= cave canceting the Outhoity LOus_ in regards — with the regulation of subseriber robes — On uly 14,4986, respondert._Sangquniang_fanglungrod_enadttd _ Aesolution No. 240 granting petitionera permit to confucd, inftatl,and Operate a_CATV system _in Datongat City. fection of the Peicution provider Ahat the petitioner tt quthoried 40 charge ttt subscribe the maximum —fates_specified therein, provided howevel, that ony inceenseof rater chal -be_tutiecl 4a the opproval_of Sangguniong fanglungcod. Sometime in_November 1992, petitioner increased iit subsoriber tales inte? 98..00_ tv P-490.00.persmonth: Asa: tesULA,-tespondent_Mayor wrote Petitioner_a stetter threatening to cancel Hs permit. unless iisfecurer the -Q9 proval_of ferpondent Sangguniang Panglungrod, pursuant.to Resolution No 240. Respondent_argues thai_Resolution was enacted pursuant to __ $e. 199. C0)_and_Cd)_of BP 229 (16C of 4962) ‘which authori, Lous to regulate businesses cond. it in the nature of acontract_belween petitioner —Ond_tupondent, Petitioner then -fted_with the RTC “a lida Se ijuitian aleging that respondent Sangguniang Fanglungfed has no quifiriy to regulate the __ _Sulvseriber rater charged by. CATV operatot! becquie under £0 No. 205, the National Telecommunications Commission has the sole authority. to regulate the _O4TV_ operation in the Philippines. ____whether or nota Local Government Unit reguiate the fubsuriber rates @frarged_by CATV operators within Hy 4erritonial jurisdiction? “The Court held that the resolution ivan enactment of an L¢u acting_only aJ_an_agent_of national legislature. There is no_law authorizing LGUs te grant franchisestu operate CATV. Whatever authority LGUs hod before, She same had been withdrawn when President Marcos ittyed PD “Wo. 4512 ferminating all ftanchises permits or cectifivales for the operation of CATV sSyitem previouily qrankd by local_qovernment. __Today pursuant to Setion 3 of EO No. 426 only pening, asioeiations, ‘partnershioy, torporations or Cooperatives granted a Provisional authority or Certifcate of Authority by the WTC may indtall, operate and maintain ‘a_cable_television system_or render cable television sgrvives within a _fervie_arta._It_i_dlear_that in the absence of constitutional or legislative. Quihonzation, municipalities hove no_powerto grant frqnchites.—Consequently, the protection of (onstitutonal provision os te Ampairment_of the obligation of a contract does nol ectend +o privileged, fianchises_and_grants_given_by a munivipal'ty in exvese of (14_powert or —Uulbra_yires, oe —___— ——The_qeneral_welfare clause the delegation in_flatutaty form_of the —politt_powerof the fate to LeU. through this Lous may prescribe —Neoulations te_protect the ives health, and property of sheir constibients “And _maintain_peaceand_order_within_sheic temective 4etretorial juvitd cts. Adordingiy, we -have_Upheld enactments providing, fr inétan, the tegulation 0 gambling, the occupation of rig_driver, the operation _and_initaliment of Pinball machines, the maintenance and operation_of sxckpiit, the echumation nd transfer_of torptes_fiom public burial grounds, and the operation of hokey — ‘Mnolel4,_and_todging neusesas vaqiid epecctiee by local tegulatures of phe Polita_power_undershe- general welfare aus Se —Ltke_any other enterprize, CATV operation. maybe ttgulalea by LOU‘ unde the_general_wolfte dauce. his it primarily because CAV system tommite Ahe_Indivcretion of causing public Properties: (Hues publi. properties — x -ln_order_te teach subscribers) The physical realities \of Constructing CAT. System_sthe_use of pully sheets, rights of ways, she funding of — Shuctues, andthe parceling of large tegions allow an LGU a_tertain— degree of regulation over_CA1V operator. ‘his ithe some regulation that —— Hh extercises over all_privaleentecprd ter_within itt feriteny, Dut_while, we tetognite the LCUs power under the general welfare claute, we cannot sustain evolution Wp. 210- the Court tr —conwined that respondents stayed fom the well recognited limits of its power. ‘the flaws in Resolution Mo 40 are: G) it yiolates the mandate of existing laws ond (2) A violates the Actes deregulation poliy pver she_CatV_industry, fe, Wty The opparert_defect_in Resolution No 240 5 dha id Gontravenes £0. \o- 205 and $0 Mo. 4Bb insofar as ¥ petmits relygndert_ Sangguniang Tanlungéod to usury a power exclusively veiled in_she VC, — the power te fix she subscriber tates charged by CATV operators. The fixing of subscriber rater y definitely one ef the matters within the NiCr ecdusive domain. Deregulation ti the reduction of government regulation of business te pecmid eee market s and competition « when the State declared.o polity of deregulation, whe Lous ae bound_to fillow. verily, Inthe case at_bar, petitioner may inceaie — iis Subscriber rater without respondents apprvale tion granted. _ _PHILRECAv. DILG SS lait_sai a ‘Bled by pelitoner In dneic on —beha’_and_in behalf of_cther_electri« couperaties organized and. exithing ~under_PD #269 whore member of_petitinner Philippine Rural Hectrie ~Aioperativer_Aupciation, inc. (PHILRECA). under 0-4 269, as ansended, or the National Eledriivation Administration Decree, itis the declared policy of the fale te provide.” the total electrifivation of the Philippines on_on_avea coverage bavis —the_same_being vital a the peowle_and_the sound development of the -nation.” Puguant to this policy, £0. #269 ainis to" promote, entourage -and_ustict_ all public _tecuivexentities engaged: in..upelying electric —fervice, partitularly electric cooperatives by giving every tenable Supyor ana atcistante ty the electric woperativel coming within the purview —of the law. SS —_Under Section 39. of P0262, chapetotives are granted tax exemption. 1, They_aue permanently exempl for_inione tare ond fa specisied period, exenipt fom ail_national, local, and outnizipal taxes gnd fies —@_well_ at dutier on fireign goods acquired Ge operations. hit exemption Lact until_etther the dhiieth year after cooperatives —organitation_or_tonvecsion,oc_until d_bewme fee of borrowing Indebled- Nes, Whichever lomes fet. the Board of Adnutaistated, intonsuttaHon— with the Bureau of Internal fevenue, & tasked with promulgating rules_for_ioplementiug these tax_ecemp tions. ae From 4994 ta 1976, in order to nance the electr'fication_projecds _ envisioned by PD# 269, as amended, the Philippine Gov't, acing though the National Zonomic Counci! (now National Ftonomic Development Authority) and the National Electrification Admintstratoy, entered int Six_loan agreements_with the govecament of United States of Amerita through the United (tatec Ageny for_Intecnational_ Development (USAID) with electric Cooperatives, including peditiones — _al beneficcarier. The 6 loan agreements Involved al a total _amount_of approvimatly #6 000 000, oa, _____the_loan_ag reementt_wontatn_cimilarly wocdedl_prvvidions on the jar application of the loan and any property or Commodity acquited through the proceeds of Yhe Ioan. thys, fection &-5 of AID provides that the loan provided shall be fiee fem any faxati_ot_fies_impostd under the philippine low the bower. agrees to pay the principal_and tnderesd 4 AID without any deduction tr_such_tayer or Res. Hf gny tontracters or Commodily— _procurement tanactins fnanved by the loan are nod exempt _S| eee from_tares_trdudier_impoled_by1he Philippine law, the borrower ot beneficiary must Pay or imburle them using funds other —than_thote_prvided under the loan. —_—Fetitionen_tontend_that. purtwarrta the proviione of PD Me £6o,"oL amended ‘and the abate =mentiontd_peicivon in the —loan_agreementy, they dre_aempi_fim_payment oflacal taxes, — —Ineluding payment of teal property tay. With the patiage of the— —Loval_ Government. Code, however, they alleged that_theic tax —femptions have—been invalidly withdrawn. In parkiular, pebbimet carl Secbions 193 and 034 of the Uical Govenment Code tn he _qrund thal she @id_prvitiony ditcriminalt agaings them, _ —in_violatim of equal prtechon Uaute. furihec they tubmit —that_the_tatd_povatitus_ace_untonsttutimal because they —Impait the obligation of ontracte between the Philippine — Government _anol_the United States Covernment. ” Whether or nod there i cn impairment of the obligations of tontrad under the Loan entered into between the Philipeines —nd_United States of America. _4 | § It it_ingrained_in_Jucipradence that the tontihattonal -Pohibition_on the impairment of the obligations of tontrau_ does not_pwhibit every change 10 exiting laws. To fal within jhe prohibition, she change mud not only impair the obligation __ of the existing Lontract, byt the impairment mud be substantial: Whal_constitule: substantial impairment auording to this Court M_the cays of Clemons ys Nolting 4 Jaw_which changer the term of alegal ental between | Parties, either in: the time or tede of perfymance, or imposes | __new-tondi'tivns, or_dispences_with thote expressed, or aushorires | | fir s_satistaction_tomething different fom that provided —__| in_ itt termi, 1% law which_impate the obligabim ofa _|_ _Unfradt_and there fre tt null + wid. “Moreover, te Gnehtule impalement, the law_muw_affed a “Change_in she rights of the partier with teftrenve to each oiher “and_not_with respect to non- parties. In this cate, the gould provision Under ths loan ag rternent does nol_purport to _ grant_any tax txemption_in_fayor_of any party te the_tmbat. including benefuavies thereof. the provisitns simply shit4 the _ —tox_burden, Hany, on the tansactiew_under the loan re tothe borrower and for beneficiaries tf the loan. a aThus they do_nol_impaic_the_obligatiun. 