ADMINISTRATIVE AGENCIES Legislative vs.

Quasi-legislative power

LEGISLATIVE QUASI-LEGISLATIVE
Administrative power or function
Determine what the law Determine how the law
Involves the regulation and control over the conduct and shall be enforced shall be enforced
affairs of individuals for their own welfare and the
promulgation of rules and regulations to better carry out the
policy of the legislature or such as are devolved upon the Cannot be delegated Can be delegated
administrative agency by the organic law of its existence.
(In re: Rodolfo U. Manzano, A.M. No. 88-7-1861- RTC, October
5, 1988)
Limitations to the exercise of quasi-legislative power

Powers of administrative agencies

1. Discretionary – the law imposes a duty upon a public
officer, and gives him the right to decide how or
when the duty shall be performed.
2. Ministerial – one which is as clear and specific as to
leave no room for the exercise of discretion in its
performance.
Basic powers of administrative agencies
1. Within the limits of the powers granted to
administrative agencies.
2. Cannot make rules or regulations which are
inconsistent with the provision of the Constitution or
statute.
3. Cannot defeat the purpose of the statute.
4. May not amend, alter, modify, supplant, enlarge, or
limit the terms of the statute.
5. A rule or regulation must be uniform in operation,
reasonable and not unfair or discriminatory.

1. Quasi-legislative power or rule-making power Administrative rule

2. Quasi-judicial or adjudicatory power
3. Determinative power
Quasi-legislative vs. Quasi-judicial power
QUASI-LEGISLATIVE
Operates on the future
General application
May be assailed in court
Without subscribing to the
doctrine of exhaustion of
administrative remedies
(DEAR).
QUASI JUDICIAL POWER
Operates based on past
facts
Particular application
(applies only to the
parties involved)
Only be challenged in
Court with prior exhaustion of
administrative remedies.
Any agency statement of general applicability, which
implements or interprets a law fixes and describes
procedures in, or practice requirements of, an agency,
including its regulations. The term includes memoranda or
statements concerning the internal administration or
management of an agency not affecting the rights of, or
procedure available to the public. [Administrative Code of 1987,
Sec. 2 (2)]
Source of the power to promulgate administrative rules
and regulations
Derived from the legislature, by virtue of a valid
delegation, either express or implied.
Doctrine of Subordinate Legislation

Does not require prior Requires prior notice and

notice and hearing (except hearing (except when the law Power of administrative agency to promulgate rules and
when the law requires it). does not require it). regulations on matters within their own specialization.

May be assailed in court Appealed to the Court of

through an ordinary action. Appeals via petition for
review (Rule 43).
Non-similarity of functions and powers
administrative agencies
Not all administrative agencies perform the same functions
or exercise the types of powers. While some act merely as
investigative or advisory bodies, most administrative agencies
have investigative, rule-making, and determinative functions,
or at least two of such functions.
QUASI LEGISLATIVE (RULE MAKING) POWER
The exercise of delegated legislative power, involving no
discretion as to what the law shall be, but merely the
authority to fix the details in the execution or
enforcement of a policy set out in the law itself.
Reason behind the delegation
It is well established in this jurisdiction that, while the
of making of laws is a non-delegable activity that corresponds
exclusively to Congress, nevertheless the latter may
constitutionally delegate authority to promulgate rules and
regulations to implement a given legislation and effectuate
its policies, for the reason that the legislature often finds it
impracticable (if not impossible) to anticipate and provide for
the multifarious and complex situations that may be met in
carrying the law into effect. All that is required is that:
(1) the regulation should be germane to the objects
and purposes of the law;
(2) that the regulation be not in contradiction with it,
but conforms to the standards that the law
prescribes (People of the Philippines v. Exconde, G.R.
No. L-9820, August 30, 1957)

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Q: Respondent was an operator of a domestic air carrier
primarily that of transporting live fish from Palawan to
fish traders. Petitioner is the government agency
responsible for the governance, implementation, and
policy direction of the Strategic Environment Plan (SEP)
for Palawan pursuant to which Administrative Order No.
00-05 was issued. Said Order provided that only
accredited domestic air carriers shall be allowed to
operate as ‘common carriers’ licensed under said rule.
Respondent assails the validity of A. O. No. 00-05 on the
ground that it was issued in excess of petitioner’s
authority as an administrative agency. Was respondent’s
contention valid?
Publication requirement
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. (Philippine International Trading
Corporation v. COA, G.R. No. 132593, June 25, 1999)
NOTE: If not otherwise required by law, 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. [1987
Administrative Code, Administrative Procedure, Sec. 9(1)]
(2000, 2009 Bar)

