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Administrative Law

Atty. Ereneta

1. Private rights
Chapter 1 The chief concern of administrative law is
INTRODUCTION the protection of private rights
Subject matter of administrative law is the
nature and the mode of exercise of
Concept of administrative law
administrative power and the system of
Administrative law belongs to the field of public law
relief against administrative action
(as opposed to private law)
Law which provides the structure of government
2. Delegated powers and combined powers
and prescribes its procedure
Administrative law is concerned with
The law of governmental administration
officers and agencies exercising delegated
Part of public law which fixes the organization and
powers and NOT with the exercise of the
determines the competence of the administrative
constitutional powers of the President
authorities, and indicates to the individual,
It is concerned with and results from a
remedies for the violation of his rights.
fusion of different types of governmental
√ That part of the law which governs the
powers in certain public officers which are
organization, functions, and procedures of
part of the executive branch of the
administrative agencies of the government to
government
which quasi legislative powers are delegated and
quasi judicial powers are granted, and the extent
Distinguished from international law
and manner to which such agencies are subject to
control by the courts. Administrative law International law
Lays down the rules Not binding upon the
Public law Private law which shall guide the officers of any
officers of the government considered
That branch of law which Rules which regulate the
administration in their in relation to their own
regulates the relations of relations of individuals
actions as agents of the government
the State with its with one another,
government
subjects without regard to their
Ex: It has been adopted
relation to their
into the administrative
government
law of the state
Scope of administrative law
Distinguished from constitutional law
1. The law which fixes the administrative organization
and structure of the government Administrative law Constitutional law
2. The law, the execution or enforcement of which is Gives and carries out the Prescribes the general
entrusted to administrative authorities general plan in its plan or framework of
3. The law which governs public officers including minutest details governmental
their competence to act, rights, duties, liabilities, organization
election, etc. Treats the rights of the Treats of the rights of
4. The law which creates administrative agencies, individual from the the individual
defines their powers and functions, prescribes their standpoint of the powers
procedures, including the adjudication or of the government
settlement by them of contested matters involving Emphasizes the powers Lays stress upon rights
private rights of government and
5. The law which provides the remedies available to duties of the citizens
those aggrieved by administrative actions or Indicates to individuals Prescribes the limitations
decisions remedies for the on the powers of the
6. The law which governs judicial review of, or relief violation of their rights government to protect
against, administrative actions or decisions the rights of individuals
7. The rules, regulations, orders, and decisions
(including presidential proclamations) made by
administrative authorities dealing with the Distinguished from criminal law
interpretation and enforcement of the laws Administrative law Criminal law
entrusted to their administration A rule of law protected Consists of body of penal
8. The body of judicial decisions and doctrines dealing or enforced by a penal sanctions which are
with any of the above sanction may be really applied to all branches of
administrative in law, including
Note: Administrative law embraces not only the law that character. The mere administrative law
governs administrative authorities that construe and apply affixing of a penalty to
them, but also the law made by administrative authorities. the violation of a rule of
administrative law does
“Administrative authorities” -> all those public officers and not deprive such rule of
administrative agencies of the government but DO NOT its administrative
include Congress and the regular courts character

Concerns of administrative law

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Distinguished from law of public administration particular


Administrative law Law of public determinations
administration 1. Adjective or
The subject matter of Has to do with practical procedural
administrative law is management and administrative law
public administration. direction of the various It establishes the
The true field of organs of the State and procedure which
administrative law refers the execution of State an agency must
only to the EXTERNAL policies by the executive or may follow in
aspect of public and administrative the pursuit of its
administration. officers entrusted with As to its purpose legal purpose
such functions
The two are apparently synonymous with each other, 2. Substantive
however administrative law is the narrower branch administrative law
but it constitutes the bulk of the law of public The law
administration establishes
primary rights
and duties
Principal subdivisions of administrative law 1. General
The law of INTERNAL The law of EXTERNAL administrative law
administration administration Common to all
It treats of the legal It is concerned with or most
relations between the legal relations administrative
the government and between agencies
its administrative administrative It is chiefly but
officers, and of the authorities and not exclusively
legal relations that private interests procedural law
one administrative (remedies)
officer or organ Divided into 4 parts: “Due process of
bears to another. 1. A survey of those law”
It considers the powers and duties Doctrine of
legal aspects of of administrative As to its applicability exhaustion of
public administration authorities that administrative
on its institutional relate directly to remedies
side, i.e., as a going private interests
concern 2. An analysis of the 2. Special or particular
This includes the scope and limits of administrative law
legal structure or such powers Pertains to
organization of 3. Some account of the particular
public sanctions attached agencies
administration, the to, or the meaning Proceeds from
legal aspects of its of enforcing, official the particular
institutional determinations statute creating
activities, and the 4. An examination of the individual
legal questions the remedies agency and thus
involved in overall against official has little or not
management of action application
these activities except in
connection with
Note: √ Administrative law is principally concerned with the such agency
problems of administrative REGULATION, rather than with Procedural
those of administrative MANAGEMENT. provisions that
are to be
Classification of administrative law applied only by
1. The law that a given agency
controls in cases falling
administrative under its
authorities jurisdiction

As to its source 2. The law made by Note: It must be stressed that “made” law is law only
administrative because some statute or constitutional provisions so
authorities prescribe. No agency can “make” law without thereby
It includes both “applying” the enabling act which authorizes agency action.
general In the hierarchy of norms, the regulation stands one step
regulations and below the enabling statute, which, in turn, ranks below the

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Constitution. Administrative decisions are at once law


“making” and law “applying.” 3. Trend toward preventive legislation
Existence of criminal law and law of torts
Origin and development of administrative law and of contracts may have a deterrent
1. Recognition as a distinct category of law effect, but when it does not, all the law
Comparatively recent origin can do is to impose punishment and
Not one of the traditionally recognized indemnify
parts of the law The desire for more effective and more
flexible preventive remedies has been a
2. Multiplication of government functions factor in the creation of many
As modern life became more complex, the administrative agencies.
subjects of government regulations Example: Prevention is also a major
correspondingly increased, which, in turn purpose of licensing statutes. Licensing is
caused a multiplication of governmental both one of the most burdensome and one
functions, necessitating an enormous of the most effective forms of regulation
expansion of public administration
4. Limitations upon effective legislative action
3. Growth and utilization of administrative agencies There are limitations inherent in the
Administrative law has developed in legislative process which make it a
response to the need for broad social or practical impossibility for Congress to do
governmental control over complex all the things it theoretically could do
conditions and activities which in their These limitations include lack of time and
detail cannot be dealt with directly in an specialized knowledge, lack of staff for
effective manner by the legislature or the securing expert information, etc.
judiciary If Congress failed to delegate wide powers
to administrative agencies, it might lose
4. Fusion of different powers of government in itself in details to the detriment of its
administrative agencies indispensable functions of determining
Administrative law resulted from increased basic policy and holding administrative
functions of government agencies accountable for net results.
With their extensive investigation, rule-
making, and adjudicating powers, these 5. Limitations upon exclusively judicial enforcement
administrative agencies represent a Many courts would vary in their
provocative fusion of different powers of application of the law
government No uniformity in the policy of initiation if
initiative would fall to prosecutors or law
enforcement agencies
5. A law in the making A single administrative agency can
Administrative law is still in its formative assume the responsibility for enforcement
stages and can develop, subject to judicial
review, uniform policies in the carrying
out of that responsibility
Advantages of the administrative process
Administrative process: includes the whole of the 6. Advantages of continuity of attention and clearly
series of acts of an administrative agency whereby allocated responsibility
the legislative delegation of a function is made Administrative agencies have the time and
effectual in particular situations facilities to become and to remain
continuously informed, and they can be
1. Advantages of administrative adjudication as given unified responsibility for effectuating
compared with executive action the broad policies laid down by Congress.
Administrative adjudication: where
practicable, insures greater uniformity and 7. Need for organization to dispose of volume of
impersonality of action business and to provide the necessary records
In this area of government, the There is a need for specialized staff and
administrative process – far from being an machinery to keep and make available
encroachment upon the rule of law, is an records upon which judgment on
extension of it. thousands of claims and applications must
Discretion is sometimes preferable to rule. be based.
. Time may be of the essence as where, in
the registration of securities, procedures
2. Limitation upon the power of courts and staffs must be available to investigate
Functions which involve discretion with speedily
respect to future conduct -> will not be
undertaken by the courts Criticisms against administrative action
Judicial process is NOT an alternative to 1. Tendency towards arbitrariness
administrative process

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2. Lack of legal knowledge and aptitude in sound merely dependent on the government officers as
judicial technique solution of the question to the applicability in the
3. Susceptibility of political bias or pressure, often “what is the law” but cases in question of a
brought by uncertainty of tenure made also as a result of particular rule of law
4. A disregard for the safeguards that insure a full consideration of
and fair hearing expediency
5. Absence of standard rules of procedure suitable to What is the law in order What law is applicable to
the activities of each agency to determine whether the facts brought before
6. A dangerous combination of legislative, executive, administrative officers them
and judicial functions are competent to act,
but furthermore, they
Relations between administrative agencies and courts must decide whether in
1. Collaborative instrumentalities case they are competent
Collaboration of judicial power and to act, it is wise for them
function with the administrative process is to act
a necessary part of today’s legal system,
and the appropriate independence of each Administration as a separate power
should be respected by the other. In the traditional classification of governmental
In effecting the collaboration of courts and power, no recognition is given to administration as
agencies, courts may entertain action a separate function of government.
brought before them, but call to their aid
the appropriate administrative agency on As a function As an organization
questions within its administrative “Administration” is “Administration” is
competence the execution, in spoken of
non-judicial matters, accompanied by the
2. Role of courts of the law or will of definite article “the.”
a. To accommodate the administrative the State as “The administration”
process to the traditional judicial system expressed by the -> most important
b. To accommodate private rights and the competent authority administrative
public interest in the powers reposed in Administration is the authorities
administrative agencies activity of the It is that group or
c. To reconcile in the field of administrative executive officers of aggregate of
action, democratic safeguards and the government persons in whose
standards of fair play with effective Executive action hands the reins of
conduct of government Administration had the government are
to do with the for the time being
3. Discharge of judicial role carrying of laws into
a. To maintain the Constitution by seeing effect
that powers are not unlawfully vested in As a function,
administrative agencies administration may
b. To give due deference to the role of the be internal or
administrative agencies and not interfere external
with the proper exercise of their valid Administration is both the function of execution of
powers the law (or management of government affairs) and
c. To lend the powers of the court to the the totality of the executive and administrative
proper attainment of the valid objectives authorities
of the administrative agency
d. To leave the legislature or the people the Administration as an organization distinguished from
remedy for administrative action, which government
may be unwise or undesirable but is Administration Government
within the lawful powers of the agency.
Refers to the aggregate Aggregate of authorities
of those persons in which rule a society
Note: √ The courts are NOT advisers of administrative
whose hands the reins of
agencies.
government are
entrusted by the people
Administration of government distinguished from
for the time being
administration of justice
Administrative officers Judicial officers
Those charged with Those charged with
administration of administration of justice CHAPTER II
government NATURE AND ORGANIZATION OF ADMINISTRATIVE
The work done by the The work done by AGENCIES
administrative officers is judicial officers consists
not necessarily or even in the decision of
often the result of any controversies between A. Statutes and Characteristics
controversy and is not individuals and

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Administrative Law
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Creation, reorganization, and abolition of


administrative agencies Local agency
Some administrative agencies are created by or Refers to a local government or a distinct unit
receive their powers from constitutional provisions therein.
which may be self-executing
The power of Congress to create and act through Administrative agency or body and court
administrative agencies is undoubted distinguished
The Executive may also create administrative Administrative body Court
agencies, especially investigative agencies Generally a large A tribunal which is
Duly executed acts of an administrative agency can organization staffed by presided by one or more
have valid effects even beyond the life span of said men who are deemed to jurists learned in the law
agency. become something of
Administrative agencies of statutory origin are experts in their particular
subject to expansion or contraction of their powers, fields
or to reorganization or abolition at the will of Performs a variety of Has only one function –
Congress. functions judicial
Congress has vested power in the President to Uses a varying degree of More or less governed by
reorganize executive agencies and redistribute discretion in arriving at fixed rules in arriving at
functions decisions and often its decisions and bound
When the purpose of a statute is to abolish a proceeds without being by the rules that no
department or an office or an organization and to bound by technical rules adjudication is to be
replace it with another one, the lawmaking of evidence or procedure made until after due
authority says so (e.g., is abolished; shall cease to notice to the parties with
exist) opportunity for a full and
Congress can delegate the power to create fair hearing
positions. This has been settled by decisions
upholding the validity of reorganization statutes Status or character of particular administrative
authorizing the President to create, abolish, or agencies
merge offices in the executive department. 1. As public or governmental agencies
Represent no private interests of their
Note: While the President’s power cannot be denied, this own, but function or act within the scope
does not mean that the reorganization itself is properly of their authority, for and on behalf of the
made in accordance with law. Well-settled is the rule that government, and as representatives of the
reorganization is regarded as valid provided it is pursued in public
good faith. They may, as an incident to the
performance of their public functions,
Meaning of administrative agency determine issues between private parties
An agency exercising some significant combination or private rights
of executive, legislative, and judicial powers. The term “administrative agency” has
It is a government body charged with customarily been restricted to persons
administering and implementing particular vested under a statute with the real power
legislation. to act for the government
It covers boards, commissions, divisions, bureaus The authority to act with the sanction of
and departments, and the somewhat less familiar the government determines whether or
designations of “office” and “authority.” not a governmental agency exists
Some commentators assert that the
“administrative” is a fourth power of government, 2. As judicial bodies or courts
since viewed from the standpoint of any particular Administrative agencies are not courts or
act of the agency, it is either executive, or in the part of the judicial system
narrowest sense, administrative, or legislative, or Not courts in the strict sense -> not
judicial, or to distinguish it from agencies which are courts or judicial bodies or tribunals in the
purely or essentially legislative or judicial, it is strict sense even though they have the
quasi-legislative or quasi-judicial. name of “court”
Administrative agencies cannot exercise
Note: Quasi-judicial body has been defined as “an organ of purely judicial functions
government other than a court and other than a legislature, Certain administrative agencies may be
which affects the rights of private parties through either held not to constitute courts or judicial
adjudication or rule-making. bodies because their function is not to
adjudicate impartially but to represent a
Agency of the Government public interest, because of their
any of the various units of the government, investigatory and inquisitorial powers, or
including departments, bureau, office, because they exercise commingled
instrumentality, GOCC, or local government legislative, executive, and judicial
functions.
National agency Courts in the broad sense -> exercise
Refers to a unit of the national Government powers judicial in nature and proceedings

