ARTICLE XII- Section 17

Section 17. In times of national emergency, when the public interest so

requires, the State may, during the emergency and under reasonable
terms prescribed by it, temporarily take over or direct the operation of
any privately-owned public utility or business affected with public
interest.
State of emergency

A government level) may declare that their area is in a state of

emergency. This means that the government can suspend and/or change
some functions of the executive, the legislative and/or the judiciary during
this period of time. It alerts citizens to change their normal behavior and
orders government agencies to implement emergency plans. A government
can declare a state of emergency during a time of natural or human-made
disaster, during a period of civil unrest, or following a declaration of war or
situation of international/internal armed conflict. Justitium is its equivalent in
Roman law, where Senate could put forward senatus consultum ultimum(or
pretext) for suspending rights and freedoms guaranteed under a country's
constitution or basic law. The procedure for and legality of doing so varies by
country.
After the presidential palace in El Salvador fell over, the
government declared a state of emergency.
Public interest

Public interest, is: the welfare or well-being of the general public;

commonwealth.
Privately-owned public utilities

A public utility is a business that furnishes an everyday necessity to the

public at large. Public utilities provide water, electricity, natural gas,
telephone service, and other essentials. Utilities may be publicly or privately
owned, but most are operated as private businesses.

Examples:

 power
 water
 oil and gas
 telecommunications
Power: Power generation is still largely state-owned via the National Power
Corporation (NAPOCOR) despite the presence of private independent
power producers (IPPs). Power transmission, formerly under NAPOCOR,
was spun off in 2001 to the state-owned National Transmission
Corporation (TransCo), although management of the national power grid is
currently private. In around 2/3 of the country, power distribution is not
exactly private, as electricity in these areas is distributed through electric
cooperatives.
Water: In Metro Manila, while Manila Water and Maynilad distribute the
city's water, the underlying infrastructure is still owned by the state-owned
Metropolitan Waterworks and Sewerage System (MWSS). Back in the
1990s, Metro Manila was in the throes of a water crisis. Outside Metro
Manila, waterworks infrastructure nationwide is still state-owned under the
control of the Local Waterworks and Utilities Administration (LWUA).
Oil and gas: Much of the Philippines' oil and gas reserves are owned by the
state-owned Philippine National Oil Company (PNOC). While PNOC does
some exploration, most exploration is either private or public-private (through
joint ventures). The downstream distribution business is the domain of the
Petron Corporation, and that company was entirely state-owned until 1994,
and became completely private only in 2008.
Telecommunications: The only truly private public utility in the Philippines, in
fact, is telecommunications, where the government has had no involvement in
the industry since the EDSA Revolution, and even more so since the passage of
the Telecommunications Act of 1996. In that ten-year span, the government
went from controlling all telecommunications (the Philippine Long Distance
Telephone Company held a monopoly) to complete privatization.

The primary argument in favor of privatization is that public utilities would be

better able to improve upon their services in private hands, rather than public
hands. That way, expertise can be brought in (oftentimes from abroad) that
would help improve service, and especially with telecommunications, a more
competitive environment would help improve service for everyone (the "a rising
tide lifts all boats" argument). This argument, along with other arguments (saves
the government money, etc.), served as the catalyst for a lot of state companies
(utilities and non-utilities) to be privatized after 1986.
TAKEOVER OF PUBLIC UTILITIES:
The power to take over the operation of public utilities is activated only if Congress grants
emergency powers under Article VI, Section 23. Section 17 must be read with Article VI, Section
23. Section 17 gives the power to the State not the President. The President acquires emergency
powers when given to her by Congress in a state of emergency declared by Congress.

Let it be emphasized that while the President alone can declare a state of national emergency,
however, without legislation, he has no power to take over privately-owned public utility or business
affected with public interest. Nor can he determine when such exceptional circumstances have ceased.

Under this provision, the State (Government) in times of national emergency when the public interest
so requires, may either temporarily take over the operation of any privately-owned public utility or
business affected with public interest, or merely direct the operation of said public utility or business.

In either case, the temporary take over or direction by the government must not last beyond the
period of the public emergency and it must be under reasonable terms prescribed by it. The President
may declare a state of national emergency and exercise the powers granted by Section 17 without need
of an emergency powers law enacted by Congress as provided under Section 23(2) of Article VI.
REPUBLIC ACT NO. 6826

AN ACT TO DECLARE, IN VIEW OF THE EXISTENCE OF A NATIONAL

EMERGENCY, A NATIONAL POLICY IN CONNECTION THEREWITH AND TO
AUTHORIZE THE PRESIDENT OF THE REPUBLIC OF THE PHILIPPINES FOR
A LIMITED PERIOD AND SUBJECT TO RESTRICTIONS, TO EXERCISE
POWERS NECESSARY AND PROPER TO CARRY OUT THE DECLARED
NATIONAL POLICY AND FOR OTHER PURPOSES.

Section 1. State of National Emergency. — On December 1, 1989, a

rebellion committed by certain elements of the Armed Forces of the
Philippines aided and abetted by civilians gave rise to an emergency of
national proportions.
On December 6, 1989, Proclamation No. 503 was issued by the President
declaring a state of national emergency.

