Section 1:

What is a local government?

Why is there a need for a local government?
Between the local ordinances and national legislations,
which shall govern?
-The local ordinances must not go beyond its specified limits
-But because of the autonomous character of the local government,
there are instances where national legislations shall prevail over
local ordinances
*For the cases, try to see the power struggle: between the local
government, legislative and executive
General Provisions:
Section 1:
The territorial and political subdivisions of the RP:
o Provinces
o Cities
o Municipalities
o Barangays
Autonomous regions:
o Muslim Mindanao
o The Cordilleras
1.) Units of local government:
Local Government: a political subdivision of a nation or sate
which is constituted by aw and has substantial control of local
affairs
The local government in a unitary system of government, can
only be an infra-sovereign subdivision of one sovereign nation:
such a system can only mean a measure of autonomy and
decentralization of the functions of government
Section 1: identifies political and territorial subdivisions as
provinces, municipalities, cities and barangays, as well as the
autonomous regions of Mindanao and the Cordilleras
Article XVIII, Section 9: recognizes the existence of subprovinces which may eventually be either converted to
provinces or reverted to the mother province
It is evident that Section 1 does not create these political
subdivisions as legal concepts or as operative functions the
provinces, cities, municipalities and the barangays existed as
statutory creations when the counterpart of Section 1 in the
1973 Constitution was passed

Autonomous regions did not come into existence until the

conditions of Section 18 are fulfilled
The existence of provinces and municipalities was already
acknowledged in the 1935 Constitution
Section 1 however when first enacted in 1973, went a step
further than just mere acknowledgement: the provinces,
municipalities, cities and the barangays have been
fixed as the standard territorial and political
subdivisions of the Philippines
The Constitution only allows two regions: Cordilleras and the
Autonomous Region of Muslim Mindanao
The creation of other autonomous regions, whether by
dividing the Cordilleras or Muslim Mindanao into two or by
creating others outside these two regions, can be
accomplished only by constitutional amendment
The rights of autonomous regions, municipalities,
cities, as well as the barangays to exist as the political
and territorial subdivisions of the state is no longer
just a statutory right but a constitutional right
Neither Section 1 nor any part of the Constitution prescribes
the actual form and structure which individual local
government units must take: these are left by Sections
3, 18 and 20 to legislation
Definitions of each territorial and political subdivisions:
o A province: a political and territorial body corporate
consisting of several municipalities and cities
o Cities and municipalities: political and territorial
bodies composed of barrios and are subordinate to a
province; highly urbanized cities, can be made
independent of a province
o Barangay: basic political and territorial self-governing
body corporate and is subordinate to the municipality or
city of which it forms a part
The 1986 Constitutional Commission chose to retain
the barangay because:
o Its historical significance in Asian history
o Existing laws which use the term
o Contemporary references to it in political news reports
The designation by the 1973 Constitution of provinces, cities,
municipalities and barangays as the political and territorial
subdivisions of the Philippines effected a measure of
institutional stability
The Constitutional framers intended that these political and
territorial subdivisions was going to the direction of a real local
autonomy
Passive action: creation of local autonomous subdivisions

Dynamic aspect: it must be measured in terms of the scope of

the powers given to the local units

Section 2:
Territorial and political subdivisions shall enjoy local autonomy
1.) Local autonomy:
The purpose of Section 2: to give assurance that local
autonomy will not only be for Muslim Mindanao and the
Cordilleras, but for all local units
Local autonomy does not only mean decentralization:
o There is decentralization of administration when the
central government delegates administrative powers to
political subdivisions in order to broaden the base of
government power and in the process to make local
governments more responsive and accountable
and to be more self-reliant; at the same time, it
relieves the central government of the burden of
managing local affairs and enables it to
concentrate on national concerns
o Decentralization of power, on the other hand,
involves an abdication of political power in favour
of local government units declared to be
autonomous. Local governments are then free to
chart its own destiny and shape its future with
minimum intervention from central government
authorities Decentralization of power amounts to
self-immolition,
since
the
autonomous
government becomes accountable not to the
central authorities but to its constituency