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partake of the nature of judicial Administrative agencies supply most of


proceedings the motive power of government
Functions primarily regulatory ->
Functions of an administrative agency are 4. Variety of administrative duties
primarily regulatory even if it conducts This fact makes generalization in
hearings and decides controversies to description difficult
carry out this duty. On the other hand, It makes generalization in prescription
the primary duty of a judicial body is to even more difficult -> A procedure which
adjudicate upon and protect the rights and would be for the protection of the
interest of private parties individual in one situation may be clearly
to his injury in another.
3. As legislative or executive agencies
Administrative agencies may be said to be Consequences of characteristics
arms and instrumentalities of the 1. Highly important characteristic of administrative
legislative branch of the government procedure: delegation of function and authority
They may also be viewed as part of the 2. allocation of functions among the members and
executive branch of government staff of the agency -> internal organization
3. Major work of the heads of an agency is normally
4. As independent or subordinate bodies supervision and direction -> Administrative
“Administrative agency” or “commission” - procedures must be founded upon the reality that
> used either to designate an agency many persons in the agency other than the heads
independent of the executive branch or must do the bulk of this work. When agency heads
one not subject to a superior head of permit themselves to be overwhelmed by detail,
department (e.g., COA, CSC, COE) they rob themselves of time essential for their
“Subordinate” -> applied to a body whose most important tasks.
actions are subject to administrative
review or revision Delegation of function and authority
1. Types
5. As corporate bodies or legal entities a. delegation of internal management
Legal capacity to sue and be sued b. delegation of authority to dispose of
Legal entities with perpetual existence routine matters
apart from their members c. delegation of authority to dispose of
matters informally, or to initiate formal
Main characteristics of administrative agencies proceedings
1. Size d. delegation of authority and function in
Many administrative agencies are formal proceedings (includes delegation of
necessarily large authority to conduct formal hearings)
The size of the administrative agencies
reflects both their nationwide jurisdiction 2. Degree
and the character of their work It is not true that authority must be
Problem of internal organization and delegated completely or not at all
delegation of authority Delegation may be combined with
supervision and control
2. Specialization Supervision and control may call for:
Administrative agencies specialize a. The statement by agency heads of
Staffs become specialized from experience policies which have crystallized for
or include persons with technical or routine application by subordinates
professional training. b. Consideration by agency heads of
A central problem of organization is how cases in which the application of
to utilize these skills or training and established policy is difficult, or in
experience best. This does not mean that which policy has not crystallized
the members of a regulatory board or c. The requirement of weekly or even
commission need to be specialists. daily reports to agency heads
Specialization has bearing also upon
procedure -> informal methods without Types of administrative agencies
necessity of formal hearing classified according to purposes
1. Those created to function in situations wherein the
3. Responsibility for results government is offering some gratuity, grant, or
A particular administrative agency is special privilege (e.g., GSIS, SSS)
charged by Congress with accomplishing a 2. Those set up to function in situations wherein the
particular statutory end government is seeking to carry on certain functions
They cannot, like the courts, sit passively of government (e.g., BIR, LRA, most administrative
until some plaintiff takes the initiative. Nor agencies)
can they take a purely neutral attitude 3. Those set up to function in situations wherein the
toward accomplishment of the task which government is performing some business service
they are charged

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for the public (e.g., Phil. National Railways, NHA, Civil Service Commission Commission
NFA) Commission on Elections on Audit
4. Those set up to function in situations wherein the Other special bodies: Office of the Ombudsman,
government is seeking to regulate businesses Commission on Human Rights, central monetary
affected with public interest (e.g., Energy authority, national police commission, independent
Regulatory Board, LTFRB, NTC) economic and planning agency (NEDA)
5. Those set up to function in situations wherein the
government is seeking under their police power to Doctrine of political agency
regulate private businesses and individuals (e.g., Recognizes the establishment of a single executive, all
SEC, MTRCB) executive and administrative organizations are adjuncts of
6. Those agencies set up to function in situations the Executive Department, and except in cases where the
wherein the government is seeking to adjust Chief Executive is required by the Constitution or law to act
individual controversies because of some strong in person, the multifarious executive and administrative
social policy involved (e.g., NLRC, SEC, DAR) functions of the Chief Executive are performed by and
through the executive departments, and the acts of the
Note: An administrative agency may fall under more than Secretaries of such departments are, unless disapproved or
one type reprobated by the Chief Executive, presumptively the acts
of the Chief Executive.

B. Administrative Organization Organization of the Office of the President

Distribution of powers of government 1. Office of the President Proper


(1) Private office
Administrative organization Provide direct services to the President
Administrative structure of the government including its Attend to functions and matters that are
political subdivisions and the allocation of powers, functions, personal or which pertain to the First Family
and duties to its various units or agencies (2) Executive office
Headed by the Executive Secretary
1. Traditional branches Refers to the Office of the Executive
National Government Secretary, Deputy Executive Secretaries,
and Assistant Executive Secretaries
Refers to the entire machinery of the central The Executive Secretary shall, subject to
government, as distinguished from the the control and supervision of the President,
different forms of local government which carry out the functions assigned by law to
refers to the political subdivisions the Executive Office and shall perform such
established by or in accordance with the other duties as may be delegated to him by
Constitution the President
Distributed among three branches (3) Staff Support System
Legislative Executive Judicial Embraces the offices or units under the
power power power general categories of development and
It shall be It shall be It shall be management, general government
vested in the vested in the vested in one administration and internal administration
Congress which President Supreme (4) Presidential Special Assistants/Advisers System
shall consist of Court, and in Provides advisory or consultative services to
the Senate and such lower the President in such fields and under such
House of courts as may conditions as the President may determine
Representatives, be established 2. Agencies under the Office of the President
except to the by law
extent reserved Offices under the chairmanship of the
to the people by President
the Those under the supervision and control of
constitutional the President
provision on Those under the administrative supervision
initiative and of the Office of the President
referendum Those attached to it for policy and proper
Note: The powers expressly vested in any branch of coordination
the government shall not be exercised by, nor Those that are not placed by law or order
delegated to, any other branch of the government, creating them under any special department
except to the extent authorized by the Constitution
2. Special bodies or agencies Note: The President shall have the continuing authority to
Three independent Constitutional reorganize the administrative structure of the Office of the
Commissions President:
Shall exercise the powers and functions 1. Restructure the internal organization of the Office
conferred upon them by the Constitution of the President Proper by abolishing,
and the law

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consolidating, or merging units thereof or DEPARTMENT PROPER


transferring functions from one unit to another Shall include the Office of the Secretary and
2. Transfer any function under the Office of the the staff units directly under it
President to any department or agency as well as OFFICE OF THE SECRETARY
transfer functions to the Office of the President Shall consist of the Secretary and the
from other departments and agencies Undersecretary/Undersecretaries, together
3. Transfer agency under the Office of the President with their personnel in their immediate
to any other department or agency as well as offices
transfer agencies to the Office of the President Whenever necessary, Assistant Secretary
from other departments or agencies position or positions may be created to form
part of the Department Proper
Organization of Departments MAJOR STAFF UNITS OF EACH DEPARTMENT
1. Planning Service
Department 2. Financial and Management Service
Refers to an executive department created by law 3. Administrative Service
Includes any instrumentality having assigned or 4. Technical and Legal Services (when
assigned the rank of a department, regardless of necessary)
the name or designation BUREAUS
Each department shall have jurisdiction over
Instrumentality bureaus, offices, regulatory agencies, and
Refers to an agency of the National Government, government corporations assigned to it
not integrated with the department framework OFFICES AND AGENCIES
vested with special functions or jurisdiction by law, The President, by EO, assign offices and
endowed with some if not all corporate powers and agencies not otherwise assigned by law to
enjoy operational autonomy, usually through a any department or indicate to which
charter department a government corporation or
board may be attached
1. Number, purpose, and decentralization Office Agency
Executive branch shall have departments as are Refers, within the Refers to any of the
necessary for the functional distribution of the framework of various units of the
work of the President governmental government,
Bureaus and offices under each Department shall organization, to any including a
be grouped primarily on the basis of major major functional unit department, bureau,
functions to achieve simplicity, economy, and of a department or office,
efficiency in government operations and minimize bureau including instrumentality or
duplication and overlapping of activities regional offices GOCC or a local
The functions of the different departments shall It may also refer to government
be decentralized in order to reduce red tape, free any position held or
central officials from administrative details occupied by
concerning field operations, and relieve them individual persons
from unnecessary involvement in routine and
local matters

2. Department proper

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Secretary, Undersecretaries, and Assistant


Secretaries Organization of Bureaus
SECRETARY
Bureau
The authority and responsibility for the exercise of Any principal subdivision or unit of any department
the mandate of the department and for the discharge It shall include any principal subdivision or unit of
of its powers and functions shall be vested in the any instrumentality given or assigned the rank of
Secretary who shall have supervision and control of bureau, regardless of actual name or designation,
the Department as in the case of department-wide regional offices
UNDERSECRETARY A Bureau is any principal subdivision of the
department performing a single major function or
Shall advise and assist the Secretary in the closely related functions
formulation and implementation of Headed by a Director who may have one or more
department objectives and policies Assistant Directors
Shall temporarily discharge the duties of the
Secretary in the latter’s absence or inability Powers and duties of heads of bureaus or offices
to discharge his duties for any cause or in 1. The head of bureau or office shall be its chief
case of vacancy of said office executive officer. He shall exercise overall authority
ASSISTANT SECRETARY and enforce all laws and regulations pertaining to it
2. He shall appoint personnel to all positions in his
Shall perform such duties and functions as may be bureau or office
provided law or assigned to him by the Secretary 3. He shall have the authority to disciple employees in
DEPARTMENT SERVICES accordance with the Civil Service Law
Planning 4. He may designate the assistant head to act as chief
Planning Service Programming of any division or unit
Project development 5. He shall prescribe the form and fix the amount of
Assist Secretary on all bonds executed by private parties to the
Financial and budgetary, financial, government under the laws pertaining to his
Management Service and management bureau or office. He shall retain possession of the
matters bond.
Personnel legal 6. He shall prescribe forms and issue circulars or
assistance orders. Penalties shall not be prescribed in any
Information, records circular or order for its violation, except as
Delivery and receipt expressly authorized by law
of correspondence 7. He is authorized to issue orders regarding the
Administrative Service Supplies and administration of its internal affairs
equipment
Collections and
disbursement Staff Bureau Line Bureau
Security and Shall primarily Directly implement
custodial work perform policy, programs adopted
Technical staff program pursuant to
activities which development, and department programs
Technical Service cannot be allocated advisory functions and policies
to the three other Staff Bureau Line Bureau
services or to the Director Director
bureaus 1. Advise and assist 1. Exercise
Where the the Office of the supervision and
operations of the Secretary on control over all
department involve matters divisions and
substantial legal pertaining to the other units
work, the Bureau’s area of including regional
Legal Service Administrative specialization offices
Service shall not 2. Provide 2. Establish policies
have a Legal consultative and and standards for
Division advisory services the operations of
Shall provide legal to the regional the bureau
advice to the offices of the 3. Promulgate rules
department department and regulations
Where workload of 3. Develop plans, 4. Other duties
department does programs,
not warrant a Legal operating
Service, there shall standards, and
be one or more legal administrative
assistants techniques
4. Other duties

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2.
Provide service to
Organization of Field Offices people in area
Functions of a 3. Coordinate with
Regional Offices Regional Office regional offices of
They shall be established according to law other departments,
defining field service areas. bureaus, and
Provincial and district offices may be agencies in the area
established only by law whenever necessary 4. Coordinate with
Regional Director LGUs in the area
who may be 5. Perform other
assisted by 1 functions
Assistant Regional Note: District offices may be established only in
Director cases of clear necessity
Administration The Regional
Director shall be Definition of administrative relationship
responsible for 1. Supervision and control
department or a. Act directly whenever a specific function is
agency functions entrusted by law or regulation to a
performed in the subordinate
region under his b. Direct the performance of a duty and
jurisdiction restrain the commission of acts
Whenever the c. Review, approve, reverse, or modify acts
function or activity and decisions of subordinate officials or
of a department or units
agency requires d. Determine priorities in the execution of
central or inter- plans and programs
Supervision regional action, the e. Prescribe standards, guidelines, plans, and
function may be programs
performed by the
regional offices
under the
supervision and 2. Administrative supervision
control of the a. It shall govern the administrative
department proper relationship between a department or its
or line bureau equivalent and regulatory agency or other
concerned agencies
Staff bureau or i. To generally oversee operations of
division shall such agencies
perform primarily ii. To require the submission of
advisory or auxiliary reports and cause conduct of
functions and management audit
exercise in behalf of iii. To take such action for the proper
the department or performance of official functions
agency functional including rectification of violations
supervision over the iv. To review and pass upon budget
regional offices proposals but may not add to them

Regional offices b. Authority shall not extend to:


organized on a i. Appointments and other personnel
department-wide actions in accordance with the
basis shall have decentralization of personnel
units or personnel in functions
Organization which the functional ii. Contracts entered into by the
areas of the staff agency
bureaus and iii. The power to review, reverse,
services in the revise, or modify decisions of
department shall be regulatory agencies
represented
Related functions of 3. Attachment
regional units shall a. This refers to the lateral relationship
be consolidated between the department or its equivalent
1. Implement laws, and the attached agency or corporation
policies, plans, for the purposes of policy and program
programs, rules and coordination. The coordination may be
regulations accomplished by:

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i. Having the department Note: The Secretary’s authority shall not apply to chartered
represented in the governing institutions or GOCCs attached to the department
board of the attached agency or
corporation, either as chairman or Delegation of authority
as a member, with or without 1. Delegated authority shall be to the extent
rights, if this is permitted by the necessary for the effective implementation of
charter programs
ii. Having the attached corporation or 2. The delegation shall be in writing.
agency comply with a system of
periodic reporting Line bureau authority
iii. Having the department or its 1. Line bureaus shall exercise supervision and control
equivalent provide general policies over regional and field offices
through its representative board 2. The regional and other field offices shall constitute
the operating arms of the bureau concerned for the
b. Matters of day-to-day administration or all direct implementations of the programs
those pertaining to internal operations
shall be left to the discretion of the Relationship of government-owned or –controlled
executive officer of the agency or corporations to the Department
corporation
c. Government owned or controlled GOCCs
corporations attached to a department Any agency organized as a stock or non-stock
shall submit to the Secretary concerned corporation, vested with functions relating to public
their audited financial statements within needs whether governmental or proprietary in
60 days after the close of the fiscal year. nature, and owned by the government wholly or,
d. Pending submission of the required where applicable as in the case of stock
financial statements, the corporation shall corporations, to the extent of at least 50% capital
continue to operate on the basis of the stock.
preceding year’s budget until the financial They shall be attached to the appropriate
statements shall have been submitted. department with which they have allied functions
At least 1/3 of the members of the Boards of such
Powers and functions of the Department Secretary corporations should either be a Secretary or
1. Advise the President in issuing executive orders Undersecretary, or Assistant Secretary
and other issuances
2. Establish policies and standards for the operation Note: During their tenure, the President, VP, members of
of the department the cabinet, and their deputies and assistants (i.e.,
3. Promulgate rules and regulations undersecretaries and assistant secretaries) are prohibited,
4. Promulgate administrative issuances. These unless otherwise provided in the Constitution itself, from
issuances shall not prescribe penalties for their holding any other office or employment.
violation, except when expressly authorized by law
5. Exercise disciplinary powers over officers and Relationship of regulatory agencies to the
employees including their investigation and the Department
designation of a committee or officer to conduct
such investigation Regulatory agency
6. Appoint all officers and employees of the Refers to any agency expressly vested with jurisdiction to
Department except those whose appointments are regulate, administer, or adjudicate matters affecting
vested in the President or in some other appointing substantial rights and interest of private persons
authority. 1. It shall be subject to the administrative supervision
7. Exercise jurisdiction over all bureaus, offices, of the department under which they are placed
agencies and corporations under the Department 2. The heads of regulatory agencies shall submit
8. Delegate authority to officers annually their budgets and work plans which shall
9. Perform other functions be the basis of their day to day operations
3. The regulatory agencies may avail themselves of
Authority of Department Secretary the common auxiliary and management services of
Shall have supervision and control over all bureaus, offices, the department
and agencies under him, subject to the following guidelines:
1. Initiative of freedom of action on the part of Mandates of the different Departments
subordinate units shall be encouraged Department Subject
2. With respect to functions involving discretion or Department of Foreign Field of foreign relations
expertise vested by the law upon a subordinate Affairs
agency, control shall be exercised in accordance Department of Fiscal policies
with said law Finance
3. With respect to any regulatory function of an Department of Justice Law agency as counsel
agency subject to department control, the and prosecution arm
authority of the department shall be governed by
Agricultural
the provisions of the Code.
development

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Department of Policy framework for


Agriculture domestic and
export-oriented
business enterprises
Department of Public State’s engineering Chapter 3
Works and Highways and construction Powers and Functions of Administrative Agencies
arm
Infrastructure A. In General
facilities
Department of Educational institutions Meaning of powers and functions
Education, Culture, Function Power
and Sports That which one is bound Refers to the means by
Employment or which it is one’s which a function is
Department of Labor opportunities business to do. fulfilled.
and Employment Worker’s welfare “Function” denotes a
Employment broader field of activities
relations than “power”
National peace and Both are interchangeable
Department of security
National Defense Social and economic Source of powers
development Do not always come from a single source
Department of Health Health services Constitution
Department of Trade Trade, industry, and Statutes under which administrative agencies claim
and Industry investments to act
Note: Failure to exercise powers granted to administrative
Department of National agrarian reform
agencies does not forfeit or extinguish them.
Agrarian Reform program
Local governments
Scope of powers
Department of Autonomy,
1. Express and implied powers
Interior and Local decentralization
The jurisdiction and powers of
Government Community
administrative agencies are measured and
empowerment
limited by the Constitution or law creating
Develop tourism as a
them, to those conferred expressly or by
Department of major socio-economic
necessary or fair implication.
Tourism activity to generate
Statutes conferring powers on
foreign currency and
administrative agencies must be liberally
employment
construed to enable them to discharge their
Department of Ecological balance and
assigned duties in accordance with the
Environment and quality of environment
legislative purpose.
Natural Resources
While it is the fundamental rule that an
Department of Transportation and administrative agency has only such powers
Transportation and communication services as are expressly granted to it by law, it is
Communications likewise the rule that it has also such
Care for physically powers as are necessarily implied in the
and mentally exercise of its express powers.
Department of Social handicapped and Implied powers are those which are
Welfare and socially disabled necessarily included in, and are, therefore,
Development constituents of a lesser degree than the powers granted.
Social welfare It cannot extend to other matters not
concerns embraced therein, nor are not incidental
Department of Budget National budget thereto.
and Management
Department of Science Scientific and 2. Inherent powers
and Technology technological activities An administrative agency has no inherent
Department of Energy Energy and power powers, although implied powers may
sometimes be spoken of as “inherent.”

3. Quasi-judicial powers
Unless expressly empowered,
administrative agencies are bereft of quasi-
judicial powers.
The jurisdiction of administrative authorities
is dependent entirely upon the provisions of
the statute reposing the power in them;
they cannot confer it upon themselves.

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That the exercise of power will most the Decree. Rather, it merely provides for the withdrawal of
effectively prevent or stop specific the State’s waiver of its right to punish said colorum
violations of law is no excuse for a deviation operators for their illegal acts. In other words, the cited
from this rule. section declares when the period of moratorium suspending
Administrative agencies are tribunals of the relentless drive to eliminate illegal operators shall end.
limited jurisdiction and as such can exercise It is a settled principle of law that in determining whether a
only those powers which are specifically board or commission has a certain power, the authority
granted to them by their enabling statutes given should be liberally construed in the light of the
Administrative agencies have in their favor purposes for which it was created and that which is
the presumption that they have regularly incidentally necessary to a full implementation of the
performed their official functions legislative intent should be upheld as being germane to the
law. Necessarily, too, where the end is required, the
Illustrative Cases appropriate means are deemed given.

Makati Stock Exchange, Inc. v. SEC (14 SCRA 620 Nature of powers
[1965]) 1. Jurisdiction limited
Facts: SEC prohibits double listing of stock securities in In general, the jurisdiction of
stock exchanges. The SEC in its resolution, denied the administrative officers and agencies is
Makati Stock Exchange permission to operate a stock special and limited
exchange unless it agreed not to list for trading on its They possess only such powers and
board, securities, already listed in the Manila Stock authority as have been specifically
Exchange. Makati Stock Exchange contends that the conferred upon them and those as may be
Commission has no power to impose it. necessarily implied in the exercise thereof
2. Powers within their jurisdiction broad
Held: The test is not whether the Act forbids the The powers conferred on them must be
Commission from imposing a prohibition but whether it commensurate with the duties to be
empowers the Commission to prohibit (Test for determining performed and the purposes to be lawfully
existence of authority). The Commission possesses no effected
power to impose the condition of the rule which results in Powers of particular administrative bodies
discrimination and violation of constitutional rights. have been held broad and plenary within
their fields
Radio Communications of the Phil., Inc., v. Board of Persons dealing with administrative
Communications (80 SCRA 471 [1977]) officers or agencies must take notice of
Facts: Board of Communications imposed fine for injury their authority to act, and are charged
caused by failure of communications company to transmit with knowledge of any and all limitations
telegrams. Two complaints were filed against RCPI with the on their power.
Board of Communications for damages for failure of
complainant to receive a telegram sent to them informing
him of the death of his wife, and the other complainant, of 3. Powers subject to the Constitution, applicable
the death of his father. The Board, after hearing, imposed a law, or administrative regulation
disciplinary fine against RCPI. As successor-in-interest of A government agency must respect the
the Public Service Commission, the Board of presumption of constitutionality and
Communications exercises the same powers, jurisdiction, legality to which statutes and
and functions as those provided for in the Public Service Act administrative regulations are entitled
for the Public Service Commission, one of which is to issue until such statute or regulation is repealed
certificates of public convenience. or amended, or until set aside in an
appropriate case by a competent court,
Held: (Board without jurisdiction over the cases). and ultimately by the SC.
Administrative agencies only exercise such powers as are It is not authorized to substitute its own
expressly or by necessary implication conferred on them by judgment for any applicable law or
law. They can only adjudicate matters coming within their administrative regulation, at least not
jurisdiction. The charge does not relate to the management before such law or regulation is set aside
of the facilities and system of transmission of message by by the authorized agency of the
petitioner in accordance with its certificate of public government.
convenience. The proper forum for them to ventilate their
grievances for possible recovery of damages against
petitioner should be in the courts and not in the respondent
Board of Communications. What constitutes administrative power or
administrative function
Matienzo v. Abellera (162 SCRA 11 [1988])
Facts: The Board of Transportation (BOT) granted Administrative power/Administrative function
provisional permits for the operation of “excess taxicab It is of indefinite connotation embracing in a loose
units” allegedly “despite the lapse of its power to do so sense some legislative, executive, and judicial
under the law. prerogatives.
Held: There is nothing in Section 4 to suggest the
expiration of such powers six months after promulgation of

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Referring to the executive machinery of the


government and the performance by that Discretionary and ministerial powers
machinery of governmental acts. Discretionary power Ministerial power
It refers to the management actions, The very essence of a One in respect to which
determinations, and orders of executive officials as discretionary power is nothing is left to
they administer the laws and try to make that the person discretion.
government effective exercising it may choose
There is an element of positive action, of which of several courses
supervision and control will be followed.
Those which involve the regulation and control Discretion may be One performed in
over the conduct and affairs of individuals for their defined as the power or response to a duty which
own welfare and the promulgation of rules and right conferred upon has been positively
regulations to better carry out the policy of the them by law of acting imposed by law; the
legislature or such as are devolved upon the officially under certain duty to perform under
administrative agency by the organic law of its circumstances according the conditions specified
existence. to the dictates of their not being dependent
own judgment and upon the officer’s
1. Powers not explicitly legislative, executive, conscience, and not judgment or discretion.
and judicial controlled by the
An administrative power has been said to judgment or conscience
be any power not explicitly allocated in of others
the Constitution, although in its nature, Note: That a necessity may exist for the
legislative, executive, or judicial. ascertainment of the facts or conditions upon the
existence of which the performance of an act
2.Powers involve exercise of judgment and becomes a clear and specific duty, does not operate
discretion to convert a ministerial act into one discretionary or
The power of an administrative agency to judicial in nature. Although an agency has the power
make rules for the future is to determine whether an application complies with
administrative, although legislative in statutory requisites, if it appears beyond doubt that
nature, and the application of the law or the application does so comply, there is no discretion
such rules in particular cases is executive to reject the application.
or administrative in nature
Quasi-judicial bodies must not be too B. Investigatory Powers
dogmatic to restrict themselves to literal
interpretation of words, phrases, and Generally
sentences. 1. Scope
Powers of administrative agencies classified Investigatory or inquisitorial powers
1. Investigatory powers include the power of an administrative
2. Quasi-legislative or body to inspect the records and premises,
rule making powers and investigate the activities of persons or
3. quasi-judicial or entities coming under its jurisdiction, or to
adjudicatory powers require the disclosure of records.
2. As sole powers granted
Regulatory power Some administrative agencies act merely
may be either as investigatory or advisory bodies ->
legislative or judicial exist solely to secure and provided
in nature although in information, and in some cases to make
certain instances a recommendations.
As to nature regulatory action 3. As aid to other powers
evidenced by a rule Other agencies possess their investigative
may still constitute or inquisitorial powers as an aid to other
adjudication powers which they possess, and agencies
The power to conduct use such investigative powers to inform
investigations and the themselves of particular situations to
power to carry out determine whether they should take
provisions of law are further action, such as the determination
essentially executive or adjudication of a particular matter.
or administrative in The power of investigation is a useful ad
nature but the latter or tool in an administrative agency’s
is classified as performance of its rule-making or quasi-
adjudicatory where it judicial functions
involves the exercise Note: Investigation is indispensable to
of judgment and prosecution
discretion
As to degree of 1. Discretionary
subjective choice 2. ministerial

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4. As distinguished from judicial functions It is proper for a commission to recite in


