LUTZ VS. ARANETA [98 Phil 148; G.R. No.

L-7859; 22 Dec 1955] Friday, January 30, 2009 Posted by Coffeeholic Writes Labels: Case Digests, Political Law Facts: Walter Lutz, as the Judicial Administrator of the Intestate Estate of Antonio Jayme Ledesma, seeks to recover from J. Antonio Araneta, the Collector of Internal Revenue, the sum of money paid by the estate as taxes, pursuant to the Sugar Adjustment Act. Under Section 3 of said Act, taxes are levied on the owners or persons in control of the lands devoted to the cultivation of sugar cane. Furthermore, Section 6 states all the collections made under said Act shall be for aid and support of the sugar industry exclusively. Lutz contends that such purpose is not a matter of public concern hence making the tax levied for that cause unconstitutional and void. The Court of First Instance dismissed his petition, thus this appeal beforethe Supreme Court.

Issue: Whether or Not the tax levied under the Sugar Adjustment Act ( Commonwealth Act 567) is unconstitutional.

Held: The tax levied under the Sugar Adjustment Act is constitutional. The tax under said Act is levied with a regulatory purpose, to provide means for the rehabilitation and stabilization of the threatened sugar industry. Since sugar production is one of the great industries of our nation, its promotion, protection, and advancement, therefore redounds greatly to the general welfare. Hence, said objectives of the Act is a public concern and is therefore constitutional. It follows that the Legislature may determine within reasonable bounds what is necessary for its protection and expedient for its promotion. If objectives and methods are alike constitutionally valid, no reason is seen why the state may not levy taxes to raise funds for their prosecution and attainment. Taxation may be made with the implement of the states police power. In addition, it is only rational that the taxes be obtained from those that will directly benefit from it. Therefore, the tax levied under the Sugar Adjustment Act is held to be constitutional.

PRC vs. De Guzman

Facts: The respondents are all graduates of the Fatima College of Medicine, Valenzuela City, Metro Manila. They passed the Physician Licensure Examination conducted in February 1993 by the Board of Medicine (Board). Petitioner Professional Regulation Commission (PRC) then released their names as successful examinees in the medical licensure examination. Shortly thereafter, the Board observed that the grades of the seventy-nine successful examinees from Fatima College in the two most difficult subjects in the medical licensure exam, Biochemistry (Bio-Chem) and Obstetrics and Gynecology (OBGyne), were unusually and exceptionally high. Eleven Fatima examinees scored 100% in Bio-Chem and ten got 100% in OB-Gyne, another eleven got 99% in Bio-Chem, and twenty-one scored 99% in OBGyne. For its part, the NBI found that the questionable passing rate of Fatima examinees in the [1993] Physician Examination leads to the conclusion that the Fatima examinees gained early access to the test questions.

Issue: Was the act pursuant to R.A. 2382 a valid exercise of police power

Ruling: Yes, it is true that this Court has upheld the constitutional right of every citizen to select a profession or course of study subject to a fair, reasonable, and equitable admission and academic requirements. But like all rights and freedoms guaranteed by the Charter, their exercise may be so regulated pursuant to the police power of the State to safeguard health, morals, peace, education, order, safety, and general welfare of the people. Thus, persons who desire to engage in the learned professions requiring scientific or technical knowledge may be required to take an examination as a prerequisite to engaging in their chosen careers.

MMDA vs. Garin Facts: The issue arose from an incident involving the respondent Dante O. Garin, a lawyer, who was issued a traffic violation receipt (TVR) and his driver's license confiscated for parking illegally along Gandara Street, Binondo, Manila, on 05 August 1995. The following statements were printed on the TVR: You are hereby directed to report to the MMDA Traffic Operations Center Port Area Manila after 48 hours from date of apprehension for disposition/appropriate action thereon. Criminal case shall be filed for failure to redeem license after 30 days. Valid as temporary DRIVER'S license for seven days from date of apprehension.1 Shortly before the expiration of the TVR's validity, the respondent addressed a letter2 to then MMDA Chairman Prospero Oreta requesting the return of his driver's license, and expressing his preference for his case to be filed in court. Issue: Did Rep. Act no. 7924 vest MMDA police power/

Ruling: No, Rep. Act No. 7924 does not grant the MMDA with police power, let alone legislative power, and that all its functions are administrative in nature. Tracing the legislative history of Rep. Act No. 7924 creating the MMDA, we concluded that the MMDA is not a local government unit or a public corporation endowed with legislative power, and, unlike its predecessor, the Metro Manila Commission, it has no power to enact ordinances for the welfare of the community. Thus, in the absence of an ordinance from the City of Makati, its own order to open the street was invalid.

Osmea vs. Orbos, et al. Hence, it seems clear that while the funds collected may be referred to as taxes, they are exacted in the exercise of the police power of the State. Moreover, that the OPSF is a special fund is plain from the special treatment given it by E.O. 137. It is segregated from the general fund; and while it is placed in what the law refers to as a "trust liability account," the fund nonetheless remains subject to the scrutiny and review of the COA. Although the provision authorizing the ERB to impose additional amounts could be construed to refer to the power of taxation, it cannot be overlooked that the overriding consideration is to enable the delegate to act with expediency in carrying out the objectives of the law which are embraced by the police power of the State. Facts: On October 10, 1984, President Ferdinand Marcos issued P.D. 1956 creating a Special Account in the General Fund, designated as the Oil Price Stabilization Fund (OPSF). It was designed to reimburse oil companies for cost increases in crude oil and imported petroleum products resulting from exchange rate adjustments and from increases in the world market prices of crude oil. Later, the OPSF was reclassified into a "trust liability account," by virtue of Executive Order (E.O.) 1024, and ordered released from the National Treasury to the Ministry of Energy. President Corazon C. Aquino, amending PD 1956, promulgated Executive Order No. 137, expanding the grounds for reimbursement to oil companies for possible cost under recovery incurred due to the reduction of domestic prices of petroleum products, the amount of the under recovery being left for determination by the Ministry of Finance. Petitioner argues, among others, that "the monies collected pursuant to P.D. 1956, as amended, must be treated as a 'SPECIAL FUND,' not as a 'trust account' or a 'trust fund,' and that "if a special tax is collected for a specific purpose, the revenue generated therefrom shall 'be treated as a special fund' to be used only for the purpose indicated, and not channeled to another government objective." Further, that since "a 'special fund' consists of monies collected through the taxing power of a State, such amounts belong to the State, although the use thereof is limited to the special purpose/objective for which it was created." He also contends that the "delegation of legislative authority" to the Energy Regulatory Board (ERB) violates Section 28 (2) of Article VI of the Constitution and, inasmuch as the delegation relates to the exercise of the power of taxation, "the limits, limitations and restrictions must be quantitative, that is, the law must not only specify how to tax, who (shall) be taxed (and) what the tax is for, but also impose a specific limit on how much to tax."

