ARTICLE X

Local Government

General Provisions

SECTION 1. The territorial and political subdivisions of the Republic of the Philippines
are the provinces, cities, municipalities, and barangays. There shall be autonomous
regions in Muslim Mindanao and the Cordilleras as hereinafter provided.

1st sentence – deals with the local government units as a rule in general
2nd sentence – deals with the autonomous region created in the 1987 constitution.

A sitio no matter how important it is in a barangay is not a political subdivision. In a

unitary system of government such as the Philippines, local government can only be
intra-sovereign subdivision of one sovereign nation because it is a unitary
government, there is only one government.

The political subdivisions are merely part of one sovereign nation.

Local government can only mean a measure of autonomy and decentralization of

functions of the National government.

SECTION 2. The territorial and political subdivisions shall enjoy local autonomy.

The framers of the 1987 Constitution had to insert section 2 because in the later part
of the article that is in the autonomous, the autonomy that is given to these region is
autonomous or wide-ranging which is not given to ordinary local government units.

Section 2 is an assurance in the local government units that local autonomy shall not
only be for Muslim Mindanao and the Cordilleras but for all local government units,
although autonomy for local governments in general is less that of the autonomous
regions.

On the other hand, the local autonomy that is promised in section 2 is found in the
local government code, so the local autonomy that is given to local government units
in general is outside of the autonomous regions is found in the local government code.

One criticism of the local government code is it is not giving enough autonomy to the
local government units. Autonomy for local governments would be for
decentralization of administration as against the concept of decentralization of power.

What is given to the local government units in general would only be

decentralization of administration, it means when the central government delegates
administrative powers to political subdivisions in order to broaden the base of
governmental power and in the process make local government units more responsive
and accountable.

On the other hand, the decentralization of power involves an abdication of political

power in favor of local government units declared to be autonomous.

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 Is there an abdication of political power so far given to the autonomous regions?
Yes to a certain extent. The national government cannot abdicate power totally, there
has power left to the national government otherwise we don’t have the Republic of the
Philippines.

Two kinds of decentralization

1. decentralization of administration
2. decentralization of power

Bernas said there is still a gray area on the measuring of a local autonomy for local
governments in spite of the mandate of the 1987 Constitution.

San Juan vs Civil Service Commission

The issue here is the autonomy to appoint provincial budget officer.
The court then ruled that the provincial budget officer must be appointed upon the
recommendation of the provincial governor as provided in the administrative oath.

This case San Juan vs CSC is only one of the few cases where there seems to be in
favor of local autonomy. The Supreme Court said the authority to appoint must come
from the local government unit, which is the provincial governor.

Magtajas vs Pryce
The issue here is whether a local government unit like Cagayan de Oro can prohibit
PAGCOR in gambling. Cagayan de Oro passed a resolution prohibiting gambling by
PAGCOR. The Supreme Court said the Cagayan de Oro cannot prohibit because an
ordinance cannot be more powerful in a statute. Statute is the creation of the
PAGCOR, it is the national law.
SO where is the local autonomy there?

LLDA vs Court of Appeals 120865

Tan vs Parena
The municipality passed a resolution limiting the number of captives in their
municipality and it is declared by the Supreme Court invalid or unconstitutional.

SECTION 3. The Congress shall enact a local government code which shall provide for a
more responsive and accountable local government structure instituted through a system
of decentralization with effective mechanisms of recall, initiative, and referendum, allocate
among the different local government units their powers, responsibilities, and resources,
and provide for the qualifications, election, appointment and removal, term, salaries,
powers and functions and duties of local officials, and all other matters relating to the
organization and operation of the local units.

Section 3 mandates Congress under 1987 Constitution to enact a Local Government

Code.

The Local Government Code came up with a new structure of local government, they
separated the executive and legislative. Before the Mayor was also the providing
officer of the legislative body of the council. Under the new government code, the

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 mayor is the executive and the vice mayor is the Chairman or Head of the legislative
as well as the Sanggunian ng Bayan. This is not only true in the municipalities and
cities; this is also true in provinces.

The LGC RA 7160 also came up with the system of recall and initiative and
referendum.

Recall is a system that was invented in the local government code pursuant to the
mandate of the constitution to give more chances for citizens to participate in
governance. It was to limit the term and made easier the removal of local government
officers by system of recall. It comes hand in hand with the limit in terms of the local
government officials, 3 years. So it was shorter so that more could participate. Then
after 3 terms or 9 years, it should be other people or set of officers.

The recall gives authority for officials to be recalled one year after his election. But
recall cannot be filed or used one year before the election. So if the term is three
years, not on the first year, only in the second year and again cannot be done one year
before the election.

