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ADMINISTRATIVE LAW - DE LEON REVIEWER Chapter I Introduction Administrative Law the entire system of laws which the machinery

ry of the State works and by which the state performs government acts. It includes all the laws that regulate or control the administrative organization and operations of the government 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 of administrative 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 of executive and administrative authority on the one hand and of the individual or private rights on the other. It is the part of law which governs the organization, functions and procedures of administrative agencies of the government which quasi legislative powers are delegated and judicial powers are granted and the extent and manner to which such 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 and functions, procedures including adjudication. Provides the remedies available to aggrieved parties in administrative actions Governs judicial review of the administrative actions or decisions Includes the rules, regulations, orders and decisions made by the administrative authorities dealing with the interpretation of the law and enforcement entrusted to their administration. Judicial decisions dealing with the abovementioned. Note: It is not only the law that governs the administrative authorities, but also the law made by the administrative authorities whether of general or particular applicability. Administrative authorities all those public officers and organs of the government charged with the amplification, application and execution of the law but do not include the doctrine of separation of powers. CONCERNS OF ADMINISTRATIVE LAW

Private rights o 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 powers o Generally concerned with agencies with delegated powers and not with the exercise of the constitutional powers of the president. Administrative Law Lays down the rules which guide the officers of the administration in their actions as agents of the government International Law not binding upon the officers of the government considered in relation to their own government except insofar as it has been adopted to their administrative law. Constitutional Law Prescribes the general plan or framework of the governmental organization Treats of the rights of individuals. The emphasis is on the rights.

Administrative Law Gives and carries out the general plan in minute details Treats the rights of individuals from the standpoint of the powers of the government It emphasizes the powers of the government and duties of the citizens Indicates to the individuals the remedies for the violation of their rights

It prescribes the limitations on the powers of the government to protect the rights of the individuals against abuse in their exercise. Note: Administrative law is necessary the supplement of the Constitutional Law. But administrative law also complements constitutional law insofar as it determines the rules relative to the activity of the administrative authorities. Administrative Law Criminal Law Note: Criminal law is applied to all branches of the law, including administrative law. The most common and efficient way of enforcing an administrative rule is by giving it a penal sanction. The mere affixing of the penalty does not deprive such rule of its administrative character. Administrative Law The subject matter of administrative law is public administration. Law of Public Administration It has to do with the practical management and direction of various

They are apparently synonymous with each other. But the true field of administrative law refers only to the external aspect of public administration. It is a narrower branch but constitutes the bulk of public administration.

organs of the State and the execution of state policies by the executive and admin offices PURPOSE

authorities (general regulations and particular determinations delegations of power Ex. Presidential proclamations, cease and desist orders of SEC, etc.) 1) Procedural Administrative law imposes the procedure to be followed in the pursuit of its legal purpose 2) Substantive administrative law establishes the primary rights and duties 1) General administrative law general in nature and common to all (constitution, doctrine of exhaustion of administrative remedies, judicial review) 2) Particular administrative law pertains to particular agencies proceeding from the statute creating the individual agency and has little or no application except in connection with such agency. - the law is to be applied only to the cases falling under the agency's jurisdiction.

PRINCIPAL SUBDIVISIONS OF ADMINISTRATIVE LAW The distinction, however, is relative than absolute for the 2 aspects are so closely interrelated and at many points quite inseparable. Administrative law is primarily concerned with the problems of administrative regulation than those of management. Internal administration treats the legal relations between the government and its administrative officers and of the legal relations that 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 superiorsubordinate, etc. o Institutional side as a going concern which includes the legal structure or organization of public administration, and legal aspect of institutional activities. External administration concerned with the legal relations between administrative authorities and private interests. o Survey of powers and duties that relate to private interests o Analysis of the scope and limits of such powers o Sanctions attached to or means of enforcing, official determinations o Examinations of the remedies against the official action. CLASSIFICATION OF ADMINISTRATIVE LAW Classifications and distinctions SOURCE 1) the law that controls the administrative authorities (constitution, statutes, judicial decisions, executive orders, administrative order of superiors to subordinates) 2) law made by administrative


ORIGIN AND DEVELOPMENT OF ADMINISTRATIVE LAW The rapid expansion of the administrative agencies and their increased 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 anormous expansion of public administration. So, the legislature had to create more and more administrative bodies, boards or tribunals specialized in their particular fields. There is a need for broad social or governmental control over complex conditions and activities which in their detail could not be dealt with directly in an effective manner by the legislature 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.

Such agencies represent a fusion of different powers of the government. o They are vested with the power to promulgate rules, carry out the regulations and decide on the controversies within the scope of their activities. Administrative law is still in its formative stage and is being developed 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 legislative delegation of a function is made effectual in particular situations. o Embraces matters concerning the procedure in disposition, and the matter in which determinations are made, enforced and reviewed. Advantages of administrative adjudication o It insure greater uniformity and impersonality of action The judicial process is not an alternative to the administrative process. 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 administrative agencies. o Prevention is also a major purpose of licensing statutes. Licensing is both one of the most burdensome and one of the most effective forms of regulation. Limitations upon effective legislative action since there are many administrative functions, which could not be performed by Congress. o There are limitations, which make it practically an impossibility for congress to do all the things it theoretically could do (e.g. lack of time, specialized knowledge, lack of staff to secure information, complexity of problems, etc.). Limitations upon exclusive judicial enforcement also is a problem is adjudicatory powers are not given to the agencies since many 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 the responsibility, it would be more advantageous. Continuity of attention and clearly allocated responsibility o 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 business and to provide the necessary records CRITICISMS AGAINST ADMINISTRATIVE ACTION Tendencies toward arbitrariness Lack of legal knowledge and aptitude to adjudicate Political bias or pressure brought 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 AND COURTS 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 on questions within its administrative competence. They are not hierarchical, nor is the court a super commission. The court is to accommodate the administrative process to the judicial system; accommodate private rights and public interest in the powers reposed in administrative agencies; and to reconcile in the filed of administrative action, democrative safeguards of fair play. The courts must also see to it that the powers are not unlawfully vested in the agencies and to maintain the constitutional and statutory rights of the person. o They should give due deference to the agencies to ensure that the powers given them are not usurped or unwarrantedly limited or interfere with the proper exercise of their valid powers. o They should lend the powers of the court to the proper attainment of the valid objectives of the agency. o Leave the legislature or the people the remedy for administrative action. ADMINISTRATION OF GOVERNMENT Administration of government is charged to the administrative officers The work done is not necessarily or even often, the result of any controversy and is not merely dependent on the solution of the ADMINISTRATION OF JUSTICE Administration of justice is charged to the judicial officers Decision of controversies between individuals and government officers What is the law applicable to the

question of what is the law but made also as a result of consideration of expediency. They must determine what is the law and whether in case they are competent to act, if it is wise for them to act.

facts presented before them?

