republic act no. 7796

1. Exclusive Powers of the National Government and State Governments
National Government
Print money
Regulate interstate (between states) and international trade
Make treaties and conduct foreign policy
Declare war
Provide an army and navy
Establish post offices
Make laws necessary and proper to carry out the these powers
State Governments
Issue licenses
Regulate intrastate (within the state) businesses
Conduct elections
Establish local governments
Ratify amendments to the Constitution
Take measures for public health and safety
May exert powers the Constitution does not delegate to the national government or prohibit
the states from using
In addition to their exclusive powers, both the national government and state governments
share powers. Shared powers between the national government and state governments are
called concurrent powers. Current powers of the national government and state governments
include the ability to:
Collect taxes
Build roads
Borrow money
Establish courts
Make and enforce laws

2. Charter banks and corporations
Spend money for the general welfare
Take private property for public purposes, with just compensation
THE THREE INHERENT POWERS OF THE STATE
POLICE POWER
It is the sovereign power to promote and protect the general welfare. It is the most pervasive
and the least limitable of the three powers of the state, the most essential, consistent and
illimitable which enables the State to prohibit all hurtful things to the comfort, safety and
welfare of the society.
It also refers to the power vested in the legislature by the Constitution to make, ordain,
establish all manner of wholesome and reasonable laws, statutes, or ordinances, either with
penalties, or without, nor repugnant to the constitution, as they shall be judge to be for the
good and welfare of the state and the subjects.
Police power is an inherent attribute of sovereignty. It can exist even without reservation in the
constitution. It is based on necessity as without it, there can be no effective government. It is
also referred to as the law of overwhelming necessity.
What is the basis of the exercise of the police power of the state?
· The exercise of police power is founded on the basic principles of salus populi est suprema
lex (the welfare of the people is the supreme law) and sic utere tu et alienum non laedas (so use
your property so as not to impair another)
Who has the ultimate power to determine the necessity and the means of exercising the police
power of the state?
· Congress has the ultimate power, because it is the judge of necessity, adequacy,
reasonableness and wisdom of any law. The congress is the constitutional repository of police
power and exercise the prerogative of determining the policy of the state.

3. Limitations in the exercise of Police power
1. Due process clause
2. Equal protection clause
The basic purposes of Police Power are:
1. To serve the general welfare, comfort and convenience of the people;
2. To promote and preserve public health;
3. To promote and protect public safety;
4. To maintain and safeguard public order;
5. To protect public morals; and
6. To promote the economic security of the people.
POWER OF EMINENT DOMAIN
It is an inherent power of the state that enables it to forcibly acquire private property, which is
intended for public use, upon the payment of just compensation. It is based on political
necessity; it is inseparable from the state unless it is denied to it by its fundamental law.
Condemnation of private property is justified only if it is for the public good character. It is the
courts of law that have the power to determine whether there is necessity therefore. Also called
the power of expropriation, eminent domain is described as the “highest and most exact idea of
property remaining in the government” that may be acquired for some public purpose through a
method “in the nature of a compulsory sale to the state”.
Who may exercise the Power of Eminent domain?
1. The Congress
2. The President
3. The local legislative bodies
4. Certain public corporations (e.g. Land Authority and the MWSS)
5. Quasi-public corporations (e.g. PLDT and Meralco)

4. What are the requisites in exercising the power of eminent domain?
1. The property taken must be private property;
2. The taking must be within constitutional sense;
3. The taking must be for public use
4. Just compensation must be paid;
5. There must be due process of law.
The following essential requisites must concur before an LGU can exercise the power of eminent
domain:
1. An ordinance is enacted by the local legislative council authorizing the local chief executive
to exercise the power of eminent domain;
2. It is exercised for the public use, purpose and welfare;
3. There must be payment of just compensation; and
4. A valid and definite offer has been previously made to the owner of the property south to
be expropriated.
Taking may not only include the import of a physical possession of the owner, as when he is
ousted from his land or relieved of his watch or car but also covers trespass without actual
eviction of the owner, material impairment of the value of the property or prevention of the
ordinary uses for which the property was intended.
The following cases constitute taking:
· Where a farmland is inundated because of the construction of a damn nearby, the owner
who is prevented from planting on the land.
· Where government planes fly over private property at such a low altitude as to practically
touch the tops of the trees.
· A municipal ordinance prohibiting construction of any building that would destroy the view
of the plaza from the highway.

5. Query: A building which is on the verge of collapse was ordered to be demolished. The owner
objected thereto since the demolition constitutes taking without payment of just compensation.
Is the contention of the owner correct?
Answer: No, the demolition of the building is done in the exercise of police power. It is intended
to further the interest of the public as the structure is susceptible to harm the public, in case it
collapses. Hence, the owner is not entitled to compensation.
Query: An ordinance was passed requiring private cemeteries to reserve 6% of their total areas
for the burial paupers. The owners of the private cemeteries demand payment of just
compensation because the ordinance sought to deprive them of their property. However, the
city invoked that such ordinance was done in the exercise of their police power under the
general welfare clause. Is the argument of the city tenable?
Answer: No, although there was taking of private property for public use, nevertheless, it was
done without payment of just compensation. Hence, it violates the principles governing eminent
domain. The taking of property under the police power is sought to be destroyed.
Just compensation is the full and fair equivalent of the property taken from the private owner by
the expropriator. The measure of this compensation is not the taker’s gain but the owner’s loss.
POWER OF TAXATION
It is the inherent power of the state to raise revenues to defray the expenses of the
government or for any public purpose. This can be done through the imposition of burdens or
imposition on persons, properties, services, occupations or transactions.
The importance of taxation derives from the unavoidable obligation of the government to
protect the people and extend them benefits in the form of public projects and services.
Taxation is based on necessity and the reciprocal duties of protection and support between the
state and those that are subject to its authority.

6. Who may exercise the power of taxation?
· It is the Congress who exercises the plenary power to tax. However, it may be delegated by
congress to local government units under such terms and conditions as may prescribed by law.
The following are the requisites or limitations on the power to tax:
1. Public purpose;
2. Territoriality;
3. Uniformity;
4. Due process and equal protection clause;
5. Constitutionally exempt properties cannot be taxed;
6. In the assessment and collection of certain kinds of taxes, notice and opportunity for
hearing must be provided.

7. Who may exercise the power of taxation?
· It is the Congress who exercises the plenary power to tax. However, it may be delegated by
congress to local government units under such terms and conditions as may prescribed by law.
The following are the requisites or limitations on the power to tax:
1. Public purpose;
2. Territoriality;
3. Uniformity;
4. Due process and equal protection clause;
5. Constitutionally exempt properties cannot be taxed;
6. In the assessment and collection of certain kinds of taxes, notice and opportunity for
hearing must be provided.