Module 1: Dynamics of Local Governance (Philippines) PDF

MODULE SUMMARY MODULE 1 DYNAMICS OF LOCAL GOVERNANCE Constitution Supreme law of the land Philippines Democratic and Republican State sovereignty resides in the people and all government authority emanates...

MODULE SUMMARY MODULE 1 DYNAMICS OF LOCAL GOVERNANCE Constitution Supreme law of the land Philippines Democratic and Republican State sovereignty resides in the people and all government authority emanates from them (Section 1, Art. II) Section 4, Art. II Primary duty of the government: Serve and Protect the people Section 5, Art. II The maintenance of Peace and Order, the Protection of Life, Liberty, and Property and Promotion of the General Welfare are essential for the enjoyment by All the People of the blessings of democracy Section 25, Art II The State shall ensure autonomy of local governments Decentralization in 1935 – Philippine Constitution firstly created LGUs (P/C/M) the Philippines 1959 – RA 31590: Barrio Charter Act created barangay 1967 – RA 5185 “ Decentralization Act of 1967” enacted into law 1983 – Batas Pambansa 337 enactment (LGC of 1983) Comprehensive piece of legislation on decentralization 1991 – LGC of 1991 enactment, further strengthened system of decentralization Decentralization – constitutional mandate to ensure local autonomy Form of Government: Federalism - Some measures of decentralization creating a state w/in a state (imperium in imperio) Unitary, Not Federal The autonomy of the LGUs as thereby ensured does not contemplate the fragmentation of the Philippines into a collection of mini-states, or the creation of imperium in imperio. The grant of autonomy simply means that Congress will allow the LGUs to perform certain functions and exercise certain powers in order not for them to be overly dependent on the National Government subject to the limitations that the 1987 Constitution or Congress may impose. Mandanas-Garcia Section 284 Allotment of Internal Revenue Taxes Ruling LGUs shall have a share in the National Internal Revenue taxes based on the collection of the third fiscal year as follows: a. On the 1st year of the effectivity of this Code, 30% b. 2nd year, 35% c. 3rd year, 40% Section 6, Art 10 (1987 Constitution) LGUs shall have a just share, as determined by law, in the national taxes w/c shall be automatically released to them. Section21 – Sources of Revenue The following taxes, fees, and charges are deemed to be national internal revenue taxes: a. Income taxes b. Estate and donor’s taxes c. Value-added taxes d. Other percentage taxes e. Excise taxes f. Documentary stamp taxes g. Such other taxes as are hereafter may be imposed and collected by the BIR LGUs, being mere creatures of the State, are subject to the will of the Congress, their Creator. However, Congress, just like other branches of the government, should bow down to the majesty of the Constitution, which is the Supreme Law of the Land. Congress has sought to carry out the second mandate of Section 6 by enacting Section 282 of the LGC of 1991. The phase national internal revenue taxes engrafted in Section 284 is undoubtedly more restrictive than the term national taxes written in Section 6. As such, Congress has actually departed from the letter of the 1987 Constitution stating that national taxes should be the base from which just share of the LGU comes. Such departure is impermissible. Verba legis non est recedendum (Statute there should be no departure) EO No 2021-138 Committee on Devolution: Chair: SDBM Co-Chair: SILG Members: NEDA, DOF, Presidents of the Leagues of P/C/M, ULAP NGAs and LGUs shall prepare their respective DTPs Section 6, embodies three mandates: 1. The LGUs shall have a just share in the national taxes; 2. The just share shall be determined by law; and 3. The just share shall be automatically released to the LGUs. Customs duties - taxes imposed on the importation and exportation of commodities and merchandise to or from a foreign country. Congress can validly exclude the following from the base amount:  PARTICULARS REASON The share of the affected LGUs in the proceeds of the exclusion is warranted for the reason that such the sale and conversion of former military bases proceeds do not come from a tax, fee or exaction in accordance with R.A. No. 7227; imposed on the sale and conversion The share of the different LGUs in the excise taxes Although such shares involved national taxes as imposed on locally manufactured Virginia defined under the NIRC, Congress had the authority to tobacco products as provided for in Section 3, exclude them by virtue of their being taxes imposed R.A. No. 7171, and as now provided in Section for special purposes. 289of the NIRC; The share of the different LGUs in incremental Although such shares involved national taxes as revenues from Burley and native tobacco defined under the NIRC, Congress had the authority to products under Section 8 of R.A. No. 8240, and as exclude them by virtue of their being taxes imposed now provided for in Section 288 of the NIRC; for special purposes. The share of the COA in the NIRTs as provided in Section 24(3) of P.D. No. 1445 in relation to Section 284 of the NIRC; Other shares of the relevant LGUs in the Although such shares involved national taxes as franchise taxes paid by Manila Jockey Club, Inc., defined under the NIRC, Congress had the authority to and the Philippine Racing Club, Inc. exclude them by virtue of their being taxes imposed for special purposes. The shares of the different LGUs in the excise Section 7, Article X of the 1987 Constitution allows taxes on mineral products, as provided in Section affected LGUs to have an equitable share in the 287 of the NIRC in relation to Section 290 of the proceeds of the utilization of the nation's national LGC; wealth "within their respective areas," to wit: Section 7. Local governments shall be entitled to an equitable share in the proceeds of the utilization and development of the national wealth within their respective areas, in the manner provided by law, including sharing the same with the inhabitants by way of direct benefits. The NIRTs collected by the cities and provinces for such taxes are intended to truly enable a and divided exclusively among the LGUs of the sustainable and feasible autonomous region as ARMM, the regional government and the central guaranteed by the 1987 Constitution. government, pursuant to Section 15 in relation to Section 9, Article IX of R. A. No. 9054 DTP Guide in the monitoring and performance assessment of the LGUs 13 Operative 1. There shall be an effective allocation among the different LGUs of their respective powers, functions, Principles of responsibilities, and resources; Decentralization 2. Established in every LGUs an accountable, efficient, and dynamic organizational structure & operating mechanism that will meet the priority needs & service requirement of its communities 3. Subject to civil service law, rules, and regulations, local officials and employees paid wholly or mainly from local funds shall be appointed or removed, according to merit and fitness 4. LGUs shall have the power to create and broaden their own sources of revenue and the right to a just share in national taxes and an equitable share in the proceeds of the utilization and development of the national wealth w/n their respective areas; 5. Provinces w/ respect to component cities and municipalities and municipalities and cities w/ respect to component barangays shall ensure that the acts of their component units are w/in the scope of their prescribed powers and functions. 6. LGUs may group themselves, consolidate or coordinate their efforts, services & resources commonly beneficial to them 7. The capabilities of LGUs especially municipalities and barangays shall be enhanced, by providing them w/ opportunities to participate actively in the implementation of national programs and projects 8. There shall be a continuing mechanism to enhance local autonomy not only by legislative but also by administrative and organizational reforms 9. LGUs shall share w/ the national government the responsibility in the management and maintenance of ecological balance w/n their territorial jurisdiction. 