Local Government Law Case Digest

APPOINTMENTS
Subic Bay Metro. Auth. v. Comm’n on Elections
G.R. No. 125416|J. Panganiban| 26 Sep 1996|

SUMMARY: Mayor appointed his wife, a long-time City employee head of an office.
Chief contention is that prohibition against nepotic appointments is applicable
only to original appointments and not to promotional appointments.
DOCTRINE: REV. ADM. CODE, bk. V, § 59 refers to "all appointments" whether original
or promotional in nature. The public policy embodied in Section 59 is clearly
fundamental in importance, and the Court has neither authority nor inclination to
dilute that important public policy by introducing a qualification here or a
distinction there.

 FACTS:
 Congress enacted Rep. Act no. 7227 (The Bases Conversion and Development Act
of 1992), which among others, provided for the creation of the Subic Special
Economic Zone.
 Rep. Act no. 7227 likewise created petitioner SBMA to implement the declared
national policy of converting the Subic military reservation into alternative
productive uses.
o SBMA was organized with an authorized capital stock of P20 billion which
was fully subscribed and fully paid up by the Republic of the Philippines
with, among other assets, "(a)ll lands embraced, covered and defined in
Section 12 hereof, as well as permanent improvements and fixtures upon
proper inventory not otherwise alienated, conveyed, or transferred to
another government agency."
 American navy turned over the Subic military reservation to the Philippine
government. SBMA commenced the implementation of its task, (preservation of the
seaports, airports, buildings, houses etc)
 Sangguniang Bayan of Morong, Bataan passed a Pambayang Kapasyahan Blg. 10 (1993),
expressing therein its absolute concurrence, as required, to join the SSEZ. Sept.
5: SB submitted it to the OP.
 Garcia, Calimbas et. al. filed a petition1 with the SB Morong to annul PK Blg.
10.
 SB Morong acted upon the petition by promulgating PK Blg. 18, Serye 1993,
requesting Congress of the Philippines to amend certain provisions of Rep. Act
No. 7227 particularly (A), (B), (K), (E) and (G). SB informed respondents that
items (D) and (H) had already been referred to and favorably acted upon by the
government agencies concerned.
 Within 30 days from submission of their petition, herein respondents resorted
to their power of initiative under the LGC 1991 Sec. 122 paragraph (b):

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"I. Bawiin, nulipikahin at pawalang-bisa ang Pambayang Kapasyahan Blg. 10 Serye 1993 ng Sangguniang Bayan para sa pag- anib
ng Morong sa SSEFZ na walang kundisyon. II. Palitan ito ng isang Pambayang kapasiyahan na aanib lamang ang Morong sa SSEFZ
kung ang mga sumusunod na kondisyones ay ipagkakaloob, ipatutupad at isasagawa para sa kapakanan at interes ng Morong at
Bataan:
(A) Ibalik sa Bataan ang 'Virgin Forests' -- isang bundok na hindi nagagalaw at punong-puno ng malalaking punong-kahoy at
iba't-ibang halaman.
(B) Ihiwalay ang Grande Island sa SSEFZ at ibalik ito sa Bataan.
(K) Isama ang mga lupain ng Bataan na nakapaloob sa SBMA sa pagkukuenta ng salaping ipinagkaloob ng pamahalaang national o
'Internal Revenue Allotment' (IRA) sa Morong, Hermosa at sa Lalawigan.
(D) Payagang magtatag rin ng sariling 'special economic zones' ang bawat bayan ng Morong, Hermosa at Dinalupihan.
(E) Ibase sa laki ng kanya-kanyang lupa ang pamamahagi ng kikitain ng SBMA.
(G) Ibase rin ang alokasyon ng pagbibigay ng trabaho sa laki ng nasabing mga lupa.
(H) Pabayaang bukas ang pinto ng SBMA na nasa Morong ng 24 na oras at bukod dito sa magbukas pa ng pinto sa hangganan
naman ng Morong at Hermosa upang magkaroon ng pagkakataong umunlad rin ang mga nasabing bayan, pati na rin ng iba pang
bayan ng Bataan.
(I) Tapusin ang pagkokonkreto ng mga daang Morong-Tala-Orani at Morong-Tasig-Dinalupihan para sa kabutihan ng mga
taga-Bataan at tuloy makatulong sa pangangalaga ng mga kabundukan.
(J) Magkakaroon ng sapat na representasyon sa pamunuan ng SBMA ang Morong, Hermosa at Bataan."

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 § 122. Procedure in Local Initiative. - […] (b) If no favorable action thereon

is taken by the sanggunian concerned, the proponents, through their duly
authorized and registered representatives, may invoke their power of initiative,
giving notice thereof to the sanggunian concerned. […].
 COMELEC Res. No. 93-1623 denied the petition for local initiative on the ground
that the subject thereof was merely a Res. (pambayang kapasyahan) and not an
ordinance.
 COMELEC (directed its Provincial Election Supervisor to hold action on the
authentication of signatures being solicited by private respondents.
 Petition for certiorari and mandamus before this Court against COMELEC and the
SB Morong to set aside Res. No. 93-1623 and Res. No. 93-1676.
 Pursuant to Sec. 12 of RA 7227, the President of the Philippines issued Proc.
No. 532 defining the metes and bounds of the SSEZ. Said proclamation included
in the SSEZ all the lands within the former Subic Naval Base, including Grande
Island and that portion of the former naval base within the territorial
jurisdiction of the Municipality of Morong.
 COMELEC issued Res. No. 2845, adopting therein a "Calendar of Activities for
local referendum on certain municipal ordinance passed by the Sangguniang Bayan
of Morong, Bataan", and which indicated, among others, the scheduled referendum
Day (July 27, 1996, Saturday).
 COMELEC promulgated the assailed Res. No. 2848 providing for "the rules and
guidelines to govern the conduct of the referendum proposing to annul or repeal
Kapasyahan Blg. 10…”
 SBMA instituted the present petition contesting the validity of Res. No. 2848
 Court heard oral argument by the parties

ISSUE: Whether the questioned local initiative covers a subject within the powers
of the people of Morong to enact; (i.e., whether such initiative "seeks the amendment
of a national law”).

