whereby money is
Panlalawigan belongs to the Vice‐Governor. This to be paid, or property or any other
authority is anchored on the fact that the salaries thing of value is to be transferred
of these employees are derived from the directly or indirectly, out of the
appropriation specifically allotted for the said resources of the local government unit
local legislative body (Atienza v. Villarosa, G.R. to such person or firm.
No. 161081, May 10, 2005)
2. Hold such interests in any cockpit or
Q: Does the constitutional prohibition on other games licensed by a local
midnight appointments apply to LGUs? government unit;
A: No. The prohibition applies only to presidential 3. Purchase any real estate or other
appointments. They do not apply to LGUs, as long property forfeited in favor of such local
as the appointments meet all the requisites of a government unit for unpaid taxes or
valid appointment. Once an appointment has assessment, or by virtue of a legal
process at the instance of the said local
been made and accepted, the appointing
government unit.
authority cannot unilaterally revoke it. But the
CSC may do so if it decides that the requirements 4. Be a surety for any person contacting or
were not met. (De Rama v. CA, G.R. No. 131136 doing business with the local
Feb. 28, 2001) government unit for which a surety is
required; and
Q: May a mayor appoint his wife as head of
Office of General Services? 5. Possess or use any public property of
the local government unit for private
purposes. (Sec. 89 LGC)
Q: What are the elements of unlawful concerned do not derive monetary compensation
intervention and prohibited interests? therefrom. (Section 90[c], LGC)
A: Q: May a municipality adopt the work already

ELEMENTS OF performed in good faith by a private lawyer,
ELEMENTS OF
UNLAWFUL which work proved beneficial to it?
PROHIBITED INTEREST
INTERVENTION
1. Accused is a public
1. Public officer A: Although a municipality may not hire a private
officer
2. Accused has direct or lawyer to represent it in litigations, in the interest
2. He has direct or
indirect financial or of substantial justice, however, it was held, that a
indirect financial or
pecuniary interest in any municipality may adopt the work already
pecuniary interest in any
business, contract, or
business, contract, performed in good faith by such private lawyer,
transaction, Whether or
transaction which work is beneficial to it, provided that no
not prohibited by law
3. He intervenes or takes injustice is thereby headed on the adverse party
3. He is prohibited from
part in his official and provided further that no compensation in any
having such interest by
capacity in connection
the Constitution or law. guise is paid therefore by said municipality to the
with such interest
(Teves v. private lawyer. Unless so expressly adopted, the
(Teves v.
Sandiganbayan, G.R. No. private lawyer’s work cannot bind the
Sandiganbayan, G.R. No.
154182, Dec. 17, 2004)
154182, Dec. 17, 2004) municipality (Ramos v. CA, G.R. No. 99425, Mar.
3, 1997)
Q: Can local chief executives practice their
profession? Q: May a municipality be represented by a
private law firm which had volunteered its
A: No. All governors, city and municipal mayors services for free, in collaboration with the
are prohibited from practicing their profession or municipal attorney and the fiscal?
engaging in any occupation other than the
exercise of their functions as local chief A: Such representation will be violative of Section
executives.” (Sec. 90[a], LGC) 1983 of the old Administrative Code. Private
lawyers may not represent municipalities on their
Q: Can Sanggunian members practice their own. Neither may they do so even in
profession? collaboration with authorized government
lawyers. This is anchored on the principle that
A: Yes. Subject to certain limitations: only accountable public officers may act for and in
1. Cannot appear in civil case where the behalf of public entities and that public funds
local government unit, officer or agency should not be expended to hire private lawyers.
or instrumentality is the adverse party
(Ramos v. CA, G.R. No. 99425, Mar.3, 1997)
2. Cannot appear in criminal case wherein
an officer or employee is accused of an
offense committed in relation to his Note: The municipality’s authority to employ a
office private lawyer is expressly limited only to situations
3. Cannot collect fees for their appearance where the provincial fiscal is disqualified to
in administrative proceedings involving represent it. For the exception to apply, the fact that
local government unit of which he is an the provincial fiscal was disqualified to handle the
official municipality’s case must appear on record. The
4. Cannot use property and personnel of refusal of the provincial fiscal to represent the
the government except when the municipality is not a legal justification for employing
sanggunian member concerned is the services of private counsel. Instead of engaging
defending the interest of the
the services of special attorney, the municipal
government. (Sec. 90[b], LGC)
council should request the Secretary of Justice to
appoint an acting provincial fiscal in place of the
Note: Doctors of medicine may practice their
provincial fiscal who has declined to handle and
profession even during official hours of work only on
prosecute its case in court. (Pililla v. CA, G.R. No.
occasions of emergency: Provided, that the officials
105909, June 28, 1994)
Q: What are the instances when a private lawyer province in accordance with the provisions of R.A.
can represent an LGU? 7160. The same statute vests upon the Vice‐
Governor the power to be the presiding officer of
A: the Sangguniang Panlalawigan and sign all
1. When the municipality is an adverse warrants drawn on the provincial treasury for all
party in a case involving the provincial expenditures appropriated for the operation of
government or another municipality or the Sangguniang Panlalawigan. (Atienza v.
city within the province Villarosa G.R. 161081, May 10, 2005)
Q: May the punong‐barangay validly appoint or

