Alvarez v.

Guingona Facts: HB 8817, entitled "An Act Converting the Municipality of Santiago into an Independent Component City to be known as the City of Santiago," was filed in the HoR, subsequently passed by the HoR, and transmitted to the Senate. A counterpart of HB 8817, SB 1243 was filed in the Senate, and was passed as well. The enrolled bill was submitted to and signed by the Chief Executive as RA 7720. When a plebiscite on the Act was held on July 13, 1994, a great majority of the registered voters of Santiago voted in favor of the conversion of Santiago into a city. Issue: Constitutionality of RA 7720. SC: YES, petition denied, presumption of constitutionality, no clear and unequivocal breach of the Consti. 1. WON Internal Revenue Allotments (IRAs) must be included in determining the average annual income for purposes of conversion.YES For a municipality to be converted into an independent component city, its average annual income for the last two consecutive years (at that time, based on 1991 constant prices) must be at least 20M. Petitioners contend that the IRAs must be deducted from the municipalitys income because they are not income but transfers and/or budgetary aid from the NG

and that they fluctuate depending on different factors. The court in its discussion of what an LGU is said that: a. it is a political subdivision of the State which is constituted by law and possessed of substantial control over its own affairs. b. It is an intra sovereign subdivision of one sovereign nation, but not intended, however, to be an imperium in imperio c. It is autonomous in the sense that it is given more powers, authority, responsibilities and resources. Since the LGU is given broadened powers and increased responsibilities, it now operates on a much wider scale. More extensive operations, in turn, entail more expenses. The vesting of duty, responsibility and accountability in every LGU is accompanied with a provision for reasonably adequate resources to discharge its powers and effectively carry out its functions. Availment of such resources is effectuated through the vesting in every LG unit of (1) the right to create and broaden its own source of revenue; (2) the right to be allocated a just share in national taxes, such share

being in the form of internal revenue allotments (IRAs); and (3) the right to be given its equitable share in the proceeds of the utilization and development of the national wealth, if any, within its territorial boundaries. The court held that the IRAs were properly included because they are items of income and form part of the gross accretion of the funds of the LGU. The IRAs regularly and automatically accrue to the local treasury without need of any further action on the part of the LG unit. They thus constitute income which the LG can invariably rely upon as the source of much needed funds. LGC, Sec 450 (c): "the average annual income shall include the income accruing to the general fund, exclusive of special funds, transfers, and non-recurring income." DOF Order 35-93: ANNUAL INCOME: revenues and receipts realized by provinces, cities and municipalities from regular sources of the Local General Fund including the internal revenue allotment and other shares provided for in Secs 284, 290 and 291 of the Code, but exclusive of nonrecurring receipts, such as other national aids, grants, financial assistance, loan proceeds, sales of fixed assets, and similar others.

2. WON considering that the Senate passed SB 1243, its own version of HB 8817, RA 7720 can be said to have originated in the HoR. YES Bills of local application are required to originate exclusively in the HoR. Petitioners contend that since a bill of the same import was passed in the Senate, it cannot be said to have originated in the HoR. Such is untenable because it cannot be denied that the HB was filed first (18 Apr 1993). The SB was filed 19 May. The HB was approved on third reading 17 Dec, and was transmitted to the Senate 28 Jan 1994. The filing in the Senate of a substitute bill in anticipation of its receipt of the bill from the House, does not contravene the constitutional requirement that a bill of local application should originate in the House of Representatives, for as long as the Senate does not act thereupon until it receives the House bill. The filing in the Senate of a substitute bill in anticipation of its receipt of the bill from the HoR, does not contravene the constitutional requirement that a bill of local application should originate in the HoR, for as long as the Senate does

not act thereupon until it receives the House bill. Tolentino v. SoF: what the Constitution simply means is that the initiative for filing revenue, tariff, or tax bills, bills authorizing an increase of the public debt, private bills and bills of local application must come from the HoR on the theory that, elected as they are from the districts, the members of the House can be expected to be more sensitive to the local needs and problems. On the other hand, the senators, who are elected at large, are expected to approach the same problems from the national perspective. Both views are thereby made to bear on the enactment of such laws. Nor does the Constitution prohibit the filing in the Senate of a substitute bill in anticipation of its receipt of the bill from the House, so long as action by the Senate as a body is withheld pending receipt of the House bill. Basco v. PAGCOR Facts: PAGCOR was created under PD 1869 to enable the Government to regulate and centralize all games of chance authorized by existing franchise or permitted by law. To attain its objectives (centralize and integrate the right and

