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In every case of permissible delegation, there must be a Congress simply granted the Secretary of Finance the
showing that the delegation itself is valid. It is valid only if the authority to ascertain the existence of a fact, namely, whether
law (a) is complete in itself, setting forth therein the policy to by December 31, 2005, the value-added tax collection as a
be executed, carried out, or implemented by the delegate; and percentage of Gross Domestic Product (GDP) of the previous
(b) fixes a standard — the limits of which are sufficiently year exceeds two and four-fifth percent (2 4/5%) or the
determinate and determinable — to which the delegate must national government deficit as a percentage of GDP of the
conform in the performance of his functions. A sufficient previous year exceeds one and one-half percent (1 1/2%). If
standard is one which defines legislative policy, marks its either of these two instances has occurred, the Secretary of
limits, maps out its boundaries and specifies the public agency Finance, by legislative mandate, must submit such
to apply it. It indicates the circumstances under which the information to the President. Then the 12% VAT rate must be
legislative command is to be effected. Both tests are intended imposed by the President effective January 1, 2006. There is
to prevent a total transference of legislative authority to the no undue delegation of legislative power but only of the
delegate, who is not allowed to step into the shoes of the discretion as to the execution of a law. This is constitutionally
legislature and exercise a power essentially legislative. permissible.
What are the tests in determining whether delegation of Commonwealth Act No. 671 does not in term fix the duration
powers is valid or not? of its effectiveness.
(1.) The completeness test – The law must be complete in all
its terms and conditions when it leaves the legislature Article VI of the Constitution provides that any law passed by
such that when it reaches the delegate the only thing, he virtue thereof should be "for a limited period." "Limited" has
will have to do is enforce it been defined to mean "restricted; bounded; prescribed;
(2.) The sufficient standard test – There must be adequate confined within positive bounds; restrictive in duration, extent
guidelines or stations in the law to map out the or scope." The words "limited period" as used in the
boundaries of the delegate's authority and prevent the Constitution are beyond question intended to mean
delegation from running riot. restrictive in duration. Emergency, in order to justify the
delegation of emergency powers, "must be temporary or it
The legislature may delegate to executive officers or bodies cannot be said to be an emergency."
the power to determine certain facts or conditions, or the
happening of contingencies, on which the operation of a It is to be presumed that Commonwealth Act No. 671 was
statute is, by its terms, made to depend, but the legislature approved with this limitation in view.
must prescribe sufficient standards, policies or limitations on
their authority. While the power to tax cannot be delegated The opposite theory would make the law repugnant to the
to executive agencies, details as to the enforcement and Constitution, and is contrary to the principle that the
administration of an exercise of such power may be left to legislature is deemed to have full knowledge of the
them, including the power to determine the existence of facts constitutional scope of its powers.
on which its operation depends.
The assertion that new legislation is needed to repeal the act
would not be in harmony with the Constitution either. If a new
and different law were necessary to terminate the delegation,
the period for the delegation, it has been correctly pointed
out, would be unlimited, indefinite, negative and uncertain;
"that which was intended to meet a temporary emergency
may become permanent law,” for Congress might not enact
the repeal, and even if it would, the repeal might not meet
with the approval of the President, and the Congress might
not be able to override the veto. Furthermore, this would
create the anomaly that, while Congress might delegate its
powers by simple majority, it might not be able to recall them
except by a two-third vote. In other words, it would be easier
What then was the contemplated period? President Quezon Doctrine: The delegation of emergency powers to the
in the same paragraph of his autobiography furnished part of president must only be temporary. If it is not, it cannot be said
the answer. He said he issued the call for a special session of to be an emergency.
the National Assembly "when it became evident that we were
completely helpless against air attack, and that it was most
unlikely the Philippine Legislature would hold its next regular
session which was to open on January 1, 1942."
Issue: W/N the emergency powers constituted in both EO 545 We can take judicial notice of the fact that the Congress has
and 546 constitutional. since liberation repeatedly been approving acts appropriating
funds for the operation of the Government, public works, and
Held: No. The logical view consistent with constitutionality is many other purposes, with the result that as to such legislative
to hold that the powers lasted only during the emergency task the Congress must be deemed to have long decided to
resulting from the last world war which factually involved the assume the corresponding power itself and to withdraw the
Philippines when Act No. 671 was passed. That emergency, same from the President. If the President had ceased to have
which naturally terminated upon the ending of the last world powers with regards to general appropriations, none can
war. remain in respect of special appropriations; otherwise, he may
accomplish indirectly what he cannot do directly. Besides, it is
This is confirmed by the statements of President Quezon, that significant that Act No. 671 expressly limited the power of the
Act No. 671 is enlightening and should carry much weight, President to that of continuing "in force" appropriations which
considering his part in the passage and in the carrying out of would lapse or otherwise become inoperative, so that, even
the law. Mr. Quezon, who called the National Assembly to a assuming that the Act is still effective, it is doubtful whether
special session, who recommended the enactment of the the President can by executive orders make new
Emergency Powers Act, if indeed he was not its author, and appropriations.
who was the very President to be entrusted with its execution,
stated in his autobiography, "The Good Fight," that Act No. The specific power "to continue in force laws and
671 was only "for a certain period" and "would become invalid appropriations which would lapse or otherwise become
unless reenacted." These phrases connote automatic inoperative" is a limitation on the general power "to exercise
extinction of the law upon the conclusion of a certain period. such other powers as he may deem necessary to enable the
Government to fulfill its responsibilities and to maintain and
Moreover, the Constitution authorizes the delegation of enforce its authority."