ADMINISTRATION AS A SEPARATE POWER The term administration cannot be so plainly defined as it may slightly overlap with the legislative and the judicial field. It is a function. It is the execution, in non judicial manner, of the law or will of the state expressed by the competent authority. It is the activity of the executive officers of the government. o Has something to do with carrying the laws into effect by way of management or oversight, investigation, regulation, constroll in accordance with the principles prescribed by Congress. As an organization, is is that group or aggregate of persons in whose hands the reins of the government are for the time being. It is the entire administrative organization extending from the Chief Executive to the subordinates. Note: It is both a function (execution of the law) and the totality of the executive and administrative authorities. ADMINISTRATION (as an organization) Aggregate of persons in whose hands the reins of the government are entrusted by the people for the time being. GOVERNMENT Institution or aggregate of institutions by which an independent society makes and carries out those rules of action which are necessary to enable men to live in a civilized state or which are imposed upon the people forming that society boy those who possess the power or authority of prescribing them. Aggregate of authorities which rule a soeicty.

Chapter II Nature and Organization of Administrative Agencies Status and Characteristics CREATION, REORGANIZATION AND ABOLITION OF ADMINISTRATIVE AGENCIES Some are created by virtue of the constitution but most are created by legislative enactments. The executive may also create agencies under 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 or contraction of their powers and functions, or to reorganization or abolition at the will of Congress. o when the purpose is to abolish the agency, and replace it with another, it should specify that the previous agency is abolished 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 is pursued in good faith). MEANING OF ADMINISTRATIVE AGENCY Administrative agency is the term used to describe an agency exercising some significant combination of executive, legislative, and judicial powers. It is charged with the administration and implementation 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 an administrative 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 the national government) or a local agency (if local government). Administrative agency Generally a large organization staffed by men who are deemed to become something of experts in their particular fields. Performs a variety of functions Uses a varying degree of discretion in arriving at decisions and often proceeds without being bound by technical rules of evidence or procedure Court Tribunal presided by one ore more jurists learned in the law Judicial functions only. Governed by fixed rules in arriving at decisions and bound by the riles that no final adjudication is to be made until after due notice to the parties with opportunity for a full and fair

hearing. STATUS OF CHARACTER OF PARTICULAR ADMINISTRATIVE AGENCIES Generally, they may be said to be agencies of the state or government, representing no private interests of their own, but functioning or acting within the scope of their authority for and on behalf of the government and as representatives of the public or guardians of their interest and not those of private persons. o Vested with the real power to act for the government. Authority to act with the sanction of government is essential. o The form or the function of the agency is not determinative 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 bound by the rules applicable to courts. They do not come within the meaning of "in any court" of a state. o Their function is not to adjudicate, but to represent a public interest. Although they are not courts in the strict sense, they are so in the broad sense since they exercise adjudicatory powers. Their proceedings partake the nature of a judicial proceeding. Their functions are PRIMARILY REGULATORY even if it conducts hearings. Certain agencies are deemed to be agents of the legislative branch of the government and not of the executive branch while others, are deemed agents of the latter. o They may perform legislative or quasi-legislative functions although they are without legislative power in the strict sense. 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 can sue or be sued in courts. Others even have perpetual existence apart from their members. MAIN CHARACTERISTICS OF ADMINISTRATIVE AGENCIES They are necessarily large. Their staff includes many people performing 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 formal adjudication and for rule-making. A particular administrative agency is charged by congress with a particular statutory end. o Generally, they are charged with the responsibility of making good to the people a major part of the ends of a democratic government. They cannot take a purely neutral attitude toward 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 with fair 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 and staff of the agency. The major work of the head of an agency is supervision and direction. They cannot be the specialist in all kinds of work, but specialists must be immediately available to them. o Agencies must be founded upon the reality that many persons in the agency other than the heads, must do the bulk of his work, with him supervising. o Hence, there should be a delegation of function and authority. It is a predominant feature of their organization and procedure. DELEGATION OF FUNCTION AND AUTHORITY Types of delegation: o Delegation of internal management o Delegation of authority to dispose of routine matters o Delegation of authority to dispose of matter informally or initiate formal proceedings o 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 be combined with supervision and control. o It may even involve decentralization through delegation to field offices. TYPES OF ADMINISTRATIVE AGENCIES Classified according to their purposes o 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)

o o o o

Performing some business service for the public (Philippine Postal Corporation, PNR, MWSS NFA, NHA) Regulate business affected with public interest (LTFRB, Energy Regulatory Board, HLURB, Bureau of Mines, Geosciences, NTC). Where the government seeks, under police power, to regulate businesses and individuals (SEC, MTRCB, GAB, DDB, BTRCP) Set up to adjust individual controversies because of some strong policy involved (NLRC, ECC, SSS, SEC, DAR, COA)

