Powers and Functions of

Administrative Agencies

Powers and functions of

administrative agencies are
interchangeable

meaning administrative powers can be executive,

legislative, or judicial in nature. These agencies are
vested with the responsibility to interpret guidelines
consistently in order to avoid arbitrary and
capricious results. Administrative agency decisions
can be reversed as arbitrary or capricious if the
decisions lack fairness and if it fails to indicate any
course of reasoning and the exercise of judgment.

The Legislature

is considered to be the main source of power of an

administrative agency.

Administrative agencies only carry the powers conferred upon

them either by the statute or by the constitution.

Administrative agencies derive their powers from their

enabling legislation and it cannot exceed that power which is
granted by the legislature.

However, administrative agencies do not carry any inherent,

general or common law powers.

Generally
most

of the administrative agencies have

investigative, rulemaking, and determinative
functions.

Additionally,

some statutory schemes permits

administrative enforcement, and some
administrative agencies are given express
authority to reconsider, amend, correct, or modify
orders.

 An

administrative agency must act within its

authority even if its action is determined to be
legally incorrect at a later stage.

1. Powers and Functions, source

a)

The powers and functions of

administrative agencies are defined in
the constitutional provisions or in the
legislative enactments, whether
national, regional autonomous or local,
creating them.

In the case of RCPI vs Santiago, a

1974 case, the Court held:

Except for constitutional officials who can trace their

competence to act to the fundamental law itself, a
public official must locate in the statute relied upon a
grant of power before he can exercise it. It need not
be express. It may be implied from the wording of
law. Absent such a requisite, however, no warrant
exists for the assumption of authority. The act
performed, if properly challenged, cannot meet the
test of validity. It must be set aside.

In Villegas vs Subido, the Court held:

Nothing is better settled in the law than that a public official

exercises power, not rights. The government itself is merely an
agency through which the will of the state is expressed and
enforced. Its officers therefore are likewise agents entrusted
with the responsibility of discharging its functions. As such there
is no presumption that they are empowered to act. There must
be a delegation of such authority, either express or implied. In
the absent of a valid grant, they are devoid of power. What they
do suffers from a fatal infirmity. That principle cannot be
sufficiently stressed.

b.) While it is fundamental rule that an

administrative agency has only such powers as
are expressly granted to it by law, it is likewise
a settled rule that an administrative agency has
also such powers as are necessarily implied in
the exercise of its express powers.

In Laguna Lake Devt Authority vs CA,

the court held that:

The cease and desist order issued by the Laguna Lake Devt Authority (LLDA) requiring the City Government of
Caloocan to stop dumping its garbage in the Camarin open dumpsite found by the LLDA to have been done in
violation of RA No. 4840 (An ACT creating LLDA), as amended, and other relevant environmental laws, cannot be
stamped as an unauthorized exercise by the LLDA of injunctive powers. By its express terms, RA no. 4840, as
amended by PD 813 and EO 927 series of 1983, authorizes the LLDA to make, alter or modify orders requiring
the discontinuance of pollution. Section 4, par (d) explicitly authorizes the LLDA to make whatever order may be
necessary in the exercise of its jurisdiction.

The court further ruled that assuming arguendo that the authority to issue a cease and desist order were not
expressly conferred by law, there is jurisprudence enough to the effect that the rule granting such authority need
not necessarily be express. While it is fundamental rule that an administrative agency has only such powers as
are expressly granted to it by law, it is likewise a settled rule that an administrative agency has also such powers
as are necessarily implied in the exercise of its express powers. In the exercise thereof, of its express powers
under its charter, as a regulatory and quasi-judicial body with respect to pollution cases in the Laguna Lake
region, the authority of the LLDA to issue a cease and desist order is, perforce implied. Otherwise, it may well
be reduced to a toothless paper agency.

2. Effect of Administrative
Construction
a) The

construction given to a statute by an

administrative agency charged with the
interpretation and application of that statute
is entitled to great respect and should be
accorded great weight by the courts.

In the case of Ting vs CA, the court

ruled that:

The construction given to a statute by an administrative agency charged

with the interpretation and application of that statute is entitled to great
respect and should be accorded great weight by the courts, unless such
construction is clearly shown to be in sharp conflict with the governing
statute or the Constitution and other laws.

The courts give much weight to contemporaneous construction because of

the respect due the government agency or officials charged with the
implementation of the law, their competence, expertness, experience and
informed judgment, and the fact that they frequently are the drafters of the
law they interpret.

b. The conclusive effect of administrative

construction is not absolute.

- Actions of an administrative agency may be disturbed or set aside by the judicial

department if there is an error of law, a grave 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. In this regard, it must be stressed that the function of
promulgating rules and regulations may be legitimately exercised only for the
purpose of carrying the provisions of the law into effect. The power of
administrative agencies is thus confined to implementing the law or putting it into
effect. Corollary to this is that administrative regulations cannot extend the law and
amend a legislative enactment, for settled is the rule that administrative
regulations must be in harmony with the provisions of the law. And in case there is
a discrepancy between the basic law and an implementing rule or regulation, it is
the former that prevails.

Classification of Powers of
Administrative Agencies
I.

As to the scope and extent of the power exercised.

A.

REGULATORY POWER
1)

Power to conduct investigations: this power, including the power to carry out the provisions of law are
essentially executive or administrative in nature. However, when it involves the exercise of judgement and
discretion, it becomes an adjudicatory power.

2)

Quasi-legislative Power: this refers to the authority delegated by the law-making body to the
administrative body to make rules and regulations which are within the limits of the powers granted to it,
provided:
a.

That said rules and regulations are consistent with the Constitution or a statute which created it.

b.

That said rules and regulations may not amend, alter, or limit the terms of a legislative enactment; and

c.