10. Effective mechanism for ensuring accountability of LGUs to their respective constituents 11. Extension of adequate technical and material assistance to less developed and deserving LGUs 12. The participation of the private sector in local governance, particularly in the delivery of basic services, shall be encouraged to ensure viability of local autonomy  13. National government shall ensure the decentralization contributes to the continuing improvement of the performance of LGUs and the quality of community life. Growth Equity Fund Proposal by the ComDev to Congress to address issues on marginalization, unique development, high poverty incidence, and disparities in the net fiscal capacities of LGUs Capacity DILG through LGA, shall oversee the provision of Capacity Development Interventions for LGUs and develop Development appropriate mechanisms to ensure efficient utilization of government resources on this effort Section 4, Art 10 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. Decentralization of Power and Power Administration Administration Scope Abdication of political power in favor of Central government delegated autonomous LGUs to grant them power to administrative power to LGUs; chart their own destinies and shape their own means broadening the base of future w/ minimum intervention from central governmental powers & making the government. LGUs more responsive & accountable Self-reliant communities Accountability People National government Reason for BARMM and CAR; establishment of a special P/C/M/B are given decentralized Distinction government regime and exercise of the administration to make governance at jurisdictional authority legally accorded to the local level more directly them responsive and effective 2 Groups of LGUs that 1. Decentralization of Power Enjoy Regional Units BARMM & CAR Decentralization 2. Decentralization of Administration Other groups of LGUs (P/C/M/B) Four Categories of 1. Political Decentralization or Devolution – actual transfer of powers and responsibilities Decentralization 2. Administrative Decentralization or Deconcentration – transfer of functions or delegation of authority & responsibility from the national office to regional and local offices (i.e. LSB, LHB, LDC) 3. Fiscal Decentralization – LGUs has the power to create their own sources of revenue in addition to their just share in the national taxes by the National Government 4. Policy or Decision-Making Decentralization – exist if at least one sub-national tier of government has exclusive authority to make decisions on at least one policy issue. Executive Supervision (President) Direct Supervision Indirect Supervision Autonomous Region Province within the Autonomous Region Province outside Autonomous Region CCs HUCs Municipalities ICCs Barangays Administrative Order Delegated powers of the DILG to effectively and efficiently implement the LGC of 1991 (RA 7160) 267 series of 1992 Control - Lays down rules in doing of an act - Impose limitations when there is none imposed by law - Decide for subordinate or change decision - Substitute judgment over that made by subordinate Supervision - Overseeing - Ensure that supervised unit follows laws/rules - Allows interference if supervised unit acted contrary to law Inter-LGU Relations Section 56. Review of CC and Municipal Ordinances or Reso by the Sangguniang Panlalawigan a. Within 3 days after approval, the Secretary to the Sangguniang Panlungsod or Bayan shall forward to the Sangguniang Panlalawigan for review, copies of approved ordinances and the resolutions approving the LDPs and Public Investment Programs formulated by the LDC. Review of Barangay Section 57. review of Barangay Ordinances by the Sangguniang Panlungsod or Bayan Ordinances a. Within 10 days after its enactment, the Sangguniang Barangay shall furnish copies of all Barangay Ordinances to the Sangguniang Panlungsod or Sangguniang Bayan concerned for review as to whether the ordinance is consistent with the law and city or municipal ordinances. Powers of LCEs over Section 28. Powers of LCEs over the units of the PNP units of PNP - The extent of operational supervision and control of LCEs over the police force, fire protection unit, and jail management personnel assigned in their respective jurisdictions shall be governed by the provisions of RA 6975 (DILG Act of 1990), and the rules and regulations issued pursuant thereto. Operational Supervision and Controls - Power to direct, superintend, oversee, and inspect the police units and forces. It shall include the power to employ, and deploy unit or units of the PNP, through the Station Commander, to ensure public safety and effective maintenance of peace and order within the locality (Section 51, RA 6975) Section 17. Basic (a) Local government units shall endeavor to be self-reliant and shall continue exercising the powers and Services and Facilities discharging the duties and functions currently vested upon them.  Barangay 1. Agricultural support services 2. Health and social welfare services 3. Services and facilities related to general hygiene and sanitation 4. Maintenance of KP 5. Maintenance of barangay roads and bridges and water supply systems 6. Infrastructure facilities 7. Information and reading center 8. Satellite or public market, where viable Municipality 1. Extension and on-site research services and facilities related to agriculture and fishery activities 2. Implementation of community-based forestry projects 3. Health services 4. Social welfare services 5. Information services 6. Solid waste disposal system or environmental management systems and services or facilities related to general hygiene and sanitation 7. Municipal buildings, cultural centers, public parks 8. Infrastructure facilities intended primarily to service the needs of the residents 9. Public market, slaughterhouses and other municipal enterprises 10. Public cemetery 11. Tourism facilities and other tourist attractions 12. Sites for police and fire station and substation and the municipal jail Province 1. Agricultural extension and on-site research services and facilities 2. Industrial research and development services 3. Enforcement of forestry laws 4. Health services 5. Social welfare services 6. Provincial buildings, jails, freedom parks and other public assembly areas and similar facilities 7. Infrastructure facilities intended to service the needs of the residents 8. Programs and projects for low-cost housing and other mass dwellings? 9. Investment support services 10. Upgrading and modernization of tax information and collection services 11. Inter-municipal telecommunications services, subject to national policy guidelines 12. Tourism development and promotion programs City All services and facilities of the municipality and province, in addition are the following: 1. Adequate communication and transportation facilities 2. Support for education, police and fire services and facilities (g) The basic services and facilities hereinabove enumerate shall be funded from the share of LGUs in the proceeds of the national taxes and other local revenues and funding support from the national government. Nature of LGUs 1. Public Corporations – organized for the government of a portion of the State 2. Private Corporations – formed for some private purpose, benefit, aimed or end 3. Quasi-Judicial Corporations – private corporations that renders public service or supplies public wants Section 15. Political and Corporate Nature of LGUs - Every LGU created or recognized under this code is a body politic and corporate endowed with powers to be exercised by it in conformity with law. As such, it shall exercise powers as political subdivision of the National Government as a corporate entity representing the inhabitants of its territory. PUBLIC OR GOVERNMENTAL AS TO PRIVATE OR PROPRIETARY FUNCTION FUNCTION Definition Governmental powers are those Proprietary powers, on the other hand, are exercised in administering the powers of exercised for the special benefit and the state of promoting the public welfare advantage of the community and include and they include the legislative, judicial, those which are ministerial, private and public and political. corporate (City of Manila vs. IAC, GR No. 71159, November 15, 1989) Purpose of It is an AGENT OF THE STATE for the the local government unit acts as an AGENT the LGU administration of its powers and OF THE COMMUNITY in the administration of promotion of public welfare. local affairs.  