271059/271347/E-02472/E-04036 Representative Edcel C. Lagman, substituted by Albay First District Representative Krisel B. Lagman, et al. Vs. The Congress of the Philippines, et al./Aquilino “Koko” Pimentel III and Pantaleo “Bebot” Alvarez Vs. Lucas P. Bersamin, in his capacity as executive secretary, and Amenah F. Pangandaman, in her capacity as secretary of the Department of Budget and Management/Filipinos for Peace, Justice and Progress Movement, Inc. (FPJPM), represented by its president and chairperson, Joseph F. Cadsawan, and Gloria T. Puzon, chapter Officer Vs. The House of Representatives, et al./Edgar R. Erice and Leila De Lima Vs. The Senate of the Philippines, et al. — Official PDF

Decision 63 G.R. Nos. 271059, 271347, E-02472 and E-04036 constitute undue delegation of legislative power. The Court ruled that there·.·· was no undue delegation of legislative power because the laws "are complete in all their essential terms and conditions and sufficient standards are indicated."294 The purpose of the laws was to enable the government to make prompt payment of loans to protect and maintain the credit standing of the country. The Executive does not have unlimited discretion as to the amounts • to be disbursed for debt servicing, because the laws provide parameters, Le., "[t]he mandate is to pay only the principal, interest, taxes and other normal banking charges on the loans, ... as and when they shall become due. No uncertainty arises in executive implementation as the limit will be the exact amounts as shown by the books of the Treasury."2~5 • One of the questions raised in B~lgida v. Ochoa296 was the constitutionality of the Presidential Pork Barrel, specifically Section 8 ,of Presidential Decree No. 910 and Section 12 of Presidential Decree No. 1869, as amended by Presidential Decree No. 1933, which respectively provided for the Malampaya Fund and Presidential Social Fund. Therein petitioners contend that these were invalid appropriation laws, and that Section 8 •of Presidential Decree No. 910 constituted an undue delegation of legislative power since the phrase "and for such other purposes as may be hereafl=er directed by the [p ]resident" gives the president "unbridled discretion to determine for what purpose the funds will be used."297 The Court held: While the designation of a detenninate or determinable amount for a particular public purpose is sufficient for a legal appropriation to exist,. the appropriation law must contain adequate legislative guidelines if the same law delegates rule-making authority to the Executive either for the purpose of (a) filling up the details of the law for its enforcement, known as supplementary rule-making, or (b) ascertaining facts to bring the law into • actual operation, referred to as contingent rule-making .• There are two (2) fundamental tests to ensure that the legislative guidelines for delegated rule- making are indeed adequate. The first test is called the "completeness test." Case law states that a law is complete when it sets forth therein the policy to be executed, carried out, or implemented by the delegate. On the other hand, the second test is called the "sufficient standard test." Jurisprudence holds that a law lays down a sufficient standard when it provides adequate guidelines or limitations in the law to map out the boundaries of the delegate's authority and prevent the delegation from running riot. To be sufficient, the standard must specify the limits of the foreio-n~ or domestic loans whereon creditors make a call on the direct and indirect guarantee of:the Republic of the Philippines, obtained by: . . . a. the Republic of the Philippines the proceeds of which were relent to government-owned or controlled corporations and/or government financial institutions; b. government-owned or controlled corporations and/or government financial institutions the proceeds of which were relent to public or private institutions; c. government-owned or controlled corporations and/or financial institutions and guaranteed by the Republic of the Philippines; _ d. d/other public orfipriv_at~ .i n ~t_ittuttiot~s and guaranteed by go~em~ent-o~ned or c~ntrolled corpor~t1ons . ·/· an: or government mancia 1 ms 1 u ions. 2'14 273 Phil. 443,459 (1991) [Per J. Gancayco, En Banc]. 2" fd. at 460. (Emphasis supplied) 296 721 Phil. 416 (20 I 3) [Per J. Perlas-Bernabe, En Banc]. 297 Jd at 567.