Article XII NATIONAL ECONOMY AND PATRIMONY Sect Sectio ion n 1 The The goal goals s of the the nati nation onal al econ econom om are are a more more e!"i e!"ita ta#l #le e $istri#"tion of o%%ort"nities& income& an$ 'ealth( a s"staine$ increase in the amo"nt of goo$s an$ ser)ices %ro$"ce$ # the nation for the #ene*t of the %eo%le( an$ an e+%an$ing %ro$"cti)it as the ,e to raising the !"alit of life for all& es%eciall the "n$er%ri)ilege$The State shall %romote in$"striali.ation an$ f"ll em%loment #ase$ on so"n$ agric"lt"ral $e)elo%ment an$ agrarian reform& thro"gh in$"stries that ma,e f"ll an$ e/cient "se of h"man an$ nat"ral reso"rces& an$ 'hich are com%etiti)e in #oth $omestic an$ foreign mar,ets- 0o'e)er& the State shall %rotect ili%ino enter%rises against "nfair foreign com%etition an$ tra$e %racticesIn the %"rs"it of these goals& all sectors of the econom an$ all regions of the the co"n co"ntr tr shal shalll #e gi)e gi)en n o%ti o%tim" m"m m o%%o o%%ort rt"n "nit it to $e)e $e)elo lo%%- Pr Pri) i)at ate e enter%rises enter%rises&& incl"$ing incl"$ing cor%oratio cor%orations& ns& coo%erati) coo%erati)es& es& an$ similar similar collecti)e collecti)e orga organi ni.a .ati tio ons& ns& sha shall #e enco enco"r "rag age$ e$ to #roa #roa$ $en the the #as #ase of thei theirr o'nershi%Sect Sectio ion n 1 by itse itself lf expr xpresse esses s the the gen general eral econ econom omic ic poli polici cies es of the the Constitut Constitution. ion. It contains contains the three #asic $irections of the National Econom . What are the 3 basic directions of the National Economy? What are the goals of our National Economy? In order to anser the basic directions & it is containe$ in 'hole of the Section 1 %aragra%h 1& 2 an$ 3 . !he goals are contained in "aragraph 1. !he three #asic $irections of the National Econom are *rst# it sets the dual dual goal goal of econom economic ic prod product ucti$i i$ity ty and more more e%uita e%uitable ble dis distri tribut bution ion of hat hat is produced. ed. Secon$# it see& see&s s comp comple leme ment ntar ary y bet betee een n indu indust stri rial ali' i'at atio ion n and and agricultural agricultural de$elopment. Thir$# it is protecti$e of all things (ilipino. !he )rst paragraph# paragraph# sets the three fol$ goal of the National Econom # they are 4more e!"ita#le $istri#"tion of o%%ort"nities& income an$ 'ealth5 # 4for 4for the #ene*t #ene*t of the %eo%le& %eo%le& es%eci es%eciall all the "n$er %ri)ileg %ri)ilege$5 e$5 and 4to #roa$en the #ase of o'nershi%5 Section 1 of social *ustice and human rights maybe similar to section 1 of national economy and patrimony because section 1 it spea&s of e%uity states the goals goals of national national patrimony patrimony distribu distribution tion of opportun opportunities ities## income# income# and ealth. ealth. + sustained increase in the amount of goods and ser$ices produced by the nation for
the bene)t of the people# expanded producti$ity as the &ey in raising the %uality of life for all specially the under pri$ileged. Section 1 spea&s of e%uity# so the social *ustice is in the section 1 of national patrimony also. +side from the economic goals of the country it also in$ol$es e%uity and social *ustice.
Is the economic %olic state$ on the Constit"tion %rotectionist or not6 Does it %rotect too m"ch Phili%%ine interest an$ the interest of the ili%ino Ca%italist6 The en$ e7ect 'o"l$ #e there is little or non8foreign $irect in)estments6 If there had been problems in the +%uino +dministration regarding lac& of (,I-s# some say it is because of the restricti$e pro$isions of the Constitution. !hat is hy the elmonte proposal to amend the constitution# they ant to liberali'e the e%uity participation of foreigners in in$estments in our country by a simple approach# they ant to add the phrase 4as ma #e %ro)i$e$ for # la'5Congress can no legislate a higher or loer participation of (ilipino Citi'ens and higher participations for foreigners because of the phrase 4as ma #e %ro)i$e$ for # la'5- !his ould be an enough authority and license of the Congress to enact a foreign ration of foreign in$estment in the country. +rticle 1/ contains the national economic policy# &apag naririnig naten ung constitutional amendments eto ung gusto nilang I0ammend ung constitutional economic pro$isions. usto nilang dagdagan ng phrase ng as may be pro$ided for by la. "ro$isions in article 1/ say the speci)c pro$isions that limits of participation of foreigners in in$estments in industries and it is stated that if the constitution says that corporations of hich are oned by 2 percent by (ilipino citi'ens hanggang dun nalang yon. 4ng mga gustong mag amend ng economic pro$ision of the constitution nato $ery much li&e that on hat elmonte had proposed na hindi natuloy# they ant to add the phrase 4as ma #e %ro)i$e$ for # la'5 so that this $enture of this industry and in$estment shall be limited to (ilipino citi'ens or corporations hich are oned by 2 percent by (ilipino citi'ens as may be pro$ided for by la. +rticle 1/ elaborates the Section 15 and / of ,eclaration of principles# that these are the %illars of the economic %olic of the constit"tion . Section 19 commands the de$elopment of a self0reliant and independent national economy hile Section 2: recogni'es the indispensable role of the pri$ate sector. Section 15 and / )nds substance in +rticle 1/.