That said rules and regulations should be uniform in operation, reasonable, not unfair and not discriminatory.

This power is what is known as the power of subordinate legislation.

3. Quasi-Judicial Power: This is the power of administrative agencies to

resolve questions of fact and questions of law involved in a case brought
to their determination and adjudication, provided, that its determination
on question of law is subject to judicial review. The exercise of this power
is incidental to their main function which is to enforce the law and to
enforce their executive duties.

II. As to kind of power exercised or chosen by

administrative agencies relative to the
problems referred to them.

This power may either be discretionary of ministerial.

A.

DISCRETIONARY POWER. This is the power of

administrative agencies to act officially on certain cases
referred to them according to the dictates of their own
judgment and conscience and not controlled by the judgment
of conscience of others.

B. MINISTERIAL

POWER. It is a power exercised in response to

a duty as imposed by law and its performance does not
depend upon the discretion of the administrative agency
involved or of the executive officers performing said power.

Investigatory Power

In the exercise of its investigatory or inquisitorial power, administrative agencies have the
power to do any of the following:

1.

They may conduct an investigation, on its own initiative or on the request or complaint of a
party concerned;

2.

They may conduct ocular inspection of the place, things, books, records or documents in
question, to find out if there is a violation of the law;

Definition of Quasi-legislative
power
It

is the authority delegated by the lawmaking body to the administrative body to

adopt rules and regulations intended to carry
out the provisions of a law and implement
legislative policy.

Distinctions between Quasilegislative power and legislative

power
1.

LEGISLATIVE power involves the discretion to

determinewhatthe law shall be. QUASI-legislative
power only involves the discretion to
determinehowthe law shall be enforced.

2.

LEGISLATIVE power CANNOT be delegated. QUASIlegislative power CAN be delegated.

Tests of Delegation (applies to the power to

promulgate administrative regulations )

COMPLETENESS test. This means that the law must be

complete in all its terms and conditions when it leaves the
legislature so that when it reaches the delegate, it will have
nothing to do but to enforce it.

SUFFICIENT STANDARD test. The law must offer a sufficient

standard to specify the limits of the delegates authority,
announce the legislative policy and specify the conditions
under which it is to be implemented

Quasi-Legislative Power

Exercise of delegated legislative power

Involves no discretion as to what the law shall be

Fix the details in the execution or enforcement of a policy

Rules and regulations issued by administrative authorities pursuant to

powers delegated to them have the force and effect of law
o They are binding on all persons subject to them

o Courts will take judicial notice

Letters of Instructions and Eos are presidential issuances; one may repeal
or alter, modify or amend the other, depending on which comes later.

The function of promulgating rules and regulations may be legitimately exercised

only for the purpose of carrying out the provisions of the law into effect.

Administrative regulations cannot extend the law or amend a legislative enactment.

Administrative regulations must be in harmony with the provisions of law.

It must not override, but must remain consistent with the law they seek to apply
and implement.

Administrative agency has no discretion whether or not to implement a law. Its duty
is to enforce the law.

Administrative order is an ordinance issued by the President which relates to

specific aspects in the administrative operation of Government.

Rule Making Powers

The Administrative Code of 1987 provides:

Rule means any agency statement of general applicability that implements or
interprets a law, fixes and describes the procedures in, or practice requirements
of, an agency, including its regulations. The term includes memoranda or
statements concerning the internal administration or management of an agency
not affecting the rights of, or procedure available to the public.
Rule Making means an agency process for the formulation, amendment, or
repeal of a rule. (Section 2, Chapter 1, Book VIII [Administrative Procedure])

What specifically is the power of an Administrative

agency when it exercises Quasi-Legislative Power?

It

merely exercises the power of

subordinate legislation which means
that it can promulgate rules and
regulations intended to carry out the
provisions of the law and implement
legislative policy.

In the course of exercising said function, and administrative

agency is vested with different powers and functions, to wit:

1.

ENABLING POWER they are those powers that enable an

administrative agency to do an act which the law precisely entrust to it.
Example:

a)

The Land Transportation Office (LTO) is the one entrusted with the
function of registering all motor vehicles including drivers license.

b)

The Housing and Land Use Regulatory Board (HLURB) is the one
entrusted with the function of approving application of subdivision
developers.

c)

The Commission on Higher Education (CHED) is the one entrusted with

the function of issuing accreditation of colleges in the Philippines.

2. SUMMARY POWERS they are those powers exercised by administrative

authorities to perform coercive (strong and powerful) measures upon
persons or things without the need of securing judicial warrant.
Example:
a)

An order issued by the Bureau of Immigration and Deportation not to

allow a Fil-Am player from playing in the PBA on the ground of
citizenship.

b)

The forcible evacuation of people for residing within the 6 km radius of

Mayon Volcano to avoid loss of lives and properties.

3. EXAMINING POWERS this is the power of an administrative agency to examine and

inspect books, papers, and records to investigate the activities of persons under each
jurisdiction.
Example:
a)

The Bureau of Internal Revenue (BIR) can lawfully examine the financial statements and
books of accounts of persons and companies.

b)

The Bureau of Immigration and Deportation (BID) can examine the citizenship papers of
any Fil-Am player whose citizenship is under question.

c)

The Bureau of Labor Standards (BLS) can inspect business establishments to determine
whether they comply or not with occupational health and safety standards as provided
for by the Labor Core of the Philippines.

4. DISPENSING POWER this is the power of an administrative officer to

grant exemption from the performance of a general duty.
Example:
a)

The Bureau of Internal Revenue (BIR) can exempt some business

establishments from compliance with some laws or rules which are
entrusted to it for enforcement.

b)

The Movie and Television Review and Classification Board (MTRCB) can
grant exemption or relax rule or rules regarding the showing of a film.