ADMIN[Ch1 3 Reviewer]

8/3/2019 ADMIN[Ch1 3 Reviewer]

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ADMINISTRATIVE LAW - DE LEON REVIEWER

Chapter I IntroductionAdministrative Law the entire system of laws which the machinery ofthe State works and by which the state performs government acts.

It includes all the laws that regulate or control theadministrative organization and operations of thegovernment including the legislative and the executive

branches. It provides for the structure of government and the procedure.

It is the law on governmental administration

It fixes the organization and determines the competence ofadministrative authorities and indicates the remedies for the

violation of an individual's rights.

it is the system of legal principles to settle the conflicting claims ofexecutive and administrative authority on the one hand and of theindividual or private rights on the other.

It is the part of law which governs the organization,functions and procedures of administrative agencies of thegovernment which quasi legislative powers are delegated and

judicial powers are granted and the extent and manner to whichsuch agencies are subject to the control by the courts.

SCOPE OF ADMINISTRATIVE LAW

Fixes the administrative organization

Law which governs public officers and their rights, duties,liabilities, election and competence.

It creates administrative agencies defines their powers andfunctions, procedures including adjudication.

Provides the remedies available to aggrieved parties inadministrative actions

Governs judicial review of the administrative actions or decisions

Includes the rules, regulations, orders and decisions made by theadministrative authorities dealing with the interpretation of the lawand enforcement entrusted to their administration.

Judicial decisions dealing with the abovementioned.

Note: It is not only the law that governs the administrative authorities, butalso the law made by the administrative authorities whether ofgeneral or particular applicability.

Administrative authorities all those public officers and organs of thegovernment charged with the amplification, application and execution of thelaw but do not include the doctrine of separation of powers.

CONCERNS OF ADMINISTRATIVE LAW

Private rightso Chief concern is the protection of private rights.o SUBJECT MATTER nature and mode of exercise of

administrative power and the system of relief.

Delegated powers and combined powerso Generally concerned with agencies with delegated powers

and not with the exercise of the constitutional powers of thepresident.

Administrative Law International Law Lays down the rules which guide theofficers of the administration in theiractions as agents of the government

not binding upon the officers of thegovernment considered in relation totheir own government except insofaras it has been adopted to theiradministrative law.

Administrative Law Constitutional Law Gives and carries out the generalplan in minute details

Prescribes the general plan orframework of the governmentalorganization

Treats the rights of individuals fromthe standpoint of the powers of thegovernment

It emphasizes the powers of thegovernment and duties of the citizens

Treats of the rights of individuals.The emphasis is on the rights.

Indicates to the individuals theremedies for the violation of theirrights

It prescribes the limitations on thepowers of the government to protectthe rights of the individuals againstabuse in their exercise.

Note: Administrative law is necessary the supplement of theConstitutional Law. But administrative law also complements

constitutional law insofar as it determines the rules relative to theactivity of the administrative authorities.

Administrative Law Criminal Law Note: Criminal law is applied to all branches of the law, includingadministrative law.

The most common and efficient way of enforcing anadministrative rule is by giving it a penal sanction. The mere affixingof the penalty does not deprive such rule of its administrative character.

Administrative Law Law of Public Administration

The subject matter of administrativelaw is public administration. It has to do with the practicalmanagement and direction of various


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They are apparently synonymouswith each other. But the true fieldof administrative law refersonly to the external aspect ofpublic administration.

It is a narrower branch butconstitutes the bulk of publicadministration.

organs of the State and the executionof state policies by the executive andadmin offices

PRINCIPAL SUBDIVISIONS OF ADMINISTRATIVE LAW

The distinction, however, is relative than absolute for the 2 aspectsare so closely interrelated and at many points quite inseparable.

Administrative law is primarily concerned with the problemsof administrative regulation than those of management.

Internal administration treats the legal relations between thegovernment and its administrative officers and of the legal relationsthat one administrative officer or organ bears to another.

o Topics: nature of the public office (de jure or de facto) and

incompatible or forbidden offices, qualifications,disqualifications, appointment, tenure, removal, pension,compensation, organization, legal relation of superior-subordinate, etc.

o Institutional side as a going concern which includesthe legal structure or organization of public administration,and legal aspect of institutional activities.

External administration concerned with the legal relationsbetween administrative authorities and private interests.

o Survey of powers and duties that relate to private interestso Analysis of the scope and limits of such powerso Sanctions attached to or means of enforcing, official

determinationso Examinations of the remedies against the official action.

CLASSIFICATION OF ADMINISTRATIVE LAW

Classifications and distinctionsSOURCE 1) the law that controls the

administrative authorities(constitution, statutes, judicialdecisions, executive orders,administrative order of superiors tosubordinates)

2) law made by administrative

authorities (general regulationsand particular determinations delegations of power Ex.Presidential proclamations, ceaseand desist orders of SEC, etc.)

PURPOSE 1) Procedural Administrativelaw imposes the procedure to befollowed in the pursuit of its legal

purpose

2) Substantive administrativelaw establishes the primary rightsand duties

APPLICABILITY 1) General administrative law general in nature and common to all(constitution, doctrine of exhaustionof administrative remedies, judicialreview)

2) Particular administrative law pertains to particular agenciesproceeding from the statute creatingthe individual agency and has little orno application except in connection

with such agency.

- the law is to be applied only to thecases falling under the agency's

jurisdiction.

ORIGIN AND DEVELOPMENT OF ADMINISTRATIVE LAW

The rapid expansion of the administrative agencies and theirincreased functions made it possible for the development of

administrative law as a distinct category of law. Modern life became more complex which caused a multiplication

of government functions necessitating an anormousexpansion of public administration. So, the legislature had tocreate more and more administrative bodies, boards or tribunalsspecialized in their particular fields.

There is a need for broad social or governmental controlover complex conditions and activities which in their detailcould not be dealt with directly in an effective manner by thelegislature or the judiciary.

The issues ought to be decided by experts and not by a judge,at least not in the first instance or until the facts have been

sifted and arranged.


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Such agencies represent a fusion of different powers of thegovernment.

o They are vested with the power to promulgate rules,

carry out the regulations and decide on thecontroversies within the scope of their activities.

Administrative law is still in its formative stage and is beingdeveloped as part of the traditional system of law.

ADVANTAGES OF ADMINISTRATIVE PROCESS Administrative process includes the whole time of the series of

acts of an administrative agency whereby the legislativedelegation of a function is made effectual in particularsituations.

o Embraces matters concerning the procedure in disposition,and the matter in which determinations are made,enforced and reviewed.

Advantages of administrative adjudicationo It insure greater uniformity and impersonality of action

The judicial process is not an alternative to the administrativeprocess.

It is a trend towards preventive legislation.o The mere existence of the law will have a deterrent effect.o There is a desire for a more effective and more flexible

preventive remedies in the creation of many administrativeagencies.

o Prevention is also a major purpose of licensing statutes.

Licensing is both one of the most burdensome andone of the most effective forms of regulation.

Limitations upon effective legislative action since there aremany administrative functions, which could not be performed byCongress.

o There are limitations, which make it practically an

impossibility for congress to do all the things it theoreticallycould do (e.g. lack of time, specialized knowledge, lack ofstaff to secure information, complexity of problems, etc.).

Limitations upon exclusive judicial enforcement also is aproblem is adjudicatory powers are not given to the agencies sincemany courts would vary in their application of the law. There would

be no uniformity in the policy of initiation.o If a single administrative agency can assume the

responsibility for enforcement and can develop, subject to judicial review, uniform policies, in the carrying out theresponsibility, it would be more advantageous.

Continuity of attention and clearly allocated responsibilityo the agencies have the time and facilities to become and to

remain continuously informed and they can be given a

unified responsibility for effectuating policies.

Need for organization to dispose of the volume of businessand to provide the necessary records

CRITICISMS AGAINST ADMINISTRATIVE ACTION

Tendencies toward arbitrariness

Lack of legal knowledge and aptitude to adjudicate

Political bias or pressurebrought by uncertainty of tenure

Disregard of safeguards to ensure fair hearings

Absence of rules of procedure standards Combination of legislative, executive and judicial functions

RELATION BETWEEN ADMINISTRATIVE AGENCIES ANDCOURTS

They are collaborative instrumentalities of justice.o Although independent, they are collaborate

instrumentalities.o Court may entertain an action brought before them, but to

call their aid the appropriate administrative agency onquestions within its administrative competence.

