ARTICLE XII, SECTIONS 17 & 18

QUESTIONS AND ANSWERS:

QUESTION no. 1: Following the interpretation of SECTION 17, Article XII, is
the President authorized during the emergency to temporarily take over
or direct the operation of any privately owned public utility or business
affected with public interest without authority from Congress?
ANSWER: NO. 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.
Likewise, without legislation, the President has no power to point out the types of
businesses affected with public interest that should be taken over. In short, the
President has no absolute authority to exercise all the powers of the State under
SECTION 17, Article XII in the absence of an emergency powers act passed by
Congress.
QUESTION no. 2: What is the difference between Sec. 17 and Sec. 18 as to
the operation of privately-owned public utilities/vital industries by the
Government?
ANSWER: The difference between the two is that in Sec. 17, there is temporarily
taking over of privately-owned public utilities by the Government, while in Sec. 18,
the Government can permanently operate these vital industries upon payment of
just compensation to the owner. QUESTION no. 3: What are the inherent powers of
the state that are being exercised in Sec. 17 and Sec. 18? ANSWER: The Police
Power of the State is being exercised in Sec. 17, while the Power of Eminent Domain
is being exercised in Sec. 18.

ARTICLE XII, SECTIONS 19 & 20

QUESTION No. 1 When can there be monopoly?
ANSWER: There is monopoly where a single seller or a group of sellers acting in
concert actually controls or possesses the power to control market prices.
QUESTION NO. 2: Is there a limit to the amount of notes and coins that the
BSP may issue?
ANSWER: The total amount of banknotes and coins that the BSP may issue shall not
exceed the total assets of the BSP.

QUESTION NO. 3: Is there a limit to the legal tender power of Philippine

currency notes and coins?
ANSWER: Pursuant to BSP Circular No. 537, series 2006, coins in denomination of
1-, 5-, and 10 piso shall be legal tender in amounts not exceeding P1,000.00 while
coins in denomination of 1-, 5-, and 10-, and 25- sentimo shall be legal tender in
amounts not exceeding P100.00.

ARTICLE XII, SECTION 21

QUESTION NO. 1 How are foreign loans incurred?
ANSWER: Foreign loans may only be incurred in accordance with law and the
regulation of the monetary authority. (SECTION 21, Art. 12, 1987 Constitution)
Under the BSP Rules on Foreign Loans, foreign/foreign currency denominated
borrowings requires approval and registration with the Bangko Sentral ng Pilipinas
(BSP). The approval/registration process helps control the size of the countrys
obligations and keep debt service burden at manageable levels, channel loan
proceeds to priority purposes/projects supportive of the countrys development
objectives and promote optimum utilization of the countrys foreign exchange (FX)
resources.
SECTION 20, Article VII and SECTION 21, Article 12 of the Philippine Constitution
pertaining to the authority of the President to incur and guarantee foreign loans on
behalf of the RP with prior concurrence of the Monetary Board, and subject to such
limitations as provided by law;

QUESTION NO. 2: What is the effect of foreign loans to the Philippine economy?
ANSWER: Generally, foreign aid (consist of foreign grants-not repaid and foreign
loans repaid) / ODA (Official Development Assistance) does not per se affect any
future improvement in the rate of economic growth of the country. However, if such
will be used appropriately, this will trigger the key to higher domestic resource
mobilization which, in turn, is the foundation for a self-sufficient economic growth.
Vice versa, the government's failure to put said funds in productive use on a timely
manner will have an effect of compromising whatever gains which may have been
realized and negatively affect the economy.

UNITED NATIONS CONVENTION ON

THE LAW OF THE SEA (UNCLOS)

QUESTION NO. 1: Does artificial islands possess the status of an island?

