G.R. No.

111230 September 30, 1994

ENRIQUE T. GARCIA, ET AL., petitioners,
vs.
COMMISSION ON ELECTIONS a! SANGGUNIANG "A#AN O$ MORONG,
"ATAAN, respondents.
Alfonzo M. Cruz Law Offices for petitioners.

%UNO, J.:
The 1987 Constitution is borne of the conviction that people power can be trusted
to check excesses of government. ne of the means b! which people power can
be exercised is thru initiatives where local ordinances and resolutions can be
enacted or repealed. "n effort to triviali#e the effectiveness of people$s initiatives
ought to be re%ected.
&n its 'amba!ang (apas!ahan )lg. 1*, +er!e 199,,
1
the +angguniang )a!an ng
-orong, )ataan agreed to the inclusion of the municipalit! of -orong as part of
the +ubic +pecial .conomic /one in accord with 0epublic "ct
1o. 7227.
n -a! 23, 199,, petitioners filed a petition
2
with the +angguniang )a!an of
-orong to annul 'amba!ang (apas!ahan )lg. 1*, +er!e 199,. The petition
states4
&. )awiin, nulipikahin at pawalang5bisa ang 'amba!ang (apas!ahan )lg. 1*,
+er!e 199, ng +angguniang )a!an para sa pag5anib ng -orong sa ++./ na
walang kondis!on.
&&. 'alitan ito ng isang 'amba!ang (apasi!ahan na aanib lamang ang -orong sa
++./ kung ang mga sumusunod na kondis!ones a! ipagkakaloob, ipatutupad at
isasagawa para sa kapakanan at interes ng -orong at )ataan4
6"7. &balik sa )ataan ang 89irgin :orests8 ; isang bundok na
hindi nagagalw at punong5puno ng malalaking punong5kaho! at
iba$5ibang halaman.
6)7 &hiwala! ang <rande &sland sa ++./ at ibalik ito sa )ataan.
6(7. &sama ang mga lupain ng )ataan na nakapaloob sa +)-"
sa pagkukuenta ng salaping ipinagkakaloob ng pamahalaang
national o 8&nternal 0evenue "llotment8 6&0"7 sa -orong,
=ermosa at sa >alawigan.
6?7. 'a!agang magtatag rin ng sariling 8special economic #ones8
ang bawat ba!an ng -orong, =ermosa at ?inalupihan.
6.7. &base sa laki ng kan!a5kan!ang lupa ang pamamahagi ng
kikitain ng +)-".
6<7. &base rin ang alokas!on ng pagbibiga! ng trabaho sa laki ng
nasabing mga lupa.
6=7. 'aba!aang bukas ang pinto ng +)-" na nasa -orong ng
23 na oras at bukod dito sa magbukas pa ng pinto sa hangganan
naman ng -orong at =ermosa upang magkaroon ng
pagkakataong umunlad rin ang mga nasabing ba!an, pati na rin
ng iba pang ba!an ng )ataan.
6&7. Tapusin ang pagkokonkreto ng mga daang -orong5Tala5
rani at -orong5Tasig5?inalupihan para sa kabutihan ng mga
taga5)ataan at tulo! makatulong sa pangangalaga ng mga
kabundukan.
6@7. -agkaroon ng sapat na representas!on sa pamunuan ng
+)-" ang -orong, =ermosa at )ataan.
The municipalit! of -orong did not take an! action on the petition within thirt!
6,*7 da!s after its submission. 'etitioners then resorted to their power of initiative
under the >ocal <overnment Code of 1991.
3
The! started to solicit the reAuired
number of signatures
4
to cause the repeal of said resolution. Bnknown to the
petitioners, however, the =onorable .dilberto -. de >eon, 9ice -a!or and
'residing fficer of the +angguniang )a!an ng -orong, wrote a letter dated
@une 11, 199, to the .xecutive ?irector of C-.>.C reAuesting the denial of
8 . . . the petition for a local initiative andCor referendum because the exercise will
%ust promote divisiveness, counter productive and futilit!.8
&
De Auote the letter,
viz4
The .xecutive ?irector
C - . > . C
&ntramuros, -etro -anila
+ i r4
&n view of the petition filed b! a group of proponents headed b! <ov. .nriAue T.
