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GENERAL PRINCIPLES

ADMINISTRATIVE LAW MIDTERM REVIEWER

Administrative Law - belongs to the field of public law which includes constitutional law, criminal law, and international law - no agreement as to the scope or bounds of the term - in its widest sense: entire system of laws under which the machinery of the State works and by which the State performs all government acts; embrace all the laws that regulate or control the administrative organization and operations of the government including the legislative and judicial branches - broad definition: law which provides the structure of government and prescribes its procedure; law which controls or is intended to control the administrative operations of the government or the law of governmental administration - less comprehensive sense: part of public law which fixes the organization and determines the competence of the administrative authorities, and indicates to the individual, remedies for the violation of his rights - narrower or more limited signification: administrative law has been defined as follows: a. branch of modern law under which the executive department of government acting in a quasilegislative or quasi-judicial capacity, interferes with the conduct of the individual for the purpose of promoting the well-being of the community b. system of legal principles to settle the conflicting claims of executive and administrative authority on the one hand and of individual or private rights on the other c. law concerning the powers and procedures of administrative agencies including specially the law governing judicial review of administrative sanction - generally understood today: part of the law which governs the organization, functions, and procedures of administrative agencies of the government to which (quasi) legislative powers are delegated and (quasi) judicial powers are granted, and the extent and manner to which such agencies are subject to control by the courts Scope of Adminstrative Law - law which fixes the administrative organization and structure of the government - law, the execution or enforcement of which is entrusted to administrative authorities - law which governs public officers including their competence, rights, duties, liabilities, election, etc - law which creates administrative agencies, defines their powers and functions, prescribes their procedures, including the adjudication or settlement by them of contested matters involving private interests - law which provides the remedies, administrative or judicial, available to those aggrieved by administrative actions or decisions - law which governs judicial review of, or relief against, administrative actions or decisions - rules, regulations, orders and decisions (including presidential proclamations) made by administrative authorities dealing with the interpretation and enforcement of the laws entrusted to their administration - body of judicial decisions and doctrines dealing with any of the above - THUS, embraces not only the law that governs administrative authorities (i.e. Constitution, statutes, judicial decisions) but also law made by administrative authorities (i.e. rules, regulations, orders and decisions) ***Administrative authorities all those public officers and organs (i.e. administrative agencies) of the government that are charged with the amplification, application and execution of the law, but do not include, by virtue of the doctrine of separation of powers, Congress and regular courts Concerns of Administrative Law Private Rights - chief concern is protection of private rights - subject matter: nature and mode of exercise of administrative power and system of relief against administrative action

Delegated power and combined powers - concerned with officers and agencies exercising delegated powers and not with the exercise of the constitutional powers of the President Distinguished from International Law - administrative law: lays down the rules which shall guide the officers of the administration in their actions as agents of the government - international law: cannot be regarded as binding upon the officers of any government considered in their relation to the their own government except insofar as it has been adopted into the administrative law of the state Distinguished from Constitutional Law - constitutional law: prescribes general plan or framework of governmental organization administrative law: gives and carries out this plan in its minutest details - constitutional law: treats of the rights of individual administrative law: treats them from standpoint of the powers of government - constitutional law: prescribes limitations on the powers of the government to protect the rights of individuals against abuse in their exercise administrative law: indicates to individuals, remedies for violation of their rights - administrative law is the necessary supplement of constitutional law insofar as it fixes or regulates the administrative organization of the government - administrative law complements constitutional law insofar as it determines the rules relative to the activity of the administrative authorities Distinguished from criminal law - criminal law: body of penal sanctions which are applied to all branches of the law, including administrative law - a rule of law protected or enforced by a penal sanction may be really administrative in character; one of the most common and efficient means of enforcing a rule of administrative law is to give it a penal sanction Distinguished from law of public administration - public administration: practical management and direction of the various organs of the State and the execution o f state policies by the executive and administrative officers entrusted with such functions - subject matter of administrative law is public administration - true field of administrative law refers only to the external aspect of public administration Principal Divisions of administrative law Law of Internal Administration - treats of the legal relations between the government and its administrative officers, and of the legal relations that one administrative officer or organ bears to another - comprehends topics as nature of public office, de jure and de facto officers, incompatible and forbidden offices - considers legal aspects of public administration on its institutional side a. legal structure or organization of public administration; legal aspects of its institutional activities; legal questions in overall management b. legal qualifications for office; legal disqualifications, appointment, removal, tenure, compensation; legal aspects of hierarchical form of department; legal relation of administrative superior and subordinate; legal relation between power of removal and power of direction Law of External Administration - concerned with legal relations between administrative authorities and private interests - 4 parts: a. survey of those powers and duties of administrative authorities that relate directly to private interests b. analysis of the scope and limits of such powers

c. some account of the sanctions attached to, or the means of enforcing, official determinations d. examination of remedies against official action Classification of administrative law As to its source - draws a line between the law that governs or controls them, and that which is made by administrative agencies a. The law that controls administrative agencies - i.e. constitution, statutes, judicial decisions, executive orders, administrative orders of administrative superiors b. The law made by administrative authorities - includes both general regulations and particular determinations -constitutes an imposing and constantly expanding body of law As to its purpose - a. Adjective or procedural administrative law - establishes the procedure which an agency must or may follow in the pursuit of its legal purpose - derived from constitution or statute or agency regulations b. Substantive administrative law - derived from the same sources as procedural but its contents are different in that the law establishes primary rights and duties As to its applicability - a. General administrative law - part of administrative law which is of a general nature and common to all, or most, administrative agencies - chiefly but not exclusively procedural law b. Special or particular administrative law - part of administrative law that pertains to particular agencies - proceeds from the particular statute creating the individual agency Advantages of the administrative process ***Administrative process: includes whole of the series of acts of an administrative agency whereby the legislative delegation of a function is made effectual in particular situations; embraces matters concerning procedure in the disposition of both routine and contested matters, and the matter in which determinations are made, enforced, and reviewed Advantages of administrative adjudication as compared with executive action - insures greater uniformity and impersonality of action Limitations upon the powers of courts - with respect to issuance of rules and regulations of general applicability which involve discretion with respect to future conduct - judicial process not an alternative to administrative process Trend toward preventive legislation - desire for more effective and more flexible preventive remedies Limitations upon effective legislative action Limitations upon exclusively judicial enforcement Advantages of continuity of attention and clearly allocated responsibility Need for organization to dispose of volume of business and to proved the necessary records Criticisms against administrative action (Weaknesses) - tendency towards arbitrariness - lack of legal knowledge and aptitude in sound judicial technique - susceptibility to political bias or pressure - disregard for safeguards that insure full and fair hearing - absence of standard rules of procedure suitable to the activities of each agency - dangerous combination of legislative, executive, and judicial functions Relation between administrative agencies and courts