They are not hierarchical, nor is the court a super

commission. The court is to accommodate the administrativeprocess to the judicial system; accommodate private rights andpublic interest in the powers reposed in administrative agencies; andto reconcile in the filed of administrative action, democrativesafeguards of fair play.

The courts must also see to it that the powers are not unlawfullyvested in the agencies and to maintain the constitutionaland statutory rights of the person.

o They should give due deference to the agencies to ensure thatthe powers given them are not usurped or unwarrantedlylimited or interfere with the proper exercise of their validpowers.

o They should lend the powers of the court to the properattainment of the valid objectives of the agency.

o Leave the legislature or the people the remedy foradministrative action.

ADMINISTRATION OFGOVERNMENT

ADMINISTRATION OFJUSTICE

Administration of government ischarged to the administrativeofficers

Administration of justice is chargedto thejudicial officers

The work done is not necessarily oreven often, the result of any

controversy and is not merelydependent on the solution of the

Decision of controversies betweenindividuals and government officers

What is the law applicable to the


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question of what is the law but madealso as a result of considerationof expediency.

They must determine what is thelaw and whether in case theyare competent to act, if it is wisefor them to act.

facts presented before them?

ADMINISTRATION AS A SEPARATE POWER

The term administration cannot be so plainly defined as it mayslightly overlap with the legislative and the judicial field.

It is a function. It is the execution, in non judicial manner, ofthe law or will of the state expressed by the competentauthority. It is the activity of the executive officers of thegovernment.

o Has something to do with carrying the laws into effect by wayof management or oversight, investigation, regulation,constroll in accordance with the principles prescribed byCongress.

As an organization, is is that group or aggregate of personsin whose hands the reins of the government are for thetime being. It is the entire administrative organization extendingfrom the Chief Executive to the subordinates.

Note: It is both a function (execution of the law) and the totality of theexecutive and administrative authorities.

ADMINISTRATION (as anorganization)

GOVERNMENT

Aggregate of persons in whose handsthe reins of the government areentrusted by the people for the time

being.

Institution or aggregate of institutions by which an independentsociety makes and carries out thoserules of action which are necessary toenable men to live in a civilized stateor which are imposed upon thepeople forming that society boy those

who possess the power or authorityof prescribing them.

Aggregate of authorities whichrule a soeicty.

Chapter II Nature and Organization of Administrative AgenciesStatus and CharacteristicsCREATION, REORGANIZATION AND ABOLITION OF

ADMINISTRATIVE AGENCIES

Some are created by virtue of the constitution but most are createdby legislative enactments. The executive may also create agenciesunder statutes.

o In creating an administrative agency, there are

constitutional restrictions.o Duly executed acts of an administrative agency can have

valid effects beyond the life span of the agency.

Agencies of statutory origin are subject to expansion orcontraction of their powers and functions, or toreorganization or abolition at the will of Congress.

o when the purpose is to abolish the agency, and replace it withanother, it should specify that the previous agency isabolished and the replacement to be the new one.

o Congress can delegate the power to create positions (ex.

President's reorganization power regarded as valid if it ispursued in good faith).

MEANING OF ADMINISTRATIVE AGENCY

Administrative agency is the term used to describe an agencyexercising some significant combination of executive, legislative, and

judicial powers. It is charged with the administration andimplementation of a particular legislation.

o Covers commissions, divisions, bureaus, etc.o A single officer is also embraced therein. The bulk of the

administrative law employs a variety of terms to refer to anadministrative agency.

o Under the Admniistrative Code of 1987, agency is

used to refer to any of the various units of the

government. It can be a national agency (unit of thenational government) or a local agency (if local government).

Administrative agency CourtGenerally a large organization staffed

by men who are deemed to becomesomething of experts in theirparticular fields.

Tribunal presided by one ore morejurists learned in the law

Performs a variety of functions Judicial functions only.Uses a varying degree of discretion inarriving at decisions and oftenproceeds without being bound by

technical rules of evidence orprocedure

Governed by fixed rules in arriving atdecisions and bound by the riles thatno final adjudication is to be made

until after due notice to the parties with opportunity for a full and fair


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hearing.STATUS OF CHARACTER OF PARTICULAR ADMINISTRATIVE

AGENCIES

Generally, they may be said to be agencies of the state orgovernment, representing no private interests of their own, butfunctioning or acting within the scope of their authority for and on

behalf of the government and as representatives of the public orguardians of their interest and not those of private persons.

o

Vested with the real power to act for thegovernment. Authority to act with the sanction ofgovernment is essential.

o The form or the function of the agency is notdeterminative of the question whether it is an agency.

They are not courts or part of the judicial system.o they cannot exercise purely judicial functions since they do

not have the inherent power of a court and are not boundby the rules applicable to courts. They do not comewithin the meaning of "in any court" of a state.

o Their function is not to adjudicate, but to represent apublic interest.

Although they are not courts in the strict sense, they are soin the broad sense since they exercise adjudicatory powers.Their proceedings partake the nature of a judicial proceeding.

Their functions are PRIMARILY REGULATORY even if itconducts hearings.

Certain agencies are deemed to be agents of the legislativebranch of the government and not of the executive branchwhile others, are deemed agents of the latter.

o They may perform legislative or quasi-legislative functionsalthough they are without legislative power in the strictsense.

They are independent of the executive branch or one not

subject to a superior head department (some such as COA,CSC, COMELEC).

They are corporate bodies or legal entities. As such, they cansue or be sued in courts. Others even have perpetual existenceapart from their members.

MAIN CHARACTERISTICS OF ADMINISTRATIVE AGENCIES

They are necessarily large. Their staff includes many peopleperforming a variety of tasks which must be coordinated, supervised,directed toward the fulfillment of the agency functions.

They staff are specialized from experience.o An agency's background of knowledge and experience and its

equipment for investigation enable it to do much of its work by informal methods without the necessity of formal

hearings and have an impact upon its procedures for formaladjudication and for rule-making.

A particular administrative agency is charged by congresswith a particular statutory end.

o Generally, they are charged with the responsibility of makinggood to the people a major part of the ends of a democraticgovernment. They cannot take a purely neutral attitudetoward accomplishment of the task with which they are

charged.o One of its most difficult problem is combining the

responsibility of effective enforcement of public policy withfair play to the private interest which are regulated.

Variety of administrative duties.

CONSEQUENCES OF CHARACTERISTICS

There should be an allocation of functions among the members andstaff of the agency.

The major work of the head of an agency is supervision anddirection. They cannot be the specialist in all kinds of work, butspecialists must be immediately available to them.

o

Agencies must be founded upon the reality that manypersons in the agency other than the heads, must do the bulkof his work, with him supervising.

o Hence, there should be a delegation of function andauthority. It is a predominant feature of theirorganization and procedure.

DELEGATION OF FUNCTION AND AUTHORITY

Types of delegation:o Delegation of internal managemento Delegation of authority to dispose of routine matters

o Delegation of authority to dispose of matter informally or

initiate formal proceedingso Delegation of authority and function in formal proceedings

(includes the authority to conduct formal hearings)

Delegation may be a matter of degree and it may becombined with supervision and control.

o It may even involve decentralization through delegation tofield offices.

TYPES OF ADMINISTRATIVE AGENCIES

Classified according to their purposeso Where the government is offering some gratuity, grant or

special privilege (PVA, GSIS, PAO, PMCC)o Where the government is seeking to carry on certain

functions of the government (BIR, Immigration, LRA)


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o Performing some business service for the public(Philippine Postal Corporation, PNR, MWSS NFA, NHA)

o Regulate business affected with public interest(LTFRB, Energy Regulatory Board, HLURB, Bureau ofMines, Geosciences, NTC).

o Where the government seeks, under police power,to regulate businesses and individuals (SEC, MTRCB,GAB, DDB, BTRCP)

o

Set up to adjust individual controversies because ofsome strong policy involved (NLRC, ECC, SSS, SEC,DAR, COA)

Administrative OrganizationDISTRIBUTION OF POWERS OF GOVERNMENT

Administrative Organization refers to the administrativestructure of government including political subdivisions and theallocation of powers, functions, duties to various units or agencies.

o POWERS: Traditionally, legislative, executive and judicialo Such powers shall not be delegated except to the extent

authorized by the Constitution.

