Administrative Law Reviewer (Atty. Chan Gonzaga) PDF

ADMINISTRATIVE LAW – Atty. Chan-Gonzaga/Dean Roy II-D 2003-2004 ADMINISTRATIVE LAW Emphasis is to the Emphasis of the law is problems of admin...

ADMINISTRATIVE LAW – Atty. Chan-Gonzaga/Dean Roy II-D 2003-2004 ADMINISTRATIVE LAW Emphasis is to the Emphasis of the law is problems of administrative made on the organization, Source: ADMINISTRATIVE LAW: A Text, Neptali regulation rather than operation and management Gonzales administrative of the different branches of management. gov’t and on their CHAPTER I relations INTRODUCTION  If the relation is between the admin agencies and the individuals affected by the exercise What is administrative law? of their rule-making or adjudicatory  The author adopts this definition: activities, this is covered by admin law.  In a narrower sense and as commonly used today, this is the branch of modern law Administrative Law v. Constitutional Law under which the executive department of the Admin law Constitutional Law gov’t, acting in a quasi-legislative or quasi- Provides the details which Provides the framework of judicial capacity, interferes with the conduct give the skeleton structure governmental organization of the individual for the purposes of the characteristics of a promoting the well-being of the community. finished whole. (Dean Roscoe Pound) Lays down the secondary Lays down the general rules w/c limit and qualify rules of gov’t which are  Embraces all the law that controls, or is intended to control, the administrative operations of or expand and amplify the fundamental and w/o w/c gov’t, and includes the law: general precepts laid down no gov’t org can survive  W/c provides the structure of gov’t & by consti to be understood prescribes the procedure and applied to the needs of  It does NOT include the substantive law w/c layman citizens. administration is supposed to apply. Treats relations of gov’t Treats of the relations of with individual from the the gov’t with individual  In modern usage, it is concerned with the legal standpoint of the powers of from the latter’s standpoint. problem arising out of the existence of agencies gov’t. which combine in a single entity legislative, Lays emphasis on duties Lays stress upon rights executive and judicial powers which, in our system of law were traditionally kept separate.  Admin law complements consti insofar as it  Justice Frankfurter - field of control determines the rules of law relative to the exercised by law-administering agencies activity of the admin authorities. other than courts, and the field of control exercised by courts over them.  It supplements consti law insofar as it regulates the admin org of the gov’t.  Part of the public law which fixes the organization and determines the competence of Administrative Law v. Penal Law administrative authorities and indicates to the Admin law Penal Law individual remedies for the violation of his Penal sanctions for the Consists of a body of penal rights. (Goodnow) purpose of enforcing a rule sanctions w/c are applied to of admin law w/c is the ALL branches of the law,  It is the system of legal principles which settle most common and efficient including admin law. the conflicting claims of executive and means to enforce such administrative authority on the one side, and of admin law. individual or private rights on the other. (Freund)  Mere affixing of a penalty to the violation of a rule of admin law does not deprive it of its  Law concerning the powers and procedures of administrative character. administrative agencies including specially the law governing judicial review of administrative action. (Prof. Kenneth Culp Davis, this is the well accepted concept of admin law) Administrative Law v. International Law Distinguish Administrative Law from other Admin law International Law Disciplines Lays down the rules w/c Cannot be regarded as shall guide the officers of binding upon the officers Administrative Law v. Law of Public Admin Admin law Law of Public Admin the administration in their of any gov’t considered in actions as agents of the their relation to their own Rhys Alexei Y. Murillo Page 1 of 45 ADMINISTRATIVE LAW – Atty. Chan-Gonzaga/Dean Roy II-D 2003-2004 actions as agents of the their relation to their own 1) Body of statutes which sets up admin agencies gov’t. gov’t. and endows them with powers and duties. 2) Body of rules, regulations, and orders issued by EXCEPT: insofar as it has admin agencies. 3) Body of determinations, decisions and orders of been adopted into the such admin authorities made in the settlement of admin law of the state. controversies arising in their respective fields. 4) Body of doctrines and decisions dealing with the  For Phil. Gov’t officers to be bound by creation, operation and effect of determinations mandates of international law, the and regulations of such admin agencies. Legislature must adopt such principles and translate it into Philippine law. How did Administrative Law Grow and Develop?  Origin is legislation and proceeds from the Is Administrative Law a General or Specific increased functions of government. Law?  The multiplication of subjects of gov’t  It is both. regulations and the increased difficulty of  General Admin Law – is that which is administering laws became one of the causes common to all or to many different types of for its development. admin agencies. (subj matter of the author’s book)  In order to enable admin agencies to perform their functions efficiently and effectively, the  Special Admin Law – law which is provided legislature has granted to them the power to for and derived from the activity of a adjudicate on cases arising within the scope of particular admin agency. their activities.  Proceeds from a particular statute or ordinance creating the individual  The Phil used to be under the economic agency. principle of laissez fair (let live alone)  Applies only to such agency.  Ang Tibay v. CIR  Policy of laissez faire has to some extent What are the Kinds of Administrative Law? given way to assumption by the gov’t of 1) Statutes setting up admin authorities either by: the right of intervention in contractual  creating boards, commissions, and admin relations that are affected with public officers or interest.  confiding the powers and duties to existing boards, commission or officers to:  Gov’t has gone into the control & amplify, regulation of banking, insurance, public execute, utilities, foreign exchange, finance, supervise the operations of, and industry, the professions, health, morals determine controversies arising under and labor-management relations. particular laws in the enactment of which the legislature decided for matters  Admin law deals pre-eminently with law in the of convenience or for quicker or more making, and its growth is traced to its: efficient administration to withhold the  Adjustability to change, controversies, at least in the first  Flexibility in the light of experience, instance, from the courts of law.  Swiftness in meeting new emergency situations, and 2) Rules, regulations or orders of such  Efficiency and expertise. administrative authorities enacted and promulgated in pursuance of the purposes for What is the reason for the development of Admin which they were created or endowed. Law?  It arises out of Necessity. The existence and 3) Determinations, decisions and orders of such powers proceed from: admin authorities made in the settlement of  Increased function of gov’t controversies arising in their particular fields  Complexity of modern social, economic, and industrial systems, 4) Body of Doctrines and decisions dealing with  Inability of legis or courts to perform their the creation, operation, and effect of functions directly determinations and regulations of such admin  Necessity for constant supervision by authorities. experts and specialists and the experience acquired by such specialist in difficult and What is the scope of Administrative Law? complicated fields Rhys Alexei Y. Murillo Page 2 of 45 ADMINISTRATIVE LAW – Atty. Chan-Gonzaga/Dean Roy II-D 2003-2004  Flexibility which is the mark of admin 3) Determinations whether the administrative or process in contrast to leg or judicial process. judicial process provides the appropriate remedy in a particular situation. What is the relation of Administrative law to Traditional Law?  In all of these areas, particularly in regard to the  Admin law embraces elements hostile to constitutional rights of persons, the judicial traditional law and regarded as subversive of the process aims to provide security and safeguards “rule of law”. where expediency is served by the expertise and absence of rigidity in the admin process.  