A: NO. Petitioner’s issuance of the assailed order was well Exceptions to the requirement of publication
within its statutory authority. Administrative agencies
possess two kinds of powers, the quasi- legislative or rule- 1. Interpretative regulations
making power, and the quasi-judicial or administrative 2. Internal regulations
adjudicatory power. The first is the power to make rules and 3. Letters of instructions
regulations resulting from a valid delegated legislation that is (Tañada v. Tuvera G.R. No. L-63915, December 29, 1986)
within the confines of the granting statute and in accord
with the doctrine of non-delegability and separability of
powers. The second is the power to hear and determine
questions of fact to which the legislative policy is to apply Effectivity of administrative rules
and to decide in accordance with the standards laid down by
the law itself in enforcing and administering the same law. GR: Administrative rules take effect depending on the
Petitioner had the explicit authority to fill in the details as to date provided by it.
how to carry out or effectively implement the objectives of
R.A. No. 7611 in protecting and enhancing Palawan's natural
XPN: If the administrative rule is silent on the matter of its
resources consistent with the SEP. In fact, the petitioner was
date of effectivity, it shall take effect after 15 days following
expressly given the authority to impose penalties and
the completion of their publication.
sanctions in relation to the implementation of the SEP and
the other provisions of R.A. No. 7611. (The Palawan Council
Penal sanctions in administrative rules and
for Sustainable Development v. Ejercito Lim, G.R. No. 183173,
regulations
August 24, 2016)

Non-applicability of notice and hearing in the Requisites to be complied with:

issuance of an administrative rule or regulation
1. Law must declare the act punishable;
GR: An administrative body need not comply with the 2. Law must define the penalty;
requirements of notice and hearing, in the performance of 3. Rules must be published in the Official Gazette or in a
its executive or legislative functions, such as issuing rules newspaper of general circulation . (Hon. Secretary Perez
and regulations. (Corona v. United Harbor Pilots Association v. LPG Refillers Association of the Philippines, G.R. No.
of the Philippines, G.R. No. 111963, December 12, 1997) 159149, June 26, 2006)
XPNs:
The legislature itself requires it and mandates that the
Authority of Administrative Officers to Interpret the
regulation shall be based on certain facts as determined at an
Law
appropriate investigation. (Hon. Executive Secretary v.
Southwing Heavy Industries, Inc., G.R. No. 164171, August 22,
2006) Tasked to implement the law and authorized to interpret it
because they have the expertise to do so.
The administrative rule goes beyond merely providing for
the means that can facilitate or render least cumbersome the
implementation of the law but substantially adds to or Contemporaneous Construction
increases the burden of those governed. (CIR v. CA, G.R. No.
11976, August 26, 1996)
The construction placed upon the statute by an executive or
administrative officer called upon to execute or administer
Filing of copies of administrative rules and such statute.
regulations before the UPLC

Usually in the form of circulars, directives, opinions, and

Each agency must file with the Office of the National rulings.
Administrative Register (ONAR) of the University of the
Philippines Law Center three (3) certified copies of every
rule adopted by it. Administrative issuances which are not
published or filed with the ONAR are ineffective and may
not be enforced. (Administrative Code of 198, Sec. 3; GMA v.
MTRCB, G.R. No. 148579, February 5, 2007)

