Article XII National Economy and Patrimony

Section 1.

The goals of the national economy are a

• More equitable distribution of opportunities, income, and wealth

• Sustained increase in the amount of goods and service produced by the nation for the benefit of the
people
• Expanding productivity as the key to raising the quality of life for all, esp the underprivileged

The State shall promote:

• Industrialization and full employment based on:

o sound agricultural development
o agrarian reform

through industries that

• make full and efficient use of human and natural resources

• competitive in both domestic and foreign markets

The State shall protect Filipino enterprises against unfair foreign competition and trade practices

In the pursuit of these goals, all sectors of the economy and all regions of the country shall be given optimum
opportunity to develop.

Private enterprises, including:

• corporations
• cooperatives
• similar collective organizations

shall be encouraged to broaden the base of their ownership

Notes:

3 goals:

• dynamic productivity and a more equitable distribution of what is produced

o distribution among geographic regions
• complementarity between industrialization and agricultural development
o what is dictated by the common good
• protective of things Filipino
o protecting both Filipino consumer and producer
▪ against flood of low quality products
• healthy degree of competition, even foreign is allowed
▪ unfair foreign competition and trade practices
• anything that hurts Filipino enterprises

Sec 2.

All lands of the:

• public domain

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 • waters
• minerals
• coal
• petroleum
• other mineral oils
• all forces of fauna
• other natural resources

are owned by the State.

With the exception of agricultural lands, all other natural resources shall not be alienated.

The

• exploration
• development
• utilization

of natural resources shall be under the full control and supervision of the State.

The State may:

• directly undertake such activities

• enter into:
o co-production
o joint venture
o production-sharing agreements
o with:
▪ Filipino citizens
▪ Corporations or associations at least 60% of whose capital is owned by such citizens

Such agreements may be:

• for a period not exceeding 25 years

• renewable for not more than 25 years

under such terms and conditions as may be provided by law.

In cases of water rights for:

• irrigation
• water supply
• fisheries
• industrial uses other than development of water power,

beneficial use may be the measure and limit of grant.

The State shall protect the nation’s marine wealth in its:

• archipelagic waters
• territorial sea
• exclusive economic zone

and reserve its use and enjoyment exclusively to Filipino citizens.

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The Congress may, by law, allow:

• small-scale utilization of natural resources by Filipino citizens

• cooperative fish farming
o priority to subsistence fishermen and fish workers in rivers, lakes, bays, and lagoons

The President may enter into agreements with foreign-owned corporations involving either:

• technical
• financial assistance

for:

• large-scale exploration
• development
• utilization of:
o minerals
o petroleum
o other mineral oils according to the general terms and conditions provided by law

based on real contributions to the economic growth and general welfare of the country.

In such agreements, the State shall promote the development and use of local scientific and technical resources.

The President shall notify the Congress of every contract entered into in accordance with this provision, within 30
days from its execution.

Notes

Imperium v. dominum

• imperium - government authority possessed by the state, in the concept of sovereignty

• dominum – feudal theory of jura regalia, all lands were held from the Crown (foundation of first sentence
of section 2)

OWNERSHIP IS VESTED IN THE STATE

• any person claiming ownership of a portion of public domain must be able to show title from the state
acdg to any of the recognized modes of acquisition of title
• if a person is the owner of agricultural land (where there are minerals) the minerals belong to the state,
the State may discontinue the use of the land to extract the minerals, WITH COMPENSATION
• LIMITS
o Only agricultural lands of the public domain may be alienated. ALL OTHER NATURAL RESOURCES
MAY NOT BE

Exploration, development, utilization

• Only Filipinos and Filipino corporations may engage in the development and utilization of those natural
resources

2 LEVELS OF CONTROL

• Control over the corporation, which may engage w/ the State in co-production, joint venture, production-
sharing agreements
o Individuals – Filipino citizens

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 o Corporation - 60% Filipino
• Control of the “co-production, joint venture, production-sharing” operation
o Full control and supervision
o “control” – meant control as it operates in the corporate world
o Not 100% control

AS LONG AS NATURAL SOURCES ARE INVOLVED, STATE MUST ALWAYS HAVE SOME CONTROL

• Not retroactive

Agreements for the exploitation of natural resources CAN ONLY HAVE THE LIFE OF ONLY 25 YEARS

• Reasonable time to attract capital

• Enable to recover investment

OTHER LIMITATIONS

• 25 year-limit not applicable to water rights > beneficial use may be the measure and limit
o But water rights for waterpower, 25 year limit
• Use and enjoyment of marine wealth
o For the exclusive use of Filipno citizens, aliens not allowed even if they pay rent
o Economic zone part of high sees > subject to general principles of international law
• Subsistence fishermen and fish workers > priority
• Agreements w/ foreign-owned corporations involving technical/financial assistance > State shall promote
the development and use of local scientific and technical resources
• Notify Congress of every contract

Sec 3.