Law and administration are to some extent antagonistic institutions of the government. What is the Nature of Administration?  Administration may be viewed either as a  Legislature have: function or as an organization.  Entrusted protection of interests to admin agencies rather than to courts (remember What is Administation as a function? legis has power to apportion court  It is the execution, in non-judicial matters, of jurisdiction, w/ exceptions of course) the law or will of the state as expressed by the competent authority. It is the activity of the  Established admin agencies as very impt. executive officers of the gov’t taken in this tribunals in the administration of justice, narrow but proper sense. making decisions sometimes of vast importance and equal to matters determined  It is the government in action as opposed to by courts. deliberation of the rendering of judicial decision and can be found in all the manifestations of  Although admin agencies strictly speaking are executive action. not courts, their creation involves the emergence of a new system of courts in a broad sense no  This has to do with carrying the laws into effect less significant than the evolution of chancery. – their application to the current affairs by way of management and oversight, including What is the role of the Courts in relation to investigation, regulation and control, in Admin Agencies? accordance with and in execution of the  Role of Courts is to: principles prescribed by the lawmaker.  Accommodate administrative process to the traditional judicial system, What is Administration as an Organization?  Accommodate private rights and public  It is that group of aggregate persons in whose interest in the powers reposed in admin hands, the reigns of government are for the time agencies, and being.  Reconcile in the fields of admin action, democratic safeguards & standards of fair  Indicates the entire administrative organization play with the effective conduct of extending down from the Pres to the most government (that is why they can review humble of his subordinates. It is the totality of admin decisions in cases of GADALEJ) the executive and administrative authorities. What are the important aspects of judicial role & Distinguish between Administration and Politics the search for accommodation? Administation Politics 1) The determinations by the courts of the degree Execution of the policies Policies and expressions of to which admin agencies may be left free to act and expressions of the state the state will in their own discretion w/o the declaration of will standards for such action by the legislature. Subjected to the control of Primary function is the 2) The extent to which the courts will: politics expression of the state will,  Require in quasi-judicial procedure which with a 2ndary function of approaches that of courts execution of such will.  Refrain from interference with the admin process Distinguish between Administration and Law  Be restricted from passing upon the legality Administration Law or correctness of the action taken by the Achieves public security by Operates by redress or admin agency preventive measures, and punishment rather than  Review, enforce, or provide relief from, selects a hierarchy of prevention. It formulates action of an administrative agencies officials to each of whom general rules of action and definite work is assigned. visits infractions with penalties. Rhys Alexei Y. Murillo Page 3 of 45 ADMINISTRATIVE LAW – Atty. Chan-Gonzaga/Dean Roy II-D 2003-2004 penalties. the application of rules of a rigid and permanent Supervises the action. It leaves individuals free to character. act, but imposes pains upon What are the recognized weakness and criticisms those who do not act in against Administrative action? accordance with the  Sometimes referred to as the “fourth branch of principles described. gov’t” is attacked as a government of discretion Governed by the ends Safeguards against and is open to potential abuse and arbitrariness. rather than the rules and is ignorance, caprices or (Justice Frankfurter) personal, often arbitrary corruption of magistrates and subject to abuses. and is impersonal. 1) Tendency towards arbitrariness; If well exercise, it is Is not quick enough or 2) Lack of legal knowledge and aptitude in sound extremely efficient, more automatic enough to meet judicial technique efficient than the rival the requirements of a 3) Susceptibility to political bias or pressure often agency can be. complex social brought about by uncertainty of tenure and lack of sufficient safeguards for independence; organization. 4) Disregard for the safeguards that insure a full ad fair hearing; Admin of Gov’t v. Admin of Justice 5) Absence of standard rules of procedure suitable Administration of Administration of to the activities of each agency; Gov’t Justice 6) A dangerous combination of legislative, Officers are called Officers are called Judicial executive and judicial functions Administrative Officers Officers Work done is NOT Work consists in the What are the other kinds of Administration? necessarily the result of decision of controversies  Administration is of two kinds: internal and any controversy, and is not between individuals and external. merely dependent on the government officers as to solution of the question the applicability in the “what is the law” but made cases in question of a as a result of consideration particular rule of law. External v. Internal Administration. of expediency. External Internal Determination of won they Determination of what law Administration Administration are competent to act, and is applicable to the facts set Deals with relations Considers the legal aspects must also decide (in case before them between administrative of public administration in they are competent to act) agencies and individuals its institutional side, that is if it is wise for them to act. affected by their quasi- a going concern legislative and quasi- What are the advantages of Administrative judicial activities. Includes the legal structure Action Over Both Legislative and Judicial Action 1) Regulation by gov’t opens a way for action to be or organization of public taken in the public interest to prevent future administration, and the harm where there would be no assurance that legal aspects of any action would be taken if initiative were left institutional activities. wholly to interested individuals. Also involves the legal 2) It provides for action that will be prompt and qualifications for office, preventive, rather than merely remedial, and will disqualifications, be based on technical knowledge, which would appointments, etc. not be available if it were taken through the Deals with the relations of Concerned with the ordinary courts of law. the administration or its relations of officers with 3) It ensures that the action taken will have regard officers with private each other or with the for the interests of the general public in a way individuals administration itself not possible if it were only the outcome of a Concerned with problems Concerned with the controversy between private parties to a law suit. of administrative regulation problems of administrative management 4) It permits the flexibility of rules for the This is the subject matter of Roughly includes the prevention of socially hurtful, based on Administrative law in its subjects covered in the discretion, and makes possible the introduction modern and narrower Law of Public Officers of order in fields, not advantageously admitting sense. Rhys Alexei Y. Murillo Page 4 of 45 ADMINISTRATIVE LAW – Atty. Chan-Gonzaga/Dean Roy II-D 2003-2004 What is Administrative Law in the Philippine What are some limitations of Admin agencies Setting? acting as a court?  Administrative regulation of private activities  Administrative agencies: was originally undertaken through regular  CANNOT exercise PURELY judicial departments of the executive branch. functions,  Do NOT have the inherent powers of a  There is an increasing use of regulatory agencies court, specially created to carry out the legislative  Are NOT bound in their proceedings by all policy regulating specified activities. These the rules applicable to proceeding in court. agencies are given powers to promulgate rules and regulations implementing statutes and to What are other natures of Admin agencies? adjudicate controversies arising therefrom.  