PUBLIC CORPORATION INTRODUCTION

1991& Under the 6BC? Constitution. declared polic%* The $tate shall ensure the autono#% of local o"ern#ents +Art& II. $ec& 8>,

Political Law branch of public law which deals with the or ani!ation and operations of the o"ern#ental or ans of the To hi hli ht this polic%. note. an entire Article +D, with $tate and defines the relations of the $tate with the inhabitants of fourteen sections is de"oted to ELocal 1o"ern#entsF& $ection +:, its territor%& thereof #andates* Con ress $GALL enact a local o"ern#ent code +a, to pro"ide a #ore responsi"e and accountable local o"ern#ent structure initiated throu h a s%ste# of DI'I$ION$ O( POLITICAL LA)* D0C0NTRALIHATION with effecti"e #echanis#s of recall. initiati"e and referendu#. +a, allocate a#on different local o"ern#ent +a, Constitutional Law branch of public law which units their powers. responsibilities and resources. +c, pro"ide for deals with the #aintenance of the proper balance Iualifications. elections appoint#ent and re#o"al. ter#. salaries. between authorit% as represented b% three inherent powers and function and duties of local officials and +d, other powers of the $tate and libert% as uaranteed b% #atters relatin to the or ani!ation and operation of local units& the Bill of Ri hts& +b, Ad#inistrati"e law branch of public law which fi-es Autono#% is either decentrali!ation of ad#inistration the or ani!ation of o"ern#ent. deter#ines +deconcentration, or decentrali!ation of power +de"olution,& co#petence of ad#inistrati"e authorities who e-ecute the law and indicates to the indi"idual Decentrali!ation of ad#inistration dele ation b% the central re#edies for "iolation of his ri hts& o"ern#ent of ad#inistrati"e powers to local subdi"isions in +c, Law on /unicipal Corporations order to broaden the base of o"ern#ental power #a9in such +d, Law of Public Officers local o"ern#ents E#ore responsi"e and accountableF and +e, 0lection Laws insurin their fullest de"elop#ent as self4reliant co##unities and +f, Public International Law effecti"e partners in the pursuit of national de"elop#ent and pro ressF +declared polic% of L1C,2 relie"es central o"ern#ent of the burden of #ana in local affairs. enablin it to concentrate 10N0RAL PRINCIPL0$ on national concerns2 the President e-ercises E eneral super"isionF o"er the# but onl% to ensure that local affairs are CORPORATION Defined* An artificial bein created b% operation of ad#inistered accordin to law +PresidentJs #andate to ensure law ha"in the ri ht of succession and powers. attributes and faithful e-ecution of the laws, but he has no control o"er their properties e-pressl% authori!ed b% law or incident to its acts +he cannot substitute their Kud #ent with his own,& e-istence& Decentrali!ation of power abdication of political power in fa"or of CLA$$I(ICATION O( CORPORATION$* local o"ern#ent units declared to be autono#ous2 the autono#ous o"ern#ent is free to chart its own destin% and +i, Public or ani!ed for the o"ern#ent of a shape its future with #ini#u# inter"ention fro# central portion of the $tate2 authorities2 a#ount to self4i##olation since the autono#ous +ii, Pri"ate for#ed for so#e pri"ate purpose. o"ern#ent beco#es accountable not to the central authorit% but benefit. ai# or end2 to its constituenc%& +iii, 3uasi4public pri"ate corporation that renders public ser"ice or supplies NOT0* Constitutional uarantee of Local Autono#% refers to public wants& AD/INI$TRATI'0 AUTONO/= of local o"ern#ent units +or decentrali!ation of o"ern#ent authorit%,& NOT0* Criterion to deter#ine whether a corporation is public The relationship of the corporation to the $ate. that is. if created b% the $tate as its own a enc% to help the $tate in carr%in out its Case* PRO'INC0 O( BATAN1A$ "s& ALB0RTO 1& RO/ULO. 1&R& No& o"ern#ental functions then it is public. otherwise. it is pri"ate& 6>8??;. >58?58AA;& CLA$$0$ O( PUBLIC CORPORATION$* +i, +ii, 3uasi4corporation created b% the $tate for a narrow5li#ited purpose +PC$O. etc&,2 /unicipal Corporations bod% politic and corporate constituted b% the incorporation of the inhabitants for the purpose of local o"ern#ent& (ACT$* Pro"ince of Batan as filed a petition for certiorari to declare unconstitutional and "oid certain pro"isos contained in the 1eneral Appropriations Acts +1AA, of 6BBB. 8AAA and 8AA6 ear#ar9in for said %ears fi"e billion pesos +P>.AAA.AAA.AAA&AA, of the Internal Re"enue Allot#ent +IRA, for the Local 1o"ern#ent $er"ice 0Iuali!ation (und +L1$0(, and i#posed conditions for the release thereof such as #odif%in the allocation sche#e for such allot#ent as prescribed under the Local 1o"ern#ent Code and securin appro"al for local proKects fro# the O"ersi ht Co##ittee on De"olution& RULIN1* In $ection 8>. Article II of the Constitution. the $tate has e-pressl% adopted as a polic% tha. EThe $tate shall ensure the autono#% of local o"ern#entsF& The $tate polic% on local autono#% is a#plified in $ection 8 thereof. EIt is hereb% declared the polic% of the $tate that the territorial and political subdi"isions of the $tate shall enKo% enuine and #eanin ful local autono#% to enable the# to attain their fullest de"elop#ent as self4reliant co##unities and #a9e the# #ore effecti"e partners in the attain#ent of national oals - - - & The assailed pro"isos in the 1AAs of 6BBB. 8AAA and 8AA6 and the OCD resolutions "iolate the constitutional precept on local autono#%& $ection @. Article D of the Constitution reads* $ec& @& Local o"ern#ent units shall ha"e a Kust share. as deter#ined b% law. in the national ta-es which shall be auto#aticall% released to the#& LAuto#aticL #eans Lin"oluntar% either wholl% or to a #aKor e-tent so that an% acti"it% of the will is lar el% ne li ible2 of a refle- nature2 without "olition2 #echanical2 li9e or su esti"e of an auto#aton& Bein Lauto#atic.L thus. connotes so#ethin #echanical. spontaneous and perfunctor%& As such. the L1Us are not reIuired to perfor# an% act to recei"e the LKust shareL accruin to the# fro# the national coffers& The LKust shareL of the L1Us is incorporated as the IRA in the appropriations law or 1AA enacted b% Con ress annuall%& The entire process in"ol"in the L1$0(Js distribution and release is constitutionall% i#per#issible& The L1$0( is part of the IRA or EKust shareF of the L1Us in the national ta-es& $ub#ittin its distribution and release to the "a aries of the i#ple#entin rules includin the uidelines and #echanis#s unilaterall% prescribed b% the O"ersi ht Co##ittee fro# ti#e to ti#e as sanctioned b% the challen ed laws and OCD resolutions. #a9es the release not auto#atic a fla rant "iolation of the constitutional and statutor% #andate that L1UsJ Kust share shall be auto#aticall% released to
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0L0/0NT$ O( /UNICIPAL CORPORATION$* 6& 8& :& ;& Le al creation or incorporation there #ust be a law creatin 5authori!in the creation or incorporation of a #unicipal corporation72 Corporate na#e na#e b% which the corporation is 9nown2 Inhabitants people residin in the territor% of the corporation2 Territor% land #ass where the inhabitants reside to ether with internal and e-ternal waters and air space abo"e the land and waters&

DUAL NATUR0 < (UNCTION$ O( /UNICIPAL CORPORATION$* 0"er% local o"ern#ent unit created5or ani!ed under the Local 1o"ern#ent Code is a BOD= POLITIC and CORPORAT0 endowed with powers to be e-ercised b% it in confor#it% with law& As such it shall e-ercise powers as a political subdi"ision of the National 1o"ern#ent and as a corporate entit% representin the inhabitants of the territor% +$ection 6>. RA?6@A,& Accordin l%. it has dual functions +i, public or o"ern#ental acts as an a ent of the $tate for the o"ern#ent of the territor% and the inhabitants2 and pri"ate or proprietar% acts as an a ent of the co##unit% in the ad#inistration of local affairs. as such. acts as a separate entit% for its own purposes and not as a subdi"ision of the $tate& BA$IC PRINCIPL0$ Sec. 1 Act shall be known as the Local Government Code of

+ii,

the#& /eanin of Ad#inistrati"e Re ions are #ere roupin of conti uous pro"inces for ad#inistrati"e purposes. not for political representation& The di"ision of the countr% into re ions is intended to facilitate not onl% the ad#inistration of local o"ern#ents which the law reIuires to ha"e re ional offices& Creation of ad#inistrati"e re ions for purpose of e-peditin the deli"er% of ser"ices is nothin new& The Inte rated Reor ani!ation plan of 6B?8. which was #ade part of the law of the land b% "irtue of Presidential Decree No& 6. established 66 re ions. later beca#e 68& )ith definite re ional centers and reIuired depart#ents and a encies of the 0-ecuti"e Branch of the National 1o"ern#ent to set up field offices therein +DTI 'II. DOL0 'II. DP)G Re ional Office,& The functions of the re ional offices is to be established pursuant the reor ani!ation plan are* +a, i#ple#ent laws. policies. plans. pro ra#s. rules and re ulation of the depart#ent or a enc% in the re ional area2 +8, pro"ide econo#ical. efficient and effecti"e ser"ices to the people in the area2 +:, to coordinate with re ional offices of other depart#ents. bureaus and a encies in the area2 and +:, perfor# such other functions as #a% be pro"ided b% law& /eanin of Autono#ous Re ions creation of autono#ous re ions in /usli# /indanao and the Cordilleras. which is uniIue to the 6BC? Constitution. conte#plates rant of political autono#% and not Kust ad#inistrati"e autono#% to those re ions& Thus. Art& D. $ection 6C of Constitution #andates for Con ress to enact an or anic act for the autono#ous re ions +with assistance and participation of consultati"e co##ission co#posed of representati"es appointed b% the President fro# list of no#inees of #ultisectoral bodies, to pro"ide for an autono#ous re ional o"ern#ent with a basic structure consistin of an e-ecuti"e depart#ent and a le islati"e asse#bl% and special courts with personal. fa#il% and propert% law Kurisdiction in each of the autono#ous re ions&

Decentrali!ation co#es in two for#s N deconcentration and de"olution& Deconcentration +ad#inistrati"e decentrali!ation, is ad#inistrati"e in nature2 it in"ol"es the transfer of functions or the dele ation of authorit% and responsibilit% fro# the national office to the re ional and local offices& De"olution. on the other hand. connotes political decentrali!ation. or the transfer of powers. responsibilities. and resources for the perfor#ance of certain functions fro# the central o"ern#ent to local o"ern#ent units& B% re ional autono#%. the fra#ers intended it to #ean L#eanin ful and authentic re ional autono#% +that is. a 9ind of local self4 o"ern#ent which allows the people of the re ion or area the power to deter#ine what is best for their rowth and de"elop#ent without undue interference or dictation fro# the central o"ern#ent,& To this end. $ection 6@. Article D li#its the power of the President o"er autono#ous re ions& In essence. the pro"ision also curtails the power of Con ress o"er autono#ous re ions& ConseIuentl%. Con ress will ha"e to re4e-a#ine national laws and #a9e sure that the% reflect the ConstitutionOs adherence to local autono#%& And in case of conflicts. the underl%in spirit which should uide its resolution is the ConstitutionOs desire for enuine local autono#%& 0&O& ;8@ officiall% de"ol"ed the powers and functions of the DP)G in AR// to the Autono#ous Re ional 1o"ern#ent +AR1,& /ore i#portantl%. Con ress itself throu h R&A& BA>; transferred and de"ol"ed the ad#inistrati"e and fiscal #ana e#ent of public wor9s and funds for public wor9s to the AR1& The ai# of the Constitution is to e-tend to the autono#ous peoples. the people of /usli# /indanao in this case. the ri ht to self4deter#ination N a ri ht to choose their own path of de"elop#ent2 the ri ht to deter#ine the political. cultural and econo#ic content of their de"elop#ent path within the fra#ewor9 of the so"erei nt% and territorial inte rit% of the Philippine Republic& $elf4deter#ination refers to the need for a political structure that will respect the autono#ous peoplesO uniIueness and rant the# sufficient roo# for self4e-pression and self4construction&

