01 Province of Batangas v. Romulo

8/19/2019 01 Province of Batangas v. Romulo

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01 - PROVINCE OF BATANGAS v. ROMULO Digest by: Kathleen Villamin (sourced from

Monique Lee’s digest)May 27 2!!" #alle$o %r& '&

Topic: erie* Local +oernments as ,art of the -.ecutie /ranch

Gener! Fc"#:0n 13 then 4res& -strada issued - "3 entitled 5-stablishing a 4rogram for Deolution 6d$ustment and

-qualiation8 in order to 5facilitate the ,rocess of enhancing the ca,acities of L+9s in the discharge of thefunctions and serices deoled to them by the ational +oernment 6gencies concerned ,ursuant to theLocal +oernment #ode (L+#)&8 Later the ,rogram *as renamed as the Local +oernment %erice-qualiation ;und (L+%-;)&

;or 13 the D/M *as directed to set aside an amount to be determined by the ersight #ommitteebased on the deolution status a,,raisal sureys underta>s goerningequitable allocation and distribution of said fund to L+9s&

0n the +66 1 of the 4? billion allotted as the share of the L+9s in the internal reenue ta.es 4@billion shall be earmar6 of the L+9s is an anathema to the,rinci,le of local autonomy& (-.am,le: 0n 11 the release of the L+%-; *as long delayed because theersight #ommittee *as not able to conene that year and no guidelines *ere issued therefor&);urthermore the ,ossible disa,,roal by the ersight #ommittee of the ,ro$ect ,ro,osals of the L+9s*ould result in the diminution of the latter’s share in the 0>6&

C& I!!e%! A'en*'en" "o ",e LGC on Percen"%e S,rin% 'on% LGU#. =he ersight #ommitteeresolutions also made an im,ro,er amendment to %ec& 23@ of the L+# on the ,ercentage sharing of the

0>6 among the L+9s&

%aid resolutions allocate the 0>6 as follo*s: 4roinces "!E #ities 2!EMunici,alities "!EF *hereas in %ec& 23@ of the L+# it ,roides that: 4roinces 2CE #ities 2CEMunici,alities C"E and /arangays 2!E& 4etitioner further ,oint out that there *as an instance *hen-.ec& %ec& >omulo endorsed to D/M %ec& /oncodin the release of funds from the L+%-; to certain L+9s50n accordance to *ith the hand*ritten instructions of 4resident 6rroyo&8 =hus the L+9s are at a lossas to ho* a ,ortion of the L+%-; is actually allocated&

Re#pon*en"$# Ar%&'en"#:1& LGU S,re# No" So!e! e"er'ine* / ",e LGC. =he ,roisos in the +66s of 1 2!!! and 2!!1

and the assailed resolutions by the ersight #ommittee are not unconstitutional because %ec& ? 6rt& A

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of the #onstitution does not s,ecify that the 5$ust share8 of the L+9s shall be determined solely by theL+#& =he #ongress can also determine *hat should be the 5$ust share8 of the L+9s in the nationalta.es&

2& LGC Percen"%e S,rin% No" In"en*e* "o Be A Fie* e"er'in"ion. %ec& 23@ of the L+# *hich,roides for the ,ercentage sharing of the 0>6 among the L+9s *as not intended to be a G.eddetermination of the L+9s’ 5$ust share8& L+9s hae no ested rights in a ,ermanent ,ercentage as#ongress may ad$ust the 5$ust share8 of the L+9s& %ec& 23@ *as merely intended to be the defaultshare to do a*ay *ith the need to determine annually by la* the L+9s’ $ust share&

C& 4etitioner has no legal standing because he has no suHered in$ury& 0n fact the ,etitioner’s 5$ust share8has een increased&

"& 4etition should be dismissed for raising questions of fact to the %#&@& 4etition is already moot since the 0>6s for the years 1 2!!! and 2!!1 hae already been released

and the goernment is no* o,erating under the 2!!C budget

[Issue/ Held: WON the assailed provisos in the GAAs and the OCD resolutions violate the Constitution andthe LGC / YES

SC RULING[!ro"edural #ulin$: %&' !etitioner has lo"us standi to sue sin"e its interest pertains to the LG(s share in thenational ta)es* %+' !etition involves a si$ni,"ant le$al issue and the nature o- the present "ontrovers.arrants the rela)ation o- pro"edural rules* %0' 1he SC ill de"ide a 2uestion otherise 3oot and

a"ade3i" i- it is "apa4le o- repetition5 .et evadin$ revie6

[Su4stantive #ulin$: 1he SC "ites the -olloin$ as 4asis -or its de"ision: %ec& 2@ 6rticle 00 137#onstitution =he %tate shall ensure the autonomy of local goernmentsF %ec& 2 6rticle A 137#onstitution =he territorial and ,olitical subdiisions shall en$oy local autonomy&

1T,e ##i!e* provi#o# in ",e GAA# o( 12223 4000 n* 4001 n* ",e OC re#o!&"ion# vio!"e",e con#"i"&"ion! precep" on !oc! &"ono':

%ection ? 6rticle A 137 #onstitution Local goernment units shall hae a $ust share as determined

by la* in the national ta.es *hich shall be automatically released to them& 51his provision 3andates

that %&' the LG(s shall have a 78ust share7 in the national ta)es* %+' the 78ust share7 shall 4edeter3ined 4. la* and %0' the 78ust share7 shall 4e auto3ati"all. released to the LG(s6

=he entire ,rocess inoling the distribution and release of the L+%-; is constitutionally im,ermissible& =he L+%-; is ,art of the 0>6 or B$ust shareB of the L+9s in the national ta.es& =o sub$ect its distributionand release to the agaries of the im,lementing rules and regulations including the guidelines andmechanisms unilaterally ,rescribed by the ersight #ommittee ma


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Decentraliation means deolution of national administration I but not ,o*er I to the local leels& =hus:

o* autonomy is either decentraliation of administration or decentraliation of ,o*er& =here isdecentraliation of administration *hen the central goernment delegates administratie ,o*ers to,olitical subdiisions in order to broaden the base of goernment ,o*er and in the ,rocess to ma6 shall be allocated among the L+9s:

(a) 4roinces I =*entythree (2CE)

(b) #ities I =*entythree ,ercent (2CE)F

(c) Munici,alities I =hirtyfour (C"E)F and

(d) /arangays I =*enty ,ercent (2!E)&

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o*eer this ,ercentage sharing is not follo*ed *ith res,ect to the Ge billion ,esos L+%-; as theassailed #D resolutions im,lementing the assailed ,roisos in the +66s of 1 2!!! and 2!!1,roided for a diHerent sharing scheme&

=he Local +oernment #ode of 11 is a substantie la*& 6nd *hile it is conceded that #ongress mayamend any of the ,roisions therein it may not do so through a,,ro,riations la*s or +66s& 6nyamendment to the Local +oernment #ode of 11 should be done in a se,arate la* not in thea,,ro,riations la* because #ongress cannot include in a general a,,ro,riation bill matters that shouldbe more ,ro,erly enacted in a se,arate legislation&

6 general a,,ro,riations bill is a s,ecial ty,e of legislation *hose content is limited to s,eciGed sumsof money dedicated to a s,eciGc ,ur,ose or a se,arate Gscal unit& 6ny ,roision therein *hich isintended to amend another la* is considered an Bina,,ro,riate ,roision&B =he category ofBina,,ro,riate ,roisionsB includes unconstitutional ,roisions and ,roisions *hich are intended toamend other la*s because clearly these e,ublic 6ct

o& "7! entitled 56n 6ct #reating the Munici,ality of Dianaton in the 4roince of Lanao del %ur&a& =he 6ct mentioned 21 barrios 5in the munici,alities of /utig and /alabagan 4roince of

Lanao del %ur8 that *ere to be se,arated from said munici,alities and constituted into adistinct and inde,endent munici,ality to be


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>es,ondent’s arguments1& =he change in boundaries of the t*o ,roinces (#otabato and Lanao del %ur) is merely the

incidental legal result of the deGnition of the boundary of the munici,ality of Dianaton&a& =hus reference to the fact that ,ortions in #otabato are ta


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c& Rith the -%%6=06+ =&

oc"rine: =he #iil #ode deGnes a ,erson as either natural or $uridical& =he state and its ,oliticasubdiisions i&e& the local goernment units are $uridical ,ersons& =herefore L+9s are not e.cluded fromthe coerage of 4D 1@3?&

Fc"#:

• =he #ity of Daao Gled an a,,lication *ith the -nironmental Management /ureau (-M/) for a #ertiGcate

of on#oerage (##) for its ,ro,osed ,ro$ect the Daao #ity 6rtica %,orts Dome&

• =he -M/ >egion A0 denied the a,,lication Gnding that the ,ro,osed ,ro$ect *as *ithin an enironmentally

critical area& =he #ity of Daao must undergo the enironmental im,act assessment ,rocess to secure

an -nironmental #om,liance #ertiGcate ,ursuant to %ec2 4D 1@3? (-nironmental 0m,act %tatement

%ystem) in relation to %ec" of 4D 11@1 (4hili,,ine -nironment 4olicy) before it can ,roceed *ith theconstruction of its ,ro$ect&

T Daao Gled a ,etition for mandamus and in$unction *ith the >=# alleging that1& 0ts ,ro,osed ,ro$ect *as neither an enironmentally critical ,ro$ect nor *ithin an

enironmentally critical areaF thus it *as outside the sco,e of the -0% system&2& 0t *as the ministerial duty of the D-> through the -M/>egion A0 to issue a ## in faor of

res,ondent u,on submission of the required documents&

T >=# rendered $udgment in faor of res,ondent&&6 =here is nothing in 4D 1@3? in relation to 4D 11@1 and Letter of 0nstruction o& 117

(,rescribing guidelines for com,liance *ith the -06 system) *hich requires L+9s to com,ly *ith the-0% la*& nly agencies and instrumentalities of the national goernment including goernmento*ned or controlled cor,orations as *ell as ,riate cor,orations Grms and entities are mandated togo through the -06 ,rocess for their ,ro,osed ,ro$ects *hich hae signiGcant eHect on the quality of

the enironment& 6n L+9 not being an agency or instrumentality of the ational +oernment isdeemed e.cluded under the ,rinci,le of e)pressio unius est e)"lusio alterius6

2& =he site for the 6rtica %,orts Dome *as not *ithin an enironmentally critical area& either*as the ,ro$ect an enironmentally critical one& 0t therefore becomes mandatory for the D->through the -M/ >egion A0 to a,,roe res,ondent’s a,,lication for ## after it has satisGed all therequirements for its issuance&

T 4etitioner Gled M> *hich *as denied& 4etitioner then Gled the ,etition for reie*&

T 9,on change of administration res,ondent Gled a manifestation e.,ressing its agreement *ith ,etitioner

that indeed it needs to secure an -## for its ,ro,osed ,ro$ect&

T Rhile the ,etition has been rendered moot the court decided to address the issue raised for the

guidance of the im,lementors of the -0% la*&

Pe"i"ioner$# r%&'en"#:T 4etitioner: >-49/L0# ; =- 40L0440-% re,resented by & -->% =& 6LV6>-U in his ca,acity as