2. Where original jurisdiction is vested with
the SC. remove the barangay treasurer, the barangay
secretary, and other appointive barangay
Q: What is the test in determining whether a officials without the concurrence of the majority
local government official can secure the services of all the members of the Sangguniang
of private counsel? Barangay?
A: In resolving whether a local government A: No. The LGC explicitly vests on the Punong
official may secure the services of private counsel barangay, upon approval by a majority of all the
in an action filed against him in his official members of the Sangguniang Barangay, the
capacity, the nature of the action and the relief power to appoint or replace the barangay
sought are to be considered. (Mancenido v. CA, treasurer, the barangay secretary, and other
G.R. No. 118605, Apr. 12, 2000) appointive barangay officials. Verily, the power of
appointment is to be exercised conjointly by the
Q: State the rule on prohibition against punong barangay and a majority of all the
appointment of elective officials to another members of the sangguniang barangay. Without
office. such conjoint action, neither appointment nor
A: replacement can be effectual. (Ramon Alquizoia,
1. No elective official shall be eligible for Sr. v. Gallardo Ocol, G.R. No. 132413, Aug. 27,
appointment or designation in any 1999)
capacity to any public office or position
during his tenure (Flores v. Drilon, G.R.
104732, June 22, 1993)
4. INTERGOVERNMENTAL RELATIONS
2. Except for losing candidates in barangay
elections, no candidate who lost in any Q: Discuss the inter‐local government relations.
election shall, within one year after such
election, be appointed to any office in A: The governor shall review all executive orders
the government or any GOCC or their promulgated by the component city or municipal
subsidiaries. (Sec.94, LGC) mayor within his jurisdiction within 3 days from
their issuance. So do with the city or municipal
Q: Who between the Governor and the Vice‐ mayor over the executive orders promulgated by
the punong barangay.
Governor is authorized to approve purchase
orders issued in connection with the If the executive orders concerned are not acted
procurement of supplies, materials, equipment, upon by the referred local executives, it shall be
including fuel, repairs, and maintenance of the deemed consistent with law and therefore valid.
Sangguniang Panlalawigan?
A: Vice‐Governor. Under R.A. 7160, local

legislative power for the province is exercised by
the Sangguniang Panlalawigan and the Vice‐
Governor is its presiding officer. Being vested
with legislative powers, the Sangguniang
Panlalawigan enacts ordinances, resolutions and
appropriates funds for the general welfare of the
NATIONAL ECONOMY AND PATRIMONY
M. NATIONAL ECONOMY AND PATRIMONY indigenous peoples. Its purpose is definitional

and not declarative of a right or title.
Q: What are the policies of the national
economy? The specification of what areas belong to the
ancestral domains is, to our mind, important to
A: ensure that no unnecessary encroachment
1. More equitable distribution of wealth on private properties outside the ancestral
2. Increased wealth for the benefit of the domains will result during the delineation
people process. The mere fact that Section 3(a) defines
3. Increased productivity ancestral domains to include the natural
resources found therein does not ipso
Q: What is meant by patrimony? facto convert the character of such natural
resources as private property of the indigenous
A: It refers not only to natural resources but also peoples. Similarly, Section 5 in relation to Section
to cultural heritage. (Manila Prince Hotel v. GSIS, 3(a) cannot be construed as a source of
G.R. No. 122156, Feb. 3, 1997) ownership rights of indigenous people over the
natural resources simply because it recognizes
ancestral domains as their “private but
a. REGALIAN DOCTRINE community property.”
Q: What is the Regalian Doctrine (jura regalia)? The phrase “private but community property” is
merely descriptive of the indigenous peoples’
A: It is the doctrine which reserves to the State concept of ownership as distinguished from that
the full ownership of all natural resources or provided in the Civil Code. In contrast, the
natural wealth that may be found in the bowels indigenous peoples’ concept of ownership
of the earth. (Albano, Political Law Reviewer) emphasizes the importance of communal or
group ownership. By virtue of the communal
Note: All lands of the public domain, waters, character of ownership, the property held in
minerals, coal, petroleum, and other mineral oils, all common “cannot be sold, disposed or destroyed”
forces of potential energy, fisheries, forests, or because it was meant to benefit the whole
timber, wildlife, flora and fauna, and natural indigenous community and not merely the
resources belong to the State. With the exception of individual member.
agricultural lands, all other natural resources shall
not be alienated. (Sec. 2, Art. XII, 1987 Constitution) That IPRA is not intended to bestow ownership
over natural resources to the indigenous peoples
Q: What is the exception to the provision of Sec. is also clear from the deliberations of the
2, Art. XII, 1987 Constitution? bicameral conference committee on Section 7
which recites the rights of indigenous peoples
A: Any land in the possession of an occupant and over their ancestral domains.
of his predecessors‐in‐interest since time
immemorial. (Oh Cho v. Director of Land, G.R. No. Further, Section 7 makes no mention of any right
48321, Aug. 31, 1946) of ownership of the indigenous peoples over the
natural resources. In fact, Section 7(a) merely
Q: Does R.A. 8371, otherwise known as “the recognizes the “right to claim ownership over
Indigenous People’s Rights Act” infringe upon lands, bodies of water traditionally and actually
the State’s ownership over the natural resources occupied by indigenous peoples, sacred places,
within the ancestral domains? traditional hunting and fishing grounds, and all
improvements made by them at any time within
A: No. Section 3(a) of R.A. 8371 merely defines the domains.” Neither does Section 7(b), which
the coverage of ancestral domains, and describes enumerates certain rights of the indigenous
the extent, limit and composition of ancestral peoples over the natural resources found within
domains by setting forth the standards and their ancestral domains, contain any recognition
guidelines in determining whether a particular of ownership vis‐à‐vis the natural
area is to be considered as part of and within the resources. (Separate Opinion, Kapunan, J., in Cruz
ancestral domains. In other words, Section 3(a) v. Secretary of Environment and Natural
serves only as a yardstick which points out what Resources, G.R. No. 135385, Dec. 6, 2000, En Banc
properties are within the ancestral domains. It [Per Curiam])
does not confer or recognize any right of
ownership over the natural resources to the