<arcia, relative to the conduct of a local initiative andCor referendum for the
annulment of 'amba!ang (apas!ahan )lg. 1*, +er!e 199,, ma! we respectfull!
reAuest to den! the petition referred thereto considering the issues raised b! the
proponents were favorabl! acted upon and endorsed to Congress and other
government agencies b! the +angguniang )a!an of -orong.
:or !our information and guidance, we are enumerating hereunder the issues
raised b! the petitioners with the corresponding actions undertaken b! the
+angguniang )a!an of -orong, to wit4
&++B.+ 0"&+.? )E '0'1.1T+
&. 'awalang5bisa ang 'amba!ang (apas!ahan )lg. 1*, +er!e ng taong 199,.
&&. 'alitan ito ng isang (apas!ahang 'ag5anib sa ++./ kung4
a7 &babalik sa -orong ang pag5aaring <rande &sland,
kabundukan at 1aval 0eservationF
b7 &base sa aring >upa ng ><B ang kikitain at mapapasok na
manggagawa nila sa ++./F
c7 &sama ang nasabing lupa sa pagkukuwenta ng 8&0"8 ng
-orong, =ermosa at ?inalupihanF
d7 -akapagtatag ng sariling 8economic #ones8 ang -orong,
=ermosa at ?inalupihanF
e7 'aba!aan bukas ang pinto ng -orong patungong ++./ at
magbukas ng dalawang 627 pinto paF
6f7 (onkretohin ang daang -orong papunta sa rani at
?inalupihanF
g7 'umili ng +)-" Chairman na taga5ibang lugar.
"CT&1+ B1?.0T"(.1 )E T=. +) : -01<
1. )! virtue of 0.". 7227, otherwise known as the )ases Conversion
?evelopment "ct of 1992, all actions of ><B$s correlating on the above issues
are merel! recommendator! in nature when such provisions were alread!
embodied in the statute.
2. Corollar! to the notion, the +angguniang )a!an of -orong passed and
approved 'amba!ang (apas!ahan )lg. 18, +er!e 199,, reAuesting Congress of
the 'hilippines to amend certain provisions of 0.". 7227, wherein it reasserted its
position embodied in 'amba!an (apas!ahan )lg. *8 and )lg. 12, +er!e ng
taong 1992, 6"ttached and marked as "nnex 8"47 which tackled the same issues
raised b! the petitioners particularl! items a7, b7, c7, e7, and g7.
,. &tem d7 is alread! acted upon b! )C?" Chairman "rsenio )artolome &&& in its
letter to =is .xcellenc! 'resident :idel 9. 0amos, dated -a! 7, 199, 6"ttached
and marked as "nnex 8)87 with clarif!ing letter from )C?" 9ice5Chairman
0ogelio >. +ingson regarding lands on -aba!o and -inanga dated @une ,, 199,
that onl! lands inside the perimeter fence are envisioned to be part of +)-".
3. &tem f7, 'resident 0amos in his marginal note over the letter reAuest of
-orong, )ataan -a!or )ienvenido >. 9icedo, the +angguniang )a!an and
Congressman 'a!umo, when the 0esolution of Concurrence to +)-" was
submitted last "pril G, 199,, order the priorit! implementation of completion of
-orong5?inalupihan 6Tasik50oad7 'ro%ect, including the -orong5'oblacion5
-aba!o 0oad to ?'D=. 6"ttached and marked as "nnex 8C87.
)ased on the foregoing facts, the +angguniang )a!an of -orong had
accommodated the clamor of the petitioners in accordance with its limited powers
over the issues. =owever, the +angguniang )a!an of -orong cannot afford to
wait for amendments b! Congress of 0.". 7227 that will perhaps drag for several
months or !ears, thereb! dela!ing the development of -orong, )ataan.
=enceforth, we respectfull! reiterate our reAuest to den! the petition for a local
initiative andCor referendum because the exercise will %ust promote divisiveness,
counter productive and futilit!.
Thank !ou and more power.
9er! trul! !ours,
6+<?.7 .?&>).0T -. ?. >.1
-un. 9ice -a!orC'residing fficer
&n its session of @ul! G, 199,, the C-.>.C en banc resolved to den! the
petition for local initiative on the ground that its sub%ect is 8merel! a
resolution 6pamba!ang kapas!ahan7 and not an ordinance.8
'
n @ul! 1,,
199,, the C-.>.C en banc further resolved to direct 'rovincial .lection
+upervisor, "tt!. )en%amin 1. Casiano, to hold action on the
authentication of signatures being gathered b! petitioners.