Examples Exercise of local police power, power of Slaughter houses, markets, cemeteries, fiesta taxation, power of eminent domain for celebration, maintenance of parks. public works Public Corporations – Section 22. Corporate Powers- (a) Every local government unit, as a corporation, shall have the following Corporate Powers powers: 1. To have continuous succession in its corporate name; 2. To sue and be sued; 3. To have and use a corporate seal; 4. To acquire and convey real or personal property; 5. To enter into contracts; and 6. To exercise such other powers as are granted to corporations, subject to the limitations provided in this Code and other laws. Levels of Political and Barangay - basic political and territorial self-governing body corporate and is subordinate to the municipality Territorial Subdivision or city of which it forms part Municipalities – consists of groups of barangays Cities – may be classified either HUC, ICC, CC Provinces - political and territorial corporate body consisting of several municipalities and cities Autonomous Region - a political and territorial subdivision that has a certain degree of freedom from the National Government Public Corporations – Component Cities - The inhabitants can vote for provincial candidates and can run for provincial elective LGUs-Cities post and they are under the supervisory power of a province. Ordinance will be reviewed by the Provincial Board ICC - A component city but what makes it independent is because of its charter- its charter prohibits the voters from voting provincial elective post. Because of that, it will be outside the supervisory power of the province regardless of the income. Ordinance will not be reviewed by the Provincial Board. HUC - It is independent from the province by reason of its status. It is so declared as a highly urbanized city and therefore it is outside the supervisory power of the province because the complex and varied problems in an HUC due to bigger population and greater economic activity requires greater autonomy. Public Corporations – Autonomous regions consist of provinces, cities, municipalities, and geographical areas which share common LGUs-Autonomous and distinctive historical and cultural heritage, economic and social strictures, and other relevant Regions characteristics. (Section 15, Article X, 1987 Constitution). Power to Create LGUs SECTION 6. Authority to Create Local Government Units. – - A local government unit may be created, divided, merged, abolished, or its boundaries - substantially altered either : a. by law enacted by Congress in the case of a province, city, municipality, or any other political subdivision, or b. 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. Plebiscite – residents of the political entity who could be economically dislocated by the separation of a portion have the right to vote in said plebiscite. A vote by which the people of an entire country or district express an opinion for or against a proposal. In the Philippines, the plebiscite is applied to an election at which the proposed amendment to or revision of the Constitution is submitted to the people for ratification. Under our constitution, it is also required to secure the approval of the people directly affected, before certain proposed changes affecting local government units may be implemented. (DILG Opinion No. 103, S. 2002) Section 1o, Article 10 - No province, city, municipality, or barangay may be created, divided, merged, abolished, or its boundary substantially altered, except in accordance with the criteria established in the Local Government Code and subject to approval by a majority of the votes cast in a plebiscite in the political units directly affected The congress may, by law, create special metropolitan political subdivisions, subject to a plebiscite as set forth in Section 10 hereof. The component cities and municipalities shall retain their basic autonomy and shall be entitled to their own local executives and legislative assemblies. The jurisdiction of the metropolitan authority that will hereby be created shall be limited to basic services requiring coordination. Creation of an LGU is a Only the Congress and, by authority of law, local legislative councils, can create specific LGs. Creation is a Legislative Act legislative act. The enabling law is referred to as the charter of the LGU. The President or the Executive Branch of the Government has no power to create local governments (Camid vs. Office of the President, GR No. 161414, January 17, 2005) Municipalities created by executive fiat which operated or functioned without interruption for a considerable length of time is considered a municipality by prescription. (Municipality of Jimenez vs. Baz, GR No. 105746, December 2, 1996) Creation and SECTION 7. Creation and Conversion. - As a general rule, the creation of a local government unit or its Conversion conversion from one level to another level shall be based on verifiable indicators of viability and projected capacity to provide services, to wit:  a) Income. - It 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, as expected of the local government unit concerned; b) Population. - It shall be determined as the total number of inhabitants within the territorial jurisdiction of the local government unit concerned; and c) Land Area. - It must be contiguous, unless it comprises two or more islands or is separated by a local government unit independent of the others; properly identified by metes and bounds with technical descriptions; and sufficient to provide for such basic services and facilities to meet the requirements of its populace. Compliance with the foregoing indicators shall be attested to by the Department of Finance (DOF), the National Statistics Office (NSO), and the Lands Management Bureau (LMB) of the Department of Environment and Natural Resources(DENR). CONVERSION PURSUANT TO CONVERSION PURSUANT TO SECTION 7 (LGC) SECTION 453 (LGC) Change refers to the change of LGU from one level to involves reclassification of a city involved another (e.g. a municipality is converted to a into a highly urbanized city. city). Act required There is here a need for an act of Congress done not by an act of Congress but for the creating a new city, which is subject to only by a mere proclamation of the conversion ratification by a majority of the votes cast in a President, subject to the ratification plebiscite called for the purpose. by the qualified voters therein in a plebiscite called fro the purpose. Beginning of The corporate existence of the new city will Corporate existence merely corporate only begin upon the election and continues existence qualification of its chief executive and a majority of the members of its sanggunian, unless some other time is fixed thereby the law creating it per Section 14 of the LGC. Requirements for 1. Law Creation of LG 2. Verifiable Indicators of Viability. Income. Population. Area 2. Plebiscite 3. No conflict arises with any provision of the Constitution Requirement Province HUC CC Municipality Barangay Income 20 Million 50 Million 100M per RA 2.5 Million N/A (inc of IRA) (inc of IRA) 9009 (June 30, (Ave for 2 2001) [exclusiv consecutive e of IRA] preceding years) Population AND 250,000 AND AND 150,000 AND 25,000 2,000 200,000 MM, Special Metrpolitan Political Subdivision and HUCs : 5,000 Land Area OR 2,000km2 OR 100km2 AND 50km2 Contiguous except if an Except: Art 9 , IRR island – with more than one island [Non- Contiguity] For purposes of creation, only the land is material (considered in measuring area) For purposes of creation, when considering in measuring the income:  - GR: Income under the 1991 LGC pertains to all funds of the LGU including the Internal Revenue Allotment (Alvarez vs. Guingona, GR No. 11833. January 31, 1996) - XPN: However, under RA 9009 which deals with the conversion of a municipality to a component city, the funds must be internally-generated. Plebiscite SECTION 10. Plebiscite Requirement. – Requirement - No creation, division, merger, abolition, or substantial alteration of boundaries of local government units shall take effect unless approved by a majority of the votes cast in a plebiscite called for the purpose in the political unit or units directly affected. - Said plebiscite shall be conducted by the Commission on Elections (Comelec) within one hundred twenty (120) days from the date of effectivity of the law or ordinance effecting such action, unless said law or ordinance fixes another date. Creation, division, merger, abolition or substantial alteration of boundaries of LGUs “involve a common denominator” = MATERIAL CHANGE IN THE POLITICAL AND ECONOMIC RIGHTS OF THE LGUs directly affected as well as the people therein. It is precisely for the this reason that the Constitution requires the approval of the people “in the political units directly affected” Election Means by which the people choose their officials for a definite and fixed period and to whom they entrust for the time being as their representatives, the exercise of powers of government (Garchitorena vs. Crescini, 39 Phil 258). It involves the choice or selection of candidates to public office by popular vote. (Taule vs. Santos, 200 SCRA 512) Plebiscite To use people’s voice as a check against the political practice of gerrymandering (Gerrymandering: manipulate the boundaries of (an electoral constituency) so as to favor one party or class) SC said there is no