CHAPTER VI

RULES OF CONSTRUCTION OF SPECIFIC STATUTES

SPECIFIC STATUTES
There are several kinds of statutes and each statute has its
own rules of construction.

RULES OF CONSTRUCTION OF THE FOLLOWING

STATUTES
I. AS TO NATURE
1. Penal statutes
2. Remedial statutes
3. Substantive statutes
4. Labor statutes
5. Tax statutes
II. AS TO APPLICATION
1. Mandatory
2. Directory
III. AS TO PERFORMANCE
1. Permanent
2. Temporary
IV. ASTOSCOPE
1. General
2. Special
3. Local
V. OTHER CLASSIFICATIONS
1. A statute could either be prospective or retroactive

161
162 STATUTORY CONSTRUCTION

2. A statute could either be a repealing or amendatory act

3. A statute could either be a reference statute or a declara-
tory statute
VI. OTHER STATUTES

CONSTRUCTION OF EACH STATUTE

I PENAL STATUTES
Those, which impose punishment for an offense, committed
against the State. Statutes, which command or prohibit certain acts
and establish penalties for their violation, are considered as penal
statutes.

HOW ARE PENAL STATUTES INTERPRETED?

Penal statutes are interpreted against the State and liberally
in favor of the accused (People v Purisima, G R Nos L 42050 66,
46229 32 46313 16 and L 46997, November 20 1978) This rule
should not, however, be unreasonably applied as to defeat the true
intent and meaning of the enactment found in the language actually
used (People v Padilla and Von Arend 71 Phil 261)
The language of a penal statute cannot be enlarged beyond
the ordinary meaning of its terms. Only those persons, offenses and
penalties, clearly included, beyond any reasonable doubt, will be
considered within the operation of the statute

II. REMEDIAL STATUTES

Those designed to correct an existing law, redress an existing
grievance, or introduce regulations conducive to the public good. (In
Re: School Dist. No. 6, etc. 278, N. W, p. 792)

HOW ARE REMEDIAL STATUTES CONSTRUED?

Remedial statutes should be liberally construed because they
were enacted by the legislature precisely to improve the law and
so that they will be in harmony with new ideas and conceptions of
justice and proper conduct of men (Crawford Stat Const p 494)

III. SUBSTANTIVE STATUTES

These are laws, which establish rights and duties. (Bstos u.
Lucero, 81 Phil. 640)
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RULES OF CONSTRUCTION OF SPECIFIC STATUTES

What the law grants, the court cannot deny. (Gonzales v.

Gonzales, 58 Phil. 67) Therefore, the first duty of the judge is to
apply the law, whether it is just or unjust, provided that the law is
clear and there is no doubt.
In case of doubt, the judge should presume that the lawmaking
body intended right and justice to prevail. (Article 10, New Civil
Code)
Substantive laws create rights and duties. When these rights
and duties are therefore stated in clear and categorical language,
there is no more room for construction or interpretation. There is
only room for application. A plain and unambiguous statute speaks
for itself, and any attempt to make it clearer is vain labor and
tends only to obscurity. (Songco, et al. v. National Labor Relation
Commission, G.R. Nos. 50999-51000, March 30, 1990)
Even equity cannot be set up against clear provisions of law
based on public policy. Thus, a sale of a homestead within 5-year
prohibitory period is void ab initio and the same cannot be ratified
nor can it acquire validity through the passage of time. (Teodoro v.
Court of Appeals, G.R. No. 46955, February 27, 1989)
Equitable reasons will not control against any well-settled rule
of law or public policy. (Alvendia v. Intermediate Appellate Court,
G.R. No. L-72138; Bonamy v. Justice Paras, G.R. L-72373, January
22, 1990)
In Llamado v. Court of Appeals (G.R. L-84850, June 29, 1989),
the Supreme Court ruled that a judge must not rewrite a statute,
neither to enlarge nor to contract it. Whatever temptations the
statesmanship of policy-making might wisely suggest, construction
must eschew interpolation and evisceration. He must not read in
any way of creation. He must not read out except to avoid patent
nonsense of internal contradictions. (Underscoring Supplied)

1V. LABOR STATUTES

Those laws that govern the rights and obligations of employers
and employees, providing as well for the rules by which such rights
and obligations may be enforced.