JEANELLE
M. MC.ASACAYAN
MARTINEZ
Q: What does the IPRA protect? 5. Utilization of natural resources in rivers,
lakes, bays, and lagoons may be allowed
A: What is evident is that the IPRA protects the on a “small scale” Filipino citizens or
indigenous peoples’ rights and welfare in relation cooperatives‐ with priority for
to the natural resources found within their subsistence fishermen and fishworkers
ancestral domains, including the preservation of (The bias here is for the protection of
the ecological balance therein and the need to the little people). (Bernas, The 1987
ensure that the indigenous peoples will not be Philippines Constitution: A Reviewer ‐
unduly displaced when the State‐approved Primer, 2006)
activities involving the natural resources located
therein are undertaken. (Ibid.) Q: What is the presumption in case of absence of
proof of private ownership?
Q: What is the consequence of the Regalian
Doctrine in Section 2, Art. XII, 1987 Constitution? A: The presumption is that the land belongs to
the State. Thus, where there is no showing that
A: Any person claiming ownership of a portion of the land had been classified as alienable before
a land of the public domain must be able to show the title was issued, any possession thereof, no
title from the State according to any of the matter how lengthy, cannot ripen into ownership.
recognized modes of acquisition of title. (Lee (Republic v. Sayo, G.R. No. L‐60413, October 31,
Hong Kok v. David, G.R. No. L‐30389, December 1990).
27, 1972 ).
And all lands not otherwise appearing to be
Q: What are the limits imposed by Section 2 that clearly within private ownership are presumed to
embodies the Jura Regalia of the State? belong to the State. (Seville v. National
Development Company, GR no. 129401, February
A: 2, 2001)
1. Only agricultural lands of the public
domain may be alienated. Q: Do the courts have jurisdiction over
classification of public lands?
2. The exploration, development, and
utilization of all natural resources shall A: In our jurisdiction, the task of administering
be under the full control and and disposing lands of the public domain belongs
supervision of the State either by to the Director of Lands and, ultimately, the
directly undertaking such exploration, Secretary of Environment and Natural Resources.
development, and utilization or through The classification of public lands is, thus, an
co‐production, joint venture, or exclusive prerogative of the Executive
production‐sharing agreements with Department through the Office of the President.
qualified persons or corporations. (Republic v. Register of Deeds of Quezon, G.R. No.
73974, 31 May 1995)
3. All agreements with the qualified
private sector may be for only a period Q: What is the Stewardship Doctrine?
not exceeding 25 years, renewable for
another 25 years. (The 25 year limit is A: Private property is supposed to be held by the
not applicable to “water rights for individual only as a trustee for the people in
irrigation, water supply, fisheries, or general, who are its real owners.
industrial uses other than the
development of water power,” for
which “beneficial use may be the b. NATIONALIST AND CITIZENSHIP
measure and the limit of the grant.”) REQUIREMENT PROVISIONS
4. The use and enjoyment of marine Q: What are the Filipinized activities as provided
wealth of the archipelagic waters, in Article XII of the Constitution?
territorial sea, and exclusive economic
zone shall be reserved for Filipino A:
citizens. (It would seem therefore that 1. Co‐production, joint venture or
corporations are excluded or at least production sharing agreement for
must be fully owned by Filipinos.) exploration, development and
utilization (EDU) of natural resources:
GR: Filipino citizens or entities with c. EXPLORATION, DEVELOPMENT AND
60% capitalization; UTILIZATION OF NATURAL RESOURCES
XPN: For large‐scale EDU of minerals, Q: What is the State policy regarding
petroleum and other mineral oils, the exploration, development and utilization of
President may enter into agreements Natural Resources?
with foreign‐owned corporations
involving technical or financial A: The exploration, development, and utilization
agreements. of natural resources shall be under the full control
and supervision of the State. The State may
Note: These agreements refer to service directly undertake such activities, or it may enter
contracts which involve foreign
into co‐production, joint venture, or production‐
management and operation provided that
sharing agreements with Filipino citizens, or
the Government shall retain that degree
corporations or associations at least 60 per
of control sufficient to direct and regulate
the affairs of individual enterprises and centum of whose capital is owned by such
restrain undesired activities. (La Bugal‐ citizens. (Sec. 2, Art XII, 1987 Constitution)
B’laan Tribal Assoc. v. DENR Secretary,G.R.
No. 127882, Dec. 1, 2004) Q: Section 2 speaks of “co‐production, joint
venture, or production sharing agreements” as
2. Use and enjoyment of nation’s marine modes of exploration, development, and
wealth within the territory: Exclusively utilization of inalienable lands. Does this
for Filipino citizens. effectively exclude the lease system?
3. Alienable lands of the public domain: A: Yes, with respect to mineral and forest lands
a. Only Filipino citizens may acquire (Agricultural lands may be subject of lease).
not more than 12 hectares by (Bernas, The 1987 Philippines Constitution: A
purchase, homestead or grant, or Reviewer ‐ Primer, 2006)
lease not more than 500 hectares.
b. Private corporations may lease not Q: Who are qualified to take part in the
more than 1000 hectares for 25 exploration, development and utilization of
years renewable for another 25 natural resources?
years;
A: Filipino citizens and corporations or
4. Certain areas of investment: reserved associations at least sixty percent (60%) of whose
for Filipino citizens or entities with 60% capital is owned by Filipino citizens.
owned by Filipinos, although Congress
may provide for higher percentage; Note: However, that as to marine wealth, only
In the Grant of rights, privileges and Filipino citizens are qualified. This is also true of
concessions covering the national natural resources in rivers, bays, lakes and
economy and patrimony, State shall lagoons, but with allowance for cooperatives.
give preference to qualified Filipinos; (Bernas, The 1987 Philippines Constitution: A
and Reviewer ‐ Primer, 2006)
5. Franchise, certificate or any other form Q: If natural resources, except agricultural land,
of authorization for the operation of a cannot be alienated, how may they be explored,
public utility; only to Filipino citizens or developed, or utilized?
entities with 60% owned by Filipinos;
A:
Note: Such franchise, etc., shall neither be 1. Direct undertaking of activities by the State or
exclusive, nor for a period longer than 50 2. Co‐production, joint venture, or production
years and subject to amendment, sharing agreements with the State and all
alteration or repeal by Congress; All “under the full control and supervision of the
executive and managing officers must be State. (Miners Association of the Philippines v.
Filipino citizens. Factoran, G.R. No. 98332, January 16, 1995)
Q: If the State enters into a service contract with