Petitioner assumes that the Fund is formed from a tax undoubtedly because a portion thereof is taken from collections of ad valorem taxes and the increases thereon. Thus, the petitioner seeks the corrective, prohibitive and coercive remedies provided by Rule 65 of the Rules of Court. Issues: 1. Whether or not the powers granted to the Energy Regulatory Board (ERB) under P.D. 1956, as amended, partake of the nature of the taxation power of the State. 2. Whether or not there is an undue delegation of legislative power to the Energy Regulatory Board (ERB) of the exercise of the power of taxation

Held: 1. The petitioner's perceptions are, in the Court's view, not quite correct. To address this critical misgiving in the position of the petitioner on these issues, the Court recalls its holding in Valmonte v. Energy Regulatory Board, et al. The OPSF was established precisely to protect local consumers from the adverse consequences that such frequent oil price adjustments may have upon the economy. Thus, the OPSF serves as a pocket, as it were, into which a portion of the purchase price of oil and petroleum products paid by consumers as well as some tax revenues are inputted and from which amounts are drawn from time to time to reimburse oil companies, when appropriate situations arise, for increases in, as well as underrecovery of, costs of crude importation. The OPSF is thus a buffer mechanism through which the domestic consumer prices of oil and petroleum products are stabilized, instead of fluctuating every so often, and oil companies are allowed to recover those portions of their costs which they would not otherwise recover given the level of domestic prices existing at any given time. To the extent that some tax revenues are also put into it, the OPSF is in effect a device through which the domestic prices of petroleum products are subsidized in part. It appears to the Court that the establishment and maintenance of the OPSF is well within that pervasive and non-waivable power and responsibility of the government to secure the physical and economic survival and well-being of the community, that comprehensive sovereign authority we designate as the police power of the State. In Gaston v. Republic Planters Bank, this Court upheld the legality of the sugar stabilization fees and explained their nature and character, viz.: The tax collected is not in a pure exercise of the taxing power. It is levied with a regulatory purpose, to provide a means for the stabilization of the sugar industry. The levy is primarily in the exercise of the police power of the State. Hence, it seems clear that while the funds collected may be referred to as taxes, they are exacted in the exercise of the police power of the State. Moreover, that the OPSF is a special fund is plain from the special treatment given it by E.O. 137. It is segregated from the general fund; and while it is placed in what the law refers to as a "trust liability account," the fund nonetheless remains subject to the scrutiny

and review of the COA. The Court is satisfied that these measures comply with the constitutional description of a "special fund." Indeed, the practice is not without precedent. 2. With regard to the alleged undue delegation of legislative power, the Court finds that the provision conferring the authority upon the ERB to impose additional amounts on petroleum products provides a sufficient standard by which the authority must be exercised. In addition to the general policy of the law to protect the local consumer by stabilizing and subsidizing domestic pump rates, Section 8(c) of P.D. 1956 expressly authorizes the ERB to impose additional amounts to augment the resources of the Fund. What petitioner would wish is the fixing of some definite, quantitative restriction, or "a specific limit on how much to tax." The Court is cited to this requirement by the petitioner on the premise that what is involved here is the power of taxation; but as already discussed, this is not the case. What is here involved is not so much the power of taxation as police power. Although the provision authorizing the ERB to impose additional amounts could be construed to refer to the power of taxation, it cannot be overlooked that the overriding consideration is to enable the delegate to act with expediency in carrying out the objectives of the law which are embraced by the police power of the State. WHEREFORE, the petition is GRANTED insofar as it prays for the nullification of the reimbursement of financing charges, paid pursuant to E.O. 137, and DISMISSED in all other respects.

FIRST DIVISION

[G.R. No. 120095. August 5, 1996]

JMM

PROMOTION AND MANAGEMENT, INC., and KARY INTERNATIONAL, INC., petitioner, vs. HON. COURT OF APPEALS, HON. MA. NIEVES CONFESSOR, then Secretary of the Department of the Labor and Employment, HON. JOSE BRILLANTES, in his capacity as acting Secretary of the Department of Labor and Employment and HON. FELICISIMO JOSON, in his capacity as Administrator of the Philippine Overseas Employment Administration, respondents.

DECISION KAPUNAN, J.: The limits of government regulation under the State's Police Power are once again at the vortex of the instant controversy. Assailed is the government's power to control deployment of female entertainers to Japan by requiring an Artist Record Book (ARB) as a precondition to the processing by the POEA of any contract for overseas employment. By contending that the right to overseas employment, is a property right within the meaning of the Constitution, petitioners vigorously aver that deprivation thereof allegedly through the onerous requirement of an ARB violates the due process clause and constitutes an invalid exercise of the police power. The factual antecedents are undisputed. Following the much-publicized death of Maricris Sioson in 1991, former President Corazon C. Aquino ordered a total ban against the deployment of performing artists to Japan and other foreign destinations. The ban was, however, rescinded after leaders of the overseas employment industry promised to extend full support for a program aimed at removing kinks in the system of deployment. In its place, the government, through the Secretary of Labor and Employment, subsequently issued Department Order No. 28, creating the Entertainment Industry Advisory Council (EIAC), which was tasked with issuing guidelines on the training, testing certification and deployment of performing artists abroad. Pursuant to the EIAC's recommendations,[1] the Secretary of Labor, on January 6, 1994, issued Department Order No. 3 establishing various procedures and requirements for screening performing artists under a new system of training, testing, certification and deployment of the former. Performing artists successfully hurdling the test, training and certification requirement were to be issued an Artist's Record Book (ARB), a necessary prerequisite to processing of any contract of employment by the POEA. Upon request of the industry, implementation of the process, originally scheduled for April 1, 1994, was moved to October 1, 1994.

