Beltran - v - Secretary of Health

Facts:
1.       RA 7719 (National Blood Services Act of 1994) was enacted into law. It seeks to provide an adequate supply of safe blood by promoting voluntary blood donation and by regulating blood banks in the country.
2.       Administrative Order 9, Series of 1995, constituting the Implementing Rules and Regulations (IRR) of said law was promulgated by respondent Secretary of the DOH.
Section 7 of R.A. 7719 provides:  Phase-out of Commercial Blood Banks - All commercial blood banks shall be phased-out over a period of (2) years after the effectivity of this Act, extendable to a maximum period of (2) years by the Secretary.
Section 23 of Administrative Order No. 9 provides: 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 (2) years after the effectivity of R.A. 7719. The decision to extend shall be based on the result of a careful study and review of the blood supply and demand and public safety.
3.       Years prior to RA 7719, petitioners have already been operating commercial blood banks under RA 1517 (An Act Regulating the Collection, Processing and Sale of Human Blood, and the Establishment and Operation of Blood Banks and Blood Processing Laboratories) which allowed the establishment and operation by licensed physicians of blood banks and blood processing laboratories.
4.       In 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.
a.       During the study, there were only (24) registered or licensed free-standing or commercial blood banks in the country.
b.       study deduced that each commercial blood bank produces 5 times more blood than the Red Cross and 15 times more than the government-run blood banks.
c.        donors of commercial blood banks and private-hospital based blood banks are paid donors
d.       blood sold by persons to blood commercial banks are 3 times more likely to have any of the (4) tested infections or blood transfusion transmissible diseases - malaria, syphilis, Hepatitis B and Acquired Immune Deficiency Syndrome (AIDS)
e.       Many of these donors are poor, are not usually honest about their medical or social history.
5.       The phase-out period pursuant to RA 7719 was extended for 2 years. 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 TRO under Rule 65 of the ROC assailing the constitutionality and validity of the Act and its IRR
6.       Doctors Blood Center filed a similar petition and a Petition-in-Intervention interjected, same grounds. Thus consolidated in this case.

Issue: WON sec 7 of RA 7719 constitutes undue delegation of legislative power (Based on topic outline). No.

Held:
Petitioners:
1.       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.
2.       That the 2-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 appointee or delegate of the Legislature.
-          Except as to 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.
-          RA 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 been given, under RA 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
-          This is what respondent Secretary exactly did when DOH, by virtue of the administrative bodys authority and expertise in the matter, came out with AO 9, series of 1995 or the Rules and Regulations Implementing RA  7719. Administrative Order. No. 9 effectively filled in the details of the law for its proper implementation.
-          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.
-          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 (Policy to Promote Health).

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