Police Power

- Inherent and plenary power of the State to prohibit acts which are harmful to comfort, welfare and
safety of the public (Ermita-Malate Hotel and Motel Operators Association, Inc. vs Mayor of
Manila)
- Most essential, insistent and least limitable of powers, extending as it does to all the great public
needs
- Power to regulate and prohibit
- Both property rights and liberty

Specific Coverage (HM, SW)

1. Public Health
2. Public Morals
3. Public Safety
4. Public Welfare

Requisites of Police Power/Test of Reasonability

1. Lawful Subject
2. Lawful Means
3. Least Restrictions of Individual Rights
*Whether it encroaches on the rights of an individual

Limitations When Police Power is Delegated (ELM)

1. Express grant by law
2. Limited within its territorial jurisdication
3. Must not be contrary to law

Three Standards For Judicial Review

1. Strict Scrutiny Test
2. Rational Basis Standard of Review
3. Immediate Scrutiny

Police power cannot be bargained away through treaty or contract (Ichong vs Hernandez)

Taxation (Osmena vs Orbos) and eminent domain (Association of Small Landowners vs Secretary of
Agrarian Reform) may be used as an implement of police power.

General Welfare vs Property Rights (Carlos Superdrug Corporation case)

National Security vs Property Rights (Ichong vs Hernandez)

Scope of police power – courts cannot foresee the needs and demands of the society in terms of public
interest and welfare; thus, they cannot delimit beforehand the extent of police power
Eminent Domain
- Inherent right of the State to condemn private property to public use upon payment of just
compensation
- Power of Expropriation

Who May Exercise?

1. Congress
2. By delegation, President, administrative bodies, LGUs, private enterprises performing public
servies

When Is There Taking? (VOB)

1. Diminution of VALUE
2. Prevention of ORDINARY use
3. Deprivation of BENEFICIAL use
* In DESAMA vs Gozun, examples were a. trespass without actual eviction, b. material impairment of the
value, c. prevention of the ordinary uses (easement); property condemned under police power is not
compensable as it is considered noxious

Requisites For Valid Taking, Republic vs Vda. De Castellvi (EMU, PU)

1. Expropriator must ENTER a private property
2. Entry must be for MORE than a momentary period
3. Entry must be UNDER warrant or color of authority
4. Property must be devoted to PUBLIC use
5. UTILIZATION of the property must be in such a way to oust the owner and deprive him of the
beneficial enjoyment of the property

Requisites (PG, PPD)

1. Private property
2. Genuine necessity – inherent in legislation, but if the power is delegated then it necessity must be
proven
3. For public use
4. Payment of just compensation
5. Due process

Valid Reasons of Trial Courts to Disregard Findings of Commisioners (Estimation of Value), NAPOCOR vs
Dela Cruz
1. When commissioners have applied illegal principles to the evidence
2. When commissioners disregarded clear preponderance of evidence
3. When amount allowed is grossly excessive and inadequate

Exercise of the power of eminent domain does not always mean taking of the property, but can also
include imposition of burden on the owner (NAPOCOR vs Gutierrez)

Material impairment of the value of the property, trespass without actual eviction (Ayala de Roxas vs
City of Manila)

Municipal ordinance prohibiting a building (People vs Fajardo)

Public Use – not just the actual use of the public, it may mean public welfare, public interest, public
benefit, public convenience (Reyes vs NHA)
For just compensation, the character of the land at the time of the taking (NAPOCOR vs Henson)

In Agrarian Reform, the expropriation is a revolutionary kind; payment is allowed in other forms like
shares of stocks, bonds

Eminent domain by LGU, amount to be determined by the courts at the time of the taking (City of Cebu vs
Spouses Dedamo)

Failure to pay in 5 years from the finality of the judgment, owner shall have the right to recover the
property (Republic vs Lim)

During national emergency, Government may take over the operation of businesses. This does not
include ownership. This is considered as the police power of the State and not eminent domain; thus,
compensation is not necessary.