Administrative Organization DISTRIBUTION OF POWERS OF GOVERNMENT Administrative Organization refers to the administrative structure of government including political subdivisions and the allocation of powers, functions, duties to various units or agencies. o POWERS: Traditionally, legislative, executive and judicial o 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 functions conferred upon them by the constitution and the law. IN addition to this, there is also the Ombudsman and the independent commission on Human Rights. o the state is also mandated to establish an independent monetary authority and an independent economic and planning 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 pertain to the first family. o Executive office headed by the executive secretary (office of executive secretary, deputy executive secretaries and assistant executive secretaries), it shall be fully responsive to the specific needs and requirements of the president to achieve the purposes and objectives of the office. o Staff Support System embraces the offices under the general categories of development and management, general government administration and internal administration. o Presidential Special Assistants/Advisers System includes special assistants and advisers as may be needed by the president providing consultative or advisory

services. Agencies under the Office of the President (referring to those offices under the chairmanship of the president, under his supervision and control, under his administrative supervision, attached to the office of the president for policy and proper coordination, and those not placed under any special department by law. 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 the units thereof or transferring functions from one to another. o He may transfer any function of the office of the president to any other department or agency as well as from the agency 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 agencies to the office. ORGANIZATION OF DEPARTMENTS Department an executive department created by law. It includes any instrumentality having assigned the rank of a department, regardless of designation or name. Number, purpose and decentralization o Departments can be established as are necessary for the functional distribution of the work of the President o They should be organized and maintained to insure their capacity to plan and implement programs in accordance with the national policies o Grouped on the basis of their major functions to achieve simplicity, economy and efficiency to minimize duplications and overlapping. o The functions shall be decentralized to reduce red tape, free central officials from administrative details concerning field operations and relieve them from unnecessary involvement in routine and local matters. Department proper o 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 be provided by the Code or law. o If necessary, an assistant secretary may be created o In abence of special provisions, major staff units of each department shall be the services which shall include the planning service, financial and management service,

administrative service and when necessary, technical and legal services. Jurisdiction over bureaus. The departments shall have jurisdiction over bureaus, offices, regulatory agencies, etc, assigned to it by law. Assignment of offices and agencies the president shall, by executive 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 ASSISTANT SECRETARIES The authority and responsibility for the exercise of the mandate of the department and for the discharge of its powers and functions shall be with vested in the Secretary who shall have supervision and control over the department. The undersecretary shall advise and assist the secretary in the formulation and implementation of the department objectives and policies. o He shall discharge the secretary's functions in case of absence or inability to discharge or for any cause or in case of vacancy of said office unless otherwise provided by law. The assistant secretary shall perform duties and functions as may be provided by law or assigned to him by the secretary. DEPARTMENT SERVICES Planning service services related to planning, programming and project development and discharge such other functions as may be provided by law. Financial and Management Services advise and assist the secretary on budgetary, financial and management matters and shall perform 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 and custodial work. Technical Service take charge of technical assistance essential which does not fall under the 3 other services. Legal service if the work involves substantial legal work, in which case, the administrative service shall not have a legal division. It provides legal advice to the department where the workload of the department does not warrant a legal service or a legal division, there shall be one or more legal assistants in the Office of the Secretary. ORGANIZATION OF BUREAUS

Bureau refers to any principal subdivision or unit of any department given or assigned the rank of a bureau, regardless of actual name or designation, as in the case of department-wide regional offices. o Principal subdivision of the department performing a single major 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, efficient and effective performance of its functions. Powers and duties of heads of bureaus or offices o The head of the bureau shall be its chief executive officer and shall exercise overall authority in matters within the jurisdiction of the bureau. o The head shall appoint personnel to all positions in his bureau in accordance with the law. In case of the line bureau or office, the head shall also appoint the second level personnel of the regional offices unless such power has been delegated. He shall also have the authority to discipline the employees in accordance with the CSC. o He may, designate the assistant head to act as chief of any division or unit within the organization without additional compensation. o He shall prescribe the form and fix the amount of all bonds executed by private parties pertaining to his bureau or office. o Prescribe forms and issue circulars or orders to secure the efficient administration of his bureau o Issue orders regarding administration of its internal affairs Bureaus are either STAFF OR LINE o Staff bureau primarily perform policy, program development and advisory functions. It shall avail itself of the 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 his bureau's specialization; provide advisory and consultative services to the regional office of the department; develop plans for the attainment of their objective; other duties as may be provided by law. o Line bureau directly implement programs adopted pursuant to the department's plans and policies. It may have staff units as may be necessary. If the bureau is small, only a single unit performing combined staff functions may be provided. Its director shall: exercise supervision and

control over all divisions and other units under the bureau; establish policies and standards for the operation; promulgate rules 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 field service areas. o Administrative regions NCR, RI-XII o 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 be provided by law. He is responsible for the department or agency functions in the region. Whenever the function or activity requires central or inter-regional action, the function may be performed by the regional offices under the supervision and control of the department proper or line bureau concerned. A regional office shall: implement laws, policies, programs, etc. in the regional area; provide economic, effective and efficient service to the people; coordinate with regional offices of other departments bureaus and agencies in the area; 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 clear necessity. 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 contemplates supervision and control. Adminsitrative supervision governs the relationship between the department or its equivalent and regulatory agencies or other agencies as may be provided by law. o Limited to: general oversight of operations of such agencies to insure proper management; require submission of reports and cause conduction of management audit and evaluations; take actions as may be necessary for the proper performance of official functions; review and pass upon budget proposals but may not increase them. o Does not include: appointments and other personnel actions except when appeal is made from an action of appointing

authority; review of contracts entered into by the agency in the pursuit of its objectives; power to review, reverse, modify, the decisions of regulatory agencies in the exercise of their regulatory or quasi-judicial functions. Attachment the lateral relationship between department or its equivalent and the attached agency or corporation for purposes of policy and program coordination. o May be accomplished by: having the department represented in the governing board of the attached agency or corporation; having the attached agency comply with a system of periodic reporting; having the department provide general policies through its representative in the board. Note: Day to day administration shall be left to the discretion and jusgment of the executive officer of the agency or corporation. If there is a disagreement, the matter shall be brought to the President. GOCCs shall submit to the secretary their audited financial statements within 60 days after the close of the fiscal year. o Pending submission, the budget shall be that of the previous fiscal 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 the department Promulgate rules and regulations necessary Promulgate administrative issuances for the administration of the offices under the secretary and for the proper execution of the laws thereto 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 of the 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 encouraged o 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 authority shall not apply to chartered institutions, GOCCa

