ADMINISTRATIVE LAW

ROI..A1~() A. SlJ,\HEZl~t..H.San Bvdn CuJlt'gt'

fbUlldmg and Ma/lCl8l11g Partner;

'lIon Parcdc \~ 7"al1loro JAIL ()ffi~JAil PmctlllOlIcratld Profl soroflAw

A thor Principles. COIlWU'lIts and CasesIn C ututionol Loll I. PrmCI/I!t!;, COf1l111t Ills

and Co < 111Con lIIIIIlUlIOlfAII II.Comparativ S'H!' Roman JAW ond PhilippincLa" First and S.'" 'lid Editions: Introductionto [AU Fir-u, oS., 'lid and 'Hurd RclII1,ms:

~ole;;and Comments. Proclamati-v. ~\., -1 andTh Procisional Constitution cf th Phtlippitu S,'/\grenell Reform. Coopt. rouvc and Taxation;A '/i! to Go for Gt.:IIUIIIC Land Reform ill litePh,l'ppmcs; Statutory COllstrllctioll; and

Torts and Damag ..,

FIRST EDITION

PubIiSh6d & Distributod by~Book.'or.856 Nlcanor Rey... Sr. St.

Tel NoI. ~773513-641977 C.M. Recto Avenue

Tel NoI 735-55-27' 735-55-34Menll PhlllppinM

L

I

, althia book ma be COPied or repro-.... I_II ' ........ outtme.ornotes. whether

::==::.:ap::"':,~d. t)pewntllen COPiedandiffer-... _,. an)' other fonn for di tri-Il'......without the written perm1S81on of the... " ...., peT ,. m boob articles. re-

-_ ,.,IIi ad judicial or other offiontproper "bon

..... -~ ... book without hcorreapondang... _, ...... 'I lanG( thtauthoron thl pag.......... 11.... an Uletftimate eource r 1 an

......... no authority to d.1"j)OfM) of

ALL RIGHTS RESERVEDBY 1HE AUTHOR

PREFACE

The three prmcipal branches of government cannot efficientlyhandle the growmg demands and complexities ofpublic service with-out the assistance of the different administrative bodies and agen-cies of the government

As the population increases, more and more problems confrontthe executive. legislative and judicial branches of the government.All these arc even compounded by the financial and budgetary con-straints, graft and corruption, bureaucratic red tape. inefficiencyand incompetence of Home government officials and employees.

The minute details of national and local problems are piling upfrom day to day like garbage. With e-ach local government through-out the country, and having their own peculiar problems. the threebranches of government do not have the monopoly of time, atten-tion, competence and resources to be able to attend to specific mat-ters. more particularly. in laying down the rules of administrativebodies and local governments.

It is for these reasons that more administrative bureaus andoffices are needed Added to this is the reality that said bureaus,offices and officials are at. least perceived to have the expertise andthey have more time and attention which they can devote to accom-plish the mission HOassigned to them.

In the process, more rules, laws, cases andjurrsprudenca arise.They are necessarily part of the development of administrative lawin the Philippines which law students, law practitionars, professorsand government officials and employees should read and study.

Now, the growing number of laws, rules and cases could al-ready be felt. With more reasons that they will be more voluminousin the days and years ahead of our present generation.

ROLANDO A. SUAREZ

III

ACKNOWLEDGMENT

1I\lklluwl.,,,~W Ih. nSllisllllll'l' 1111.1"1".1 h, Ih.. 1111'111111'114litmy "tulr. MnI"Jul"lIlllllga.lln"III1' ~I'~"I'I! '111.1 \\IIII.11I1111I~llhlll"".In t he 1lI'('omphRhl111'111 I1fllwil'II'Rlll'I'II\I' III1IHPllllll'1I1 111111 "lilt ful til my 1)111"1,,1'" lind hUIIClIll h'il'nll,.\II\, j\lIlrllllOl I ZIIIIIIII ",1.11his t imu anti 1,I)ClII III IIII' 111111111I'IIIIIIIH "I Ihl' 1011111'1111'1 I "I" "Ithe munuscript, 1118 I'Cll1lnllll11l111 III \lllIlflf,II'

I ulso wish 111 I hunk tlHl \\ h"It, til nft III H,l, 1'11111 IIIH, p{1I1 II IIlnrlv Lydiu L BlIllIII" , Zorie ,'n' II" I", >'ll'lll' :-;,,1nI'l II 1111.1 ('IIIIMPusuquin, fur Iwipilll( 1111' I hrCllltlhClII1 I 111'1'111111' I" 11111111{ 1"111" I,

Ahov nil, I 11111 11I1I1It'1l1l1'" !;1I111'IIIIICI (:1111 lill nil I hI' hlllllllings. gurduncu, lind turt une thut 1 hll\l' 11'1', 1\1 011111,1 Ih",!II' 11111"(,OOlI'

,

TABLE OF CONTENTS

Chapter I

GENERAL PRINCIPLES

Page

Introduction 2I) Ii . . .{' mitiori of administrative law 2

11. Admintstrabve law in actual practice 3Background and development of administrative law 6

1\. Origin of administrative law 6Suutce& of adn\\n\straU\'e law 7Relationship between courts and administrative

agencies '" 9Olaaecs of administrative bodies in the Philippines 9Ad mi nistration defined... . .. 11Two aspects of administration 11

a. Internal administration 11b. External administration 12

Distinctions "........................................ 12a. Administration and politics "............................... 12b. Administration and law 12c. Administration of government and

administration ofjustice 13d. Administration as an organization

and government 13Weaknesses of administrative action 14

Chapter II

ADMINISTRATIVE AGENCIES: THEIR NATURE,CREATION, ESTABLISHMENT AND ABOLITION

Nature of administrative agencies 16Administrative powers and functions 17

\'lJ

Purposes of administrative agencies 17How are administrative agencies created

or established? 18Common types of administrative agencies 19Does the legislature exercise control over

administrative agencies? 21

CHAPTER III

POWERS OF ADMINISTRATIVE AGENCIES

Classification of powers of administrative agencies 23I. As to the scope and extent of the power

exercised '.0.. 23A. Regulatory power. 23

a.l Power to conduct. investigations 23a.2 Quasi-legislative power 23a.3 Quasijudicial power 23

II. All to the kind of power exercised or chosenby administrative agencies relative tothe problems referred to them 24

A. Discretionary power 24B. Ministerial power . 24

Detailed discussion of investigatory power 24What is the importance of all the said investigatory powers

and functions of administrative agencies? 25Quasi-legislative or rule-making powers 26

A. What Specifically is the power of anadministrative agency when it exercisesquasi-legislative power? 26

a.1 Enabling powers ,........................ 26a.2 Summary powers 26a.3 Examining powers 27a.4 DispenSing powers, 27

CHAPTER IV

THE QUASI-LEGISLATIVE POWER

Introduction ..............................................................................Basis and purpose of the doctrine of separation

of powers .......................................................31

31

nU8ia 01 t lIB .'11 illt'lplll 1If' non dt'I"Hllt 11111ql JlUWI .8.. ....... a:tCiln legialutive PO\\'CI'S Ill' dcll,gut,.d'I.......................... .. . .. a:tWhnt 1 lilt' tl'lIt l~ldeltllllllll(J will t he n glVl'1I p"wel

hll8 been validly cxeJ'cisecl by n JIll t IIl1lnrdepnJ'tment? sa......................................... , , .

WhllL is tilt' doctrim' of' llllplie,,! ion :141>11I1Inctll)IJ Iwtwl'l'n Iegislntiv 1)()\vI'" IIIHI quusi.

It-Kllil~lliv(' power ,.t.... ~r,Wh"t is till' J(lIidt'lmc to uilt'l('J'vll ill 111'

Two kinds of determinative powers .a.l) Enabling powers .a.2) Directing powers ..

a) Dispensing powers .b) Examining powers .c) Summary powers ..

What is the nature of the prOCeedings arisingfrom the exercise of the said powers? .

Why do they partake of the nature of judicialedi ?pJ"OCe ngs.. 1

Are the proceedings before administrative agenciesd ial i ?a versan In nature ..

When are proceedings adversarial and when are theyheld ex-parte] .............................................................

J 'sdi .un ction ............................ 10 I 1) Wh t i . . di .a a ISJuns Icllon? ..

a.I) Classification of jurisdiction as toits nature .

b) What is the source of authority and jurisdictionof administrative boards. bureaus,and offices? ..

c) Important points to remember about thejurisdiction of administrative authorities ..

c.l) Limited jurisdiction ..c.2) Withoutjurifldiction their acts are void ..c.3) Source ofjUrisdiction ..c.4) An agency cannot enlarge its own

J. 'ad' tiun ICIon ..c.5) An administrative tribunal may have

jurisdiction over a case but its decisionmay be set aside if it deprived a partyof a full and fair hearing ..

c.6) It may be true that administrative boards.bureaus, and offices are not bound bythe technical rules of evidence andprocedure. but it is nevertheless boundby the cardinal rights to be observedin administrative proceedings .

Are the orders and the decisions of administrative boards,bureaus and officea final? .

When is an administrative decision consideredres judicata? .

What is the doctrine of res Judicata in administrativeproceedings? ..

636363636364

64

64

65

656666

66

68

68686868

69

69

70

71

72

72

What are the important principles in ndmirustrativelaw? . 79A) Doctrine of finality of administrative

decisions II 79

Casesa)b)

. . . 0 .

Roxas VB. Sayoc, 200 Phil. 448 .. ..RCP} vs. Board of Communications,

80 SCRA 471 .. ..Montemayor VB. Araneta University,

77 SCRA 321 .. ..c)

CHAPTER VI

IMPORTANT PRINCIPLES IN ADMINISTRATIVE LAW

B) Doctrine of exhaustion ofadll1inistraliveremedics ,.. . . ..

Reasons for the doctrine of exhaustionof administrative remedies ..

Caaes .. .Other exceptions to the doctrrnc of exhaustion

of administrative remedies .C) Doctrine of primary jurisdiction

or prIOr resort. . .D) Doctrine of qualified politicnl agency ..

The President has control of nil executivedepartments, bureaus, And offices .

Basis of the control of the President . .E) Doctrine of res judicata In administrative

proceedings .. . ..Instances when this doctrine IS not applicable

to administrative proccedmgs .F) Due process in administrative proceedings .

Procedural due process as understood inadministrative proceedings ..

Explanation of each requisite .Is notice and hearing always necessary in

administrations determinations? ..When IS notice and hearing not. necessary? ..Instances of valid administrative determinations

without prior notice and healing .G) Requisites of judicial review .

Basis fOI'judicial review ..

7272

73

73

80

8182

86

8993

9394

95

9696

9798

9999

99102102

itt:J ffrom tb lithe adm f 168He u f after the reso ut of the h gh

authonty In the admJ J tral 8 nc, concerned 159Can the revl6WUlg court re-nam ne th ,ufJia ney

(If the evidence and rec;.eJe addJt 0 I d ncthat WWI Q()t 8ubmJt,t.{:d to the adminagency concerned? 161

If

CHAPTER VII

OTHER PRINCIPLES OF ADMINISTRATIVE LAW

B IA

(

1)

f.

CHAPTER VIII

APPEAl FROM, OR REVIEW OF, DECISIONSOF AN ADMINISTRATIVE AGENCY

loa12312-4125125

130

130

132

134135

135

149

What are the other matters that may not be interferedwith by the courts? 161

Assuming. that an orde; i~i~~~;i~~~~ory.i'~'t'h~;~'~'~~ii~f""that IS available to a party aggrieved by saidkind of order? 162a) Philippine Airlines, Inc. vs. Civil Aeronautics

Board, 20 SCRA 727. 162Appeal from, or review of, orders, actions and decisions

of the different executive departments, bureaus,and offices .. . 163a) Philippine Merchant Marine School, Inc. vs.