Section 1 of article 12 e+%resses the general economic %olicies of the constit"tion . !his section also tells us that the economy en$isioned by the constitution is dynamic. The $namism of the econom is en)isione$ by this article is expressed in the ords 6 s"staine$ increase in the amo"nt of goo$s an$ ser)ices %ro$"ce$5 an$ 4e+%an$ing %ro$"cti)it5 because of this the economic en$isioned is dynamic. The e!"it goal is e+%resse$ in the ords 4a
more e!"ita#le $istri#"tion of o%%ort"nities& income& an$ 'ealth5 4for the #ene*t of the %eo%le es%eciall the "n$er8%ri)ilege$5 an$ to 4#roa$en the #ase of o'nershi%5E!"it is gi)en %rominence as the *rst o#;ecti)e of the National Economic De)elo%ment. !he goal of reducing ine%uality is an explicit statement of the emerging concept in social philosophy as contained in the social *ustice and human rights article of this constitution. !he preferential option of lo$e for the poor and the underpri$ileged# the reference to the national product being for the bene)t of the (ilipino people tries to guarantee the national de$elopment e7orts shall gi$e priority to the needs of the local population rather than foreign consumers. In Section 1# it mentions that 6 The economic %olic %romotes a #alance #et'een the in$"striali.ation an$ agric"lt"ral $e)elo%ment5 . ernas says that industriali'ation can be attained by using the released loc&ed up capital through agrarian reform. ernas seems to be ban&ing too much on agrarian reform hich is also pro$ided in the constitution - In agrarian reform& the lan$ an$ estates shall #e ta,en # the go)ernment for $istri#"tion- The %ament to #e ma$e to the o'ners 'ill s%"r in$"striali.ation accor$ing to
ith the e+ce%tion of agric"lt"ral lan$s& all other nat"ral reso"rces shall not #e alienate$- The e+%loration& $e)elo%ment& an$ "tili.ation of nat"ral reso"rces shall #e "n$er the f"ll control an$ s"%er)ision of the State- The State ma $irectl "n$erta,e s"ch acti)ities& or it ma enter into co8%ro$"ction& ;oint )ent"re& or %ro$"ction8sharing agreements 'ith ili%ino citi.ens& or cor%orations or associations at least si+t per centum of 'hose ca%ital is o'ne$ # s"ch citi.ens- S"ch agreements ma #e for a %erio$ not e+cee$ing t'ent8*)e ears&
rene'a#le for not more than t'ent8*)e ears& an$ "n$er s"ch terms an$ con$itions as ma #e %ro)i$e$ # la'- In cases of 'ater rights for irrigation& 'ater s"%%l *sheries& or in$"strial "ses other than the $e)elo%ment of 'ater %o'er& #ene*cial "se ma #e the meas"re an$ limit of the grantSection / is based on the $octrine of $omini"m 'hich is also the #asis of the %rinci%le of ;"ra regalia also &non as the regalia doctrine. !his doctrine is &non to mean that e$erything belongs to the state. +ll natural resources enumerated in section / are oned by the state. !his is found on the concept of $omini"m; it is the foundation of the feudal and embraces the theory of ;"ra regalia hich means onership is $ested in the state. We no introduce the concept of $omini"m an$ im%eri"m. Domini"m is the ca%acit of the state to o'n or ac!"ire %ro%ert . It is the concept of onership by the state# property holdings by the state. !his is the %ro%rietar as%ect of the state- Im%eri"m& is the go)ernmental %art of the state& is the go)ernment a"thorit %ossesse$ # the state e+%resse$ in the conce%t of so)ereignt. Imperium is for go$ernance and dominium is for onership of property. What are ;"ra regalia ? What is the constitutional basis of this doctrine? !he anser is Section / article 1/.
Onl agric"lt"ral lan$s shall #e alienate$- Second paragraph# the exception of agricultural lands and all other natural resources shall not be alienated# except agricultural lands. Agric"lt"ral lan$s ma #e alienate$ if it is $eclare$ as aliena#le an$ $is%osa#le. !here is a category and it is the state that categori'es hether or not the agricultural lands are alienable and disposable. Section / also pro$ides that the exploration# de$elopment and utili'ation of natural resources shall be under the full control and super$ision of the State. In so doing# the state may enter into co0production# *oint $enture or co0production sharing agreement ith natural (ilipino citi'ens or corporations and associations at least 2 percent of hich capital is oned by a (ilipino Citi'ens. !his is an example of the elmonte amendment. !he agreement must be not exceeding /= years and is reneable for another /= years.