Case* DI$O/AN1COP "s& DP)G $0CR0TAR=. 1&R& No& 6;BC;C. 6658>58AA;& )ith R&A& CBBB. howe"er. this freedo# is ta9en awa%. and the National 1o"ern#ent ta9es control a ain& The hands. once #ore. (ACT$* Pursuant to $ec& 6>. Art& D of the Constitution +for the of the autono#ous peoples are reined in and tied up& The creation of autono#ous re ions in /usli# /indanao and the challen ed law creates an office with functions and powers which. Cordilleras,. RA @?:; +An Act Pro"idin for An Or anic Act for the b% "irtue of 0&O& ;8@. ha"e been pre"iousl% de"ol"ed to the Autono#ous Re ion in /usli# /indanao, was enacted& DP)G4AR//. (irst 0n ineerin District in Lanao del $ur& $ubseIuentl%. the four pro"inces of Lanao del $ur. /a uindanao. $ulu and Tawi4Tawi. "otin in fa"or of autono#%. beca#e the Section 2, LGC- eclaration of !olic" 4 L1U to enKo% enuine and Autono#ous Re ion in /usli# /indanao +pro"inces of Basilan. #eanin ful autono#% to enable the# to attain their fullest Cotabato. Da"ao del $ur. Lanao del Norte. Palawan. $outh de"elop#ent as self4reliant co##unities and #a9e the# effecti"e Cotabato. $ultan Mudarat. Ha#boan a del Norte. and Ha#boan a partners in attain#ent of national oals thru decentrali!ation& del $ur. and the cities of Cotabato. Dapitan. Dipolo . 1eneral National a encies and offices to conduct periodic consultations $antos. Ili an. /arawi. Pa adian. Puerto Princesa and Ha#boan a with appropriate l u. n o and po. before an% proect or pro ra# is said no in the plebiscite, +later "irtue of RABA>;. the pro"inces of i#ple#ented in their Kurisdiction& Basilan and /arawi Cit% Koined,& In accordance with RA@?:;. 0O;8@ was issued placin the control and super"ision of the The declaration of polic% as stated in $ection 8 of L1C reinforces offices of the DP)G within the autono#ous re ion in /usli# declared $tate polic% +Art& II. $ec& 8> of Constitution, ensurin /indanao under the Autono#ous Re ional 1o"ern#ent& autono#% to local o"ern#ent units& Petitioners Arsadi /& Diso#an cop and Ra#ir /& Di#alotan +Di#alotan ,. in their capacit% as Officer4in4Char e and District Case* LINA '$& PANO :@; $CRA ?@ 0n ineer50n ineer II. respecti"el%. of the 6st 0n ineerin District of DP)G4AR// in Lanao del $ur petitioned to nullif% Dept& Order (ACT$* Respondent Ton% Cal"ento was appointed P$CO a ent to 66B and RACBBB +creatin the /arawi $ub4District 0n ineerin install and operate a lotto ter#inal& /a%or of $an Pedro La una Office and "estin it with Kurisdiction o"er all national denied his application for a business per#it citin an ordinance infrastructure proKects and facilities under the DP)G within +Mapas%ahan Bl & >AC. taon 6BB>, passed b% the Pro"incial /arawi Cit% and Lanao del $ur& Petitioners contend that the Board of La una. obKectin 5opposin an% for# of a#blin challen ed #easures "iolate AR//Js constitutional autono#% includin lotto in La una& Cal"ento ar uin that MB>AC is considerin that the functions of the /arawi $ub4District curtail#ent of $tate power since in this case the national 0n ineerin Office ha"e alread% been de"ol"ed to the DP)G4 le islature itself alread% declared lotto as le al and per#itted its AR// 6st 0n ineerin District in Lanao del $ur& operation around the countr%. filed for declarator% relief before the RTC. to annul MB >AC and co#pel the the local #a%or to issue RULIN1* Petition 1RANT0D& DO66B is "iolati"e of the pro"isions of a business per#it for the operation of a lotto outlet& $uit decided 0O;8@ +issued pursuant to RA@?:;,& The 6BC? Constitution in Cal"entoJs fa"or& /R b% Respondent denied& Petition with $C& #andates re ional autono#% to i"e a bold and uneIui"ocal answer to the cr% for a #eanin ful. effecti"e and forceful RULIN1* 1a#e of lotto is a a#e of chance dul% authori!ed b% autono#%& Autono#%. as a national polic%. reco ni!es the the national o"ern#ent throu h an Act of Con ress +RA66@B,. as wholeness of the Philippine societ% in its ethnolin uistic. cultural a#ended b% BP;8. the law rantin a franchise to the PC$O and and e"en reli ious di"ersities& It stri"es to free Philippine societ% allows it to operate lotteries& This statute re#ains "alid toda%& of the strain and wasta e caused b% the assi#ilationist approach& )hile lotto is a a#e of chance. the national o"ern#ent dee#s Policies e#anatin fro# the le islature are in"ariabl% it wise and proper to per#it it& Gence. the Pro"incial Board of assi#ilationist in character despite channels bein open for La una. as a L1U. cannot issue a resolution or an ordinance that #inorit% representation& would see9 to prohibit per#its& )hat the national le islature allows b% law. such as lotto. a pro"incial board #a% not disallow A necessar% prereIuisite of autono#% is decentrali!ation& b% ordinance or resolution& Decentrali!ation is a decision b% the central o"ern#ent authori!in its subordinates. whether eo raphicall% or Ours is till a unitar% o"ern#ent. not a federal state& Bein so. functionall% defined. to e-ercise authorit% in certain areas& It an% for# of autono#% ranted to L1s will necessaril% be li#ited in"ol"es decision4#a9in b% subnational units& It is t%picall% a and confined within the e-tent allowed b% the central dele ated power. wherein a lar er o"ern#ent chooses to o"ern#ent& Besides. the principle of local autono#% under the dele ate certain authorit% to #ore local o"ern#ents& (ederalis# 6BC? Constitution si#pl% #eans decentrali!ation& It does not i#plies so#e #easure of decentrali!ation. but unitar% s%ste#s #a9e local o"ern#ents so"erei n within the state or an #a% also decentrali!e& Decentrali!ation differs intrinsicall% fro# Ei#periu# in i#perioF& federalis# in that the sub4units that ha"e been authori!ed to act +b% dele ation, do not possess an% clai# of ri ht a ainst the /unicipal o"ern#ents are onl% a ents of the national central o"ern#ent& o"ern#ent& Local councils e-ercise onl% dele ated le islati"e powers conferred upon the# b% Con ress as the national
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law#a9in bod%& The dele ate cannot be superior to the principal )hen is statute A/BI1IOU$Q If capable of bein understood b% or e-ercise powers hi her than those of the latter& It is heres% to reasonabl% well4infor#ed persons in either of two or #ore senses& su est that the L1Us can undo the acts and ne ate b% #ere ordinance the #andate of the statute& Power of Kudicial re"iew can be e-ercised b% courts to in"alidate constitutionall% infir# acts& 0r o. courts are not bound b% $ection 8+c, reIuirin consultations should be read to ether with le islati"e interpretation of their own acts& $ection 8@. 8?. L1C +prior consultation b% national a encies with l us in"ol"in proKects that #a% cause pollution. cli#atic chan e. De (acto /unicipal Corporations reIuisites* depletion of non4renewable resources. loss of crop land. ran e4 'alid law authori!in incorporation2 atte#pt in ood faith to land or forest co"er and e-tinction of ani#al or plant species,& or ani!e under it2 colorable co#pliance with law. assu#ption of Thus. $ection 8+c, does not appl% to lotto. the latter bein neither corporate powers& a pro ra# nor proKect of the national o"ern#ent. but of a charitable institution. the PC$O& Also. the ar u#ent is an afterthou ht. /a%or denied application for business per#it solel% /UNICIPAL CORPORATION$ on round of MB>AC& 0le#ents* +a, le al creation5incorporation there #ust be a law Section #, LGC $%erative !rinci%les of ecentrali&ation policies creatin 5authori!in creation or incorporation of a #unicipal and #easures on local autono#% to be uided b% these* corporation2 +b, corporate na#e4 na#e b% which the corporation shall be 9nown2 +c, inhabitants people residin in the territor% of +a, effecti"e allocation a#on the different L1Us of their the corporation2 and +d, territor% land #ass where inhabitants respecti"e powers. functions and responsibilities Pis pro"ided for reside to ether with internal and e-ternal waters and airspace b% L1C7. abo"e land and waters& +b, establish#ent in e"er% L1U of an accountable. efficient and d%na#ic or ani!ational structure and operatin #echanis# that will #eet priorit% needs and ser"ice reIuire#ents of its co##unities. Section , A*thorit" to Create LG- +created. di"ided. #er ed. abolished or borders substantiall% altered, either b% LA) enacted b% Con ress in the case of pro"ince. cit%. #unicipalit% or an% other political subdi"ision. or ORDINANC0 b% san unian panlalawi an5pan lun osd in the case of a baran a% located +c, local officials and e#plo%ees. subKect to ci"il ser"ice law. rules within its territorial Kurisdiction. subKect to li#itations prescribed and re ulation. to be appointed or re#o"ed. accordin to #erit in this Code& and fitness. b% the appropriate appointin authorit%. Section . Creation/Conversion of LG- enerall%. creation of +d, "estin of dut%. responsibilit% and accountabilit% in L1U$ shall L1U or its con"ersion fro# one le"el to another. subKect to be acco#panied with pro"ision for reasonabl% adeIuate "erifiable indicators of "iabilit% and proKected capacit% to pro"ide resources to dischar e their powers and effecti"el% carr% out their ser"ices* INCO/0. POPULATION and LAND AR0A. co#pliance with function the% shall ha"e the power to create and broaden their which to be attested to b% the Dept& of (inance. N$O and Land own sources of re"enue and the ri ht to a Kust share in the /ana e#ent Bureau of D0NR& national ta-es and an eIuitable share in proceeds of the utili!ation and de"elop#ent of the national wealth within their Inco#e #ust be sufficient. based on acceptable standards to respecti"e areas pro"ide all essential o"ern#ent facilities and ser"ices and special functions co##ensurate with the si!e of its populations. +e, pro"inces to co#ponent cities and #unicipalities2 cites and as e-pected of the L1U concerned& #unicipalities to co#ponent baran a%s to ensure that acts of co#ponent units are within scope of prescribe powers and Population total nu#ber of inhabitants within the territorial functions +super"isorial powers, Kurisdiction of the L1U concerned& +f, L1Us #a% roup the#sel"es. consolidate their efforts. ser"ices Land Area #ust be conti uous. unless it co#prises two +8, or and resources for purposes co##onl% beneficial to the# thus. #ore islands or is separated b% a L1U independent of the others //DA2 properl% identified b% #etes and bounds with technical descriptions and sufficient to pro"ide for such basic ser"ices and NOT0* Autono#% denotes Estate of independenceF +referred facilities to #eet the reIuire#ents of its populace& pre"iousl% to states, co##unit% autono#%. that is. local autono#%& In the L1C. local autono#% does not #ean total +R0AD 1RINO '$& CO/0L0C 86: $CRA @?8, independence of L1U$ fro# the central or national o"ern#ent& It onl% #eans decentrali!ation of powers fro# national to local Section 0 ivision/1er2er of e3istin2 LG-s to co#pl% with o"ern#ent& )hen e-ercisin o"ern#ental powers and sa#e reIuisites for creation under $ection ?& No reduction in perfor#in duties. a L1U is an a enc% of the national inco#e. population or land area2 no reduction in current inco#e o"ern#ent& classification& Section ', LGC Sco%e of A%%lication scope #eans areas of co"era e. that is. to pro"inces. cities. #unicipalities and baran a%s and other political subdi"isions as #a% be created b% law and to the e-tent herein pro"ided to officials. offices or a encies of the National 1o"ern#ent& Section (, LGC )*les of +nter%retation +a, pro"ision on power of L1 shall be liberall% interpreted in its fa"or2 in case of doubt. an% Iuestion shall be resol"ed in fa"or of de"olution of powers and of the lower L1U& An% fair and reasonable doubt as to e-istence of power. interpreted in fa"or of L1U concerned Section 9 Abolition L1U #a% be abolished when its inco#e. population or land aea has been irre"ersibl% reduced to less than the #ini#u# standards prescribed for its creation +as certified b% DO(. N$O and L/B,2 law5ordinance abolishin an L1U to specif% pro"ince. cit%. #unicipalit% or baran a% to which the L1U to be abolished will be incorporated or #er ed&

Section 14 !lebiscite re5*irement pre4condition to creation. abolition. #er er. di"ision or substantial alteration of boundaries of L1Us2 reIuires #aKorit% of the "otes cast in plebiscite called for the purpose in the political unit5s directl% affected2 plebiscite to be conducted b% CO/0L0C within 68A da%s fro# date of +b, doubt as to an% ta- ordinance or re"enue #easure. strictl% effecti"it% of law5ordinance effectin such action. unless said construed a ainst L1U. liberall% in fa"or of ta-pa%er +depri"ation law5ordinance fi-es another date& of propert%,& Ta- e-e#ption. incenti"e r relief ranted an% L1U. construed strictl% a ainst person clai#in it +loss of inco#e on Section 11- Seat of Government 4 considerations of part of L1U,& 10O1RAPGICAL C0NTRALIT=. ACC0$$IBILIT=. A'AILABILIT= O( TRAN$PORATION AND CO//UNICATION (ACILITI0$. DRAINA10 +c, liberal interpretation of eneral welfare pro"isions in order to AND $ANITATION D0'0LOP/0NT. 0CONO/IC PRO1R0$$ and i"e #ore power to L1U in acceleratin econo#ic de"elop#ent OTG0R R0L0'ANT CON$ID0RATION$2 transfer of seat when and up radin Iualit% of life for the people& conditions and de"elop#ent in L1U concerned has subseIuentl% chan ed si nificantl%. reIuires 85: "ote of #e#bers of Note* Basic precept in statutor% construction that le islati"e san unian. after public hearin 2 transfer site shall not be outside intent is the controllin factor in the interpretation of statute& the territorial boundaries of the L1U2 old site to ether with Power to declare what the law shall be is a le islati"e power. i#pro"e#ents thereon #a% be disposed of b% sale or lease or power to declare what the law is or has been is Kudicial& )hen law con"erted to such other use as the san unian concerned #a% is una#bi uous and uneIui"ocal. application and not dee# beneficial to the L1U and its inhabitants& interpretation thereof is I/P0RATI'0& )hen is statute A/BI1IOU$Q If capable of bein understood b% Section 12 Government Centers Pro"inces. cities and reasonabl% well4infor#ed persons in either of two or #ore senses& #unicipalities shall endea"or to establish a o"ern#ent center where offices. a encies or branches of the National 1o"ern#ent. Power of Kudicial re"iew can be e-ercised b% courts to in"alidate l u or o"ern#ent4owned or controlled corporations #a%. as far constitutionall% infir# acts& 0r o. courts are not bound b% as practicable. be located& In desi natin such a center. the l u le islati"e interpretation of their own acts& concerned shall ta9e into account the e-istin facilities of the national and local a encies and offices which #a% ser"e as the
3

o"ern#ent center as conte#plated under this $ection& The National 1o"ern#ent. the l u or occ shall bear the e-penses for the construction of its buildin s and facilities in the o"ern#ent center& Section 1# 6ame of LG- and !*blic !laces, Streets and Str*ct*res alwa%s in consultation with Philippine Gistorical Co##ission2 prohibition a ainst na#in after li"in persons. chan e of na#e not oftener than once e"er% 6A %ears unless for Kustifiable reason2 chan e reIuires prior plebiscite2 chan e of na#e in"ol"in a l u. public place. street or structure with historical. cultural or ethnic si nificance can be done onl% b% a UNANI/OU$ 'OT0 of the san unian concerned and in consultation with the PGC& Section 1' 7e2innin2 of Cor%orate 83istence )hen a new L1U is created. its corporate e-istence shall co##ence upon election and Iualification of its chief e-ecuti"e and #aKorit% of #e#bers of san unian&

or ani!ed under color of a statute before this was declared unconstitutional +b% Pelae! rulin ,. its officers ha"in been either elected or appointed. and the #unicipalit% itself ha"in dischar ed its corporate functions for the past fi"e %ears precedin the institution of this action& That as a de facto corporation. its e-istence cannot be collaterall% attac9ed. althou h it #a% be inIuired into directl% in an action for Iuo warranto at the instance of the $tate and not of an indi"idual li9e the petitioner Balindon & D0CI$ION* Petition ranted. 0-ecuti"e Order :C@ declared "oid& 1enerall%. the inIuir% into the le al e-istence of a #unicipalit% is reser"ed to the $tate in a proceedin for Iuo warranto or other direct proceedin . and that onl% in a few e-ceptions #a% a pri"ate person e-ercise this function of o"ern#ent& But the rule disallowin collateral attac9s applies onl% where the #unicipal corporation is at least a de facto corporation& (or where it is neither a corporation de Kure nor de facto. but a nullit%. the rule is that its e-istence #a% be Iuestioned collaterall% or directl% in an% action or proceedin b% an% one whose ri hts or interests are affected thereb%. includin the citi!ens of the territor% incorporated unless the% are estopped b% their conduct fro# doin so&

/0RIA "s& BALOLIN1 C6 PGIL ;C@ $ince a cit% is a public corporation or Kuridical entit%. and as such cannot operate or transact business b% itself but throu h a ents and officials. it is necessar% that officials thereof be appointed or elected in order A de facto #unicipal corporation is reco ni!ed as such despite that it #a% transact business as such public corporation or cit%& the fact that the statute creatin it was later in"alidated. rests upon the consideration that there was so#e other "alid law i"in corporate "alidit% to the or ani!ation& Gence. in the case at bar. NOT0* De (acto /unicipal Corporations reIuisites* 'alid law the #ere fact that Balaba an was or ani!ed at a ti#e when the authori!in incorporation2 atte#pt in ood faith to or ani!e under statute had not been in"alidated cannot concei"abl% #a9e it a de it2 colorable co#pliance with law. assu#ption of corporate facto corporation. as. independentl% of $ection @C of the powers& Ad#inistrati"e Code. there is no other "alid statute to i"e color of authorit% to its creation& Thus. 0-ecuti"e Order :C@ creatin Case* 0//ANU0L P0LA0H "s& TG0 AUDITOR 10N0RAL. 1&R& No& L4 the #unicipalit% in Iuestion is a nullit% pursuant to the rulin in 8:C8>. 658;56B@> Pelae! rulin & This is not to sa%. howe"er. that the acts done b% the #unicipalit% of Balaba an in the e-ercise of its corporate (ACT$* President of the Philippines. purportin to act pursuant to powers are a nullit% because the e-ecuti"e order Lis. in le al $ec& @C of Re"ised Ad#inistrati"e Code +presidential authorit% to conte#plation. as inoperati"e as thou h it had ne"er been define the boundar%. or boundaries. of an% pro"ince. sub4 passed&L Note. the e-istence of 0-ecuti"e Order :C@ is Lan pro"ince. #unicipalit%. Ptownship7 #unicipal district or other operati"e fact which cannot Kustl% be i nored&L The actual political subdi"ision. and increase or di#inish the territor% e-istence of a statute. prior to such a deter#ination. in an co#prised therein. #a% di"ide an% pro"ince into one or #ore operati"e fact and #a% ha"e conseIuences which cannot Kustl% subpro"inces. separate an% political di"ision other than a be i nored& The past cannot alwa%s be erased b% a new Kudicial pro"ince. into such portions as #a% be reIuired. #er e an% of declaration& The effect of the subseIuent rulin as to in"alidit% such subdi"isions or portions with another. na#e an% new #a% ha"e to be considered in "arious aspects N with respect to subdi"ision so created. and #a% chan e the seat of o"ern#ent particular relations. indi"idual and corporate. and particular within an% subdi"ision to such place therein as the public welfare conduct. pri"ate and official& #a% reIuire,. issued se"eral e-ecuti"e orders creatin :: #unicipalities& Petitioner +as 'ice4President and as ta-pa%er,. Case* /UN& O( RI/0N0H. "s& GON& 'IC0NT0 T& BAH& RR&. 1&R& No& instituted a special ci"il action see9in to enKoin Auditor 1eneral 6A>?;@& 685856BB@ fro# passin in audit an% e-penditure of public funds in i#ple#entation of said certain e-ecuti"e orders and5or (ACT$* In 6B;B. Pres& 0lpidio 3uirino +pursuant to $ec& @C of disburse#ent b% said #unicipalities& Re"ised Ad#in Code, issued 0O8>C creatin the /unicipalit% of $inacaban consistin PetitionerJs southern portion& In 6BCC. the D0CI$ION* P0TITION 1RANT0D& $ince Ranuar% 6. 6B@A. when /unicipalit% of $inacaban filed with the Pro"incial Board of Republic Act No& 8:?A beca#e effecti"e. barrios #a% Lnot be /isa#is Occiental a clai# a ainst Petitioner o"er portions created or their boundaries altered nor their na#es chan edL affectin certain barrios based on the technical description in 0&O& e-cept b% Act of Con ress or of the correspondin pro"incial No& 8>C& Petitioner conceded that. under 0O8>C the disputed area board Lupon petition of a #aKorit% of the "oters in the areas is part of $inacaban. but nonetheless asserted Kurisdiction on the affectedL and the Lreco##endation of the council of the basis of an a ree#ent it had with the /unicipalit% of $inacaban #unicipalit% or #unicipalities in which the proposed barrio is and appro"ed b% pro"incial board resolution in 6B>A& The board situated&L This statutor% denial of the presidential authorit% to declared the disputed area to be part of $inacaban rulin that the create a new barrio i#plies a ne ation of the bi er power to pre"ious resolution appro"in the a ree#ent between the create #unicipalities. each of which consists of se"eral barrios& #unicipalities was "oid because the Board had no power to alter the boundaries of $inacaban as fi-ed in 0&O& No& 8>C. that power )hereas the power to fi- a co##on boundar%. in order to a"oid bein "ested in Con ress pursuant to the Constitution and the or settle conflicts of Kurisdiction between adKoinin #unicipalities. L1C of 6BC: +B&P& Bl & ::?,& Before the $C. Petitioner challen es #a% parta9e of an ad#inistrati"e nature N in"ol"in . as it does. the trial courtJs decision affir#in the le al e-istence of the adoption of #eans and wa%s to carr% into effect the law $inacaban and orderin the relocation of its boundar% for the creatin said #unicipalities 4 the authorit% to create #unicipal purpose of deter#inin whether certain areas clai#ed b% it corporations is essentiall% le islati"e in nature& belon ed to it& Case* /ALABAN1 "s& B0NITO. 8? $CRA >:: (ACT$* Petitioner Balindon +#unicipal #a%or of /alaban . Lanao del $ur,. Respondents +/a%or Benito and councilors of /unicipalit% of Balaba an of the sa#e pro"ince,& Balaba an. +for#erl% part of /alaban , was created on /arch 6>. 6B@A. b% 0-ecuti"e Order :C@ of the then President Carlos P& 1arcia. out of barrios and sitios of the /alaban & Citin Pelae! rulin +that Republic Act 8:?A PBarrio Charter Act. appro"ed Ranuar% 6. 6B@A7. "ested power to create barrios in the pro"incial board. and $ection @C of the Ad#inistrati"e Code. insofar as it i"es the President the power to create #unicipalities. is unconstitutional +a, because it constitutes an undue dele ation of le islati"e power and +b, because it offends a ainst $ection 6A +6, of Article 'II of the Constitution. which li#its the PresidentOs power o"er local o"ern#ents to #ere super"isionF,. Petitioner sou ht to nullif% 0&O& :C@ and restrain respondents fro# perfor#in their official functions&