HOW ARE LABOR LAWS INTERPRETED?

Article IV of the New Labor Code answers this question:
It says: "All doubts in the implementation and interpretation of
164 STATUTORY CONSTRUCTION

the provisions of this code, including its implementing rules and

regulations, shall be resolved in favor of Labor." (Underscoring
supplied)

V. TAX STATUTES
Those, which impose rules and regulations, related to taxation
or to creation of particular sources of revenue such as taxes, fees,
and charges that are needed for the support of government and for
all public needs.
In case of doubt, statutes levying taxes and duties are to be
construed most strongly against the government and in favor of
the subjects or citizens, because burdens are not to be imposed, nor
presumed to be imposed beyond what statutes expressly and clearly
import. (Commissioner of Internal Revenue v. Fireman's Fund
Insurance Company, et al., G.R. No. L-30644, 9 March 87, Second
Division, Paras, J.)

HOW ARE TAX STATUTES INTERPRETED?

They are construed strictly against the taxing power and
liberally in favor of the taxpayer. (In Re: Arbuckle's Estate, 18, A.
758) This is because tax laws seek to impose burdens upon persons
and property.
The following rules of construction apply to tax laws:
a. The real purpose of the legislature, if that purpose is
discernible from its statute, will prevail over the literal
import of the words used. (3 Sutherland, Stat. Const. p.
42)
b. The spirit, rather than the letter of an ordinance, deter-
mines the construction thereof, and the court looks less
to its word and more to the context, subject matter, con-
sequence and effect. (Manila Race Horse Owner's Assn. v.
De La Fuente, G.R. No. L-2947, January 11, 1951)
C. The history of the statute should be considered as an aid
in the ascertainment of the intention of the legislature.
(Greenfield v. Meer, CA G.R. No. 156, September 27, 1846)
d. However, tax exemptions, are construed strictly against
taxpayers and in favor of the taxing power. Moreover,
exemptions cannot be claimed unless they are expressly
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RULES OF CONSTRUCTION OF SPECIFIC STATUTES

provided for in the law. (Collector v. Manila Jockey Club,

98 Phil. 670)

VI. MANDATORY STATUTES

Those which contain words of command or of prohibition, and
non-compliance with the same renders the proceedings to which it
relates illegal and void.

VII. DIRECTORY STATUTES

Those which are permissible or discretionary in nature and
merely outline the act to be done in such a way that no injury can
result from ignoring it or that its purpose can be accomplished in
a manner other than that prescribed and substantially the same
result obtained.
In determining whether a statute is mandatory or directory,
intention of the legislature must be ascertained. The determination
of this intention must not depend on the statute itself. However, the
following tests, while not conclusive or controlling, have often been
used to determine the mandatory or directory nature of statutes and
statutory provisions:
1. TERMINOLOGY - The words or phrases regarded
as making a provision mandatory include "shall" and
"must, "while the word "may" and the phrase "it is lawful"
are usually regarded as permissive or directory.
2. MATERIALITY OF THE PROVISIONS - Statutory
provisions which relate to matters of substance or which
affect substantial rights, and are the very essence of the
thing required to be done, are regarded as mandatory.
Provisions which are not material or which do not affect
any substantial right, and do not relate to the essence of
the thing to be done, so that compliance is a matter of
convenience rather than substance, are considered to be
directory.
3. CONSEQUENCES —A statutory provision is mandatory
where a failure of performance will result to the injury or
prejudice to the substantial rights of interested persons.
If such failure or performance will not result to the
injury or prejudice of the substantial rights of interested
persons, then the provisions is generally regarded merely
as directory.
166 STATUTORY CONSTRUCTION