There are 3 independent constitutional commissions namely: COA,CSC and COMELEC. These shall exercise powers and functionsconferred upon them by the constitution and the law. IN addition tothis, there is also the Ombudsman and the independentcommission on Human Rights.

o the state is also mandated to establish an independentmonetary authority and an independent economic andplanning agency.

ORGANIZATION OF THE OFFICE OF THE PRESIDENT

The Office of the President:o Private office provides direct services to the president

and attends to functions that are personal or which pertainto the first family.o Executive office headed by the executive secretary

(office of executive secretary, deputy executive secretariesand assistant executive secretaries), it shall be fullyresponsive to the specific needs and requirements ofthe president to achieve the purposes and objectivesof the office.

o Staff Support System embraces the offices under the

general categories of development and management, generalgovernment administration and internal administration.

o Presidential Special Assistants/Advisers System

includes special assistants and advisers as may be needed bythe president providing consultative or advisory

services.

Agencies under the Office of the President (referring to thoseoffices under the chairmanship of the president, under hissupervision and control, under his administrative supervision,attached to the office of the president for policy and propercoordination, and those not placed under any special department bylaw.

The president has the authority to reorganize the

administrative structure of the Office of the President.o He may restructure the internal organization of the office of

the president by abolishing, consolidating or merging theunits thereof or transferring functions from one to another.

o He may transfer any function of the office of the president toany other department or agency as well as from theagency to the office of the president

o He may transfer agency under the office of the president to

any other department or agency as well as transfer agenciesto the office.

ORGANIZATION OF DEPARTMENTS

Department an executive department created by law. It includesany instrumentality having assigned the rank of a department,regardless of designation or name.

Number, purpose and decentralizationo Departments can be established as are necessary for the

functional distribution of the work of the Presidento They should be organized and maintained to insure their

capacity to plan and implement programs inaccordance with the national policies

o Grouped on the basis of their major functions toachieve simplicity, economy and efficiency to minimizeduplications and overlapping.

o The functions shall be decentralized to reduce red tape,free central officials from administrative details concerningfield operations and relieve them from unnecessaryinvolvement in routine and local matters.

Department propero Unless otherwise provided, it shall include the Office of the

Secretary(secretary and undersecretary/s with personnel)and the staffs directly under it.

o Undersecretaries can be as many as may beprovided by the Code or law.

o If necessary, an assistant secretary may be createdo In abence of special provisions, major staff units of each

department shall be the services which shall include theplanning service, financial and management service,


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administrative service and when necessary,technical and legal services.

Jurisdiction over bureaus. The departments shall havejurisdiction over bureaus, offices, regulatory agencies, etc, assignedto it by law.

Assignment of offices and agencies the president shall, byexecutive order, assign offices, and agencies not otherwise assigned

by law to any department, or indicate to which department a

government corporation or board may be attached.

SECRETARIES, UNDERSECRETARIES AND ASSISTANTSECRETARIES

The authority and responsibility for the exercise of the mandate ofthe department and for the discharge of its powers and functionsshall be with vested in the Secretary who shall havesupervision and control over the department.

The undersecretary shall advise and assist the secretary in theformulation and implementation of the department objectives andpolicies.

o He shall discharge the secretary's functions in case of

absence or inability to discharge or for any cause or in case ofvacancy of said office unless otherwise provided by law.

The assistant secretaryshall perform duties and functions as maybe provided by law or assigned to him by the secretary.

DEPARTMENT SERVICES

Planning service services related to planning, programming andproject development and discharge such other functions as may beprovided by law.

Financial and Management Services advise and assist thesecretary on budgetary, financial and management matters and shallperform other functions as may be provided by law.

Administrative Service provide the department with economic,efficient an effective services relating to personnel legal assistance,information, records, delivery and receipt of correspondence,supplies, equipment, collections, disbursement, security andcustodial work.

Technical Service take charge of technical assistance essentialwhich does not fall under the 3 other services.

Legal service if the work involves substantial legal work, in whichcase, the administrative service shall not have a legal division. Itprovides legal advice to the department where the workload of thedepartment does not warrant a legal service or a legal division, thereshall be one or more legal assistants in the Office of the Secretary.

ORGANIZATION OF BUREAUS

Bureau refers to any principal subdivision or unit of anydepartment given or assigned the rank of a bureau, regardless ofactual name or designation, as in the case of department-wideregional offices.

o Principal subdivision of the department performing a singlemajor function or closely related functions.

o Headed by a director who may have one or more

assistants as provided by law. It may also have as many

divisions as are provided by law for the economical, efficientand effective performance of its functions.

Powers and duties of heads of bureaus or officeso The head of the bureau shall be its chief executive officer and

shall exercise overall authority in matters within thejurisdiction of the bureau.

o The head shall appoint personnel to all positions in hisbureau in accordance with the law. In case of the line bureauor office, the head shall also appoint the second levelpersonnel of the regional offices unless such power has beendelegated. He shall also have the authority to discipline theemployees in accordance with the CSC.

o

He may, designate the assistant head to act as chief of anydivision or unit within the organization withoutadditional compensation.

o He shall prescribe the form and fix the amount of all bondsexecuted by private parties pertaining to his bureau or office.

o Prescribe forms and issue circulars or orders to secure theefficient administration of his bureau

o Issue orders regarding administration of its internal affairs

Bureaus are either STAFF OR LINEo Staff bureau primarily perform policy, program

development and advisory functions. It shall avail itself ofthe planning, financial and administrative services in the

department is circumstances so warrant. Its director shall: advise and assist the office of

the secretary of matters pertaining to hisbureau's specialization; provide advisory andconsultative services to the regional office ofthe department; develop plans for theattainment of their objective; other duties asmay be provided by law.

o Line bureau directly implement programs adoptedpursuant to the department's plans and policies. It may havestaff units as may be necessary. If the bureau is small, only asingle unit performing combined staff functions may be

provided. Its director shall: exercise supervision and


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control over all divisions and other unitsunder the bureau; establish policies andstandards for the operation; promulgaterules and regulations as may be necessary;other duties as may be provided by law.

ORGANIZATION OF FIELD OFFICES

Regional offices established according to the law defining fieldservice areas.

o Administrative regions NCR, RI-XIIo The department or agency shall organize an integrated

regional office on a department or agency-wide basis.

Headed by one assistant regional director, except as may beprovided by law. He is responsible for the department or agencyfunctions in the region.

Whenever the function or activity requires central or inter-regionalaction, the function may be performed by the regional offices underthe supervision and control of the department proper or line bureauconcerned.

A regional office shall: implement laws, policies, programs,

etc. in the regional area; provide economic, effective andefficient service to the people; coordinate with regionaloffices of other departments bureaus and agencies in thearea; coordinate with local government units in the area;perform such other functions as may be provided by law.

o District offices may be established only in cases of clearnecessity.

DEFINITION OF ADMINISTRATIVE RELATIONSHIP

Supervision and control includes the authority to act directly;direct or restrain the performance of an duty/act; review, approve,modify, reverse acts of subordinates; determine priorities of plans

and programs; prescribe standards, guidelines, plans and programs.o Unless otherwise provided, the word control contemplatessupervision and control.

Adminsitrative supervision governs the relationship betweenthe department or its equivalent and regulatory agencies or otheragencies as may be provided by law.

o Limited to: general oversight of operations of such agenciesto insure proper management; require submission of reportsand cause conduction of management audit and evaluations;take actions as may be necessary for the proper performanceof official functions; review and pass upon budget proposals

but may not increase them.o

Does not include: appointments and other personnel actionsexcept when appeal is made from an action of appointing

authority; review of contracts entered into by the agency inthe pursuit of its objectives; power to review, reverse,modify, the decisions of regulatory agencies in the exercise oftheir regulatory or quasi-judicial functions.

Attachment the lateral relationship between department or itsequivalent and the attached agency or corporation for purposes ofpolicy and program coordination.

o May be accomplished by: having the department represented

in the governing board of the attached agency orcorporation; having the attached agency comply with asystem of periodic reporting; having the department providegeneral policies through its representative in the board.

Note: Day to day administration shall be left to the discretion and jusgmentof the executive officer of the agency or corporation. If there is adisagreement, the matter shall be brought to the President.

GOCCs shall submit to the secretary their audited financialstatements within 60 days after the close of the fiscal year.

o Pending submission, the budget shall be that of the previousfiscal year.