Lands of the public domain are classified into:

• Agricultural
• Forest
• Timber
• Mineral lands
• National parks

Agricultural lands of the public domain may be further classified by law acdg to the uses to which they may be
devoted.

Alienable lands of the public domain shall be limited to agricultural lands

Private corporations or associations may not hold such lands of the public domain except by lease for a period:

• not exceeding 25 years

• renewable for not more than 25 years
• not to exceed 1000 hectares in area

Citizens of the Philippines may:

• lease not more than 500 hectares

• acquire not more than 12 hectares thereof

by:

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 • purchase
• homestead
• grant

Taking into account the requirements of:

• conservation
• ecology
• development
• agrarian reform

The Congress shall determine, by law, the size of the lands of the public domain which may be:

• acquired
• developed
• held
• leased

and the conditions therefor.

Notes:

• classifying lands > administrative agencies tasked by statutes

o COURTS CANNOT INTERFERE
• In the absence of classification, land remains unclassified
• Executive’s power to classify lands not inherent > DELEGATED POWER
o Recommendation of the department head

FOREST LANDS

• President has power to withdraw forest reserves more valuable for mineral contents
• All that is required is recommendation of DENR secretary

Classification > descriptive of the legal nature of the land, NOT WHAT IT LOOKS LIKE

• Must be categorical
o Either agricultural or mineral, not ½

Classified acdg to the use to which they may be devoted

• Alienable/inalienable

Disposition of lands of the public domain

• Only agricultural lands may be alienated

o All others are inalienable
• Only public corporations and qualified individuals may acquire alienable lands of public domain
o Corporations can hold alienable lands only be lease
o BAN ON ACQUISITION applies to private corporations, does not apply to public corporations
▪ Acquisition open only to public corporations and qualified natural persons
o Corporations cannot acquire land of the public domain, BUT THEY CAN ACQUIRE PRIVATE LAND
• Size of land acquired or leased
o Private corporations > lease no more than 1000 hectares
o Individuals > lease no more than 500 hectares

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 o Individuals > acquisition limited to 12 hectares
o Title to alienable public land transfers to individual, segregated from lands of public domain
▪ Becomes private land
▪ State may follow such lands and impose limitations on them
• To insure attainment of objective of preventing contentratin of land to a single
individual
• Discretion of Congress to open public lands for lease or acquisition
o To determine whow much of alienable public land may be opened to private acquisition or lease
▪ Subject to requirements of conservation, ecology, development, agrarian reform
• Citizenship limitation
o NO MENTION
o As a GR: alienable lands only to those qualified under Section 2
▪ Corporations may not lease inalienable lands, alienable lands are open to lease
o Section 3 > CORPORATIONS CAN LEASE

Section 4.

The Congress shall determine by law the specific limits of:

• Forest lands
• National parks

marking clearly their boundaries on the ground.

Forest lands and national parks shall be:

• Conserved
• May not be increased nor diminished, except by law

The Congress shall provide, for such periods as it may determine measures to prohibit logging in endangered
forests and in watershed areas

Notes:

• Discretion is given to congress about what should be done in delimiting areas and time limits for
exploitation
• Forest lands converted to parks > logging cannot be permitted
• Reclaimed land is public land, MUST BE CLASSIFIED AS ALIENABLE BEFORE IT CAN BE PRIVATE

Section 5.

The State, subject to:

• Provisions of the Constitution

• National development policies and programs

Shall protect the rights of indigenous cultural communities to their ancestral lands to ensure their:

• Economic
• Social
• Cultural

well-being.

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The Congress may provide for the applicability of customary laws governing property rights/relations in
determining the ownership and extent of ancestral domain.

Notes:

• Ancestral domain – generally belongs to ICCs, IPs, occupied or possessed by themselves through their
ancestors, including lands which may no longer be exclusively occupied by IPs, but they traditionally had
access to
o Broader concept
• Ancestral lands – land occupied, possessed, utilized by individuals, families, clans, who are members of Ips
since time immemorial under claims of individual or traditional group ownership
o Narrower concept – limited to lands that are also utilized
• Authorizes Congress to prescribe how priorities are determined in case of conflict betwee civil and
customary law
• RA 8371

Section 6.

The use of property bears a social function, all economic agents shall contribute to the common good

Individuals and private groups, including:

• Corporations
• Cooperatives
• Similar collective organizations

Shall have the right to:

• Own
• Establish
• Operate

Economic enterprises, subject to the duty of the state to:

• promote distribute justice and

• to intervene when the common good so demands

***when needed for the common good, the state may intervene

Section 7.

Save in cases of hereditary succession, no private lands shall be transferred or conveyed except to:

• individuals
• corporations
• associations

qualified to acquire/hold lands of the public domain.

Notes:

• private land – any land of private ownership

o owned by private individuals
o patrimonial property of the State or municipal corporations
• who may acquire???

