Admin Law by Agpalo (Reviewer)

Reviewer in Administrative Law May Encarnina P. Gaoiran

Chapter I GENERAL CONSIDERATIONS Nature Administrative Law- branch of modern law under which the executive department of the government, acting in a quasi-legislative or quasijudicial capacity, interferes with the conduct of the individual for the purposes of promoting the well-being of the community, as under laws regulating the following: i. ​ ii. public interest iii. professions iiii. trades and callings v. rates and prices vi. laws for the protection of public health and safety vii. promotion of public convenience (Pound) - part of public law which: i. fixes the organization of the government; ii. determines the competence of the authorities; and iii. indicates the individual remedies for violation of rights (Goodnow) - branch of the law which deals with the field of legal control exercised by aw-administering agencies other than courts, and the field of control exercised by courts over such agencies (Franfurter) Object and Scope of Administrative Law • regulation of private right for public welfare Origin and Development 1. Origin: legislation; Rationale: expediency 2. Doctrine of separation of powers: All rules and conduct are supposed to be laid down by the legislature, subject to the direct enforcement of the executive department, and the application or interpretation by the judiciary; Remedy: delegation of powers Sources 1. Constitutional or statutory enactments creating administrative bodies a. Article IX, Constitution b. Social Security Act- established the Social Security Commission

c. Administrative Code of 1987 2. Decisions of courts interpreting the characters of administrative bodies and defining their powers, rights, inhibitions, among others, and the effects of their determinations and regulations a. Artuc v. Commission on Elections b. Maceda v. ERB 3. Rules and regulations issued by the administrative bodies in pursuance of the purposes for which they were created a. Omnibus Rules Implementing the Labor Code b. Circulars of the Central Monetary Authority on interest rates c. Regulations of the Commission on Immigration and Deportation d. Rules promulgated by the SEC; Bureau of Patents, Trademarks and Technology Transfer 4. Determinations and orders of the administrative bodies in the settlement of controversies arising in their respective fields a. Refers to the adjudications of administrative agencies in the exercise of their quasi-judicial power Administration ​Two Senses 1. Institution- U.S v. Dorr: it refers to the aggregate of individuals in whose hands the reins of government are for the time being; it refers to the persons who actually run the government during their prescribed terms of office Government Administration - agency or instrumentality through which the will of - transitional in nature; it is a more or less permanent the State is formulated expressed and realized fixture in every State

2. Function- it means the actual running of the government by the executive authorities through the enforcement of laws and the implementation of policies As an Activity 1. Internala. covers those rules defining the relations of public functionaries inter se b. embraces the whole range of the law of public officers c. consists rules laid down in particular agency or office 2. Externala. defines the relations of the public office with the public in general b. promulgated for observance by those who have dealings or transactions with said office c. promulgated by the administrative agency in the exercise of its quasi-legislative authority for the regulation of specific matters placed under its jurisdiction

Law Administration 1) impersonal command provided with sanctions to be preventive rather than punitive and is accepted to be applied in case of violation more personal than law 2) impersonal; it is concerned only with obedience to has a more sympathetic regard for the individual and its established mandate or directive seeks to spare him from punishments of the law by persuading him to observe its commands may clarify certain ambiguous provisions in statutes through the issuance of interpretative regulations meant to make it easier for the people to understand and so obey the law

Chapter II ADMINISTRATIVE AGENCIES Definition Administrative Agency- a body endowed with quasi-legislative and quasi-judicial powers for the purpose of enabling it to carry out laws entrusted to it for enforcement or execution. o Humphrey v. US: appointed by law and informed by experience - they will persist so long as the general public continues to rely on the services they offer and are satisfied with their performance of their primordial task ​ Agency- any 1) department, 2) bureau, 3) office, 4) commission, 5) authority or officer of the National Government (d-b-ca) authorized by law or executive order to 1) make rules, 2) issue licenses, 3) grant rights or privileges and 4) adjust cases (miga); research institutions with respect to licensing functions; government corporations with respect to functions regulating private right, privilege, occupation or business; and officials in the exercise of disciplinary power as provided by law. Chartered institution- refers to any agency organized or operating under a special charter, and vested by law with functions relating to specific constitutional policies or objectives. Department- refers to an executive department created by law. Bureau- refers to any principal subdivision of any department. Office- refers, within the framework of government organization, to any major functional unit of a department or bureau, including regional offices. ​ - refers to any position held or occupied by individual persons, whose functions are defined by law or regulation. Instrumentality- Malaga v. Penachos, Jr.,: a government instrumentality refers to any agency of the National Government not integrated within the department framework, vested with special functions or jurisdiction by law, endowed with some if not all corporate powers, administering special funds, and enjoying operational autonomy, usually through a charter.