POWERS AND FUNCTIONS OF DEPARTMENT SECRETARY

Advise the president in issuing executive orders, regulations,proclamations and other issuances.

Establish the policies and standards for the operation of thedepartment

Promulgate rules and regulations necessary

Promulgate administrative issuances for the administration of theoffices under the secretary and for the proper execution of the lawsthereto

Exercise disciplinary powers over officers and employees

Appoint all officers and employees of the department except those

vested in the President Exercise jurisdiction over all bureaus, offices, agencies and

corporations

Delegate authority to officers and employees under the direction ofthe secretary

AUTHORITY OF THE DEPARTMENT SECRETARY

He shall have supervision and control over the bureaus, offices,agencies under him but:

o Initiative and freedom of action shall be encouragedo With respect to any regulatory function of an agency subject

to department control, the authority of the department shall

be governed by the provisions of the Code. His authorityshall not apply to chartered institutions, GOCCa


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attached to the department.

DELEGATION OF AUTHORITY

The authority shall be to the extent necessary for economical,efficient and effective implementation of national and localprograms.

The delegation shall be in writing and shall indicate to which office or class of officers and employees the

delegation is made. It shall vest sufficient authorityto enablethe delegate to discharge his assigned responsibility.

LINE BUREAU AUTHORITY

Line bureaus shall exercise supervision and control over theirregional and field offices.

They are directly responsible for the implementation of plans andprograms

The regional and field offices shall be the operating arms of thebureau for the direct implementation of the plans and programs.

RELATIONSHIP OF GOCCS TO THE DEPARTMENT

GOCCs refer to any agency organized as a stock or non-stockcorporation vested with functions relating to public needs

whether governmental or proprietary in nature. Andowned by the government directly or through itsinstrumentalities wholly or at least 50% of the capital stock.

o They are to be attached to the appropriate departmentwith which they shall have allied functions or as maybe provided by executive order.

o At least 1/3 of the members of the board should be eithera secretary or undersecretary or assistant secretary.

Note: During their tenure, the president, VP, members of the cabinet, their

deputies and assistants are not allowed from holding any other office oremployment.

RELATIONSHIP OF REGULATORY AGENCIES TO THEDEPARTMENT

Aregulatory agency refers to any agency vested (expressly) with jurisdiction to regulate, administer, adjudicate mattersaffecting substantial rights and interests of privatepersons. The principal powers of which are exercised by acommission, board or council.

o It is subject to the administrative supervision of thedepartment under which they are placed, exceptGOCCs

o The heads shall submit an annual report of their budgets,

and work plans to the secretary.o They may avail the common auxiliary and management

services of the department as may be convenient andeconomical for their operations.

MANDATES OF THE DIFFERENT DEPARTMENTS

DFA lead agency for directing and evaluation the total nationaleffort in the field of foreign relations

DOF responsible for the formulation, institutionalization andadministration of fiscal policies

DOJ provide the government with a principal law agency as legalcounsel and prosecution arm.

DOA promotion of agricultural development and support servicesneeded for domestic and export-oriented business enterprises

DPWH engineering and construction arm, ensure safety ofinfrastructures and securing all public works and highways thehighest efficiency

DECS now DEPED responsible for formal and non-formaleducation at all levels, supervise all educational institutions, public orprivate and provide for an integrated system of education relevant to

the goals of the national development. DOLE labor and employment; promotion of gainful employment

opportunities; worker's welfare; promote stable employmentrelations.

NATIONAL DEFENSE guarding against external and internalthreats to national peace and security and provide support for socialand economic development

DOH promotion of health of the people through delivery of healthservices, regulation and encouragement of providers of health goodsand services

TRADE AND INDUSTRY areas of trade, industry andinvestments

DAR direction and coordination to the national agrarian reformprogram extended to transform farm lessees and farm tenants toowners of economic family-size farms.

DILG exercises general supervision over local governments inensuring autonomy, decentralization and community empowerment.

DOT promotion of tourism industry, domestic and international.

DENR development and disposition, utilization and managementof the country's national resources; promote sound ecological

balance.

DOTC promotion, development and regulation of dependable andcoordinated networks of transportation and communicationssystems.

DSWD care for the physically and mentally handicapped; provide


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welfare packages to its constituents; arrest the further deteriorationof the socially disabling or dehumanizing conditions of thedisadvantaged

BUDGET AND MANAGEMENT formulation andimplementation of the national budget

DOST coordination of scientific and technological efforts.

DOE supervise and control all activities relative to energyexploration, development, distribution and conservation.

Chapter III Powers and Functions of Administrative AgenciesIn GeneralMEANING OF POWERS AND FUNCTIONS

Powers FunctionsRefers to the means by which afunction is fulfilled

Where one is bound or which it isone's business to do.

SOURCES OF POWERS

It does not always come from a single source. It lies in statutesunder which they claim to act or the constitution.

The failure to exercise such powers does not forfeit them.

SCOPE OF POWERS

Most agencies have investigative, rule-making and determinativefunctions or at least 2 of such functions.

Express and implied powers Powers are measured and limitedby the constitution or law creating them or granting their powers, tothose conferred expressly or by necessary or fair implication.

o The successor of an agency which did not possess the powerto impose fines cannot arrogate unto itself such power in theabsence of legislation.

o Statutes conferring powers must be liberally

construed to enable them to discharge their

functions. They only have such powers are granted to them by law and those which are necessarily implied in theexercise of its express powers.

Inherent powerso An agency has no inherent powers although implied ones

are often spoken of as inherent.o In the absence of any provision of law, they have no

inherent powers to punish for contempt.

Quasi-judicial powerso Powers cannot be merely assumed nor can they be created by

the courts in the proper exercise of their judicial functions.o Agencies are bereft of quasi-judicial powers. Their powers

are dependent upon the provisions of the statutereposing power in them. They cannot confer it upon

themselves.o They are tribunals of limited jurisdiction. However, they

have in their favor the presumption of regularityincluding those which are quasi-judicial in nature.

Where the SEC prohibited the double listing of stock securities instock exchanges, the Makati Stock Exchange contends that the

SEC is without the authority to impose and even assuming itdoes, that it is illegal, discriminatory and unjust. The permissionreferred to in the case was actually a prohibition.

The court ruled that the commission is without the power to impose theprohibition and such results to a violation of constitutional rights. They wereneither granted by the constitution or by statute the power to prohibit thedouble listing of stock securities in stock exchanges.

The Board of Communications imposed a fine for injury causedby a failure of a communications company to transmittelegrams. It claimed that as successor in interest of the PSC, ithas the same powers as the same provided for in the Public

Service Act, one of which is to issue certificates of publicconvenience.

The court ruled that the board is without jurisdiction. The charges in this casedo not involve their failure to comply with the certificate of publicconvenience. The charge does not relate to the management of the facilitiesand system of transmission of message by the petitioner in accordance withthe certificate of public convenience.

The proper forum for them to ventilate their grievances should be in thecourts and not in the Board of Communicatons.

The BOT granted provisional permits for the operation of excesstaxicab units allegedly despite the lapse of its power to do so

under the law. As argued, the petitioners stated that the decreelimited the period of the BOT to 6 months.

The court held that the exercise of the power is not subject to the alleged timelimitation. The reading of the law indicates that it was a step towards thelegalization of colorum taxicab operators without the alleged time limitation.There is nothing in the law which suggests that the power exists only for 6months. It merely provides for the withdrawal of the state's waiver of its rightto punish said colorum operators for illegal acts.

There should be a liberal construction of the law in this case.

NATURE OF POWERS The jurisdiction of the agencies are special (what is specifically


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granted to them with those implied) and limited(constitutional and statutory purposes).

Powers conferred to them must be commensurate with the duties to be performed and the purposes to be lawfully effected. When suchpower is abused, the court may interfere.

A government agency must respect the presumption ofconstitutionality and legality to which statutes andadministrative regulations are entitled until such isrepealed or amended.

WHAT CONSTITUTES ADMINISTRATIVE POWER ORADMINISTRATIVE FUNCTION

While it has been said that there is no such thing as an administrativepower, in the constitutional sense, such classification is still

well-established.

The most important administrative function is the judgment and discretion. The power to make rules isadministrative although legislative in nature.

POWERS OF ADMINISTRATIVE AGENCIES CLASSIFIED.