Magtajas v. Pryce Properties: the government of Cagayan de

Oro City contended that, under its authority to prohibit
gambling, the city could prevent the PAGCOR from operating a
casino in the city. PAGCOR however, had authority under P.D.
No. 1869 to centralize and regulate all games of chance under
the territorial jurisdiction of the Philippines
o Ruling: Local councils exercise only delegated legislative
powers conferred on them by Congress as the national
lawmaking body. The delegate cannot be superior
to the principal or exercise powers higher than
those of the latter.
o What it is trying to say that the local government,
when it comes to issuing their respective
ordinances and resolutions, can only subject to its
limited powers given to them by Congress. When
it comes to implementing their ordinances within
their city, the ordinance shall prevail due to their
autonomous character

o Municipal corporations owe their origin to, and

derive their powers and rights wholly from
legislature . . . Unless there is some constitutional
limitation on the right, the legislature might, by a
single act, sweep from existence all of the
municipal corporations in the State
o Municipal corporations are considered to be mere
tenants at the will of the legislature
Note: LEGISLATURE SHALL ALWAYS BE SUPERIOR OVER
THE MUNICIPALITIES
Congress retains control of the local government units
although in significantly reduced degree now than under our
previous Constitutions
The power to create still includes the power to destroy
By and large however, the national legislature is still
the principal of the local government units, which
cannot defy its will or modify or violate it
Lina, Jr. v. Pao: this case involved an attempt by the
provincial government to prohibit lotto
While indeed the Constitution has expanded the autonomy of
local governments, they have not been thereby made
imperium in imperio: Congress may still impose limits
on their powers
Commission on Audit may not reduce the allowance given to
judges by local governments: the LGC authorizes local
governments to give allowance to judges and decide how
much this would be
San Juan v. Civil Service Commission: . . . Legislation
mandating greater autonomy for local officials,
national officers cannot seem to let go of centralized
powers. They deny or water down what little grants of
autonomy have so far been given to municipal
corporations
o San Juan was the authority to appoint a Provincial
Budget Officer (PBO). By Executive Order No. 112 the
authority had been given to the Secretary of Budget
Management upon recommendation of the local
executive concerned
o The person recommended by the Provincial Governor,
however, did not possess the necessary qualifications.
Hence, the Budget Secretary appointed somebody else
of his own choice
o In reversing the Budget Secretarys decision, the Court
Ruled that if the recommendee of the local
executive is not qualified, the Secretary must ask

o
o

o
o
o
o
o

for new recommendees with the necessary

eligibility
Moreover, San Juan was aware that there are factors
about life in a local community about which the
central government is not the best judge
It is expected that the PBO is expected to synchronize
his work with the DBM. More important, is the proper
administration of fiscal affairs at the local level;
Provincial and municipal budgets are prepared at
the local level and after completion are forwarded
to the national officials for review. They are
prepared by the local officials who must work
within the constraints of those budgets. They are
not formulated in their inner sanctums of an allknowing DBM and unilaterally imposed on local
governments whether or not they are relevant to
local needs and resources
There should be a genuine interplay, a balancing
of viewpoints, and a harmonization of proposals
from both the local and national officials
It is for this reason that the nomination and
appointment process involves a sharing of power
between the two levels of government
DBM = in charge of giving the provincial governor
a shortlist of the candidates who can work
Provincial governor (LGU) = has the right to
appoint the people in the shortlist
Conclusion of the Court: Our national officials should
not only comply with the constitutional provisions
on local autonomy, but should also appreciate the
spirit of liberty upon which these provisions are
based