4. PENALTY - It is a general rule of construction that

where a legislative provision is accompanied by a penalty
for a failure to observe it, the provision is mandatory.
Otherwise, it is directory.
As already stated, the said tests are not conclusive or controlling.
Hence, while the word "shall" is a word of command and generally
considered as mandatory, it shall be considered as permissive when
it can be gathered from the context as well as from the language of
the statute that such is the apparent intention of the legislature.
The word "may" may, at times, be construed as "shall" if the
statute provides for the doing of some act which is required by
justice or public duty, or where it vests a public body or office with
power and authority to take such action which concerns the public
interest or rights of individuals.
Article 3 of the Labor Code of the Philippines is an example of
a mandatory provision. It provides as follows:
"Article 3. Declaration of Basic Policy. - The
State shall afford protection to labor, promote full employ -
ment, ensure equal work opportunities regardless of sex,
race or creed, and regulate the relations between workers
and employers. The State shall assure the rights of work-
ers to self-organization, collective bargaining, security of
tenure, and just and humane conditions of work."

Section 28, Article VI of the 1987 Constitution is an example of

a directory provision. It provides as follows:

"x x x

(2) The Congress may, by law, authorize

the President to fix within specified limits, and
subject to such limitations and restrictions as it
may impose, tariff rates, import and export quotas,
tonnage and wharfage dues, and other duties or
imposts within the framework of the national
development program of the Government."

In Diokno v. Rehabilitation Finance Corporation, 91 Phil.

608, the Supreme Court ruled that the phrase 'x x x shall subject
to avaihbiity of funds 3r x x" implieg nota m9ndtory, but n
discretionary meaning.
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RULES OF CONSTRUCTION OF SPECIFIC STATUTES

On this basis, the second sentence in Section 4, Article XIII

of the 1987 Constitution, implies that although the word "shall" is
used, it is directory. It provides as follows:

"Section 4. The state shall, by law, undertake an

agrarian reform program founded on the right of farmers
and regular farmworkers, who are landless, to own directly
or collectively the lands they till or, in the case of other
farmworkers, to receive a just share of the fruits thereof.
To this end, the State shall encourage and undertake
the just distribution of all agricultural lands, subject to
such priorities and reasonable retention limits as the
Congress may prescribe, taking into account ecological,
developmental, or equity considerations, and subject
to the payment of just compensation. In determining
retention limits, the State shall respect the rights of small
landowners The State shall further provide incentives of
voluntary land sharing" (Underlining Supplied)

On the other hand, the use of negative or prohibitory words in

a statute is indicative of the legislative intent to make the statute
mandatory. The words "shall not," "cannot," or "ought not" indicate
positive prohibition.

Examples:
Section 13, Article VI of the 1987 Constitution
"Section 13. No Senator or Member of the House
of Representatives may hold any other office or employ-
ment in the Government, or any subdivision, agency, or
instrumentality thereof, including government owned or
controlled corporations or their subsidiaries, during his
term without forfeiting his seat Neither shall he be ap-
pointed to any office which may have been created or the
emoluments thereof increased during the term for which
he was elected."

Section 6, Article VI of the 1987 Constitution

"Section 6. No person shall be a Member of the House
of Representatives unless he is a natural-born citizen of
the Philippines and, on the day of the election, is at least
twenty-five years of age, able to read and write, and,
except the party list representatives, a registered voter
168 STATUTORY CONSTRUCTION

in the district in which he shall be elected, and a resident

thereof for a period of not less than one year immediately
preceding the day of the election."

Section 1, Article III of the 1987 Constitution

"Section 1. No person shall be deprived of life, lib-
erty, or property without due process of law, nor shall any
person be denied the equal protection of the laws."