Collaborative instrumentalities - courts may entertain action brought before them, but call to their aid the appropriate administrative agency on questions within its administrative competence Role of courts - accommodate the administrative process to the traditional judicial system - accommodate private rights and the public interest in the powers reposed in administrative agencies - reconcile in the field of administrative action, democratic safeguards and standards of fair play with the effective conduct of government Discharge of judicial role - courts must aim to: a. maintain constitution b. give due deference to the role of administrative agencies c. lend powers of the court to the proper attainment of the valid objectives of the administrative agency d. leave to the legislature or the people the remedy for unwise or undesirable administrative action Administration as a separate power As a function - administration is the execution, in non-judicial matters, of the law or will of the State as expressed by the competent authority As an organization - the administration means popularly the most important administrative authorities Administration as an organization distinguished from government - 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 - administration: aggregate of those persons in whose hands the reins of government are entrusted by the people for the time being NATURE AND ORGANIZATION OF ADMINISTRATIVE AGENCIES Creation, reorganization, and abolition of administrative agencies - some are created by or receive their powers from constitutional provisions which may be selfexecuting, but most of them have their source in legislative enactments - executive may also create administrative agencies - administrative 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 Administrative Agency - agency exercising some significant combination of executive, legislative, and judicial powers - charged with administering and implementing particular legislation Administrative agency or body and court distinguished - administrative body: generally large organization staffed by men who are deemed to become like experts in their particular fields court: tribunal which is presided by one or more jurists learned in the law - administrative body: performs variety of functions court: only one function - judicial - administrative body: uses a varying degree of discretion in arriving at decisions, often without being bound by technical rules of evidence court: governed by fixed rules in arriving at its decisions and bound by rules Status or character of particular administrative agencies As public or governmental agencies

functioning within the scope of their authority, for and on behalf of the government, and as representatives of the public As judicial bodies or courts - not courts in the strict sense - cannot exercise purely judicial functions, do not have inherent powers of court, not bound in their proceedings - judicial bodies in the broad sense that they exercise powers judicial in nature and their proceedings partake of the nature of judicial proceedings As legislative or executive agencies As independent or subordinate bodies AS corporate bodies or legal entities Main characteristics of administrative agencies Size - reflects both their nationwide jurisdiction and the character of their work Specialization - staffs become specialized from experience or include person with technical or professional training Responsibility for results - particular agency charged by Congress with accomplishing a particular statutory end Variety of administrative duties - variety in the circumstances and conditions under which the activities of the various agencies impinge upon private individuals Consequence of characteristics - the 4 characteristics contributes to a highly important characteristic of administrative procedure: delegation of function and authority Delegation of function and authority Types: a. delegation of internal management b. delegation of authority to dispose of routine matters c. delegation of authority to dispose of matters informally, or to initiate formal proceedings d. delegation of authority and function in formal proceedings Degree: - may be combined with supervision and control Types of administrative agencies a. function in situations wherein the government is offering some gratuity, grant, or special privilege - i.e. GSIS, SSS, PAO b. function in situations wherein the government is seeking to carry on certain functions of government - i.e. BIR, Bureau of Customs, Bureau of Immigration, LRA c. function in situations wherein the government is performing some business service for the public - i.e. Philippine Postal Corporation, Philippine National Railways, Metropolitan Waterworks and Sewerage Authority, NFA, NHA d. function in situations wherein the government is seeking to regulate business affected with public interest - i.e. LTFRB, HLURB, Energy Regulatory Board, NTC e. function in situations wherein the government is seeking under the polic power to regulate private businesses and individuals - i.e. SEC, MTRCB, DDB f. function in situations wherein the government is seeking to adjust individual controversies because of some strong social policy involved - i.e. NLRC, ECC, SEC, DAR, COA **an administrative agency may fall under more than one type Administrative Organization

refers to administrative structure of the government including its political subdivisions and the allocation of powers, functions, and duties to its various units or agencies

Traditional Branches Legislative power - vested in Congress consisting of Senate and House of Representatives, except to the extent reserved to the people by the constitutional provision on initiative and referendum Executive power - vested in the President Judicial power - vested in 1 Supreme court, and in such lower courts as may be established by law Special Bodies or Agencies Civil Service Commission Commission on Elections Commission on Audit Ombudsman Commission on Human Rights Organization of the Office of the President - consist of the Office of the President Proper and the agencies under it Office of the President Proper - consist of Private Office, Executive Office, Common Staff Support System, and the Presidential Special Assistants/Advisers System - a. Private Office: provide direct services to the President; attend to functions of the First Family b. Executive Office: refers to Office of the Executive Secretary, Deputy Executive Secretaries, and Assistant Executive Secretaries; headed by the Executive Secretary; fully responsive to specific needs of the President c. Staff Support System: embraces offices under the general categories of development and management, general governmental administration and internal administration d. Presidential Special Assistants/Advisers System: provide advisory or consultative services to the President in such fields and under such conditions as the President may determine Agencies under the Office of the President (OP) - offices under chairmanship of the President, under supervision and control of the President, under administrative supervision of the OP, those attached to it for policy and proper coordination, and those that are not placed by law or order creating them under any special department Organization of Departments Department - an executive department created by law - includes any instrumentality having or assigned the rank of a department, regardless of its name or designation Number, purpose, and decentralization - executive branch shall have departments as are necessary for the functional distribution of the work and performance of functions - departments shall be organized and maintained - bureaus and offices under each department shall be group primarily on the basis of major functions - functions of different departments shall be decentralized Department proper - include the Office of the Secretary and staff units under it - Office of the Secretary consist of Secretary and Undersecretary/ies Secretaries, Undersecretaries, and Assistant Secretaries Secretary - has authority and responsibility for the exercise of the mandate of the department and for the discharge of its powers and functions

Undersecretary - advise and assist the Secretary in the formulation and implementation of department objectives and policies Assistant Secretary - duties and functions as may be provided by law or assigned by the Secretary Department Services Planning Service - provide economical, efficient, and effective services relating to planning, programming, and project development Financial and Management Service - advise and assist the Secretary on budgetary, financial and management matters Administrative Service - provide economical, efficient and effective services relating to personnel legal assistance, information, records, supplies, disbursement Technical Service - take chare of technical staff activities Legal Service - where operations involve legal work Organization of Bureaus Bureau - any principal subdivision or unit of any department - include principal subdivision or unit of any instrumentality given or assigned the rank of a bureau - any principal subdivision of the department performing a single major function or closely related functions Powers and Duties of heads of bureau - head of bureau is chief executive officer - exercise overall authority in matters within the jurisdiction of the bureau - appoint personnel to all positions in his bureau - may designate assistant head to act as chief of any division without additional compensation - prescribe form and fix amount of all bonds executed by private parties to government - prescribe forms and issue circulars or orders to secure efficient administration of his bureau - issue orders regarding administration its internal affairs Types: Staff Bureau - perform policy, program development and advisory functions - Director of Staff Bureau shall: a. advise and assist the Office of Secretary on matters pertaining to bureau b. provide consultative and advisory services c. develop plans, programs, operating standards for attainment of bureaus function d. such other duties Line Bureau - directly implement programs adopted pursuant to department policies and plans - Director Line Bureau shall: a. exercise supervision and control over all divisions and units b. establish policies and standards for operations of bureau c. promulgate rules and regulations to carry out objectives d. such other duties Organization of Field Offices Regional Offices - headed by Regional Director, assisted by 1 Assistant Regional Director except otherwise provided - functions:

a. implement laws, policies, programs of department in the regional area b. provide economical, efficient and effective service to people in area c. coordinate with regional offices of other department bureaus d. coordinate with local government units in the area e. such other functions Administrative Relationship Categories and Definitions: a. Supervision and Control - include authority to: a. act directly whenever a specific function is entrusted by law to a subordinate b. direct the performance of duty; restrain commission of acts c. review, approve or modify acts of subordinate d. determine priorities in execution of plans e. prescribe standards, guidelines, programs b. Administrative Supervision - govern administrative relationship between department and regulatory agencies a. oversee operations of such agencies and insure effective management b. require submission of reports and cause the conduct of management audit c. such action as necessary for proper performance of official functions d. review or pass upon budget proposals of such agencies c. Attachment - lateral relationship between the department and the attached agency or corporation for purposes of policy and program coordination - matters of day-to-day administration or all those pertaining to internal operations shall be left to the discretion or judgment of the executive officer of the agency or corporation - GOCCs attached to a department shall submit to the secretary their audit financial statements within 60 days after close of fiscal year Powers and Functions of Department Secretary - advise President in issuing executive orders, proclamations, promulgation of which is expressly vested by law in President relative to matters under jurisdiction of the department - establish policies and standards for operation of department - promulgate rules and regulations necessary to carry department objectives, policies - promulgate administrative issuances necessary for efficient administration of offices under Secretary - exercise disciplinary powers over officers and employees under the Secretary - appoint all officers and employees of department except those whose appointments are vested in President - exercise jurisdiction over all bureaus, offices, agencies under department - delegate authority to officers and employees under the Secretarys direction - such other functions Authority of Department Secretary - supervision and control over bureaus, offices, agencies under him - guidelines: a. initiative and freedom of action on part of subordinate shall be encouraged b. with respect to functions involving discretion or expertise vested by law upon a subordinate agency, control shall be exercise in accordance with said law c. with respect to any regulatory function of an agency subject to department control, authority of the department shall be governed by provisions of this code Delegation of authority - Secretary or head of agency shall have authority and responsibility for its operation - Delegate authority to bureau and regional directors as may be necessary a. delegated authority shall be to extent necessary for economic, efficient, and effective implementation of national and local programs in accordance with policy and standards of each department

b. delegation shall be in writing c. vest sufficient authority to enable the delegate to discharge his assigned responsibility Line Bureau authority - supervision and control over their regional and field offices - directly responsible for development and implementation of plans and programs - regional and field offices shall constitute as operating arms Relationship of GOCC to Department - GOCC: 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 either wholly, or, where applicable as in the case of stock corporations, to the extent of at least 50% of its capital stock; Shall be attached to appropriate department with which they have allied functions; At least 1/3 of members of Boards should either be Secretary, Undersecretary or Assistant Secretary Relationship of regulatory agencies to Department - Regulatory Agency: any agency expressly vested with jurisdiction to regulate, administer or adjudicate matters affecting substantial rights and interest of private persons, the principal powers of which are exercised by a collective body, such as commission, board, or council; Shall be subject to administrative supervision of the department under which they are placed; Heads shall annually submit their budget for approval of Secretary; May avail themselves of the common auxiliary and management services of department Mandates of different departments Department of Foreign Affairs - planning, directing, evaluating total national effort in field of foreign relations Department of Finance - formulation, administration of fiscal policies Department of Justice - carry out declared policy to provide government with principal law agency which shall be both its legal counsel and prosecution arm Department of Agriculture - promotion of agricultural development Department of Public Works and Highways - engineering and constructing arm Department of Education, Culture and Sports - formulation, implementation of policies, programs in formal and non-formal education at all levels Department of Labor and Employment - policy-making, administrative entity in the field of labor and employment Department of National Defense - guarding against external and internal threats to national peace and security Department of Health - formulation, implementation of policies and programs in the field of health Department of Trade and Industry - coordinative, regulatory arm in area of trade, industry and investments Department of Agrarian Reform - central direction and coordination to national agrarian reform program for farm lessees and tenants Department of Interior and Local Government - general supervision over local governments Department of Tourism - planning, coordinating, implementing agency for development and promotion of tourism industry Department of Environment and Natural Resources - implementation of policy to ensure full exploration and development, utilization, conservation of countrys natural resources Department of Transportation and Communications - planning, programming, implementing entity in promotion, development, and regulation of dependable networks of transportation and communications Department of Social Welfare and Development

- balanced approach to welfare where needs and interests of population are addressed Department of Budget and Management - formulation and implementation of National Budget Department of Science and Technology - central direction and coordination of scientific and technological efforts Department of Energy - prepare, coordinate, supervise all programs, projects relative to energy exploration, distribution and conservation POWERS AND FUNCTIONS OF ADMINISTRATIVE AGENCIES IN GENERAL Function - that which one is bound or which it is ones business to do Power - refer to means by which a function is fulfilled Source of Powers - provision in Constitution - statutes under which they claim to act Scope of Powers Express and implied powers - jurisdiction and powers of administrative agencies are measure and limited by the constitution or the law creating them - statutes conferring powers must be liberally construed to enable agencies to discharge their assigned duties in accordance with the legislative purpose - Rule: agency has only such powers as are expressly granted to it by law, but has also such powers as are necessarily implied in the exercise of its express powers Inherent powers - no inherent powers Quasi-judicial powers - unless expressly empowered, agencies are bereft of quasi-judicial powers - the extent to which an administrative entity may exercise given judicial powers depends largely on the provisions of the statute creating or empowering such agency - have presumption that they are regularly performed their official functions including quasi-judicial in nature Nature of powers Jurisdiction Limited - general rule: jurisdiction of administrative officers and agencies are special and limited - possess only such powers and authority specifically conferred upon them by the constitution or enabling statutes Powers within their jurisdiction broad - powers conferred upon agencies must be commensurate with the duties to be performed and the purposes to be lawfully effected Powers subject to the Constitution, applicable law, or administrative regulation - agency must respect the presumption of constitutionality and legality to which statutes and administrative regulations are entitled until such statute or regulation is repealed or amended Administrative Power or Administrative Function - embracing in a loose sense some legislative, executive, and judicial prerogatives - any power not explicitly allocated in the Constitution, although in its nature, legislative, executive, or judicial

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powers which may be invested in agencies other than the legislature without delegating legislative power, may be vested in agencies other than courts without infringing upon judicial power, and functions which may not be imposed upon a member of the judiciary powers involve exercise of judgment and discretion

Powers of administrative agencies classified As to nature a. Investigatory Powers b. Quasi-legislative or rule-making powers c. Quasi-judicial or adjudicatory powers As to degree of subjective choice a. Discretionary - Discretion: power or right conferred upon them by law of acting officially under certain circumstances, according to the dictates of their own judgment and conscience, and not controlled by judgment or conscience of others b. Ministerial - Ministerial Duty: in respect to which nothing is left to discretion; simple, definite duty arising under conditions admitted or proved to exist, and imposed by law - Ministerial Act: 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 under the conditions specified not being dependent upon the officers judgment or discretion Investigatory Powers include the power to inspect records and premises, and investigate the activities of persons and entities coming under its jurisdiction, or require disclosure of information power to investigate, initiate action, and control the range of investigation power is limited to investigation facts and making findings in respect thereto Test to determine whether exercising investigatory power or judicial power: If the only purpose for investigation is to evaluate evidence submitted before it based on the facts and circumstances presented to it, and if the agency is not authorized to make a final pronouncement affecting the parties, then there is an absence of judicial discretion and judgment Scope and Extent of Powers initiation of investigation either on a complaint or on its own motion - conduct of investigation usually held in private - inspection and examination - requirements as to accounts, records, reports or statements - requiring attendance of witnesses, giving of testimony, and production of evidence agency may not itself be empowered to compel attendance of witnesses, but compulsion must be exerted through judicial process - hearing - contempt proceedings - application of technical rules of procedure and evidence Right to counsel in administrative bodies - a party in an administrative inquiry may or may not be assisted by counsel, irrespective of the nature of the charges and of the respondents capacity to represent himself, and no duty rests on such body to furnish the person being investigated with counsel - respondent has option of engaging services of counsel or not - exclusionary rule applies only to admissions made in criminal investigations but not to those made in an administrative investigation Importance of administrative investigations - for rule-making, adjudication, licensing - also for prosecuting, supervising and directing, determining general policy, recommending legislation NOTE: EO 292 (ADMINISTRATIVE CODE OF 1987)