attached to the department. DELEGATION OF AUTHORITY The authority shall be to the extent necessary for economical, efficient and effective implementation of national and local programs. 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 authority to enable the delegate to discharge his assigned responsibility. LINE BUREAU AUTHORITY Line bureaus shall exercise supervision and control over their regional and field offices. They are directly responsible for the implementation of plans and programs The regional and field offices shall be the operating arms of the bureau 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-stock corporation vested with functions relating to public needs whether governmental or proprietary in nature. And owned by the government directly or through its instrumentalities wholly or at least 50% of the capital stock. o They are to be attached to the appropriate department with which they shall have allied functions or as may be provided by executive order. o At least 1/3 of the members of the board should be either a 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 or employment. RELATIONSHIP OF REGULATORY AGENCIES TO THE DEPARTMENT A regulatory agency refers to any agency vested (expressly) with jurisdiction to regulate, administer, adjudicate matters affecting substantial rights and interests of private persons. The principal powers of which are exercised by a commission, board or council. o It is subject to the administrative supervision of the department under which they are placed, except GOCCs o The heads shall submit an annual report of their budgets, o

and work plans to the secretary. They may avail the common auxiliary and management services of the department as may be convenient and economical for their operations.

MANDATES OF THE DIFFERENT DEPARTMENTS DFA lead agency for directing and evaluation the total national effort in the field of foreign relations DOF responsible for the formulation, institutionalization and administration of fiscal policies DOJ provide the government with a principal law agency as legal counsel and prosecution arm. DOA promotion of agricultural development and support services needed for domestic and export-oriented business enterprises DPWH engineering and construction arm, ensure safety of infrastructures and securing all public works and highways the highest efficiency DECS now DEPED responsible for formal and non-formal education at all levels, supervise all educational institutions, public or private 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 employment relations. NATIONAL DEFENSE guarding against external and internal threats to national peace and security and provide support for social and economic development DOH promotion of health of the people through delivery of health services, regulation and encouragement of providers of health goods and services TRADE AND INDUSTRY areas of trade, industry and investments DAR direction and coordination to the national agrarian reform program extended to transform farm lessees and farm tenants to owners of economic family-size farms. DILG exercises general supervision over local governments in ensuring autonomy, decentralization and community empowerment. DOT promotion of tourism industry, domestic and international. DENR development and disposition, utilization and management of the country's national resources; promote sound ecological balance. DOTC promotion, development and regulation of dependable and coordinated networks of transportation and communications systems. DSWD care for the physically and mentally handicapped; provide

welfare packages to its constituents; arrest the further deterioration of the socially disabling or dehumanizing conditions of the disadvantaged BUDGET AND MANAGEMENT formulation and implementation of the national budget DOST coordination of scientific and technological efforts. DOE supervise and control all activities relative to energy exploration, development, distribution and conservation. Chapter III Powers and Functions of Administrative Agencies In General MEANING OF POWERS AND FUNCTIONS Powers Functions Refers to the means by which a Where one is bound or which it is function is fulfilled one's business to do. SOURCES OF POWERS It does not always come from a single source. It lies in statutes under 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 determinative functions or at least 2 of such functions. Express and implied powers Powers are measured and limited by the constitution or law creating them or granting their powers, to those conferred expressly or by necessary or fair implication. o The successor of an agency which did not possess the power to impose fines cannot arrogate unto itself such power in the absence 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 the exercise of its express powers. Inherent powers o 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 powers o 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 statute reposing power in them. They cannot confer it upon

themselves. They are tribunals of limited jurisdiction. However, they have in their favor the presumption of regularity including those which are quasi-judicial in nature. Where the SEC prohibited the double listing of stock securities in stock exchanges, the Makati Stock Exchange contends that the SEC is without the authority to impose and even assuming it does, that it is illegal, discriminatory and unjust. The permission referred to in the case was actually a prohibition. o The court ruled that the commission is without the power to impose the prohibition and such results to a violation of constitutional rights. They were neither granted by the constitution or by statute the power to prohibit the double listing of stock securities in stock exchanges. The Board of Communications imposed a fine for injury caused by a failure of a communications company to transmit telegrams. It claimed that as successor in interest of the PSC, it has the same powers as the same provided for in the Public Service Act, one of which is to issue certificates of public convenience. The court ruled that the board is without jurisdiction. The charges in this case do not involve their failure to comply with the certificate of public convenience. The charge does not relate to the management of the facilities and system of transmission of message by the petitioner in accordance with the certificate of public convenience. The proper forum for them to ventilate their grievances should be in the courts and not in the Board of Communicatons. The BOT granted provisional permits for the operation of excess taxicab units allegedly despite the lapse of its power to do so under the law. As argued, the petitioners stated that the decree limited the period of the BOT to 6 months. The court held that the exercise of the power is not subject to the alleged time limitation. The reading of the law indicates that it was a step towards the legalization of colorum taxicab operators without the alleged time limitation. There is nothing in the law which suggests that the power exists only for 6 months. It merely provides for the withdrawal of the state's waiver of its right to 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

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 such power is abused, the court may interfere. A government agency must respect the presumption of constitutionality and legality to which statutes and administrative regulations are entitled until such is repealed or amended. WHAT CONSTITUTES ADMINISTRATIVE POWER OR ADMINISTRATIVE FUNCTION While it has been said that there is no such thing as an administrative power, 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 is administrative although legislative in nature. POWERS OF ADMINISTRATIVE AGENCIES CLASSIFIED. As to nature: o Investigatory o Rule-making powers o Adjudicatory powers Note: the regulatory power of an agency may be either legislative or judicial in nature. The power to conduct investigations and the power to carry out the provisions of law are essentially executive or administrative in nature but the latter is classified as adjudicatory where it involves the exercise of judgment and discretion. As to degree of subjective choice o Discretionary o Ministerial Discretionary the person may choose which of several courses will be followed. It is the power or right conferred upon a person under certain circumstances, according to the dictates of their own judgment and conscience, and not controlled by judgment or conscience of others. Ministerial In respect to which, nothing is left to discretion. One performed in response to a duty which has been positively imposed by law and its performance required at a time and in a manner or upon conditions specifically designated, the duty to perform not being dependent on judgment and


