168 SUPREME COURT REPORTS ANNOTATED
Beltran vs. Secretary of Health REDEEMER BLOOD BANK, ALBERT L. LAPITAN,
G.R. No. 133640. November 25, 2005.
* doing business under the name and style, BLUE
RODOLFO S. BELTRAN, doing business under the
name and style, OUR LADY OF FATIMA BLOOD
BANK, FELY G. MOSALE, doing business under the
name and style, MOTHER SEATON BLOOD BANK;
PEOPLE’S BLOOD BANK, INC.; MARIA VICTORIA T.
VITO, M.D., doing business under the name and style,
AVENUE BLOOD BANK; JESUS M. GARCIA, M.D.,
doing business under the name and style, HOLY
REDEEMER BLOOD BANK, ALBERT L. LAPITAN,
doing business under the name and style, BLUE
CROSS BLOOD TRANSFUSION SERVICES;
EDGARDO R. RODAS, M.D., doing business under the
name and style, RECORD BLOOD BANK, in their
individual capacities and for and in behalf of
PHILIPPINE ASSOCIATION OF BLOOD BANKS,
petitioners, vs. THE SECRETARY OF HEALTH,
respondent.
G.R. No. 133661. November 25, 2005.
*
DOCTORS’ BLOOD CENTER,
petitioner, vs. DEPARTMENT OF HEALTH,
respondent.
G.R. No. 139147. November 25, 2005.
*
RODOLFO S. BELTRAN, doing business under the
name and style, OUR LADY OF FATIMA BLOOD
BANK, FELY G. MOSALE, doing business under the
name and style, MOTHER SEATON BLOOD BANK;
PEOPLE’S BLOOD BANK, INC.; MARIA VICTORIA T.
VITO, M.D., doing business under the name and style,
AVENUE BLOOD BANK; JESUS M. GARCIA, M.D.,
doing business under the name and style, HOLY
CROSS BLOOD TRANSFUSION SERVICES;
EDGARDO R. RODAS, M.D., doing business under the
name and style,
_______________
*EN BANC.
169
VOL. 476, NOVEMBER 25, 2005 169
Beltran vs. Secretary of Health
RECORD BLOOD BANK, in their Individual capacities
and for and in behalf of PHILIPPINE ASSOCIATION
OF BLOOD BANKS, petitioners, vs. THE
SECRETARY OF HEALTH, respondent.
Health; Blood Banks; The National Blood Services Act of
1994 (R.A. No. 7719); Delegation of Powers; In testing
whether a statute constitutes an undue delegation of
legislative power or not, it is usual to inquire whether the
statute was complete in all its terms and provisions when it
left the hands of the Legislature so that nothing was left to the
judgment of the administrative body or any other appointee
or delegate of the Legislature; The National Blood Services
Act of 1994 is complete in itself—it is clear from the provisions
of the Act that the Legislature intended primarily to
safeguard the health of the people and has mandated several
measures to attain this objective; Congress may validly
delegate to administrative agencies the authority to
promulgate rules and regulations to implement a given
legislation and effectuate its policies.—In testing whether a
statute constitutes an undue delegation of legislative power
or not, it is usual to inquire whether the statute was complete
in all its terms and provisions when it left the hands of the
Legislature so that nothing was left to the judgment of the be, and conferring an authority or discretion as to its
administrative body or any other appointee or delegate of the execution, to be exercised under and in pursuance of the law—
Legislature. Except as to matters of detail that may be left to the first cannot be done; to the latter no valid objection can be
be filled in by rules and regulations to be adopted or made.—Section 23 of Administrative Order No. 9 provides
promulgated by executive officers and administrative that the phase-out period for commercial blood banks shall
boards, an act of the Legislature, as a general rule, is be extended for another two years until May 28, 1998 “based
incomplete and hence invalid if it does not lay down any rule on the result of a careful study and review of the blood supply
or definite standard by which the administrative board may and demand and public safety.” This power to ascertain the
be guided in the exercise of the discretionary powers existence of facts and conditions upon which the Secretary
delegated to it. Republic Act No. 7719 or the National Blood may effect a period of extension for said phase-out can be
Services Act of 1994 is complete in itself. It is clear from the delegated by Congress. The true distinction between the
provisions of the Act that the Legislature intended primarily power to make laws and discretion as to its execution is
to safeguard the health of the people and has mandated illustrated by the fact that the delegation of power to make
several measures to attain this objective. One of these is the the law, which necessarily involves a discretion as to what it
phase out of commercial blood banks in the country. The law shall be, and conferring an authority or discretion as to its
has sufficiently provided a definite standard for the guidance execution, to be exercised under and in pursuance of the law.
of the Secretary of Health in carrying out its provisions, that The first cannot be done; to the latter no valid objection can
is, the promotion of public health by providing a safe and be made.
adequate supply of blood through voluntary blood donation. Same; Same; Same; Equal Protection
By its provisions, it has conferred the power and authority to Clause; Requisites; Class Legislation; What may be regarded
the Secretary of Health as to its execution, to be exercised as a denial of the equal protection of the laws is a question not
under and in pursuance of the law. Congress may validly always easily determined. No rule that will cover every case
delegate to administrative agencies the authority to can be formulated.—What may be regarded as a denial of the
promulgate rules equal protection of the laws is a question not always easily
170 determined. No rule that will cover every case can be
170 SUPREME COURT REPORTS ANNOTATED formulated. Class legislation, discriminating against some
Beltran vs. Secretary of Health and favoring others is prohibited but classification on a
and regulations to implement a given legislation and reasonable basis and not made arbitrarily or capriciously is
effectuate its policies. The Secretary of Health has been permitted. The classification, however, to be reasonable: (a)
given, under Republic Act No. 7719, broad powers to execute must be based on substantial distinctions which make real
the provisions of said Act. differences; (b) must be germane to the purpose of the law;
Same; Same; Same; Same; The true distinction between (c) must not be limited to existing conditions only; and, (d)
the power to make laws and discretion as to its execution is must apply equally to each member of the class.
illustrated by the fact that the delegation of power to make the Same; Same; Same; Same; The classification made by
law, which necessarily involves a discretion as to what it shall the National Blood Services Act of 1994 between nonprofit
blood banks or centers and commercial blood banks is valid
and reasonable.—Based on the foregoing, the Legislature
never intended for the law to create
171
VOL. 476, NOVEMBER 25, 2005
Beltran vs. Secretary of Health
a situation in which unjustifiable discrimination and
inequality shall be allowed. To effectuate its policy, a
classification was made between nonprofit blood
banks/centers and commercial blood banks. We deem the
classification to be valid and reasonable for the following
reasons: One, it was based on substantial distinctions. The
former operates for purely humanitarian reasons and as a
medical service while the latter is motivated by profit. Also,
while the former wholly encourages voluntary blood
donation, the latter treats blood as a sale of commodity. Two,
the classification, and the consequent phase out of
commercial blood banks is germane to the purpose of the law,
that is, to provide the nation with an adequate supply of safe
blood by promoting voluntary blood donation and treating
blood transfusion as a humanitarian or medical service
rather than a commodity. This necessarily involves the phase
out of commercial blood banks based on the fact that they
operate as a business enterprise, and they source their blood
supply from paid blood donors who are considered unsafe
compared to voluntary blood donors as shown by the USAID-
sponsored study on the Philippine blood banking
system. Three, the Legislature intended for the general
application of the law. Its enactment was not solely to
address the peculiar circumstances of the situation nor was
it intended to apply only to the existing conditions. Lastly,
the law applies equally to all commercial blood banks
without exception.
Same; Same; Same; Police Power; Requisites; The
promotion of public health is a fundamental obligation of the
State—the health of the people is a primordial governmental
concern; In serving the interest of the public, and to give
meaning to the purpose of the law, the Legislature deemed it
necessary to phase out commercial blood banks—this action
171 may seriously affect the owners and operators, as well as the
employees, of commercial blood banks but their interests must
give way to serve a higher end for the interest of the public.—
The promotion of public health is a fundamental obligation
of the State. The health of the people is a primordial
governmental concern. Basically, the National Blood
Services Act was enacted in the exercise of the State’s police
power in order to promote and preserve public health and
safety. Police power of the state is validly exercised if (a) the
interest of the public generally, as distinguished from those
of a particular class, requires the interference of the State;
and, (b) the means employed are reasonably necessary to the
attainment of the objective sought to be accomplished and
not unduly
172
172 SUPREME COURT REPORTS ANNOTATED
Beltran vs. Secretary of Health
oppressive upon individuals. In the earlier discussion,
the Court has mentioned of the avowed policy of the law for
the protection of public health by ensuring an adequate
supply of safe blood in the country through voluntary blood
donation. Attaining this objective requires the interference
of the State given the disturbing condition of the Philippine
blood banking system. In serving the interest of the public,
and to give meaning to the purpose of the law, the
Legislature deemed it necessary to phase out commercial
blood banks. This action may seriously affect the owners and
operators, as well as the employees, of commercial blood
banks but their interests must give way to serve a higher end
for the interest of the public.
 Same; Same; Same; Non-Impairment Clause; Settled is
the rule that the non-impairment clause of the Constitution
must yield to the loftier purposes targeted by the
government—the right granted by this provision must submit
to the demands and necessities of the State’s power of
regulation; The concern of the Government in this case,
however, is not necessarily to maintain profits of business
firms—in the ordinary sequence of events, it is profits that
suffer as a result of government regulation.—The State, in
order to promote the general welfare, may interfere with
personal liberty, with property, and with business and
occupations. Thus, persons may be subjected to certain kinds
of restraints and burdens in order to secure the general
welfare of the State and to this fundamental aim of
government, the rights of the individual may be
subordinated. Moreover, in the case of Philippine Association
of Service Exporters, Inc. v. Drilon, settled is the rule that the
non-impairment clause of the Constitution must yield to the
loftier purposes targeted by the government. The right
granted by this provision must submit to the demands and
necessities of the State’s power of regulation. While the
Court understands the grave implications of Section 7 of the
law in question, the concern of the Government in this case,
however, is not necessarily to maintain profits of business
firms. In the ordinary sequence of events, it is profits that
suffer as a result of government regulation.
Same; Same; Same; Same; The freedom to contract is
not absolute—all contracts and all rights are subject to the
police power of the State and not only may regulations which
affect them be established by the State, but all such
regulations must be subject to change from time to time, as
the general well-being of the community may require, or as
the circumstances may change, or as experience may
demonstrate the necessity.—The freedom to contract is not
absolute; all
173
VOL. 476, NOVEMBER 25, 2005 173
Beltran vs. Secretary of Health
contracts and all rights are subject to the police power
of the State and not only may regulations which affect them
be established by the State, but all such regulations must be
subject to change from time to time, as the general well-being
of the community may require, or as the circumstances may
change, or as experience may demonstrate the necessity.
This doctrine was reiterated in the case of Vda. de Genuino
v. Court of Agrarian Relationswhere the Court held that
individual rights to contract and to property have to give way
to police power exercised for public welfare.
Same; Same; Same; Separation of Powers; Judicial
Review; The wisdom of the Legislature in the lawful exercise
of its power to enact laws cannot be inquired into by the
Court—doing so would be in derogation of the principle of
separation of powers; Between “is” and “ought” there is a far
cry.—As for determining whether or not the shutdown of
commercial blood banks will truly serve the general public
considering the shortage of blood supply in the country as
proffered by petitioners, we maintain that the wisdom of the
Legislature in the lawful exercise of its power to enact laws
cannot be inquired into by the Court. Doing so would be in
derogation of the principle of separation of powers. That,
under the circumstances, proper regulation of all blood banks
without distinction in order to achieve the objective of the
law as contended by petitioners is, of course, possible; but,
this would be arguing on what the law may be or should
be and not what the law is. Between is and ought there is a
far cry. The wisdom and propriety of legislation is not for this
Court to pass upon.
Courts; Contempt; Words and Phrases; Contempt of
court presupposes a contumacious attitude, a flouting or
arrogant belligerence in defiance of the court.—With regard
to the petition for contempt in G.R. No. 139147, on the other considering the issues being raised by petitioners, is for
hand, the Court finds respondent Secretary of Health’s Congress to determine.
explanation satisfactory. The statements in the flyers and
posters were not aimed at influencing or threatening the SPECIAL CIVIL ACTIONS in the Supreme Court.
Court in deciding in favor of the constitutionality of the law. Certiorari, Mandamus and Contempt.
Contempt of court presupposes a contumacious attitude, a
flouting or arrogant belligerence in defiance of the court.
The facts are stated in the opinion of the Court.
There is nothing contemptuous about the statements and Justinian E. Adviento and Oscar C. Maglaque for
information contained in the health advisory that were petitioners.
distributed by DOH before the TRO was issued by this Court Morales, Sayson & Rojas for Doctors’ Blood Bank
ordering the former to cease and desist from distributing the
Center.
same.
174
The Solicitor General for respondents Secretary of
174 SUPREME COURT REPORTS ANNOTATED Health and Department of Health.
Beltran vs. Secretary of Health Jimenea and Associates Law Office for
Same; Judicial Review; Separation of Powers; Every intervenors.
law has in its favor the presumption of constitutionality—for
a law to be nullified, it must be shown that there is a clear AZCUNA, J.:
and unequivocal breach of the Constitution, and the ground
for nullity must be clear and beyond reasonable doubt.—The Before this Court are petitions assailing primarily the
fundamental criterion is that all reasonable doubts should be constitutionality of Section 7 of Republic Act No. 7719,
resolved in favor of the constitutionality of a statute. Every otherwise known as the “National Blood Services Act of
law has in its favor the presumption of constitutionality. For 1994,” and the validity of Administrative Order (A.O.)
a law to be nullified, it must be shown that there is a clear No. 9, series of 1995 or the Rules and Regulations
and unequivocal breach of the Constitution. The ground for Implementing Republic Act No. 7719.
nullity must be clear and beyond reasonable doubt. Those 175
who petition this Court to declare a law, or parts thereof, VOL. 476, NOVEMBER 25, 2005 175
unconstitutional must clearly establish the basis therefor. Beltran vs. Secretary of Health
Otherwise, the petition must fail. Based on the grounds G.R. No. 133640, entitled “Rodolfo S. Beltran, doing
1

raised by petitioners to challenge the constitutionality of the

National Blood Services Act of 1994 and its Implementing
Rules and Regulations, the Court finds that petitioners have
failed to overcome the presumption of constitutionality of the
business under the name and style, Our Lady of Fatima
Blood Bank, et al., vs. The Secretary of Health” and G.R.
No. 133661, entitled “Doctors Blood Bank Center vs.
2