The State shall %rotect the nation?s marine 'ealth in its archi%elagic 'aters& territorial sea& an$ e+cl"si)e economic .one& an$ reser)e its "se an$ en;oment e+cl"si)el to ili%ino citi.ens-
!he constitution itself pro$ides that e must protect our nation-s marine ealth in our archipelagic aters# territorial sea and exclusi$e economic 'one and reser$e its use and en*oyment exclusi$ely to (ilipino citi'ens minus the Chinese. Since all the natural resources is belongs to the state# any person ho is claiming a portion of a public domain must be able to sho title to the state according to any of the modes of ac%uisition. If a person is the oner of an agricultural land in hich minerals are disco$ered. !he person-s onership of such land does not gi$e them the right to extract or utili'e the said mineral ithout the permission of the State because the mineral belongs to the state. + sample of this is the >alampaya of atangas# this is co0de$eloped by the "hilippines go$ernment ith a foreign country. It as entered into by former "resident amos. !he limits of $omini"m& hile the concept of dominium includes the poer to alienate hat is oned# Section /# folloing the lead of earlier constitutions# limits the poer of the state to alienate the natural resources of the public domain. !he same section limits the poer of the state to alienate natural resources and that limitation comes ith the phrase 4'ith the e+ce%tions of the agric"lt"ral lan$s5- +ll other natural resources shall not be alienated In Oh Cho )s Director of Lan$s& agric"lt"ral lan$ in a %"#lic $omain #ecomes a %ri)ate lan$ onl 'hen it is ac!"ire$ form the go)ernment either # %"rchase or # grant. +ll lands that ere not ac%uired from the go$ernment either by purchase or grant belongs to the public domain. +ll the lands of the public domain# hat may be alienated are the agricultural lands. +gricultural lands may only be alienated by purchase or by grant to a pri$ate citi'en or to a public corporation li&e a municipality but not to a pri$ate corporation. +fter it is alienated to a pri$ate person# it becomes a pri$ate land.
Prescri%tion can transform %"#lic lan$ into %ri)ate lan$ onl if it is aliena#le %"#lic lan$. :ands of the public domain# agricultural lands may be alienated #"t #efore it can #e alienate$ it m"st #e $eclare$ as aliena#le an$ $is%osa#le lan$. It ill be the state to declare it# principally it should be congress but it is usually delegated to the executi$e. So it is only hen a public agricultural land has already been declared as alienable and disposable that a pri$ate citi'en may ac%uire this property by grant or purchase. In granting# e ha$e an 6open grant@. Ane must apply for it and the go$ernment ill grant. +nother mode of ac%uisition of disposable agricultural land is by prescription. Apen# exclusi$e and undisputed possession of alienable public land for the period prescribed by la creates the legal )ction hereby the land# upon completion of the re%uisite period ipso-jure and ithout the need of *udicial or other
sanction# ceases to be public land and becomes pri$ate property. Such open# continuous# exclusi$e and notorious occupation of the disputed properties for more than 3 years must# hoe$er# be conclusively established. !his is the San Mig"el Cor%oration case. In computing the 3 years# a period for ac%uisiti$e prescription under Section B5 of the "ublic :and :a# the period before a forest land is con$erted into as alienable and disposable land is not included. Example !he property is still a public property and not has been declared as alienable and disposable land. Inupuan mo na# for / years then it becomes alienable and disposable# then you continued to stay in the land for another 1 years. +re you no entitled to the onership of the land by prescription? NA# because the 2: ear %erio$ of s"ch %ossession of the %ro%ert #efore the %ro%ert #ecame aliena#le an$ $is%osa#le is not incl"$e$ in com%"ting the 3: ear %erio$ . !he 3 year period starts# must be hile the property is already as alienable and disposable property. !he epongde "roperty in Dapan# is that a public ,ominium? It is outside of the commerce of men; it cannot be alienated or sold.
The Congress ma& # la'& allo' small8scale "tili.ation of nat"ral reso"rces # ili%ino citi.ens& as 'ell as coo%erati)e *sh farming& 'ith %riorit to s"#sistence *shermen an$ *sh 'or,ers in ri)ers& la,es& #as& an$ lagoonsThe Presi$ent ma enter into agreements 'ith foreign8o'ne$ cor%orations in)ol)ing either technical or *nancial assistance for large8scale e+%loration& $e)elo%ment& an$ "tili.ation of minerals& %etrole"m& an$ other mineral oils accor$ing to the general terms an$ con$itions %ro)i$e$ # la'& #ase$ on real contri#"tions to the economic gro'th an$ general 'elfare of the co"ntr- In s"ch agreements& the State shall %romote the $e)elo%ment an$ "se of local scienti*c an$ technical reso"rcesTo agreements in)ol)ing either technical or *nancial assistance # this is the agreement entered into by the "resident either technical or )nancial assistance are in fact ser$ice contracts but such ne ser$ice contracts beteen foreign corporations acting as contractors and on the other hand go$ernment acting as the principal or oner of the or&s hereby the foreign contractor ill pro$ide the capital the technology and technical &no0ho and managerial expertise in the creation and operation of the large scale mining and extracti$e enterprise and go$ernment through its agencies# the ,EN# the ># acti$ely exercises full control of super$ision o$er the entire enterprise. It is saing that the agenc "se$ # the @o)ernment 'o"l$ #e the DENR in s"%er)ising these technical ser)ice contracts.