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 o Those who are qualified to acquire/hold lands of the public domain
o Since aliens are disqualified from acquiring/holding lands of the public domain, they are also
disqualified to acquire private lands
• EXCEPTION
o Aliens may acquire private land in cases of hereditary succession
o Such alien cannot renounce the right to inherit in favor of one who is not qualified
• Can a Filipino corporation acquire land?
o Private corporations can still acquire private land (bawal lang public land, but they can lease)
▪ They can “hold” lands of the public domain, only by lease
▪ Must be a Filipino corporation
• Sale of private land made in violation of Sec 7 is null and void
o Transfer to a Filipino of land illegally acquired by an alien cures the prior illegality

Section 8

Notwithstanding the provisions of sec 7, a natural-born citizen of the PH who has lost his PH citizenship may be a
transferee of private lands, subject to limitations provided by law

Section 9

The Congress may establish an independent economic and planning agency headed by the President, which shall:

• after consultation with the appropriate:

o Public agencies
o Various private sectors
o Local government units
• Recommend to Congress and
• implement continuing integrated and coordinated programs and policies for national development

Until Congress provides otherwise, the National Economic and Development Authority (NEDA) shall function as
the independent planning agency of the government.

Notes:

• NEDA
o Creation is optional
o Present NEDA will continue, which is recommendatory to Congress
o Under the President and dependent on the President who is the chair

Section 10

The Congress shall, upon recommendation of the economic and planning agency, when the national interest
dictates, reserve to:

• Citizens of the PH
• Corporations or associations at least 60% of capital owned by PH citizens, or higher percentage as
Congress may prescribe

Certain areas of investments

The Congress shall enact measures that will encourage the formation and operation of enterprises whose capital
is wholly owned by Filipino

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In the grant of rights, privileges, and concessions covering the national economy and patrimony, the state shall
give preference to qualified Filipinos

The State shall regulate the exercise of authority over foreign investments within its national jurisdiction and in
accordance w/ national goals and priorities

Notes:

• Filipinization of areas of investment

o “upon the recommendation of the economic and planning agency” – limit on the power of
Congress
o Give preference to qualified Filipinos in the grant of rights and privileges, even if foreigner is
“more qualified”
o Regulation of the entry of foreign investments/foreign investments already in place
▪ Divestment schemes w/ due regard for just compensation

Setion 11 (PUBLIC UTILITY)

No:

• Franchise
• Certificate
• Any other form of authorization

For the operation of a public utility shall be granted except:

• to citizens of the PH or
• to corporations or associations organized under the laws of the PH at least 60% of whose capital is owned
by such citizens

nor shall such franchise, certificate, or authorization be:

• exclusive in character
• for a longer period than 50 years

neither shall any such franchise or right be granted except under the condition that it shall be subject to:

• amendment
• alteration
• repeal

by the Congress when the common good so requires.

The State shall encourage equity participation in public utilities by the general public

The Participation of foreign investors in the governing body of any public utility enterprise shall be:

• limited to their proportionate share in its capital, and

• all executive and managing officers of such corporation or association must be citizens of the PH

Notes

• filipinizaton – filipino ownership of public utilities

• public utilities – utility corporation, renders service to the general public for compensation
o not confined to privileged individuals but is open to the public

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 o depends on whether it is open to serve all members of the public
o commodity or service of public consequence (e.g. electricity, gas, water, transportation,
telephone, telegraph service)
• does not determine who may grant public utility franchises
o only about the CAPACITY to acquire a public utility franchise
• Congress has authority to grant franchises, but they can also delegate to government agencies
• Filipinization of utilities
o Nationalization
o Authorization for the operation of public utilities should be granted only to “citizens of PH and to
corporations 60% are filipinos”
▪ Recognizition of the sensitive and vital position of public utilities in the national
economy and security
• Corporation/association is considered Filipino if:
o Organized under PH laws
o At least 60% owned by Filipino citizens
▪ Healthy to attract foreign investments
• Does not prohibit mere formation of public utility corporation w/o required proportion of Filipino capital
• Franchises granted by the government cannot be exclusive in character
• Equity participation
• Authorizes foreign investors to participate in the governing body of public utilities to the extent of their
proportional share in the capital

Section 12.

THe State shall promote the preferential use of:

• Filipino labor
• Domestic materials
• Locally produced goods

And adopt measures that help make them competitive

Notes:

• Filipino first policy – native products and domestic entities preference in government purchases
o can extend beyond Filipino-first transactions and into private transactions

Section 13.

The State shall pursue a trade policy that:

• serves the general welfare

• utilizes all forms and arrangements of exchange on the basis of equality and reciprocity

Notes:

• forms and arrangements in economic exchange

o not to tie down the country to any one form
o quality – shall serve the general welfare, protection of local enterprises

Section 14

The sustained development of a reservoir of national talents consisting of:

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 • Filipino scientists
• Entrepreneurs
• Professionals
• Managers
• High-level technical manpower
• Skilled workers and craftsmen in all fields

Shall be promoted by the State

The State shall:

• encourage appropriate technology

• regulate its transfer for the national benefit

The practice of all professions in the PH shall be limited to Filipino citizens save in cases prescribed by law

****also technological independence

Section 15

The Congress shall create an agency to promote the viability and growth of cooperatives as instruments for social
justice and economic development

Section 16

The Congress shall not, except by general law, provide for the:

• formation
• organization
• regulation

of the private corporations

GOCCs may be created or established by special charters in the interest of the common good and subject to the
test of economic viability.