VIII. PERMANENT STATUTE

It is a statute whose operation is not limited to a particular
period of time but which continues in force until it is duly altered or
repealed.
Example: New Labor Code

IX. TEMPORARY STATUTE

It is a statute whose life or duration is fixed for a specified
period of time at the moment of its enactment, and continues in
force, unless sooner repealed, until the expiration of the time fixed
for its duration.
Example: PD No. 851 granting 13th Month Pay

It is a statute which relates to persons, entities, or things as

a class or operates equally or alike upon all of a class, omitting no
persons, entity, or thing belonging to a class.
Example: The Family Code

M. SPECIAL STATUTE
It is a statute, which relates to particular persons, entities or
things of a class.
Example: Child and Youth Welfare Law

XII. LOCAL STATUTE

It is a statute whose operation is confined within territorial
limits other than that of the whole state, or applies to any political
subdivision or subdivisions of the state less than the whole, or to
property and persons of a limited portion of the state, or is directed
 CHAPTER VI 169
RULES OF CONSTRUCTION OF SPECIFIC STATUTES

to a specific locality or spot, as distinguished from a law which

operates throughout the state.
Example: Law granting autonomy in Southern Philippines

XIII. OTHER STATUTES

1. STATUTES IN DEROGATION OF RIGHTS - Price
control laws are in derogation of common or general
rights. They are generally strictly construed and rigidly
confined to cases clearly within their scope of purpose.

2. STATUTES GRANTING PRIVILEGES - Those who

invoke a special privilege granted by a statute must
comply strictly with its provisions. In the case therefore
of a legislative franchise granted to a firm to operate
electric light and power, on condition that it should start
operation within a specified period, the failure of said firm
to start operation within the specified period is a ground
for forfeiture of the franchise.
3. NATURALIZATION LAWS - These are strictly con-
strued against the applicant because the right of an alien
to become a citizen by naturalization is merely a statutory
right. The desire of an applicant to become a naturalized
citizen will still require the filing of his formal petition
and he has still to prove by satisfactory evidence that he
has all the qualifications and none of the disqualifications
specified by law. In case of doubt, the doubt is resolved
against the applicant (Cu v. Republic, 115 Phil. 600).
4. STATUTES IMPOSING TAXES AND CUSTOM
DUTIES - Generally they are construed strictly against
the taxing power and liberally in favor of the taxpayer.
(In Re: Arbuckle's Estate, 188 A. 758) The reason for this
is because tax laws impose burdens on the public. The
scope of tax laws cannot be enlarged as to include matters
not specifically pointed out. In case of doubt, they are
construed most strongly against the government (Goulds
v. Gould, 62 L. ed. p. 211).
5. STATUTE AUTHORIZING SUITS AGAINST THE
GOVERNMENT - A statute whereby the state gives its
consent to be sued is strictly construed, and the waiver of
immunity from suit, being in derogation of sovereignty,
will not be lightly inferred. (Equitable Ins. & Casualty Co.,
170 STATUTORY CONSTRUCTION

Inc. v. Smith, Bell & Co. [Phil.], Inc., G.R. No. L-24383,
August 26, 1967) To justify a suit against the state or
any of its agencies, the statute conferring the right to
maintain the action must be plain and positive, and its
meaning should not be left to doubt (Compania General
de Tabacco de Filipinas v Government 45 Phil 663)
Article XVI, Section 3 of the 1987 Constitution
declares that the State may not be sued without its
consent. When this consent therefore is given, the State
can be sued but this does not necessarily mean that it
concedes to liability. This only means that the one
bringing the suit is merely given the opportunity to prove
that the State is liable.
The consent of the State to be sued may be given
expressly or impliedly. The first may be given through
a general or special law. The second is given when the
state itself commences litigation or when it enters into
a contract. Here, the state devolves into the level of an
ordinary citizen.
6 STATUTES PRESCRIBING LIMITATIONS ON
THE TAXING POWER OF LOCAL GOVERNMENT
UNITS - They are strictly construed against the national
government and liberally in favor of the local government
units. Any doubt as to the existence of the taxing power
will be resolved in favor of the local government The
reason for this is that local government units are now
granted the power to create its own sources of revenue.
Under the 1973 Constitution, the local government units
have no inherent power of taxation
7 STATUTE IMPOSING PENALTIES FOR NON-PAY-
MENT OF TAX - They are liberally construed in favor
of the government and strictly observed and interpreted
against the taxpayer The reason is obvious, this facili-
tates the collection of taxes and penalties and tax eva-
sions will be avoided
8 ELECTION LAWS - They should be construed liberally
to give effect to the expressed will of the electorate
Technicalities should not be allowed to prevail against
the true will of the people
9. ADOPTION STATUTES - They are liberally construed
in favor of the child to be adopted in order to promote the
 CHAPTER VI 171
RULES OF CONSTRUCTION OF SPECIFIC STATUTES