The case of La <"gal
The @ran$father R"le is merel to follo' the lineage of the o'ners # if they ha$e a (ilipino Citi'enship. !hese rule implements the intent of the (ilipini'ation pro$isions of the Constitution. !o reiterate# Sec. /# +rt. GII of the Constitution reser$es the exploration# de$elopment# and utili'ation of natural resources to (ilipino citi'ens and cor%orations or associations at least si+t %er cent"m of 'hose ca%ital is o'ne$ # s"ch citi.ens- Consistent 'ith this o#;ecti)e& the @ran$father R"le 'as originall concei)e$ to loo, into the citi.enshi% of the in$i)i$"als 'ho "ltimatel o'n an$ control the shares of stoc, of a cor%oration for %"r%oses of $etermining com%liance 'ith the constit"tional re!"irement of ili%ino o'nershi% . It cannot# therefore# be denied that the framers of the Constitution ha$e not foreclosed the randfather ule as a tool in $erifying the nationality of corporations for purposes of ascertaining their right to participate in nationali'ed or partly nationali'ed acti$ities.
!hus# to arri$e at the actual (ilipino onership and control in a corporation# both the direct and indirect shareholdings in the corporation are determined. !his is the case of NARRA NICBEL MININ@ AND DEELOPMENT CORP-& TESORO MININ@ AND DEELOPMENT& INC-& an$ McART0R MININ@& INC-& "etitioners# $s. REDMONT CONSOLIDATED MINES CORP-& espondent. @-R- No- 19F:& Gan"ar 2F& 2:1
Lin, n"ng caseH htt%H'''-la'%hil-net;"$;"ris;"ri2:1;an2:1grJ19F:J2:1-html +s to >arine ealth# (ilipino Citi'ens are %uali)ed also for natural resources and ri$ers# lagoons la&es. +ll those cooperati$es are %uali)ed. 9o may an inalienable resources may they be explored# de$eloped or utili'ed? !he anser for that %uestion is by direct underta&ing of acti$ities by the State or 4co8%ro$"ction& ;oint )ent"re& or %ro$"ction sharing agreements5 ith the State and all 4"n$er the f"ll control an$ s"%er)ision of the State5 . There are 2 le)els of control that m"st #e consi$ere$ .
The *rst le)el is the control o$er the corporation hich may engage ith the State in 4co8%ro$"ction& ;oint )ent"re& or %ro$"ction sharing agreements5. If indi$iduals they must be (ilipino Citi'ens; if corporations# onership must be 2percent (ilipino. The secon$ le)el is control of the 4co8 %ro$"ction& ;oint )ent"re& or %ro$"ction sharing agreements5 o%eration . !his must be under the 4f"ll control an$ S"%er)ision of the State5 e$en if the operation is by a (ilipino Citi'en. What are the other limitations pro$ided in Section /? irst# agreements of the exploitation of the natural resources can ha)e a life of onl 2 ears& rene'a#le for another 2 ears . Secon$# the "se an$ en;oment of marine 'ealth in archi%elagic 'aters& territorial sea an$ e+cl"si)e economic .one is reser$ed for the exclusi$e use and en*oyment of (ilipino Citi'ens meaning (ilipino natural persons. Thir$# (ilipino citi'en may ha$e small scale utili'ation of natural resources# as ell as cooperati$e )sh farming in ri$ers# la&es and lagoons. o"rth# ser$ice contracts to large scale utili'ations of minerals# petroleum and oils. In S"mmit )s- CA& @-R- No- 12K293 Gan"ar 31& 2::& aliens are not dis%uali)ed from oning e$ery &ind of real property. !hey are not entirely dis%uali)ed in oning real property. !he concept of a real property is not merely a land; a building that is attached to the land is also real property therefore the constitutional prohibition applies only the onership of a land# it does not extend to all immo$able or real property as de)ned in +rticle B1= of the Ci$il Code. !hese are considered immo$able properties that are attached to the land# including buildings
and constructions of all &inds attached to the soil. Aliens are onl $is!"ali*e$ to o'n lan$s #"t not all real %ro%ert . eclaimed# foreshore submerged lands# Somehere in oxas oule$ard in >anila ay# that part is foreshore submerged lands. When they ere reclaimed# they ere lands of the public domain. efore S> and other buildings ere built# there as a process to follo. !he oner of that property hen it as a part of a public domain then as "ublic Estates +uthority# then as the agency of the go$ernment that handles these lands. !hen they ent to congress# and congress declared it as alienable and disposable lands before selling the said properties. !he reclaimed foreshore and submerged lands are lands of the public domain unless they are already classi)ed as alienable they may not be disposed of. (or reclaimed land to be registered as pri$ate property# / things must be re%uired. Since reclaimed land is part of the inalienable public lands# there must be proof that the land has been classi)ed as alienable by congress. !o the person see&ing registration must sho proof of ha$ing ac%uired the property for instance by prescription# but for the foreshore lands# by ac%uired by sale from the go$ernment. Inaliena#le lan$ cannot #e ac!"ire$ # %rescri%tion& #eca"se onl aliena#le lan$s 'hich are %art of the %"#lic $omain s can #e ac!"ire$ # %rescri%tioneclaimed lands of the public domain# if sold or transferred to a public corporation Hmunicipality hich has a right to hold properties# foe a monetary consideration becomes a %atrimonial %ro%ert . It 'ill #e a %ro%ert of the m"nici%alit& an$ ma#e sol$ to %ri)ate %arties 'hether to ili%ino Citi.ens or !"ali*e$ cor%orations . eclaimed lands of the public domain maybe transferred to public corporations.