HELD: The process started was an INITIATIVE but COMELEC made preparations for a
REFERENDUM only.
 In fact, in the body of the Resolution as reproduced in the footnote below the
word "referendum" is repeated at least 27 times, but "initiative" is not
mentioned at all.
 In enacting the "Initiative and Referendum Act, Congress differentiated one term
from the other, thus:
(a) "Initiative" 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 (3) systems of initiative, namely:
o a.1. Initiative on the Constitution which refers to a petition proposing
amendments to the Constitution;
o a.2. Initiative on statutes which refers to a petition proposing to enact
a national legislation; and
o a.3. Initiative on local legislation which refers to a petition proposing
to enact a regional, provincial, city, municipal, or barangay law,
resolution or ordinance.
(b) "Indirect initiative" is exercise of initiative by the people through a
proposition sent to Congress or the local legislative body for action.
(c) "Referendum" is the power of the electorate to approve or reject a legislation
through an election called for the purpose. It may be of two classes, namely:
c.1. Referendum on statutes which refers to a petition to approve or reject an
act or law, or part thereof, passed by Congress; and
c.2. Referendum on local law which refers to a petition to approve or reject a
law, resolution or ordinance enacted by regional assemblies and local legislative
bodies.
 According to Justice Isagani A. Cruz:

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o Initiative as the "power of the people to propose bills and laws, and to
enact or reject them at the polls independent of the legislative assembly."
o Referendum "is the right reserved to the people to adopt or reject any act
or measure which has been passed by a legislative body and which in most
cases would without action on the part of electors become a law."
 Local Government Code (Rep. Act No. 7160):
o § 120. Local Initiative Defined. Local Initiative is the legal process
whereby the registered voters of a local government unit may directly
propose, enact, or amend any ordinance.
o § 126. Local Referendum Defined. Local referendum is the legal process
whereby the registered voters of the local government units may approve,
amend or reject any ordinance enacted by the sanggunian. The local
referendum shall be held under the control and direction of the Comelec
within sixty (60) days in case of provinces and cities, forty-five (45)
days in case of municipalities and thirty (30) days in case of barangays.
The Comelec shall certify and proclaim the results of the said referendum."
 INITIATIVE is resorted to (or initiated) by the people directly either because the
law-making body fails or refuses to enact the law, ordinance, resolution or act
that they desire or because they want to amend or modify one already existing.
Under Sec. 13 of Rep Act No. 6735, the local legislative body is given the
opportunity to enact the proposal.
o If its refuses/neglects to do so within thirty (30) days from its
presentation, the proponents through their duly-authorized and registered
representatives may invoke their power of initiative, giving notice
thereof to the local legislative body concerned.
o Should the proponents be able to collect the number of signed conformities
within the period granted by said statute, the Commission on Elections
"shall then set a date for the initiative (not referendum) at which the
proposition shall be submitted to the registered voters in the local
government unit concerned […]
 In a local REFERENDUM, the law-making body submits to the registered voters of its
territorial jurisdiction, for approval or rejection, any ordinance or resolution
which is duly enacted or approved by such law-making authority. Said referendum
shall be conducted also under the control and direction of the Commission on
Elections.
o While initiative is entirely the work of the electorate, referendum is
begun and consented to by the law-making body. Initiative is a process of
law-making by the people themselves without the participation and against
the wishes of their elected representatives,
o While referendum consists merely of the electorate approving or rejecting
what has been drawn up or enacted by a legislative body. Hence, the process
and the voting in an initiative are understandably more complex than in a
referendum where expectedly the voters will simply write either "Yes" or
"No" in the ballot.
 It follows that there is need for the Comelec to supervise an initiative more
closely, its authority thereon extending not only to the counting and canvassing
of votes but also to seeing to it that the matter or act submitted to the people
is in the proper form and language so it may be easily understood and voted upon
by the electorate. This is especially true where the proposed legislation is
lengthy and complicated and should thus be broken down into several autonomous
parts, each such part to be voted upon separately.
 Care must also be exercised that "(n)o petition embracing more than one subject
shall be submitted to the electorate," although "two or more propositions may
be submitted in an initiative".
 It should be noted that under Rep. Act No. 6735, § 13(c)the "Secretary of Local
Government or his designated representative shall extend assistance in the
formulation of the proposition."
 In initiative and referendum, the Comelec exercises administration and
supervision of the process itself, akin to its powers over the conduct of

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elections. These law-making powers belong to the people, hence the respondent
Commission cannot control or change the substance or the content of legislation.
In the exercise of its authority, it may (in fact it should have done so already)
issue relevant and adequate guidelines and rules for the orderly exercise of
these "people-power" features of our Constitution.

JUDGMENT: Annuled.

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