Osmea vs.

Orbos

220 SCRA 703

GR No. 99886, March 31, 1993

" To avoid the taint of unlawful delegation of the power to tax, there must be a standard which implies that the legislature determines
matter of principle and lays down fundamental policy."

FACTS: Senator John Osmea assails the constitutionality of paragraph 1c of PD 1956, as amended by EO 137, empowering the
Energy Regulatory Board (ERB) to approve the increase of fuel prices or impose additional amounts on petroleum products which
proceeds shall accrue to the Oil Price Stabilization Fund (OPSF) established for the reimbursement to ailing oil companies in the event
of sudden price increases. The petitioner avers that the collection on oil products establishments is an undue and invalid delegation of
legislative power to tax. Further, the petitioner points out that since a 'special fund' consists of monies collected through the taxing
power of a State, such amounts belong to the State, although the use thereof is limited to the special purpose/objective for which it was
created. It thus appears that the challenge posed by the petitioner is premised primarily on the view that the powers granted to the ERB
under P.D. 1956, as amended, partake of the nature of the taxation power of the State.

ISSUE: Is there an undue delegation of the legislative power of taxation?

HELD: None. It seems clear that while the funds collected may be referred to as taxes, they are exacted in the exercise of the police
power of the State. Moreover, that the OPSF as a special fund is plain from the special treatment given it by E.O. 137. It is segregated
from the general fund; and while it is placed in what the law refers to as a "trust liability account," the fund nonetheless remains subject
to the scrutiny and review of the COA. The Court is satisfied that these measures comply with the constitutional description of a "special
fund." With regard to the alleged undue delegation of legislative power, the Court finds that the provision conferring the authority upon
the ERB to impose additional amounts on petroleum products provides a sufficient standard by which the authority must be exercised.
In addition to the general policy of the law to protect the local consumer by stabilizing and subsidizing domestic pump rates, P.D. 1956
expressly authorizes the ERB to impose additional amounts to augment the resources of the Fund.