Administrative Law, Law on Public Officers & Elections Law

Atty. June Erik C. Ylanan

Administrative Agency where it can be

ADMINISTRATIVE LAW thoroughly studied and drafted but it must be
within the reasonable standards being set.
II.
There are two accepted tests to determine
A. Quasi-Legislative (rule-making) whether or not there is a valid delegation of
Power legislative power, viz, the completeness test
and the sufficient standard test. Under the
Administrative agencies may exercise quasi- first test, the law must be complete in all its
legislative or rule-making powers only if there terms and conditions when it leaves the
exists a law which delegates these powers to legislature such that when it reaches the
them. Accordingly, the rules so promulgated delegate the only thing he will have to do is
must be within the confines of the granting enforce it. Under the sufficient standard test,
statute and must involve no discretion as to there must be adequate guidelines or stations
what the law shall be, but merely the in the law to map out the boundaries of the
authority to fix the details in the delegate's authority and prevent the delegation
execution or enforcement of the policy from running riot.
set out in the law itself, so as to conform
with the doctrine of separation of powers and, Both tests are intended to prevent a total
as an adjunct, the doctrine of non-delegability transference of legislative authority to the
of legislative power. delegate, who is not allowed to step into the
shoes of the legislature and exercise a power
Basically, the power to promulgate rules essentially legislative.
springs from the concept of delegation of
power from the Legislature to the The principle of non-delegation of powers is
administrative bodies for the latter to perform applicable to all the three major powers of the
usually exercised by the State. This is one of Government but is especially important in the
the exceptions to the rule of non-delegation of case of the legislative power because of the
power. many instances when its delegation is
permitted. The occasions are rare when
In the long line of cases, the Rule of executive or judicial powers have to be
Delegation of Power has been widely criticized delegated by the authorities to which they
as it has not thoroughly served its purpose. legally certain. In the case of the legislative
Recall the highly controversial issue of the power, however, such occasions have become
GCTA Law, the DOJ and the DILG were more and more frequent, if not necessary. This
delegated to promulgate an Implementing Rule had led to the observation that the delegation
for the Law. While the intention of the Law of legislative power has become the rule and
(National Law) was good, there has been an its non-delegation the exception.
irregularity as to its implementation as it went
beyond on the real intention. Thus, in order to The reason is the increasing complexity
avoid future anomaly, the law must be of the task of government and the
complete as to its term in conferring the growing inability of the legislature to
powers to the administrative agency. There cope directly with the myriad problems
must be sufficient details provided already in demanding its attention. The growth of
the statute. A blanket authority is not valid. society has ramified its activities and created
peculiar and sophisticated problems that the
However, we cannot expect that the Congress legislature cannot be expected reasonably to
can provide the details with precision comprehend. Specialization even in legislation
considering the Congress has their own has become necessary. To many of the
expertise or field of practice prior they become problems attendant upon present-day
the Representative of their constituent. In undertakings, the legislature may not
order to promulgate an effective and efficient have the competence to provide the
laws, rules or regulation to implement, the required direct and efficacious, not to
Congress now assign the duty to an say, specific solutions. These solutions may,

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 Administrative Law, Law on Public Officers & Elections Law
Atty. June Erik C. Ylanan