Does not exercise judicial functions and its its order for investigation its duties and
power is limited to investigating the facts powers specifically and to refer to the
and making findings in respect thereto. several legislative acts and sections
Test whether an administrative body is establishing them.
exercising judicial functions or merely 2. Conduct of investigation
investigatory functions: Adjudication Investigations are usually held in private -
signifies the exercise of power and > harmful publicity will not be used
authority to adjudicate upon the rights 3. Inspection and examination
and obligations of the parties before it. Among the investigatory powers conferred
Hence, if the only purpose for upon administrative agencies is the power
investigation is to evaluate evidence for specific purposes to enter premises
submitted before it , and if the agency is and inspect or examine such premises or
not authorized to make a final things or operations therein, particularly
pronouncement affecting the parties, then books and records -> to determine
there is an absence of judicial discretion whether any person has violated any
and judgment. provision of the act being administered or
which may aid in the enforcement of the
Ruperto v. Torres 100 Phil 1098 (1957) act
Facts: (Special civil action by certiorari was instituted 4. Requirements as to accounts, records,
against an administrative agency exercising only reports, or statements
investigatory and advisory powers). A complaint was filed Regulatory bodies have been given the power:
against R charging him with disloyalty to service and To prescribe forms and methods of
violation of his oath of office and acquisition of a big real accounts
estate beyond his income received from the government. A To inspect the books and records
complaint was submitted to the Integrity Board. The Board To require the filing of reports
after hearing found the charges sufficiently established and To answer to specific questions.
recommended that R be reprimanded. -> Agencies have access to for the purpose of
The Integrity Board was created by EO 318, which provides examination, and the right to copy and
that the Board are “to proceed to a thorough and complete documentary evidence of any person being
investigation of any specific case of graft and corruption … investigated
and to submit to the President the record of such 5. Requiring attendance of witnesses, giving of
investigation together with its findings and testimony, and production of evidence
recommendation.” The Integrity Board was superseded by Administrative officers do NOT have
the Presidential Complaints and Action Commission with the inherent power to require the attendance
same powers, functions, and duties as the Integrity board. of witnesses before and to require them to
The first assignment of error made in the appeal is that testify
certiorari does not lie against the Integrity Board as it The power to require production of
exercises only investigatory and advisory powers. documents and other evidence are basic
Held: Board’s jurisdiction is limited to conducting to the power of investigation -> such
investigations and making findings. After an investigation by powers may validly be vested in
the Integrity Board, the officer that ultimately passes upon administrative agencies even for purposes
and adjudicates the rights of the parties is the President, not quasi-judicial.
not the Integrity Board, or its successor, the Presidential An administrative agency may not compel
Complaints and Action Commission. While it is true that the the attendance and testimony of
Integrity Board in performing its duties may exercise what witnesses but that compulsion must be
is known as judicial discretion, just because it evaluates the exerted through judicial process (i.e.
evidence submitted to it such judicial discretion is only for application to a court to enforce obedience
the purpose of evaluation and for the determination of to a subpoena of an administrative
disputed facts. agency).
Not every function wherein judgment and discretion are The power to compel a witness to testify
exercised is a judicial function. The test of a judicial function must be clearly given by statute.
is not the exercise of judicial discretion, but the power and 6. Hearing
authority to adjudicate upon the rights and obligations of While hearings may be held, as a general
the parties before it -> Test of judicial functions. rule, a hearing is NOT a necessary part of
an investigation by an administrative
Scope and extent of powers. agency.
The investigative powers of an administrative agency or A requirement that there be an
official must be exercised within the limits prescribed and investigation carries with it no command
bear a reasonable and legitimate relationship to the general that a quasi-judicial hearing be conducted.
powers granted. 7. Contempt proceedings
1. Initiation of investigation Persons failing to attend, give testimony,
An administrative agency or official may and produce records at an investigative
initiate an investigation on a complaint or proceeding may be punished for contempt
on its own motion. -> may be subject to contempt
proceedings.

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An administrative body, however, cannot book of accounts and other records open to inspection by
exercise its power to punish a person for the members. The petitioners refused.
contempt, in the absence of any statutory Held: The controlling provisions of law may be found in
grant, for such power is inherently judicial Section 17 of the Industrial Peace Act which provides that
in nature. “The members shall be entitled to full and detailed reports
from their officers and representatives of all financial
Carmelo v. Ramos 6 SCRA 836 (1962) transactions… the books of accounts and other records of
Facts: (Committee created by executive order of Mayor of the financial activities of a legitimate labor organization
Manila to investigate anomalies issued subpoenas and shall be open to inspection by any officer or member
demanded that witnesses testify under oath). The Mayor of thereof.” The matter involved demanded exercise by the
Manila issued an executive order a committee to investigate Court of its power of investigation. The matter was deemed
anomalies involving the license inspectors of the office of serious enough by he prosecutor or respondent Court to call
the mayor. He named C as chairman of the committee. It for the exercise of the statutory power of investigation to
appears that the committee issued subpoena to R, a private substantiate the alleged violation so as to assure that the
citizen working as a bookkeeper requiring him to appear in rights and conditions of membership set forth in Section 17
connection with an administrative case but R, on whom the be respected. It cannot be said that such requirement is
subpoenas were duly served, refused to appear. Petitioner C beyond the statutory power conferred. Authority conferred
filed in the CFI of Manila a petition to declare R in contempt. intended to protect the rights of union members. The power
Held: Committee without authority to issue subpoena. The to investigate requires inquiry into existing facts and
delegation by the Mayor of the power to investigate does conditions. It is not for this Court to whittle down the
not imply also the delegation of the power to take testimony authority conferred on administrative agencies to assure the
or evidence of witness whose appearance may be required effective administration of a statute, in this case intended to
by the compulsory process of subpoena. There is no protect the rights of Union members against its officers.
statutory. Mayor has no power to delegate the authority to
committee. Right to counsel in administrative investigations
1. Hearing not part of criminal prosecution
Evangelista v. Jarencio 69 SCRA 99 (1975) A party in an administrative inquiry may
Facts: (Respondent questioned legality of subpoena issued or may not be assisted by counsel,
by an administrative agency charged with the function, irrespective of the nature of the charges
among others, to investigate graft and corruption, where and of the respondent’s capacity to
there was no charge of complaint of violation of law then represent himself
pending). E is head of the PARGO created by EO 4, which No duty rests on such body to furnish the
provides that “the agency is hereby vested with all the person being investigated with counsel.
powers of an investigating committee… including the power In an administrative proceeding, a
to summon witnesses by subpoena duces tecum, administer respondent has the option of engaging the
oaths, take testimony or evidence relevant to the services of counsel or not. This is clear
investigation.” M was issued by a subpoena ad from the Civil Service Act and the
testificandum commanding him to appear as a witness at Administrative Code of 1987,
the office of PARGO to testify. Instead of obeying it, he filed The right to counsel is not always
a petition with the CFI assailing its legality. imperative in administrative investigations
Held: Agency with authority to enforce subpoenas issued. because such inquiries are conducted
Administrative agencies may enforce subpoenas issued in merely to determine whether there are
the course of investigations, whether or not adjudication is facts that merit disciplinary measure
involved, and whether or not probable cause is shown and against erring public officers and
even before the issuance of a complaint. It is enough that employees.
the investigation be for a lawfully authorized purpose. The hearing conducted by the
Authority delegated by statute. When investigative and investigating authority is NOT part of a
accusatory duties are delegated by statute to an criminal prosecution.
administrative body, it too may take steps to inform itself as 2. Exclusionary rule in custodial investigation
to whether there is probable violation of the law. In sum, it not applicable
may be stated that subpoena meets the requirements for The right to counsel attaches only upon
enforcement if the inquiry is: (1) within the authority of the the start of such custodial investigation.
agency, (2) the demand is not too indefinite, and (3) the Therefore, the exclusionary rule under the
information is reasonably relevant. The information sought Bill of Rights applies only to admissions
is reasonably relevant to the investigation. made in a criminal investigation but not to
those made in an administrative
Catura v. CIR 37 SCRA 303 (1971) investigation.
Facts: (Officer of labor union charged with unauthorized
disbursement of union funds refused to deliver an deposit Importance of administrative investigations
certain documents in connection with the court’s The lifeblood of administrative process is the flow
investigation of the charge). A complaint was filed by the of fact, the gathering, the organization, and the
Prosecution Division of the CIR against officers of a labor analysis of evidence.
organization charging them with unauthorized disbursement Investigations are useful not only for rule-making,
of union funds and demanding from them a full detail adjudication, and licensing, but also for
report of all financial transactions of the Union and to make prosecuting, for supervising and directing, for

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determining general policy, and for recommending Binding on the agency and all those dealing with
legislation. the agency

Legislation on the administrative level


C. Rule-Making powers Legislative power – power to make, alter, or repeal
laws for the future
Rules and Orders Rulings
Legislative in character and results in “delegated
regulations
legislation”
Establishes a Orders are Ruling is
“Rule-making” – legislation on the administrative
pattern of actions in frequently
level
conduct which there is used to
Administrative legislation
thereafter to be more of the signify an
Ordinance-making
followed by judicial interpretati
Quasi-legislation
administrative function and on or an
bodies which deal application
Note: the power conferred upon an administrative agency to
Duly made with a of a rule or
issue rules and regulations necessary to carry out its
general rules particular statute to a
functions has been held to be an adequate source of
relative to the present particular
authority to delegate a particular function, unless express
subject on situation, while situation
provision of the statute or by implication, it has been
which the rules and
withheld.
administrative regulations are
agency acts actions in
Limitations on the rule-making power
Administrative which the
1. It may not make rules and regulations which are
opinion as to legislative
inconsistent with the provisions of the Constitution
what a statute element
or a statute, particularly the statute it is
under predominates
administering or which created it, or which are in
construction
derogation of, or defeat, the purpose of a statute
means
2. It may not, by its rules and regulations, amend,
“Regulations may be
alter, modify, supplant, enlarge, or limit the terms
used in the sense of
of the statute.
“rules” or only in the
3. A rule or regulation should be uniform in operation,
sense of
reasonable, and not unfair or discriminatory.
“interpretative
regulations”
Rules, regulations, and orders or rulings
distinguished
Generally

1. Nature
Note: An administrative agency may act in both a legislative
Quasi-legislative - with power to make law
and a judicial capacity. It may decide matters of policy or
Essential legislative functions may not be delegated
determine a rule for future action as well as dispose of a
to administrative agencies, and in this sense,
particular controversy.
administrative agencies have no legislative power
Kinds of rule-making powers/rules and regulations
2. Necessity
1. Rule-making powers
Impracticability of the law-makers to provide
Supplementary or Rule-making by reason
general regulations
detailed legislation of particular delegation
Specialization in legislation has become necessary
of authority
Administrative bodies may implement broad
policies laid down in the statute by “filling in” Rule-making by the
Interpretative construction and
details which the legislative may neither have nor
competence to provide legislation interpretation of a
statute being
3. Conditions administered
The statutory grant of rule-making power to Contingent Legislation Under delegated power,
administrative agencies is a valid exception to the or determination whether a statute shall
rule on non-delegation of legislative power, go into effect
provided two conditions concur: 2. Administrative rules
4. The statute is complete in itself – setting (1) Discretionary or legislative
forth policy to be executed by the agency (2) Interpretative
5. Said statute fixes a standard – mapping (3) Contingent
out the boundaries of the agency’s (4) Procedural
authority to which it must conform (5) Internal – issued by administrative superior
to his subordinates
4. Binding force and effect (6) Penal – those which prescribe criminal
Has the force and effect of a law sanctions

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Legislative rules and regulations of law -> interpret


1. A form of subordinate legislation embody new
Can be issued only in virtue of statutory law
delegation. May be issued May be issued
Accorded the force and effect of law only under as a necessary
Administrative agencies act in a legislative Need for express incident of the
capacity pursuant to a specific delegation express delegation of administration
of a legislative power to implement the delegation law of a regulatory
broad policies laid down in a statute statute
Presence of Statute places No statutory
2. Characteristics statutory specific sanction
There are two identifying characteristics of sanction “sanctions”
legislative rules: behind the
(1) The statute has delegated regulations
power to the agency to adopt authorized
the rule Have the same Since they are
(2) It provides that the rule shall, force and effect administrative
if within the delegated power, as valid findings of law,
have authoritative force. statutes -> they are always
Binding force generally subject to
Interpretative rules and regulations and effect binding on the judicial
1. Resemble judicial adjudication courts and not determination
Administrator’s construction of a statute merely advisory that they are
Anticipates what ultimately must be done erroneous,
by the courts even when
Judicial function rather than a legislative their issuance
function is authorized by
Have validity in judicial proceedings only a statute
to the extent that they correctly construe No vested right can be
the statute acquired on a wrong
Note: It is the statute and NOT the construction of the law
regulation to which the individual must Consequence Such wrong interpretation
conform. of wrong does not place the
2. Entitled to great weight and respect construction government in estoppel to
Administrative rules and regulations have correct or overrule the same
the force of law -> entitled to great Administrative interpretation
weight and respect is at best advisory for it is
Nevertheless, interpretations by an the courts that finally
administrative body of the law or its rules, determine what the law
while they ordinarily control the means
construction of the courts, are not
conclusive. √ Victorias Milling Co. v. SSC [4 SCRA 627 (1962)]
At best advisory for it is the courts that Facts: (Amendatory circular advises employers-members of
finally determine what the law means -> the SSS what, in the of the amendment of the law, they
will be set aside if judicially found should include in determining monthly compensation of
erroneous their employees upon which the social security contributions
Interpretative rulings must always be in of the employees should be based). SSC issued Circular No.
perfect harmony with statutes 22. VMC protested against the circular as contrary to
Administrative agencies cannot amend an previous Circular No. 7. VMC further questioned the validity
act of Congress. of the circular for lack of authority of the SSC to promulgate
In case of discrepancy between the basic it, being a rule or regulation without the approval of the
law and an interpretative or administrative President or for lack of publication in the Official Gazette.
ruling, the basic law prevails Held: When an administrative agency promulgates rules
and regulations, it makes a new law with the force and
Legislative and interpretative rules distinguished effect of a valid law, while when it renders an opinion or
Legislative Interpretative gives a statement of a policy, it merely interprets a pre-
rules rules existing law (administrative interpretation of a law). Rules
It is the SUBSTANCE, not the and regulations when promulgated in pursuance of the
form, which determines the nature procedure or authority conferred upon the administrative
of regulations agency by law, partake of a nature of a statute, and
Product of the Product of compliance therewith may be enforced by a penal sanction
power to create interpretation provided in the law. Rules and regulations are the product
new and of previously of a delegated power to create new or additional legal
Power to additional legal existing laws -> provisions that have the effect of law. Rules and regulations
create a new provisions that merely clarify are generally binding on the courts, and are not merely
law have the effect the law they