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CASE PRINCIPLES: BACANI VS NACOCO The term Government of the Republic of the Philippines used in section 2 of the Revised Administrative Code refers only to that government entity through which the functions of the government are exercised as an attribute of sovereignty, and in this are included those arms through which political authority is made effective whether they be provincial, municipal or other form of local government. These are what we call municipal corporations. They do not include government entities which are given a corporate personality separate and distinct from the government and which are governed by the Corporation Law. Their powers, duties and liabilities have to be determined in the light of that law and of their corporate charters. They do not therefore come within the exemption clause prescribed in section 16, Rule 130 of our Rules of Court. While it (NACOCO) was organized with the purpose of adjusting the coconut industry to a position independent of trade preferences in the United States and of providing facilities for the better curing of copra products and the proper utilization of coconut by-products, a function which our government has chosen to exercise to promote the coconut industry, however, it was given a corporate power separate and distinct from our government, for it was made subject to the provisions of our Corporation Law in so far as its corporate existence and the powers that it may exercise are concerned (sections 2 and 4, Commonwealth Act No. 518). It may sue and be sued in the same manner as any other private corporations, and in this sense it is an entity different from our government. As this Court has aptly said, The mere fact that the Government happens to be a majority stockholder does not make it a public corporation. CENTRAL BANK VS COURT OF APPEALS Section 607 specifically refers to "expenditure(s) of the National Government" and that the term "National Government" may not be deemed to include the Central Bank. Under the Administrative Code itself, the term "National Government" refers only to the central government, consisting of the legislative, executive and judicial departments of the government, as distinguished from local governments and other governmental entities and is not synonymous, therefore, with the terms "The Government of the Republic of the Philippines" or "Philippine Government", which are the expressions broad enough to include not only the central government but also the provincial and municipal governments, chartered cities and other government-controlled corporations or agencies, like the Central Bank. To be sure the Central Bank is a government instrumentality. But it was created as an autonomous body corporate to be governed by the provisions of its charter, Republic Act 265, "to administer the monetary and banking system of the Republic." Note: If a government corporation or instrumentality has its own charter, it shall be governed under the same. And for acts not within its charter, the Administrative Code applies suppletorily. OPLE VS TORRES Congress is vested with the power to enact laws, while the President executes the laws. The Presidents administrative power is concerned with the work of applying policies and enforcing orders as determined by proper governmental organs. An administrative order refers to [a]cts of the President which relate to particular aspects of governmental operation in pursuance of his duties as administrative head shall be promulgated in administrative orders. An administrative order is an ordinance issued by the President which relates to specific aspects in the administrative operation of government. It must be in harmony with the law and should be for the sole purpose of implementing the law and carrying out the legislative policy. A.O. No. 308 establishes for the first time a National Computerized Identification Reference System. It does not simply implement the Administrative Code of 1987. This administrative order redefines the parameters of some basic rights of the citizenry vis-a-vis the State, as well as the line that separates the administrative power of the President to make rules and the legislative power of Congress. It deals with a subject that should be covered by law. EDU VS ERICTA It is a fundamental principle flowing from the doctrine of separation of powers that Congress may not delegate its legislative power to the two other branches of the government, subject to the exception that local governments may over local affairs participate in its exercise. What cannot be delegated is the authority under the Constitution to make laws and to alter and repeal them; the test is the completeness of the statute in all its term and provisions when it leaves the hands of the legislature. To determine whether or not there is an undue delegation of legislative power the inquiry must be directed to the scope

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and definiteness of the measure enacted. The legislature does not abdicate its functions when it describes what job must be done, who is to do it, and what is the scope of his authority. This is to adhere to the recognition given expression by Justice Laurel in a decision announced not long after the Constitution came into force and effect that the principle of non-delegation "has been made to adapt itself the complexities of modern governments, giving rise to the adoption, within certain limits, of the principle of "subordinate legislation" not only in the United States and England but in practically all modern governments." 44 He continued: "Accordingly, with the growing complexity of modern life, the multiplication of the subjects of governmental regulation, and the increased difficulty of administering the laws, there is a constantly growing tendency toward the delegation of greater powers by the legislature and toward the approval of the practice by the courts." 45 Consistency with the conceptual approach requires the reminder that what is delegated is authority non-legislative in character, the completeness of the statute when it leaves the hands of Congress being assumed DELEGATION OF POWERS TO ADMINISTRATIVE AGENCIES CASE PRINCIPLES: CIA. GRAL. DE TABACOS VS BOARD OF PUBLIC UTILITY The statute which authorizes a Board of Public Utility Commissioners to require detailed reports from public utilities, leaving the nature of the report, the contents thereof, the general lines which it shall follow, the principle upon which it shall proceed, indeed, all other matters whatsoever, to the exclusive discretion of the board. It would seem that the Legislature, by the provision in question, delegated to the Board of Public Utility Commissioners all of its powers over a given subject-matter in a manner almost absolute, and without laying down a rule or even making a suggestion by which that power is to be directed, guided or applied. The true distinction is between the delegation of power to make the law, which necessarily involves a discretion as to what shall be, and conferring authority or discretion as to its execution, to be exercised under and in pursuance of the law. The first cannot be done; to the latter no valid objection can be made. The Supreme Court held that there was no delegation of legislative power, it said: The Congress may not delegate its purely legislative powers to a commission, but, having laid down the general rules of action under which a commission shall proceed, it may require of that commission the application of such rules to particular situations and the investigation of facts, with a view to making orders in a particular matter within the rules laid down by the Congress. UNITED STATES VS TANG HO By the Organic Law, all Legislative power is vested in the Legislature, and the power conferred upon the Legislature to make laws cannot be delegated to the Governor-General, or anyone else. The Legislature cannot delegate the legislative power to enact any law. The line of cleavage between what is and what is not a delegation of legislative power is pointed out and clearly defined. As the Supreme Court of Wisconsin says: That no part of the legislative power can be delegated by the legislature to any other department of the government, executive or judicial, is a fundamental principle in constitutional law, essential to the integrity and maintenance of the system of government established by the constitution. Where an act is clothed with all the forms of law, and is complete in and of itself, it may be provided that it shall become operative only upon some certain act or event, or, in like manner, that its operation shall be suspended. The legislature cannot delegate its power to make a law, but it can make a law to delegate a power to determine some fact or state of things upon which the law makes, or intends to make, its own action to depend. ALEGRE VS COLLECTOR OF CUSTOMS The Legislature has enacted a law which provides for the inspection, grading and baling of hemp before they can be exported to other countries and the creation of a board for that purpose, vesting it with the power and authority to do the actual work. Such authority is not a delegation of legislative power and is nothing more than a delegation of administrative power in the Fiber Board to carry out the purpose and intent of the law. In the very nature of things, the Legislature could not inspect, grade and bale the hemp, and from necessity, the power to do that would have to be vested in a board or commission. The petitioner's contention would leave the law, which provides for the inspection, grading and baling of hemp, without any means of its enforcement. If the law cannot be enforced by such a board or