Meanwhile, secessionist elements in Mindanao, seeking to establish a

common cause with rebels and their sympathizers, or taking advantage of
the instability occasioned by the coup, are reported to have taken overt
acts to dismember the country.

Communist rebels have taken advantage of the situation by attacking

Government personnel and installations.

The economy has suffered and continues to suffer a serious setback,

severely disrupting the momentum of our economic recovery.

A state of national emergency is hereby declared.

That the powers granted under this Act may be withdrawn sooner by
means of a concurrent resolution of Congress or ended by Presidential
Proclamation.
CASE AND RELATED DECREES:

David v Arroyo GR No. 171396, May 3, 2006

Facts: As the nation celebrated EDSA”s 20 th anniversary, President Arroyo issued PP 1017
declaring a state of national emergency and thereby commanded the AFP and PNP to immediately
carryout necessary and appropriate actions and measures to suppress and prevent acts of terrorism
and lawless violence. This declaration led to cancellation of all programs and activities related to the
EDSA People Power I celebration. Rally permits were revoked and warrantless arrests and take-over
of facilities, including the media, were implemented. Assemblies and rallyists were dispersed. Along
with the dispersal, petitioner was arrested without warrant. A week after PP 1017, PP1021 was issued
lifting the state of emergency

PROCLAMATION NO. 1017: PROCLAMATION DECLARING A STATE OF NATIONAL EMERGENCY

WHEREAS, over these past months, elements in the political opposition have conspired with
authoritarians of the extreme Left represented by the NDF-CPP-NPA and the extreme Right,
represented by military adventurists—the historical enemies of the democratic Philippine State—who
are now in a tactical alliance and engaged in a concerted and systematic conspiracy, over a broad
front, to bring down the duly-constituted Government elected in May 2004;
FINDINGS
 The Court ruled that the assailed PP 1017 is unconstitutional insofar as it grants
President Arroyo the authority to promulgate decrees, taking into consideration that
legislative power is vested only in congress

. The Court partly grants the petitions. PP 1017 is constitutional insofar as it allows the
President to call the AFP to prevent or suppress lawless violence. However, commanding
the AFP to enforce laws not related to lawless violence are declared unconstitutional.

 G.O. No. 5 is CONSTITUTIONAL since it provides a standard by which the AFP and
the PNP should implement PP 1017, I.e. whatever is “necessary and appropriate actions
and measures to suppress and prevent acts of lawless violence.” Considering that “acts of
terrorism” have not yet been defined and made punishable by the Legislature, such
portion of G.O. No. 5 is declared UNCONSTITUTIONAL.

 Such proclamation does not also authorize the President to take over privately-owned
public utilities or business affected with public interest without prior legislation.
EMERGENCY POWERS OF THE PRESIDENT
 There’s a storm brewing over the grant of emergency powers in favor of the President to address
the issue on water and power shortage in the face of a drought. Let’s not discuss the merits of such
grant, but let’s discuss the Constitutional basis thereof.

 Emergency, as a generic term, connotes the existence of conditions suddenly intensifying the
degree of existing danger to life or well-being beyond that which is accepted as normal. Implicit in
this definitions are the elements of intensity, variety, and perception. Emergencies, as perceived by
legislature or executive in the United Sates since 1933, have been occasioned by a wide range of
situations, classifiable under 3 principal heads: (a) economic; (b) natural disaster; and (c) national
security.

 Emergency, as contemplated in our Constitution, is of the same breadth. It may include

rebellion, economic crisis, pestilence or epidemic, typhoon, flood, or other similar catastrophe of
nationwide proportions or effect.

 There’s a distinction between the Presidents authority to declare a state of national emergency
and to exercise emergency powers. The President has the power to declare a “state of national
emergency” even without authorization from Congress. The exercise of emergency powers, such
as the taking over of privately owned public utility or business affected with public interest, is a
different matter. This requires a delegation from Congress.
EMERGENCY POWERS OF THE PRESIDENT (continuation)

 Generally, Congress is the repository of emergency powers. This is evident in the tenor of
Section 23 (2), Article VI authorizing it to delegate such powers to the President. Section 23, Article
VI of the Constitution reads:
- SEC. 23. (1) The Congress, by a vote of two-thirds of both Houses in joint session
assembled, voting separately, shall have the sole power to declare the existence of a state of war.
- (2) In times of war or other national emergency, the Congress may, by law, authorize
the President, for a limited period and subject to such restrictions as it may prescribe, to exercise
powers necessary and proper to carry out a declared national policy. Unless sooner withdrawn by
resolution of the Congress, such powers shall cease upon the next adjournment thereof.

 Certainly, a body cannot delegate a power not reposed upon it. However, knowing that during grave
emergencies, it may not be possible or practicable for Congress to meet and exercise its powers, the
Framers of our Constitution deemed it wise to allow Congress to grant emergency powers to the
President, subject to certain conditions, thus:
(1) There must be a war or other emergency.
(2) The delegation must be for a limited period only.
(3) The delegation must be subject to such restrictions as the Congress may prescribe.
(4) The emergency powers must be exercised to carry out a national policy declared by Congress.
END…. THANK YOU