noble objectives of the law. Adoption is not merely an act

to establish a relationship of paternity and filiation, but
also as an act which endows a child with a legitimate sta-
tus. (Prasnick v. Republic, 98 Phil. 665) They also supply
solace to those who have no children or to those who have
lost them, so that the void, which exists in a childless
home, may be filled (Yfkigo u. Republic, 93 Phil. 244).
10. AMNESTY PROCLAMATIONS - They should be con-
strued liberally in favor of those who are given amnesty.
The reason for this is to encourage those who have not yet
applied for amnesty to return to the fold of the law and
have normal lives once again.
11. VETERAN AND PENSION LAWS - They should
be liberally construed and administered in favor of the
persons intended to be benefited by such law in order to
achieve the humanitarian purposes of the law.
12. GENERAL WELFARE LEGISLATIONS - They
are construed liberally in favor of those intended to be
benefited. This construction is more in consonance with
the constitutional mandate to promote social justice.
Examples: Labor Code of the Philippines, Social
Security Law, and Agrarian Reform Law
13. PROBATION LAW - It should be liberally construed
to achieve its objective, which is to give another chance to
first offenders to go back to normal life.
14. LAWS ON ATTACHMENT - They are liberally
construed in order to assist the parties in obtaining
speedy justice.
15. RULES OF COURT - Section 6, Rule 1 of the Revised
Rules of Court provides as follows:

"Section 6. These rules shall be liberally con-

strued in order to promote their objective and to
assist the parties in obtaining just, speedy and in-
expensive determination of every action and pro-
ceeding."
16. STATUTES PRESCRIBING QUALIFICATIONS FOR
AN OFFICE - Statutes prescribing the qualifications
of persons to a public office is, as a rule, regarded as
172 STATUTORY CONSTRUCTION

mandatory. This means that a person, who is not eligible

or qualified at the time that he assumed office, may be
ousted from office at anytime upon discovery that he is
not indeed qualified and eligible.
17. ELECTION LAWS ON QUALIFICATION AND DIS-
QUALIFICATION - These are considered mandatory
even after the elections. Hence, a candidate who filed his
certificate of candidacy beyond the period required by law
is disqualified to run for office, as his certificate is void.
This is true even if the disqualified candidate wins the
election. He still remains unqualified for his election and
does not validate his certificate of candidacy (Sanchez v.
Del Rosario, 1 SCRA 1102).

XIV. OTHER CLASSIFICATIONS

I. A statute could either be prospective or retroactive
PROSPECTIVE STATUTE - It is one which operates upon
or regulates acts or transactions taking place after it takes effect. As
a rule, laws operate prospectively, not retroactively, except in the
following cases:
(a) If the law itself provides that it will be retroactive (Art-
icle 4, New Civil Code);
(b) If the law is remedial in nature;
(c) If the law is penal in nature provided it is favorable to the
accused or the convict, and that the accused or convict
is not a habitual delinquent (Article 22, Revised Penal
Code);
(d) If the law is curative; and
(e) If the law is of an emergency nature and authorized by
the police power of the government.
Article 4 of the New Civil Code provides as follows:

"Article 4. Laws shall have no retroactive effect,

unless the contrary is provided."