D0CI$ION* The principal basis for the "iew that $inacaban was not "alidl% created as a #unicipal corporation is the Pelae! rulin that the creation of #unicipal corporations is essentiall% a le islati"e #atter and therefore the President was without power to create b% e-ecuti"e order $inacaban& The rulin in this case has been reiterated in a nu#ber of cases later decided& Gowe"er. we ha"e since held that where a #unicipalit% created as such b% e-ecuti"e order is later i#pliedl% reco ni!ed and its acts are accorded le al "alidit%. its creation can no lon er be Iuestioned& $inacaban is at least a de facto #unicipal corporation in the sense that its le al e-istence has been reco ni!ed and acIuiesced publicl% and officiall%& $inacaban had been in e-istence for si-teen %ears when the Pelae! rulin %et the "alidit% of 0&O& No& 8>C creatin it had ne"er been Iuestioned&

The $tate and e"en the /unicipalit% of Ri#ene! itself ha"e reco ni!ed $inacabanOs corporate e-istence enterin in 6B>A into an a ree#ent with it re ardin their co##on boundar%& Also. it has attained de Kure status. ;;8+d, of the L1C. #ust be dee#ed to ha"e cured an% defect in the creation of $inacaban& Respondents ar ued that Pelae! rulin did not appl% because. +E/unicipalities e-istin as of the date of the effecti"it% of this unli9e the #unicipalities in"ol"ed therein. the #unicipalit% of Code shall continue to e-ist and operate as such& 0-istin Balaba an is at least a de facto corporation. ha"in been #unicipal districts or ani!ed pursuant to presidential issuances or
4

e-ecuti"e orders and which ha"e their respecti"e set of electi"e #unicipal officials holdin office at the ti#e of the effecti"it% of the Code shall henceforth be considered as re ular #unicipalitiesF,&

10N0RAL PO)0R$ < ATTRIBUT0$ O( L1Us $ources of Powers Article II. $ection 8> and Article D of the Constitution2 statutes +e & RA?6@A,. charter&

no power to enact ordinances for the welfare of the co##unit%& It is the local o"ern#ent units. actin throu h their respecti"e le islati"e councils. that possess le islati"e power and police power& In the case at bar. the $an unian Panlun sod of /a9ati Cit% did not pass an% ordinance or resolution orderin the openin of Neptune $treet. hence. its proposed openin b% petitioner //DA is ille al and the respondent Court of Appeals did not err in so rulin & )e desist fro# rulin on the other issues as the% are unnecessar%&

Section 1( !olitical and Cor%orate 6at*re of LG-s e"er% L1U is Points of Discussion Police power is inherent in the $tate. a bod% politic and corporate endowed with powers to be e-ercised b% the Le islature. but #a% be "alidl% dele ated& Upon e-ercised b% it in confor#it% with law& "alid dele ation. the e-ercise thereof b% the dele ate bein li#ited onl% to such powers as conferred b% the le islature& Dual (unctions of L1U +6, public5 o"ern#ental acts as an Le islature has dele ated police power to L1Us +$ec& 6>. L1C, a ent of $tate for the o"ern#ent of the territor% and its throu h their respecti"e le islati"e bodies. under the 1eneral inhabitants2 +8, proprietar%5pri"ate acts as an a ent of the )elfare Clause +$ec& 6@. L1C,& co##unit% in the ad#inistration of local affairs. and as such. it acts as a separate entit% for its own purposes and not as a subdi"ision of the $tate& NOT0* RA ?B8; declared /etropolitan or /etro /anila +bod% co#posed of se"eral L1Us. i&e&. twel"e +68, cities of Caloocan. /unicipal Corporation in the Philippines* /anila. /andalu%on . /a9ati. Pasa%. Pasi . 3ue!on. /untinlupa. Las PiSas. /ari9ina. ParaSaIue and 'alen!uela. and the fi"e +>, +6, Pro"ince +$ec& ;>B. L1C, cluster of #unicipalities or #unicipalities of /alabon. Na"otas. Pateros. $an Ruan and Ta ui , #unicipalities and co#ponent cities. as a political and as a Lspecial de"elop#ent and ad#inistrati"e re ionL with the corporate unit of o"ern#ent which ser"es as a d%na#ic ad#inistration of L#etro4wideL basic ser"ices affectin the re ion #echanis# for de"elop#ental processes and effecti"e placed under La de"elop#ent authorit%L referred to as the //DA o"ernance of L1Us within its territorial Kurisdiction& + o"erned b% the /etro /anila Council co#posed of the #a%ors of the co#ponent 68 cities and > #unicipalities. the president of +8, Cit% +$ec& ;;C, co#posed of #ore #ore urbani!ed and the /etro /anila 'ice4/a%orsO Lea ue and the president of the de"eloped baran a%s. ser"es as a eneral purpose /etro /anila CouncilorsO Lea ue, headed b% the Chair#an& o"ern#ent for coordination and deli"er% of basic. re ular and direct ser"ices and effecti"e o"ernance of the inhabitants within its Kurisdiction2 NOT0* )hen R&A& No& ?B8; too9 effect. /etropolitan /anila beca#e a Lspecial de"elop#ent and ad#inistrati"e re ionL and the //DA a Lspecial de"elop#ent authorit%L whose functions +:, /unicipalit% +$ec& ;;A. L1C, roups of baran a%s. were Lwithout preKudice to the autono#% of the affected local o"ern#ent units&L The character of the //DA was clearl% ser"es pri#aril% as a eneral purpose o"ern#ent for coordination and deli"er% of basic. re ular and direct defined in the le islati"e debates enactin its charter& //DA not ser"ices and effecti"e o"ernance of inhabitants within a special #etropolitan political subdi"ision. because the latterJs creation reIuires the appro"al b% a #aKorit% of the "otes cast in a its Kurisdiction2 plebiscite in the political units directl% affected& >@ R&A& No& ?B8; was not sub#itted to the inhabitants of /etro /anila in a plebiscite& The Chair#an of the //DA is not an official elected b% +;, Baran a% +$ec& :C;. L1C, basic political unit. ser"es as the people. but appointed b% the President with the ran9 and the pri#ar% plannin and i#ple#entin unit of pri"ile es of a cabinet #e#ber& In fact. part of his function is to o"ern#ent policies. plans. pro ra#s. proKects and perfor# such other duties as #a% be assi ned to hi# b% the acti"ities in the co##unit% and as a foru# wherein President. >? whereas in local o"ern#ent units. the President collecti"e "iews of people #a% be e-pressed. cr%stalli!ed #erel% e-ercises super"isor% authorit%& This e#phasi!es the and considered where disputes are also a#icabl% ad#inistrati"e character of the //DA& settled2 Section 1, General 9elfare Cla*se L1Us shall e-ercise powers +>, Autono#ous Re ions refer to Article 6A of the e-pressl% ranted. those necessaril% i#plied therefro#. as well as those necessar%. appropriate or incidental for efficient and Constitution& effecti"e o"ernance +i&e& pro#ote health. safet%. enhance prosperit%. i#pro"e #orals of inhabitants, is the statutor% rant of police power to L1Us throu h their respecti"e le islati"e Note* /etropolitan /anila De"elop#ent Authorit% is not a local bodies e#powerin the# to enact ordinances and appro"e o"ern#ent unit& The power dele ated to //DA is that i"en to resolutions and appropriate functions for the eneral welfare of the /etro /anila Council to pro#ul ate ad#inistrati"e rules and the L1U& re ulations in the Note* Police power is an inherent attribute of so"erei nt% "ested Case* //DA "s& BA'A. 1&R& No& 6:>B@8. :58?58AAA in Con ress to #a9e. ordain and establish all #anners of wholeso#e and reasonable laws for the co##on ood2 it is (ACT$* Petitioner is a o"ern#ent a enc% tas9ed with deli"er% of plenar% and its scope is "ast and per"asi"e& Gowe"er. b% "irtue of basic ser"ices in /etro /anila& Respondent Bel4Air 'illa e "alid dele ation. it #a% be e-ercised b% L1Us& The latter bein Association. Inc& is a non4stoc9. non4profit corporation co#posed onl% a ents can onl% e-ercise such powers as are conferred upon of ho#eowners in Bel4Air 'illa e. a pri"ate subdi"ision in /a9ati the# b% Con ress& Cit%& Respondent had sou ht to enKoin PetitionerJs plan to de#olition the peri#eter fence and open to public access Li#its on L1Us police Power 4 Neptune $treet. a road +beside, pri"atel%5le all% owned b% the +6, 0-ercisable onl% within territorial li#its of L1U subdi"ision& The Court of Appeals. in re"ersin the dis#issal of +8, 0Iual Protection Clause + interest of public "s& those of a RespondentJs co#plaint. ruled that Petitioner did not ha"e the particular class reIuires e-ercise of such power, authorit% to order the openin of the street in issue& Before the +:, Due Process Clause +reasonable #eans e#plo%ed and not $C. Petitioner asserted that. there was no need for an ordinance undul% oppressi"e case of 'illa"icencio "s& Lu9ban. 1R No& fro# the Cit% of /anila to open Neptune $treet to public because. 6;@:B. /arch 8>. 6B6B, as an a ent of the $tate. it was endowed with police power in the +;, Not contrar% to the Constitution and the laws +It cannot deli"er% of basic ser"ices in /etro /anila includin traffic le ali!e prohibited act under the uise of re ulation& Li9ewise. it #ana e#ent +in"ol"in re ulation of the use of thorou hfares to cannot prohibit le al acti"ities but onl% re ulate, insure the safet%. con"enience and welfare of the eneral public,& Note* Under $ection 6@. L1U to ensure and support preser"ation D0CI$ION* Petition D0NI0D& It is be%ond doubt that //DA is not a and enrich#ent of culture. pro#ote health and safet%. enhance local o"ern#ent unit or a public corporation endowed with peopleJs ri ht to balance and healthful ecolo %. i#pro"e public le islati"e power& It is not e"en a Especial #etropolitan political #orals. enhance econo#ic prosperit% and social Kustice. subdi"isionF as conte#plated in $ec& 66. Art& D of the #aintenance of peace and order& Constitution& //DAJs powers are li#ited to for#ulation. coordination. re ulation. i#ple#entation. preparation. Case* R0PUBLIC +D0NR, "s& CIT= O( DA'AO. 1&R& No& 6;C@88. #ana e#ent. #onitorin . polic%4settin . installation of a s%ste# B56858AA8 and ad#inistration& There is no s%llabus in RA?B8; that rants //DA police power. let alone le islati"e power& PD 6>B@ +The 0n"iron#ental I#pact $tate#ent $%ste#, ensures en"iron#ental protection and re ulates certain o"ern#ent Clearl% then. the //C under P&D& No& C8; is not the sa#e entit% acti"ities affectin the en"iron#ent& Related to PD 66>6 as the //DA under R&A& No& ?B8;& Unli9e the //C. the //DA has
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+Philippine 0n"iron#ent Polic%,. reIuires an en"iron#ental i#pact state#ent fro# all a encies and instru#entalities of the national o"ern#ent. includin o"ern#ent4owned or controlled corporations. as well as pri"ate corporations. fir#s and entities. for e"er% proposed proKect and underta9in which si nificantl% affect the Iualit% of the en"iron#ent&

law o"ernin local o"ern#ent units& The eneral welfare clause has two branches& The first. 9nown as the eneral le islati"e power. authori!es the #unicipal council to enact ordinances and #a9e re ulations not repu nant to law. as #a% be necessar% to carr% into effect and dischar e the powers and duties conferred upon the #unicipal council b% law& The second. 9nown as the police power proper. authori!es the #unicipalit% to enact ordinances as #a% be necessar% and proper for the health and safet%. prosperit%. #orals. peace. ood order. co#fort. and con"enience of the #unicipalit% and its inhabitants. and for the protection of their propert%&