- includes regulatory agencies. Chartered institutions and government-owned or controlled corporations o Beja, Sr. v. CA: 3 administrative relationships (Book IV, Chapter 7 of the Administrative Code) 1. supervision 2. control 3. attachment of an agency to a department - refers to the lateral relationship between the department or its equivalent and attached agency or corporation for purposes of policy and program coordination. Purpose: 1. policy 2. program coordination coordination- may be accomplished by the following: 1. having the department represented in the governing board of the attached agency or corporation how? Either as chairman or as a member, with or without voting rights, if this is permitted by the charter 2. having the attached corporation or agency comply with a system of periodic reporting- shall reflect the progress of programs and projects 3. having the department or its equivalent provide general policies through its representative in the board- shall serve as the framework for the internal policies of the attached corporation or agency Authority- designates both incorporated and non-incorporated agencies and instrumentalities of the government. ​Government-owned or controlled corporation- Leyson v. Office of the Ombudsman: 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 indirectly or though its instrumentalities, either wholly or applicable, as in the case of stock of corporations, to the extent of at least 51% of its capital stock - may be further categorized by the 1) department of budget, 2) the civil service commission and 3) the commission on audit for the purpose of the exercise and discharge of their respective powers, functions and responsibilities with respect to such corporations. Nature

• Administrative bodies endowed with quasi-judicial prerogatives are essentially executive agencies. • Court of Tax Appeals- special court exercising particular expertise on the subject of tax o Yamane v. BA Lepanto Condominium Corporation: RA 9282, Sec. 7(a)(3)- the Court of Tax Appeals exercises exclusive appellate jurisdiction to review on appeal decisions, orders or resolutions if the RTC in local tax cases originally dissolved by them in the exercise of their appellate jurisdiction. Creation and Abolition - may be created by the Constitution or by statute Civil Service Commission, Commission on Elections and Commission on Audit- independent constitutional bodies established under Article 9 Metropolitan Manila Authority- administrative body created by law pursuant to Section 11, Article 10, in relation to Sec. 8 of the Transitory Provisions ​Classification of Administrative Bodies 1. those set up to offer some gratuity, grant or special privileges eg. Philippine Veterans Administration 2. to carry on certain business of government eg. Bureau of Customs 3. to perform some business service for public eg. Bureau of Posts 4. to regulate business affected with public interest eg. LTFRB 5. to regulate private business and individuals under the police power eg. SEC 6. to adjust individual controversies because of some strong social policy involved eg. NLRC 7. to make the government a private party eg. GSIS - can be altered or abolished only by constitutional amendment. - if created by law, it may be reorganized pursuant to said law providing for its establishment or another law authorizing said reorganization- if it does not involve abolition or transfer of offices and is carried out in good faith by the person, usually the President, authorized to effect the same, the validity of the same would have to be upheld (Bagaoisan v. National Tobacco Administration)

Exercise of powers: 1. discretionary ​ ​ ​Note: the findings of the body are generally deferred by the other departments EXCEPT where ​ ​ ​ ​ ​they arrived at with such obvious arbitrariness as to constitute a violation of due process 2. ministerial- no judgment or discretion is required or is allowed in their exercise ​ ​ ​eg. ​a) duty of the RD to annotate a lie on a Torrens certificate ​ ​ ​ ​b) of the Commission on Elections to give due course to a certificate of candidacy duly ​ ​ ​ ​ ​ ​accomplished and seasonably filed (Abcede v. Imperial) ​ ​ ​ ​c) of the COA to allow claims for salaries under certain conditions (Riel v. Wright) o RCPI v. NTC: the jurisdiction and powers of administrative agencies are limited to those expressly granted or necessary implied from those granted in the legislation creating such bodies. -qualified political agency- the power of the President to reorganize the National Government may validly be delegated to his cabinet members exercising control over a particular executive department (DENR v. DENR Region 12 Employees) Advantages 1) expertise derived from specialized training and experience 2) adaptability to change and ease in reacting to a new and even emergency situations 3) more resilient 4) they can initiate action and not simply wait for their jurisdiction to be invoked 5) they may proceed to the solution of the problems confided to their attention with more expeditiousness 6) they are created by the legislature to address new social problems and vest in said agencies broad guidelines for the resolution of said problems Relation to Regular Departments 1. legislature i. acts as an agent of the law-making body and so is bound to obey and implement the legislative will ii. may be abolished and its incidents may be altered by the legislature 2. executive i. comes under the constitutional control of the Presidentcannot be withdrawn or limited even by the legislature ii. the President may issue his own orders to the administrative agency and review and, if necessary reverse