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advisory. Administrative interpretation of the law is at best matters of administrative


merely advisory for it is the courts that finally determine detail or of subordinate
what the law means. The circular in question is mere Memorandum Orders or temporary interest
administrative interpretation of the law. it merely which only concern a
circularized the opinion of the Commissioner on how the law particular officer or office
should be construed. of the Government
Acts of the President on
Contingent rules and regulations matters relating to
Contingent legislation internal administration,
Congress may provide that a law shall take effect Memorandum which the President
upon the happening of future specified Circulars desires to bring to the
contingencies leaving to some other person or attention of all or some
body the power to determine when the specified of the offices of the
contingency has arisen. Government
It may delegate a power not legislative which it Acts and commands of
may itself rightfully exercise. General or Special the President in his
The power to ascertain such facts is such power Orders capacity as Commander-
that may be delegated -> there is nothing in-Chief of the AFP
essentially legislative in ascertaining the existence
of acts or conditions as the basis of the taking into
effect of a law. Administrative issuances of Secretaries and heads of
The finding by an administrative authority of the bureaus, offices, or agencies.
existence of conditions defined in a statute under
which its provisions shall become operative comes 1. General classification of issuances -> shall be in
under the head of rule making since it usually the form of circulars or orders
involves judgment, if not discretion. Circulars Orders
What is required in this kind of act is simply in the Refer to issuances Refer to issuances
execution of the act, not in the making of the law prescribing directed to particular
> becomes merely an agent of the legislature in policies, rules and offices, officials, or
ascertaining and declaring the event upon which its regulations, and employees
expressed will is to take effect. procedures concerning specific
promulgated matters including
Procedural rules pursuant to law, assignments, detail
Refers to those describing the method by which the applicable to and transfer of
agency will carry out its appointed functions individuals and personnel
An agency cannot function without rules of organizations
procedure outside the
Government and
Ordinance power of the President designed to
Acts of the President supplement
providing for rules of a provisions of the
general or permanent law or to provide
Executive Orders character in means for carrying
implementation or them out, including
execution of information
constitutional or relating thereto
statutory powers
Acts of the President 2. Numbering system of issuances -> Shall be
which relate to particular properly identified as such and chronologically
Administrative Orders aspects of governmental numbered
operations in pursuance 3. Official logbook -> whenever the performance of
of his duties as an official act is in issue, the date and time record
administrative head in the logbook shall be controlling. Shall be open to
Acts of a President fixing the public for inspection.
a date or declaring a 4. Government-wide application of the classification of
Proclamations status or condition of issuances -> all administrative issuances of a
public moment or general or permanent character shall be compiled,
interest, upon the indexed, and published pursuant to the provisions
existence of which the of the Administrative Code.
operation of a specific
law or regulation is made Practical necessity of the rule-making power
to depend -> shall have It is the inability of legislative bodies to anticipate
the force of an executive all possible detailed situations in respect of any
order relatively complex subject matter, that makes
Acts of the President on subordinate delegated rule-making by

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administrative agency so important and Consistency with law and the Constitution
unavoidable. 1. Administrative rules and regulations must be within
the scope and purview of the statutory authority
Special advantages of the rule-making power granted by the legislature to the administrative
1. Freed from concern with details, the legislature can agency.
concentrate its attention upon the enactment of 2. They must be confined to details for regulating the
the fundamentals of policy, and is thus mode of proceeding to carry into effect the law as
strengthened as the representative organ of it has been enacted.
government.
2. The legislature also has additional time to Tests applied in determining validity of rules.
investigate the manner in which administrative
authorities have concretized and enforced its Determination of validity of rules: Questions to be
policies asked in determining the validity of the agency rule
3. Since rules are more easily amended than statutes, Legislative rule Interpretative rule
it becomes easier to correct mistakes and to meet 1. Whether the rule 1. Whether the rule
changing conditions, if the difficulty concerns relates to the correctly interprets
details rather than basic policy. subject matter on the statute
4. The administrator does not have to choose which power to 2. Whether the rule
between defeating the central purpose of the legislate has been amounts to an
statute by trying to work the unworkable, and delegated attempt to exercise
evading the letter of the law 2. Whether the rule legislative powers
5. The administrator is the one who can, by trial and conforms to the which have not been
error, work out the specific regulations best standards prescribed delegated
calculated to attain the statutory objective. in the delegatory
6. In working out specifics of policy, a bureaucracy is, statute
ideally, subject to political responsibility with 3. Whether the rule is
respect to discretionary matters, and to invalid on
professional responsibility with respect to technical constitutional
matters. grounds, such as
7. If discretion in particular cases is untrammeled, it due process
is more liable to abuse than if statutory generalities
are made more specific and concrete before they Tests applied in determining validity of rules
are applied to individual situations 1. A rule is invalid if it exceeds the authority
8. Interpretative regulations are a means of conferred to it
increasing the certainty of the law
9. Contingent legislation furnishes a means by which 2. A rule is invalid if it conflicts with the
a policy can be blocked out by the legislature, and governing statute
its coming into operation be made dependent upon Example: where a procedural rule
unpredictable future contingencies, such as the attempts to limit a right of appeal granted
action of a foreign government. by a statute, it is void because it in effect
conflicts with the statute
Requisites for validity of administrative rules and Example: where an interpretative rule is
regulations in conflict with the court’s interpretation of
1. The rules and regulations must have been issued the statute, the conclusion of invalidity is
on the authority of law premised on the agency’s interpretation
2. They must not be contrary to law and the as being in conflict with the statute
Constitution
Note: In certain cases, previous notice and hearing or 3. A rule is void if it extends or modifies the
publication may be necessary to satisfy the requirement of statute
due process. √ Example: a civil service rule prohibiting
57-year old persons from employment,
Grant of rule-making powers reinstatement, or re-employment in the
1. By some legislative act -> there must be a law government service because it has no
authorizing administrative bodies to make rules basis in the law itself [Toledo v. CSC, 202
and regulations SCRA 507 (1991)].
Without such authority, an administrative √ Example: A civil service memorandum
rule and regulation is null and void circular limiting to only 1 year extension
2. By implication from the powers expressly granted - service of an employee who has reached
> Does not depend for its existence solely upon the compulsory age of 65 without having
express grant. The authority may be implied from completed 15 years of service because it
the power granted. has no relation or connection with any
An agency may, without specific statutory provision of the law supposed to be
authority, make known its interpretation carried into effect for there is nothing in
of the provision of the statute it the law which would serve as the basis for
administers providing the allowable extension period
to only 1 year instead of such period to

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complete the 15 year service requirement Philippine Islands. Neither the CIR nor the legislature itself
to be entitled to the age-old pension has any power to discriminate in favor of one province
benefits under the law. The rule is an against another in the production of tobacco or of any other
addition to or an extension of the law, not product of the Islands.
merely a mode of carrying it into effect
[Cena v. CSC, 211 SCRA 179 (1992)] Young v. Rafferty 33 Phil. 276 (1916)
Facts: (Circular letter requires books of account to be kept
4. A rule is void if it has no reasonable in English or Spanish). The Internal Revenue Act authorizes
relationship to the statutory purpose the Collector of Internal Revenue to specify the manner in
Seems unrelated to the policy of the which the proper books of accounts shall be kept. Pursuant
statute, but neither direct conflict with the thereto, the Collector of Internal Revenue issued a circular
statute nor any clear extension of the requiring every merchant and manufacturer to keep a
statutory command can be shown record of his daily sales either in English or in Spanish
If the challenged rule produces language, and providing that any violation of the circular
burdensome and inequitable results, it will be subject the offender to prosecution under the Act.
may be set aside bearing no relationship Held: The keeping of books in any particular language not
to the purpose of the governing statute required by law. The law does not provide nor require that
the books be kept in any particular language.
5. Courts will set aside rules deemed to be
unconstitutional or arbitrary or unreasonable. Sy Man v. Fabros 93 Phil. 1093 (1913)
Rule is invalid if it goes beyond what the Facts: (Memorandum Order of Commissioner of Customs
legislature could authorize requires review by him even of unappealed cases of the
Collector of Customs in seizure cases). A memorandum
Note: Every party subject to administrative regulation order of the Commissioner of Customs provides that, as in
deserves an opportunity to know, through reasonable protest cases, decisions of the Collector of Customs in
regulations promulgated by the agency, of the objective seizure cases, whether appealed or not, are subject to
standards that have to be met. Such rule is integral to due review by the Insular Collector (now Commissioner), and
process, as it protects substantive rights. that pending action by him on such decisions, final disposal
of the goods involved shall not be made. Under the Tariff
Manuel v. General Auditing Office 42 SCRA 660 and Customs Code, if the person aggrieved by the decision
(1976) of the Collector of Customs in any matter (including seizure
Facts: The General Auditing Office, relying on a rule of the cases) does not make an appeal within 15 days after
Civil Service Commission, denied claims of retiree for notification, the decision becomes final as to him.
commutation of his vacation and sick leaves). M applied for Held: No law gives authority to the Commissioner of
retirement and sought commutation of the money value of Customs to review and revise unappealed decisions in
his vacation and sick leaves. The General Auditing Office seizure cases. There is no law giving authority to the
(now COA) ruled that M’s application could not be allowed in Commissioner of Customs to review and revise unappealed
audit. The Revised Administrative Code provides that decision in seizure cases. The logical inference from Section
vacation and sick leaves shall be cumulative, while the Civil 1393 is that the lawmakers did not deem it necessary or
Service Rule provides that leave is not cumulative. advisable to provide for supervisory authority or power of
Held: Administrative rules are binding on courts when valid, revision by the Commissioner and the Department Head in
even when courts are not in agreement with the policy seizure cases. Decisions not appealed within reglementary
stated therein. On the other hand, administrative period become final.
interpretation of the law is at best merely advisory, for it is
the courts that finally what the law means. No lesser Inter-provincial Auto Bus Co. v. CIR 98 Phil. 290
administrative executive office or agency can assert for (1956)
itself a more extensive prerogative. There must be strict Facts: Petitioner is a common carrier engaged in
compliance with the legislative enactment. Its terms must transporting passengers and freight receipts that have been
be followed. issued by the petitioner. He found that some of the stubs
were not preserved for during a period, although the
√ Olsen and Co., Inc. v. Aldanese, 43 Phil. 259 (1922) conductors’ daily reports revealed to him the number of
Facts: (Rule defining proper standard of the quality of receipts for the period. Both the available stubs and the
tobacco limits its application to certain provinces. Act No. daily reports did not state the value of the goods
2613 authorizes the Collector of Internal Revenue to transported thereunder. Pursuant to a regulation issued by
promulgate rules and regulations for the classification, the Department of Finance, petitioner was assessed
marking, and packing of tobacco as may be necessary to documentary stamp tax. The regulation provides that unless
secure leaf tobacco of good quality. Pursuant to said Act, the bill of lading states that the goods are worth P5.00 or
the CIR issued AO 35 which provides that “to be classified less, the value shall be assumed to be more than P5.00 for
as standard, cigar must be manufactured… exclusively the purposes of documentary stamps tax payable.
product of the provinces of Cagayan, Isabela, and Nueva Held: Regulation merely a directive to tax officers, not
Vizcaya…” creating liability. The practical usefulness of the directive
Held: Rules and regulations beyond the scope of enabling becomes evident when account is taken of the fact that tax
Act are void. The rules in question amount to discrimination officers are in no position to witness the issuance of receipts
and class legislation, which even the Legislature would not and check the value of the goods for which they are issued.
have the power to enact. The Act does not provide the limit Regulation is useful, necessary, and practical, and also
as to the place where the tobacco should be grown in the reasonable.

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1. Rules and regulations must bear reasonable


√ Phil. Lawyers’ Assoc. v. Agrava, 105 Phil., 173 relation to the purpose sought to be
(1959) accomplished
Facts: Director of Patents issued a circular requiring an It is invalid if it bears no reasonable
examination before one can practice before the Philippine relationship to the purpose sought to be
Patents Office. Such action by the Director is in accordance accomplished by the rule
with Section 78 of the Patent Law which provides that “the 2. Rules and regulations must be supported by
director, subject to the approval of the Secretary of Justice, good reasons
shall promulgate the necessary rules and regulations, not Reasonable ground -> supported by good
consistent with law, for the conduct of all business in the reasons
Patent Office.” Whether a regulation is reasonable
Held: Appearance before Patent Office involves practice of depends on the character or nature of the
law. The examination requirement was not authorized by conditions to be met or overcome, and the
any law. Had we allowed the Patent Office, in the absence of nature of the subject matter of a rule may
an express and clear provision of law giving the necessary affect its reasonableness.
sanction, to require lawyers to submit and to pass an 3. Rules and regulations must be free from
examination prescribed by it before they are allowed to constitutional infirmities or charge of
practice before said Patent Office, then there would be no arbitrariness
reason why other bureaus may not also require that any A court may set aside rules on the basis of
lawyer practicing before or otherwise, transacting business their unreasonableness, relying on
with them on behalf of client, shall first pass an examination constitutional grounds (i.e. due process)
to qualify. or without specific reliance on
constitutional doctrines but on the bare
√ Philippines Inter-Island Shipping Association of the grounds that they are unreasonable and
Philippines v. CA, 266 SCRA 489 (1997) arbitrary.
Facts: (PPA refused to enforce an EO of the President on Procedural defects may render a rule
the ground that the order would deprive it of its power unreasonable
under its charter to fix pilotage rates). President Marcos A rule although valid when made, may
issued EO 1088, providing for a uniform and modified rates become unreasonable with the passage of
for pilotage services. The EO increased substantially the time and change of conditions as to
rates of the existing pilotage fees previously fixed by the become invalid
PPA. The UHPAP then announced its intention to implement
EO 1088. In response, the PPA issued a Memorandum √ Lupangco v. CA 160 SCRA 848 (1988)
Circular which fixed the pilotage rates lower than those Facts: The PRC, in a resolution, prohibits examinees from
provided in EO 1088. Petitioners contend that EO 1088 was attending review classes, receiving handout materials and
merely an administrative issuance of the President and as tips or the like, three days before the date of the
such, it could be superseded by an order of the PPA. They examination.
argue that to consider EO 1088 a statute would be to Held: Resolution is unreasonable despite its good aim,
deprive the PPA of its power under its charter to fix pilotage which is “to preserve the integrity and purity of the
rates. licensure examinations.” However, its good aim cannot be a
Held: The fixing of rates is essentially a legislative power. cloak to conceal its constitutional infirmities. The resolution
The growing complexity of modern society and the infringes on the examinees’ right to liberty guaranteed by
increased difficulty in administering the laws made the the Constitution. PRC has no authority to dictate on the
creation of administrative agencies and the delegation to reviewees as to how they should prepare themselves for the
them of legislative powers necessary. The orders previously licensure examinations. Resolution also violates the
issued by the PPA were in the nature of subordinate academic freedom of the schools concerned. Unless the
legislation, promulgated in the exercise of delegated power. means or methods of instruction are clearly found to be
As such, these could only by amended or revised by law, as inefficient, impractical, and riddled with corruption, review
the President did by EO 1088 (EO 1088 is in the nature of a schools and centers may not be stopped from helping out
law). It is not an answer to say that EO 1088 should not be their students.
considered a statute because that would imply the Internal rules and regulations.
withdrawal of power from the PPA. What determines
whether an act is a law or an administrative issuance is not Internal rules and regulations
its form but its nature. As the President could delegate the They refer to
rate fixing power to the PPA, so could he exercise it in administrative rules and
specific instances without thereby withdrawing the power regulations issued by a
vested by statute. The power delegated was not withdrawn. Definition superior administrative
or executive officer to his
Requirement of reasonableness subordinates for the
Administrative authorities must not act arbitrarily and proper and efficient
capriciously in the enactment of rules and regulations administration of the
Rules and regulations must be within the scope of the law.
legislative authority granted by the legislature and to Creates no relation
be valid, must be REASONABLE. except between the
official who issues
Object them and the official