(
These C-.>.C resolutions are sought to be set aside in the petition at bench.
The petition makes the following submissions4
H. This is a petition for certiorari and mandamus.
H.*1 :or certiorari, conformabl! to +ec. 7, "rt. &I of the Constitution, to set aside
Comelec 0esolution 1os. 9,51G7G and 9,51G2, 6"nnexes 8.8 and 8=87 insofar as
it disallowed the initiation of a local initiative to annul '"-)"E"1<
("'"+E"="1 )><. 1*, +.0E. 199, including the gathering and authentication
of the reAuired number of signatures in support thereof.
H.*1.1 "s an administrative agenc!, respondent Comelec is
bound to observe due process in the conduct of its proceedings.
=ere, the sub%ect resolutions, "nnexes 8.8 and 8=8, were issued
ex parte and without affording petitioners and the other
proponents of the initiative the opportunit! to be heard thereon.
-ore importantl!, these resolutions andCor directives were issued
with grave abuse of discretion. " +angguniang )a!an resolution
being an act of the aforementioned local legislative assembl! is
undoubtedl! a proper sub%ect of initiative. 6+ec. ,2, "rt. 9&,
Constitution7
H.*2 :or mandamus, pursuant to +ec. ,, 0ule GH, 0ules of Court, to command
the respondent Comelec to schedule forthwith the continuation of the signing of
the petition, and should the reAuired number of signatures be obtained, set a
date for the initiative within fort!5five 63H7 da!s thereof.
H.*2.1 0espondent Comelec$s authorit! in the matter of local
initiative is merel! ministerial. &t is dut!5bound to supervise the
gathering of signatures in support of the petition and to set the
date of the initiative once the reAuired number of signatures are
obtained.
&f the reAuired number of signatures is obtained,
the Comelec shall then set a date for the
initiative during which the proposition shall be
submitted to the registered voters in the local
government unit concerned for their approval
within sixt! 6G*7 da!s from the date of
certification b! the Comelec, as provided in
subsection 6g7 hereof, in case of provinces and
cities, fort!5five 63H7 da!s in case of
municipalities, and thirt! 6,*7 da!s in case of
baranga!s. The initiative shall then be held on
the date set, after which the results thereof shall
be certified and proclaimed b! the Comelec.
6+ec. 22, par. 6h7 0.". 71G*.
0espondent C-.>.C opposed the petition. Through the +olicitor
<eneral, it contends that under the >ocal <overnment Code of 1991, a
resolution cannot be the sub%ect of a local initiative. The same stance is
assumed b! the respondent +angguniang )a!an of -orong.
)
De grant the petition.
The case at bench is of transcendental significance because it involves an issue
of first impression ; delineating the extent of the all important original power of
the people to legislate. :ather )ernas explains that 8in republican s!stems, there
are generall! two kinds of legislative power, original and derivative. riginal
legislative power is possessed b! the sovereign people. ?erivative legislative
power is that which has been delegated b! the sovereign people to legislative
bodies and is subordinate to the original power of the people.8
9
ur constitutional od!sse! shows that up until 1987, our people have not directl!
exercised legislative power, both the constituent power to amend or revise the
Constitution or the power to enact ordinar! laws. +ection 1, "rticle 9& of the 19,H
Constitution delegated legislative power to Congress, thus 8the legislative power
shall be vested in a Congress of the 'hilippines, which shall consist of a +enate
and a =ouse of 0epresentatives.8 +imilarl!, section 1, "rticle 9&&& of the 197,
Constitution, as amended, provided that 8the >egislative power shall be vested in
a )atasang 'ambansa.8
10
&mplicit in the set up was the trust of the people in Congress to enact laws for
their benefit. +o total was their trust that the people did not reserve for
themselves the same power to make or repeal laws. The omission was to prove
unfortunate. &n the 7*$s and until the .?+" revolution, the legislature failed the
expectations of the people especiall! when former 'resident -arcos wielded
lawmaking powers under "mendment 1o. G of the 197, Constitution. >aws which
could have bridled the nation$s downslide from democrac! to authoritarianism to
anarch! never saw the light of da!.