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commission, how and by whom could it be enforced? The criticism that there is partiality or even fraud in the administration of the law is not an argument against its constitutionality. PEOPLE VS VERA There is undue delegation of power because there is no set standard provided by Congress on how provincial boards must act in carrying out a system of probation. The provincial boards are given absolute discretion which is violative of the constitution and the doctrine of the non delegability of power. Further, it is a violation of equity so protected by the constitution. The challenged section of Act No. 4221 in section 11 which reads as follows: This Act shall apply only in those provinces in which the respective provincial boards have provided for the salary of a probation officer at rates not lower than those now provided for provincial fiscals. Said probation officer shall be appointed by the Secretary of Justice and shall be subject to the direction of the Probation Office. This only means that only provinces that can provide appropriation for a probation officer may have a system of probation within their locality. This would mean to say that convicts in provinces where no probation officer is instituted may not avail of their right to probation. The SC declared the old probation law as unconstitutional. CALALANG VS WILLIAMS There is no undue deleagation of legislative power. Commonwealth Act 548 does not confer legislative powers to the Director of Public Works. The authority conferred upon them and under which they promulgated the rules and regulations now complained of is not to determine what public policy demands but merely to carry out the legislative policy laid down by the National Assembly in said Act, to wit, to promote safe transit upon and avoid obstructions on, roads and streets designated as national roads by acts of the National Assembly or by executive orders of the President of the Philippines and to close them temporarily to any or all classes of traffic whenever the condition of the road or the traffic makes such action necessary or advisable in the public convenience and interest. The delegated power, if at all, therefore, is not the determination of what the law shall be, but merely the ascertainment of the facts and circumstances upon which the application of said law is to be predicated. To promulgate rules and regulations on the use of national roads and to determine when and how long a national road should be closed to traffic, in view of the condition of the road or the traffic thereon and the requirements of public convenience and interest, is an administrative function which cannot be directly discharged by the National Assembly. It must depend on the discretion of some other government official to whom is confided the duty of determining whether the proper occasion exists for executing the law. But it cannot be said that the exercise of such discretion is the making of the law. CERVANTES VS AUDITOR-GENERAL The rule is that so long as the Legislature "lays down a policy and a standard is established by the statute" there is no undue delegation. Republic Act No. 51 in authorizing the President of the Philippines, among others, to make reforms and changes in government-controlled corporations, lays down a standard and policy that the purpose shall be to meet the exigencies attendant upon the establishment of the free and independent government of the Philippines and to promote simplicity, economy and efficiency in their operations. The standard was set and the policy fixed. The President had to carry the mandate. This he did by promulgating the executive order in question which, tested by the rule above cited, does not constitute an undue delegation of legislative power. PANGASINAN TRANS CO VS PUBLIC SERVICE COM The challenged provisions of Commonwealth Act No. 454 are valid and constitutional because it is a proper delegation of legislative power, so called Subordinate Legislation. It is a valid delegation because of the growing complexities of modern government, the complexities or multiplication of the subjects of governmental regulation and the increased difficulty of administering the laws. All that has been delegated to the Commission is the administrative function, involving the use of discretion to carry out the will of the National Assembly having in view, in addition, the promotion of public interests in a proper and suitable manner. The Certificate of Public Convenience is neither a franchise nor contract, confers no property rights and is a mere license or privilege, subject to governmental control for the good of the public. PSC has the power, upon notice and hearing, to amend, modify, or revoked at any time any certificate issued, whenever the facts and circumstances so warranted. The limitation of 25 years was never heard, so the case was remanded to PSC for further proceedings. LOVINA VS MORENO

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The objections of the appellees to the constitutionality of Republic Act No. 2056, not only as an undue delegation of judicial power to the Secretary of Public Works but also for being unreasonable and arbitrary, are not tenable. It will be noted that R.A. 2056 merely empowers the Secretary to remove unauthorized obstructions or encroachments upon public streams, constructions that no private person was anyway entitled to make, because the bed of navigable streams is public property, and ownership thereof is not acquirable by adverse possession It is true that the exercise of the Secretary's power under the Act necessarily involves the determination of some questions of fact, such as the existence of the stream and its previous navigable character; but these functions, whether judicial or quasi-judicial, are merely incidental to the exercise of the power granted by law to clear navigable streams of unauthorized obstructions or encroachments, and authorities are clear that they are, validly conferable upon executive officials provided the party affected is given opportunity to be heard, as is expressly required by Republic Act No. 2056, section 2. It thus appears that the delegation by Congress to executive or administrative agencies of functions of judicial, or at least, quasi-judicial functions is incidental to the exercise by such agencies of their executive or administrative powers, is not in violation of the Separation of Powers so far as that principle is recognized by the Federal Constitution nor is it in violation of due process of law. 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 and the fact that these acts may affect private, rights do not constitute an exercise of judicial powers. Accordingly, a statute may give to nonjudicial officers the power to declare the existence of facts which call into operation its provisions, and similarly may grant to commissioners and other subordinate officer, power to ascertain and determine appropriate facts as a basis for procedure in the enforcement of particular laws PELAEZ VS AUDITOR GENERAL Before Congress may delegate to another branch of the Government the power to fill in the details in the execution, enforcement or administration, it is essential that said law: (1) be COMPLETE in itself. It must set forth therein the policy to be executed, carried out or implemented by the delegate (2) fix a STANDARD. The limits of which are sufficiently determinate or determinable, to which the delegate must conform in the performance of his functions. Section 68 of the Revised Administrative Code does not meet these well settled requirements for a valid delegation of the power to fix the details in the enforcement of a law. IF the validity of the delegation of powers made in Section 68 were upheld, there would no longer be any legal impediment to a statutory grant of authority to the President to do anything which, in his opinion, may be required by public welfare or public interest. Such grant of authority would be a virtual abdication of the powers of Congress in favor of the Executive

SEPARATION OF POWERS CASE PRINCIPLES: MERALCO VS PASAY TRANSPORT CO The Supreme Court of the Philippine Islands represents one of the three divisions of power in our government. It is judicial power and judicial power only which is exercised by the Supreme Court. Just as the Supreme Court, as the guardian of constitutional rights, should not sanction usurpations by any other department of the government, so should it as strictly confine its own sphere of influence to the powers expressly or by implication conferred on it by the Organic Act. The Supreme Court and its members should not and cannot be required to exercise any power or to perform any trust or to assume any duty not pertaining to or connected with the administering of judicial functions. The Organic Act provides that the Supreme Court of the Philippine Islands shall possess and exercise jurisdiction as heretofore provided and such additional jurisdiction as shall hereafter be prescribed by law (sec. 26). When the Organic Act speaks of the exercise of "jurisdiction" by the Supreme Court, it could not only mean the exercise of "jurisdiction" by the Supreme Court acting as a court, and could hardly mean the exercise of "jurisdiction" by the members of the Supreme Court, sitting as a board of arbitrators. There is an important distinction between the Supreme Court as an entity and the members of the Supreme Court. A board of arbitrators is not a "court" in any proper sense of the term, and possesses none of the jurisdiction which the Organic Act contemplates shall be exercised by the Supreme Court.