Da"ao Cit% in 8AAA. applied for a certificate of non4co"era e +CNC, for its proposed Da"ao Cit% Artica $ports Do#e proKect fro# the reIuired 0n"iron#ental Co#pliance Certificate +ha"in been certified that its proKect is not located in an en"iron#entall% critical area +0CA,& Application denied for the reason that Da"ao Cit% #ust under o the en"iron#ental i#pact assess#ent +0IA, process to secure an 0n"iron#ental Co#pliance Certificate +0CC,. In the present case. the ordinances i#posin licenses and before it can proceed with the construction of its proKect& reIuirin per#its for an% business establish#ent. for purposes of re ulation enacted b% the #unicipal council of /a9ati. fall within Denial of application lead to co#plaint for inKunction a ainst the pur"iew of the first branch of the eneral welfare clause& D0NR filed b% Da"ao Cit%& RTC ruled in latterJs fa"or reasonin /oreo"er. the ordinance of the #unicipalit% i#posin the annual that the laws do not reIuire local o"ern#ent units +L1Us, to business ta- is part of the power of ta-ation "ested upon local co#pl% with the 0I$ law& Onl% a encies and instru#entalities of o"ern#ents& the national o"ern#ent. includin o"ern#ent owned or controlled corporations. as well as pri"ate corporations. fir#s and R0 +closure order, 4 The ban9 was not en a ed in an% ille al or entities are #andated to o throu h the 0IA process for their i##oral acti"ities to warrant its outri ht closure& The appropriate proposed proKects which ha"e si nificant effect on the Iualit% of re#edies to enforce pa%#ent of delinIuent ta-es or fees are the en"iron#ent& A local o"ern#ent unit. not bein an a enc% or pro"ided for in $ection @8 of the Local Ta- Code. +b% distraint of instru#entalit% of the National 1o"ern#ent. is dee#ed e-cluded personal propert%. and b% le al action,& The law did not pro"ide under the principle of e-pressio unius est e-clusio alterius& for closure which further#ore "iolated petitionerOs ri ht to due process& Petition for certiorari filed b% Republic fro# RTC decision& Case #oot and acade#ic when subseIuent chan e in ad#inistration of Case* TANO "s& GON& 1O'& $AL'ADOR P& $OCRAT0$. 1&R& No& Da"ao Cit% which filed #anifestation e-pressin that it needs to 66A8;B. C5865 6BB? secure an 0CC for its proposed proKect& But Court. for the uidance of the i#ple#entors of the 0I$ law and pursuant to our (ACT$* Cit% Council of Puerto Princesa. Palawan. to effecti"el% s%#bolic function to educate the bench and bar. addressed the free cit% seawaters fro# c%anide and other obno-ious substances. issue& passed Ordinance No& 6>4B8 +effecti"e Ranuar% 6. 6BB:, bannin the ship#ent of all li"e fish and lobster outside Puerto Princesa Decision* $ec& 6>. L1C +a local o"ern#ent unit is bod% politic fro# Ranuar% 6. 6BB: to Ranuar% 6. 6BBC& To i#ple#ent said cit% and corporate endowed with powers to be e-ercised b% it in ordinance. the actin cit% #a%or issued Office Order No& 8:. confor#it% with law,& As such. it perfor#s dual functions. authori!in local law enforcers to to chec9 or conduct necessar% o"ern#ental and proprietar%& In e-ercise of o"ern#ental inspections on car oes containin li"e fish and lobster bein powers and perfor#in o"ern#ental duties. an L1U is an a enc% shipped out fro# the Puerto Princesa to ascertain whether the of the national o"ern#ent& shipper possessed the reIuired /a%orOs Per#it issued b% this Office and the ship#ent is co"ered b% in"oice or clearance issued $ec& 6@. L1C 4 dut% of the L1Us to pro#ote the peopleOs ri ht to a b% the local office of the Bureau of (isheries and AIuatic balanced ecolo %& Pursuant to this. an L1U. li9e the Cit% of Da"ao. Resources and as to co#pliance with all other e-istin rules and can not clai# e-e#ption fro# the co"era e of PD 6>C@& As a re ulations on the #atter& $ubseIuentl%. the Pro"incial Board of bod% politic endowed with o"ern#ental functions. an L1U has Palawan issued a si#ilar ordinance& the dut% to ensure the Iualit% of the en"iron#ent. which is the "er% sa#e obKecti"e of PD 6>C@& Petitioners. who were char ed with "iolation of certain pro"isions of the fore oin issuances upon the latterJs i#ple#entation. $ection ; of PD 6>C@ clearl% states that Lno person. partnership sou ht relief with the $C contendin that +a, the challen ed or corporation shall underta9e or operate an% such declared ordinances depri"ed the# of due process of law. their li"elihood. en"iron#entall% critical proKect or area without first securin an and undul% restricted the# fro# the practice of their trade. in 0n"iron#ental Co#pliance Certificate issued b% the President or "iolation of constitutional uarantees. and +b, the challen ed his dul% authori!ed representati"e&L 6: The Ci"il Code defines a office order contained no re ulation nor condition under which person as either natural or Kuridical& The state and its political the /a%orOs per#it could be ranted or denied. "estin the #a%or subdi"isions. i&e&. the local o"ern#ent units 6; are Kuridical absolute authorit% to deter#ine whether or not to issue the persons& 6> Undoubtedl% therefore. local o"ern#ent units are per#it& not e-cluded fro# the co"era e of PD 6>C@& D0CI$ION* P0TITION dis#issed& It is of course settled that laws Note* Based on D0NR4Co##unit% 0n"iron#ent and Natural +includin ordinances enacted b% local o"ern#ent units, enKo% Resources Office +C0NRO4)est, certification. proKect area not the presu#ption of constitutionalit%& To o"erthrow this en"iron#entall% critical area& $C is not trier of facts& Procla#ation presu#ption. there #ust be a clear and uneIui"ocal breach of the No& 86;@ issued on Dece#ber 6;. 6BC6. lists areas and t%pes of Constitution. not #erel% a doubtful or ar u#entati"e proKects as 0CA and within 0I$ s%ste# under PD6>C@. e &. hea"% contradiction& In short. the conflict with the Constitution #ust be industries. iron and steel #ills. s#eltin plants. #aKor #inin and shown be%ond reasonable doubt& )here doubt e-ists. e"en if Iuarr%in proKects. etc&, well4founded. there can be no findin of unconstitutionalit%& To doubt is to sustain& Case* RURAL BANM O( /AMATI. INC& "s& /UNICIPALIT= O( /AMATI. The ri ht to a balanced and healthful ecolo % carries with it a 1&R& No& 6>A?@:. ?5858AA; correlati"e dut% to refrain fro# i#pairin the en"iron#ent & & & The L1C pro"isions in"o9ed b% pri"ate respondents #erel% see9 to (ACT$* (or non4pa%#ent of #a%orJs per#it fee and annual i"e flesh and blood to the ri ht of the people to a balanced and business ta-es. cri#inal char es a ainst certain officers of healthful ecolo %& In fact. the 1eneral )elfare Clause. e-pressl% Petitioner& Pendin these char es. Respondent ordered the #entions this ri ht& closure of the ban9. pro#ptin the latter to pa%. under protest PC8.;AC&@@ as #a%orJs per#it fee and annual business ta-es& In li ht then of the principles of decentrali!ation and de"olution Petitioner filed a ci"il co#plaint for su# of #one% and da#a es enshrined in the L1C and the powers ranted therein to local a ainst Respondent with RTC alle in that the collection of o"ern#ent units under $ection 6@ +the 1eneral )elfare Clause,. subKect fees and closure order were oppressi"e and arbitrar% and under $ections 6;B. ;;?+a, +6, +"i,. ;>C+a,+6,+"i, and ;@C+a, which resulted loss of e-pected earnin s& RTC dis#issed the +6,+"i,. which unIuestionabl% in"ol"e the e-ercise of police power. co#plaint. which decision was sustained b% the CA holdin that the "alidit% of the Iuestioned Ordinances cannot be doubted& the closure order was a le iti#ate e-ercise of police power b% Respondent& Gence. petition with $C& Case* TAN "s& P0R0TA. 1&R& No& 6;B?;:. 856C58AA> D0CI$ION* Assailed decision A((IR/0D with #odification deletin closure order& R0 +i#position of fees, 4 /unicipal corporations are a encies of the $tate for the pro#otion and #aintenance of local self4 o"ern#ent and as such are endowed with police powers in order to effecti"el% acco#plish and carr% out the declared obKects of their creation& 8A The authorit% of a local o"ern#ent unit to e-ercise police power under a eneral welfare clause is not a recent de"elop#ent& Thus. the closure of the ban9 was a "alid e-ercise of police power pursuant to the eneral welfare clause contained in and restated b% B&P& Bl & ::?. which was then the (ACT$* Gow #an% coc9pits #a% be allowed to operate in a cit% or #unicipalit%Q Co#es into pla%. the traditional power of the national o"ern#ent to enact police power #easures. on one hand. and the "a ue principle of local autono#% now enshrined in the Constitution on the other& PD;;B +Coc9fi htin Law of 6B?;, pro"ided that onl% one coc9pit shall be allowed in each cit%5#unicipalit% e-cept that in cities or #unicipalities with a population of o"er 6AAT. two coc9pits #a% be established. #aintained or operated& In 6BB:. the /unicipal Council of Daanbanta%a. Cebu enacted #unicipal ordiances which
6

e"entuall% allowed the operation of not #ore than three coc9pits in the #unicipalit%& In 6BB>. Petitioner +Leonardo Tan, applied for a license to operate a coc9pit& Respondent +$ocorro Perena,. who was an e-istin licensee. filed a co#plaint with the RTC to enKoin Petitioner fro# operatin his coc9pit citin that the challen ed ordinance allowin the operation of not #ore than three coc9pits "iolated PD;;B& The trial court dis#issed the co#plaint and upheld PetitionerJs franchise reasonin that. while the ordiance #a% be in conflict with PD;;B. an% doubt in interpretation should be resol"ed in fa"or of the rant of #ore power to L1Us under the L1CJs principle of de"olution& Court of Appeals re"ersed the trial courtJs decision& Gence. PetitionerJs appeal to the $C&

+under 0O8A>, has the authorit% to issue a certificate of authorit% to operate a CAT' s%ste#. this does not preclude the cit% council fro# re ulatin the operation of such a s%ste# in their localit% under the powers conferred b% the L1C +of 6BC:,&

RULIN1* Petition 1RANT0D& $i nificantl%. President /arcos and President AIuino. in the e-ercise of their le islati"e power. issued P&D& No& 6>68. 0&O& No& >;@ and 0&O& No& 8A>& Gence. the% ha"e the force and effect of statutes or laws passed b% Con ress& That the re ulator% power sta%s with the NTC is also clear fro# President Ra#osO 0&O& No& ;:@ #andatin that the re ulation and super"ision of the CAT' industr% shall re#ain "ested Lsolel%L in the NTC& In li ht of the abo"e laws and 0&O& No& ;:@. the NTC RULIN1* Petition D0NI0D& (or Petitioner. $ection ;;?+a,+:,+", of e-ercises re ulator% power o"er CAT' operators to the e-clusion the L1C sufficientl% repeals $ection >+b, of the Coc9fi htin Law. of other bodies& "estin as it does on L1Us the power and authorit% to issue franchises and re ulate the operation and establish#ent of But. lest we be #isunderstood. nothin herein should be coc9pits in their respecti"e #unicipalities. an% law to the contrar% interpreted as to strip L1Us of their eneral power to prescribe notwithstandin & Gowe"er. while the Local 1o"ern#ent Code re ulations under the eneral welfare clause of the Local e-pressl% repealed se"eral laws. PD;;B was not a#on the#& 1o"ern#ent Code& It #ust be e#phasi!ed that when 0&O& No& ;:@ $ection >:;+f, of the L1C declares that all eneral and special decrees that the Lre ulator% powerL shall be "ested Lsolel%L in the laws or decrees inconsistent with the Code are hereb% repealed or NTC. it pertains to the Lre ulator% powerL o"er those #atters #odified accordin l%. but such clause is not an e-press repealin which are peculiarl% within the NTCOs co#petence. such as. the* clause because it fails to identif% or desi nate the acts that are +6, deter#ination of rates. +8, issuance of Lcertificates of intended to be repealed& authorit%. +:, establish#ent of areas of operation. +;, e-a#ination and assess#ent of the le al. technical and financial )hile the san unian retains the power to authori!e and license Iualifications of applicant operators. +>, rantin of per#its for the establish#ent. operation. and #aintenance of coc9pits. its the use of freIuencies. +@, re ulation of ownership and operation. discretion is li#ited in that it cannot authori!e #ore than one +?, adKudication of issues arisin fro# its functions. and +C, other coc9pit per cit% or #unicipalit%. unless such cities or si#ilar #atters& )ithin these areas. the NTC rei ns supre#e as it #unicipalities ha"e a population of o"er one hundred thousand. possesses the e-clusi"e power to re ulate N a power co#prisin in which case two coc9pits #a% be established& "aried acts. such as Lto fi-. establish. or control2 to adKust b% rule. #ethod or established #ode2 to direct b% rule or restriction2 or to Coc9fi htin Law arises fro# a "alid e-ercise of police power b% subKect to o"ernin principles or laws&L the national o"ern#ent& Of course. local o"ern#ents are si#ilarl% e#powered under $ection 6@ of the Local 1o"ern#ent There is no dispute that respondent $an unian Panlun sod. li9e Code& )e do not doubt. howe"er. the abilit% of the national other local le islati"e bodies. has been e#powered to enact o"ern#ent to i#ple#ent police power #easures that affect the ordinances and appro"e resolutions under the eneral welfare subKects of #unicipal o"ern#ent. especiall% if the subKect of clause of B&P& Bl & ::?. the Local 1o"ern#ent Code of 6BC:& That re ulation is a condition of uni"ersal character irrespecti"e of it continues to posses such power is clear under the new law. R&A& territorial Kurisdictions& Coc9fi htin is one such condition& It is a No& ?6@A& traditionall% re ulated acti"it%. due to the attendant a#blin in"ol"ed or #a%be e"en the fact that it essentiall% consists of two The eneral welfare clause is the dele ation in statutor% for# of birds 9illin each other for public a#use#ent& Laws ha"e been the police power of the $tate to L1Us& Throu h this. L1Us #a% enacted restrictin the da%s when coc9fi hts could be held. and prescribe re ulations to protect the li"es. health. and propert% of le islation has e"en been e#phatic that coc9fi hts could not be their constituents and #aintain peace and order within their held on holida%s celebratin national honor such as Independence respecti"e territorial Kurisdictions& Accordin l%. we ha"e upheld Da% and Ri!al Da%& enact#ents pro"idin . for instance. the re ulation of a#blin . the occupation of ri dri"ers. the installation and operation of The ob"ious thrust of our laws desi natin when coc9fi hts could pinball #achines. the #aintenance and operation of coc9pits. the be held is to li#it coc9fi htin and i#posin the one4coc9pit4per4 e-hu#ation and transfer of corpses fro# public burial rounds. #unicipalit% rule is in line with that ai#& Coc9fi htin is a "alid and the operation of hotels. #otels. and lod in houses as "alid #atter of police power re ulation. as it is a for# of a#blin e-ercises b% local le islatures of the police power under the essentiall% anta onistic to the ai#s of enhancin national eneral welfare clause& producti"it% and self4reliance& Li#itation on the nu#ber of coc9pits in a i"en #unicipalit% is a reasonabl% necessar% #eans Li9e an% other enterprise. CAT' operation #a%be re ulated b% for the acco#plish#ent of the purpose of controllin coc9fi htin . L1Us under the eneral welfare clause& This is pri#aril% because for clearl% #ore coc9pits eIuals #ore coc9fi hts& the CAT' s%ste# co##its the indiscretion of crossin public properties& +It uses public properties in order to reach A #unicipal ordinance #ust not contra"ene the Constitution or subscribers&, The ph%sical realities of constructin CAT' s%ste# an% statute. otherwise it is "oid& Ordinance No& ? un#ista9abl% N the use of public streets. ri hts of wa%s. the foundin of contra"enes the Coc9fi htin Law in allowin three coc9pits in structures. and the parcelin of lar e re ions N allow an L1U a Daanbanta%an& certain de ree of re ulation o"er CAT' operators& This is the sa#e re ulation that it e-ercises o"er all pri"ate enterprises Case* BATAN1A$ CAT'. INC& "s& CA. 1&R& No& 6:CC6A. B58B58AA; within its territor%& In the late 6B;As. Rohn )alson. an appliance dealer in Penns%l"ania. suffered a decline in the sale of tele"ision +t", sets because of poor reception of si nals in his co##unit%& Troubled. he built an antenna on top of a nearb% #ountain& Usin coa-ial cable lines. he distributed the t" si nals fro# the antenna to the ho#es of his custo#ers& )alsonOs inno"ati"e idea i#pro"ed his sales and at the sa#e ti#e a"e birth to a new teleco##unication s%ste# N the Co##unit% Antenna Tele"ision +CAT', or Cable Tele"ision& The Iuer% in this case is #a% a L1U re ulate the subscriber rates char ed b% CAT' operators within its territorial KurisdictionQ On Rul% 8C. 6BC@. Respondent cit% council enacted a resolution rantin Petitioner a per#it to construct. install. and operate a CAT' s%ste# in Batan as Cit% with authorit% to char e subscribers the #a-i#u# rates specified therein with condition that rate increases would be subKect to council appro"al& )hen Petitioner increased its subscriber rates fro# PCC&AA to P6CA&AA per #onth in 6BB:. Respondent /a%or wrote5threatened Petitioner with the cancellation of its per#it unless it secures the appro"al of respondent Cit% Council& Petitioner clai#in that. under 0O8A>. the National Teleco##unications Co##ission has sole authorit% to re ulate the CAT' operation in the Philippines. Petitioner filed a petition before the RTC to enKoin fro# enforcin the Iuestioned ordinance& The trial court ranted the inKunction reasonin that the sole a enc% of the o"ern#ent which can re ulate CAT' operation is the NTC. and that the L1Us cannot e-ercise re ulator% power o"er it without appropriate le islation& Trial courtJs rulin was re"ersed b% the CA holdin that. NTC But. while we reco ni!e the L1UsO power under the eneral welfare clause. we cannot sustain Resolution No& 86A& )e are con"inced that respondents stra%ed fro# the well reco ni!ed li#its of its power& The flaws in Resolution No& 86A are* +6, it "iolates the #andate of e-istin laws and +8, it "iolates the $tateOs dere ulation polic% o"er the CAT' industr%& Resolution No& 86A is an enact#ent of an L1U actin onl% as a ent of the national le islature& Necessaril%. its act #ust reflect and confor# to the will of its principal& To test its "alidit%. we #ust appl% the particular reIuisites of a "alid ordinance as laid down b% the accepted principles o"ernin #unicipal corporations& The apparent defect in Resolution No& 86A is that it contra"enes 0&O& No& 8A> and 0&O& No& ;:@ insofar as it per#its respondent $an unian Panlun sod to usurp a power e-clusi"el% "ested in the NTC. i&e&. the power to fi- the subscriber rates char ed b% CAT' operators& As earlier discussed. the fi-in of subscriber rates is definitel% one of the #atters within the NTCOs e-clusi"e do#ain& LThe rationale of the reIuire#ent that the ordinances should not contra"ene a statute is ob"ious& /unicipal o"ern#ents are onl% a ents of the national o"ern#ent& Local councils e-ercise onl% dele ated le islati"e powers conferred on the# b% Con ress as the national law#a9in bod%& The dele ate cannot be superior to the principal or e-ercise powers hi her than those of the latter& It is a heres% to su est that the local o"ern#ent units can undo the acts of Con ress. fro# which the% ha"e deri"ed their power in
7

the first place. and ne ate b% #ere ordinance the #andate of the statute& OTG0R CA$0$* '0LA$CO "s& 'ILL01A$ 68A $CRA >@C /anilia ordinance prohibitin barbershops fro# conductin #assa e business in another roo# was held "alid. as it was passed for protection of public #orals& BALACUIT "s& C(I O( A1U$AN D0L NORT0 6@: $CRA 6C8 4 Ordinance penali!in persons char in full pa%#ent for ad#ission of children a es +a es ? to 68, in #o"iehouse was an in"alid e-ercise of the police power for bein unreasonable and oppressi"e on business of petitioners&