Some are deemed to be agents of the legislative branch of the government and not of the  executive branch. CHAPTER II  Some on the other hand are deemed as agents of CREATION, ESTABLISHMENT AND the executive, or described as “executive or ABOLITION OF ADMINISTRATIVE administrative” agencies. AGENCIES  Some are bodies corporate with legal capacity to What is the nature (in General) of Administrative sue and be sued in the courts and were held to Agencies? constitute legal entities with perpetual existence  Admin agency is an indefinite and generic term apart from their members. and covers boards, commission, departments and divisions and somewhat less familiar  Others are without independent existence but are designations of “office” and “authority”. It may merely regarded as instrumentalities of the even cover a single officer. government or political divisions thereof.  Used to describe an agency exercising some What is an Administrative Agency? significant combinations of executive,  It is an organ of government, other than a court legislative, and judicial powers. and other than a legislature, which affects the rights of private parties through either  Some assert that “administrative” is the 4th adjudication or rule making. power of gov’t. Viewed from the standpoint of any particular act of the agency:  It may be called a commission, board, bureau,  It is either executive or in the narrowest office administrator, department, authority, sense administrative, or legislative, or corporation, administration, division or agency. judicial, or, How are administrative agencies Created?  To distinguish it from organs which are They are created whether individual or purely or essentially legislative or judicial, institutional by: quasi-legislative or quasi-judicial. 1) Constitutional Provisions  E.g.: CSC, COMELEC, COA  Some partake of the nature of public agencies acting in the public interests, and their 2) Legislature in legislative enactments jurisdiction is dependent upon the existence of a  E.g. : Bureau of Customs, BIR, NLTC, public interest, since they are not tribunals for PRC, Court of Agrarian Relations, Phil. the enforcement of private rights. Patent Office, SEC, Board of Transportation, Social Security  Mere fact that a statute setting up a commission, Commission, BSP, National Grains does not itself render the commission a court Authority even if:  The rules of procedure adopted by such 3) Authority of law commission provide a mode of procedure  Under various gov’t reorganization acts, the conforming in many respects to the regular President and the Gov’t Survey and practice of the court, or Reorganization Commission had been authorized and had in fact created  The commission possess or exercises administrative offices and agencies in the powers and functions resembling those course of the reorganization of the executive exercised by the courts branch of the gov’t. Rhys Alexei Y. Murillo Page 5 of 45 ADMINISTRATIVE LAW – Atty. Chan-Gonzaga/Dean Roy II-D 2003-2004  E.g.: defunct Board of Tax Appeals and What is the degree of Control of the Legislature Regional Offices of the DOLE. over Administrative Agencies?  Legislative power over admin agencies is very What are the Purposes of Administrative broad, it is the legislative branch that: Agencies?  Promulgates the general policy 1) To dispense certain privileges accorded by the  Creates the agency to administer it if none is govt; already in existence for the purpose 2) To carry on governmental business or functions;  Prescribes the mode of appointment, the 3) To carry on or undertake some business service term of office and compensation; for the public;  Fixes its authority and procedure; 4) To regulate certain public callings or business  Determines the size of its personnel and affected with public interest; staff; 5) To promote the general welfare through police  Exercises continuing surveillance over its regulations activities; 6) To determine rights of individuals in certain  May investigate its operations for remedial cases where a strong social policy is involved. or corrective legislation What are Common Types of Administrative  Legislature is more and more in favor of Agencies? enacting statutes in broad and general wording 1) Agencies created in situations wherein the and leaving details thereof to administrative government is offering some gratuity, grant, or agencies to fill by rules, orders, regulations and special privilege the like.  E.g.: Phil. Veterans board (defunct), Board on pensions for Veterans, NARRA, How are Administrative Agencies Reorganized Philippine Veterans Administration and Abolished?  Experimentation is frequent in the field of 2) Agencies set up to function in situations wherein administration, and particular admin agencies the gov’t is seeking to carry on certain gov’t are sometimes: functions.  Abolished and new ones created embodying  E.g.: Bureau of Immigration, BIR, Board of the fruits of experience; Special Inquiry, Board of Commissioners,  Reorganized or their functions transferred to CSC, BSP other agencies. 3) Agencies set up to function in situations wherein  Congress has at various times vested powers in the gov’t is performing some business service for the President to reorganize executive agencies the public and redistribute functions and the transfers made  E.g.: Bureau of Posts, Postal Savings Bank, under such are held by the SC to be within the MWSS, Phil National Railways, Civil authority of President. Aeronautics Administration  Any doubt as to the authority granted to the 4) Agencies set up to function in situations wherein President and the due exercise thereof, is the gov’t is seeking to regulate business affected determined by congressional approval and with public interests ratification in subsequently recognizing the  E.g.: Fiber Inspection Board, Phil Patent validity of the transfer by making appropriations Office, Office of the Insurance for the purpose of carrying out the transferred Commissioner function. 5) Agencies set up to function in situations wherein  Constitutionally created admin agencies cannot the gov’t is seeking under the police power to be abolished by statute, while admin agencies regulate private business and individuals created by statute or through the authority of a  E.g.: SEC, Board of Food Inspectors, statute may be validly abolished and reorganized MTRCB, PRC by the legislature. 6) Agencies set up to function in situations wherein  the gov’t is seeking to adjust individual controversies because of some strong social CHAPTER III policy involved ADMINISTRATIVE AGENCIES AND THE  E.g.: NLRC, Court of Agrarian Relations, PRINCIPLES OF SEPARATION AND the Regional Offices of DOLE, the Social NON-DELEGATION OF POWERS Security Commission, Bureau of Labor Standards, Women and Minors Bureau. Rhys Alexei Y. Murillo Page 6 of 45 ADMINISTRATIVE LAW – Atty. Chan-Gonzaga/Dean Roy II-D 2003-2004 What are the three broad segments of the study  It originated from glossators, of Administrative Law? 1) Transfer of power from the legislature to  Was introduced into the English law through administrative agencies; the misreading of Bracton, and it developed 2) Exercise of such delegated powers by these as a principle of agency, as established by agencies; Lord Coke in the English public law in 3) Review of such administrative actions by the decisions forbidding the delegation of courts judicial power. In general, how are the principles of separation  It found its way into America as an and non-delegation of powers applied in admin enlightened principle of free gov’t and has agencies? become an accepted corollary of the  Laws enacted by the legislature prescribing the principle of Separation of Powers. powers and functions of administrative agencies must respect constitutional limitations. What is the ethical basis for the Rule?  Based on the principle of potestas delegate non  It is important to determine whether the transfer potest delegari violates constitutional inhibitions since admin  A delegated power constitutes not only a agencies are usually vested rule-making and right but a duty to be performed by the adjudicatory powers similar to legislative and delegate by the instrumentality of his own judicial powers. judgment and not through the intervening mind of another. What are the most common limitations imposed by the constitution?  According to Judge Cooley  Constitutional principles of separation of powers  One of the settled maxims in consti law is and non-delegability of powers. that the power conferred upon the legislature  Prohibits the delegation of legislative power, to make laws cannot be delegated by that the vesting of judicial officers with non- department to any other body or authority. judicial functions, as well as the investing of non-judicial officers with judicial powers.  