ALVAREZ V GUINGONA

In April 1993, HB 8817 (An Act Converting the Municipality of

Santiago into an Independent Component City to be known as the
City of Santiago) was passed in the HOR.
In May 1993, a Senate bill (SB 1243) of similar title and content
with that of HB 8817 was introduced in the Senate.
In January 1994, the HB 8817 was transmitted to the Senate. In
February 1994, the Senate conducted a public hearing on SB 1243.
In March 1994, the Senate Committee on Local Government rolled
out its recommendation for approval of HB 8817 as it was totally the
same with SB 1243. Eventually, HB 8817 became a law (RA 7720).
Now Alvarez et al are assailing the constitutionality of the said law
on the ground that the bill creating the law did not originate from the
lower house and that the Santiago was not able to comply with the
income of at least P20M per annum in order for it to be a city. That
in the computation of the reported average income of
P20,974,581.97 included the IRA which should not be.
ISSUES:
1. Whether or not RA 7720 is invalid for not being originally from
the HOR.
2. Whether or not the IRA should be included in the computation of
an LGUs income.





HELD: 1. NO. The house bill was filed first before the senate bill as
the record shows. Further, the Senate held in abeyance any hearing
on the said SB while the HB was on its 1
st
, 2
nd
and 3
rd
reading in the
HOR. The Senate only conducted its 1
st
hearing on the said SB one
month after the HB was transmitted to the Senate (in anticipation of
the said HB as well).
2. YES. The IRA should be added in the computation of an LGUs
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 treasury without need of any further
action on the part of the local government unit. They thus constitute
income which the local government can invariably rely upon as the
source of much needed funds.
To reiterate, IRAs are a regular, recurring item of income; nil is there
a basis, too, to classify the same as a special fund or transfer, since
IRAs have a technical definition and meaning all its own as used in
the Local Government Code that unequivocally makes it distinct
from special funds or transfers referred to when the Code speaks of
funding support from the national government, its instrumentalities
and government-owned-or-controlled corporations.








Tolentino vs. Secretary of Finance
G.R. No. 115455
235 SCRA 630 (1994)
FACTS
RA 7716, otherwise known as the Expanded Value-Added Tax Law,
is an act that seeks to widen the tax base of the existing VAT system
and enhance its administration by amending the National Internal
Revenue Code. There are various suits questioning and challenging
the constitutionality of RA 7716 on various grounds.
Tolentino contends that RA 7716 did not originate exclusively from
the House of Representatives but is a mere consolidation of HB. No.
11197 and SB. No. 1630 and it did not pass three readings on
separate days on the Senate thus violating Article VI, Sections 24
and 26(2) of the Constitution, respectively.
Art. VI, Section 24: All appropriation, revenue or tariff bills, bills
authorizing increase of the public debt, bills of local application, and
private bills shall originate exclusively in the House of
Representatives, but the Senate may propose or concur with
amendments.
Art. VI, Section 26(2): No bill passed by either House shall become
a law unless it has passed three readings on separate days, and
printed copies thereof in its final form have been distributed to its
Members three days before its passage, except when the President
certifies to the necessity of its immediate enactment to meet a public
calamity or emergency. Upon the last reading of a bill, no
amendment thereto shall be allowed, and the vote thereon shall be
taken immediately thereafter, and the yeas and nays entered in the
Journal.


ISSUE
Whether or not RA 7716 violated Art. VI, Section 24 and Art. VI,
Section 26(2) of the Constitution.
HELD
No. The phrase originate exclusively refers to the revenue bill and
not to the revenue law. It is sufficient that the House of
Representatives initiated the passage of the bill which may undergo
extensive changes in the Senate.
SB. No. 1630, having been certified as urgent by the President need
not meet the requirement not only of printing but also of reading the
bill on separate days.