Alvarez v.

Guingona

FACTS:

This case is a petition for prohibition with prayer for temporary restraining order of RA 7720 “An Act Converting
the Municipality of Santiago, Isabela into an Independent Component City to be known as the City of Santiago

HB8817 = An Act Converting the Municipality of Santiago, Isabela into an Independent Component City to be known
as the City of Santiago

SB1243 = An Act Converting the Municipality of Santiago, Isabela into an Independent Component City to be known
as the City of Santiago

House Bill 8817 -> RA 77720

 April 18, 1993 – HB 8817 was filed in HoR with Rep Abaya as principal author
 May 5, 1993 – HB 8817 was referred to the House Comm on Local Govt and the House Comm on
Appropriations
 May 19, June 1, Nov 28, and Dec 1, 1993 – public hearings on HB 8817 were conducted by House Comm
on Local Govt
 May 19, 1993 – (right after the first HB 8817 public hearing), SB 1243 was filed in Senate by Sen Sotto III
 Dec 9, 1993 – House Comm on Local Govt submitte a favourable report with amendments to the House
 Dec 13, 1993 – HB 8817 was passed on 2nd reading
 Dec 17, 1993 – HB 8817 was approved on 3rd reading
 January 28, 1994 – HB 8817 was transmitted to Senate
 Feb 23, 1994 – Senate Comm on Local Govt conducted public hearings for SB 1243
 March 1, 1994 – Senate Comm on Local Govt submitted Comm Report 378 on HB 8817 with
recommendation for approval without amendment while also taking into consideration that it is identical
with SB 1243
 Alvarez indicated his approval of the said Comm Report 378 as member of Senate Comm on Local Govt
 March 3, 1994 – Comm Report 378 was passed by Senate on 2nd reading
 March 14, 1994 – Comm Report 378 was approved in 3rd reading
 March 22, 1994 – HoR, in relation with the approval of Senate, approved the amendments made by the
Senate on Comm Report 378 (w/c is now referred to as an enrolled bill)
 April 12, 1994 – the enrolled bill was submitted to Office of the Pres
 May 5, 1994 – the Chief Executive signed the enrolled bill as RA 7720
 July 13, 1994 – a plebiscite on RA 7720 was held in Santiago and voted in favor of the RA 7720

Petitioners’ main concern WON the RA 7720 is constitutionally infirm.

ISSUES:

 WON RA 7720 be said to have originated in the HoR considering Senate passed SB1243, its own version of
HB 8817
 WON IRAs are to be included in the computation of the average annual income of a municipality for the
purposes of its conversion into an independent component city (not really part of StatCon but main issue of case)
RULING:

1. Yes. A bill of local application should originate exclusively in the HoR. Also, HB 8817 was filed in the
HoR first before SB 1243 was filed in the Senate. The Senate conducted its first public hearing almost
a month after the HB 8817 was transmitted to the Senate. The claim of the petitioners that RA 7720
did not originate in HoR because a bill of the same matter, SB 1243 was passed in the senate is
unjustified.

The filing in the Senate of a substitute bill in anticipation of it receipt of the bill from the House, does
not contravene the constitutional requirement that a bill of local application should originate in the
HoR, for as long as the Senate does not act thereupon until it receives the bill.

The Consti does not prohibit the Senate to file substitute bills of local application in anticipation of a
bill of the same subject matter from HoR as long as this substitute bill is acted upon by the senate
only when the Senate receives the approved HB.

Thus, HB 8817 was the bill that initiated the legislative process that culminated in the enactment of
RA 7720

2. Yes. The IRA should be added in the computation of an LGU’s average annual income as was done in
the case at bar. The IRAs are items of income because they form part of the gross accretion of the
funds of the local government unit. The IRAs regularly and automatically accrue to the local treasure
w/o need of any further action from the LGU. They thus constitute income which the local
government can invariably rely upon as the source of much needed funds.

Therefore, the 20,000,000 pesos reqd income to qualify as a component city is met by Santiago
because IRA is a recurring item of income granted to local government units.

SC: The petition is dismissed for lack of merit.