Just compensation means not just the appropriate amount to be paid but also payment within the
reasonable time (Eslaban vs De Onorio)

Payment to be determined at the time of the taking or the filing of complaint, whichever comes first

Taxation
Purpose (RPT)
1. Raise revenue
2. Protection and power to keep alive
3. Tool for regulation

Who May Exercise? (NLP)

1. National Legislature
2. Local Legislative Bodies
3. President

General Limitations (GP, NU)

1. For the GENERAL WELFARE, should be exercised only for a public purpose
2. Must be justified for PUBLIC PURPOSE – tax for special funds, if already fulfilled the balance shall
be transferred to the general funds of the Government (Osmena vs Orbos)
3. Due process of law – tax should NOT BE CONFISCATORY; when tax becomes unconscionable and
unjust as to amount to confiscation of property, court may strike it down (Tan vs Del Rosario)
4. Equal protection clause – tax must be UNIFORM AND EQUITABLE

Specific Limitations (UT)

1. Uniformity of taxation
Exceptions, does not prohibit classification provided the following requisites: (SN,G, BPFC, EM)
a. standards use are substantial and not arbitrary
b. classification is germane to achieve the legislative purpose
c. if it applies to both present and future conditions, other circumstances being equal
d. applies equally to members of the same class
 2. Tax Exemption
May be statutory and constitutional
Statutory – been passed by the majority of the members of the Congress
Constitutional, Requisite is EXCLUSIVE USE (ECR)
a. Educational institutions (profit and non-profit), ade for educationl purposes, only to property
tax but not excise tax
b. Charitable institutions, charitable and religious institutions for the improvement of the
morality and the care of the indigent and the PWDs
c. Religious Property, charitable institutions, churches, convents, mosques, non-profit cemeteries

Gerochi vs DOE – generation is the primary purpose and regulation is merely incidental

Equal protection clause – tax must be uniform (tax must be of the same rate to persons and things
belonging to the same class) and equitable (tax must be apportioned among individuals according to
their ability to pay)

Progressive system of taxation – rate increases as the tax base increases, with basis as social justice;
taxation as an instrument for a more equal distribution of wealth

Delegated tax legislation – Congress may delegate law-making authority when the Constitution itself
specifically authorizes it

Similarities PIN ME
1. Presuppose equivalent compensation
2. Inherent in the State (exercised without the need of express constitutional grant)
3. Necessary and indispensable (cannot be effective without them)
4. Method by which State interferes with private property
5. Exercised primarily by the Legislature

Differences
Compensation
P – none, altruistic feeling for contributing to the public good
E – just compensation, full and fair equivalent of the taken property
T - none, protection given and public improvements by the Government

Use of Property
P – not appropriated for public use
E – appropriated for public use
T – used as an implement for the attainment of a legitimate police power - to regulate a business or trade

Objective
P – for public comfort, welfare and safety, remove something noxious to society
E – property taken for public use
T – earn revenue for the Government

Coverage
P – property rights and liberty
E, T – property rights only
Police Power vs Eminent Domain Police Power vs Taxation
Primary purpose Primary Purpose
P – for general comfort, health and prosperity P – to regulate
E – for public use T – to generate and raise revenue

Parties exercising power Basis

P – only by the Government P – self-preservation and self- protection
E – exercised by the private entities T – Life Blood Theory

License Fee vs Tax T – unlimited provided not confiscatory

Basis
L – police power: to regulate Object
T – taxation power: to raise revenue L – paid for the privilege of doing something and
may be revoked when public interest so requires
Limitation T – persons or property
L – amount is limited to a. cost of permit, b.
reasonable police regulation Effect of Non-Payment
Exception: license fee is imposed on a non-useful L – business becomes illegal
occupation, such as practice of hygienic and T – business or activity does not become illega
aesthetic massage

Delagations
Police power
Legislature – primarily lodged in the national legislature
Executive – valid delegation of legislative power, by the President and administrative bodies, and
lawmaking bodies of LGUs

Eminent Domain
Extent of Power
By congress – pervasive and all-encompassing
By delegates – only as broad as the enabling law and the conferring authorities want it to be

Question of Necessity
By congress – political question
By delegates – justiciable question, RTC must determine if there is genuine necessity for its exercise; if
not justiciable, there is a grant of special authority for special purpose

Re: Private Property

By delegates – cannot expropriate private property already devoted to pubic use

Taxation
1. Legislature
2. Local legislative bodies
3. President