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 Effect of Administrative Interpretations to Courts
They are not binding upon the courts. However, they are
given great weight unless such construction is clearly
shown to be in sharp contrast with the governing law of the
state. (Nestle Philippines Inc. v. CA, G.R. No. 86738,
November 13, 1991)
KINDS OF ADMINISTRATIVE RULES AND REGULATIONS
1. Supplementary or detailed legislation
2. Interpretative legislation
3. Contingent legislation
4. Procedural
5. Interpretative
6. Internal
7. Penal
Administrative issuances according to their nature and
substance:
1. Legislative Rule – It is in the matter of subordinate
legislation, designed to implement a primary
legislation by providing the details thereof.
2. Interpretative rule – Provides guidelines to the law
which the administrative agency is in charge of
enforcing (BPI Leasing v. CA, G.R. No. 127624, November
18, 2003)
REQUISITES FOR VALIDITY
Requisites for a valid delegation of quasi-legislative or
rule-making power
1. Completeness Test - The statute is complete in itself,
setting forth the policy to be executed by the agency
2. Sufficient Standard Test - Statute fixes a standard,
mapping out the boundaries of the agency’s
authority to which it must conform
It lays down a sufficient standard when it provides
adequate guidelines or limitations in the law to map out
the boundaries of the delegate’s authority and prevent the
delegation from running riot. To be sufficient, the
standard must specify the limits of the delegate’s authority,
announce the legislative policy and identify the conditions
under which it is to be implemented. (ABAKADA Guro
Party List v. Purisima, G.R. No. 166715, August 14, 2008)
The administrative body may not make rules and
regulations which are inconsistent with the provisions of
the Constitution or a statute, particularly the statute it is
administering or which created it, or which are in
derogation of, or defeat, the purpose of a statute. (Dagan
v. Philippine Racing Commission G.R. No. 175220, February
12, 2009)
QUASI-JUDICIAL (AJUDICATORY) POWER
Quasi-judicial power
Power of administrative authorities to make determinations
of facts in the performance of their official duties and to
apply the law as they construe it to the facts so found. It
partakes the nature of judicial power, but exercised by a
person other than a judge.
Limited jurisdiction of quasi-judicial agencies
An administrative body could wield only such powers as
are specifically granted to it by its enabling statute. Its
jurisdiction is interpreted strictissimi juris.
Conditions for the Proper Exercise of Quasi-Judicial
Power
1. Jurisdiction must be properly acquired by the
administrative body;
2. Due process must be observed in the conduct of the
proceedings.
Classifications of Adjudicatory Powers
1. Enabling powers – Permits the doing of an act which
the law undertakes to regulate and which would be
unlawful without governmental orders. It is
characterized by the grant or denial of permit or
authorization.
Example: Issuance of licenses to engage in a
particular business.
2. Directing powers – – Orders the doing or performing of
particular acts to ensure the compliance with the law
and are often exercised for corrective purposes.
Examples: public utility commissions, powers of
assessment under the revenue laws, reparations
under public utility laws, and awards under
workmen’s compensation laws, and powers of
abstract determination such as definition-valuation,
classification and fact finding
3. Dispensing powers – Exemplified by the authority to
exempt from or relax a general prohibition, or
authority to relieve from an affirmative duty. Its
difference from licensing power is that dispensing
power sanctions a deviation from a standard.
4. Summary powers –Apply compulsion or force
against person or property to effectuate a legal
purpose without a judicial warrant to authorize such
action.
Examples: Abatement of nuisance, summary
restraint, levy of property of delinquent taxpayers
5. Equitable powers –The power to determine the law
upon a particular state of facts that has the right to,
and must, consider and make proper application of the
rules of equity.
Examples: Power to appoint a receiver, power to
issue injunctions
6. Examining powers– This is also called as
investigatory power. Requires production of books,
papers, etc., and the attendance of witnesses and
compelling the testimony.
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 ADMINISTRATIVE DUE PROCESS
Nature of administrative proceedings
It is summary in nature.
Inapplicability of Technical Rules of Procedure and
Evidence in Administrative Proceedings
The technical rules of procedure and of evidence prevailing
in courts of law and equity are not controlling in
administrative proceedings to free administrative boards
or agencies from the compulsion of technical rules so that
the mere admission of matter which would be deemed
incompetent in judicial proceedings would not invalidate