its decision 3. judicial department/courts i. they cannot be deprived of their inherent power to decide all questions of law, particularly if they have been initially resolved by the administrative bodies only (Medalla v. Sayo) ii. can review, or even reverse, the administrative acts even the Chief of Executive o Montes v. Civil Service Board of Appeals: the legality of the acts of the President is under the judicial review because the law is above the President himself, and the courts seek only to interpret, apply or implement it. iii. may also review the factual findings of administrative offices by authority of law or under due process of clause if such determinations have been made arbitrarily ​ ​ ​Note: they may review administrative adjudications only as a last resort and, usually, only when ​ ​ ​ ​ ​questions of law are involved Chapter III POWERS OF ADMINISTRATIVE AGENCIES I. quasi-legislative authority or rule-making power - the power of subordinate legislation and permits the body to promulgate rules intended to carry out of the provisions of particular law - jurisdiction of the administrative body in applying for the future - public - authority delegated by the law-making body to the administrative body to adopt rules and regulations intended to carry out the provisions of a law and implement a legislative policy • Administrative Rule ​- any agency statement of general applicability that implements or interprets a law, fixes and describes the procedures in, or practice requirements of, an agency, including its regulations. ​ ​ ​ ​ ​- includes memoranda or statements concerning the internal administration or management of an agency not affecting the rights or procedure available to, the public. • Rule-making- an agency process for the formulation, amendment, or repeal of a rule • Administrative regulations- intended only to implement the law and to carry out legislative policy o Smart Comm., Inc. v. NTC Quasi-Legislative or Rule- Making Power

Quasi-judicial or Administrative Adjudicatory

Power 1. the power to make rules and regulations which the power to hear and determine question of fact to results in delegated legislation that is within the w/ch the legislative policy is to apply and to decide in confines of the granting statute and the doctrine of non- accordance with the standards laid down by the law delegability and separability of powers itself in enforcing and administering the same law 2. rules and regulationswhen it performs in a judicial manner an act which is a. products of a delegated legislative power essentially of an executive or administrative nature, b. “little laws” where the power to act in such manner is incidental to c. may be reviewed and nullified by the courts if found or reasonably necessary for the performance of the to have been issued not in compliance with the requisites for their validity

executive or administrative duty entrusted to it

Requisites: i. germane to the objects and purposes of the law ii. in conformity with the standards prescribed by law. Note: the details and manner of carrying statute out are oftentimes left to the administrative agency entrusted with their enforcement (Commissioner of Internal Revenue v. Solidbank Corporation) 3. in case of conflict between a statute and administrative officers or bodies- required to administrative order, STATUTE prevails investigate facts or ascertain the existence of facts, hold hearings, weigh evidence, and draw conclusions from them as basis for their official action and exercise of discretion in a judicial nature

o Eastern Telecommunications Phils., Inc. v. International Comm. Corp.: quasi-legislative power- issuance of provisional permits or authority on the basis of its determination on the applicant’s compliance with the requirements it has promulgated; quasi-judicial power- if an issue arises from said determination, a resolution of said contest would partake such nature o Sta. Rosa Realty Dev’t Corp. v. Amante: TWO-FOLD JURISDICTION OF DAR- 1) executive- pertains to the enforcement and administration of the laws, carrying them into practical operation and enforcing their due observance, 2) judicial- involves the determination of rights and obligations of the parties o Laguna Lake Dev’t Authority v. CA: the legislature cannot by its mere declaration make a private business or something a public utility which is not in fact as such Legislative Power Quasi-legislative Power 1. the discretion to determine what the law shall be the discretion to determine how the law shall be enforced 2. it cannot be delegated no valid objection can be made as to delegation 3. government by legislation Government by bureaucracy

o Tio v. VRB: delegation can be made if it is merely a conferment of authority or discretion as to its execution, enforcement and implementation o PAL Inc., v. Civil Aeronautics Board: a franchise may be derived indirectly from the State through a duly designated agency even to agencies other than those legislative nature ​ ​Note: the privileges conferred by grant of local authorities as agents for the State constitute as much as ​ ​ ​ ​legislative franchise as though the grant had been made by an act of the Legislature

o Associated Comm., & Wireless Services-United Broadcasting Networks v. NTC: Certificate of Public Convenience Franchise form of regulation through the administrative agencies grant of privilege from the sovereign power