however, be expected from its delegates, who

are supposed to be experts in the particular Test of Completeness: Whether its provisions
fields assigned to them. are sufficiently definite and certain to enable
one to know his rights and obligations under
The reasons given above for the delegation of the law.
legislative powers in general are particularly
applicable to administrative bodies. With the However, if the law is INCOMPLETE, the law
proliferation of specialized activities and their must offer a sufficient standard to specify the
attendant peculiar problems, the national limits of the delegate’s authority, announce the
legislature has found it more and more legislative policy, and specify the conditions
necessary to entrust to administrative agencies under which it is to be implemented. The
the authority to issue rules to carry out the standard is usually embodied in the law itself
general provisions of the statute. This is and this serves as a guide to indicate the
called the "power of subordinate extent and the limit of the discretion of the
legislation." administrative authorities that they may
exercise under the statute.
With this power, administrative bodies may
implement the broad policies laid down in a With that said, the three (3) basic elements of
statute by "filling in' the details which the a valid issuance of rules and regulations
Congress may not have the opportunity or are:
competence to provide. This is effected by
their promulgation of what are known as 1. It must be germane to the objects and
supplementary regulations, such as the purpose of the stature;
implementing rules issued by the Department 2. They must conform to the standards of
of Labor on the new Labor Code. These the statute; and
regulations have the force and effect of law. 3. They must relate solely to carrying out
into effect the general provision of the
In conclusion: The grant of the rule-making law.
power to administrative agencies is a
relaxation of the principle of separation of Take note that the Rules and Regulations by
powers and is an exception to the non- administrative agencies pursuant of the powers
delegation of legislative powers. Administrative delegated to them have the force and effect of
regulations or "subordinate legislation" law; they are binding on all persons subject to
calculated to promote the public interest are them and the courts will take judicial
necessary because of "the growing complexity notice (meaning, in the rules of evidence, the
of modern life, the multiplication of the parties need not prove such rule and regulation
subjects of governmental regulations, and the as fact) of them,
increased difficulty of administering the law."
Administrative Power – is concerned with the
Nevertheless, it must be emphasized that the work of applying policies and enforcing orders
rule-making power must be confined to details as determined by proper governmental organs.
for regulating the mode or proceeding to carry It enables the President to fix a uniform
into effect the law as it has been enacted. The standard of administrative efficiency and check
power cannot be extended to amending the official conduct of his agents. To this end,
or expanding the statutory requirements he can issue administrative orders, rules and
or to embrace matters not covered by the regulations.
statute. Rules that subvert the statute
cannot be sanctioned. In the case of Ople vs. Torres, Administrative
Order 308, “Adoption of a National
Important Points: Computerized Identification Reference System
was issued by President Ramos. This was
Completeness Test: A law is stated to be questioned by the Petitioner arguing that AO
complete when the (a) Subject; (b) manner; 308 is not a mere Administrative Order but a
and (c) extent of operation are stated on it law and hence, beyond the power of the

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 Administrative Law, Law on Public Officers & Elections Law
Atty. June Erik C. Ylanan

President. The SC defined an Administrative

Order as an ordinance issued by the President 2. Interpretative legislation – they are rules
which relates to specific aspects in the and regulations constructing or interpreting
administrative operation of government. It the provisions of a statute to be enforced;
must be in harmony with the law and they are intended to clarify or explain
should be for the sole purpose of existing statutory regulations under which
implementing the law and carrying out the administrative body operates (e.g. BIR
the legislative policy. The SC rejects the Circular and BSP Circulars).
argument that AO 308 implements the
legislative policy of the Administrative Code of They are binding on all concerned until they
1987. The Code is a general law and are changed; they have the force and effect
“incorporates in a unified document the major of law, and are entitled to great respect
structural, functional and procedural principle they have in their favor the presumption of
of governance” and “embodies changes in legality. The erroneous application of the
administrative structures and procedures law by public officers does not bar
designed to serve the people. subsequent correct application of the law