Investigatory Powers GENERALLY It includes the power of an administrative body to inspect the records and premises and investigate the activities of the persons or entities coming under its jurisdiction or to secure, or to require the disclosure of information by means of accounts, records, reports, statements, testimony of witnesses, production of documents or otherwise. Some agencies exist for this sole purpose. Other agencies possess this power to aid to other powers which they possess and agencies use such powers to inform themselves of particular situations to determine whether they should further take action in the execution of particular powers or duties. Investigation is indispensable to prosecution. Adjudication signifies the exercise of power and authority to adjudicate 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 not authorized to make a final pronouncement, then there is an absence of judicial discretion and judgment. Special civic action by certiorari was instituted against an administrative agency exercising only investigatory and advisory powers. The agency concluded that the petitioner made use of his public office to serve and favor his friends and to prosecute the enemies of the latter. The board recommended that he be reprimanded with a warning. The court held that the board's function is limited to investigation and making findings. After the investigation, the president, not the integrity board passes upon and adjudicates the rights of the parties. While it is true that the agency has judicial discretion, such discretion is only for the purpose of evaluation and for the determination of the disputed facts (not finally settle the rights). Not every function wherein there is judgment and discretion are exercised is a judicial function. The test of judicial function is not the exercise of judicial discretion, but the power and authority to adjudicate upon the rights and obligations of the parties before it. SCOPE AND EXTENT OF POWERS An administrative agency may initiate an investigation on a complaint or on its own motion. They may be required to make investigations 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, particularly books and records. Regulatory bodies have been given the power to prescribe the forms and methods of accounts, records, and memoranda for the business under their control, power to inspect books, papers and records, and the power to require the filing of reports or statements or answers to specific questions. They do not have the inherent power to require attendance, but this is a basic to the power of investigation. Such powers may be validly vested on administrative agencies even for purposes not quasi-judicial. o The power to compel will not be inferred from a grant of authority to summon and examine witnesses. It must be clearly given by statute. As a general rule, a hearing is not necessary in an investigation by an administrative agency or official. Persons failing to attend, give testimony, produce records at an investigative proceeding may be punished for contempt. But there must be a statutory grant to punish for contempt. Technical rules of procedure in this administrative agencies are not strictly applied.

Committee created by an executive order of the Mayor of Manila to investigate anomalies issued subpoenas and demanded that witnesses 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 issue the subpoenas. Such power was traced from the power of the Mayor to investigate as implied from his power to suspend or remove certain city employees. However, there is no statutory grant of power to investigate to petitioner's committee. Respondent questioned the legality of the subpoena issued by an administrative agency charged with the function, among others, to investigate graft and corruption, when there was no charge or complaint of violation of law then pending. In this case, the committee was with authority to issue the subpoena whether or not there is adjudication involved, and whether or not there is probable cause, even before the issuance of the complaint. It is enough that there is an investigation 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

within the authority of the agency, the demand is not too indefinite and the information is relevant. Officers of labor union charged with unauthorized disbursement of union funds refused to deliver and deposit certain documents in connection with the court's investigation of the charge. The court cited the provision of law which states that the member shall be entitled to a full and detailed report from their officers and representatives the books of accounts and other records of the financial activities of a legitimate labor organization shall be open to inspection by any officer or member thereof. There is a matter involved which clearly demanded the exercise by the court of the power of investigation. RIGHT TO COUNSEL IN ADMINISTRATIVE INVESTIGATIONS A party in an administrative inquiry may or may not be assisted by a counsel, irrespective of the nature of the charges. No duty on such body to furnish the person with a counsel exists. Hearing here is not a part of criminal prosecution. The right to counsel is not always imperative in administrative investigations because such merely determine whether there are facts that merit disciplinary measures against erring public officers and employees. The exclusionary rule does not apply where the admission is made in an administrative investigation. IMPORTANCE OF ADMINISTRTIVE INVESTIGATIONS The life blood of the administrative process Is the flow of fact, the gathering, the organization and the analysis of evidence. It is imperative for rule making, adjudication and licensing as well as for prosecuting, supervising, directing, determining general policy, recommending legislation. Rule-Making Powers GENERALLY The essential legislative functions may not be delegated to administrative agencies. What may be granted to them is rulemaking power to implement the law it is entrusted to enforce. It includes the power to amend, revise, alter, repeal its rules and regulations. o An administrative body may implement broad principles laid down in a statute by filling in the details, which the legislature may neither have time nor competence to provide. The statutory grant to make rules is a valid 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 of the agency's authority to which it must conform. It has the force and effect of a law and is binding on the agency and all those dealing with the agency. Statutes operate prospectively only and not retroactively unless 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 rules for the future. Operates in the future. Rule-making is legislative in character and results in delegated 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 nondelagability 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 congress or 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 the legislative 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, DISTINGUISHED. ORDERS OR RULINGS

Rules Regulations Generally used interchangeably Usually comprise those actions which the legislative element predominates in that they

Orders or rulings Are actions in which there is more of the judicial function and which deal with a

establish a pattern of conduct thereafter to be followed. Regulations are nothing more than an administrative opinion as to what a statute under construction means. They merely interpret what the legislature meant by its statutory language.

particular situation.


Rulings are interpretations of advisory or advance opinions and of the implementation of the statutes and regulations themselves.