Thereafter, the Department of Labor, following the EIAC's recommendation, issued a series of orders fine-tuning and implementing the new system. Prominent among these orders were the following issuances: 1. Department Order No. 3-A, providing for additional guidelines on the training, testing, certification and deployment of performing artists. 2. Department Order No. 3-B, pertaining to the Artist Record Book (ARB) requirement, which could be processed only after the artist could show proof of academic and skills training and has passed the required tests. 3. Department Order No. 3-E, providing the minimum salary a performing artist ought to receive (not less than US$600.00 for those bound for Japan) and the authorized deductions therefrom. 4. Department Order No. 3-F, providing for the guidelines on the issuance and use of the ARB by returning performing artists who, unlike new artists, shall only undergo a Special Orientation Program (shorter than the basic program) although they must pass the academic test. In Civil Case No. 95-72750, the Federation of Entertainment Talent Managers of the Philippines (FETMOP), on January 27, 1995 filed a class suit assailing these department orders, principally contending that said orders 1) violated the constitutional right to travel; 2) abridged existing contracts for employment; and 3) deprived individual artists of their licenses without due process of law. FETMOP, likewise, averred that the issuance of the Artist Record Book (ARB) was discriminatory and illegal and "in gross violation of the constitutional right... to life liberty and property." Said Federation consequently prayed for the issuance of a writ of preliminary injunction against the aforestated orders. On February 2, 1992, JMM Promotion and Management, Inc. and Kary International, Inc., herein petitioners, filed a Motion for Intervention in said civil case, which was granted by the trial court in an Order dated 15 February, 1995. However, on February 21, 1995, the trial court issued an Order denying petitioners' prayer for a writ of preliminary injunction and dismissed the complaint. On appeal from the trial court's Order, respondent court, in CA G.R. SP No. 36713 dismissed the same. Tracing the circumstances which led to the issuance of the ARB requirement and the assailed Department Order, respondent court concluded that the issuances constituted a valid exercise by the state of the police power. We agree. The latin maxim salus populi est suprema lex embodies the character of the entire spectrum of public laws aimed at promoting the general welfare of the people under the State's police power. As an inherent attribute of sovereignty which virtually "extends to all public needs," [2] this "least limitable"[3] of governmental powers grants a wide panoply of instruments through which the state, as parens patriae gives effect to a host of its regulatory powers.

Describing the nature and scope of the police power, Justice Malcolm, in the early case of Rubi v. Provincial Board of Mindoro[4] wrote: "The police power of the State," one court has said...'is a power coextensive with self-protection, and is not inaptly termed 'the law of overruling necessity.' It may be said to be that inherent and plenary power in the state which enables it to prohibit all things hurtful to the comfort, safety and welfare of society.' Carried onward by the current of legislature, the judiciary rarely attempts to dam the onrushing power of legislative discretion, provided the purposes of the law do not go beyond the great principles that mean security for the public welfare or do not arbitrarily interfere with the right of the individual." [5] Thus, police power concerns government enactments which precisely interfere with personal liberty or property in order to promote the general welfare or the common good. As the assailed Department Order enjoys a presumed validity, it follows that the burden rests upon petitioners to demonstrate that the said order, particularly, its ARB requirement, does not enhance the public welfare or was exercised arbitrarily or unreasonably. A thorough review of the facts and circumstances leading to the issuance of the assailed orders compels us to rule that the Artist Record Book requirement and the questioned Department Order related to its issuance were issued by the Secretary of Labor pursuant to a valid exercise of the police power. In 1984, the Philippines emerged as the largest labor sending country in Asia dwarfing the labor export of countries with mammoth populations such as India and China. According to the National Statistics Office, this diaspora was augmented annually by over 450,000 documented and clandestine or illegal (undocumented) workers who left the country for various destinations abroad, lured by higher salaries, better work opportunities and sometimes better living conditions. Of the hundreds of thousands of workers who left the country for greener pastures in the last few years, women composed slightly close to half of those deployed, constituting 47% between 1987-1991, exceeding this proportion (58%) by the end of 1991,[6] the year former President Aquino instituted the ban on deployment of performing artists to Japan and other countries as a result of the gruesome death of Filipino entertainer Maricris Sioson. It was during the same period that this Court took judicial notice not only of the trend, but also of the fact that most of our women, a large number employed as domestic helpers and entertainers, worked under exploitative conditions "marked by physical and personal abuse."[7] Even then, we noted that "[t]he sordid tales of maltreatment suffered by migrant Filipina workers, even rape and various forms of torture, confirmed by testimonies of returning workers" compelled "urgent government action."[8] Pursuant to the alarming number of reports that a significant number of Filipina performing artists ended up as prostitutes abroad (many of whom were beaten, drugged and forced into prostitution), and following the deaths of a number of these women, the government began instituting measures aimed at deploying only those individuals who met set standards which would qualify them as legitimate performing artists. In spite of these measures, however, a number of our countrymen have nonetheless fallen victim to unscrupulous recruiters, ending up as virtual slaves controlled by foreign crime syndicates and forced into jobs other than those indicated in their employment contracts. Worse, some of our women have been forced into prostitution.

Thus, after a number of inadequate and failed accreditation schemes, the Secretary of Labor issued on August 16, 1993, D.O. No. 28, establishing the Entertainment Industry Advisory Council (EIAC), the policy advisory body of DOLE on entertainment industry matters.[9] Acting on the recommendations of the said body, the Secretary of Labor, on January 6, 1994, issued the assailed orders. These orders embodied EIAC's Resolution No. 1, which called for guidelines on screening, testing and accrediting performing overseas Filipino artists. Significantly, as the respondent court noted, petitioners were duly represented in the EIAC,[10] which gave the recommendations on which the ARB and other requirements were based. Clearly, the welfare of Filipino performing artists, particularly the women was paramount in the issuance of Department Order No. 3. Short of a total and absolute ban against the deployment of performing artists to "high risk" destinations, a measure which would only drive recruitment further underground, the new scheme at the very least rationalizes the method of screening performing artists by requiring reasonable educational and artistic skills from them and limits deployment to only those individuals adequately prepared for the unpredictable demands of employment as artists abroad. It cannot be gainsaid that this scheme at least lessens the room for exploitation by unscrupulous individuals and agencies. Moreover, here or abroad, selection of performing artists is usually accomplished by auditions, where those deemed unfit are usually weeded out through a process which is inherently subjective and vulnerable to bias and differences in taste. The ARB requirement goes one step further, however, attempting to minimize the subjectivity of the process by defining the minimum skills required from entertainers and performing artists. As the Solicitor General observed, this should be easily met by experienced artists possessing merely basic skills. The tests are aimed at segregating real artists or performers from those passing themselves off as such, eager to accept any available job and therefore exposing themselves to possible exploitation. As to the other provisions of Department Order No. 3 questioned by petitioners, we see nothing wrong with the requirement for document and booking confirmation (D.O. 3-C), a minimum salary scale (D.O. 3-E), or the requirement for registration of returning performers. The requirement for a venue certificate or other documents evidencing the place and nature of work allows the government closer monitoring of foreign employers and helps keep our entertainers away from prostitution fronts and other worksites associated with unsavory, immoral, illegal or exploitative practices. Parenthetically, none of these issuances appear to us, by any stretch of the imagination, even remotely unreasonable or arbitrary. They address a felt need of according greater protection for an oft-exploited segment of our OCW's. They respond to the industry's demand for clearer and more practicable rules and guidelines. Many of these provisions were fleshed out following recommendations by, and after consultations with, the affected sectors and non-government organizations. On the whole, they are aimed at enhancing the safety and security of entertainers and artists bound for Japan and other destinations, without stifling the industry's concerns for expansion and growth. In any event, apart from the State's police power, the Constitution itself mandates government to extend the fullest protection to our overseas workers. The basic constitutional statement on labor, embodied in Section 18 of Article II of the Constitution provides:

Sec. 18. The State affirms labor as a primary social economic force. It shall protect the rights of workers and promote their welfare. More emphatically, the social justice provision on labor of the 1987 Constitution in its first paragraph states: The State shall afford full protection to labor, local and overseas, organized and unorganized and promote full employment and equality of employment opportunities for all. Obviously, protection to labor does not indicate promotion of employment alone. Under the welfare and social justice provisions of the Constitution, the promotion of full employment, while desirable, cannot take a backseat to the government's constitutional duty to provide mechanisms for the protection of our workforce, local or overseas. As this Court explained in Philippine Association of Service Exporters(PASEI) v. Drilon,[11] in reference to the recurring problems faced by our overseas workers: What concerns the Constitution more paramountly is that such an employment be above all, decent, just, and humane. It is bad enough that the country has to send its sons and daughters to strange lands because it cannot satisfy their employment needs at home. Under these circumstances, the Government is dutybound to insure that our toiling expatriates have adequate protection, personally and economically, while away from home. We now go to petitioners' assertion that the police power cannot, nevertheless, abridge the right of our performing workers to return to work abroad after having earlier qualified under the old process, because, having previously been accredited, their accreditation became a property right," protected by the due process clause. We find this contention untenable. A profession, trade or calling is a property right within the meaning of our constitutional guarantees. One cannot be deprived of the right to work and the right to make a living because these rights are property rights, the arbitrary and unwarranted deprivation of which normally constitutes an actionable wrong.[12] Nevertheless, no right is absolute, and the proper regulation of a profession, calling, business or trade has always been upheld as a legitimate subject of a valid exercise of the police power by the state particularly when their conduct affects either the execution of legitimate governmental functions, the preservation of the State, the public health and welfare and public morals. According to the maxim, sic utere tuo ut alienum non laedas, it must of course be within the legitimate range of legislative action to define the mode and manner in which every one may so use his own property so as not to pose injury to himself or others.[13] In any case, where the liberty curtailed affects at most the rights of property, the permissible scope of regulatory measures is certainly much wider.[14] To pretend that licensing or accreditation requirements violates the due process clause is to ignore the settled practice, under the mantle of the police power, of regulating entry to the practice of various trades or professions. Professionals leaving for abroad are required to pass rigid written and practical exams before they are deemed fit to practice their trade. Seamen are required to take tests determining their seamanship. Locally, the Professional Regulation Commission has began to require previously licensed doctors and other professionals to furnish documentary proof that they had either re-trained or had undertaken continuing education courses

as a requirement for renewal of their licenses. It is not claimed that these requirements pose an unwarranted deprivation of a property right under the due process clause. So long as Professionals and other workers meet reasonable regulatory standards no such deprivation exists. Finally, it is a futile gesture on the part of petitioners to invoke the non-impairment clause of the Constitution to support their argument that the government cannot enact the assailed regulatory measures because they abridge the freedom to contract. In Philippine Association of Service Exporters, Inc. vs. Drilon, we held that "[t]he non-impairment clause of the Constitution... must yield to the loftier purposes targeted by the government."[15] Equally important, into every contract is read provisions of existing law, and always, a reservation of the police power for so long as the agreement deals with a subject impressed with the public welfare. A last point. Petitioners suggest that the singling out of entertainers and performing artists under the assailed department orders constitutes class legislation which violates the equal protection clause of the Constitution. We do not agree. The equal protection clause is directed principally against undue favor and individual or class privilege. It is not intended to prohibit legislation which is limited to the object to which it is directed or by the territory in which it is to operate. It does not require absolute equality, but merely that all persons be treated alike under like conditions both as to privileges conferred and liabilities imposed. [16] We have held, time and again, that the equal protection clause of the Constitution does not forbid classification for so long as such classification is based on real and substantial differences having a reasonable relation to the subject of the particular legislation.[17] If classification is germane to the purpose of the law, concerns all members of the class, and applies equally to present and future conditions, the classification does not violate the equal protection guarantee. In the case at bar, the challenged Department Order clearly applies to all performing artists and entertainers destined for jobs abroad. These orders, we stressed hereinbefore, further the Constitutional mandate requiring Government to protect our workforce, particularly those who may be prone to abuse and exploitation as they are beyond the physical reach of government regulatory agencies. The tragic incidents must somehow stop, but short of absolutely curtailing the right of these performers and entertainers to work abroad, the assailed measures enable our government to assume a measure of control. WHEREFORE, finding no reversible error in the decision sought to be reviewed, petition is hereby DENIED. SO ORDERED.

MAGTAJAS VS. PRYCE PROPERTIES CORP., INC., digested Posted by Pius Morados on November 7, 2011 GR # 111097 July 20, 1994 (Constitutional Law Police Power, Ordinance, Delegated Legislative Power) FACTS: Petitioners opposed the opening of a casino in Cagayan de Oro and enacted Ordinance No. 3353, prohibiting the issuance of business permit and cancelling existing business permit to establishment for the operation of casino, and Ordinance No. 3375-93, prohibiting the operation of casino and providing penalty for its violation. Respondents assailed the validity of the ordinances on the ground that both violated P.D. 1869, permitting the operation of casinos centralized and regulated by PAGCOR. Petitioners contends that pursuant to the Local Government Code, they have the police power authority to prohibit the operation of casino for the general welfare. ISSUE: Whether or not Ordinance No. 3353 and Ordinance No. 3375-93 are valid exercise of police power. HELD: No. The ordinances violate P.D. 1869, which has the character and force of a statute as well as the public policy expressed in the decree allowing the playing of certain games of chance despite the prohibition of gambling in general. Ordinances should not contravene a statute because local councils exercise only delegated legislative powers conferred to them by Congress. Petition is denied.

REPUBLIC OF THE PHILIPPINES VS. PLDT, digested Posted by Pius Morados on November 8, 2011 26 SCRA 620 (1969) (Constitutional Law Eminent Domain, Expropriation, Just Compensation) FACTS: Public petitioner commenced a suit against private respondent praying for the right of the Bureau of Telecommunications to demand interconnection between the Government Telephone System and that of PLDT, so that the Government Telephone System could make use of the lines and facilities of the PLDT. Private respondent contends that it cannot be compelled to enter into a contract where no agreement is had between them. ISSUE: Whether or not interconnection between PLDT and the Government Telephone System can be a valid object for expropriation. HELD: Yes, in the exercise of the sovereign power of eminent domain, the Republic may require the telephone company to permit interconnection as the needs of the government service may require, subject to the payment of just compensation. The use of lines and services to allow inter-service connection between the both telephone systems, through expropriation can be a subject to an easement of right of way.

