Administrative Law and Agencies

• Administrative Law regulates the administrative organization and operations of the government through administrative agencies (AAs).

Classifications of Administrative Law:

• Internal and External Administration
• Laws that Control (Charter) and those issued by Administrative Agencies (Rules)
• Substantive and Procedural Administrative Law
• General and Special Administrative Law
• Geographical and Functional Jurisdiction

Administrative Agencies (AAs)

• AAs exercise executive, legislative, or judicial powers, referred to as the "4th Branch."
• All AAs are Public Offices and "Delegates," including boards, commissions, departments, bureaus, offices, authorities, government corporations, instrumentalities, and local governments.
• They address complex, diverse, and specialized concerns

Creation of AAs

• Constitution
• Congress (Special Law-Chartered): GOCCs economically viable and common good; LGUs law then plebiscite)
• President (Executive Order): Authority under the Constitution or law
• Supreme Court: Classifies; confirms; invalidates
• AAs themselves: Articles of Incorporation and ByLaws; by authority of law; non-chartered.
• Local Governments: Ordinance; by authority of law

Charter (Enabling Instrument)

• Name
• Principles
• Mandate/ Purpose
• Powers
• Duties and Responsibilities
• Relationships
• Jurisdiction (can provide exclusions)
• Structure
• Budget
• Dissolution

Characteristics of AAs

• Size
• Specialization/ Functions
• Territory
• Responsibility for Results
• Administrative Duties
• Delegated Authorities
• Accountability
• Relationships
• Capitalization/ Funding (Stocks, if any)

Categories of AAs

• Creation
• Constitution
• Congress
• Executive
• AA themselves
• Geographical
• National: NGAS
• Local: LGUS
• Capital Structure
• GOCC
• GI
• Functional
• Offers gratuities, grants or privileges
• Performs Specific governmental functions
• Undertakes public service
• Regulates businesses affected with public interest
• Exercises police power to regulate private businesses or Resolves controversies

Government Bureaucracy

• Administrative Agency/ Government Agency
• Government-Owned and Controlled Corporation
• special charter/parent
• non-chartered under Corporation Code/ subsidiary
• Government Instrumentality with Corporate Powers
• Government Financial Institution
• State Universities and Colleges
• Public Office
• Public Corporation
• National Government Agency
• Quasi-Corporation
• Quasi-Public Corporation
• Municipal Corporation Proper/ Local Government Unit
• Quasi-Municipal Corporation

GOCC vs. GICP

GOCC

• Organized as stock or nonstock corporation
• Created by law or under Corporation Code
• Public character of its function
• Government directly or indirectly owns or controls at least a majority or 51% share of the capital stock
• Created for common good and must be economically viable

GICP

• Neither stock nor non-stock
• Not a corporation
• Created by law only (not under Corporation Code)
• Agency of the national government
• Not integrated within the department framework
• Vested with special functions or jurisdiction by law
• Endowed with some if not all corporate powers
• Administering special funds
• Enjoying operational autonomy
• Need not be economically viable

Recent Examples of AA Classifications:

• Manila International Airport Authority: GI, created under an Executive Order, not a GOCC since neither stock nor non-stock
• Phl Society for the Prevention of Cruelty to Animals: Quasi-Public Corporation (Private), not subject to COA
• Manila Economic and Cultural Office (Not GOCC; Not GI): Non-stock corporation. Not a GOCC (not owned by Government). Not a GI (since incorporated under Corporation Code). Sui Generis Funds Subject to COA
• Boy Scouts of the Philippines (GI and GOCC): Corporation under Special Law (Commonwealth Act). GOCC and GI attached agency; need not meet twin test (economic viability and control/ ownership test) - Sui Generis
• Veterans Federation of the Philippines (GOCC): Created under RA 2640 and registered with the SEC: Classified as GOCC to be privatized Sovereign functions; Control and Supervision of DND
• Philippine Fisheries Dev't Authority (GI): Created under PD 977 GI; not a GOCC (has capital stock, but not divided into shares)
• Leyte Metropolitan Water District (GOCC): Created pursuant to PD 198 GOCC with an original charter (since not under Corporation Code, not a private corporation). Quasi-Public under Charter
• Philippine Economic Zone Authority (GI): GI since not integrated within the department framework but is an agency attached to the DTI
• Philippine Reclamation Authority (GI): GI Not a GOCC since not a stock nor a non-stock corporation. Not a GOCC since while established for common good, it need not meet test of economic viability nor compete in market place
• Metropolitan Waterworks and Sewerage System (GI; "GOCC"): GI under Executive (EO 596-2006) and Legislative (GCG Law). By its nature, it is a GOCC, meets common good and economic viability tests
• Bureau of Local Government: Not an AA whose findings on questions of fact are given weight and deference in the courts
• Finance (DOF): consultative services and technical assistance to LGUs
• Bases Conversion Development Authority (GI): As GI, exempt from paying legal or docket fees & Creditable Withholding Tax on the sale of its properties
• Corregidor Foundation (GOCC): Non-stock corporation organized under Corporation Code. Government has substantial participation in selection of governing board
• University of the Philippines (GI): GI under its Charter Tax exemption pertains to assets owned by UP (not extend to assets owned by lessee of UP land)
• Philippine International Convention Center (GOCC): Incorporated under PD 520; sole stockholder is Bangko Sentral ng Pilipinas/ Subject to COA
• Philippine National Construction Corporation (GOCC): GOCC under supervision of President Subject to COA