In general, laws are prospective, not retroactive, and no court

will hold a statute to be retroactive when the legislature has not
said so. In other words, statutes are to be construed as having only
 CHAPTER VI 173
RULES OF CONSTRUCTION OF SPECIFIC STATUTES

prospective operation, unless the legislature intends that they will

have retroactive effect. This could either be made expressly in the
law itself or it could be implied from the language used. In case of
doubt, the doubt will be resolved against the retroactive operation of
laws (Montilla v. Agustinia Corp., 24 Phil. 229).
RETROACTIVE STATUTE - It is one which creates a new
obligation, one which takes away or impairs vested rights acquired
under existing laws, or creates a new obligation and imposes a
new duty, or attaches a new disability in respect of transactions or
considerations already passed (Castro v. Sagales, 94 Phil. 208, 210).
As mentioned earlier, there are times when laws are precisely
made retroactive. When the law itself provides that they shall apply
retroactively, or when the intention to make the law retroactive is
implied from the words used, the problem that may arise is whether
the said law is violative or not of the constitutional provisions on
impairment of obligation and contract, ex post facto law, and bill of
attainder, thus:
"Section 10. No law impairing the obligation of
contracts shall be passed." (Article III, 1987 Constitution)
"Section 22. No ex post facto law or bill of attainder
shall be enacted." (Article III, 1987 Constitution)

A good example of a provision, which expressly provides for the

retroactive effect of the law, is Article 256 of the Family Code to wit:
"Article 256. This Code shall have retroactive
effect insofar as it does not prejudice or impair vested or
acquired rights in accordance with the Civil Code or other
laws."
The retroactive effect of the Family Code, however,
is qualified by the proviso, thus: "x x x insofar as it does
not prejudice or impair vested or acquired rights in
accordance with the Civil Code or other laws" should be
respected.

II. A statute could either be a repealing act or an amenda-

tory act.
REPEALING ACT - It is one which revokes or terminates
another statute, either by express language or by implication.
(Crawford, Statutory Constitution, p. 110)
174 STATUTORY CONSTRUCTION

REPEAL
Laws are repealed only by subsequent ones (Article 7, New
Civil Code) and laws are repealed either expressly or impliedly.
However, implied repeals are not looked upon with favor. (U.S. v.
Palacio, 33 Phil. 208) Hence, if both statutes can stand together,
there is no repeal. (Lechoco v. Apostol, 44 Phil. 138)
The Civil Code repeals the Old Civil Code of 1889.
The Family Code has expressly repealed Title III on marriage;
Title IV on legal separation; Title V on rights and obligations
between husband and wife; title VI on property relations between
husband and wife; Title VII on the family; Title VIII on paternity
and filiation; Title IX on support; Title XI on parental authority, and
Title XV on emancipation and age of majority.
Article 254 of the Family Code provides as follows:
"Article 254. Titles III, IV, V, VI, VII, VIII, IX, X
and XV of Book 1 Republic Act No. 386, otherwise known
as the Civil Code of the Philippines, as amended, and
Articles 17, 18, 19, 27, 28, 29, 30, 31, 39, 40, 41 and 42
of Presidential Decree No. 603, otherwise known as the
Child and Youth Welfare Code, as amended, and all
laws, decrees, executive orders, proclamations, rules and
regulations, or parts thereof, inconsistent herewith are
hereby repealed."

This article specifies the provisions of the Civil Code and the
Child and Youth Welfare Code that were expressly repealed by the
Family Code.
The closing sentence in Article 254 which states "x x x all laws,
decrees, executive orders, proclamations, rules and regulations, or
parts thereof, inconsistent herewith are hereby repealed," indicates
that the repeal referred to is merely an implied repeal.

THE REPEAL OF A STATUTE IS EITHER

TOTAL OR PARTIAL
A statute, which is totally repealed, is rendered revoked com-
pletely. When the repeal, however, is partial, the portion or portions
not affected by the repeal continue to exist.
Repeal is a question of intent. Express repeal of a statute or any
of its provisions is accomplished by a direct and express provision or
declaration in a subsequent statute so there will be no doubt as to
 CHAPTER VI 175
RULES OF CONSTRUCTION OF SPECIFIC STATUTES