Initiative and Referendum is a process whereby the registered voters of the Local
Government Unit may directly propose, enact or amend any ordinance.

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.

 The President exercises general supervision over local government units.

 Provinces exercise general supervision with respect to component cities and
municipalities.
 Cities and municipalities exercise general supervision over barangays.

The scope of that power of supervision is only to ensure that the acts of the
component units are acting within the scope of the prescribed powers. They cannot
suggest. The power of supervision is only to make sure that this unit will not go
against or beyond this power.

SECTION 5. Each local government unit shall have the power to create its own sources of
revenues 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 local governments.

New provision that gives power to LGU to create its own sources of revenues and to
levy taxes.

According to Bernas, Section 5 does not change the doctrine that municipal
corporations do not possess inherent powers of taxation. It confers general power to
levy taxes and otherwise create sources of revenue.

Manila Electric vs Province of Laguna GR 131359

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 The Court ruled that, under the new constitution, neither a grant nor a prohibition by
statute to tax, power must be deemed to exist although Congress may provide
statutory limitations and guidelines.

SECTION 6. Local government units shall have a just share, as determined by law, in the
national taxes which shall be automatically released to them.

Section 6 mandates that LGU has a just share in the national taxes which shall be
automatically released to them.

Similar cases:

Mandanas vs Ochoa, GR 199802, July 3, 2018

Garcia vs Ochoa, GR 202488, July 3, 2018

The Supreme Court interpreted the basis of just share of local government units under
section 6 article 10 of the Constitution as being the base of an old national taxes and
not only national internal revenue taxes.

It is deemed interpreted and followed since the 1987 Constitution and Local
Government Code came into play or effective. The Internal Revenue Allotment (IRA)
of local government units consists only internal revenues, but now the Supreme Court
said that it is not the mandate of the Constitution, because the latter says the Local
Government Units shall have a just share in the national taxes, it does not say internal
revenue taxes, which is collected by BIR. Custom taxes are the ones collected by
Customs. Other forms of taxes. All taxes collected by the national government
(customs shared taxes, etc.) shall be the source of the just share of local governments,
beginning this year, July 3, 2018.

Likewise, in Section 6, it shall be automatically released to them. It is reiterated and

supported in the case of Pimentel vs Aguirre, GR 132188, July 19, 2000.

Pimentel vs Aguirre, GR 132188, July 19, 2000

During the time of President Ramos, He issued an administrative order withholding
the IRA of all government units. The Supreme Court said that Ramos’ act is
unconstitutional because the local government code and Sec 6, article 10 provides the
automatic release of the share in the national revenue.

The same case was filed by Mandanas during the time of Pres. Arroyo. The IRA shall
be automatically released to the LGU.

National Taxes – Before IRA only, but on July 4, 2018, SC ruled that just share of
national taxes shall be sourced from all national taxes not only IRA.

The Supreme Court, voting 10-3, ordered the national government to remit to the
local government units (LGUs) 40 percent of all national taxes collected.

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The Court ruled, however, that the 40 percent should be based on all “national
taxes” per the Constitution, not just on those imposed by the National Internal
Revenue Code, thereby including customs duties, tariffs, airport fees, etc.
Further, it held that the 40 percent should be “automatically” released to the LGUs
without further ado. Previous presidents of the country, while devolving some
functions of the executive departments to the LGUs, refused to share the revenues.

Read more: https://opinion.inquirer.net/114792/sc-orders-devolution-ignites-
federalism-joust#ixzz65B0G60BA

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.

Magat Dam
Utilization of natural wealth in Isabela, Ifugao, so the two were entitled to the income
of the Magat Dam.

Nueva Vizcaya, Nueva Ecija shall be given a share in the national wealth
development.

SECTION 8. The term of office of elective local officials, except barangay officials, which
shall be determined by law, shall be three years and no such official shall serve for more
than three consecutive terms. Voluntary renunciation of the office for any length of time
shall not be considered as an interruption in the continuity of his service for the full term
for which he was elected.

Borja vs COMELEC, GR 133495, September 3, 1988

The Supreme Court came up with this rule of interpretation of the 3 terms limit of
local government office, for service to be counted as one term for the purpose of the 3
term-limit, 2 essential elements are required:

1. the official must have been elected to the position

2. the official must have served 3 full terms consecutively

SECTION 9. Legislative bodies of local governments shall have sectoral representation as

may be prescribed by law.

SECTION 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.

New rule in creating barangays.

Tan vs COMELEC

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 The scope of the plebiscite shall mean if what is involved is a barangay, the plebiscite
should be municipality-wide or city-wide; if the municipality or component city,
province-wide; and if a portion of the province is to be curved to form another
province, the plebiscite should involve the mother province.

� Boundaries can only be created by plebescite where it is located.

