C. Rule Making Powers of Administrative 1.

Produces Higher Quality Rules- all

Agencies potentially affected members of the public are
I. General given an opportunity to participate in a rule-
a. Rule Making- the agency process for making proceeding
formulating, amending or repealing a rule. It is 2. Enhances Political Accountability-
legislation on the administrative level, which is public notice is required before an agency can
legislation within the confines or scope of the make binding policies. It alerts the president and
granting statute as required by the Constitution the congress.
ad its doctrine of non-delegation and separation 3. Efficiency Advantages- it eliminates
of powers. expensive and time consuming adjudicatory
hearings, re-litigation of issues, and they are
b. Nature- what may be granted to an easier and less expensive to enforce
administrative agency is the rule making power 4. Easier to Enforce
to implement law it is entrusted to enforce. Such 5. Fairness Advantages
power necessarily includes the power to amend, 6. Superior Notice of Rules
revise, alter or repeal its rules and regulations 7. Simultaneous Application of Rules
8. Broad Public Participation
c. Necessity
1. Impracticability of lawmakers III. Limitations on Rule Making
providing general legislation for various 1. Must be consistent with the
details of management constitution or statute
2. Adapt to the increasing complexities 2. May not alter, modify, extend,
of modern life and variety of public supplant, enlarge or expand, restrict or limit the
functions provision or coverage of the state
3. Filling in only the details which the 3. Basic law prevails in cases of
legislation may neither have time nor discrepancy
competence to make 4. Should be uniform in operation,
reasonable and not unfair or discriminatory
d. Conditions- the statutory grant of rule-making
power to AAs is a valid exception to the non- IV. Kinds of Rule Making Powers/Rules and
delegation of legislative power, provided these Regulations
conditions occur: 1. Rule Making powers
1. The statute is Complete in itself, a. Supplementary/ Detailed Legislation-
setting forth the policy to be executed by the rule making by reason of particular delegation of
agency authority
2. Said statute fixes a standard, mapping b. Interpretative Legislation-
out the boundaries of the agency’s authority construction and interpretation of a statute
c. Contingent Legislation/
e. Binding Force and Effect- binding on the Determination- takes effect upon the happening
agency and on all those dealing with the agency. of future specified contingencies leaving to some
It enjoys the presumption of validity and other person/body the power to determine
constitutionality when the specified contingency has arisen

f. Prospective/Retroactive Application 2. Administrative Rules

a. Discretionary
II. Advantages of Rule-Making b. Legislative
c. Interpretative
d. Contingent
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 They involve internal organization of an agency,
conduct of its proceedings and its practice
V. Legislative and Interpretative Rules requirements. Binding on both the agency and
on respondent parties
Legislative Rules Interpretative Rules
A form of subordinate Resemble judicial Mere tools, and are construed liberally in order
legislation- issued adjudication which to promote their object. However, such liberal
only in virtue of a do no more than to interpretation is subject to limitation (violation
statutory delegation interpret, explain or of due process)
to supplement the clarify the statue
statute and filling in being administered VIII. Ordinance Powers of the President
the details 1. Executive Orders- rules of
Characteristics: Their construction is general/permanent character in implementation
1. The state has the not conclusive, at or execution of constitutional or statutory
delegated power to best merely advisory. powers
the agency to adopt But still entitled to 2. Administrative Orders- acts which
the rule great weight and relate to particular aspects of governmental
2. The rule has respect. operations in pursuance of his duties as
authoritative force administrative head
3. Proclamations- acts of the pres in
May embody new law Merely clarifies or fixing a date or declaring a status or condition of
provides guidelines in public interest
the law they interpret 4. Memorandum Orders- matters of
Issued only under May be issued as a administrative concern which only concerns a
express delegation necessary incident of particular officer or office of the govt.
the administration of 5. Memorandum Circulars- Relating to
a regulatory state internal administration
May have statutory No statutory sanction 6. General/Specific Orders- acts of the
sanctions Pres in his capacity of Commander-In-Chief of
Same force and effect Administrative the armed forces
of law findings of law,
always subject to IX. Administrative Issuance of Secretaries/Heads
judicial of Bureaus, Offices or Agencies
determination a. Circulars- issuances prescribing
Wrong construction Wrong construction policies, rules and regulations and procedures
provides no vested may be set aside by promulgated pursuant to law, applicable to
rights and does not the judiciary if there individuals outside the Government
place the is error of law, abuse b. Orders- issuances directed to
government in of power, lack of particular offices, officials or employees
estoppel jurisdiction or concerning specific matter including
GADALEJ assignments, detail etc.

