Legality of mining franchises up to Congress: SolGen Calida

The government’s top lawyer has spoken on the fate of the Congress’ petition for mandating franchises of mining companies in the Philippines it has filed earlier with the committees on Natural Resources and Legislative Franchises.

“The mining industry is imbued with public interest. With more reason than that the Congress may enforce legislative measures to regulate the grant of such privilege to private mining companies,” Solicitor General Jose Calida said in a press release of the House of Representatives.

“There is no doubt that franchises are granted by Congress as a form of regulatory framework,” he added.

In his legal assessment, Calida said the lower chamber has the power to grant franchises, which emanates from the State’s police power.

“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 said.

Calida further explained that the House committees are also authorized to “enact legislation and impose some degree of restraint, burdens, and requirements for the reasonable enjoyment of all in their respective rights.”

Both House committees are recently in talks of requiring mining companies to secure legal franchises consequent to operating in their respective locations as covered by House Bills Numbers 5674 and 6259.

Pantaleon Alvarez, one of the House speakers present at the opening of the 17th Congress’ 2nd regular session, added the Congress’ priority legislation of a bill that would mandate privately held ventures (casinos, public transports, mining firms, etc.) to get legislative franchises prior to its operations.

Moreover, Alvarez is the principal sponsor of House Bill 6259 — “An Act Amending Portions of RA 7942, otherwise known as the Philippine Mining Act of 1995” — which prohibits mining in watersheds and requiring legal franchises for mining companies.

The House also created a technical working group that would consolidate and further study the two bills.

Meanwhile, three other bills on mineral processing and the ban on the exportation of mineral ones will also be consolidated, the legislative body said.