As to nature:o Investigatory

o Rule-making powerso Adjudicatory powers

Note: the regulatory power of an agency may be either legislative orjudicial in nature. The power to conduct investigations and the power tocarry out the provisions of law are essentially executive or administrative innature but the latter is classified as adjudicatory where it involves theexercise of judgment and discretion.

As to degree of subjective choiceo

Discretionaryo Ministerial

Discretionary Ministerialthe person may choose which ofseveral courses will be followed.

It is the power or right conferredupon a person under certaincircumstances, according to thedictates of their own judgment andconscience, and not controlled by

judgment or conscience of others.

In respect to which, nothing is left todiscretion.

One performed in response to a dutywhich has been positively imposed bylaw and its performance required at atime and in a manner or uponconditions specifically designated,

the duty to perform not beingdependent on judgment and

discretion.


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Investigatory PowersGENERALLY

It includes the power of an administrative body to inspect therecords and premises and investigate the activities of thepersons or entities coming under its jurisdiction or tosecure, or to require the disclosure of information bymeans of accounts, records, reports, statements, testimonyof witnesses, production of documents or otherwise.

Some agencies exist for this sole purpose.

Other agencies possess this power to aid to other powers which theypossess and agencies use such powers to inform themselves ofparticular situations to determine whether they should further takeaction in the execution of particular powers or duties.

Investigation is indispensable to prosecution.

Adjudication signifies the exercise of power and authority toadjudicate upon the rights and obligations of the parties before it.

o If the only purpose for investigation is to evaluate evidence

submitted based on the facts, and if the agency is notauthorized to make a final pronouncement, then there is anabsence of judicial discretion and judgment.

Special civic action by certiorari was instituted against anadministrative agency exercising only investigatory andadvisory powers. The agency concluded that the petitioner madeuse of his public office to serve and favor his friends and to

prosecute the enemies of the latter. The board recommended thathe be reprimanded with a warning.

The court held that the board's function is limited to investigation andmaking findings. After the investigation, the president, not the integrity

board passes upon and adjudicates the rights of the parties. While it is truethat the agency has judicial discretion, such discretion is only for the purposeof evaluation and for the determination of the disputed facts (not finally settlethe rights).

Not every function wherein there is judgment and discretion are exercised isa judicial function. The test of judicial function is not the exercise of judicialdiscretion, but the power and authority to adjudicate upon the rights andobligations of the parties before it.

SCOPE AND EXTENT OF POWERS

An administrative agency may initiate an investigation on acomplaint or on its own motion. They may be required to makeinvestigations as a mandatory duty.

Investigations are usually held in private.

They have the power to enter premises and inspect or examine

such premises or things or operations therein, particularlybooks and records.

Regulatory bodies have been given the power to prescribethe forms and methods of accounts, records, andmemoranda for the business under their control, power toinspect books, papers and records, and the power torequire the filing of reports or statements or answers tospecific questions.

They do not have the inherent power to require attendance, but thisis a basic to the power of investigation. Such powers may be

validly vested on administrative agencies even for purposes notquasi-judicial.

o The power to compel will not be inferred from a grant ofauthority to summon and examine witnesses. It must beclearly given by statute.

As a general rule, a hearing is not necessary in aninvestigation by an administrative agency or official.

Persons failing to attend, give testimony, produce records at aninvestigative proceeding may be punished for contempt. But theremust be a statutory grant to punish for contempt.

Technical rules of procedure in this administrative agencies are notstrictly applied.

Committee created by an executive order of the Mayor of Manilato investigate anomalies issued subpoenas and demanded thatwitnesses testify under oath. He filed a petition to declare the

person in contempt.

The court herein held that the committee was without the authority to issuethe subpoenas. Such power was traced from the power of the Mayor toinvestigate as implied from his power to suspend or remove certain cityemployees. However, there is no statutory grant of power toinvestigate to petitioner's committee.

Respondent questioned the legality of the subpoena issued by anadministrative agency charged with the function, among others,to investigate graft and corruption, when there was no charge orcomplaint of violation of law then pending.

In this case, the committee was with authority to issue the subpoena whetheror not there is adjudication involved, and whether or not there is probablecause, even before the issuance of the complaint. It is enough that there is aninvestigation for a lawful authorized purpose.

The agency has the power of inquisition which is not dependent upon a case

or controversy in order to get evidence. The subpoena issued therefore was


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within the authority of the agency, the demand is not tooindefinite and the information is relevant.

Officers of labor union charged with unauthorized disbursementof union funds refused to deliver and deposit certain documentsin connection with the court's investigation of the charge.

The court cited the provision of law which states that the member shall beentitled to a full and detailed report from their officers and representativesthe books of accounts and other records of the financial activities of alegitimate labor organization shall be open to inspection by any officer ormember thereof.

There is a matter involved which clearly demanded the exercise by the courtof the power of investigation.

RIGHT TO COUNSEL IN ADMINISTRATIVE INVESTIGATIONS

A party in an administrative inquiry may or may not be assisted by acounsel, irrespective of the nature of the charges. No duty on such

body to furnish the person with a counsel exists. Hearing here is nota part of criminal prosecution. The right to counsel is not

always imperative in administrative investigations becausesuch merely determine whether there are facts that meritdisciplinary measures against erring public officers andemployees.

The exclusionary rule does not apply where the admission is made inan administrative investigation.

IMPORTANCE OF ADMINISTRTIVE INVESTIGATIONS

The life blood of the administrative process Is the flow of fact, thegathering, the organization and the analysis of evidence. It isimperative for rule making, adjudication and licensing as well as forprosecuting, supervising, directing, determining general policy,

recommending legislation.

Rule-Making PowersGENERALLY

The essential legislative functions may not be delegated toadministrative agencies. What may be granted to them is rule-making power to implement the law it is entrusted toenforce. It includes the power to amend, revise, alter, repealits rules and regulations.

o An administrative body may implement broad principles laiddown in a statute by filling in the details, which thelegislature may neither have time nor competence to provide.

The statutory grant to make rules is avalid exception to the rule

on non-delegation of legislative power.o The statue must be complete in itself

o Fixes the standard, mapping out the boundaries ofthe agency's authority to which it must conform.

It has the force and effect of a law and is binding on theagency and all those dealing with the agency.

Statutes operate prospectively only and not retroactivelyunless there is a legislative intent to the contrary. The same applies to

rules and regulations.

LEGISLATIVE POWER ON THE ADMINISTRATIVE LEVEL

Legislative power is the power to make, alter or repeal laws or rulesfor the future. Operates in the future.

Rule-making is legislative in character and results indelegated legislation. It is legislation in the administrative level,that is, legislation within the confines of the granting statute,as required by the constitution and its doctrine of non-delagability and separability of certain powers.

o Also called administrative legislation, delegated legislation,ordinance-making, quasi-legislation.

LIMITATIONS ON THE RULE-MAKING POWER

It may not be used to either abridge the authority given it by congressor the constitution or to enlarge its power beyond the scope intended.

o Agencies may only make rules and regulations as are within

the limits of the powers granted to it or what is found in thelegislative enactment itself, otherwise, they become

void.o It may not make rules which are inconsistent with

the provisions of the constitution or statute.o it may not amend, alter, modify, supplant, enlarge or expand,

restrict or limit the provisions or coverage of the statute as

this power belongs to the legislature.o The basic law shall prevail in case of conflict

between the two.o The rule or regulation should be uniform in operation,

reasonable and not unfair or discriminiatory.

RULES, REGULATIONS, ORDERS OR RULINGSDISTINGUISHED.

Rules Regulations Orders or rulingsGenerally used interchangeably

Usually comprise those actions which thelegislative element predominates in that they

Are actions in whichthere is more of the

judicial function and which deal with a


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establish a pattern of conduct thereafter to befollowed.

Regulations are nothing more than anadministrative opinion as to what a statute underconstruction means. They merelyinterpret whatthe legislature meant by its statutorylanguage.

particular presentsituation.

Rulings areinterpretations ofadvisory or advanceopinions and of theimplementation of thestatutes and regulationsthemselves.

KINDS OF RULE-MAKING POWERS/RULES AND REGULATIONS

Rule-making powers:o Supplementary or detailed legislation or rule-

making by reason of particular delegation ofauthority

o Interpretative legislation or rule making by

construction and interpretation of the statuteo Contingent legislation or determination whether a

statute shall go into effect.