powers by the Congress:
(1.) In times of war; or Shelter may not be sought in the proposition that the
(2.) Other national emergency. President should be allowed to exercise emergency powers
for the sake of speed and expediency in the interest and for
The emergency expressly spoken of in the title and in section the welfare of the people, because we have the Constitution,
1 of the Act is one "in time of war," as distinguished from designed to establish a government under a regime of justice,
"other national emergency" that may arise as an after-effect liberty and democracy.
of war or from natural causes such as widespread earthquakes,
typhoons, floods, and the like. Certainly, the typhoons that hit In line with such primordial objective, our Government is
some provinces and cities in 1952 not only did not result from democratic in form and based on the system of separation of
the last world war but were and could not have been powers. Unless and until changed or amended, we shall have
contemplated by the legislators. At any rate, the Congress is to abide by the letter and spirit of the Constitution and be
available for necessary special sessions, and it cannot let the prepared to accept the consequences resulting from or
people down without somehow being answerable thereover. inherent in disagreements between, inaction or even refusal
of the legislative and executive departments. Much as it is
There is no point in the argument that the Philippines is still imperative in some cases to have prompt official action,
technically at war pending the ratification of the peace treaty. deadlocks in and slowness of democratic processes must be
In the first place, Act No. 671 referred to a factual war. In the preferred to concentration of powers in any one man or group
second place, the last world war was between the United of men for obvious reasons.
States and Japan, the Philippines being involved only because
it was then under American sovereignty. In the third place, the The framers of the Constitution, however, had the vision of
United States had already signed the peace treaty with Japan, and were careful in allowing delegation of legislative powers
and the Philippines has become an independent country. to the President for a limited period "in times of war or other
national emergency." They had thus entrusted to the good
Doctrine: The emergency expressly is one "in time of war," as The probation Act does not fix and impose upon the
distinguished from "other national emergency" that may arise provincial boards any standard or guide in the exercise of their
as an after-effect of war or from natural causes such as discretionary power. What is granted, if we may use the
widespread earthquakes, typhoons, floods, and the like. The language of Justice Cardozo in the recent case of Schecter,
Congress is available for necessary special sessions, and it supra, is a "roving commission" which enables the provincial
cannot let the people down without somehow being boards to exercise arbitrary discretion. In other words, the
answerable thereover. Shelter may not be sought in the provincial boards of the various provinces are to determine
proposition that the President should be allowed to exercise for themselves, whether the Probation Law shall apply to their
emergency powers for the sake of speed and expediency in provinces or not at all. If a provincial board does not wish to
the interest and for the welfare of the people, because we have the Act applied in its province, all that it has to do is to
have the Constitution, designed to establish a government decline to appropriate the needed amount for the salary of a
under a regime of justice, liberty and democracy. probation officer. This, to our minds, is a virtual surrender of
legislative power to the provincial boards.
People vs. Vera
It is contended, however, that a legislative act may be made
G.R. No. 45685. November 16, 1937
to the effect as law after it leaves the hands of the legislature.
It is true that laws may be made effective on certain
Facts:
contingencies. The Supreme Court of the United States ruled
➔ Defendant Mariano Cu Unjieng was convicted by final that the legislature may delegate a power not legislative
judgment for the crime estafa thru falsification of which it may itself rightfully exercise.
commercial documents.
➔ The instant proceedings have to do with the application The power to ascertain facts is such a power which may be
for probation filed by Unjieng before the trial court, delegated. There is nothing essentially legislative in
under the provisions of Act No. 4221 of the defunct ascertaining the existence of facts or conditions as the basis
Philippine Legislature. of the taking into effect of a law. The legislature, then, may
➔ Fiscal of the City of Manila filed an opposition to the provide that a law shall take effect upon the happening of
granting of probation of Unjieng. The private future specified contingencies leaving to some other person
prosecution also filed an opposition alleging, among or body the power to determine when the specified
others, that Act No. 4221, assuming that it has not contingency has arisen. But, in the case at bar, the legislature
been repealed by section 2 of Article XV of the has not made the operation of the Probation Act contingent
Constitution, is nevertheless violative of the upon specified facts or conditions to be ascertained by the
Constitution as an undue delegation of legislative provincial board. It leaves the entire operation or non-
power to the provincial boards of several provinces operation of the law upon the provincial boards. The
because section 11 of said Act No. 4221 endows the discretion vested is arbitrary because it is absolute and
provincial boards with the power to make said law unlimited. It is bound by no rule — limited by no principle of
effective or otherwise in their respective provinces. expediency announced by the legislature.
Issue: W/N Act No. 4221 is constitutional. Doctrine: As a rule, an act of the legislature is incomplete and
hence invalid if it does not lay down any rule or definite
Held: NO. Unconstitutional. standard by which the administrative officer or board may be
guided in the exercise of the discretionary powers delegated
The challenged section of Act No. 4221 is section 11 which to it. In the case at bar, we do not find any and none has been
reads as follows: "This Act shall apply only in those provinces pointed to us by the respondents. The probation Act does not
in which the respective provincial boards have provided for fix and impose upon the provincial boards any standard or
the sale of a probation officer at rates not lower than those guide in the exercise of their discretionary power. What is
now provided for provincial fiscals…" granted, if we may use the language of Justice Cardozo in the
recent case of Schecter, supra, is a "roving commission" which
For the purposes of the Probation Act, the provincial boards enables the provincial boards to exercise arbitrary discretion.
may be regarded as administrative bodies endowed with In other words, the provincial boards of the various provinces
power to determine when the Act should take effect in their are to determine for themselves, whether the Probation Law
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The Act wholly fails to provide definitely and clearly what the
standard policy should contain, so that it could be put in use
as a uniform policy required to take the place of all others
without the determination of the insurance commissioner in
respect to matters involving the exercise of a legislative
discretion that could not be delegated, and without which the
act could not possibly be put in use.
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