authority to operate and conduct games of chance, generate additional revenue to fund infrastructure and socio-civic project, expand tourism, minimize evils prevalent in conduct and operation of gambling clubs) PAGCOR is given territorial jurisdiction all over the Philippines. Under its Charter's repealing clause, all laws, decrees, executive orders, rules and regulations, inconsistent therewith, are accordingly repealed, amended or modified. Issues: 1. WON PD 1869 constitutes a waiver of the right of the City of Manila to impose taxes and legal fees. NO The City of Manila, being a mere Municipal corporation has no inherent right to impose taxes. Thus, "the Charter or statute must plainly show an intent to confer that power or the municipality cannot assume it." Its "power to tax" therefore must always yield to a legislative act which is superior having been passed upon by the state itself which has the "inherent power to tax" The Charter of the City of Manila is subject to control by Congress. It should be stressed that "municipal corporations are mere creatures of Congress" which has the power to "create and abolish municipal corporations" due to its "general legislative powers." Congress, therefore, has the

power of control over LGs. And if Congress can grant the City of Manila the power to tax certain matters, it can also provide for exemptions or even take back the power. The City of Manila's power to impose license fees on gambling, has long been revoked. As early as 1975, the power of LGs to regulate gambling thru the grant of "franchise, licenses or permits" was withdrawn by PD 771 and was vested exclusively on the NG. Only the NG has the power to issue "licenses or permits" for the operation of gambling. Necessarily, the power to demand or collect license fees which is a consequence of the issuance of "licenses or permits" is no longer vested in the City of Manila. LGs have no power to tax instrumentalities of the NG. PAGCOR is a government owned or controlled corporation with an original charter, PD 1869. All of its shares of stocks are owned by the NG. In addition to its corporate powers (Sec. 3, Title II, PD 1869) it also exercises regulatory powers. PAGCOR has a dual role, to operate and to regulate gambling casinos. The latter role is governmental, which places it in the category of an agency or instrumentality of the Government. Being an

instrumentality of the Government, PAGCOR should be and actually is exempt from local taxes. Otherwise, its operation might be burdened, impeded or subjected to control by a mere LG. The states have no power by taxation or otherwise, to retard, impede, burden or in any manner control the operation of constitutional laws enacted by Congress to carry into execution the powers vested in the federal government.--> "supremacy" of the NG over LGs. Holmes: absence of power on the part of the States to touch, in that way (taxation) at least, the instrumentalities of the United States mere creatures of the State can defeat National policies thru extermination of what local authorities may perceive to be undesirable activities or enterprise using the power to tax as "a tool for regulation" 2. WON the Local Autonomy Clause of the Constitution will be violated by PD 1869. NO. Art x Sec 5, Consti: Each LG unit shall have the power to create its own source of revenue and to levy taxes, fees, and other charges subject to such guidelines and limitation as the congress may provide, consistent with the basic policy on local

autonomy. Such taxes, fees and charges shall accrue exclusively to the LG. power of LG to "impose taxes and fees" is subject to "limitations" which Congress may provide by law. Since PD 1869 remains an "operative" law until "amended, repealed or revoked" (Sec. 3, Art. XVIII, 1987 Constitution), its "exemption clause" remains as an exception to the exercise of the power of LGs to impose taxes and fees. It cannot therefore be violative but rather is consistent with the principle of local autonomy. principle of local autonomy under the 1987 Constitution simply means "decentralization." It does not make LGs sovereign within the state or an "imperium in imperio." LG: political subdivision of a nation or state which is constituted by law and has substantial control of local affairs. In a unitary system of government, such as the government under the Philippine Constitution, LGs can only be an intra sovereign subdivision of one sovereign nation, it cannot be an imperium in imperio. LG in such a system can only mean a measure of decentralization of the function of government. Villas v. City of Manila Facts:

Villas, Trigas, and aguado are creditors of Manila as it existed before the cession of the Philippine Islands (PI) to the US by the treaty of Paris. According to them, under its present charter from the Government of the PI is the same juristic person and liable upon the obligations of the old city. PI SC: different entity. Issue: WON notwithstanding the cession of the PI to the US followed by a reincorporation of the city, present municipality liable for obligations of old city. YES The city as now incorporated has succeeded to all of the property rights of the old city and to the right to enforce all its causes of action. There is identity of purpose between Sp and Am charters and substantial identity of municipal powers, area, and inhabitants. Argument against liability: ayuntamiento of Manila was a corporation entity created by the Sp government . when the sovereignty of Sp ceased, municipality, ceased as well.-> analogy to doctrine of principal and agent, death of principal=death of agent Dual Character of Municipal Corporations: 1. Governmental: exercises by delegation a part of the sovereignty of the state 2. Private/Business: mere legal entity or juristic person. Stands for the community in the administration of local affairs wholly beyond the

sphere of the public purposes for which its governmental powers are conferred In view of the dual character of municipal corporations, there is no public reason for presuming their total dissolution as a mere consequence of military occupation or territorial cession. McKinleys instruction: relinquishment or cessioncannot in any respect impair the property or rights which by law belong to the peaceful possession of property of all kinds Property rights of municipal corporations and individuals were safeguarded. The cession did not operate as an extinction or dissolution of corporations. The legal entity survived both military occupation and cession. The corporate identity and liability of the city was not extinguished. TVA: entitled to proceed to judgment.

Lidasan v. COMELEC Facts: RA 4790 (An Act Creating the Municipality of Dianaton in the Province of Lanao del Sur) was signed into law. Dianaton is composed of Barrios Togaig, Madalum, Bayanga, Langkong, Sarakan, Kat-bo, Digakapan, Magabo, Tabangao, Tiongko, Colodan,

Kabamakawan, Kapatagan, Bongabong, Aipang, Dagowan, Bakikis, Bungabung, Losain,Matimos and Magolatung. It was later found out that Barrios Togaig, Madalum, Bayanga, Langkong, Sarakan, Kat-bo, Digakapan, Magabo, Tabangao, Tiongko, Colodan, Kabamakawan were not within Lanao del Sur but within Cotabato. The COMELEC adopted a resolution recognizing the new municipality for purposes of election. Meanwhile, the Office of the President recommended that the COMELEC that the operation of the statute be suspended until clarified by correcting legislation. This triggered petitioner to file action. Issue: WON RA 4790 is unconstitutional. YES The constitution requires that no bill must be enacted which shall embrace more than one subject which shall be expressed in the title of the bill. While the Constitution does not require Congress to employ in the title of an enactment, language of such precision as to mirror, fully index or catalogue all the contents and the minute details therein, the title should serve the purpose of the constitutional demand that it inform the legislators, the persons interested in the subject of the bill, and the public, of the nature, scope and consequences of the proposed law and its operation. Test of the sufficiency of a title: whether or not it is

misleading; technical accuracy is not essential, and the subject need not be stated in express terms where it is clearly inferable from the details set forth. In this case, not the slightest intimation is there that communities in the adjacent province of Cotabato are incorporated in this new Lanao del Sur town. The phrase "in the Province of Lanao del Sur," read without subtlety or contortion, makes the title misleading, deceptive. For, the known fact is that the legislation has a two-pronged purpose combined in one statute: (1) it creates the municipality of Dianaton purportedly from twenty-one barrios in the towns of Butig and Balabagan, both in the province of Lanao del Sur; and (2) it also dismembers two municipalities in Cotabato, a province different from Lanao del Sur. Respondents: change in boundaries merely incidental. SC: NO! Transfer of a sizeable portion of territory from one province to another of necessity involves reduction of area, population and income of the first and the corresponding increase of those of the other. This is as important as the creation of a municipality. And yet, the title did not reflect this fact.

