LOCAL GOVERNMENT

CODE OF THE
PHILIPPINES
CHAPTER 2: GENERAL POWERS
AND ATTRIBUTES OF LOCAL
GOVERNMENT UNIT (Sec. 6-24)
Salient Points of LGC 1991
Chapter 2
Creation & Abolition
Political & Corporate Nature
Governmental Powers
Municipal Liability


CREATION &
ABOLITION
LGC Sec. 6
A local government unit may be
Created, divided, merged, abolished, or its
boundaries substantially altered
Either by law enacted by Congress in the case of
province, city, municipality, or any other
political subdivision, OR
By ordinance passed by the sangguniang
panlalawigan or sangguniang panlungsod
concerned in the case of a barangay located
within its territorial jurisdiction
Subject to such limitations and requirements
prescribed in this Code
The authority to create municipal corporations
is essentially legislative in nature (Pelaez vs
Auditor General (1965))

The enactment of LGC is not a condition sine
qua non for the creation of a municipality,
and before the enactment of such code, the
power remains plenary except that the
creation should be approved by the people
concerned in a plebiscite called for that
purpose (Torralba v. Sibagat (1987))


What is municipal corporation by prescription?

-existence is presumed where the community
has claimed and exercised corporate
functions with knowledge and acquiescence
of the legislature , and without interruption or
objection for a period long enough to afford
title by prescription (Martin, Public Corp.
(1977)

Creation & Conversion of
LGUs
Requirements:
1. In accordance with the criteria set by the
LGC
2. Majority of the votes cast in a plebiscite in
the political
Criteria : (LGC Sec 7)

As a government rule, the creation of LGU or its conversion from one
level to another level shall be based on verifiable indicators of
viability and projected capacity to provide services, to wit:
1. INCOME must be sufficient, based on acceptable standards to
provide for all essential government facilities and services and
special functions commensurate with the size of its population
2. POPULATION total number of inhabitants within the
territorial jurisdiction of the local government unit concerned
3. LAND AREA must be
Contiguous; unless it compromises two or more islands or
is separated by a LGU independent of the others
Properly Indentified by meters and bounds with technical
descriptions; and
Sufficient to provide for such basic services and facilities to
meet the requirements of its populace
For the component city:
Land area: at least100 sq. km. (to be
certified by the LMB)
Population: at least 150,000 (to be
certified by the NSO)
Income: at least 20 M (to be certified
by the DOF)

For the highly urbanized city:
Land area: at least 50 sq. km. (to be
certified by the LMB)
Population: at least 200,000 (to be
certified by the NSO)
Income: at least 50 M (to be certified
by the DOF)

For the municipality:
Land area: at least 50 sq. km. (to be
certified by the LMB)
Population: at least 25,000 (to be
certified by the NSO)
Income: at least 2.5 M (to be certified
by the DOF)

For the barangay:
The only criterion is population of at
least 2,000; provided that barangays in
Metropolitan Manila should have a
minimum population of 5,000.

For provinces and cities, the
income requirement must be
satisfied; and EITHER
population OR territory

..In re Autonomous Regions
(Sec., 15-18, Art X, Consti
(In Muslim Mindanao & Cordilleras)
sharing common and distinctive historical and cultural heritage,
economic and social structures, and other relevant characteristics.
General supervision is vested with the President-to ensure that laws are
faithfully executed.
Congress shall enact organic act for each region that would define:
basic structure of government consisting of the executive
department and legislative department ----both shall be elected and
constituent political unit. Special courts shall likewise be defined in
the organic act.

..In re Autonomous Regions
(Sec., 15-18, Art X, Consti
RA 9054 sec 19 grants ARMM Regional
Assembly the power to create provinces and
cities.

SC held in Bai Sema v COMELEC the Sec. 19 of RA
9054 as VOID. Constitution allows delegation of
creating municipalities and barangays only.

Plebiscite
LGC, Sec 10
No creation, division, merger, abolition or
substantial alteration of boundaries of local
government units shall take effect unless there
is:
Law or ordinance
Approved by a majority of the votes cast in a plebiscite
called for the purpose in the political unit or its units
directly affected
Such plebiscite shall be conducted by the commission on
elections (COMELEC)
-within 120 days from the date of effectivity of the law or
ordinance effecting such action, unless said law or
ordinance fixes another date
Beginning of Corporate
Existence
LGC , Sec 14
When a new local government unit is
created,
Its corporate existence
Shall commence upon the election and
qualification of its chief executive and a
majority of the members of its sanggunian
Unless some other time is fixed therefor by the
law or ordinance creating it


