Facts:

Act No. 2581, otherwise known as the Blue Sky Law, requires every person, partnership or corporation to obtain a
certiicate or per!it ro! the "nsular #reasurer beore oerin$ or sale to the public speculative securities. #he "nsular
#reasurer, un%er the law, is e!powere% to cancel or revoke a certiicate or per!it previously issue% by hi!.
Appellants & an% ' were char$e% with havin$ violate% the Blue Sky Law. (onvicte% un%er the penal provisions o the
sai% law, & appeale% to the Supre!e (ourt ar$uin$ that the Act i)es no stan%ar% or rule which can $ui%e the "nsular
#reasurer in %eter!inin$ the cases on which a certiicate or per!it ou$ht to issue, thereby !akin$ his opinion, the sole
criterion on the !atter o its issuance, with the result that le$islative power is bein$ un%uly %ele$ate% to hi!.
Issue:
*hether or not Act No. 2581 urnish a suicient stan%ar% or the "nsular #reasurer in reachin$ a %ecision to ollow
re$ar%in$ the issuance or cancellation o a certiicate or per!it.
Held:
+es, Act No. 2581 urnishe% suicient stan%ar%. #he certiicate or per!it to be issue% un%er the Act !ust recite that
the person, partnership, association or corporation applyin$ thereor has co!plie% with the provisions o this Act, an% this
require!ent, construe% in relation to the other provision o the law, !eans that a certiicate or per!it shall be issue% by the
"nsular #reasurer when the provisions o Act No. 2581 have been co!plie% with.
,pon the other han%, the authority o the "nsular #reasurer to cancel a certiicate or per!it is e)pressly con%itione%
upon a in%in$ that such cancellation is in the public interest. "n view o the intention an% purpose o Act No. 2581 to protect
the public a$ainst sche!es which have no !ore basis than so !any eet o blue sky an% a$ainst the sale o stock in ly-by-
ni$ht concerns, visionary oil wells, %istant $ol% !ines an% other rau%ulent e)ploitations - public interest in this case is
suicient stan%ar% pertainin$ to the issuance or cancellation o certiicates or per!its. An% the ter! public interest is not
without a settle% !eanin$.
Facts:
#he petitions challen$e the constitutionality o &epublic Act No. 818. entitle%, /An Act 0ere$ulatin$ the 0ownstrea!
'il "n%ustry an% 1or 'ther 2urposes./ &.A. No. 818. en%s twenty-si) 3245 years o $overn!ent re$ulation o the
%ownstrea! oil in%ustry. ,n%er the %ere$ulate% environ!ent, /any person or entity !ay i!port or purchase any quantity o
cru%e oil an% petroleu! pro%ucts ro! a orei$n or %o!estic source, lease or own an% operate reineries an% other
%ownstrea! oil acilities an% !arket such cru%e oil or use the sa!e or his own require!ent,/ sub6ect only to !onitorin$ by
the 0epart!ent o 7ner$y.
#he %ere$ulation process has two 325 phases8 the transition phase an% the ull %ere$ulation phase. #he irst phase o
%ere$ulation co!!ence% on Au$ust 12, 1994. 'n 1ebruary 8, 199:, the 2resi%ent i!ple!ente% the ull %ere$ulation o the
0ownstrea! 'il "n%ustry throu$h 7.'. No. ;92. the petitions assail the constitutionality o various provisions o &.A. No.
818. an% 7.'. No. ;92.