better check against this excess committed by the political representatives of the people themselves than the exercise of direct people power Conducted “in the political units directly affected” It means that residents of the political entity who would be economically dislocated by the separation of a portion have a right to vote in said plebiscite (Miranda v Aguirre, GR No. 133064, Sept 16, 1999) Plebiscite is required in cases of conversion (downgrading) of an independent component city into mere component city of a province. (Miranda v Aguirre, GR No. 133064, Sept 16, 1999) Division and Merger SECTION 8. Division and Merger - 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; and a. That the income classification of the original local government unit or units shall not fall below its current income classification prior to such division. Abolition of LGUs SECTION 9. Abolition of Local Government Units. – - 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 17 hereof to Congress or to the Sanggunian 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 the local government unit sought to be abolished will be incorporated or merged. Delegated by 1. Sangguniang Panlalawigan Congress to 5 Classes 2. Sangguniang Panlungsod of HUCs of Sanggunian 3. Sangguniang Panlungsod of ICCs 4. Sangguniang Panlungsod of CCs 5. Sangguniang Bayan of the Municipalities Naming of LGUs BY SANGGUNIANG PANLALAWIGAN 1. Component cities and municipalities, upon the recommendation of the sanggunian concerned; 2. Provincial roads, avenues, boulevards, thoroughfares, and bridges; 3. Public vocational or technical schools and other post-secondary and tertiary schools; 4. Provincial hospitals, health centers, and other health facilities; and 5. Any other public place or building owned by the provincial government. BY SANGGUNIAN OF HUC/ICC 1. City barangays, upon the recommendation of the sangguniang barangay concerned; 2. City roads, avenues, boulevards, thoroughfares, and bridges; 3. Public elementary, secondary and vocational or technical schools, community colleges and non- chartered colleges; 4. City hospitals, health centers and other health facilities; and 5. Any other public place or building owned by the city government. BY SANGGUNIAN OF CC/ MUNICIPALITIES 1. City and municipal barangays, upon recommendation of the sangguniang barangay concerned; 2. City, municipal and barangay roads, avenues, boulevards, thoroughfares, and bridges; 3. City and municipal public elementary, secondary and vocational or technical schools, post- secondary and other tertiary schools; 4. City and municipal hospitals, health centers and other health facilities; and 5. Any other public place or building owned by the municipal government.  May the LGUs, institutions, places, buildings owned by the government be named after a living person? GR: No. XPN: for a justifiable reason and, in any case, not oftener than once every ten (10) years. Abolition of LGUs REQUIREMENTS: 1. CONSULTATION with Historical Commission 2. RECOMMENDATION of the sanggunian concerned if the name of LGU is changed 3. RECOMMENDATION of the LSB concerned if the name of a public school is changed 4. RECOMMENDATION of the LHB concerned if the name of a public hospital, health center and other health facilities is changed 5. If the name of a LGU or public place, street or structure has historical, cultural or ethnic significance, it shall not be changed UNLESS there is a unanimous vote of the sanggunian concerned for that purpose 6. Plebiscite is required only if the name being changed is that of an LGU 7. The Office of the President, the representative of the legislative district and the Bureau of Posts shall be notified Beginning of SECTION 14. Beginning of Corporate Existence Corporate Existence When a new local government unit is created, its corporate existence shall commence upon: - GR: the election and qualification of its chief executive and a majority of the members of its Sanggunian, - XPN: unless some other time is fixed therefor by the law or ordinance creating it. Qualification for 1. Governor, Vice-governor, or Member Of The Sangguniang Panlalawigan, or Mayor, Vice-mayor or Member Elective Officials (Age of the Sangguniang Panlungsod of HUC – 23 yrs old Requirement) 2. Mayor or VM of ICC, CC or Muni – 21 yrs old 3. PB or SBM – 18 yrs old 4. SK – 18 but not more than 24 yrs Three-Term Limit Rule Sec 8, Art X, 1987 Constitution The term of office of elective local officials except barangay officials which shall be determined by law, shall be 3 years and no such official shall serve for more than 3 consecutive terms. Voluntary renunciation of office for any length of time shall not be considered as an interruption in the continuity of service for the full term for which he has elected. After three consecutive terms, an elective local official cannot seek immediate reelection for a fourth term. The prohibited election refers to the next regular election for the same office following the end of the third consecutive term. Any subsequent election, like a recall election, is no longer covered by the prohibition for two reasons. First, a subsequent election like a recall election is no longer an immediate reelection after three consecutive terms. Second, the intervening period constitutes an involuntary interruption in the continuity of service Rules for the RULE 1 Determination of When a permanent vacancy occurs in an elective position and the official merely assumed the position Involuntary pursuant to the rules on succession under LGC, then his service for the unexpired portion of the term of Interruption to an the replaced official cannot be treated as one full term as contemplated under the subject constitutional Elective Local Official and statutory provision that service cannot be counted in the application of any term limit xxx If the official runs again for the same position he held prior to his assumption of the higher office, then his succession to the said position is by operation of law and is considered an involuntary severance or interruption. RULE 2 An elective official who has served for 3 consecutive terms and who did not seek the elective position for what could be his 4th term but later won in a recall election is deemed to have had an interruption in the continuity of the service. For he had become in the interim, i.e. from the end of the 3rd term up to the recall election, a private citizen. RULE 3 The abolition of an elective local office due to the conversion of a municipality to a city does not, by itself, work to interrupt the incumbent official’s continuity of service. RULE 4 Preventive suspension is not a term-interrupting event as the elective officer’s continued stay and entitlement to the office remain unaffected during the period of suspension, although he is barred from exercising the functions of his office during this period. RULE 5 When a candidate is proclaimed as winner for an elective position and assumes office, his term is interrupted when he loses in an election protest and is ousted from office, thus disenabling him from serving what would otherwise be the unexpired portion of his term of office had the protest been dismissed. The break or interruption need not be for a full term of 3 yrs or for the major part of the 3 yr term; an interruption for any length of time, provided the cause is involuntary, is sufficient to break the continuity of service. RULE 6  When an official is defeated in an election protest and said decision becomes final after said official had served the full term for said office, then his loss in the election contest does not constitute an interruption since he has managed to serve the term from start to finish. His full service, despite the defeat, should be counted in the application of term limits because the nullification of his proclamation came after the expiration of the term Powers, Duties, and Governor and City Mayor Functions of LCEs 1. Exercise general supervision and control over all PPSAs; 2. Enforce all laws and ordinances relative to the governance of the province and the exercise of its corporate powers; 3. Initiate and maximize the generation of resources and revenues; 4. Ensure the delivery of basic services and provision of adequate facilities; 5. Exercise such powers and perform such other duties as may be prescribed by law or ordinance; 6. Power of appointment 7. Licensing power of drug stores; 8. Authority to file lawsuits 9. Power of investigation and discipline; 10. development planner and implementor; Municipal Mayor 11. Exercise general supervision and control over all PPSAs; 12. Enforce all laws and ordinances relative to the governance of the province and the exercise