law. As to whether the Act constitutes a wise legislation, Department of Health” are petitions for certiorari and
mandamus, respectively, seeking the annulment of the
following: (1) Section 7 of Republic Act No. 7719; and,
(2) Administrative Order (A.O.) No. 9, series of 1995.
Both petitions likewise pray for the issuance of a writ of
prohibitory injunction enjoining the Secretary of Health
from implementing and enforcing the aforementioned
law and its Implementing Rules and Regulations; and,
for a mandatory injunction ordering and commanding
the Secretary of Health to grant, issue or renew
petitioners’ license to operate free standing blood banks
(FSBB).
The above cases were consolidated in a resolution of
the Court En Banc dated June 2, 1998.
3
G.R. No. 139147, entitled “Rodolfo S. Beltran, doing
4
business under the name and style, Our Lady of Fatima
Blood Bank, et al., vs. The Secretary of Health,” on the
other hand, is a petition to show cause why respondent
Secretary of Health should not be held in contempt of
court.
This case was originally assigned to the Third
Division of this Court and later consolidated with G.R.
Nos. 133640 and 133661 in a resolution dated August 4,
1999. 5
Petitioners comprise the majority of the Board of
Directors of the Philippine Association of Blood Banks,
a duly regis-
_______________
1 Petition for Certiorari with Prayer for the Issuance of Writ of
Preliminary Prohibitory Injunction or Temporary Restraining Order,
dated May 20, 1998, and later an Amended Petition, dated June 1,
1998 under Rule 65 of the Rules of Court.
2 Petition for Mandamus with Prayer for the Issuance of Temporary
Restraining Order, Preliminary Prohibitory and Mandatory
Injunction, dated May 22, 1998.
3 Rollo (G.R. No. 133640), p. 106; Rollo (G.R. No. 133661), p. 69.
Petition, dated July 15, 1999.
4
5 Rollo (G.R. No. 139147), p. 34.
176
176 SUPREME COURT REPORTS ANNOTATED
Beltran vs. Secretary of Health
tered non-stock and non-profit association composed of
free standing blood banks.
Public respondent Secretary of Health is being sued
in his capacity as the public official directly involved
and charged with the enforcement and implementation
of the law in question.
The facts of the case are as follows:
Republic Act No. 7719 or the National Blood Services
Act of 1994 was enacted into law on April 2, 1994. The
Act seeks to provide an adequate supply of safe blood by
promoting voluntary blood donation and by regulating
blood banks in the country. It was approved by then
President Fidel V. Ramos on May 15, 1994 and was
subsequently published in the Official Gazette on
August 18, 1994. The law took effect on August 23,
1994.
On April 28, 1995, Administrative Order No. 9,
Series of 1995, constituting the Implementing Rules
and Regulations of said law was promulgated by
respondent Secretary of the Department of Health
(DOH). 6
Section 7 of R.A. 7719 provides:
7
“Section 7. Phase-out of Commercial Blood Banks.—All
commercial blood banks shall be phased-out over a period of
two (2) years after the effectivity of this Act, extendable to a
maximum period of two (2) years by the Secretary.”
Section 23 of Administrative Order No. 9 provides:
“Section 23. Process of Phasing Out.—The Department shall
effect the phasing-out of all commercial blood banks over a
period of two (2) years, extendible for a maximum period of
two (2) years after the effectivity of R.A. 7719. The decision 1971, was issued. The new rules and regulations
to extend shall be based on the result of a careful study and
review of the blood supply and demand and public safety.” 8
_______________
6Rollo (G.R. No. 133640), pp. 7-8.
7Annex “G” of Petition, Rollo (G.R. No. 133640), p. 79.
8Annex “H” of Petition, Rollo (G.R. No. 133640), p. 86.
177
VOL. 476, NOVEMBER 25, 2005 177 by the 1980’s, financial difficulties constrained the BRL
Beltran vs. Secretary of Health
Blood banking and blood transfusion services in the
country have been arranged in four (4) categories: blood
centers run by the Philippine National Red Cross
(PNRC), government-run blood services, private
hospital blood banks, and commercial blood services.
Years prior to the passage of the National Blood
Services Act of 1994, petitioners have already been
operating commercial blood banks under Republic Act
No. 1517, entitled “An Act Regulating the Collection,
Processing and Sale of Human Blood, and the
Establishment and Operation of Blood Banks and Blood
Processing Laboratories.” The law, which was enacted
on June 16, 1956, allowed the establishment and
operation by licensed physicians of blood banks and
blood processing laboratories. The Bureau of Research
and Laboratories (BRL) was created in 1958 and was
given the power to regulate clinical laboratories in 1966
under Republic Act No. 4688. In 1971, the Licensure
Section was created within the BRL. It was given the
duty to enforce the licensure requirements for blood
banks as well as clinical laboratories. Due to this
development, Administrative Order No. 156, Series of
triggered a stricter enforcement of the Blood Banking
Law, which was characterized by frequent spot checks,
immediate suspension and communication of such
suspensions to hospitals, a more systematic record-
keeping and frequent communication with blood banks
through monthly information bulletins. Unfortunately,
to reduce the frequency of its supervisory visits to the
blood banks.9
Meanwhile, in the international scene, concern for
the safety of blood and blood products intensified when
the dreaded disease Acquired Immune Deficiency
Syndrome (AIDS) was first described in 1979. In 1980,
the International Society of Blood Transfusion (ISBT)
formulated the Code of
_______________
9 Rollo (G.R. No. 133640), pp. 42-43.
178
178 SUPREME COURT REPORTS ANNOTATED
Beltran vs. Secretary of Health
Ethics for Blood Donation and Transfusion. In 1982, the
first case of transfusion-associated AIDS was described
in an infant. Hence, the ISBT drafted in 1984, a model
for a national blood policy outlining certain principles
that should be taken into consideration. By 1985, the
ISBT had disseminated guidelines requiring AIDS
testing of blood and blood products for transfusion.
10
 In 1989, another revision of the Blood Banking
Guidelines was made. The DOH issued Administrative
Order No. 57, Series of 1989, which classified banks into
primary, secondary and tertiary depending on the
services they provided. The standards were adjusted
according to this classification. For instance, floor area
requirements varied according to classification level.
The new guidelines likewise required Hepatitis B and
HIV testing, and that the blood bank be headed by a
pathologist or a hematologist. 11
In 1992, the DOH issued Administrative Order No.
118-A institutionalizing the National Blood Services
Program (NBSP). The BRL was designated as the
central office primarily responsible for the NBSP. The
program paved the way for the creation of a committee
that will implement the policies of the program and the
formation of the Regional Blood Councils.
In August 1992, Senate Bill No. 1011, entitled “An
Act Promoting Voluntary Blood Donation, Providing for
an Adequate Supply of Safe Blood, Regulating Blood
Banks and Providing Penalties for Violations Thereof,
and for other Purposes” was introduced in the Senate. 12
Meanwhile, in the House of Representatives, House
Bills No. 384, 546, 780 and 1978 were being deliberated
to address the issue of safety of the Philippine blood
bank system. Sub-
_______________
10 Id., at pp. 46-47.
11 Id., at p. 43.
12 Rollo (G.R. No. 133661), p. 99.
179
VOL. 476, NOVEMBER 25, 2005
Beltran vs. Secretary of Health
sequently, the Senate and House Bills were referred to
the appropriate committees and subsequently
consolidated. 13
In January of 1994, the New Tropical Medicine
Foundation, with the assistance of the U.S. Agency for
International Development (USAID) released its final
report of a study on the Philippine blood banking
system entitled “Project to Evaluate the Safety of the
Philippine Blood Banking System.” It was revealed that
of the blood units collected in 1992, 64.4% were supplied
by commercial blood banks, 14.5% by the PNRC, 13.7%
by government hospital-based blood banks, and 7.4% by
private hospital-based blood banks. During the time the
study was made, there were only twenty-four (24)
registered or licensed free-standing or commercial blood
banks in the country. Hence, with these numbers in
mind, the study deduced that each commercial blood
bank produces five times more blood than the Red Cross
and fifteen times more than the government-run blood
banks. The study, therefore, showed that the
Philippines heavily relied on commercial sources of
blood. The study likewise revealed that 99.6% of the
donors of commercial blood banks and 77.0% of the
donors of private-hospital based blood banks are paid
donors. Paid donors are those who receive remuneration
for donating their blood. Blood donors of the PNRC and
government-run hospitals, on the other hand, are
mostly voluntary. 14
It was further found, among other things, that blood
sold by persons to blood commercial banks are three
179 times more likely to have any of the four (4) tested
infections or blood transfusion transmissible diseases,
namely, malaria, syphilis, Hepatitis B and Acquired
Immune Deficiency Syndrome (AIDS) than those
donated to PNRC. 15
Commercial blood banks give paid donors varying
rates around P50 to P150, and because of this
arrangement, many
_______________
13 Id., at p. 100.
14 Id., at pp. 49-51.
15 Rollo (G.R. No. 133640), p. 59.
180
180 SUPREME COURT REPORTS ANNOTATED
Beltran vs. Secretary of Health
of these donors are poor, and often they are students,
who need cash immediately. Since they need the money,
these donors are not usually honest about their medical
or social history. Thus, blood from healthy, voluntary
donors who give their true medical and social history
are about three times much safer than blood from paid
donors. 16
What the study also found alarming is that many
Filipino doctors are not yet fully trained on the specific
indications for blood component transfusion. They are
not aware of the lack of blood supply and do not feel the
need to adjust their practices and use of blood and blood
products. It also does not matter to them where the
blood comes from. 17
On August 23, 1994, the National Blood Services Act
providing for the phase out of commercial blood banks
took effect. On April 28, 1995, Administrative Order No.
9, Series of 1995, constituting the Implementing Rules
and Regulations of said law was promulgated by DOH.
The phase-out period was extended for two years by
the DOH pursuant to Section 7 of Republic Act No. 7719
and Section 23 of its Implementing Rules and
Regulations. Pursuant to said Act, all commercial blood
banks should have been phased out by May 28, 1998.
Hence, petitioners were granted by the Secretary of
Health their licenses to open and operate a blood bank
only until May 27, 1998.
On May 20, 1998, prior to the expiration of the
licenses granted to petitioners, they filed a petition for
certiorari with application for the issuance of a writ of
preliminary injunction or temporary restraining order
under Rule 65 of the Rules of Court assailing the
constitutionality and validity of the aforementioned Act
and its Implementing Rules and Regulations. The case
was entitled “Rodolfo S. Beltran, doing business under
the name and style, Our Lady of Fatima Blood Bank,”
docketed as G.R. No. 133640.
_______________
Id.
16
Id.
17
181
VOL. 476, NOVEMBER 25, 2005 181
Beltran vs. Secretary of Health
On June 1, 1998, petitioners filed an Amended Petition
for Certiorari with Prayer for Issuance of a Temporary
Restraining Order, writ of preliminary mandatory
injunction and/or status quo ante order. 18
In the aforementioned petition, petitioners assail the
constitutionality of the questioned legal provisions,
namely, Section 7 of Republic Act No. 7719 and Section 7719, the petition submitted the following
23 of Administrative Order No. 9, Series of 1995, on the questions for resolution:
22

following grounds:19 _______________

18 Rollo (G.R. No. 133640), p. 112.

1. 1.The questioned legal provisions of the National 19 Rollo (G.R. No. 133640), p. 120.
Blood Services Act and its Implementing Rules 20 Rollo (G.R. No. 133661), p. 3.

violate the equal protection clause for 21 Rollo (G.R. No. 133640), p. 106.

22 Rollo (G.R. No. 133661), pp. 7-8.

irrationally discriminating against free
182
standing blood banks in a manner which is not 182 SUPREME COURT REPORTS ANNOTATED
germane to the purpose of the law;
Beltran vs. Secretary of Health
2. 2.The questioned provisions of the National
Blood Services Act and its Implementing Rules
1. 1.Was it passed in the exercise of police power,
represent undue delegation if not outright
and was it a valid exercise of such power?
abdication of the police power of the state; and,
2. 2.Does it not amount to deprivation of property
3. 3.The questioned provisions of the National
without due process?
Blood Services Act and its Implementing Rules
3. 3.Does it not unlawfully impair the obligation of
are unwarranted deprivation of personal
contracts?
liberty.
4. 4.With the commercial blood banks being
On May 22, 1998, the Doctors Blood Center filed a abolished and with no ready machinery to
similar petition for mandamus with a prayer for the deliver the same supply and services, does R.A.
7719 truly serve the public welfare?
issuance of a temporary restraining order, preliminary
prohibitory and mandatory injunction before this Court
On June 2, 1998, this Court issued a Resolution
entitled “Doctors Blood Center vs. Department of
directing respondent DOH to file a consolidated
Health,” docketed as G.R. No. 133661. This was
20

comment. In the same Resolution, the Court issued a

consolidated with G.R. No. 133640. 21

temporary restraining order (TRO) for respondent to

Similarly, the petition attacked the constitutionality
cease and desist from implementing and enforcing
of Republic Act No. 7719 and its implementing rules
Section 7 of Republic Act No. 7719 and its implementing
and regulations, thus, praying for the issuance of a
rules and regulations until further orders from the
license to operate commercial blood banks beyond May
Court.
27, 1998. Specifically, with regard to Republic Act No.
23
 On August 26, 1998, respondent Secretary of HealthNECESSARY EXPENSES ENTAILED IN COLLECTING
filed a Consolidated Comment on the petitions for AND PROCESSING OF BLOOD. THE SERVICE FEE
certiorari and mandamus in G.R. Nos. 133640 and SHALL BE MADE UNIFORM THROUGH GUIDELINES
133661, with opposition to the issuance of a temporaryTO BE SET BY THE DEPARTMENTOF HEALTH.”
I am supporting Mr. President, the finding of a study
restraining order.
24