KINDS OF RULE-MAKING POWERS/RULES AND REGULATIONS Rule-making powers: o Supplementary or detailed legislation or rulemaking by reason of particular delegation of authority o Interpretative legislation or rule making by construction and interpretation of the statute o Contingent legislation or determination whether a statute shall go into effect. Administrative rules o Discretionary o Interpretative o 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 statutory grant. Administrative riles may describe the general discretionary policies to be followed by the agency. If it is something more than the opinion, then the rule is legislative. o It has a statutory grant o Provides that the rule shall have authoritative force. INTERPRETATIVER RULES AND REGULATIONS It resembles judicial adjudication. Purport to do no more than the interpretation of the statute being administered to say what it means. Construction of the law. o They are valid in judicial proceedings only insofar as that have 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 Rule Nature of subordinate legislation and Product of interpretation of it has the power to create new and previously existing laws. Merely additional legal provisions that have clarifies or provides guidelines to the the effect of law law they interpret. Issued only under express delegation Necessary incident of the of law administration or regulatory statute. Has the force and effect of law unless Statutory interpretations hence, no they are ultra vires or statutory sanction. unconstitutional Force and effect of valid statutes Administrative findings of law and are always subject to judicial determination. Merely advisory. No vested right if there is a wrongful construction. Amendatory circular advises employers-members of the SSS what, in light of the amendment of the law, they should include in determining monthly compensation of their employees upon which social security contributions of the employees should be based. The court held that when an administrative agency promulgates rules and regulations, 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 the scope is within the law even if the courts are not in agreement. The circular in question herein is a mere administrative interpretation of the law. It was issued only to apprise those concerned. It did not add any duty or detail that was not already in the law mentioned. CONTINGENT RULES AND REGULATIONS Congress may provide that the law shall take effect upon the happening of a future specified contingencies leaving to some other person or body the power to determine when the contingency has arisen. 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 orders o Particular aspects of governmental operations through administrative orders o Declaration of a status or condition of public moment or interest through a promulgation o Matters administrative in detail through memorandum

o o

orders Internal administration matters to agencies or departments through memorandum circulars Acts and commands as commander in chief through general or special orders

impliation of powers expressly granted DETERMINATION OF VALIDITY OF THE RULES whether the rule relates to the subject matter on which power to legislate has been delegated whether the rule conforms to the standards prescribed in the delegatory statute whether the rule is invalid on constitutional grounds such as due process Note: If interpretative, it should be correctly interpreted and that there be nothing 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. Agrava According to a circular issued by the Director of Patents pursuant to the Patent Law (which states that he shall have the power to promulgate the necessary rules and regulations for the conduct of all business in the Patent Office), members of the Philippine bar, engineers and other persons with sufficient scientific and technical training are qualified to take said examination. It, in effect, requires members of the Philippine bar in good standing to take and pass examinations given by the Patent Office as a condition precedent to their being allowed to practice before said office. The court held that the examination required is not authorized by any 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 said patent office. Philippine Inter-Island Shipping Association of the Philippines v. Court of Appeals Executive Order 1088 was issued by marcos providing for uniform and modified rates for pilotage services rendered to foreign and coastwide vessels in all private and public ports. It increased the rates of existing pilotage fees previously fixed by the PPA. However, PPA refused to enforce it. 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

ADMINISTRATIVE ISSUANCES OF SECRETARIES AND HEADS OF 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 the government 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 in chronological order all official acts. o It shall be in the custody of the chief administrative officer and open to public for inspection. o The records management and archive offices in the general sevices administration shall provide assistance. 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 calculated to 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 AND REGULATIONS 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 to satisfy due process. GRANT OF RULE-MAKING POWERS legislative grant

those provided for by the law. The court held that EO 1088 is in the nature of a law and the circular issued by the PPA were in the nature of subordinate legislation in the exercise of delegated power. What determines whether an act is a law or an administrative issuance is not its form but its nature. As a valid statute, PPA is duty bound to comply with the provisions. It may 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 it did. REQUIREMENT OF REASONABLENESS Must bear reasonable relation to the purpose sought to be accomplished. 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 an administrative agency is justified in cases where their rigid enforcement will result in a deprivation of legal rights. Lupangco v. Court of Appeals PRC issued a resolution as part of its additional instructions to examinees to all those applying for admission to take the license examinations in accountancy which prohibits examinees from attending any review class, briefing, conference or the like conducted by schools, colleges, universities and the like. The court held that the resolution is unreasonable despite its good aim. Although their purpose was to preserve the integrity and purity of the examinations, it cannot be used to conceal constitutional infirmities. On its face, the resolution is unreasonable. It is unreasonable in that one who is caught committing the acts even without any ill motives will be barred from taking future examinations conducted by the respondent PRC. Also, it is difficult to implement in that they cannot possibly keep a watchful eye on every examinee during the 3 days before the examination period. They had no authority to dictate on how the examinees should prepare themselves for the exam. They cannot be restrained from taking all the lawful steps needed to assure the fulfillment of their ambition. It also violates the academic freedom of 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 the limits of the department or agency to which they are directed. Creates no rights against or for third persons. Olsen and Co. v. Herstein and Rafferty Under the provisions of the Tariff Act of 1913 in the US, certain products from the Philippines were admitted in their country duty-free. For this reason, Governor General issued an executive order requiring the adoption by the Insular Collector of Customs and CIR of such rules and regulations which 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 which are not products of the Philippines. The order herein is nothing more or less than a command from a superior to an inferior. Disobedience to or deviation from such an order can be punished only by the power to which issued it and if that power fails to administer the corrective, then the disobedience goes unpunished. Since it is an internal rule, it is beyond the court's power. PENAL RULES AND REGULATIONS They may impose penal sanctions if there is a law granting such authority to them. o the law itself must provide for the penalty to be imposed 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 or defining an act which is punishable as a crime or subject to a penalty shall 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 shall be punished. Prescribing penalties is a legislative function. People v. Maceren The Secretary of Agriculture and Natural Resources issued an order which restricted the ban against electro fishing to fresh water fisheries pursuant to the 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 fish caught and other violations. The court held that the order is invalid for the power to declare what constitutes as a criminal offense cannot be delegated. There is nothing in the law which punishes such act. The lawmaking body cannot

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

US v. Panlilio Act 1760 provide penalty for violation of acts relating to quarantining animals suffering from dangerous or contagious diseases. In this case, inspite of the owner's knowledge of the order declaring his carabaos to be subject to quarantine for rinderpest, he drove them from place to place in his hacienda and used them in a manner as if they had not been quarantined. The act only penalized violation of its provisions and not those rules and regulations issued by the Bureau thereunder. The orders are not statutes and violation of such orders is not a penal offense unless the statute itself somewhere makes violation thereof unlawful and penalizes it. US v. Tupasi Molina Act 2169 provides for an examining board for the municipal office and provides that, subject to the approval of the Secretary of Commerce, the director of the constabulary shall prepare an examination manual prescribing the suitable rules for the conduct of the examination. Under the act, it is essential that the examinee shall have no criminal record. T signed under 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 or required by law and that he knew his answer was false. People v. Santos S is being charged with violation of Section 28 of the Administrative Order issued by the secretary of agriculture pursuant to Act 4003 in that he willfully 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 not subject 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 the provisions 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 Lay Appellant was in possession of foreign exchange and failed to sell them to the Central bank within one day following the receipt of such foreign exchange as required by Circular 20 in connection with RA 265. He contends that such circular was not published in the gazette hence, it had no force and effet.