Notes:

• to insulate Congress against pressures from special interests

• GOCCs must show capacity to function efficiently
o Economic viability – more than financial viability, capability to make profit and generate benefits
not quantifiable in financial terms

Section 17

In times of national emergency, when the public interest so requires, the State may:

• During the emergency

• 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.

Notes:

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 • national emergency – encompassing threat from external aggression, calamities, natural disasters, but not
strikes
• duration of the emergency – duration of the takeover
• authorization can come from president, only if Congress grants emergency powers
o when given to her by Congress in a state of emergency declared by Congress
• “public interest” – lots of repercussions to the public
o Public utility
o Other businesses which may partake of the charactersistcs of public utility, but not yet
considered public utility
o Any business which concerns a “mass-based consumer group” among low income groups

Section 18 (nationalization)

The State may:

• in the interest of national welfare or defense, establish and operate vital industries and upon payment
of just compensation, transfer to:
o public ownership utilities
o private enterprises
• to be operated by the government

Notes

• nationalization of industries – state ownership of industries and public utilities

o instrument towards Filipinization
o private ownership remains protected
• total nationalization
• decision to nationalize may be made by the state through Congress on broad grounds of interest of
national welfare or defense

Section 19

The State shall regulate or prohibit monopolies when the public interest so requires. No combinations in restraint
of trade or unfair competitions shall be allowed

Notes:

• Market system relies on the consumer

• Monopolies not necessarly prohibited, State mut still decide whether public interest demands that
monopolies be regulated
• Contracts requiring exclusivity not void, but must be viewed thru all circumstances

Section 20

The Congress shall establish an independent central monetary authority, the members of whose governing board
must be:

• Natural-born Filipino citizens

• Of known:
o Probity
o Integrity
o Patriotism

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Majority of whom shall come from the pivate sector.

They shall also be subject to such other qualifications and disabilities as may be prescribed by law.

The authority shall provide policy direction in the areas of:

• Money
• Banking
• Credit

It shall have supervision over the operations of banks and exercise such regulatory powers as may be provided by
law:

• over the operations of finance companies

• other institutions performing similar functions.

Until the Congress otherwise provides, the central Bank of the PH, operating under existing laws, shal function as
the Central Monetary Authority

Notes

• independent
• assure independence of the central monetary authority from all sectors and executive department
• Congress fix term of members and give tem security of tenure
o Not same status as constitutional commissions
• Board of directors of BSP > monetary board

Section 21

Foreign loans may only be incurred:

• in accordance with law

• regulation of the monetary authority

information on foreign loans obtained or guaranteed by the government shall be made available to the public.

Notes

• foreign loans can only be obtained in accordance w/ law and regulations

• information on public foreign loans and government guaranteed loans must be made public
• nation’s ability to pay
• foreign borrowings are metters of interest to the majority who have to shoulder the payment
• FOREIGN LOANS ONLY W/ CONCURRENCE OF THE MONETARY BOARD

Section 22

Acts which circumvent or negate any of the provisions shall be considered inimical to the national interest and
subject to criminal and civil sanctions, as may be provided by law

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 Article XVI General Provisions

Section 1.

The flag of the PH shall be:

• Red
• White
• Blue
• With a sun
• three stars

As consecrated and honored by the people and recognized by law

Notes

• 8 rays – 8 provinces that were the first to rise against Spain

• 3 stars – Luzon, Visayas, Mindanao
• Design – changed by constitutional amendment

Section 2.

The Congress may, by law, adopt a new:

• name for the country

• A national anthem
• National seal

Which shall be truly reflective and symbolic of the:

• Ideals
• History
• Traditions

Of the people. Such law shall take effect only upon its ratification by the people in a national referendum

Section 3.

The State may not be sued without its consent

Notes

• Sovereign immunity
• Question of whether the suit is one against the stae, or whether the state has consented to be sued
o If against an officer of the state, enquiry must be made whether ultimate liability will fall on the
officer or government
• Unincorporated agencies
o Governmental v proprietary functions
o Mobil Philippines v. CAS – if the proprietary and non-governmental function is undertaken as an
incident to its governmental function, immunity is not lost
• Government officers
o Syquia v. Almeda-Lopez
▪ Immunity of foreign government from suit
▪ One against a Commanding General and other officers of the Army

