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ADMINISTRATIVE LAW Chapters III and IV

CHAPTER III POWER OF CONTROL, SUPERVISION AND INVESTIGATION

The executive branch, said Clark Clifford, was a chameleon, taking its color from the character and personality of the President. It would not be accurate to state that executive power is the power to enforce the laws, for the President is head of state as well as head of government and whatever powers inhere in such positions pertain to the office unless the Constitution itself withholds it. Furthermore, the Constitution itself provides that the execution of the laws is only one of the powers of the President. It also grants the President other powers that do not involve the execution of any provision of law, e.g., his power over the countrys foreign relations. Whatever power inherent in the government that is neither legislative nor judicial has to be executive. The fact that they do not fall within the authority of either of these two constitutes logical ground for concluding that they fall within that of the remaining one among which the powers of the government are divided. To the President, the problem is one of balancing the general welfare and the common good against the exercise of rights of certain individuals. The power involved is the Presidents residual power to protect the general welfare of the people. It is founded on the duty of the President as steward of the people. To paraphrase Theodore Roosevelt, it is not only the power of the President but also his duty to do anything not forbidden by the Constitution on the laws that the needs of the nation demand. It is a power borne by the Presidents duty to preserve and defend the Constitution. It also may be viewed as a power implicit in the Presidents duty to take care that the laws are faithfully executed. Presidents power of control Sec. 17, Art. VII of the 1987 Constitution provides that the President shall have control of all the executive departments, bureaus, and offices. He shall ensure that the laws be faithfully executed.

A. PRESIDENT AS CHIEF EXECUTIVE AND ADMINISTRATIVE OFFICER


The President and other executive and administrative agencies or bodies are granted powers and functions by the Constitution or by statutes to enforce the laws and carry out the governmental functions, as well as policies and objectives provided in statutes creating them. Among such powers are those of control, supervision and investigation. Executive power of the President The President is the Chief Administrative Officer of the government. Administrative powers of the President can be implied from his executive power.

Marcos v. Manglapus

The Constitution provides that the executive power shall be vested in the President of the Philippines. However, it does not define what is meant by executive power although in the same article it touches on the exercise of certain powers by the President, i.e., 1. The power of control over all executive departments, bureaus and offices 2. The power to execute the laws, the appointing power 3. The powers under the commander-in-chief clause 4. The power to grant reprieves, commutations and pardons 5. The power to grant amnesty with the concurrence of Congress 6. The power to contract or guarantee foreign loans 7. The power to enter into treaties or international agreements, the power to submit the budget to Congress, and 8. The power to address Congress. The inevitable question then arises: By enumerating the powers of the President, did the framers of the Constitution intend that the President shall exercise those specific powers and no other?

ADMINISTRATIVE LAW Chapters III and IV

The Presidents power of control means his power to alter or modify or nullify or set aside what a subordinate officer had done in the performance of his duties and to substitute his judgment with that of the latter. It is said to be the very heart of the meaning of Chief Executives. (Take Note) The Presidents power of control is said to be the very heart of the meaning of Chief Executive. The presidential power of control over the executive branch of government extends to all executive officers, from a cabinet secretary to the lowliest clerk in the executive department. He is the Chief Executive, the head of government and the chief administrative officer. The President, in the exercise of the powers of control, can do what any of his cabinet secretaries can lawfully do as conferred by law.

Generally speaking, the power of control does not include the following: (Take Note) 1. The abolition or creation of an executive office 2. The suspension or removal of career executive officials or employees without due process of law 3. The setting aside, modification, or supplanting of decisions or quasi-judicial agencies, including that of the Office of the President, on contested cases that have become final pursuant to law or to rules and regulations promulgated to implement the law. A presidential appointee belongs to the non-competitive or unclassified service of the government and as such he can only be investigated and removed from office after due hearing by the President under the principle that the power to remove is inherent in the power to appoint.

Araneta v. Gaitmaitan: The legality of the Presidents issuance of an

executive order banning fishing by trawl was questioned because the Secretary of Agriculture, and not the President, was the official authorized by Congress to issue rules and regulations to implement the ban on trawl fishing. The SC sustained the legality of the EO, ruling that since the Secretary of Agriculture was empowered to regulate or ban fishing by trawl, the President, in the exercise of his power of control, can take over from him such authority and issue the EO to exercise it. Doctrine of qualified political agency The President cannot be expected to exercise his control powers all at the same time and in person, and there is a need for him to delegate some of them to his Cabinet members. Limitations of the Presidents control power The power of control of the President over executive departments, bureaus, or offices implies, as a rule, no more than the authority to assume directly the functions thereof, to interfere in the exercise of discretion by its officials, or to alter, modify or set aside what a subordinate official has done and to substitute his judgment for that of the latter.

(Villaluz v. Zaldivar)

Larin v. Executive Secretary: The SC declared the removal of a BIR

Assistant Commissioner illegal. As a career service officer, he enjoys the right to security of tenure. The fact that he is a presidential appointee does not give the appointing authority the license to remove him at will or at his pleasure. He may only be removed for a cause and in accordance with procedural due process.

Macailing v. Andrada: The issue raised was whether the President

could still reverse the decision of the Secretary of Agriculture and Natural Resources even when it had become final. The SC ruled in the negative. Controlling in this case is Desiata v. Executive Secretary. After the decision of the Secretary of Agriculture, the case was taken to the Office of the President outside the 30-day period. The Executive Secretary revoked the decision of the Secretary of Agriculture. It was held that there was grave abuse of discretion on the part of the Executive Secretary in entertaining the appeal. His decision is null and void. The decision having become final, the Executive Secretary had no more power to review it.

ADMINISTRATIVE LAW Chapters III and IV

Villaluz v. Zaldivar: The Supreme Court ruled that there is merit in the

claim that petitioner, being a presidential appointee, belongs to the noncompetitive or unclassified service of the government and as such he can only be investigated and removed from office after due hearing by the President of the Philippines under the principle that the power to remove is inherent in the power to appoint. The SC elaborated on this ruling in Larin v. Executive Secretary, involving the removal of a BIT Assistant Commissioner which was declared to be illegal. As a career service officer, petitioner enjoys the right to security of tenure. No less than the 1987 Constitution guarantees the right of security of tenure of the employees of the civil service. For if the President or a cabinet secretary can, by the power of control, nullify or seat aside what a subordinate has done in the performance of his duties, he can order the details of such subordinate to the Office of the President or to any executive department, so long as the detail does amount to an imposition of disciplinary action. The Presidents power of control does not apply to reviewing, or setting aside a decision of a subordinate official in the exercise of his quasi-judicial power after the decision has become final pursuant to law or the rules issued to implement it which prescribes the period of appeal. For public interest requires that proceedings already terminated should not be altered at every step, which include quasi-judicial proceedings, before quesi-judicial agencies.

Camarines Norte Electric Cooperative, Inc. v. Torres: the SC reiterated the rule that a decision of a quasi-judicial agency which has become final can no longer be set aside or supplanted by the President the exercise of his power of control. Presidents power of supervision The constitutional provision that the President shall have control of all the executive departments, bureaus and offices implies that he may not have the power of control over agencies which are not categorized as executive departments, bureaus and offices, unless the law creating them provides that he shall have such power. In the absence of such law, the President may have only the power of supervision, which is only overseeing or the power to see that the officials concerned perform their duties, and if they later fail or neglect to fulfil them, to take such action or steps as prescribed by law to make them perform their duties. (Take Note)

Taule v. Santos: The SC held that Presidential power over local


governments is limited by the Constitution to the exercise of general supervision to ensure that local affairs are administered according to law.