Court of Appeals, G.R No. 112844,June 2, 1995 . 163

b) Ilocos Sur Electric Cooperative. Inc. vs.National Labor Relations Commission,G.R. No. 106161. February 1. 1995............. 165

c) Concerned Officials of the MetropolitanWaterworks System (MWSS) vs. Vasquez,et al., G.R. No. 109113, Jan. 25,1995 ..... . 166

Should an order of preventive suspension be nullifiedbecause the Secretary of Health lost his disciplinarypower and authority when the New Local GovernmentCode took effect on January 1. 1992? .. . 168a) Secretary of Health, et, at. vs. Court of Appeals,

et al., G.R. No. 112243, Feb 23, 1995 169The mechanics or the manner of appealing the decision

of the Commission on Audit IS different becauseit is a constitutional body..... 170

What is the relief available against NHA awardsof sale of its lots? 170

Can the courts interfere with the Ombudsman's exerciseof his discretion to determine whether or not to filean information against an accused? 171

xiii

CHAPTER IX

ADMINISTRATIVE AGENCIES CREATED BYTHE CONSTITUTION

Civil Service Commission, Commission on Elections,and Commission on Audit are independentcommissions 175

Salaries, term of office, prohibitions at a glance 177

Mechaniea ofMaerinI the terms 178No member Ihall be appointed or designated in a

temporary or acting capacity 178Wlthm what period must a ease or matter be decided

by Mdl COIDJDissaon? 179DeciaioD.l are made by the saad commissions. not

by the mdivadual members of said commissions ......... 179DecisioD.l, orders or rulings of the Constitutional

Commissions may be brought to the SupremeCourt. on Certioran 179

CHAPTER X

THE CML SERVICE COMMISSION

Section 1(1) - Composition and qualifications of theChairman and Commissioners .. . .

Section 1(2) - Term of office and staggering of terms ..Section 2(1) - Coverage of the system .Section 2(2) - Appointment shall be in accordance

th .WI ment and fitness ,. .Can a person without civil service eligibility

be apJ)Ointed? .Section 2(3) - Employees of the Civil Service shall not

be removed or suspended except for cause asprovided by law .

Section 2(4) - Civil Servace employees shall not engagein electioneering or partisan political campaign .What is partisan political party? ..Who are exempted from the prohibition against

arti I' .cal ti ?P 188D po 111 ae Vlty ..Are members of the armed forces subject to

the said prohibition .Section 2(5) - Right to self-organization shall not be

denied to government employees ..Section 2(6) - Temporary employees of the government

are alee protected by law ..Section 3 - Career Service System .Section 4 - All public officers and employees shall take

an oath or affirmation to uphold and defendthis Constitution .

Section 5 - Standardization of compensation of governmentemployees and officials .

185186186

187

188

189

192194

194

194

194

195195

196

197

Section 6 - Defented candidate. .. shall not be appointedwithin one (1) year nftl'!" the election .......................... 19i

Section 7 - Elective officials arc not eligible for appointmentor designation in any capacity to any publicoffice during his tenure .............. ....... 199

Section 8 - Elective and appointive public officials shallnot receive additional or double compensationunless specifically authorized by law 200

Section 1(1) - Composition and qualificarions ofthe Chairman and six Commissioners 205Composition and qualification at 8 glance _ 205Reason for the proviso 206Whut is prnct ICC' or law? 2 6The Chairmun and Members of tho '"'ommis:;ion

on Elections must be appointed or designatedon a permanent capacity .

Section 1(2) - Term of office find :-ttll!J.tering of terms .Section 2( 14) - Powers and functions of tho CO~{ELE .

What is the nat lire of the powers of theCommission on Elections .

Section 2(5) - Power to register political parties, etc .Section 2(6) - Prosecution of cases .Section 2(7) - COMELEC can recommend measures

to Congress to minimize election spending, etc ..Section 2(8) - Power of CO~IELEC to recommend remov 1

of any officer or employ ee It has deputized ..Section 2(9) - Report of CO.ME1.EC to the President

and Congress . . .Section 3 - The COMELEC shall promulgate us rules

and procedures .1. ........................................Section 4 - The CO~IELEC Illa~supervise or regulate

the enjoyment or utilizat ion of all franchises. etc .....Section 5 - No pardon. etc .. \\ ithour the fa, orable

recommendation of the CO~IELEC to the President ..Section 6 - A free and open part) S) stem shall be

allowed to evolve .. . .Section 7 - Votes cast in favor of political party IS' alid

if it is registered under the party-list system .

CHAPTER Xl

THE COMMISSION ON ELECTIONS (COMELEC)

"

207:..0'"~O'