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Confirming the decision to the basic question at issue, the Supreme Court holds that section 11 of Act No. 1446 contravenes the maxims which guide the operation of a democratic government constitutionally established, and that it would be improper and illegal for the members of the Supreme Court, sitting as a board of arbitrators, the decision of a majority of whom shall be final, to act on the petition of the Manila Electric Company. As a result, the members of the Supreme Court decline to proceed further in the matter. NOBLEJAS VS TEEHANKEE whether the Commissioner of Land Registration may only be investigated by the Supreme Court, in view of the conferment upon him by the Statutes of the rank and privileges of a Judge of the Court of First Instance. But the more fundamental objection to the stand of petitioner Noblejas is that, if the Legislature had really intended to include in the general grant of "privileges" or "rank and privileges of Judges of the Court of First Instance" the right to be investigated by the Supreme Court, and to be suspended or removed only upon recommendation of that Court, then such grant of privileges would be unconstitutional, since it would violate the fundamental doctrine of separation of powers, by charging this court with the administrative function of supervisory control over executive officials, and simultaneously reducing pro tanto the control of the Chief Executive over such officials. GARCIA VS MACARAIG The line between what a judge may do and what he may not do in collaborating or working with other offices or officers under the other great departments of the government must always be kept clear and jealously observed, least the principle of separation of powers on which our government rests by mandate of the people thru the Constitution be gradually eroded. It is of grave importance to the judiciary under our present constitutional scheme of government that no judge or even the lowest court in this Republic should place himself in a position where his actuations on matters submitted to him for action or resolution would be subject to review and prior approval and, worst still, reversal, before they can have legal effect, by any authority other than the Court of Appeals or this Supreme Court, as the case may be. Needless to say, this Court feels very strongly that, it is best that this practice is discontinued. Note: (discussion in dissenting opinion) The doctrine of separation of powers, a basic concept under our Constitution, embodies the principle of a tripartite division of governmental authority entrusted to Congress, the President, and the Supreme Court as well as such inferior courts as may be created by law. Three departments of government are thus provided for, the legislative vested with the lawmaking function, the executive with the enforcement of what has been thus enacted, and the judiciary with the administration of justice, deciding cases according to law. The reason for such a doctrine is to assure liberty, no one branch being enabled to arrogate unto itself the whole power to govern and thus in a position to impose its unfettered will. It is to be admitted that the realities of government preclude the independence of each of the departments from the other being absolute. This is so especially as between the legislative and executive departments. What the former enacts, the latter implements. To paraphrase Roosevelt, the letter of the Constitution requires a separation, but the impulse of a common purpose compels cooperation. It could be carried to the extent of such powers being blended, without undue danger to liberty as proved by countries having the parliamentary forms of government. MACARIOLA VS ASUNCION On the contention of complainant that respondent Judge violated Section 12, Rule XVIII of the Civil Service Rules, We hold that the Civil Service Act of 1959 and the Civil Service Rules promulgated thereunder, particularly Section 12 of Rule XVIII, do not apply to the members of the Judiciary. under Sections 5, 6 and 7, Article X of the 1973 Constitution, only the Supreme Court can discipline judges of inferior courts as well as other personnel of the Judiciary. judges cannot be considered as subordinate civil service officers or employees subject to the disciplinary authority of the Commissioner of Civil Service; for, certainly, the Commissioner is not the head of the Judicial Department to which they belong. The Revised Administrative Code and the Civil Service Law itself state that the Chief Justice is the department head of the Supreme Court; and under the 1973 Constitution, the Judiciary is the only other or second branch of the government (Sec. 1, Art. X, 1973 Constitution). IN RE: MANZANO Under the Constitution, the members of the Supreme Court and other courts established by law shag not be designated to any agency performing quasi- judicial or administrative functions.

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While the doctrine of separation of powers is a relative theory not to be enforced with pedantic rigor, the practical demands of government precluding its doctrinaire application, it cannot justify a member of the judiciary being required to assume a position or perform a duty non-judicial in character. That is implicit in the principle. Otherwise there is a plain departure from its command. The essence of the trust reposed in him is to decide. Only a higher court, as was emphasized by Justice Barredo, can pass on his actuation. He is not a subordinate of an executive or legislative official, however eminent. It is indispensable that there be no exception to the rigidity of such a norm if he is, as expected, to be confined to the task of adjudication. Fidelity to his sworn responsibility no less than the maintenance of respect for the judiciary can be satisfied with nothing less. POWERS AND FUNCTIONS OF ADMINISTRATIVE BODIES RULE-MAKING POWER Rule-Making Powers - necessarily includes power to amend, revise, alter or repeal its rules and regulations - most pervasive power conferred upon administrative agencies - statutory grant of rule-making power to administrative agencies is a valid exception to the rule on non-delegation of legislative power provided 2 conditions concur, namely: a. statute is complete in itself, setting forth the policy to be executed by the agency b. statute fixes a standard, mapping out the boundaries of the agencys authority to which it must conform - valid rule or regulation duly promulgated by an agency has the force and effect of law and is binding on agency and all those dealing with it - operates prospectively only, unless intent to the contrary is made manifest either by express terms or by necessary implication Legislation on administrative level Legislative power: power to make, alter, or repeal laws, or rules for the future - rule-making power of an agency, that is, the power to make implementing or interpretative rules or regulations, is legislative in character and results in delegated legislation - rule-making is legislation on the administrative level - legislation within the confines of the statute, as required by the Constitution - a.k.a. administrative legislation, delegated legislation, ordinance-making, quasi-legislation Limitations on rule-making power - delegated power which it may not use either to abridge the authority given it by Congress or the Constitution or to enlarge its power beyond the scope intended - public administrative body may make only such 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 - may not make rules and regulations which are inconsistent with the Constitution or statute - may not, by its rules and regulations, amend, alter, modify, expand, restrict the provisions or coverage of statute - cannot embrace matters not covered by the statute - in case of discrepancy between basic law and a rule and regulation to implement said law, basic law prevails - rule or regulation should be uniform in operation, reasonable, and not fair or discriminatory Rules, regulations, and orders or rulings distinguished - rules and regulations are generally used interchangeably - Rules and regulations usually comprise those actions of such body or office in which the legislative element predominates in that they establish a pattern of conduct thereafter to be followed - Orders and determinations are actions in which there is more of a judicial function, while rules and regulations are actions in which legislative element predominates Kinds of rule-making powers/rules and regulations Rule-making powers

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a. Supplementary or detailed legislation: rule-making by reason of particular delegation of authority b. Interpretative legislation: rule-making by the construction and interpretation of a statute being administered c. Contingent legislation or determination: whether a statute shall go into effect Administrative Rules a. discretionary or legislative b. interpretative c. contingent Legislative rules and regulations - a form of subordinate legislation which can be issued only in virtue of statutory delegation - 2 identifying characteristics of legislative rules: a. statute has delegated power to the agency to adopt the rule b. it provides that the rule shall, if within the delegated power, have authoritative force Interpretative rules and regulations - those which purport to do no more than interpret the statute being administered, to say what it means - constitute administrators construction of a statute - agency merely anticipating what ultimately must be done by the courts Legislative and Interpretative rules distinguished - substance, not form, determines nature of regulations - Legislative rules: in the nature of subordinate legislation; product of the power to create new and additional legal provisions that have the effect of law; may embody new law; may be issued only under express delegation of law; have force and effect of law, unless they are ultra vires Interpretative rules: product of interpretation and previously existing laws; merely clarify or provide guidelines to the law they interpret; may be issued as a necessary incident of the administration of a regulatory statute; statutory interpretations, no statutory sanction **No vested right can be acquired on a wrong construction of the law by administrative officials and such wrong interpretation does not place the government in estoppel to correct or overrule the same Contingent rules and regulations Congress may provide that a law shall take effect upon the happening of future specified contingencies leaving to some other person or body the power to determine when the specified contingency has arisen Procedural Rules those describing the methods by which the agency will carry out is appointed functions Ordinance power of the President classifications of presidential issuances under his ordinance power: a. executive orders: implementation or execution of constitutional or statutory powers b. administrative orders: particular aspects of governmental operations in pursuance of his duties as administrative head c. proclamations: fixing a date or declaring a status or condition of public interest, upon the existence of which the operation of a specific law or regulation is made to depend d. memorandum orders: matters of administrative detail or of subordinate or temporary interest which only concern particular officers or office e. memorandum circulars: relating to administration for information or compliance f. general or special orders: in his capacity as commander-in-chief of AFP Special advantages of rule-making power legislative can concentrate upon enactment of fundamentals of policy