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who receives √ People v. Maceren 79 SCRA 450 (1977)


Such orders have for Facts: Regulations penalize electro-fishing in freshwater
their object simply bodies.
the efficient and Held: The power to declare what acts should constitute a
economical criminal offense cannot be delegated. The lawmaking body
administration of the cannot delegate to an executive official the power to declare
affairs of the agency what acts should constitute a criminal offense. It can
Administrative in authorize the issuance of regulations and the imposition of
nature the penalty provided for in the law itself. An administrative
Do no pass beyond agency is without power to enact a criminal statute. While
the limits of the an administrative agency has the right to make rules and
department or agency regulations to carry into effect a law already enacted, the
Nature to which they are power should not be confused with the power to enact a
directed criminal statute. An administrative agency can have only
Create no rights in the administrative or policing powers expressly or by
third persons necessary implication conferred upon it.
Based on and are the
product of a U.S. v. Panlilio 28 Phil. 608 (1914)
relationship in which Facts: Law does not provide penalty for violation of rules
power is their source and regulations issued thereunder.
and obedience, their Held: The orders of the Bureau of Agriculture while they
object may possibly be said to have the force of law, are not
statutes and particularly not penal statutes, and a violation
√ Olsen and Co. v. Rafferty 35 Phil. 520 (1915) of such orders is not a penal offense unless the statute itself
Facts: EO of Governor General addressed to the Collector somewhere makes violation thereof unlawful and penalizes
of Customs and Internal Revenue charged them with the it. What the act penalizes is the violation of any of its
duty of preventing fraudulent export for free duty entry into provisions, and not the violation of any of the rules or
the United States of goods which are not products of the regulations that may be issued thereunder.
Philippines. The Insular of Collector of Customs issued
regulations pursuant to the EO. Petitioners brought an U.S. v. Tupasi Molina 29 Phil. 169 (1914)
action in the SC for mandamus to secure an order directing Facts: Act No. 2169 provides that to be eligible for
respondents to issue a certificate of origin of cigars for examination for the position of a municipal policeman, a
export to the US. candidate must have a requirement to not have a criminal
Held: The EO was nothing more or less than a command record. Pursuant thereto, Defendant signed under oath his
from a superior to an inferior. Disobedience to or deviation application form which required the applicant to swear to
from such an order can be punished only by the power the facts stated therein. However, defendant made false
which issued it and if that power fails to administer the statements in his application.
corrective, then the disobedience goes unpunished. Held: Affidavit was authorized or required by law. There is
Enforcement of order is beyond the court’s power. In that the law of the Philippine Islands which authorizes or
relationship, no third person or official may intervene, not requires the affidavit which is the basis of the charge of
even the courts. An attempt on the part of the courts to perjury in this case. Under the circumstances mentioned in
enforce such orders would result not only in confusion but the Act, if one swears positively that a fact is true which he
also departmental anarchy. does not believe to be true, and it turns out that it is false,
he is guilty of the crime of perjury.
Penal rules and regulations.
They refer to rules and regulations carrying penal or √ People v. Santos 63 Phil. 300 (1936)
criminal sanctions for violation of the same. Facts: Regulation imposing penalty supplies a defect of the
Requisites for validity law by extending it.
1. The law which authorizes the promulgation of rules Held: The provisions in the conditional clause are not
and regulations must itself provide for the contained in the law. The conditional clause in question
imposition of a penalty for their violation supplies a defect of the law, extending it. This is equivalent
2. It must fix or define such penalty to legislating on the matter, a power which has not been
3. The violation for which the rules and regulations delegated to the Secretary of Agriculture. The conditional
impose a penalty must be punishable under the law clause constitutes an exercise of legislative power. Such act
itself constitutes not only an excess of the regulatory power
4. The rules and regulations must be published in the conferred upon the Secretary of Agriculture, but also an
Official Gazette (published in full text) exercise of legislative power which he does not have, and
therefore said conditional clause is null and void and without
Nature of power to prescribe penalties effect.
Prescribing of penalties is a legislative function
However, Congress may validly provide in the law People v. Que Po Lay 94 Phil. 640 (1954)
itself for the imposition of the penalty for violation Facts: (Circular of the Central Bank was not published in
of rules and regulations which it has empowered the Official Gazette). Appellant who was in possession of
administrative agencies to enact. foreign exchange failed to sell the same to the Central Bank
through its agents within one day following the receipt of
such foreign exchange as required by Circular No. 20 of the

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Central Bank in connection with RA 265. Appellant contends require


that Circular No. 20 was not published in the Official Will be held void if
Gazette hence has no force and effect. found to be in conflict
Held: Publication of statutes in the Official Gazette is with statutory
required for their effectivity. It is true that Circular No. 20 of requirements
the CB is not a statute or law but being issued for the
implementation of the law authorizing its issuance, it has Principles of administrative construction
the force and effect of law according to settled 1. Best authority to interpret a rule is the source itself
jurisprudence. People have rights to be informed of contents of the rule
of penal statutes. As a rule, circulars and regulations which 2. Rules and regulations of an administrative agency
prescribe a penalty for its violation should be published are subject to the same principles of construction
before becoming effective, this, on the general principle that as applied to the construction of statutes.
before the public is bound by its contents, especially its 3. The interpretation of an administrative agency of
penal provisions, a law, regulation, or circular must first be its rules and regulations should be given more
published and the people officially and specifically informed weight than the interpretation by that agency of
of said contents and penalties. the law it is merely tasked to administer
(Bagatsing v. Committee on Privatization)
Legal force and effect of administrative rules and 4. It is the intention with which the rule or regulation
regulations. was adopted which is controlling
Administrative rule-making includes the formulation of 5. Purpose thereof may be considered
legally binding legislative regulations and non-binding 6. Give construction thereof which will sustain its
interpretative regulations. validity
7. Where alternative interpretations are possible, the
If valid, have the more reasonable of the two is to be chosen
force and effect of law 8. Where the rule is clear and unambiguous, it does
Binding upon all the not admit of judicial interpretation
Legislative rules and parties as if they had
regulations been written on the Effect of reliance on rules.
original law itself 1. A person who relies in good faith on an agency rule
Receive statutory should be held harmless from loss if that rule is
force upon going into later held invalid or is amended
effect 2. One who has relied on an invalid rule is in
Do not have the force substantially the same position as one who has
of law relied on an unconstitutional statute (no rights are
Validity is subject to vested)
challenges in court 3. Protection is accorded to parties who had relied on
However, an administrative rule that was subsequently
contemporaneous amended or repealed.
construction by
executive officers is Retroactive operation of rules, regulations, and
Interpretative rules entitled to great rulings.
and regulations weight and Whether the rules, regulations, or rulings of an
(including consideration by the administrative agency operate or can be made to
administrative courts operate retroactively depends on the provisions of
construction) Interpretation is not the authorizing statutes.
conclusive and will be An administrative rule or regulation usually will not
ignored if judicially be construed to operate retrospectively where the
found to be erroneous intention to that effect does not appear
At best advisory for it A new rule is not to be applied retroactively if to do
is the courts that so would be unreasonable and inequitable.
finally determine
what the law means Amendment or repeal of administrative rules and
Considered important regulations.
only where the The fact that an administrative rule has been
statute itself is amended does not necessarily mean that the
AMBIGUOUS earlier rule was unreasonable.
Have the effect of law Discretionary with such agency to amend or repeal
Binding on both rules and regulations -> exercise of discretion not
agency and subject to judicial control
respondent parties To be valid, a change in a regulation must be made
Rules prescribing Courts are competent in accordance with statutory procedural
method s of procedure to deter an agency’s requirements
own interpretation of As a general practice, an administrative rule should
its procedural rules not be amended so as to effect a retroactive
where it is felt that change
the ends of justice so

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Administrative agency is not bound by the rule of should not be made subservient to the internal office
res judicata procedure of an administrative body. No justifiable reason
In the case of procedural rules, it is often was shown for a relaxation of the rules. The “win-win”
expeditious for an agency to ignore a certain rule resolution was in arrant violation of the fundamental and
in a particular case and adopt therein a different time-honored principle of finality to administrative
procedure than that contemplated by the agency’s determinations.
rule Separate Opinion (Puno, J.): Suspension of the rules lies
An agency will not be permitted to adopt a special in that authority that promulgated them. It is the President
rule of procedure for the purpose of affecting the as administrative head who is vested by the Administrative
outcome of a particular case Code of 1987 to promulgate rules relating to governmental
operations, including administrative procedure. These rules
√ Hilado v. CIR 100 Phil. 288 (1956) take the form of administrative orders. The President has
Facts: (Secretary of Finance revoked a general circular the power to suspend the effectivity of administrative rules
pursuant to which a taxpayer claimed deductions from his of procedure. There is no reason to withhold the power to
gross income). H filed his income tax return wherein he suspend rules from the President and grant it alone to the
claimed an amount as deductible from his gross income two other branches of government. The suspension by the
pursuant to a circular issued by the CIR. This circular was President of AO 18 was not whimsical. The President also
issued pursuant to certain rules laid down by the Secretary clearly exercised his control power over an alter ego under
of Finance. The new Secretary of Finance, however, through the principles of presidential power of control and qualified
CIR, issued a circular which revoked the previous circular. political agency.
Held: The Secretary of Finance is vested with authority to
revoke, repeal, or abrogate the acts or previous rulings of Formal requirements on the promulgation, etc., of
his predecessors in office because the construction of a rules and regulations.
statute by those administering it is not binding on their Pursuant to the Administrative Code of 1987:
successors if thereafter the latter becomes satisfied that a 1. Every agency shall file with the UP Law Center
different construction should be given. No vested right is three certified copies of every rule adopted by it.
acquired from an erroneous construction of a law. a 2. A permanent register of all rules shall be kept by
regulation that is merely an interpretation of a statute when the issuing agency and shall be open to public
once determined to have been erroneous becomes a nullity. inspection
3. Each rule shall become effective 15 days from the
√ Ollada v. Secretary of Finance 109 Phil. 1072 date of filing unless a different date is fixed by law.
(1960) 4. The UP Law Center shall publish a monthly bulletin
Facts: Secretary of Finance expressly authorized the non- setting forth the text of rules filed with it during
retroactivity of regulation which amended a previous one. the preceding quarter
Held: Resolution was not unreasonable or arbitrary. Surely, 5. The UP Law Center shall keep an up to date
no one is better qualified to interpret the intent behind codification of rules
these revenue regulations than the authority that issued 6. The UP Law Center may omit from the bulletin or
them. The regulations issued by the Secretary of Finance codification of any rule if its publication would be
are subject to amendment or revocation by his successor. unduly cumbersome or expensive. Bulletin shall
The Secretary, may, at any time, amend or revoke any of contain a notice stating the general subject matter
the regulations issued by him so long as it is in consonance of the omitted rule.
with the statute. The Secretary, under the law, may, 7. Every rule establishing an offense or defining an
therefore, change or repeal any of the regulations issued by act which, pursuant to law, is punishable as a
him as he may see fit. crime or subject to a penalty shall in all case be
published in full text.
√ Fortich v. Corona 298 SCRA 685 (1998) 8. The UP Law Center shall distribute the bulletin and
Facts: (The Office of the President modified its decision codified rules to OP, Congress, appellate courts,
which had already become final and executory). DAR filed and National Library.
its motion for reconsideration of the OP decision beyond the 9. The courts shall take judicial notice of the certified
reglementary period. DAR again filed a second motion for copy of each rule duly filed or as published in the
reconsideration, which was prohibited by the rules and bulletin or the codified rules.
despite the OP decision being declared final and executory. 10. If not otherwise required by law, an agency shall
The second motion for reconsideration was entertained by publish or circulate notices of proposed rules and
Deputy Executive Secretary and on the basis thereof, issued afford interested parties the opportunity to submit
a “win-win” resolution substantially modifying the OP their views prior to the adoption of any rule.
decision that had become final and executory. DAR 11. In the fixing of rates, no rule or final order shall be
contends that its procedure made it impossible for them to valid unless the proposed rates shall have been
file the motion for reconsideration on time, since said published in a newspaper of general circulation at
decision had to be referred to different departments of the least 2 weeks before the first hearing thereon.
DAR.
Held: The late filing of the DAR of its motion for Requirements of notice and hearing or publication.
reconsideration is not excusable. DAR must not disregard Prior notice and hearing are not required since
the reglementary period fixed by law, rule, or regulation. there is no determination of past events or facts
DAR must develop a system of procedure that would enable that have to be established or ascertained
it to comply with the reglementary period for filing the said
motion. For, the rules relating to reglementary period