%ecretary of D-> #L6>-#- L& /6+90L6= in his ca,acity as the >egional -.ecutie Director of D->>egion A0 and -+>& /0-V-0D L& L046S in his ca,acity as the >egional Director of the D->-V0>M-=6L M66+-M-= /9>-69 >egion A0

T 4etition for reie* on certiorari assailing the decision of the >=# *hich granted the *rit of mandamus

and in$unction in faor of the #ity of Daao

T =he ,ro,osed ,ro$ect *as *ithin an enironmentally critical area& =he #ity of Daao must undergo the

enironmental im,act assessment ,rocess to secure an -nironmental #om,liance #ertiGcate ,ursuant to


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%ec2 4D 1@3? (-nironmental 0m,act %tatement %ystem) in relation to %ec" of 4D 11@1 (4hili,,ine

-nironment 4olicy) before it can ,roceed *ith the construction of its ,ro$ect

Re#pon*en"$# r%&'en"#:

T >es,ondent: =- #0=S ; D6V6 re,resented by /-'6M0 #& D- +9UM6 #ity Mayor

T 6rguments in the >=#: 0ts ,ro,osed ,ro$ect *as neither an enironmentally critical ,ro$ect nor *ithin an

enironmentally critical areaF thus it *as outside the sco,e of the -0% system&

T 0t *as the ministerial duty of the D-> through the -M/>egion A0 to issue a ## in faor of res,ondentu,on submission of the required documents&> (>=# in faor of >es,ondent) =here is nothing in 4D 1@3? in relation to 4D 11@1 and Letter of 0nstruction

o& 117 (,rescribing guidelines for com,liance *ith the -06 system) *hich requires L+9s to com,ly *ith

the -0% la*& nly agencies and instrumentalities of the national goernment including goernment o*ned

or controlled cor,orations as *ell as ,riate cor,orations Grms and entities are mandated to go through

the -06 ,rocess for their ,ro,osed ,ro$ects *hich hae signiGcant eHect on the quality of the enironment

6n L+9 not being an agency or instrumentality of the ational +oernment is deemed e.cluded underthe ,rinci,le of e)pressio unius est e)"lusio alterius6I##&e#:R L+9s are required to com,ly *ith the -0% la* (S-%)R the site *as *ithin an enironmentally critical area ()

R"io:Nature o- LG(s

T %ection 1@ of the Local +oernment #ode deGnes a local goernment unit as a body ,olitic and

cor,orate endo*ed *ith ,o*ers to be e.ercised by it in conformity *ith la*&

0t ,erforms dual functions goernmental and ,ro,rietary&

+oernmental functions are those that concern the health safety and the adancement of

the ,ublic good or *elfare as aHecting the ,ublic generally&

4ro,rietary functions are those that see< to obtain s,ecial cor,orate beneGts or earn

,ecuniary ,roGt and intended for ,riate adantage and beneGt&

Rhen e.ercising goernmental ,o*ers and ,erforming goernmental duties an L+9 is an

agency of the national goernment& Rhen engaged in cor,orate actiities it acts as an agent of the

community in the administration of local aHairs&

T %ection 1? of the Local +oernment #ode ,roides for the duty of the L+9s to ,romote the ,eo,le’s right

to a balanced ecology& 6n L+9 lies,ondent has suNciently sho*n that the 6rtica %,orts Dome *ill not hae

a signiGcant negatie enironmental im,act because it is not an enironmentally critical ,ro$ect and it isnot located in an enironmentally critical area&

T =he trial court found that the 6rtica %,orts Dome is not *ithin an enironmentally critical area& either is

it an enironmentally critical ,ro$ect&

T =he -nironmental 0m,act %tatement %ystem *hich ensures enironmental ,rotection and regulates

certain goernment actiities aHecting the enironment *as established by 4residential Decree o& 1@3?&

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T 4roclamation o& 21"? *as later issued ,roclaiming the areas and ty,es of ,ro$ects *hich are regarded

as enironmentally critical and *ithin the sco,e of the -nironmental 0m,act %tatement %ystem

established under 4D 1@3?&

T =he 6rtica %,orts Dome in Langub is not among the ,ro$ects or areas enumerated aboe& either is it

analogous to any of them& =herefore the ,ro$ect is not classiGed as enironmentally critical or *ithin anenironmentally critical area& 0t is therefore the ministerial duty of the D-> to issue the #ertiGcate of on#oerage&

11 - A!ec, v. P#ion+&>& 1?"@!? 'anuary 1 2!1! #orona '&

Fc"#: 4etitioners 4aulino M& 6lecha and 4recioso M& =a,itan Gled before the mbudsman(Mindanao) a criminal com,laint against res,ondent munici,al oNcials of the Munici,ality of Midsali,Uamboanga del %ur for iolation of %ection C(e) of >e,ublic 6ct (>6) C!1 %ection 31 of >6 71?! %ection1! of >6 ?7@3 and >6 1C7&

4etitioners aerred that res,ondent munici,al oNcials cons,ired in unla*fully ado,ting and actuallycollecting the salaries re,resentation and trael allo*ances (>6=6) and ,ersonnel economic reliefassistance (4->6) of ,ublic oNcials for s,ecial cities andQor Grst class ,roinces or cities not*ithstandingthe fact that the Munici,ality of Midsali, had no Gnancial ca,acity to coer such e.,enditures thus

seriously aHecting the deliery of basic serices *ithin its $urisdiction& =he mbudsman dismissed the com,laint against res,ondent munici,al oNcials&

Pe"i"ioner$# Ar%&'en": mbudsman *as in grae abuse of discretion (+6D) amounting to lac< ore.cess of $urisdiction *hen it dismissed their lettercom,laint against res,ondent munici,al oNcials&4etitioners cite the admission made by res,ondent munici,al oNcials that they had been receiing salariesfor s,ecial cities een though the Munici,ality of Midsali, *as a Gfthclass munici,ality&

=hey also aer that the Munici,ality of Midsali, *as Gnancially inca,able of im,lementing a highersalary schedule&

I##&e: R there *as +6D by the mbudsman NO.

SC eci#ion:

A D(",-c!## '&nicip!i" !ie Mi*#!ip i# no" /#o!&"e! pro,i/i"e* (ro' *op"in% #!r#c,e*&!e e&iv!en" "o "," o( #peci! ci" or Dr#"- c!## province.

Local /udget #ircular o& ?" dated 'anuary 1 17 in con$unction *ith ,aragra,h 11 of Local/udget o& @? allo*s local goernment units (L+9s) lo*er than s,ecial cities and Grstclass ,roinces andcities to ado,t a salary scheme for s,ecial cities and Grstclass ,roinces& =he ado,tion of a higher salaryschedule needs only to com,ly *ith the follo*ing requirements:

(1) the L+9 is Gnancially ca,ableF(2) the salary schedule to be ado,ted shall be uniformly a,,lied to all ,ositions in the in the L+9

concernedF(C) the salary schedule for the s,ecial and highly urbanied cities and Grst class ,roinces and cities

shall not be higher than that being ado,ted by the national goernmentF(") in im,lementing a ne* and higher salary schedule the salary grade allocation of ,ositions and

the salary ste,s of ,ersonnel shall be retainedF(@) the ado,tion of the higher salary schedule shall be sub$ect to the budgetary and generallimitations on ,ersonal serices e.,enditures mandated under %ections C2" and C2@ of >6 71?!F

(?) in the case of com,onent cities and munici,alities the salary schedule to be ado,ted shall notbe higher than that of the ,roince or city in the case of some munici,alities *here they belongF and

(7) the ado,tion of a higher salary schedule shall not in any manner alter the e.isting classiGcationof the L+9 concerned&

=he Munici,ality of Midsali, has com,lied *ith aboe requirements&

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Mi*#!ip ?# Dnnci!! cp/!e o( *op"in% ",e con"e#"e* #!r #c,e*&!e # #,o?n / ",e(o!!o?in% evi*ence:

• @ years into the im,lementation of the higher salary schedule the Munici,ality of Midsali, hadsaings of 4 1"1C@@"&?3 in its ban< account&

• #ertiGed statement of saings of unobligated balances for the years 2!!2 and 2!!C issued by theMidsali, munici,al treasurer and accountant reealed re,eated sur,lus accounts in the amounts of477!C11&?" and 4 @!7!1C&2C for the said years res,ectiely&

• =he certiGcation of the Midsali, munici,al accountant dated 'anuary 1" 2!!C also stated that there*as no realignment or disbursement of the 2!E munici,al deelo,ment ,ro$ect for ,ersonalserices e.,enditures from 13 to 2!!2&

=he Local /udget rdinance of the Munici,ality of Midsali, *as duly a,,roed by the %angguniang4anlala*igan of Uamboanga del %ur and the De,artment of /udget and Management& =he #ommission on6udit did not disallo* or sus,end the foregoing disbursement andQor e.,enditures&

12 =- 4>V0#- ; -+>% ##0D-=6L s& =- #MM0%%0->% #MM0%%0 69D0=+&>& o& 132@7"F %e,tember 23 2!1!F #6>40 '&

;acts

• 21 December 1" the %angguniang 4anlala*igan of egros ccidental ,assed >esolution o&72!6" allocating 4"!!!!!! of its retained earnings for the hos,italiation and health careinsurance beneGts of 1" oNcials and em,loyees of the ,roince&

• 4etitioner 4roince of egros ccidental and 4hilam #are entered into a +rou, ealth #are6greement inoling a total ,ayment of 4C7?!!!!