SECTION 11. 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.

Section 11 is the basis of the creation of MMDA. As mandated in the Constitution,

the MMDA was created to give basic services among the component cities of the
Metropolitan Manila Development Authority. It does not withhold merging of
political powers, each of the local government units retains their power. The MMDA
exists only to coordinate efforts on services that affect the members of the MMDA

SECTION 12. Cities that are highly urbanized, as determined by law, and component cities
whose charters prohibit their voters from voting for provincial elective officials, shall be
independent of the province. The voters of component cities within a province, whose
charters contain no such prohibition, shall not be deprived of their right to vote for elective
provincial officials.

Section 12 provides three (3) kinds of cities:

1. Highly urbanized cities, as may be determined by law
2. Cities not highly urbanized, but whose charters prohibit voters from voting in the
provincial elections
In Santiago city, the voters do not vote for the Governor (provincial election)
in Isabela.
3. Component cities

The first 2 types of cities are independent from the province.

SECTION 13. Local government units may group themselves, consolidate or coordinate
their efforts, services, and resources for purposes commonly beneficial to them in
accordance with law.

The groupings may be done even without a law.

Aggrupation - consolidating

SECTION 14. The President shall provide for regional development councils or other
similar bodies composed of local government officials, regional heads of departments and
other government offices, and representatives from non-governmental organizations
within the regions for purposes of administrative decentralization to strengthen the
autonomy of the units therein and to accelerate the economic and social growth and
development of the units in the region.

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 The creation of regional development councils. It is usually composed of provincial
governor and city mayors. The Secretariat is the NEDA.

Autonomous Region
SECTION 15. There shall be created autonomous regions in Muslim Mindanao and in the
Cordilleras consisting of provinces, cities, municipalities, and geographical areas sharing
common and distinctive historical and cultural heritage, economic and social structures,
and other relevant characteristics within the framework of this Constitution and the
national sovereignty as well as territorial integrity of the Republic of the Philippines.

Section 15 gives the criteria in the creation of the autonomous regions. The provinces,
cities, or municipalities that will compose the autonomous regions must share the
same or distinctive cultural heritage and other relevant characteristics within the
framework of this Constitution and the national sovereignty as well as territorial
integrity of the Republic of the Philippines.

Immediately, the framers of the 1987 Constitution did not want that this region to be
outside the Republic of the Philippines, they want it to be within the framework of
this Constitution and the national sovereignty as well as territorial integrity of the
Republic of the Philippines.

Whatever created must be part of the Republic of the Philippines.

The purpose of the creation of the autonomous region is the creation of the situation
which will allow its culture to flourish and hampered by the dominance of other
cultures and thereby to contribute more effectively to national project, hence a
prerequisite for the creation of an autonomous region is a certain distinctive regional
commonality of historical and cultural heritage, economic and other relevant
characteristics.

The autonomous regions for Muslim Mindanao envisioned to compose provinces that
are Muslim dominated.

There was also a creation of Cordillera Autonomous Region. The Ifugao opted to
form part of the Cordillera Administrative Region, so it failed to create Cordillera
Autonomous Region.

SECTION 16. The President shall exercise general supervision over autonomous regions
to ensure that the laws are faithfully executed.

SECTION 17. All powers, functions, and responsibilities not granted by this Constitution
or by law to the autonomous regions shall be vested in the National Government.

In the creation of autonomous regions, there are powers given to them, but there are
also powers retained by the national government. In Section 17 if these powers are not
granted by the Constitution or by law, then it will stay in the national government.

What are the powers not given to the autonomous regions?

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 Bernas enumerated the powers not given to the autonomous regions such as:
No jurisdiction over national defense, foreign relations, customs and tariff, quarantine,
currency, monetary affairs, foreign exchange, banking and quasi-banking, external
bankings, posts and communications, air and sea transport, immigration and
deportation, citizenship and naturalization, and general auditing.

SECTION 18. The Congress shall enact an organic act for each autonomous region with
the assistance and participation of the regional consultative commission composed of
representatives appointed by the President from a list of nominees from multi-sectoral
bodies. The organic act shall define the basic structure of government for the region
consisting of the executive department and legislative assembly, both of which shall be
elective and representative of the constituent political units. The organic acts shall likewise
provide for special courts with personal, family, and property law jurisdiction consistent
with the provisions of this Constitution and national laws.
The creation of the autonomous region shall be effective when approved by majority of the
votes cast by the constituent units in a plebiscite called for the purpose, provided that only
provinces, cities, and geographic areas voting favourably in such plebiscite shall be
included in the autonomous region.