Section 3 Lan$s of the %"#lic $omain are classi*e$ into agric"lt"ral& forest or tim#er& mineral lan$s an$ national %ar,s- Agric"lt"ral lan$s of the %"#lic $omain ma #e f"rther classi*e$ # la' accor$ing to the "ses to 'hich the ma #e $e)ote$- Aliena#le lan$s of the %"#lic $omain shall #e limite$ to agric"lt"ral lan$s- Pri)ate cor%orations or associations ma not hol$ s"ch aliena#le lan$s of the %"#lic $omain e+ce%t # lease& for a %erio$ not e+cee$ing t'ent8*)e ears& rene'a#le for not more than t'ent8*)e ears& an$ not to e+cee$ one tho"san$ hectares in areaCiti.ens of the Phili%%ines ma lease not more than *)e h"n$re$ hectares& or ac!"ire not more than t'el)e hectares thereof& # %"rchase& homestea$& or grantIn section 3# you ill encounter the ord 4hol$5 and 6ac%uire@. 0ol$ i$ onl for leaserent an$ not conce%t of o'nershi% . +c%uire on the other hand is for the pri$ate citi'ens for onership.
Section 3 therefor# deals ith the classi)cation of lands in the public domain to agricultural forest timber# mineral and national par&. +gricultural lands may be further classi)ed by la according to the uses to hich may be de$oted. Classi)cation is descripti$e of the legal nature of the land and not hat it loo&s li&e. In untun bridge# may mga bundo& sa >adduarulug. Wala ng &ahoy# pero that doesn-t mean agricultural na siya. (orest land parin siya. !he fact that the forest lands ha$e been deluded that doesn-t mean it has sei'ed as a forest land# Director of Lan$s )s- A!"ino. !he rights o$er the land are indi$isible and that the land itself cannot be half agricultural and half mineral. !he classi)cation must be categorical; the land must be either completely mineral or completely agricultural. Re%"#lic of the Phili%%ines )s- CA-
Dis%osition of lan$s of the P"#lic Domain& the )rst rule is that only agricultural lands of the public domain may be alienated. Second# only public corporations and %uali)ed indi$iduals may ac%uire alienable lands of the public domain# because it may only hold alienable lands of the public domain only by lease. While pri$ate corporations cannot ac%uire lands of the public domains# they can ac%uire pri$ate lands. Ta,ing into acco"nt the re!"irements of conser)ation& ecolog& an$ $e)elo%ment& an$ s"#;ect to the re!"irements of agrarian reform& the Congress shall $etermine& # la'& the si.e of lan$s of the %"#lic $omain 'hich ma #e ac!"ire$& $e)elo%e$& hel$& or lease$ an$ the con$itions thereforMERALCO )s- G"$ge E+:CA bought / lots from a pri$ate (ilipino indi$idual. +pparently the land bought already becomes pri$ate property because it as already bought by >E+:CA. !he pri$ate corporation can on alienable lands of the public domain only by buying it from a pri$ate person. >E+:CA is as&ing for a con)rmation of its title of the to lots. !he court did not perform the con)rmation because they ha$e no proof to sho that the said property as alienated by the go$ernment and because there is no title from that pri$ate citi'en. !he concept is that a property does not become pri$ate unless there is a title from the pri$ate indi$idual. Director of Lan$s )s Interme$iate A%%ellate Co"rt # it has abandoned the >E+:CA case# the rule no is that alienable land held by a possessor# personally or through his predecessors in0interest# openly# continuously and exclusi$ely for the 3 years is con$erted to pri$ate property by the mere lapse or completion of said period. "ero it goes ithout saying that these properties must ha$e been declared alienable and disposable; otherise it is still a part of the lands of the public domains. We ill assume that the property is already declared as
alienable and disposable. In this case# unli&e >E+:CA it does not need a title in fa$or of the pri$ate person; it is enough that it is ac%uired by prescription for 3 years and has its title con)rmed by the court. Ance title of alienable public land passes thru a pri$ate indi$idual it is segregated from lands from the public domain and becomes pri$ate land sub*ect to the rights of pri$ate onership.
Section K The Congress shall& as soon as %ossi#le& $etermine& # la'& the s%eci*c limits of forest lan$s an$ national %ar,s& mar,ing clearl their #o"n$aries on the gro"n$- Thereafter& s"ch forest lan$s an$ national %ar,s shall #e conser)e$ an$ ma not #e increase$ nor $iminishe$& e+ce%t # la'- The Congress shall %ro)i$e for s"ch %erio$ as it ma $etermine meas"res to %rohi#it logging in en$angere$ forests an$ 'atershe$ areasSection The State& s"#;ect to the %ro)isions of this Constit"tion an$ national $e)elo%ment %olicies an$ %rograms& shall %rotect the rights of in$igeno"s c"lt"ral comm"nities to their ancestral lan$s to ens"re their economic& social& an$ c"lt"ral 'ell8#eingThe Congress ma %ro)i$e for the a%%lica#ilit of c"stomar la's go)erning %ro%ert rights or relations in $etermining the o'nershi% an$ e+tent of ancestral $omain !he enabling la to implement Section = is the .+. 3F1 of the Indigenous "eople-s ights# as passed in the 1 th Congress 155=0155# it as not passed on the 5th Congress because of the %uestion of the concept of ancestral $omain an$ ancestral lan$s !he ancestral $omain as de)ned refers to all areas generally belonging to ICCsJI"s comprising lands# inland aters# coastal areas# and natural resources therein# held under a claim of onership# occupied or possessed by ICCsJI"s themsel$es or through their ancestor. !he ancestral lan$s# refers to lands occupied and utili'ed by indi$iduals# families and clans ho are members of the ICCsJI"s since time immemorial# by themsel$es or through their predecessors in0 interest. In Cr". )s& Secretar# "etitioners assail the constitutionality of the folloing pro$isions of the I"+ and its Implementing ules on the ground that they amount to an unlaful depri$ation of the States onership o$er lands of the public domain as ell as minerals and other natural resources therein# in $iolation of the regalian doctrine embodied in Section /# +rticle GII of the Constitution. !he SC upheld the $alidity of the I"+ :a# on hat grounds? !he ancestral domains and the ancestral lands are not parts of the lands of the public domains. !hey are pri$ate lands and
they belong to the indigenous people. !he I"+ :a is an exception to the *ura regalia doctrine.
