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0:00:00 - 00:06:00 -Gayo Maranan
Nature of LGUs:
4 Terms that we can interchange and they
will mean the same thing:
(1) Territorial and political subdivisions
(2) Municipal corporation proper
(3) Local governments
(4) Local government units
Territorial and political subdivisions, local
governments and local government units
are terms found in the Constitution itself.
The term municipal corporation proper is a
borrowed term from commentaries from
the United States.
But local governments are also (1) Public
corporations; (2) they are administrative
agencies and at the same time (3) they
are public offices because they perform
sovereign functions.
Form of government:
We do NOT have a federal set-up.
● Congress CANNOT by ordinary
legislation provide a shift to a
federal set-up.
The way we describe our bureaucracy is
one of a UNITARY form of government,
even if the term unitary is not found in the
constitution, by way of case law, the use
of local government units are referenced
to subdivisions and local autonomy being
granted to LGUs.
All support the accepted view that we are
a UNITARY FORM OF GOVERNMENT
compared to a federal form of government
wherein the states could lay claim against
the federal government which in our case,
our LGUs do NOT have the prerogative.
Therefore, under a unitary form of
government, all our local governments
form part of the state. Hence, referred to
as subdivisions of one unit — that would
be the STATE. Therefore our local
governments cannot be considered as
empires within an empire. There is only
one empire — the STATE.
Because under the unitary form of
government, our local governments are
not impenetrable, even the BARMM →
Even if they enjoy a higher degree of local
autonomy, they’re still under the
supervisory authority of the President.
They are also accountable to the states.
Right now under the Constitution, we have
5 levels/kinds of local government units:
1. Autonomous Regions - two are
identified under the Constitution,
only one has been incorporated
and approved under a plebiscite. In
the case of Cordillera Autonomous
Region, while we have two organic
acts already, there were two failed
plebiscites. Therefore, we do not
1
 have an incorporated Cordillera
Autonomous Region. Right now, we
have the Cordillera
ADMINISTRATIVE Region. This is
similar to Region 5 and NCR. Only
for administration purposes, not
autonomous nor is it a local
government unit
2. Provinces - within and outside the
autonomous region
3. Cities - 3 types of cities:
a. Highly-urbanized cities
Local governments exist in 2
- NOT under the
capacities:
supervision of the
1) Governmental or public capacity
province
2) Private or proprietary capacity
- deprived of the right
to vote for provincial
Reason for distinction: purposes of
officials
delegation.
b. Independent cities
(Note: Before there were 2 reasons. The
- NOT under the
reason that is NO LONGER APPLICABLE -
supervision of the
Matter on liability. Before, in the exercise
province
of the governmental public functions of
- deprived of the right
the LG, they are exempt from suit and
to vote for provincial
could not be held liable. Now that matter
officials
does not exist. **will be discussed after
c. Component cities
midterms)
- under the
supervision of the
a. Governmental or public powers,
province
eg. power to tax, police power,
- their voters are
power to legislate, issuance of
qualified to vote for
business permits, CANNOT be
provincial officials
delegated to the private sector.
4. Municipality - all except one
b. Private or proprietary powers, eg.
municipality is a component of a
waterworks, cemeteries, markets,
province because Pateros is not
which are proprietary in nature (for
under the supervision of a province
the special benefit of the
5. Barangay - components of
community)
municipalities and cities
i. LGUs can delegate or share
these to the private sector
00:06:01 - 00:12:00 - Paguio & Senador through a public-private
partnership.