THIRD DIVISION

[G.R. No. 118712. July 5, 1996]

LAND BANK OF THE PHILIPPINES, petitioner, vs. COURT OF APPEALS, PEDRO L. YAP, HEIRS OF EMILIANO F. SANTIAGO, AGRICULTURAL MANAGEMENT & DEVELOPMENT CORPORATION, respondents.

[G.R. No. 118745. July 5, 1996]

DEPARTMENT OF AGRARIAN REFORM, represented by the Secretary of Agrarian Reform, petitioner, vs.COURT OF APPEALS, PEDRO L. YAP, HEIRS OF EMILIANO F. SANTIAGO, AGRICULTURAL MANAGEMENT AND DEVELOPMENT CORPORATION, ET AL., respondents. RESOLUTION FRANCISCO, J.: Consequent to the denial of their petitions for review on certiorari by this Court on October 6, 1995[1], petitioners Department of Agrarian Reform (DAR) and Land Bank of the Philippines (LBP), filed their respective motions for reconsideration contending mainly that, contrary to the Court's conclusion, the opening of trust accounts in favor of the rejecting landowners is sufficient compliance with the mandate of Republic Act 6657. Moreover, it is argued that there is no legal basis for allowing the withdrawal of the money deposited in trust for the rejecting landowners pending the determination of the final valuation of their properties. Petitioner DAR maintains that "the deposit contemplated by Section 16(e) of Republic Act 6657, absent any specific indication, may either be general or special, regular or irregular, voluntary or involuntary (necessary) or other forms known in law, and any thereof should be, as it is the general rule, deemed complying."[2] We reject this contention. Section 16(e) of Republic Act 6657 was very specific in limiting the type of deposit to be made as compensation for the rejecting landowners, that is in "cash" or in "LBP bonds", to wit: "Sec. 16. Procedure for Acquisition of Private Lands xxx xxx xxx

(e) Upon receipt by the landowner of the corresponding payment or, in case of rejection or no response from the landowner, upon the deposit with an accessible bank designated by the DAR of the compensation in cash or in LBP bonds in accordance with this Act, the DAR shall take immediate possession of the land and shall request the proper Register of Deeds to issue a Transfer Certificate of Title (TCT) in the name of the Republic of the Philippines. x x x" (Italics supplied) The provision is very clear and unambiguous, foreclosing any doubt as to allow an expanded construction that would include the opening of "trust accounts" within the coverage of term "deposit. Accordingly, we must adhere to the well-settled rule that when the law speaks in clear and categorical language, there is no reason for interpretation or construction, but only for application.[3] Thus, recourse to any rule which allows the opening of trust accounts as a mode of deposit under Section 16(e) of R.A. 6657 goes beyond the scope of the said provision and is therefore impermissible. As we have previously declared, the rule-making power must be confined to details for regulating the mode or proceedings to carry into effect the law as it has been enacted, and it cannot be extended to amend or expand the statutory requirements or to embrace matters not covered by the statute.[4] Administrative regulations must always be in harmony with the provisions of the law because any resulting discrepancy between the two will always be resolved in favor of the basic law.[5] The validity of constituting trust accounts for the benefit of the rejecting landowners and withholding immediate payment to them is further premised on the latter's refusal to accept the offered compensation thereby making it necessary that the amount remains in the custody of the LBP for safekeeping and in trust for eventual payment to the landowners.[6] Additionally, it is argued that the release of the amount deposited in trust prior to the final determination of the just compensation would be premature and expose the government to unnecessary risks and disadvantages, citing the possibility that the government may subsequently decide to abandon or withdraw from the coverage of the CARP certain portions of the properties that it has already acquired, through supervening administrative determination that the subject land falls under the exempt category, or by subsequent legislation allowing additional exemptions from the coverage, or even the total scrapping of the program itself. Force majeure is also contemplated in view of the devastation suffered by Central Luzon de to lahar. Petitioner DAR maintains that under these conditions, the government will be forced to institute numerous actions for the recovery of the amounts that it has already paid in advance to the rejecting landowners.[7] We are not persuaded. As an exercise of police power, the expropriation of private property under the CARP puts the landowner, and not the government, in a situation where the odds are already stacked against his favor. He has no recourse but to allow it. His only consolation is that he can negotiate for the amount of compensation to be paid for the expropriated property. As expected, the landowner will exercise this right to the hilt, but subject however to the limitation that he can only be entitled to a "just compensation." Clearly therefore, by rejecting and disputing the valuation of the DAR, the landowner is merely exercising his right to seek just compensation. If we are to affirm the withholding of the release of the offered compensation despite depriving the landowner of the possession and use of his property, we are in effect penalizing the latter for simply exercising a right afforded to him by law. Obviously, this would render the right to seek a fair and just compensation illusory as it would discourage owners of private lands from contesting the offered valuation of the DAR even if they find it

unacceptable, for fear of the hardships that could result from long delays in the resolution of their cases. This is contrary to the rules of fair play because the concept of just compensation embraces not only the correct determination of the amount to be paid to the owners of the land, but also the payment of the land within a reasonable time from its taking. Without prompt payment, compensation cannot be considered "just" for the property owner is made to suffer the consequence of being immediately deprived of his land while being made to wait for a decade or more before actually receiving the amount necessary to cope with his loss.[8] It is significant to note that despite petitioner's objections to the immediate release of the rejected compensation, petitioner LBP, taking into account the plight of the rejecting landowners, has nevertheless allowed partial withdrawal through LBP Executive Order No. 003,[9] limited to fifty (50) per cent of the net cash proceeds. This is a clear confirmation that petitioners themselves realize the overriding need of the landowners' immediate access to the offered compensation despite rejecting its valuation. But the effort, though laudable, still falls short because the release of the amount was unexplainably limited to only fifty per cent instead of the total amount of the rejected offer, notwithstanding that the rejecting landowner's property is taken in its entirety. The apprehension against the total release of the rejected compensation is discounted since the government's interest is amply protected under the aforementioned payment scheme because among the conditions already imposed is that the landowner must execute a Deed of Conditional Transfer for the subject property.[10] Anent the aforecited risks and disadvantages to which the government allegedly will be unnecessarily exposed if immediate withdrawal of the rejected compensation is allowed, suffice it to say that in the absence of any substantial evidence to support the same, the contemplated scenarios are at the moment nothing but speculations. To allow the taking of the landowners' properties, and in the meantime leave them empty handed by withholding payment of compensation while the government speculates on whether or not it will pursue expropriation, or worse for government to subsequently decide to abandon the property and return it to the landowner when it has already been rendered useless by force majeure, is undoubtedly an oppressive exercise of eminent domain that must never be sanctioned. Legislations in pursuit of the agrarian reform program are not mere overnight creations but were the result of long exhaustive studies and even heated debates. In implementation of the program, much is therefore expected from the government. Unduly burdening the property owners from the resulting flaws in the implementation of the CARP which was supposed to have been a carefully crafted legislation is plainly unfair and unacceptable. WHEREFORE, in view of the foregoing, petitioners' motions for reconsideration are hereby DENIED for lack of merit. SO ORDERED.