It cannot be argued that AO 308 merely 3. Contingent Legislation – they are rules and
implements the Administrative Code of 1987. regulations made by an administrative
The establishment of a national computerized authority on the existence of certain facts
identification reference system requires or things upon which the enforcement of
delicate adjustment of various the law depends.
contending state policies, the primacy of
national security, the extent of privacy 1. Tañada vs. Tuvera (G.R. No. L-63915.
against dossier-gathering by the December 29, 1986)
government and choices of policies. It 2. Republic of the Philippines vs.
deals with a subject that should be covered by Express Telecommunications Inc. Co. (G.R. No.
a law. 147096, January 15, 2002)
3. National Association of Electricity
Cases: Consumers for Reforms (NASECORE) vs.
Energy Regulatory Commission (G.R. No.
1. Association of Philippine Coconut 163935, February 2, 2006)
Dessicators vs. Philippine Coconut 4. Republic of the Philippines vs.
Authority (G.R. No. 110526 February 10, Pilipinas Shell Petroleum Corporation (G.R. No.
1998) 173918 April 8, 2008)
2. The Chairman and Executive Director 5. Dagan v. Philippine Racing
of PCSD vs. Ejercito Lim (G.R. No. 183173, Commission (G.R. No. 175220, February 12,
August 24, 2016) 2009)
6.Republic of the Philippines vs.
Drugmaker’s Laboratories (G.R. No. 190387,
B. Kinds of Administrative Rules or March 5, 2014)
Regulations 7. Gerochi vs. Department of Energy
(G.R. No. 159796, July 17, 2007)
1. Supplementary or Detailed Legislation - 8. ABAKADA Guro Party List vs. Hon.
They are rules and regulations “to fix the Purisima (G.R. No. 166715, August 14, 2008)
details” in the execution and enforcement 9. Quezon City PTCA Federation Inc. vs.
of a policy set out in the law. They are in Department of Education (G.R. No. 188720,
the nature of subordinate legislation, and February 23, 2016)
designed to implement a primary legislation
by providing the details thereof. They C. Requisites for Validity
usually implement existing law, imposing
general, extra-statutory obligation pursuant In the case of Hon. Executive Secretary vs.
to authority properly delegated by Congress Southwing Heavy Industries, the SC laid down
(e.g. the IRR of the Labor Code).

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 Administrative Law, Law on Public Officers & Elections Law
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the requirements for a valid administrative (a) Tariff and Customs Code particularly
issuance. These are the following: Sec. 401 which states that, “In the
interest of national economy, general
1. Its promulgation must be authorized by welfare and/or national security, and
the legislature; subject to the limitations herein
2. It must be promulgated in accordance with prescribed, the President, upon
the prescribed procedure (notice and recommendation of the National
hearing); Economic and Development Authority
3. It must be within the scope of authority (hereinafter referred to as NEDA), is
given by the legislature; and hereby empowered: x x x (2) to
4. It must be reasonable. establish import quota or to ban imports
of any commodity, as may be
In the mentioned case, the respondent were necessary” ;
seeking to declare EO 156 entitled as (b) Executive Order No. 226, the
"Providing for a comprehensive industrial policy Omnibus Investment Code of the
and directions for the motor vehicle Philippines which was issued on July
development program and its implementing 16, 1987, by then President Corazon C.
guidelines" which was issued by Pres. Aquino, in the exercise of legislative
Macapagal-Arroyo through her Executive power under the Provisional Freedom
Secretary. Respondents wanted Article 2, Constitution,20 empowers the President
Section 3.1 (prohibits the importation into the to approve or reject the prohibition on
country, inclusive of the Special Economic and the importation of any equipment or raw
Freeport Zone or the Subic Bay Freeport (SBF materials or finished products;
or Freeport), of used motor vehicles, subject to (c) Republic Act No. 8800, otherwise
a few exceptions) to be declared as known as the "Safeguard Measures
unconstitutional. Act" (SMA), and entitled "An Act
Protecting Local Industries By Providing
Let us go through with the requirements to Safeguard Measures To Be Undertaken
determine whether there is a valid ground to In Response To Increased Imports And
declare the issuance as unconstitutional. Providing Penalties For Violation
Thereof,"21 designated the
I. Its promulgation must be authorized by the Secretaries22 of the Department of
legislature; Trade and Industry (DTI) and the
Department of Agriculture, in their
EO 156 actually satisfied the first requisite capacity as alter egos of the President,
of a valid administrative order. It has both as the implementing authorities of the
constitutional and statutory bases. safeguard measures, which include,
inter alia, modification or imposition of
Delegation of legislative powers to the any quantitative restriction on the
President is permitted in Section 28(2) of importation of a product into the
Article VI of the Constitution. It provides: Philippines.