Where the sovereign power of the state has located the authority, it must remain there,  It is for these reasons that the principles of and by that constitutional agency alone the separation and non-delegation of powers are laws must be made until the Consti is intertwined with the 1st & 3rd segments in the changed. study of admin law.  The power to whose judgment, wisdom, and What is the effect of the emergence of patriotism this high prerogative has been administrative agencies in the execution of laws entrusted cannot relieve itself of the and promulgation of rules and regulations? responsibility by choosing other agencies  It has to a large extent, relaxed the rigidity of the upon which the power shall be devolved, nor theory of separation of powers by permitting the can it substitute the judgment, wisdom and delegation of greater power by the legislature patriotism of another body for those to w/c and vesting a large amount of discretion in the people alone have seen fit to confide this administrative and executive officials sovereign trust. What is the Rule of Non-Delegation of Powers? What is the applicability of this Rule to  No department of the gov’t (legis, exec & Legislative Power? judiciary) can abdicate authority or escape  The rule is applicable to all 3 departments, but responsibility by delegating any of its power to has found greater persistent application to the another body. prohibition against the delegation of legislative power.  EXCEPT: when such delegation is authorized by Consti.  According to Locke:  Legislative neither must nor can transfer the  EFFECT of delegation: It is VOID under the power of making laws to anybody else, or maxim of potestas delegate non potest delagari place it anywhere but where the people have. What is the origin of the Rule of Non-Delegation of Powers?  Rule against delegation of legislative power is  This rule is wholly judge-made. fixed and unalterable, not depending upon the  Justice Laurel in People v. Vera gave the origin existence of an emergency. as follows: Rhys Alexei Y. Murillo Page 7 of 45 ADMINISTRATIVE LAW – Atty. Chan-Gonzaga/Dean Roy II-D 2003-2004  Unconstitutional delegation of power is n o t 5) Delegation of power to ascertain facts, validated by the establishment of: contingencies, or events upon which the  Procedural safeguards; applicability or non-applicability of a law is  Right of judicial review; or made to depend;  Assumption that the officer acts and will 6) Delegation of powers to the people at large, act for the public good. when such has been reserved in the Constitution; 7) Delegation of power to the executive in the field Is the prohibition provided by the Rule absolute? of foreign or international relations.  The rule does not embrace every power the legislature may properly exercise. * Note: Strictly speaking there are only two  Any power NOT legislative in character instances of permissible delegation that is nos. 1&2, which the legislature may exercise, it may exceptions no. 3-7 are exceptions in a broader sense. delegate. What are permissible delegations under the  What the rule precludes is the: Constitution? (1) Delegation of powers which are strictly and exclusively legislative; and  1973 Constitution, Art. VIII, Secs. 15 & 17(2) [these are now contained in Art. VI, Sec. 23(2) (2) The legislature’s abdication of its own & 28(2) of the 1987 Consti respectively] power and the conferring of such power upon an administrative agency to be In times of war or other national emergency, the exercised in its uncontrolled discretion. Nat’l Assembly (now Congress) may by law authorize the Prime Minister (now President), for a limited  Supreme essential power that the legis period and subject to such restrictions as it may CANNOT delegate is the power to make law, at prescribe, to exercise powers necessary and proper to least purely substantive law.  Legislature can’t delegate to admin agencies carry out a declared national policy. Unless sooner the determination of: withdrawn by resolution of the Nat’l Assembly, such  What the law shall be powers shall cease upon its next adjournment.  Whom it may be applied  What acts are necessary to effectuate the The national assembly may by law authorize the law. Prime Minister to fix within specified limits, and subject to such limitations and restrictions as it may  The essentials of the legislative function are: impose, tariff rates, import and export quotas, tonnage  The determination of the legislative and wharfage dues, and other duties and imposts. policy; and  The formulation and promulgation as a  In the Emergency Powers Cases, the SC defined and binding rule of conduct. interpreted Sec. 22(2) of 1935 Consti and ruled: (stated otherwise, it is the determination of the legislative policy and legislative  The grant of emergency powers to the approval of a rule of conduct to carry that President in times of war or any other policy into execution.) national emergency should be for a “limited period”. And such powers are  Consti has never been regarded as denying to the  Self-liquidating in nature legislature the necessary resources of flexibility  Co-extensive and co-existent with the and practicality to perform its functions. emergency w/c gave rise to the grant thereof.  The legislature may delegate to an administrative agency the exercise of a  When Congress is able to meet and regularly limited portion of its legislative power with perform other duties under the Constitution, respect to some specified subject matter. an automatical extinction of the law delegating such emergency powers results. What are the exceptions to non-delegation of powers by legis?  In one case, Justice Padilla (concurring 1) When permitted by the Constitution itself;* opinion) said that: 2) In case of delegation of legislative powers to  To withdraw, terminate or revoke the local gov’ts* delegation of legislative powers to the 3) Delegation of the power to “fill in” details; President, a concurrent resolution 4) Delegation of rule-making and adjudicatory would be sufficient. powers to admin bodies, PROVIDED, ascertainable standards are set; Rhys Alexei Y. Murillo Page 8 of 45 ADMINISTRATIVE LAW – Atty. Chan-Gonzaga/Dean Roy II-D 2003-2004  The concurrence of the President is  Congress is empowered to delegate this superfluous and unnecessary. legislative power to such agencies in the territories it may select.  After Congress had made that  A territory stands in the same relation to declaration that the President would no Congress as a municipality or city to a state longer exercise the legislative powers government. delegated to him, it partook of a complete and absolute revocation of the What are the powers usually delegated to Local delegation of such powers. governments? 1) Part of Police Power of the state  A bill w/c Congress passed revoking 2) Power of Taxation emergency powers granted by the 3) Power of Eminent Domain President cannot be vetoed by the latter, 4) Creation of Municipal Offices and even if vetoed, such bill may at least 5) Establishment of Municipal hospitals, asylums, be considered as a concurrent resolution poor-houses and other charitable institutions; of Congress formally declaring the 6) Franchises to use municipal streets termination of the emergency powers. 7) Incurring of Municipal Indebtedness (CJ Paras, ponente) 8) Municipal Licenses for Occupations/Privileges 9) Ownership of Public Utilities  Sec. 15 of 1973 Consti (see left) solved the 10) Regulation and Control over Streets problem by providing that the Nat’l Assembly 11) Special Assessments and others. (Congress) need not pass a bill repealing a statute granting emergency powers and may be What is the exception of Delegation of Power to withdrawn by mere resolution. “Fill Up” Details?  If not withdrawn sooner by a resolution,  Matters of detail may be left by the legislature to such powers cease upon the next be filled by rules and regulations to be adopted adjournment of Congress. or promulgated by executive officers and administrative boards.  In cases of authority of President to fix tariff  Legislature may only make a general rates, etc., Sec. 17, of 1973 Consti provides that provision and give powers to those who are the delegated power must be exercised “within to act under such general provision to fill up specified limits” and “subject to such limitations the details. and restrictions as it may impose” to prevent a wholesale abdication of authority by the  This is the subsidiary power to fill up the details legislature. or to find facts to carry the legislative declared policies into effect.  