Facts: Respondent Napoleon Abiera of PAO filed a complaint before the Office of the Ombudsman against petitioner RTC Judge Bonifacio Sanz Maceda. Respondent Abiera alleged that petitioner Maceda has falsified his certificate of service by certifying that all civil and criminal cases which have been submitted for decision for a period of 90 days have been determined and decided on or before January 31, 1989, when in truth and in fact, petitioner Maceda knew that no decision had been rendered in 5 civil and 10 criminal cases that have been submitted for decision. Respondent Abiera alleged that petitioner Maceda falsified his certificates of service for 17 months.

Issue: Whether or not the investigation made by the Ombudsman constitutes an encroachment into the SCs constitutional duty of supervision over all inferior courts

Held: A judge who falsifies his certificate of service is administratively liable to the SC for serious misconduct and under Sec. 1, Rule 140 of the Rules of Court, and criminally liable to the State under the Revised Penal Code for his felonious act. In the absence of any administrative action taken against him by the Court with regard to his certificates of service, the investigation being conducted by the Ombudsman encroaches into the Courts power ofadministrative supervision over all courts and its personnel, in violation of the doctrine of separation of powers. Art. VIII, Sec. 6 of the Constitution exclusively vests in the SCadministrative supervision over all courts and court personnel, from the Presiding Justice of the CA down to the lowest municipal trial court clerk. By virtue of this power, it is only the SC that can oversee the judges and court personnels compliance with all laws, and take the proper administrative action against them if they commit any violation thereof. No other branch of government may intrude into this power, without running afoul of the doctrine of separation of powers.

Where a criminal complaint against a judge or other court employeearises from their administrative duties, the Ombudsman must defer action on said complaint and refer the same to the SC for determination whether said judge or court employee had acted within the scope of their administrative duties.

Marcos v Manglapus 177 SCRA 668 (1989)02/14/2011 0 Comments Facts: This case involves a petition of mandamus and prohibition asking the court to order the respondents Secretary of Foreign Affairs, etc. To issue a travel documents to former Pres. Marcos and the immediate members of his family and to enjoin the implementation of the President's decision to bar their return to the Philippines. Petitioners assert that the right of the Marcoses to return in the Philippines is guaranteed by the Bill of Rights, specifically Sections 1 and 6. They contended that Pres. Aquino is without power to impair the liberty of abode of the Marcoses because only a court may do so within the limits prescribed by law. Nor the President impair their right to travel because no law has authorized her to do so.They further assert that under international law, their right to return to thePhilippines is guaranteed particularly by the Universal Declaration of Human Rights and the International Covenant on Civil and Political Rights, which has been ratified by the Philippines. Issue: Whether or not, in the exercise of the powers granted by the constitution, the President (Aquino) may prohibit the Marcoses from returning to the Philippines. Held: "It must be emphasized that the individual right involved is not the right to travel from the Philippines to other countries or within the Philippines. These are what the right to travel would normally connote. Essentially, the right involved in this case at bar is the right to return to one's country, a distinct right under international law, independent from although related to the right to travel. Thus, the Universal Declaration of Human Rights and the International Covenant on Civil and Political Rights treat the right to freedom of movement and abode within the territory of a state, the right to leave the country, and the right to enter one's country as separate and distinct rights. What the Declaration speaks of is the "right to freedom of movement and residence within the borders of each state". On the other hand, the Covenant guarantees the right to liberty of movement and freedom to choose his residence and the right to be free to leave any country, including his own. Such rights may only be restricted by laws protecting the national security, public order, public health or morals or the separate rights of others. However, right to enter one's country cannot be arbitrarily deprived. It would be therefore inappropriate to construe the limitations to the right to return to ones country in the same context as those pertaining to the liberty of abode and the right to travel.The Bill of rights treats only the liberty of abode and the right to travel, but it is a well considered view that the right to return may be considered, as a generally accepted principle of International Law and under our Constitution as part of the law of the land.The court held that President did not act arbitrarily or with grave abuse of discretion in determining that the return of the Former Pres. Marcos and his family poses a serious threat to national interest and welfare. President Aquino has determined that the destabilization caused by the return of the Marcoses would wipe away the gains achieved during the past few years after the Marcos regime.The return of the Marcoses poses a serious threat and therefore prohibiting their return to the Philippines, the instant petition is hereby DISMISSED.

Tanada vs Angara, 272 SCRA 18, May 2, 1997 Facts : This is a petition seeking to nullify the Philippine ratification of the World Trade Organization (WTO) Agreement. Petitioners question the concurrence of herein respondents acting in their capacities as Senators via signing the said agreement. The WTO opens access to foreign markets, especially its major trading partners, through the reduction of tariffs on its exports, particularly agricultural and industrial products. Thus, provides new opportunities for the service sector cost and uncertainty associated with exporting and more investment in the country. These are the predicted benefits as reflected in the agreement and as viewed by the signatory Senators, a free market espoused by WTO. Petitioners on the other hand viewed the WTO agreement as one that limits, restricts and impair Philippine economic sovereignty and legislative power. That the Filipino First policy of the Constitution was taken for granted as it gives foreign trading intervention. Issue : Whether or not there has been a grave abuse of discretion amounting to lack or excess of jurisdiction on the part of the Senate in giving its concurrence of the said WTO agreement. Held: In its Declaration of Principles and state policies, the Constitution adopts the generally accepted principles of international law as part of the law of the land, and adheres to the policy of peace, equality, justice, freedom, cooperation and amity , with all nations. By the doctrine of incorporation, the country is bound by generally accepted principles of international law, which are considered automatically part of our own laws. Pacta sunt servanda international agreements must be performed in good faith. A treaty is not a mere moral obligation but creates a legally binding obligation on the parties. Through WTO the sovereignty of the state cannot in fact and reality be considered as absolute because it is a regulation of commercial relations among nations. Such as when Philippines joined the United Nations (UN) it consented to restrict its sovereignty right under the concept of sovereignty as autolimitation. What Senate did was a valid exercise of authority. As to determine whether such exercise is wise, beneficial or viable is outside the realm of judicial inquiry and review. The act of signing the said agreement is not a legislative restriction as WTO allows withdrawal of membership should this be the political desire of a member. Also, it should not be viewed as a limitation of economic sovereignty. WTO remains as the only viable structure for multilateral trading and the veritable forum for the development of international trade law. Its alternative is isolation, stagnation if not economic self-destruction. Thus, the people be allowed, through their duly elected officers, make their free choice. Petition is DISMISSED for lack of merit.