Division and Merger; Abolition
LGC, Sec. 8.
Division and merger of existing local government units shall
comply with the same requirements herein prescribed for
their creation:
Provided, however, That such division, shall not reduce the
income, population, or land area of the local government
unit or units concerned to less than the minimum
requirements prescribed in this Code:
Provided, further, That the income classification of the original
local government unit or units shall not fall below its
current classification prior to such division.
The income classification of local government units shall be
updated within six (6) months from the effectivity of this Code
to reflect the changes in their financial position resulting from
the increased revenues as provided herein.
Effects of Merger
1. Legal existence of LGU to be annexed is
dissolved
2. Laws and ordinance of the annexing LGU
prevails
3. The right of office in the annexed LGU is
terminated
4. Title to property is acquired by the
annexing LGU
5. Debts are assumed by the annexing LGU
[Martin, supra]
Effects of division

1. The legal existence of the original
municipality is extinguished
2. Property, rights and powers are
acquired by
the dividing LGUs [Martin, supra]
LGC, Sec. 9
A local government unit may be abolished:
when its income, population, or land area has been
irreversibly reduced to less than the minimum standards
prescribed for its creation under Book III of this Code, as
certified by the national agencies mentioned in Section 7
hereof to Congress or to the sangguniang concerned, as
the case may be.
The law or ordinance abolishing a local government unit shall
specify the province, city, municipality, or barangay with
which he local government unit sought to be abolished will
be incorporated or merged
When there is no dissolution
1. Non-user or surrender of charter
2. Failure to elect municipal officers
3. Change of sovereignty
4. Change of name
POLITICAL &
CORPORATE
NATURE OF LGU
LGC Sec. 15. Political and Corporate
Nature of Local Government Units
Local government unit created or
recognized under this Code is a
Body politic AND
Corporate endowed with powers to be
exercised by it in conformity with law
Exercise of power (as a):
Political subdivision of the national
government AND
Corporate entity representing the
inhabitants of its territory
GOVERNMENTAL
POWERS
Governmental Powers
A.General Welfare (LGC Sec. 16)
Closure of Roads LGC Sec 21
B. Power to Generate Revenue (LGC Sec. 18)
C.Eminent Domain (LGC Sec. 19)
D.Basic Services & Facilities (LCG Sec 17)
E.Reclassification of Lands (LGC Sec. 20)
F.Corporate Powers (LCG Sec 22)


A. General Welfare
(General Welfare Clause) (Sec 16 LGC)
Every local government shall exercise the:
1. Powers expressly granted
2. Powers necessary implied
3. Powers necessary, appropriate or incidental for
efficient and effective governance
4. Powers essential to the promotion of general welfare
5. Shall ensure and support:
Preservation and enrichment of culture
Promotion of health and safety
Enhancement of the right of the people to a balance ecology
Development of self-reliant scientific and technological
capabilities
Improvement of public morals
Economic prosperity and social justice
Promotion of full employment among residents
Maintenance of peace and order
Preservation of the comfort and convenience of the inhabitants

Police Power the local government has the obligation to
establish and enforce laws for preservation of peace
and order within respective region (Sec. 21 Art X,
Consti)

2 Branches of General Welfare Clause (GWC)
1. The general legislative power which authorizes municipal
councils to make regulations not repugnant to law as may
be necessary to carry into effect and discharge the
powers and duties conferred upon it by law;
2. The police power which authorizes the municipality to
enact ordinances as may be proper and necessary for the
health and safety, prosperity, morals, peace, good order,
comfort and convenience of the municipality and its
inhabitants, and for the protection of their property
Limitations of GWC;
1. The GWC cannot be used to justify an act that is
not specifically authorized by law
2. Powers of the LGU under the GWC
1. Powers expressly granted by the LGU
2. Powers necessary implied therefrom
3. Powers necessary, appropriate, or incidental for its
efficient and effective governance
3. For ordinance to be valid exercise of police
power (Tatel v. Mun. of Virac (1992))
1. Not contrary to the Constitution and/or statute
2. Not unfair or oppressive
3. Must not be partial or discriminatory
4. Not prohibit but may regulate trade
5. General and consistent with public policy
6. Not unreasonable



Closure of Roads (LGC Sec. 21)
What roads are subject? those within jurisdiction of LGU
Local road
Alley
Park
Square
Permanently close or open
Ordinance: Vote of at least 2/3 of all members of the Sanggunian
When necessary, an adequate substitute for the public facility should be
provided
Make provisions for public safety
Temporary close or open
Ordinance
May be done during; actual emergency, fiesta, public rallies, agricultural or
industrial fairs, undertaking of public works and highways, telecommunications
and waterworks projects
Duration is specified in written order by local chief executive
If for athletic, cultural or civic activities; must be officially sponsored, recognized
or approved by LGU






Power to Generate Revenue (LGC Sec. 18)

Local government units shall have the power and authority to generate and
apply resources
Establish an organization responsible for implementation of development
plans, programs, objectives and priorities.