• 2C 'anuary 17 I the 4roincial 6uditor issued otice of %us,ension o& 7!!11!1@sus,ending the ,remium ,ayment because of lac< of a,,roal from the Nce of the 4resident(4) as ,roided under 6dministratie rder o& 1!C? (6 1!C) and that the ,remium ,aymentiolated >e,ublic 6ct o& ?7@3 (%alary %tandardiation La*)&

• 4resident 'ose,h -& -strada directed the #6 to lift the sus,ension but only in the amount of

41!!!!!&• =he 4roincial 6uditor ignored the directie of the 4resident and instead issued otice of

Disallo*ance• 4etitioner a,,ealed the disallo*ance to the #6&

• #6 aNrmed the 4roincial 6uditor’s otice of Disallo*anceo #6: under 6 1!C no goernment entity including a local goernment unit is e.em,t

from securing ,rior a,,roal from the 4resident granting additional beneGts to its,ersonnel&

o ;urther %ection "?3(a)(1)(iii)11 of >e,ublic 6ct o& 71?! (>6 71?!) or the Local+oernment #ode of 11 has to be harmonied *ith %ection 1212 of >6 ?7@3&

o =he insurance beneGts from 4hilam #are a ,riate insurance com,any *as adu,lication of the beneGts ,roided to em,loyees under the Medicare ,rogram *hich ismandated by la*&

• Motion for >econsideration: denied

0ssuesQoldingQ>atio

R #6 committed grae abuse of discretion in aNrming the disallo*ance of 4C7?!!!! for ,remium,aid by the 4roince of egros ccidental to its 1" oNcials and em,loyees ES. #6 erred& #ourtrules in faor of the 4etitioners&

Pe"i"ioner:

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1& =he ,ayment of the insurance ,remium *as ,aid from an allocation of its retained earnings,ursuant to a alid a,,ro,riation ordinance&

2& %uch enactment *as a clear e.ercise of its e.,ress ,o*ers under the ,rinci,le of local Gscalautonomy *hich includes the ,o*er of Local +oernment 9nits (L+9s) to allocate theirresources in accordance *ith their o*n ,riorities&

C& Rhile it is true that L+9s are only agents of the national goernment and local autonomy sim,lymeans decentraliation it is equally true that an L+9 has Gscal control oer its o*n reenuesderied solely from its o*n ta. base&

Re#pon*en"#:1& 6lthough L+9s are aHorded local Gscal autonomy L+9s are still bound by >6 ?7@3 and their actions

are sub$ect to the scrutiny of the De,artment of /udget and Management (D/M) and a,,licableauditing rules and regulations enforced by the #6

2& =he grant of additional com,ensation li


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health ,rogram for goernment em,loyees *hich included hos,italiation serices and annualmental medical,hysical e.aminations&

?& =he #%# through #%# M# o& CC as *ell as the 4resident through 6 "!2 (*hich e.,anded,rotection) recognied the deGciency of the state of health care and medical sericesim,lemented at the time& =hus consistent *ith the state ,olicy of local autonomy asguaranteed by the 137 #onstitution under %ection 2@ 6rticle 002! and %ection 2 6rticle A21and the Local +oernment #ode of 1122 *e declare that the grant and release of thehos,italiation and health care insurance beneGts gien to ,etitioner’s oNcials and em,loyees

*ere alidly enacted through an ordinance ,assed by ,etitioner’s %angguniang 4anlala*igan&

17 - PIMENTEL v. EJECUTIVE SECRETAR +&>& o& 1@77! 17 'uly 2!12 4erlas/ernabe =6pe"i"ioner# 6quilino 4imentel 'r& %ergio =adeo elson 6lcantarare#pon*en"# -.ecutie %ecretary 4aquito choa D%RD %ecretary #oraon %oliman#&''r 4etitioners assert that the budget allocation under the D%RD for its ##=4 iolates the

#onstitution and L+# because it amounts to a recentraliation of basic goernmentfunctions& %# ruled that unless an L+9 is designated as the im,lementing agency it hasno ,o*er oer a ,rogram for *hich funding has been ,roided by the national

goernment een if it inoles the deliery of basic serices *ithin the $urisdiction of theL+9&

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(c"# o( ",e c#e =he D%RD embar>

for its 4anta*id 4amilyang 4ili,ino 4rogram& =his #onditional #ash =ransfer 4rogram (##=4),roides cash grant to e.treme ,oor households to allo* them to meet certain humandeelo,ment goals&

9nder the 6 the D%RD as lead im,lementing agency institutionalied a coordinated interagency net*or< among De,-d D D0L+ 64# (ational 6nti4oerty #ommission) and theL+9s

#ongress funded the ,rogram as follo*s: 2!!3: 4423&@M 2!!: 44@/ 2!1!: 441!/2!11 4421/&

;ormer %enator 4imentel et al& challenged the disbursement of ,ublic funds and theim,lementation of the ##=4 *hich are alleged to hae encroached into the local autonomy ofL+9s&

4etitioners admit that the *isdom of ado,ting the ##=4 is *ith the legislation ho*eer theob$ect to the fact that it is being im,lemented through a national agency li& 13!"1F 'uly C1 2!12F 4erlas/ernabe '&Digest by >einerr uestro

Fc"#:

2 Sec. 17 par. (c), LGC. …other facilities, programs and services funded by the National Government

under the annual GAA… are not covered under this Section, except in those cases where the LGU

concerned is duly designated as the implementing agency…


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0n 12 the national goernment im,lemented a deolution ,rogram ,ursuant to RA =10(",e Loc! Gov$". Co*e o( 1221) *hich aHected the De,t& of ealth along *ith othergoernment agencies&

4rior to the deolution Dr& #astillo held the ,osition of 4roincial ealth Ncer 00 (P@O II)of the D >egional Nce o& 0A in Uamboanga #ity and *as the head of both the /asilan4roincial ealth os,ital and 4ublic ealth %erices&

Re#pon*en" r. A%ne# & on the other hand held the ,osition of 4roincial ealthNcer 0 (P@O I)& %he *as assigned at the 0ntegrated 4roincial Nce in 0sabela /asilan&

9,on the im,lementation of the deolution ,rogram +oernor %ala,uddin refused toacce,t Dr& #astillo as the incumbent of the 4 00 ,osition that *as to be deoled to the L+9 of/asilan ,rom,ting the D to retain Dr& #astillo at the >egional Nce o& 0A in Uamboanga *hereshe *ould sere the remaining four years of her ,ublic serice&

0n 1" t*o years after the im,lementation of the deolution ,rogram +oernor%ala,uddin a,,ointed Dr& Su to the 4 00 ,osition&

n ;eb& 2C 13 RA 6798 ( An A"t Convertin$ the ?asilan !rovin"ial Hospital in the@uni"ipalit. o- Isa4ela5 !rovin"e o- ?asilan5 into a 1ertiar. Hospital (nder the ;ull Ad3inistrativeand 1e"hni"al Supervision o- the Depart3ent o- Health5 In"reasin$ the Capa"it. to One Hundred?eds and Appropriatin$ ;unds 1here-or ) *as ,assed *hereby the hos,ital ,ositions ,reiouslydeoled to the L+9 of /asilan *ere re-n"ion!iKe* and rever"e* "o ",e O@&=he /asilan4roincial ealth os,ital *as later renamed the B#i!n Gener! @o#pi"! and the ,osition ofP@O II *as then reclassiGed to C,ie( o( @o#pi"! II&

Dr& Su *as made to retain her original item of 4 00 instead of being gien the reclassiGed,osition of #hief of os,ital 00& ne Dr& Domingo >emus Dayrit *as a,,ointed by D %ecretaryManuel Dayrit to the ,osition of #hief of os,ital 00&

r. & Re#pon*en" in ",i# C#e Gled a letter of ,rotest dated %e,t& C! 2!!C before the Civi!Service Co''i##ion claiming that she has a ested right to the ,osition of #hief of os,ital 00&0n her letter she said that:

=he 4osition of #hief of os,ital 00 to *hich Dr& Dayrit has been a,,ointed is a mereconersion from the item of 4roincial ealth Ncer 00 she ,reiously occu,ied&

Rhen the former /asilan 4roincial os,ital *as renationalied the ,osition of 4 00 *hichshe then occu,ied *as refused renationaliation by the D alleging that it *as an L+9created,osition created by the L+9 of /asilan& ence instead of being automatically rea,,ointed 4 00later to be renamed #hief of os,ital 00 ,ursuant to the Ren"ion!iK"ion L? she *as instead

gien an a,,ointment still as a 4 00 but under a coterminous status at the #enter for ealth andDeelo,ment D *hich she refused to acce,t&

=he Civi! Service Co''i##ion Pe"i"ioner in ",i# C#e initially granted Dr& Su’s ,rotest andreo declaring thatthe ,osition of 4 00 *as neer deoled to the 4roincial +oernment of /asilan but *as retainedby the DF that the 4 00 ,osition held by Dr& Su *as a ne*lycreated ,osition therefore she didnot hae a ested right to the #hief of os,ital 00 ,osition created by RA 6798&

Dr& Su moed to reconsider *hich *as denied by the #%#& %he then brought the case to the Co&r"o( Appe!# on pe"i"ion (or revie? raising the sole issue of *hether the item of 4 00 she,reiously occu,ied *as a deoled ,osition or a locally created one&

=he CA ruled in faor of Dr& Su saying that she has a ested right in the #hief of os,ital 00 ,ositionu, to her retirement& 0t ratiocinated:

=he #%#’s ruling that there are t*o 4 00 ,ositions is not im,lausible but contrary to theeidence at hand&

6 ,erusal of the ,leadings and attachments reeal that the 4 00 ,osition *as deoled tothe /asilan 4roincial +oernment&

6 letter from one Ms& Viian Soung 0# of the D Local +oernment 6ssistance WMonitoring %erice informed +oerner %ala,uddin that the 4 00 ,osition *as deoled to thelocal goernment& =he said letter ,roided that only the deoled health ,ersonnel *ho *ere not


14/45

acce,ted by their Local #hief -.ecutie hae been retained by D the item ,ositions per se remained in the res,ectie L+9s&

I##&e: Rhether the #6 erred in holding that the 4 00 ,osition ,reiously occu,ied by Dr& Su is adeoled ,osition&@e!*: NOR"io:

4ursuant to the declared ,olicy under the Loc! Govern'en" Co*e o( 1221 RA =10)

to ,roide for a more res,onsie and accountable local goernment structure through a system ofdecentraliation national agencies or oNces including the D *ere mandated to deole to thelocal goernment units the res,onsibility for the ,roision of basic serices and facilities&

evo!&"ion is the act by *hich the national goernment confers ,o*er and authority u,onthe arious L+9s to ,erform s,eciGc functions and res,onsibilities&

Sec. 1= i o( ",e #'e Co*e ,roides that deolution #,!! include the transfer to L+9sof the records equi,ment and other assets and ,ersonnel of national agencies and oNcescorres,onding to the deoled ,o*ers functions and res,onsibilities& =he ,ersonnel of saidnational agencies #,!! be absorbed by the L+9s to *hich they belong or in *hose areas they areassigned to the e.tent that it is administratiely iable as determined by the said oersightcommittee&

ence it *as MANATOR for +oernor %ala,uddin to absorb the ,osition of 4 00 as*ell as its incumbent Dr& #astillo& =he absence of discretion is highlighted by the use of the *ord

)#,!!+ both is Sec. 1=i o( ",e Co*e and in Sec. 44 o( EO No. 708 *hich connotes amandatory order&

=he only instance that the L+9 concerned may choose not to absorb the nationalgoernment agency (+6) ,ersonnel is *hen absor,tion is not administratiely iable such that it*ould lead to du,lication of functions in *hich case the +6 ,ersonnel shall be retained by thenational goernment&

0n the absence of the recognied e.ce,tion deoled ,ermanent ,ersonnel shall be&"o'"ic!! reppoin"e* Sec. 414 by the local chief e.ecutie concerned immediatelyu,on their transfer *hich shall not go beyond 'une C! 12&

-idence sho*s that the item ,osition of 4 00 *as in fact deoled to the 4roincial+oernment of /asilan& +oernor %ala,uddin himself certiGed that said ,osition *as included inthe 1224 Or%niK"ion3 S"n% n* Co'pen#"ion Ac"ion (%#6%) receied from the D/M*ith budget a,,ro,riation& e further declared during the formal turn oer ,rogram in 1C that

the item ,osition of 4 00 *as among the ,ositions turned oer to the 4roincial +oernment of/asilan& 0t cannot be dis,uted that Dr& #astillo’s ,osition *as deoled&