Rules Governing AA Classifications:

• All AAs are POs, but not all POs are AAs (e.g., Congress, Courts)
• All AAs are GAs, and all GAs are AAs (under GCG Act)
• All PCs are AAs, but not all AAs are PCs (e.g., Departments, GIs, and Commissions)
• GOCCs are Corporations, but GIs are not; GOCCs cannot be GIs (except BSP)
• GOCCs, not GIs, must meet twin constitutional test of common good and economic viability
• There are chartered (special law) and non-chartered GOCCs (Corporation Code)
• All Quasi-Corporations are GOCCs, and All GOCCs are Quasi-Corporations; GIs are not QCs since they are not corporations

GOCC-GI Distinction Matters:

• Local taxation :GIs exempt
• Legal/ docket fees: GIs exempt
• COA jurisdiction
• Relationship: attachment, control or supervision

Administrative Relationship

• Areas: policies, rules, actions, operations, budget, decisions, day-to-day, policy and program coordination
• Types:
• Independent/ Autonomous
• Control and Supervision
• Administrative Supervision
• Attachment

Powers of Administrative Agencies

• Possess Delegated, not Inherent, Powers
• Subordinate, not Superior to, Enabling Instrument/ Charter, Laws (set boundaries/ limit powers/ define jurisdiction); law prevails over rules in conflict
• Liberal, not strict, interpretation of powers
• AAs cannot prohibit what law does not prohibit (unless LGU, provided no law is violated)

Basic Powers

• Investigative
• Rule-Making or Quasi-Legislative
• Adjudicative or Quasi-Judicial

Delegation of Powers

• Potestas delegata non potest delegari

Exceptions

• President - tariff and emergency
• Local Governments
• People's Initiative
• Administrative Agencies

Test of Valid Delegation

• Completeness: the 'what', rights
• Sufficient Standards: public order, safety, social justice, etc

Twin Tests of Valid Delegation

Completeness:

• Policy to be executed by the delegate (delegate will just enforce)

Sufficient Standards:

• Adequate guidelines or limitations to map out the boundaries of the delegate's authority

Law vs. Rules

• LAW

• Why of law (purpose/policy)?

• Who covered (not covered)

• What are: Scope, Boundaries, Limitations, Classes, Categories, Acts, Rights, Duties, Responsibilities, Obligations, Requirements, Standards, Conditions, Offenses & Penalties?

• When take effect

• RULE

• How implemented?

• What are details?

• When statutory provisions become operative

Must Be Express in Enabling Law

• General
• "What" law is
• Relationship
• Prohibitory Powers
• Jurisdiction

Sub-Categories

• Investigation
• Contempt
• Subpoena
• Search and Seizure
• Quasi-Legislation
• Contingent Rule
• Penal Rule
• Quasi-Judicial

Rule-Making

• Definition: Power to Issue Rules/Fill in details/ 'How' a Law will be implemented.
• Nature:Inferior/must not be inconsistent with the Constitution, Laws and Charter.
• Rationale: Regulation: highly complex, future situations cannot be fully anticipated, practicability, expediency and expertise.

Rules on Rule-Making

• Executive in nature
• Rules partake of the nature of a statue
• Force and effect of law (but are not laws)
• Germane to the objects of the law
• By authority of law
• Issued by proper issuer
• Interpretations persuasive
• Presumed legal, valid and constitutional
• Notice and hearing not required (unless law requires and material change)
• Mandatory to issue rules if shall used in enabling law
• Pass reasonable test
• Operative effect
• Must be followed by other AAs; cannot postpone the application
• Rules of an AA may be used as basis for rules of another AA
• Subject to judicial review unless business judgment

Essential questions/ definitions of powers

1. authority
2. nature
3. substance
4. scope
5. procedure
6. issuer
7. Standard:

"Rule"

Six (6) Rules

• Supplementary:Supplies the details, implements and supplements the law
• Procedural: Outlines the procedures and proceedings
• Contingent: Determines the existence of a fact which operationalizes said statutory provision
• Penal: Provides for the conditions and penalties for the violation of rules

Types of Rules

• Supplementary: Expands on how to implement
• Interpretative: States official opinion
• Internal: Governs AA's.

Ordinance Rule-Making Powers

1. Executive Order
2. Administrative Order
3. Proclamation
4. Memorandum Order
5. Memorandum Circular
6. General or Special Order

Essential questions/ definitions of powers

1. Territorial Application
2. Sanggunian-enacted
3. The process must also follow the local
4. Ordinances and
5. Resolutions

Rule-Making Valid Exercise

• AA decision final after 15 days - Appeal to OP within 30 days
• Procedure allowed but silent on period
• Provide for 60 days
• Control and supervision - Require reports
• DAD to CA -DAR to CA ###Rule-Making Invalid Exercise a. Exclusive authority to investigate and withholds right to examine and cross examine b. Prescribe competition a. Increasing rates for all publilc utility buses application for rate increase by a particualr public utility carrier

Quasi-Judicial Power

• Definition Definition: Deciding controversies, resolving conflicting claims and positions