Desiate v. Executive Secretary: Controlling case as regards the

Presidential power over local governments is limited by the Constitution to the exercise of general supervision to ensure that local affairs are administered according to law. The general supervision is exercised by the President through the Secretary of Local Government. The President cannot interfere with local governments so long as the same or its officers act within the scope of their authority. Supervisory power when contracted with control, is the power of mere oversight over an inferior body; it does not include any restraining authority over such body. To monitor means to watch, observe or check. Legally, supervision is not incompatible with disciplinary authority x x x It cannot be reasonably inferred that the power of supervision of the President over local government officials does not include the power of investigation when in his opinion te public service so requires, as postulated in Sec. 63 (c) of the Revised Administrative Code. x x x 3

President having no more power to review a decision having become final rendered by a subordinate official exercising his quasi-judicial function. Public policy and sound practice demant that, at the risk of occasional errors, judgment of courts should become final at some definite date fixed by law. The very object for which courts were instituted was to put an end to controversy. To fulfil this purpose and to do so speedily, certain time limits, more or less arbitrary, have to set up to spur on the slothful.

ADMINISTRATIVE LAW Chapters III and IV

Taule v. Santos: The issue raised is whether the Secretary of Local

Staff Bureau and Line Bureau Distinguished STAFF BUREAU 1. Shall primarily perform policy program development, and advisory functions. 2. Headed by a director who shall advise and assist the Office of the Secretary on matters pertaining to the bureaus area of specialization. 3. Provide consultative and advisory services to the regional offices of the department. LINE BUREAU 1. Shall directly implement programs adopted pursuant to department policies and plans. 2. The director of a line bureau shall exercise supervision and control over all divisions and other units including regional offices, under the bureau. 3. Establish policies and standards for the operations of the bureau pursuant to the plans and programs of the department, promulgate rules and plans and programs of the department. 4. Promulgate rules and regulations necessary to carry out bureau objectives, policies and function. 5. Perform such other duties as may be prescribed by law.

Government has the jurisdiction to nullify the election of barangay council members for irregularities in the manner the election was conducted. The Secretary justified the nullification pursuant to the guidelines for the conduct of the elections of officers of the Katipunan ng mga Barangay, the violation of which would vest in him the authority to resolve any protest relative thereto. The Court answered the issue in the negative, thus: Construing the constitutional limitation on the power of general supervision of the President over local governments, We hold that respondent Secretary has no authority to pass upon the validity or regularity of the election of the officers of the katipunan. To allow respondent Secretary to do so will give him more power than the law or the Constitution grants. It will in effect give him control over local government officials for it will permit him to interfere in a purely democratic and non-partisan activity aimed at strengthening the barangay as the basic component of local governments so that the ultimate goal of fullest autonomy may be achieved. (Take Note)

B. FUNCTIONS OF LOWER EXECUTIVE OFFICERS


Duties of subordinate executive officers Powers, duties or functions are interchangeably used. Power is the means by which duties or functions are performed. Duties and functions are the tasks which administrative agencies or public officers are bound to do or fulfil, to carry into effect the will of the state as expressed in statutes.

4. Develop plans, programs, operating standards, and administrative techniques for the attainment of the objectives and functions of the bureau. 5. Perform such other duties as may be prescribed by law.

Control, supervision and review by other executive officials Supervision means overseeing or the power or authority of an officer to see to it that their subordinate officers perform their duties. (Take Note) Supervision is a lesser power than control. The power of supervision does not allow the superior to annul the acts of the subordinate, for that comes under the power of control. What he can only do is to see to it that the subordinate performs his duties in accordance with law.

Duties of bureaus and offices


Bureau any principal subdivision of the department performing a single major function or closely related functions. Bureaus are either staff or line.

ADMINISTRATIVE LAW Chapters III and IV

The power of review is exercised to determine whether it is necessary to correct the acts of the subordinate. If such correction is necessary, it must be done by the authority exercising control over the subordinate or through the instrumentality of the courts of justice, unless the subordinate motu proprio corrects himself after his error is called to his attention by the official exercising the power of supervision and review over him. The power to review includes the power to disapprove; but it does not carry the authority to substitute ones own preferences for that chosen by the subordinate in the exercise of its sound discretion. Under the 1987 Administrative Code, supervision and control include the authority to: a. Act directly whenever a specific function is entrusted by law or regulation to a subordinate; b. Direct the performance of duty; restrain the commission of acts; c. Review, approve, reverse or modify acts and decisions of subordinate officials or units; d. Determine priorities in the execution of plans and programs; e. Prescribe standards, guidelines, plans and programs. Specifically, administrative supervision is limited to the authority of the department or its equivalent to: 1. Generally oversee the operations of such agencies and insure that they are managed effectively, efficiently and economically but without interference with day-to-day activities; 2. Require the submission of reports and cause the conduct of management audit, performance evaluation and inspection to determine compliance with policies, standards and guidelines of the department; 3. Take such action as may be necessary for the proper performance of official functions, including rectification of violations, abuses and other forms of maladministration; 4. Review and pass upon budget proposals of such agencies but may not increase or add to them.

The 1987 Administrative Code on the subject provides: Supervision and control Supervision and control shall include: 1. Authority to act directly whenever a specific function is entrusted by law or regulation to a subordinate; 2. Direct the performance of duty; 3. Restrain the commission of acts; 4. Approve, reverse or modify acts and decisions of subordinate officials or units; and 5. Prescribe standards, guidelines, plans and programs. Control shall encompass supervision and control. Administrative supervision Administrative supervision which shall govern the administrative relationship between a department or its equivalent and regulatory agencies or other agencies as may be provided by law, shall be limited to: 1. The authority of the department or its equivalent to generally oversee the operations of such agencies and to insure that they are managed effectively, efficiently and economically but without interference with day-to-day activities; 2. Require the submission of reports and cause the conduct of management audit, performance evaluation and inspection to determine compliance with policies, standards and guidelines of the department; 3. To take such action as may be necessary for the proper performance of official functions. Illustrative of supervision and control is that of the Secretary of Justice. Decisions or resolutions of prosecutors to file informations or to dismiss the criminal complaints lodged with them for preliminary investigation are subject to appeal to the Secretary of Justice who, in the exercise of his power of direct control and supervision, may affirm, nullify, reverse or modify their rulings. Review by the Secretary of Justice, as an act of supervision and control, finds basis in the doctrine of exhaustion of administrative remedies which holds that mistakes, abuses or negligence committed in the initial steps of an administrative authority or by an administrative agency should be corrected by higher administrative authorities, and not directly filed by courts. Such power of supervision and control is generally not subject to judicial review, except upon a showing of grave abuse of discretion. 5

ADMINISTRATIVE LAW Chapters III and IV

The department secretarys supervision and control over all bureaus and offices under his jurisdiction is limited to the bureaus and offices under him, but does not extend to agencies attached to the department. An administrative officer has only such powers as are expressly granted to him and those necessarily implied in the exercise thereof. These powers should not be extended by implication beyond what may be necessary for their just and reasonable execution. Supervision is a lesser power than control, which connotes the power of the officer to alter or modify or set aside what a subordinate had done in the performance of his duties and to substitute the judgment of the former for that of the latter. Review on the other hand, is a consideration or re-examination for purposes of correction. If at all, the power of review includes the power to disapprove: but it does not carry the authority to substitute ones own preferences for that chosen by the subordinate in the exercise of sound discretion. C. POWER OF INVESTIGATION Investigatory or inquisitorial powers have been granted by the Constitution or the legislature to executive or administrative officials or agencies for a number of purposes. The investigatory powers of some agencies are limited only to information gathering as basis to recommend appropriate action by other government agencies or to focus public opinion on matters of vital concern, like the Human Rights Commission; other agencies are granted investigatory powers for prosecution purposes, such as the offices of public prosecutor and the Ombudsman; still, others exercise investigatory powers in aid of the exercise of other powers granted them, like the SEC, in the regulation of private corporations. The enabling act defines the extent of such investigatory powers.