VI. Contingent Rules and Regulations X. Practical Necessity of the Rule Making Power
1. Regulation of Highly Complex and
VII. Procedural Rules Changing Conditions
Rules describing the methods by which the 2. Gradual Change in Regulatory Role of
agency will carry out its appointed functions. Congress

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 3. Inability of Legislative Bodies to 2. When prescribed by law
Anticipate Future Situations 3. Where rules have the force and effect
of law
XII. Requisites for Validity of Administrative Rules D. Adjudicatory Powers
and Regulations I. General
1. Must have been issued on the a. Involve Specific Parties- includes the
authority of law decision or determination by AAs of the
2. Must not be contrary to law and the rights, duties and obligations of specific
Constitution individuals and persons generally
3. Must be promulgated in accordance
with the prescribed procedure b. Involve Judicial Function Exercised by
4. Must be reasonable a Person other than a Judge- not all
determinations by an AA are judicial in
XIII. Grant of Rule-Making Power nature or quasi-judicial
1. By some Legislative Act
2. Implied from the powers expressly c. Involves Quasi-Judicial Power- AAs are
granted enabled to interpret, apply IRRS and the
laws entrusted to them accompanied
XIV. Test of Validity with certain formalities and
A rule is invalid if it: characteristics of the judicial process
1. Exceeds the authority conferred to it
2. Conflicts with the governing statute II. Distinguished from Judicial Power
3. Extends or modifies the statute
4. No reasonable relationship to the Judicial Administrative
statutory purpose Primary duty to Incidental Duty-
5. If it arbitrary or unreasonable or hear and decide the function of the
unconstitutional questions of AA is primarily
legal rights, such administrative,
XV. Requirement of Reasonableness decision being and the power to
1. Reasonable relation to the purpose the primary hear and
sought to be accomplished object and not determine
2. Supported by good reasons merely controversies is
3. Free from constitutional infirmities or incidental to merely incidental
charge of arbitrariness regulation

