S ection 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.

y Local Government

y Refers to a political subdivisions of a

nation or state which is constituted by law and has substantial control of local affairs, with officials elected or otherwise locally selected.

(1)In the Philippines, it refers to provinces, cities, municipalities, and barangays. (2)Congress may, by law, create special metropolitan political subdivision subject to a plebiscite as set forth in Section 10. (3)The Constitution directs the creation of autonomous regions for Muslim Mindanao and for the Cordilleras by an organic act to be enacted by congress for each autonomous region subject to a plebiscite as provided in Section 18.

y A separate article on local governments

in the Constitution is a recognition of the value of local governments as viable organs for the performance of local functions.

(1)Provinces, cities, municipalities and barangays are political bodies corporate endowed with powers to be exercised by and through their respective local government conformably with law. (2)The creation of special metropolitan political subdivisions and autonomous regions for Muslim Mindanao and for the Cordilleras by law must comply with the provisions of section 11 and 18 respectively.

(1)

As political bodies corporate -by statutory provisions, local governments are considered political bodies corporate for the administration of the affairs of the community within their territorial boundaries. (a) In their public or governmental aspect -they are agents of the State, and for that purpose exercise by delegation a part of the sovereignty of the State, such as in the imposition and collection of taxes, preservation of peace and order, and the establishment of schools.

(b) In their private or corporate aspect -they are mere legal entities performing functions not strictly governmental. They act as a corporate body for their own purposes and not as subdivisions of the State. (2) Underlying test -the underlying test of whether an act of a local government is an act in the exercise of a governmental function or is a corporate act whether the act performed is for the common good or for the special benefit or profit of the corporate entity.

Section 2. The territorial and political subdivisions shall enjoy local autonomy.
Local autonomy -is the exercise of certain basic powers, by local government units so as to best serve the interest and promote the general well-being of their inhabitants.

Decentralization

-is the process of transferring basic powers from the

national to the local governments to allow maximum participation of the citizens in governmental and community activities. The degree of local autonomy is dependent upon the extent decentralization is effected.

Reasons for granting local autonomy

1.

Importance of local solutions to local problems. 2. Need for orderly management of local affairs. 3. Desirability of self-reliance. 4. Need for fullest development of local government. 5. Innate desire for self-government.

Section 3. The Congress shall enact a local government code which shall provide for a more responsive and a 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, and functions and duties of local officials and other matters relating to the organization and operation of local units.

Enactment of Local Government Code: 1. Provide for a more responsible and accountable local government structure instituted through a system of decentralization (supra) with effective mechanisms of recall, initiative and referendum.
2.

Allocate among the different local units their powers, responsibilities and resources. Provide for the qualifications, elections, appointment and removal term salaries, powers, and functions, and duties of local officials. Provide for all other matters relating to the organization and operation of local government.

3.

4.

Mechanism of Recall, Initiative and Referendum 1.Recall Officer- is the legal process by which the registered voters of a local government unit remove for loss of confidence, elective local officials. 2.Initiative- is the legal process whereby the registered voters of a local government unit may directly propose, enact or amend any law or ordinance at polls called for the purpose independently of the regular constituted local legislative body. 3.Referendum- is the legal process whereby the registered voters of the local government unit concerned may approve amend or reject an ordinance enacted is submitted to them for decision.

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 components barangays shall ensure that the acts of their component units are within the scope of their prescribed powers and functions.

Supervisory Power of President over Local Government -while the President has control of all the executive department, bureaus and offices, he has only the power of general supervision over all local governments. The President exercises only delegated legislative power local government.

Control -it implies the power to manage, direct or govern and includes the power to supervise. Supervision -the power to oversee the performance of work by a person or a group of persons and coordinate their activities in the implementation of one s own or another instructions or policies.

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 accrue exclusively to the local governments.

Taxing power of local governments constitutionally granted

(1) Exists independently of legislation

- unlike a sovereign state, municipal or public corporations have no inherent power of taxation. (2) Not absolute - the taxing power of local government is not absolute because aside from constitutional restrictions, Congress may still provide guidelines and limitations on its exercise such as prescribing the maximum rate of taxes.

Section 6. Local government unit shall have a just share, as determined by law, in the national taxes which shall be automatically released to them.
Automatic release of share of national taxes - The law shall determine what will be the just or equitable share of local government units in the national taxes. Once determined and collected, the same shall be automatically released to them. Section 6 mandates the automatic release of grants to local government.

Section 7. Local government 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.

Share in proceeds of utilization and development of national wealth

- It is only logical and fair to give local governments a share

in the proceeds of the utilization and development of the national wealth within their respective areas, including sharing them with their inhabitants by way of direct benefits.
- Local governments shall be entitled to receive their

equitable share from the local proceeds and they cannot be deprived of this share although Congress can provide by law the manner by which they shall be entitled to receive it.