of its corporate powers; 13. Initiate and maximize the generation of resources and revenues; 14. Ensure the delivery of basic services and provision of adequate facilities; 15. Exercise such powers and perform such other duties as may be prescribed by law or ordinance; 16. Power of appointment 17. Power of investigation and discipline; 18. development planner and implementor; Punong Barangay 1. Enforce all laws and ordinances which are applicable within the barangay; 2. Ensure the delivery of basic services as mandated under Section 17 3. Upon approval by a majority of all the members of the SB, appoint or replace the barangay treasurer, the barangay secretary, and other appointive barangay officials; 4. In coordination with the BDC, prepare the annual executive and supplemental budgets of the barangay; 5. Enforce laws and regulations relating to pollution control and protection of the environment; 6. Administer the operation of the KP; 7. Exercise general supervision over the activities of the SK; 8. Negotiate, enter into, and sign contracts for and in behalf of the barangay, upon authorization of the SB; May a Punong Yes. Barangay make arrests and detain A punong barangay is a peace officer in the barangay and is considered under the law as a person in authority. persons? (PD 528) He may make arrests and detain persons with legal limits but if the detention is without legal grounds, the punong barangay may be charged for arbitrary detention. May a Punong Yes, subject to 4 conditions: Barangay carry a 1. the right must be exercised in the performance of peace and order functions; firearm within his 2. the right must be exercised within the territorial jurisdiction of the Punong Barangay; territorial 3. the firearm must be necessary in the exercise of official functions; and jurisdiction? 4. the exercise of the right is subject to appropriate rules and regulations. Powers, Duties and Vice Gov, VM, CVM Functions of Vice 1. Be the presiding officer of the sangguniang panlalawigan and sign all warrants drawn on the provincial LCEs treasury for all expenditures appropriated for the operation of the sangguniang panlalawigan; 2. Appoint all officials and employees of the SP 3. Assume the office of the municipal mayor for the unexpired term of the latter in the event of permanent vacancy; 4. Exercise the powers and perform the duties and functions of the municipal mayor in cases of temporary vacancy 5. Exercise such other powers and perform such other duties and functions as may be prescribed by law or ordinance May the Vice-Mayor Yes. enter into a contract on behalf of the LGU? Under Sec, 456, RA 7160, there is no inherent authority on the part of the City VM to enter into contracts on behalf of the LGU, unlike that provided for the City Mayor. Thus, the authority of the VM to enter into contracts on behalf of the city was strictly circumscribed by the ordinance granting it Powers and Functions Sangguniang Panlalawigan Panlungsod, Bayan of the Sanggunian 1. Approved ordinance & pass resolutions 2. Generate and maximize the use of resources and revenue 3. Regulate activities relative to the use of land, buildings and structures  4. Grant franchises, enact ordinances authorizing the issuance of permits or licenses, or enact ordinances levying taxes, fees and charges 5. Create positions & fix the salaries, wages, allowances & other benefits 6. Approved ordinances which shall ensure the efficient and effective delivery of basic services 7. Review all ordinances approved by the Sanggunian Panlungsod (Barangay in case of City and Muni) and the Eos issued by Mayor (PB for Muni and City) Sangguniang Barangay 1. Enact tax and other revenue measures authorized by the code 2. Regulate and charge fees for the use of barangay facilities 3. Assist in the establishment of cooperatives 4. Provide compensation, allowance, per diems, and travel expenses for barangay officials 5. Authorize direct purchase by the BT of not more than 1,000 worth of items 6. Prescribe fines of not more than 1,000 for violations of barangay ordinances 7. Assist in the establishment of cooperatives 8. Provide compensation, allowances, per diems, and travel expenses for barangay officials Can the Sangguniang Yes. Barangay increase the honoraria to their However, increase of honoraria or compensation awarded by the Sangguniang Barangay for their elective elective members? members cannot take effect until after their term is over. Criterion in the grant Section 458, par. (a)(1)(xi), of RA 7160, the law that supposedly serves as the legal basis of LBC 55,... allows the of allowance to grant of additional allowances to judges "when the finances of the city government allow." The said provision national government does not authorize setting a definite maximum limit to the additional allowances granted to judges. officials assigned in the LGU The President or any of his or her alter egos cannot interfere in local affairs as long as the concerned local government unit acts within the parameters of the law and the Constitution. Powers, Duties, and 1. Formulate a three (3)-year rolling plan, which shall be known as the Comprehensive Barangay Youth Functions of the SKs Development Plan; 2. Approve the annual budget which is the annual slice of the Annual Barangay Youth Investment Program; 3. Promulgate resolutions necessary to carry out the objectives of the youth in the barangay in accordance with the Comprehensive Barangay Youth Development Plan 4. Initiate and implement, in coordination with any national government agency and/or any private or nongovernment institution, programs and projects designed to promote general welfare, development, and empowerment of the youth; 5. Hold fund-raising activities which are in line with the Comprehensive Barangay Youth Development Plan, the proceeds of which shall be tax-exempt and shall accrue to the general fund of the Sangguniang Kabataan; 6. Create regular and special committees and such other bodies as it may deem necessary to effectively carry out its programs and activities; 7. Submit the annual and end-of-term program accomplishments and financial reports to the Sangguniang Barangay and present the same during the Katipunan ng Kabataan assembly, copy furnished the Office of the Local Government Operations Officer and Local Youth Development Council (LYDC); 8. Partner with the LYDC in planning and executing projects and programs of specific advocacies; 9. Adopt and implement a policy on full public disclosure of all its transactions and documents involving public interest; and 10. Exercise such other powers and perform such other functions as may be prescribed by law or ordinance, or delegated by the Sangguniang Barangay or the Commission. Scope of the 1. Authority to appoint employees whose salaries are charged against the provincial/city/municipal Appointing Power of funds the Gov and Mayor 2. Authority to appoint employees of the sanggunian, as well as those of the office of the vice- governor/vice-mayor whose salaries are paid out of the funds appropriated for the sanggunian Appointment of Local Governor/Mayor appoints the Department Heads with the concurrence of the majority of all sanggunian Department Heads members (greater majority) The sanggunian has 15 days to act on the appointment. The 15-day period should be construed as calendar days. When the law does not speak categorically of working days, it shall be understood to mean calendar days. There is nothing in Sec. 443 (d), RA 7160 that expressly provides that the 15-day requirement for submission of appointments by the department heads for concurrence of the sanggunian shall correspond to the actual and special sessions of the Sanggunian. The Vice-Gov/VM appoints the Secretary to the Sanggunian Employment or hiring The hiring does not need the approval of the sanggunian to validate the appointment of such of emergency or employees. However, the local project should not exceed 6 months (DILG OPINION 2, s. 2002 citing Sec. 77, casual employees for RA 7160) local projects Midnight The prohibition on midnight appointments only applies to presidential appointments. Appointments Barangay CATEGORIES of Brgy Appointive Officials: Appointments 1. Mandatory Positions (Secretary and Treasurer); and 2. Other positions created by the sangguniang barangay pursuant to Sec. 387 (b), RA 7160 Grounds may the SB determines whether or not the appointee of the PB possesses all the qualifications of a barangay Sangguniang secretary and barangay treasurer Barangay not concur to the Appointment When the appointee possesses all the qualifications, any withholding of concurrence by the SB shall be considered whimsical, arbitrary, and unjustifiable, and would thus