LGUs are “double agents” due to their

dual capacities.
1) Agents of the State

2
 a) Exercise of governmental
powers
2) Agents of the People
a) Exercise of proprietary
powers
Distinction between land area and
territory.
1) Local governments can only
exercise their powers within their
territory (Intramural powers).
a) Subject to certain
exceptions, there are
extramural powers.
2) Local governments, particularly
cities and municipalities, have
jurisdiction over their municipal or
city waters.
a) 15 km from the shoreline.
3) For purposes of creation of an LGU,
what is important is not the
territory, which includes water, but
only the LAND AREA.
a) LGC uses the term “land
area”.
i) Delineated by law,
NOT jurisdiction.
Where are the powers of LGUs drawn
from?
1) Constitution
2) Their respective charters
3) 1991 LGC
4) Other laws
LGUs do not have inherent powers.
Because of local autonomy, they have
broad powers.
Qualified self-government.
Powers are not unbridled, not
absolute; limited by doctrine of
subordinate legislation.
- All policies, actions of LGs
must not be inconsistent
with the Constitution,
statutes, and their charters.
System of separation of powers under the
Constitution (Executive, Legislative,
Judiciary) at the national level does not
apply to LGUs.
a. It is entirely up to Congress, under
Sec 3. Art. 10 and Art. 6 of the
Constitution, to delineate what
powers may be exercised by
whom.
ART.10 SEC. 3. The Congress shall enact a
local government code which shall provide
for a more responsive and accountable local
government structure instituted through a
system of decentralization with effective
mechanisms of recall, initiative, and
referendum, allocate among the different
local government units their powers,
responsibilities, and resources, and provide
for the qualifications, election, appointment
and removal, term, salaries, powers and
functions and duties of local officials, and all
other matters relating to the organization
and operation of the local units.
b. Provinces, cities, municipalities:
there is a legislative system of
separation of powers.
c. Barangays: Punong barangay is
both the chief executive of the
barangay, and the presiding officer
of the Sangguniang Barangay.
(Note: Sir said this will be after
MT)
Up to Congress whether there will be a
separate system of separation of powers
or a fusion of powers.
00:12:01 - 00: 18:00 - Aquino & Palma Gil
3

TOPIC: CONTRACTS WITH LOCAL
GOVERNMENT UNITS
Local governments are public corporations
so the principle of corporate succession
applies to them
Q: WHAT IS CORPORATE SUCCESSION
A: It is the principle that states that a
corporation subsists even if there is a
conversion of the corporation (e.g.
contracts of the municipality will be
carried over to the city)
Q: HOW DOES THE PRINCIPLE OF
CORPORATE SUCCESS APPLY IN
LOCAL GOVERNMENT
A: Notwithstanding changes in the
leadership or administration of a local
government to the corporation will subsist
even if there is a conversion.
Q: CAN THE HEAD OF THE LOCAL
GOVERNMENT UNIT UNILATERALLY
RESCIND A CONTRACT ENTERED INTO
BY THE PREVIOUS ADMINISTRATION?
A: No, because the mayor only acts as a
representative or an agent of the local
government unit.
Q: WHO IS THE REAL PARTY TO THE
CONTRACT WITH THE LOCAL
GOVERNMENT?
A: The real party to the contract will be
the LGU itself. The mayor, governor, or
any head of the LGU will not be the party
to the contract.
Q: CAN THE LOCAL GOVERNMENT
UNIT IMPAIR THE CONTRACT?
A: Yes, but only if the impairment is a
valid exercise of police power. It must be
remembered that the only exception to
the non-impairment clause in the
constitution is a valid exercise of police
power.
TOPIC: NO CONTACT APPREHENSION
The validity of the no contact
apprehension joint venture is still pending
before the Supreme Court. The venture is
one between the LGUs and private sector
proponents. The fee-sharing scheme
between the two is of interest as the
ruling of the Supreme Court on the matter
will clarify the dilemma of whether or not
the private sector, on behalf of the LGU,
can perform governmental functions (e.i.
the collection of fees).
4
 A: No. Again, only the Congress and
Sangguniang Local Councils may create
LGUs.

Q: WHAT HAPPENS IF THE PRESIDENT

CREATES A LOCAL GOVERNMENT
UNIT?

A: If there is no quo warranto case

regarding the creation of the LGU and
judicial nullification of its creation is
absent, the LGU will be considered as a de
jure LGU. This is due to the curative
provision in the Local Government Code.

Q: WHAT REQUIREMENTS MUST A

MUNICIPALITY MEET FOR IT TO BE
CREATED VALIDLY?

A: All three requirements of land area,

income, and population must be met for
the creation of a municipality.

TOPIC: CREATION OF LOCAL Q: WHAT REQUIREMENTS MUST ALL

GOVERNMENT UNITS
Only the Congress and the Sangguinang
Local Councils, through validly delegated
authority, can create LGUs. As for the case
of barangays though, they can be created
by Congress, provinces, and cities.
Municipalities, under the Local
Government Code, cannot create
barangays.
The creation of an LGU is subject to the
criteria of population, land area, and
income. The creation, dissolution, and
substantial alteration of LGUs would
require the conduct of a plebiscite.
Q: DOES THE PRESIDENT OR A
GOVERNOR HAVE THE AUTHORITY TO
CREATE LOCAL GOVERNMENT UNITS?
OTHER LOCAL GOVERNMENT UNITS
MEET FOR IT TO BE CREATED
VALIDLY?
A: Other LGUs need only meet two of the
three requirements for their creation.
Q: CAN THE CRITERIA SET BY THE
LOCAL GOVERNMENT CODE FOR THE
CREATION OF LOCAL GOVERNMENT
UNITS BE ALTERED?
A: Yes. However, such may only be done
through a special law of Congress.
Congress has the plenary authority to
change the criteria through special law for
other LGUs.
Q: WHAT HAPPENS WHEN A LOCAL
GOVERNMENT UNIT IS CONVERTED?