The max and min should be fixed by law  Congress may declare its will, and after and the authority granted to Pres must be fixing a primary standard, devolve upon exercised within these limits. administrative officers, the “power to fill up the details’ by prescribing administrative rules and regulations. What is the exception of Delegation of Powers to What is the exception of Delegations of Powers to Local Gov’ts? Admin Bodies?  Rule is sanctioned by the practice that delegation  With the increasing complexities of modern life, to local authorities does not transgress the it was found that neither the legislature nor the principle of non-delegation. courts were equipped to administer the laws.  Local affairs shall be managed by local authorities and general affairs by the central  Legislature is not always in session and can authority. agree only on general policies but not on matters of detail.  The creation of municipalities exercising  There is also a danger that too detailed local self-government has never been held to control and regulation on the part of the trench upon the rule and is not regarded as a statute creating admin bodies may hamper transfer of general legislative power but their efficiency and render them impotent in rather as the grant of authority to prescribe: the face of changing conditions.  Local regulations accdg. to immemorial practice  To enable admin agencies to achieve their  Subject to the interposition of the functions efficiently and effectively, the superior cases of necessity. legislature has granted to them the power to adjudicate on cases arising w/n the scope of their activities. Rhys Alexei Y. Murillo Page 9 of 45 ADMINISTRATIVE LAW – Atty. Chan-Gonzaga/Dean Roy II-D 2003-2004 state of things upon which the law makes, or  SC has constantly held that there is no undue intends to make, its own action to depend. delegation of powers to admin agencies so long as the legislature:  There are many things upon which wise and (1) Lays down a policy useful legislation must depend which cannot (2) Provides a standard by which an be known to the lawmaking power, and administrative body may be guided. must, therefore, be a subject to inquiry and determination outside the halls of  While it is “not necessary that Congress supply legislation. administrative officials with a specific formula for their guidance, it is yet mandatory that What is the exception of Delegation of Powers to Congress shall lay down by legislative act an the People at Large? intelligible principle which the agency is bound  People in their sovereign capacity have to follow. voluntarily delegated the power to enact laws to the legislature, and conversely, no objection may What are the advantages of Delegation of Power be raised where the people have expressly to Administrative Agencies? reserved to themselves in the Consti the power 1) It relieves the legislature of a great burden of of decision with respect to certain matters. work in respect to which it has no special competence, and thus enables it more largely to  Under Art. XVI, Sec. 2 of 1973 Consti (now direct its attention to matters of general import; Art. XVII, Sec. 3, 1987 Consti) the people have reserved to themselves the finality of 2) It entrusts the drafting of detailed provisions, decision with respect to approval of any which are usually of a highly technical changes in the Consti. character, to the agencies most familiar with the conditions to be met and which will have the What is referendum? responsibility of their enforcement;  It is the principle or practice of referring measures passed upon by the legislative to a 3) It permits a great flexibility in adopting the body of voters, or electorate, for approval or regulations to the different classes of individuals rejection. or interests affected; and  Also defined as the reservation by the people of 4) It makes possible the prompt modification of a a state, or local subdivision thereof, of the right provision as soon as experience demonstrates to have submitted for their approval or rejection that it is unsatisfactory. under certain prescribed conditions, any law or part of a law passed by the law making body. What is the exception of Delegation of Power to Ascertain Facts and Events to determine the  Referendum according to weight of authorities is applicability of the law? not violative of a republican gov’t.  Congress may enact a law the taking effect of w/c is made to depend upon the happening of What are the Tests of Validity of Delegation of future specified contingencies to be determined powers? by executive or administrative offices/agencies.  Two tests have been resorted to by the courts in deciding delegation of power cases these are:  The power to ascertain the existence of facts or (1) The completeness or incompleteness of the conditions as the basis of taking into effect of a statute; and law may be rightfully exercised by Congress (2) The absence or sufficiency of standard. itself and since it is NOT legislative in character, it may be delegated.  These two tests have apparently been merged into one as held in Vigan Electric Light Co. Inc.,  Cruz v. Youngberg vs. Public Service Commission & Pelaez vs.  To assert that a law is less than a law Auditor General: because it is made to depend on a future  For a valid delegation, it is essential that the event or act, is to rob the legislature of the law delegating powers must both be: power to act wisely for the public welfare a) Complete in itself – it must set forth the whenever a law is passed relating to a state policy to be executed by the delegate; of affairs not yet developed or to things and future and impossible to fully know. b) Fix a standard – the limits of which are  Legislature cannot delegate its power to sufficiently determinate or determinable make the law; but it can make a law to – to which the delegate must conform. delegate its power to determine some fact or Rhys Alexei Y. Murillo Page 10 of 45 ADMINISTRATIVE LAW – Atty. Chan-Gonzaga/Dean Roy II-D 2003-2004 What is the “Completeness or Incompleteness of lawful, Justice Hughes provides for three criteria the Statute” Test? that must be met:  A law must be complete in all its terms and (1) The “policy” must be clearly defined in the provisions when it leaves the legislative branch language of the statute and not left to the of gov’t. discretion of the “grantee” or “delegate”  Nothing is left to the judgment of others, or other appointee or delegate of the (2) The statute must pronounce “standards” to legislature. guide the executory behavior of the delegate or grantee; presumably, such standards  A law is unconstitutional and deemed as an would also have the virtue of giving the improper delegation of legislative power where: Court something to determine, upon judicial  It is incomplete as a legislation; and review, whether the subordinate action was  Authorizes an executive board to decide ultra vires in relation to the law. what shall and what shall not be deemed as an infringement of the law. (3) Formal “findings” by the delegate or grantee would be a condition precedent to a valid exercise of such delegated authority, assuming that the statute satisfied the above  A statute is COMPLETE when the following are “policy” and “standards” criteria. stated:  The delegate must specify in his order (1) Subject of the law the facts and circumstances that justified (2) The manner of its application the action that he purported to take (3) The extent of its operation under the statute delegating to him his authority to act.  The test of completeness is the question of whether the provision is sufficiently definite and What is a standard? (Edu v. Ericta) certain to enable one to know his rights and  It is a criterion laid down by the legislature by obligations. which the policy and the purpose of the law may  It is not improper delegation when the legis be carried out. already describes in the law what job must be done, who must do it, and the scope of  It defines the legislative policy, marks its limits, his authority. and maps out its boundaries. When statutes delegate discretion, is it necessarily  It indicates the circumstances under which the incomplete? legislative command is to be effected.  