"2H216220

221

222

222

~~~2

ssa

224

:125

~~6

ueprotecttd.'IIOOMBLIC 811neC9l!!![uy"1'Ipl. or .peeI,1

IHAPTlRXI

CIOIINI.ION ONAUDITC1Oap."'IlII_ qut1lftcatton .'l'erai or"'udltllPriD. orterm II Ito__ Wb~ and dutyorthe

, II.

II

.,1'"

.4 I,'

24824r,24~2"(;2";"2-71

(c) Magtaias vs. Pryce Properties Corporation. Inc.and PAGCOR, G.R.No.111097, July 20.1994... 259

Section 3 - Congress shall enact local government code 260Section 4 - General supervision over local governments 261Does the removal of the phrase "a", may be provided

by law" divest the President of the power toinvestigate, suspend, discipline, or removelocal offiCIals? .. .................................. 262

Supervi OT)' po\ver 262Section ii - Power to create Its OWJl sources

of revenue, ctc. . 263What IS the signlficance of Section 5'/ 263What are the sourc of revenue of municipal

corporations? . . . . 263Section 6- ~I government shall have a Just

share 10 n tional taxe . .. 264Section 7 - Local governments nrc entitled to an

equitable hare In national taxes; . :.!64Section - Term of local officials 264Tenn limit .. . 265The crreumv enuon of the prohibition. 265Section 9 - Lcgi lative bodies of local governments shall

hav e sectoral rcpr entation 266Seeuon 10 - Creation, division, merger, abolition

of province etc 266The 68Jd acts nrc still legtslative an nature 267Section 11- Power of Congress to create metropolitan

political subdivisions 269Power and limitations 269Section 12 - Category of eitiea., 270Three kinds of ctues; 270Sectron 13 -Authont) of local government units

to group together and coordinate their efforts 271Section 14 - Regional development councils 271Section 15 Autonomous Regions 272Two Autonomous Regions 272Autonomous regions can be established only within

the frame ....ork of the constitution and the nationalsovereignty as well as territorialintegrityof the Republic of the Phihppines................................. 272

Section 16 - The President has general supervision.over autonomous regJons 273Sections 17, 18. and 19........................................................... 273

XVII

CHAPTER I

GENERAL PRINCIPLES

TOPICS IN THIS CHAPTER:1. Introduction

2. Definition of adminit;trative law

a. Administrative law in actual practice

3. Background and development of administrative lawa. Origin of administrative law

4. Sources of administrative law

5. Relationship between courts and administrative agencies

6. Classes of ndministrative bodies in the Philippines7. Administration defined

8. Two aspects of administrationa. Internal administration

b. External administration

9. Distinctions

Administr-ation and politics

Administration and law

Administration of government and administration ofjustice

d. Administration as an organization and government

10. Weaknesses of administrative action

a.

b.

c.

1

DISCUSSION

1. INTRODUCTION

Th. I tion in our countrY carries with it complex

e groWlOg popu a - d ff ti I h dlproblems that could no longer be efficiently all e ec. I~e y ~n edby the three departments of go\emment. More adm~rustratl~e bu-reaus and offices therefore have to be created from time to time sothat powers. functions and responsibilities could be delegat~d to ad-ministrative officers or agencies that could devote more time andexpertise to accomplish what have been delegated to them.

What is being delegated is not only the power to assist and toexercise said powers and functions but also the pow~r to Issue rulesand regulations necessary to carry into effect the mission sought tobe accomplished. In short. said agencics arc necessarily involved inrule-making. adjudication and investigation, In fact. the body of de-cisions thev promulgate from day to day constitute the bulk of ad-rninistrative law.

To mention a few of the agencies of government that are ac-tively involved in all the said functions are the ~atlonal Labor Rela-tions Commission, Bureau of Immigration and Deportation. Philip-pine Sports Commission, Commission on Higher Education. Hous-ing and Land Usc Regulatory Board. Bureau of Food and Drug. theDepartment of Trade and Industry. Securities and Exchange Com-mission and many others The number of cases filed. for instance. Inthe National Labor Relations Commission, Bureau of Immigrationand Deportation and the Securities and Exchange Commission aregrowing in number from day to dav, It can be said safely that withoutthe assistance of said bureaus and offices. the problems of the citi-zens will not be given much attention.

2. DEFINITION OF ADMINISTRATIVE LAW

. Noted authors have their respective definitions of admmistra,tive law.

Roscoe Pound defines the term Madministrative law" as thatbranch of mode~ la~ under which the executive department of the~ovemment: acting In a quasi-legislative or quasi-judicial capacitytnte~ere8 with the ,conduct of the individual for the purpose of pro:meting the well-being of the community, as under laws regulating

OENERAL PRINCIPLf S

public utility corporatiens, bureaus anl'(~lcd \\ ith publillIllm,'ill. pi tlfe8t1lon .trad and callings. rates and prices, h1\\s for I IIIlIH 1I1t'( I iunof public health and public com enience and ndvantugo I

....e:'oodno .... define administrative law 8S that, branch (If puhllclaw which fixe the organizntion and determines t hi' cump 'Wilt " IIIadmllllstrnhve authorities, and indicult'8 to the illl"\ idullll,lIllt'dll'lIfor the vlolatulIl of his rights 2

Freund defines udrninistrative 1(1\\ as t hilt S\'stCIlI IIf It'g tI nrin-Clpll's which sett] Ihe CQDlliclUlg clnims of tho ~oouti\t) IUlII 1111-mmlstratJve nuthoritie on the one hand and of the IlHh\Hluul Cliprivate nghts on the otller'

In Its broadest sen I" the term "ndministrntive law n 11lr!IHhgall that portIOn of public law of the land cuncerning ('Xl'l'ul ivo IIlIdadmllllstrnllvc officials. In this sense, it includes much nf'lhl' Inw III'soverurgn states, their powers and dut iI'S, the law of puhln- nlhl'ln II,their election, appeintment and removal, civil service, and Ilit' Ilghlil,duties nnd liabilities of officers, milch of tho 10\\ of PUb"I' corpora-nons, the law relating to government BcrVlCI und the dist ribut iun o!the bounties of govcrnml'nt, and finally, nil of thnt great nnd gnl\\ Ifigmass of legal doctrine having to do with the enforcement Ill' IltHI utelaw regulating private affuirs. It nel'CSSIII1I) Includes also tilt' pion',dural methods hy which subatantive 111\\In those fields 18 l,nl'l'lIlated."

Administrative Law in actual practiceOn the basis ofthe aforementioned definitions.nnd cunaidl'lllltt

how admirtistrut ive law presently operntus III this JUI1Sdll'tiClII fl IllI1day to day, it ill perhaps easier to undcrstund adrninist 1"1\1iVI' 11m byhaving in mind that:

1. It is a branch of public lnw

2, It deals w ith the activ ities of executive III' ndmiuist rn-t ive agencies, known and referred to ns "buards," "hu-

Pound, Growl h of American Adminisrrntivu l.nl\, cited in D"(illlllulIl, 111.1Illruone lind General Principles In PuhhCIII La" Ruperta 'lart,n, 1953

'Goodnow, Comparative Admini,lraul e Law, p !lFreund, Cases on Administrative Law, p 1'Suson Admirustrativ e Tribunals, 2nd Ed ,p 1

M

....... 'C01nm,iui4)n..iarabon

,n th t\ 1\(1 \dmlll

EXAMPLE:There II a Ie I pre umpt I \ th It th I ""\

by the National Telceolllmul\1 \1 \ (noalOnable It mu t be c need d th t thrate. by the governm nt throu h t \I titanvolvea the e em e of re n bl d, hI...there i.an abu e of that dl \ thnot Interfere C urts d 1\ tinttlve aenon pnor t It eomnlou

5 d to Hllllinmd in tllnfthl lilt

6 Aft adaunl trahve decl"l n m ~ pnlperh be III IIdl IIor eet ulde only upon C'I r h \\ th t the drutnltretive offiCial r tribunal has t d \\ rth r \\ \b\l Iof cli8cretioD amounung to I ck or xc '"ofJun diet hili'MIen II an abuse of di creuon ~ hen the ame \\ I PI"formeclln a eapnesou or whimsi al t'xefCl (' f J\hllment which 1 equivalent to lack of jurisdi: lliln \'1\1'

\. 'li.\mUl1hlllh'II"

GEl R.... PRI IPl"

nhu ~ of diserencn mu t be p!lunt and gross s tamount to an \ a , n of posruve dut~ r to virtu Irefusal to perform dut\ enjoined bJ Is , - \ here theJ)ll\\(~r I exercised in an rilltmt) cr despotic m nne rh~reason of passion of personal h !!tlht.

7. Fuetual findings of admin) trotl' bodres sh uld be a corded not only respect hut I 6n8ht) lfth('~ re 'up'ported b) subst nua] evidence C\ n If not 0\ c; J"\\ h Im-me or preponderant 'Although findings of f ets of an adnunlStn.\U\ ('\1S persua l\ e m courts and e rn th 1t 8 U'Oll8 pro-umption ofrorrcctne ..- n - th mterpret uon

and application of! \\ I th eo pro u\

W/H~n C'CHI there be a judicial recieu: oftlae findin offoC'tll clf ad mi ni strarice bodi ,

There can b n judieial rtl\'lew of th findlngsfnct .. of administrottv e bodie1) \\TJten there 1- fraud. rmpes uon r ~tak othu

than errors ofJudgtn nt In -umahog th 1ueffect of c\,dcnce. and

2) \\ hen there 1::;nn error In th appreaau ofplings nnd an the apprecrauon of documentar')dence pre- nted b,) the pam -

9. Admiuistrative remedic hould first be exhau"teci~ ....foro filing n p('titlon for re1l('f. J

10. On purely legal quest10n. ho" " r, th ~C\-ed partnee d not f.' haust admim irauve remedie Re onXothin~ of an ndmlDlSU'au\C nature 15 to be d n orcan be dane in the dmini tranve forum

'JI"IT'I!of rn~uan' Offi~ of the PreSldttt.d a1.. G.R..' 1 ~- Det:x:::ba4, 1996

'CII1'3 r'ihplOO R('nlt, C. n"

AUNI I lJtAIIVS: lAY,

11 U.a.M i.uch that Jhi determination requn 1'8 HII' ex-~ .peclah:ted skill and knl)wledgl' of tl ... propuradm n trative bodie b. eau .. technical matters UI' inI.r ~ qUI uon I offacU! nrc IIIV'Jlvf>U,Own ,.,I.. f IIIl1slfir.t be ootamf'd II an idmmiatrative pr'lIl'PI'ding 111"f(l~arm dy will 00 UI,plwd hy the courts even lIH)ughthe matter J wllhua the properjurisdiction of II t(JU"I.'~Th II known all th. principle of prnnnry jurisdiction .

.a. BACKGROUND AND DEV";I.J'PMENT OF ADMINISTRA.Tl'VELAW1be IICI'ea.It flf populatIOn and the grl) ....ing complexitir of day

w day I f~ both In the urban and rural cemmunities, hav nl'l"'IIHIU'Jy Jncr~ the Iunction ofth,' thn e (:1) principal brunches of th('pernm~nt. In the la t five d. cades, till' number of CIIRI'1I submittedlor adjudJ(:ataon and ht~gntlon have d',ggt'd dockuts in 1111 court- AdmmiIJtnJuv .. cases filed In the different administrati VI' bun-a UR, corn.' .. WIII boards and other om, e have signifieantly increased InVCIJume

The IIdmanuII,raUonand enforcement of our laws could no 10111-(\"t.ef!'acwntly and effoct.lvely handled by the principal departmcnte ofpvemment Hence. quasI ~Ud1Cl81and quasi.legislative functionshave w be delegated to the different adminlstrativn agencies of thepernment The power delegated nrc therefore not merely limitedto ruJe..mak.ing and mvesngauon but also to ndjudicalJon of cases or.... JeM presented to them

~ 0( Admuu.trative Lew

~ angln of admlm8lrall~c law could therefore be traced tothe IoIJowang

1 Statute. Setting up admanistralave authorities eitherby creahng boards and commissions or administrativeofficers or by confiding the powers and duties to exist-JOg boards, ccmnnseions. or officers. to amplify. apply,execute, and supervise the operation of. and determinecontroverSICB arising under particular laws in the en-actment of which the legislature decided for matters of

lod...naJ Kn~lne v. CourtofAppeaJIl,G.R No. 88550,ApnI8, 1990.

OF 1I:HRAI PRINI'II'11 s 7

con V('l\il\nl'll 1I1' for tJU kkl'I Ill' IlW!'C t[lI('II1I1 11(1111iII i~-tratilll\ til withhold the controversies, III lou. I ill tilt' fir~fiustanco, 1'1om the courts Ill' lnw,