Section The "se of %ro%ert #ears a social f"nction& an$ all economic agents shall contri#"te to the common goo$- In$i)i$"als an$ %ri)ate gro"%s& incl"$ing cor%orations& coo%erati)es& an$ similar collecti)e organi.ations& shall ha)e the right to o'n& esta#lish& an$ o%erate economic enter%rises& s"#;ect to the $"t of the State to %romote $istri#"ti)e ;"stice an$ to inter)ene 'hen the common goo$ so $eman$sSection 2 is saying that the state can come in and re*ects free enterprise and laisse' faire. 9o ill you rationali'e this pro$ision to the free enterprise that pre$ails in our economy? It is as if saying that the state can inter$ene in the management of a free enterprise.
Section Sa)e in cases of here$itar s"ccession& no %ri)ate lan$s shall #e transferre$ or con)ee$ e+ce%t to in$i)i$"als& cor%orations& or associations !"ali*e$ to ac!"ire or hol$ lan$s of the %"#lic $omainIf the land is from a hereditary succession# it ill not be a part of lands of public domain. "ri$ate Corporation may no be %uali)ed to on pri$ate lands. Section F is telling ho are %uali)ed to ac%uire and buy pri$ate property are (ilipino Citi'ens# because under Section 3 (ilipino Citi'ens may ac%uire lands up to 1/ hectares by prescription grant or purchase. !he right to on a pri$ate land is no dependent on the %uali)cations to hold or ac%uire lands from a public domain.
" "ri$ate lands mean any land of pri$ate onership. !his includes both lands oned by pri$ate indi$iduals and lands hich are patrimonial property of the State or of municipal corporations. +n old case Bri)en,o )s- Register of Dee$s # absolutely foreigners cannot on pri$ate lands.
Cheeseman )s Interme$iate Co"rt of A%%eals # the prohibition of aliens not %uali)ed to on pri$ate lands applies also to a regime of a con*ugal partnership. (oreigner ith a (ilipina ife# they on pri$ate lands and the signature of the foreign husband is not needed in order to sell the pri$ate land. !he foreigner spouse does not ha$e the right of a con*ugal partner to consent to or not to consent to a disposition of a land.
Re%"#lic )s- Co"rt of A%%eals& the time to determine hether the person ac%uiring land is %uali)ed is the time hen the right to on is ac%uired and not the time to register. + speci)c example of this is a (ilipino ho bought a land and he registered it hen he as already a foreigner. !here is la that gi$es a former (ilipino Citi'en to ac%uire land. In Ramire. )s- $a $e Ramire.# aliens may ac%uire in cases of hereditary succession. 9oe$er it as clari)ed in this case. !he court ruled that the constit"tion %ro)ision $oes not e+ten$ to testamentar s"ccession it a%%lies onl to intestate s"ccession.
0alili )s CA # hen an alien ac%uires land by hereditary succession such alien cannot renounce the right to inherit in fa$or of one ho is not %uali)ed. What is prohibited by the Constitution is the $esting of !itle of :ands in fa$or of aliens. 9ence the prohibition in Section F# does not extend to lease of pri$ate lands. Anership of pri$ate lands ang pinag uusapan sa section F. 4sufractuary right o$er land may be con$eyed to an alien# this means right to use. Can a (ilipino corporation ac%uire a pri$ate land? !he anser is KES. Since section F ma&es capacity to ac%uire pri$ate land dependent to the capacity to ac%uire or hold lands of the public domain.