&n :ebruar! 198G, the people took a direct hand in the determination of their
destin!. The! toppled down the government of former 'resident -arcos in a
historic bloodless revolution. The Constitution was rewritten to embod! the
lessons of their sad experience. ne of the lessons is the foll! of completel!
surrendering the power to make laws to the legislature. The result, in the
perceptive words of :ather )ernas, is that the new Constitution became 8less
trusting of public officials than the "merican Constitution.8
11
:or the first time in 1987, the s!stem of people$s initiative was thus installed in
our fundamental law. To be sure, it was a late awakening. "s earl! as 1898, the
state of +outh ?akota has adopted initiative and referendum in its constitution
12

and man! states have followed suit.
13
&n an! event, the framers of our 1987
Constitution reali#ed the value of initiative and referendum as an ultimate
weapon of the people to negate government malfeasance and misfeasance and
the! put in place an overarching s!stem. Thus, thru an initiative, the people were
given the power to amend the Constitution itself. +ec. 2 of "rt. I9&& provides4
8"mendments to this Constitution ma! likewise be directl! proposed b! the
people through initiative upon a petition of at least twelve per centum of the total
number of registered voters, of which ever! legislative district must be
represented b! at least three per centum of the registered voters therein.8
>ikewise, thru an initiative, the people were also endowed with the power to
enact or re%ect any act or law b! congress or local legislative bod!. +ections 1
and ,2 of "rticle 9& provide4
Sec. 1. The legislative power shall be vested in the Congress of the 'hilippines
which shall consist of a +enate and a =ouse of 0epresentatives except to the
extent reserved to the people by the provisions on initiative and referendum.
xxx xxx xxx
Sec. ,2. The Congress shall, as earl! as possible, provide for a s!stem of
initiative and referendum, and the exceptions therefrom, whereb! the people can
directl! propose and enact laws or approve or re%ect any act or law or part thereof
passed b! the Congress or local legislative bod! after the registration of a
petition therefor signed b! at least ten per centum of the total number of
registered voters, of which ever! legislative district must be represented b! at
least three per centum of the registered voters thereto.
The C-.>.C was also empowered to enforce and administer all laws
and regulations relative to the conduct of an initiative and referendum.
14

Dorthwhile noting is the scope of coverage of an initiative or referendum
as delineated b! section ,2 "rt. 9& of the Constitution, supra an! act or
law passed b! Congress or local legislative bod!.
&n due time, Congress respondent to the mandate of the Constitution. &t enacted
laws to put into operation the constitutionali#ed concept of initiative and
referendum. n "ugust 3, 1989, it approved 0epublic "ct 1o. G7,H entitled 8"n
"ct 'roviding for a +!stem of &nitiative and 0eferendum and "ppropriating :unds
Therefor.8 >iberall! borrowed from "merican laws,
1&
0.". 1o. G7,H, among
others, spelled out the reAuirements
1'
for the exercise of the power of initiative
and referendum, the conduct of national initiative and referendumF
1(
procedure of
local initiative and referendumF
1)
and their limitations.
19
Then came 0epublic "ct
1o. 71G*, otherwise known as The >ocal <overnment Code of 1991. Chapter 2,
Title I&, )ook & of the Code governed the conduct of local initiative and
referendum.
&n light of this legal backdrop, the essential issue to be resolved in the case at
bench is whether 'amba!ang (apas!ahan )lg. 1*, ser!e 199, of the
+angguniang )a!an of -orong, )ataan is the proper sub%ect of an initiative.
0espondents take the negative stance as the! contend that under the >ocal
<overnment Code of 1991 onl! an ordinance can be the sub%ect of initiative.
The! rel! on section 12*, Chapter 2, Title I&, )ook & of the >ocal <overnment
Code of 1991 which provides4 8>ocal &nitiative ?efined. ; >ocal initiative is the
legal process whereb! the registered voters of a local government unit ma!
directl! propose, enact, or amend an! ordinance.8
De re%ect respondents$ narrow and literal reading of the above provision for it will
collide with the Constitution and will subvert the intent of the lawmakers in
enacting the provisions of the >ocal <overnment Code of 1991 on initiative and
referendum.