called “Project to Evaluate the Safety of the Philippine Blood

In the Consolidated Comment, respondent Secretary
Banking System.” This has been taken note of. This is a
of Health submitted that blood from commercial blood study done with the assistance of the USAID by doctors
banks is unsafe and therefore the State, in the exercise
under the New Tropical Medicine Foundation in Alabang.
of its police power, can close down commercial blood Part of the long-term measures proposed by this
banks to protect the public. He cited the record of particular study is to improve laws, outlaw buying and
deliberations on Senate Bill No. 1101 which later selling of blood and legally define good manufacturing
became Republic Act No. 7719, and the sponsorship processes for blood. This goes to the very heart of my
speech of Senator Orlando Mercado. amendment which seeks to put into law the principle that
The rationale for the closure of these commercial blood should not be subject of commerce of man.
blood banks can be found in the deliberations of Senate ...
The Presiding Officer Senator Aquino: What does the
Bill No. 1011, excerpts of which are quoted below:
sponsor say?
Senator Mercado: I am providing over a period of two
Senator Webb: Mr. President, just for clarity, I would
years to phase out all commercial blood banks. So like to find out how the Gentleman defines a commercial
that in the end, the new section would have a blood bank. I am at a loss at times what a commercial blood
provision that states: bank really is.
_______________ Senator Mercado: We have a definition, I believe, in the
measure, Mr. President.
23 Rollo (G.R. No. 133640), pp. 107-108.
24 Rollo (G.R. No. 133661), p. 98. The Presiding Officer [Senator Aquino]: It is a
183 business where profit is considered.
VOL. 476, NOVEMBER 25, 2005 183 Senator Mercado: If the Chairman of the Committee
would accept it, we can put a provision on Section 3, a
Beltran vs. Secretary of Health
definition of a commercial blood bank, which, as defined in
“ALL COMMERCIAL BLOOD BANKS SHALL BE PHASED
this law, exists for profit and engages in the buying and
OUT OVER A PERIOD OF TWO YEARS AFTER THE
selling of blood or its components.
EFFECTIVITY OF THIS ACT. BLOOD SHALL BE
Senator Webb: That is a good description, Mr.
COLLECTED FROM VOLUNTARY DONORS ONLY AND
President.
THE SERVICE FEE TO BE CHARGED FOR EVERY
...
BLOOD PRODUCT ISSUED SHALL BE LIMITED TO THE
 Senator Mercado: I refer, Mr. President, to a letter
written by Dr. Jaime Galvez-Tan, the Chief of Staff,
Undersecretary of Health, to the good Chairperson of the
Committee on Health.
184
184 SUPREME COURT REPORTS ANNOTATED
Beltran vs. Secretary of Health
In recommendation No. 4, he says:
“The need to phase out all commercial blood banks
within a two-year period will give the Department of
Health enough time to build up government’s
capability to provide an adequate supply of blood for
the needs of the nation. . .the use of blood for transfusion
is a medical service and not a sale of commodity.”
Taking into consideration the experience of the National
Kidney Institute, which has succeeded in making the
hospital 100 percent dependent on voluntary blood donation,
here is a success story of a hospital that does not buy blood.
All those who are operated on and need blood have to
convince their relatives or have to get volunteers who would
donate blood. . .
If we give the responsibility of the testing of blood to those
commercial blood banks, they will cut corners because it will
protect their profit.
In the first place, the people who sell their blood are the
people who are normally in the high-risk category. So we
should stop the system of selling and buying blood so that we
can go into a national voluntary blood program.
It has been said here in this report, and I quote:
“Why is buying and selling of blood not safe? This is not
safe because a donor who expects payment for his blood will
not tell the truth about his illnesses and will deny any risky
social behavior such as sexual promiscuity which increases
the risk of having syphilis or AIDS or abuse of intravenous
addictive drugs. Laboratory tests are of limited value and
will not detect early infections. Laboratory tests are required
only for four diseases in the Philippines. There are other
blood transmissible diseases we do not yet screen for and
there could be others where there are no tests available yet.
A blood bank owner expecting to gain profit from selling
blood will also try his best to limit his expenses. Usually he
tries to increase his profit by buying cheaper reagents or test
kits, hiring cheaper manpower or skipping some tests
altogether. He may also try to sell blood even though these
have infections in them. Because there is no existing system
of counterchecking these, the blood bank owner can usually
get away with many unethical practices.
The experience of Germany, Mr. President is illustrative
of this issue. The reason why contaminated blood was sold
was that there
185
VOL. 476, NOVEMBER 25, 2005 185
Beltran vs. Secretary of Health
were corners cut by commercial blood banks in the testing
process. They were protecting their profits.25
The sponsorship speech of Senator Mercado further
elucidated his stand on the issue:
...
Senator Mercado: Today, across the country, hundreds
of poverty-stricken, sickly and weak Filipinos, who,
unemployed, without hope and without money to buy the
next meal, will walk into a commercial blood bank, extend
their arms and plead that their blood be bought. They will lie
about their age, their medical history. They will lie about
when they last sold their blood. For doing this, they will
receive close to a hundred pesos. This may tide them over for
the next few days. Of course, until the next bloodletting.
This same blood will travel to the posh city hospitals and
urbane medical centers. This same blood will now be bought
by the rich at a price over 500% of the value for which it was
sold. Between this buying and selling, obviously, someone
has made a very fast buck.
Every doctor has handled at least one transfusion-related
disease in an otherwise normal patient. Patients come in for
minor surgery of the hand or whatever and they leave with
hepatitis B. A patient comes in for an appendectomy and he
leaves with malaria. The worst nightmare: A patient comes
in for a Caesarian section and leaves with AIDS.
We do not expect good blood from donors who sell their
blood because of poverty. The humane dimension of blood
transfusion is not in the act of receiving blood, but in the act
of giving it. . .
For years, our people have been at the mercy of
commercial blood banks that lobby their interests among
medical technologists, hospital administrators and
sometimes even physicians so that a proactive system for
collection of blood from healthy donors becomes difficult,
tedious and unrewarding.
The Department of Health has never institutionalized a
comprehensive national program for safe blood and for
voluntary blood donation even if this is a serious public
health concern and has fallen
_______________
25 Record of the Senate, Vol. IV, No. 59, pp. 286-287; Rollo (G.R. No.
133661), pp. 115-120.
186
186 SUPREME COURT REPORTS ANNOTATED
Beltran vs. Secretary of Health
for the linen of commercial blood bankers, hook, line and
sinker because it is more convenient to tell the patient to buy
blood.
Commercial blood banks hold us hostage to their threat
that if we are to close them down, there will be no blood
supply. This is true if the Government does not step in to
ensure that safe supply of blood. We cannot allow commercial
interest groups to dictate policy on what is and what should
be a humanitarian effort. This cannot and will never work
because their interest in blood donation is merely monetary.
We cannot expect commercial blood banks to take the lead in
voluntary blood donation. Only the Government can do it,
and the Government must do it.” 26
On May 5, 1999, petitioners filed a Motion for Issuance
of Expanded Temporary Restraining Order for the
Court to order respondent Secretary of Health to cease
and desist from announcing the closure of commercial
blood banks, compelling the public to source the needed
blood from voluntary donors only, and committing
similar acts “that will ultimately cause the shutdown of
petitioners’ blood banks.” 27
On July 8, 1999, respondent Secretary filed his
Comment and/or Opposition to the above motion stating
that he has not ordered the closure of commercial blood
banks on account of the Temporary Restraining Order
(TRO) issued on June 2, 1998 by the Court. In
compliance with the TRO, DOH had likewise ceased to
distribute the health advisory leaflets, posters and
flyers to the public which state that “blood banks are
closed or will be closed.” According to respondent
Secretary, the same were printed and circulated in
anticipation of the closure of the commercial blood
banks in accordance with R.A. No. 7719, and were
printed and circulated prior to the issuance of the TRO. 28
On July 15, 1999, petitioners in G.R. No.
133640 filed a Petition to Show Cause Why Public
Respondent Should Not be
_______________
 26
Record of the Senate, Volume 1, No. 13, pp. 434-436; Rollo (G.R.
No. 133661), pp. 121-123.
27 Rollo (G.R. No. 133640), pp. 227-232.
28 Id., at pp. 406-408.
187
VOL. 476, NOVEMBER 25, 2005
Beltran vs. Secretary of Health
Held in Contempt of Court, docketed as G.R. No.
139147, citing public respondent’s willful disobedience
of or resistance to the restraining order issued by the
Court in the said case. Petitioners alleged that
respondent’s act constitutes circumvention of the
temporary restraining order and a mockery of the
authority of the Court and the orderly administration of
justice. Petitioners added that despite the issuance of
29
the temporary restraining order in G.R. No. 133640,
respondent, in his effort to strike down the existence of
commercial blood banks, disseminated misleading
information under the guise of health advisories, press
releases, leaflets, brochures and flyers stating, among
others, that “this year [1998] all commercial blood
banks will be closed by 27 May. Those who need blood
will have to rely on government blood
banks.” Petitioners further claimed that respondent
30
Secretary of Health announced in a press conference
during the Blood Donor’s Week that commercial blood
banks are “illegal and dangerous” and that they “are at
the moment protected by a restraining order on the
basis that their commercial interest is more important
than the lives of the people.” These were all posted in
bulletin boards and other conspicuous places in all
government hospitals as well as other medical and
health centers. 31
In respondent Secretary’s Comment to the Petition
to Show Cause Why Public Respondent Should Not Be
Held in Contempt of Court, dated January 3, 2000, it
was explained that nothing was issued by the
187 department ordering the closure of commercial blood
banks. The subject health advisory leaflets pertaining
to said closure pursuant to Republic Act No. 7719 were
printed and circulated prior to the Court’s issuance of a
temporary restraining order on June 21, 1998. 32
_______________
Rollo (G.R. No. 139147), p. 9.
29
Rollo (G.R. No. 139147), pp. 5-6; Annexes “A” to “C-3,” pp. 14-33.
30
Rollo (G.R. No. 139147), p. 6.
31
Id., at pp. 49-50.
32
188
188 SUPREME COURT REPORTS ANNOTATED
Beltran vs. Secretary of Health
Public respondent further claimed that the primary
purpose of the information campaign was “to promote
the importance and safety of voluntary blood donation
and to educate the public about the hazards of
patronizing blood supplies from commercial blood
banks.” In doing so, he was merely performing his
33
regular functions and duties as the Secretary of Health
to protect the health and welfare of the public.
Moreover, the DOH is the main proponent of the
voluntary blood donation program espoused by Republic
Act No. 7719, particularly Section 4 thereof which
provides that, in order to ensure the adequate supply of
human blood, voluntary blood donation shall be
promoted through public education, promotion in
schools, professional education, establishment of blood
services network, and walking blood donors.
Hence, by authority of the law, respondent Secretary
contends that he has the duty to promote the program
of voluntary blood donation. Certainly, his act of
encouraging the public to donate blood voluntarily and
educating the people on the risks associated with blood
coming from a paid donor promotes general health and
welfare and which should be given more importance
than the commercial businesses of petitioners. 34
On July 29, 1999, interposing personal and
substantial interest in the case as taxpayers and
citizens, a Petition-in-Intervention was filed
interjecting the same arguments and issues as laid
down by petitioners in G.R. Nos. 133640 and 133661,
namely, the unconstitutionality of the Acts, and, the
issuance of a writ of prohibitory injunction. The
intervenors are the immediate relatives of individuals
who had died allegedly because of shortage of blood
supply at a critical time. 35
_______________
33 Id., at p. 50.
34 Id., at pp. 50-51.
35 Id., at pp. 435-495.
189
VOL. 476, NOVEMBER 25, 2005
Beltran vs. Secretary of Health
The intervenors contended that Republic Act No. 7719
constitutes undue delegation of legislative powers and
unwarranted deprivation of personal liberty. 36
In a resolution, dated September 7, 1999, and
without giving due course to the aforementioned
petition, the Court granted the Motion for Intervention
that was filed by the above intervenors on August 9,
1999.
In his Comment to the petition-in-intervention,
respondent Secretary of Health stated that the sale of
blood is contrary to the spirit and letter of the Act that
“blood donation is a humanitarian act” and “blood
transfusion is a professional medical service and not a
sale of commodity (Section 2[a] and [b] of Republic Act
No. 7719). The act of selling blood or charging fees other
than those allowed by law is even penalized under
Section 12.” 37
Thus, in view of these, the Court is now tasked to
pass upon the constitutionality of Section 7 of Republic
Act No. 7719 or the National Blood Services Act of 1994
and its Implementing Rules and Regulations.
In resolving the controversy, this Court deems it
necessary to address the issues and/or questions raised
by petitioners concerning the constitutionality of the
aforesaid Act in G.R. No. 133640 and 133661 as
summarized hereunder:
I
WHETHER OR NOT SECTION 7 OF R.A. 7719
CONSTITUTES UNDUE DELEGATION OF
189 LEGISLATIVE POWER;
II
WHETHER OR NOT SECTION 7 OF R.A. 7719 AND ITS
IMPLEMENTING RULES AND REGULATIONS VIOLATE
THE EQUAL PROTECTION CLAUSE;
_______________
 Rollo (G.R. No. 133640), pp. 467-468.
36
Rollo (G.R. No. 133640), pp. 685-686.
37
190
190 SUPREME COURT REPORTS ANNOTATED
Beltran vs. Secretary of Health
III
WHETHER OR NOT SECTION 7 OF R.A. 7719 AND ITS
IMPLEMENTING RULES AND REGULATIONS VIOLATE
THE NON-IMPAIRMENT CLAUSE;
IV
WHETHER OR NOT SECTION 7 OF R.A. 7719 AND ITS
IMPLEMENTING RULES AND REGULATIONS
CONSTITUTE DEPRIVATION OF PERSONAL LIBERTY
AND PROPERTY;
V VOL. 476, NOVEMBER 25, 2005
WHETHER OR NOT R.A. 7719 IS A VALID EXERCISE
OF POLICE POWER; and,
VI
WHETHER OR NOT SECTION 7 OF R.A. 7719 AND ITS
IMPLEMENTING RULES AND REGULATIONS TRULY
SERVE PUBLIC WELFARE.
As to the first ground upon which the constitutionality
of the Act is being challenged, it is the contention of
petitioners that the phase out of commercial or free
standing blood banks is unconstitutional because it is
an improper and unwarranted delegation of legislative
power. According to petitioners, the Act was incomplete
when it was passed by the Legislature, and the latter
failed to fix a standard to which the Secretary of
Health must conform in the performance of his
functions. Petitioners also contend that the two-year
extension period that may be granted by the Secretary
of Health for the phasing out of commercial blood banks
pursuant to Section 7 of the Act constrained the
Secretary to legislate, thus constituting undue
delegation of legislative power.
In testing whether a statute constitutes an undue
delegation of legislative power or not, it is usual to
inquire whether the statute was complete in all its
terms and provisions when it left the hands of the
Legislature so that nothing was left to the judgment of
the administrative body or any other ap-
191
191
Beltran vs. Secretary of Health
pointee or delegate of the Legislature. Except as to
38
matters of detail that may be left to be filled in by rules
and regulations to be adopted or promulgated by
executive officers and administrative boards, an act of
the Legislature, as a general rule, is incomplete and
hence invalid if it does not lay down any rule or definite
standard by which the administrative board may be
guided in the exercise of the discretionary powers
delegated to it.
39
Republic Act No. 7719 or the National Blood Services
Act of 1994 is complete in itself. It is clear from the
provisions of the Act that the Legislature intended
primarily to safeguard the health of the people and has
mandated several measures to attain this objective.
One of these is the phase out of commercial blood banks
in the country. The law has sufficiently provided a
definite standard for the guidance of the Secretary of
Health in carrying out its provisions, that is, the
promotion of public health by providing a safe and
adequate supply of blood through voluntary blood
donation. By its provisions, it has conferred the power
and authority to the Secretary of Health as to its
execution, to be exercised under and in pursuance of the
law.
Congress may validly delegate to administrative
agencies the authority to promulgate rules and
regulations to implement a given legislation and
effectuate its policies. The Secretary of Health has
40
been given, under Republic Act No. 7719, broad powers
to execute the provisions of said Act. Section 11 of the
Act states:
“SEC. 11. Rules and Regulations.—The implementation of
the provisions of the Act shall be in accordance with the rules
and regulations to be promulgated by the Secretary, within
sixty (60) days from the approval hereof. . .”
_______________
38 See United States v. Ang Tang Ho, 43 Phil. 1 (1922).
39 People v. Vera, 65 Phil. 56 (1937).
40 Vda. de Pineda v. Peña, G.R. No. 57665, July 2, 1990, 187 SCRA
22.
192
192 SUPREME COURT REPORTS ANNOTATED
Beltran vs. Secretary of Health
This is what respondent Secretary exactly did when
DOH, by virtue of the administrative body’s authority
and expertise in the matter, came out with
Administrative Order No. 9, series of 1995 or the Rules
and Regulations Implementing Republic Act No. 7719.
Administrative Order No. 9 effectively filled in the
details of the law for its proper implementation.
Specifically, Section 23 of Administrative Order No.
9 provides that the phase-out period for commercial