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legislature has additional time to investigate the manner by which administrative authorities have concretized and enforced its policies rules are more easily amended than statutes, easier to correct mistakes bureaucracy is subject to political responsibility with respect to discretionary matters increasing certainty of the law Requisites for validity of administrative rules and regulations a. issued on the authority of law b. not contrary to law and Constitution c. promulgated in accordance with prescribed procedure **in certain cases, notice and hearing may be necessary to comply with due process Grant of rule-making powers authority must be based upon some legislative act, without which an administrative rule and regulation is null and void does not depend for its existence solely upon express grant authority to adopt reasonable rules and regulations deemed necessary to the efficient exercise of the powers expressly granted Consistency with law and the Constitution must not be in conflict with law and the Constitution to be valid must be within the scope and purview of the statutory authority granted must strictly adhere to standard policies and limitations provided in the basic law vesting power to them must be germane to the object and purpose of the law must be confined to details for regulating the mode of proceeding to carry into effect the law as it has been enacted in case of discrepancy between basic law and implementing rule or regulation, former prevails Determination of validity of rules Legislative Rule a. whether the rule relates to the subject matter on which power to legislate has been delegated b. whether the rule conforms to the standards prescribed in the delegatory statute c. whether the rule is invalid on constitutional grounds, such as due process Interpretative Rule a. whether the rule correctly interprets the statute b. whether the rule amounts to an attempt to exercise legislative powers which have not been delegated Tests applied in determining validity of rules a rule is invalid if its exceeds the authority conferred to it a rule is invalid if it conflicts with the governing statute a rule is void if it extends or modifies the statute a rule is void if it has no reasonable relationship to the statutory purpose courts will set aside rules deemed to be unconstitutional or arbitrary or unreasonable Requirement of Reasonableness bear reasonable relation to the purpose to be accomplished supported by good reasons free from constitutional infirmities or charge of arbitrariness CASE PRINCIPLES: PHILIPPINE LAWYERS ASSOCIATION VS AGRAVA In support of the proposition that much of the business and many of the act, orders and decisions of the Patent Director involve questions of law or a reasonable and correct evaluation of facts, the very Patent Law, Republic Act No. 165, Section 61, provides that:

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. . . . The applicant for a patent or for the registration of a design, any party to a proceeding to cancel a patent or to obtain a compulsory license, and any party to any other proceeding in the Office may appeal to the Supreme Court from any final order or decision of the director. In other words, the appeal is taken to this Tribunal. If the transaction of business in the Patent Office and the acts, orders and decisions of the Patent Director involved exclusively or mostly technical and scientific knowledge and training, then logically, the appeal should be taken not to a court or judicial body, but rather to a board of scientists, engineers or technical men, which is not the case. The Director of Patents, exercising as he does judicial or quasi-judicial functions, it is reasonable to hold that a member of the bar, because of his legal knowledge and training, should be allowed to practice before the Patent Office, without further examination or other qualification. PASCUAL VS COMMISSIONER OF CUSTOMS Section 74, Republic Act No. 265 authorized the Monetary Board, with the approval of the President, to temporarily suspend or restrict sales of exchange and to subject all transactions in gold and foreign exchange to license during an exchange crisis in order to protect the international reserve and to give the Monetary Board and the Government time in to take constructive measures to combat such a crisis. Appellant failed to present to the Commissioner of Customs release certificates issued by the Central Bank or its authorized agent banks for the importations in question. The Commissioner of Customs may, therefore, seize them and order their forfeiture under the aforequoted provisions of the Revised Administrative Code. It is true that neither of the Circulars provide for the penalty of forfeiture. But since the importations in question were made without the necessary import license issued by the Monetary Board pursuant to Circular No. 45 and the release certificates issued by the Central Bank or its authorized agent bank in the prescribed form pursuant to Circular No. 44, they fall within the class of "merchandise of prohibited importation" or merchandise "the importation . . . of which is effected . . . contrary to law" that the Commissioner of Customs may seize and order forfeited. To sustain the appellant's theory of the case would render nugatory the aim and purpose of the law when it authorizes the Central Bank to temporarily suspend or restrict the sale of foreign exchange and subject all transactions in gold and foreign exchange to licensing during an exchange crisis in order to protect the international reserve and to give the Monetary Board and the Government time in which to take constructive measures to combat such a crisis. TEOXON VS MEMBERS OF THE BOARD OF ADMINISTRATORS The recognition of the power of administrative officials to promulgate rules in the implementation of the statute, necessarily limited to what is provided for in the legislative enactment. Of course the regulations adopted under legislative authority by a particular department must be in harmony with the provisions of the law, and for the sole purpose of carrying into effect its general provisions. By such regulations, of course, the law itself can not be extended. So long, however, as the regulations relate solely to carrying into effect the provisions of the law, they are valid. Where an administrative order betrays inconsistency or repugnancy to the provisions of the Act, "the mandate of the Act must prevail and must be followed. It cannot be otherwise as the Constitution limits the authority of the President, in whom all executive power resides, to take care that the laws be faithfully executed. 16 No lesser administrative executive office or agency then can, contrary to the express language of the Constitution, assert for itself a more extensive prerogative. Necessarily, it is bound to observe the constitutional mandate. There must be strict compliance with the legislative enactment. Its terms must be followed. The statute requires adherence to, not departure from, its provisions. No deviation is allowable. In the terse language of the present Chief Justice, an administrative agency "cannot amend an act of Congress." MANUEL VS GENERAL AUDITING OFFICE This Court expressed its disapproval of an administrative order that would amount to an excess of the regulatory power vested in an administrative official. A rule is binding on the courts so long as the procedure fixed for its promulgation is followed and its scope is within the statutory granted by the legislature, even if the courts are not in agreement with the policy stated therein or its innate wisdom ... . On the other hand, administrative interpretation of the law is at best merely advisory, for it is the courts that finally determine what the law means. LUPANGCO VS COURT OF APPEALS We realize that the questioned resolution was adopted for a commendable purpose which is "to preserve the integrity and purity of the licensure examinations." However, its good aim cannot be a cloak to conceal its constitutional infirmities. On its face, it can be readily seen that it is unreasonable in that an examinee