2) lncrea r. ofgol'crnmcllt [unction and concerns Corn-plexit ios of modern life IICl'{' 81(\ (If guvcrlll1l,'lIt cont rol and regulation - Thegovernment hns interv C1\('d 11\ contractual rclntion thntnrc alTI'I'Il'd wit h puhlic interust., As it l!l now, the I{OV-ernment hils I'XCI'CISI'd eont rol lind regulntion uf munyn$lwdl:lllfhulillH'SS such us hilt not limited to lnbor lindmnllll!.:('l1WIlI relnt ions. imnugrnt Ion lind dcpnrtut rou,banking, recruitment of ovcrsvus workers, msurnncc.telccommunicnt ion indust ry, water serVICCS, finance,foreign exchange. health. food nnd drugs, regulurion ofprofe: ion, regulation ofsport

'.''i&iRATIVB LAW

SUtatee aeatiq administrative bodies

... .. '3.

1.1 TIle Board of'lDergy was created by PresidentilllDeer. No. U08 elated October 6, 1977.

U ...... PbitippiaeOvenea.s Employment AdOlinistrn-tieD (POBA) took over the functions of the O~er-__ EmpIoJment Development Board (OBOB). Itwuaeated bJ Executive Order No. 797 dah'd May1, 1972.

1.8 Tbe Workmen'. Compensation Commission wasabolished on March 31, 1976, and it was rl'placedbJ the BmploJee8' Compensation Commission aaPJ'OYidecl bJ Article 176 of the New Labor Code of&be PhiliPP"'" PD No. 442, as amended.

I) Court decisiona - interpreting the charters of ndmin-iataalite ........ and defining their powers and respon-aIhIIitiea.

3.1 oIuri8prudenee laid down by the Supreme Courtcontehring interpretations involving the principleof primary juri8cliction; exhaustion of adrn inistra-tive nnnedies; due process in administrative pro-ceedi .... , etc.

.) Tbe bodyofnde.. regulations and orders issued by ad- tlati . 'N... ...M"M8.

B-amp"':4.1 RaJ....... Jeticms. circulars issued by the differ-

ent atfmiIU8trative agencies of the government.

4.2 Deciaiona and orders of administrative bodies inmSBS SD ziU" to them (i.e., decisions of the Nn-e pi''''_' Relations Commission on complaintsf'iW ~ "'J5.1 api-st their employers).

III NIIlAI,I'ItI /1 11'1 I II

III ~"lIlItI, II... 11",1 IIfIV. 1111 I"'W" ,,111111" ,VI 11111I,VI" It ...IIIIIIIIIIIIIIH IllId 11111.,118 "I IIdllllllll\ll III I\" 11'111111111"111 1,111.. V,IIV'111111'111 '1IIIIIlill{lll,",lIy 11111 Willi I' IiJlP' I III ,,,III IIIVtIIV'"~ 1111I III II IHI .. r 111"11111 III 11111 I111111"HH 11," tit I

11,lIflY I.. '.,11 1111111111 .111111 1I1I1I)lIf' tI" tllllt l"'lIkf It,V-"IIIIII(111111,"1111,"1111' I. IllIw. \1'1 II lit. I'll I I filII It LIIilI lUi tI""',IIII1101111" 1111"11. till Ii ,It ,II '. 'H flllt~tll kill tllltl kOI,wl"I", fir till'1""IIt, 11111111111 111I11v. 111,,111 IIIC 1111 i It ,I"JII t.1 In uter f,r lIltrlc.!IU"'11"'1111111 1111111 fill III\IIIIVI el, 1111 II " 1111 1011 t fi,st 1)(, f,I.1 11111" In111111111111111IIIIIIV' ,uII,II.hIlU 1"111,, II n'Ir1f!Cly Will h, fllIJlpllfti hyIh. '111111. \1111 tllIlI'l{lI 1110 IIWIl/1 III wlllllllihe prt'I".r J'IIIIIIII{tlflll IIr"'111111 It

1',)(111111'1. II

II) 1'11111111111"111111111 11I11I1I1f' til 11111nnd 1>'pnrI.IILilln

Itl H 111111111 111111 l~xl'hllllH" Commlssion

"I 1'llIl.'lIlIlIllIul 1("1(11111111111 ('fJlllllli8Hlnll

fl. ('I.ARtUJH01" AnMINIHTItNI'IV": non ...:s IN'I'IIE PHil,.I....INI:H

I, ArllIlIlIllllwIIVlllull"H fllr" glllotlllO 111111"1 ""Iicc Jlllwer.

III 11111'1'1111 III 1"111111111111 Drllg

I IIIIIIHIIIH 1I11r1 I.ulld l 'I'"~ Hlluul(ltory Board

I) BUIll d III FUlld IIIII,II'c'l'"'8

", MOIwtllry Bllfll.1

h) 1.111111'1'1I11111J1111 I nt run Ollll'p

IIJ'IIfM'rJndU.lrl". lurpurlll ..". IIr II .. I'llIhpPIIII!H VB. Deputy Executive Sf'ere-I.IIry, (J R Nil 79'111. Apnl 211,IIIIHI

"Indu.trlal Jo!lIlt1rpnlle., 1"" V8 ('Ourl OlrAppelll.,8llpra

to APMINISTRAl'IVIo: I,,''''

~) Admlnl.trative bodies for regulation of puhlie utilities.

E ampll'8.) Land Transportation Franchising and Regulatory

Boardb) NatIonal Telt>CommunH'utlOns Commission

c) Board of Energyd) NatIOnal Watl'r nnd Resources Council

e) CI" IIAeronauticI' Boardo Board of Marint' Inquiry

3) AdmlOl.tratIH' bodies to carryon governmental func-nons

1\) HurNIU ,If Internal Revenue

bl Bureau of Customs

c) Civil gt'n ICC Commission

d) Board of Special Inquirye) Bureau of Lands

I) Land Rt'glstratl()l1 Authority

4) AdmlOltltratl\(' bodies that adjudicates and decides in-dustnal controversies.

E amplel'll) National Labor Relations Commission

b) Philippine Overseas Employment AdjudicationOffil'tl

Cl Human Settlement Regulatory Commission or TheHousing and Land Use Regulatory Board

5) Administrath (' bodies making the government a privateparty.

E amples:

a) CommiSSIon on Audit

1 I

I)II) SIIl'inl SI't' '1 '

11" Y System Arljuriiclticm (JUiceAdlllllliS1!otiv'l .

C II)()II')S thut grnnt pnvJ)p.gcB.

7)

PhilipPIlIt; Vetl'rons Affairs OfficeBIlIIl'd of I' J

fir( ons and Paro".Blln'(lu Clf'Lullds

LUllcl'l'rHIlBPllrtUlion and Franchising HegulutoryBoard

Adltlinlstnltlv'l )' , G' u lCJ( 11'8 that aSSIsts Local overnment

UnIts 111M(,trCl Manila,

a)

h)c)

ell

K'CHlllplt,:

II) Ml't rn Muniln J)('vclopm('nt. Aut.horlty

.:r. ADMINISTRATION DEI"INEDIt ill an Ilctivily of tho Ux('cuhv(.l officer of the government. The

government ndminist("s w}wn it appoints an officer, instructs its dip-lomatic agents, IHiS('SSCS and collects its taxes, drills it.'! army, inves-tigates U case of tho commission of crime and execute the judgmentof court. Wherwv{'r we SCc' the government in action as opposed todeliberation or the rendering of a judicial decision. there we say isadministration.

Adminit.;tration is thus to be found in all the manifestations ofexecutive aetiun.I?

Administration, as it i~ pre ..sently understood. refers to the ag-gregate of those persons in whose hands the reigns of governmentare for the time being.ls

)It( TWO (2) ASPECTS OF ADMINISTRATIONThere are two (2) aspects of administration, namely:

1. INTERNAL ADMINISTRATION. This includes thelegal structure or organization of public administration

"Goodnow, Comparative Admimstrative Law, p. 12.IU.S, V8. Dorr. 2 Phil. 332,

12 ADMISISTRATI\'EI.AW

and the legal aspects of each institutional activity. ti.e.,personnel. material, physical and planning activities).

2. EXTERNAL ADMINISTRATION. This 1S concernedwith the problems of administrative regulations or theexercise of power for carrying out the ends for whichsuch powers were delegated."

9. DISTINCTIONS

(A) ADMINISTRATION AND POLITICS DISTIN.GUISHED

ADMINISTRATION POLITICS

Administration has some- Politics has something tothing to do with the execution of do with policies or expressionsthe policies of the state. of the state's will.

Execution of said policies is . .entrusted to the body of officers,called administrative officers.

(B) ADMINISTRATION AND LAW DISTINGUISHED

ADMINISTRATION LAW

Administration achieves It operates by redress orpublic securrty by preventive punishment rather than by pre-measures It selects a hierarchy venrion, It formulates generalof officials to each of whom deti- rules of action and visits infrac-nite work is assigned, and It is uon of these rules with penal-governed by ends rather than tie" It does not supervise action.rules. It is personal Hence, it is It leave .. individuals free to act,often arbitrary and IS subject to but Imposes pains on those whothe abuse incident to personal as do not act in accordance with thecontrasted WIth impersonal or rules prescribed.Plaw-regulated action.

42 Am JUT, 290Rotlcoe Pound InProclamation. Pol Sci ASSOCIation,pp 232-233

GENERAl, PRINcrpl.I':s 13

(C) ADMINISTRATION OF GOVERNMENT AND AD-MINISTRATION OF JUSTICE DISTINGUISHED21

..ADMINISTRATION ADMINlSTRA'tIONOF GOVERNMENT OF JUSTICE

The administrative officers The judicial officers who.bo are charged with the admin- are charged with the adminis-iatration of government deter- tration of justice decides con-mine what is the law to find out troversies between individuals.bether they are competent to and government officers as toact and if 80, whether it IS wise the applicability in the cases infor them to act. a question of a particular rule

of law. Hence. they determinewhat In", IS applicable to thefacts brought before them,

(D) ADMINISTRATION AS AN ORGANIZATION ANDGOVERNMENT DISTINGUISHED

ADMINISTRATION AS ADMINISTRATION AS AAN ORGANIZATION GOVERNMENT

Administration refers to As an element of'the Stale,that group or aggregate of per- 8 government IS defined as "thatIOns in whose hands. the reigns institution or aggregate of instr-of government are for the time tutions by w hich an independ-being. a It indicates the entire ad- ent society makes and carriesministrative organization ex- out those rules of action whichtending down from the Chief Ex- are necessary to enable men toecutive to the most humble ofhis live 10 a social state, or whichsubordinates. It is thus the to- are imposed upon the peopletality of the executive and ad- forming that society by thoseminiatrative authonties." who possess the power or au-

thority of prescribing tbem,24

'lOoodnow.op. ell .. p. 10.1111,S.va. Dorr. 2 Phil 3321IGooclnow. op. eu p. 5"Us. va. DolT. 2 Pbil. 332: Bacanl va. N.Uona! Coconut Corporation, 53 O.G

1788.

14 ADMINlS'fRATlVF. LAW

1,( WEAKNEssEs OF ADMINISTRATIVE ACTIONAdullnurtrabon suffers from the following weaknesses:

1. Tendency towards arbitrariness:

2. Lack oflegal knowledge and attitude in Bound judicialtechnique;

3. Susceptibility to pohtical bius or pressure, on en bml~ghtabout by uncertainty of tenure and lack of aufficientsafeguards for independence;

4. A disregard for the safegunrds that. Insure a full lindfair hearing;

5. Absence of standard rules of procedure 8uitflbl( to thoactivities of each agency; lind

6. A dangerous combination of legialative, executive, andjudicial functiona.Z$

-Lawyer'. Journal. Vol. 7, p, 560: Macapagal, Judicial Supremacy over Admin-.atratlve Bodies, Lawyer's Journal, Vol. 12, pp. 312314.

CHAPTER"

ADMINISTRATIVE AGENCIES:THEIR NATURE, CREATION,

ESTABLISHMENT AND ABOLITION

TOI'ICS IN TillS CHAI''I'EJt:

1. Nut.llrf' "f "II1111niat.rut ive agencies2. Administrutiv powera and functions:S, 1'lIrl'1II1f'8 of ndminiatrutive ag('ncies:J..-- How lUI' udminiat rnt ivr, agencies created or established?O. (;nmmon typea of administrative agencies6, f)11C'.R the IIglslnturc CXI'rCISC control over administrative

ng(nci!s'!

15

,ADMINI ;TRATI\ E 1,1.\\

DISCU SIO'

'N If

.\D~II:-:ISTRATI\E AGENCIES THEIR ;-J,\TURI-:.CR~:t\TI()N. 17EST"BLISH~rENT AND ,\BOl.ITION

2. ADMINISTRATIVE POWERS AND FUNCTJONSAdministrative agencies have 1wo principal kinds of PUW('1'1l

nnd functions namely:

1. Rule-making power or quasi.legislative function.

2. Power of adjudication or quasi-Judicial function 6

Other powers and functions of administrative ng

1. ADMINISTRATIVE LAW

(6) To detemune rights of individuals in certain cases wherea strong social policy J8 involved.".

.c. BOW ARB ADMINISTRATIVE BODIES CREATED ANDESTABIJS1lBD?Admlni.tratlve agencies may be created by: U1 the Consti-

tution, (Jl-th. legJ.lature in legislative enactments; or (.31 by au-thonty of law

Bsampk ofadmillutrGtive ageneie. created by the Con-.1UuIfo1I:

a CIvIl Service Oommission

b Commission on Elections

c. Commission on Audit

Bsampk ofadmini.trative bodies created by the legi8'lolu~ ,larau.Iak.i.lotive enactment:

a. Bureau of Customs

b. Bureau of Internal Revenue

c. National Labor Relations Commission

d. Securities and Exchange Commission

e. Central Bank of the Philippines

f. National FoodAuthority