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Prior notice and hearing are not essential to the Eastern Shipping Lines v. CA 291 SCRA 485 (1998)
validity of rules and regulations promulgated to Facts: Respondent filed a complaint against petitioner for
govern future conduct. non-payment of pilotage services. Petitioner assails EO
1088 providing for uniform and modified rates for pilotage
1. Where rules do not apply to named or services upon which respondent basis its claim, for the
specified parties reason that EO 1088 constitutes undue delegation of
Where a function, legislative in nature, legislative powers. Petitioner insists that it should pay
rather than a judicial function, is pilotage fees in accordance with the memorandum circulars
delegated to an administrative agency, issued by the PPA, the administrative body vested with the
the legislature need not require a notice power to regulate and prescribe pilotage fees.
or hearing as a prerequisite to the act of Held: EO 1088 is valid. PPA circulars are inconsistent with
the administrative agency, since the EO 1088. Administrative or executive acts, orders, and
legislature could itself have performed regulations shall be valid only when they are not contrary to
that act without notice or hearing, the laws or the Constitution. The conclusive effect of
particularly where the rules are of a administrative construction is not absolute. Action of an
general application, or procedural in administrative agency may be disturbed or set aside by the
nature, or are no more than judicial department if there is an error of law, a grave abuse
administrative interpretation. of power, or lack of jurisdiction, or grave abuse of discretion
2. Where rules apply to named or specified clearly conflicting with either the letter or spirit of the law. it
parties is axiomatic that an administrative agency has no discretion
Where such rules apply exclusively to a whether to implement the law or not. Its duty is to enforce
particular party and are predicated upon it.
a finding of fact, the agency in making
such finding of fact performs a function D. Adjudicatory Powers
partaking of a quasi-judicial character,
the valid exercise of which demands a Generally.
previous notice and hearing to satisfy the 1. Involve specific parties
requirement of due process. Involves determination of the rights,
3. Where requirements prescribed by law duties, and obligations of specific
Under the Administrative Code of 1987, individuals as contrasted with rule-making
notices of proposed rules must be given powers which involve persons generally
when required by law, otherwise such and operate prospectively.
notices shall be circulated as far as 2. Involve judicial function exercised by a
practicable to afford interested parties person other than a judge
the opportunity to submit their views “Quasi-judicial” and “adjudicatory” are
prior to the adoption of any rule. synonymous or correlative, but not all
4. Where rules have the force and effect of law. determinations by an administrative
Issuances by an administrative agency to agency are judicial in nature or quasi-
enforce or implement an existing law judicial.
have the force and effect of law. Where a power rests in judgment or
Publication is required as a condition discretion, so that it is of judicial nature of
precedent to the effectivity of a law to character, but does not involve the
inform the public of the contents of the exercise of functions of a judge, or is
law or rules and regulations before their conferred upon an officer other than a
rights and interests are affected by the judicial officer, it is deemed quasi-judicial.
same. Quasi-judicial function is a term which
Subsequent publication thereof will not applies to the actions of public
cure the defect. administrative officers or bodies that are
Prior publication cannot be dispensed required to investigate facts, or ascertain
with for the reason that such omission the existence of facts, hold hearings, and
would offend due process insofar as it draw conclusions from them, as a basis
would deny the public knowledge of the for their official action and to exercise
laws that are supposed to govern it. discretion of a judicial nature.
The publication must be full or it is no 3. Involve exercise of judicial power
publication at all since its purpose is to conveniently styled “quasi-judicial”
inform the public of the contents thereof. The use of such terms is simply a
5. Where regulations merely interpretative and convenient way of approving the exercise
those internal in nature of a judicial power by an administrative
Interpretative regulations and those agency.
merely internal in nature, that is, The terms used to designate the character
regulating only the personnel of the of particular proceedings or powers, the
administrative agency and not the public, exercise of which must be accompanied
need not be published. with certain formalities and safeguards
characteristics of the judicial process.
Administrative agencies are not
considered courts. They are neither part

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of the judicial system nor are they Except for constitutional officials who can
deemed judicial tribunals. trace their competence to act to the
fundamental law itself, a public official
Distinguished from judicial power. must locate in the statute relied upon a
Judicial power grant of power before he can exercise it.
Power to hear, try, and determine all sorts of cases 5. General policy to uphold exercise
at law and equity which are brought before the It is the general policy of the courts to
courts sustain the decision of administrative
Power and authority to make a final, rather than an authorities not only on the basis of the
initial determination of what the law is and doctrine of separation of powers but also
adjudicate the respective rights of the contending for their presumed knowledgeability.
parties. A court cannot compel an agency to do a
particular act or to enjoin such an act
1. Where function primarily administrative which is within the latter’s prerogative
Where the function of an agency is except when in the exercise of its
primarily administrative, and the power to authority, it gravely abuses or exceeds its
hear and determine controversies is jurisdiction.
granted as an incident to the
administrative duty, the power is √ Philex Mining Corp. v. Zaldivia 43 SCRA 479 (1972)
administrative. Such a power is variously Facts: Mining controversy involves contractual relations
held to be judicial but validly conferred to between the litigants.
be quasi-judicial. Held: The issues involves pure questions of law. There is no
2. Where function primarily to decide question question of fact nor matters requiring technological
of legal rights knowledge and experience. Judicial power is not conferred
Where the duty is primarily to decide upon Director of Mines. The controversies to be submitted
questions of legal rights between private and resolved by the Director of Mines under the Mining Law
parties, such decision being the primary refer only to the overlapping claims and administrative
object and not merely incidental to matters incidental thereto. The question presented is
regulation or some other administrative judicial in nature, not a mining conflict, and it is immaterial
function, the function is judicial. whether the mining claim in question has or has not passed
out of administrative control of the Director of Mines.
Extent of judicial or quasi-judicial powers of
administrative agencies. √ Antipolo Realty Corp. v. NHA 153 SCRA 399 (1987)
1. Jurisdiction limited Facts: The NHA reinstated a contract to sell which was
Limited delegation of judicial or quasi- rescinded by the subdivision owner for nonpayment of
judicial authority to administrative monthly installments.
agencies is well-recognized in our Held: NHA was legally empowered to decide on the matter
jurisdiction because the need for special at issue under PD 957. A statute may vest exclusive original
competence and experience has been jurisdiction in an administrative agency over certain
recognized as essential in the resolution of disputes and controversies falling within the agency’s
questions of specialized character and special expertise. The very definition of an administrative
because of the companion recognition that agency includes its being vested with quasi-judicial powers.
the dockets of our regular courts have Under the sense-making and expeditious doctrine of
remained crowded and clogged. primary jurisdiction, the courts cannot and will not
2. Extent of powers depends largely on enabling determine a controversy involving a question which is within
act the jurisdiction of an administrative tribunal where the
Extent to which administrative agency question demands the exercise of sound administrative
may exercise such powers depend largely discretion requiring special knowledge to determine
on the provisions of the statute creating technical and intricate matters of fact.
or empowering such agency.
3. Split jurisdiction not favored √ Guerzon v. CA 164 SCRA 182 (1988)
The rule is that when an administrative Facts: Agency (Bureau of Energy Utilization) charged with
body is conferred quasi-judicial functions, regulating the operations and trade practices of the
all controversies relating to the subject petroleum industry ordered a service station operator-
matter pertaining to its specialization are lessee to vacate the service station and to turn over its
deemed to be included within its possession to the oil company lessor upon the expiration of
jurisdiction. Split jurisdiction is not the dealership and lease agreements.
favored. Held: BEU was not empowered to issue order to vacate.
4. Grant of particular power must be in the law There is nothing in PD 1206 that would suggest that
itself jurisdiction has been granted to the BEU. It is a
Where there is nothing in the law that fundamental rule that an administrative agency has only
would suggest that a particular power has such powers as are expressly granted to it by law and those
been granted, such as the power to decide that are necessarily implied in the exercise thereof. BEU’s
contractual disputes, the same cannot be jurisdiction is limited. It has no power to decide contractual
exercised. disputes between gasoline dealers and oil companies.

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Distinguished from legislative power or rule-making. requirement of reasonableness (rates


Adjudication Rule-making must not be too low or too high)
Part of administrative Part of the 3. Miscellaneous acts
process that resembles a administrative process Adjudicatory powers have also been
court’s decision of a case that resembles a classified as administrative on the one
legislature’s enactment hand, or as judicial in nature or quasi-
of statutes judicial on the other hand.
Investigates, declares, Looks to the future and Examples of acts that are administrative
and enforces liabilities as changes existing or not judicial are: deportation of alien,
they sand on present or conditions by making a passing upon a petition to call for an
past facts and under new rule to be applied election.
laws supposed to exist thereafter to all or some
(element of of those subject thereto Classification of adjudicatory powers.
retrospection) (element of futurity) Characterized by the
Applies to named Lays down general rules grant or denial of
persons or to specific that apply to or affect permit or
situations (element of classes of persons or authorization.
particularity) situations. Rule making E.g. grant or denial of
involves issuance of 1. Enabling powers licenses to engage in
Note: Adjudication as rules which are business or
used in Administrative addressed to indicated occupation
Code of 1987 means an but unnamed and
agency process for the unspecified persons or Note: rule-making
formulation of a final situations (element of authority is also
order. generality exercised by licensing
bodies
Note: Even though action is evidenced by a rule, it may still Illustrated by
constitute adjudication. Regulatory or rule-making may corrective powers of
merge into determinative or adjudicative powers. public utility
commissions
Nature of particular acts. Powers of assessment
1. Licensing, enabling, or approving 2. Directing powers under the revenue
Not judicial but is administrative or quasi- laws
judicial Reparations under
Depends upon the ascertainment of the public utility laws
existence of certain past or present facts Powers of abstract
upon which a decision is to be made and determination such as
rights and liabilities determined. definition valuation
2. Fixing of rates and charges and fact-finding
May be either a legislative or an Authority to exempt
adjudicative function from or relax a
Fixing of rates and charges general prohibition
Legislative Quasi-judicial Authority to relieve
When meant to Apply exclusively 3. Dispensing powers from an affirmative
apply to all to a particular duty
enterprises. party based upon Sanctions a deviation
a finding of fact from a standard (vs.
The giving of prior Prior notice and licensing power that
notice and hearing hearing are sets or assumes a
to the affected essential to the standard)
parties is not a validity of such To apply compulsion
requirement of rates or force against a
due process person or property to
effectuate a legal
Rate fixing calls for a technical purpose without a
examination and a specialized review of judicial warrant to
specific details which the courts are ill- authorize such action.
equipped to enter, hence such matters are 4. Summary powers Involve direct
primarily entrusted to the administrative administrative action
or regulatory authority. taken without notice
Rates must not be non-confiscatory and hearing.
Not exempt from the procedural In the absence of a
requirements of notice and hearing when statutory grant of
prescribed by statute as well as the power, administrative
agencies may not
themselves enforce

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their determinations GR: Congress may not delegate to administrative


Make proper agencies the legislative powers vested in it
5. Equitable powers application of rules of EX: Except when authorized by the Constitution
equity The rule is fixed and unalterable, not depending
E.g. power to appoint upon the existence of an emergency.
a receiver or power to Such delegation will violate not only the doctrine of
issue injunctions separation of powers but also the due process
Determine what is fair guarantee
and equitable
Doctrine of non-delegation not absolute.
1. Delegation to administrative agencies
Doctrine of separation of powers does not
CHAPTER 4 preclude a certain degree of admixture of
SEPARATION OF ADMINISTRATIVE AND OTHER the three powers of government in
POWERS administrative agencies
2. Need for the delegation
(a) Details and questions beyond the capacity
Doctrine of separation of powers. of legislature to determine
It obtains not through express provisions but by
Legislature is incapable of defining
actual division in Constitution the multitudinous details -> the
rule is one of necessity
1. Allocation of governmental powers (b) Matters requiring more specialized
Doctrine declares that governmental
knowledge and expertise possessed by
powers are divided among three administrative agencies
departments of government: legislative,
Specialized in the particular fields
executive, and judicial, precluding one assigned to them, administrative
branch of the government from exercising
bodies can deal with the
or invading the powers of another. problems thereof with more
2. Blending of allocated powers
expertise and dispatch than can
Separation of powers does not mean an be expected from the legislature
entire and complete separation of powers
or the courts
or functions, which would be impracticable 3. Requisites for delegation
and impossible.
(1) The completeness of the statute making the
There may be a certain degree of blending delegation
or admixture of the three powers of
(2) The presence of a sufficient standard
government, particularly in administrative
agencies
Eastern Shipping Lines v. POEA (1988)
3. Exclusive exercise of assigned powers Facts: KS was awarded a sum by the POEA for the
The true meaning of the theory of
death of her husband pursuant to MC No. 2, which
separation of powers is that the powers prescribes a standard contract to be adopted by both
assigned to one department should not be foreign and domestic shipping companies in the hiring
exercised by either of the other of Filipino seamen for overseas employment. Shipowner
departments, and that no department questions the circular for being violative of the principle
ought to possess, directly or indirectly, an of non-delegation.
overruling influence or control over the Held: The circular is valid. The principle of non-
others. delegation of legislative power not violated. Its
provisions are deemed written into every overseas
Doctrine of non-delegation of powers.
employment contract as a postulate of the police power
Corollary of the doctrine of separation of powers of the State. The authority to issue said regulation is
Prohibits the delegation of legislative power
provided for in the law. The national legislature has
Prohibits the vesting of judicial officers with non- found it more necessary to entrust to administrative
judicial functions (and vice versa)
agencies the authority to issue rules to carry out the
Any attempt at such delegation is unconstitutional and general provisions of the statute. This is called the
void
power of subordinate legislation. Broad legislative
What has been delegated cannot be in turn delegated policies are implemented by supplementing regulations
Doctrine rests on the principle that a delegated power
by filling in details which the Congress may not have
constitutes not only a right but a duty to be the opportunity to provide. This is effected by
performed by the delegate by the instrumentality of
supplementary regulations. Sufficient standard is
his own judgment and not through the intervening prescribed in the law. POEA is mandated to protect the
mind of another
rights of overseas Filipino workers.
A further delegation would constitute a negation of
the duty in violation of the trust reposted in the
Delegation to administrative agencies.
delegate mandated to discharge it directly 1. It is power which is essentially or purely legislative
in nature which must be exercised by the
Non-delegation of legislative power. legislature and cannot be delegated