Executive power of investigation The President has the power to order the conduct of investigation for a number of purposes: 1. For all administrative functions; 2. Rule-making; 3. Adjudication; and 4. For purposes no more specific than illuminating obscure areas to find out what, if any, thing should be done. As chief administrative officer, the President may make investigations, not only in proceedings of a legislative or judicial nature, but also proceedings whose sole purpose is to obtain information upon which future action of a disciplinary, administrative, prosecutory, legislative or judicial nature may be taken. The lifeblood of the administrative process is the flow of fact, the gathering, the organization and the analysis of evidence. Investigations are useful for all administrative functions, not only for rule-making, adjudication and licensing, but also for prosecuting, for supervising and directing, and for purposes no more specific than illuminating obscure areas to find out what, if any, should be done. The Presidents investigatory power emanates from his power of supervision and control over all executive departments, bureaus, and offices; his power of supervision over LGUs; and his power of appointment of presidential appointees, which are conferred upon him by the Constitution.

Residual Powers Unless Congress provides otherwise, the President shall exercise such other powers and functions vested in the President which are provided for under the laws and which are not specifically enumerated above, or which are not delegated by the President in accordance with law. (Take Note)

ADMINISTRATIVE LAW Chapters III and IV

The administrative agency has the power of inquisition which is not dependent upon a case or controversy in order to get evidence, but can investigate merely on suspicion that the law is being violated or even just because it wants assurance that it is not. When investigative and accusatory duties are delegated by statute to an administrative body, it, too, may take steps as to whether there is probable violation of the law. In sum, it may be stated that a subpoena meets the requirements for enforcement if the inquiry is: 1. Within the authority of the agency; 2. The demand is not indefinite; and 3. The information is reasonably relevant. Sec. 580 of the Revised Administrative Code

The reason is that the preliminary investigation by the prosecutor is essentially preliminary, prefatory, and cannot lead to a final, definite and authoritative judgment of the guilt or innocence of the person charged with a felony or crime. While the prosecutor exercises discretion as to whether to file or not to file the information in court after such preliminary investigation, based on the facts presented, the prosecutor, in that sense, is not a quasi-judicial officer exercising a quasi-judicial power. It is the second kind of preliminary investigation, the one conducted by the judge to determine probable cause for the issuance of a warrant of arrest, that is judicial in nature. The above provision applies to national bureaus and offices. The power vested in the prosecutor to conduct preliminary investigation for the purpose of determining whether there is reasonable ground to believe that the accused is probably guilty to warrant the filing in court of an information or complaint is executive in nature. The reason is that the preliminary investigation by the prosecutor is essentially preliminary, prefatory and cannot lead to a final, definite and authoritative judgment of the guilt or innocence of the4 person charged with a felony or crime. The officer vested by law to investigate the administrative complaint cannot delegate or confer the power to administer oath, to take testimony, and to issue subpoenas. Investigatory powers, as incidents of main function Most administrative agencies which have been granted by law with executive, quasi-legislative and quasi-judicial powers have also investigatory powers in aid or as incidents of the exercise of such powers, as means to make the performance of the latter effective. This is better understood by way of illustrations: 1. The COMELEC is tasked with the power to execute all election laws and has been granted not only rule-making and quasi-judicial powers but also the power to investigate and prosecute all election offenses. 7

Powers incidental to taking of testimony. When authority to take testimony or evidence is conferred upon an administrative officer or upon any nonjudicial person, committee, or other body, such authority shall be understood to comprehend the right to administer oaths and summons witnesses and shall include authority to require the production of documents under a subpoena duces tecum or otherwise, subject in all respects to the same restrictions and qualifications as apply in judicial proceedings of a similar character. (Take Note) Saving the provisions of sec. 102 of this Act, any one who, without lawful excuse, fails to appear upon summons issued under the authority of the preceding paragraph or who, appearing before any individual or body exercising the power therein defined, refuses to make oath, give testimony, or produce documents for inspection, when thereunto lawfully required, shall be subject to discipline as in case of contempt of court and upon application of the individual or body exercising the power in question shall be dealt with by the judge of first instance having jurisdiction of the case in the manner provided by law.
The power vested in the prosecutor to conduct preliminary investigation for the purpose of determining whether there is reasonable ground to believe that the accused is probably guilty to warrant the filing in court of an information or complaint is executive in nature (Take note).

ADMINISTRATIVE LAW Chapters III and IV

The grant to the COMELEC of the power to investigate and, if warranted, to prosecute before the regular courts all election offenses, whether committed by public officers or private persons, is a concomitant of its authority to enforce and administer all laws relative to the conduct of elections. Hence, election offenses committed by public officials in relation to their office can only be investigated and prosecuted by the Commission, not the Ombudsman, and the same can be tried before regular courts, not the Sandiganbayan. The Comelec cannot conduct a reinvestigation of the case without the authority of the court or unless so ordered by the court. 2. The SEC is the administrative agency tasked to issue primary franchises or permits for private corporations to operate and undertake businesses in the country. It has been granted the absolute jurisdiction, supervision and control over all corporations, partnerships or associations, which are grantees of primary franchises and/or permits or licenses issued by the government to operate business in the Philippines. In the exercise of this power, it is granted visitorial power to determine compliance with the Corporation Code and the rules and regulations which it has issued in the exercise of its rule-making power. It can exercise the power through its authorized representatives either motu proprio or upon complaint of a party in interest, not necessarily a stockholder. It may examine the operations, books and records of any corporation, but with the injunction that the results of such examination shall be kept strictly confidential, except insofar as the law may require the same to be made public or as may be presented as evidence before any court. (Important) Investigatory power as main function There are administrative agencies which are granted only investigatory powers, such as the CHR and the NBI. The CHR has the power to grant immunity from prosecution to any person whose testimony or whose possession of documents or other evidence is necessary or convenient to determine the truth in any investigation conducted by it or under its authority. (Take Note)

Carino v. CHR: The question raised is whether the CHR has the power

to adjudicate or exercise quasi-judicial power, as an incident of its power to investigate. The SC ruled that it has none. The CHR, by its adjudicative power, may investigate, i.e., receive evidence and make findings of fact as regards claimed human rights violations involving civil and political rights. But fact-finding is not adjudication, and cannot be likened to the judicial function of a court of justice, or even a quasi-judicial agency or official. The function of receiving evidence and ascertaining therefrom the facts of a controversy is not a judicial function. To be considered as such, the faculty of receiving evidence and making factual conclusions in a controversy must be accompanied by the authority of applying the law to those factual conclusions to the end that the controversy may be decided or determined authoritatively, finally and definitely, subject to such appeals or modes of review as may be provided by law. This function, the CHR does not have. (Take Note) To investigate is not to adjudicate or adjudge. Investigate to examine, explore, inquire or delve or probe into, research on, study. The purpose of investigation, of course, is to discover, to find out, to learn, obtain information. Nowhere included or intimated is the notion of settling, deciding or resolving a controversy involved in the facts inquired into by application of the law to the facts established by inquiry. Adjudicate to adjudge, arbitrate, judge, decide, determine, resolve, rule on, settle. - to settle finally the rights and duties of the parties to a court case on the merits of issues raised. Adjudge to decide or rule upon as a judge or with judicial or quasijudicial powers.

ADMINISTRATIVE LAW Chapters III and IV

Thus, the power of the CHR is basically investigatory and informational in nature. The powers and functions of the NBI are not judicial or quasi-judicial in nature. Its functions are merely investigatory and informational in nature. It has no judicial or quasi-judicial powers and is incapable of granting any relief to a party. It cannot even determine probable cause.