an administrative order.
Cardinal Requirements of Due Process in
Administrative Proceedings (1994 Bar)
1. Right to a hearing which includes the right to
present one’s case and submit evidence in support
thereof.
2. The tribunal must consider the evidence presented.
3. The decision must be supported by evidence.
4. Such evidence must be substantial.
5. The decision must be rendered on the evidence
presented at the hearing or at least contained in the
record, and disclosed to the parties affected.
6. The tribunal or body or any of its judges must act on its
own independent consideration of the law and facts
of the controversy in arriving at a decision.
7. The board or body should render decision in such a
manner that parties can know the various issues
involved and the reasons for the decision rendered. (Ang
Tibay v. CIR, G.R. No. L-46496, February 27, 1940).
NOTE: The essence of due process in administrative
proceedings is the opportunity to explain one’s side or
seek a reconsideration of the action or ruling complained of.
As long as the parties are given the opportunity to be heard
before judgment is rendered, the demands of due process
are sufficiently met. What is offensive to due process is
the denial of the opportunity to be heard.
(Flores v. Montemayor, G.R. No. 170146, June 6, 2011)
Effect of Non-observance of Notice and Hearing
As a rule, it will invalidate the administrative
proceedings. A failure to comply with the requirements
may result in a failure to acquire jurisdiction.
NOTE: Right to notice may be waived.
Necessity of Notice and Hearing
A hearing may take place after the deprivation occurs.
What the law prohibits is not the absence of previous
notice but the absolute absence thereof and the lack of
opportunity to be heard.
NOTE: There has been no denial of due process if any
irregularity in the premature issuance of the assailed
decision has been remedied by an order giving the
petitions the right to participate in the hearing of the MR.
The opportunity granted by, technically, allowing
petitioners to finally be able to file their comment in the
case, resolves the procedural irregularity previously
inflicted upon petitioners. (Nasecore v. ERC, G.R. No.
190795, July 6, 2011)
Exceptions to the Requirement of Notice and Hearing
1. Urgency of immediate action
2. Tentativeness of administrative action
3. Grant or revocation of licenses or permits to operate
certain businesses affecting public order or morals
4. Summary abatement of nuisance per se which
affects safety of persons or property
5. Preventive suspension of public officer or employee
facing administrative charges
6. Cancellation of a passport of a person sought for
criminal prosecution
7. Summary proceedings of distraint and levy upon
property of a delinquent taxpayer
8. Replacement of a temporary or acting appointee
9. Right was previously offered but not claimed
Inapplicability of the Right to Counsel in
Administrative Inquiries
The right to counsel which may not be waived, unless in
writing and in the presence of counsel, as recognized by
the Constitution, is a right of a suspect in a custodial
investigation. It is not an absolute right and may, thus, be
invoked or rejected in criminal proceeding and, with
more reason, in an administrative inquiry. (Lumiqued v.
Exevea, G.R No. 117565, November 18, 1997)
Quantum of Proof Required in Administrative
Proceedings
Substantial evidence – that amount of relevant evidence that
a reasonable mind might accept as adequate to support a
conclusion
ADMINISTRATIVE APPEAL AND REVIEW
Administrative Appeal
Review by a higher agency of decisions rendered by an
administrative agency, commenced by petition of an
interested party.
NOTE: Under the 1987 Administrative Code, administrative
appeals from a decision of an agency are taken to the
Department Head, unless such appeal is governed by a special
law.
Administrative Review
A superior officer or department head, upon his or her own
volition, may review the decision of an administrative
agency or that of a subordinate’s decision pursuant to the
power of control.
It is, however, subject to the caveat that a final and executory
decision is not included within the power of control, and
hence can no longer be altered by administrative review.
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Different Kinds of Administrative Appeal and Review
1. Inheres in the relation of administrative superior to
administrative subordinate
2. Statutes which provide for determination to be made
by a particular officer or body subject to appeal,
review or redetermination by another officer or body
in the same agency or in the same administrative
system.
3. The statute makes or attempts to make a court a
part of the administrative scheme by providing in
terms or effect that the court, on review of the action
of an administrative agency.
4. The statute provides that an order made by a
division of a commission or board has the same force