blood banks shall be extended for another two years
until May 28, 1998 “based on the result of a careful
study and review of the blood supply and demand and
public safety.” This power to ascertain the existence of
facts and conditions upon which the Secretary may
effect a period of extension for said phase-out can be
delegated by Congress. The true distinction between the
power to make laws and discretion as to its execution is
illustrated by the fact that the delegation of power to
make the law, which necessarily involves a discretion
as to what it shall be, and conferring an authority or
discretion as to its execution, to be exercised under and
in pursuance of the law. The first cannot be done; to the
latter no valid objection can be made. 41
In this regard, the Secretary did not go beyond the
powers granted to him by the Act when said phase-out
period was extended in accordance with the Act as laid
out in Section 2 thereof:
“SECTION 2. Declaration of Policy.—In order to promote
public health, it is hereby declared the policy of the state:
1. a)to promote and encourage voluntary blood donation
by the citizenry and to instill public consciousness of
the principle that blood donation is a humanitarian
act;
_______________
 41Id., citing Cincinnati, W. & Z.R. Co. v. Clinton County Comrs, 1
Ohio St., 77, 88 (1852); Cruz v. Youngberg, 56 Phil. 234 (1931).
193
VOL. 476, NOVEMBER 25, 2005
Beltran vs. Secretary of Health
1. b)to lay down the legal principle that the
provision of blood for transfusion is a medical
service and not a sale of commodity;
2. c)to provide for adequate, safe, affordable and
equitable distribution of blood supply and blood
products; d) to inform the public of the need for
voluntary blood donation to curb the hazards
caused by the commercial sale of blood;
3. e)to teach the benefits and rationale of voluntary
blood donation in the existing health subjects of
the formal education system in all public and
private schools as well as the non-formal
system;
4. f)to mobilize all sectors of the community to
participate in mechanisms for voluntary and
non-profit collection of blood;
5. g)to mandate the Department of Health to
establish and organize a National Blood
Transfusion Service Network in order to
rationalize and improve the provision of
adequate and safe supply of blood;
6. h)to provide for adequate assistance to
institutions promoting voluntary blood donation
and providing non-profit blood services, either
through a system of reimbursement for costs
from patients who can afford to pay, or
donations from governmental and non-
governmental entities;
193 7. i)to require all blood collection units and blood
banks/centers to operate on a non-profit basis;
8. j)to establish scientific and professional
standards for the operation of blood collection
units and blood banks/ centers in the
Philippines;
9. k)to regulate and ensure the safety of all
activities related to the collection, storage and
banking of blood; and,
10. l)to require upgrading of blood banks/centers to
include preventive services and education to
control spread of blood transfusion
transmissible diseases.”
Petitioners also assert that the law and its
implementing rules and regulations violate the equal
protection clause enshrined in the Constitution because
it unduly discriminates
194
194 SUPREME COURT REPORTS ANNOTATED
Beltran vs. Secretary of Health
against commercial or free standing blood banks in a
manner that is not germane to the purpose of the law. 42
What may be regarded as a denial of the equal
protection of the laws is a question not always easily
determined. No rule that will cover every case can be
formulated. Class legislation, discriminating against
some and favoring others is prohibited but classification
on a reasonable basis and not made arbitrarily or
capriciously is permitted. The classification, however, to
be reasonable: (a) must be based on substantial
distinctions which make real differences; (b) must be
germane to the purpose of the law; (c) must not be
limited to existing conditions only; and, (d) must apply
equally to each member of the class. 43
Republic Act No. 7719 or The National Blood
Services Act of 1994, was enacted for the promotion of
public health and welfare. In the aforementioned study
conducted by the New Tropical Medicine Foundation, it
was revealed that the Philippine blood banking system
is disturbingly primitive and unsafe, and with its
current condition, the spread of infectious diseases such
as malaria, AIDS, Hepatitis B and syphilis chiefly from
blood transfusion is unavoidable. The situation becomes
more distressing as the study showed that almost 70%
of the blood supply in the country is sourced from paid
blood donors who are three times riskier than voluntary
blood donors because they are unlikely to disclose their
medical or social history during the blood screening.
The above study led to the passage of Republic Act
No. 7719, to instill public consciousness of the
importance and benefits of voluntary blood donation,
safe blood supply and proper blood collection from
healthy donors. To do this, the
_______________
42 Rollo (G.R. No. 133640), p. 120; Rollo (G.R. No. 133661), p. 105.
43 People v. Vera, supra.
44 A Final Report on the Project to Evaluate the Safety of the
Philippine Blood Banking System conducted on September 28, 1993–
January 15, 1994, Rollo (G.R. No. 133640), Annex “A,” p. 41.
195
VOL. 476, NOVEMBER 25, 2005
Beltran vs. Secretary of Health
Legislature decided to order the phase out of
commercial blood banks to improve the Philippine blood
banking system, to regulate the supply and proper
collection of safe blood, and so as not to derail the
implementation of the voluntary blood donation
program of the government. In lieu of commercial blood
banks, non-profit blood banks or blood centers, in strict
adherence to professional and scientific standards to be
established by the DOH, shall be set in place. 45
Based on the foregoing, the Legislature never
intended for the law to create a situation in which
unjustifiable discrimination and inequality shall be
allowed. To effectuate its policy, a classification was
made between nonprofit blood banks/ centers and
commercial blood banks. We deem the classification to
be valid and reasonable for the following reasons:
One, it was based on substantial distinctions. The
44
former operates for purely humanitarian reasons and as
a medical service while the latter is motivated by profit.
Also, while the former wholly encourages voluntary
blood donation, the latter treats blood as a sale of
commodity.
Two, the classification, and the consequent phase out
of commercial blood banks is germane to the purpose of
the law, that is, to provide the nation with an adequate
supply of safe blood by promoting voluntary blood
donation and treating blood transfusion as a
humanitarian or medical service rather than a
commodity. This necessarily involves the phase out of
195 commercial blood banks based on the fact that they
operate as a business enterprise, and they source their
blood supply from paid blood donors who are considered
unsafe compared to voluntary blood donors as shown by
the USAID-sponsored study on the Philippine blood
banking system.
Three, the Legislature intended for the general
application of the law. Its enactment was not solely to
address the pecu-
_______________
Rollo (G.R. No. 133661), pp. 115-124.
45
196
196 SUPREME COURT REPORTS ANNOTATED
Beltran vs. Secretary of Health
liar circumstances of the situation nor was it intended
to apply only to the existing conditions.
Lastly, the law applies equally to all commercial
blood banks without exception.
Having said that, this Court comes to the inquiry as
to whether or not Republic Act No. 7719 constitutes a
valid exercise of police power.
The promotion of public health is a fundamental
obligation of the State. The health of the people is a
primordial governmental concern. Basically, the
National Blood Services Act was enacted in the exercise
of the State’s police power in order to promote and
preserve public health and safety.
Police power of the state is validly exercised if (a) the
interest of the public generally, as distinguished from
those of a particular class, requires the interference of
the State; and, (b) the means employed are reasonably
necessary to the attainment of the objective sought to
be accomplished and not unduly oppressive upon
individuals. 46
In the earlier discussion, the Court has mentioned of
the avowed policy of the law for the protection of public
health by ensuring an adequate supply of safe blood in
the country through voluntary blood donation.
Attaining this objective requires the interference of the
State given the disturbing condition of the Philippine
blood banking system.
In serving the interest of the public, and to give
meaning to the purpose of the law, the Legislature
deemed it necessary to phase out commercial blood
banks. This action may seriously affect the owners and
operators, as well as the employees, of commercial blood
banks but their interests must give way to serve a
higher end for the interest of the public.
_______________
46 Department of Education, Culture and Sports (DECS) and
Director of Center for Educational Measurement v. Roberto Rey C. San
Diego and Judge Teresita Dizon-Capulong, G.R. No. 89572, December
21, 1989, 180 SCRA 533.
197
VOL. 476, NOVEMBER 25, 2005 197
Beltran vs. Secretary of Health
The Court finds that the National Blood Services Act is
a valid exercise of the State’s police power. Therefore,
the Legislature, under the circumstances, adopted a
course of action that is both necessary and reasonable
for the common good. Police power is the State authority
to enact legislation that may interfere with personal
liberty or property in order to promote the general
welfare. 47
It is in this regard that the Court finds the related
grounds and/or issues raised by petitioners, namely,
deprivation of personal liberty and property, and
violation of the non-impairment clause, to be
unmeritorious.
Petitioners are of the opinion that the Act is
unconstitutional and void because it infringes on the
freedom of choice of an individual in connection to what
he wants to do with his blood which should be outside
the domain of State intervention. Additionally, and in
relation to the issue of classification, petitioners
asseverate that, indeed, under the Civil Code, the
human body and its organs like the heart, the kidney
and the liver are outside the commerce of man but this
cannot be made to apply to human blood because the
latter can be replenished by the body. To treat human
blood equally as the human organs would constitute
invalid classification. 48
Petitioners likewise claim that the phase out of the
commercial blood banks will be disadvantageous to
them as it will affect their businesses and existing
contracts with hospitals and other health institutions,
hence Section 7 of the Act should be struck down
because it violates the non-impairment clause provided
by the Constitution.
As stated above, the State, in order to promote the
general welfare, may interfere with personal liberty,
with property, and with business and occupations.
Thus, persons may be subjected to certain kinds of
restraints and burdens in order
_______________
47Pita v. Court of Appeals, G.R. No. 80806, October 5, 1989, 178
SCRA 362.
48 Rollo (G.R. No. 133661), p. 12.
198
198 SUPREME COURT REPORTS ANNOTATED
Beltran vs. Secretary of Health
to secure the general welfare of the State and to this
fundamental aim of government, the rights of the
individual may be subordinated. 49
Moreover, in the case of Philippine Association of
Service Exporters, Inc. v. Drilon, settled is the rule that
50
the non-impairment clause of the Constitution
must yield to the loftier purposes targeted by the
government. The right granted by this provision must
submit to the demands and necessities of the State’s
power of regulation. While the Court understands the
grave implications of Section 7 of the law in question,
the concern of the Government in this case, however, is
not necessarily to maintain profits of business firms. In
the ordinary sequence of events, it is profits that suffer
as a result of government regulation.
Furthermore, the freedom to contract is not absolute;
all contracts and all rights are subject to the police
power of the State and not only may regulations which
affect them be established by the State, but all such
regulations must be subject to change from time to time,
as the general well-being of the community may
require, or as the circumstances may change, or as
experience may demonstrate the necessity. This 51
doctrine was reiterated in the case of Vda. de Genuino
v. Court of Agrarian Relations where the Court held
52
that individual rights to contract and to property have
to give way to police power exercised for public welfare.
As for determining whether or not the shutdown of
commercial blood banks will truly serve the general
public considering the shortage of blood supply in the
country as proffered by petitioners, we maintain that
the wisdom of the Legislature in the lawful exercise of
its power to enact laws can-
_______________
49Patalinghug v. Court of Appeals, G.R. No. 104786, January 27,
1994, 229 SCRA 554.
50No. L-81958, June 30, 1988, 163 SCRA 386.
51Ongsiako v. Gamboa, 86 Phil. 50 (1950).
No. L-25035, February 26, 1968, 22 SCRA 792.
52
199
VOL. 476, NOVEMBER 25, 2005
Beltran vs. Secretary of Health
not be inquired into by the Court. Doing so would be in
derogation of the principle of separation of powers.
That, under the circumstances, proper regulation of
all blood banks without distinction in order to achieve
the objective of the law as contended by petitioners is,
of course, possible; but, this would be arguing on what
the law may be or should be and not what the law is.
Between is and ought there is a far cry. The wisdom and
propriety of legislation is not for this Court to pass
upon. 54
Finally, with regard to the petition for contempt
in G.R. No. 139147, on the other hand, the Court finds
respondent Secretary of Health’s explanation
satisfactory. The statements in the flyers and posters
were not aimed at influencing or threatening the Court
in deciding in favor of the constitutionality of the law.
Contempt of court presupposes a contumacious
attitude, a flouting or arrogant belligerence in defiance
of the court. There is nothing contemptuous about the
55
statements and information contained in the health
advisory that were distributed by DOH before the TRO
was issued by this Court ordering the former to cease
and desist from distributing the same.
In sum, the Court has been unable to find any
constitutional infirmity in the questioned provisions of
the National Blood Services Act of 1994 and its
Implementing Rules and Regulations.
The fundamental criterion is that all reasonable
doubts should be resolved in favor of the
199 constitutionality of a statute. Every law has in its favor
the presumption of constitutionality. For a law to be
nullified, it must be shown that there is a clear and
unequivocal breach of the Constitution.
53
_______________
53Misolas v. Panga, G.R. No. 83341, January 30, 1990, 181 SCRA
648.
54People v. Vera, supra.
55People v. Maceda, G.R. Nos. 89591-96, August 13, 1990, 188
SCRA 532.
200
200 SUPREME COURT REPORTS ANNOTATED
Beltran vs. Secretary of Health
The ground for nullity must be clear and beyond
reasonable doubt. Those who petition this Court to
56
declare a law, or parts thereof, unconstitutional must
clearly establish the basis therefor. Otherwise, the
petition must fail.
Based on the grounds raised by petitioners to
challenge the constitutionality of the National Blood
Services Act of 1994 and its Implementing Rules and
Regulations, the Court finds that petitioners have failed
to overcome the presumption of constitutionality of the
law. As to whether the Act constitutes a wise
legislation, considering the issues being raised by
petitioners, is for Congress to determine. 57
WHEREFORE, premises considered, the Court
renders judgment as follows:
1. 1.In G.R. Nos. 133640 and 133661, the Court
UPHOLDS THE VALIDITY of Section 7 of
Republic Act No. 7719, otherwise known as the
National Blood Services Act of 1994, and
Administrative Order No. 9, Series of 1995 or
the Rules and Regulations Implementing
Republic Act No. 7719. The petitions are
DISMISSED. Consequently, the Temporary
Restraining Order issued by this Court on June
2, 1998, is LIFTED.
2. 2.In G.R. No. 139147, the petition seeking to cite
the Secretary of Health in contempt of court is
DENIED for lack of merit.
No costs.
SO ORDERED.
Davide,
Jr. (C.J.), Puno, Panganiban, Quisumbing, Ynares-
Santiago, Sandoval-Gutierrez, Carpio, Austria-Marti-
_______________
56 Basco
v. Philippine Amusements and Gaming Corporation
(PAGCOR), G.R. No. 91649, May 14, 1991, 197 SCRA 52,
citing Peralta v. Commission on Elections, 82 SCRA 30 (1978); Yu
Cong Eng v. Trinidad, 47 Phil. 387.
57 Basco v. Philippine Amusements and Gaming Corporation,
supra.
201
VOL. 476, NOVEMBER 25, 2005 201
Beltran vs. Secretary of Health
nez, Corona, Carpio-Morales, Callejo,
Sr., Tinga and Garcia, JJ., concur.
Chico-Nazario, J.,On Leave.
Petitions in G.R. Nos. 133640 and 133661 dismissed,
validity of Section 7, National Blood Service Act of 1994
(RA No. 7719) and Rules and Regulations Implementing
RA No. 7719 (Administrative Order No. 9, Series of
1995) upheld. Petition in G.R. No. 139147 denied.
Notes.—The constitutional guarantee of non-
impairment of contracts is subject to the police power of
the state and to reasonable legislative regulations
promoting public health, morals, safety and welfare.
(Bogo-Medellin Sugarcane Planters Association, Inc. vs.
National Labor Relations Commission, 296 SCRA
108 [1998])
The phrase “affected with public interest” means
that an industry is subject to control for the public good,
and has been considered as the equivalent of “subject to
the exercise of the police power.” Constitutions are
widely understood to withhold from legislatures any
authority to bargain away their police power for the
power to protect the public interest is beyond
abnegation. (Del Mar vs. Philippine Amusement and
Gaming Corporation, 346 SCRA 485[2000])
When the government temporarily takes over a
business affected with public interest pursuant to
Article XII, Section 17 of the Constitution, it is not
required to compensate the private entity-owner of the
said business as there is no transfer of ownership,
whether permanent or temporary, and the private
entity-owner affected by the temporary takeover
cannot, likewise, claim just compensation for the use of
said business and its properties as the temporary
takeover by the government is in the exercise of its
police power and not of its power of eminent domain.
(Agan, Jr. vs. Philippine International Air Terminals
Co., Inc., 402 SCRA 612[2003])

