Republic of the Philippines

PROVINCE OF ILOCOS NORTE

PROVINCIAL LEGAL SERVICES

Erme S. Labayog
Provincial Legal Officer

November 24, 2022

ATTY. FRANKLIN DANTE A. RESPICIO

Chairperson, Committee on Laws, Rules, ethics and Privileges

Dear Sir:

This has reference to His Honor’s letter requesting our

opinion/findings/comments/recommendation pertaining to City Ordinance No. 2022-023 Series
of 2022 of the City of Laoag entitled “AN ORDINANCE AMENDING SECTION 1 OF CITY
ORDINANCE NO. 2022-015, SERIES OF 2022, “AN ORDINANCE AMENDING SECTION
41, INCENTIVES AND REWARDS SYSTEM, OF CITY ORDINANCE NO. 2021-130,
SERIES OF 2021, OTHERWISE KNOWN AS “AN ORDINANCE AMENDING CERTAIN
SECTIONS OF CITY ORDINANCE NO. 2020-045, SERIES OF 2020-AN ORDINANCE
ENACTING THE 2020 TRAFFIC AND ORDER CODE OF THE CITY OF LAOAG AND
PROVIDING PENALTIES FOR VIOLATONS THEREOF”.

Pertinent to the above is Republic Act (R.A.) 7160 which provides:

SECTION 192. Authority to Grant Tax Exemption Privileges.

– Local government units may, through ordinances duly
approved, grant tax exemptions, incentives or reliefs under
such terms and conditions as they may deem necessary.

Anent thereto, while the Sangguniang Panlungsod may enact ordinance conferring
incentives to the Apprehending and/or Arresting officer, the grant of said monetary benefits shall
still be subject to the availability of funds of the City Treasury and in pursuant to an Appropriation
Ordinance to be enacted by the Sangguniang Panlungsod consistent with Section 305 (a) of the
Local Government Code which provides:

SECTION 305. Fundamental Principles. – The financial

affairs, transactions, and operations of local government units
shall be governed by the following fundamental principles:

Provincial Capitol, Barangay 10 J. P. Rizal St., Laoag City 2900

Tel. No.: (077) 772-1211 to 19 * Fax No. : (077) 770-3966
email: erme@ilocosnorte.gov.ph * website: www.ilocosnorte.gov.ph
 (a) No money shall be paid out of the local treasury except in
pursuance of an appropriations ordinance or law xxx.

In Philippine National Bank VS Cayetano A. Tejano, Jr., G.R. No. 173615, October
16, 2009, it is binding rule, conformably with Article 4 of the Civil Code, that generally, laws
shall have only a prospective effect and must not be applied retroactively in such a way as to
apply to pending disputes and cases. This is expressed in the familiar legal maxim lex prospicit,
non respicit (the law looks forward and not backward.)The rationale against retroactivity is easy
to perceive: the retroactive application of a law usually divests rights that have already become
vested or impairs the obligations of contract and, hence, is unconstitutional. Although the rule
admits of certain well-defined exceptions such as, for instance, where the law itself expressly
provides for retroactivity, we find that one of such exceptions that would otherwise lend
credence is Section 1 of the subject ordinance.

There is no showing that the provisions of the ordinance run counter to the tests for a
valid ordinance as elucidated by the Honorable Supreme Court in the City of Manila v. Laguio,
Jr., G.R. No. 118127, April 12, 2005.

Further, the Certificate of Public Hearing as well as the required voting profile were
complied with, thus, we respectfully opine City Ordinance No. 2022-022 Series of 2022 of
Laoag City is VALID.

We however submit to His Honor’s sound judgment and discretion.

Very truly yours,