The Ombudsman has the power to punish for contempt in accordance with the Rules of Court and under the same procedure and with the same penalties provided therein. Prosecutory power of the Ombudsman The power granted to the Ombudsman by the 1987 Constitution to investigate on its own, or on complaint by any person, any act or omission of any public official, employee, office, or agency when such act or omission appears to be illegal, unjust, improper, or inefficient includes the authority to conduct preliminary investigations of criminal complaints and to file in courts the corresponding criminal information when the evidence so warrants. The power of the Ombudsman to make investigation extends to any illegal act or omission of any public official, whether or not the same is committed in relation to his office. Such power is not exclusive, but is shared with other investigative authorities, i.e. prosecutor. However, where the offense comes within the exclusive original jurisdiction of the Sandiganbayan under Sec. 4(a) of Pd 1861, which requires that the offense be committed by a public officer in relation to his office and the penalty is higher than prision correccional or imprisonment for six years, or a fine of P6,000.00, the power to conduct preliminary jurisdiction of the offense comes within the primary jurisdiction of the Ombudsman. However, with respect to cases cognizable by the Sandiganbayan, the Ombudsman has primary jurisdiction to conduct investigation and may take over at any stage of the investigation from any investigative agency or prosecutor. The Office of the Ombudsman has the power to investigate and prosecute on its own or on complaint by any person, any act or omission of any public officer or employee, office or agency, when such act or omission appears to be illegal, unjust, improper or inefficient. This power has been held to include the investigation and prosecution of any crime committed by a public official regardless of whether the acts or omissions complained of are related to, or connected with, or arised from, the performance of his official duty. It is enough that the act or omission was committed by a public official. 9

D.INVESTIGATORY POWERS OF THE OMBUDSMAN


The Ombudsman is the protector of the people against abuses of government officials and employees. He has been granted vast powers, which may be classified as follows: 1. Investigatory power 2. Prosecutory power 3. Public assistance functions 4. Authority to inquire and obtain information 5. Function to adopt, institute and implement preventive measures. The authority of the Ombudsman to investigate any illegal act or omission of any public official is broad enough to include the investigation of any crime committed by a public official. The law does not qualify the nature of the illegal act or omission of the public official or employee that the Ombudsman may investigate. It does not require that the act or omission be related to or be connected with or arise from, the performance of official duty. Since the law does not distinguish, neither should the court. (Take Note) While the authority of the Ombudsman to investigate any act or omission of any public officer or employee, other than those specifically excepted under the Constitution and RA 6770, which appears illegal, unjust, improper, or inefficient, is broad, the Constitution and the Ombudsman Act did not intend to confer upon the Ombudsman veto or revisory power over an exercise of judgment or discretion by an agency or office upon whom the judgment or discretion is lawfully vested. On the question of whether to accept or reject a bid and award contract vested by law in a government agency, which involves the exercise of discretion, the Ombudsman has exceeded his power by reviewing the award and granting it to another bidder.

ADMINISTRATIVE LAW Chapters III and IV

The prosecutor having been deputized by the Ombudsman for purpose makes his acts subject to the supervision and control of Ombudsman, and the prosecutor cannot legally act on his own refuse to prepare and file the information as directed by Ombudsman.

the the and the

Exceptions from prosecutory power of the Ombudsman The Ombudsman is precluded from prosecuting before the Sandiganbayan any impeachable officers with any offenses which carries with it the penalty of removal from office, or any penalty service of which would amount to removal from office because by constitutional mandate they can only be removed from office or impeachment for and conviction of: 1. Culpable violation of the Constitution 2. Treason 3. Bribery 4. Graft and corruption 5. Other high crimes 6. Betrayal of public trust Impeachable Officers 1. President 2. Vice-President 3. Members of the Supreme Court 4. Members of the Constitutional Commissions 5. Ombudsman The Ombudsman does not also have the power to prosecute public officers or employees who have committed election offenses. Hence, election offenses committed by public officials in relation to their office can only be investigated and prosecuted by the Commission on Elections or by a prosecutor deputized by it, not the Ombudsman and the same can be tried before regular courts, not the Sandiganbayan. Disciplinary investigations The Office of the Ombudsman has disciplinary authority over all elective and appointive officials of the Government and its subdivisions, instrumentalities and agencies, including Members of the Cabinet, local government, government-owned or controlled corporations and their subsidiaries except officials who may be removed only by impeachment, Members of Congress, and of the Judiciary. 10

The power of supervision and control means the Ombudsman has the power to direct, review, approve, reverse or modify the decision of the deputized prosecutor. Q: May the Ombudsman investigate unsigned or unverified complaint? A: Yes. Art. XI, Sec. 12 of the Constitution provides: The Ombudsman and his Deputies, as protectors of the people, shall act promptly on complaints filed in any form or manner against public officials or employees of the Government, or any subdivision, agency or instrumentality thereof, including GOCCs and shall, in appropriate cases, notify the complainants of the action taken and the result thereof. The Ombudsman can act on any complaint filed in any form or manner. This includes unsigned or unverified complaint. It also includes testimony given at a fact-finding investigation and charges made in a pleading in a case in court. A formal complaint is not necessary. The phrase in an appropriate case means any case concerning official act or omission which is alleged to be illegal, unjust, improper, or inefficient. However, a complainant must act in good faith. Any person who, actuated by malice or gross bad faith, files a completely unwarranted or false complaint against any government official or employee shall be subject to prosecution and to penalty of 1 month and 1 day to 6 months imprisonment and a fine not exceeding P5,000.

ADMINISTRATIVE LAW Chapters III and IV

However, the Office of the Ombudsman has the power to investigate any serious misconduct in office committed by officials removed by impeachment, for the purpose of filing a verified complaint for impeachment, if warranted. Pertinent provisions of Adm. Order No. 07 (Rules of Procedure in administrative cases)

Any person who wilfully obstructs or hinders the proper exercise of the functions of the Office of the Ombudsman or who wilfully misleads or attempts to mislead the Ombudsman, his Deputies and the Special Prosecutor may be punished by a fine not exceeding P5,000. CHAPTER IV QUASI-LEGISLATIVE POWER

Sec. 3. How initiated. An administrative case may be initiated by a written complaint under oath accompanied by affidavits of witnesses and other evidence in support of the charge. An administrative proceeding may also be ordered by the Ombudsman or the respective Deputy Ombudsman on his initiative or on the basis of a complaint originally filed as a criminal action or a grievance complaint or request for assistance. Sec. 7. Finality of decision. Where the respondent is absolved of the charge, and in case of conviction where the penalty imposed is public censure or reprimand, suspension of not more than one month, or a fine equivalent to one month salary, the decision shall be final and unappealable. In all other cases, the decision shall become final after the expiration of 10 days from receipt thereof by the respondent, unless a MR or petition for certiorari shall have been filed by him as prescribed in Sec. 27 of RA 6770.
Other powers of the Ombudsman The Ombudsman has the power to grant immunity from criminal prosecution to any person whose testimony or whose possession and production of documents or other evidence may be necessary to determine the truth in any hearing, inquiry or proceeding being conducted by the Ombudsman or under its authority, in the performance or in the furtherance of its constitutional function and statutory objectives. The immunity granted, shall not, however, exempt the witness from criminal prosecution for perjury or false testimony nor shall he be exempt from demolition or removal from office. Any refusal to appear or testify shall be subject to punishment for contempt and removal of the immunity from criminal prosecution.