The Constitution clearl! includes not onl! ordinances but resolutions as
appropriate sub%ects of a local initiative. +ection ,2 of "rticle 9& provides in
luminous language4 8The Congress shall, as earl! as possible, provide for a
s!stem of initiative and referendum, and the exceptions therefrom, whereb! the
people can directl! propose and enact laws or approve or re%ect any act or law or
part thereof passed b! the Congress, or local legislative bod! . . .8 "n act
includes a resolution. )lack
20
defines an act as 8an expression of will or purpose .
. . it ma! denote something done . . . as a legislature, including not merel!
ph!sical acts, but also decrees, edicts, laws, %udgments, resolves, awards, and
determinations . . . .8 &t is basic that a law should be construed in harmon! with
and not in violation of the constitution.
21
&n line with this postulate, we held in &n
0e <uarina that 8if there is doubt or uncertaint! as to the meaning of the
legislative, if the words or provisions are obscure, or if the enactment is fairl!
susceptible of two or more constructions, that interpretation will be adopted which
will avoid the effect of unconstitutionalit!, even though it ma! be necessar!, for
this purpose, to disregard the more usual or apparent import of the language
used.8
22
The constitutional command to include acts 6i.e., resolutions7 as appropriate
sub%ects of initiative was implemented b! Congress when it enacted 0epublic "ct
1o. G7,H entitled 8"n "ct 'roviding for a +!stem of &nitiative and 0eferendum
and "ppropriating :unds Therefor.8 Thus, its section ,6a7 expressl! includes
resolutions as sub%ects of initiatives on local legislations, viz4
+ec. ,. ?efinition of Terms ; :or purposes of this "ct, the following terms shall
meanF
6a7 8&nitiative8 is the power of the people to propose amendments
to the Constitution or to propose and enact legislations through
an election called for the purpose.
There are three 6,7 s!stems of initiative, namel!4
a.1. &nitiative on the Constitution which refers to a petition
proposing amendments to the Constitution.
a.2. &nitiative on statutes which refers to a petition proposing to
enact a national legislationF and
a.,. &nitiative on local legislation which refers to a petition
proposing to enact a regional, provincial, cit!, municipal, or
baranga! law, resolution, or ordinance. 6.mphasis ours7
+imilarl!, its section 1G states4 8>imitations Bpon >ocal >egislative )odies
; "n! proposition on ordinance or resolution approved through the
s!stem of initiative and referendum as herein provided shall not be
repealed, modified or amended, b! the local legislative bod! concerned
within six 6G7 months from the date therefrom . . . .8 n @anuar! 1G, 1991,
the C-.>.C also promulgated its 0esolution 1o. 2,** entitled 8&n 0e
0ules and 0egulations <overning the Conduct of &nitiative on the
Constitution, and &nitiative and 0eferendum, on 1ational and >ocal >aws.8
&t likewise recogni#ed resolutions as proper sub%ects of initiatives. +ection
H, "rticle & of its 0ules states4 8+cope of power of initiative ; The power of
initiative ma! be exercised to amend the Constitution, or to enact a
national legislation, a regional, provincial, cit!, municipal or baranga! law,
resolution or ordinance.8
There can hardl! be an! doubt that when Congress enacted 0epublic "ct 1o.
G7,H it intend resolutions to be proper sub%ects of local initiatives. The debates
confirm this intent. De Auote some of the interpellations when the Conference
Committee 0eport on the disagreeing provisions between +enate )ill 1o. 17 and
=ouse )ill 1o. 21H*H were being considered in the =ouse of 0epresentatives,
viz4
T=. +'."(.0 '0 T.-'0.. The <entleman from Camarines +ur is
recogni#ed.
-0. 0C. n the Conference Committee 0eport on the disagreeing provisions
between +enate )ill 1o. 17 and the consolidated =ouse )ill 1o. 21H*H which
refers to the s!stem providing for the initiative ad referendum, fundamentall!, -r.
+peaker, we consolidated the +enate and the =ouse versions, so both versions
are totall! intact in the bill. The +enators ironicall! provided for local initiative and
referendum and the =ouse of 0epresentatives correctl! provided for initiative and
referendum on the Constitution and on national legislation.
& move that we approve the consolidated bill.
-0. ">)"1. -r. +peaker.