Administrative ruleso Discretionary

o Interpretativeo Contingent (legislative)o Internal (to subordinates)o Penal (with sanctions)

LEGISLATIVE RULES AND REGULATIONS

Have the force and effect of law when issued by virtue of a statutorygrant.

Administrative riles may describe the general discretionary policiesto be followed by the agency.

If it is something more than the opinion, then the rule is legislative.o It has a statutory granto Provides that the rule shall have authoritative force.

INTERPRETATIVER RULES AND REGULATIONS

It resembles judicial adjudication. Purport to do no more thanthe interpretation of the statute being administered to say what itmeans. Construction of the law.

o They are valid in judicial proceedings only insofar as thathave been correctly construed.

o Have the force of law.o But their interpretations are not conclusive and are set

aside or ignored if found erroneous.

o The basic law shall prevail in case of conflict.

Legislative Rule Interpretative RuleNature of subordinate legislation andit has the power to create new andadditional legal provisions that havethe effect of law

Product of interpretation ofpreviously existing laws. Merelyclarifies or provides guidelines to thelaw they interpret.

Issued only under express delegationof law

Necessary incident of theadministration or regulatory statute.

Has the force and effect of law unlessthey are ultra vires orunconstitutional

Statutory interpretations hence, nostatutory sanction.

Force and effect of valid statutes Administrative findings of law andare always subject to judicialdetermination. Merely advisory.No vested right if there is a wrongfulconstruction.

Amendatory circular advises employers-members of the SSSwhat, in light of the amendment of the law, they should includein determining monthly compensation of their employees uponwhich social security contributions of the employees should bebased.

The court held that when an administrative agency promulgates rules andregulations, it makes new law with the force and effect of a valid law. It is

binding as long as the procedure fixed for promulgation is followed and thescope is within the law even if the courts are not in agreement. The circular inquestion herein is a mere administrative interpretation of the law. It

was issued only to apprise those concerned. It did not add any duty ordetail that was not already in the law mentioned.

CONTINGENT RULES AND REGULATIONS

Congress may provide that the law shall take effect upon thehappening of a future specified contingencies leaving to some otherperson or body the power to determine when the contingency hasarisen.

ORDINANCE POWER OF THE PRESIDENT

Issuances of the president:o Rules of a general or permanent character in implementation

of constitutional or statutory powers in executive orderso Particular aspects of governmental operations through

administrative orderso Declaration of a status or condition of public moment or

interest through a promulgationo Matters administrative in detail through memorandum


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orderso Internal administration matters to agencies or departments

through memorandum circularso Acts and commands as commander in chief through

general or special orders

ADMINISTRATIVE ISSUANCES OF SECRETARIES AND HEADSOF BUREAUS, OFFICES OR AGENCIES

Shall be in the form of circulars or orders.o Circulars policies, rules, regulations and procedures

pursuant to law applicable to individuals outside thegovernment

o Orders directed to particular officials or employees

concerning specific matters including assignments, etc.

Chronologically numbered

They shall keep a logbook in which all shall be recorded inchronological order all official acts.

o It shall be in the custody of the chief administrativeofficer and open to public for inspection.

o The records management and archive offices in the

general sevices administration shall provideassistance.

SPECIAL ADVANCES OF THE RULE-MAING POWER

Freed from concern with details

Additional time to investigate

Easier to correct mistakes and meet changing conditions

Hands are untied from red tape of legislative details

Can, by trial and error, work out specific regulations best calculatedto achieve the objective.

Certainty of the law is increased

Contingent legislation is a means to block out a policy from coming

into operation.

REQUISITES FOR VALIDITY OF ADMINISTRATIVE RULES ANDREGULATIONS

Issued on the authority of the law

Not contrary to the constitution or law

in accordance with the procedure

Note: In certain cases, notice and hearing or publication may be necessary tosatisfy due process.

GRANT OF RULE-MAKING POWERS

legislative grant

impliation of powers expressly granted

DETERMINATION OF VALIDITY OF THE RULES

whether the rule relates to the subject matter on which power tolegislate has been delegated

whether the rule conforms to the standards prescribed in thedelegatory statute

whether the rule is invalid on constitutional grounds such as due

process

Note: If interpretative, it should be correctly interpreted and that there benothing new added.

TEST OF DETERMINING VALIDITY OF THE RULES

Invalid if it exceeds authority granted

Invalid if it conflicts with the governing statute

Void if it extends or modifies the statute

Void if it has no reasonable relationship to the statutory purpose

Set aside if unreasonable, arbitrary or unconstitutional

Philippine Lawyer's Association v. AgravaAccording to a circular issued by the Director of Patents pursuant to thePatent Law (which states that he shall have the power to promulgate thenecessary rules and regulations for the conduct of all business in the PatentOffice), members of the Philippine bar, engineers and other persons withsufficient scientific and technical training are qualified to take saidexamination. It, in effect, requires members of the Philippine bar in goodstanding to take and pass examinations given by the Patent Office as acondition precedent to their being allowed to practice before said office.

The court held that the examination required is not authorized byany law. It amounts to a requirement to pass an examination on top of

passing the bar exams before they can be allowed to practice before saidpatent office.

Philippine Inter-Island Shipping Association of the Philippines v.Court of Appeals

Executive Order 1088 was issued by marcos providing for uniform andmodified rates for pilotage services rendered to foreign and coastwidevessels in all private and public ports. It increased the rates of existing

pilotage fees previously fixed by the PPA. However, PPA refused to enforceit.

When UHPAP announced its intention to implement the executive order, in

effect served as a warning that disciplinary sanctions will be imposed.However, PPA issued a memorandum which fixed pilotage fees lower than


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those provided for by the law.

The court held that EO 1088 is in the nature of a law and thecircular issued by the PPA were in the nature of subordinatelegislation in the exercise of delegated power. What determines

whether an act is a law or an administrative issuance is not its form but itsnature. As a valid statute, PPA is duty bound to comply with the provisions. Itmay increase the rates, but it may not decrease them below those mandated

by the executive order. Much less could the PPA abrogate the rates fixed and

leave the fixing of the rates for pilotage services to the contracting parties as itdid.

REQUIREMENT OF REASONABLENESS

Must bear reasonable relation to the purpose sought to beaccomplished. Invalid if otherwise.

Must be supported by good reasons

Free from constitutional infirmities or charge of arbitrariness

Note: a liberal interpretation of the rules and regulations of anadministrative agency is justified in cases where their rigid enforcement willresult in a deprivation of legal rights.

Lupangco v. Court of AppealsPRC issued a resolution as part of its additional instructions to examinees toall those applying for admission to take the license examinations inaccountancy which prohibits examinees from attending any review class,briefing, conference or the like conducted by schools, colleges, universitiesand the like.

The court held that the resolution is unreasonable despite its goodaim. Although their purpose was to preserve the integrity and purity of theexaminations, it cannot be used to conceal constitutional infirmities. On its

face, the resolution is unreasonable. It is unreasonable in that one who iscaught committing the acts even without any ill motives will be barred fromtaking future examinations conducted by the respondent PRC. Also, it isdifficult to implement in that they cannot possibly keep a watchful eye onevery examinee during the 3 days before the examination period. They had noauthority to dictate on how the examinees should prepare themselves for theexam. They cannot be restrained from taking all the lawful steps needed toassure the fulfillment of their ambition. It also violates the academic freedomof schools.

INTERNAL RULES AND REGULATIONS

Such rules and regulation create no relation except between the

superior and subordinate.

They ad administrstive in nature and do not pass beyond thelimits of the department or agencyto which they are directed.

Creates no rights against or for third persons.

Olsen and Co. v. Herstein and RaffertyUnder the provisions of the Tariff Act of 1913 in the US, certain products

from the Philippines were admitted in their country duty-free. For thisreason, Governor General issued an executive order requiring the adoptionby the Insular Collector of Customs and CIR of such rules and regulationswhich will ensure that the government of the US will not be defrauded by a

Philippine exposure who may attempt to introduce to the US articles whichare not products of the Philippines.

The order herein is nothing more or less than a command from asuperior to an inferior. Disobedience to or deviation from such an ordercan be punished only by the power to which issued it and if that power fails toadminister the corrective, then the disobedience goes unpunished. Since it isan internal rule, it is beyond the court's power.

