Based on Atty.

Bacatans Class Discussion/Presentation + Other References

ADMINISTRATIVE LAWS, LAWS ON PUBLIC OFFICERS AND ELECTION LAWS

AMGISIDRO

NOVEMBER 09, 2015

Pangasinan Transportation v. Public Service Commission
G.R. No. 47065, June 26, 1949, 70 Phil. 221

Administrative Law
Part of the public law which fixes the organization and
determines the competence of administrative
authorities who execute the law and indicates to the
individual remedies for the violation of his rights.
(Goodnow)

With the growing complexity of modern life, the multiplication of the subjects
of governmental regulation, and the increased difficulty of administering the
laws, there is a constantly growing tendency toward the delegation of greater
powers by the legislature, and toward the approval of the practice by the
courts. In harmony with such growing tendency, this court, relied upon by the
petitioner, has, in instances, extended its seal of approval to the delegation of
greater powers by the legislature.

What is an instrumentality?
It refers to any agency of the national government not
integrated within the departmental framework, vested
with special functions or jurisdiction by law, with some if
not all corporate powers, administering special funds, and
enjoying operational autonomy, usually through a charter.

FACTS
Pangasinan Transportation Company Inc. (PTI) has been engaged for
20 years in the business of transporting passengers in Pangasinan,
Tarlac and Nueva Ecija through TPU buses in accordance with the
terms and conditions of the certificates of public convenience issued
by the Public Utility Commission (later called Public Service
Commission). The company applied for an authorization to operate
ten additional Brockway trucks on the ground that they were needed
to comply with the terms and conditions of its existing certificates and
as a result of the application of the Eight Hour Labor Law. PSC agreed
to grant the authorization, but with two conditions as provided for by
section 1 of Commonwealth Act No. 454: First, that the certificates of
authorization issued to it would be valid only for a period of 25 years
counted from the date of promulgation; and second, that the
company may be acquired by the Philippine Commonwealth with
proper payment of the cost price of its equipment, taking into account
reasonable depreciation to be fixed by the Commission at the time of
it acquisition. PTI did not agree with the conditions, and instead asked
the Supreme Court to declare Commonwealth Act No. 454.

What is an agency?
An agency is any department, bureau, office, commission,
authority or officer of the national government,
authorized by law or executive order to make rules, issue
licenses, grant rights or privileges, and adjudicate cases;
research institutions with respect to licensing functions;
government corporations with respect to functions
regulating private rights, privileges, occupation or
business, and officials in the exercise of the disciplinary
powers as provided by law.
What is the distinction between the two?
There is no practical distinction between an instrumentality
and agency, for all intents and purposes. A distinction,
however, may be made with respect to those entities
possessing a separate charter created by statute.

ISSUE
Whether or not Commonwealth Act No. 454 is unconstitutional for
being undue delegation of legislative power on the ground that
without limitation, guide or rule except the unfettered discretion and
judgment of the Commission, constitute a complete and total
abdication by the Legislature of its functions in the premises, and for
that reason, the Act, in so far as those powers are concerned.

Why do we have administrative agencies?

Growing complexities of modern life;
Multiplication of number of subjects needing government
regulation; and
Increased difficulty of administering laws

RULING
No, the law is not unconstitutional. The law is made subject to a
sufficient standard that the PSC must strictly follow. Inasmuch as the
period to be fixed by the Commission under section 15 is inseparable
from the certificate itself, said period cannot be disregarded by the
Commission in determining the question whether the issuance of the
certificate will promote the public interests in a proper and suitable
manner. Conversely, in determining "a definite period of time," the
Commission will be guided by "public interests," the only limitation to
its power being that said period shall not exceed fifty years (sec. 16
(a), Commonwealth Act No. 146; Constitution, Art. XIII, sec. 8.) The
Supreme Court had earlier ruled that "public interest" furnishes a
sufficient standard.

Does the grant of such powers to Administrative Agenceies

violate the Doctrine of Separation of Powers?
No. Administrative agencies became the catch basin for
the residual powers of the 3 branches. The theory of the
separation of powers is designed to forestall over action
resulting from concentration of power. However with the
growing complexity of modern life, there is a constantly
growing tendency toward the delegation of greater
powers by the legislature.

Based on Atty. Bacatans Class Discussion/Presentation + Other References

ADMINISTRATIVE LAWS, LAWS ON PUBLIC OFFICERS AND ELECTION LAWS

AMGISIDRO

Determinative powers
It is the power of administrative agencies to better
enable them to exercise their quasi-judicial authority.
Licensing
The action of an administrative agency in granting or
denying, or in suspending or revoking a license, permit,
franchise, or certificate of public convenience and
necessity.
Price/ rate-fixing
It is the power usually delegated by the legislature to
administrative agencies for the latter to fix the rates
which public utility companies may charge the public.
Implementing or executing