BULLET, a foreign owned corporation, is it valid?
A: Yes, but subject to the strict limitations in the A: Yes, Section 10, RA 776 reveals the clear intent
last two paragraphs of Section 2. Financial and of Congress to delegate the authority to regulate
technical agreements are a form of service the issuance of a license to operate domestic air
contract. Such service contacts may be entered transport services. (Philippine Airlines v. Civil
into only with respect to minerals, petroleum, Aeronautics Board, G.R. No. 119528, March 26,
and other mineral oils. The grant of such service 1997)
contracts is subject to several safeguards, among
them: Also, the Supreme Court acknowledged that there
1. That the service contract be crafted in is a trend towards delegating the legislative
accordance with a general law setting standard of power to authorize the operation of certain
uniform terms, conditions and requirements; public utilities to administrative agencies and
2. The President be the signatory for the dispensing with the requirement of a
government; and congressional franchise. However, in this case, it
3. The President report the executed agreement was held that in view of the clear requirement for
to Congress within thirty days. (La Bugal B’laan a legislative franchise under PD 576‐A, the
Tribal Association v. DENR, G.R. No. 127882, authorization of a certificate of public
December 1, 2004) convenience by the NTC for the petitioner to
operate television Channel 25 does not dispense
with the need for a franchise. (Associated
d. FRANCHISES, AUTHORITY AND CERTIFICATES Communications and Wireless Services ‐ United
FOR PUBLIC UTILITIES Broadcasting Networks v. National
Telecommunications Commission, GR No. 144109,
Q: Who are qualified to acquire a Franchise, February 17, 2003)
certificate or any other form of authorization for
the operation of a public utility? Q: What is a public utiliy?
A: Filipino citizens or corporations at least 60% of A: A public utility is a business or service engaged
whose capital is Filipino owned. (Art. XII, Section in regularly supplying the public with some
11, 1987 Constitution) commodity or service of public consequence,
such as electricity, gas, water, transportation,
Q: Does a public utility franchise have the telephone or telegraph service. To constitute a
characteristic of exclusivity? public utility, the facility must be necessary for
the maintenance of life and occupation of the
A: No, A franchise to operate a public utility is not residents. As the name indicates, “public utility”
an exclusive private property of the franchisee. implies public use and service to the public. (JG.
No franchisee can demand or acquire exclusivitly Summit Holdings v. Court of Appeals, G.R. No.
in the operation of a public utility. Thus, a 124293, September 24, 2003)
franchisee cannot complain of seizure or taking of
property because of the issuance of another
Q: Is a franchise required before one can own
franchise to a competitor. (Pilipino Telephone
the facilities to operate a public utility?
Corporation v. NRC, G.R. No. 138295, 2003)
A: A franchise is not required before one can own
Q: Is the power to grant licenses for or to
the facilities needed to operate a public utility so
authorize the operation of public utilities solely
long as it does not operate them to serve the
vested to congress?
public. (Tatad v. Garcia, G.R. No. 114222, April 6,
1995)
A: No, the law has granted certain administrative
agencies such power (See E.O. nos. 172& 202), Q: Is a shipyard a public utility?
Supreme Court said that Congress does not have
the exclusive power to issue such authorization. A: A shipyard is not a public utility. Its nature
Administrative bodies, e.g. LTFRB, ERB, etc., may dictates that it serves but a limited clientele
be empowered to do so., Franchises issued by whom it may choose to serve at its discretion. It
congress are not required before each and every has no legal obligation to render the services
public utility may operate. (Albano v. Reyes 175 sought by each and every client. (JG. Summit
SCRA 264) Holdings v. CA, G.R. No. 124293, September 24,
2003)
Q: Can the Congress validly delegate its
authority to issue franchises and licenses?
Q: Can the government amend a radio or 4. The State may take over or direct the
television franchise to grant free airtime to operation of any privately owned public
COMELEC? utility or business affected with public
interest. (Sec. 17, Article XII, 1987
A: Yes, all broadcasting, whether by radio or Constitution)
television stations, is licensed by the Government.
Radio and television companies do not own the Q: Who has the prerogative in the Classification
airwaves and frequencies; they are merely given of Public Lands?
temporary privilege of using them. A franchise is a
privilege subject to amendment, and the A: The prerogative of classifying public lands
provision of BP 881 granting free airtime to the pertains to administrative agencies which have
COMELEC is an amendment of the franchise of been specially tasked by statutes to do so and
radio and television stations. (TELEBAP v. the courts will not interfere on matters which
COMELEC, G.R. No. 132922, April 21, 1998) are addressed to the sound discretion of
government and/or quasi‐judicial agencies
Q: May a foreigner who owns substantial entrusted with the regulation of activities
stockholdings in a corporation engaged in the coming under their special technical knowledge
advertising industry sit as a treasurer of said and training. (Republic v. Mendoza, GR
corporation? no.153727. March 28, 2007)
A: No, because a treasurer is an executive or a

managing officer. Sec. 11 (2), Art. XVI provides
that the participation of the foreign investors in
the governing bodies of entities shall be limited to
their proportionate share in the capital thereof,
and all the managing and executive officers of
such entities must be citizens of the Philippines.
Q: What is the ownership requirement imposed

by the Constitution upon business entities
engaged in advertising?
A: 70% of their equity must be owned by Filipino

citizens. (Sec. 11 (2), Art. XVI, 1987 Constitution)

by the Constitution upon Mass Media?
A: It must be wholly owned by Filipino citizens.