——o0o——

202

G.R. No. 194561. September 14, 2016.*
DRUGSTORES ASSOCIATION OF THE
PHILIPPINES, INC. and NORTHERN LUZON DRUG
CORPORATION, petitioners, vs.NATIONAL
COUNCIL ON DISABILITY AFFAIRS;
DEPARTMENT OF HEALTH; DEPARTMENT OF
FINANCE; BUREAU OF INTERNAL REVENUE;
DEPARMENT OF THE INTERIOR AND LOCAL
GOVERNMENT; and DEPARTMENT OF SOCIAL
WELFARE AND DEVELOPMENT, respondents.
Political Law; Police Power; Police power is the power of
the state to promote public welfare by restraining and
regulating the use of liberty and property.—Police power is
the power of the state to promote public welfare by
restraining and regulating the use of liberty and property.
On the other hand, the power of eminent domain is the
inherent right of the state (and of those entities to which the
power has been lawfully delegated) to condemn private
property to public use upon payment of just compensation.
In the exercise of police power, property rights of private
individuals are subjected to restraints and burdens in order
to secure the general comfort, health, and prosperity of the
state. A legislative act based on the police power requires the
concurrence of a lawful subject and a lawful method. In more
familiar words, (a) the interests of the public generally, as
distinguished from those of a particular class, should justify
the interference of the state; and (b) that means employed
are reasonably necessary for the accomplishment of the
purpose and not unduly oppressive upon individuals.
Persons with Disability; Magna Carta for Disabled
Persons; Republic Act (RA) No. 9442 which amended RA No.
7277 grants incentives and benefits including a twenty
percent (20%) discount to Persons with Disabilities (PWDs) in
the purchase of medicines; fares for domestic air, sea and
land travels including public railways and skyways;
recreation and amusement centers including theaters, food
chains and restaurants.—R.A. No. 9442 which amended R.A.
No. 7277
_______________
* THIRD DIVISION.
26
26 SUPREME COURT REPORTS ANNOTATED
Drugstores Association of the Philippines, Inc. vs. National
Council on Disability Affairs
grants incentives and benefits including a twenty
percent (20%) discount to PWDs in the purchase of
medicines; fares for domestic air, sea and land travels
including public railways and skyways; recreation and
amusement centers including theaters, food chains and
restaurants. This is specifically stated in Section 4 of the IRR
of R.A. No. 9442: Section 4. Policies and Objectives.—It is the
objective of Republic Act No. 9442 to provide persons with
disability, the opportunity to participate fully into the
mainstream of society by granting them at least
twenty percent (20%) discount in all basic services. It
is a declared policy of R.A. 7277 that persons with disability
are part of Philippine society, and thus the State shall give
full support to the improvement of their total well-
being and their integration into the mainstream of
society. They have the same rights as other people to take
their proper place in society. They should be able to live
freely and as independently as possible. This must be the
concern of everyone the family, community and all
government and nongovernment organizations. Rights of
persons with disability must never be perceived as welfare
services. Prohibitions on verbal, nonverbal ridicule and
vilification against persons with disability shall always be
observed at all times.
Public Use; The concept of public use is no longer
confined to the traditional notion of use by the public, but held
synonymous with public interest, public benefit, public
welfare, and public convenience.—The PWD mandatory
discount on the purchase of medicine is supported by a valid
objective or purpose as aforementioned. It has a valid subject
considering that the concept of public use is no longer
confined to the traditional notion of use by the public, but
held synonymous with public interest, public benefit, public
welfare, and public convenience. As in the case of senior
citizens, the discount privilege to which the PWDs are
entitled is actually a benefit enjoyed by the general public to
which these citizens belong. The means employed in invoking
the active participation of the private sector, in order to
achieve the purpose or objective of the law, is reasonably and
directly related. Also, the means employed to provide a fair,
just and quality health care to PWDs are reasonably related
to its accomplishment, and are not oppressive, considering
that as a form of reimbursement, the discount extended to
PWDs in the purchase of medicine can be claimed by the
establishments as allowable tax deductions pursuant to
Section 32 of R.A. No. 9442 as implemented in Section 4 of
DOF Revenue Regulations No.1-2009. Other-
27
VOL. 803, SEPTEMBER 14, 2016
Drugstores Association of the Philippines, Inc. vs. National
Council on Disability Affairs
wise stated, the discount reduces taxable income upon
which the tax liability of the establishments is computed.
Persons with Disability; Before an Identification Card
(IDC) is issued by the city or municipal mayor or the
barangay captain, or the Chairman of the National Council
on Disability Affairs (NCDA), the applicant must first secure
a medical certificate issued by a licensed private or
government physician that will confirm his medical or
disability condition.—As stated in NCDA A.O. No. 1, before
an IDC is issued by the city or municipal mayor or
the barangay captain, or the Chairman of the NCDA, the
applicant must first secure a medical certificate issued by a
licensed private or government physician that will confirm
his medical or disability condition. If an applicant is an
employee with apparent disability, a “certificate of disability”
issued by the head of the business establishment or the head
of the nongovernmental organization is needed for him to be
issued a PWD-IDC. For a student with apparent disability,
the “school assessment” issued by the teacher and signed by
the school principal should be presented to avail of a PWD-
ID.
Statutory Construction; Elementary is the rule that
when laws or rules are clear, when the law is unambiguous
and unequivocal, application not interpretation thereof is
imperative.—Elementary is the rule that when laws or rules
are clear, when the law is unambiguous and unequivocal,
application not interpretation thereof is imperative.
However, where the language of a statute is vague and
ambiguous, an interpretation thereof is resorted to. A law is
deemed ambiguous when it is capable of being understood by
reasonably wellinformed persons in either of two or more
27 senses. The fact that a law admits of different interpretations
is the best evidence that it is vague and ambiguous.
 Constitutional Law; Equal Protection of the Laws;
Under the equal protection clause, all persons or things
similarly situated must be treated alike, both in the privileges
conferred and the obligations imposed. Conversely, all
persons or things differently situated should be treated
differently.—Under the equal protection clause, all persons
or things similarly situated must be treated alike, both in the
privileges conferred and the obligations imposed.
Conversely, all persons or things differently situated should
be treated differently.
28
28 SUPREME COURT REPORTS ANNOTATED
Drugstores Association of the Philippines, Inc. vs. National
Council on Disability Affairs
Same; Same; Persons with Disability; Persons with
disability (PWD) form a class separate and distinct from the
other citizens of the country.—The equal protection clause
recognizes a valid classification, that is, a classification that
has a reasonable foundation or rational basis and not
arbitrary. With respect to R.A. No. 9442, its expressed public
policy is the rehabilitation, self-development and self-
reliance of PWDs. Persons with disability form a class
separate and distinct from the other citizens of the country.
Indubitably, such substantial distinction is germane and
intimately related to the purpose of the law. Hence, the
classification and treatment accorded to the PWDs fully
satisfy the demands of equal protection. Thus, Congress may
pass a law providing for a different treatment to persons with
disability apart from the other citizens of the country.
PETITION for review on certiorari of the decision and
resolution of the Court of Appeals.
The facts are stated in the opinion of the Court.
Romulo, Mabanta, Buenaventura, Sayoc & Delos
Angeles for petitioners.
Office of the Solicitor General for respondents.
PERALTA, J.:
Before us is a Petition for Review on Certiorari1 with
a Prayer for a Temporary Restraining Order and/or
Writ of Preliminary Injunction which seeks to annul
and set aside the Decision2 dated July 26, 2010, and the
Resolution3 dated November 19, 2010 of the Court of
Appeals (CA) in C.A.G.R. S.P. No. 109903. The CA
dismissed petitioners’ Petition for Prohibition4 and
upheld the constitutionality of the manda-
_______________
1 Rollo, pp. 11-86.
2 Penned by Associate Justice Noel G. Tijam, with Associate
Justices Marlene Gonzales-Sison and Danton Q. Bueser,
concurring; id., at pp. 88-107.
3 Id., at pp. 109-112.
4 Id., at pp. 144-204.
29
VOL. 803, SEPTEMBER 14, 2016 29
Drugstores Association of the Philippines, Inc. vs. National
Council on Disability Affairs
tory twenty percent (20%) discount on the purchase of
medicine by persons with disability (PWD).
The antecedents are as follows:
On March 24, 1992, Republic Act (R.A.) No. 7277,
entitled “An Act Providing for the Rehabilitation, Self-
Development and Self-Reliance of Disabled Persons and
their Integration into the Mainstream of Society and for
Other Purposes,” otherwise known as the “Magna Carta
for Disabled Persons,” was passed into law.5 The law
defines “disabled persons,” “impairment” and
“disability” as follows:
SECTION 4. Definition of Terms.—For purposes of this
Act, these terms are defined as follows:
(a) Disabled Persons are those suffering from
restrictions of different abilities, as a result of a mental,
physical or sensory impairment, to perform an activity in the
manner or within the range considered normal for a human
being;
(b) Impairment is any loss, diminution or aberration of
psychological, physiological, or anatomical structure of
function;
(c) Disability shall mean (1) a physical or mental
impairment that substantially limits one or more
psychological, physiological or anatomical function of an
individual or activities of such individual; (2) a record of such
an impairment; or (3) being regarded as having such an
impairment.6
On April 30, 2007, Republic Act No. 94427 was
enacted amending R.A. No. 7277. The Title of R.A. No.
7277 was amended to read as “Magna Carta for Persons
with Disabil-
_______________
5 Id., at p. 90.
6 Id., at pp. 17 and 979.
7 AN ACT AMENDING REPUBLIC ACT NO. 7277, OTHERWISE KNOWN
AS THE MAGNA CARTA FOR PERSONS WITH DISABILITY AS AMENDED, AND
FOR OTHER PURPOSES; id., at p. 90.
30
30 SUPREME COURT REPORTS ANNOTATED
Drugstores Association of the Philippines, Inc. vs. National
Council on Disability Affairs
ity” and all references on the law to “disabled persons”
were amended to read as “persons with disability”
(PWD).8 Specifically, R.A. No. 9442 granted the PWDs a
twenty (20) percent discount on the purchase of
medicine, and a tax deduction scheme was adopted
wherein covered establishments may deduct the
discount granted from gross income based on the net
cost of goods sold or services rendered:
CHAPTER 8. Other Privileges and Incentives.—
SEC. 32. Persons with disability shall be entitled to the
following:
xxxx
(d) At least twenty percent (20%) discount for the
purchase of medicines in all drugstores for the
exclusive use or enjoyment of persons with disability.
xxxx
The above mentioned privileges are available only to
persons with disability who are Filipino citizens upon
submission of any of the following as proof of his/her
entitlement thereto:
(i) An identification card issued by the city or municipal
mayor or the barangay captain of the place where the person
with disability resides;
(ii) The passport of the person with disability concerned; or