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- Source: legislature ​ ​Notes: 1) the delegation should be canalized within banks that keep it from ​ ​ ​ ​ ​ ​overflowing (Schecter Poultry v.

the US)

​ ​ ​ ​ ​2) a surrender of a legislative power to the delegate is prevented ​ ​ ​ ​ ​3) the legislature is not req’d to provide a detailed standards for administrative ​ ​ ​ ​ ​ ​ ​action ​ ​ ​- Tests of Delegation 1. completeness test ​ ​ ​ ​ ​The law must: a. be complete in all its terms and conditions o U.S v. Ang Tang Ho: the law does not specifically define what such temporary and emergency measures shall remain in force and effect, or when they shall take effect. b. offer a sufficient standard to 1) specify the limits of the delegate’s authority, 2) announce the legislative policy, and 3) specify the conditions under which it is to be implemented o Calalang v. Williams: Accepted sufficient standards- 1) public interest, 2) simplicity, 3) economy and efficiency and 4) public welfare o Ynot v. IAC: “may see fit”- consists of a roving commission, thus invalid delegation of legislative power

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2. sufficient standard test- standard must be fixed, the limits of which are sufficiently determinate or determinable---to which the delegate must conform in the performance of his functions ​Sufficient standarda. one which defines legislative policy; b. mark its limits c. maps out its boundaries d. specifies the public agency to apply it e. indicates the circumstances under which the legislative command is to be effected

​ II. quasi-judicial power or adjudicatory function - the power of adjudication, enables the administrative

body to resolve, in a manner essentially judicial, factual and sometimes even legal questions incidental to its primary power of enforcement of the law - jurisdiction of the administrative body in applying a rule for the past - private in nature - the power of the administrative authorities to make determination of facts in the performance of their official duties and to apply the law as they construe it to the facts so found - incidental to their main function, w/ch is the enforcement of law o Abakada Guro Party List v. Ermita Judicial Power Quasi-judicial Power 1) question of law first, then question of fact question of fact, then question of law 2) the executive acts last, after the judgment is made the executive acts first, with the courts acting later, and all the legal questions are settled whenever warranted, to review its legal findings Note: administrative officers can interpret and apply the law to the facts ascertained by them but such determination is subject to review by courts eg. NLRC- its decisions are reviewable on certiorari by the CA, and eventually by the SC

- Source: 1) incidental to the power of regulation vested in the administrative body, 2) expressly conferred by the legislature through specific provisions in the charter of agency - Rationale: to enable the administrative officers to perform their executive duties - quasi-judicial- merely a convenient way of approving the exercise of judicial power by an administrative officer - Determinative powers: 1. enabling powers- those that permit the doing of an act which the law undertakes to regulate and which would be unlawful without the government approval ​ ​ ​ ​ ​eg. ​a) issuance of licenses to engage in a particular business or operation ​ ​ ​ ​ ​ ​b) power of the SEC to approve the articles of incorporation and by-laws ​ ​ ​ ​ ​ ​ ​of a corporation ​ ​ ​ ​ ​ ​c) MTRCB to allow the public exhibition of a movie ​ ​ ​ ​ ​ ​d) fire or municipal authorities to permit the occupancy of a newly​ ​ ​ ​ ​ ​ ​ ​constructed building 2. directing powers- order the doing or performance of particular acts to ensure compliance with the law and are often exercised

for corrective purposes ​ ​ ​ ​ ​eg. ​a) DENR- may require factories to use certain chemicals to protect the ​ ​ ​ ​ ​ ​ ​ ​environment ​ ​ ​ ​ ​ ​b) DOT- may call on common carriers to install specific safety devices to ​ ​ ​ ​ ​ ​ ​prevent accidents or special seats for the handicapped or disabled ​ ​ ​ ​ ​ ​c) NLRC- may compel an employer to reinstate ​ ​ ​ ​ ​

