Case Summary (G.R. No. 129093)
Enactment of Kapasiyahan Blg. 508, T. 1995
On September 18, 1995, the Laguna provincial board adopted a resolution opposing all forms of gambling, “especially lotto,” citing its pernicious effects. The text is a declaratory statement of policy condemning illegal gambling and urging the PNP to intensify anti‐jueteng operations. No implementing ordinance was passed.
Underlying Permit Denial and Trial Court Proceedings
Calvento, as PCSO agent, applied for a mayor’s permit on February 19, 1996. Mayor Cataquiz denied it solely on the ground of Kapasiyahan Blg. 508. Calvento filed for declaratory relief, preliminary injunction, and annulment of the resolution. On February 10, 1997, RTC Branch 93 enjoined petitioners from implementing or enforcing the resolution. A motion for reconsideration was denied on April 21, 1997.
Petitioners’ Arguments
- Resolution as Valid Policy Declaration: They assert the provincial board legitimately exercised its police power under the General Welfare Clause of RA 7160 to express vehement objection to gambling.
- Mandatory Consultation and Approval: They contend that Sections 2(c) and 27 of RA 7160 require PCSO and its agents to secure local approval before implementing national programs or projects, including lotto outlets.
Respondent and State Position
- Calvento: Argues that lotto is lawful under a congressional franchise to PCSO and that the consultation requirement in RA 7160 is a non‐self-executing policy statement, not a precondition to lawful operations.
- Office of the Solicitor General: Maintains that local units, as mere delegates of national power, cannot contravene statutes; since Congress authorized PCSO lotteries, Laguna may not prohibit them by resolution.
Issues for Resolution
- Validity of Kapasiyahan Blg. 508, T. 1995 and the resultant permit denial
- Applicability of Sections 2(c) and 27 of RA 7160 to PCSO lottery operations
Legality of the Provincial Resolution
The Court holds that Kapasiyahan Blg. 508 is a non-self-executing policy statement expressing local autonomy but lacking legal force to prohibit an activity authorized by national law. Under the unitary 1987 Constitution, local legislative powers are delegated by Congress and must yield to statutes. R.A. 1169, as amended by BP 42, grants PCSO authority to conduct lotteries; hence the provincial board cannot nullify that grant. Precedents (Tatel, Magtajas, Basco) reinforce that local ordinances or resolutions cannot contravene a valid national statute.
Applicability of the Consultation R
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Facts
- On December 29, 1995, Tony Calvento was appointed by the Philippine Charity Sweepstakes Office (PCSO) to install Terminal OM 20 for lotto operations in San Pedro, Laguna.
- Calvento applied to Mayor Calixto Cataquiz for a mayor’s permit to operate the lotto outlet.
- Mayor Cataquiz denied the application on February 19, 1996, citing Kapasiyahan Blg. 508, Taon 1995 of the Sangguniang Panlalawigan of Laguna.
- Kapasiyahan Blg. 508, T. 1995 is a provincial resolution declaring the board’s strong objection to all forms of gambling, particularly lotto, as a policy statement.
Procedural History
- Calvento filed in RTC San Pedro, Laguna, Branch 93, a complaint for declaratory relief with prayer for preliminary injunction and TRO.
- He sought:
- Enjoining enforcement of Kapasiyahan Blg. 508, T. 1995;
- An order compelling issuance of the mayor’s permit;
- Annulment of the resolution.
- On February 10, 1997, the RTC enjoined petitioners from enforcing Kapasiyahan Blg. 508, T. 1995.
- Petitioners’ motion for reconsideration was denied on April 21, 1997.
- On May 23, 1997, petitioners filed a petition for review on certiorari with the Supreme Court.
Issues
- Whether Kapasiyahan Blg. 508, T. 1995, and the denial of the mayor’s permit based thereon, are valid.
- Whether Sections 2(c) and 27 of Republic Act 7160 (Local Government Code) require mandatory prior consultation and approval by the sanggunian before operating a lotto system.
Arguments of Petitioners
- Kapasiyahan Blg. 508, T. 199