Administrative Agency
Any governmental organ or authority, other than a court
or legislative body, which affects the rights of private
parties, through rule-making and adjudication. (Nachura)
Any department, bureau, office, commission, authority or
officer of the National Government authorized by law or
executive order to make rules, issue licenses, grant rights
or privileges, and adjudicate cases; research institutions
with respect to licensing functions; government
corporations with respect to functions regulating private
right, privilege, occupation or business; and officials in the
exercise of disciplinary powers as provided by law. (Sec. 2,
Book VII, Admin Code of 1987)
Kinds/Sources of Administrative Law
1. Statutes setting up administrative authorities either by:
Creating boards, commissions, and administrative
officers or
Confiding the powers and duties to existing boards,
commission or officers to:
Amplify
Execute
Supervise the operations of, and
Determine controversies arising under particular
laws in the enactment of which the legislature
decided for matters of convenience or for quicker or
more efficient administration to withhold the
controversies, at least in the first instance, from the
courts of law
2. Rules, regulations or orders of such administrative
authorities enacted and promulgated in pursuance of the
purposes for which they were created or endowed
3. Determinations, decisions and orders of such
administrative authorities made in the settlement of
controversies arising in their particular fields
4. Body of doctrines and decisions dealing with the creation,
operation, and effect of determinations and regulations of
such administrative authorities

Types of Administrative Agencies

As to purpose
As to the organic law of creation
As to hierarchy
Administrative Agencies (as to purpose)
Agencies created in situations wherein the government is
offering some gratuity, grant, or special privilege
GOVERNMENT GRANT OR GRATUITY, SPECIAL PRIVILEGE
Phil. Veterans Board (defunct), Board on pensions for
Veterans, NARRA, Philippine Veterans Administration
Agencies set up to function in situations wherein the
government is seeking to carry on certain government
functions CARRYING OUT THE ACTUAL BUSINESS OF
GOVERNMENT
Bureau of Immigration, BIR, Board of Special Inquiry,
Board of Commissioners, CSC, BSP
Agencies set up to function in situations wherein the
government is performing some business service for the
public SERVICE FOR PUBLIC BENEFIT
Bureau of Posts, Postal Savings Bank, MWSS, Phil.
National Railways, Civil Aeronautics Administration
Agencies set up to function in situations wherein the
government seeking to regulate business affected with
public interests REGULATION OF BUSINESSES AFFECTED
WITH PUBLIC INTEREST
Fiber Inspection Board, Phil. Patent Office, Office of the
Insurance Commissioner
Agencies setup to function in situations wherein the
government is seeking under the police power to regulate
private business and individuals REGULATION OF
PRIVATE BUSINESSES AND INDIVIDUALS
SEC, Board of Food Inspectors, MTRCB, PRC
Agencies setup to function in situations wherein the
government is seeking to adjust individual controversies
because of some strong social policy involved
ADJUSTMENT OF INDIVIDUAL CONTROVERSIES BECAUSE
OF A STRONG SOCIAL POLICY INVOLVED

Powers of an Administrative Agency

Quasi-legislative or rule-making power
It is the exercise of delegated legislative power,
involving no discretion as to what the law shall be, but
merely the authority to fix the details in the execution
or enforcement of a policy set out in the law itself.
Quasi-judicial or adjudicatory power
It is the power of administrative authorities to make
determination of facts in the performance of their
official duties and to apply the law as they construe it to
the facts so found. It partakes the nature of judicial
power, but is exercised by a person other than a judge.

Based on Atty. Bacatans Class Discussion/Presentation + Other References

ADMINISTRATIVE LAWS, LAWS ON PUBLIC OFFICERS AND ELECTION LAWS

AMGISIDRO

NLRC, Court of Agrarian Relations, Regional Offices of

DOLE, Social Security Commission, Bureau of Labor
Standards, Women and Minors Bureau
Government as private party

Presidential Anti-Graft Commission

Presidential Commission on Youth Affairs (National
Youth Commission)
Atlas Commission

Administrative Agencies (as to the organic law of creation)

They are created whether individual or institutional by:
1987 Constitution/ Constitutional Provisions
Civil Service Commission [Art. IX-B]
Commission on Elections [Art. IX-C]
Commission on Audit [Art. IX-B]
Commission on Human Rights [Art. XIII, Sec. 17]
Commission on Appointments [Art. VI, Sec. 18]
Senate Electoral Tribunal [Art. VI, Sec. 17]
House of Representatives Electoral Tribunal [Art. VI,
Sec. 17]
Judicial and Bar Council [Art. VIII, Sec. 8]
Office of the Ombudsman [Art. IX, Sec. 5]
National Economic and Development Authority [Art. XII,
Sec. 20]
An agency on Cooperatives [Art. XII, Sec. 15]
An independent Central Money Authority [Art. XII, Sec.
20]
National Language Commission [Art. XIV, Sec. 9]
National Police Commission [Art. XVI, Sec. 6]
Consultative Body on Indigenous Cultural Communities
[Art. XVI, Sec. 12]
Legislature in legislative enactments/ Legislative
Enactments/ Law
National Food Authority (PD No. 4)
National Labor Relations Commission (PD 442)
Social Security Commission (RA 1161)
Land Transportation Office (RA 4136)
Bureau of Customs
Bureau of Internal Revenue
NLTC
PRC
Court of Agrarian Relations
Phil. Patent Office
Securities and Exchange Commission
Board of Transportation
BSP
National Grains Authority
Authorities of Law/ Executive Orders
Under various government reorganization acts, the
President and the Government Survey and Reorganization
Commission had been authorized and had in fact created
administrative offices and agencies in the course of the
reorganization of the executive branch of the government.
Usually through an Executive fiat
Not permanent
Given specific tasks/ mandate

Administrative Agencies (as to hierarchy)

Office of the President and Cabinet and their respective
departments
Independent Constitutional Commissions
Other Constitutional Bodies
Regulatory Commission
Public Corporation
NOVEMBER 10, 2015
Types of Administrative Rules