(Sec. 11 (1), Art. XVI, 1987 Constitution)

by the Constitution upon educational
institutions.
A: 60% of their equity must be owned by Filipino

citizens. (Sec. 4 [2], Art. XIV, 1987 Constitution)
Q: What are the requisites for the State to

temporarily take over a business affected with
public interest?
A:
1. There is national emergency;
2. The public interest so requires;
3. During the emergency and under
reasonable terms prescribed by it;
e. Acquisition, Ownership and Transfer of Public and Private Lands
Q: When does land of the public domain
become private land?
A: When it is acquired from the government

either by purchase of by grant. (Oh Cho v.
Director of Lands, G.R. No. 48321, Aug. 31,
1946)
Q: What is the requirement for the

reclassification or conversion of lands of public
domain?
A: There must be a positive act of government;

mere issuance of title is not enough. (Sunbeam
Convenience Food v. CA, G.R. No. 50464, Jan. 29,
1990)
Q: Can public land be transformed into private

land thru prescription?
A: Yes, if it is alienable land. OCENCO for more

than 30 years must, however, be conclusively
established. This quantum of proof is necessary
to avoid erroneous validation of actually
fictitious claims or possession over the property
in dispute. (San Miguel Corporation v. CA, GR
No. 57667, May 28, 1990)
Q: What is the rule on private
lands? A:
GR: No private land shall be transferred or
conveyed except to individuals, corporations or
associations qualified to acquire or hold lands of
the public land.
XPNs: Philippines, there was no similar favorable
1. Foreigners who inherit through
intestate succession;
2. Former natural‐born citizen may be a
transferee of private lands subject to
limitations provided by law;
3. Ownership in condominium units;
4. Parity right agreement, under the 1935
Constitution.
Q: Can a natural born citizen of the Philippines

who has lost his Philippine citizenship be a
transferee of private lands?
A: Yes, subject to the limitations imposed by Law,

Thus, even if private respondents were already
Canadians when they applied for registration of
the properties in question, there could be no legal
impediment for the registration thereof,
considering that it is undisputed that they were
formerly natural‐born citizens. (Republic of the
Philippines v. CA, G.R. No. 108998, August 24,
1984)
Q: Can private corporations and associations

acquire public lands?
A: No. They are only allowed to lease public lands.

(Sec. 3, Art. XII)
Q: Does the constitutional policy of a “self‐

reliant and independent national economy” rule
out foreign competition?
A: No. It contemplates neither “economic

seclusion” nor “mendicancy in the international
community.”
Aside from envisioning a trade policy based on

“equality and reciprocity,” the fundamental law
encourages industries that are “competitive in
both domestic and foreign markets,” thereby
demonstrating a clear policy against a sheltered
domestic trade environment, but one in favor of
the gradual development of robust industries that
can compete with the best in the foreign markets.
(Tañada v. Angara, G.R. No. 118295, May 2,
1997)
Q: Has the concept of native title to natural

resources, like native title to land, been
recognized in the Philippines?
A: No. While native title to land or private

ownership by Filipinos of land by virtue of time
immemorial possession in the concept of an
owner was acknowledged and recognized as far
back during the Spanish colonization of the
treatment as regards natural held in Register of Deeds v. Ung Siu Si Temple
resources. The unique value of (G.R. No. L‐6776), land tenure is not indispensable
natural resources has been to the free exercise and enjoyment of religious
acknowledged by the State and is profession of worship. The religious corporation
the underlying reason for its can own private land only if it is at least 60%
consistent assertion of ownership owned by Filipino citizens.
and control over said natural
resources from the Spanish regime Q: Is a corporation sole qualified to purchase or
up to the present. (Noblejas, own lands in the Philippines?
Philippine Law on Natural
Resources, 1961 Revised Ed., p. 6) A: Yes. Sec. 113, BP Blg. 68 states that any
corporation sole may purchase and hold real
On the other hand, the United estate and personal property for its church,
States viewed natural resources as charitable, benevolent or educational purposes,
a source of wealth for its nationals. and may receive bequests or gifts for such
As the owner of natural resources
over the Philippines after the
latter’s cession from Spain, the
United States saw it fit to allow
both Filipino and American citizens
to explore and exploit minerals in
public lands, and to grant patents
to private mineral lands. x x x The
framers of the 1935 Constitution
found it necessary to maintain the
State’s ownership over natural
resources to insure their
conservation for future generations
of Filipinos, to prevent foreign
control of the country through
economic domination; and to avoid
situations whereby the Philippines
would become a source of
international conflicts, thereby
posing danger to its internal
security and independence.
The declaration of State ownership

and control over minerals and
other natural resources in the 1935
Constitution was reiterated in both
the 1973 and 1987 Constitutions.
(Separate Opinion, Kapunan, J., in
Cruz v. Secretary of Environment
and Natural Resources, G.R. No.
135385, Dec. 6, 2000, En Banc [Per
Curiam])
Q: Is a religious corporation
qualified to have lands in the
Philippines on which it may build
its church and make other
improvements provided these are
actually, directly, exclusively used
for religious purposes?
A: No. The mere fact that a

corporation is religious does not
entitle it to own public land. As
purposes. There is no doubt that a corporation Q: What does Section 14, Article XII of the
sole by the nature of its Incorporation is vested Constitution seek to achieve?
with the right to purchase and hold real estate
and personal property. It need not therefore be A: Section 14 reflects the desire not only to
treated as an ordinary private corporation develop a ready reservoir of Filipino
because whether or not it be so treated as such, professionals, scientists and skilled workers but
the Constitutional provision involved will, also to protect their welfare. (ibid.)
nevertheless, be not applicable. (Republic of the
Philippines v. IAC., G.R. No. 75042, Nov. 29, 1988)
g. ORGANIZATION AND REGULATION OF
Q: Is a religious corporation allowed to lease CORPORATIONS, PRIVATE AND PUBLIC
private land in the Philippines?
Q: May Congress provide for the organization
A: Yes. Under Sec. 1 of P.D. 471, corporations and and regulation of private corporations?
associations owned by aliens are allowed to lease
private lands up to 25 years, renewable for a A: The Congress shall not, except by general law,
period of 25 years upon the agreement of the provide for the formation, organization, or
lessor and the lessee. Hence, even if the religious regulation of private corporations. (Sec. 16, Art.
corporation is owned by aliens, it may still lease XII, 1987 Constitution)
private lands.
Q: What is the purpose of this provision?
Q: Are lands devoted to swine, poultry and
livestock raising included in the definition of A: Its purpose is to insulate Congress against
agricultural land? pressures from special interests. To permit the
law making body by special law to provide for the
A: No. (Luz Farms v. Secretary of Agrarian organization or formation or regulation of private
Reform, G.R. No. 86889, Dec. 4, 1990) corporations x x x would be in effect to offer to it
the temptation in many cases to favor certain
Q: Is fishpond considered within the definition of groups to the prejudice of others or to the
agricultural land? prejudice of the interests of the country. (Bernas,
The 1987 Constitution of the Philippines: A
A: Yes, according to the definition adopted by the Commentary)
Constitutional Commission.
Q: May Congress enact a law creating
Government‐Owned and Controlled
f. PRACTICE OF PROFESSION corporations?
A: Government‐owned and controlled