T=. +'."(.0 '0 T.-'0.. Dhat is the pleasure of the -inorit! :loor
>eaderJ
-0. ">)"1. Dill the distinguished sponsor answer %ust a few AuestionsJ
T=. +'."(.0 '0 T.-'0.. Dhat does the sponsor sa!J
-0. 0C. Dillingl!, -r. +peaker.
T=. +'."(.0 '0 T.-'0.. The <entleman will please proceed.
-0. ">)"1. & heard the sponsor sa! that the onl! difference in the two bills
was that in the +enate version there was a provision for local initiative and
referendum, whereas the =ouse version has none.
-0. 0C. &n fact, the +enate version provided purel! for local initiative and
referendum, whereas in the =ouse version, we provided purel! for national and
constitutional legislation.
-0. ">)"1. &s it our understanding, therefore, that the two provisions were
incorporated.J
-0. 0C. Ees, -r. +peaker.
-0. ">)"1. +o that we will now have a complete initiative and referendum
both in the constitutional amendment and national legislation.
-0. 0C. That is correct.
-0. ">)"1. "nd provincial as well as municipal resolutionsJ
-0. 0C. ?own to baranga!, -r. +peaker.
-0. ">)"1. "nd this initiative and referendum is in consonance with the
provision of the Constitution whereb! it mandates this Congress to enact the
enabling law, so that we shall have a s!stem which can be done ever! five !ears.
&s it five !ears in the provision of the ConstitutionJ
-0. 0C. That is correct, -r. +peaker. :or constitutional amendments to the
1987 Constitution, it is ever! five !ears.
23
Contrar! to the submission of the respondents, the subseAuent enactment of the
local <overnment Code of 1991 which also dealt with local initiative did not
change the scope of its coverage. -ore specificall!, the Code did not limit the
coverage of local initiatives to ordinances alone. +ection 12*, Chapter 2, Title &I
)ook & of the Code cited b! respondents merel! defines the concept of local
initiative as the legal process whereb! the registered voters of a local
government unit ma! directl! propose, enact, or amend an! ordinance. &t does
not, however, deal with the sub%ects or matters that can be taken up in a local
initiative. &t is section 123 of the same Code which does. &t states4
+ec. 123. >imitations on >ocal &nitiatives. 6a7 The power of local initiative shall not
be exercised more than once a !ear.
6b7 nitiative shall extend only to sub!ects or matters which are within the le"al
powers of the San""unians to enact.
xxx xxx xxx
This provision clearl! does not limit the application of local initiatives to
ordinances, but to all 8sub%ects or matters which are within the legal
powers of the +anggunians to enact,8 which undoubtedl! includes
resolutions. This interpretation is supported b! +ection 12H of the same
Code which provides4 8>imitations upon +anggunians. ; "n! proposition
or ordinance approved through the s!stem of initiative and referendum as
herein provided shall not be repealed, modified or amended b! the
sanggunian concerned within six 6G7 months from the date of the approval
thereof . . . .8 Certainl!, the inclusion of the word proposition is inconsistent
with respondents$ thesis that onl! ordinances can be the sub%ect of local
initiatives. The principal author of the >ocal <overnment Code of 1991,
former +enator "Auilino 'imentel, espouses the same view. &n his
commentaries on the said law, he wrote, viz4
24
3. +ub%ect -atter f &nitiative. "ll sorts of measures ma! be the sub%ect of direct
initiative for as long as these are within the competence of the +anggunian to
enact. &n California, for example, direct initiatives were proposed to enact a
fishing control bill, to regulate the practice of chiropractors, to lev! a special tax to
secure a new librar!, to grant a franchise to a railroad compan!, and to prevent
discrimination in the sale of housing and similar bills.
?irect initiative on the local lever ma!, therefore, cover all kinds of measures
provided that these are within the power of the local +anggunians to enact,
sub%ect of course to the other reAuisites enumerated in the +ection.
H. :orm of &nitiative. 0egarding the form of the measure, the section speaks onl!
of 8ordinance,8 although the measure ma! be contained in a resolution. &f the
registered voters can propose ordinances, wh! are the! not allowed to propose
resolutions tooJ -oreover, the wording of +ec. 12H, below, which deals not onl!
with ordinances but with 8an! proposition8 implies the inclusion of resolutions.
The discussion hereunder will also show support for the conclusion that
resolutions ma! indeed be the sub%ect of local initiative.