Facts: On July 31, 1998, Senators Miriam Defensor Santiago and Francisco S. Tatad instituted an original petition for quo warranto under Rule 66, Section 5, Rules of Court, seeking the ouster of Senator Teofisto T. Guingona Jr. as minority leader of the Senate and the declaration of Senator Tatad as the rightful minority leader. The following were likewise elected: Senator Ople as president pro tempore, and Sen. Franklin M. Drilon as majority leader. He explained that those who had voted for Senator Fernan comprised the "majority," while only those who had voted for him, the losing nominee, belonged to the "minority." During the discussion on who should constitute the Senate "minority," Sen. Juan M. Flavier manifested that the senators belonging to the Lakas-NUCD-UMDP Party numbering seven (7) and, thus, also a minority had chosen Senator Guingona as the minority leader. The following session day, the debate on the question continued, with Senators Santiago and Tatad delivering privilege speeches. On the third session day, the Senate met in caucus, but still failed to resolve the issue. The following day, Senators Santiago and Tatad filed before this Court the subject petition for quo warranto, alleging in the main that Senator Guingona had been usurping, unlawfully holding and exercising the position of Senate minority leader, a position that, according to them, rightfully belonged to Senator Tatad.

Issue: From the parties' pleadings, the Court formulated the following issues for resolution: 1. Does the Court have jurisdiction over the petition? 2. Was there an actual violation of the Constitution? 3. Was Respondent Guingona usurping, unlawfully holding and exercising the position of Senate minority leader? 4. Did Respondent Fernan act with grave abuse of discretion in recognizing Respondent Guingona as the minority leader?

Held: WHEREFORE, for the above reasons, the petition is hereby DISMISSED. SO ORDERED.

Ratio: On grounds of respect for the basic concept of separation of powers, courts may not intervene in the internal affairs of the legislature; it is not within the province of courts to direct Congress how to do its work. Where no specific, operable norms and standards are shown to exist, then the legislature must be given a real and effective opportunity to fashion and promulgate as well as to implement them, before the courts may intervene. Being merely matters of procedure, their observance are of no concern to the courts, for said rules may be waived or disregarded by the legislative body at will, upon the concurrence of a majority.

This Court has no authority to interfere and unilaterally intrude into that exclusive realm, without running afoul of constitutional principles that it is bound to protect and uphold the very duty that justifies the Court's being. Constitutional respect and a becoming regard for the sovereign acts of a coequal branch prevents this Court from prying into the internal workings of the Senate.

In

view of the Courts jurisdiction Petitioners principally invoke Avelino v. Cuenco in arguing that this Court has jurisdiction to settle the issue of who is the lawful Senate minority leader. They submit that the definitions of "majority" and "minority" involve an interpretation of the Constitution. Upon a motion for reconsideration, however, the Court ultimately assumed jurisdiction (1) "in the light of subsequent events which justify its intervention;" and (2) because the resolution of the issue hinged on the interpretation of the constitutional provision on the presence of a quorum to hold a session and therein elect a Senate President. The Court rules that the validity of the selection of members of the Senate Electoral Tribunal by the senators was not a political question. The choice of these members did not depend on the Senate's "full discretionary authority," but was subject to mandatory constitutional limitations. Thus, the Court held that not only was it clearly within its jurisdiction to pass upon the validity of the selection proceedings, but it was also its duty to consider and determine the issue. "Judicial power includes the duty of the court of justice to settle actual controversies involving rights which are legally demandable and enforceable, and to determine whether or not there has been a grave abuse of discretion amounting to lack or excess of jurisdiction on the part of any branch or instrumentality of the Government." 1987 Constitution Well-settled is the doctrine, however, that jurisdiction over the subject matter of a case is determined by the allegations of the complaint or petition, regardless ofwhether the plaintiff or petitioner is entitled to the relief asserted. In light of the aforesaid allegations of petitioners, it is clear that this Court has jurisdiction over the petition. It is well within the power and jurisdiction of the Court to inquire whether indeed the Senate or its officials committed a violation of the Constitution or gravely abuse their discretion in exercise of their functions and prerogatives.

In

view

of

constitutional

violation

In effect, while the Constitution mandates that the President of the Senate must be elected by a number constituting more than one half of all the members thereof, it does not provide that the members who will not vote for him shall ipso facto constitute the "minority", who could thereby elect the minority

leader. Verily, no law or regulation states that the defeated candidate shall automaticallybecome the minority leader.

Definition of minority and majority Majority may also refer to "the group, party, or faction with the larger number of votes," not necessarily more than one half. This is sometimes referred to as plurality. In contrast, minority is "a group, party, or faction with a smaller number of votes or adherents than the majority." Between two unequal parts or numbers comprising a whole or totality, the greater number would obviously be the majority, while the lesser would be the minority.

In a government with a multi-party system such as in the Philippines (as pointed out by petitioners themselves), there could be several minority parties, one of which has to be identified by the Comelec as the "dominant minority party" for purposes of the general elections. In the prevailing composition of the present Senate, members either belong to different political parties or are independent. No constitutional or statutory provision prescribes which of the many minority groups or the independents or a combination thereof has the right to select the minority leader.

While the Constitution is explicit on the manner of electing a Senate President and a House Speaker, it is, however, dead silent on the manner of selecting the other officers in both chambers of Congress. All that the Charter says is that "each House shall choose such other officers as it may deem necessary." In this regard, the Constitution vests in each house of Congress the power "to determine the rules of its proceedings."

Pursuant thereto, the Senate formulated and adopted a set of rules to govern its internal affairs. However, the Rules of the Senate do not provide for the positions of majority and minority leaders. Neither is there an open clause providing specifically for such offices and prescribing the manner of creating them or of choosing the holders thereof. At any rate, such offices, by tradition and long practice, are actually extant.

In view of usurpation Usurpation generally refers to unauthorized arbitrary assumption and exercise of power by one without color of title or who is not entitled by lawthereto. A quo warranto proceeding is the proper legal remedy to determine the right or title to the contested public office and to oust the holder from its enjoyment. The action may be brought by the solicitor general or a public prosecutor or any person claiming to be entitled to the public office or position usurped or unlawfully held or exercise by another.

In order for a quo warranto proceeding to be successful, the person suing must show that he or she has a clear right to the contested office or to use or exercise the functions of the office allegedly usurped or unlawfully held by the respondent. In this case, petitioners present not sufficient proof of a clear and indubitable franchise to the office of the Senate minority leader. Furthermore, no grave abuse of discretion has been shown to characterize any of his specific acts as minority leader.