/ut +oernor %ala,uddin refused to rea,,oint Dr& #astillo to her deoled ,osition in theL+9 for no other reason than that he *anted to acce,t only the item ,osition of 4 00& 0t *as notsho*n that the absor,tion of Dr& #astillo *as not administratiely iable ma


15/45

Ms& Viian Soung 0# of the D Local +oernment 6ssistance and Monitoring %ericeassured +oernor %ala,uddin that *hile Dr& #astillo *as retained by the D her item ,ositionremained *ith the L+9 of /asilan& Moreoer Dr& Milagros ;ernande Director 0V of the D>egional ;ield Nce o& 0A in Uamboanga #ity clariGed that Dr& #astillo neer carried *ith her theitem ,osition and the funds a,,ro,riated for salary and other beneGts accruing to the ,osition of4 00&

ence the a,,ointment of Dr& Su to the ,osition of 4 00&

I##&e4: May Dr& #astillo be considered to hae abandoned her ,osition for consistently failing toassert her rights thereto@e!*: NOR"io:

6bandonment of an oNce is the oluntary relinquishment of an oNce by the holder *ith theintention of terminating his ,ossession and control thereof& 0n order to constitute abandonment ofoNce it must be total and under such circumstance as clearly to indicate an absoluterelinquishment&

=here are t*o essential elements of abandonment: (1) an intention to abandon and (2) anoert or e.ternal act by *hich the intention is carried into eHect&

+oernor %ala,uddin’s refusal to acce,t Dr& #astillo negates any and all oluntariness onthe ,art of the latter to let go of her ,osition& =he ris< of incurring the ire of a ,o*erful ,oliticianeHectiely tied Dr& #astillo’s hands and it *as quite understandable that 5she could not don her

gloes and Gght een if she *anted to&89nder these circumstances *ith Dr& #astillo’s reabsor,tion by the D *hich a,,ears to

bear the former’s a,,roal her deoled ,osition *ith the L+9 of /asilan *as left acant& =hus Dr& Su *as alidly a,,ointed to the ,osition of 4 00 in 1" and consequently

acquired a ested right to its reclassiGed designation I chief of os,ital 00& 6s such Dr& Su shouldhae been automatically rea,,ointed by %ecretary Dayrit in accordance *ith the +uidelines for the>enationaliation of 4ersonnel 6ssets and 6,,ro,irations of /asilan 4roincial os,ital&

#onsidering that Dr& Su had already retired the %# u,held the ruling of the #6 that sincerea,,ointment *as no longer feasible she should at least recoer her salaries for the serices shehad rendered&

o*eer Dr& Su admitted that she receied her salary as 4 00 conerted to #hief ofos,ital 00 for the ,eriod 6ugust to oember 2!!1& =herefore she should receie her salary andbeneGts as #hief of os,ital from December 2!!1 u, to her retirement in aug& 2!!"&

41 - B"n%# CATV v. CA3 B"n%# Ci" Sn%%&nin% Pn!&n%#o*%andoal +utierre '& %e,tember 2 2!!" +&>& 1C331!

SUMMAR: >esolution o& 21! granted ,etitioner to o,erate a #6=V system and charge itssubscribers *ith any increase in rates sub$ect to the a,,roal of the res,ondent& 4etitionerincreased its subscriber rates *ithout the a,,roal of the res,ondent& =he court held that said>esolution is inalid and that an L+9 cannot regulate the subscriber rates charged by #6=Vo,erators due to =#’s e.ercise of regulatory ,o*er oer #6=V o,erators to the e.clusion of otherbodies as ,roided for by the national legislature& 6 munici,ality cannot regulate the sameconduct that the state legislature has been regulating *ith a statute that fully coers the sub$ectmatter& 9nder the general *elfare clause an L+9 may only ,rescribe regulations to the use of ,ublic ,ro,erties or the construction of a #6=V system&

FACTS


16/45

=he %angguniang 4anlungsod (res,ondent) enacted >esolution o& 21! granting /atangas#6=V (,etitioner) a ,ermit to construct install and o,erate a #6=V system in /atangas #ity andauthoriing them to charge its subscribers the s,eciGed ma.imum rates *ith any increase sub$ectto their a,,roal& Rhen the ,etitioner increased its rates from 4h, 33 to 4h, 13! ,er month themayor threatened to cancel their ,ermit unless they secure the a,,roal of the res,ondent&

4etitioner Gled *ith the >=# a ,etition for in$unction alleging that the res,ondent had noauthority to regulate the subscriber rates because the ational =elecommunication #ommission

(=#) has the sole authority to regulate #6=V o,erators in the 4hili,,ines ,ursuant to -&& 2!@&

=he Tri! Co&r" en$oined the res,ondents from cancelling the ,etitioner’s ,ermit too,erate and from interfering *ith their right to G. their serice rates *hich needs no ,riora,,roal from the %angguniang 4anlungsod& 0t held that the enactment of >esolution 21! iolatesthe %tates’ deregulation ,olicy as set forth by the =# commissioner *ith the =# as the solegoernment agency that can regulated #6=V o,erations and that the L+9 cannot e.erciseregulatory ,o*er *ithout legislation&

=he Appe!!"e Co&r" reersed the trial court holding that although the =# is the onegranting the certiGcation the res,ondent is not ,recluded from regulating the o,eration of the#6=V in the locality ,ursuant to the ,o*ers ested by the L+# of 13C& 9nder the +eneral Relfare#lause (%ec& 177 of the L+# of 13C) the L+9s can ,erform $ust about any ,o*er that *ill beneGt

their constituencies *herein the regulation of businesses in the locality is e.,ressly ,roided andthe G.ing of serice rates is la*ful& =herefore in iolation of the requirements e.,ressed in>esolution o& 21! the #ity shall hae the right to *ithdra* the franchise&

4etitioner’s M> *as denied&

ARGUMENTS:Pe"i"ioner: =he L+# of 11 does not authorie res,ondents to regulate the #6=V o,erations& 6s,er -&& 2!@ only the =# has the authority to regulate the #6=V o,erations including the G.ingof subscriber rates&

Re#pon*en":1& >esolution o& 21! *as enacted ,ursuant of %ection 177 (c ) and (d) of the L+% of 13C

*hich authories the L+9s to regulate businesses&2& >esolution o& 21! is in the nature of a contract being a grant of a franchise to o,erate a

#6=V system& =o hold that -&& 2!@ amended its terms *ould iolate the constitutional,rohibition against im,airment of contracts

MAIN ISSUE: ;N LGU cn re%&!"e ",e #&/#cri/er r"e# c,r%e* / CATV oper"or?i",in ",e "erri"ori! $urisdiction

@EL: the national goernment through the =# has assumed regulatory ,o*er oer the#6=V industry& %eeral ,residential issuancesC reinforced the =#’s e.ercise of regulatory ,o*eroer #6=V o,erators to the e.clusion of other bodies including G.ing of subscriber rates& 6

3 P.D. No. 1512 (President Marcos)Established a monopoly of the CATV industry by grantingSining Makulay, Inc., an exclusive franchise to operate CATV

system, prescribed their subscriber rates and terminated all franchises, permits or certificates for the operation of CATV system previously granted by localgovernments or by any instrumentality or agency of the national government.

LOI No. 894 (President Marcos)

Vested upon the Chairman of the Board of Communications direct supervision over the operations ofSining Makulay, Inc.

E.O. No. 546 (President Marcos)

Integrated the Board of Communications and the Telecommunications Control Bureau to form the National Telecommunications Commission.

E.O. No. 205 (President Aquino)

Opened the CATV industry to all citizens of the Philippines

Mandated the NTC to grant Certificates of Authority to CATV operators and to issue the necessary implementing rules and regulations.

E.O. No. 436 (President Ramos)

Prescribed policy guidelines to govern CATV operation in the Philippines and restated the NTCs regulatory powers over CATV operations


17/45

munici,ality cannot regulate the same conduct that the state legislature has been regulating *itha statute that fully coers the sub$ect matter& 9nder the general *elfare clause an L+9 may only,rescribe regulations to the use of ,ublic ,ro,erties or the construction of a #6=V system&

RATIO: =he %anguniang 4anlungsod has been em,o*ered to enact ordinances and a,,roe

resolutions under the general *elfare clause of the L+# of 13C *hich is a delegation in statutoryform of the ,olice ,o*er of the %tate to the L+9s to ,rescribe regulations for the ,rotection of their

constituents and maintain ,eace and order *ithin their territorial $urisdictions&

=he #6=V o,erations may be regulated by L+9s under the general *elfare clause due to itsuse of ,ublic ,ro,erties to reach its subscribers but in this case the res,ondents strayed from itslimits through its iolation of the mandate of e.isting la*s and the %tate deregulation ,olicy oerthe #6=V industry&

>esolution o& 21! is an enactment of an L+9 acting only as an agent of the nationallegislature& o*eer >esolution o& 21! contraenes -&& 2!@ and -&& "C? in so far as it ,ermitsthe res,ondents to usur, the ,o*er e.clusiely ested in the =# ,articularly the G.ing of subscriber rates& 0n De la #ru & 4ara

Ordinan"es passed 4. virtue o- the i3plied poer -ound in the $eneral el-are

"lause [B 3ust not 4e in"onsistent ith the las or poli". o- the state6

9nder its general ,o*ers a munici,ality cannot regulate the same conduct that the statelegislature has been regulating *ith a statute that fully coers the sub$ect matter&

-&& 2!@ as a general la* mandates the regulation of #6=V o,erations by the =#F an L+9cannot enact an ordinance or a,,roe a resolution in iolation of said la*& Munici,al ordinancesare subordinate to the la*s of the stateF therefore an ordinance in conXict *ith a state la* of general character and state*ide a,,lication is held to be inalid& 0n eery ,o*er to ,assordinances gien to a munici,ality there is an im,lied restriction that the ordinances shall beconsistent *ith the general la*& =he basic relationshi, bet*een the national legislature and theL+9s has not been *ea&6& 7?1!) a handi*or< of the national la* ma&6& 7?1! re,ealed -&& 2!@&

COURT: =here is no basis to conclude that >&6& 7?1! re,ealed -&& 2!@& =he re,ealing clause of >&6& 7?1!contains s,eciGc la*s and ,arts it has re,ealed but did not mention -&& 2!@&

=here is also no im,lied re,eal by >&6& 7?1! -&& "C? M# 3@ and the 0>> of >&6& 72@ (4ublic =elecommunications 4olicy 6ct of the 4hili,,ines) sho*s that the =#’s regulatory ,o*er oer the#6=V o,erations is continuously recognied&

n the assum,tion of a conXict bet*een -&& 2!@ and >&6& 7?1! the ,ro,er action is to harmoniethem if ,ossible& =hus =# has e.clusie $urisdiction oer matters aHecting #6=V o,erations


18/45

including the G.ing of subscriber rates but nothing ,recludes L+9s from e.ercising its general,o*er to ,rescribe regulations for the general *elfare of their constituents&

I##&e: ;N E.O. 407 vio!"e# ",e con#"i"&"ion! pro,i/i"ion %in#" i'pir'en" o( con"rc"# - NORe#pon*en"$# Ar%&'en": -&& 2!@ iolates the constitutional ,rohibition against im,airment of contracts because >esolution o& 2!1! *as a grant of franchise to the ,etitioner&

COURT: =here is no la* authoriing L+9s to grant franchises to o,erate #6=V systems& 6ssuming there *asone it has been *ithdra*n *hen 4resident Marcos issued 4&D& 1@12 terminating all franchises forthe o,eration of #6=V system ,reiously grants be the local goernments& nly the =# may issue4roisional 6uthority or #ertiGcate of 6uthority for the o,eration and maintenance of #6=V system&

47 - Accor* v. Eec&"ive Secre"r 'or '& #ar,io Morales

FACTS: 4resident -strada submitted the ational -.,enditures 4rogram for Gscal year 2!!! to#ongress& 0n the said ,rogram the 4resident ,ro,osed an 0nternal >eenue 6llotment (0>6) in theamount of 4121773!!!!!! follo*ing the formula ,roided for in %ection 23" of the Local+oernment #ode of 12:

%-#=0 23"& Allot3ent o- Internal #evenue 1a)es& Local goernment units shall hae a share inthe national internal reenue ta.es based on the collection of the third Gscal year ,receding thecurrent Gscal year as follo*s:

(a) n the Grst year of the eHectiity of this #ode thirty ,ercent (C!E)F(b) n the second year thirtyGe ,ercent (C@E)F and(c) On ",e ",ir* er n* ",ere("er3 (or" percen" 90.