Section F Not'ithstan$ing the %ro)isions of Section of this Article& a nat"ral8#orn citi.en of the Phili%%ines 'ho has lost his Phili%%ine citi.enshi% ma #e a transferee of %ri)ate lan$s& s"#;ect to limitations %ro)i$e$ # la'Example of this is .+. 1F5
Section 9- The Congress ma esta#lish an in$e%en$ent economic an$ %lanning agenc hea$e$ # the Presi$ent& 'hich shall& after cons"ltations 'ith the a%%ro%riate %"#lic agencies& )ario"s %ri)ate sectors& an$ local go)ernment "nits& recommen$ to Congress& an$ im%lement contin"ing integrate$ an$ coor$inate$ %rograms an$ %olicies for national $e)elo%mentntil the Congress %ro)i$es other'ise& the National Economic an$ De)elo%ment A"thorit shall f"nction as the in$e%en$ent %lanning agenc of the go)ernmentSection 1: The Congress shall& "%on recommen$ation of the economic an$ %lanning agenc& 'hen the national interest $ictates& reser)e to citi.ens of the Phili%%ines or to cor%orations or associations at least si+t per centum of 'hose ca%ital is o'ne$ # s"ch citi.ens& or s"ch higher
%ercentage as Congress ma %rescri#e& certain areas of in)estments- The Congress shall enact meas"res that 'ill enco"rage the formation an$ o%eration of enter%rises 'hose ca%ital is 'holl o'ne$ # ili%inosWhat is the (ilipini'ation of certain areas of in$estment? Section 1 pro$ides the anser# because it mandates congress to reser$e to citi'ens of the "hilippines or to corporations or associations at least sixty per centum of hose capital is oned by such citi'ens# or such higher percentage as Congress may prescribe certain areas of in$estments.
In the grant of rights& %ri)ileges& an$ concessions co)ering the national econom an$ %atrimon& the State shall gi)e %reference to !"ali*e$ ili%inosWhen the shares of SIS in >anila "rince 9otel as being sold# a >alaysian in$estor bided and on but there as another bidder a (ilipino Citi'en named ,on Dose Kap. ut the shares ere gi$en to ,on Dose Kap because of the / nd paragraph of Section 1. !he court said that the / nd paragraph as a mandatory positi$e command hich is complete in itself.
Tana$a )s Angara& this is about eneral +greement on !ari7s and !rade. !he +" as challenged as unconstitutional treaty for placing foreign in$estors on the same le$el as (ilipinos. +" is agreement among nations hereby after the lapse of a number of years there ill be free aaala na ung tari7 protection of goods that are produced in the "hilippines. It gi$es undue ad$antage to (ilipinos. !he court said the / nd paragraph of Section 1 is enforceable only in regard to the grants of rights# pri$ileges and concessions co$ering national economy and patrimony and not to e$ery aspect of trade and commerce. It refers to exceptions rather than the rule. The State shall reg"late an$ e+ercise a"thorit o)er foreign in)estments 'ithin its national ;"ris$iction an$ in accor$ance 'ith its national goals an$ %rioritiesSection 11 No franchise& certi*cate& or an other form of a"thori.ation for the o%eration of a %"#lic "tilit shall #e grante$ e+ce%t to citi.ens of the Phili%%ines or to cor%orations or associations organi.e$ "n$er the la's of the Phili%%ines& at least si+t per centum of 'hose ca%ital is o'ne$ # s"ch citi.ens( nor shall s"ch franchise& certi*cate& or a"thori.ation #e e+cl"si)e in character or for a longer %erio$ than *ft ears- Neither shall an s"ch franchise or right #e grante$ e+ce%t "n$er the con$ition that it shall #e s"#;ect to amen$ment& alteration& or re%eal # the Congress 'hen the common goo$ so re!"ires- The State shall enco"rage e!"it %artici%ation in %"#lic "tilities # the general %"#lic- The %artici%ation of
foreign in)estors in the go)erning #o$ of an %"#lic "tilit enter%rise shall #e limite$ to their %ro%ortionate share in its ca%ital& an$ all the e+ec"ti)e an$ managing o/cers of s"ch cor%oration or association m"st #e citi.ens of the Phili%%ines !his section is a super
What is public utility? P"#lic "tilit is $e*ne$ as "tilit cor%orations 'hich ren$er ser)ices to the general %"#lic for com%ensation . Who may grant franchises? Essentially it is the Congress ho grants it# but this poer may be de$oid to agencies of the go$ernment li&e :!(# they ha$e the poer to issue franchises to public utility $ehicles. !he Energy egulatory oard has the poer to issue franchises to poer supplies and gasoline stations. !he moment for determining a corporation is entitled as a public utility is hen it applies for a franchise. What is meant by this? (oreign Corporation could construct and on facilities li&e a light rail system but it may not gi$e the franchise to operate the system. :!# >! are foreign oned# but the constitutional prohibition is on the operation of the franchise. (ranchises granted cannot be exclusi$e in character. (oreign in$estors may participate in a go$erning body of a public utility but only to the extent of their proportionate share of the capital. + commentary by ernardo Lillegas# it is clear that in the minds of the members of the Constitutional Commission that the ord 6capital@ in Section 11 refers not only in the $oting stoc& but in the total subscribed to the capital both common and preferred. It includes e$erything type of shares and stoc&.
