G.R. No. 129093 ; August 30, 2001
HON. JOSE D. LINA, JR., SANGGUNIANG PANLALAWIGAN OF LAGUNA, and HON. CALIXTO CATAQUIZ, petitioners, vs. HON. FRANCISCO DIZON PAÑO and TONY CALVENTO, respondents.

FACTS

On December 29, 1995, respondent Tony Calvento was appointed agent by the Philippine Charity Sweepstakes Office (PCSO) to install a terminal for the operation of lotto. He requested a mayor’s permit from Mayor Calixto Cataquiz of San Pedro, Laguna, which was denied on February 19, 1996. The denial was based on Kapasiyahan Bilang 508, Taon 1995, issued by the Sangguniang Panlalawigan of Laguna on September 18, 1995, which expressed the province’s objection to all forms of gambling, especially lotto. Respondent Calvento filed a complaint for declaratory relief with a prayer for preliminary injunction and temporary restraining order, seeking to annul the resolution and compel the issuance of the permit. The Regional Trial Court of San Pedro, Laguna, Branch 93, enjoined the petitioners from implementing the resolution. Petitioners filed a motion for reconsideration, which was denied, leading to this petition for review on certiorari. Petitioners argue the resolution is a valid exercise of police power under the Local Government Code and that prior consultation and approval by the local government were required but not obtained. Respondent Calvento contends the resolution curtails state power, as lotto is legalized by national law, and the consultation requirement is not mandatory.

ISSUE

1. Whether Kapasiyahan Blg. 508, T. 1995 of the Sangguniang Panlalawigan of Laguna and the denial of a mayor’s permit based thereon are valid.
2. Whether prior consultations and approval by the concerned Sanggunian are needed before a lotto system can be operated in a given local government unit.

RULING

1. The resolution is not valid as a prohibitive ordinance and cannot justify the denial of the mayor’s permit. The Court ruled that Kapasiyahan Blg. 508 is merely a policy statement expressing the provincial government’s objection to lotto and gambling, not a self-executing ordinance. While local governments have autonomy to express views contrary to the national government, they cannot enact ordinances that contravene statutes enacted by Congress. Lotto is a game of chance authorized by the national government through Republic Act 1169, as amended by Batas Pambansa Blg. 42, which grants PCSO a franchise to operate lotteries. Local governments cannot prohibit an activity that the national government has expressly allowed. Therefore, the resolution provided no legal basis for refusing the permit for a legitimate business authorized by national law.
2. Prior consultations and approval by the local sanggunian are not mandatory prerequisites for the operation of the lotto system. The Court held that the provisions cited (Sections 2(c) and 27 of the Local Government Code of 1991) are merely directory, not mandatory. These provisions state a policy of consultation but do not impose a condition that without such consultation, a national program cannot be implemented. The requirement for prior approval is not absolute and does not grant local governments a veto power over national programs. The lotto operation, being authorized by a national law, does not require local approval for its implementation.
The petition was DENIED for lack of merit. The Order of the Regional Trial Court enjoining the petitioners from implementing Kapasiyahan Blg. 508 was AFFIRMED.