and effect as if made by the subject to a rehearing by
the commission.
5. The statute provides for an appeal to an officer on an
appeal to the head of the department or agency.
6. Statutes which provide for appeal at the highest level
namely, the president
(De Leon, page 311).
ENFORCEMENT OF ADMNISTRATIVE DECISIONS
1. As provided for by law
2. Through the court’s intervention
ADMNISTRATIVE RES JUDICATA
Non-applicability of the Doctrine of Res Judicata
The doctrine of res judicata applies only to judicial or
quasi-judicial proceedings and not to the exercise of purely
administrative functions. Administrative proceedings are
non-litigious and summary in nature; hence, res judicata
does not apply. (Nasipit Lumber Company, Inc. v. NLRC, G.R.
No. 54424, August 31, 1989)
Exceptions to the Non-Applicability of Res Judicata in
Administrative Proceedings
1. Naturalization proceedings or those involving
citizenship and immigration;
2. Labor relations;
3. Decisions affecting family relations, personal status
or condition, and capacity of persons.
NOTE: It is well settled that findings of fact of quasi-
judicial agencies, such as the COA, are generally accorded
respect and even finality by this Court, if supported by
substantial evidence, in recognition of their expertise on
the specific matters under their jurisdiction. (Reyna v.
COA, G.R. No. 167219, February 8, 2011)
FACT-FINDING, INVESTIGATIVE, LICENSING AND
RATE-FIXING POWERS
Fact-finding Power
a) Power to declare the existence of facts which call
into operation the provisions of a statute;
b) Power to ascertain and determine appropriate facts
as a basis for procedure in the enforcement of
particular laws
NOTE: The mere fact that an officer is required by law to
inquire the existence of certain facts and to apply the law
thereto in order to determine what his official conduct
shall be does not affect private rights do not constitute
an exercise of judicial powers. (Lovina v. Moreno, G.R. No.
L-17821, November 21, 1963)
Exceptions to the Rule that Findings of Facts of
Administrative Agencies are Binding on the Courts
1. Findings are vitiated by fraud, imposition, or
collusion
2. Procedure which led to factual findings is irregular
3. Palpable errors are committed
4. Factual findings not supported by evidence
5. Grave abuse of discretion, arbitrariness, or
capriciousness is manifest
6. When expressly allowed by statute
7. Error in appreciation of the pleadings and in the
interpretation of the documentary evidence presented
by the parties
FACT FINDING QUASI-JUDICIAL BODY
A fact-finding quasi-judicial body (e.g., Land Transportation
Franchising and Regulatory Board) whose decisions (on
questions regarding certificate of public convenience) are
influenced not only by the facts as disclosed by the evidence
in the case before it but also by the reports of its field agents
and inspectors that are periodically submitted to it, has the
power to take into consideration the result of its own
observation and investigation of the matter submitted to it for
decision, in connection with other evidence presented at the
hearing of the case. (Pantranco South Express, Inc. v Board of
Transportation, G.R. No. L-49664, November 22, 1990)
Investigatory Power
Power to inspect, secure, or require the disclosure of
information by means of accounts, records, reports,
statements and testimony of witnesses. It is implied and not
inherent in administrative agencies.
Power to issue subpoena not inherent in
administrative bodies
It is settled that these bodies may summon witnesses
and require the production of evidence only when duly
allowed by law, and always only in connection with the
matter they are authorized to investigate.
Power to cite a person in contempt not inherent in
administrative bodies
It must be expressly conferred upon the body, and
additionally, must be used only in connection with its
quasi-judicial as distinguished from its purely
administrative or routinary functions.
NOTE: If there is no express grant, the agency must invoke
the aid of the RTC under Rule 71 of the Rules of Court.
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 ---
Q: May administrative agencies issue warrants of arrest
or administrative searches?
A: GR: No. Under the 1987 Constitution, only a judge
may issue warrants.
XPN: In cases of deportation of illegal and undesirable
aliens, whom the President or the Commissioner of Bureau
of Immigration and Deportation may order arrested
following a final order of deportation. (Salazar
v. Achacoso, G.R. No. 81510, March 14, 1990)
---
Licensing power
The action of an administrative agency in granting or
denying, or in suspending or revoking, a license, permit,
franchise, or certificate of public convenience and necessity.
License
Includes the whole or any part of any agency’s permit,
certificate, passport, clearance, approval, registration, charter,
membership, statutory exemption or other form of permission,
or regulation of the exercise of a right or privilege. [1987