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 ▪ Real party defendant in interest is USA, bc damages will be paid by US government
▪ US government has not given its consent
▪ Obvious is the lack of jurisdiction of the courts of the citizen’s country
o If government no longer has an interest to protect in the outcome of a suit, suit against officer
will not be considered suit against government
▪ Officer or agent and the relief demanded by the state requires no affirmative action on
the part of the state
▪ Or affirmative discharge of obligation which belongs to the state
▪ Eventhough officers who are made defendants disclaim any personal interst in
themselves and claim to hold or act only by virtue of title of the state
o Government officer seizes property of a citizen, no relief is demanded which requires affirmative
action on the part of the state > suit is only for officers
o Liability of officer is personal, arising frm tortious act in the performance of duties > cannot plead
immunity
o Ministerio v. CFI – land was taken by government w/o benefit of expropriation
▪ Owner filed suit to collect compensation
▪ Government said they have sovereign immunity
▪ SC held that constitutional mandate that owner must be compensated should be
respcted > suit should not be dismissed
• There should be observance of procedural regularity
▪ Recovery of disputed lot no longer possible because it had long been used
▪ Circumstances were responsible for convincing the Court that govt could not plead
sovereign immunity
▪ When govt takes property for public use, they submit to the jurisdiction of the court
o Rule may be relaxed if strict application will result in an injustice
▪ Cannot serve as an instrument for perpetrating an injustice on a citizen
• Suits against GOCC
o If govt engages in business through instrumentality of a corporation, govt divests itself of
sovereign character
o Business character of the corporation and not its corporate character which divests it of the
immunity
o Express grant authority “to sue or to be sued”
o Government conducts business operation through an entity, such entity enjoys no immunity
even if there is no express grant of authority to sue or to be sued
o If government establishes a corporation for a governmental purpose, may be sued if the law
creating it makes it suable; if not, then there is immunity
o Municipal corporations share in immunity > cannot be made liable for torts except when law
expressly makes them so liable
• Waiver of imunity
o Executive officer has no authority to make the waiver
o Mere failure of executive officer to assert immunity does not divest the state of such immunity
o Waiver must be controlled by legislature
o Ministerio v. CFI – act of expropriation by executive officer places the government under
jurisdiction of courts (no solid foundation)
▪ Fairness require that ad owner be compensated
o Consent to be sued may be given by legislature through special law or general law
▪ Special law – private bill, authorizing individual to bring suit
▪ General law – any person who meets conditions stated in law
• CA 327

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 o Implied consent
▪ When state enters into contract, state itself may be sued, descended to level of the
citizen
• Mobl Oil – contract was merely an incident to the performance of military
functions????
• Syquia v. Almeda-Lopez – contract of lease not so much basis for implied
consent?
▪ When the state authorizes an agency to run a business
• Engaging in an enterprise normally undertaken by private sector, state
descends to the level of private system, sheds sovereignty
• Mobil Oil – business operation merely incidental to performance of
governmental functions, immunity in not waived
▪ State takes initiative in a suit against private property, descends to level of private
individual, opens itself to counterclaim
• No implied waiver of immunity when state files a complaint in intervention
▪ Waiver of immunity not inferred
• Suability, liability, execution
o When state consents, it cannot be inferred from such consent that state concedes to liability
o When state has been adjudged as liable, does not follow that judgment can be enforced by
execution
▪ BC government funds and properties may not be seized
▪ Disbursement of public funds must be convered by corresponding appropriation

Section 4.

The AFP shall be composed of a citizen armed force, which shall undergo military training and serve, as may be
provided by law. It shall keep a regular force necessary for the security of the state

• Citizen armed force

• Regular force – segment of the citizen armed force, kept in active duty
o the rest udergo training and reverted to inactive service, but assigned to unit to which they may
be called when needed
o more economical than maintaining a large standing force

Secton 5.

1. All members of the armed forces shall take an oath or affirmation to uphold and defend this constitution
2. The state shall strengthen the:
a. patriotic spirit
b. nationalistic consciousness of the military
c. respect for people’s rights in the performance of their duty.
3. Professionalism in the armed forces and adequate renumeration and benefits of its members shall be the
prime concern of the state. The armed forces shall be insulated from partisan politics
a. No member of the military shall engage directly or indirectly in any partisan political activity,
except to vote
4. No member of the armed forces in the active foces shall, at any time, be appointed or designated in any
capacity to a civilian position in the govt, including GOCCs or any of their subsidiaries
5. Laws on retirement of military officers shall not allow extension of their office
6. The officers and men of the regular force of the armed forces shall be recruited proportionately from all
the provinces and cities as far as practicable

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 7. The tour of duty of the chief of staff of the armed forces shall not extend 3 years. However, in times of
war or other national emergency, declared by the Congress, the President may extend such tour of duty.
a. *****emergency declared by Congress – lawless violence, invasion, situation w/c have direct
military implications
b. ****President can shorten tenure of Chief of Staff when incompetent

Section 6.

The State shall establish and maintain one police force, which shall be:

• national in scope
• civilian in character

to be administered and controlled by a National Police Commission. The authority of local executives over the
police units in their jurisdiction shall be provided by law.