A statute is NOT necessarily incomplete and an undue delegation of power because it delegates Some Delegation Cases discussed in the book discretion. (doctrines only)  Vigan Electric Light Co., Inc. v. Public Service  It becomes incomplete depending upon the Commission discretion delegated. The true distinction is  Consistently with the principle of separation between the delegation of power: of powers w/c underlie our constitutional  To make the law – w/c necessarily involves system, the legislative powers may not be a discretion as to what the law shall be delegated except to local gov’ts and only as (improper delegation) to matters purely of local concern.  Conferring authority – w/c involves  Congress may delegate to admin agencies discretion as to the execution of the law to the power to supply the details in the be exercised under and pursuance of the law. enforcement or execution of a policy laid (valid delegation) down by a law w/c is complete in itself.  The law is not deemed complete unless What is the “Absence of Sufficiency of Standard” it lays down a standard or pattern Test? sufficiently fixed or determinate or at  Even if a statute delegates authority, if it lays least determinable without requiring down a policy and a definite standard by which further legislation. the executive or admin officer or board may be guided in the exercise of his discretionary  Without such, there would be no authority, there is no undue delegation of reasonable means to ascertain whether legislative power. or not said body has acted w/in the scope of his authority.  In order for a delegation of legislative power to As a consequence of such absence, the President or any admin body or officer to be the power of legislation would be Rhys Alexei Y. Murillo Page 11 of 45 ADMINISTRATIVE LAW – Atty. Chan-Gonzaga/Dean Roy II-D 2003-2004 exercised by a branch of gov’t other (7) “In order to protect the international than the legis as ordained by the reserves… to protect the international Const and violates separation of stability of the peso… to maintain monetary powers. stability in the Philippines… to promote a rising level of production, employment and  Schecter Poultry Co. v. United States real income in the Phil”;  The broad discretion granted to the President (8) “All educational institutions to observe daily in approving or prescribing codes of the fair flag ceremony, which shall be simple and competition is virtually unfettered and such dignified and shall include the playing or code-making authority is an unconstitutional singing of the Phil Nat’l Anthem.” delegation of legislative powers. How has the SC applied the aforementioned Legislative standards in its decisions? (Case  Pelaez v. Auditor General discussions in book)  The authority to create municipal corporations is essentially and eminently  “Public Interest” as a Standard: legislative in nature since they are purely creatures of the statute. PEOPLE v. ROSENTHAL (68 PHIL 28)  For Congress to validly delegate to another branch of the gov’t the power to fill in the Act no. 2581, otherwise known as the Blue Sky details in the execution, enforcement or administration of a law it is essential that the Law; requires every person, partnership or corporation law delegating the powers must be: to obtain a certificate or permit from the Insular a) Complete in itself; and Treasurer before offering for sale to the public b) Fix a standard. speculative securities. The Insular Treasurer, under the law, is empowered to cancel or revoke a certificate or  Without a statutory declaration of policy, permit previously issued by him. Convicted under the the delegate would in effect, make or penal provision of the law, Rosenthal appealed to the formulate such policy, which is the essence of every law. SC and argued that Act 2581, insofar as it empowers the insular treasurer to issue and cancel permits or  Without the standard, there would be no certificates is an undue delegation of power. means to determine whether the delegate has acted within or beyond the scope of his HELD: The act furnishes the Insular authority. Treasurer sufficient standard to follow in reaching a decision regarding the issuance or cancellation of a What are “Legislative Standards” which are considered adequate in the US and in the certification or permit. He is empowered to issue a Philippines? permit only when his is satisfied that the applicant has  In the United States: complied with the provisions of the said Act. On the (1) “Just and reasonable”; other hand, the authority of the Insular Treasurer to (2) “Unreasonable and Obstruction to cancel or revoke a certificate or permit is expressly navigation”; conditioned upon a finding that such a cancellation is (3) “Public Interest”; in the public interest. In view of the intention and (4) “Reciprocally unequal and unreasonable”; (5) “Public convenience, interest, or necessity”; purpose of the Act to protect the public against (6) “National Security or defense”; “speculative schemes which have no more basis than (7) “Unfair Methods of Competition”; so many feet of blue sky” and against the “sale of stock (8) “Tea of an inferior quality”; in fly-by night concerns, visionary oil wells, distant (9) “Films are in the judgment and discretion of gold mines, and other like fraudulent exploitation,” – the Board of Censors of a moral, educational public interest in this case is a sufficient standard to or amusing, and harmless character”. guide the Insular Treasurer.  In the Philippines: (1) “Public welfare”; (2) “Necessary in the interest of law and order”; (3) “Public interest”; (4) “Justice and equity and substantial merits of the case”;  “Public Convenience and Interest” as a (5) “Simplicity, economy and efficiency”; Standard: (6) “Adequate and sufficient instruction”; CALALANG v. WILLIAMS Rhys Alexei Y. Murillo Page 12 of 45 ADMINISTRATIVE LAW – Atty. Chan-Gonzaga/Dean Roy II-D 2003-2004 (70 PHIL 726) is no undue delegation of power. RA 51 in authorizing the President, among others, to make reforms and Commonwealth Act 548 authorized the Dir. Of changes in GOCC’s lays down a standard policy that Public Works, with the approval of the Sec. of Public the purpose shall be to met the exigencies attendant Works and Communications to promulgate rules and upon the establishment of the free and independent regulations for the regulation and control of the use and Gov’t of the Philippines and to promote simplicity, traffic on national roads. The Dir. of Public Works, economy and efficiency in their operation. The with the approval of the Sec., and upon the standard was set and the policy fixed. The President recommendation of the National Traffic Commission, had to carry the mandate. This he did by promulgating issued an order closing to animal-drawn vehicles, EO 93 which, tested by the rules above cited, does not certain portions of Rizal Ave and Rosario St., both in constitute an undue delegation of legislative power. the City of Manila. Petitioner challenges the constitutionality of said order as having been issued  To Maintain Monetary Stability“ as a Standard: pursuant to an undue delegation of power. PEOPLE v. JOLLIFFE HELD: There is no undue delegation of (GR No. L-9552, prom. May 13, 1959) power. The authority delegated to the Dir. of Public Works is not to determine what public policy demands On Dec. 7, 1953, when appellant was about to or what the law shall be, but merely the ascertainment board a plane of the Pan American World Airways, of facts and circumstances upon which the application four pieces of gold bullion were found in his body. of the law is to be predicated. Under the law in There was also found in his possession a $100 question, the promulgation of rules and regulations on traveler’s check. He was charged with and convicted the use of national roads and the determination of when of violation of RA 265 and sentenced to imprisonment, and how long a national road should be closed to to pay fine and costs, as well as decreeing the forfeiture traffic, is to be made with a view of the condition of in favor of the Gov’t of the gold bullion and the the road or the traffic thereon and the requirements of traveler’s check. He appealed and among others public convenience and interest. Definite standards challenged the validity of Circular No. 21 of the are therefore provided in the law. Central Bank on the ground that it is an undue delegation of powers.  “Simplicity, Economy and Efficiency “as a HELD: Distinction should be made between Standard: the delegation of the power to determine what the law shall be and the delegation of authority to fix the CERVANTES v. AUDITOR GENERAL details in the execution or enforcement of a policy set (GR No. L-4043, prom. May 26, 1952) out in the law itself. The delegated authority falls under the second category for which a reasonable Petitioner was in 1949, the manager on the standard has been set. Sec 74 of RA 265 conferred NAFCO with the salary of P15T a year. By resolution upon the Monetary Board and the President the power of the Board of Dir of the said corporation, he was to subject to licensing all transactions in gold and granted quarters allowance of not exceeding P400 a foreign exchange in order to protect the international month. Submitted to the Control Committee of the reserve of the Central bank during an exchange crisis Gov’t Enterprises Council for approval, said resolution and to give the Board and the Gov’t time in which to was disapproved on the strength of the take constructive measures to combat such crisis. The recommendation of the NAFCO auditor concurred in Board is likewise authorized “to take such appropriate by the Auditor General. The Gov’t Enterprises remedial measures as are appropriate” to protect the Council was created by the President under EO 93 international stability of the p e s o whenever the pursuant to RA 51, which authorizes the President to international reserve is falling, as a result of the effect such reforms and changes in GOCC’s for the payment or remittance abroad w/c, in the opinion of the purpose of promoting “simplicity, economy, and Board, are contrary to the national welfare. efficiency in operations”. Petitioner challenged the Furthermore, these powers must be construed and action of the Gov’t Enter. Council and contended that exercised in relation to the objectives of the law to EO 93 is an undue delegation of power. maintain monetary stability in the Phil and to promote a rising level of production employment and real HELD: So long as the legislature lays down a income in the Phil. These standards are sufficiently policy and a standard is established by the statute, there Rhys Alexei Y. Murillo Page 13 of 45 ADMINISTRATIVE LAW – Atty. Chan-Gonzaga/Dean Roy II-D 2003-2004 concrete and definite to vest in the delegated authority the character of administrative details in the enforcement of the law and to place the grant of said What are the two fundamental concepts that emerged from the Rule of Delegation of Powers to authority beyond the category of a delegation of Admin agencies? legislative power.  From the principles governing the rule against delegation of powers and the exceptions, the two  “Simplicity and Dignity” as a Standard: fundamental concepts are: GIL BALBUNA v. SEC OF EDUCATION (1) The legislature MAY NOT confer discretion (GR No. L-14283, prom. Nov. 29, 1960) in the execution or administration of the law; and Petitioners, members of the religious sect “Jehovah’s Witnesses” challenged the constitutionality (2) The legislature MUST DECLARE a policy and FIX a standard in enacting a statute of RA 1265 by virtue of w/c the Sec. of Education conferring discretionary power upon an issued Dept. Order No. 8, prescribing compulsory flag administrative agency. ceremony in all schools as an undue delegation of  The agency may be authorized to “fill legislative power. Sec 1 of the said act requires all up the details” in promoting the purpose educational institutions to observe daily flag ceremony, of the legislation and carrying it into which shall be simple and dignified and shall include effect. the playing or singing of the Phil National anthem. Sec  Although in general, the power to legislate 2 thereof authorizes the Sec of Educ to issue rules and CANNOT be delegated, the legislature has the regulations for the proper conduct of the flag right to delegate to designated agencies certain ceremony. powers of fact-finding and regulation it possesses as long as legislature: HELD: The requirements constitute an  Fixes the limits within w/c such powers are adequate standard to wit, simplicity and dignity of the to be exercised. flag ceremony and the singing of the national anthem – What are the powers vested in the Legislature by especially when contrasted with other standards the Consti w/c cannot be delegated to Admin heretofore upheld by the courts such as public interest, agencies? public welfare, interest of law and order, justice and  The powers to: equity, and substantial merits of the case, or adequate  Declare whether or not there shall be a law and efficient instruction. That the legislature did not  To determine the general purpose or policy specify the details of the flag ceremony is no objection to be achieved by the law to the validity of the statute, for all that is required of it  To fix the limits within which the law shall operate is the laying down of standard and policy that will limit the discretion of the regulatory agency. To require the Can the Legislature delegate the above powers statute to establish in detail the manner of exercise of without violating the Constitutional prohibition? the delegated power would be to destroy the  Where the legislature has laid down the administrative flexibility that the delegation is intended fundamentals of a law (as discussed above, e.g. to achieve. policy and standard), it may delegate to administrative agencies the authority to exercise Where should the “Legislative Standard” be such legislative power as is necessary to carry located and found? into effect the general legislative purpose.  It is desirable that it be embodied in the very provision of the statute delegating the authority, Is there a need for “Clear Legislative Intent to although it may be found elsewhere like when Delegate” in cases of delegation of powers? other provisions are considered.  Legislature may confer on admin boards or bodies quasi-judicial, powers involving the  The purpose of the law may NOT be left out in exercise of judgment and discretion, as an the ascertainment of the standard. incident to the performance of admin functions.  The standards need not be tested in isolation but referred to the purpose of the law, its factual background and its statutory context.  Legislature MUST state its intention in EXPRESS terms that would leave not doubt.  To be valid, the exercise of quasi-judicial powers conferred must: Rhys Alexei Y. Murillo Page 14 of 45 ADMINISTRATIVE LAW – Atty. Chan-Gonzaga/Dean Roy II-D 2003-2004  Be limited to only those:  An officer who is required to exercise his own  Incidental to, or judgment and discretion in making an order is  In connection with the performance of not precluded from utilizing, as a matter of admin duties; and practical administrative procedure, the aid of subordinates directed by him to investigate and  NOT amount to conferment of jurisdiction report the facts and their recommendation in over a matter exclusively vested in courts. relation to the advisability of the order.  Bill Miller v. Atanacio A. Mardo et al.  Administrative authorities having the power to  Judicial powers are vested only in the SC determine certain questions after a hearing may and in such inferior courts as may be make use of subordinates to hold the hearing, established by law. and make their determinations upon the report of the subordinates, without violating the principles  The legislature could not have intended to as to fairness of hearing or delegation of powers. grant such powers to the Reorganization Commission, an executive body, as the  Legislature MAY NOT and CANNOT delegate its power to legislate or create CHAPTER IV courts of justice to any other agency of the POWERS AND FUNCTIONS OF gov’t. ADMINISTRATIVE AGENCIES  The legislature must state its intention in What is the Source and Scope of the Powers and express terms when conferring upon admin Functions of Administrative Agencies? boards or bodies quasi-judicial powers  Powers and functions of Admin agencies are involving the exercise of judgment and defined either in: discretion as incident to the performance of (1) Constitution; admin functions. (2) Legislation; or (3) Both. What is Subdelegation in Administrative Agencies?  Admin boards, commissions, and officers have  It is the transmission of authority from the heads no common-law powers. of agencies to subordinates. What is the effect if the powers and functions are  “Sound principles of organization demand that created by statutes or left only to be defined by those at the top be able to concentrate their thelegislature? attention upon the larger more important  Such powers are limited only to those that are questions of policy and practice, and that their conferred expressly or by fair implication. time be freed, so far as possible, from the consideration of the smaller and less important  An admin officer, has only such powers as are matters of detail.” expressly granted to him and those necessarily implied in the exercise thereof. What is the Extent of Permissible Subdelegation of Authority?  