4 4

4 4

Local re"enue is enerated onl% fro# sources e-pressl% authori!ed b% law or ordinance. collection thereof shall at all ti#es be ac9nowled ed properl%2 All #onies officiall% recei"ed b% a local o"ern#ent officer in an% capacit% or on an% occasion shall be accounted for as local funds. unless otherwise. pro"ided b% law2 Trust funds in local treasur% shall not be paid out e-cept in fulfill#ent of purpose for which trust was created or funds recei"ed2 Local bud et shall operationali!e appro"ed de"elop#ent plans&

D0 LA CRUH "s& PARA$ 68: $CRA ?>B Ordinance of Bocaue. Case* GU/B0RTO BA$CO "s& PA1COR. 1&R& No& B6@;B. >56;56BB6 Bulacan prohibitin operation of ni htclubs was declared in"alid because it was prohibitor% and not #erel% re ulator% in character& Under PD 6C@B. the Philippine A#use#ent and 1a#in Corporation +PA1COR, was e#powered to re ulate and Section 1., LGC 7asic Services and :acilities L1U endea"or to centrali!ed all a#es of chance authori!ed b% e-istin franchise be self4reliant and continue e-ercise powers and dischar e their or per#itted b% law& Petitioners +as law%ers and ta-pa%ers, duties and functions currentl% "ested upon the#2 also dischar e challen in the constitutionalit% of PD6C@B. alle ed that said law functions and responsibilities of national a encies de"lol"ed to wai"ed /anila Cit%Js ri ht to i#pose ta-es and license fees. which the# pursuant to the L1C2 e-ercise such other powers and b% law is reco ni!ed and thus. was an intrusion into L1UJs ri ht dischar e other functions as are necessar%. appropriate or to i#pose local ta-es and license fees in contra"ention of the incidental to efficient and effecti"e pro"ision of basic ser"ices and constitutionall% enshrined principle of local autono#%& facilities enu#erate in $ec& 6?& +see list of basic ser"ices and $pecificall%. the challen ed is directed a ainst $ection 6: par& +8, facilities, of P&D& 6C@B which e-e#pts PA1COR. as the franchise holder fro# pa%in an% Lta- of an% 9ind or for#. inco#e or otherwise. as well Note* Public wor9s and infrastructure proKects and other facilities. as fees. char es or le"ies of whate"er nature. whether National or pro ra#s and ser"ices funded b% national o"ern#ent under 1AA LocalL. e-cept for the >U franchise ta- due to the National and other laws. not co"ered b% $ection 6? e-cept where L1U is 1o"ern#ent& dul% desi nated as the i#ple#entin a enc% for such proKect5facilities5pro ra#s and ser"ices& RULIN1* Petition DI$/I$$0D& $ection >. Article D of the 6BC? Constitution +on Local Autono#%, pro"ides that Eeach local o"ern#ent unit shall ha"e the power to create its own source of Section 10 !ower to Generate ; A%%l" )eso*rces restates and re"enue and to le"% ta-es. fees. and other char es subKect to i#ple#ents $ection >. @ and ? of Article 6A of the Constitution. such uidelines and li#itation as the con ress #a% pro"ide. but the power is subKect to li#itations i#posed b% Con ress& consistent with the basic polic% on local autono#%& $uch ta-es. 4includes* fees and char es shall accrue e-clusi"el% to the local o"ern#ent&L The power of local o"ern#ent to Li#pose ta-es 6& 0stablishin an or ani!ation responsible for and feesL is alwa%s subKect to Lli#itationsL which Con ress #a% efficient and effecti"e i#ple#entation of their pro"ide b% law& $ince PD 6C@B re#ains an Loperati"eL law until de"elop#ent plans. pro ra#s and obKecti"e and La#ended. repealed or re"o9edL +$ec& :. Art& D'III. 6BC? priorities2 Constitution,. its Le-e#ption clauseL re#ains as an e-ception to 8& 8& Creatin their own sources of re"enue and to the e-ercise of the power of local o"ern#ents to i#pose ta-es le"% ta-es. fees and char es which shall accrue and fees& It cannot therefore be "iolati"e but rather is consistent e-clusi"el% to their own use and disposition and with the principle of local autono#%& Local o"ern#ents ha"e no which shall be retained b% the#2 power to ta- instru#entalities of the National 1o"ern#ent& :& Ga"in a Kust share in national ta-es which shall PA1COR is a o"ern#ent owned or controlled corporation with an be auto#aticall% and directl% released to the# ori inal charter. PD 6C@B& All of its shares of stoc9s are owned b% without need of further action2 the National 1o"ern#ent& In addition to its corporate powers ;& Ga"in an eIuitable share in proceeds and fro# +$ec& :. Title II. PD 6C@B, it also e-ercises re ulator% powers. thus utili!ation and de"elop#ent of national wealth PA1COR has a dual role. to operate and to re ulate a#blin and resources within their respecti"e casinos& The latter role is o"ern#ental. which places it in the Kurisdictions includin sharin the sa#e with cate or% of an a enc% or instru#entalit% of the 1o"ern#ent& inhabitants b% wa% of direct benefits2 Bein an instru#entalit% of the 1o"ern#ent. PA1COR should be >& To acIuire. de"elop. lease. encu#ber and and actuall% is e-e#pt fro# local ta-es& Otherwise. its operation alienate or otherwise dispose of real or personal #i ht be burdened. i#peded or subKected to control b% a #ere propert% held b% the# in their pri"ate capacit% Local o"ern#ent& Otherwise. #ere creatures of the $tate can and appl% their resources and assets for defeat National policies thru e-ter#ination of what local producti"e. de"elop#ental or welfare purposes. authorities #a% percei"e to be undesirable acti"ates or enterprise in e-ercise or furtherance of their o"ern#ental usin the power to ta- as La tool for re ulationL or proprietar% powers and functions and ensure thereb% their de"elop#ent as self4feliant Case* LUH =A/AN0 "s& BA L0PANTO CONDO/INIU/ CORP&. 1&R& co##unities and acti"e participants in No& 6>;BB:. 6A58>58AA> attain#ent of national oals& (AC$T* Respondent. a dul% or ani!ed condo#iu# corporation holdin title to the co##on and li#ited co##on areas of the BA4 NOT0* $ections 68C4:C:. Boo9 II of L1C pro"ides for detailed Lepanto Condo#iniu#. collected re ular assess#ents fro# its pro"isions on Local Ta-ation and (iscal /atters& #e#bers for operatin e-penses. capital e-penditures on the co##on areas. and other special assess#ents. pursuant to its NOT0* $ection 6:A. L1C +(unda#ental Principles 1o"ernin A#ended B%4Laws& 0-ercise of Power to Ta- and 1enerate Re"enues b% L1Us,* 4 Ta-ation shall be unifor# in each L1U2 )ithout citin as basis an% specific pro"ision of the Re"enue Code 4 Ta-es. fees. char es and i#position shall be of /a9ati or the Local 1o"ern#ent Code. Petitioner +Cit% eIuitable and based as far as practicable on Treasurer of /a9ati Cit%, issued a notice of assess#ent holdin ta-pa%erJs abilit% to pa%2 le"ied onl% for a public Petitioner liable to pa% business ta-es. fees and char es totalin purpose2 not unKust. e-cessi"e. oppressi"e or P6.@A6.A6:&?? for the %ears 6BB> to 6BB?& Petitioner reasoned confiscator%2 not contrar% to law. public polic%. that Respondent is en a ed in a profit "enture as the collection of national econo#ic polic% or in restraint of trade2 dues fro# unit owners was pri#aril% Lto sustain and #aintain the 4 Collection of ta-es. fees. char es and other e-penses of the co##on areas. i"in full appreciati"e li"in i#positions shall in no case be let to an% pri"ate "alues for the indi"idual condo#iniu# occupants. eneratin person2 better #ar9etable prices for future sale of their units& 4 Re"enue collection shall inure solel% to the benefit of. and be subKect to the disposition b% L1U unless Upon denial of its protest. Respondent filed an appeal with the specificall% pro"ided herein2 and Re ional Trial Court which appeal was dis#issed& On re"iew b% 4 0ach L1U shall. as far as practicable. e"ol"e a the Court of Appeals. the latter re"ersed the trial courtJs decision pro ressi"e s%ste# of ta-ation and declared that the corporation was not liable to pa% business ta-es to the Cit% of /a9ati& Ger #otion for reconsideration denied. NOT0* $ection :A>. L1C +(unda#ental Principles 1o"ernin Petitioner filed a petition for re"iew with the $upre#e Court& (inancial Affairs. Transactions and Operations of L1U,* 4 No #one% to be paid out of local treasur% e-cept in RULIN1* Petition D0NI0D& The power of local o"ern#ent units to pursuance of an appropriation ordinance or law2 i#pose ta-es within its territorial Kurisdiction deri"es fro# the 4 Local o"ern#ent funds and #onies shall be spent Constitution itself. which reco ni!es the power of these units Lto solel% for public purposes2 create its own sources of re"enue and to le"% ta-es. fees. and
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char es subKect to such uidelines and li#itations as the Con ress #a% pro"ide. consistent with the basic polic% of local autono#%&L These uidelines and li#itations as pro"ided b% Con ress are in #ain contained in the Local 1o"ern#ent Code of 6BB6. which pro"ides for co#prehensi"e instances when and how local o"ern#ent units #a% i#pose ta-es& The si nificant li#itations are enu#erated pri#aril% in $ection 6:: of the Code +prohibition on inco#e ta-es e-cept when le"ied on ban9s and other financial institutions,& (ound in Title I of Boo9 II of the Code are other ta-es i#posable b% local o"ern#ent units. includin business ta-es& Under $ection 6>6 of the Code. cities such as /a9ati are authori!ed to le"% the sa#e ta-es fees and char es as pro"inces and #unicipalities& $ection 6;: of the Code specificall% enu#erates se"eral t%pes of business on which #unicipalities and cities #a% i#pose ta-es& /oreo"er. the local san unian is also authori!ed to i#pose ta-es on an% other businesses not otherwise specified under $ection 6;: which the san unian concerned #a% dee# proper to ta-& The co"era e of business ta-ation particular to the Cit% of /a9ati is pro"ided b% the /a9ati Re"enue Code enacted throu h /unicipal Ordinance No& B84A?8& Article A. Chapter III of said code o"erns business ta-es in /a9ati. and it is Iuite specific as to the particular businesses which are co"ered b% business ta-es& The initial inIuir% is what pro"ision of the /a9ati Re"enue Code does the Cit% Treasurer rel% on to #a9e the Corporation liable for business ta-es& As stated earlier. local ta- on businesses +that is. Ltrade or co##ercial acti"it% re ularl% en a ed in as a #eans of li"elihood or with a "iew to profitL, is authori!ed under $ection 6;: of the Local 1o"ern#ent Code& It is thus i#perati"e that in order that Respondent #a% be subKected to business ta-es. its acti"ities #ust fall within the definition of business as pro"ided in the Local 1o"ern#ent Code& And to hold that the% do is to i nore the "er% statutor% nature of a condo#iniu# corporation& The creation of the condo#iniu# corporation is sanctioned b% RA No& ;?8@. +Condo#iniu# Act 4 a condo#iniu# is an interest in real propert% consistin of a separate interest in a unit in a residential. industrial or co##ercial buildin and an undi"ided interest in co##on. directl% or indirectl%. in the land on which it is located and in other co##on areas of the buildin ,& In line with the authorit% of the condo#iniu# corporation to #ana e the condo#iniu# proKect. it #a% be authori!ed. in the deed of restrictions. Lto #a9e reasonable assess#ents to #eet authori!ed e-penditures. each condo#iniu# unit to be assessed separatel% for its share of such e-penses in proportion +unless otherwise pro"ided, to its ownerOs fractional interest in an% co##on areas&L The collection of these assess#ents fro# unit owners is the basis for the Cit% TreasurerOs clai# that the Corporation is doin business as these collections are Lwith the end "iew of ettin full appreciati"e li"in "aluesL for the condo#iniu# units. and as a result. profit is obtained once these units are sold at hi her prices& The Court cites with appro"al the two counterpoints raised b% the Court of Appeals in reKectin this contention& (irst. if an% profit is obtained b% the sale of the units. it accrues not to the corporation but to the unit owner& $econd. if the unit owner does obtain profit fro# the sale of his unit. he is alread% reIuired to pa% capital ains ta- on the appreciated "alue of the condo#iniu# unit& Case* /IAA "s& CA. 1&R& No& 6>>@>A& ?58A58AA@ (ACT$* Petitioner /anila International Airport Authorit% operates the Nino% AIuino International Airport +NAIA, Co#ple- in ParaSaIue Cit% under 0-ecuti"e Order No& BA:. otherwise 9nown as the Re"ised Charter of the /anila International Airport Authorit%& $ubseIuentl%. 0-ecuti"e Order Nos& BAB and 8BC a#ended the /IAA Charter. where as operator of the international airport. /IAA ad#inisters the land. i#pro"e#ents and eIuip#ent within the NAIA Co#ple-& The /IAA Charter transferred to /IAA appro-i#atel% @AA hectares of land. : includin the runwa%s and buildin s then under the Bureau of Air Transportation&

Charter is the proof that /IAA is e-e#pt fro# real estate ta-& /IAA petitioned the CA for prohibition and inKunction. with pra%er for preli#inar% inKunction or te#porar% restrainin order see9in to restrain the Cit% of ParaSaIue fro# i#posin real estate taon. le"%in a ainst. and auctionin for public sale the Airport Lands and Buildin s. which petition howe"er was dis#issed for ha"in been filed be%ond the @A4da% re le#entar% period& Gence. this petition for re"iew& RULIN1* Petition 1RANT0D& The Airport Lands and Buildin s of /IAA are 0D0/PT fro# the real estate ta- i#posed b% the Cit% of ParaSaIue& All the real estate ta- assess#ents. includin the final notices of real estate ta- delinIuencies. issued b% the Cit% of ParaSaIue on the Airport Lands and Buildin s of the /anila International Airport Authorit%. e-cept for the portions that the /anila International Airport Authorit% has leased to pri"ate parties. are declared 'OID& As a rule. a o"ern#ent4owned or controlled corporation is not e-e#pt fro# real estate ta-& Gowe"er. /IAA is not a o"ern#ent4 owned or controlled corporation& A o"ern#ent4owned or controlled corporation #ust be Lor ani!ed as a stoc9 or non4stoc9 corporation&L /IAA is not or ani!ed as a stoc9 or non4stoc9 corporation& /IAA is not a stoc9 corporation because it has no capital stoc9 di"ided into shares. has no stoc9holders or "otin shares and its capital is not di"ided into shares of stoc9& Neither is it a non4stoc9 corporation because it has no #e#bers& A non4 stoc9 corporation #ust ha"e #e#bers& 0"en if the 1o"ern#ent is considered as the sole #e#ber of /IAA. this will not #a9e /IAA a non4stoc9 corporation because non4stoc9 corporations cannot distribute an% part of their inco#e to their #e#bers and in /IAAJs case. $ection 66 of its Charter reIuires it to re#it 8AU of its annual ross operatin inco#e to the National Treasur%. thus. pre"entin /IAA fro# Iualif%in as a non4stoc9 corporation& (urther. non4stoc9 corporations are or ani!ed for charitable. reli ious. educational. professional. cultural. recreational. fraternal. literar%. scientific. social. ci"il ser"ice. or si#ilar purposes. li9e trade. industr%. a riculture and li9e cha#bers& /IAA is not or ani!ed for an% of these purposes& /IAA. a public utilit%. is or ani!ed to operate an international and do#estic airport for public use& /IAA is a o"ern#ent instru#entalit% "ested with corporate powers to perfor# efficientl% its o"ern#ental functions& /IAA is li9e an% other o"ern#ent instru#entalit%. the onl% difference is that /IAA is "ested with corporate powers& )hen the law "ests in a o"ern#ent instru#entalit% corporate powers. the instru#entalit% does not beco#e a corporation. unless the o"ern#ent instru#entalit% is or ani!ed as a stoc9 or non4stoc9 corporation& Thus. /IAA e-ercises the o"ern#ental powers of e#inent do#ain. police authorit% and the le"%in of fees and char es& At the sa#e ti#e. /IAA e-ercises Lall the powers of a corporation under the Corporation Law. insofar as these powers are not inconsistent with the pro"isions of this 0-ecuti"e Order&L A o"ern#ent instru#entalit% li9e /IAA falls under $ection 6::+o, of the Local 1o"ern#ent Code. which states that. unless otherwise pro"ided b% the Code. the e-ercise of the ta-in powers of pro"inces. cities. #unicipalities. and baran a%s shall not e-tend to the le"% of ta-es. fees or char es of an% 9ind on the National 1o"ern#ent. its a encies and instru#entalities and local o"ern#ent units& $ection 6::+o, reco ni!es the basic principle that local o"ern#ents cannot ta- the national o"ern#ent. which historicall% #erel% dele ated to local o"ern#ents the power to ta-& )hile the 6BC? Constitution now includes ta-ation as one of the powers of local o"ern#ents. local o"ern#ents #a% onl% e-ercise such power LsubKect to such uidelines and li#itations as the Con ress #a% pro"ide&L

