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Medidas estructurales (encauzamientos, motas, diques, etc.) que implican

3 Medidas de protección frente a inundaciones

3.6 Medidas estructurales (encauzamientos, motas, diques, etc.) que implican

Patrimony

A. REGALIAN DOCTRINE

All lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces of potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural resources are owned by the State. With the exception of agricultural lands, all other

44 natural resources shall not be alienated. [Art.

XII, Sec. 2]

Doctrine of Native Title

Ownership of native land is already vested on natives even if they do not have formal titles.[Cariño v. Insular Govt (1909)]

B. NATIONALIST AND CITIZENSHIP REQUIREMENT PROVISIONS

Citizenship Requirements

Filipino Citizens, or 100%

Filipino Corporations

Filipino Citizens, or 60-40 Filipino Corporations

Filipino Citizens, or 70-30 Filipino Corporations

Use and enjoyment of marine wealth, exclusive to Filipino citizens [Art. XII, Sec. 2, par. 2]

Co-production, Joint venture, and Production sharing agreements over

natural resources [Art. XII, Sec. 2(1)]

Agreements shall not exceed a period of 25 years renewable for another 25 years.

Engagement in advertising Industry

[Art. XVI, Sec. 11]

Rules on agricultural lands (Art. XII, Sec. 3)

(1) Citizens may lease only< 500 ha.

(2) Citizens mayacquireby purchase, homestead or grant only < 12 ha.

Educational Institutions [Art. XIV, Sec. 4(2)]

Congress may increase Filipino equity participation.

Practice of professions, save in cases provided by law [Art. XII, Sec. 14(2)]

Areas of Investment as Congress may prescribe (Congress may prescribe a higher percentage) [Art. XII, Sec. 10]

Small-scale utilization of natural resources, as may be provided by law[Art. XII, Sec. 2(3)]

Operation of public utilities[Art.

XII, Sec. 11]

Cannot be for longer period than 50 years

Executive and managing officers must be Filipino

What “capital” is covered– The 60%

requirement applies to both the voting control and the beneficial ownership of the public utility.

Therefore, it shall apply uniformly, separately, and across the board to all classes of shares, regardless of nomenclature or category, comprising the capital of the corporation. (e.g.

60% of common stock, 60% of preferred voting stock, and 60% of preferred non-voting stock.) [Gamboa v. Teves (2012)]

B.1. FILIPINO FIRST

In the grant of rights, privileges, and concessions covering the national economy and

45 patrimony, the State shall give preference to qualified Filipinos. [Art. XII, Sec. 10]

The term “patrimony” pertains to heritage, and given the history of the Manila Hotel, it has become a part of our national economy and patrimony. The Filipino First policy provision of the Const. is per se enforceable, and requires no further guidelines or implementing rules or laws for its operation. [Manila Prince Hotel v. GSIS, (1990)]

C. EXPLORATION, DEVELOPMENT AND UTILIZATION OF NATURAL RESOURCES

The State is accorded the primary power and responsibility in the exploration, development and utilization thereof. As such it may undertake these activities through four modes:

(1) The State may directly undertake such activities;

(2) The State may enter into co-production, joint venture or production-sharing agreements with Filipino citizens or qualified corporations;

(3) Congress may, by law, allow small-scale utilization of natural resources by Filipino citizens; or

(4) For the large-scale exploration, development and utilization of minerals, petroleum and other mineral oils, the President may enter into agreements with foreign-owned corporations involving technical or financial assistance. [La Bugal-B’Laan v. Ramos, [Jan. 2004)]

Service Contracts not prohibited. Even supposing FTAAs are service contracts, the latter are not prohibited under the Constitution.

[La Bugal-B’laan v. Ramos, (Dec. 2004)]

The following have been held valid:

(1) Financial and Technical Assistance Agreements (FTAA) – not prohibited agreement in the Const.

(2) Philippine Mining Law (RA 7942)

(3) RA 7942 Implementing Rules and Regulations, insofar as they relate to financial and technical agreements [La Bugal-B’laan v. Ramos (Dec. 2004)]

The Const. should be construed to grant the President and Congress sufficient discretion and reasonable leeway to enable them to attract foreign investments and expertise. [La Bugal-B’laan Assn. v. Ramos, id.]

D. FRANCHISES, AUTHORITY AND CERTIFICATES FOR PUBLIC UTILITIES D.1. NATURE OF THE FRANCHISE:

(1) It is a privilege, not a right (2) Shall NOT be exclusive;

(3) Shall NOT be for a period of more than 50 years;

(4) Shall be subject to amendment, alteration or repeal by Congress. [Id.]