be tantamount to abuse of authority Effect of appointment In the exigency of public service, the appointee pending compliance with the condition of concurrence, shall be pending concurrence allowed to discharge and perform the powers, duties and responsibilities pertaining to the office and they shall by SB be considered to be holding a temporary appointment Period for the SB to act SB shall act on the appointment within 15 working days from receipt of the appointment as submitted by the on the appointment PB (SEC. 5, ART 2, DILG MC 2002-150) Effects of SBs non- It does not operate as automatic concurrence, but it rather opens the SB officials to possible administrative concurrence to the liabilities for abuse of authority, especially if the non-concurrence is based on matters other than that the appointment within 15 appointee possesses some disqualifications to hold public office (DILG OPINION 64, S. 2004) WD Nepotism No person shall be appointed in the LG career service if he is related within the 4th civil degree of consanguinity or affinity to the appointing or recommending authority Nepotism Rule covers all kinds of appointment whether original, promotional, transfer and reemployment regardless of status including casuals and contractual except consultants. The Mayor may appoint his sister-in-law/uncle as city administrator since the position is primarily confidential in nature and it is exempted from operation of the law on nepotism. Appointment Ban (1 General Rule: Candidates who lost in any election may not be appointed to any office in government or any year) GOCC or in any of their subsidiaries within one year after such election. Exception: Losing barangay candidates One-year Appointment Ban is also applicable to a losing candidate in regular election who will be appointed to a vacated Sanggunian bayan position within 1 year from such election. Appointment Ban General Rule. No appointment shall be issued during the period of 45 days before a regular election. during Election Period Exception: Prior authority of the COMELEC Exception to the Exception: In case of urgent need, provided that notice of the appointment shall be given to the COMELEC within 3 days from the date of the appointment Conditions to apply Exception: Prior authority of the COMELEC 1. Position is essential to the proper functioning of the office; and 2. Filling up shall not in a manner that may influence the election. Will the appointment ban during election period apply to an appointment to an elective post? - No. Appointment to fill up vacancy in elective position is outside the contemplation of the election ban. - The permanent vacancy for councilor exists and its filling up is governed by the Local Government Code while the appointment referred to in the election ban provision is covered by the Civil Service Law. Ban on Holding Dual GR: While an official is holding a Local Government office, he cannot be appointed or designated in any Positions capacity to any public office or position. Exceptions: 1. Allowed by law or 2. justified by the primary functions of the office or position (ex. Ex-officio positions) Ban on Double GR: No local official shall receive additional, double, or indirect compensation Compensation Exception: Authorized by law Nota Bene: Pensions or gratuities shall not be considered as additional, double, or indirect compensation Resignation - An act of giving up or the act of an officer by which he declines his office and renounces the further right to use it. It is an expression of the incumbent in some form, express or implied, of the intention to surrender, renounce, and relinquish the office and the acceptance by competent and lawful authority - For resignation to be deemed effective, it must be accepted or acted upon by higher or competent authorities w/n 15 days from receipt thereof. - A resignation of an elective official be deemed effective upon acceptance of the approving authority. ELECTIVE OFFICIAL CONCERNED APPROVING AUTHORITY Governor and Vice-Governor President HUC/ICC Mayor and Vice-Mayor President Governor Component and Municipal Mayors and Vice-Mayors Sangguniang Members Sanggunian concerned Barangay Officials City/Municipal Mayor - Acceptance letter has to be acted upon by the Sanggunian as a collegial body (Sanggunian resignation) - To constitute a complete and operative act of resignation, the officer or employee must show a clear intention to relinquish or surrender his position - A resignation is deemed accepted if not acted upon by the authority concerned w/n 15 days from receipt thereof. - The resignation of the Sanggunian member be deemed accepted upon presentation before an open session of the Sanggunian concerned and duly entered in its records. It shall not apply to Sanggunian member who are subject to recall elections or cases where existing laws prescribed the manner acting upon such resignation. - Resignation is an act of voluntary renunciation for w/c the latter is not considered an interruption in the continuity of service for the full term for w/c the elective official was elected. Leave of Absence - Right granted to officials and employees not to report for work w/ or w/o pay as may be provided by law and as the rules prescribed in Rule XVI thereof. LOCAL ELECTIVE OFFICIALS APPROVING AUTHORITY Governor and HUC/ICC Mayor President or his duly authorized representative Vice-Governor and City/Municipal Vice- Local Chief Executive concerned Mayor Sanggunian Members and sanggunian Vice-Governor or City/Municipal Vice-Mayor employees Component City Mayor and Municipal Governor Mayor Punong Barangay City/Municipal Mayor - The nature of work of elective officials should not be confined and limited to attending sessions. They are also considered on call anytime of the day. If they will be absent during their session for personal reasons, they have to file their respective leave of absence. Purpose of LnB 1. To determine the representation of the Liga in the sanggunians; and 2. To ventilate, articulate and crystallize issues affecting barangay government administration and to secure, through proper and legal means, solutions thereto. Purpose of League of - ventilate, articulate and crystallize issues affecting municipal government administration, and Municipalities to secure, through proper and legal means, solutions thereto. Section 44. Permanent Vacancy when automatic succession do not apply: Permanent vacancy VACANT POSITION WHO WILL APPOINT? occurs in the office of the governor or mayor, the vice-governor or vice-mayor Sangguniang Panlalawigan and President, through the Executive Secretary the Sangguniang Panlungsod of HUC and ICC Sangguniang Panlungsod of CC Governor and the Sangguniang Bayan Sangguniang Barangay City Or Municipal Mayor upon Recommendation of the Sangguniang Barangay Concerned Permanent Vacancies in the Office of the Governor, Vice-Gov, Mayor, and Vice-Mayor Section 44. If a permanent vacancy occurs in the office of the governor or mayor, the vice-governor or vice-mayor concerned shall become the governor or mayor. If a permanent vacancy occurs in the offices of the governor, vice-governor, mayor, or vice-mayor, the highest ranking sanggunian member or, in case of his permanent inability, the second highest ranking Sanggunian member, shall become the governor, vice-governor, mayor or vice-mayor, as the case may be. Subsequent vacancies in the said office shall be filled automatically by the other Sanggunian members according to their ranking as defined herein. (b) If a permanent vacancy occurs in the office of the punong barangay, the highest ranking Sangguniang bayan Member or, in case of his permanent inability, the second highest ranking Sanggunian member, shall become the punong barangay. (c) A tie between or among the highest ranking Sanggunian members shall be resolved by the drawing of lots (d) The successors as defined herein shall serve only the unexpired terms of their predecessors. For purposes of this Chapter, a permanent vacancy arises when an elective local official fills a higher vacant office, refuse to assume office, fails to qualify, dies, is removed from office, voluntarily resigns, or is otherwise permanently incapacitated to discharge the functions of his office. For purposes of succession as provided in this Chapter, ranking in the Sanggunian shall be determined on the basis of the proportion of votes obtained by each winning candidate to the total number of registered voters in each district in the immediately preceding local elections. Section 45. a) Permanent vacancies in the Sanggunian where automatic successions provided above do not apply shall be Permanent Vacancies filled up by appointment in the following manner: in the Sanggunian 1. The President through the Executive Secretary, in the case of the Sangguniang panlalawigan and the Sangguniang panlungsod of HUCs and ICCs 2. The governor, in the case of Sangguniang panlungsod of CCs and the Sangguniang bayan 3. The city or municipal mayor, in the case of sangguniang barangay, upon recommendation of the sangguniang barangay concerned b) Except from the Sangguniang barangay, only the nominee of the political party under which the Sanggunian member concerned had been elected and whose elevation to the position next higher in rank created the last vacancy in the sanggunian shall be appointed in the manner herein above provided. The appointee shall come from the same political party as that of the Sanggunian member who caused the vacancy and shall serve the unexpired term of the vacant office. In the appointment herein mentioned, a nomination and a certificate of membership of the appointee from the highest official of the political party concerned are conditions sine qua non, and any appointment w/o such nomination and certification shall be null and void ab initio and shall be a ground for administrative action against the official responsible therefor. c) In case the permanent vacancy is caused by the Sanggunian member who does not belong to any political party, the LCE shall, upon recommendation of the Sanggunian concerned, appoint a qualified person to fill the vacancy d) In case of vacancy in the representation of the youth and the barangay in the Sanggunian, said vacancy shall be filled automatically by the official next in rank of the organization concerned. Section 46. Temporary a) When the governor, city or municipal mayor, or punong barangay is temporarily incapacitated to perform his Vacancy in the Office duties for physical or legal reasons such as, but not limited to, leave of absence, travel abroad, and of the LCE suspension from office, the vice-governor, city or municipal vice-mayor, or the highest ranking Sangguniang barangay member shall automatically exercise the powers and perform the duties and functions of the LCE concerned, except the power to appoint, suspend, or dismiss employee which can only be exercised if the period of temporary incapacity exceeds 30 working days. b) Said temporary incapacity shall terminate upon submission to the appropriate Sanggunian of a written declaration by the LCE concerned that he has reported back to office. In cases where the temporary  incapacity is due to legal cause, the LCE concerned shall also submit necessary documents showing that said legal causes no longer exist. c) When the incumbent LCE is traveling w/in the country but outside his territorial jurisdiction for a period not exceeding 3 consecutive days, he may designate in writing the OIC of the said office. Such authorization shall specify the powers and functions that the local official concerned shall exercise in the absence of the LCE except the power to appoint, suspend, or dismiss employees. d) In the event, however, that the LCE concerned fails or refuses to issue such authorization, the vice-governor, the city or the municipal vice-mayor, or the highest ranking Sangguniang barangay member, as the case may be, shall have the right to assume the powers, duties, and functions of the said office on the 4 th day of absence of the said LCE, subject to the limitations provided in the subsections (c) hereof. e) Except as provided above, the LCE shall in no case authorize any local official to assume the power, duties, and functions of the office, other than the vice governor, the city or municipal vice-mayor, or the highest ranking Sangguniang barangay member, as the case may be. s Police Power Section 16, LGC of 1991: SECTION 16. General Welfare. - Every local government unit shall exercise the powers expressly granted, those necessarily implied there from, as well as powers necessary, appropriate, or incidental for its efficient and effective governance, and those which are essential to the promotion of the general welfare. Within their respective territorial jurisdictions, local government units shall ensure and support, among other things, the preservation and enrichment of culture, promote health and safety, enhance the right of the people to a balanced ecology, encourage and support the development of appropriate and self-reliant scientific and technological capabilities, improve public morals, enhance economic prosperity and social justice, promote full employment among their residents, maintain peace and order, and preserve the comfort and convenience of their inhabitants. Power of Eminent Section 19, LGC of 1991: Domain A local government unit may, through its chief executive and acting pursuant to an ordinance, exercise the power of eminent domain for public use, or purpose, or welfare for the benefit of the poor and the landless, upon payment of just compensation, pursuant to the provisions of the Constitution and pertinent laws: Provided, however, That the power of eminent domain may not be exercised unless a valid and definite offer has been previously made to the owner, and such offer was not accepted: Provided, further, That the local government unit may immediately take possession of the property upon the filing of the expropriation proceedings and upon making a deposit with the proper court of at least fifteen percent (15%) of the fair market value of the property based on the current tax declaration of the property to be expropriated: Provided, finally, That, the amount to be paid for the expropriated property shall be determined by the proper court, based on the fair market value at the time of the taking of the property. - It is a Legislative Act and a delegated power from the Congress but subject to limitations: - Due process requirement - Just compensation requirement Section 9, Article III of the 1987 Constitution provides that "no private property shall be taken for public use without just compensation." - The enactment of an ordinance to expropriate property must be preceded by a valid and definite offer to but petitioner’s property as required by Sec. 19, RA 7160. - Otherwise the ordinance is constitutionally infirm for being violative of the petitioners’ right to due process Legality of Entry by the 1. Filing of complaint for expropriation sufficient in form and substance State to the private 2. Deposit of amount equivalent to 15% of fair market value (FMV) of the property to be expropriated based on property Requisite the current tax declaration Power to Reclassify Sanggunian has the Power to Reclassify Land but NOT to Convert. Lands Conversion – the act of changing the current use of a piece of agricultural land into some other use as approved by the DAR. - A mere Reclassification of Agricultural Land does not automatically allow a landowner to change its use and thus cause the ejectment of the tenants. Land Use Plan - Primarily and dominant basis for the future use of land resources - Through Zoning Ordinance Zoning Ordinance: A o Logically arranges, prescribes, defines and apportions a given political subdivision into specific land Police Power Measure uses as present and future projection of needs (GANCAYCO v CITY GOVERNMENT OF QUEZON CITY, October 11, 2011) o The power to establish zones for industrial, commercial and residential uses is derived from the police power itself and is exercised for the protection and benefit of the residents of a locality (HEIRS OF LUNA v AFABLE, January 23, 2013) Power to Close Roads SEC. 21, RA 7160  GR: Local Roads used for public service are considered public property under the absolute control of Congress. As such, LGUs have no authority to control or regulate their use. EXCEPTION: Section 21 delegates to LGUs some control of local roads. SEC. 21, RA 7160 (a) A local government unit may, pursuant to an ordinance, permanently or temporarily close or open any local road, alley, park, or square falling within its jurisdiction: Provided, however, That in case of permanent closure, such ordinance must be approved by at least two-thirds (2/3) of all the members of the Sanggunian, and when necessary, an adequate substitute for the public facility that is subject to closure is provided. (b) No such way or place or any part thereof shall be permanently closed without making provisions for the maintenance of public safety therein. xxx Provided, however, That no freedom park shall be closed permanently without provision for its transfer or relocation to a new site. (c) Provided, however, That no national or local road, alley, park, or square shall set temporarily closed for athletic, cultural, or civic activities not officially sponsored, recognized, or approved by the local government