FACTS:

The case involves the creation and powers of the Laguna Lake Development Authority (LLDA). Republic Act No. 4850 was enacted to promote the development and balanced growth of the Laguna Lake area and its surrounding provinces, cities, and towns. Presidential Decree No. 813 amended certain sections of Republic Act No. 4850 to address concerns about the rapid expansion of Metropolitan Manila and the lakeshore towns of Laguna de Bay. The amendment aimed to address the impact of development on the water quality and ecology of the lake and the inflow of polluted water. The LLDA was granted special powers, including the authority to engage in fish production and aquaculture projects. It was also given exclusive jurisdiction to issue permits for use of the lake waters, regulate lake activities, and collect fees. The LLDA was empowered to promulgate rules and regulations governing fisheries development activities in Laguna de Bay.

However, a dispute arises over the jurisdiction and authority to issue fishing privileges in the Laguna Lake Region. The LLDA claims exclusive jurisdiction and authority over the issuance of permits for the use of surface water in the region, while the municipalities argue that they have exclusive authority to grant fishing privileges in their municipal waters under the Local Government Code of 1991. The conflicting interpretations of the law have led to a dispute between LLDA and the municipalities over the issuance of fishing privileges in the Laguna Lake Region.

In response to the increase in unregulated fishpens and fishcages within Laguna de Bay, the LLDA issued a notice declaring these structures as illegal. The notice mentioned that these structures would be subject to demolition and the owners would be criminally charged for violation of relevant laws. The LLDA argued that these fishpen permits were issued by municipal governments in violation of their policies on fishpen zoning and the carrying capacity of the lake. This situation further exacerbated the environmental problems and ecological stress of Laguna Lake.

ISSUES:

1. Whether the Court of Appeals committed an error in ruling that the Laguna Lake Development Authority (LLDA) is not a quasi-judicial agency and therefore, its decisions are not appealable only to the Court of Appeals.

2. Whether the provisions of the LLDA charter regarding fishing privileges in Laguna de Bay have been repealed by the Local Government Code of 1991.

3. Whether, in view of the alleged repeal, the power to grant permits for fishpens and other aqua-culture structures in Laguna de Bay now rests with the respective local government units.

4. Whether the Laguna Lake Development Authority (LLDA) is a quasi-judicial agency.

5. Whether Republic Act No. 7160, the Local Government Code of 1991, repealed the laws creating the LLDA and granting it water rights authority over Laguna de Bay.

6. Whether the power to issue fishpen permits in Laguna de Bay has been devolved to lakeshore local government units.

7. Whether the power of the local government units to issue fishing privileges is for revenue purposes.

8. Whether the power of the Authority to grant permits for fishpens, fishcages, and other aqua-culture structures is a valid exercise of police power.

9. Whether the Authority is a quasi-judicial agency.

10. Whether the Authority has exclusive jurisdiction to issue permits for fishery privileges in Laguna de Bay.

11. Whether the permits issued by Municipal Mayors within the Laguna Lake Region for the construction and operation of fishpens, fishcages, and other aqua-culture structures are null and void for being issued with grave abuse of discretion.

12. Whether the fishing permits issued by specific Municipal Mayors are also null and void and should be cancelled.

13. Whether the aqua-culture structures put up by operators by virtue of permits issued by Municipal Mayors are illegal and subject to demolition by the Laguna Lake Development Authority.

RULING:

1. The Court of Appeals erred in ruling that the LLDA is not a quasi-judicial agency. The LLDA has been vested with quasi-judicial functions insofar as fishpens are concerned. However, the Court of Appeals correctly held that the provisions of the LLDA charter regarding fishing privileges in Laguna de Bay have been repealed by the Local Government Code of 1991. Consequently, the power to grant permits for fishpens and other aqua-culture structures in the area now lies with the respective local government units.

2. The provisions of the charter of the LLDA, Presidential Decree No. 813, and Executive Order No. 927 provide that the LLDA has exclusive jurisdiction to issue permits for the use of all surface water affecting the Laguna Lake region, including the operation of fishpens. Therefore, the LLDA is a quasi-judicial agency.

3. The Local Government Code of 1991 does not expressly repeal the laws creating the LLDA and granting it water rights authority over Laguna de Bay. It is a well-settled rule that a special law, such as the charter of the LLDA, cannot be repealed by a subsequent general law, unless the intent to repeal or alter is manifest. Therefore, the LLDA's authority prevails over the Local Government Code of 1991.

4. The power to issue fishpen permits in Laguna de Bay has not been devolved to lakeshore local government units. The LLDA, as a quasi-judicial agency, has exclusive jurisdiction over the issuance of fishery privileges in the lake. Fragmented concepts of management involving exclusive dominion over specific portions of the lake water would not be effective in conserving, protecting, and sustainably developing Laguna de Bay.

5. The power of the local government units to issue fishing privileges is for revenue purposes.

6. The power of the Authority to grant permits for fishpens, fishcages, and other aqua-culture structures is a valid exercise of police power.

7. The Authority is a quasi-judicial agency.

8. The Authority has exclusive jurisdiction to issue permits for fishery privileges in Laguna de Bay.

9. The permits issued by Municipal Mayors within the Laguna Lake Region for the construction and operation of fishpens, fishcages, and other aqua-culture structures are declared null and void for being issued with grave abuse of discretion.

10. The fishing permits issued by specific Municipal Mayors are likewise declared null and void and should be cancelled.

11. The aqua-culture structures put up by operators by virtue of permits issued by Municipal Mayors are declared illegal and subject to demolition by the Laguna Lake Development Authority.

PRINCIPLES:

• The LLDA is a quasi-judicial agency with the power to decide on matters related to fishpens in Laguna de Bay.

• The Local Government Code of 1991 repealed the provisions of the LLDA charter concerning fishing privileges in the area.

• The power to grant permits for fishpens and other aqua-culture structures in Laguna de Bay now rests with the respective local government units.

• Police power is the most pervasive, the least limitable, and the most demanding of all State powers, including the power of taxation.

• Administrative agencies have only such powers as are expressly granted to them by law, but they also have powers necessarily implied in the exercise of their express powers.

• In pollution cases related to the Laguna Lake region, the Laguna Lake Development Authority has the responsibility to protect the inhabitants and prevent ecological disturbances, deterioration, and pollution.

• The Authority's power to issue a cease and desist order is implied and necessary for the exercise of its express regulatory and quasi-judicial powers.

• Actions necessitating the resolution of legal questions affecting the powers of the Authority may be brought before the Regional Trial Courts.

• The Local Government Code of 1991 did not intend to repeal the provisions of the charter of the Laguna Lake Development Authority.

• Permits issued with grave abuse of discretion are null and void.

• The Laguna Lake Development Authority has the authority to declare aqua-culture structures illegal and order their demolition.