Notes

• 2 police forces
o Municipal and city police forces
o National police force (Philippine Constabulary)
▪ Dual character – both national police force and military force
• Authority over police force should be shared between NAPCOLM and local executives
o Day-to-day functions – local executive
o Local police could not cope with local situation, larger administrative matters - NAPOCOLM
• NAPOLCOM under the president
o Under the CSC

Section 7

The State shall provide immediate and adequate:

• Care
• Benefits
• Other forms of assistance

To:

• War veterans
• Veterans of military campains
• Their surviving spouses and orphans

Funds shall be provided therefor and due consideration shall be given them in:

• the disposition of agricultural lands of the public domain

• in appropriate cases, in the utilization of natural resources

Section 8.

The State shall, from time to time, review to upgrade the pensions and other benefits due to retirees of both
government and private sectors

Notes

• veterans not just of declared war, but of peace-keeping campaigns

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 • disposition of lands – determining factor is need

Section 9

The State shall protect consumers from:

• trade malpractices
• substandard or hazardous products

Section 10

The State shall provide the policy environment for the:

• full development of Filipino capability

• emergence of communication structures suitable to the needs and aspirations of the nation
• balanced flow of information into, out of, and across the country,

in accordance with a policy that respects the freedom of speech and of the press

Notes

• availability and reach of communication facilities

Section 11

1. Ownership and management of mass media shall be limited to:

a. citizens of the PH
b. corporations, cooperatives, associations, wholly-owned and managed by such citizens
c. The congress shall regulate or prohibit monopolies in commercial mass media when public
interest so requires. No combinations in restraint of trade or unfair competition therein shall be
allowed.
2. The advertising industry is:
a. impressed with public interest
b. shall be regulated by law for the:
i. protection of consumers
ii. the promotion of the general welfare
c. Only:
i. Filipino citizens
ii. Corporations or associations at least 70% of the capital of which is owned by such
citizens
d. Shall be allowed to engage in the advertising industry
e. The participation of foreign investors in the governing body of entities in such industry shall be
limited to:
i. their proportionate share in the capital thereof
ii. executive and managing officers of such entities must be citizens of the PH

Notes

• Section 11(1) mass media – radio, TV, printed media

o does not include commercial telecommunications (public utilities in Art XII, Sec 11) nor
advertising industry Secton 11(2)
o mass media – 100% Filipino ownership and management required
• advertising industry – not mass media but the use of mas media
o 30% foreign capitalization than that for mass media and public utilities

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 ▪ Advertising industry not capital intensive but talent intensive

Section 12

The Congress may create a consultative body to advise the President on policies affecting indigenous cultural
communities. The majority of the members of which shall come from such communities

Article XVII Amendments or Revisions

Section 1 (amendment proposed by congress)

Any amendment to, or revision of, this Constitution may be proposed by:

1. The Congress, upon votes of ¾ of all its members

2. A constitutional convention

Section 2 (amendment proposed by ppl through initiative)

Amendments to this Constitution may likewise be directly proposed by the people through initiative:

• Upon a petition of at least 12% of the total number of registered voters

o Every legislative district must be represented by at least 3% of the registered voters therein

No amendment under this section shall be authorized:

• within 5 years following the ratification of the Constitution

• nor oftener than once every 5 years thereafter

The Congress shall provide for the implementation of the exercise of this right

Section 3 (calling of constitutional convention)

The Congress may:

• by a vote of 2/3 of all its members, call a constitutional convention

• by a majority vote of all its members, submit to the electorate the question of calling such a convention

Notes

• amendment – improve specific parts or add new provisions necessary to meet new conditions or to
suppress specific portions that may have become obsolete or judged to be dangerous
o change of specific provisions
• revision – guiding original intention and plan contemplates a re-examination of the entire document, or
provisions of the document which have over-all implications for the entire document
o re-writing the whole constitution
• constitution of sovereignty – amendatory and revision process
o through these that sovereign people have allowed expression of their sovereign will through this
constitution to be canalized
• revision is achieved > link between old and new is severed
• 2 steps in the procedure of proposal of amendments
o proposal of amendments/revision
▪ done by Congress as constituent assembly
• doesn’t have to be a joint session, consti is silent
• House may separately formulate amendments by vote of ¾ then pass it to
other House for similar process