RA 6734 is the Organic Act for the Autonomous Region for Muslim Mindanao
- Only 5 provinces voted in favour
- RA 11054 – repealed RA 6734. July 26, 2018
- Abolished ARMM

RA 6776 was supposed-to-be the Organic Act for the Cordillera Autonomous Region
- Only Ifugao voted for it. Thus autonomous move failed.

Art 1 Sec 3 RA 11054 – complies with the constitutional requirement for Autonomous (Art
10, Sec 15):
within the framework of this Constitution and the national sovereignty as well as
territorial integrity of the Republic of the Philippines.

SECTION 19. The first Congress elected under this Constitution shall, within eighteen
months from the time of organization of both Houses, pass the organic acts for the
autonomous regions in Muslim Mindanao and the Cordilleras.

SECTION 20. Within its territorial jurisdiction and subject to the provisions of this
Constitution and national laws, the organic act of autonomous regions shall provide for
legislative powers over:
BARMM
(1) Administrative organization;
(2) Creation of sources of revenues;
(3) Ancestral domain and natural resources;
(4) Personal, family, and property relations;
(5) Regional urban and rural planning
development;
(6) Economic, social, and tourism development;
(7) Educational policies;

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(8) Preservation and development of the
cultural heritage; and

(9) Such other matters as may be authorized by law for the promotion of the general
welfare of the people of the region.

SECTION 21. The preservation of peace and order within the regions shall be the
responsibility of the local police agencies which shall be organized, maintained,
supervised, and utilized in accordance with applicable laws. The defense and security of
the regions shall be the responsibility of the National Government.

Laguna Lake Development Authority vs CA

Natural Resources and Environmental Laws; Statutory Construction

GR No. 120865-71; Dec. 7 1995

FACTS:
The Laguna Lake Development Authority (LLDA) was created through Republic Act No.
4850. It was granted, inter alia, exclusive jurisdiction to issue permits for the use of all
surface water for any project or activity in or affecting the said region including
navigation, construction, and operation of fishpens, fish enclosures, fish corrals and the
like.
Then came RA 7160, the Local Government Code of 1991. The municipalities in the
Laguna Lake region interpreted its provisions to mean that the newly passed law gave
municipal governments the exclusive jurisdiction to issue fishing privileges within their
municipal waters.

ISSUE:
Who should exercise jurisdiction over the Laguna Lake and its environs insofar as the
issuance of permits for fishing privileges is concerned, the LLDA or the towns and
municipalities comprising the region?

HELD:
LLDA has jurisdiction over such matters because the charter of the LLDA prevails over
the Local Government Code of 1991. The said charter constitutes a special law, while the
latter is a general law. It is basic in statutory construction that the enactment of a later
legislation which is a general law, cannot be construed to have repealed a special law.
The special law is to be taken as an exception to the general law in the absence of special
circumstances forcing a contrary conclusion.
In addition, the charter of the LLDA embodies a valid exercise of police power for the
purpose of protecting and developing the Laguna Lake region, as opposed to the Local
Government Code, which grants powers to municipalities to issue fishing permits for
revenue purposes.

Thus it has to be concluded that the charter of the LLDA should prevail over the Local
Government Code of 1991 on matters affecting Laguna de Bay.

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Manila Electric Company v. Province of Laguna (G.R. No.
131359. May 5, 1999)
FACTS:

MERALCO was granted a franchise by several municipal councils and the National
Electrification Administration to operate an electric light and power service in the Laguna.
Upon enactment of Local Government Code, the provincial government issued ordinance
imposing franchise tax. MERALCO paid under protest and later claims for refund because of
the duplicity with Section 1 of P.D. No. 551. This was denied by the governor (Joey Lina)
relying on a more recent law (LGC). MERALCO filed with the RTC a complaint for refund,
but was dismissed. Hence, this petition.

ISSUE:

Whether or not the imposition of franchise tax under the provincial ordinance is violative of
the non-impairment clause of the Constitution and of P.D. 551.

HELD:

No. There is no violation of the non-impairment clause for the same must yield to the
inherent power of the state (taxation). The provincial ordinance is valid and constitutional.

RATIO:

The Local Government Code of 1991 has incorporated and adopted, by and large, the
provisions of the now repealed Local Tax Code. The 1991 Code explicitly authorizes
provincial governments, notwithstanding “any exemption granted by any law or other special
law, . . . (to) impose a tax on businesses enjoying a franchise.” A franchise partakes the
nature of a grant which is beyond the purview of the non-impairment clause of the
Constitution. Article XII, Section 11, of the 1987 Constitution, like its precursor provisions
in the 1935 and the 1973 Constitutions, is explicit that no franchise for the operation of a
public utility shall be granted except under the condition that such privilege shall be subject
to amendment, alteration or repeal by Congress as and when the common good so requires.

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