FACTS
Pursuant to Secs. 129 and 133 of the Local Government Code (LGC), the Sangguniang Panglungsod of Butuan passed an SP Ordinance providing for, among others, the payment of franchise fees for the grant of the franchise for tricycles-for-hire, fees for the registration of the vehicle, and fees for the issuance of a permit for the driving of the same.
The Land Transportation Authority (LTO) questioned the validity of the subject ordinance, arguing that the functions of registering motor vehicles and issuing permits or licenses for the driving of the same have not been devolved by law upon any local government unit.
RULING
The Supreme Court ruled in favor of the LTO.
While the LGC transferred some of the powers and functions of the DOTC to LGUs, the power to regulate the operation of tricycles and grant franchises for the operation thereof within the territorial jurisdiction of cities and municipalities is still subject to the guidelines prescribed by the DOTC.
In fact, as per Sec. 458 of the LGC, the newly delegated powers pertain to the franchising and regulatory powers theretofore exercised by the LTFRB and not to the functions of the LTO relative to the registration of motor vehicles and issuance of licenses for the driving thereof.
To hold otherwise would result in the repeal of LTO's regulatory power which evidently has not been intended by the LGC. Police power and taxation, along with eminent domain, are inherent powers of sovereignty which the State might share with LGU’s by delegation given under a constitutional or a statutory fiat.
But the SC pointed out that although these powers are correlative to each other in many respects, the grant of one does not necessarily carry with it the grant of the other.