)hen local o"ern#ents in"o9e the power to ta- on national o"ern#ent instru#entalities. such power is construed strictl% a ainst local o"ern#ents& The rule is that a ta- is ne"er presu#ed and there #ust be clear lan ua e in the law i#posin the ta-& An% doubt whether a person. article or acti"it% is ta-able After. the Office of the 1o"ern#ent Corporate Counsel +O1CC, is resol"ed a ainst ta-ation& This rule applies with reater force issued Opinion No& A@6 statin that the Local 1o"ern#ent Code of when local o"ern#ents see9 to ta- national o"ern#ent 6BB6 withdrew the e-e#ption fro# real estate ta- ranted to instru#entalities& /IAA under $ection 86 of the /IAA Charter. /IAA ne otiated with Respondent Cit% of ParaSaIue to pa% the real estate ta- i#posed The Airport Lands and Buildin s of /IAA are propert% of public b% the Cit% and paid so#e of said ta-es alread% due& Later. /IAA do#inion and therefore owned b% the $tate or the Republic of the recei"ed (inal Notices of Real 0state Ta- DelinIuenc% +totalin Philippines& Properties of public do#inion #entioned in Article P@8;.>A@.?8>&;8, fro# the Cit% of ParaSaIue for the ta-able ;8A of the Ci"il Code. li9e Lroads. canals. ri"ers. torrents. ports %ears 6BB8 to 8AA6& and brid es constructed b% the $tate.L are owned b% the $tate& The ter# LportsL includes seaports and airports& The /IAA Airport )hen ParaSaIue Cit% issued notices of le"% and warrants of le"% Lands and Buildin s constitute a LportL constructed b% the $tate& on the Airport Lands and Buildin s and threatened to sell at The Airport Lands and Buildin s are de"oted to public use public auction these properties if /IAA failed to pa% the real because the% are used b% the public for international and estate ta- delinIuenc%. /IAA sou ht clarification of O1CC Opinion do#estic tra"el and transportation& The fact that the /IAA No& A@6& The O1CC then issued Opinion No& 6;? clarif%in O1CC collects ter#inal fees and other char es fro# the public does not Opinion No& A@6 statin that $ection 8A@ of the Local 1o"ern#ent re#o"e the character of the Airport Lands and Buildin s as Code reIuires persons e-e#pt fro# real estate ta- to show proof properties for public use& The char in of fees to the public does of e-e#ption and that in the case of /IAA. $ection 86 of the /IAA not deter#ine the character of the propert% whether it is of public
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do#inion or not& Article ;8A of the Ci"il Code defines propert% of #unicipal o"ern#ent allow. pro"ide for additional allowances public do#inion as one Lintended for public use&L and other benefits to Kud es. prosecutors. public ele#entar% and hi h school teachers. and other national o"ern#ent officials As properties of public do#inion. the airport properties are stationed in or assi ned to the #unicipalit%2 outside the co##erce of #an& Properties of public do#inion. bein for public use. are not subKect to le"%. encu#brance or The contro"ers% actuall% centers on the see#in l% sweepin disposition throu h public or pri"ate sale& An% encu#brance. le"% pro"ision in NCC No& @? which states that Lno one shall be on e-ecution or auction sale of an% propert% of public do#inion is allowed to collect RATA fro# #ore than one source&L Does this "oid for bein contrar% to public polic%& 0ssential public ser"ices #ean that Kud es cannot recei"e allowances fro# L1Us in will stop if properties of public do#inion are subKect to addition to the RATA fro# the $upre#e CourtQ B% no stretch of encu#brances. foreclosures and auction sale& This will happen if the i#a ination can NCC No& @? be construed as nullif%in the the Cit% of ParaSaIue can foreclose and co#pel the auction sale power of L1Us to rant allowances to Kud es under the Local of the @AA4hectare runwa% of the /IAA for non4pa%#ent of real 1o"ern#ent Code of 6BB6& It was issued pri#aril% to #a9e the estate ta-& rant of RATA to national officials under the national bud et unifor#& In other words. it applies onl% to the national funds Case* $/ART CO//UNICATION$. INC& "s& CIT= O( DA'AO. 1&R& No& ad#inistered b% the DB/. not the local funds of L1Us& 6>>;B6. B56@58AAC To rule a ainst the power of L1Us to rant allowances to Kud es (ACT$* The Ta- Code of Da"ao Cit% I$ec& 6. Art& 6A thereof, as what respondent COA would li9e us to do will sub"ert the pro"ided that* ENotwithstandin an% e-e#ption ranted b% an% principle of local autono#% !ealousl% uaranteed b% the law or other special law. there is hereb% i#posed a ta- on Constitution& The Local 1o"ern#ent Code of 6BB6 was speciall% businesses enKo%in a franchise. at a rate of se"ent%4fi"e percent pro#ul ated b% Con ress to ensure the autono#% of local +?>U, of one percent +6U, of the ross annual receipts for the o"ern#ents as #andated b% the Constitution& B% upholdin . in precedin calendar %ear based on the inco#e or receipts reali!ed the present case. the power of L1Us to rant allowances to within the territorial Kurisdiction of Da"ao Cit%& Kud es and lea"in to their discretion the a#ount of allowances the% #a% want to rant. dependin on the a"ailabilit% of local RULIN1* $#art is of the "iew that the onl% ta-es it #a% be #ade funds. we ensure the enuine and #eanin ful local autono#% of to bear under its franchise are the national franchise ta- +now L1Us& 'AT,. inco#e ta-. and real propert% ta-& It clai#s e-e#ption fro# the local franchise ta- because the Ein lieu of ta-esF clause in its franchise does not distin uish between national and local ta-es& Section 19,LGC LG-<s !ower of 8minent omain L1U throu h )e pa% heed that R&A& No& ?8B; is not definite in rantin its Chief 0-ecuti"e actin pursuant to an ordinance2 for public use e-e#ption to $#art fro# local ta-ation& $ection B of R&A& No& or purpose or welfare for the benefit of poor and landless2 upon ?8B; i#poses on $#art a franchise ta- eIui"alent to three pa%#ent of Kust co#pensation. pursuant to pro"isions of the percent +:U, of all ross receipts of the business transacted Constitution and pertinent laws& under the franchise and the said percenta e shall be in lieu of all ta-es on the franchise or earnin s thereof& R&A& No ?8B; does not Conditions for 0-ercise of Power of 0#inent Do#ain* +i, Prior "alid e-pressl% pro"ide what 9ind of ta-es $#art is e-e#pted fro#& It is and definite offer to owner which latter did not accept2 +II, L1U not clear whether the Ein lieu of all ta-esF pro"ision in the #a% ta9e i##ediate possession of propert% upon filin of franchise of $#art would include e-e#ption fro# local or national e-propriation proceedin s +Rule @? of Rules of Court, and ta-ation& )hat is clear is that $#art shall pa% franchise ta- pa%#ent of deposit of at least 6>U of fair #ar9et "alue of eIui"alent to three percent +:U, of all ross receipts of the propert% based on current ta- declaration2 a#ount to be paid for business transacted under its franchise& But whether the e-propriation shall be deter#ined b% proper court +reference to franchise ta- e-e#ption would include e-e#ption fro# e-actions Co##issioner, based on fair #ar9et "alue at the ti#e of ta9in & b% both the local and the national o"ern#ent is not uneIui"ocal& 4 0#inent Do#ain inherent attribute of so"erei nt% to ta9e The uncertaint% in the Ein lieu of all ta-esF clause in R&A& No& ?8B; pri"ate propert% upon pa%#ent of Kust co#pensation& on whether $#art is e-e#pted fro# both local and national franchise ta- #ust be construed strictl% a ainst $#art which Case* /UN& O( PARANA3U0 "s& '&/& R0ALT= CORP& 8B8 $CRA @?C clai#s the e-e#ption& $#art has the burden of pro"in that. aside fro# the i#posed :U franchise ta-. Con ress intended it to (ACT$* A resolution passed b% /unicipal Council authori!ed Chief be e-e#pt fro# all 9inds of franchise ta-es whether local or 0-ecuti"e to e-ercise police power& national& Gowe"er. $#art failed in this re ard& RULIN1* L1C in effect when co#plaint for e-propriation was filed. Ta- e-e#ptions are ne"er presu#ed and are strictl% construed e-plicitl% reIuires an ordinance for this purpose& If Con ress a ainst the ta-pa%er and liberall% in fa"or of the ta-in authorit%& intended to allow L1U to e-ercise e#inent do#ain throu h /0R0 P887 The% can onl% be i"en force when the rant is clear and resolution. it would ha"e si#pl% adopted the lan ua e of the cate orical& The surrender of the power to ta-. when clai#ed. pre"ious local o"ern#ent code +BP ::? of 6BC:,& )here the law #ust be clearl% shown b% a lan ua e that will ad#it of no is clear and a#bi uous. the law is applied accordin to the reasonable construction consistent with the reser"ation of the e-press ter#s& 0#inent Do#ain necessaril% in"ol"es a dero ation power& If the intention of the le islature is open to doubt. then the of a funda#ental or pri"ate ri ht of the people. hence. #anifest intention of the le islature #ust be resol"ed in fa"or of the $tate& chan e in le islati"e lan ua e fro# EresolutionF under BP::? to EordinanceF under RA?6@A de#ands strict interpretation& In this case. the doubt #ust be resol"ed in fa"or of the Cit% of Petitioner relies on Art& :@ of Rule 'I of the I#ple#entin Rules Da"ao& The Ein lieu of all ta-esF clause applies onl% to national which reIuires onl% a EresolutionF to authori!e the L1U to internal re"enue ta-es and not to local ta-es& e-ercise e#inent do#ain& This is clearl% #isplaced& $ection 6B of the L1C. the law itself. surel% pre"ails o"er said rule which #erel% PT7he Lin lieu of all ta-esL clause in $#artOs franchise refers onl% see9s to i#ple#ent it& The clear letter of the law is controllin to ta-es. other than inco#e ta-. i#posed under the National and cannot be a#ended b% #ere ad#inistrati"e rule issued for its Internal Re"enue Code& The Lin lieu of all ta-esL clause does not i#ple#entation& appl% to local ta-es& The clear intent is for the Lin lieu of all ta-esL clause to appl% onl% to ta-es under the National Internal Re"enue Note* Resolution is a #ere declaration of senti#ent5opinion of Code and not to local ta-es& 0"en with respect to national internal law#a9in bod% on a specific #atter2 it is te#porar% in nature2 re"enue ta-es. the Lin lieu of all ta-esL clause does not appl% to third readin not necessar% unless decided otherwise b% #aKorit% inco#e ta-& of all san unian #e#bers& Ordinance on the otherhand. is law and is of eneral and per#anent character and reIuires : Case* RUD10 TO/A$ C& L0=N0$ "s& COA. 1&R& No& 6;:>B@. readin s& 6856658AA: Case* A/O$ (RANCIA. "s& /UN& O( /0=CAUA=AN. 1&R& No& (ACT* Petitioner was for#erl% recei"in a P6@AA4#onthl% 6?A;:8. :58;58AAC allowance fro# the /unicipalit% of NauKan while he was stationed there as Kud e of the #unicipal trial court& Respondent (ACT$* Respondent filed a co#plaint to e-propriate PetitionersJ Co##ission on Audit +upholdin the Re ional Director and 6@.8>@ sI& #& idle propert% which it planned to use as a co##on Pro"incial Auditor, disallowed said allowance citin that the latter public ter#inal for all t%pes of public utilit% "ehicles with a alon with PetitionerJs RATA fro# the $upre#e Court "iolated wei hin scale for hea"% truc9s& In their answer. Petitioners certain bud et circulars +NCCV@?, that no one shall be allowed to a"erred that the subKect land was de"eloped contrar% to collect RATA fro# #ore than one source& RespondentJs clai# of bein raw land. for which reason. RespondentJs offer price of :::.>AA +or P666&BB per sIuare RULIN1* On October 6A. 6BB6. Con ress enacted RA ?6@A. +Local #eter, was too low& Petitioners essentiall% a"er that the CA erred 1o"ern#ent Code of 6BB6,& The power of the L1Us to rant in upholdin the RTCOs order that. in e-propriation cases. prior allowances and other benefits to Kud es and other national deter#ination of the e-istence of a public purpose was not officials stationed in their respecti"e territories was e-pressl% necessar% for the issuance of a writ of possession& pro"ided in $ections ;;?+a,+6,+-i,. ;>C+a,+6,+-i, and ;@C+a,+6,+-i, of the Code& $ection ;;?+a,+6,+-i, of RA ?6@A. the Local RULIN1* Petitioner D0NI0D& $ec& 6B. L1C pro"ides that. a L1U 1o"ern#ent Code of 6BB6. pro"ides* E)hen the finances of the #a%. throu h its chief e-ecuti"e and actin pursuant to an
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ordinance. e-ercise the power of e#inent do#ain for public use. or purpose. or welfare for the benefit of the poor and the landless. upon pa%#ent of Kust co#pensation. pursuant to the pro"isions of the Constitution and pertinent laws& Before a L1U #a% enter into possession of the propert% sou ht to be e-propriated. it #ust +6, file a co#plaint for e-propriation sufficient in for# and substance in the proper court and +8, deposit with the said court at least 6>U of the propert%Os fair #ar9et "alue based on its current tadeclaration& The law does not #a9e the deter#ination of a public purpose a condition precedent to the issuance of a writ of possession& Section 24, LGC LG- !ower to )eclassif" Land Cit% or /unicipalit% throu h ordinance passed after conductin public hearin s for that purpose. #a% authori!e the reclassification of a ricultural lands and pro"ide for the #anner of their utili!ation or disposition&

portion to $hell Corporation& Petitioner (a"is protested the lease to $hell clai#in that said lease di#inished the width of Lapu4 Lapu $treet and that the Cit% was bereft of authorit% to lease an% portion of its public streets in fa"or of an%one& $ubseIuentl%. Petitioner filed a co#plaint for annul#ent of the lease with da#a es in the Court of (irst Instance of Ba uio& The latter court dis#issed his co#plaint& Gence. appeal to the $upre#e Court& RULIN1* APP0AL Denied& Appellant #a% not challen e the cit% councilOs act of withdrawin a strip of Lapu4Lapu $treet at its dead end fro# public use and con"ertin the re#ainder thereof into an alle%& These are acts well within the a#bit of the power to close a cit% street& The cit% council is the authorit% co#petent to deter#ine if a certain propert% is still necessar% for public use& This power is discretionar% and will not ordinaril% be controlled or interfered with b% the courts. absent a plain case of abuse or fraud or collusion& (aithfulness to the public trust will be presu#ed& The fact that so#e pri"ate interests #a% be ser"ed incidentall% will not in"alidate the "acation ordinance&