&ompk ofadmilliBiralive agencie8created by author-ily ollow ullder and by virtue of variou8government reor-.",,;'011011 oct. ond ill tile proee of 0 reorganization of,IN execulive branclaof tlae6overnment:

a. The POEA was created by virtue of Executive Order No.797 dated May 1, 1992. Philippine Overseas Employ-ment Administration (POEA) took over the functions ofthe Overseas Employment Division Board. In turn, Ex-

'McDermott. CIted ID Admirustrabve Law by Neptali A. Gonzales, 1979.

AllM INlgTHATI\'I~ ,\01 I'll U:S III Ell{ :\A'fURE. CREATION. )9rS'r \UI.ISII MI':N I A!':J) ABO[.ITIO:-;

ecutrve Order ~(). 217 dated -July 24.1987. granted ad-ditionul power's nnd functions to the POEA,

h. TIlt' Public Service Commission was created under Com-monwonlth Act Nu. lW. Said commission is now knownIlN the Board of Enl'rgy which was created by Presiden-tial Dccrec Nil, 1208 dnted October 6,1977

5. COMMON TYPES OF ADMINISTRATIVE AGENCmS

There arc several types of ndmlnistrative agencies depend-ing on the functions und purposes for which they are organized,to wit.:

1. AdministratIve ngencies organized for the purpose ofrt'glllnti~ business interest.

Example:

II. Philippine' Patent Office

b. Office of the J nsurnnce Commissionc. Sugar Regulatory Board

d. National Food Authority

c. Secur-ities and Exchange Commission

f. Land Registration Authority

g. Bureau of Forestry

h. "Bureau of Mint's

1. Civil Aeronautics Board

2. Agencies organized for the purpose of regulating Pri-vate business and individuals through the police powerof the State.

Example:

a. Professional Regulation Commission

b. Movie and Television Review and Classificat.ionBoard

c. Board of Investments

d. Overseas Workers \V,~lfare Administration

.......'bltiODAI La Re aU D~Commission

ReltiooaOffice of rhe Department of Labor

La r Sc.andard~organIzed for the purpose of

nnee for the public.

B rp tb PhI pp n NatlOnol RllIl\\8)S

e c IAeronautIc Boardd Board orManne Inqulr)AdmIn tratl e agencIes organized for the purpose of".rr)"Di certain governmental function ..

p:

Bure.u or Internal Rev enue

b Bureau rCUltomcentral Bank o(the PhlhpplOcd Bu..... u 0( ImmIgratIOn and Deportation

Adml ratlYe apneic orgaml-ed for the purpose ofofl'enl\llpeclal pn~ lege or gratuity,

a Phlhpplne Veterans Affairs Office

Board or Pardons and Parole

Bureau orMines=Transportation Franchising and RegulatoryBx p.e:

b

ed

1\\\11 I 11;\'11\ I, '\ '"l;" NoII 11111111 NA"II[I,' 1I1,j\I'IIIN, :otl11'11 NII\NIII\lIcIIIIIIIN

" I \0 "" lh ~\'1" iI' h ,'" Ilnl" 11111,' 1\1101,,)11 '11111111111,'" nil w,11 "", , 1\\ III II, nt' I ' I\1' \ 1\\ ",I. 11\ II 11\, tI. I IlcllI ,\ .11 I ,1I1J{1I)1I8 Jl ny 1111

\ ,Itth, .hn. ,. III ':}III" II, nl "III c,1 (111"111111"'11 111111illl'Klllllri-, " 111111111111111"" ,)ITic , II 1111.1 111:"""i"1!\ 0" \, I hi Illlll

,.,\ '"'' ," Ill, I I lll,hllln", (I ","II!IIll1liOlllld (llllrl' 1)1'1(1111, I ,I" "I, I "'h \\1 nfl'o\"I" I' 11\0 1111., IIJtIlI' 1111\ 1I11'I(IIlIIl'ily ol'j{ov

II '1'1 h'I" III "", '\llIpl"I """. ",,'"'lfil' 1111 lI"porllllll 1'1111 illII,',ml\I II' ,111\\111111, II c'l! (11'111111'11 c'!!IIIt! ~CI\ ,II1I1II'Ot ufl'1

c 14 ,II,," "I, ""111 ,1111 C'f 1he' ~1I11111t{lIl1h;l\;Ill I "k"14 JIll rt III

, 'IIIIK Itl. cl hvth (11II11I"ltlllllitl.

HAPT R '"

It W " 0 ADMINISTRATIVE AGENCI S

)I'U.: IN Till" (.. l"lICU

, (I" In "lInll IIf I'ow, r 1,1 ,,11111111 1r urvo "1:1' "' " "1 h) th., II tI,' "nel, ~I(JIIL "~I(h, 1'''\\''' 'x' ,,1I11rI

It"tllllntul'V lin WI I

.. 1'11"'11111101111",1111" Itlj{ntlllllll

" 411' I II NIIIIIIII\',' (lIIW'"" 41181" JIlIIa, Ihl I','WN

11 tulhl klllit til 1'11\\1'1 'x"" I "tI ", ,h" , II by nd 111111111II'''Uv, nM{l1I II II rlhlt", til Ihl 1',,,"1'1118 ,el! II ..d tilt hClIII

HI I'...lillllnn 1'''\\1',It MIIII Iflllni 1"1""l

lli\t;ulrd til 1'\1 11111{II 111\1' It.Ilton (10\\' r

:l Wh"t" th .. ''''purl 111((' III 11111111 111101111\1.: t igntory plJwl'rsIIlId r,"I\,tlolllllr "dllllni II It 1\" "gcne If ?

.. 4''''111 I", 1,,\1,1\ or rul, making pcwers

WhRt 'p.'C'ln",lIv, IIIC' power of 011 (ldlllllllst,'utiv(!IIa~nC'vwhcm it e ('r'l ,. 'III I I le's, lutivr powur?

a 1 li:IIRbl"'R pUWe'rll8 ') Summar) poWe'n11.1 "'Xllmmllll( pOWe'rKtI" Illllpe'n,ini powers

POWERS OF ADMINISTRATIVE AGENCIES 23

DISCUSSION

1. CLASSIFICATION OF POWERS OF ADMINISTRATIVEAG~~NCIES

TIll' powers of administrative agencies may be classifled asfllllllWII:

I. As to the scope and extent of the power exercised.

A. REGULATORY POWER:(1) Power to conduct investigations: This power,

Including the power to carry out the provisions oflaw are essentially executive or administrative IDnature. However. when it involves the exercise ofjudgment. and discretion. it becomes an adjudica-tory power.

(2) Quasi-legislative Power: This refers to the au-thority delegated by the law-making body to theadministrative body to make rules and regulationswhich are within the limits of the powers grantedto it. provided:

a. That said rules and regulation" are eonsist-ent with the Constitution or a statute whichcreated it.

b. That said rules and regulation" may notamend. alter. or limit the terms of a legisla-tive enactment; and

c. That said rules and regularions should beuniform in operation, reasonable, not unfairand not discriminatory,

This power is what is known as the power ofsubordinate legislation.

(3) Quasi-judicial Power: This is the power of ad-ministrative agencies to resolve questions of factand questions of law involved in a case brought totheir determination and adjudication. provided.that its determination on question of law is sub-ject to judicial review. The exercise of this power

24 ADMINISTKA'fIV~' I.AW

is inci dental til Ihl'lr IllUIIl funct iun \\hi,'" iN IIIenforce the law nnd to I'lIlnll'" I hui r , xpI'1I1 IV, alIIties.

U. As to the kind 01 power cX('rdllc.d or dloNI'" hy IIchnln ill'tnltive agencie8 relative to tht. prohh'u\H rl.f"IT.'cl tCl 1,1141"'.

This power may either he ,1tt>lTl'IIIIIIHI'Y III- IlliIlIHt'l'lIti.

A. DISCRETIONARY I'()W":U: This 18 till' IHlWI" ,,1'1111mimstrative agencies to net otliritllly 1111'" ,'Illill I'UBI'I!referred to them acrorritng III the tiiltllll'S ,,1'1111'11' IIwnjudgment and conscience lind lint cont rolled hy Ih .. JlIII",ment or conscience of others

B. MINISTERIAL POWER: It I~a power ("",,'('1"1'" .11 1""sponse to a duty 88 lI11pnHI'cI bv law nnd u Ii p.... rlll11111111('does not depend upon t hu discr ..t ion of' t ho 11(111111111-11",,.tive agency involved or of the "X('('ullvO olfi('t'r 1111'.-1(11111'ing said power,

2. DETAILED DISCUSSION OF INVESTIGATORY POWER

I~ the .exercise of its mvesugntory or inqulsitllf'lHI power,~dmmlstratlVe agencies have the power to do any or th follow-109:

1.

2.

They may conduct an investigution. on Ittl nwn ill.Liutive or on the-!.t>quclIlor complaint of a pa rty concerned:

They may conduct oc~r inspection of the plucc, thing,books. records or documents in qucsuon, to find out ifthere is a violation of the law:

They may. if allowed bv law or court order, ropy anydocumentary evidence o"fthe person being invest igated;

They may' summon and require the attendance of Wit--.:: '"- d i hnesses, or the production of the evidence neede n t e

course of the investigation. This power should. however,be given by a statute;

They may conduct quasi-judicial hearing;~

3_

4.

5.

6. They may cite parties or witnesses for contempt. Thispower should. however, be given by statute,

POWERS OF ,\D!>HNISTRATT\"E AGEXCiES 25

In the exercise of all the said powers. the adminis-trative agency or official concerned should act withinthe limits prescribed by law.

3. WHAT IS THE IMPORTANCE OF ALL THE SAID IN\'ES-TIGATORY POWERS AND FtTh'CTIONS OF ADMINIS-TRATIVE AGENCIES?

Findings gathered from inquiries and investigations help ad-ministrative agencies determine thp;r rprnmmpnnationc tr (;on-zress Or the Executive branch.on what they think is the policy orlaw tnat IS necessary considering the situation, condition or cir-cumstances that may have been discovered in the course of inves-tigation.

EXAMPLE:

The rising cost of fuel and gasoline have been as they arealways the continuing concern ofour government considering theirconsequent effects to the people in general and to transport op-erators and the riding public in particular. From time to time,the legislative and executive branch of government have to callall oil companies to relay the usual appeal for restraint in theincrease of prices considering the vehement opposition of all trans-port operators. cause-oriented organizations, students. employ-ees and the riding public. In the past, the Oil Industry Commis-sion or OIC, was entrusted with the function of regulating theprice of oil and gasoline. On account, however, of the oil deregula-tion law, the government has practically lost its power to controlthe increase in prices of oil and gasoline.

For this reason, Congress has proposed the idea of passinganother law int.ended to minimize the price of oil and gasoline.This notwithstanding, transport operators, cause-oriented organi-zations and concerned citizens are urging the government for morereasonable oil regulations. In effect, committee hearings have tobe conducted with the end in view of finding out a more reason-able regulation of oil and gasoline prices.

Another example are the hearings and investigations beingconducted by the Land Transportation Franchising and Regula-tory Board or LTFRB. This happens because of the petition oftransport operators to increase transportation fares which will

AIlMINII4I'lt,\ IIV~ I /l.W

"llIm.h,ly .. ffert thu rommutillt( I'lIhhl' hl'llIlllI' IIIIV Ilin 1'''"', IIIfa"" wHl nc'cfllIJlllfllv touch thl' l"fllIl' 111,1111", V 1111'11"'1110,1wit"" ,IIthlll lin", I' h(\lI'l{ r"",,hld hv till' 1':",pIIlVI" II ( ',,"I,.e1I" III 11111ul IIH'PhlhpPlntlll dUll til Vt'lV pour 1111111111'1111",111 P('(111111l111 I'll IIeI II ill 1111prevalllnllll\ thtl (,llIIntry,

In sum, It II tht' nllllll'I(II, dlllll, 1111'111111111IlItI, "'(I'If'HI'I~,II If'bemal lInthtlr(\d hv tilt' tllm'ftlllt 1IIlrllillilll, III lVI' II/lI'(IIII'M III "lIlelnthem In muklllM thllir fl'CllmnWIIIIIIIIIIIIII III I "I' II'I~ I' 11111VU If tiel I,llecuhH' branch of thl) (JuvClrnnulill

4. QUASI.LEGISIATIVE OR IUI ....:.MAKIN(; I'Ow.,:nH

Whal Sp."iflcally I.'h~ Pouw"((111 A,I",I"iHII'alif/f' AI(('fIl',VWh.n IIEn~I.,.Quo.l.l,"Nilf/(lIiIl.' I'''"",,~

It merely "Xt'rrillt'll tllll PIIWl'l' lit' IHIUUI'e Ii1111141 IIIH1111" I lUll wh it'hnltlan8 that it cnn prumulgnt rlllnll IIlIcI I'C'HIIIIlIill 1111 I "lll1Iet ..d I,llcarry out the provisiuna of thn luw lind illll1ll'III1'1I1 II'Hllllnl iVIpolicy.

In the courseof excrelll"'" sllId [uuct iuu, III' "dmil1l8lml iVIIagency 18vested with different PIIW(lI'R unci fundlClI'" til WII:

1. ENABLING POWERS _ 'l'Iu-v lin' Ihlllll' 11IIWf' I t! Ihilienable an ndmillllltrlllivl' 1t~I'III:y t" do III! 111'1which 1111'law precisely entrust to it,

EXAMPLE:

a, The Land Trunllporllltilll1 Ofli('111l1' l:t'() hI Iht' (IIWentrusted with till' fund ion IIr n'giNtt,,.i ilK 1111 IlHltor vehicles includilll( driver's licuns

b. The Housing and Land URI' HI'gullll",.y HUllnl nlHLURB 18 the nne ont rusted wi Ih 11111flll1l'1l11l1 01approving applicntHln IIf subdivision dlVt'lnj)I"II.

c. The CommiSSion on Higher 1'~du('HlI()II or ('IIJt:1> IIIthe one entrustl'd with thtl function of iHRIIII,g ur-creditation of colleges in tho Phllippincs

2. SUMMARY POWBRS _ They an' thUIII' pOWf'1'1I (1)\(11"cised by administrative autho~itieR to perfor-m ('IIl'H'ivt,