A. IN GENERAL
Legislative power is the power to make, alter, and repeal laws. The Constitution provides that the legislative power shall be vested in the Congress of the Philippines which shall consist of a Senate and a House of Representatives, except to the extent reserved to the people by the provision on initiative and referendum. It is the peculiar province of the legislature to prescribe the rules for the government of society. The essential feature of the legislative function is the determination of the legislative policy and its formulation and promulgation as a defined and binding rule of conduct. The legislative power is plenary for all purposes of civil government, subject only to such limitations as are found in the Constitution. The doctrine of separation of powers prohibits the delegation of purely legislative power. (Take note) General rule: Legislative power cannot be delegated. (Rule is not absolute and is subject to exceptions.) One of the settled maxims in constitutional law is that the power conferred upon the legislature to make laws cannot be delegated by that department to any other body or authority. Where the sovereign power of the state has located the authority, there it must remain; and by the constitutional agency alone the laws must be made until the constitution itself is changed. The power to whose judgment, wisdom, and patriotism this high prerogative has been entrusted cannot relieve itself of the responsibility of choosing other agencies upon which the power shall be devolved, nor can it substitute the judgment, wisdom and patriotism of any other body for those to which alone the people have seen fit to confide this sovereign trust. 11

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A delegated power constitutes not only a right but a duty to be performed by the delegate of the instrumentality of his own judgment acting immediately upon the matter of legislation and not through the intervening mind of another. Delegation of legislative power to the President Delegation of legislative power to the President is permitted in Secs. 23(2) and 28(2) of Art. VI of the Constitution.

Executive Orders

Sec. 23(2). In times of war or other national emergency, the Congress may, by law, authorize the President, for a limited period and subject to such restrictions as it may prescribe, to exercise powers necessary and proper to carry out a declared national policy. Unless sooner withdrawn by resolution of the Congress, such powers shall cease upon the next adjournment thereof. (Exception to the GR) Sec. 28(2). The Congress may, by law, authorize the President to fix within specified limits, and subject to such limitations and restrictions as it may impose, tariff rates, import and export quotas, tonnage and wharfage dues, and other duties or imposts within the framework of the national development program of the Government. (Exception to the GR)
Presidential issuances are those which the President issues in the exercise of his ordinance power. Presidential issuances include: 1. Executive orders, 2. Administrative orders, 3. Proclamations, 4. Memorandum orders, 5. Memorandum circulars, 6. General or specific orders These issuances have the force and effect of laws.

Acts of the President providing for rules of a general or permanent character in implementation or execution of constitutional or statutory powers. No binding force as statutes enacted by the legislature. Administrative Orders

Executive Orders issued by the President in the exercise of his legislative power during the revolutionary period under the Freedom Constitution Of the same category and binding force as statutes enacted by the legislature.

Proclamations

Memorandum Orders

Memorandum Circulars

General Specific Orders

Acts of the President which relate to particular aspects of governmental operations in pursuance of his duties as administrative head. Acts of the President fixing a date or declaring a status or condition of public moment or interest, upon the existence of which the operation of a specific law or regulation is made to depend. Acts of the President on matters of administrative detail or of subordinate or temporary interest which only concern a particular officer or office of the Government. Acts of the President on matters relating to internal administration which the President desires to bring to the attention of all or some of the departments, agencies, bureaus or offices of the Government, for information or compliance. Acts of the President in his capacity as Commander-in-Chief of the AFP. 12

ADMINISTRATIVE LAW Chapters III and IV

Delegation of legislative power to the Supreme Court The Constitution vests in the SC the power to promulgate rules concerning the protection and enforcement of constitutional rights, pleadings, practice, and procedure in all courts, the admission to the practice of law, the Integrated Bar, and legal assistance to the underprivileged. The power vested in the SC empowers it not only to promulgate rules of procedure but also to repeal procedural laws, such as those which prescribe the method of enforcing rights or obtaining redress for their invasion. Rule 43 of the 1997 Rules of Civil Procedure prescribing uniform procedure on appeals from the CTA and quasi-judicial agencies to the CA, which the SC issued in the exercise of its constitutional rule-making powers, repealed contrary procedural provisions on appeals of statutes on the subject, as those prescribed in RA 7902, RA 1128 and 5440, and RA 5434, and made them uniform.

action on the ordinance within 30 days from submission. If it does not take action within said period, the ordinance will be presumed consistent with law or municipal or city ordinance and shall be deemed approved. If it finds that the ordinance is inconsistent with law or city or municipal ordinance, it shall return the same to the sangguniang barangay concerned for adjustment, amendment, or modification, in which case the effectivity of the ordinance is suspended. (Take note) The power to enact municipal ordinance is lodged with the sangguniang bayan. The affirmative vote of a majority of the members of the sangguniang bayan present and voting, there being a quorum, shall be necessary for the passage of any ordinance. The ordinance is then submitted to the municipal mayor who within 10 days from receipt thereof shall return it either with his approval or veto. It he does not return it within that time, it shall be deemed approved. The sangguniang bayan may, by 2/3 vote of all its members, override the veto of the mayor, in which case it shall become effective for all legal intents and purposes. The approved ordinance is then submitted to the sangguniang panlalawigan for review. The sangguniang panlalawigan may, within 30 days from receipt of the ordinance, invalidate it in whole or in part, and its action shall be final. If the sanngguniang panlalwigan does not take action on the ordinance within 30 days after its submission, it shall be presumed consistent with law and therefore valid. (Take note) (The procedure is the same in the case of a city ordinance being passed by the sangguniang panlungsod.) The sangguniang panlalawigan, as the legislative body of a province, may, by a vote of a majority of the members present, there being a quorum, enact ordinances affecting the province. The ordinance is then forwarded to the governor who, within 15 days from receipt thereof, shall return it with his approval or veto. If he does not return it within that time, it shall be deemed approved. A vetoed ordinance may be repassed by the sangguniang panlalawigan by a 2/3 vote of all its members.

Delegation of legislative power to local governments


The Constitution created legislative bodies of local governments and granted each LGU the power to create its own sources of revenues and to levy taxes, fees and charges subject to such guidelines and limitations as the Congress may provide, consistent with the basic policy of local autonomy. Sec. 48 of the Local Government Code of 1991 provides that local legislative power shall be exercised by the sangguniang panlalawigan for the province; the sangguniang panlungsod for the city; the sangguniang bayan for the municipality; and the sangguniang barangay for the barangay. The smallest legislative body is the sangguniang barangay. It may pass an ordinance affecting a barangay by a majority of all its members. A barangay ordinance is subject to review by the sangguniang bayan or sangguniang panlungsod, as the case may be, to determine whether it is consistent with law or with municipal or city ordinance. The sangguniang panlungsod or sangguniang bayan shall take

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Delegation as exception to restriction thereon The prohibition against delegation of legislative power does not embrace every power the legislative may properly exercise. What the doctrine of separation of powers precludes is the delegation of those powers which are strictly, inherently, and exclusively legislative. These exclusively legislative powers consist generally of what the law shall be, to whom it may be applied, or what acts are necessary to effectuate the law. (Take Note) Trend in delegation of legislative power The latest in our jurisprudence indicates that delegation of legislative power has become the rule and its non-delegation the exception. The reason is the increasing complexity of modern life and many technical fields of governmental functions. The growth of society has ramified its activities and created peculiar sophisticated problems that the legislature cannot be expected reasonably to comprehend. Specialization even in legislation has become necessary. To the many problems attendant upon present day undertakings, the legislature may not have the competence, let alone the interest and the time, to provide the required direct and efficacious solutions. Rule-making power, generally Rule any administrative agency statement of general applicability that implements or interprets a law, fixes and describes the procedure in, or practice requirements of an agency, including its regulations. The term rule includes memoranda or statements concerning the internal administration or management of, an agency not affecting the rights of, or procedure available to, the public. (Take note) Rule-making power of administrative agencies The power to issue rules and regulations which result from delegated legislation in the administrative level.