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 be not considered as an interruption in the continuity of his service for the full term for which he was elected.

Term of office of elective local officials

(1) Term limits - the term of office of barangay officials shall be determined by law. In the case of other elective officials, their term of office shall be three (3) years, and they cannot serve for more than three (3) consecutive terms. Voluntary renunciation of office for any length of time shall not interrupt the continuity of the service for the full term for which an elective officials was elected for the purpose of the prohibition against serving for more than (9) years continously. The three-term limitations refers to term of office for the same position for which the local officials where elected. It does not include succession to an office.

(2) Reasons - the prohibition will help eliminate the so-called political wardlordism in provinces, cities and municipalities, which in the past had been a source of abuse, and, therefore, lawlessness, and give young and enlightened leaders, who have no formidable political machinery or vested interest to speak of, a chance to be elected. (3) In the case of barangay officials - the limitations is not imposed by the Constitution for the reason that the danger that the evil sought to be avoided will arise is slight. Their powers are very limited and usually their jurisdiction covers a small area.

Section 9. Legislative bodies of local governments shall have sectoral representations as may be prescribed by law.

Sectoral representation in local legislative bodies Enhance greater participation and representation by the people in policy-making of the government.

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.

Creation, divisions, merger, etc.of any local unit

(1)Conditions- any other act of government having the force of law, any lo9cal government unit may be created, divided, merged, abolished, or its boundary substantially provided. (a) The change is in accordance with the criteria established in the Local Government Code (b) It is approved by a majority of the votes cast in plebiscite in the political units is directly affected (2)Aim of the provisions-the is to avoid the indiscriminate practice in the past of breaking up provinces into several provinces, merging two or more municipalities into one, creating new cities, without any definite criteria.

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 thereby be created shall be limited to basic services requiring coordination.

Creation of special metropolitan political subdivisions

(1)Basic Autonomy of component cities and municipalities retained -The Constitution, as an alternative provides for the creation of special metropolitan political subdivisions, subject to approval in a plebiscite as set forth in Section 10. (2)Function limited to coordinating basic services -The metropolitan authority is not strictly a local government unit merely an administrative agency to coordinate basic services of adjoining cities and municipalities in highly urbanized areas as Metro Manila.

Section 12. Cities that are highly urbanized, as determined by law, and component cities whose charters prohibits 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

Component cities and highly urbanized cities

1. Component cities- form part of the province - voters cannot be deprived of the right to vote for elective provincial officials. 2.Highly urbanized cities- independent of the province in which they are geographically located. -prohibits their voters from voting provincial elective officials.

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.
Grouping of local government units It authorizes local government units to: 1.Group themselves, which in a loose sense suggests a confederation or association of local executives without any diminution of local powers. 2.Consolidate or coordinate their efforts, services and resources for purposes commonly beneficial to them in accordance with law.

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.

Regional development councils or other similar bodies To further strengthen the local governments, the
President is enjoined by Section 14 to provide for regional development councils or similar bodies composed of local government officials and heads of department and other government offices and representatives from the nongovernmental organizations within the region. The purpose must be so effect administrative decentralizations as a mean to strengthen the autonomy of the units in the region and to accelerate their economic and social growth and development.

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.

Creation of autonomous regions Section 15 authorizes the creation of only two (2) autonomous regions, one for Muslim Mindanao and another, for the Cordilleras as distinct territorial and political subdivisions of the Republic of the Philippines. Composition and condition for creation of autonomous regions 1. As provide in Section 15,they shall consists of provinces, cities, and municipalities, and geographical areas which share common and distinctive historical cultural heritage, economic and social structures and other relevant characteristics.

2. The creation of an autonomous region shall be accomplished within the framework of the Constitution and subject to the national sovereignty as well as territorial integrity of the Republic of the Philippines.

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

General supervisory power of the President over autonomous regions Section 16 merely reiterates the existing power of general supervision of the President over local governments. This power extends to autonomous regions and is to be exercised by the President to ensure that laws are faithfully executed , consistent with the constitutional policy to ensure the autonomy of local governments.

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.
Residual powers vested in the national government Residual powers- powers not given by the Constitution or by a law to the autonomous regions are vested in the national government. The retention of residual powers in the national government is necessary if the national sovereignty as well as territorial integrity of the Republic of the Philippines.

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 be define the basic structure of government for the region consisting of the executive department and legislative assembly, both of which shall be elective and representatives 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 regions shall be effective when approved by a 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 favorably in such plebiscite shall be included in the autonomous regions.

Enactment and ratification of an organic act for each autonomous region 1.Procedure Congress is mandated to enact an organic act to be proposed for each autonomous region or the basic law by virtue by which it shall exist as such, defining its organization and powers. a. giving recognition to the right of the people and their organizations to participate at all levels of social, political, and economic decision-making. b. requires both executive department and legislative assembly of each region shall elective and representative of the constituents political units.