De note that respondents do not give an! reason wh! resolutions should not be
the sub%ect of a local initiative. &n truth, the reason lies in the well known
distinction between a resolution and an ordinance ; i.e., that a resolution is used
whenever the legislature wishes to express an opinion which is to have onl! a
temporar! effect while an ordinance is intended to permanentl! direct and control
matters appl!ing to persons or things in general.
2&
Thus, resolutions are not
normall! sub%ect to referendum for it ma! destro! the efficienc! necessar! to the
successful administration of the business affairs of a cit!.
2'
&n the case at bench, however, it can not be argued that the sub%ect matter of the
resolution of the municipalit! of -orong merel! temporaril! affects the people of
-orong for it directs a permanent rule of conduct or government. The inclusion of
-orong as part of the +ubic +pecial .conomic /one has far reaching
implications in the governance of its people. This is apparent from a reading of
section 12 of 0epublic "ct 1o. 7227 entitled 8"n "ct "ccelerating the Conversion
of -ilitar! 0eservations &nto ther 'roductive Bses, Creating the )ases
Conversion and ?evelopment "uthorit! :or This 'urpose, 'roviding :unds
Therefor and :or ther 'urposes.8 to wit4
+ec. 12. +ubic Special #conomic $one. ; +ub%ect to the concurrence b!
resolution of the san""unian" panlun"sod of the Cit! of longapo and the
san""unian" bayan of the -unicipalities of +ubic, -orong and =ermosa, there is
hereb! created a +pecial .conomic and :ree5port /one consisting of the Cit! of
longapo and the -unicipalit! of +ubic, 'rovince of /ambales, the lands
occupied b! the +ubic 1aval )ase and its contiguous extensions as embraced,
covered, and defined b! the 1937 -ilitar! )ases "greement between the
'hilippines and the Bnited +tates of "merica as amended, and within the
territorial %urisdiction of the -unicipalities of -orong and =ermosa, 'rovince of
)ataan, hereinafter referred to a as the +ubic +pecial .conomic /one whose
metes and bounds shall be delineated in a proclamation to be issued b! the
'resident of the 'hilippines. Dithin thirt! 6,*7 da!s after the approval of this "ct,
each local government unit shall submit its resolution of concurrence to %oin the
+ubic +pecial .conomic /one to the ffice of the 'resident. Thereafter, the
'resident of the 'hilippines shall issue a proclamation defining the metes and
bounds of the #one as provided herein.
The abovementioned #one shall be sub%ect to the following policies4
6a7 Dithin the framework and sub%ect to the mandate and limitations of the
Constitution and the pertinent provisions of the >ocal <overnment Code, the
+ubic +pecial .conomic /one shall be developed into a self5sustaining,
industrial, commercial, financial and investment center to generate emplo!ment
opportunities in and around the #one and to attract and promote productive
foreign investmentsF
6b7 The +ubic +pecial .conomic /one shall be operated and managed as a
separate customs territor! ensuring free flow or movement of goods and capital
within, into a exported out of the +ubic +pecial .conomic /one, as well as
provide incentives such as tax and dut!5free importations of raw material, capital
and eAuipment. =owever, exportations or removal of goods from the territor! of
the +ubic +pecial .conomic /one to the other parts of the 'hilippine territor!
shall be sub%ect to customs duties and taxes under the Customs and Tariff Code
and other relevant tax laws of the 'hilippines4
6c7 The provision of existing laws, rules and regulations to the contrar!
notwithstanding, no taxes, local and national, shall be imposed within the +ubic
+pecial .conomic /one. &n lieu of pa!ing taxes, three percent 6,K7 of the of the
gross income earned b! all businesses and enterprises within the +ubic +pecial
.conomic /one shall be remitted to the 1ational <overnment one percent 61K7
each to the local government units affected b! the declaration of the #one in
proportion to their population area, and other factors. &n addition, there is hereb!
established a development fund of one percent 61K7 of the gross income earned
b! all businesses and enterprises within the +ubic +pecial .conomic /one to be
utili#ed for the development of municipalities outside the Cit! of longapo and
the -unicipalit! of +ubic, and other municipalities contiguous to the base areas.