XVI. Liberal Interpretation of Rules and III. Extent of Judicial/Quasi-Judicial Powers of

Regulations AAs
Justified in cases where their rigid enforcement 1. Jurisdiction Limited- limited
will result in deprivation of legal rights delegation of judicial authority to AA because of
the need for special competence and experience
XVII. Requirements of Notice and Hearing is essential
GR: not essential to the validity of the rules and 2. Depend on the Enabling Act- the
regulations since there is no determination of quantum of the JP/QJP is defined in the enabling
past events or facts that have to be established act
or ascertained 3. Ordinary Judicial Function may be
Except: Conferred- interpretation of contracts,
1. When rules apply to named or specific determination of private rights and the awarding
parties
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of damages are no longer a unique judicial requisites which will
function lead to either a
4. Split Jurisdiction not Favored- all refusal or grant of a
controversies relating to the SM pertaining to its license
specialization are deemed included within its Not necessary for the Due Process
jurisdiction validity of the rule requirements (notice
5. Grant of Particular Power must be since there is no and hearing) must be
found in the law itself- A public official must determination of observed
locate in the statute relied upon a grant of power facts
before he can exercise it. Except for
constitutional officials who can trace their Chapter 4: Separation of Administrative and
competence to the constitution. Other Powers
6. General policy to uphold exercise- A
court cannot compel an agency to do a particular I. Doctrine of Separation of Powers
act or to enjoin such act within the latter’s a. Allocation of government powers-
prerogative, except when in the exercise of its governmental powers are divided among the 3
authority, it gravely abuses or exceeds its departments
jurisdiction b. Exclusive exercise of powers- the
powers assigned to one department should not
IV. Distinguishments be exercised by either of the other two, and that
Investigatory Judicial no department ought to directly or indirectly
Limited to explore, Limited to adjudge, possess an overruling influence over others
inquire or research arbitrate, decide, c. Blending of allocated powers- a
for the purpose of determine or to complete separation of powers or functions is
obtaining resolve the rights and impracticable, if not impossible
information duties of parties
II. Doctrine of Non-Delegation of Powers
Legislative Judicial “Potestas Delegate Non Potest Delegari” – what
Looks to the future Investigates, declares has been delegated cannot be in turn delegated,
and changes existing and enforces because a delegated power constitutes not only
conditions by making liabilities as they a right but a duty to be performed by the
a new rule to be stand on present or delegate by the instrumentality of his own
applied thereafter past facts and under judgment acting immediately upon the matter
laws supposed to and not through the intervening mind of
exist another. Thus, it’s violation is tantamount to a
Lays down general Applies to named violation of the trust reposed by the delegating
regulations that apply persons or to specific authority.
to or affect classes of situations
persons. However, in This rule is a necessary corollary of the Doctrine
certain cases, rule of Separation of Powers
making powers may
merge into III. Non-Delegation of Legislative Powers
determinative or GR: The Congress may not delegate to AAs the
adjudicatory powers. legislative powers vested in it
Except: When authorized by law
Ex: licensing boards
setting forth the Need for Delegation:

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 1. Matters requiring more specialized extent of its operations are stated, so that the
knowledge and expertise possessed by AAs only thing the delegate has to do is enforce it)
2. Details and questions beyond capacity 10. The general rule which requires an
of legislature to determine express standard to guide the exercise of
discretion is subject to exceptions
Requisites for Delegation: 11. The rule on non-delegation of
1. The Completeness of the statute legislative powers does not apply when
making the delegation permitted by the Constitution and in case of
2. The presence of a Sufficient Standard delegation to LGUs

IV. Delegation to Administrative Agencies V. Sufficient Standards Test

1. Power which is essentially or purely Exceptions:
legislative in nature CANNOT be delegated- only 1. In the handling of State Property or
incidental to AA powers Funds
2. Delegation of Authority is a VALID 2. A power which is not directly or
delegation- what can be delegated is the exclusively a legislative one
discretion to determine how the law may be 3. Fields which are purely administrative
enforced and not what the law should be 4. The power of a Board to make
(Delegation of Power to make the Law) recommendations
3. The Legislative may delegate its 5. Matters of Privileges
authority to make Findings of Fact- but where 6. Where it is Impracticable
delegation to a fact-finding body empowers it to 7. Where the act relates to the
create the conditions which constitute the fact, administration of a Police regulation and is
the delegation is invalid necessary to protect the general welfare, morals
4. When the Legislature laid down the and safety of the public
fundamentals of a law, it may delegate to AAs
the authority to exercise such legislative power VII. Permissible Delegation of Legislative Powers
as is necessary to carry into effect the general 1. Delegation of Emergency Powers to
legislative purpose- the rule making power must the President
be confined to details for regulating the mode of 2. Delegation of Tariff Powers to the
proceedings, and it cannot be extended to President
amend or expand the statutory requirements 3. Delegation to the People
5. There must be adequate guidelines or 4. Delegation to LGUs
limitations in the law to map out the boundaries 5. Delegation to AAs
of the delegate authority and prevent the
delegation from running riot (Sufficient Standard
Test)
6. Specific formula for guidelines is not
requires, the modern tendency is to be more
liberal in permitting grants of discretion to AAs
7. The standard to guide AAs may be
expressed or implied
8. In case of Delegation of a Rate-Fixing
Power, the rate needs to be reasonable and just
9. A statute must be complete in itself
(Comepleteness Test- the statute must be
complete when the subject and manner and

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