All e+ec"ti)e an$ managing o/cers association m"st #e citi.ens of the Phili%%ines-
of
s"ch
cor%oration
or
Section 12 The State shall %romote the %referential "se of ili%ino la#or& $omestic materials an$ locall %ro$"ce$ goo$s& an$ a$o%t meas"res that hel% ma,e them com%etiti)e-
Section 13 The State shall %"rs"e a tra$e %olic that ser)es the general 'elfare an$ "tili.es all forms an$ arrangements of e+change on the #asis of e!"alit an$ reci%rocitSection 1K The s"staine$ $e)elo%ment of a reser)oir of national talents consisting of ili%ino scientists& entre%rene"rs& %rofessionals& managers& high8le)el technical man%o'er an$ s,ille$ 'or,ers an$ craftsmen in all *el$s shall #e %romote$ # the State- The State shall enco"rage a%%ro%riate technolog an$ reg"late its transfer for the national #ene*tThe %ractice of all %rofessions in the Phili%%ines shall #e limite$ to ili%ino citi.ens& sa)e in cases %rescri#e$ # la'Section 1 The Congress shall create an agenc to %romote the )ia#ilit an$ gro'th of coo%erati)es as instr"ments for social ;"stice an$ economic $e)elo%mentSection 1 The Congress shall not& e+ce%t # general la'& %ro)i$e for the formation& organi.ation& or reg"lation of %ri)ate cor%orations@o)ernment8o'ne$ or controlle$ cor%orations ma #e create$ or esta#lishe$ # s%ecial charters in the interest of the common goo$ an$ s"#;ect to the test of economic )ia#ilitSection 12 is a prohibition in Congress to pro$ide for the organi'ation or formation or regulation of pri$ate corporations. !he purpose is to insulate Congress from special pri$ate interest.
Section 1 In times of national emergenc& 'hen the %"#lic interest so re!"ires& the State ma& $"ring the emergenc an$ "n$er reasona#le terms %rescri#e$ # it& tem%oraril ta,e o)er or $irect the o%eration of an %ri)atel8o'ne$ %"#lic "tilit or #"siness a7ecte$ 'ith %"#lic interest !he president is the only one ho can on the pri$ately0oned public utility or business a7ected ith public interest because of the ord State. Is this *uris prudence? It is not. +s held in the case of Da)i$ )s- Arroo. andy ,a$id ho ons "hilippine ,aily In%uirer during /2 hile celebrating at E,S+ in (ebruray# this as the time hen >+ as almost ousted as "resident of the "hilippines. +nd a Coup as being planned. >+ issued a "residential "roclamation# declaring a state of emergency. ut the SC said that there is no such thing as state of emergency.
It is the Congress ho ill pro$ide for the ta&eo$er of the utilities. National State of emergency means threat from external aggression# calamities or natural disasters. 9o long is the ta&eo$er that as mentioned in Section 1F? Is that pro$ided in the la that authori'es the ta&eo$er?
Section 1F The State ma& in the interest of national 'elfare or $efense& esta#lish an$ o%erate )ital in$"stries an$& "%on %ament of ;"st com%ensation& transfer to %"#lic o'nershi% "tilities an$ other %ri)ate enter%rises to #e o%erate$ # the @o)ernment:i&eise section 1 must be similarly read li&e section 1F# meaning by enactment of Congress.
Section 19 The State shall reg"late or %rohi#it mono%olies 'hen the %"#lic interest so re!"ires- No com#inations in restraint of tra$e or "nfair com%etition shall #e allo'e$ Kou ill note# comparing the )rst sentence dealing ith monopolies may be alloed because it says the State shall regulate or prohibit monopolies hen the public interest so re%uires# if it is regulatory then it is alloed. ut for the / nd sentence# absolutely it is not alloed. 15F Constitution spea&s simply of >onopolies# in 15F3 Constitution spea&s of the "ri$ate >onopolies# e$en public monopolies are go$erned and regulated by Section 15.
The %"r%ose of Section 19 enco"rages com%etition& to ass"re a com%etiti)e econom #ase$ "%on the #elief that thro"gh com%etition %ro$"cers 'ill stri)e to satisf cons"mer 'ants at the lo'est %rice %ossi#le& in here there is reliance upon the operation of the mar&et system to decide hat shall be produced# ho resources shall be allocated in the production process and to hom $arious products ill be distributed. !he mar&et system relies on the consumer to decide hat and ho much shall be produced# and on competition# among producers ho ill manufacture it. When there is a combination in restraint of trade as unfair competition are prohibited by the Constitution? When there is only one seller or producer of product or ser$ice of hich there are no substitutes. It Is conspiracy to dominate trade and commerce in a commodity to such an extent that they are able # as a group# to exclude actual or potential competitors from the )eld# accompanied ith the intention and purpose to exercise such poer.
!here is no a :a *ust recently passed by the Congress. !he "hilippine Competition +ct# it is an +nti0!rust "olicy# "rohibiting anti0competiti$e arrangements beteen and among competitors and beha$iors as ell as other unfair business practices to protect consumer rights.
Section 2: The Congress shall esta#lish an in$e%en$ent central monetar a"thorit& the mem#ers of 'hose go)erning #oar$ m"st #e nat"ral8#orn ili%ino citi.ens& of ,no'n %ro#it& integrit& an$ %atriotism& the ma;orit of 'hom shall come from the %ri)ate sector- The shall also #e s"#;ect to s"ch other !"ali*cations an$ $isa#ilities as ma #e %rescri#e$ # la'- The a"thorit shall %ro)i$e %olic $irection in the areas of mone& #an,ing& an$ cre$it- It shall ha)e s"%er)ision o)er the o%erations of #an,s an$ e+ercise s"ch reg"lator %o'ers as ma #e %ro)i$e$ # la' o)er the o%erations of *nance com%anies an$ other instit"tions %erforming similar f"nctionsntil the Congress other'ise %ro)i$es& the Central