ANSWER: NO. UNCLOS states that artificial islands do not possess the status of
islands, and are not allowed to have a territorial sea. It also states that only
coastal state has the right to build artificial islands in its exclusive economic zone.
QUESTION NO. 2: Why Chinas claims in South China Sea are invalid?
ANSWERS:
Chinas historic rights claim violates Article 57 of the UNCLOS, containing the
provision of the 200 nautical miles EEZ;
Some parts of the South China Sea are rocks that therefore have no EEZ
China has breached the Convention by interfering with the Philippines exercise of
its sovereign rights and jurisdiction;
Destructive fishing practices done by China brought about permanent damage on
coral reefs and marine life, including some areas within the Philippines EEZ.

PHILIPPINE CLEAN AIR ACT (R.A.

8749)
(No question and answer portion in the report. I devised my own question below)
QUESTION NO. 1: WON a contract could be unilaterally cancelled by the
Government on the ground that incineration is prohibited by the Clean Air Act?
ANSWER: Section 20 does not absolutely prohibit incineration as a mode of waste
disposal; rather only those burning processes which emit poisonous and toxic fumes
are banned.
Section 20. Ban on Incineration. - Incineration, hereby defined as the burning of
municipal, biomedical and hazardous waste, which process emits poisonous and
toxic fumes is hereby prohibited; Provided, however, That the prohibition shall not
apply to traditional small-scale method of community/neighborhood sanitation
"siga", traditional, agricultural, cultural, health, and food preparation and
crematoria; Provided, Further, That existing incinerators dealing with a biomedical
wastes shall be out within three (3) years after the effectivity of this Act; Provided,
Finally, that in the interim, such units shall be limited to the burning of pathological
and infectious wastes, and subject to close monitoring by the Department. xxxx

QUESTION NO. 2: What are the prohibited Acts:

ANSWER: Prohibited Acts (Section 13, Part VII DENR Administrative Order No. 200081)
(a) Fugitive Particulates emission;
(b) Volatile Organic Compounds or Organic Solvent Emissions;
(c) Discharge of contaminants and other materials which constitute nuisance;
(d) Open Burning
(e) General Restrictions (Read page 135)
QUESTION NO. 3: Where does smoking is prohibited (SMOKING BAN)?
Smoking shall be banned inside a public building or an enclosed public place
including public vehicles and other means of transport or in any enclosed area
outside of ones private residence, private place of work or any duly designated
smoking area which shall be enclosed.

SMALL-SCALE MINING
QUESTION NO. 1: Is the Filipino-First Policy validly applicable in P.D. No. 1899, as
well as in R.A. No. 7076 or the "Peoples Small-Scale Mining Act of 1991"?
ANSWER: YES. Sec 2, Art XII of the 1987 Philippine Constitution states that: "The
Congress may, by law, allow small-scale utilization of natural resources by Filipino
citizens, X X X". Although there are differences in the qualifications of applicants as
provided in both laws, both are in consonance with the Filipino-First Policy giving
preference to Filipino citizens to utilize such resources.

PHILIPPINE MINING ACT OF 1995

(R.A. NO. 7942)
(NO QUESTION AND ANSWER PORTION IN THE REPORT. I JUST SUMMARIZED THE
FF.:)

NATURE

Exploration
Permit

Mineral
Agreement

Financial or
Technical
Assistance
Agreement
(FTAA)

Mineral
Processing
Permit

An Exploration
Permit (EP) is

A Mineral
Agreement is an

A Financial or
Technical

A Mineral
Processing

QUALIFIE
D
PERSON
TO APPLY

an initial mode
of entry in
mineral
exploration
allowing a
Qualified Person
to undertake
exploration
activities for
mineral
resources in
certain areas
open to mining
in the country.

agreement between
a Contractor and
the Government
wherein the
Government grants
to the Contractor
the exclusive right
to conduct mining
operations within,
but not title over,
the contract area.
Classification:
1) Mineral
Production
Sharing
Agreement
(MPSA)
2) CoProduction
Agreement
(CA)
3) Joint Venture
Agreement
(JVA)