Section 15 o &.A. No. 818. provi%es8
/Section 15. "!ple!entation o ull %ere$ulation. - 2ursuant to Section 53e5 o &.A. No. :4;8, the 0'7 shall, upon
approval o the 2resi%ent, i!ple!ent the ull %ere$ulation o the %ownstrea! oil in%ustry not later than <arch 199:. As ar
as practicable, the 0'7 shall ti!e the ull %ere$ulation when the prices o cru%e oil an% petroleu! pro%ucts in the worl%
!arket are %eclinin$ an% when the e)chan$e rate o the peso in relation to the ,S %ollar is stable. ,pon the i!ple!entation
o the ull %ere$ulation as provi%e% herein, the transition phase is %ee!e% ter!inate% an% the ollowin$ laws are %ee!e%
repeale%8/
"n assailin$ Section 15 o &.A. No. 818. an% 7.'. No. ;92, petitioners oer the ollowin$ sub!issions8
1irst, Section 15 o &.A. No. 818. constitutes an un%ue %ele$ation o le$islative power to the 2resi%ent an% the
Secretary o 7ner$y because it %oes not provi%e a %eter!inate or %eter!inable stan%ar% to $ui%e the 7)ecutive Branch in
%eter!inin$ when to i!ple!ent the ull %ere$ulation o the %ownstrea! oil in%ustry. 2etitioners conten% that the law %oes
not %eine when it is practicable or the Secretary o 7ner$y to reco!!en% to the 2resi%ent the ull %ere$ulation o the
%ownstrea! oil in%ustry or when the presi%ent !ay consi%er it practicable to %eclare the ull %ere$ulation.
Also, the law %oes not provi%e any speciic stan%ar% to %eter!ine when the prices o cru%e oil in the worl% !arket are
consi%ere% to be %eclinin$ nor when the e)chan$e rate o the peso to the ,S %ollar is consi%ere% stable.
Secon%, petitioners aver that 7.'. No. ;92 i!ple!entin$ the ull %ere$ulation o the %ownstrea! oil in%ustry is arbitrary
an% unreasonable because it was enacte% %ue to the alle$e% %epletion o the '2S1 un% - a con%ition not oun% in &.A. No.
818..
2etitioners ur$e that the phrases /as as as practicable,/ /%ecline o cru%e oil prices in the worl% !arket/ an% /stability
o the peso e)chan$e rate to the ,S %ollar/ are a!bivalent, unclear an% in-concrete in !eanin$. #hey sub!it that they %o
not provi%e the /%eter!inate or %eter!inable stan%ar%s/ which can $ui%e the 2resi%ent in his %ecision to ully %ere$ulate the
%ownstrea! oil in%ustry. "n a%%ition, they conten% that 7.'. No. ;92 which a%vance% the %ate o ull %ere$ulation is voi% or
it ille$ally consi%ere% the %epletion o the '2S1 un% as actor.
Issue:
*hether or not Section 15 o &.A. No. 818. an% 7.'. No. ;92 are unconstitutional on the $roun% that they constitute
un%ue %ele$ation o le$islative power to the 2resi%ent an% the Secretary o 7ner$y.
Held:
2etitioners ur$e that the phrases /as ar as practicable,/ /%ecline o cru%e oil prices in the worl% !arket/ an% /stability
o the peso e)chan$e rate to the ,S %ollar/ are a!bivalent, unclear an% inconcrete in !eanin$. #hey sub!it that they %o
not provi%e the /%eter!inate or %eter!inable stan%ar%s/ which can $ui%e the 2resi%ent in his %ecision to ully %ere$ulate the
%ownstrea! oil in%ustry. "n a%%ition, they conten% that 7.'. No. ;92 which a%vance% the %ate o ull %ere$ulation is voi% or
it ille$ally consi%ere% the %epletion o the '2S1 un% as a actor.