Jaworski vs. Philippine Amusement and Gaming Corporation (PAGCOR)[GR 144463, 14 January 2004]

Facts: PAGCOR is a government owned and controlled corporation existing under PD 1869, issued on 11 July 1983 by then President Ferdinand Marcos. The PAGCOR was granted, subject to the terms and conditions established in theDecree, for a period of 25 years, renewable for another 25 years, the rights, privileges and authority to operate and maintain gambling casinos, clubs, and other recreation or amusement places, sports, gaming pools, i.e. basketball,football, lotteries, etc. whether on land or sea, within the territorial jurisdiction of the Republic of the Philippines. On 31March 1998, PAGCOR's board of directors approved an instrument denominated as "Grant of Authority and Agreement for the Operation of Sports Betting and Internet Gaming", which granted SAGE the authority to operate and maintainSports Betting station in PAGCOR's casino locations, and Internet Gaming facilities to service local and international bettors, provided that to the satisfaction of PAGCOR, appropriate safeguards and procedures are established to ensurethe integrity and fairness of the games. On 1 September 1998, PAGCOR, represented by its Chairperson, Alicia Ll.Reyes, and SAGE, represented by its Chairman of the Board, Henry Sy, Jr., and its President, Antonio D. Lacdao, executed the document. Pursuant to the authority granted by PAGCOR, SAGE commenced its operations by conducting gambling on the Internet on a trial-run basis, making pre-paid cards and redemption of winnings available at various Bingo Bonanza outlets. Senator Robert S. Jaworski, in his capacity as member of the Senate and Chairman of the Senate Committee on Games, Amusement and Sports, files the petition for certiorari and prohibition, praying that the grant of authority by PAGCOR in favor of SAGE be nullified. He maintains that PAGCOR committed grave abuse of discretion amounting to lack or excess of jurisdiction when it authorized SAGE to operate gambling on the internet. He contends that PAGCOR is not authorized under its legislative franchise, P.D. 1869, to operate gambling on the internet for the simple reason that the said decree could not have possibly contemplated internet gambling since at the time of its enactment the internet was yet inexistent and gambling activities were confined exclusively to real-space. Further ,he argues that the internet, being an international network of computers, necessarily transcends the territorial jurisdiction of the Philippines, and the grant to SAGE of authority to operate internet gambling contravenes the limitation in PAGCOR's franchise. Issue: Whether PAGCOR's legislative franchise include the right to vest another entity, SAGE, with the authority to operate Internet gambling. Held: A legislative franchise is a special privilege granted by the state to corporations. It is a privilege of public concern which cannot be exercised at will and pleasure, but should be reserved for public control and administration, either by the government directly, or by public agents, under such conditions and regulations as the government may impose on them in the interest of the public. It is Congress that prescribes the conditions on which the grant of the franchise may be made. Thus the manner of granting the franchise, to whom it may be granted, the mode of conducting the business ,the charter and the quality

of the service to be rendered and the duty of the grantee to the public in exercising thefranchise are almost always defined in clear and unequivocal language. Herein, PAGCOR has acted beyond the limits of its authority when it passed on or shared its franchise to SAGE. While PAGCOR is allowed under its charter to enter into operator's and/or management contracts, it is not allowed under the same charter to relinquish or share itsfranchise, much less grant a veritable franchise to another entity such as SAGE. PAGCOR can not delegate its power inview of the legal principle of delegata potestas delegare non potest, inasmuch as there is nothing in the charter to show that it has been expressly authorized to do so

GARCIA VS. EXECUTIVE SECRETARY 211 SCRA 219 July 3, 1992 : FACTS: The President issued an EO which imposed, across the board, including crude oil and other oil products, additional duty ad valorem. The Tariff Commission held public hearings on said EO and submitted a report to the President for consideration and appropriate action. The President, on the other hand issued an EO which levied a special duty of P0.95 per liter of imported crude oil and P1.00 per liter of imported oil products. ISSUE: Whether or not the President may issue an EO which is tantamount to enacting a bill in the nature of revenue-generating measures. RULING: The Court said that although the enactment of appropriation, revenue and tariff bills is within the province of the Legislative, it does not follow that EO in question, assuming they may be characterized as revenue measure are prohibited to the President, that they must be enacted instead by Congress. Section 28 of Article VI of the 1987 Constitution provides: The Congress may, by law authorize the President to fix tariff rates and other duties or imposts The relevant Congressional statute is the Tariff and Customs Code of the Philippines and Sections 104 and 401, the pertinent provisions thereof.

G.R. No. L-23825: Pelaez vs Auditor General Sufficient Standard Test and Completeness Test

From Sept 04 to Oct 29, 1964, the President (Marcos) issued executive orders creating 33 municipalities this is purportedly in pursuant to Sec 68 of the Revised Administrative Code which provides that the President of the Philippines may by executive order define the boundary, or boundaries, of any province, sub-province, municipality, [township] municipal district or other political subdivision, and Howard Chan increase or diminish the territory comprised therein, may divide any province into Site Owner one or more subprovincesThe VP Emmanuel Pelaez and a taxpayer filed a special Posts: 414 civil action to prohibit the auditor general from disbursing funds to be appropriated for the said municipalities. Pelaez claims that the EOs are unconstitutional. He said that Sec 68 of the RAC has been impliedly repealed by Sec 3 of RA 2370 which provides that barrios may "not be created or their boundaries altered nor their names changed" except by Act of Congress or of the corresponding provincial board "upon petition of a majority of the voters in the areas affected" and the "recommendation of the council of the municipality or municipalities in which the proposed barrio is situated." Pelaez argues, accordingly: "If the President, under this new law, cannot even create a barrio, can he create a municipality which is composed of several barrios, since barrios are units of municipalities?" The Auditor General countered that only barrios are barred from being created by the President. Municipalities are exempt from the bar and that t a municipality can be created without creating barrios. Existing barrios can just be placed into the new municipality. This theory overlooks, however, the main import of Pelaez argument, which is that the statutory denial of the presidential authority to create a new barrio implies a negation of the bigger power to create municipalities, each of which consists of several barrios. ISSUE: Whether or not Congress has delegated the power to create barrios to the President by virtue of Sec 68 of the RAC. HELD: Although Congress may delegate to another branch of the government the power to fill in the details in the execution, enforcement or administration of a law, it is essential, to forestall a violation of the principle of separation of powers, that said law: (a) be complete in itself it must set forth therein the policy to be executed, carried out or implemented by the delegate and (b) fix a standard the limits of which are sufficiently determinate or determinable to which the delegate must conform in the performance of his functions. Indeed, without a statutory declaration of policy, the delegate would, in effect, make or formulate such policy, which is the essence of every law; and, without the aforementioned standard, there would be no means to determine, with reasonable certainty, whether the delegate has acted within or beyond the scope of his authority.

In the case at bar, the power to create municipalities is eminently legislative in character not administrative.