5
A: When a municipality is converted into a
city, the city acquires a separate and
distinct personality from the municipality
(again, the principle of corporate
succession still applies). Under case law,
when a municipality is converted into a
city, such amounts to a substantial
alteration of boundaries.
Q: WHAT MUST HAPPEN WHEN THERE
IS A SUBSTANTIAL ALTERATION OF
BOUNDARIES?
A: As per the Constitution, a substantial
alteration of boundaries, as well as the
dissolution and creation of LGUs, would
require the conduct of a plebiscite. Failure
to provide for the boundaries of the LGU
will result in a fatal flaw in the creation of
the LGU.
Q: WOULD THE FAILURE TO IDENTIFY
THE SEAT OF THE LOCAL
GOVERNMENT UNIT BE FATAL TO ITS
CREATION?
A: No. A failure to provide the boundaries
is though.
Q: WHAT ARE THE REQUIREMENTS
FOR A PLEBISCITE TO BE VALIDLY
HELD?
A: These are plurality and economic
dislocation. For example, once upon a
time, there was once a law that provided
for the creation of Novaliches as a city
within Quezon City. Who voted for this
plebiscite? All the residents of Novaliches
as well as all the residents of Quezon City.
This is because of these twin
requirements. Plurality implies more
rather than less. Economic dislocation
implies that if Novaliches is removed from
the jurisdiction of Quezon City, then there
will be economic dislocation.
Q: HOW MANY PLEBISCITES ARE
REQUIRED WHEN A MUNICIPALITY IS
CONVERTED INTO A HIGHLY
URBANIZED CITY THEN LATER ON A
COMPONENT CITY?
A: There must be two plebiscites. The
same rule applies when the municipality is
converted into an Independent
Component City then later on a
component city. Basically, whenever there
is an upgrade or a downgrade, a plebiscite
must take place.
Q: WHAT HAPPENS IF THERE IS A
PENDING BOUNDARY DISPUTE?
A: No plebiscite could be held as long as
the boundary dispute exists. A boundary
dispute is a prejudicial question. In
boundary disputes, you give way to the
contemporaneous interpretation of the
courts (e.g. available evidence, available
data). In the case of Taguig and Makati,
nine barangays of Makati now belong to
Taguig so the question now is if the
barangays that are now part of Taguig,
does that mean that the properties of
Makati in those barangays now belong to
Taguig? Unfortunately, that issue was not
ruled upon by the Supreme Court.
6
TOPIC: NATURE OF LOCAL
GOVERNMENT UNITS
It is important to note that, among cities,
provinces, barangays, and autonomous
regions, BARMM enjoys a higher degree of
local autonomy which is political
autonomy. When there is an amendment
of the BARMM organic act, whether formal
or substantial, there must be a plebiscite.
The residents of BARMM enjoy a higher
degree of local autonomy such as
self-determination.
Q: DOES THE SAME REQUIREMENT OF
HOLDING PLEBISCITES EXIST FOR
OTHER LOCAL GOVERNMENT UNITS?
A: No. Charters for provinces, cities,
municipalities, and barangays may be
amended by Congress without need for
plebiscites.
00:18:01 - 00:24:00 - De Castro & Chanco
BARMM enjoys a higher degree of local
autonomy, which is political autonomy.
And because of this, every time there's an
amendment of the BARMM Organic Act,
whether it is formal or substantial, there
must be a plebiscite because the residents
of BARMM enjoy a higher degree of local
autonomy, such as self-determination.
This is not the case for provinces, cities,
municipalities, and barangays – their
charters can be amended by Congress and
there is no need for a plebiscite.
For barangays, they can be created by
Congress, provinces, and cities. However,
under the Local Government Code,
municipalities were not given the authority
to create barangays.
CAR is an administrative region, not an
autonomous region. MMDA is not a local
government unit. This classification is
important because CAR and MMDA are not
local government units, therefore they do
not enjoy local autonomy, they do not
have police power, and they do not have
the power to legislate. Both are under the
control of the President while the five local
government units are under the
supervision of the President.
The definition of local autonomy means
a more responsive and accountable local
government structure instituted through a
system of decentralization. This does not
make our local government units as states
or mini-states. Local governments are
subdivisions of one unit which is the
State.
7
There are two views on local autonomy:
the Centralist view (the cut-and-paste)
local governments can only exercise those
powers given to them, or those powers
which are implied or necessary from the
express powers.