Jurisprudence:

(1) Congress does not have the exclusive power to issue franchises. Administrative bodies (i.e. LTFRB, Energy Regulatory Board) may be empowered by law to do so. [Albano v.

Reyes (1989)]

(2) What constitutes a public utility is not the ownership but the use to the public. The Const. does not require a franchise before one can own the facilities needed to operate a public utility so long as it does not operate them to serve the public. [Tatad v. Garcia (1995)]

E. ACQUISITION, OWNERSHIP AND TRANSFER OF PUBLIC AND PRIVATE LANDS

Lands of the Public Domain are classified into:

(1) Agricultural Lands (2) Forest or Timber Lands (3) Mineral Lands

46 (4) National Park [Art. XII, Sec. 3]

Note: The classification of public lands is a function of the executive branch. Their decisions as to questions of fact, is conclusive upon the courts. [Republic v. Imperial (1999)].To prove that the land subject of an application for registration is alienable, an applicant must conclusively establish the existence of a positive act of the government. [Republic v. Candymaker, Inc. (2006)]

Alienable lands of the public domain shall be limited to agricultural lands. [Art. XII, Sec. 3]

Private corporations or associations may not hold such alienable lands of public domain except (1) by lease, (2) for a period not exceeding 25 years, and (3) not to exceed 1000 hectares in area.

Citizens of the Philippines may (1) lease not more than 500 ha., or (2) acquire not more than 12 hectares thereof by purchase, homestead, or grant. [Art. XII, Sec. 3]

Private Lands

General Rule: No private lands shall be transferred or conveyed except to individuals, corporations, or associations qualified to acquire or hold lands of the public domain. [Art.

XII, Sec. 7]

Exceptions:

(1) Hereditary succession (Art. XII, Sec. 7) (2) A natural-born citizen of the Philippines

who has lost his Philippine citizenship may be a transferee of private lands, subject to limitations by law. (Art. XII, Sec. 8)

Consequence of sale to non-citizens:

Any sale or transfer in violation of the prohibition is null and void. [Ong Ching Po. v. CA (1994)]. HOWEVER, land sold to an alien which was later transferred to a Filipino citizen OR

when the alien later becomes a Filipino citizen can no longer be recovered by the vendor, because there is no longer any public policy involved. [Republic v. IAC (1989)]

F. PRACTICE OF PROFESSIONS

The practice of all profession in the Philippines shall be limited to Filipino citizens, save in the case prescribed by law. [Art. XII, Sec. 14]

G. ORGANIZATION AND REGULATION OF CORPORATIONS, PRIVATE AND PUBLIC

Stewardship Concept

The use of property bears a social function, and all economic agents shall contribute to the common good.

Individuals and private groups, including corporations, cooperatives, and similar collective organizations, shall have the right to own, establish, and operate economic enterprises, subject to the duty of the State to promote distributive justice and to intervene when the common good so demands. [Art. XII, Sec. 6]

The State shall apply the principles of agrarian reform or stewardship, whenever applicable in accordance with law, in the disposition or utilization of other natural resources, including lands of the public domain under lease or concession suitable to agriculture, subject to prior rights, homestead rights of small settlers, and the rights of indigenous communities to their ancestral lands. [Id., Sec. 6]

H. MONOPOLIES, RESTRAINT OF TRADE AND UNFAIR COMPETITION H.1. MONOPOLIES

The State shall regulate or prohibit monopolies when the public interest so requires. No combinations in restraint of trade or unfair competition shall be allowed. [Art. XII, Sec. 19]

47 Although the Const. enshrines free enterprise as a policy, it reserves to the Govt. the power to intervene whenever necessary for the promotion of the general welfare. [Philippine Coconut Dessicators v. PCA (1998)]

Monopolies are not per se prohibited by the Constitution but a determination must first be made as to whether public interest requires a monopoly. As monopolies are subject to abuses that can inflict severe prejudice to the public, they are subject to a higher level of State regulation than an ordinary business undertaking. [Agan, Jr. v. PIATCO (2003)]

H.2. CENTRAL MONETARY AUTHORITY [ART. XII, SEC. 20]

Functions:

(1) Provide policy directions in the areas of money, banking, and credit;

(2) Supervise the operations of banks;

(3) Exercise such regulatory powers as may be provided by law over the operations of finance companies and other institutions performing similar functions

Currently, the central monetary authority is the Bangko Sentral ng Pilipinas.