The grant or rule-making power to administrative agencies is a relaxation of the principle of separation of powers and is an exception to the nondelegation of legislative powers. Distinguished from administrative function Administrative Functions are those which involve the regulation and control over the conduct and affair of individuals for their own welfare and the promulgation of rules and regulations to better carry out the policy of the legislature or such as devolve upon the administrative by the laws creating them. The definition of administrative function includes rule-making power. (Take note) While legislation and administration are distinct powers, the line which separates their exercise is not clearly marked or easily defined, and that in their definition in practical application lies the difference between government by legislation and government by bureaucracy. Distinguished from quasi-judicial power (Very Important) Rule-making power and quasi-judicial power are different, the distinction being determined by the character of the proceedings rather than the character of the body conducting the proceedings. The fact that a body which acts in a legislative capacity has judicial power does not change the character of the legislative act. (Take note) Quasi-legislative Power or Rule-making Power Operates in the future, rather than on past transactions and circumstances, and generally, rather than particularly. Rules and regulations issued in the exercise of rule-making power are of general applicability issued by the administrative agency to implement its purely administrative policies and functions. Quasi-judicial or Adjudication 1. Adjudication means a determination of rights, privileges and duties by an administrative agency resulting in a decision or order which applies to specific situations or to specific persons or entities, or pertains exclusively to a named entity and to no other and is premised on a finding of facts or on a report of its inspector on which the order is based. 14

ADMINISTRATIVE LAW Chapters III and IV

2. An action in the form of a general rule for the future to govern the public at large is legislative in nature. 3. Notice and necessary. hearing is not

2. An action which results from investigation, declaration and enforcement of liabilities as they stand on present or past facts and under existing laws is judicial in character. 3. Requirement of notice and hearing.

3. Determination of facts under a delegated power as to which a statute shall go into effect the ascertainment of facts which will form the basis for the enforcement of a statute.

B. DELEGATION OF LEGISLATIVE POWER


Delegation of legislative power; reasons therefor Delegation of legislative power the grant of authority by the legislature to administrative agencies to issue rules and regulations concerning how the law entrusted to them for implementation may be enforced. Delegation of legislative power has become more and more frequent, if not necessary. This has led to the observation that the delegation of legislative power has become the rule and its non-delegation the exception. (Take Note) Power of subordinate legislation delegated authority to issue rules and regulations to carry out the provisions of the statute. With the power of subordinate legislation, administrative agencies may implement the broad policies in a statute by filling in the details which the Congress may not have the opportunity or competence to provide. This is effected by their promulgation of what are known as supplementary regulations which have the force and effect of law. The reasons for the delegation of legislative power are the increasing complexity of the task of the government and the growing inability of the legislature to cope directly with the myriad problems demanding its attention. (Take Note) What cannot be delegated The doctrine of separation of powers prohibits the delegation of that which is purely legislative in nature. This consists of the power to make the law, or to determine what the law shall be, and to alter or repeal it. (Take note) 15

Right to notice and hearing, distinguishing feature As a rule, the issuance of rules and regulations in the exercise by an administrative agency of its quasi-legislative power does not require notice and hearing, while adjudication of controversies requires notice and hearing or at least the opportunity to be heard on the part of the affected person as a pre-requisite for the validity of its decision. As a general rule, notice and hearing are not essential to the validity of administrative action where the administrative body acts in the exercise of executive, administrative or legislative functions; but where a public administrative body acts in a judicial or quasi-judicial matter, and its acts are particular and immediate rather than general and prospective, the person whose rights or property may be affected by the action is entitled to notice and hearing. Kinds of rule-making power (Take Note) 1. Rule-making by reason of particular delegation of authority the power to issue rules and regulations which have the force and effect of law 2. Rule making by the construction and interpretation of a statute being administered the power of administrative agencies to interpret and construe the statutes entrusted to them for implementation. Three kinds of interpretation: a. Interpretation as an incident of the execution of a law b. Interpretation handed down the Secretary of Justice upon request of a government agency or official c. Interpretation in adversary proceedings

ADMINISTRATIVE LAW Chapters III and IV

The essentials of legislative functions, namely, the determination of the legislative policy and its formulation and promulgation as a defined and binding rule of conduct, cannot be delegated by the legislature. The ascertainment of what the law shall be is a prerogative of the legislature. This prerogative cannot be abdicated nor surrendered by the legislature to the delegate, without rendering the statute delegating it unconstitutional. What may be delegated

Both tests are intended to prevent a total transference of legislative authority to the delegate, who is not allowed to step into the shoes of the legislature and exercise a power essentially legislative. Completeness test The rule is that what has been delegated cannot be delegated or as expressed in a Latin maxim: potestas delegata non delegari potest. (Take Note) The recognized exceptions are: (Take Note)

Generally speaking, the legislature may properly delegate to an executive or administrative agency any legislative power other than the making, altering or repealing of a law, 1. The determination of legislative policies and objectives to be achieved; 2. The formulation and promulgation of a defined and binding rule of conduct; 3. It can delegate the discretion as to how the law shall be enforced; 4. To issue rules to fill in details; 5. To ascertain facts on which the law will operate; 6. To exercise police power; and 7. To fix rates. To be valid however, the delegation has to pass the completeness and sufficiency of standard tests. Test to determine validity of delegation Tests to determine valid delegation of legislative power (Take Note) 1. Completeness test the law must be complete in all its terms and conditions when it leaves the legislative such that when it reaches the delegate the only thing he will have to do is enforce it. 2. Sufficient standard test there must be adequate guidelines or limitations in the law to map out the boundaries of the delegates authority and prevent the delegation from running riot.

1. Delegation of tariff powers to the President under Sec. 28(2) of Art. VI of the Constitution 2. Delegation of emergency powers to the President under Sec. 23(2) of Art. VI of the Constitution 3. Delegation to the people at large 4. Delegation to local governments 5. Delegation to administrative bodies. In every case of permissible delegation, there must be a showing that the delegation itself is valid. It is valid only if the law 1. Is complete in itself, setting forth therein the policy to be executed, carried out, or implemented by the delegate; and 2. Fixes a standard the limits of which are sufficiently determinate and determinable to which the delegate must conform in the performance of his functions. Sufficient standard test The standard may be express or implied. The standard may be found within the framework of the statute under which the act is to be performed, or may inhere in its subject matter or purpose, and a clearly defined field of action may implicitly contain the criteria which must govern the action.

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A standard may also be found in other pertinent legislation, or an executive order, or in the filed of law governing the operation of the agency. The standard must be reasonably adequate, sufficient and definite for the guidance of the administrative agency in the exercise of the power conferred upon it. The sufficiency of the standard depends largely upon the nature of the power exercised and the nature of the right restricted by such power. When standard sufficient The Court has upheld as adequate standards 1. Simplicity and dignity 2. Public interest 3. Public welfare 4. Interest of law and order 5. Justice and equity 6. Adequate and efficient instruction 7. Public safety 8. Public policy 9. Greater national interest 10. Protect the local consumer by stabilizing and subsidizing domestic pump rates, and 11. Promote simplicity, economy and efficiency in government. Standard fixed cannot be enlarged nor restricted Where the law sets the standards by which the delegate may exercise the delegated power, the executive or administrative agency concerned cannot add thereto and justify the exercise of the delegated power on the basis of all such enlarged standards. Usual issues on validity of delegation 1. Against the delegating statue itself refers to the question as to whether or not the requisites of valid delegation are present namely (1) the completeness of the statute making the delegation and the (2)

presence of a sufficient standard; (Absence of any of these requisites, the statute making the delegation is unconstitutional.) 2. Against the exercise of the delegated power pertains to the question as to whether or not the rule or regulation conforms with what the statute provides and whether the same is reasonable. Regulations cannot restrict nor enlarge the law It is a fundamental rule that implementing rules cannot add to or detract from the provisions of the law it is designed to implement. Administrative regulations adopted under legislative authority by a particular department must be in harmony with the provisions of the law they are intended to carry into effect. Examples: 1. When the 135h month pay law defined basic salary as excluding commissions earned for extra efforts, an administrative rule including the commission in the computation of the 13th month pay is invalid, as it unduly expands the scope of the law. 2. A rule of the Commissioner of Internal Revenue excluding from the coverage of a tax amnesty law case which the law did not except is improper. Rules must be reasonable To be valid, the rules and regulations must also be reasonable and fairly adopted to secure 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.

