G.R. No. 111097 – 234 SCRA 255 – Political Law – Constitutional Law – Powers of the State – Police Power; Police Power May Be Exercised by LGUs- Invalid Exercise – LGUs cannot contravene statutes
In 1992, the Philippine Amusement and Gaming Corporation (PAGCOR) and Pryce Properties Corporation, Inc. agreed to operate a casino in Cagayan de Oro City.
Immediately, the local council enacted two ordinances. One prohibiting the issuance of business permits to casinos and the other prohibiting the operations of casinos in the city. The ordinances were signed by Mayor Pablo Magtajas.
PAGCOR and PPCI questioned the validity of the ordinances. They argued that under PD 1869 (PAGCOR Law), PAGCOR is authorized by law to operate casinos.
Mayor Magtajas invoked the General Welfare Clause in the Local Government Code which provides Every local government unit shall exercise the powers expressly granted, those necessarily implied therefrom, as well as powers necessary, appropriate, or incidental for its efficient and effective governance, and those which are essential to the promotion of the general welfare. Magtajas argued that they cannot allow gambling in their locality due to its immoral effects to their constituents.
ISSUE: Whether or not the ordinances are valid.
HELD: No. The morality of gambling is not a justiciable issue. Gambling is not illegal per se. While it is generally considered inimical to the interests of the people, there is nothing in the Constitution categorically proscribing or penalizing gambling or, for that matter, even mentioning it at all. It is left to Congress to deal with the activity as it sees fit. In the exercise of its own discretion, the legislature may prohibit gambling altogether or allow it without limitation or it may prohibit some forms of gambling and allow others for whatever reasons it may consider sufficient.
Casinos are legal so long as authorized by the PAGCOR. Congress allows casinos so long as they are authorized by PAGCOR.
The General Welfare Clause in the LGC is not meant to allow LGUs to contravene statutes passed by Congress. In this case, the grant of police power to LGUs cannot be an authorization for the LGU to contravene the provisions of PD 1869.
Municipal governments are only agents of the national government. Local councils exercise only delegated legislative powers conferred on them by Congress as the national lawmaking body. The delegate cannot be superior to the principal or exercise powers higher than those of the latter. It is a heresy to suggest that the local government units can undo the acts of Congress, from which they have derived their power in the first place, and negate by mere ordinance the mandate of the statute.
