LINA VS PANO [G.R. No.

129093, August 30, 2001]

The introduction of lotto in the province of Laguna is not covered by Secs. 26 and 27 (on Prior
Consultations Required) of the LGC.

We hold that petitioners erred in declaring that Sections 2 (c) [Declaration of Policy] and 27 [Prior
Consultations Required] of Republic Act 7160, otherwise known as the Local Government Code of 1991,
apply mandatorily in the setting up of lotto outlets around the country.

These apply only to national programs and/or projects which are to be implemented in a particular local
community, but if it is a GOCC, like PCSO, Sec. 27 will not apply. Lotto is neither a program nor a project
of the national government, but of a charitable institution, the PCSO. Though sanctioned by the national
government, it is far fetched to say that lotto falls within the contemplation of Sections 2 (c) and 27 of
the Local Government Code.

Section 27 of the Code should be read in conjunction with Section 26 thereof [Duty of National
Government Agencies in the Maintenance of Ecological Balance].

The projects and programs mentioned in Section 27 should be interpreted to mean projects and
programs whose effects are among those enumerated in Section 26 and 27, to wit, those that: (1) may
cause pollution; (2) may bring about climatic change; (3) may cause the depletion of non-renewable
resources; (4) may result in loss of crop land, range-land, or forest cover; (5) may eradicate certain
animal or plant species from the face of the planet; and (6) other projects or programs that may call for
the eviction of a particular group of people residing in the locality where these will be implemented.
Obviously, none of these effects will be produced by the introduction of lotto in the province of Laguna.