Q: What is the State policy with regard to corporations may be created or established by
professionals and skilled workers? special charters in the interest of the common
good and subject to the test of economic viability.
A: The sustained development of a reservoir of (Sec. 14, Art. XII, 1987 Constitution)
national talents consisting of Filipino scientists,
entrepreneurs, professionals, managers, high‐ Q: What does the phrase ‘in the interest of the
level technical manpower and skilled workers and public good and subject to the test of economic
craftsmen in all fields shall be promoted by the viability’ mean?
State. (Par. 1, Sec. 14, Art. XII, 1987 Constitution)
A: It means that government‐owned and
Q: Who may practice their profession in the controlled corporations must show capacity to
Philippines? function efficiently in business and that they
should not go into activities which the private
A: sector can do better. Moreover, economic
GR: The practice of all professions in the viability is more than financial viability but also
Philippines shall be limited to Filipino citizens. included capability to make profit and generate
benefits not quantifiable in financial terms.
XPN: In cases provided by law. (Par. 2, Sec. 14, (Bernas, The 1987 Constitution of the Philippines:
Art. XII, 1987 Constitution) A Commentary)
h. MONOPOLIES, RESTRAINT OF TRADE AND competition, among producers who will
UNFAIR COMPETITION manufacture it. (Energy Regulatory Board v. CA
G.R. No. 113079, April 20, 2001)
Q: What is the State policy regarding
monopolies? Q: Are monopolies prohibited by the
Constitution?
A: The State shall regulate or prohibit monopolies
when the public interest so requires. No A: Monopolies are not per se prohibited by the
combination in restraint of trade or unfair Constitution but may be permitted to exist to aid
competition shall be allowed. (Sec. 19, Art. XII, the government in carrying on an enterprise or to
1987 Constitution) aid in the interest of the public. However,
because monopolies are subject to abuses that
Q: What is meaning of the phrase “Unfair can inflict severe prejudice to the public, they are
Foreign Competition And Trade Practices”? subjected to a higher level of State regulation
than an ordinary business undertaking. (Agan, Jr.
A: The phrase is not to be understood in a limited v. PIATCO, G.R. No. 155001, May 5, 2003)
legal and technical sense but in the sense of
anything that is harmful to Philippine enterprises. Q: Are contracts requiring exclusivity void?
At the same time, however, the intention is not to
protect local inefficiency. Nor is the intention to A: Contracts requiring exclusivity are not per se
protect local industries from foreign competition void. Each contract must be viewed vis‐à‐vis all
at the expense of the consuming public. (Bernas, the circumstances surrounding such agreement in
The 1987 Philippines Constitution: A Reviewer ‐ deciding whether a restrictive practice should be
Primer, 2006) prohibited as imposing an unreasonable restraint
on competition. (Avon v. Luna, G.R. No. 153674,
Q: What is a monopoly? December 20, 2006)
A: A monopoly is a privilege or peculiar advantage Q: What is prohibited by Section 19?

vested in one or more persons or companies,
consisting in the exclusive right (or power) to A: Combinations in restraint of trade and unfair
carry on a particular business or trade, competition are prohibited by the Constitution.
manufacture a particular article, or control the (Sec. 19, Art. XII, 1987 Constitution)
sale of a particular commodity. (Agan, Jr. v.
PIATCO, G.R. No. 155001, May 5, 2003) Q: When is a monopoly considered in restraint
of trade and thus prohibited by the
Q: What is the rationale behind the provision? Constitution?
A: The provision is a statement of public policy on A: From the wordings of the Constitution, truly
monopolies and on combinations in restraint of then, what is brought about to lay the test on
trade. Section 19 is anti‐trust in history and spirit. whether a given an unlawful machination or
It espouses competition. Only competition which combination in restraint of trade is whether
is fair can release the creative forces of the under the particular circumstances of the case
market. Competition underlies the provision. The and the nature of the particular contract involved,
objective of anti‐trust law is ‘to assure a such contract is, or is not, against public policy.
competitive economy based upon the belief that (Avon v. Luna, G.R. No. 153674, December 20,
through competition producers will strive to 2006)
satisfy consumer wants at the lowest price with
the sacrifice of the fewest resources. Competition Q: Does the government have the power to
among producers allows consumers to bid for intervene whenever necessary for the
goods and services, and, thus matches their promotion of the general welfare?
desires with society’s opportunity costs.
Additionally, there is a reliance upon “the A: Yes, although the Constitution enshrines free
operation of the ‘market’ system (free enterprise) enterprise as a policy, it nevertheless reserves to
to decide what shall be produced, how resources the Government the power to intervene
shall be allocated in the production process, and whenever necessary for the promotion of the
to whom various products will be distributed. The general welfare, as reflected in Sections 6 and 19
market system relies on the consumer to decide of Article XII. (Association of Philippine Coconut
what and how much shall be produced, and on
Desiccators v. Philippine Coconut Authrotiy, G.R.
No. 110526, February 10, 1998)
Q: Does the WTO agreement violate Article II