Felwa case: cannot be considered by the court, in this case, while no reference to elective officials were made, such were incidental to the creation of B, MP,I, and KA. Hume v. Village of Fruitport: An act to incorporate the village of Fruitport, in the County of Muskegon but statute included Ottawa. Declared unconstitutional for having more than one subject. Contention: in the County of Muskegon a mere surplusage. SC: the court cannot reject a part of the title for the purpose of saving the act. RA 4790 cannot be salvaged with reference to the nine remaining towns. While where a portion of a statute is rendered unconstitutional and the remainder valid, the parts will be separated, and the constitutional portion upheld, it is not so when the parts of the statute are so mutually dependent and connected, as conditions, considerations, inducements, or compensations for each other, as to warrant a belief that the legislature intended them as a whole, and that if all could not be carried into effect, the legislature would not pass the residue independently, then, if some parts are unconstitutional, all the provisions which are thus

dependent, conditional, or connected, must fall with them. Municipal corporations perform twin functions. Firstly. They serve as an instrumentality of the State in carrying out the functions of government. Secondly. They act as an agency of the community in the administration of local affairs. It is in the latter character that they are a separate entity acting for their own purposes and not a subdivision of the State. Several factors come to the fore in the consideration of whether a group of barrios is capable of maintaining itself as an independent municipality. Amongst these are population, territory, and income Speaking of the original twenty-one barrios which comprise the new municipality, the explanatory note reads: the territory is now a progressive community; the aggregate population is large; and the collective income is sufficient to maintain an independent municipality. This bill, if enacted into law, will enable the inhabitants concerned to govern themselves and enjoy the blessings of municipal autonomy. Obviously, what was in the mind of the

proponent was the 21 barrios, and not the nine remaining. Republic v. City of Davao Facts: Davao filed an application for a Certificate of Non-Coverage (CNC) for its proposed project, the Davao City Artica Sports Dome, with the Environmental Management Bureau (EMB), Region XI. The EMB denied the application after finding that the proposed project was within an environmentally critical area and ruled that, pursuant to Sec 2, PD 1586 (Environmental Impact Statement System), in relation to Sec 4, PD 1151, (Philippine Environment Policy), Davao must undergo the environmental impact assessment (EIA) process to secure an Environmental Compliance Certificate (ECC), before it can proceed with the construction of its project. Davao filed a petition for mandamus and injunction with the RTC of Davao alleging that its proposed project was neither an environmentally critical project nor within an environmentally critical area; thus outside the scope of the EIS system. Hence, it was the ministerial duty of the DENR, through the EMB, to issue a CNC in favor of respondent upon submission of the required documents. RTC: for Davao. LGUs not required by PDs 1586 & 1511 to comply with the EIS law. Only agencies and instrumentalities of the NG, including GOCCs, as well as private corporations, firms and entities are mandated to go through the EIA process for their proposed projects which have significant effect on the quality of the

environment. An LGU, not being an agency or instrumentality of the NG, is deemed excluded under the principle of expressio unius est exclusio alterius. MR: denied Issue: WON Davao is required to comply with the EIS law. YES. **Davao already expressed agreement that it must secure an ECC for proposed project, hence moot and academic, but the SC decided to still discuss issues to educate the bench and bar. Davao cannot claim exemption from coverage of PD 1586. LGU a body politic and corporate endowed with powers to be exercised by it in conformity with law. It performs dual functions: (1) Governmental functions are those that concern the health, safety and the advancement of the public good or welfare as affecting the public generally. LGU is an agency of the NG (2) Proprietary functions are those that seek to obtain special corporate benefits or earn pecuniary profit and intended for private advantage and benefit. LGU agent of the community in the administration of local affairs. Sec 16 LGC: duty of the LGUs to promote the peoples right to a balanced ecology. As a body politic endowed with governmental functions, an LGU has the duty to ensure the quality of the environment, which is the

very same objective of PD 1586. Sec 4 of PD 1586 clearly states that no person, partnership or corporation shall undertake or operate any such declared environmentally critical project or area without first securing an ECC issued by the President or his duly authorized representative. The CC defines a person as either natural or juridical. The state and its political subdivisions, LGUs are juridical persons. Undoubtedly therefore, LGUs are not excluded from the coverage of PD 1586. State policy: achieve a balance between socio-economic development and environmental protection, which are the twin goals of sustainable development. This can only be possible if we adopt a comprehensive and integrated environmental protection program where all the sectors of the community are involved, i.e., the government and the private sectors. The LGUs, as part of the machinery of the government, cannot therefore be deemed as outside the scope of the EIS system.