PENAL RULES AND REGULATIONS

They may impose penal sanctions if there is a law granting suchauthority to them.

o the law itself must provide for the penalty to beimposed

o fix or define the penalty

o punishable or made a crime under the law itself

o must be published in the Official Gazette

The Administrative Code requires that every rule establishing ordefining an act which is punishable as a crime or subject to a penaltyshall be published in full txt.

The lawmaking body cannot delegate to an agency the power to

declare what acts shall constitute a criminal offense and how it shallbe punished. Prescribing penalties is a legislative function.

People v. MacerenThe Secretary of Agriculture and Natural Resources issued an order whichrestricted the ban against electro fishing to fresh water fisheries pursuant tothe fisheries law which punishes: 1) use of obnoxious circumstance; 2)unlawful fishing in deep sea; 3) unlawful taking of marine mollusks; 4)illegal taking of sponges; 5) failure to report the kind and quantity of fishcaught and other violations.

The court held that the order is invalid for the power to declarewhat constitutes as a criminal offense cannot be delegated. There isnothing in the law which punishes such act. The lawmaking body cannot


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delegate to an executive official the power to declare what acts shouldconstitute as a criminal offense. An agency can have only the power expresslyor by necessary implication conferred upon it.

US v. Panlilio Act 1760 provide penalty for violation of acts relating to quarantininganimals suffering from dangerous or contagious diseases. In this case,inspite of the owner's knowledge of the order declaring his carabaos to besubject to quarantine for rinderpest, he drove them from place to place inhis hacienda and used them in a manner as if they had not beenquarantined.

The act only penalized violation of its provisions and not thoserules and regulations issued by the Bureau thereunder. The ordersare not statutes and violation of such orders is not a penal offense unless thestatute itself somewhere makes violation thereof unlawful and penalizes it.

US v. Tupasi MolinaAct 2169 provides for an examining board for the municipal office andprovides that, subject to the approval of the Secretary of Commerce, thedirector of the constabulary shall prepare an examination manual

prescribing the suitable rules for the conduct of the examination. Under theact, it is essential that the examinee shall have no criminal record. T signedunder oath the application form prescribed by the examination and he

swore to the facts therein. Hence, he is being prosecuted for perjury.

He may still be prosecuted since the affidavit was authorized orrequired by law and that he knew his answer was false.

People v. SantosS is being charged with violation of Section 28 of the Administrative Orderissued by the secretary of agriculture pursuant to Act 4003 in that hewillfully had his boat operated by his fisherman and ordered them to fish,loiter and anchor without permission from the Secretary of Agriculture.

However, Act 4003 contains no similar provision prohibiting boars notsubject to license from fishing within 3 km of the shoreline of islands and

reservations without the permission of the secretary.

The court held that the provisions in the order is invalid for theprovisions in the conditional clause is not contained in the law.Such is an exercise of legislative power which he does not have and therefore,such clause is null and void.

People v. Que Po LayAppellant was in possession of foreign exchange and failed to sell them tothe Central bank within one day following the receipt of such foreignexchange as required by Circular 20 in connection with RA 265. Hecontends that such circular was not published in the gazette hence, it had no

force and effet.


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The circular is without force and effect since it was not publishedin the Official Gazette as required for their effectivity. The

Administrative Code requires that statutes passed by congress shall in theabsence of any special provision, take effect at the beginning of the 15th dayafter the completion of the publication in the OG. Circular 20, being a issuedfor the implementation of the law according to its issuance, has the force andeffect of law according to settled jurisprudence. Since the public is bound byits contents, it must first be published and the people officially and specially,must be informed of its contents and penalties.

LEGAL FORCE AND EFFECT OF ADMINISTRATIVE RULES ANDREGULATIONS

Legislative rules: It has the force and effect of law and are, just asbinding upon all the parties, as if they had been written in theoriginal law itself.

Interpretative rules: their validity is subject to challenges incourt, but is entitled to great weight and consideration by thecourts.

o It is not conclusive and will be ignored if found to beerroneous or in conflict with the letter of the governingstatute or the constitution and other laws.

o It is important only when the statute itself is ambiguous.

Rules of procedure within an agency: are binding on bothagency and respondent parties.

o An agency has no jurisdiction to act unless proper

application is made within the time prescribed by agencyrules.

o Courts are competent to deter an agency's own interpetationof procedural rules when justice so requires.

o Void if they are in conflict with the law.

PRINCIPLES OF ADMINISTRATIVE CONSTRUCTION

Generally, are also subject to the same principles of construction asapplied to the construction of statutes.o Intention is controllingo Give a construction that will sustain validityo Penal provisions are to be given a strict construction, but not

contrary to intentiono If involving public administrative agency, there should be a

strict construction against it. Any ambiguities will beresolved in favor of the adversary.

o Construed liberally, in general.

EFFECT OF RELIANCE ON RULES

A person who relies in good faith on agency rule should be harmlessfrom loss if that rule is later held invalid or is amended.

o Erroneous interpretations are a nullity and no vested rightsarise since the agency's only power is to rules that wouldcarry effect the statutory intent.

o Protection is accorded to parties who had relied on anadministrative rule that was subsequently amended orrepealed. The new rule is to be applied prospectively, not inretrospect.

RETROACTIVE OPERATION OF RULES, REGULATIONS ANDRULINGS

Ordinarily, the power to give the rules a retroactive effect is present,provided that doing so does not conflict with the restrictions on thelegislative power to make retroactive laws.

o Not applied if unreasonable, inequitable, and contrary to theintention.

AMENDMENT OR REPEAL OF ADMINISTRATIVE RULES ANDREGULAITIONS

An agency has the authority to change, alter, amend, or correct therules and regulations duly promulgated by it, and the fact that it has

been amended does not make it unreasonable.o The change must be made in accordance with the procedural

requirementso Not a retroactive change

o Not bound by the rule of res judicatao Parties may voluntarily waive compliance with procedural

rules (founded on acts as well as verbal declarations).

Hilado v. Collector of Internal Revenue H filed his income tax return and declared a deductible pursuant to acircular issued by the Secretary of Finance. However, this was subsequentlyamended and such deductible was disallowed as a deduction from his grossincome.

The court held that the secretary of finance acted within hisauthority.A regulation that is merely an interpretation of the statute whenonce determined to have been erroneous becomes a nullity. No vested oracquired rights can arise from acts or omissions which are against the law or

which infringe upon the rights of others.

Ollada v. Secretary of FinanceUnder the National Internal Revenue Code, all corporations and companieswhose gross quarterly sales do not exceed 5000 are required to keep asimplified set of bookkeeping records duly authorized by the secretary. Thesecretary amended the rules by requiring the records to be specially

designed for each class or kind of trade and prepared by a CPA.


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The court held that the resolution is not unreasonable or arbitraryand that regulations issued are subject to amendment orrevocation by successors.

Fortich v. Corona In a decision, the SC struck down as void the act of the Office of the President in reopening the case through the issuance of the win-winresolution which substantially modified its previous decision that had longbecome final and executory, being in gross disregard of the rules and basiclegal concept that accord finality to administrative determinations.

Procedural rules should be treated with utmost respect and dueregard since they are designed to facilitate the adjudication ofcases to remedy the worsening problem of delay in the resolutionof rival claims and in the administration of justice. The late filing ofthe DAR of the motion for reconsideration cannot be excused in this casesince they have not shown a reason for a relaxation of the rules. Hence, thefinal and executory character of the OP decision can no longer bedisturbed. Res judicata has set in.

Decisions/resolutions/orders of an administrative body which is declared tobe void on the ground that the same was rendered without or in excess of jurisdiction or with grave abuse of discretion is by no means a meretechnicality of law or procedure. When OP decision became final andexecutory,vested rights were acquired by the petitioners. Hence, itis no longer a question of technicality, but that of substance andmerit.

Separate Opinion:By suspending the 15 day period for filing a motion for reconsideration andreopening the decision, the president clearly exercised his control over analterego within the framework of a constitutional and presidential system of

governance. Under exceptional circumstances, the court has suspended therules to prevent a miscarriage of justice. In this case, there is no reason to

withhold the power to suspend the rules from the president and grant it aloneto the other branches of the government.

FORMAL REQUIREMENTS ON THE PROMULGATION OF RULESAND REGULATIONS

Every agency shall file with the University of the Philippines, 3certified copies of every rule adopted by it.

o A permanent register of the rules shall be kept and open to

public inspection.