(iii) Transportation discount fare Identification Card (ID)
issued by the National Council for the Welfare of Disabled
Persons (NCWDP).
xxxx
The establishments may claim the discounts granted in
subsections (a), (b), (c), (f) and (g) as tax deductions based on
the net cost of the goods sold or services
rendered: Provided, however, That the cost of the
_______________
8 Section 4 of R.A. No. 9442.
31
VOL. 803, SEPTEMBER 14, 2016 31 range considered normal for human being. Disability shall
Drugstores Association of the Philippines, Inc. vs. National
Council on Disability Affairs
discount shall be allowed as deduction from gross income for
the same taxable year that the discount is
granted: Provided, further, That the total amount of the
claimed tax deduction net of value-added tax if applicable,
shall be included in their gross sales receipts for tax purposes
and shall be subject to proper documentation and to the
provisions of the National Internal Revenue Code (NIRC), as
amended.9
The Implementing Rules and Regulations (IRR) of
R.A. No. 944210 was jointly promulgated by the
Department of Social Welfare and Development
(DSWD), Department of Education, Department of
Finance (DOF), Department of Tourism, Department of
Transportation and Communication, Department of the
Interior and Local Government (DILG) and Department
of Agriculture. Insofar as pertinent to this petition, the
salient portions of the IRR are hereunder quoted:11
RULE III. DEFINITION OF TERMS
Section 5. Definition of Terms.—For purposes of these
Rules and Regulations, these terms are defined as follows:
5.1. Persons with Disability — are those individuals
defined under Section 4 of RA 7277 “An Act Providing for the
Rehabilitation, SelfDevelopment and Self-Reliance of
Persons with Disability as amended and their integration
into the Mainstream of Society and for Other Purposes.” This
is defined as a person suffering from restriction or different
abilities, as a result of a mental, physical or sensory
impairment, to perform an activity in a manner or within the
mean (1) a physical or mental impairment that substantially
limits one or more psycho-
_______________
9 Rollo, pp. 20 and 980.
10 Published on January 21, 2009 in the Manila Standard Today,
and filed with the Office of the National Administration Register, U.P.
Law Center on January 31, 2008; id., at pp. 90 and 982.
11 Id., at p. 981.
32
32 SUPREME COURT REPORTS ANNOTATED
Drugstores Association of the Philippines, Inc. vs. National
Council on Disability Affairs
logical, physiological or anatomical function of an individual
or activities of such individual; (2) a record of such an
impairment; or (3) being regarded as having such an
impairment.
xxxx
RULE IV. PRIVILEGES AND INCENTIVES FOR
THE PERSONS WITH DISABILITY
Section 6. Other Privileges and incentives.—Persons
with disability shall be entitled to the following:
xxxx
6.1.d. Purchase of Medicine — at least twenty percent
(20%) discount on the purchase of medicine for the exclusive
use and enjoyment of persons with disability. All drugstores,
hospital, pharmacies, clinics and other similar
establishments selling medicines are required to provide at
least twenty percent (20%) discount subject to the guidelines
issued by DOH and PHILHEALTH.12
xxxx
6.11 The above mentioned privileges are available only
to persons with disability who are Filipino citizens upon
submission of any of the following as proof of his/her
entitlement thereto subject to the guidelines issued by the
NCWDP in coordination with DSWD, DOH and DILG.
6.11.1 An identification card issued by the city or
municipal mayor or the barangay captain of the place
where the person with disability resides;
6.11.2 The passport of the persons with disability
concerned; or
6.11.3 Transportation discount fare Identification
Card (IDC) issued by the National Council for the
Welfare of Disabled Persons (NCWDP). However, upon
effectivity of this Implementing Rules and
Regulations,
_______________
12 Underscoring supplied.
33
VOL. 803, SEPTEMBER 14, 2016 33
Drugstores Association of the Philippines, Inc. vs. National
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NCWDP will already adopt the Identification Card
issued by the Local Government Unit for purposes of
uniformity in the implementation. NCWDP will
provide the design and specification of the
identification card that will be issued by the Local
Government Units.13
6.14. Availment of Tax Deductions by Establishment
Granting Twenty Percent 20% Discount — The
establishments may claim the discounts granted in sub-
sections (6.1), (6.2), (6.4), (6.5) and (6.6) as tax deductions
based on the net cost of the goods sold or services
rendered: Provided, however, that the cost of the discount
shall be allowed as deduction from gross income for the same
taxable year that the discount is granted: Provided, further,
that the total amount of the claimed tax deduction net of
value-added tax if applicable, shall be included in their gross
sales receipts for tax purposes and shall be subject to proper
documentation and to the provisions of the National Internal
Revenue Code, as amended.
On April 23, 2008, the National Council on Disability
Affairs (NCDA)14 issued Administrative Order (A.O.)
No. 1, Series of 2008,15 prescribing guidelines which
should serve as a mechanism for the issuance of a PWD
Identification Card (IDC) which shall be the basis for
providing privileges and discounts to bona fide PWDs in
accordance with R.A. 9442:
IV. INSTITUTIONAL ARRANGEMENTS
A. The Local Government Unit of the City or Municipal
Office shall implement these guidelines in the issuance of the
PWD-IDC.
_______________
Any bona fide person with permanent disability can apply
for the issuance of the PWD-IDC. His/her caregiver can
assist in the application process. Procedures for the issuance
of the ID Cards are as follows:
A. Completion of the Requirements.—Complete and/or
make available the following requirements:
1. Two “1 x 1” recent ID pictures with the names,
and signatures or thumbmarks at the back of the
picture,

13 Underscoring supplied.
14 Formerly National Council for the Welfare of Disabled 35
Persons (NCWDP).
VOL. 803, SEPTEMBER 14, 2016 35
15 GUIDELINES ON THE ISSUANCE OF IDENTIFICATION CARD
RELATIVE TO REPUBLIC ACT 9442; Rollo, pp. 117-119. Drugstores Association of the Philippines, Inc. vs. National
Council on Disability Affairs
2. One (1) Valid ID,
34
34 SUPREME COURT REPORTS ANNOTATED 3. Document to confirm the medical or disability
Drugstores Association of the Philippines, Inc. vs. National condition (see Section IV, D for the required
Council on Disability Affairs document).
On December 9, 2008, the DOF issued Revenue
xxxx
Regulations No. 1-200916 prescribing rules and regulations to
implement R.A. 9442 relative to the tax privileges of PWDs
D. Issuance of the appropriate document to confirm the
and tax incentives for establishments granting the discount.
medical condition of the applicant is as follows:
Section 4 of Revenue Regulations No. 001-09 states that
E. PWD Registration Forms and ID Cards shall be issued
drugstores can only deduct the 20% discount from their gross
and signed by the City or Municipal Mayor,
income subject to some conditions.17
or Barangay Captain.
_______________

