Lina, Jr. v. Dizon Paño
REITERATIONFacts
The Antecedents: Respondent Tony Calvento was appointed by the Philippine Charity Sweepstakes Office (PCSO) as an agent to install Terminal OM 20 for lotto operations. Upon seeking a mayor's permit from Mayor Calixto Cataquiz of San Pedro, Laguna, his request was denied. The denial was based on Kapasiyahan Blg. 508, T. 1995, a resolution passed by the Sangguniang Panlalawigan of Laguna on September 18, 1995, which expressed the provincial board's objection to all forms of gambling, particularly lotto, citing its detrimental effects on the youth and the prevalence of gambling in the province. This resolution also urged the provincial police director to intensify efforts against illegal gambling. Procedural History: Following the denial of the mayor's permit, respondent Calvento filed a complaint for declaratory relief with a prayer for preliminary injunction and temporary restraining order before the Regional Trial Court of San Pedro, Laguna, Branch 93. He sought to enjoin the petitioners from enforcing Kapasiyahan Blg. 508, T. 1995, compel Mayor Cataquiz to issue the permit, and have the resolution declared invalid. On February 10, 1997, the RTC issued a decision enjoining the petitioners from implementing the said resolution. The petitioners' motion for reconsideration was subsequently denied by an Order dated April 21, 1997. The Petition: Petitioners Jose D. Lina, Jr., the Sangguniang Panlalawigan of Laguna, and Mayor Calixto Cataquiz filed this petition for review on certiorari under Rule 45 of the Rules of Court. They contend that the trial court erred in enjoining them from implementing Kapasiyahan Blg. 508, T. 1995, arguing it was a valid policy declaration and an exercise of the provincial government's police power. They also assert that respondent Calvento's lotto operation was illegal due to the lack of prior consultation and approval from the local government units, as purportedly required by Sections 2(c) and 27 of Republic Act 7160 (Local Government Code of 1991).
Issue(s)
Whether Kapasiyahan Blg. 508, Taon 1995 of the Sangguniang Panlalawigan of Laguna and the denial of a mayor's permit based thereon are valid. Whether prior consultations and approval by the concerned Sanggunian are needed before a lotto system can be operated in a given local government unit.
Ruling
The petition is DENIED for lack of merit. The Order of the Regional Trial Court of San Pedro, Laguna, enjoining the petitioners from implementing or enforcing Resolution or Kapasiyahan Blg. 508, T. 1995, of the Provincial Board of Laguna is AFFIRMED.
Ratio Decidendi
On the validity of Kapasiyahan Blg. 508, Taon 1995 and the denial of the mayor's permit: The Court held that Kapasiyahan Blg. 508, Taon 1995 is merely a policy statement expressing the Sangguniang Panlalawigan's objection to lotto and gambling, and not a self-executing ordinance prohibiting its operation. As a mere policy statement, it cannot serve as a valid legal ground for the mayor to deny the business permit for lotto operations. The power of local government units to legislate is delegated by Congress, and any ordinance or resolution enacted must not contravene statutes enacted by Congress. Since lotto is a game of chance authorized by national law (Republic Act 1169, as amended by Batas Pambansa Blg. 42), a provincial board cannot prohibit its operation through a resolution. The resolution's power cannot rise above its source, which is the national legislature. On the requirement for prior consultations and approval under Sections 2(c) and 27 of the Local Government Code: The Court ruled that these provisions do not apply to the operation of lotto by the PCSO. Sections 2(c) and 27 of Republic Act 7160 require prior consultations and approval for national programs and projects to be implemented in a local community. Lotto, however, is not a program or project of the national government but of a charitable institution, the PCSO, authorized by Congress. The Court clarified that the projects and programs contemplated by these sections are those that may cause pollution, climatic change, depletion of resources, loss of land cover, extinction of species, or require eviction of residents, none of which are produced by the introduction of lotto. Furthermore, the argument regarding lack of consultation was deemed an afterthought, as the mayor's refusal was solely based on the Sangguniang Panlalawigan's resolution.
Main Doctrine
A provincial board's resolution merely expressing objection to lotto operations, without being a self-executing ordinance, cannot serve as a legal basis to prohibit the operation of lotto, which is a game of chance authorized by national law. Furthermore, Sections 2(c) and 27 of the Local Government Code requiring prior consultations and approval for national projects do not apply to the operation of lotto by the PCSO, as lotto is not a national project or program within the contemplation of these provisions.