#he power o (on$ress to %ele$ate the e)ecution o laws has lon$ been settle% by this (ourt. As early as 1914 in
(o!pania =eneral %e #abacos %e 1ilipinas vs. #he Boar% o 2ublic ,tility (o!!issioners, 21 this (ourt thru, <r. >ustice
<orelan%, hel% that /the true %istinction is between the %ele$ation o power to !ake the law, which necessarily involves a
%iscretion as to what it shall be, an% conerrin$ authority or %iscretion as to its e)ecution, to be e)ercise% un%er an% in
pursuance o the law. #he irst cannot be %one? to the latter no vali% ob6ection can be !a%e./ 'ver the years, as the le$al
en$ineerin$ o !en@s relationship beca!e !ore %iicult, (on$ress has to rely !ore on the practice o %ele$atin$ the
e)ecution o laws to the e)ecutive an% other a%!inistrative a$encies. #wo tests have been %evelope% to %eter!ine whether
the %ele$ation o the power to e)ecute laws %oes not involve the ab%ication o the power to !ake law itsel. *e %elineate%
the !etes an% boun%s o these tests in 7astern Shippin$ Lines, "nc. AS. 2'7A, 22 thus8
#here are two accepte% tests to %eter!ine whether or not there is a vali% %ele$ation o le$islative power, viB8 the
co!pleteness test an% the suicient stan%ar% test. ,n%er the irst test, the law !ust be co!plete in all its ter!s an%
con%itions when it leaves the le$islative such that when it reaches the %ele$ate the only thin$ he will have to %o is to enorce
it. ,n%er the suicient stan%ar% test, there !ust be a%equate $ui%elines or li!itations in the law to !ap out the boun%aries
o the %ele$ate@s authority an% prevent the %ele$ation ro! runnin$ riot. Both tests are inten%e% to prevent a total
transerence o le$islative authority to the %ele$ate, who is not allowe% to step into the shoes o the le$islature an% e)ercise
a power essentially le$islative.
#he vali%ity o %ele$atin$ le$islative power is now a quiet area in our constitutional lan%scape. As sa$ely observe%,
%ele$ation o le$islative power has beco!e an inevitability in li$ht o the increasin$ co!ple)ity o the task o $overn!ent.
#hus, courts ben% as ar back as possible to sustain the constitutionality o laws which are assaile% as un%uly %ele$atin$
le$islative powers. (itin$ Cirabayashi v. ,nite% States 2; as authority, <r. >ustice "sa$ani A. (ruB states /that even i the law
%oes not e)pressly pinpoint the stan%ar%, the courts will ben% over backwar% to locate the sa!e elsewhere in or%er to spare
the statute, i it can, ro! constitutional inir!ity./ 2D
=iven the $roove o the (ourt@s rulin$s, the atte!pt o petitioners to strike %own section 15 on the $roun% o un%ue
%ele$ation o le$islative power cannot prosper. Section 15 can hur%le both the co!pleteness test an% the suicient stan%ar%
test. "t will be note% that (on$ress e)pressly provi%e% in &.A. No. 818. that ull %ere$ulation will start at the en% o <arch
199:, re$ar%less o the occurrence o any event. 1ull %ere$ulation at the en% o <arch 199: is !an%atory an% the 7)ecutive
has no %iscretion to postpone it or any purporte% reason. #hus, the law is co!plete on the question o the inal %ate o ull
%ere$ulation. #he %iscretion $iven to the 2resi%ent is to a%vance the %ate o ull %ere$ulation beore the en% o <arch 199:.
Section 15 lays %own the stan%ar% to $ui%e the 6u%$!ent o the 2resi%ent E he is to ti!e it as ar as practicable when the
prices o cru%e oil an% petroleu! pro%ucts in the worl% !arket are %eclinin$ an% when the e)chan$e rate o the peso in
relation to the ,S %ollar is stable.
2etitioners conten% that the wor%s /as ar as practicable,/ /%eclinin$/ an% /stable/ shoul% have been %eine% in &.A.
No. 818. as they %o not set %eter!inate or %eter!inable stan%ar%s. #he stubborn sub!ission %eserves scant consi%eration.
#he %ictionary !eanin$s o these wor%s are well settle% an% cannot conuse !en o reasonable intelli$ence. *ebster
%eines /practicable/ as !eanin$ possible to practice or peror!, /%ecline/ as !eanin$ to take a %ownwar% %irection, an%
/stable/ as !eanin$ ir!ly establishe%. 25 #he ear o petitioners that these wor%s will result in the e)ercise o e)ecutive
%iscretion that will run riot is thus $roun%less. #o be sure, the (ourt has sustaine% the vali%ity o si!ilar, i not !ore $eneral
stan%ar%s in other cases.