Laguna Lake Development Authority v. Court of Appeals: The

SC denied to the municipalities around Laguna Lake the power
to authorize the construction or dismantling of fishpens, fish
enclosures, fish corrals and the like in the Laguna Lake
o The municipalities claimed the authority under general
provisions of the 1991 Local Government Code,
specifically Section 149
o The Laguna Lake Development Authority (LLDA),
however, claimed power under R.A. no. 4850 as
amended by P.D. No. 813
o The Court ruled that the specific power of the LLDA
must prevail over the general power of the local
governments
o Moreover, the Court pointed out that the power given by
the LGC to local governments was a revenue generating
power and not a regulatory power

o Hence, the Court, while denying regulatory authority to

the municipalities, recognized their authority to impose
fees for purposes of generating power
Section 3:
The Congress shall enact a LGC which shall provide for a more
responsive and accountable local government structure
instituted through a system of decentralization with
effective mechanism of recall, initiative, and referendum
Allocate among the different local government units
their powers, responsibilities, and resources
Provide for qualifications, elections, appointment and
removal, term, salaries, powers and functions and
duties of local officials, and all other matters relating
to the organization and operation of the local units
1.) Local Government Code
The structuring of local governments and the allocation of
powers, responsibilities, and resources among the different
local government units and local officials have been placed by
the Constitution in the hands of Congress
R.A. No. 7160 = Local Government Code of 1991
Principle guidelines given by Congress for structuring local
and government units are that the structure must be
responsive and accountable and instituted through a
system of decentralization
The goal of the Congress was to enact a R.A. for the LGU that
would be sensitive to the needs of the locality, accountable to
the electorate of the locality, and freed as much as possible
from central government interference
Sensitivity to the needs of the locality = initiative and
referendum
Initiative and referendum: the legal process whereby the
registered voters of a local government unit, may directly
propose, enact, or amend any ordinance
o The statute authorizes initiative and referendum not just
on ordinances, but also on resolutions arguing that to
narrow the meaning to only ordinances would subvert
the intent of VI, Section 32
Instrument of immediate accountability = an effective system
of recall
Recall: a device or procedure by which a public officials
tenure may be terminated by popular vote
o Encompassed in the notion of popular sovereignty
o Can be applied to both elective and appointive officials
The constitutionality of one method of recall adopted by the
Code was tested in Garcia v. Commission on Elections

Section 70 of the 1991 LGC authorized provinces, cities,

legislative districts, and municipalities to have a preparatory
recall assembly authorized to initiate a recall of an elective
official
The contention of Governor Enrique Garcia was that the right
to recall does not extend merely to the prerogative of the
electorate to reconfirm or withdraw their confidence on the
official sought to be recalled at a special election
Such prerogative necessarily includes the sole and exclusive
right to decide on whether to initiate a recall proceeding or
not
Ruling of the Court: dismissed the case

Section 4:
The President of the Philippines shall exercise general
supervision over local governments
Provinces with respect to component cities and municipalities,
and cities and municipalities with respect to component
barangays shall ensure that the acts of their component units
are within the scope of their prescribed powers and
functions
1.) The President and local governments
The first sentence prescribes the relation between the
President and local governments
Not only was the President given merely supervisory powers
(not control), but he also possessed only so much supervisory
power as might be given to him by statute
President does not exercise the power to of control but only
supervision
He does not dictate what the law should be but merely
ensures that the ordinance is in accordance with the law
2.) Hierarchical relation among local units
Limited to ensuring that the acts of their component units are
within the scope of their prescribed powers and functions
The power is limited to ensuring that the acts of the inferior
local government unit are not ultra vires
It does not authorize the superior unit to substitute its
judgment in discretionary matters for that of the inferior unit
Section 5:
Each local government unit shall have the power to create its
own sources of revenues and levy taxes, fees and charges to
such guidelines and limitations as the Congress may provide
Consistent with the basic policy of local autonomy