While the Liberal view, aside from

exercising those express, implied,
necessary powers, a local government can
also exercise those powers which promote
the general welfare, for as long as no law
is violated.
There are two levels of decentralization:
deconcentration or administrative
decentralization, where powers of national
government agencies are transferred to
regional offices of these national agencies
like the Department of Health. It is
important for purposes of accessibility.
Those in the province need not go to
Metro Manila, they just have to go to the
region and get some support.

While for devolution or political

Provinces, cities, municipalities, and
barangays enjoy administrative autonomy
or decentralization of administration,
in terms of governmental powers,
regulatory powers, and delivery of basic
services.
decentralization, the recipients of the
devolved powers are not the regional
offices of these national government
agencies but the local government units.
Section 17 of the 1991 Local Government
Code, as well as other laws, provide for
these devolved powers.

BARMM enjoys a higher degree of local

autonomy, decentralization of power.
According to the Supreme Court, they are
free to chart their own destiny, although
they are still under the supervision of the
President. BARMM still remains to be a
subdivision of the State.

8
Devolution is power specific – what is not
devolved is withheld; what is not devolved
remains to be a power of the national
government agency or the government
owned and controlled corporation.
For example, the power to issue
franchises for cable TV operation is not a
devolved power. This power remains with
the National Telecommunications
Commission.
Congress, under its plenary authority, can
devolve and can even recall what they
have devolved. This is a political question.
Under the Mandanas-Garcia case, the
Supreme Court has commanded full
devolution pursuant to this Supreme Court
case.
00:24:01 - 00:30:00 - Escueta & Zarate
Devolution
Basic services, exercise of regulatory
powers, and together with these powers
would be a transfer of personnel and
transfer of assets.
However, if you look at other special laws
which are not the 1991 Local Government
Code, in these instances, some of these
devolved powers are not accompanied by
personnel, nor are they accompanied by
assets and money.
What is NOT devolved remains to be with
the national government agencies.
For example, the devolution of the power
to issue franchises for tricycles from the
LTFRB. However, what has not been
devolved would be the franchising of
public utility vehicles and public utility
buses and jeepneys.
Enforcement of the National Building Code
is now devolved to local government units.
Approval of subdivision plans of local
significance have been devolved, but of
national significance they remain to be
with the Housing Land Use Regulatory
Board. For cable TV franchises, this power
is not devolved to local government units.
Another term is to compare devolution
with delegation. Delegation are state
powers which are now delegated to local
government units. That would be the
power to tax, police power, the power to
expropriate, and even local legislation.
Local autonomy does not mean that our
local governments are independent.
9

Supervision vs Control
They are under the supervisory authority
of the Congressional control, the only
limitation like any other law would be the
Constitution. In the case of the Pork
Barrel, the PDAF, the systems under the
law, the prerogatives of our local
governments cannot be untruly interfered
with through this system.
Important principle would be the
principle of subsidiarity. Local
government units know best, they have
superior competence over local matters
like the photo bomber building because
there was no violation of the law there
and they were just following their
ordinance. For local issues, you follow the
local government unit because they are in
a better position. The only exception to
that would be if there is a law which says
otherwise.
Supervision is the power to oversee, the
power to monitor, to ensure that the
supervised is following the law. This power
will include the power to discipline, to
impose sanctions subject of course to due
process. This power will include the power
to declare illegal or ultra vires ordinances
and resolutions. discretionary matters
over factual matters.
For example, the Department of Justice
can declare a tax ordinance illegal but the
DOJ cannot declare a tax ordinance as
excessive or confiscatory because that is
discretionary in nature.
The one who has control would have the
power to change the decision which is
made by the one which is being
controlled.
The system of control: the President has
no, or the province has no control over a
component city, only supervision. The
Department of Justice is not applicable
when we talk about local government
units. Even if a local government unit acts
beyond its authority, the supervisor
cannot change the decision made by a
local government unit. What they can only
say is to declare it illegal.
10
If you look at the diagram, a province
cannot suspend a punong barangay,
because we must follow the hierarchy.

The President only exercises direct

supervision over autonomous regions,
provinces outside the autonomous
regions, over provinces within BARMM,
over cities and municipalities within
BARMM and over barangays.

