The House committees on natural resources and legal franchises chaired by Rep. Arnel Ty (Party-list, LPGMA) and Rep. Franz Alvarez (1st District, Palawan) respectively, welcomed the legal opinion of the Office of the Solicitor General that Congress can issue legislative franchise to mining firms.
The two committees jointly deliberated on House Bill Nos. 5674 and 6259 which seek to require mining companies to secure legislative franchise from Congress for their operations in the country.
Speaker Pantaleon Alvarez is the principal author of HB 6259 entitled “An Act Amending Certain Portions of RA 7942, otherwise known as the Philippine Miming Act Of 1995, by prohibiting mining In watersheds, requiring a legislative franchise for mining operations and for other purposes.”
Other authors of the measure are Majority Leader Rodolfo Fariñas, Minority Leader Danilo Suarez, Deputy Speakers Frederick Abueg, Ferdinand Hernandez, Romero Quimbo, and Raneo Abu, Reps. Joel Mayo Almario, Abdullah Dimaporo, Jesse Mangaoang, Arnel Ty, Juliet Marie Ferrer, Manuel Jose Dalipe, Arnulfo Teves Jr., Emmanuel Billones, Luis Raymund Villafuerte, Luis Jose Angel Campos Jr., Erlpe John Amante, Jose Atienza Jr., Raul Daza, Rolando Zamora and Johnny Ty Pimentel.
Meanwhile, Rep. Luisa Lloren Cuaresma (Lone District, Nueva Vizcaya) filed HB 5674 entitled “An Act Requiring A Legislative Franchise As A Pre-requisite To The Issuance Of A Mineral Agreement Or Financial And Technical Assistance Agreement (FTAA) For Any Mining Project In The Philippines, Amending For This Purpose Sections 27 and 33 of RA 7942 otherwise known as the Mining Act Of 1995.
During the hearing, Solicitor General Jose Calida said the power of Congress to grant franchise emanates from the police power of the State.
He said there is no specific provision in the Constitution granting such power for the plain reason that it does not owe its origin to the Charter.
“Likewise there is also no constitutional prohibition for the authority of Congress to require franchise, only a limitation or requirement as in the citizenship requirement imposed on Public Utility under Article 12, Section 11 of the Constitution,” Calida explained.
He further explained Congress can enact legislations and may very well in its wisdom impose some degree of restraint, burdens and requirements for the reasonable enjoyment of all in their respective rights.
“There is no doubt that franchises are granted by Congress as a form of regulatory framework,” he opined.
Calida further explained the licensing authority of the DENR through the Mines and Geosciences Bureau is anchored on RA 7942 itself, otherwise known as the Philippine Mining Act of 1995.
“This is what the Congress seeks to amend with the proposed House Bill No. 6259,” he said.
He said nothing in the Constitution prohibits the Congress to determine which industry should be granted legislative franchise as it is within its province to legislate and pass laws in the exercise of police power.
“More so, the mining industry is imbued with public interest. With more reason then that the Congress may enforce legislative measures to regulate the grant of such privilege to private mining companies,” Calida said.
In closing, Calida said the grant of such authority however, does not divest or deprive the very source of such authority.
“When Congress authorizes the administrative agencies of the government to grant franchise, permit or license, the latter exercise a delegated power, but the franchising authority of the State through Congress is never diminished or renounced,” he said.
Meanwhile, in his opening remarks, Ty said the measures being discussed are proposing important changes to the Philippine Mining Act of 1995 or RA 7942. “Introducing reforms to the mining industry has been one of the major thrusts of the current administration as well as the House leadership,” he said.
Cuaresma, in her sponsorship remarks, said that no legislative franchise is required of large-scale mining projects despite the fact that these projects have large-scale environmental impacts.
She said that mining adversely affects not only the environment but the community where it is located.
“It would seem that the mining law was written to avoid the requirement of a legislative franchise to make it much easier for miners to avoid the scrutiny of the members of Congress and make the approval process for mining contracts easier to navigate,” Cuaresma said.
The committees created a technical working group (TWG) to be chaired by Rep. Francisco Jose Matugas II (1st District, Surigao del Norte) to consolidate and further study the bills.
The three bills on mineral processing and the ban on the exportation of mineral ores were also incorporated in the consolidated bills.
These are House Bill 2165, 2915 and 3229 authored by Reps. Erlpe John Amante (2nd District, Agusan del Norte), Joseph Stephen Paduano (Party-list, ABANG LINGKOD) and Matugas respectively. | Congress