Own sources of revenues (Sec 5, Art X Consti, Sec. 18 LCG) which include:
1. Power to create own sources
2. Levy taxes, fees and charges
1. Shall accrue exclusively for their own use and disposition
2. Limitation: guidelines Congress may provide
3. Just share in the national taxes (Sec. 6, Art x, Consti; Sec 18 LGC)
Determined by law
Automatically and directly released
4. Equitable share in utilization and development of national wealth (Sec 7,
Art X Consti; Sec 18 LGC)
5. Acquire, develop, lease, encumber, alienate, or otherwise dispose of
property
6. Apply resources and assets



Eminent Domain (LGC Sec. 19)
Eminent Domain -- It is the ultimate right of the sovereign power
to appropriate not only public but private property of citizens
within the territorial sovereignty to public purpose [Charles River
Bridge vs. Warren Bridge, (1837)]

Requisites for a Valid Exercise of Eminent Domain (COP-JO)
a. Through the Chief Executive of LGU
b. Acting pursuant to an ordinance
c. For the purposes of:
Public use or welfare
For the benefit or the poor and the landless
d. Payment of just compensation
Amount determined by proper court
Based on fair market value at the time of the taking
e. Valid and definite offer made
Article 35 IRR of LGC

Offer to buy private property for public use 0r
purpose shall be in WRITING. It shall specify
the property sought to be acquired, reasons
for the acquisition, and the price offered.
If the owners accept the offer in its entirety,
contract of sale shall be executed and
payment made

Art 35, IRR LGC
If the owner/s are willing to sell their property
but at a price higher than that offered to
them, the local chief executive shall call them
to a conference for the purpose of reaching
an agreement on the selling price. The
chairman of the appropriation or finance
committee of the Sanggunian, or in his
absence, any member of the Sanggunian duly
chosen as its representative, shall in the
conference. When an agreement is reached
by the parties, a contract of sale shall be
drawn and executed.
Sec. 17. Basic Services & Facilities. LGUs shall
discharge the functions & responsibilities of
national agencies & offices devolved to them;
exercise powers & discharge functions &
responsibilities incidental to efficient &
effective provision of the basic services and
facilities enumerated
Devolved Basic Services
Agriculture
Health
Social services
Environment & natural resources
Public works
Tourism
School building program
Reclassification of Lands (LGC Se. 20)
Reclassification: designation of intended use of land within the
territory. The land is not currently used as agricultural, although it
is classified as such
Requisites for Reclassification of Land:
1. Ordinance passed by Sanguniang Bayan or Panglungsod after
public hearings conducted for the purpose
2. Agricultural land must either:
a. cease to be economically feasible and sound for
agricultural purposes as determined by the
Department of Agriculture, OR
b. have substantially greater economic value for
residential, commercial, or industrial purposes, a s
determined by the Sanggunian concerned
3. Reclassification shall be limited to the percentages of the total
agricultural land area at the time of the passage of the
ordinance as prescribed by the LGC
Corporate Powers (LGC Sec 22)
Every LGU, as a corporation has the following
powers:
a. To have continuous succession in its corporate
name
b. To sue and be sued
c. To have and use a corporate seal
d. To acquire and convey real or personal
property
e. To enter into contracts
f. To exercise such other powers as are granted
to corporations
Limitations: as provided in LGC and other laws
Corporate Seal
LGUs may continue using, modify, or change their
existing corporate seals
Newly established LGUs or those without
corporate seals May create own corporate seals
Registered with the DILG
Change of corporate seal shall be registered with
the DILG
Contract entered into by local chief
executive un behalf of LGU
Prior authorization by Sanggunian
Legible copy of contract posted at a
conspicuous place in the
Provincial capitol or
City, municipal or barangay hall
Authority to Negotiate and Secure Grants (LGC Sec.23)

Who may negotiate:
Local Chief Executive (upon authority of Sanggunian)
What are negotiated
Financial grants or donations in kind in support of basic
services or facilities
From local and foreign assistance agencies
Approval by national agency concerned
No necessity of securing clearance from national agency
IF with national security implications
Shall be approved by national agency concerned
Failure to act on request for approval within 30 days from receipt: deemed approved
Reporting duty: local chief executive shall report to both Houses of
Congress and the President
Nature
Amount
Terms
Within 30 days upon signing of grant
LGC, Sec 24
LGUS and their officials are not exempt
from liability for death or injury of a
persons or damage to property.
References:

Philippine Local Government Code of 1991

Maas, Arthur, ed. Area and Power: A Theory of Local Government. Glencoe,
III.: Free Press.

Tapales, Proserpina D. The Nature and State of Local Government . Public
Administration in the Philippines: A Reader. ed by Bautista, et al. NCPAG-
UP Diliman. 2003

Decentralization for National and Local Development: New York: United
Nations Division for Public Administration. 1962