=he +eneral 6,,ro,riations 6ct (+66) %-#=0 1 AAAV00 (6) ,assed by #ongress andsubsequently a,,roed by 4resident -strada ho*eer ,roides that:

1& 0>6 for local goernment units shall amount to 4111773!!!!!! only&2& 6n 94>+>6MM-D ;9D in the amount of 41!!!!!!!!!! (41!/) shall be used tofund the 0>6 *hich amount ?,ic, 'o&n" #,!! /e re!e#e* on! ?,en ",e ori%in!reven&e "r%e"# #&/'i""e* / ",e Pre#i*en" "o Con%re## cn /e re!iKe* based ona quarterly assessment to be conducted by certain committees *hich the +66 s,eciGesnamely the Deelo,ment /udget #oordinating #ommittee the #ommittee on ;inance ofthe %enate and the #ommittee on 6,,ro,riations of the ouse of >e,resentaties&

=hus *hile the +66 a,,ro,riates 4111773!!!!!! of 0>6 as Pro%r''e* F&n* it a,,ro,riatesa se,arate amount of 41! /illion of 0>6 under the classiGcation of Unpro%r''e* F&n* the

latter amount to be released only u,on the occurrence of the condition stated in the +66&

+s Gled *ith the %u,reme #ourt a ,etition for Certiorari 4rohibition and Mandamus Rith6,,lication for =em,orary >estraining rder against res,ondents then -.ecutie %ecretary>onaldo Uamora then %ecretary of the De,artment of /udget and Management /en$amin Dio6 due to the local


19/45

goernments and *ithholding the release of such amountF Rhether or not said +66 ,roisioniolates 6>=& A %-#& ? of the #onstitution (and %-#%& 23" 23?&")

Pe"i"ioner$# Ar%&'en"#:

6rticle A %ection ? of the #onstitution ,roides:

SEC1ION 6 Lo"al $overn3ent units shall have a 8ust share5 as deter3ined 4. la5 in the nationalta)es hi"h shall 4e auto3ati"all. released to the36

+66 iolated this constitutional mandate *hen it made the release of 0>6 contingent on *hetherreenue collections could meet the reenue targets originally submitted by the 4resident ratherthan ma6&

/asis: During the deliberations of the #onstitutional #ommission #ommissioners Daide and

olledo shared a common assum,tion that the entity *hich *ould e.ecute the automatic releaseof internal reenue *as the e.ecutie de,artment&

=he sub$ect constitutional ,roision merely ,reents the e.ecutie branch of the goernment fromunilaterally *ithholding the 0>6 but not the legislature from authoriing the e.ecutie branch to*ithhold the same& 0n the *ords of res,ondents =his essentially means that the 4resident or anymember of the -.ecutie De,artment cannot unilaterally i6e6 ?i",o&" ",e /cin% o( #""&"e*ithhold the release of the 0>6

@EL: =he +66 ,roision on the 41!/ 9n,rogrammed ;und is oid and unconstitutional&

RATIO: 6 basic feature of local Gscal autonomy is the auto3ati" release of the shares of L+9s inthe national internal reenue& =his is mandated by no less than the #onstitution& =he Local+oernment #ode s,eciGes further that the release shall be made directly to the L+9 concerned

*ithin Ge (@) days after eery quarter of the year and shall not 4e su48e"t to an. lien or hold4a"that 3a. 4e i3posed 4. the national $overn3ent -or hatever purpose6 6s a rule the term shall isa *ord of command that must be gien a com,ulsory meaning& =he ,roision is thereforeim,eratie&

9nder 6rticle A %ection ? of the #onstitution only the $ust share of local goernments is qualiGedby the *ords as deter3ined 4. la and not the release thereof& =he ,lain im,lication is that#ongress is not authoried by the #onstitution to hinder or im,ede the automatic release of the0>6&

4Section 286.

Automatic Release of Shares.

– (a) The share of each local government unit shall be released, without need ofany further action, directly to the provincial, city, municipal or barangay treasurer, as the case may be, on a quarterly basis withinfive (5) days after the end of each quarter, and which shall not be subject to any lien or holdback that may be imposed by thenational government for whatever purpose(b) !othing in this "hapter shall be understood to diminish the share of localgovernment units under e#isting laws


20/45

6rticle A %ection ? of the #onstitution binds the legislatie $ust as much as the e.ecutie branch*as ,resumed in the ruling of this #ourt in the case of 1he !rovin"e o- ?atan$as v6 #o3ulo *hichis analogous in many res,ects to the one at bar&

=his ,roision mandates that (1) the L+9s shall hae a $ust share in the national ta.esF (2) the $ustshare shall be determined by la*F and (C) the $ust share shall be automatically released to theL+9s&

=-: =here is an e.ce,tion to the automatic release of 0>6 rule& %-#=0 23": & & &4roided =hatin the eent that the national goernment incurs an &n'n%e/!e p&/!ic #ec"or *eDci"3 the4resident of the 4hili,,ines is hereby authoried u,on the recommendation of %ecretary of;inance %ecretary of 0nterior and Local +oernment and %ecretary of /udget and Managementand sub$ect to consultation *ith the ,residing oNcers of both ouses of #ongress and the,residents of the BligaB to maodolfo aarro Victor /ernal and >ene Medina Gled a ,etition for certiorari and ,rohibitionin the %# assailing the constitutionality of >6 CC@&

o /ut the ,etition *as dismissed on technical grounds&• 6gain they Gled a ,etition for the same reason on the grounds that:

o =he creation of Dinagat as a ne* ,roince *ould ,er,etuate an illegal act of #ongress and *ould de,rie the ,eo,le of %urigao del orte a large chun< of territory natural and Gnancial resources&

o =hat *hen the la* *as ,assed Dinagat only had a land area of 3!2&12 square


21/45

=heir election to their oNces *ould be annulled&o 6s ,er #M-L-# issued >esolution o& 37! *hich says that:

0f the decision of the %# is reersed then status quo *ill remain since thesystem in ,lace is that Dinagat and %urigao del orte are t*o se,arate,roinces&

0f the decision of the %# is not reersed and becomes Gnal and e.ecutorybefore the elections the ,roince of Dinagat *ill reert to its ,reious statusas ,art of %urigao del orte&

• Voters of Dinagat *ill not be able to ote for candidates of Members%angguniang 4anlala*igan and Member ouse of >e,s andcandidates for +oernor and Vice +oernor for %urigao del ortesince they are not in the res,ectie ballots&

• =hus the #M-L-# *ill ,ost,one the elections& 0f the decision of the %# is not reersed and becomes Gnal and e.ecutory

after the elections the ,roince of Dinagat *ill reert to its ,reious statusas ,art of %urigao del orte&

• =he result of the elections *ould hae to be nulliGed and a s,ecialelection *ould be conducted&

• =he %# denied the Motion for Leae to 0nterene&o =he moants interenors Gled an M>& Denied&

• =he #ourt issued an order for -ntry of 'udgment stating that this decision had become Gnaland e.ecutory already&

• =he Moantinterenors Gled an 9rgent Motion for >ecall -ntry of 'udgment *hich isresoled in this >esolution&

ISSUES RULING:

On the propriet. o- the (r$ent @otion -or #e"all Entr. o- =ud$3ent

• =here a,,ears nothing in the case *hich *ould su,,ort the contention that this motion *asa ,loy by the res,ondents’ la*yers to reo,en the case des,ite the entry of $udgment&

• 0t *as #M-L-# resolution 37! *hich gae the moant interenors interest in reo,eningthe case&

• 0f the motion *as not entertained the moantinterenors *ould be left *ith no otherremedy as regards to the im,ending nulliGcation of their elections&

• 0t cannot be denied that moantinterenors *ill suHer direct in$ury in the een that their9rgent Motion to >ecall -ntry of 'udgment is denied&

• =hey should not be left *ithout any remedy sim,ly because their interest in the casebecame manifest only after the case had already been decided&

• 6ny*ay in this case the com,elling concern is not only the moantinterenors’ right to beheard but also the arrial at the correct inter,retation of the L+# and the manner of creation of L+9s&

On the "reation o- the LG(s

• =he criteria ,rescribed by the L+# (income ,o,ulation land area) are designed *ithcentral ,olicy considerations on creating an L+9 in mind:

o -conomic iabilityo -Ncient administrationo #a,ability to delier basic serices to constitutions

• -conomic iability being the ,rimordial criterion as gien eidence by congressionaldebates&

o on& Laguda: 5=he reason *hy *e are *illing to increase the income double thanthe ouse ersion because *e also beliee that economic iability is really aminimum& Land area and ,o,ulation are functions really of the iability of the areabecause you hae an income leel *hich *ould be the trigger ,oint for economicdeelo,ment ,o,ulation *ill naturally increase because there *ill be an


22/45

immigration& o*eer if you disallo* the ,articular area from being conerted intoa ,roince because of the ,o,ulation ,roblems in the beginning it *ill neer be ableto reach the ,oint *here it could become a ,roince sim,ly because it *ill neerhae the economic ta> on the creation of the L+9s&

• =he L+# says that *hen the local goernment unit to be created consists of one (1) or moreislands it is e.em,t from the land area requirement as e.,ressly ,roided in %ection ""2and %ection "@! of the L+# if the local goernment unit to be created is a 3uni"ipalit. or a"o3ponent "it. res,ectiely&

o =his e.em,tion is absent in the enumeration of the requisites for the creation of a provin"e under %ection "?1 of the L+# although it is e.,ressly stated under 6rticle(2) of the L+#0>>&