--- upoa penona or things Wlihout the need of_,.... judicia) warrant.

An order I uf'd b\ the Bureau oflmmlgrauon andDeponaboD not ~ aUow a Fil-Am player from play-I" In lh. PBA on the ground of cltlunshlp

b. The fOftlble evacuation of people for re idingWlthin til. &1 6 Itm radius of Ma.. n \ olcano to... d to.. of lave. and propertIes ~

G POWERS - This 18 the power of an ad- D..,..tive apocy to eUDune and Inspect books. pa-pen. Ulcl records to Investigate the activitres of per-... QDder eadt Junscbction

L The Bureau of Intemal Revenue or BIR can law-fullJ nem'ne the finenn.l statements and booksoLMCIOWlta of persona and companies.

b. The Bureau of IlIUDlCI'bon and Deponation orBID can e.emlne the Citizenship papers of an, Fil-A-. player whoee Citizenship 18 under questron.

Co ".. Bureau of Labor Standards or SLS can inspectlMaaiDeaa .. tabltshmentl to determine whetherdae7 comply or not WIth eeeupational health and....._.u-nIa .. provided for by the Labor CodeoL &be PbilippiDM.

POWBIl- Tbia is the power of an ad-~ oftic:er to ...... t elEemption from the per-.. DB oL ...... aI duty.

~

.. .,.. Buruu of Internal Revenue or SIR can ex-eaap& 80IH business .atabhshments from eompli-aace with some la.s or rules .hich are entrustedto It tor enforcement.

b '1'118 MoY18 and TelevIsion :Re\"JewBnd Cia silica.tiOD Board or MTRCB can grant ~emptlon or reolas a rule or rules regarchng the sbo~"Jng of a film.

IV

AIV

I

Wb 'I ..tNt Ifuldtill, 1.4,,1t "., ",dII, "', ,,, , ,f ... t1 I.Ud "'.pU' " fir f1f/ r'I

, IIIt tand.rdl... an ... Ion," .dmlnhlt,.Uy" "Jul ... ""8 DatU Lton .,. ... Hn I.Ii.I.lly""Jul.1. (" I .t d t ,,-,

p...ut.lv. r.,ul.tl'Jn.'I'w lUnda of "If.latly. ",ul.tam

"I.....n... ". ",ul.taonOoD"'-Pnt. ,.,ul.t.lcm........ 01. v.lld .d",anl.,.Uy. ,.. ul.tlon

Wtll viol. lionol.n .dmln tr.tlve ,,,,,uJati,,,, glv~ "If: it, II'IlIIln.' prHfCutfon?

2t

so AIIMI 1~l'It "'" 1\' ,,\

1~I,f ,"","" 11,11\" Ii' ,II \1\'\\ ",tll

RequlIlltt' fllf \ ill"""penal 1I1"I('tll'I"l

(a \ t'il"

I "U" t" 1" I I I da ~) '\lIll'''' "1t:1) {lIIUlllhll""" , .. "I" 1 r,t-:lhh ItH'I', ilil "h\\

I \1 U H NI' I II'S' ..., I \,'\'1'

19 'I't. Illuf 1\11111111,1" .. II"," Ir P"I""

14 ('UIllP" h lit "II' 1.1'\1'111111 "CI (',st! 1I:-1 \11 \"" I\llIflll,' 111'h,1

III Rum"",,,t 1I1"IIIIIIUIIljll. t \1'1 "",.,116 Whlll (111'1111' IlIlIIhllllil I"""1:!"1 ,.,1 'I' IlIlil 11\\1 ,llIth'II'

I~,'I\\ ."

1\ 1'11"1'"" II l'(lnlt'ftlm't' ul Mill 1111111' 1\\,11""11'; \~"'\l1 I, h".

1'1111 'I! I'lllhpl'''"' lh"1 11'1,1"111\'"'' 111t'1\1 \,1111\\1111111111111.d "I. I; H N,' III II \1'11\ \ I')')'hll ~l\ I) 67.a

1\ i)) 1\.11" , \lIlht,'. C"III'IIII l~1\ 'I' \ \:t:, U,\ t.mhl.r '4 Ul65

CI ,I) ('lIlllflll~ 'M \~IIIII"" 7111'1111 '1'

17 Th,. In'nd Ilfra.IUl Whlll art' thl' 1I111,,"IC1$" of 11,",., 1111''' ,r I,''. I,,,,,, ,.\.\\"I

to adminlstreuv. Clj;tlHU'

19 Whlll III IIII1-I1I11"t'It ",II of I"'" t I ." nut h"'II,

" I'('1111\' '"111\111" r \ \1 III 1\ II' \ :\\." .h, I", \; l\I Il\ I.I~. Jllh ~ I. tiltH20 (' \1111"11 I J 1111II I II PII\\I'IIIIII\I'" IIIi: Ilw (,\," 'II" l'IJ'h\ ''''''1\1

IIUlllhllnt'lloll be conferred h\ tilt' h1illill 11\111' t,l lllltlll\\\ \Iuve ugt'llt It'll'

I

DISCUSSION

1. INTROOUCTION

In our system of government, the power to make lews nndthe power to fix a legislative poIi

, \pt\\\'t'ril _I,m: 1nm~' l'IC' III to 1

S. RA~IS 0.' 1'HI\ }'Rl. ('11'1 ~ lll-' xox-u '1 G.\lll)"I \. fP()W,,'RS

"1\11> l'rlllt'll,l" Is btl .. dIklt"~ntn :\ l II I); r " ~Pou r DdrJ; te-dment of the rull'l th tnor can tmnst('r the })(l\\er I ,n ,~11\\\" h n~It \I\\\\h('J"It-.. \ C'\""lll \\h('I'\' the people" h. \ ...

This is, In turn. h. sed nth pnn :11'1"that th d('h Imt t\\ hom n l'lO\\. r is dl.'ll'g ted h. s bet n eh ..en ~l" l~ Ib< 8U'trust Is rt'PO", d on him and In" d.legat ... fUT1h. r h another th,p,l\\.'r d.It'gtlh'd 10him, the third perst n d t'," nr t h.,,' tht' tn"lllnglllllll~ .it'lt'gllh'd to him Mort'o\. r, the PCl\\er ,it'lt'~h d , m-st.ttutes 'lilt ,'1\1\ n rtght but also n dut~ to be' l't"'rilnm.t 1" thedtltgntt through the use of his 0\\ n judgmen! md not thrmlght h.' judgment of nnother.

4. CAN1"'~GlSIATl"E POWERSBF n:FLEGA'liF:1).

1t'gtslntl\ c PO\\i.'l'S ml\~ hi d,lqi' ted In the fo110\\11 ,,n ..,

1 \\ hen n ut hon!.. d b\ t he Con ..utuuon ..uch n- an the fM'10\\ '"g cases:

I'nu, 11'1.s, (\'llInH'nta and l;a~~ in C\ ,t lutilmAl LII", I F\Nt Edlll\'Il\ to,:-:lIllt'l'7.' Ihllg Kllooum, Thomson. 103 t :- lb... 100 !:S 1 ",i -, hut-'1\ ,\\"Cld. 15 !'hll 612

'I'nnoilles. l"ommt"nUi and Ca in

'1111': "WI'I'8 til 1I I' , 'VI)' H' ""Kld"lIl (SI'CliIlJl :l:II:lI, Alt,id.,

2.

(b) ('"ngn'a8 nu I IP' Iy 'Y ow ~1(l1I1 lnriff JI"WI'IH to l}".l'I'sHll'l11 (Scl'tilJll ~8(21, Article VI).

LCgllslntivl' III)W('I'8 I J Imay III 1 (l "I'all''] IIJ local gcJVI I'll-men ts: .,

:3.

(11) Pulit'I' 1)()Wt'! h I. 118 lI'c'lI "Xlll"'HSly dl:l"gnlc,d by theIc'gll:lllli ure to till' locnl law-making IJ'Jdies;

(b) Emillcnt Domain,

L{'gislllll\'c' Jlllwers fIluy he deleguted to till' people atInrgt"

(a) I{t'ft"'pndlllll - " 1IH'lh"d of' submitt.ing un impor-lilnt 1,giKlnt IVt' 1I11'II811rl' tl' n di,.,'cl VoL" IJI thewhuln 1lt'llpll'.

(hi Pltlllsl'itc - II device III obtuln 8 direct popularVIlIt' IIIl n mut tur' Ill' poUt icnl Importance .

.1. Ll'gl~lntiv(' powi-rs muy he dp.It'gatl'fllo administrativebodies (c,j.(, POEA. l:l'FHB, CAB, OWWA, 1301, BMI,etc)

5. WHAT IS THE T"~ST TO DEl'EUMINE WHETHER AGIVEN POWER HAS BEEN VALIDLY EXERCISED BY APARTICULAR OEPARTMEN1W!

FIRST TEST: TIll' first test is to determine whether or notthe power in quest ion, regardless of its nature, is granted by theConstitution to the department \\ hich seeks to exercise suchpower. If it IS granted by the Cunatitution, the exercise of thepower is sustn invd.

SECOND TEST: If the power sought to be exercised is notexpressly conferred by the Constitution, can the power sought tobe exercised be reusunuhly inferred from, or is it necessary to theproper exercise of t he express power granted to the departmentseeking to exercise said power. hence, justified under the DOC-TRINE OF IMPLICATION.

AllMINISTRATIVE LAW,h.a' I. 'lte doctrine of implication?'rhls means that even in the absence of an express confer_

ment, the exerCl8(' of II given power may be justified or reason-ably Inf.,rred from the express power already granted, or that itmAy he necesllary to the proper exercise of the express powergranted to the department seeking to exercise the said power.

EXAMPLE:

1. Rules of proccdure promulgated by the Electoral Com-misaion were challenged because they were allegedlynot (lxpr('lIsly authorized by the 1935 Constitution. InAngar ux. Elvctoral Commission, the Supreme COurtupheld the promulgation of the said rules of procedureIlI'CIIUllIltllt1y were found out to be necessary to theproper CXl!rCiKeof the express power of the Electoral('ommlsslon to hear and decide election contests involv,IIlg members of the legislature.

2. The POWerof Congress to conduct legislative investiga,tion may be implied from the express power of legisla,tion ThIS power, however. is now subject to the follow-Ing restraints.

(8) The Icgilllative inquiry must be in aid of legisla.hon:

(b) The conduct of the investigation must be strictlyIn accordance with the rules of procedure that musthave been published in advance for the informa_tion and protection of the witnesses;

tc) The rights of persons appearing in or affected bysuch Inquiries shall be respected.t

THIRD TEST: If the power sought to be exercised is not,..anted by the Constitution, either expressly or impliedly. can itsexercise be Justified as inherent or incidental? If they are, theexercise of the saId power may be sustained.

IPrinaple ComlllC!nta and Cues ID ConstItutional Law I. First Edition by8uaru. dtin(( An,.ra VI Electoral Commission. 63 Phil. 139.

'Prineapl ... Comments lind C_ ID Constitutional Law I. First Edition bySuarez. all", B.c:tion 21, Article VI. 1987 Constitution .

'I'III~

ae ADMINISTItATIV~' I..vw

7. WHATII.~THEGUmELIN";l'O ()US";RV1

THE Ql ASI I FoOISI TI\ F: 1'( \\ I It 8'1

DISTIN(,TION U"~I'W..a-~ l.}o~t;a~I.AI'I\ l'~ HIt'(aJLA'I'lONHAND INTERPRF'l'A'I'l\'J..: R";t:UI.,\'I'lON:-\

LEGISl.A rtvi:REGUI 'l'1(')N~

II II-:Ul'IU,'1 II\'I~HE run ..\ noxs

1. What IS employ I'd III PIUIIIulgnling 11\114regulutlou ISnOI l he d iscrt non to deter-mint' \\ hnt the 1\\\ shull be,as this j,. ,'XC')UIiI\ elv \ estedIn the legislnture, hut Ihtdlscretllll\ 01\ how rho lnwshall be t'nfllrll,tI

I'IH' "'1181111111' II" III1111111141IIII"I'tI 1""1111 IlI'i 1"11til 1\ l!llllle ~Illd II", II til\ "Id Ift-h,, con t ruo t hrI ,hilt, corrt cth If nut,Iht" 11'(' ulljl\l tojudleinlrev It'\\

9. TWO KINn~ UP I.Etast ..~nVI-; ItI' tan ..\ l'ION:sTh 1\'0,21 kinds of lC'glt'lnhH ..C'culnllllil Ir, (I) SUJlpl1

mentary rt'gulnlllln; and (2) l onrlngon! regulntion

1. Suppltnwntnry R"llulllt iI''' -It 111'1'11'1111'111 "lit Itute h~ tilling In (Ill' tI,'I,,"1I t.1 11\1' 1,,\\ Iii 1'(111 11111 I hl'1\fllfn'IlwnI 1.1lilt' hl\\ .1I II\(' 1.'':181111" I' 111,1,,'\ II ,'Ifort h III 1I", lnw

St'C'llIln lllf,\rtldl':-\11 171:5,dill'll lilt thnt thoGO\ t'1'1\11I' (;"llI' 1111 11111.).b \ I',,','ll I l\ tl IIIIt I "1'111 'liW, I tillst ruct , 1'1 III ht'I'\\ISI' ,'hlllll:" I hI 1111111111111 \ 1,1 1111\ 11111\mce, t;uhprtl\ men, 11\\11II "I}'(I " 1, ,II I"" 1\ hlp, "I IIIh"1polific II subdlv 1>11

38

The Supreme Court susta}oed :he ,:oostitutional-ity of the said Section 1 of Arucle ~o 1/4S. and ruledthat the delegation was ~slmpb a traos~e~enc: .of cer-tain details with respect to pro\;'nces. mU~CIp~htl~s ~ndtownships, many of them newly cre.ated. which IS JUS-tified because all of them are subJect to more or lessrigid change both in development ~od center of popula-tion, the proper regulation of which may .requlre notonly prompt action but action of sucb detailed charac-ter as not to permit the legislati\'e body a!' such to takeit efficiently,"

2. Contingent Regulation - It is issued on account ofthe occurrence of a certain contingency, as determinedby the administ rative agencies. On the basis of the lat-ter's determination, the operation of a law may eitherbe enforced or suspended. -

EXAMPLE:The authoritv of the Governor General to lift the

prohibition again:..t the importation of foreign cattleupon det('rmination that there was no longer a threatof contagron cnu ..ed by ruinderpest epidemic, was sus-tained by the Supreme Court in Cruz us, roungber~.fj

10. ~O~UISITES OFAVALIDAD~ro.'ISTRATI\'E REGUL-\-

The following requisrtes must be complied with:

CODE:ASAR

A Au~horized (Its promulgation must be authorized bv thelegislature); .

Scope ~f au.thority (It must be within the scope of theauthority given by the legislature):

Accor~ing to prescribe.d procedure (It must be promul-gated In accordance with the prescribed procedure):

Reasonable (It must be reasonable).

S

A

R

i56 PhIl. 234

1111 III A J LEU! J.ATIVE 1'(JWgJ(

UIHC'UHH,ON OF EAC'H JU.;ClUrSI1'E:

A"lhCl~I~y to .,romu'guh' an udminj8tra~jve regu.1".lu". IIIIB IB gflllltl'd ,itll,rby the charter Itself of a."I.tlllllll' If" IVI hlllly, nr by the law it ia supposed to en~III" I """(", OilY lIml all administrative regulation.ItRW'11 IIv 1111' Illlm'"1 t rat ive IIglncy should not be con~Ifilly I" 111"11(1111 charter or law that creates them, andI IInl IIII'Y 8hllllill be III conformity with the 8tandard~1'''' "I "Hd hv luw,