It is very clear to know who is the direct

supervisor of local government units. Here
are some of the direct supervisors.
While in the case of Congress, Congress
can determine the structure of local
government units, what are
qualifications of local officials, because the
Constitution does not prescribe their
qualifications, the formula by which they
are selected because the Constitution
does not provide for that.
An example of this control authority of the
Congress would be the system of political
dynasty, which prohibits political dynasty
but is ONLY APPLICABLE to Sangguniang
the Kabataan officials.
Today, there's NO system, NO law which
bans a political dynasty for OTHER local
officials.

When there's a conflict between National

Congress also exercises control to
GOCC and GI versus local government
determine what are the criteria for the
units, the default rule would be to follow
creation of local government units.
the law. Regardless of the extent or the
breadth of the controversy.

Assuming the law is silent, then if a

particular issue cuts across several local
government units and therefore to avoid
fragmentation and under the principle of

11
integration and centralization, then
the National will prevail.
00: 30:01 - 00:36:00 - Manimtim & Gerona
But if the concern is purely local affairs
and it pertains to protecting the rights of
the constituents, then it is pursuant also
to the local autonomy. Then, the local
government will prevail. So again, you
follow the National Dimension Rule and
Local Dimension Rule, only if the law is
silent or there's no express provision of
the law as to who will prevail. In these
particular cases, the national government
prevailed:
Local government cannot ban the setting
up of Lotto outlets in a particular local
government unit because that will clip the
powers of the Philippine Charity
Sweepstakes Office. However, a local
government unit can regulate the
particular establishment of a local outlet in
terms of the business permits and in
terms of, let's say, following the National
Building Code. Local Governments do have
the authority to issue driver's licenses, to
issue franchises for cable TV operators
and for jeepneys and buses, because
these powers are not devolved to the local
government units.
When there's a conflict between the
Laguna Lake Development Authority and
the Lakeshore municipalities as to who
would have the authority to demolish fish
pens, according to the Supreme Court,
under the principle of integration, to avoid
fragmentation and National Dimension
rule. LLDA prevailed over local
government units.
In these particular cases, local
government units prevailed:
The DOJ cannot declare a tax ordinance as
excessive, while local government units do
not have the authority to issue franchises
for cable TV Operations. They have the
prerogative because they have authority
to enforce the National Building Code as
to regulating the towers, but not the
franchise.
The Department of Agrarian Reform
cannot issue a Memorandum Circular
which would require its prior clearance
before a local government can expropriate
agricultural land because there is no law
which requires that.
So at present, only the DOJ and the DBM
can review local ordinances, the DOJ for
tax ordinances and the DBM for
appropriations ordinances. DOJ and DBM
can declare illegal or ultra vires these
ordinances, but they cannot substitute the
decision made by the local government
12
union, nor can they say that this is
excessive or contrary to the general
welfare otherwise that will amount to
control.
So let me say this, this is the policy. Only
Congress can limit the powers of local
government units. The supervisor cannot
limit or curtail the discretion of local
government units absent a law otherwise,
this will amount to control. This will
violate local autonomy, this will amount to
law making and therefore, violate the rule
on undue delegation of legislative
authority.
OK, let me say that again. National
government, the President, let's say, or
even the Governor or the Provincial
Government cannot limit what is not
limited by law, otherwise that will violate
local autonomy, which would amount to
control, not just supervision. That will
amount to lawmaking, and again violate
the principle of undue delegation of
legislative authority.
So, example here, although this is not a
decided case, can the provincial
government of Cebu as well as the City
Government of Cebu, can they liberalize
the use of face masks? They can.
Can they lift the requirement of wearing
face masks when the national government
has not lifted it at that time, the wearing
of face masks? So there were two views,
then one of course the integration versus
subsidiarity, centralization versus
decentralization. There is a valid rule
versus there is no law which requires the
wearing of face masks. So these are the
two views regarding that particular
dispute.
00:36:00 - END - Arrojo & Cajigal
Other matters:
So this ends my lecture for purposes of
our midterms. So are there questions, I
mean just to [clarify]? If there's none,
when is our midterms, beadle? Second
week of midterms? Not this week. Not this
coming week, but next next week.
October 9th, Monday.
Midterm Tips:
By the way, every time we talk about local
government law or even admin law or
even election law, it's a matter of “can a
local government do this or they cannot.”
So can Congress do this or Congress
cannot? So can the President do this, or
the President cannot?
So most of my questions will be dos and
donts or can or cannot. So if you take a
position, then you have to justify your
position. Whether you say can or cannot.
Of course, you have to support your
conclusion.
Closing Remarks:
So if there are no questions, let's call it a
day. Good luck to all your exams. And I'll
see everyone three Fridays from now. I
will see everyone on October 20, 2023.
So ingat sa lahat, study well, and good
luck.
13
END

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