Assistance
Agreement
may be
entered into
between a
Contractor
and the
Government
for the largescale
exploration,
development
and utilization
of gold,
copper, nickel,
chromite,
lead, zinc and
other minerals
except for
cement raw
materials,
marble,
granite, sand
and gravel
and
construction
aggregates.

a) any Filipino
citizen of legal
age and with
capacity to
contract; b) a
Filipino-owned
Corporation,
Partnership,
Association or
Cooperative, at
least sixty
percent (60%)
of the capital is
owned by

Individual - a
Filipino citizen of
legal age and with
capacity to
contract; or b)
Corporation,
Partnership,
Association or
Cooperative
organized or
authorized for the
purpose of
engaging in mining,
duly registered in

a) any Filipino
citizen of legal
age and with
capacity to
contract; b) a
Filipino-owned
Corporation,
Partnership,
Association or
Cooperative,
at least sixty
percent (60%)
of the capital
is owned by

Permit (MPP)
refers to the
permit granted
to a Qualified
Person for
mineral
processing.
Mineral
Processing
means the
milling,
beneficiation,
leaching,
smelting,
cyanidation,
calcination or
upgrading of
ores, minerals,
rocks, mill
tailings, mine
waste and/or
other
metallurgical
byproducts or
by similar
means to
convert the
same into
marketable
products.
a) Individual - a
Filipino citizen
of legal age
and with
capacity to
contract; or b)
Corporation,
Partnership,
Association or
Cooperative
organized or
authorized for
the purpose of
engaging in

TERM

Filipino citizens,
organized or
authorized for
the purpose of
engaging in
mining with
technical and
financial
capability to
undertake
mineral
resources
development
and duly
registered in
accordance
with the law; or
c) a foreignowned
Corporation,
Partnership,
Association or
Cooperative
duly registered
in accordance
with law and in
which less than
fifty percent
(50%) of the
capital is owned
by Filipino
citizens.

accordance with
law, at least sixty
percent (60%) of
the capital of which
is owned by Filipino
citizens.

two (2) years

from date of its
issuance,
renewable for
like periods but
not to exceed a
total term of
four (4) years
for nonmetallic

term not exceeding

twenty-five (25)
years from the date
of its execution, and
renewable for
another term not
exceeding twentyfive (25) years
under the same

Filipino
citizens,
organized or
authorized for
the purpose of
engaging in
mining with
technical and
financial
capability to
undertake
mineral
resources
development
and duly
registered in
accordance
with the law;
or c) a
Foreign-owned
Corporation,
Partnership,
Association or
Cooperative
duly
registered in
accordance
with law and
in which less
than fifty
percent (50%)
of the capital
is owned by
Filipino
citizens.
twenty-five
(25) years
from the date
of its
issuance, and
renewable for
another term
not exceeding
twenty-five

mining, duly
registered in
accordance
with law, either
Filipino or
foreign-owned.

five (5) years

from date of
issuance
thereof,
renewable for
like periods but
not to exceed a
total term of
twenty-five

mineral
exploration or
six (6) years for
metallic mineral
exploration.

terms and
conditions, without
prejudice to
changes mutually
agreed upon by the
Government and
the Contractor.
After the 50 year
term of the Mineral
Agreement, the
operation of the
mine may be
undertaken by the
Government or
through a
Contractor.

(25) years.

(25) years:
Provided, That
no renewal of
Permit shall be
allowed unless
the Permit
Holder has
complied with
all the terms
and conditions
of the Permit
and has not
been found
guilty of
violation of any
provision of the
Act and these
implementing
rules and
regulations.