:J. 'I'h, ""thorHy dl.It'gut('d to the administrativeA,,'lO"y concerned should be exercised properlyAnd withIn thl' H('Opl'or authority granted to anAdml"IIItrlltiv,' "geney, Otherwise, it is ultra vires,""111"', 1111' Icmovnl flf licen e plates of illegally parkedVIIIII'II8 III IIlit JI1dudNI, according' to the Supreme COurtIII 1.014:1,,, even 10 Preaidential Decree No. 1605 whichunlv Ruthllli1.ldthn Metro Manda Commission to sus.pond III' revokn the license of the driver found to haveviolnted truffic rules,"

3 It mUllt be' promulgated in accordance with pre crlbcd procedure, Administrative regulations of gen.oral upplicntion does not require previous notice andheuring I'XI'C'pt where the legislnture Itself requires itlind mnndntes thnt the same shall First require the as .certninment "ffucts elicited from an appropriate inves_t igntJon.

If there ISno such requirement, the promulgationof an adminiatrative regulation is within the discretionof an adminietrurive agency concerned. However. if aregullltHln 18Issued in order to settle a controversy be-tween specific parties, it IS considered as administra_tive lIdjudicntlOn which requires notice and hearing.

(3.1) Survey of jurisprudence on the following issues:

3.1.1 APPROVAL OF PROVISIONAL RATESOF UTILITIES - It was held that thedefunct Public Service Commission can

Metropolitan Traffic Command VB Gomez, 187 SCRA 432,

II II J "'1\ 1\n I Mv

he II tlill 1!lIIIIlVI II Vililld r IIIIIM WIUlOul(lllhll I" II 11111111 III III fli iug. /I"/I'WII I ','CII um II r III In nllt I 1111, 511hJIII III ud-

)11 11111111 mil rnnfu, IIlIly with dl'llIIill' rlll"HIIIP' '~Ifl In, r fin tI I" filillg" II

I I ull u1 It ALLO" INf! A I'HOVfH,ONALINc'ltl.AAI~ IN IIII~ I'HI('I'~H 01" PE111111LI1M 'I III RUJlII'11l1 ('IIUI'I HUHI ,Inlll! II" Vlllhlily III Ih,' IlIlId 111'111," RrIII I lion 8 of I'.x. rut lVi' Olll .. 1 Nil 17:.!illnw Ihl till! without III 101 heuriug,withnut 1111)11111, I 10 [j I1nlll 11"CISilill ufturlin Ifill' II" ('ulIl( nuon thnt lhl' 8111111'vio-I lie ,1111 I" UII "Willi" JI',lcrl.12

n I I 1I1t .. 1:1t PIlIf.Hf'UIU1N(; MAXIMUMfH 11001. I' EI':S 'I'IIAT MAY HEc'IIAUtlJo.1) II\-' AI.L PJlJVA'fEAt 1I001.S IN 'III":

,II

All hIWII,Oil till' lither hand, shall take.. lIi1'I 11111'" Iilh'('11 (I() dnys following tho1'01111'11'1iun "I' t heir puhl ication in the Offi1'1111 not obligld to ndmit aliens \\ ithin itsIt'rr,!tll'\', once lin alien is ndmitted, he cannot bedl.pn\,t'~l of lift' \\ u.hout due process of law. ThisgUllrllllh'C includes the mC~lns of li\'elihoo~. Theordillllnce amounts to 3 denial of the baste right ofthe people of t he Phifippines to engage in the1111'II11S of livelihood,17

, ...,,'" ""'" ()nh'r :\,. :.!OO'"1,...,,1., \ ~ \','nhnnll, 1:12SeRA ~:.!3 ,. " ,I M!",Clr Vlll"tr"~ \" Hiu ChielO!!: r"", Pao Hac, III>tiC RA 270

I'IIJMINISlltAII\'1 II\W

" All \1II I" 11.11lIlI. II (Ullllllll IIIIIIVI' lI'gllloll"" wllI~'h'IIlJlO ilK , Ih'lI tit,) III Ihlll) UO)8 1111111i!lllllllll'lIl 'fIrII"" I ulllJlhnl1l I wl(h IhI.) 811111",All IHIIllIrl18lIUll\c. 1I'.tuIUII')1I which pl'lInlizCH1'1('( II 0 Ii lung \\ 1111II 11111111hnlllll'clullcll'l'lllIJ IIIW,lft

a

II, WILl. A VIOI.A1'ION 0'" AN AU(\UNISTHA'1'IV ..: I(I';OU-I..ATIUN (av.; IUS.; TO A ('lUMINAl. PIlOS":

THE QUASI-LEGISLATIVE POWER 43

FACTS:

Section 11 of the Fisheries Law prohibits "the use of anyobnoxious or poisonous substance 10 Iishing." The Secretary ofAgriculture and Natural Resources subsequently promulgatedFisheries Adrnirustrative Order No 84 prohibiting electro-fish-ing in all Philippine waters. Said order was amended by A O. 84-1, by instructing the ban against electro-fishing to fresh waterfishes.

The respondents were charged for having violated A 0 84-1. The complaint alleged that the five accused used an electro-cuting device locally known as "sense" to catch fish through elec-tric current. in the waters of Barrio San Pablo. Sta. Cruz Thecriminal complaint was dismissed. The dismissal was affirmedby the CFJ. Hence, this appeal.

ISSUE:

Whether A.O Nos 84 and 841. penalizing electro-fishing,arc devoid of any legal basis, and hence. invalid?

HELD:

Ye The Secretary of Agriculture and Natural Resourcesexceeded its authority in issuing F.A.O Nos. 84 and 84-1 and thatthose orders arc not warranted by RA No. 8512. The reason isthat the Fiaheries Law does not expressly prohibit electro-fish-ing. Since electro-fishing IS not banned under the law, and theSecretary ill powerless to penalize it. Hence, A.O. Nos. 84 and 84-1 are devoid of any legal basis.

Had the lawmaking body intended to punish electro-fishtng,a penal provision to that effect could have been easily embodiedin the Old Fisheries Law,

The lawmaking body cannot delegate to an executive officialthe power to declare what acts should constitute a criminal offense.It can authorize the issuance of regulations and the imposition ofthe penalty provided for in the law itself. But a mere administra-tive regulation is not legally adequate to penalize electro fishing.

Administrative regulations adopted under legislative author-ity by a particular department must be 10 harmony with the pro-

ADMINISTItATI\ E LAW

nd should be for the sole purpose of carryingen 1 pro... Ions An administrative agency con-

n t. mend th t of Congre s. The rule-making power must. beecnfin d to d tail for r gulnting the mode or proceeding to carrymto err: et th low 8S It has been enacted. The power cannot beext nded to amend or expand the statutory requirements or toembrace matter not covered by the statute, Rule, that "ubvertthe tatute con not be sanctioned.

PEOPLE VS. QUE PO LAY51. O.G. 48850

Circular No. 20 of the Central /Jank tchlch. pre-scribed II penoily for its uiol atlon should be pub-Iillhf'tI before becoming c(fcd;!'c.

"'ACTS:

Centred Bnnk I sued n circular (Circular No. 20) roqumngtho l! who hod foreign currency to sellthe same to Central Bnnk.Que Po 1,0,' Yo.1 accu ed of violating Circular No. 20 but he claimedth It the aid circulnr has not yet been published in the OfficialGuzotto before hl alleged ~iolation of the same and he houldtherefore be ncquiued

IlELD:

1'11('Supremo Court u tamed the defense and held that be-fore the public I bound b,) Its contents. 8 18Yo.regulancn or CIrcU-lar must first be published so the people will be officially informedof the snme, paruculnrly the penaltie for violating thereof.

Department Order lY,o. 8 issued b.,' the Secre-tary of Bdueatlon does not provide a penalt)'again.' the pupils ,..fusirag to participate in theFlug Ceremony.

GIL HAL BUENA vs, SECIU.'TARY OF EDUCATION110 PHIL. 160. G.R. NO. L.14283

NOVEMBER 21. 1960

THE QUASI-LEGISLATIVE POWER 45

FACTS:

Pe"titioners, members of the religious sect "Jehovah's Witnesses, challe~ged the constitutionality ofRepublic Act No 1265,by virtue of whIch the Secretary of Education issued DepartmentOrder No.8, prescribing compulsory flag ceremony III all schoolsas a~ undue deleg.ation of legislative power. Section 1 of the Actrequires all educational institutions to observe daily flag ceremony,whi~h ~hall be simple and dignified and shall include the playingor SIDgJngof the Philippine National Anthem. Section 2 thereofauthorizes the Secretary of Education to issue rules and regula-tions for the proper conduct of the flag ceremony.

HELD:

The requirements constitute an adequate standard to wit,sim_?)icityand dignity of the flag ceremony and the !iingin~ of thenational anthem - especially when contrasted with other stand-ards heretofore upheld by the courts such as "public interest,""public welfare," "interest of law and order," "justice and equity"and the "substantial merits of the case," or "adequate and effi-cient instruction." That the legislature did not specify the detailof the flng ceremony IS no objection to the validity of the statute,for all that is required of it is the laying down of standard andpolicy that will limit the discretion of the regulatory agency. Torequire the statute to establish In detail the manner of exerciseof the delegated power would be to destroy the administrativeflexibility that the delegation is intended to achieve.

Without a definite standard, there would be no reasonablemeans to ascertain whether or not the administrative agency con-cerned has acted within the scope of authority as determined bythe legislature. When this happens, the power oflegislation wouldeventually be exercised by a branch of the government other thanthat in which it is lodged by the Constitution."

13. TESTS OF A VALID DELEGATION OF POWER

In cases involving the issue of whether or not there was avalid delegation of power, our courts have to find out the follow-ing:

19'1JganElectnc Light Co.Inc. vs, Public Service Commission, G R. Xo. L-19850.January 30. 1964,

1., , ,.;C'omp/t'l1.' ill itself, or

Is the law which dl'ltgntc:- Pl)\\t r. 1..., , 'cuted by thed' I", to l,l t ~l oes not It set fort h IIll' po 1,.dt,lt'g:ltt",' ('O.\fl'LI-; r,,',\"F8~ 7'ES T

-hich nre sufficientlyDoes t~e law Ii, staudurd IInnt,.; "" the dt'lcgnlc mustdeterminate or d,'tt'rminubll' to w hie h T'L' S'T)conform') lSi 'FF/C1E.\'T ST.\SDARJ) J.j ..

2,

14. COMPLETENESS TES1: EXPLAINED\ I, 1. ' f II it ' terlll"; and provi-. I aw must 1'(' complete III itscl In II 1:-;. ' ,

~lons when it leaves the legislature :-0 that notlll~g IS It,ll to th,eJ\ld~nwnl of the ddt-gilt,., Other" 1:-,', the ,;tntutel:' nn unconsti-t ut ionnl dt'it"gation of PO\\ ('I:

\\'Iwn is U star ute considered I"I111pll'h"1

A stut ut o IS comploio when thl' ,;ubject. th~' m.nnJ\l'~, nnd theuxtunt of its opcrat ion are therein st at cd. It I~ lot' .thls 1'~'HSOnt hnt tilt' h'gislnturt' should dl'llrh stut e the leglsltltlvt' policy tobe impit'Tlll'nh'd by thl' delegutc. ,,'ho :-hould impit'lllent the same.lind the SCOPI' of authoritv to till' dl'lt'gnlt'.tO

U.S. \'S. ANG TANG 8043 PHIL. 1

The Governor General cannot b...proclamationdelermine u'hal 0('/ hall con.titute a ('rime ornot,

FACTS:A law was enacted bv the Philippille Legishit ur in 1919

which authorized the GO\'t'~nor Gl'nt'ral to issue and promulgatetemporary rules and emergency nlt'nsur~s to implement the pur-pose of the said law, also known as Art 2868. The Governor Gen-eral issued a proclamation fixing the price of rice and penalizingthe violation thereof. The purpose of the law is to regulate thesale and distribution of palay, rice and corn. particularly the mo-nopoly. hoarding of, and spcculat ion of said commodities,

..uS "M Ang Tang Ho, 43 PhIl 1

THE QUASI LEGISLATIVE POWER 47

The defendant who w ..ce at a pri hi h as prosecuted and convicted for selltngnealed to t~IC~ Ig er than that fixed 10 the proclamation, ap-p id I e upreme Court and questioned the validity of thesal proc arnatinr, which di . .'. ' accor mg to him, was Issued pursuant.to an unconstItutlOnal delegatl'o fno powers.

ISSUE:

Is the contention of the accused tenable and is the questionedlaw complete as a legislation?

HELD:

The law is not complete as a legislation, and consequently,there IS an unconstitutional delegation of powers for the follow-109 reasons:

1. The legislat.ure said that the proclamation may be is-sued for cause and leaves the question of what is anycause to the discretion of the Governor General;

2. The legislature did not define what is an extraordinaryincrease in the price of palay, rice or other cereal. Hwas left to the discretion of the Governor General;

3. The law did not also specify or define what. such tempo-rary rules or emergency measures are, or how long suchrules or emergency measures shall remain in force andeffect, or when they shall take effect. All these were alsoleft to the judgment and discretion of the Governor Gen-eral;