what statute is intended. In this case, the courts should respect the
specific intent of the legislature to repeal what it has so specified.
Article 254 of the Family Code specifically enumerates the
provisions of the Civil Code and the Child and Youth Welfare Code
that were repealed by the Family Code
Repeals by implication can be done in two ways (1) By covering
the whole subject matter so that it is intended as a substitute for
the earlier statute, and (2) By containing provisions which are
inconsistent and irreconcilable with the earlier statute.
The courts are slow to hold that a statute has repealed another
by implication If the courts cannot avoid doing so through the use of
a fair and reasonable construction, they will not make adjudication
that a statute has repealed another by implication. This is in accor-
dance with the established principle that repeals and amendments
by implications are not favored (Quisimbing v Lachica G B No
L-14683, May 30, 1961, 2 SCRA 182)
The second sentence in Article 254 of the Family Code which
says "x x x and all laws, decrees, executive orders, proclamations,
rules and regulations, or parts thereof, inconsistent herewith are
hereby repealed," gives rise to this question Will that be considered
a repeal? If so, what is it?
It is not an express repeal, unlike the first sentence of Article
254 which states specifically the provisions, and the titles, which are
repealed It is merely an implied repeal because it fails to identify or
designate the act or acts that are intended to be repealed.
AMENDATORY ACT - It makes an addition to the original
laws or it operates to change it
An amendment of a statute is effected through the enactment
of an amendatory act modifying or altering some provisions of the
statute. The amendment could either be express or implied.
There is an express amendment when the amendatory act
specified the provisions of a statute that are amended. There is an
implied amendment where a part of a.prior statute embracing the
same subject has become inconsistent with the new provisions as
amended
How should the amendment be construed?
1. A statute and its amendment should be construed in its
entirety. The amendment becomes part of the original
statute as if it had always been contained therein;
176 STATUTORY CONSTRUCTION

2. Provisions of the original act which are not affected by the

amendment shall remain in force;
3. The amendment made indicates that the legislature
intended a change in the law or in its meaning. The court
therefore give effect to such intent;
4. As a rule, the amendatory act operates prospectively
unless otherwise provided or if it could be implied from
the language used that the legislature intends to give it
a retroactive effect. Even in the latter case, however, the
amendment cannot be construed retroactively if doing so
will impair vested rights or the obligation of contracts
(People v. Buttler, 120 SCRA 281).

III. A Statute could either be a reference statute, a

supplemental statute, a reenacted statute or an adopted
statute.
REFERENCE STATUTE - It is a statute, which refers to
other statutes and makes them applicable to the subject of legisla-
tion.
A reference statute should be construed as to harmonize with,
and, give effect to, the adopted statute.
This statute is often used to avoid unnecessary repetitions. By
simply making reference to a particular provision in an existing law
and without the need of introducing another law, the rule, provision
or term/s intended to be applied is stated in the reference statute.
Hence, the provision which states that the terms legal or regular
Holiday and Special Holiday, as used in Article 94 of the Labor
Code shall now be referred to as a regular Holiday and Special day,
respectively, indicates that this is a reference statute.
SUPPLEMENTAL STATUTES - They are intended to sup-
ply deficiencies in an existing statutes and to add to, complete, or
extend the statute without changing or modifying its original text.
The original statute and the supplemental act should be con-
strued together in its entirety.
REENACTED STATUTES - They reenact provisions of an
earlier statute. The provisions in the earlier statute are reproduced
in the same words or substantially the same words. The courts will
therefore follow the construction, which the adopted statute previ-
ously received.
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ADOPTED STATUTES - They are statutes patterned after,

or copied from a statute of a foreign country. The construction given
to them by the courts of the country from which they were taken will
be considered by the courts. Such construction, however, will not be
conclusive to our courts.
Our laws on voluntary and involuntary insolvency is in great
part a copy of the Insolvency Act of California, enacted in 1895, which,
in turn, was based upon the United States Bankruptcy Act of 1867
though it contains a few provisions from the American Bankruptcy
Law of 1638 (Sun Life Assurance Co. u. Ingersoll, 42 Phil. 81).