Such taxes, fees, and charges shall accrue exclusively to the

local governments

1.) Sources of revenue

Before municipal corporations possessed no inherent power to
tax
Ratification of the 1973 Constitution: taxation powers of
municipal corporations were principally found under the Local
Autonomy Act of 1959, the Assessment Law, the Barrio
Charter, and the respective charters of cities
o These laws consisted of broad grants of power to tax,
but they also carried an extensive enumeration of
revenue powers expressly withdrawn from municipal
corporations
o Although the trend was towards broadening the fiscal
powers of municipal corporations, the fact still remained
that the legislature had absolute discretion to expand or
contract these powers
Other sources of tax: internal revenue allotment (IRA) from the
national government, lease of public utilities, direct national
aid, and miscellaneous sources like tuition fees
Section 5 does not change the doctrine that municipal
corporations do not possess inherent powers of taxation: what
it does is confer on municipal corporations a general power to
levy taxes and otherwise create other sources of revenue
they no longer have to wait for a statutory grant of these
powers
Subject to such guidelines as the Constitution may provide,
consistent with the basic policy of local autonomy
Congress not to impose limitations, but to set guidelines
Congress can provide certain limitations for fiscal autonomy
measured by the requirements of local autonomy: so if those
guidelines interfere with local autonomy, such that the city will
not move because of that regulation, such law could be held
unconstitutional
*Plebiscite = should include the whole province, since they are all
affected (under section 10); since it would also reduce their income;
an interpretation of the political units directly affected
*The government agency that has the power to release the budget
is the DBM
*Local governments have fiscal autonomy, but they are subject to
the limitations provided by Congress (ultra vires)
*Two requisites for the three-term rule:
1.) That the candidate should have been elected for three terms

2.) That the candidate should have fully served the three terms
*Voluntary renunciation = not considered as an interruption for the
unexpired term (this means that if the elected official has resigned,
this means that his resignation shall not stop the running of his
unexpired term)

Section 11:
*Nature of the MMDA = a development authority
-Is it under the local government or executive? A branch of
the executive
-Does it have police power? Penalties can only be granted or
given by Congress

Section 19:
Badua v. CBA: Tribal courts
1.) Facts:
Spouses Leonor and Rosa Badua allegedly own farm land from
which they were forcibly ejected through the decision of the
Cordillera Bodong Administration, with the case entitled David
Quema v. Leonor Badua
The background of this case reveals that David Quema owns
the parcels of land evidenced by Tax Declarations 4997 and
4998. The parcels of land were purchased from Dr. Erotida
Valera
Twenty-two (22) years later, David Quema was able to redeem
the parcels of land through payment of 10,000 to the vendor's
heir, Jessie Macaraeg. Quema was prevented from tilling the
land by Rosa Badua
Prompted by such turn of events, David Quema filed a case in
the Baranggay Council but failed to have the dispute settled.
A judge advised Quema to file his case in the provincial courts.
However, Quema did not, and filed it in the tribal court of the
Maeng Tribe
Due to several warnings from the tribe, spouses Badua filed a
petition for special relief, with the following to be settled:
o a. That the respondents be enjoined from enforcing the
decision of the tribal court in the pending case
o b. The respondents be prohibited from usurping judicial
power
o c. That the legal personality of the Cordillera Bodong
Administration be clarified
o The Baduas also allege that they were denied due
process (or hearing) and that the tribal court has NO
jurisdiction over the case, since neither they nor

the respondent are members of the Maeng tribe.

The respondents contend that the SC has no
jurisdiction over the case since the tribal court is
NOT a part of the judicial system
2.) Issue:
o Whether or not the tribal court has jurisdiction over the case
3.) Ruling:
o No. Tribal courts are not a part of the Philippine judicial
system which consists of the Supreme Court and the
lower courts which have been established by law (Sec.
1, Art. VIII, 1987 Constitution). They do not possess
judicial power. Like the pangkats or conciliation panels created
by P.D. No. 1508 in the barangays, they are advisory and
conciliatory bodies whose principal objective is to bring
together the parties to a dispute and persuade them to make
peace, settle, and compromise. An amicable settlement,
compromise, and arbitration award rendered by a pangkat, if
not seasonably repudiated, has the force and effect of a final
judgment of a court (Sec. 11, P.D. 1508), but it can be
enforced only through the local city or municipal court to
which the secretary of the Lupon transmits the compromise
settlement or arbitration award upon expiration of the period
to annul or repudiate it (Sec. 14, P.D. 1508). Similarly, the
decisions of a tribal court based on compromise or arbitration,
as provided in P.D. 1508, may be enforced or set aside, in and
through the regular courts today.