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 o Disagreements can be settled through conference committee
• Congress may decide to come together in joint session > should be free to
choose whatever it prefers
▪ or by a constitutional convention called by Congress
▪ or directly by electorate
o ratification of the proposed amendments/revision
• initiative and referendum
o initiative – people themselves directly propose amendments ONLY
▪ impossible to have over-all review of consti for entire electorate population
o without implementing legislation, sec 2 cannot operate
o Defensor-Santiago v. COMELEC
▪ RA 6735 did not apply to constitutional amendment
• Congress may not propose anything that is inconsistent with jus cogens
o Jus cogens – norm accepted and recognized by international community, no derogation is
permitted
• Gonzales v. COMELEC
o Constituent assembly derives its authority from the fundamental law
o power to amend Constitution or to propose amendments > not included in general grant of
legislative power
▪ it is inherent power of the people
o Congress may propose amendments bc they are granted such power
o THEY ARE EXERCISING POWER NOT AS SENATORS/HR but as part of constituent assembly
o Proposal of amendments is a justiciable question subject to judicial review
o Reviewed 3 resos of Congress acting as constituent assembly
▪ Validity was challenged on 3 grounds
• Congress may adopt either 1 or 2 alternatives but may not avail of both at the
same time
• Election must be a special election, not general election
• Spirit of Consti demands that election must be held under such conditions as to
give people reasonable opportunity to have a fair grasp of implications of the
amendments
▪ SC rejected all 3 grounds
• 1st - question of wisdom and not of authority, political question
• 2nd – special so there is undivided attention
• 3rd – determination of conditions falls within legislative sphere
• Tolentino v. COMELEC
o ConCon owes its existence and authority from Constitution
o Not been called by the people directly – such convention is completely without restraint and
omnipotent
o This one was made by virtue of the Constitution
o Constitutional requirements for submitting proposed amendments for approval by the people
o Resolution of ConCon was challenged on the following grounds
▪ Congress can call a plebiscite for the ratification of amendments
▪ Amendment could not be presented to the people for ratification separately from all the
other amendments drafter and proposed
o SC chose not to answer if power to call plebiscite was exclusively legislative
o But declared it unconstitutional

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 ▪ There should only be “one election” for amendments by the same constituent assembly
bc provision says “an election”
o Plebiscite must provide voter not only sufficient time but ample basis for an intelligent appraisal
• Lambino v. COMELEC
o Changes proposed characterized as revision and not within scope of initiative and referendum

Section 4

Any amendment to, or revision of, this Constitution under Section 1 shall be valid when:

• ratified by a majority of the votes cast in a plebiscite which shall be held not earlier than 60 days nor
later than 90 days
o after the approval of such amendment or revision

Any amendment under Section 2 hereof shall be valid when:

• ratified by a majority of the votes cast in a plebiscite which shall be held not earlier than 60 days nor
later than 90 days:
o after the certification by the Commission on Elections of the sufficiency of the petition

Article XVII Transitory Provisions

Section 1

The 1st elections of Members of the Congress under this Constitution shall be held on the 2nd Monday of May,
1987

The 1st local elections shall be held on a date to be determined by the President:

• which may be simultaneous with the election of the Members of the Congress

It shall include the election of all members of the city or municipal councils in the Metropolitan Manila Area

***May 11, 1987

***local elections – Jan 18, 1988

Section 2.

The:

• Senators
• Members of the House of Representatives
• Local officials

First elected under this Constitution shall serve until noon of June 30, 1992

Of the Senators elected in the election in 1992, the first 12 obtaining the highest number of votes shall serve for 6
years and the remaining 12 for 3 years

***will synchronize terms

SECTION 3.

All existing:

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 • Laws
• Decrees
• executive orders
• proclamations
• letters of instructions
• other executive issuances

not inconsistent with this Constitution shall remain operative until:

• amended
• repealed
• revoked.

SECTION 4.

All existing treaties or international agreements which have not been ratified shall:

• not be renewed or extended

• without the concurrence of at least 2/3 of all the Members of the Senate.

SECTION 5.

The 6-year term of the incumbent President and Vice-President elected in the February 7, 1986 election is for
purposes of synchronization of elections:

• hereby extended to noon of June 30, 1992.

The 1st regular elections for the President and Vice-President under this Constitution shall be held on the May 2,
1992.

SECTION 6.

The incumbent President shall continue to exercise legislative powers until the first Congress is convened.

SECTION 7.

Until a law is passed, the President may fill by appointment from a list of nominees by the respective sectors:

• the seats reserved for sectoral representation in paragraph (2), Section 5 of Article VI of this Constitution.

SECTION 8.

Until otherwise provided by the Congress, the President may constitute the Metropolitan Authority to be
composed of the heads of all local government units comprising the Metropolitan Manila area.

SECTION 9.

A sub-province shall continue to exist and operate until:

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 • it is converted into a regular province or
• its component municipalities are reverted to the mother province.

SECTION 10.

All courts existing at the time of the ratification of this Constitution shall continue to exercise their jurisdiction,
until otherwise provided by law. The provisions of the existing:

• Rules of Court
• judiciary acts
• procedural laws

not inconsistent with this Constitution shall remain operative unless amended or repealed by the Supreme Court
or the Congress.

SECTION 11.

The incumbent Members of the Judiciary shall continue in office until:

• they reach the age of 70 years or

• become incapacitated to discharge the duties of their office
• are removed for cause.

SECTION 12. (prior cases or matters)

The Supreme Court shall, within 1 year after the ratification of this Constitution:

• adopt a systematic plan to expedite the decision or resolution of cases or matters pending in the Supreme
Court or the lower courts prior to the effectivity of this Constitution

A similar plan shall be adopted for all:

• special courts
• quasi-judicial bodies.