A ricultural Land. defined* Those public lands acIuired fro# $pain which are not ti#ber or #ineral land2 land de"oted to 1i"en the precept that the discretion of a #unicipal corporation is a riculture or to an% rowth& broad in scope and should thus be accorded reat deference in the spirit of the Local Autono#% Law +R&A& 88@;,. and absent a 1rounds for Reclassification* +i, )hen land ceases to be clear abuse of discretion. we hold that the withdrawal for lease of econo#icall% feasible and sound for a ricultural purposes as the disputed portion of Lapu4Lapu $treet and the con"ersion of deter#ined b% the Dept& of A riculture2 and +ii, when land shall the re#ainder of the dead4end part thereof into an alle%. does not ha"e substantiall% reater econo#ic "alue for residential. call for. and is be%ond the reach of. Kudicial interference& co##ercial or industrial purposes as deter#ined b% the $an unian2 (ro# the fact that the leased strip of 6AA sIuare #eters was withdrawn fro# public use. it necessaril% follows that such leased Conditions for Reclassification* Percenta e li#its. that is. of the portion beco#es patri#onial propert%& Article ;88 of the Ci"il total a ricultural area at the ti#e of passa e of reclassification Code indeed pro"ides that propert% of public do#ain. Lwhen no +a, for hi hl% urbani!ed cities and independent co#ponent cities lon er intended for public use or public ser"ice. shall for# part of 6>U2 +b, for co#ponent cities and 6st to :rd class #unicipalities the patri#onial propert% of the $tate&L Authorit% is not wantin for 6AU2 and +c, for ;th to @th class #unicipalities >U the proposition that LPpropert% for public use of pro"inces and towns are o"erned b% the sa#e principles as propert% of public Note* President +upon NatJl 0cono#ic De"Jt Authorit%Js do#inion of the sa#e character&L There is no doubt that the strip reco##endation,. when public interest so reIuires. authori!e a withdrawn fro# public use and held in pri"ate ownership #a% be cit% or #unicipalit% to reclassif% lands in e-cess of li#its set in i"en in lease& $ection 8A+a,& The eneral rule is. one whose propert% does not abut on the 4 Under $ec& 8A+e, A ricultural lands distributed to a rarian closed section of a street has no ri ht to co#pensation for the refor# beneficiaries pursuant to RA@@>?+CARL,. shall not be closin or "acation of the street. if he still has reasonable access affected b% the reclassification and the con"ersion of such lands to the eneral s%ste# of streets& The circu#stances in so#e into other purposes shall be o"erned b% $ec& @> of CARL& cases #a% be such as to i"e a ri ht to da#a es to a propert% owner. e"en thou h his propert% does not abut on the closed Note* $ec& @> of RA@@>? Conditions for con"ersion of section& But to warrant reco"er% in an% such case the propert% a ricultural lands held b% a rarian refor# pro ra# beneficiaries owner #ust show that the situation is such that he has sustained to non4a ricultural use with DAR* +a, > %ear lapse fro# award of special da#a es differin in 9ind. and not #erel% in de ree. fro# land2 +ii, land ceased to be econo#icall% feasible and sound for those sustained b% the public enerall%&L a ricultural purpose2 +iii, notice to affected parties2 +i", beneficiar% has full% paid his obli ation& In the case at bar. no pri"ate ri ht of appellant has been in"aded& No special da#a e or da#a es he will incur b% reason of the Section 21, LGC Clos*re ; $%enin2 of )oads The closure of closin of a portion of Lapu4Lapu $treet at its dead end& Gis streets5roads is within the power of the local o"ern#ent unit propert% does not abut that street& In fact. the court has found +throu h council b% wa% of ordinance,& that the re#ainin portion of Lapu4Lapu $treet. which actuall% is ; #eters in width. is sufficient for the needs of appellant and that 4 L1U +b% ordinance, #a% per#anentl%5te#poraril% close or the leased portion N subKect of this suit N Lwas not necessar% for open an% local road. alle%. par9 or sIuare fallin within its public use&L Kurisdiction& LThe Constitution does not underta9e to uarantee to a propert% Note* In case of per#anent closure. ordinance #ust be appro"ed owner the public #aintenance of the #ost con"enient route to his b%. at least 85: of all #e#bers of the san unian and when door& The law will not per#it hi# to be cut off fro# the public necessar%. an adeIuate substitute for the public facilit% subKect of thorou hfares. but he #ust content hi#self with such route for closure. is pro"ided& outlet as the re ularl% constituted public authorit% #a% dee# #ost co#patible with the public welfare& )hen he acIuires cit% 4 Propert% publicl% withdrawn fro# public use #a% be propert%. he does so in tacit reco nition of these principles& If. used5con"e%ed for an% purpose for which other real propert% subseIuent to his appreciation. the cit% authorities abandon a belon in to the L1U concerned #a% be lawfull% used or portion of the street to which his propert% is not i##ediatel% con"e%ed& adKacent. he #a% suffer loss because of the incon"enience i#posed. but the public treasur% cannot be reIuired to Note* No freedo# par9 shall be closed per#anentl% without reco#pense hi#& $uch case is da#nu# absIue inKuria&L pro"ision for its transfer5relocation to a new site& +see related B&P&CCA Public Asse#bl% Act,& Case* COACO. INC& "s& GON& PA$CUAL A& B0RCILL0$. 1&R& No& L4 4 L1U has the power to close local and e"en national roads +Note* ;A;?;. C58B56B?> L1U has no authorit% to order per#anent closure5openin of a national road. alle%. par9 or sIuare. such authorit% applies to local (ACT$* Petitioner Cebu O-% en < Ac%telene Co&. Inc& applied for roads onl%. see sec& 8Pa7,& re istration of title o"er a portion of /& 1orces $treet in /abolo. Cebu Cit%& $aid portion was declared an abandoned road b% the Conditions for te#porar% closure of national5local roads under Cit% Council of Cebu the sa#e not bein included in the Cebu $ec& 8Pc7* +i, occasion of actual e#er enc%. fiesta celebrations. De"elop#ent Plan. and later. b% authorit% of the Cit% Council. was public rallies. a ricultural or industrial fairs. or underta9in of sold b% the Actin /a%or to petitioner who was the hi hest bidder public wor9s and hi hwa%s +e & Banilad fl%o"er,2 +ii, written order at a public biddin & On #otion b% the Assistant Pro"incial (iscal for te#porar% closure b% local chief e-ecuti"e2 +iii, no national or +alle in that the subKect propert% bein a public road intended local road. alle%. par9 or sIuare shall be te#poraril% closed for for a public use. it is part of the public do#ain. outside the athletic. cultural or ci"ic acti"it% not officiall% sponsored. co##erce of #en. and cannot be subKect to re istration b% an% reco ni!ed or appro"ed b% local L1U concerned& pri"ate indi"idual,. the trial court dis#issed PetitionerJs application& Case* ANTONIO (A'I$ "s& TG0 CIT= O( BA1UIO. 1&R& No& L48BB6A. ;58>56B@B RULIN1* P0TITION is ranted& Order of dis#issal set aside and trial court ordered to proceed with the hearin of the petitionerOs (ACT$* A resolution passed b% the cit% council closed the dead4 application for re istration of title& end portion of Lapu4lapu $treet to public use& B% subseIuent Under the Cebu Cit% Charter. the Cit% Council is e#powered to resolution. the /a%or as authori!ed therein. leased the closed close a cit% road or a street and further. use or con"e% propert%
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thus withdrawn fro# public ser"itude for an% purpose for which other real propert% belon in to the Cit% #a% be lawfull% used or Case* /UNICIPALIT= O( PILILIA "s& CA 8:: $CRA ;C; con"e%ed& /unicipalit% cannot be represented b% a pri"ate law%er& Onl% pro"incial fiscal or #unicipal attorne% can represent a pro"ince or In the case of (a"is "s& Cit% of Ba uio. the Court upholdin the #unicipalit% in lawsuits& This is #andator%& The #unicipalit%Js power of the cit% council to close cit% streets and to "acate or authorit% to e#plo% a pri"ate law%er is li#ited to situations where withdraw the sa#e fro# public use was si#ilarl% assailed. the pro"incial fiscal is disIualified to present it which declared that the cit% council is the authorit% co#petent to disIualification #ust appear on record& (iscalJs refusal to deter#ine whether or not a certain propert% is still necessar% for represent the #unicipalit% is not le al Kustification for e#plo%in public use& This power to "acate a street or alle% is discretionar%. the ser"ices of pri"ate counsel. /unicipalit% should reIuest the and will not ordinaril% be controlled or interfered with b% the $ecretar% of Rustice to appoint an actin pro"incial fiscal in place courts. absent a plain case of abuse or fraud or collusion& of the one who declined to handle it& (aithfulness to the public trust will be presu#ed& Case* RA/O$ "s& CA 8@B $CRA :; Petitioners Ra#os and Baliua $ince that portion of the cit% street subKect of petitionerOs /ar9et 'endorsJ Association filed a petition to declare certain application for re istration of title was withdrawn fro# public use. ordinances ille al& In said suit. Petitioners challen ed the it follows that such withdrawn portion beco#es patri#onial appearance of a pri"ate law%er for the #unicipalit%& $C held. Onl% propert% which can be the obKect of an ordinar% contract pro"incial fiscal. under +$ec& 6@C: of Re"ised Ad#in Code, consistin with Article ;88 of the Ci"il Code +that propert% of pro"incial attorne% or #unicipal attorne% #a% "alidl% represent public do#inion. when no lon er intended for public use or for the #unicipalit%& The le alit% of the representation of an public ser"ice. shall for# part of the patri#onial propert% of the unauthori!ed counsel #a% be raised at an% sta e of the $tate,& proceedin s& Case* //DA "s& BA'A. 1&R& No& 6:>B@8. :58?58AAA R0* PO)0R TO AC3UIR05CON'0= R0AL OR P0R$ONAL PROP0RT= L1U #a% acIuire real5personal. tan ible or intan ible in an% (ACT$* Petitioner issued an order to open to public traffic Neptune #anner allowed b% law. e &. sale or donation. etc& $treet +and to de#olition its peri#eter fence, a pri"ate road owned b% Respondent& Case* 'ILLANU0'A "s& CA$TAN0DA ;>; $CRA 6;8 Public pla!a is be%ond the co##erce of #an and cannot be the subKect of a RULIN1* Petition D0NI0D& )hile we hold that the eneral welfare lease or other contractual underta9in . and e"en assu#in the should be pro#oted. we stress that it should not be achie"ed at e-istence of a "alid lease of the public pla!a or part thereof. the the e-pense of the rule of law& It is thus be%ond doubt that the #unicipal resolution effecti"el% ter#inated the a ree#ent. for it //DA is not a local o"ern#ent unit or a public corporation is settled that the police power cannot be surrendered or endowed with le islati"e power& It is not e"en a Lspecial bar ained awa% throu h the #ediu# of a contract& #etropolitan political subdi"isionL as conte#plated in $ection 66. Article D of the Constitution& The powers of the //DA are li#ited R0* PO)0R TO 0NT0R INTO CONTRACT$ reIuires* +i, L1U has to for#ulation. coordination. re ulation. i#ple#entation. e-press5i#plied or inherent power to enter into the particular preparation. #ana e#ent. #onitorin . settin of policies. contract +refer to L1C. special laws or charter,2 +ii, contract is installation of a s%ste# and ad#inistration& It is the local entered into b% the proper depart#ent. board. co##ittee. officer o"ern#ent units. actin throu h their respecti"e le islati"e or a ent +under L1C. enerall% such authorit% is with the Local councils that possess le islati"e power and police power& In the Chief 0-ecuti"e upon prior authori!ation b% san unian,2 +iii, case at bar. the $an unian Panlun sod of /a9ati Cit% did not contract #ust co#pl% with certain substanti"e reIuire#ents. e &. pass an% ordinance or resolution orderin the openin of Neptune when e-penditure of public funds is to be #ade. there #ust be $treet. hence. its proposed openin b% Petitioner is ille al& actual appropriation and certificate of a"ailabilit% of funds2 +i", contract #ust co#pl% with for#al reIuire#ents of written NOT0* Closure of Roads is not e-propriation where the propert% contracts. e & $tatutes of fraud& owner is entitled to Kust co#pensation& Construction of new road was underta9en under the 1eneral )elfare Clause +police power,. NOT0* A contract entered into without co#pl%in with +i, and +iii, that is. for enKo%#ent of con"enience. e"er% indi"idual #ust be abo"e is ULTRA 'IR0$. er o. NULL AND 'OID& $uch contract prepared to i"e his share& cannot be ratified or "alidated& Ratification of defecti"e contracts is possible onl% when there is non4co#pliance with +ii, and +i", Section 22, LGC Cor%orate !owers As a bod% corporate. has reIuire#ents& the followin powers2 +a, To continuous succession in its corporate na#e2 Case* CIT= O( 3U0HON "s& L0DB0R. INC&. 1&R& 6;6@6@. :56>5A6 +b, To sue and be sued2 +c, To ha"e and use a corporate seal2 (ACT$2 Before the effecti"it% of the L1C in 6BB6. a tri4partite +d, To acIuire and con"e% real or personal propert%2 a ree#ent was si ned b% Le-ber. 3ue!on Cit% and the +e, To enter into contracts2 such other powers as are /unicipalit% of Antipolo whereb%. with the confor#it% of Antipolo. ranted corporation subKect to li#its pro"ided in 3ue!on Cit% would lease and use the pri"ate land owned b% L1C and other laws& Le-ber as a du#psite situated in Antipolo in e-chan e for e-clusi"e ser"ices and eIuip#ent for landfill to be pro"ided Corporate Powers. defined* CorporationJs capacit%5ri ht to do Le-ber& (ro# 6BB646BB8. 3ue!on Cit% used the site for du#pin certain acts or en a e in certain acti"ities such as sue5be sued but suddenl% stopped without an% e-planation& Le-ber sent a enter into contracts. borrow #one% and do suc other thin s de#and letter clai#in that it was still entitled to co#pensation necessar% to obtain its purposes& pursuant to the a ree#ent but /a%or /el /atha% of 3ue!on Cit% refused citin that the contract was "oid ha"in been si ned b% NOT0* Local Chief 0-ecuti"e enters into contracts in behalf of then /a%or $i#on without the appro"al or ratification b% Cit% L1U. reIuires prior authori!ation b% san unian concerned Council and that there was no bud et appropriation& Collection UNL0$$ otherwise pro"ided in the L1C& suit was filed b% Le-ber& RTC ruled in the latterJs fa"or and which decision was affir#ed b% the CA& NOT0* Le ible cop% of contract to be posted in conspicuous place in pro"incial capitol5cit%5#unicipalit%5baran a% hall +for RULIN1* Petition D0NI0D& In the case at bar. the contract reIuires Transparenc%,& PB;/ for a >4%ear period& 3ue!on Cit% in"o9ed PD6;;> +Auditin Code of the Philippines, that contracts in"ol"in e-penditure of NOT0* (ull autono#% in e-ercise of corporate powers +not actin public funds can onl% be entered into when there is an as a ent of the $tate,. and li#ited onl% b% L1C and other appropriation thereof to be certified b% proper accountin applicable laws& official5a ent that funds ha"e been appropriated for that purpose& Also. 3ue!on Cit% cited the L1C e#powerin the san unian with R0* RI1GT TO $U05B0 $U0D Case* CIT= COUNCIL O( C0BU "s& authorit% to appropriate funds for e-penses of the cit% CUIHON ;? $CRA :8> o"ern#ent& PD6;;> does not pro"ide that the absence of appropriation law ipso facto #a9es a contract entered into b% the (ACT$* (or lac9 of prior authorit% fro# the Council. the latter filed L1U null and "oid& Under the L1C +6B?:,. the power of a #a%or to with C(I4Cebu. a co#plaint to nullif% the contract between /a%or enter contract is not subKect to prior authori!ation b% the council& Cui!on and Tropical Co##ercial Co&. Inc& in"ol"in the purchase of road construction eIuip#ents for W>8A.B68&AA cash fro# Case* /ANANTAN "s& /UNICIPLAIT= O( LUNA +LA UNION, C8 Phil Tropical& Co#plaint was dis#issed for lac9 of le al capacit% as C;; Contract of lease rantin fishin pri"ile es is a "alid and trial court reasoned that there is no pro"ision of law authori!in bindin contract and cannot be i#paired b% a subseIuent cit% council to sue in behalf of the cit% and that the authori!ed resolution settin it aside and rantin the pri"ile e to another representati"e under the L1C is the cit% #a%or for that purpose& +unless the subseIuent resolution is a police power #easure because the e-ercise of the latter pre"ails o"er the non4 RULIN1* 1enerall%. suit is co##enced b% the local e-ecuti"e i#pair#ent clause& upon authorit% of the san unian. e-cept where the cit% councilors the#sel"es and as representati"es of5in behalf of the Section 2#, LGC Grants and onations sets forth the rules on cit%. brin the action to pre"ent unlawful disburse#ent of cit% rants and donations to L1Us fro# local and forei n assistance funds& a encies, which local chief e-ecuti"e #a% Eupon authorit% of the
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san unianF ne otiate and secure in order to Esupport the basic fails or ne lects to perfor# their duties. the for#er #a% ta9e such ser"ices or facilities enu#erated in $ec& 6?& steps5action as prescribed b% law to #a9e the# perfor# their duties& $uper"ision does not #ean control& Control includes the 4 No need of securin clearance5appro"al for rant5donation fro# power to alter5#odif%5set aside acts of a subordinate officer& an% depart#ent. a enc% or office of the national o"ern#ent or fro# an% hi her L1U& Note* National a encies5offices with proKect i#ple#entation function shall coordinate with each other and with L1U concerned 4 ProKects financed b% such rants5assistance with national in the dischar e of these functions to ensure participation of L1U securit% i#plications shall be appro"ed b% the national a enc% both in the plannin and i#ple#entation of said national proKects& concerned& (ailure of such a enc% to act on reIuest within :A da%s fro# receipt thereof. it is dee#ed appro"ed& Note* National a encies #a% be directed b% the President. upon L1UJs reIuest. to pro"ide financial. technical or other for#s of 4 Local Chief shall. within :A da%s. upon si nin of such rant. assistance to L1U without e-tra cost to L1U& a ree#ent or deed of donation. report the nature. a#ount. ter#s of such assistance to both Gouses of Con ress and the President& Note* National a encies +includin 1OCCs, with field offices5branches in pro"ince5cit%5#unicipalit% to furnish local chief Section 2', LGC 1*nici%al Liabilit" Rule* L1U and their officials e-ecuti"e concerned. for his infor#ation and uidance. #onthl% are not e-e#pt fro# liabilit% for death or inKur% to reports includin dul% certified bud etar% allocations and persons5da#a e to propert%& e-penditures& Da#a es in le al conte#plation refers to the su# of #one% which law awards or i#poses as pecuniar% co#pensation. reco#pense or satisfaction for an inKur% done or a wron sustained as a conseIuence either of a breach of contractual obli ation or a tortuous act& It includes all 9inds of da#a es conte#plated in the Ci"il Code2 it is awarded to one as a "indication of the wron ful in"asion of his ri hts& Case* RODOL(O 1ANHON "s& CA. 1&R& No& B:8>8. C5>56BB6 (ACT$* Petitioner. /a%or of Iloilo Cit% and a #e#ber of the $an unian Pan lun sod thereof. respecti"el%. were char ed ad#inistrati"el% on "arious char es. a#on the#. abuse of authorit%. oppression. ra"e #isconduct. dis raceful and i##oral conduct. inti#idation. culpable "iolation of the Constitution. and arbitrar% detention& Gearin on the char es ensued and the Respondent DIL1. upon findin of probable cause and reasons. issued successi"e pre"enti"e suspension orders a ainst Petitioner /a%or& Before the $C. PetitionersJ pri#ar% ar u#ent is that the DIL1 $ecretar% +as PresidentJs alter e o, is de"oid. in an% e"ent. of an% authorit% to suspend and re#o"e local officials&