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an illegally dismissed ​ ​ ​ ​employee and pay him damages ​Kinds: (1) dispensing- allows the administrative order to relax the general operation of a law or exempt from the performance of a general duty ​ ​ ​eg. ​a) a student excused from P.E

​ ​ ​ ​ for health reasons ​ ​ ​ ​ ​ ​ ​ permitted by the ​ ​ ​ board to remain in ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ relieved of ​ ​ ​ ​ ​ ​ ​ civil status or occupation

​b) when residential buildings are ​ ​ ​ ​ ​ ​ ​zoning an area designated as ​ ​commercial or industrial ​ ​c) when persons of draft age are a combat ​ ​ ​duty because of their

o Commission on Elections v. Espanol: the Commission has the authority to grant immunity from suit to those who have committed election offenses but volunteered to give information and testify to any violation of election laws. ​ ​ ​ ​ ​ ​ (2) summary- those involving the use by administrative authorities of force upon persons or things without the necessity of previous judicial warrant ​ ​ ​ ​ ​ ​ ​eg. ​a) padlocking by the mayor’s office of filthy restaurants ​ ​ ​ ​ ​ ​ ​ ​ ​ ​or movie houses exhibiting obscene movies ​ ​ ​ ​ ​ ​ ​ ​b) shooting down a mad dog on the loose ​ ​ ​ ​ ​ ​ ​ ​c) taking over by the BSP of mismanaged banks ​ ​ ​ ​ ​ ​ ​ ​d) confiscation by the customs authorities of articles ​ ​ ​ ​ ​ ​ ​ ​ ​ ​which are prohibited per se (3) examining- enables administrative body to inspect the records and

premises, and investigate the activities, of persons or entities coming under its jurisdiction (ISIC-BIW-PFP) i. issuance of subpoenas ii. swearing in of witnesses iii. interrogation of witnesses iiii. calling for production of books, papers and records v. requiring that books, papers and records be made available for inspection vi. inspection of premises vii. requiring written answers to questionnaires viii. requiring periodic or special reports ix. requiring the filing of statements x. requiring physical and medical examinations in certain cases ​ ​ ​ ​ ​ ​ ​- allows many administrative agencies to actually 1) conduct ​ ​ ​ ​ ​ ​hearings, 2) issue writs of preliminary injunction and 3) punish for contempt ​

Chapter 4 QUASI-LEGISLATIVE POWER Effect of the rule-making power of the administrative body: ​- the active power of the State from its source to the point of application ​ ​Meaning: to apply the law and so fulfill the mandate of the legislation Kinds of Administrative Regulations

Legislative Interpretative 1) designed to provide guidelines to the law which the matter of subordinate legislation, designed to administrative agency is in charge of enforcing implement a primary legislation by providing the details thereof 2) accorded by the courts or by express provision of those which purports to do no more than interpret the statute the force and effect of law immediately going statute being administered, to say what it means into effect 3) how: constitute administrator’s construction of a statute i. supplementing the statute ii. filling in the details Note: it is the statute and not the regulation which the iii. making the law individual must conform iiii. usually acting in pursuant to a specific delegation of legislative power 4) issued by the administrative body pursuant to a valid issued by the administrative body as an incident of its delegation of administrative body pursuant to a valid power to enforce the law and is intended merely to delegation of legislative power clarify its provisions for proper observance by the people 5) intended to have the binding force and effect of a merely persuasive and is received by the courts with law enacted by the legislature itself

much respect but finality

Classifications of Legislative Regulation Supplementary Contingent 1) intended to fill in the details of the law and “to make it is issued upon the happening of a certain contingency explicit what is only general” which the administrative body is given the discretion: • to determine or “to ascertain, under and pursuant to law, some circumstances on which the law, by its own terms, makes its own action depend; or • to find facts or conditions properly prescribed under which a law as passed will or will not operate Effect: applying/suspending a law 2) purpose- to enlarge upon a statute, subject only to the standards fixed therein, to ensure its effective enforcement in accordance with the legislative will

Requisites of Valid Administrative Regulation (P-SAR): (1) Its promulgation must be authorized by the legislature. ​ ​Authority to promulgate the regulation- usually conferred by the following: a) the charter itself of the administrative body; or b) the law it is supposed to enforce ​ ​ ​ ​GENERAL RULE: a regulation is binding on the courts ​ ​ ​ ​EXCEPTION: if it is in contravention with the standards that the law prescribes o Araneta v. Gatmaitan: By virtue of his constitutional power