Lupangco v. CA: The PRC issued a regulation which provides that no


examinee (in licensure examinations in accountancy) shall attend any review class, briefing, conference or the like conduct by, or shall receive any hand-out, review material, or any tip from any school, college or university, or any review center or the like of any reviewer, lecturer, instructor official or employee of any of the aforementioned or similar institutions during the 3 days immediately preceding every examination

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day including the examination day. The SC declared such resolution unconstitutional for being unreasonable and violative of academic freedom. Respondent PRC has no authority to dictate on the reviewees as to how they should prepare themselves for the licensure examinations. Rules constituting an offense Administrative bodies have the authority to issue administrative regulations which are penal in nature where the law itself makes the violation of the administrative regulation punishable and provides for its penalty. The regulations may then validly spell out the details of the offense. (Take note) Where a law empowering an administrative agency to issue rules and regulations does not provide that violation of such rules and regulations does not provide that violation of such rules shall be unlawful and punishable or even if it does, it does not prescribe the penalty for such violation, the administrative agency tasked to execute the law has no power to penalize violation of its rules and regulations. For the making of an act a crime is purely legislative, which the legislature cannot delegate. All that is required is that the regulation should be germane to the objects and purposes of the law and that it should conform to the standards that the law prescribe. When rules take effect Laws shall take effect after 15 days following the completion of their publication in the Official Gazette or in a newspaper of general circulation, unless it is otherwise provided. Law includes rules and regulations issued pursuant to a valid delegation and designed to enforce or implement an existing law. Such rules and regulations must be published to be effective. Apart from publication, it is also required that the rules and regulations be filed with the UP Law Center.

Pertinent provisions of Chapter 2, Book VII, 1987 Administrative Code:

Sec. 3. Filing. (1) Every agency shall file with the UP Law Center 3 certified copies of every rule adopted by it. Rules in force on the date of effectivity of this Code which are not filed within 3 months from that date shall not thereafter be the basis of any sanction against any party or persons. Sec. 8. Judicial Notice. The court shall take judicial notice of the certified copy of each rule duly filed or published in the bulletin or codified rules. (Take note) (Courts are presumed to know all its
territorial boundaries wherein courts shall take judicial notice of all laws.) Delegation to ascertain facts Congress may delegate to an administrative agency the power to ascertain facts as basis to determine when a law may take into effect or whether a law may be suspended or come to an end, in accordance with the purpose or policy of the law and the standard for the exercise of the power delegated. To be valid, the law delegating the power to determine some facts or state of things upon which the law may take effect or its operation suspended must be provide the standard, fix the limits within which the discretion may be exercised, and define the conditions therefor. Absent these requirements, the law and the rules issued thereunder are void, the former being an undue delegation of legislative power and the latter being the exercise of rule-making without legal basis. A law which grants an executive officer the power to issue rules whenever, for any cause, conditions arise resulting in extraordinary price of palay, rice or corn, or to fix the maximum price thereof or to suspend the operation of the law when price conditions normalize, pursuant to which he issued rules fixing the maximum price which any of these items could be sold and imposing penalties for their violation, it was held that the statute was unconstitutional and the rules issued were invalid, as the law did not define what for any cause was nor did it prescribe the standards therefor and the penalty for violation thereof, which thereby amounted to a delegation of what the law shall be and not how the law shall be enforced. (Take note) 18

ADMINISTRATIVE LAW Chapters III and IV

People v. Vera: The issue refers to the validity of Sec. 11 of the

Probation Act, which states that This Act shall apply only in the provinces in which the respective boards have provided for the salary of a probation officer at rate not lower than those now provided for provincial fiscals. The SC declared the provision unconstitutional. The law left to the provincial board the full discretion when the law would take or would not take effect and not the ascertainment of what the facts are upon which the enforcement of the law would depend. The principle which permits the legislature to provide that the administrative agent may determine when the circumstances as which require the application of a law is defended upon the ground that at the time this authority is granted the rule of public policy, which is the essence of the legislative act, is determined by the legislature. In other words, the legislature, as it is its duty to do, determines what, under given circumstances, certain executive or administrative action is to be taken, and that, under other circumstances, different or no action at all is to be taken. What is thus left to the administrative official is not the legislative determination of what public policy demands, but simply the ascertainment of what the facts of the case require to be done according to the terms of the law by which he is governed. The efficiency of an Act as a declaration of legislative will must, of course, come from Congress, but the ascertainment of the contingency upon which the Act shall take effect may be left to such agencies as it may designate. The legislature, then, 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. In the case at bar, the legislature has not made the operation of the Probation Act continent upon or specified facts or conditions to be ascertained by the provincial board. It leaves the entire operation or non-operation of the law upon the provincial board. The discretion vested is arbitrary because it is absolute and unlimited. A provincial board need not investigate conditions or find any fact, or await the happening of any specified contingency. It is bound by no rule, limited by no principle of expedience announced by the legislature.

Cruz v. Youngberg: One of the issues raised is whether Act No. 3155,
which provides as follows:

Sec. 1. After March 31, 1925 existing contracts for the importation of cattle into the country the contrary notwithstanding, it shall be strictly prohibited to import, bring or introduce into the Philippine Islands any cattle from foreign countries: Provided, however, That at any time after said date, the Governor-General, with the concurrence of the presiding officers of both Houses, may raise such prohibition entirely or in part if the conditions for the country make advisable or if disease among foreign cattle has ceased to be a menace to agriculture and livestock of the lands.
Constitutes an unlawful delegation of legislative power on the ground that it gave the Governor-General the power to suspend or not, at his discretion, the prohibition against cattle importation. The SC held the law valid. The true distinction is between the delegation of power to make the law, which necessarily involves a discretion as to what it shall be, and conferring an 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. (Take note)

Del Mar v. Philippine Veterans Administration: The Court ruled


that since the law expressly authorizes only the President to suspend the operation of any provisions of RA 65, as amended, if and when the Congress of the US approves the pending GI Bill of Rights, the rules issued by the Philippine Veterans Administration suspending the benefits

granted by the law against veterans who were receiving veterans benefits from the US were null and void, as they contravened the express mandate of the law. The implication of the ruling is that the power granted to the President to suspend the operation of the law upon the happening of the event therein contemplated was a valid delegation of legislative power.

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Prohibition against re-delegation; exceptions The LTFRB has been granted the power to fix rates for the transport sector. Its delegation of such power to common carriers constitutes a violation of the doctrine potestas delegata non-delegari potest, which is thus invalid. Where the power to classify a movie, as for instance into general patronage or for adults only, is lodged in a board, which is a collegiate body, the board cannot delegate such power to its chairman to exercise, for as a rule delegated power cannot be delegated but must be exercised by the person or body tasked by law to exercise it. While the power to decide resides solely in the administrative agency vested by law, this does not preclude a delegation of the power to hold a hearing on the basis of which the decision of the administrative agency will be made. The rule requiring an administrative officer to exercise his own judgment and discretion does not preclude him from utilizing, as a matter of practical administrative procedure, the aid of subordinates to investigate and report to him the facts on the basis of which the officer makes his decisions. It is sufficient that the judgment and discretion finally exercised are those of the officer authorized by law. As long as a party is not deprived of his right to present his own case and submit evidence in support thereof, and the decision is supported by the evidence in the record, there is no question that the requirement of due process and fair trial are fully met. (Take note)

The fixing of rates is essentially a legislative power. The growing complexity of modern society, the multiplication of the subjects of governmental regulations and the increased difficulty of administering the law made the creation of administrative agencies and the delegation to them of legislative power necessary. The power of the State to regulate the conduct and business of public utilities is limited by the consideration that it is not the owner of the property or the utility or clothed with the general power of management incident to ownership, since the private right of ownership to such property remains and is not to be destroyed by the regulatory power. The power to regulate is not the power to destroy useful and harmless enterprises, but is the power to protect, foster, promote, reserve, and control with due regard for the interest, first and foremost, of the public, then of the utility and of its patrons. (Police Power) Delegation of rate-fixing power The legislature usually delegates its rate-fixing power to administrative agencies for the latter to fix the rates which public utility companies may charge the public. Rate-fixing: quasi-legislative or quasi-judicial; when hearing required If it were a legislative function, the grant of prior notice and hearing to the affected parties is not a requirement of due process. As regards rates prescribed by an administrative agency in the exercise of its quasijudicial function, prior notice and hearing are essential to the validity of such rates. Power to regulate is not to destroy The power to regulate is not the power to destroy useful and harmless enterprises, but is the power to protect, foster, promote, preserve and control with due regard for the interest, first and foremost, of the public, then of the utility and of tis patrons. 20

C. RATE-FIXING POWER
Power to regulate public utilities Rate any charge to the public for a service open to all and upon the same terms, including individual or joint rates, tolls, classifications, or schedules thereof, as well as commutation, mileage, kilometrage and other special rates which shall be imposed by law or regulation to be observed and followed by any person, which is generally a public utility.