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2. Delegation of power to make the law vs. delegation 11. The rule of non-delegation of legislative power
of authority or discretion as to the execution of a does not apply when permitted by the Constitution
law and in case of delegation to local governments
Delegation: make Delegation:
law execution of law US v. Ang Tang (1923)
Involves discretion Exercised in Facts: The Governor-General was authorized by an act,
as to WHAT the law pursuance of a law - whenever for any cause, conditions arise resulting in
shall be > what can be extraordinary increase in palay, rice, et. al, to issue and
delegated is the promulgate with the consent of the Council of State,
discretion to temporary rules and emergency measures for carrying
determine HOW the out the purpose of the act. Pursuant thereto, the
law may be enforced Governor-general issued a proclamation fixing the price
not WHAT the law of rice and penalizing violation thereof. Ang was
shall be prosecuted for violation of the law for selling a price
Delegation is VOID Delegation is VALID higher than that fixed in the proclamation.
Held: The law is incomplete as a legislation. The
3. The legislature may delegate its authority to make legislature does not undertake to specify or define
findings of fact (fact finding power) under what conditions or for what reasons the
Where delegation to a fact-finding body Governor-General shall issue the proclamation, but
empowers it to create the conditions says that it may be issued for cause and leaves the
which constitute the fact, the delegation is question of what is any cause to the discretion of the
INVALID Governor General. The law does not specify or define
4. The legislature must declare a policy and fix a what such temporary rules or emergency measures are,
standard in enacting a statute conferring or how long such rules shall remain in force. The
discretionary power determination of what acts constitute a criminal offense
But the agency may be authorized to “fill- is essentially a legislative task. The Governor-General,
up the details” cannot, by proclamation, determine what act shall
When the legislature laid down the constitute a crime or not.
fundamentals of a law, it may delegate to
administrative agencies the authority to Compania General De Tabacos v. Board of Public Utility
exercise such legislative power as is Commissioners (1916)
necessary to carry into effect the general Facts: A statute requires every public utility “to furnish
legislative purpose. annually a detailed report of finances and operations in
5. Under the sufficient standard test, there must be such form and containing such matters as the Board,
adequate guidelines or limitations in the law to from time to time, by order, may prescribe. The
map out the boundaries of the delegate authority. authority of the board is based on Act. 2307
6. It is not necessary that the legislature supply empowering it, “after hearing, upon notice, by order in
administrative officials with a specific formula for writing, to require every public utility detailed reports.”
their guidance -> more liberal in permitting grants Held: Authority given was very general. It is clear that
of discretion to administrative agencies the statute authorizes the Board to require detailed
7. The standard to guide an administrative agency in reports from public utilities, leaving the nature of the
the exercise of its rule-making power may be report, et. al., to the exclusive discretion of the Board.
either express or implied. Such a provision does not declare or set out or indicate
Implied -> policy and purpose of statute what information the State requires. No sufficient
8. In case of a delegation of a rate-fixing power, the standard prescribed by the Act. The legislature seems
only standard which the legislature is required to simply to have authorized the Board to require what
prescribe for the guidance of the administrative information the Board wants.
authority is that the rate be reasonable and just.
However, in the absence requirement as People v. Vera (1937)
to reasonableness, this standard may be Facts: C applied for probation under the Probation Act
implied. which shall apply only in those provinces in which the
9. Under the completeness test, a statute must be respective provincial boards have probation officers.
complete in itself so that by appropriate judicial The Act provides that it shall apply only in those
review and control, any action taken pursuant to provinces in which the respective provincial boards
delegated authority may be kept within the defined have provided for the salary of a probation officer at
limits of the authority conferred. the rates not lower than those now provided for
A statute may be complete when the provincial fiscals Said probation officers shall be
subject, the manner, and the extent of its appointed by the Secretary of Justice and shall be
operation are stated in it. subject to the direction of the Probation Office.
The test of completeness has been said to Held: There is no standard or guide fixed by the
be whether the provision is sufficiently Probation Act. The applicability and application of the
definite and certain to enable one to know Probation act are entirely placed in the hands of the
his rights and obligations thereunder provincial boards. The power to ascertain existence of
10. The general rule which requires an express acts or conditions as the basis of the taking into effect
standard to guide the exercise of discretion of of a law may be delegated. The legislature may provide
administrative agencies is subject to exceptions that a law shall take effect upon the happening of

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future specified contingencies leaving to some other motor vehicles shall be registered if not equipped with
person or body the power to determine when the reflectors…”
specified contingency has arisen. However, discretion in Held: It is obvious that the challenged statute is a
the provincial boards is absolute and unlimited hence legislation enacted under the police power to promote
arbitrary. The legislature has not made the operation of public safety. To avoid the taint of unlawful delegation,
the Probation Act contingent upon specified facts or there must be a standard which implies at the very
conditions to be ascertained by the provincial board. It least that the legislature itself determines matters of
leaves the entire operation or non-operation of the law principle and lays down fundamental policy. Thereafter,
upon the provincial boards. While it may be undoubted the executive or administrative office designated may,
that the legislature may suspend a law, or the in pursuance of the above guidelines, promulgate
execution or operation of a law, a law may not be supplemental rules and regulations. The standard could
suspended as to certain individuals only, leaving the be implied from the policy and purpose of the act
law to be enjoyed by others. The suspension must be considered as a whole. In the Reflector Law, clearly the
general, and cannot be made for individual cases or for legislative objective is public safety. All that is required
particular localities. is that the regulation should be germane to the objects
and purposes of the law, that the regulation be not in
Palaez v. Auditor General (1965) contradiction with it but conform to the standards that
Facts: Statute confers on the President authority to the law prescribes.
create municipal corporations. The VP alleges that the
provision in the statute constitutes an undue delegation Echegaray v. Secretary of Justice (1998)
of legislative powers. Facts: Echegaray, a death convict, assails the
Held: The provision in question constitutes an undue constitutionality of RA 8177, the Lethal Injection Law,
delegation of power. Authority to create municipal on the ground that it unduly delegates legislative power
corporations essentially legislative in nature. Municipal to the Secretary of Justice and the Director of Bureau of
corporations are purely creatures of the statute. Corrections.
Whereas, the power to fix such common boundary in Held: There is no undue delegations of legislative
order to avoid or settle conflicts of jurisdiction between powers. The rule is that what has been delegated
adjoining municipalities, may partake of an cannot be delegated. The recognized exceptions to the
administrative nature, involving as it does, the adoption rule are as follows:
of means and ways to carry into effect the law creating 1. Delegation of tariff powers to the President
said municipalities. The provision does not meet the 2. Delegation of emergency powers to the President
requirements for a valid delegation of powers to fix in 3. Delegation to the people at large
the details in the enforcement of a law. It does not 4. Delegation to local governments
enunciate any policy to be carried out or implemented 5. Delegation to administrative bodies
by the President. It is apparent, however, from the
language of this clause, that the phrase “as the public Empowering the Secretary of Justice in conjunction with
welfare may require” qualified, not the clauses the Secretary of Health and the Director of Bureau of
preceding the one just quoted, but only the place to Corrections, to promulgate rules and regulations on the
which the seat of government may be transferred. If subject of lethal injection is a form of delegation of
the validity of the delegation made in Section 68 were legislative authority to administrative bodies. However,
upheld, there would no longer be any legal impediment the Implementing Rules and Regulations suffer serious
to a statutory grant of authority to the President to do flaws. The Secretary of Justice has practically abdicated
anything which, in his opinion may be required by the power to promulgate the manual on the execution
public welfare or public interest. procedure to the Director of the Bureau of Corrections,
by not providing for a mode of review and approval
Alegre v. Collector of Customs (1929) thereof. The Court also finds that the requirement of
Facts: The statute provides for the inspection, grading, confidentiality of the contents of the manual unduly
and bailing of fibers and the creation of the Fiber suppressive. The contents of the manual are matters of
Standardization Board to carry the law into effect. The public concern.
Board is authorized to determine the official standards Dissenting opinion: RA 8177 is void. A careful
for the various commercial grades of Philippine fibers reading will show that it actually authorizes two persons
and each grade shall have the approval of the to promulgate rules and regulations to implement its
Secretary of Agriculture and Natural resources. provisions – the Secretary of Justice and the Director of
Held: No delegation of legislative power involved. The the Bureau of Corrections. The unprecedented act of
Legislature has said that before any hemp is exported delegating the power to make rules to two persons over
from the Philippine islands, it must be inspected, the same subject matter does not have any
graded, and baled, and has created a board for that constitutional warrant. We should lay down the case
purpose and vested it with the power and authority to law that the legislative choice of who shall be the
do the actual work. It is nothing more than a delegation delegate to make the rules and regulations to
of administrative power in the Fiber Board to carry out implement a law must be clear and unequivocal.
the purpose and intent of the law.
Sufficiency of standards.
Edu v. Ericta (1970) 1. Dependent upon certain considerations
Facts: Administrative order implements Reflector Law. Depends upon the nature of the power
The order has a provision on reflectors in effect exercised
reproducing what was set forth in the Act, thus: “no

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Depends upon the nature of the right


restricted by such power [See illustrative cases]
Depends upon whether or not proper
regulation or control requires the vesting Law where standard may be expressed or contained.
of such discretion 1. Standard may be prescribed in the law itself
2. Detailed standard not required However, it need not, in all instances, be
Necessities of modern legislation dealing expressly stated in the statute particularly
with complex economic and social where a standard is implied in the statute
problems have led to judicial approval of conferring the power
broad standards The standard to guide a particular act
Detailed standards are not required which in terms is not limited by any
especially in regulatory enactments under specific standard may be found within the
the police power. framework of the statute under which the
3. Examples of standards held sufficient act is to be performed or may inhere in its
“necessity” subject matter or purpose
“reasonable” 2. Standard may be found in other sources
“fair and equitable” Other pertinent legislation
“public interest” An executive order
“public convenience or necessity” In the field of law governing the operation
4. Personal judgment of the agency as standard of the agency
The personal judgment of the agency, Standard of “common sense and
where unrestrained, is not a standard or a experience”
sufficient standard
Even where broad standards are laid Exceptions to the rule requiring standards or guides.
down, such standards are not sufficient if The following are instances in which uncontrolled discretion
the statute expressly adds “in the opinion” may be vested on administrative agencies:
of the agency, or expressly confers policy- 1. In the handling of state property or funds
making powers upon the agency. 2. A power which is not directly or exclusively a
legislative one, in the exercise of which the State is
Rubi v. Provincial Board of Mindoro (1929) – “necessary supreme and may act at its pleasure, and which
in the interest of law and order” as standard” has no relation whatsoever to personal or property
Facts: Rubi and his companions are said to be held on rights, may be delegated without any standard to
the reservation established in Mindoro against their will. guide its exercise.
The Philippine Legislature has, by the enactment of the 3. In a field which is purely administrative (i.e.
Administrative Code, conferred authority upon the internal administration)
Province of Mindoro to be exercised by the Provincial 4. The power of a Board to make recommendations
Governor and the Provincial Board. which bind no one has been held administrative
Held: Discretion may be committed by the Legislature and not legislative
to executive departments or officials, to whom it has 5. In matters which are in the nature of privileges as
committed the execution of certain acts, final on to the using of property or engaging in occupations
questions of fact. An exception to the general rule, 6. Where it is impracticable to lay down a definite
sanctioned by immemorial practice, permits the central comprehensive rule
legislative body to delegate legislative powers to local 7. Where the act relates to the administration of a
authorities. In the case at bar, the Legislature merely police relation and is necessary to protect the
conferred upon the Provincial Governor, with the general welfare
approval of the Provincial Board and the Department In such situations, the courts will infer that the
Head, discretionary authority as to the execution of the standard of reasonableness was applied.
law. Who, but the Provincial Governor and the
Provincial Board, as the official representatives of the Permissible delegation of legislative power under the
Province, are better qualified to judge “when such a Constitution.
course is deemed necessary in the interest of law and 1. Section 23, Article 6 – Delegation of emergency
order.” powers to the President
2. Section 28, Article 6 – Delegation of tariff powers
Restrictions on the grant of judicial power. to the President
Legislature is precluded from delegating the 3. Section 32, Article 6 – Delegation to the people at
exercise of judicial functions to administrative large (initiative and referendum)
agencies or officers 4. Article 10 – Delegation to local governments
It is recognized that some judicial powers may be
conferred upon and exercised by administrative Delegation of legislative powers to local
agencies without violating constitutional provisions governments.
inhibiting the “delegation” of judicial powers An exception to the general rule against the
The judicial power that may be exercised by delegation of legislative power sanctioned by
administrative agencies is a restricted one, limited immemorial practice permits the central legislative
to what is incidental and reasonably necessary to body to make such delegation to local authorities.
the proper and efficient administration of statutes Not a transfer of general legislative power but the
that are committed to them for administration. grant of authority to prescribe local regulations

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