xxxx 16 Rules and Regulations Implementing Republic Act No. 9442,

entitled “AN ACT AMENDING REPUBLIC ACT 7227, OTHERWISE KNOWN AS
V. IMPLEMENTING GUIDELINES AND PROCEDURES THE MAGNA CARTA FOR PERSONS WITH DISABILITY” Relative to the Tax
Privileges of Persons with Disability and Tax Incentives for
Establishments Granting Sales Discounts; Id., at pp. 120-126.
 17 Section 4. Availment by Establishments of Sales Discounts as
Deduction from Gross Income.—Establishments granting sales
discounts to persons with disability on their sale of goods and/or
services specified under Section 3 above shall be entitled to deduct the
said sales discount from their gross income subject to the following
conditions:
1. The sales discounts shall be deducted from gross income after
deducting the cost of goods sold or the cost of service;
2. The cost of the sales discount shall be allowed as deduction
from gross income for the same taxable year that the discount
is granted;
3. Only that portion of the gross sales exclusively used,
consumed or enjoyed by the person with disability shall be
eligible for the deductible sales discount;
4. The gross selling price and the sales discount must be
separately indicated in the sales invoice or official receipt issued
by the establishment for the sale of goods or services to the
person with disability;
36
36 SUPREME COURT REPORTS ANNOTATED
Drugstores Association of the Philippines, Inc. vs. National
Council on Disability Affairs
On May 20, 2009, the DOH issued A.O. No. 2009-
001118specifically stating that the grant of 20% discount
shall be provided in the purchase of branded medicines
and unbranded generic medicines from all
establishments dispensing medicines for the exclusive
use of the PWDs.19 It also detailed
_______________
5. Only the actual amount of the sales discount granted or a
sales discount not exceeding 20% of the gross selling price or
gross receipt can be deducted from the gross income, net of
value-added tax, if applicable, for income tax purposes, and
from gross sales or gross receipts of the business enterprise
concerned, for VAT or other percentage tax purposes; and shall
be subject to proper documentation under pertinent provisions
of the Tax Code of 1997, as amended;
6. The business establishment giving sales discount to qualified
person with disability is required to keep separate and accurate
record of sales, which shall include the name of the person with
disability, ID Number, gross sales/receipts, sales discount
granted, date of transactions and invoice number for every sale
transaction to person with disability; and
7. All establishments mentioned in Section 3 above which
granted sales discount to persons with disability on their sale
of goods and/or services may claim the said discount as
deduction from gross income.
18 GUIDELINES TO IMPLEMENT THE PROVISIONS OF REPUBLIC ACT
9442, OTHERWISE KNOWN AS “AN ACT AMENDING REPUBLIC ACT NO.
7227, OTHERWISE KNOWN AS THE “MAGNA CARTA FOR DISABLED
PERSONS, AND FOR OTHER PURPOSES” FOR THE PROVISION OF MEDICAL
AND RELATED DISCOUNTS AND SPECIAL PRIVILEGES; published in the
Philippine Daily Inquirer on May 13, 2009, and filed in the Office of
the National Administrative Register, U.P. Law Center on July 9,
2009; Rollo, pp. 127-142.
19 Title V, No. 3, DOH A.O. No. 2009-0011.
37
VOL. 803, SEPTEMBER 14, 2016 37
Drugstores Association of the Philippines, Inc. vs. National
Council on Disability Affairs
the guidelines for the provision of medical and related
discounts and special privileges to PWDs pursuant to
R.A. 9442.20
On July 28, 2009, petitioners filed a Petition for
Prohibition with application for a Temporary
Restraining Order and/or a Writ of Preliminary
Injunction21 before the Court of Appeals to annul and
enjoin the implementation of the following laws:
 1) Section 32 of R.A. No. 7277 as amended by R.A.
No. 9442;
2) Section 6, Rule IV of the Implementing Rules and
Regulations of R.A. No. 9442;
3) NCDA A.O. No. 1;
4) DOF Revenue Regulation No 1-2009;
5) DOH A.O. No. 2009-0011.
On July 26, 2010, the CA rendered a Decision
upholding the constitutionality of R.A. 7277 as
amended, as well as the assailed administrative
issuances. However, the CA suspended the effectivity of
NCDA A.O. No. 1 pending proof of respondent NCDA’s
compliance with filing of said administrative order with
the Office of the National Administrative Register
(ONAR) and its publication in a newspaper of general
circulation. The dispositive portion of the Decision
states:
WHEREFORE, the petition is PARTLY GRANTED. The
effectivity of NCDA Administrative Order No. 1 is hereby
SUSPENDED pending. Respondent’s compliance with the
proof of filing of NCDA Administrative Order No. 1 with the
Office of the National Administrative Register and its
publication in a newspaper of general circulation.
_______________
20 Number 4 of DOH issued Administrative Order No. 2009-0011.
21 Rollo, pp. 144-204.
38
38 SUPREME COURT REPORTS ANNOTATED
Drugstores Association of the Philippines, Inc. vs. National
Council on Disability Affairs
Respondent NCDA filed a motion for reconsideration
before the CA to lift the suspension of the
implementation of NCDA A.O. No. 1 attaching thereto
proof of its publication in the Philippine Star and Daily
Tribune on August 12, 2010, as well as a certification
from the ONAR showing that the same was filed with
the said office on October 22, 2009.22 Likewise,
petitioners filed a motion for reconsideration of the CA
Decision.
In a Resolution dated November 19, 2010, the CA
dismissed petitioners’ motion for reconsideration and
lifted the suspension of the effectivity of NCDA A.O. No.
1 considering the filing of the same with ONAR and its
publication in a newspaper of general circulation.
Hence, the instant petition raising the following
issues:
I. THE CA SERIOUSLY ERRED ON A QUESTION OF
SUBSTANCE WHEN IT RULED THAT THE MANDATED
PWD DISCOUNT IS A VALID EXERCISE OF POLICE
POWER. ON THE CONTRARY, IT IS AN INVALID
EXERCISE OF THE POWER OF EMINENT DOMAIN
BECAUSE IT FAILS TO PROVIDE JUST
COMPENSATION TO PETITIONERS AND OTHER
SIMILARLY SITUATED DRUGSTORES;
II. THE CA SERIOUSLY ERRED WHEN IT RULED
THAT SECTION 32 OF RA 7277 AS AMENDED BY RA
9442, NCDA AO 1 AND THE OTHER IMPLEMENTING
REGULATIONS DID NOT VIOLATE THE DUE PROCESS
CLAUSE;
III. THE CA SERIOUSLY ERRED WHEN IT RULED
THAT THE DEFINITIONS OF DISABILITIES UNDER
SECTION 4(A), SECTION 4(B) AND SECTION 4(C) OF RA
7277 AS AMENDED BY RA 9442, RULE 1 OF THE
IMPLEMENTING RULES AND REGULATIONS23 OF RA
7277, SECTION 5.1 OF THE IMPLEMENTING
_______________
22 Id., at pp. 110-111 and 988.
23 Rule I. Title, Purpose, and Construction.
39
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Drugstores Association of the Philippines, Inc. vs. National
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RULES AND REGULATIONS OF RA 9442, NCDA AO 1
AND DOH AO 2009-11 ARE NOT VAGUE, AMBIGUOUS
AND UNCONSTITUTIONAL;
IV. THE CA SERIOUSLY ERRED WHEN IT RULED
THAT THE MANDATED PWD DISCOUNT DOES NOT
VIOLATE THE EQUAL PROTECTION CLAUSE.
We deny the petition.
The CA is correct when it applied by analogy the case
of Carlos Superdrug Corporation, et al. v. DSWD, et
al.,24 wherein We pronounced that Section 4 of R.A. No.
9257 which grants 20% discount on the purchase of
medicine of senior citizens is a legitimate exercise of
police power:
The law is a legitimate exercise of police power which,
similar to the power of eminent domain, has general welfare
for its object. Police power is not capable of an exact
definition, but has been purposely veiled in general terms to
underscore its comprehensiveness to meet all exigencies and
provide enough room for an efficient and flexible response to
conditions and circumstances, thus assuring the greatest
benefits.25 Accordingly, it has been described as the most
essential, insistent and the least limitable of powers,
extending as it does to all the great public needs.26 It is [t]he
power vested in the legislature by the constitution to make,
ordain, and establish all manner of wholesome and
reasonable laws, statutes, and ordinances, either with
penalties or without, not repugnant to the constitution, as
they shall judge to be for
_______________
39
24 553 Phil. 120, 132-133; 526 SCRA 130, 143 (2007).
25 Sangalang v. Intermediate Appellate Court, 257 Phil. 930; 176
SCRA 719 (1989).
26 Ermita-Malate Hotel and Motel Operators Association, Inc. v.
City Mayor of Manila, L-24693, July 31, 1967, 20 SCRA 849,
citing Noble State Bank v. Haskell, 219 U.S. 412 (1911).
40
40 SUPREME COURT REPORTS ANNOTATED
Drugstores Association of the Philippines, Inc. vs. National
Council on Disability Affairs
the good and welfare of the commonwealth, and of the
subjects of the same.27
For this reason, when the conditions so demand as
determined by the legislature, property rights must bow to
the primacy of police power because property rights, though
sheltered by due process, must yield to general welfare.28
Police power as an attribute to promote the common good
would be diluted considerably if on the mere plea of
petitioners that they will suffer loss of earnings and capital,
the questioned provision is invalidated. Moreover, in the
absence of evidence demonstrating the alleged confiscatory
effect of the provision in question, there is no basis for its
nullification in view of the presumption of validity which
every law has in its favor.29
Police power is the power of the state to promote
public welfare by restraining and regulating the use of
liberty and property. On the other hand, the power of
eminent domain is the inherent right of the state (and
of those entities to which the power has been lawfully
delegated) to condemn private property to public use
upon payment of just compensation. In the exercise of
police power, property rights of private individuals are
subjected to restraints and burdens in order to secure
the general comfort, health, and prosperity of the
state.30 A legislative act based on the police power
requires the concurrence of a lawful subject and a lawful
method. In more familiar words, (a) the interests of the
public generally,
_______________
27 U.S. v. Toribio, 15 Phil. 85 (1910), citing Commonwealth
v. Alger, 7 Cush., 53 (Mass. 1851); U.S. v. Pompeya, 31 Phil. 245, 253-
254 (1915).
28 Alalayan v. National Power Corporation, No. L-24396, July 29,
1968, 24 SCRA 172.
29 Id.
30 Didipio Earth-Savers’ Multi-Purpose Association, Incorporated
(DESAMA) v. Gozun, 520 Phil. 457, 476; 485 SCRA 586, 604 (2006).
41
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Drugstores Association of the Philippines, Inc. vs. National
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as distinguished from those of a particular class, should
justify the interference of the state; and (b) that means
employed are reasonably necessary for the
accomplishment of the purpose and not unduly
oppressive upon individuals.31
R.A. No. 7277 was enacted primarily to provide full
support to the improvement of the total well-being of
PWDs and their integration into the mainstream of
society. The priority given to PWDs finds its basis in the
Constitution:
ARTICLE XII
NATIONAL ECONOMY AND PATRIMONY
xxxx
Section 6. The use of property bears a social function, and
all economic agents shall contribute to the common good.
Individuals and private groups, including corporations,
cooperatives, and similar collective organizations, shall have
the right to own, establish, and operate economic
enterprises, subject to the duty of the State to promote
distributive justice and to intervene when the common good
so demands.32
ARTICLE XIII
SOCIAL JUSTICE AND HUMAN RIGHTS
xxxx
Section 11. The State shall adopt an integrated and
comprehensive approach to health development which shall
endeavor to make essential goods, health and other social
services available to all the people at affordable cost. There
shall be priority for the needs of the underprivileged, sick,
elderly, disabled, women, and children.
_______________
31 National Development Company v. Philippine Veterans Bank,
270 Phil. 349, 356; 192 SCRA 257, 262 (1990); Association of Small
Landowners in the Philippines, Inc. v. Secretary of Agrarian Reform,
256 Phil. 777, 810; 175 SCRA 343, 375 (1989).
32 Underscoring supplied.
42
42 SUPREME COURT REPORTS ANNOTATED
Drugstores Association of the Philippines, Inc. vs. National
Council on Disability Affairs
The State shall endeavor to provide free medical care to
paupers.33
Thus, R.A. No. 7277 provides:
SECTION 2. Declaration of Policy.—The grant of the
rights and privileges for disabled persons shall be guided by
the following principles:
(a) Disabled persons are part of the Philippine society, thus
the Senate shall give full support to the improvement of the
total well-being of disabled persons and their integration into
the mainstream of society.
Toward this end, the State shall adopt policies ensuring the
rehabilitation, self-development and self-reliance of disabled
persons.
It shall develop their skills and potentials to enable them to
compete favorably for available opportunities.
(b) Disabled persons have the same rights as other people
to take their proper place in society. They should be able to
live freely and as independently as possible. This must be the
concern of everyone — the family, community and all
government and nongovernment organizations. Disabled
person’s rights must never be perceived as welfare services
by the Government.
xxxx
(d) The State also recognizes the role of the private
sector in promoting the welfare of disabled persons and
shall encourage partnership in programs that address
their needs and concerns.34
To implement the above policies, R.A. No. 9442
which amended R.A. No. 7277 grants incentives and
benefits including a twenty percent (20%) discount to
PWDs in the purchase of medicines; fares for domestic
air, sea and land travels in-
_______________
33 Underscoring supplied.
34 Underscoring supplied.
43
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Drugstores Association of the Philippines, Inc. vs. National
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cluding public railways and skyways; recreation and
amusement centers including theaters, food chains and
restaurants.35 This is specifically stated in Section 4 of
the IRR of R.A. No. 9442:
_______________
35 SEC. 32. Persons with disability shall be entitled to the
following:
(a) At least twenty percent (20%) discount from all
establishments relative to the utilization of all services in hotels
and similar lodging establishments; restaurants and recreation
centers for the exclusive use or enjoyment of persons with
disability;
(b) A minimum of twenty percent (20%) discount on admission
fees charged by theaters, cinema houses, concert halls, circuses,
carnivals and other similar places of culture, leisure and
amusement for the exclusive use of enjoyment of persons with
disability;
(c) At least twenty percent (20%) discount for the purchase of
medicines in all drugstores for the exclusive use or enjoyment
of persons with disability;
(d) At least twenty percent (20%) discount on medical and
dental services including diagnostic and laboratory fees such as,
but not limited to, x-rays, computerized tomography scans and
blood tests, in all government facilities, subject to guidelines to
be issued by the Department of Health (DOH), in coordination
with the Philippine Health Insurance Corporation
(PHILHEALTH);
(e) At least twenty percent (20%) discount on medical and
dental services including diagnostic and laboratory fees, and
professional fees of attending doctors in all private hospitals
and medical facilities, in accordance with the rules and
regulations to be issued by the DOH, in coordination with the
PHILHEALTH;
(f) At least twenty percent (20%) discount on fare for domestic
air and sea travel for the exclusive use or enjoyment of persons
with disability;
(g) At least twenty percent (20%) discount in public railways,
skyways and bus fare for the exclusive use and enjoyment of
person with disability;
44
44 SUPREME COURT REPORTS ANNOTATED
Drugstores Association of the Philippines, Inc. vs. National
Council on Disability Affairs
Section 4. Policies and Objectives.—It is the objective of
Republic Act No. 9442 to provide persons with
disability, the opportunity to participate fully into the
mainstream of society by granting them at least
twenty percent (20%) discount in all basic services. It
is a declared policy of RA 7277 that persons with disability
are part of Philippine society, and thus the State shall give
full support to the improvement of their total well-
being and their integration into the mainstream of
society. They have the same rights as other people to take
their proper place in society. They should be able to live
freely and as independently as possible. This must be the
concern of everyone the family, community and all
government and nongovernment organizations. Rights of
persons with disability must never be perceived as welfare
services. Prohibitions on verbal,
_______________
(h) Educational assistance to persons with disability, for them
to pursue primary, secondary, tertiary, post-tertiary, as well as
vocational or technical education, in both public and private
schools, through the provision of scholarships, grants, financial
aids, subsidies and other incentives to qualified persons with
disability, including support for books, learning material, and
uniform allowance to the extent feasible: Provided, That
persons with disability shall meet minimum admission
requirements;
(i) To the extent practicable and feasible, the continuance of
the same benefits and privileges given by the Government
Service Insurance System (GSIS), Social Security System
(SSS), and PAGIBIG, as the case may be, as are enjoyed by
those in actual service;
(j) To the extent possible, the government may grant special
discounts in special programs for persons with disability on
purchase of basic commodities, subject to guidelines to be issued
 for the purpose by the Department of Trade and Industry (DTI)deductions pursuant to Section 32 of R.A. No. 9442 as
and the Department of Agriculture (DA); and
(k) Provision of express lanes for persons with disability in all
commercial and government establishments; in the absence
thereof, priority shall be given to them.
45
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Drugstores Association of the Philippines, Inc. vs. National
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nonverbal ridicule and vilification against persons with
disability shall always be observed at all times.36
Hence, the PWD mandatory discount on the
purchase of medicine is supported by a valid objective
or purpose as aforementioned. It has a valid subject
considering that the concept of public use is no longer
confined to the traditional notion of use by the public,
but held synonymous with public interest, public
benefit, public welfare, and public convenience. As in the
case of senior citizens,37 the discount privilege to which
the PWDs are entitled is actually a benefit enjoyed by
the general public to which these citizens belong. The
means employed in invoking the active participation of
the private sector, in order to achieve the purpose or
objective of the law, is reasonably and directly
related.38 Also, the means employed to provide a fair,
just and quality health care to PWDs are reasonably
related to its accomplishment, and are not oppressive,
considering that as a form of reimbursement, the
discount extended to PWDs in the purchase of medicine
can be claimed by the establishments as allowable tax
implemented in Section 4 of DOF Revenue Regulations
No. 1-2009. Otherwise stated, the discount reduces
taxable income upon which the tax liability of the
establishments is computed.
Further, petitioners aver that Section 32 of R.A. No.
7277 as amended by R.A. No. 9442 is unconstitutional
45 and void for violating the due process clause of the
Constitution since entitlement to the 20% discount is
allegedly merely based on any of the three documents
mentioned in the provision, namely: (i) an identification
card issued by the city or municipal mayor or
the barangay captain of the place where the
_______________
36 Emphasis supplied.
37 Commissioner of Internal Revenue v. Central Luzon Drug
Corporation, 496 Phil. 307, 335; 456 SCRA 414, 444 (2005).
38 Carlos Superdrug Corp. v. Department of Social Welfare and
Development (DSWD), supra note 24 at p. 135; p. 147.
46
46 SUPREME COURT REPORTS ANNOTATED
Drugstores Association of the Philippines, Inc. vs. National
Council on Disability Affairs
PWD resides; (ii) the passport of the PWD; or (iii)
transportation discount fare identification card issued
by NCDA. Petitioners, thus, maintain that none of the
said documents has any relation to a medical
finding of disability, and the grant of the discount is
allegedly without any process for the determination of a
PWD in accordance with law.
 Section 32 of R.A. No. 7277, as amended by R.A. No.
9442, must be read with its IRR which stated that upon
its effectivity, NCWDP (which is the government
agency tasked to ensure the implementation of RA
7277), would adopt the IDC issued by the local
government units for purposes of uniformity in the
implementation.39 Thus, NCDA A.O. No. 1 provides the
reasonable guidelines in the issuance of IDCs to PWDs
as proof of their entitlement to the privileges and
incentives under the law40 and fills the details in the
implementation of the law.
As stated in NCDA A.O. No. 1, before an IDC is
issued by the city or municipal mayor or
the barangay captain,41 or the Chairman of the
NCDA,42 the applicant must first secure a medical
certificate issued by a licensed private or
government physician that will confirm his medical
or disability condition. If an applicant is an employee
with apparent disability, a “certificate of disability”
issued by the head of the business establishment or the
head of the nongovernmental organization is needed for
him to be issued a PWD-IDC. For a student with
apparent disability, the “school assessment” issued by
the teacher and signed by the school principal should be
presented to avail of a PWD-ID.
_______________
39 Section 6.11.3 of IRR of R.A. No. 9442.
40 Part I, Nos. 4 and 5, NCDA Administrative Order No. 1; Rollo,
p. 111.
41 Only for the first three (3) years as provided in DOH
Administrative Order No. 2009-001; id., at p. 131.
42 After three (3) years, the signatory to the IDC shall be the
Chairperson of the NCDA as provided in DOH Administrative Order
No. 2009-001; id.
47
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Drugstores Association of the Philippines, Inc. vs. National
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Petitioners’ insistence that Part IV(D) of NCDA
Administrative Order No. 1 is void because it allows
allegedly non-competent persons like teachers, head of
establishments and heads of Non-Governmental
Organizations (NGOs) to confirm the medical condition
of the applicant is misplaced. It must be stressed that
only for apparent disabilities can the teacher or
head of a business establishment validly issue the
mentioned required document because, obviously,
the disability is easily seen or clearly visible. It is,
therefore, not an unqualified grant of authority for the
said nonmedical persons as it is simply limited to
apparent disabilities. For a nonapparent disability or a
disability condition that is not easily seen or clearly
visible, the disability can only be validated by a licensed
private or government physician, and a medical
certificate has to be presented in the procurement of an
IDC. Relative to this issue, the CA validly ruled, thus:
We agree with the Office of the Solicitor General’s (OSG)
ratiocination that teachers, heads of business
establishments and heads of NGOs can validly confirm the
medical condition of their students/employees with apparent
disability for obvious reasons as compared to non-apparent
disability which can only be determined by licensed
physicians. Under the Labor Code, disabled persons are
eligible as apprentices or learnersprovided that their
handicap are not as much as to effectively impede the
performance of their job. We find that heads of business
establishments can validly issue certificates of disability of
their employees because aside from the fact that they can
obviously validate the disability, they also have medical
records of the employees as a prerequisite in the
hiring of employees. Hence, Part IV(D) of NCDA AO No. 1
is logical and valid.43
Furthermore, DOH A.O. No. 2009-11 prescribes
additional guidelines for the 20% discount in the
purchase of all medi-
_______________
43 Emphasis supplied.
48
48 SUPREME COURT REPORTS ANNOTATED
Drugstores Association of the Philippines, Inc. vs. National
Council on Disability Affairs
cines for the exclusive use of PWD.44 To avail of the
discount,
_______________
44 Guidelines for the twenty percent (20%) discount in the
purchase of all medicines for the exclusive use of PWD:
a) All establishments through their registered pharmacist must have
full disclosure and responsibility in dispensing all medicines for
exclusive use of PWD.
b) Discounts shall be granted to PWDs on all the purchase of all
medicines provided that it is supported by the following:
i. PWD Identification Card as stated in the Definition of Terms;
ii. Doctor’s prescription stating the name of the PWD, age,
sex, address, date, generic name of the medicine, dosage form,
dosage strength, quantity, signature over printed name of
physician, physician’s address, contact number of physician or
dentist, professional license number, professional tax receipt
number and narcotic license number, if applicable. To
safeguard the health of PWDs and to prevent abuse of RA 9257,
a doctor’s prescription is required in the purchase of over-the-
counter medicines. Only prescriptions that contain the above
information shall be honored.
iii. Purchase booklet issued by the local social/health office to
PWDs for free containing the following basic information:
a) PWD ID Number
b) Booklet control number
c) Name of PWD
d) Sex
e) Address
f) Date of Birth
g) Picture
h) Signature of PWD
i) Information of medicine purchased:
i.1 Name of medicine
i.2 Quantity
i.3 Attending Physician
49
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Drugstores Association of the Philippines, Inc. vs. National
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the PWD must not only present his I.D. but also the
doctor’s prescription stating, among others, the generic
name of the medicine, the physician’s address, contact
number and professional license number, professional
tax receipt number and narcotic license number, if
applicable. A purchase booklet issued by the local
social/health office is also required in the purchase of
over-the-counter medicines. Likewise, any single
dispensing of medicine must be in accordance with the
pre-
_______________
i.4 License Number
i.5 Servicing drug store name
i.6 Name of dispensing pharmacist
j) Authorization letter of the PWD who is residing in the
Philippines at the time of purchase, currently dated and the
identification card of the authorized person or representative,
in case the medicine is bought by the representative or
caregiver of the PWD. (Emphasis supplied)
c) As a general rule, any single dispensing of medicine must be in
accordance with the prescription issued by a physician and should not
exceed a one (1) month supply.
Drug stores are required to maintain a special record book for PWD
subject to inspection by the BFAD and BIR.
d) For partial filling, the establishment’s pharmacists will indicate the
quantity partially filled in the special record book and the unfilled
balance on the prescription. The PWD shall retain the partially filled
prescription and present the same later to complete the prescribed
quantity.
e) Drugstores offering special discounted prices less than 20% of the
regular retail price can deduct the percentage discount on their
promotional campaign from the total of 20% discount as required by
RA 9442. Thus, a total discount of 20% for PWD will still be observed.
These discount privileges shall be nontransferable and exclusive for
the benefits of the PWD.
All establishments as defined above are enjoined to comply with above
cited guidelines.
xxxx
50
50 SUPREME COURT REPORTS ANNOTATED
Drugstores Association of the Philippines, Inc. vs. National
Council on Disability Affairs
scription issued by the physician and should not exceed
a one (1) month supply. Therefore, as correctly argued
by the respondents, Section 32 of R.A. No. 7277 as
amended by R.A. No. 9442 complies with the standards
of substantive due process.
We are likewise not persuaded by the argument of
petitioners that the definition of “disabilities” under the
subject laws is vague and ambiguous because it is
allegedly so general and broad that the person tasked
with implementing the law will undoubtedly arrive at
different interpretations and applications of the law.
Aside from the definitions of a “person with disability”
or “disabled persons” under Section 4 of R.A. No. 7277
as amended by R.A. No. 9442 and in the IRR of RA 9442,
NCDA A.O. No. 1 also provides:
4. Identification Cards shall be issued to any bona fide PWD
with permanent disabilities due to any one or more of the
following conditions: psychosocial, chronic illness, learning,
mental, visual, orthopedic, speech and hearing conditions.
This includes persons suffering from disabling diseases
resulting to the person’s limitations to do day to day
activities as normally as possible such as but not limited to
those undergoing dialysis, heart disorders, severe cancer
cases and such other similar cases resulting to temporary or
permanent disability.45
Similarly, DOH A.O. No. 2009-0011 defines the
different categories of disability as follows:
Rule IV, Section 4, Paragraph B of the Implementing
Rules and Regulations (IRR) of this Act required the
Department of Health to address the health concerns of
seven (7) different categories of disability, which include the
following: (1) Psychological and behavioral disabili-
_______________
45 No. 3, Part I of NCDA AO 1.
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Drugstores Association of the Philippines, Inc. vs. National
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ties, (2) Chronic illness with disabilities, (3) Learning
(cognitive or intellectual) disabilities, (4) Mental disabilities,
(5) Visual/seeing disabilities, (6) Orthopedic/moving, and (7)
communication deficits.46
_______________
46 Rollo, pp. 102-103.
Disability Types – the 7 types of disabilities mentioned in RA
No. 7277 are psychosocial disability, disability due to chronic
illness, learning disability, mental disability, visual disability,
orthopaedic disability, and communication disability.
Communication Disability – an impairment in the process
of speech, language or hearing: a) hearing impairment is a total
or partial loss of hearing function which impede the
communication process essential to language, educational,
social and/or cultural interaction; Speech and Language
Impairment means one or more speech/language disorders of
voice, articulation, rhythm and/or the receptive or and
expressive processes of language.
Learning Disability – any disorder in one or more of the basic
psychological processes (perception, comprehension,
thinking, etc.) involved in understanding or in using spoken or
written language.
Mental Disability – disability resulting from organic brain
syndrome (i.e., Mental retardation, acquired lesions of the
central nervous system, or dementia) and/or mental illness
(psychotic or non-psychotic disorder)
Orthopedic Disability – disability in the normal functioning
of the joints, muscles or limbs.
Psychosocial Disability – any acquired behavioural,
cognitive, emotional, social impairment that limits one or more
activities necessary for effective interpersonal transactions and
other civilizing process or activities for daily living such as but
not limited to deviancy or anti-social behaviour.
Visual Disability – a person with visual disability
(impairment) is one who has impairment of visual functioning
even after treatment and/or standard refractive correction, and
has visual acuity in the better eye of less than (6/18 for low
vision and 3/60 for blind, or a visual field of less than 10 degrees
from the point of fixation. A certain level of visual impairment
is de-
52
52 SUPREME COURT REPORTS ANNOTATED
Drugstores Association of the Philippines, Inc. vs. National
Council on Disability Affairs
Elementary is the rule that when laws or rules are
clear, when the law is unambiguous and unequivocal,
application not interpretation thereof is imperative.
However, where the language of a statute is vague and
ambiguous, an interpretation thereof is resorted to. A
law is deemed ambiguous when it is capable of being
understood by reasonably wellinformed persons in
either of two or more senses. The fact that a law admits
of different interpretations is the best evidence that it
is vague and ambiguous.47
In the instant case, We do not find the aforestated
definition of terms as vague and ambiguous. Settled is
the rule that courts will not interfere in matters which
are addressed to the sound discretion of the government
agency entrusted with the regulation of activities
coming under the special and technical training and
knowledge of such agency.48 As a matter of policy, We
accord great respect to the decisions and/or actions of
administrative authorities not only because of the
doctrine of separation of powers but also for their
presumed knowledge, ability, and expertise in the
enforcement of laws and regulations entrusted to their
jurisdiction. The rationale for this rule relates not only
to the emergence of the multifarious needs of a modern
or modernizing society and the establish-
_______________
fined as legal blindness. One is legally blind when your best
corrected central visual acuity in your better eye is 6/60 or
worse or your side vision is 20 degrees or less in the better eye.
Chronic Illness – words to describe a group of health
conditions that last a long time. It may get slowly worse over
time or may become permanent or it may lead to death. It may
cause permanent change to the body and it will certainly affect
the person’s quality of life.
47 Garcia v. Social Security Commission Legal and Collection, 565
Phil. 193, 208; 540 SCRA 456, 471 (2007).
48 Philippine Economic Zone Authority (PEZA) v. Pearl City
Manufacturing Corporation, 623 Phil. 191, 207; 608 SCRA 280, 295
(2009); Department of Agrarian Reform v. Samson, 577 Phil. 370, 381;
554 SCRA 500, 510-511 (2008).
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ment of diverse administrative agencies for addressing
and satisfying those needs; it also relates to the
accumulation of experience and growth of specialized
capabilities by the administrative agency charged with
implementing a particular statute.49
Lastly, petitioners contend that R.A. No. 7227, as
amended by R.A. No. 9442, violates the equal protection
clause of the Constitution because it fairly singles out
drugstores to bear the burden of the discount, and that
it can hardly be said to “rationally” meet a legitimate
government objective which is the purpose of the law.
The law allegedly targets only retailers such as
petitioners, and that the other enterprises in the drug
industry are not imposed with similar burden. This
same argument had been raised in the case of Carlos
Superdrug Corp., et al. v. DSWD, et al.,50 and We
reaffirm and apply the ruling therein in the case at bar:
The Court is not oblivious of the retail side of the
pharmaceutical industry and the competitive pricing
component of the business. While the Constitution protects
property rights, petitioners must accept the realities of
business and the State, in the exercise of police power, can
intervene in the operations of a business which may result in
an impairment of property rights in the process.
Moreover, the right to property has a social dimension.
While Article XIII of the Constitution provides the precept
for the protection of property, various laws and
jurisprudence, particularly on agrarian reform and the
regulation of contracts and public utilities, continuously
53 serve as a reminder that the right to property can be re-
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49 Public Schools District Supervisors Association (PSDSA) v. De
Jesus, 524 Phil. 366, 386-387; 491 SCRA 55, 71-72 (2006).
50 Carlos Superdrug Corp. v. Department of Social Welfare and
Development (DSWD), supra note 24 at pp. 146-147; pp. 146-147.