ADMINISTRATIVE LAW Chapters III and IV

The rate-fixing power of an administrative agency must be subject to the basic requirement of reasonableness, which means that the rates must not be so low as to be confiscatory, or too high as to be oppressive. Power to fix school fees Unless the amount of fees is shown to have been fixed arbitrarily, the same may not be set aside, the presumption being that official duty has been regularly performed. Power to fix rate cannot be re-delegated The power delegated to an administrative agency to fix rates cannot, in the absence of a law authorizing it, be delegated to another.

Executive construction, generally; kinds of Three Types of executive interpretations of the law 1. Construction by an executive or administrative officer directly called to implement the law. 2. Construction by the Secretary of Justice in his capacity as the chief legal adviser of the government. 3. 4. Interpretation handed down in an adversary proceeding in the form of ruling by an executive officer exercising quasi-judicial power. Publication is not required Rules which are merely interpretations of the law or of the regulations issued to implement the law need not be published to be effective, the said interpretations not being considered as law. Internal rules concerning the personnel of the administrative agency and legal opinions, which are at best advisory, need not be published to be effective. Weight accorded to contemporaneous construction In the absence of error, or abuse of power, or lack of jurisdiction, or grave abuse of discretion clearly conflicting with either the letter or the spirit of a legislative enactment creating or charging a governmental agency, the action of the agency would not be disturbed by the courts. Weight accorded to usage and practice The principle of contemporaneous exposition, common usage and practice under the statute, or a course of conduct indicating a particular undertaking of it, is frequently of great value in determining its real meaning, especially when the usage has been acquiesced in by all the parties concerned and has extended over a long period of time. For it has been said that the best interpreter of the law is usage. Optimus

D. CONTEMPORARY CONSTRUCTION
Administrative rule and interpretation distinguished Administrative Rule or Regulation When an administrative agency promulgates rules and regulations, in the exercise of its rule-making power delegated to it by the legislature, it makes a new law with the force and effect of a valid law. Administrative Interpretation of a Law Administrative interpretation of the law is at best merely advisory for it is the courts that finally determine what the law means.

A rule is binding on the courts so long as the procedure fixed for its implementation is followed and its scope is within the statutory authority granted by the legislature, even if the courts are not in agreement with the policy stated therein or with 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. (Take note)

interpres rerum usus.

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Where a statute granted the PCSO additional regular racing days, at the time of which enactment the long, continuous and uniform practice was that all sweepstakes draws and races were held on Sundays and during the whole day, it is safe to conclude that when the legislature chose not to specify in express terms how the additional sweepstakes draws and races would be held, it did not intend to disturb the then prevailing practice and the statute should thus be so construed as not to change the practice. Reenactment by legislature It has been held that where a statute has received a contemporaneous and practical interpretation and the statute as interpreted is re-enacted, the practical interpretation is accorded greater weight than it ordinarily receives, and is regarded as presumptively the correct interpretation of law. When contemporaneous construction disregarded The court may disregard contemporaneous construction, where: 1.There is no ambiguity in the law; 2.The construction is clearly erroneous; (Statute must be declared null and void.) 3.Strong reason to the contrary exists; 4.The court has previously given the statute a different interpretation.

Definition of Terms Power of control the Presidents power to alter or modify or annul or set aside what a subordinate officer had done in the performance of his duties and to substitute his judgment with that of the latter. Doctrine of qualified political agency all executive and administrative organizations are adjuncts of the Executive Department, the heads of the various executive departments are assistants and agents of the Chief Executive, and, except in cases where the Chief Executive is required by the Constitution or law to act in person or the exigencies of the situation demand that he act personally, the multifarious executive and administrative functions of the Chief Executive are performed by and through the executive departments, performed and promulgated in the regular course of business, are, unless disapproved or reprobated by the Chief Executive, presumptively the acts of the Chief Executive. Power of supervision overseeing or the power to see that the officials concerned perform their duties, and if they later fail or neglect to fulfill them, to take such action or steps as prescribed by law to make them perform their duties. Power the means by which duties or functions are performed. Duties and functions the tasks which administrative agencies or public officers are bound to fulfill, to carry into effect the will of the state as expressed in statutes. Bureau any principal subdivision of the department performing a single major function or closely related functions. Staff bureau shall primarily perform policy, program development, and advisory functions. Line bureau shall directly implement programs adopted pursuant to department policies and plans.

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ADMINISTRATIVE LAW Chapters III and IV

Review a reconsideration or re-examination for purposes of correction. Doctrine of exhaustion of administrative remedies mistakes, abuses or negligence committed in the initial steps of an administrative authority or by an administrative agency should be corrected by higher administrative authorities, and not directly filed by courts. Attachment the lateral relationship between the department or its equivalent and the attached agency or corporation for purposes of policy and program coordination. Investigate to examine, explore, inquire or delve or probe into, research on, study. Adjudicate to adjudge, arbitrate, judge, decide, determine, resolve, rule on, settle; to settle finally the rights and duties of the parties on the merits of the issues raised. Adjudge to decide or rule upon as a judge or with judicial or quasijudicial powers. Legislative power the power to make, alter and repeal laws. Presidential issuances those which the President issues in the exercise of his ordinance power. Executive orders acts of the President providing for rules of a general or permanent character in implementation or execution of constitutional or statutory powers. (Take note) Administrative orders acts of the President which relate to particular aspects of governmental operations in pursuance of his duties as administrative head. Proclamations acts of the President fixing a date or declaring a status or condition of public moment or interest, upon the existence of which the operation of a specific law or regulation is made to depend.

Memorandum orders acts of the President on matters of administrative detail or of subordinate or temporary interest which only concern a particular office or office of the Government. Memorandum circulars acts of the President on matters relating to internal administration which the President desires to bring to the attention of all or some of the departments, agencies, bureaus or offices of the Government, for information or compliance. General or specific orders acts and commands of the President in his capacity as Commander-in-Chief of the AFP. Rule any administrative agency statement of general applicability that implements or interprets a law, fixes and describes the procedures in, or practice requirements of an agency, including its regulations. Rule-making any agency process for the formulation, amendment, or repeal of a rule. Rule-making power the power to issue rules and regulations which result from delegated legislation in the administrative level. Administrative functions those which involve the regulation and control over the conduct and affair of individuals for their own welfare and the promulgation of rules and regulations to better carry out the policy of the legislature or such as devolve upon the administrative agencies by the laws creating them. Adjudication a determination of rights, privileges and duties by an administrative agency resulting in a decision or order. Rate any charge to the public for a service open to all and upon the same terms, including individual or joint rates, tolls, classifications, or schedules thereof, as well as commutation, mileage, kilometrage and other special rates which shall be imposed by law or regulation to be observed and followed by any person, which is generally a public utility.

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