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cannot even attend any review class, briefing, conference or the like, or receive any hand-out, review material, or any tip from any school, college or university, or any review center or the like or any reviewer, lecturer, instructor, official or employee of any of the aforementioned or similar institutions. The unreasonableness is more obvious in that one who is caught committing the prohibited acts even without any ill motives will be barred from taking future examinations conducted by the respondent PRC. Furthermore, it is inconceivable how the Commission can manage to have a watchful eye on each and every examinee during the three days before the examination period. It is an aixiom in administrative law that administrative authorities should not act arbitrarily and capriciously in the issuance of rules and regulations. To be valid, such rules and regulations must be reasonable and fairly adapted to the end in view. If shown to bear no reasonable relation to the purposes for which they are authorized to be issued, then they must be held to be invalid. Resolution No. 105 is not only unreasonable and arbitrary, it also infringes on the examinees' right to liberty guaranteed by the Constitution. Respondent PRC has no authority to dictate on the reviewees as to how they should prepare themselves for the licensure examinations. They cannot be restrained from taking all the lawful steps needed to assure the fulfillment of their ambition to become public accountants. They have every right to make use of their faculties in attaining success in their endeavors MONTECILLO VS CIVIL SERVICE COMMISSION Respondent was expressly empowered to declare positions in the Civil Service as may properly be classified as primarily confidential under Section 12, Chapter 3, Book V of the Administrative Code of 1987. To our mind, this signifies that the enumeration found in Section 6, Article IV of the Civil Service Decree, which defines the non-career service, is not an exclusive list. Respondent could supplement the enumeration, as it did when it issued Memorandum Circular No. 22, s. of 1991, by specifying positions in the civil service, which are considered primarily confidential and therefore their occupants are coterminous with the official they serve. The assailed memorandum circular can not be deemed as an unauthorized amendment of the law. On the contrary, it was issued pursuant to a power expressly vested by law upon respondent. As such, it must be respected by this Court as a valid issuance of a constitutionally independent body. SMART COMMUNICATIONS INC VS NLRC Administrative agencies possess quasi-legislative or rule-making powers and quasi-judicial or administrative adjudicatory powers. Quasi-legislative or rule-making power is the power to make rules and regulations which results in delegated legislation that is within the confines of the granting statute and the doctrine of non-delegability and separability of powers. The rules and regulations that administrative agencies promulgate, which are the product of a delegated legislative power to create new and additional legal provisions that have the effect of law, should be within the scope of the statutory authority granted by the legislature to the administrative agency. It is required that the regulation be germane to the objects and purposes of the law, and be not in contradiction to, but in conformity with, the standards prescribed by law. They must conform to and be consistent with the provisions of the enabling statute in order for such rule or regulation to be valid. Constitutional and statutory provisions control with respect to what rules and regulations may be promulgated by an administrative body, as well as with respect to what fields are subject to regulation by it. It 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. In case of conflict between a statute and an administrative order, the former must prevail. Not to be confused with the quasi-legislative or rule-making power of an administrative agency is its quasi-judicial or administrative adjudicatory power. This is the power to hear and determine questions of fact to which the legislative policy is to apply and to decide in accordance with the standards laid down by the law itself in enforcing and administering the same law. The administrative body exercises its quasi-judicial power when it performs in a judicial manner an act which is essentially of an executive or administrative nature, where the power to act in such manner is incidental to or reasonably necessary for the performance of the executive or administrative duty entrusted to it. In carrying out their quasi-judicial functions, the administrative officers or bodies are required to 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. In questioning the validity or constitutionality of a rule or regulation issued by an administrative agency, a party need not exhaust administrative remedies before going to court. This principle applies only where the act of the administrative agency concerned was performed pursuant to its quasi-judicial function, and not when the assailed act pertained to its rule-making or quasi-legislative power.

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INTERNAL RULES Internal rules and regulations administrative rules and regulations issued by a superior administrative or executive officer to his subordinates for the proper and efficient administration of the law Object: efficient and economical administration of the affairs of the department or agency in which they are issued create no relation except between the official who issues them and the official who receives them - Nature: administrative and do not pass beyond the limits of the department or agency to which they are directed or in which they are published Creates no rights in third persons CASE PRINCIPLES: MAGLUNOB VS NAFCO After hearing the court dismissed the complaint on the ground that the parcel of land in question belongs exclusively to a corporation whose board of directors happens to be the same board of directors of the respondent NAFCO and for that reason the respondent cannot alienate the lands in question to the petitioners. A motion for reconsideration was denied. From the order of dismissal the petitioners have appealed. If NAFCO is the manager of the parcel of land or is managing the plantation therein, it is not the real party in interest or the party against whom the action should be brought . At the preliminary hearing under section 5, Rule 8, the party asserting a fact must prove it by competent evidence. The duplicate for the owner of the Torrens certificate of title must have been presented or the original in the office of the Registrar of Deeds must have been exhibited to the Court. Nevertheless, there is another ground which makes it unnecessary to remand the case for further proceedings to ascertain who is the owner of the parcel of land involved in the litigation, because granting that the parcel of land is included among those that should be disposed of in accordance with the provisions of Republic Act No. 65, still the petitioners have no specific legal right and the respondent has no specific legal duty enjoined by law to perform in connection therewith. It is only a preference and that involves a discretion to determine whether the applicants for lease or sale of parts of a parcel of land under the management of the respondent are entitled to such lease or purchase under the provisions of Republic Act No. 65. Going over the provisions of the directives referred to in the petition for mandamus we fail to find any which confers upon the petitioners a specific legal right and imposes a duty upon the respondent enforceable by mandamus. And it must be so, because executive orders or directives of the President are administrative in nature and they cannot, generally, confer any right because this is only conferred by law. INTERPROVINCIAL AUTOBUS CO INC VS COLLECTOR OF INTERNAL REVENUE It cannot be denied that the regulation is merely a directive to the tax officers; it does not purport to change or modify the law; it does not create a liability to the stamp tax when the value of the goods does not appear on the face of the receipt. The practical usefulness of the directive becomes evident when account is taken of the fact that tax officers are in no position to witness the issuance of receipts and check the value of the goods for which they are issued. If tax officers were to assess or collect the tax only when they find that the value of the goods covered by the receipts is more than five pesos, the assessment and collection of the tax would be well-nigh impossible, as it is impossible for tax collectors to determine from the receipts alone, if they do not contain the value of the goods, whether the goods receipted for exceed P5, or not. The regulation impliedly required the statement of the value of the goods in the receipts; so that the collection of the tax can be enforced. This the Petitioner-Appellant failed to do and he now claims the unreasonableness of the provision as a basis for his exemption. We find that the regulation is not only useful, practical and necessary for the enforcement of the law on the tax on bills of lading and receipts, but also reasonable in its provisions. The regulation above quoted falls within the scope of the administrative power of the Secretary of Finance, as authorized in Section 79 (B) of the Revised Administrative Code, because it is essential to the strict enforcement and proper execution of the law which it seeks to implement. Said regulations have the force and effect of law.

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In the very nature of things in many cases it becomes impracticable for the legislative department of the Government to provide general regulations for the various and varying details for the management of a particular department of the Government. It therefore becomes convenient for the legislative department of the Government, by Law, in a most general way, to provide for the conduct, control and management of the work of the particular department of the Government; to authorize certain persons, in charge of the management, control, and direction of the particular department, to adopt certain rules and regulations providing for the detail of the management and control of such department. Such regulations have uniformly been held to have the force of law, whenever they are found to be in consonance and in harmony with the general purposes and objects of the law Such regulations, once established and found to be in conformity with the general purposes of the law, are just as binding upon all of the parties, as if the regulations had been written in the original law itself.

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