The permissible extent depends primarily upon the intent of the legislature.  Makati Stock Exchange Inc., v. SEC  The test is not whether the Act forbids the  The general principle of “delegates potestas non Commission for imposing a prohibition but potest delegare” provides that a delegated power whether it empowers the Commission to may not be further delegated by the person to prohibit. whom such power is delegated.  No specific portion of the statute has been  Merely ministerial functions may be delegated cited to uphold this power. to assistants whose employment is authorized.  It is fundamental that an administrative  There is NO authority to delegate (subdelegate) officer has only such powers as are acts discretionary or quasi-judicial in nature. expressly granted to him by the statute, and  Authority from the legislature is necessary those necessarily implied in the exercise to the power of a commission to appoint a thereof. general deputy who may exercise quasi- judicial powers. How should the Grant of Powers to Admin Agencies be Construed? Rhys Alexei Y. Murillo Page 15 of 45 ADMINISTRATIVE LAW – Atty. Chan-Gonzaga/Dean Roy II-D 2003-2004  General language describing the powers and What is the test in Determining the Nature of the functions of an administrative body may be Power? construed to extend no further than the specific  The test as to whether a power is strictly duties and powers conferred in the same legislative or whether it is administrative is to statute. determine whether its exercise involves a discretion as to:  In determining whether the admin agency has a certain power, the authority given should be  What the law shall be – this is a legislative liberally construed in the light of: powers which cannot be validly delegated to (1) The purposes for which it is created; and an admin body  The declaration and establishment of the (2) That which is incidentally necessary to a policy of the law, cannot be delegated to full exposition of the legislative intent nor exercised by admin agencies. should be upheld as being germane to the law.  Merely the authority to fix the details in the execution or enforcement of a policy set  In the construction of a grant of powers, it is a out in the law itself – this is merely a general principle of law that where the end is administrative or quasi-legislative power, required, the appropriate means are given. and can be validly delegated.  Implication of necessary powers may be  The authority to make rules and especially appropriate in the field of internal regulations to carry out a policy administration. declared by the lawmakers is administrative and not legislative.  Powers should NOT be extended by implication beyond what may be necessary for their just and  It is to be remembered that if allowed, reasonable execution. administrative legislation should be exercised  Official powers cannot be merely assumed within the framework or confines (standards) of by administrative officers, nor can they be the provisions allowing regulatory powers on the created by the courts in the exercise of their agency and the policy of the statute w/c it judicial functions. administers. What are the Powers usually exercised by Admin What are the General Kinds of Administrative Agencies? Rules & Regulations?  The powers and functions usually granted to and 1) Supplementary or Detailed Legislation exercised by administrative agencies are:  Rules and regulations issued by reason of (1) Rule making particular delegation of authority. (2) Adjudication (3) Incidental powers such as: 2) Interpretative Rules and Regulations a. Investigating  Rules and regulations constructing or b. Supervising interpreting the statute being administered c. Prosecuting d. Advising 3) Contingent Legislation e. Declaring  Rules and regulations involving f. Informally adjudicating. determination under a delegated power whether a statute shall go into effect What is the Administrative Rule-Making or Quasi-Legislative Power? What are Supplementary or Detailed  It is the power to: Legislations? (1) Promulgate rules and regulations or general  These are issued by an administrative agency orders which are legally binding and receive pursuant to a delegated authority to fix “the statutory force upon going into effect; and details” in the execution or enforcement of a policy set out in the law itself. (2) Formulate interpretative rulings or regulations w/c do NOT receive statutory  They add to the procedural or enforcing force but are accorded great weight when provisions of substantive law w/c in a sense questioned in court. involve the exercise of discretion of the lawmaker in the administrative body, to be  SC has held that an agency that issues rules and exercised within the confines of definite regulations has in a sense auxiliary or prescribed standards. subordinate legislative powers and is therefore legislation on the administrative level. Rhys Alexei Y. Murillo Page 16 of 45 ADMINISTRATIVE LAW – Atty. Chan-Gonzaga/Dean Roy II-D 2003-2004  Often referred to as the “filling of details or  Clarifying regulations or one indicating the “subjects… of interest” to carry out the policy method of application of a statute to specific laid down by the lawmakers. cases is permissible when a statute uses  Ex: CB Circulars regulating transactions ambiguous terms or is of doubtful involving gold or foreign exchange issued construction. under RA 265 in order to protect the international reserves of the Central Bank. What is the effect of Administrative Construction and Interpretation? What are Interpretative Rules and Regulations?  It provides:  These are the rules and regulations issued by an  A practical guide as to how the agency will administrative authority construing or seek to apply the law; and interpreting the provision of a statute to be enforced and they are binding upon all  An experienced and informed judgment to concerned until they are changed. which courts and litigants may properly resort for guidance.  Official construction of the law and valid if they properly construe the statute the administrative  The construction extends beyond meeting the agency is bound to enforce. necessities of administration and is given effect by courts when they are called upon to  E.g.: General Circular Issued by Collector of determine the true construction and Internal Revenue (providing that all losses of interpretation of such laws. property during WWII are deductive in the year of actual loss) is interpretative of Sec. 30(d) of NIRC. What is the effect of relying upon an interpretative regulation promulgated by What are Contingent Legislations? administrative bodies?  These are rules and determinations made by an  One who chooses to rely upon an interpretative administrative authority on the existence of the regulation does so at his own risk, because the proper occasion for the enforcement or courts may choose not to follow them. application of the law.  This is pursuant to a “delegation of  The fact that an interpretation has been made by authority to determine some facts or state of regulation or otherwise, does not preclude a things upon which the enforcement of the act subsequent different, but correct, interpretation depends” by the agency.  The Reason behind this is that Congress may What is the effect of an erroneous construction of enact a law the taking effect of which is made to a statute by an administrative agency? depend upon the happening of future specified  It cannot operate to confer a legal right in contingencies to be determined by executive or accordance with such construction. administrative officers or agencies. Do administrative constructions and  The power to ascertain facts is a power NOT interpretations control a court’s decision as to the essentially legislative and may be delegated. proper construction of the statute?  No. But, generally or in particular What is Administrative Construction and circumstances, courts give it great weight and Interpretation? such may have a very persuasive influence and  Admin agencies in the discharge of their duties may actually be regarded by the courts as the are necessarily called upon to construe and apply controlling factor. the law under which they function.  In cases of doubt, there is an inclination to adopt  The necessity for the exercise of the power of the administrative construction, which will NOT