Political Law 1 Case Digest| People v Rosenthal | Delegation of Powers 10 July 2013 PEOPLE vs.

Rosenthal FACTS Osmena and Rosenthal are founders and shareholders of the ORO Oil Company which was en a ed in minin ! refinin ! mar"etin ! #uyin and sellin petroleum! natural as and other oil products They are alle ed to have violated the ACT $%&'( )L*E S+, LA- . #y sellin shares / speculative securities without first o#tainin the written permit or license from the 0nsular Treasurer. The shares are said to #e speculative #ecause their value materially depended upon a promise of future promotion and development of the oil #usiness! rather than #ased on actual tan i#le assets. RTC( found them uilty. On appeal! they assail the constitutionality of the law! that it contravenes the constitutional provisions of the 1O2ES ACT #ecause the law constitutes *23*E 3ELE4AT0O2 OF LE40SLAT05E PO-ERS to the 02S*LAR TREAS*RER. *nder the )lue S"y Law! all persons who offer to sell securities to the pu#lic must o#tain license from the 0nsular Treasurer. The license to sell is issued only whenever the 0T is satisfied that the applicant has complied with the provisions of the )SL. Furthermore! the )SL provides that the 0nsular Treasurer shall have authority! whenever in his judgment it is in the public interest! to cancel said license or permit. Osmena and Rosenthal ar ue however that the )lue S"y Law provides 2O STA23AR3 or R*LE which can uide the 0nsular Treasurer in determinin the cases in which a certificate or permit ou ht to #e issued or cancelled! there#y ma"in his opinion the sole criterion. Conse6uently! they ar ue! le islative powers have #een unduly dele ated to the 0nsular Treasurer.

0SS*E( -hether or not there was undue dele ation of le islative powers. SC R*L024( P*)L0C 02TEREST in this case is a sufficient standard to uide the 0nsular Treasurer. There is no undue dele ation of authority since there is a stated criterion . pu#lic interest. 0t is a mista"en assumption that this is a mere eneral reference to pu#lic welfare without any standard to uide determinations. '. T7E P*RPOSE OF T7E ACT! $. T7E RE8*0RE9E2TS 09POSE3! and

:. T7E CO2TE;T OF T7E PRO50S0O2S All show that there is a stated criterion. Also! the decisions of the 0nsular Treasurer is appeala#le to the Secretary of Finance! hence the 0T does not act and decide without any restrainin influence. Upon the other han ! the authority of the "nsular #reasurer to cancel a certificate or per$it is e%pressly con itione upon a fin ing that such cancellation &is in the pu'lic interest(& "n view of the intention an purpose of )ct *o( 2+,1 - to protect the pu'lic against &speculative sche$es which have no $ore 'asis than so $any feet of 'lue s.y& an against the &sale of stoc. in fly/'y/night concerns! visionary oil wells! istant gol $ines! an other li.e frau ulent e%ploitations&! - we incline to hol that &pu'lic interest& in this case is a sufficient stan ar to gui e the "nsular #reasurer in reaching a ecision on a $atter pertaining to the issuance or cancellation of certificates or per$its( "n this connection! we cannot overloo. the fact that the )ct *o( 2+,1 allows an appeal fro$ the ecision of the "nsular #reasurer to the 0ecretary of 1inance( 2ence! it cannot 'e conten e that the "nsular #reasurer can act an eci e without any restraining influence( This Court had upheld "public welfare" and "public interest," respectively, as sufficient standards for a valid delegation of the authority to execute the law. But, the doctrine laid down in this case as all judicial pronouncements must be construed in relation to the specific facts and issues involved therein, outside of which they do not constitute precedents and have no binding effect. The Rosenthal case referred to the authority of the nsular Treasurer, under !ct "o. #$%&, to issue and cancel certificates or permits for the sale of speculative

Political Law 1 Case Digest| People v Rosenthal | Delegation of Powers 10 July 2013 securities. This case involved grants to administrative officers of powers related to the exercise of their administrative functions, calling for the determination of 'uestions of fact.