The circular is without force and effect since it was not published in the Official Gazette as required for their effectivity. The Administrative Code requires that statutes passed by congress shall in the absence of any special provision, take effect at the beginning of the 15th day after the completion of the publication in the OG. Circular 20, being a issued for the implementation of the law according to its issuance, has the force and effect of law according to settled jurisprudence. Since the public is bound by its 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 AND REGULATIONS Legislative rules: It has the force and effect of law and are, just as binding upon all the parties, as if they had been written in the original law itself. Interpretative rules: their validity is subject to challenges in court, but is entitled to great weight and consideration by the courts. o It is not conclusive and will be ignored if found to be erroneous or in conflict with the letter of the governing statute 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 both agency and respondent parties. o An agency has no jurisdiction to act unless proper application is made within the time prescribed by agency rules. o Courts are competent to deter an agency's own interpetation of 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 as applied to the construction of statutes. o Intention is controlling o Give a construction that will sustain validity o Penal provisions are to be given a strict construction, but not contrary to intention o If involving public administrative agency, there should be a strict construction against it. Any ambiguities will be resolved 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 harmless from loss if that rule is later held invalid or is amended.

o o

Erroneous interpretations are a nullity and no vested rights arise since the agency's only power is to rules that would carry effect the statutory intent. Protection is accorded to parties who had relied on an administrative rule that was subsequently amended or repealed. The new rule is to be applied prospectively, not in retrospect.

RETROACTIVE OPERATION OF RULES, REGULATIONS AND RULINGS Ordinarily, the power to give the rules a retroactive effect is present, provided that doing so does not conflict with the restrictions on the legislative power to make retroactive laws. o Not applied if unreasonable, inequitable, and contrary to the intention. AMENDMENT OR REPEAL OF ADMINISTRATIVE RULES AND REGULAITIONS An agency has the authority to change, alter, amend, or correct the rules 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 requirements o Not a retroactive change o Not bound by the rule of res judicata o 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 a circular issued by the Secretary of Finance. However, this was subsequently amended and such deductible was disallowed as a deduction from his gross income. The court held that the secretary of finance acted within his authority. A regulation that is merely an interpretation of the statute when once determined to have been erroneous becomes a nullity. No vested or acquired rights can arise from acts or omissions which are against the law or which infringe upon the rights of others. Ollada v. Secretary of Finance Under the National Internal Revenue Code, all corporations and companies whose gross quarterly sales do not exceed 5000 are required to keep a simplified set of bookkeeping records duly authorized by the secretary. The secretary amended the rules by requiring the records to be specially designed for each class or kind of trade and prepared by a CPA.

The court held that the resolution is not unreasonable or arbitrary and that regulations issued are subject to amendment or revocation 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-win resolution which substantially modified its previous decision that had long become final and executory, being in gross disregard of the rules and basic legal concept that accord finality to administrative determinations. Procedural rules should be treated with utmost respect and due regard since they are designed to facilitate the adjudication of cases to remedy the worsening problem of delay in the resolution of rival claims and in the administration of justice. The late filing of the DAR of the motion for reconsideration cannot be excused in this case since they have not shown a reason for a relaxation of the rules. Hence, the final and executory character of the OP decision can no longer be disturbed. Res judicata has set in. Decisions/resolutions/orders of an administrative body which is declared to be 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 mere technicality of law or procedure. When OP decision became final and executory, vested rights were acquired by the petitioners. Hence, it is no longer a question of technicality, but that of substance and merit. Separate Opinion: By suspending the 15 day period for filing a motion for reconsideration and reopening the decision, the president clearly exercised his control over an alterego within the framework of a constitutional and presidential system of governance. Under exceptional circumstances, the court has suspended the rules 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 alone to the other branches of the government. FORMAL REQUIREMENTS ON THE PROMULGATION OF RULES AND REGULATIONS Every agency shall file with the University of the Philippines, 3 certified 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 imminent danger 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 text of 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 be unduly cumbersome, expensive or otherwise inexpedient but copies of the rule shall be made available to on application to the agency which adopted it and the bulletin shall contain a notice stating the general subject matter of the omitted rule. Furnish one copy to the office of the president, congress, all appellate courts and the national library. An agency shall, as far as practicable, publish or circulate notices of proposed rules and afford interested parties the opportunity to submit their views prior to the adoption of any rule. In fixing rates, no rule or final order shall be valid unless the proposed rates shall be published in a newspaper of general circulation 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 required since there is no determination of past events or facts to have to be established or ascertained. When a function which is legislative in nature is delegated, the legislature need not require a notice or hearing as a prerequisite to the act of the agency, since the legislature could itself have performed that act without notice or hearing particularly where the riles are of general application, procedural, or interpretations. When such rules or rates apply to a particular party and arepredicated upon a finding of fact which is denied by said party, the agency making such finding of fact, performs a function partaking of a quasi-judicial nature that valid exercise demands a previous notice and hearing to satisfy the requirements of due process. Publication is required as a condition precedent to the effectivity of a law to inform the public of the contents of the law or rules and regulations before their rights and interests are affected by the same. Prior publication cannot be dispensed with for the reason that such omission 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 Appeals Petitioner assails the constitutionality of EO1088 which fixes the fees for