Section 19 of the Constitution?
A: No, the WTO agreement does not violate

Article II Section 19, nor Sections 19 and 12 of
Article XII, because these sections should be read
and understood in relation to Sections 1 and 13 of
Article XII, which require the pursuit of trade
policy that “serves the general welfare and
utilizes all forms and arrangements of exchange
on the basis of equality and reciprocity.” (Tañada
v. Angara, G.R. No. 118295, May 2, 1997)
N. SOCIAL JUSTICE AND HUMAN RIGHTS 6. Women
7. Role and rights of people’s organization
Q: What are the goals of social justice under the 8. Human rights
Constitution?
Q: Are workers in the private sector entitled to
A: the right to strike?
1. Equitable diffusion of wealth and
political power for common good; A: Yes, but the same must be exercised in
2. Regulation of acquisition, ownership, accordance with the law. (Sec. 3, Art. XII, 1987
use and disposition of property and its Constitution)
increments; and
3. Creation of economic opportunities Q: What are the provisions of the Constitution
based on freedom of initiative and self‐ on women?
reliance. (Sec. 1 and 2, Art. XIII, 1987
Constitution) A:
1. The State shall equally protect the life
of the mother and the life of the unborn
a. CONCEPT from conception. (Sec. 12, Art II, 1987
Constitution)
Q: What is social justice?
2. The State recognizes the role of women
A: Social justice is “neither communism, nor in nation‐building, and shall ensure the
despotism, nor atomism, nor anarchy,” but the fundamental equality before the law of
humanization of laws and the equalization of women and men. (Sec. 14, Art. II, 1987
social and economic force by the State so that Constitution)
justice in its rational and objectively secular
conception may at least be approximated. Social 3. The State shall protect working women
justice means the promotion of the welfare of all by providing safe and healthful working
the people, the adoption by the Government of conditions, taking into account their
measures calculated to insure economic stability maternal functions, and such faculties
of all competent elements of society, through the and opportunities that will enhance
maintenance of a proper economic and social their welfare and enable them to realize
equilibrium in the interrelations of the members their full potential in the service of the
of the community, constitutionally, through the nation. (Sec. 14, Art. XIII, 1987
adoption of measures legally justifiable, or extra‐ Constitution)
constitutionally, through the exercise of powers
underlying the existence of all governments on Q: Is there a need for consultation before urban
the time‐honored principle of salus populi est and rural dwellers can be relocated?
suprema lex. (Calalang v. Williams, 70 Phil 726,
[1940]) A: Yes. The urban and rural dwellers and the
communities where they are to be relocated must
Social justice simply means the equalization of be consulted. Otherwise, there shall be no
economic, political, and social opportunities with resettlement. (Sec. 15 [2], Art. XIII)
special emphasis on the duty of the state to tilt
the balance of social forces by favoring the Q: What is meant by people’s organization?
disadvantaged in life. (Bernas, The 1987
Philippines Constitution: A Reviewer ‐ Primer, A: People’s Organizations are bona fide
2006) associations of citizens with demonstrated
capacity to promote the public interest and with
Q: What aspects of human life are covered by identifiable leadership, membership and
Art. XIII? structure. (Sec. 15 [2], Art. XIII)
A:
1. Social justice b. COMMISSION ON HUMAN RIGHTS
2. Labor
3. Agrarian and natural resources reform Q: What is the composition of the Commission
4. Urban land reform and housing on Human Rights?
5. Health
SOCIAL JUSTICE AND HUMAN RIGHTS
A:
1. Chairman
2. 4 Members
Q: What are the qualifications of members of

the CHR?
A:
1. Natural‐born citizens
2. Majority must be members of the Bar.
Q: Does the CHR have the power to investigate?
A: Yes. The CHR has the power to investigate all

forms of human rights violations involving civil
and political rights and monitor the compliance by
the government with international treaty
obligations on human rights. (Sec. 18, Art. XIII,
1987 Constitution)
Q: Does the CHR have the power to issue TRO?
A: No. It also has no power to cite for contempt

for violation of the restraining order or a writ of
preliminary injunction. (Simon v. CHR, G.R. No.
100150, Jan. 5, 1994)

JEANELLE
M. MC.ASACAYAN
MARTINEZ
O. EDUCATION, SCIENCE AND TECHNOLOGY, A: The State cannot require children to attend
ARTS, CULTURE, AND SPORTS only public schools before they reach a certain
age. The child is not a mere creature of the State.
Q: What are the principal characteristics of Those who nurture him and direct his destiny
education which the State must promote and have the right to recognize and prepare him.
protect? (Pierce v. Society of Sisters 268 US 510)
A: Q: What are the principal characteristics of

1. Quality education education which the State must promote and
2. Affordable education (Sec. 1, Art. XIV) protect?
3. Education that is relevant to the needs
of the people. (Sec. 2 [1], Art. XIV) A:
1. Quality education
Q: What is Parens Patriae with regards to 2. Affordable education (Sec. 1, Art. XIV)
education? 3. Education that is relevant to the needs
of the people. (Sec. 2 [1], Art. XIV)
A: The State has the authority and duty to step in
where parents fail to or are unable to cope with Q: What are the nationalized educational
their duties to their children. activities?
Q: What is the basis for the requirement that a A:

school or educational institution first obtain 1. Ownership:
government authorization before operating? a. Filipino Citizens or
b. Corporations or associations where
A: It is based on the State policy that educational at least 60% of the capital is owned
programs and/or operations shall be of good by Filipino citizens except those
quality and, therefore, shall at least satisfy established by religious groups and
minimum standards with respect to curricula, mission boards;
teaching staff, physical plant and facilities and
administrative and management viability. 2. Control and administration; and
(Philippine Merchant Marine School Inc. v. Court 3. Student population (Sec. 4 [2], Art. XIV)
of Appeals, G.R. No. 112844, June 2, 1995)
Note: The Congress may increase Filipino equity
Q: Can the State regulate the right of a citizen to participation in all educational institutions.
select a profession or course of study?
Q: What language shall be used as official
A: Yes, while it is true that the Court has upheld medium of communication and instruction?
the constitutional right of every citizen to select a
profession or course of study subject to fair, A: The official languages are Filipino and, until
reasonable and equitable admission and otherwise provided by law, English. The regional
academic requirements, the exercise of this right languages are the auxiliary official languages in
may be regulated pursuant to the police power of the regions and shall serve as auxiliary media of
the State to safeguard health, morals, peace, instruction therein. Spanish and Arabic shall be
education, order, safety and general welfare. promoted on a voluntary and optional basis. (Sec.
Thus, persons who desire to engage in the 7, Art. XIV, 1987 Constitution)
learned professions requiring scientific or
technical knowledge may be required to take an
examination as a prerequisite to engaging in their a. ACADEMIC FREEDOM
chosen careers. This regulation assumes
particular pertinence in the field of medicine, in Q: What are the aspects of Academic Freedom?
order to protect the public from the potentially
deadly effects of incompetence and ignorance. A: There are 3 views:
(PRC v. De Guzman, GR No. 144681, june 21,
2004) 1. From the standpoint of the educational
institution ‐ To provide that atmosphere
Q: Can the State require a citizen to attend only which is most conducive to speculation,
Public School? experimentation and creation;
EDUCATION, SCIENCE AND TECHNOLOGY, ART, CULTURE AND SPORTS
2. From the standpoint of the faculty – request for the approval of the penalty of
a. Freedom in research and in automatic expulsion imposed on Aguilar et al.
the publication of the results, and ruled that they be reinstated. Lowering the
subject to the adequate penalty from expulsion to exclusion.
performance of his other
academic duties Was DLSU within its rights in expelling the
students?
b. Freedom in the classroom in
discussing his subject less A: No. The penalty of expulsion imposed by DLSU
controversial matters which on private respondents is disproportionate to
bear no relation to the subject their deeds. It is true that schools have the power
to instil discipline in their students as subsumed in
c. Freedom from institutional their academic freedom and that “the
censorship or discipline, establishment of rules governing university‐
limited by his special position student relations particularly those pertaining to
in the community student discipline, may be regarded as vital, not
merely to the smooth and efficient operation of
3. From the standpoint of the student the institution but to its very survival”. This power
– right to enjoy in school the does not give them the untrammelled discretion
guarantee of the Bill of Rights. to impose a penalty which is not commensurate
(Non v. Dames, G.R. No. 89317, with the gravity of the misdeed. If the concept of
May 20, 1990) proportionality between the offense committed
and the sanction imposed is not followed, an
Q: What are the limitations? element of arbitrariness intrudes. (De La Salle
University, Inc.v. CA)
A:
1. Dominant police power of the State
2. Social Interest of the community
Q: What are the freedoms afforded to

educational institutions relating to its right to
determine for itself on academic grounds?
A:
1. Who may teach
2. What may be taught
3. How shall it be taught
4. Who may be admitted to study (Miriam
College Foundation v. CA, G.R. No.
127930, Dec. 15, 2000)
Q: James Yap et al., students of De La Salle

University (DLSU) and College of Saint Benilde
are members of the “Domingo Lux Fraternity”.
They lodged a complaint with the Discipline
Board of DLSU charging Alvin Aguilar et al. of
Tau Gamma Phi Fraternity with “direct assault”
because of their involvement in an offensive
action causing injuries to the complainants
which were result of a fraternity war.
The DLSU‐CSB Joint Discipline Board found

Aguilar et al. guilty and were meted the penalty
of automatic expulsion. On a petition for
certiorari filed with the RTC, it ordered DLSU to
allow them to enroll and complete their degree
courses until their graduation. The Commission
on Higher Education (CHED) disapproved DLSU’s

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LOCAL GOVERNMENTS

L. LOCAL GOVERNMENTS Note: Every LGU created or recognized under this

Q: Distinguish public corporation from private 1. Quasi‐public corporations – public

A: Q: What are the different types of municipal

By the state either by By Congress or by

Q: What are the essential elements of a

Note: The sangguniang panlalawigan may, in

Note: An inquiry into the legal existence of a de facto

Q: What are the essential requisites of a de facto

Q: What are the requisites or limitations a. Municipality – 50 sq. km (Sec.442

A: Same requirements as creation of LGU e. LOCAL GOVERNMENT CODE

Q: What are the requirements prescribed by law 1. PRINCIPLES OF LOCAL AUTONOMY

2.a. Police Power

A: Yes, provide it is nuisance per se. The

A: A: Offer must be in writing specifying:

190 POLITICAL LAW TEAM:

Q: Under the Constitution, what is the basis of

A: The ARMM has the legislative power to create

Q: Distinction between the power to tax by

Note: Unlike Sec. 5, Article X, Sec. 20, Article X of the

Q: The president, through AO 372, orders the

A: No, A basic feature of local fiscal autonomy is

Q: What are the fundamental principles

2. Local government funds and monies

3. Local revenue is generated only from

4. All monies officially received by a local

5. Trust funds in the local treasury shall

6. Every officer of the local government

7. Local governments shall formulate a

8. Local budget plans and goals shall, so

A: Q: Who determines the legality or propriety of a

2. Consultations with the presiding officers

2. In case of temporary closure: Q: May an incumbent Vice‐Governor, while

Note: Any city, municipality or barangay may, by

Q: What is the quorum in the sanggunian?

A: Q: What are the procedural steps or actions to

Q: What are the products of legislative action

198 POLITICAL LAW TEAM:

Note: Any proposition or ordinance approved

Note: Ordinances enacted by the sangguniang

2.f. Corporate Powers

Q: What are the corporate powers

Note: Only the Provincial Fiscal or the Municipal

3. To have and use a corporate seal

Note: Any new corporate seals or changes on

4. To acquire and convey real or personal

Q: Who is the proper officer to represent the city

A: The city legal officer is supposed to represent

ACADEMICS CHAIR: LESTER JAY ALAN E. FLORES II UNIVERSITY OFSANTOTOMA S 199

A: Where the suability of the state is conceded

Q: May LGU funds and properties be seized

A: No, The universal rule that where the State

Q: What is the exception to the above stated

A: The rule on the immunity of public funds from

Q: What are the requisites of a valid municipal

200 POLITICAL LAW TEAM:

Q: Who has the authority to negotiate and

A: The local chief executive may, upon authority