SECTION 13. (legal effect of the lapse)

The legal effect of the lapse, before the ratification of this Constitution, of the applicable period for:

• the decision or resolution of the cases or matters submitted for adjudication by the courts

shall be determined by the Supreme Court as soon as practicable.

SECTION 14. (certification stating reasons why delayed, still resolve the case)

The provisions of paragraphs (3) and (4), Section 15 of Article VIII of this Constitution shall apply to:

• cases or matters filed before the ratification of this Constitution

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when the applicable period lapses after such ratification.

SECTION 15.

The incumbent Members of the CSC, COMELEC, and COA shall continue in office for one year after the ratification
of this Constitution, unless they:

• are sooner removed for cause

• become incapacitated to discharge the duties of their office
• appointed to a new term thereunder

In no case shall any Member serve longer than seven years including service before the ratification of this
Constitution.

SECTION 16.

Career civil service employees separated from the service not for cause but as a result of the reorganization
pursuant to:

• Proclamation No. 3 dated March 25, 1986

• the reorganization following the ratification of this Constitution

shall be entitled to:

• appropriate separation pay and

• retirement and
• other benefits accruing to them under the laws of general application in force at the time of their
separation

In lieu thereof, at the option of the employees, they may be:

• considered for employment in the Government or in any of its:

o subdivisions
o instrumentalities
o agencies
o including GOCCs and their subsidiaries

This provision also applies to career officers whose resignation, tendered in line with the existing policy, had been
accepted.

SECTION 17.

Until the Congress provides otherwise:

• the President shall receive an annual salary of P300k

• the
o Vice-President
o President of the Senate
o Speaker of the House of Representatives
o Chief Justice of the Supreme Court,

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 o P240k each
• the
o Senators
o Members of the House of Representatives
o Associate Justices of the Supreme Court
o Chairmen of the Constitutional Commissions
o P204k each
• The members of the Constitutional Commissions, P180k each

SECTION 18.

At the earliest possible time, the Government shall increase the salary scales of the other officials and employees
of the National Government.

SECTION 19.

All:

• Properties
• Records
• Equipment
• Buildings
• Facilities
• other assets

of any office or body abolished or reorganized under:

• Proclamation No. 3 dated March 25, 1986 or

• this Constitution

shall be transferred to the office or body to which its:

• powers
• functions, and
• responsibilities

substantially pertain.

SECTION 20.

The 1st Congress shall give priority to the determination of the period for the full implementation of free public
secondary education.

SECTION 21.

The Congress shall provide:

• efficacious procedures and

• adequate remedies

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for the reversion to the State of:

• all lands of the public domain and

• real rights connected therewith

which were acquired in:

• violation of the Constitution or the public land laws or

• through corrupt practices.

No transfer or disposition of such lands or real rights shall be allowed until after the lapse of one year from the
ratification of this Constitution.

SECTION 22.

At the earliest possible time, the Government shall expropriate idle or abandoned agricultural lands as may be
defined by law, for distribution to the beneficiaries of the agrarian reform program.

SECTION 23.

Advertising entities affected by paragraph (2), Section 11 of Article XVI of this Constitution shall have:

• 5 years from its ratification

• to comply on a graduated and proportionate basis with the minimum Filipino ownership requirement
therein. (70%)

SECTION 24.

• Private armies and

• other armed groups

not recognized by duly constituted authority shall be dismantled.

All paramilitary forces including Civilian Home Defense Forces not consistent with the citizen armed force
established in this Constitution, shall be:

• dissolved or,
• where appropriate, converted into the regular force.

SECTION 25.

After the expiration in 1991 of the Agreement between the Republic of the Philippines and the United States of
America, concerning Military Bases,

• foreign military bases

• troops
• facilities

shall not be allowed in the Philippines except:

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 • under a treaty duly concurred in by the Senate and,
• when the Congress so requires, ratified by a majority of the votes cast by the people in a national
referendum held for that purpose, and
• recognized as a treaty by the other contracting State.

SECTION 26.

The authority to issue sequestration or freeze orders under Proclamation No. 3 dated March 25, 1986 in relation
to the recovery of ill-gotten wealth shall remain operative for not more than 18 months after the ratification of
this Constitution.

However, in the national interest, as certified by the President, the Congress may extend said period.

A sequestration or freeze order shall be issued only upon showing of a prima facie case.

The order and the list of the sequestered or frozen properties shall forthwith be registered with the proper court.

For orders issued before the ratification of this Constitution, the corresponding judicial action or proceeding shall
be filed within 6 months from its ratification.

For those issued after such ratification, the judicial action or proceeding shall be commenced within 6 months
from the issuance thereof.

The sequestration or freeze order is deemed automatically lifted if no judicial action or proceeding is commenced
as herein provided.

SECTION 27.

This Constitution shall take effect immediately upon its ratification by:

• a majority of the votes cast in a plebiscite held for the purpose

and shall supersede all previous Constitutions.

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