• =here a,,ears no reason *hy this e.em,tion should a,,ly to cities and municia,lities butnot to ,roinces&

o 0n fact there is greater li


23/45

• Rith three (C) members each from both the %enate and the ouse of >e,resentaties,articularly the chair,ersons of their res,ectie #ommittees on Local +oernment itcannot be gainsaid that the inclusion by the ersight #ommittee of the e.em,tion fromthe land area requirement *ith res,ect to the creation of ,roinces consisting of one (1) ormore islands *as intended by #ongress but unfortunately not e.,ressly stated in %ection"?1 of the L+# and this intent *as echoed through an e.,ress ,roision in the L+#0>>&

o =he ersight #ommittee eidently conducted due deliberation and consultations*ith all the concerned sectors of society and considered the o,eratie ,rinci,les of local autonomy as ,roided in the L+# *hen the 0>> *as formulated&

o =his amounts not only to an e.ecutie construction entitled to great *eight andres,ect from this #ourt but to legislatie construction as *ell es,ecially *ith theinclusion of re,resentaties from the four leagues of local goernment units asmembers of the ersight #ommittee&

• Des,ite lac< of e.em,tion in the L+#t #ongress recogniing the ca,acity and iability of Dinagat to become a fullXedged ,roince enacted >&6& o& C@@ follo*ing the e.em,tionfrom the land area requirement *hich *ith res,ect to the creation of ,roinces can onlybe found as an e.,ress ,roision in the L+#0>>&

o =he bill that eentually became >&6& o& C@@ *as Gled and faorably oted u,on inboth #hambers of #ongress& %uch acts of both #hambers of #ongress deGnitielysho* the clear legislatie intent to incor,orate into the L+# that e.em,tion from the

land area requirement *ith res,ect to the creation of a ,roince *hen it consists of one or more islands as e.,ressly ,roided only in the L+#0>>&o =hereby and by necessity the L+# *as amended by *ay of the enactment of >&6&

o& C@@&

ISPOSITION: =he #ourt granted the 9rgent Motion to >ecall -ntry of 'udgment& =he Grst %#>esolution is set aside and ,roision in 6rt& (2) of the >ules and >egulations 0m,lementing theL+# of 11 is declared V6L0D& >6 CC@ is also declared V6L0D& riginal ,etition is dismissed&

CARPIO3 $.3 ISSENTING:• =he ruling is a blatant iolation of the #onstitution and the Local +oernment #ode and

o,ens the Xoodgates to the ,roliferation of ,ygmy ,roinces and legislatie districts&

1. T,e in%" I#!n*# province #i'p! *oe# no" 'ee" ",e cri"eri (or ",e cre"ion o( province.

• %ection "?1 requires a ,roince to meet the minimum income requirement and either theminimum land area or minimum ,o,ulation requirement& 0n short t*o of the threeminimum requirements must be satisGed *ith the minimum income requirement one of the t*o&

• =he Dinagat 0slands ,roince does not meet either the minimum land area requirement orthe minimum ,o,ulation requirement& 0ts ,o,ulation *as only at 12!31C in 2!!? and theland area of the island com,rised only 3!2&12 sq&


24/45

i& 6 congressional oersight committee has no ,o*er to a,,roe or disa,,roe theim,lementing rules of la*s because the im,lementation of la*s is ,urely ane.ecutie function (Macalintal #omelec)

ii& #ongress has no ,o*er to construe the la*& nly the courts are ested *ith the,o*er to construe the la*& #ongress may ,roide in the la* itself a deGnition of terms but it cannot deGne or construe the la* through its ersight #ommitteea-ter it has enacted the la* because such ,o*er belongs to the courts&

• >atio behind the *ithholding of e.em,tion for minimum land area requirement for,roinces com,osed of islands:

o =he ,roince as the largest ,olitical and cor,orate subdiision of local goernancein this country seres as the geogra,hic base from *hich munici,alities cities andeen another ,roince *ill be cared fostering local deelo,ment&

o =he ruling *i,es a*ay the territorial and ,o,ulation tiering among ,roinces citiesand munici,alities the Local +oernment #ode has carefully structured reducing,roinces to the leel of a rich munici,alityunable to host other*ise qualiGed ne*smaller local goernment units for sheer lac< of s,ace&

• -en assuming that the minimum land area requirement does not a,,ly to island,roinces an assum,tion that is deoid of any legal basis Dinagat 0slands still fail to meetthe minimum ,o,ulation requirement&

• =he ma$orityJs ruling clearly iolates %ection "?1 of the #ode no question about it&

4. ,en Con%re## cre"e# province i" nece##ri! cre"e# " ",e #'e "i'e !e%i#!"ive *i#"ric". T,e province '" co'p! ?i", ",e 'ini'&' pop&!"ion o( 4703000 /ece ",e Con#"i"&"ion 'n*"e# "," 4703000 #,!! /e ",e 'ini'&'pop&!"ion (or ",e cre"ion o( !e%i#!"ive *i#"ric"#. T,e 126= Con#"i"&"ion 'n*"e#"," Hec, province53 #,!! ,ve " !e#" one repre#en""ive

• =o treat land area as an alternative to the minimum ,o,ulation requirement (based on thecon$unctie BeitherB in %ection "?1) destroys the su,remacy of the #onstitution mae,resentaties *ill no* count among its members

a re,resentatie of a district consisting as of the 2!!7 census of only 12!31Cconstituents *ell belo* the minimum ,o,ulation of 2@!!!! his ,eers from the otherregular districts re,resent&

• =his mala,,ortionment tolerates on the one hand ote underaluation in oer,o,ulateddistricts and on the other hand ote oeraluation in under,o,ulated ones in clearbreach of the Bone ,erson one oteB rule rooted in the -qual 4rotection #lause&

• =hus one ote in Dinagat 0slands has the *eight of more than t*o otes in Metro Manila forthe ,ur,ose of re,resentation in the ouse of >e,resentaties&

• =his is in iolation of the -qual 4rotection #lause&

8. Fo#"er# en"renc,'en" o( po!i"ic! *n#"ie# n* (&e!# (e&*!i#"ic prc"ice# /##&rin% po!i"ic! *n#"ie# e# cce## "o p&/!ic (&n*#.

• ;or each ne* ,roince created entailing at the same time the creation of a legislatiedistrict a ,i,eline to a huge ,ool of resources is o,ened *ith the #ongressman en$oying*ide discretion on ho* and *here he *ill dis,ense such legislatie largesse&

• 9nder the ma$orityJs ruling not only land area but also ,o,ulation is immaterial in creatingisland ,roinces& =his is an o,en initation to ruling ,olitical clans strategically situated inthis countryJs thousands of islands to s,onsor the creation of more under,o,ulated,roinces *ithin their ,olitical baili*ic


25/45

9. Fr (ro' /ein% *i#pen#/!e co'ponen"# in ",e cre"ion o( !oc! %overn'en" &ni"#3pop&!"ion n* !n* re - no" inco'e - re ",e pivo"! (c"or# in (&n*in% !oc!%overn'en" &ni"#.

• 9nder the Local +oernment #ode these com,onents determine 7@E of the share from thenational ta.es (0nternal >eenue 6llotment or 0>6) each local goernment unit receies thelifeblood of their o,erations based on the follo*ing formula:

o 4o,ulation ;ifty ,ercent (@!E)o Land 6rea =*entyGe ,ercent (2@E)o -qual sharing =*entyGe ,ercent (2@E)

• =hus ,o,ulation *ith a *eight of @!E ran6 !! the ouse of >e,resentaties (>) ado,ted a $ointresolution e.em,ting 2" munici,alities *hose cityhood bills *ere ,ending *hen >6 !!*as enacted (=hese cityhood bills *ere not a,,roed in the 11th #ongress)& =he $oint

resolution ho*eer *as not a,,roed by the %enate&C& 6t the 1Cth #ongress > reado,ted the said $oint resolution but the %enate again failedto a,,roe it&

"& 9,on the adice of %en& 4imentel 1? munici,alities instead Gled indiidual cityhood bills*hich had a ,roision e.em,ting all the 1? munici,alities from the ne* 41!!M incomerequirement under >6 !!&

@& 6ll the cityhood bills *ere enacted and later la,sed into la* *ithout the 4resident’ssignature&

?& =hese #ityhood La*s also directed #M-L-# to hold ,lebiscites to determine *hether theaHected constituents a,,roed of the conersion&


26/45

7& League of #ities et al Gled ,etitions *ith the %# for ,rohibition *ith ,rayer for *rit of ,reliminary in$unction and => assailing the constitutionality of the #ityhood La*s anden$oining the #M-L-# from conducting the ,lebiscites& =he ,etitioners’ main contention isthat the 1? munici,alities should not be e.em,t from the ne* income requirement under>6 !!&

3& n ;ebruary 1@ 2!11 the %# issued a resolution declaring the 1? #ityhood La*sconstitutional&

& 4etitioners Gled this Ad Cautela3 @otion -or #e"onsideration challenging the ;ebruary 1@

2!11 >esolution&

4etitioner’s arguments:1& =he #ityhood La*s iolate %ec& ?@ and 1!? of 6rt& A of the 137 #onstitution the -qual

4rotection #lause and the right of local goernments to a $ust share in the national ta.es&2& =he ne* income 41!! million requirement from locally generated sources is not arbitrary

because it is not diNcult to com,ly *ith since there are seeral munici,alities that haealready com,lied (i&e& %ta& >osa aotas %an 'uan DasmariYs and /iZan etc&)&

C& =here e.ists no issue *ith res,ect to the cityhood of ,etitioner’s member cities consideringthat they became cities in full com,liance *ith the criteria for conersion at the time oftheir creation&

>es,ondent’s arguments: %not e)pli"itl. stated in the "ase* pro4a4l. the sa3e as the SCs

de"ision'

ISSUE;@EL;RATIO: %SC 4asi"all. reiterated its ratio in its ;e46 +F&& resolution'

1. ;N ",e 1 ci",oo* !?# re con#"i"&"ion!6 !!) sho* that the e.em,tion clausesin the #ityhood La*s are but the e.,ress articulations of the clear legislatie intent to

e.em,t the res,ondents *ithout e.ce,tion from the coerage of >&6& o& !!& 6s such>&6& o& !! and by necessity the L+# *ere amended not by re,eal but by *ay of thee.,ress e.em,tions being embodied in the e.em,tion clauses&

Contrary to the contention of the petitioners, the +** reuirement is arbitrary and dicult to be complied with.

• Rhen the s,onsor of the la* chose the s,eciGc Ggure of 41!! million no research orem,irical data su,,orted the Ggure& or *as there ,roof that the ,ro,osal too< intoaccount the aftereHects that *ere li&6& o&!! sought to ,reent might soon become a realityPthat 5metro,olislocated localgoernments *ould hae more ,riority in terms of funding because they *ould hae morequaliGcations to become a city com,ared to the farXung areas in Mindanao or in the#ordilleras or *hateer&8 (%enator 4imentel)

@ Sec. . Local goernment units shall hae a $ust share as determined by la* in the national ta.es*hich shall be automatically released to them&

? Sec. 10& o ,roince city munici,ality or barangay may be created diided merged abolished orits boundary substantially altered e.ce,t in accordance *ith the criteria established in the local goernmentcode and sub$ect to a,,roal by a ma$ority of the otes cast in a ,lebiscite in the ,olitical units directlyaHected&


27/45

• /y increasing the income requirement abru,tly cities outside of Metro Manila *ould be lessli&6& !! became la* but stillremained iable&

• =he L+9s coered by the #ityhood La*s belong to a class of their o*n& =hey hae ,roenthemseles iable and ca,able to become com,onent cities of their res,ectie ,roinces&

=hey are and hae been centers of trade and commerce ,oints of conergence of trans,ortation rich haens of agricultural mineral and other natural resources andXourishing tourism s,ots&

• Rhile the #onstitution mandates that the creation of L+9s must com,ly *ith the criterialaid do*n in the L+# it cannot be $ustiGed to insist that the #onstitution must hae to yieldto eery amendment to the L+# des,ite such amendment imminently ,roducing eHects

contrary to the original thrusts of the L+# to ,romote autonomy decentraliationcountryside deelo,ment and the concomitant national gro*th&

Cityhood Laws did not violate the League members/ right to a just share in the national taxes.