The rule shall be effective 15 days from the filing unless a different

date is fixed by law or specified in the rule in cases of imminentdanger to health, safety and welfare, the existence of which must be

expressed in a statement accompanying the rule.

UP Law Center shall publish a monthly bulletin setting forth the textof rules filed with it.

o Keep a complete index and tables and up to date codification

They may omit from the bulletin any rule if the publication would beunduly cumbersome, expensive or otherwise inexpedient but copiesof the rule shall be made available to on application to theagency which adopted it and the bulletin shall contain anotice stating the general subject matter of the omittedrule.

Furnish one copy to the office of the president, congress, all appellatecourts and the national library.

An agency shall, as far as practicable, publish or circulate noticesof proposed rules and afford interested parties theopportunity to submit their views prior to the adoption of anyrule.

In fixing rates, no rule or final order shall be valid unless theproposed rates shall be published in a newspaper of generalcirculation at least 2 weeks before the first hearing thereon.

Rules on contested cases shall be observed.

REQUIREMENTS OF NOTICE AND HEARING OR PUBLICATION

Prior notice to and hearing of every affected party is not requiredsince there is no determination of past events or facts to have to beestablished or ascertained.

When a function which is legislative in nature is delegated, thelegislature need not require a notice or hearing as a prerequisite tothe act of the agency, since the legislature could itself have performedthat act without notice or hearing particularly where the riles are ofgeneral application, procedural, or interpretations.

When such rules or rates apply to a particular party andarepredicated upon a finding of fact which is denied by said

party, the agency making such finding of fact, performs afunction partaking of a quasi-judicial nature that validexercise demands a previous notice and hearing to satisfythe requirements of due process.

Publication is required as a condition precedent to the effectivity of alaw to inform the public of the contents of the law or rules andregulations before their rights and interests are affected by the same.Prior publication cannot be dispensed with for the reason that suchomission would offend due process.

o Publication must be in full or it is no publication at all.

Interpretative and internal regulations do not require publication.

Eastern Shipping Lines v. Court of AppealsPetitioner assails the constitutionality of EO1088 which fixes the fees for


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pilotage services on the ground that its interpretation and application is leftto private persons and that it constituted undue delegaton of powers.The order is valid. PPA is duty bound to comply with the provisions of saidorder. PPA may increase rates but may not decrease them below thosemandated by EO1088.

Adjudicatory PowersGENERALLY

Describes the powers and functions which involve the decision ordetermination by administrative agencies of the rights, duties,obligations of specific individuals and persons, as contrasted withpowers of administrative agencies which involve decisions ordeterminations in the broadest sense, involve persons generallyrather than specially and usually operate prospectively.

Not all determinations by an agency are judicial in nature or quasi-judicial.

It is the power to hear and determine or to ascertain factsand decide by the application of rules to ascertained facts.They are enabled to interpret and apply not only implementing rulesand regulations promulgated by them, but also the laws entrusted totheir administration.

Exercise of such power must be accompanied with certain formalitiesand safeguards characteristic of the judicial process.

o Agencies, though, are not considered courts.

Judicial Power Quasi-judicial PowerPower to hear, try and determine allsorts of cases at law and equity whichare brought before the courts. It isthe authority to make final of whatthe law is and adjudicate therespective legal rights or liabilities ofthe contending parties with respectto the matter in controversy.Duty is primarily to decide questionsof legal rights between parties withrespect to the matter in controversy,such being the primary duty and notmerely incidental to regulation orsome other function.

There is freedom of action orindependence and the absenceof control or coercive influence.

Where the function of the agency isprimarily administrative and thepower to hear and determinecontroversies is granted as anincident to the administrative duty

EXTENT OF JUDICIAL OR QUASI-JUDICIAL POWERS OF

ADMINISTRATIVE AGENCIES

Their jurisdiction is limited because the need for special competenceand experience has been recognized as essential in the resolution ofquestions of complex or specialized character and because of thecompanion recognition that the dockets of our regular courts areclogged.

Normally defined in the enabling act of the agency.o It depends largely on the provisions of the statute. It is never

implied.

Split jurisdiction is not favored.All controversies relating to thesubject matter pertaining to its specialization are deemed to beincluded within its jurisdiction.

When there is nothing in the law that would suggest that a particularpower has been granted, such as the power to decide contractualdisputes, the same cannot be exercised. A public official must locatein the statute relied upon, a grant of power before he can exercise it.

A court cannot compel an agency to do a particular act or to enjoinsuch act which is within the latter's prerogative, except when in theexercise of its authority, it gravely abuses or exceeds its jurisdiction.

Philex Mining v. ZaldiviaThe Director of Mines dismissed an adverse claim filed by Philex Mining onthe ground that when S located a mining claim, he was the generalmanager of Philex and he was still so when he transferred the claim to Ywho was then also an employee of Philex. Hence, both merely acted asagents of Philex. The dismissal was due to lack of jurisdiction since the issueis judicial in character.

The director has no jurisdiction in this case. There is no question offact nor matters requiring technological knowledge and experience. The issueis reserved in conforming with legal rules and standards governing the powerof an agent. The adverse claim here arises from the alleged fiduciary orcontractual relationship between the petitioner and locator of the mine. This

is not a mining conflict and it is immaterial whether the mining claim inquestion has or has not passed out of the administrative control of theDirector of Mines.

Antipolo Realty v. NHAFor failure of AR corporation to develop a subdivision project, Y stoppedmonthly installment payments as permitted by their contract. AR rescindedthe contract and forfeited all payments made by Y who brought the disputeto NHA.

NHA was legally empowered to decide on the matter at issue byvirtue of PD 957. It has the authority to decide cases of claims involving

refund and any other claims filed by the subdivision lot unit buyer against the


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project owner and cases involving specific performance of contractual andstatutory obligations filed by the buyers of subdivision lots against the owner.

Guerzon v. Court of AppealsG and PSP entered into a Service Station Lease for the use and operation ofrespondent's properties and equipment for 5 years. When it was about toexpire, PSP informed G that the contract was no longer going to berenewed. G refused to vacate the premises. BEU then issued an order to

vacate pursuant to a presidential decree which confers upon the BEU toimpose of collect fine for every violation of the its orders, decisions, rules orregulations.

BEU has no authority to issue such order. The order merely makes a vague reference to a violation of BEU laws without stating the specificprovision of law violated. BEU, moreover, has no power to issue the order to

vacate since it is only empowered to impose a fine and order the suspensionof the operations of the establishment.

Furthermore, BEU has no power to decide contractual disputes betweengasoline dealers and oil companies in the absence of express provision of law

granting such power. The BEU's jurisdiction is limited to cases of violationand non-compliance with any term or condition of any certificate, license,permit issued by it or of any of its orders, decisions, rules or regulations.

Investigative AdjudicativePurpose is to discover, find out,learn, or obtain information. It doesnot include the power to decide orresolve a controversy involved in thefacts inquired into by application ofthe law to the facts established by theinquiry.

To settle in the exercise of judicialauthority. It implies a judicialdetermination of a fact and the entryof a judgment.

Legislative or Rule-Making AdjudicativeResembles a legislature's enactmentof statutes. It looks into the futureand changes existing conditions bumaking a new rule to be appliedthereafter

Declares and enforces liabilities asthey stand or present or past factsand under laws supposed to exist.

Lays down the general regulationsthat apply to or affect classes ofpersons or situations

Applies to named persons or tospecific situations

Note: Regulatory or rule-making powers may, in certain instances, mergeinto determinative, or adjunctive powers.

Generally, prior notice and hearingare not essential to govern futureconduct since there is nodetermination of past events or factsthat have to be established orascertained.

The determination of facts and theapplicable law as the basis for theexercise of judicial discretion areessential.Due process requirements are to beobserved.

NATURE OF PARTICULAR ACTS

Licensing,enabling orapproving

Administrative or quasi-judicial

Dependent upon the ascertainment of facts by theadministrative agency.

If it depends upon the ascertainment of the existenceof certain past or present facts upon which adecision is to be made and the rights and liabilitiesto be determined, it is quasi-judicial.

FixingRates andCharges

Legislative or quasi-judicial

If legislative, giving of prior notice and hearing is notrequired.

If quasi-judicial, prior notice are essential to the

validity of such rates.

Note: May be empowered by law to approve provisionally, when demanded by urgent public need, rates of publicutilities without a hearing.

The rate must be non-confiscatory and establi

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ADMIN[Ch1 3 Reviewer]