94 the borower, — —the_tendlec_or_banefrcary-of- the loan_agreemen ts as, infact, — Soe ee J_ granted therein. _ : :a hacls “Cait toncetning_the-concdihutfonal. quoranty of -nan-— Impairment of Contracts ond Hi relation to the principle of Police Power, a ae ca ki ne a Representative Tobias MM. Tiangeo Of United Nationalist Alliane (UNA) wrote to Atty. Esmeralda Lada, Law Department Director of- -COMELEC, Tianguo_ts_requetting the. compliance. fom foctal Weather Stations ~CAWA) regarding the disclosure of the ilentilies of Jubseribecs who paid fie A pre-election survey conducted fom February 12 to, 201% Tango —had_previously asted _swé for this information but reelved incomplete details —Acting_on Tiangets letter, CoMELEC En Bane scheduled hearing iy April AG, 2019, directing WS 14 submit_a comment within 2 days Pulse Asia alio_tecaived a letter from COMELEC requedling itt representative: attendance at_the hearing. During the hearing, COMELEC Chairman. Sixto_f. Tuillanies, Jt._clarified. that it way not a formal investigation, ather — -9_clarifitatory_proweding. — aa On April 23, 2013, COMELEC. iswied a fesolution No. ‘ou, dicecting Ow, Puise Aria, and other similar survey ems 46 Submit the names of a\t___ commissioners, payors, and subscribers of the surveijy_published fom Febuary 12, 2019, onwards within 3 days for_verifttation. The resolution also Mandated that ail sublequent surveys be Otompanied ty required information under Republic Ad wo 9006 Cfair Plection Ack). __COMELE cited provisions under the constitution and relevant tows os — Yhe_basis for this resolution. Despite the inuante of Resolutions No.a6314 Sw5Sand Pulte Asia_claimed they had n't received copies of it, Submitting Certified true topy they sbtaintd for their petition’: purpose. n_a letter dated April 30, 2019, Sws ond Pulte Ata nofifed COMELEC Chairman brillantes that they had not received a Copy of Kefolution No: 9634, arguing thatthe téiolution war itsued with ulbra vires, eveeding the ope of the fait Election Ad, and violaled the non impairment of _tontrads clawe of the Constitution. the pebitionsrsbrovghh expreu thee _ intent 4 bying the matter be fore the Court, ap they sought a temporary — testraining oder ond for Writ of preliminay Injunction _in_she meantime. 2 eee ere ee “Whether or not_Keiolution No. 9634, insofar at it compels petitioners 44 Submit the names of their subscribers, violates the constitutional proscription against. the impairment of tontrasks ?The Court 1¢d_the_yalidity_of fesohution Wo. 9634 ___— The _nametof thole who commission oe pay tr election fucvey.s, —Including subieribers of surwey rms, must be divloed pursugnt bo —fer-5-2— —foragmph Cal of she Fair Election Act. This tequirement is a_valicl —tequlation_in_the excercise of polise power and effects the tans Mbi@ral — policy of * guaranteeing equal awed 4 opporhinibiel Sr public servive-"___ Section 5.2(a) requinment_of disclosing subseibert neither curkaily petilieney” fie_apeech rights nor violate: the tondtitutional. pros oie —impaicment_b{-tontrads— However it evident thot fetolution Re v4. wat pmmnulga ted in -wiolatten_of the period set_by fair Flection Ad Petitioners were also not Served a copy ot the Resolution wo. 9644 wish which hey were acked to __ -tomply.__-eeee SSE AES Fetitioness argue that erclution Mp 234 vidates Acticte MN, fection 10_of the 49% Constitution, they claim. thai HL" unduly tnlenfexes with ‘here existing tontracts_by Grcing them -lo_dticote. Infermak sn_that,, — ands the wnlraud, br confidential or privileged Fort park com £146 arques_thatthe non er 6 Alinitea by the exuxcite of police power of the State, in the Interett_of fubli. health, Sa@ly, morals, and genecal welGsre...\t ta lasitwule ia Coybaues that tne law deemed written into. the corrtmol bet ween—parties.. The_Inuporation of regulations Inte tontcack it *o. postulate of she police power_of the ftate-” ae — tn Ortigas and lo vs. Yeah hank, the teatoushty bebeven dhe Rael — police power andthe princiyleol_tton= impairment of tonfravtc ict CtihaKenally protected, itis not absolule and must be ballaned with the legitimate _ excercise of pollce power: he court emphasited that police Power i Slevible — and_adaptable to evolving socal conditions, prioritizing public welfare Geer individual_property nights when _necettarg.. oe