• =he share of local goernment units is a matter of ,ercentage under %ection 23@ of theL+# not a s,eciGc amount& %,eciGcally the share of the cities is 2CE determined on thebasis of ,o,ulation (@!E) land area (2@E) and equal sharing (2@E)& =his share is alsode,endent on the number of e.isting cities such that *hen the number of cities increasesthen more *ill diide and share the allocation for cities& Rith eery ne*ly conerted citybecoming entitled to share the allocation for cities the ,ercentage of internal reenueallotment (0>6) entitlement of each city *ill decrease although the actual amount receiedmay be more than that receied in the ,receding year& =hat is a necessary consequence of

%ection 23@ and %ection 23? of the L+#&

ISSENTING OPINION CARPIO5=his #ourt has made history *ith its re,eated Xi,Xo,,ing in this case&81& Ma$ority o,inion erred in declaring that the #ityhood La*s amended the L+#&

a& o*here in the ,lain language of the #ityhood La*s can this be inferred& =he la*scontains a uniformly *orded %e,arability #lause:

i& =hat if any of its ,roisions is 5inconsistent *ith the L+#8 the other consistent,roisions 5shall continue to be in full force and eHect& ence any ,roision ineach #ityhood La* inconsistent *ith the L+# is oid and ineHectie&

b& %ince the #ityhood La*s do not form integral ,arts of the L+# said la*s cannotsti,ulate an e.ce,tion from the requirements of %ec& 1! 6rt& A of the #onstitution:

i& )o ,roince city munici,ality or barangay may be created diided mergedabolished or its boundary substantially altered ecep" in ccor*nce ?i",",e cri"eri e#"/!i#,e* in ",e !oc! %overn'en" co*e and sub$ect toa,,roal by a ma$ority of the otes cast in a ,lebiscite in the ,olitical unitsdirectly aHected&

c& =he constitution is clear that the creation of L+9s must follo* the criteria established bythe L+# itself and not in any other la*&

2& =he increased income requirement of 41!! million is neither arbitrary nor diNcult to com,ly&a& =he legislature is not required by the #onstitution to sho* the courts eidence to

su,,ort the increased income requirement such as data li


28/45

,olicy determination inoling the *isdom of the la* *hich e.clusiely lies *ithin the,roince of the Legislature&

b& #ities of %an 'uan and aotas& %ta& >osa DasmariZas and /iZan *ere created in fullcom,liance *ith the 41!! million income requirement& 21 other munici,alities hae alsosatisGed the requirement&

C& =he reduction in the 0nternal >eenue 6llotment *ill adersely aHect the cities’ economicsituation&

"& =he 42! million criterion is not substantial com,liance but outright iolation of the

constitution&

8 - 5G.R. No. 180480. Apri! 173 4007

METROPOLITAN MANILA EVELOPMENT AUT@ORIT vs. ANTE O. GARIN3 respondent .

;acts:

• Dante & +arin *as issued a "rc vio!"ion receip" and his driers license *as conGscatedfor illegal ,ares,ondent’s arguments:

• 0n the absence of any 0>> %ec& @(f) of >e,& 6ct o& 72" %rn"# ",e MMA &n/ri*!e**i#cre"ion "o *eprive errin% 'o"ori#"# o( ",eir !icen#e# ,reem,ting a Q&*ici!*e"er'in"ion o( ",e v!i*i" o( ",e *epriv"ion thereby iolating the due ,rocess clauseof the #onstitution&

• =he ,roision iolates the constitutional ,rohibition against &n*&e *e!e%"ion o( !e%i#!"ive&",ori" allo*ing as it does the MMD6 to G. and im,ose uns,eciGed and therefore unlimited Gnes and other ,enalties&

• MMD6 Memorandum #ircular o& ==@!!1 (authoriing conGscation of licenses u,on issuanceof a =V>) *as ,assed by the Metro Manila #ouncil in the absence of a quorum&

MMD6’s arguments:

• =he ,o*ers granted to it by %ec& @(f) of >6 72" are !i'i"e* "o ",e Din%3 co!!ec"ion n*i'po#i"ion o( Dne# n* pen!"ie# (or "rc vio!"ion# *hich ,o*ers are legislatie ande.ecutie in natureF the Q&*icir re"in# ",e ri%," "o *e"er'ine ",e v!i*i" o( ",epen!" i'po#e*&

• =he doctrine of se,aration of ,o*ers does not ,reclude admi.ture of the three ,o*ers of goernment in administratie agencies&htt,:QQsc&$udiciary&go&,hQ$uris,rudenceQ2!!@Qa,r2!!@Q1C!2C!&htm [ftn"

http://sc.judiciary.gov.ph/jurisprudence/2005/apr2005/130230.htm#_ftn4http://sc.judiciary.gov.ph/jurisprudence/2005/apr2005/130230.htm#_ftn4


29/45

• %ec& @(f) of >e,& 6ct o& 72" has an e.isting 0>>: MMD6 Memorandum #ircular o& ==@!!1&Moreoer it asserts that though the circular is the basis for the issuance of =V>s the basis forthe summary conGscation of licenses is %ec& @(f) of >e,& 6ct o& 72" itself and that such,o*er is selfe.ecutory and does not require the issuance of any im,lementing regulation orcircular&

• 6 license to o,erate a motor ehicle is neither a contract nor a ,ro,erty right but is a ,riilege

sub$ect to reasonable regulation under the ,olice ,o*er in the interest of the ,ublic safety and*elfare&

• =he reocation or sus,ension of this ,riilege does not constitute a ta=#:

• MMD6 Memorandum #ircular o& ==@!!1 oid& 0t *as ,assed *ithout a quorum&

• =he summary conGscation iolates due ,rocess&

• MMD6 is ordered to desist from conGscating driers license *ithout Grst giing the drier theo,,ortunity to be heard in an a,,ro,riate ,roceeding&

%u,erening -ent:

MMD6 im,lemented Memorandum #ircular o& !" %& 2!!"& 9nder the circular "rcen(orcer# ' no !on%er conD#c"e *river# !icen#e# # '""er o( co&r#e in c#e# o( "rc vio!"ion#.

0ssue:

• R %ection @(f) of >6 72" creating the MMD6 *hich authories it to conGscate and sus,end

or reouling:

• #ase is moot& =he ,etitioner ho*eer is no" prec!&*e* (ro' i'p!e'en"in% any schemethat *ould entail conGscating driers licenses&

>atio:

&6 A li"ense to operate a 3otor vehi"le is a privile$e that the state 3a. ithhold in the e)er"ise o- its poli"e poer6

+6 1he @@DA is not vested ith poli"e poer6

=he MMD6 is no" !oc! %overn'en" &ni" or p&/!ic corpor"ion endo*ed *ithlegislatie ,o*er and unliir#. Local goernment units are the


30/45

,roinces cities munici,alities and 4aran$a.s *hich e.ercise ,olice ,o*er through theirres,ectie legislatie bodies&

• 5here is no syllable in &. . (o. 6)27 that grants the 8 police power, let alonelegislative power & 9nli


31/45

b& %ecs& 2 and C: =he ,ro$ect *as for (o&r in"eri' co''on "er'in!# focusing initiallyon orth and %outh Metro Manila& =he MMA ?o&!* /e *e#i%n"e* # ",eI'p!e'en"in% A%enc for the ,ro$ect&

c& ;or this ,ro$ect the MMD6 *ould hae seeral functions and res,onsibilities:1& ,re,aration of the ,ro$ect Master 4lan2& coordinating *ith agencies and lando*ners for the use of landQ,ro,erties for the,ro$ect

C& su,erising and managing construction of structures and facilities&"& e.ecuting necessary contracts for the im,lementation of the ,ro$ect inaccordance *ith e.isting la*s and ,ertinent regulations@& managing funds as may be necessary for the ,ro$ects in accordance *ith,reailing accounting and audit ,ractice in goernment?& enlisting the assistance of any national goenrment agency oNce orde,artment including L+9s and +##s as may be necessary7& assigning and hiring ,ersonnel for the aboe ,ur,oses3& ,erforming such other related functions as necessary to accom,lish theob$ecties and ,ur,oses of - 17&

2& =he MMD6Js goerning board and ,olicymaesolution o& !C!7 s&2!!C e.,ressing full su,,ort of the 4ro$ect& 0n ,articular the MM# stressed

the need to remoe the bus terminals along ma$or Metro Manila thoroughfares&

C& =he MMA ",en /e%n i'p!e'en"in% ",e EO& 6round ;ebruary 2" of the same year t*o/ co'pnie# D!e* pe"i"ion# before the >=# of Manila:

a& Viron Trn#por" D!e* pe"i"ion (or *ec!r"or re!ie( alleging that the MMD6 *as,oised to issue a Memo #ircular or rder closing or tantamount to closing all ,roincialbus terminals along -D%6 and in the *hole of Metro Manila& 0ts terminals in %am,alocManila and in \ueon #ity *ould be among them& =hey allege that such is outside theauthority of the MMD6 to regulate traNc under its charter >6 72"& 0n addition they see<a ruling on the legality of the said acts alongside the 4ublic %erice 6ct and related la*s*hich mandate ,ublic utilities to ,roide and maintain their o*n terminals as requisite foro,erating as common carriers&b& Mencorp Trn#por" D!e* #i'i!r pe"i"ion3 'in% #i'i!r !!e%"ion# # Viron&

=hey also see< that the - be declared unconstitutional and illegal for transgressing the,ossessory rights of o*ners and o,erators of ,ublic land trans,ortation units oer theirres,ectie terminals&

"& T,e TC in i"# ori%in! *eci#ion r&!e* in (vor o( MMA holding that the - *as a alide.ercise of ,olice ,o*er as it satisGed the sub$ect matter and means tests& o*eer3 ",erever#e* on MR holding that the - *as an unreasonable e.ercise of ,olice ,o*er that MMD6Jsauthority under %ec& @e of its charter does not include the ,o*er to close the terminals and thatthe - is inconsistent *ith the 4ublic %erice 6ct& MMD6Js M> being denied they Gle the ,resent,etition *ith the %u,reme #ourt&

00& 0%%9-% and 6>+9M-=% 4-> 0%%9-:

1& RQ the case ,resents a Q"ici/!e con"rover# allo*ing for a ,etition for declaratoryrelief&6& 4-=0=0-> MMD6Js 6>+9M-=%

a& =here is no Q"ici/!e con"rover# as nothing in the body of the - mentionsor orders the closure and elimination of bus terminals& o eidence *as citeda,,rising the trans,ort grou,s of an immediate ,lan to close do*n their terminals&b& -en then the - is on! n *'ini#"r"ive *irec"ive to goernment agenciesto coordinate *ith the MMD6 and to ma


32/45

/& >-%4D-=%J #9=->6>+9M-=%a& =here is a Q"ici/!e con"rover#& =hey resorted to the #ourt because the -in one of its *hereas clauses (see ;acts) set out the MMD6Js ,lan to eliminate thebus terminals& Viron een alleged that there is already a diagram laying do*n thedesign of one the terminals and that such is already being constructed& (the MMD6een aNrmed that they hae begun im,lementing the -)

2& RQ the MMA ,# ",e &",ori" "o order the elimination of the bus terminals gien the

la* and the #onstitution&

6& >-%4D-=%J 6>+9M-=%a& =he MMA ,# no &",ori" to order the elimination of their bus terminalsunder the -& %uch iolates the #onstitution and the 4ublic %erice 6ctF they do noteen hae the necessary authority in their charter&

/& 4-=0=0->J% 6>+9M-=%a& =he real issue is the 4residentJs authority to underta-%4D-=%J 6>+9M-=%:

a& No i##&e # "o p&/!ic p&rpo#e& =raNc congestion is a ,ublic concern thatneeds to be addressed immediately&b& =he eerci#e o( ",e po?er ?# oppre##ive n* "rn#%re##e* ",eir ri%,"#over ",eir re#pec"ive "er'in!# (of a conGscatory character)&

/& 4-=0=0->J% 6>+9M-=%:a& =here *as a v!i* eerci#e of ,olice ,o*er&

"& >egardless of the im,lementing agency RQ the - is in !ine ?i", ",e provi#ion# o( ",e

P&/!ic Service Ac"&6& >-%4D-=%J 6>+9M-=:

a& =he c!o#&re o( ",e "er'in!# i# no" in !ine ?i", ",e PSA *hich 'n*"e#p&/!ic &"i!i"ie# "o provi*e n* 'in"in ",eir o?n "er'in!# # re&i#i"e forthe ,riilege of o,erating as common carriers&

/& 4-=0=0->J% 6>+9M-=:a& =he closure is in line *ith the 4%6& =he issue is more on the 4resident’s authority&

000& #9>=’% D0%#9%%0:

1& S-% as the - is already being im,lemented and there is already the ,ossibility of closure ofterminals (an eent that *ould ma


33/45

=he re#or" "o co&r" ?# pro'p"e* / ",e i##&nce o( ",e EO& %eeral provi#ion#&n*er ",e EO #,o? n in"en" "o i''e*i"e! eec&"e the ,lans laid therein:

=he - *as made eHectie immediately& %ec& 2 laid do*n the immediate establishment of common terminals for north andsouthbound commuters& %ec& 3 directed the D/M to allocate funds for the terminals&

%uch resole i# /o!#"ere* / ",e MMC# Re#o!&"ion 08-0= *here it also stressed theintent to remoe bus terminals and to establish common terminals& =he MMA even r'e*

"," ",e ,ve /e%&n i'p!e'en"in% the ,ro$ect& =his is no longer con$ectural or antici,atoryPit is an actual $usticiable controersy& ;or

them to *ait for actual issuance of an order of closure *ould be to bring the case outside theambit of declaratory relief&

As to the ar$u3ent that the EO is unrelated to third persons: =he provi#ion# o( ",e EO re c!er that the MMA #ee# "o e!i'in"e ",e ei#"in%

/ "er'in!#3 inc!&*in% ",o#e o?ne* / ",e re#pon*en"#& %aid res,ondents *ould hae too,erate from the common terminals&

%urely ",ere ?o&!* /e n *ver#e e>ec" on ",e' for they stand to be de,ried oftheir constitutional right to ,ro,erty *ithout due ,rocess of la*&

2& as (1) the agency *ith the ,o*er to establish and administer integrated ,rograms for

trans,ortation is the D=# and (2) een if the MMD6 could be delegated the ,o*er the MMD6Js#harter is limited merely to administer and a,,ly the la*&

I6 On the part o- the !resident Sec#. 93 73 3 n* 44 o( EO 147 %ve ",e OTC ",e po?er "o e#"/!i#, n*

*'ini#"er co'pre,en#ive n* in"e%r"e* pro%r'# (or "rn#por""ion n*co''&nic"ion# *ith the OTC # ",e pri'r en"i" for the ,romotion deelo,ment andregulation of trans,ortation and communications&

%uch po?er e"en*# "o ",e Pre#i*en" ",ro&%, ,er con"ro! o( ",e eec&"ive*epr"'en"3 /&re n* oce# under 6rt& V00 %ec& 17 of the #onstitution and %ec& 1 /< 000and %ec& C3 #ha,ter C7 /< 0V of the >eised 6dministratie #ode& =he latter een deGnes#&pervi#ion n* con"ro! to inc!&*e &",ori" "o c" *irec"! ?,enever #peciDc (&nc"ioni# en"r"e* / !? or re%&!"ion "o #&/or*in"e&

ote that such a delegation is a delegation of ,olice ,o*er& =his is a matter of im,ortance inrelated issues&

II6 On the part o- the @@DA o*eer - 12@ states that the OTC i# ",e pri'r i'p!e'en"in% n*

*'ini#"r"ive en"i" for trans,ortation& i", ",i# !one3 EO 147 i# &!"r vire# by ma6 72" does not gie authority to the MMD6 to eliminate bus terminals& T,e #cope o( ",e MMA# (&nc"ion# ?# !re* #e""!e* in MMA v Be!-Air *here

the #ourt stressed that they are limited to the deliery of seen basic serices one of *hich istrans,ort and traNc management including the mass trans,ort system and that only certain acts

*ere allo*ed under their charter: formulation coordination regulation im,lementation,re,aration management monitoring setting of ,olicies installation of systems andadministration&

T," #cope *i* no" %ive ",e' n",in% re#e'/!in% po!ice or !e%i#!"ive po?er3&n!ie ",e !e%i#!"ive /o*ie# o( LGU#& =hey cannot order the elimination of terminals the actbeing one of ,olice ,o*er&

C& as the means used in lessening traNc congestion *ere unduly o,,ressie&

=here are t*o tests for a alid ,olice ,o*er measure&


34/45

(1) 4ublic ,ur,ose test ",e in"ere#" o( ",e p&/!ic %ener!! # *i#"in%&i#,e* (ro'"," o( pr"ic&!r c!## requires its e.ercise(2) Means test the 'en# e'p!oe* re re#on/! nece##r for theaccom,lishment of the ,ur,ose and no" &n*&! oppre##ive u,on indiiduals

=here *as no i##&e # "o p&/!ic p&rpo#e3 on! # "o ",e 'en# e'p!oe*& =hee>ec" o( ",e EO ?o&!* nece##ri! /e ",e c!o#&re o( ",e ei#"in% / "er'in!#Pis thiso,,ressie&

=his is #i'i!r "o L&cen Grn* Cen"r! Ter'in! v AC Liner3 ?,ere ci"or*innce re&irin% !! PUV# in L&cen "o &n!o* n* !o* " #in%!e co''on "er'in!?# #"r&c *o?n *&e "o over/re*", the #ourt then Gnding that it *as beyond *hat *asreasonably necessary to sole the traNc ,roblem in the city& Rorse the com,ulsory use of thecentral terminal *as held o,,ressie as it sub$ected its users to additional fees and charges&%urely there could hae been alternaties if terminals lac< adequate s,ace that driers hae toload and unload on the streets then they could im,ose regulations for terminal s,eciGcations&Rorse the sco,e is so broad that een entities that may be able to ,roide better facilities arebarred&

T,e #'e i# ",e c#e ,ere. =here are so many less intrusie measures that could haebeen aailed of such as banning colorum ehicles or strictly enforcing traNc rules& ere there iscertainly an inalid e.ercise of ,olice ,o*er&

6 caeat: the - cannot said to be conGscatory of ,ro,erties as their certiGcates of ,ublicconenience confer no ,ro,erty rights they are mere licenses or ,riileges that must yield tolegislation&

"& as the la* recognies the terminal facilities as a necessary serice *ith the elimination ofsuch running contrary to it&

4aragra,h (a) %ec& 1C #ha,ter 00 of the 4ublic %erice 6ct (no* ,art of the L=;>/ charter)ested the 4%# (no* L=;>/) *ith $urisdiction su,erision and control oer ,ublic serices (at leastfor land trans,ort) as *ell as their franchises equi,ment and other ,ro,erties& 0t may alsoim,ose conditions as to construction and serice as the ,ublic interest and conenience mayrequire&

6mong these is the ,o*er to com,el ,ublic utilities to furnish safe adequate and ,ro,erserice including facilities (%ec& 1? of the 4ublic %erice 6ct)& =his recognies the terminals as anecessary serice *here elimination *ould run counter to the la*&

PETITION ENIE. EO 1=2 ECLARE NULL AN VOI FOR BEING ULTRA VIRES.

86 - ISOMANGCOP v#. ATUMANONG+&>& o& 1"3"3F oember 2@ 2!!"F =inga&Digest by 0an

Fc"#: =his case inoles the constitutionality and alidity of >6 33 signed by 4res& -stradaand D4R’s D&& 11 issued by then %ec& +regorio >& Vigilar&

86n 6ct -stablishing 6n -ngineering District in the ;irst District of the 4roince of Lanao del %urand 6,,ro,riating ;unds =herefor&

9#reation of Mara*i %ubDistrict -ngineering Nce


35/45

4etitioners in this case are 6rsadi M& Disomangco, and >amir M& Dimalotang in theirca,acity as Ncerin#harge and District -ngineerQ-ngineer 00 res,ectiely of the ;irst-ngineering District of D4R6>MM in Lanao del %ur&

=he 126= Con#"i"&"ion10 mandated the creation of autonomous regions in MuslimMindanao and the #ordilleras& 4ursuant to this constitutional mandate RA =8911 *as signed intola* on 6ug& 1 13 by 4res& 6quino eentually creating the 6>MM& =his *as follo*ed by E0 94%!la"in$ the Control and Supervision o- the O"es o- the Depart3ent o- !u4li" Wors andHi$ha.s ithin the Autono3ous #e$ion in @usli3 @indanao under the Autono3ous #e$ional

Govern3ent'66fter years on May 2! 1 %ec& Vigilar issued O 112 creating 5D4R Mara*i %ub

District -ngineering Nce *hich shall hae $urisdiction oer all national infrastructure ,ro$ects andfacilities under the D4R *ithin Mara*i #ity and the ,roince of Lanao del %ur8& =his *as follo*edby RA 622214 on 'anuary 17 2!!1 *hich ,roided that the sum necessary for the maintenanceand o,eration of the district oNce shall be included in the annual +66& =hen #ongress ,a

Documents

01 Province of Batangas v. Romulo