4. The Governor General cannot. by proclamation deter-mine what act shall constitut.e a crime or not.

15. SUFFICIENT STANDARD TEST, EXPLAINED

A sufficient standard not. only defines the policy fixed by thelegislature but also marks its limits by specifying the extent ofthe authority of the delegate as well as the conditions under whichthe said policy should be implemented.

Without the said standard, "there would be no means to de-termine, with reasonable certainty, whether the delegate has actedwithin or beyond the scope of his authority. When this happens,

AllM1:-; ISTRATIVE loA\\'

lh~ PO'A' r of Icgu!lallon 'AIII e\ientually be exercised by a branchof gO\ rnment other than that m which It IS lodged by the Consti-tution

18. " ...AT ARE TH,,: STANDARDS RECOG~l.ZED I~ THISR .. oc nTIO~"7A d. id d 10 old and new ens the following standards have

be n ree m db.} our Supr me Court a valid and sufficient, to'A1t

Ju uce, qUit) public nv OJ nee nd welfare2 In tll lilt re t rJw nd ord r3 Public wp.l~ re

4 Public ant r l..I; Sun placH), conomj nd cffici Dey

N ..:'" C'ASio:S

I Fair and quuabl emplovm nt pr cue

2 Nation I ant r t

3 ad ub I-d m tte

4

price

t nd rrdi u n nd re n f medi 1 edue uon5 Troffic afet

TH Q AS) U:Ot LATI\ PO\\R

co "'ENF ..: OF 1AJUTIM ..: I 'NINe; AGI-:NCrt;S, :fiT I. \~. PIli I.II'PI 'I-~OVl-:no..J.,:AS

lPl ..0l '''1\''.' l)~lIN.~l Ii '.'ION.ET AI o.u. '0.11471.1. APIlIl. 21, 19U5

110 sc IJ 67.7'h" chClIl,ItNed rt .,,/111;,,11 '''If I memorun dum

circular, " h;('h mf'rrh' furlht'r amended th IIr,.,,;,ou. M""ION.ndum Circular ,'0. Q2 'rictly conformto Iht' u/Tif'lCllt anit I (.lid .'alld"rcl. "r "[air IIn(1f'quJtoblo I'ml,I,., ml nt fJrClf't;cr.I" ..~.rrihftl"in f;.O,o '197.

FAr.TS:

Phlhppm(' Over en ":naploymcnt Administrationu don 14 J nuary 1994 GO\Crlllng Board Resolution

01 mer 10 nd odJu tang the rate of cornpensauon Dndth r ben fit an I) rt II, Section C. paragrnph 1; Section I., para-

Iraph 1 and 2, nd Appendix I.A ofthc I'OI-;A Standard Employm nt (' ntract for farers The odJulILmcnts were made offec-t v 20 March 1994

Admllll tr tor" t: hCI imo Jo on issued Memorandum Clrcu,lar N 05 on JtlllU81') 19, J994. mformlng all Fillpino senfarers.manning agen I shipowners, manegcrs and principals hiringYlhp n Mafar

t\1l~tJNISTH.\TI\,E la\\\'

TIll' n'toolulion and the memorandum circular are notvalid ads of the Governing Board because the privatesector fl'pr('';l'l\tatl\'ll mandated by law has not beenappointed h~ the President since the creation of thePOEA.

ISS(rE:

Does till' POEA have the power and uuthority to fix and prom-,,1'-:1\1('rates affecting death and workmen's compensation of Fili-pino seamen \\ orking 10 ocean-going vessels? Granting that thePOJ.:A has that power, did it violate the standard for Its exercise?

HELD:

The constitutionul challenge of the rule-making power of thePOEA based on impermissible dvlegation oflegislntive power hadbeen, as correctly contended by the public respondents. brushedaside by this Court IIIEastern Shipping LweI', Inc. us, POEA (166SCRA 533). The petitioner in that case assailed tilt' constitutlon-alit v of Memorandum Circular No. 02 of the POE A (effective 1Februan' 1984)which prescribed a standard contract to be adoptedby both foreign and domestic shipping companies in the hiring ofFilipino seamen for overseas employment. The challenged reso-lution And memorandum circular here merely further amendedMemorandum Circular No. 02, which was earlier amended in 1989per Memorandum Circular No. 41. series of 1989,

The POEA mandate referred to as providing the reasonablestandard for the exercise of the POEA's rule-making authority isfound in the statement of powers and funct ions of the said officein paragraph (1). Section 4 of E,O. No. 797. to wit:

1. The Administration shall formulate and undertake incoordination where necessary with the appropriate en-tities concerned. a systematic program for promotingand monitoring the overseas employment of Filipinoworkers taking into consideration domestic manpowerrequirements. and to protect their rights to fair and eq-uitable employment practices. It shall have original andexclusive jurisdiction over all cases. including moneyclaims. involving employer-emploYl'e relations snsingout of or by virtue of any law or contract involving Fili-pino workers for overseas employment. including Sl'S-

Til": qUAS).LF.GISI.AT)VF; ('OWER 51

men. This adjudicatory function shall be undertaken inappropr-iate circumatancca in consultation with theConstruction Industry Authorit.y of the Philippines. Thegoverning Board of Administration, as hereunder pro-vided. shall promulgate the necessary rules and regu-latron to govern the exercise of the adjudicatory func-tions of the Administration

. While the making of laws is a non-delegable power that per-La.1ns excl usiveJy to Congress, nevertheless. the latter may con-StJ~utionally delegate the authority to promulgate rules and regu-l~l1ons to implement a given legil'lation and effectuate its poli-eros for the reason that the legislature finds it impracticable. ifnot impossible. to anticipate situations that may be met in carry-Ing the law into effect. All that is required is that the regulationshould be germane to the objects and purposes of the law; thatthe regulation be not In contradiction to but in conformity withthe standards prescribed by the law.

The challenged resolution and memorandum circular. whichmerely further amended the previous Memorandum Circular No.02. strictly conform to the sufficient and valid standards of "fairand equitable employment practices prescribed in EO No. 797.

The last Issue concerns the contention that without the ap-pointment by the President. of the third member of the governingboard. the POEA cannot legally function and exercise its powers.ThiS contention merits scant consideration Section 4 of E.O. No.797 indubitablv declares the immediate creation of the POEA.Thus. upon theeffectivity ofE.O. :-;0. 797. the POEA attained itsjuridical personality, The appointment of the third member "whoshall be well-versed in the field of overseas employment." pro-vided for in paragraph (b) of the said Section, was not meant tobe a sine qua nOll to the birth of POEA, much less to the validityof the acts of the Board. As a matter of fact. in the same para-graph. the President I~ given the "discretion [to] deSignate aDeputy Administrator as the third member of the Board."

PELAEZ VS. AUDITOR GENERALG.R. No. L-23825, DECEMBER 24, 1965

Section 68 of the Revised Administrative Codeis not complete in itself as it does not state thepolicy to be executed by the delegate, and neither

52 ADMIl\ISTRATI\'E I.AW

doe it fix a .,andard, the limits of which are Buf-ficiently determinate or determinable to which thedelegate must conform. The authority to create mu-nicipalities is one which is essentially legislativein character.

FACTS:

Former President Diosdado Macapagal issued ExecutiveOrders under Section 68 of the Revised Administrauve Code, tocreate thirty-three (33) municipalities. Former Vice PresidentEmmanuel Pelaez contends that Section 68. as aforementioned,is an undue delegation of power and said executive orders aretherefore null and void.

ISSUE:

HELD:

Is Section 68 of the Revised Administrative Code an unduedelegation of power? Can the President of the Philippines issuean executive order under Section 68 of the Revised Administra-tive Code and create a municipality?

Section 68 of the Revised Administrative Code is not com-plete in itself as it does not state the policy to be executed by thedelegate, and neither does it fix a standard, the limits of whichare sufficiently determinate or determinable to which the delegatemust conform.

It is true that the last clause of the said Section providesthat the President "x x xmay change the seat ofgovernment withinany subdivision to such place therein as the public welfare mayrequire," but the phrase "as the public welfare may require" quali-fies, not the clauses preceding the ones just quoted, but only theplace to which the seat of the government may be transferred.

It is true that "public welfare" and "public interest" are suf-ficient standards of a valid delegation of powers, but said casesinvolved grant to administrative officers of powers related to theexercise of their administrative functions which is different fromthe nature of the powers referred to in Section 68.

The authority to create municipalities is one which is essen-tially legislative in character.

1'Ho:QUASI. LEGISLATIVE POWER 53

NOTE: Under Article VI, Section 24 of the 1987 Constitu-lion, all "x x x bills oflocal application" shall originate exclusivelyin the House of Representatives, but the Senate may propose orconcur with amendments. Section 24 provides as follows:

"All appropriat LOll,revenue, or tariff bills, author-izing LncrcafiCof the public debt, bills of local applica-tion, and priuate bills shall ortgtnate exclusively Ln theHouse of Representatives, but the Senate may proposeor concur untk amendments ."

The ruling in Pelaez VB. Auditor General that the authorityto create municipal corporations are essentially legislative in char-acter still applies.

PEOPLE VS. VERA65 PHIL. 56

The prohibition of law does not lay down anyrule or standard to guide the provincial boards inthe exercise of their discretionary power. What iegranted to them is a "roving commi ionn whichenables the provincial boards to exercise arbitrarydiscretion, which thereby amounts to virtual sur-render of legislative power.

FACTS:

In Criminal Case No 42649 entitled People of the Philip-pines vs. Mariano Cu Unjieng, the latter applied for probationunder Art. 4221. However, a petition for certiorari and prohibi-tion was filed by the petitioner in the Supreme Court to prohibitthe CFI of Manila from taking further acnon on the said applica-tion on the ground that said Art. 4221. also known as the Proba-tion Act is unconstitutional being an undue delegation of legisla-tive power.

Section 11 of the said Probation Act, which was challenged,reads as follows: "This Act apply only in those provinces in whichthe respective provincial boards have provided for the salary of aprobation officer at the rates not lower that those provided for

64 ADMINISTRATIVE LAW

provincial fiscals. Said probation officers shall be appointed bythe Secretary of Justice and shall be subject to the discretion ofthe Probation Office.

ISSUE:

ls the . aid Probation Act un con. titutional on ground that itill an undue delegation of officer?

HELD:

The effectivity of the Probation Act i:- dependent on whetheror not the Provincial Board makes the appropriation. In effect,the Provincial Hoards shell exercise the power to determine whenthe said Act shull takl' effect in their respective provinces. Andyet, the law docs not lay down any rule or standard to gUide theprovi ncial bourds ill tho exercise oflhcir discretiona ry power. Whatis grunlld to them is a "roving commission" which enables theprovincial hoards to exercit ('urbltrary discretion, which therebynrnountrng to \ irtunl surrender of legislative power.

In Colalang us. Wtllwm.q, the requirements of public con-venience and welfare were considered as definite standards. hence,there WIlR no undue delegaticn of power,

CALALANG VS. WILLIAMS70 PHIL. 726

P('tilioner's C'onlen/ion that the order of theDPWH N'/larding the closure of certain po