&n case of conflict between national and local laws with respect to tax exemption
privileges in the +ubic +pecial .conomic /one, the same shall be resolved in
favor of the latterF
6d7 1o exchange control polic! shall be applied and free markets for foreign
exchange, gold, securities and futures shall be allowed and maintained in the
+ubic +pecial .conomic /oneF
6e7 The Central )ank, through the -onetar! )oard, shall supervise and regulate
the operations of banks and other financial institutions within the +ubic +pecial
.conomic /oneF
6f7 )anking and finance shall be liberali#ed with the establishment of foreign
currenc! depositor! units of local commercial banks and offshore banking units
of foreign banks with minimum Central )ank regulationF
6g7 "n! investor within the +ubic +pecial .conomic /one whose continuing
investment shall not be less than Two hundred fift! thousand dollars 6L2H*,***7,
hisCher spouse and dependent children under twent!5one 6217 !ears of age, shall
be granted permanent resident status within the +ubic +pecial .conomic /one.
The! shall have freedom of ingress and egress to and from the +ubic +pecial
.conomic /one without an! need of special authori#ation from the )ureau of
&mmigration and ?eportation. The +ubic )a! -etropolitan "uthorit! referred to in
+ection 1, of this "ct ma! also issue working visas renewable ever! two 627
!ears to foreign executives and other aliens possessing highl!5technical skills
which no :ilipino within the +ubic +pecial .conomic /one possesses, as certified
b! the ?epartment of >abor and .mplo!ment. The names of aliens granted
permanent residence status and working visas b! the +ubic )a! -etropolitan
"uthorit! shall be reported to the )ureau of &mmigration and ?eportation within
thirt! 6,*7 da!s after issuance thereof.
6h7 The defense of the #one and the securit! of its perimeters shall be the
responsibilit! of the 1ational <overnment in coordination with the +ubic )a!
-etropolitan "uthorit!. The +ubic )a! -etropolitan "uthorit! shall provide and
establish its own internal securit! and fire fighting forcesF and
6i7 .xcept as herein provided, the local government units comprising the +ubic
+pecial .conomic /one shall retain their basic autonom! and identit!. The cities
shall be governed b! their respective charters and the municipalities shall
operate and function in accordance with 0epublic "ct 1o. 71G*, otherwise known
as the >ocal <overnment Code of 1991.
&n relation thereto, section 13 of the same law provides4
+ec. 13. 0elationship with the Conversion "uthorit! and the >ocal <overnment
Bnits. ;
6a7 The provisions of existing laws, rules and regulations to the contrar!
notwithstanding, the +ubic "uthorit! shall exercise administrative powers, rule5
making and disbursement of funds over the +ubic +pecial .conomic /one in
conformit! with the oversight function of the Conversion "uthorit!.
6b7 &n case of conflict between the +ubic "uthorit! and the local government units
concerned on matters affecting the +ubic +pecial .conomic #one other than
defense and securit!, the decision of the +ubic "uthorit! shall prevail.
Considering the lasting changes that will be wrought in the social, political,
and economic existence of the people of -orong b! the inclusion of their
municipalit! in the +ubic +pecial .conomic /one, it is but logical to hear
their voice on the matter via an initiative. &t is not material that the decision
of the municipalit! of -orong for the inclusion came in the form of a
resolution for what matters is its enduring effect on the welfare of the
people of -orong.
:inall!, it cannot be gained that petitioners were denied due process. The! were
not furnished a cop! of the letter5petition of 9ice -a!or .dilberto -. de >eon to
the respondent C-.>.C pra!ing for denial of their petition for a local initiative
on 'amba!ang (apas!ahan )lg. 1*, +er!e 199,. Dorse, respondent C-.>.C
granted the petition without affording petitioners an! fair opportunit! to oppose it.
This procedural lapse is fatal for at stake is not an ordinar! right but the sanctit!
of the sovereignt! of the people, their original power to legislate through the
process of initiative. urs is the dut! to listen and the obligation to obe! the voice
of the people. &t could well be the onl! force that could foil the mushrooming
abuses in government.
&1 9&.D D=.0.:, the petition is <0"1T.? and C-.>.C 0esolution 9,5
1G2, dated @ul! G, 199, and 0esolution 9,51G7G dated @ul! 1,, 199, are
"11B>>.? and +.T "+&?.. 1o costs.
+ 0?.0.?.