unit concerned. (d) Any city, municipality, or barangay may, by a duly enacted ordinance, temporarily close and regulate the use of any local street, road, thoroughfare, or any other public place where: 1. shopping malls, Sunday, flea or night markets, or shopping areas may be established and 2. where goods, merchandise, foodstuffs, commodities, or articles of commerce may be sold and dispensed to the general public. Temporary Closure of 1. actual emergency, or local roads, alley, 2. fiesta celebrations, park, or square during: 3. public rallies, 4. agricultural or industrial fairs, or an 5. undertaking of public works and highways, telecommunications, and waterworks projects, the duration of which shall be specified by the local chief executive concerned in a written order: Corporate Powers Section 22. Corporate Powers. - b. Local government units may continue using, modify, or change their existing corporate seals: Provided, That newly established local government units or those without corporate seals may create their own corporate seals which shall be registered with the Department of the Interior and Local Government: Provided, further, That any change of corporate seal shall also be registered as provided hereon. c. Unless otherwise provided in this Code, no contract may be entered into by the local chief executive in behalf of the local government unit without prior authorization by the sanggunian concerned. A legible copy of such contract shall be posted at a conspicuous place in the provincial capitol or the city, municipal or barangay hall. d. Local government units shall enjoy full autonomy in the exercise of their proprietary functions and in the limitations provided in this Code and other applicable laws, Loan Agreement A loan agreement entered into by the Governor without prior authorization from the sanggunian is UNENFORCEABLE. However, the Sangguniang’s failure to impugn the contract’s validity despite knowledge of its infirmity is an implied ratification that validates the contract. Power of Taxation Section 5, Art X 1987 Constitution - Each LGU shall have the power to create their own sources of revenue and to levy taxes, fees and charges subject 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 LG Section 129, LGC of 1991 - Each LGU shall exercise its power to create its own sources of revenue and to levy taxes, fees and charges subject to the provisions herein, consistent with the basic policy of local autonomy. Such taxes, fees and charges shall accrue exclusively to the LGUs Section 132, LGC of 1991 - The power to impose a tax, fees and charges or to generate revenue under this Code shall be exercised by the sanggunian of the LGU concerned through an appropriate ORDINANCE Inherent Limitations 1. Situs of Taxation - Taxation may be exercised only within the territorial jurisdiction of the taxing authority. It is limited to persons and property within and subject to its jurisdiction. 2. Public Purpose – The proceeds of tax must be used (a) for the support of the State; or (b) for some recognized objective of the government or to directly promote the welfare of the community. 3. International Comity - It refers to the respect accorded by nations to each other because they are sovereign equals. Thus, the property or income of a foreign state may not be the subject of taxation by another State. 4. Non-delegability of power - The power to tax is exclusively vested in the legislative body, being inherent in nature. Hence, it may not be delegated. 5. The government is exempted from taxation Sources of Income Non-traditional Sources - Loans, Credits, and Other Forms of Indebtedness Purpose/s: financing local infrastructure and other socio-economic development projects in accordance with the approved local development plan and public investment program; and stabilizing local finances Traditional Sources of Income (Province) a. Externally generated - Share in the national internal revenue allotment -23% Formula: Population – 50%; Land Area – 25%; Equal Sharing – 25% - Share of LGUs in the national taxes Province: 23% Cities: 23% Municipalities: 34% Barangays: 20% - Share in the proceeds derived from the development and utilization of the national wealth within the province (20%) CC/Mun: 45% Barangay: 35% 2 or more CC/Mun/Brgys: Population: 70% HUC/ICC: 65% Brgy: 35% b. Internally Generated - Tax on Transfer of RP Ownership: not more than 50% of 1% of the total consideration of FMV, whichever is higher; CARP – Exempt - Tax on Business of Printing and Publication: not more than 50% of 1% Gross Receipt for preceding CY; Newly started business: not more than 1/20 of 1% of capital investment Receipt from DepEd prescribed textbooks printing – Exempt - Franchise Tax – not more than 50% of 1% of the Gross Receipt for the preceding CY Newly started business: not more than 1/20 or 1% of capital investment - Tax on Sand, Gravel and Other Quarry Resources - not more than 10% of FMV per cubic of FMV per cubic meter Province: 30% CC/Mun: 30% Brgy: 40% - Professional Tax – not more than Php 300.00 (for each professional practice) i. Every person legally authorized to practice his profession shall pay the professional tax to the province where he practices his profession or where he maintains his principal office in case he practices his profession in several places: provided however, that such person who has paid the corresponding professional tax shall be entitled to practice his profession in any part of the Philippines w/o being subjected to any other national or local tax, license, or fee for the practice of such profession. Xxx - Amusement Tax – not more than 10% of Gross Receipt from admission fees (amended by RA 9640, May 21, 2009) Province: 50% Mun: 50% - Annual Fixed Tax for Every Delivery Truck or Van of Manufacturers or Procedures, Wholesalers of, Dealers, or Retailers in Certain Products – not more than Php 500.00 Exempt – tax on peddlers imposed by municipalities - Real Property Tax – 35% share on the Basic RPT Annual ad valorem tax: a levy on real property determined on the basis of a fixed proportion of the value of the property province not exceed 1% of the AV; cities and mm mun not exceed 2% of the AV Special levies: SEF 1% and 50% share; tax on idle lands not exceed 5%; special cost of the projects/improvements (including Muni outside MM) Exempt from RPT 1. RP owned by the Rep. of the Phil or any political subdivision 2. Charitable institutions, churches, parsonages or convents appurtenant thereto, mosques, non-profit or religious cemeteries and all lands, buildings and improvements actually, directly and exclusively used for religious, charitable, or educational purposes 3. All M& E that are actually, directly and exclusively used by local water districts and GOCC engaged in the supply distribution of water and/or generation and transmission of electric power. 4. All RP owned by duly registered cooperatives as provided for under RA 6938 5. M&E used for pollution control and environmental protection 6. Zero-assessment level – residential lots with FMV not to exceed P175T Special Assessment Demand to the RP owner to contribute to the cost of improving the locality shouldered by the LGU that resulted to his benefit, not exceeding 60% of the actual cost including the cost of acquiring land and other RP in connection thereof. Classes of RO for 1. Residential Assessment Purpose  2. Agricultural 3. Commercial 4. Industrial 5. Mineral 6. Timberland 7. Special Sources of Income A. Externally Generated (Municipality) 1. Share in the national internal revenue allotment – 34% Formula: population – 50%; Land Area – 25%; Equal Sharing – 25% 2. Share in the proceeds derived from the development and utilization of the national wealth w/in the municipality Province – 20% Barangay 35% 2 or more Mun/Brgy Population – 70% Land Area – 30% 3. RPT Share – 4-% 4. SEF Tax Share – 50% 5. Sand, Gravel and Other Quarry Resources Share – 30% 6. Amusement Tax Share – 50% B. Internally Generated 1. Business Tax 2. Fees and Charges on Business and Occupation 3. Fees for Sealing and Licensing of Weights and Measures 4. Fishery Rentals, Fees and Charges 5. Community Tax Sources of Income A. Externally Generated (City) 1. Share in the National internal revenue allotment – 235 Formula: population – 50%; land area – 25%; equal sharing – 25% 2. Share in the proceeds derived from the development and utilization of the national wealth w/in the city – 45% Province – 20% Barangay – 35% 2 or more Cities/Barangays Population – 70% Land Area – 30% 3. Sand, Gravel, and Other Quarry Resources Share – 30% B. Internally Generated 1. Taxes, Fees, and Charges imposed by the province and municipality may be imposed by the