Bureau of Local Government Finance Opinion

March 21, 2000 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION The Regional Director for Local Government Finance Department of Finance, Region I 2nd Floor, Mabanag Justice Hall Bldg. Juan Luna Street, San Fernando City M a d a m : This refers to your follow-up letter dated January 20, 2000, relative to your request for opinion and/or appropriate action on issues/information and observations noted during the Skills Development Training on RPTA conducted in the province of Pangasinan as enumerated in your attached letter dated March 15, 1999. Apparently the fundamental questions to be resolved basically pertain to the observations that: 1. "Resolution No. 414-96 entitled, Approving the Schedules of Base Unit Market Values of Lands, Buildings and Other Improvements as basis for the classification, appraisal and assessment of properties in the different municipalities of Pangasinan has not been enacted or governed by an Ordinance of the Sangguniang Panlalawigan (of Pangasinan) to conform with the provisions of Republic Act No. 7160; SDECAI 2. "(S)ame Resolution (together with Resolution No. 415-96, entitled 'Directing all municipalities in the province of Pangasinan to conduct a simultaneous General Revision of Real Property Assessments and to appropriate an amount for the general revision as a condition sine qua non to the approval of their Annual Budget for CY-1997' has not been approved by the Provincial Governor, if an assumption that, the same could be used in lieu of the ordinance, hence, the application of the Schedule of Fair Market Values has no legal basis and may be deemed questionable." It is worthwhile to note hereon that in the Book entitled: "Law on Municipal Corporations", by Eugene McMillin, Second Edition, the following subject matters were clarified: 1. That, "(W)here a resolution is in substance and effect an ordinance or permanent regulation, the name given to it is immaterial. If it is passed with all the formalities of an ordinance it thereby becomes a legislative act, and it is not important whether it be called ordinance or resolution."(p. 525) 2. That "(T)he formal parts of a complete Ordinance are: 1. The title. 2. The preamble, or reason for passage (usual). 3. The ordaining or enacting clause. 4. The command to do (and sometimes the manner of doing it) or not to do, and designation of subjects and objects of operation. 5. The penalty 6. Naming the time when to take effect; in the absence of charter provision, or in case of emergency, it should be declared. (pages 615 & 616) and; SEHDIC 3. That, "Whether to complete the ordinance it should be approved and signed by the mayor, must depend, of course, on the local law, the language of the particular provision and its construction as compared to other charter provision or statutes applicable." (p. 638) The basic question on whether or not the said Resolutions, numbered 414-96 and 415-96, can be considered valid to take the place of the required ordinance, is clearly manifested by the contents of the same; that both substantially conforms to the abovementioned "formal" requirements except the signature of the approving authority where, under Section 54 of R.A. No. 7160, otherwise known as the Local Government Code, it was clarified, that: "Section 54. Approval of Ordinances . (a) Every ordinance enacted by the sangguniang panlalawigan, sangguniang panlungsod, or sangguniang bayan shall be presented to the provincial governor or city or municipal mayor, as the case may be. If the local chief executive concerned approves the same, he shall affix his signature on each and every page thereof; otherwise, he shall veto it and return the same with his objections to the sanggunian, which may proceed to reconsider the same. The sanggunian concerned may override the veto of the local chief executive by two-thirds (2/3) vote of all its members, thereby making the ordinance or resolution effective for all legal intents and purposes. "(b) The veto shall be communicated by the local chief executive concerned to the sanggunian within fifteen (15) days in the case of a province, and ten (10) days in the case of a city or a municipality; otherwise, the ordinance shall be deemed approve as if he had signed it . (Emphasis Ours) "xxx xxx xxx Evidently, the absence of the signature of the local chief executive could not be deemed to have invalidated the Ordinance as the same, after the lapse of the period within which the approving authority fails to communicate for purposes of a veto, shall be deemed approved as if he has signed it. Accordingly, the general revision of real property assessments in the province of Pangasinan which was conducted by virtue of the aforementioned Resolutions, Numbered 414-96 and 415-96, is hereby deemed in substantial compliance with the provisions of R.A. No. 7160. Besides, the declaration of nullity of the general revision of real property assessments conducted by the Province of Pangasinan under the subject Resolution at this point in time, would tremendously affect the financial stability of the whole province of Pangasinan. aICHEc Be guided accordingly. (SGD.) ANGELINA M. MAGSINO Deputy Executive Director Officer-in-Charge