pilotage services on the ground that its interpretation and application is left to private persons and that it constituted undue delegaton of powers. The order is valid. PPA is duty bound to comply with the provisions of said order. PPA may increase rates but may not decrease them below those mandated by EO1088. Adjudicatory Powers GENERALLY Describes the powers and functions which involve the decision or determination by administrative agencies of the rights, duties, obligations of specific individuals and persons, as contrasted with powers of administrative agencies which involve decisions or determinations in the broadest sense, involve persons generally rather than specially and usually operate prospectively. Not all determinations by an agency are judicial in nature or quasijudicial. It is the power to hear and determine or to ascertain facts and decide by the application of rules to ascertained facts. They are enabled to interpret and apply not only implementing rules and regulations promulgated by them, but also the laws entrusted to their administration. Exercise of such power must be accompanied with certain formalities and safeguards characteristic of the judicial process. o Agencies, though, are not considered courts. Judicial Power Power to hear, try and determine all sorts of cases at law and equity which are brought before the courts. It is the authority to make final of what the law is and adjudicate the respective legal rights or liabilities of the contending parties with respect to the matter in controversy. Duty is primarily to decide questions of legal rights between parties with respect to the matter in controversy, such being the primary duty and not merely incidental to regulation or some other function. There is freedom of action or independence and the absence of control or coercive influence. EXTENT OF JUDICIAL OR QUASI-JUDICIAL POWERS OF Quasi-judicial Power

ADMINISTRATIVE AGENCIES Their jurisdiction is limited because the need for special competence and experience has been recognized as essential in the resolution of questions of complex or specialized character and because of the companion recognition that the dockets of our regular courts are clogged. 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 the subject matter pertaining to its specialization are deemed to be included within its jurisdiction. When there is nothing in the law that would suggest that a particular power has been granted, such as the power to decide contractual disputes, the same cannot be exercised. A public official must locate in 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 enjoin such act which is within the latter's prerogative, except when in the exercise of its authority, it gravely abuses or exceeds its jurisdiction. Philex Mining v. Zaldivia The Director of Mines dismissed an adverse claim filed by Philex Mining on the ground that when S located a mining claim, he was the general manager of Philex and he was still so when he transferred the claim to Y who was then also an employee of Philex. Hence, both merely acted as agents of Philex. The dismissal was due to lack of jurisdiction since the issue is judicial in character. The director has no jurisdiction in this case. There is no question of fact nor matters requiring technological knowledge and experience. The issue is reserved in conforming with legal rules and standards governing the power of an agent. The adverse claim here arises from the alleged fiduciary or contractual relationship between the petitioner and locator of the mine. This is not a mining conflict and it is immaterial whether the mining claim in question has or has not passed out of the administrative control of the Director of Mines. Antipolo Realty v. NHA For failure of AR corporation to develop a subdivision project, Y stopped monthly installment payments as permitted by their contract. AR rescinded the contract and forfeited all payments made by Y who brought the dispute to NHA. NHA was legally empowered to decide on the matter at issue by virtue 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

Where the function of the agency is primarily administrative and the power to hear and determine controversies is granted as an incident to the administrative duty

project owner and cases involving specific performance of contractual and statutory obligations filed by the buyers of subdivision lots against the owner. Guerzon v. Court of Appeals G and PSP entered into a Service Station Lease for the use and operation of respondent's properties and equipment for 5 years. When it was about to expire, PSP informed G that the contract was no longer going to be renewed. G refused to vacate the premises. BEU then issued an order to vacate pursuant to a presidential decree which confers upon the BEU to impose of collect fine for every violation of the its orders, decisions, rules or regulations. BEU has no authority to issue such order. The order merely makes a vague reference to a violation of BEU laws without stating the specific provision 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 suspension of the operations of the establishment. Furthermore, BEU has no power to decide contractual disputes between gasoline dealers and oil companies in the absence of express provision of law granting such power. The BEU's jurisdiction is limited to cases of violation and 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 Purpose is to discover, find out, learn, or obtain information. It does not include the power to decide or resolve a controversy involved in the facts inquired into by application of the law to the facts established by the inquiry. Legislative or Rule-Making Resembles a legislature's enactment of statutes. It looks into the future and changes existing conditions bu making a new rule to be applied thereafter Adjudicative To settle in the exercise of judicial authority. It implies a judicial determination of a fact and the entry of a judgment.

Generally, prior notice and hearing are not essential to govern future conduct since there is no determination of past events or facts that have to be established or ascertained. NATURE OF PARTICULAR ACTS Licensing, enabling or approving

The determination of facts and the applicable law as the basis for the exercise of judicial discretion are essential. Due process requirements are to be observed.

Fixing Rates and Charges

Administrative or quasi-judicial Dependent upon the ascertainment of facts by the administrative agency. If it depends upon the ascertainment of the existence of certain past or present facts upon which a decision is to be made and the rights and liabilities to be determined, it is quasi-judicial. Legislative or quasi-judicial If legislative, giving of prior notice and hearing is not required. 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 public utilities without a hearing. The rate must be non-confiscatory and established in the manner provided by the legislature. Must not be so low as to be confiscatory or too high as to be oppressive. auditing accounts of a receiver of public moneys determinations of CSC in classification and grading positions passing upon a petition to call an election draft boards ascertaining correctness of a tax return parole of prisoners transfer of prisoners preliminary finding of probable cause initial determination as public nuisance closing and taking charge of banks found to be insolvent violation of terms of collective bargaining agreement issuance of warrant of distraint in tax cases deportation of an alien

Acts which are not judicial

Adjudicative Declares and enforces liabilities as they stand or present or past facts and under laws supposed to exist.

Lays down the general regulations Applies to named persons or to that apply to or affect classes of specific situations persons or situations Note: Regulatory or rule-making powers may, in certain instances, merge into determinative, or adjunctive powers.

CLASSIFICATION OF ADJUDICATORY POWERS enabling powers grants of denial of permits directing powers corrective powers of public utility commissions, definition-valuation, classification, fact finding dispensing powers authority to exempt from or relax a general prohibition or authority to relieve from an affirmative duty o licensing power = sets a standatd; dispensing power = sanctions a deviation from a standard summary powers designate administrative power to apply compulsion or force against a person or property to effectuate a legal purpose without a judicial warrant to authorize such action equitable powers power to determine the law upon a particular state of facts has the right to, and must, consider and make proper application of the rules of equity.