Police power; gambling; mining agreements

Police power must be reasonably exercised. Otherwise, it is unconstitutional if a law is supposed to promote the welfare of the people but has not been crafted to have a reasonable purpose achieved through reasonable means.

In Lim v. Pacquing, it was held that Presidential Decree No. (PD) 771 was a valid exercise of the police power. Said law expressly revoked all existing franchises and permits to operate all forms of gambling facilities (including jai-alai) issued by local governments

Gambling is essentially antagonistic to the objectives of national productivity and self-reliance; it is a vice and a social ill which the government must minimize (or eradicate) in pursuit of social and economic development. (G.R. No. 115044. January 27, 1995)

Miners Association of the Philippines v. Factoran upheld the validity of Administrative Orders Nos. (AOs) 57 and 82 of the Secretary of the Department of Environment and Natural Resources. Said AOs effectively converted existing mining leases and other mining agreements into production-sharing agreements within one year from effectivity. The Supreme Court held that the subject sought to be governed by the questioned orders is germane to the objects and purposes of Executive Order No. (EO) 279, and that mining leases or agreements granted by the State are subject to alterations through a reasonable exercise of the police power of the State. (G.R. No. 98332. January 16, 1995)