Administrative Code, Sec. 2(10), Administrative Procedure]
Licensing
Includes agency process involving the grant, renewal, denial,
revocation, suspension, annulment, withdrawal, limitation,
amendment, modification or conditioning of a license. [1987
Administrative Code, Sec. 2(11), Administrative Procedure]
NOTE: Except in cases of willful violation of pertinent
laws, rules and regulations or when public security, health,
or safety requires otherwise, no license may be
withdrawn, suspended, revoked or annulled without
notice and hearing. [1987 Administrative Code, Sec. 17(2),
Administrative Procedure]
Natur e of an adm i ni str ati ve agency’ s act i f i t i s
empowered by a statute to revoke a license for non-
compliance or violation of agency regulations
Where a statute empowers an agency to revoke a license for
non-compliance with or violation of agency regulations, the
administrative act is of a judicial nature, since it depends
upon the ascertainment of the existence of certain past or
present facts upon which a decision is to be made and rights
and liabilities determined.
Rate
It means any charge to the public for a service open to all
and upon the same terms, including individual or joint
rates, tolls, classification or schedules thereof, as well as
communication, mileage, kilometrage and other special
rates which shall be imposed by law or regulation to be
observed and followed by a person. [1987 Administrative
Code, Administrative Procedure, Sec. 2(3)]
Rate-fixing power
Power usually delegated by the legislature to
administrative agencies for the latter to fix the rates which
public utility companies may charge the public.
NOTE: The power to fix rates is essentially legislative but
may be delegated. (Philippine Inter-Island v. CA, G.R. No.
100481, Jan. 22, 1997)
The legislature may directly provide for these rates, wages,
or prices. But while the legislature may deal directly with
these subjects, it has been found more advantageous to
place the performance of these functions in some
administrative agency. The need for dispatch, for flexibility
and technical know-how is better met by entrusting the
rate-fixing to an agency other than the legislature itself.
(Cortes, 1963)
Rate-fixing procedure
The administrative agencies perform this function either by
issuing rules and regulations in the exercise of their quasi-
legislative power or by issuing orders affecting a specified
person in the exercise of its quasi-judicial power.
NOTE: In the fixing of rates, no rule or final order shall be
valid unless the proposed rates shall have been published
in a newspaper of general circulation at least 2 weeks before
the first hearing thereon. [1987 Administrative Code,
Administrative Procedure, Sec. 9(2)] (2000, 2009 Bar)
Requirements for the delegation of the power to
ascertain facts to be valid
The law delegating the power to determine some facts or state
of things upon which the law may take effect or its operation
suspended must provide the standard, fix the limits within
which the discretion may be exercised, and define the
conditions therefor. Absent these requirements, the law and
the rules issued thereunder are void, the former being an
undue delegation of legislative power and the latter being the
exercise of rule-making without legal basis. (U.S. v. Ang Tang
Ho, G.R. No. L-17122, February 27, 1992)
Standard required on delegated power to fix rates
That the rate be reasonable and just. (American Tobacco Co. v.
Director of Patents, G.R. No. L-26803, October 14, 1975)
In any case, the rates must both be non-confiscatory and must
have been established in the manner prescribed by the
legislature. Even in the absence of an express requirement
as to reasonableness, this standard may be implied. A rate-
fixing order, though temporary or provisional it may be, is not
exempt from the procedural requirements of notice and
hearing when prescribed by statute, as well as the
requirement of reasonableness. (Philippine Communications
Satellite Corporation v. NTC, G.R. No. 84818, December 18, 1989)
Re-delegating power to fix rates is prohibited
6
The power delegated to an administrative agency to fix rates
cannot, in the absence of a law authorizing it, be delegated
to another. This is expressed in the maxim, potestas delagata
non delegari potest. (Kilusang Mayo Uno Labor Center v.
Garcia, Jr., G.R. No. 115381, December 23, 1994)

POWER TO FIX RATES POWER TO FIX RATE

EXERCISED AS A EXERCISED AS A QUASI-
LEGISLATIVE FUNCTION JUDICIAL FUNCTION
Rules and/or rates laid Rules and the rate imposed
down are meant to apply apply exclusively to a
to all enterprises particular party
Prior notice and hearing Prior notice and hearing are
to the affected parties is essential to the validity of
not a requirement, except such rates. But an
where the legislature administrative agency may be
itself requires it. empowered by law to approve
provisionally, when demanded
by urgent public need, rates of
public utilities without a
hearing.