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linquished upon the command of the State for the promotion
of public good.51
Under the equal protection clause, all persons or
things similarly situated must be treated alike, both in
the privileges conferred and the obligations imposed.
Conversely, all persons or things differently situated
should be treated differently.52 In the case of ABAKADA
Guro Party List, et al. v. Hon. Purisima, et al.,53 We held:
Equality guaranteed under the equal protection clause is
equality under the same conditions and among persons
similarly situated; it is equality among equals, not similarity
of treatment of persons who are classified based on
substantial differences in relation to the object to be
accomplished. When things or persons are different in fact or
circumstance, they may be treated in law differently.
In Victoriano v. Elizalde Rope Workers’ Union, this Court
declared:
The guaranty of equal protection of the laws is not
a guaranty of equality in the application of the laws
upon all citizens of the State. It is not, therefore, a
requirement, in order to avoid the constitutional
prohibition against inequality, that every man, woman
and child should be affected alike by a stat-
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51 By the general police power of the State, persons and property
are subjected to all kinds of restraints and burdens, in order to secure
the general comfort, health, and prosperity of the State; of the perfect
right in the legislature to do which, no question ever was, or, upon
acknowledged and general principles, ever can be made, so far as
natural persons are concerned. (U.S. v. Toribio, supra note 27 at pp.
98-99, citing Thorpe v. Rutland & Burlington R.R. Co. [27 Vt., 140,
149]).
52 National Development Company v. Philippine Veterans
Bank, supra note 31 at p. 357; p. 263.
53 584 Phil. 246, 269-270; 562 SCRA 251, 273-275 (2008).
(Emphasis in the original)
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ute. Equality of operation of statutes does not mean
indiscriminate operation on persons merely as such,
but on persons according to the circumstances
surrounding them. It guarantees equality, not identity
of rights. The Constitution does not require that
things which are different in fact be treated in
law as though they were the same. The equal
protection clause does not forbid discrimination
as to things that are different. It does not
prohibit legislation which is limited either in
the object to which it is directed or by the territory
within which it is to operate.
The equal protection of the laws clause of the
Constitution allows classification. Classification in
law, as in the other departments of knowledge or
practice, is the grouping of things in speculation or
practice because they agree with one another in certain
particulars. A law is not invalid because of simple
inequality. The very idea of classification is that of
inequality, so that it goes without saying that the mere
fact of inequality in no manner determines the matter
 of constitutionality. All that is required of a valid
classification is that it be reasonable, which
means that the classification should be based on
substantial distinctions which make for real
differences, that it must be germane to the
purpose of the law; that it must not be limited to
existing conditions only; and that it must apply
equally to each member of the class. This Court
has held that the standard is satisfied if the
classification or distinction is based on a
reasonable foundation or rational basis and is
not palpably arbitrary.
56
56 SUPREME COURT REPORTS ANNOTATED
Drugstores Association of the Philippines, Inc. vs. National
Council on Disability Affairs
In the exercise of its power to make classifications
for the purpose of enacting laws over matters within
its jurisdiction, the state is recognized as enjoying a
wide range of discretion. It is not necessary that the
classification be based on scientific or marked
differences of things or in their relation. Neither is it
necessary that the classification be made with
mathematical nicety. Hence, legislative classification
may in many cases properly rest on narrow
distinctions, for the equal protection guaranty does not
preclude the legislature from recognizing degrees of
evil or harm, and legislation is addressed to evils as
they may appear.
The equal protection clause recognizes a valid
classification, that is, a classification that has a
reasonable foundation or rational basis and not
arbitrary.54 With respect to R.A. No. 9442, its expressed
public policy is the rehabilitation, self-development and
self-reliance of PWDs. Persons with disability form a
class separate and distinct from the other citizens of the
country. Indubitably, such substantial distinction is
germane and intimately related to the purpose of the
law. Hence, the classification and treatment accorded to
the PWDs fully satisfy the demands of equal protection.
Thus, Congress may pass a law providing for a different
treatment to persons with disability apart from the
other citizens of the country.
Subject to the determination of the courts as to what
is a proper exercise of police power using the due
process clause and the equal protection clause as
yardsticks, the State may interfere wherever the public
interests demand it, and in this particular, a large
discretion is necessarily vested in the legislature to
determine, not only what interests of the public require,
but what measures are necessary for the protection of
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54 Id., at p. 270; p. 275.
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such interests.55 Thus, We are mindful of the
fundamental criteria in cases of this nature that all
reasonable doubts should be resolved in favor of the
constitutionality of a statute.56 The burden of proof is on
him who claims that a statute is unconstitutional.
Petitioners failed to discharge such burden of proof.
WHEREFORE, the petition is DENIED. The
Decision of the Court of Appeals dated July 26, 2010,
and the Resolution dated November 19, 2010, in C.A.-
G.R. S.P. No. 109903 are AFFIRMED.
SO ORDERED.
Velasco, Jr. (Chairperson), Perez,
Reyes and Jardeleza, JJ., concur.
Petition denied, judgment and resolution affirmed.
Notes.—An ordinance based on reasonable
classification does not violate the constitutional
guaranty of the equal protection of the law. (Social
Justice Society [SJS] vs. Atienza, Jr., 545 SCRA 92
[2008])
Police power is the power of the State to enact
legislation that may interfere with personal liberty or
property in order to promote the general welfare, while
the power of taxation is the power to levy taxes to be
used for public purpose. (Planters Products, Inc. vs.
Fertiphil Corporation, 548 SCRA 485 [2008])

——o0o——
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55 U.S. v. Toribio, supra note 27 at p. 98, citing Lawton v. Steele,

152 U.S. 133, 136; Barbier v. Connoly, 113 U.S. 27; Kidd v. Pearson,
128 U.S. 1.
56 People v. Vera, 65 Phil. 199 (1937).