ECOLOGICAL SOLID WASTE

MANAGEMENT ACT OF 2000
Solid Waste

Hazardous Waste

all discarded household, commercial

waste, non-hazardous institutional
and industrial waste, street
sweepings, construction debris,
agricultural waste, and other
nonhazardous/non-toxic solid waste.
The term "solid waste" as used in this
Act shall not include: (1) Waste
identified or listed as hazardous
waste of a solid, liquid, contained
gaseous or semisolid form; (2)
Infectious waste from hospitals such
as equipment, instruments, utensils,
and fomites of a disposable nature
from patients who are suspected to

Refers to solid waste management or

combination of solid waste which
because of its quantity, concentration
or physical, chemical or infectious
characteristics may: cause, or
significantly contribute to an increase
in mortality or an increase in serious
irreversible, or incapacitating
reversible, illness; or pose a
substantial present or potential
hazard to human health or the
environment when improperly
treated, stored, transported, or
disposed of, or otherwise managed;

have or have been diagnosed as

having communicable diseases and
must therefore be isolated as
required by public health agencies,
laboratory wastes such as
pathological specimens; and (3)
Waste resulting from mining
activities, including contaminated soil
and debris.
PROHIBITED ACTS
1) Littering, throwing, dumping of waste matters in public places, such as
roads, sidewalks, canals, esteros or parks, and establishment, or
causing or permitting the same;
2) Undertaking activities or operating, collecting or transporting
equipment in violation of sanitation operation and other requirements
or permits set forth in or established pursuant to this act;
3) The open burning of solid waste;
4) Causing or permitting the collection of nonsegregated or unsorted
wastes;
5) Squatting in open dumps and landfills;
6) Open dumping, burying of biodegradable or nonbiodegradable
materials in flood prone areas;
7) Unauthorized removal of recyclable material intended for collection by
authorized persons;
8) The mixing of source-separated recyclable material with other solid
waste in any vehicle, box, container or receptacle used in solid waste
collection or disposal.
9) Establishment or operation of open dumps as enjoined in this Act, or
closure of said dumps in violation of Sec. 37.
10)
The manufacture, distribution or use of nonenvironmentally
acceptable packaging materials First Offense
11)
Importation of consumer products packaged in nonenvironmentally acceptable materials.
12)
Importation of toxic wastes misrepresented as "recyclable" or
"with recyclable content"
13)
Transport and dumping in bulk of collected domestic, industrial,
commercial, and institutional wastes in areas other than centers or
facilities prescribe under this Act.
14)
Site preparation, construction, expansion or operation of waste
management facilities without an Environmental Compliance
Certificate required pursuant to Presidential Decree No. 1586 and this
Act and not conforming with the land use plan of the LGU
15)
The construction of any establishment within two hundred (200)

meters from open dumps or controlled dumps, or sanitary landfill.

16)
The construction or operation of landfills or any waste disposal
facility on any aquifer, groundwater reservoir, or watershed area and
or any portions thereof

THE PHILIPPINE FISHERIES CODE

OF 1998
QUESTION NO. 1: Is the right to fish within Philippine waters exclusively reserved
for Filipinos?
ANSWER: General Rule: Yes. Exception: Foreigners conducting documentary or
scientific research for the benefit of Filipinos/Filipino fisherfolk may be allowed
subject to guidelines that shall be promulgated by the Department.
QUESTION NO. 2. Can a private person perform a warrantless arrest on those
engaged in acts prohibited by the Fisheries Code?
ANSWER: Yes, provided the circumstances fall under those enumerated in sec. 5,
Rule 113 of the Rules of court. Under Section 5, Rule 113 of the Revised Rules of
Criminal Procedure, a peace officer or a private person may, without a warrant,
arrest a person: (a) When, in his presence, the person to be arrested has
committed, is actually committing, or is attempting to commit an offense; (b) When
an offense has in fact just been committed, and he has personal knowledge of facts
indicating that the person to be arrested has committed it; and (c) When the person
to be arrested is a prisoner who has escaped from a penal establishment or place
where he is serving final judgment or temporarily confined while his case is
pending, or has escaped while being transferred from one confinement to another.

PETROLEUM ACT OF 1949

(REPUBLIC ACT NO. 387)
(NO QUESTION AND ANSWER PORTION)