Case* CORR0A "s& C(I of BULACAN B8 $CRA :68 /unicipal corporation is responsible onl% for acts of its officers onl% when the% ha"e acted b% authorit% of law and in confor#it% with reIuire#ents& A public officer who co##its a tort or wron ful act. done in e-cess or be%ond the scope of his dut%. is not protected b% his office and is personall% liable therefor li9e an% pri"ate indi"idual& RULIN1* $ince local o"ern#ents re#ain accountable to the national authorit%. the latter #a%. b% law. and in the #anner set CaseF PILAR "s& $AN11UNIAN1 BA=AN O( DAN$OL. PAN1A$INAN forth therein. i#pose disciplinar% action a ainst local officials& In 68C $CRA 6?: /unicipal #a%or is personall% liable for da#a es the case at bar. the DIL1 $ecretar%. the PresidentJs alter e o. in +#oral and e-e#plar%, and attorne%Js fees for ha"in "etoed in consonance with the specific pro"isions of BP::? +the e-istin bad faith. resolution appropriatin funds for salar% of the "ice4 Local 1o"Jt Code, can suspend Petitioners& #a%or& $uper"ision is not inco#patible with disciplinar% authorit%& As this Case* /0NDOHA "s D0 L0ON :: PGIL >AC Operation of ferr% Court held in 1an!on "s& Ca%anan. 6A; Phil ;C;. Ein ser"ice is a proprietar% function& /unicipalit% is ne li ent and ad#inistrati"e law. super"ision #eans o"erseein or the power or therefore liable for ha"in awarded franchise to operate ferr% authorit% of an officer to see that subordinate officers perfor# ser"ice to another notwithstandin pre"ious rant of franchise to their duties& If the latter fail or ne lect to fulfill the# the for#er the plaintiff& #a% ta9e such action or step as prescribed b% law to #a9e the# perfor# their dutiesF& Case* /UNICIPALIT= O( RAA$AN. /I$A/I$ ORI0NTAL "s& 10NTALLAN. 1&R& 6>;B@6. >5B58AA> There bein no #alice or )hile the respondent $ecretar%. as PresidentJs alter e o. under bad faith in the ille al dis#issal and refusal to reinstate the e-istin Local 1o"Jt Code. has the power to suspend the respondent 1entallan b% her superior officers. the latter cannot petitioner. such power cannot be e-ercised oppressi"el%& Ten be held personall% liable for her bac9 salaries& /unicipal ad#inistrati"e cases ha"e been successi"el% filed a ainst the cit% o"ern#ent. er o. should disburse funds to answer for her #a%or& The latter has been #ade to ser"e a total of 68A da%s of clai#s& suspension for the first two cases and the respondent $ecretar% has issued another order pre"enti"el% suspendin the for#er for NOT0* Liabilit% for contracts Rule* L1U. li9e ordinar% person is antoehr @A da%s. the third ti#e in twent% #onths& )e are liable on a contract it enters. pro"ided that contract is ultra "ires& allowin the #a%or to suffer the duration of his third suspension& Otherwise. beco#e personal liabilit% of the officer who acted Insofar as the re#ainin char es are concerned. we are ur in be%ond his power& the DIL1. upon finalit% of this decision to underta9e steps to e-pedite the sa#e. subKect to the #a%orJs usual re#edies of $ee Articles 86CB. 86CA and :; of the Ci"il Code on pro"isions on appeal. Kudicial or ad#inistrati"e or certiorari. if warranted and liabilit%& #eanwhile. we are precludin the $ecretar% fro# #etin out further suspensions based on those re#ainin co#plaints. NOT0* As to tort liabilit%* L1U is not liable if en a ed in notwithstandin findin s of pri#a facie e"idence& o"ern#ental function but liable if en a ed in proprietar% function& Section 2,, LGC National a enc%51OCC +in plannin 5i#ple#entation, of a proKect5pro ra# ha"e DUT= TO INT0R1O'0RN/0NTAL R0LATION$ CON$ULT L1U on obKecti"es5 oals. i#pact to the people in ter#s of en"iron#ental5ecolo ical balance and #easures to as a bod% political and corporate +to ser"e its constituents, pre"ent5#ini#i!e ad"erse effects& NATIONAL 1O'0RN/0NT L1U R0LATION$*

NOT0* ProKect5Pro ra# intended #a% cause pollution. cli#actic chan e. depletion of non4renewable resources. loss of cropland. Section 2(, LGC 6ational s*%ervision over LG- despite the ran eland. forest co"er or e-tinction of ani#al or plant species& unitar% and centrali!ed Phil& 1o"ern#ental structure. 6BC? Constitution li#its the authorit% of the President o"er L1U onl% to Section 2., LGC +read alon side $ec& 8 X and $ec& 8@, 4 Prior 10N0RAL $UP0R'I$ION& consultation with L1U +plus prior appro"al b% san unian, is indispensable for i#ple#entation of pro ra#5proKect& PresidentJs 1eneral $uper"ision +i, directs o"er pro"inces. hi hl% urbani!ed NOT0* If proKect results in e"iction. appropriate relocation sites to cities and independent co#ponent cities. be pro"ided& +throu h pro"inces o"er, co#ponent cities and #unicipalities2 and +throu h cities and $ee* R0PUBLIC "s& CIT= O( DA'AO. 1&R& No& 6;C@88. B56858AA82 #unicipalities o"er, baran a%s2 L+6A =S. !A6$ #,' SC)A ., +ii, to ensure that acts of L1U are within the scope of their prescribed powers and functions2 L1U PNP R0LATION$* +iii, Article D. $ection 6@ of 6BC? Constitution President shall e-ercise eneral super"ision Section 20, LGC LG- !ower of $%erational S*%ervision and o"er authon#ous re ions to ensure that Control over !6! laws are faithfull% e-ecuted& as as pro"ided under RA @B?> +DIL1 Act of 6BBA, a#ended b% RA C>>6 +PNP Reor ani!ation Act of 6BB6,& These laws o"ern the $uper"ision defined #eans o"erseein or power5authorit% of an e-tent of operational super"ision and control of local chief office to see that subordinate perfor#s their duties& If the latter e-ecuti"e o"er police force. fire protection unit and Kail
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#ana e#ent assi ned in their respecti"e Kurisdiction& NOT0* 1o"ernors and #a%ors. upon ha"in been elected and Iualified as such. are auto#aticall% deputi!ed as representati"es of NAPOLCO/ in their respecti"e Kurisdiction and as such. the% can inspect police forces and units. conduct audit and e-ercise such other functions as #a% be dul% authori!ed& NOT0* Operational Control and $uper"ision +OC$,. defined power to direct. o"ersee. superintend. the da% to da% functions of police in"esti ation of cri#es and cri#e pre"ention acti"ities and traffic control in accordance with rules and re ulations issued b% the NAPOLCO/& It includes the power to e#plo% and deplo% police personnel and units&

$ection @A Bureau of Rail /ana e#ent and Penolo % super"ision and control o"er all cit% and #unicipal Kails& Pro"incial Kails shall be super"ised and controlled b% Pro"incial o"ern#ent within its Kurisdiction whose e-penses shall be subsidi!ed b% National 1o"ern#ent for not #ore than three %ears after effecti"it% of RA@B?>& :& INT0R4LOCAL 1O'0RN/0NT R0LATION$ 4 4

Section 29, LGC !rovince has S-!8)=+S$)> !$98) +or o"ersi ht power but does not include an% restrainin authorit% o"er super"ised part%, of pro"ince o"er co#ponents but not o"er hi hl% urbani!ed and independent co#ponent cities2 Pro"ince +throu h 1o"ernor, shall ensure that e"er% co#ponent cit%5#unicipalit% within its territorial Kurisdiction acts within scope NOT0* OC$ for 1O'0RNOR* +a, choose the pro"incial police of its prescribed powers and functions& director fro# a list of three eli ibles reco##ended b% the PNP Director2 and +b, as chair of peace and order council. o"ersee Section #4, LGC !$98) ?$ )8=+89 1o"ernor has power of i#ple#entation of pro"incial public safet% plan& +$ec& @;. RAC>>6, re"iew of all e-ecuti"e orders pro#ul ated b% co#ponent cities5#unicipalities within his Kurisdiction& 0-ception* otherwise NOT0* OC$ for CIT=5/UNICIPAL /A=OR* includes power to* +i, pro"ided under the Constitution and special statues& choose chief of police fro# list of > eli ibles reco##eneded b% Cit%5#unicipal #a%or shall re"iew all e-ecuti"e orders pro"incial police director. preferabl% fro# sa#e pro"ince. cit% or pro#ul ated b% the punon baran a% within his Kurisdiction& #unicipalit%. no OIC to be for #ore than :A da%s2 local peace and order council throu h /a%or #a% reco##end recall5reassi n#ent NOT0* It is #andator% upon these na#ed hi her local chiefs to of chief of police when in its perception. the latter has been re"iew e-ecuti"e orders of the lower local chiefs& ineffecti"e in co#batin cri#e or #aintainin peace and order in the L1U. relief shall be based on uidelines established b% NOT0* Re"iew to ensure that e-ecuti"e orders are within the NAPOLCO/2 +ii, reco##end to pro"incial police director. transfer. powers ranted b% law and in confor#it% with the reassi n#ent or detail of PNP #e#bers outside their respecti"e pro"incial5cit%5#unicipal ordinances. as the case #a% be. that is. cit%5town residences2 +iii, authorit% to reco##end fro# list of to ensure that such orders do not "iolate e-istin law5ordinance& eli ibles pre"iousl% screened b% local peace and order council appoint#ent of new PNP #e#bers to be assi ned to the NOT0* 0-ecuti"e order sub#itted to re"iewin authorit% within : respecti"e cities5#unicipalities without which no such da%s fro# issuance2 inaction within :A da%s fro# sub#ission. the appoint#ents shall be attested& )hene"er practicable and sa#e is dee#ed consistent with law and therefore "alid& consistent with reIuire#ents of ser"ice. PNP #e#bers shall be assi ned to the cit%5#unicipali% of their residence2 +i", control Section #1, LGC 1-6+C+!AL @-8S?+$6S Iuestions affectin and super"ision of anti4 a#blin operation within its Kurisdiction& the #unicipalit% are to be sub#itted to the #unicipal le al officer. if none. to the pro"incial le al officer. if none. to the NOT0* 0-ercise operational super"ision and control o"er PNP units pro"incial prosecutor& in their respecti"e Kurisdiction. e-cept. :A4da% period i##ediatel% precedin and :A da%s after an% national or local and baran a% Section #2, LGC !$98) $: G868)AL S-!8)=+S+$6 elections in which instances. police under authorit% of CO/0L0C& Cit%5/unicipalit% has power of eneral super"ision o"er co#ponent baran a%s to ensure said baran a%s act within the Note* Cit%5/unicipal #a%ors. in coordination with local peace and scope of their prescribed powers and functions& order council which he CGAIR$. shall de"elop an inte rated area5co##unit% public safet% plan e#brancin a priorit% of action Section ##, LGC L1Us throu h appropriate ordinance. #a% and pro ra# thrusts for i#ple#entation b% local PNP stations& roup the#sel"es. consolidate or coordinate their efforts5ser"ices and resources for the purpose co##onl% beneficial to the#& (or Case* ANDA=A "s& RTC :6B $CRA @B@ PNP RD Anda%a sub#itted such underta9in . L1Us. upon appro"al of san unian a list of > eli ibles not includin the na#e of P5Chief Insp& Andres concerned. after public hearin conducted therefor. shall $ar#iento. to /a%or of Cebu Cit%& /a%or 1arcia wants the na#e contribute funds. real estate. eIuip#ent and other propert%. of $ar#iento on the list& Anda%a clai#s $ar#iento not Iualified& appoint5assi n personnel under ter#s a reed upon b% $C held that. /a%or has no power to appoint. has onl% li#ited participatin L1U throu h a #e#orandu# of a ree#ent& power of selectin . one fro# a#on list of eli ibles to be na#ed chief of police& /a%or cannot reIuire Re ional Director to include L1U P0OPL0$J$ AND NON41O'JTAL OR1ANIHATION$ R0LATION$ the na#e of an% officer. no #atter how Iualified. in the list& PeopleJs or ani!ations are bonafide associations of citi!ens with de#onstrated capacit% to pro#ote public interest and with identifiable leadership. #e#bership and structure +Art& NOT0* Unless re"ersed b% President. deputi!ation #a% be DIII. $ection 6> of 6BC? Constitution,& withdrawn5re"o9ed b% Co##ission after consultation with Pro"incial 1o"ernor and con ress#an concerned& Deputi!ation. $ection 6@. Art& DIII of the Constitution EThe ri ht of the people upon ood cause shown. #a% be restored b% President directl% or and their or ani!ations to effecti"e and reasonable le"els of throu h the Co##ission& )ithdrawal5Re"ocation #a% be on social. political and econo#ic decision4#a9in shall not be rounds of freIuent unauthori!ed absence2 abuse of authorit%2 abrid ed& The $tate. b% law. shall facilitate the establish#ent of pro"idin #aterial support to cri#inal ele#ents2 en a in in acts adeIuate consultation #echanis#sF& ini#ical to national securit% or which ne ate effecti"eness of peace and order ca#pai n& NOT0* $ections :;. :> and :@ of L1C i#ple#ent $ection 6@. Art& DIII of the 6BC? Constitution& NOT0* L1U DI$CIPLINAR= PO)0R$ O'0R PNP /0/B0R$ Cit%5/unicipal #a%ors. after due notice and su##ar% hearin . Section #', LGC L1U to pro#ote establish#ents and operation shall i#pose DI$CIPLINAR= P0NALTI0$ for #inor offenses of PO and N1O to beco#e acti"e partners in pursuit of local co##itted b% PNP #e#bes assi ned to their respecti"e autono#%& Kurisdiction as pro"ided in $ection ;6 of RA@B?> +not in"ol"in #oral turpitude. includes. but not li#ited to. si#ple #isconduct. Section #(, LGC L1U #a% enter Koint "entures and such other insubordination. freIuent absences. tardiness. habitual cooperati"e arran e#ents with PO and N1O to en a e in deli"er% drun9enness. a#blin as prohibited b% law,& of certain basic ser"ices. capabilit% and li"elihood proKects& R0LAT0D IT0/$ IN'OL'IN1 L1U CONTAIN0D IN RA @B?> +DIL1 Act Section #,, LGC L1U #a% throu h local chief e-ecuti"e with the of 6BBA,* concurrence of san unian. pro"ide assistance. financial or otherwise to such PO and N1O is for econo#ic. sociall%4oriented. $ection >> Bureau of (ire Protection tas9ed with pre"ention en"iron#ental or cultural proKects to be i#ple#ented within its and suppression of destructi"e fires. in"esti ate all causes of fire. territorial Kurisdiction& file co#plaint with fiscal2 co#posed of pro"incial5district offices and cit%5#unicipal stations2 L1U at cit% and #unicipal le"els shall be responsible for fire protection and "arious e#er enc% ser"ices such as rescue and e"aluation of inKured people at fire4related incidents and in eneral. all fire pre"ention and suppression #easures to secure the safet% of life and propert% of citi!enr%& $ection >@ At least 6 fire station with adeIuate firefi htin facilities and eIuip#ent for pro"incial capitol. cit% and #unicipalit%2 L1U to pro"ide the necessar% site for the fire station&
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