(2) The Congress may, by law, authorize There are thus explicit constitutional and
the President to fix within specified limits, statutory permission authorizing the President
and subject to such limitations and to ban or regulate importation of articles and
restrictions as it may impose, tariff rates, commodities into the country.
import and export quotas, tonnage and
wharfage dues, and other duties or imposts II. It must be promulgated in accordance with
within the framework of the national the prescribed procedure (notice and
development program of the Government. hearing)

The relevant statutes to execute this Anent the second requisite, that is, that the
provision are: order must be issued or promulgated in
accordance with the prescribed procedure, it is

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necessary that the nature of the administrative for the issuance of EO 156. What they
issuance is properly determined. As in the challenged in their petitions before the trial
enactment of laws, the general rule is that, court was the absence of "substantive due
the promulgation of administrative process" in the issuance of the EO.
issuances requires previous notice and
hearing, the only exception being where III. It must be within the scope of authority
the legislature itself requires it and given by the legislature
mandates that the regulation shall be
based on certain facts as determined at In issuing EO 156, particularly the prohibition
an appropriate investigation. This on importation under Article 2, Section 3.1, the
exception pertains to the issuance of legislative President envisioned to rationalize the
rules as distinguished from interpretative rules importation of used motor vehicles and to
which give no real consequence more than enhance the capabilities of the Philippine motor
what the law itself has already prescribed; and manufacturing firms to be globally competitive
are designed merely to provide guidelines to producers of completely build-up units and
the law which the administrative agency is in their parts and components for the local and
charge of enforcing A legislative rule, on the export markets.36 In justifying the issuance of
other hand, is in the nature of subordinate EO 156, petitioners alleged that there has been
legislation, crafted to implement a primary a decline in the sales of new vehicles and a
legislation. remarkable growth of the sales of imported
used motor vehicles. To address the same, the
In Commissioner of Internal Revenue v. Court President issued the questioned EO to prevent
of Appeals, and Commissioner of Internal further erosion of the already depressed
Revenue v. Michel J. Lhuillier Pawnshop, market base of the local motor vehicle industry
Inc.,27 the Court enunciated the doctrine that and to curtail the harmful effects of the
when an administrative rule goes beyond increase in the importation of used motor
merely providing for the means that can vehicles.
facilitate or render less cumbersome the
implementation of the law and substantially Taking our bearings from the foregoing
increases the burden of those governed, it discussions, we hold that the importation ban
behooves the agency to accord at least to runs afoul the third requisite for a valid
those directly affected a chance to be heard administrative order. To be valid, an
and, thereafter, to be duly informed, before administrative issuance must not be ultra
the issuance is given the force and effect of vires or beyond the limits of the authority
law. conferred. It must not supplant or modify
the Constitution, its enabling statute and
In the instant case, EO 156 is obviously a other existing laws, for such is the sole
legislative rule as it seeks to implement or function of the legislature which the
execute primary legislative enactments other branches of the government cannot
intended to protect the domestic industry by usurp,
imposing a ban on the importation of a
specified product not previously subject to The rule-making power of a public
such prohibition. The due process administrative body is a delegated legislative
requirements in the issuance thereof are power, which it may not use either to abridge
embodied in Section 40128 of the Tariff and the authority given it by Congress or the
Customs Code and Sections 5 and 9 of the Constitution or to enlarge its power beyond the
SMA29 which essentially mandate the conduct scope intended. Constitutional and statutory
of investigation and public hearings before the provisions control what rules and regulations
regulatory measure or importation ban may be may be promulgated by such a body, as well
issued. as with respect to what fields are subject to
regulation by it. It may not make rules and
In the present case, respondents neither regulations which are inconsistent with the
questioned before this Court nor with the provisions of the Constitution or a statute,
courts below the procedure that paved the way particularly the statute it is administering or

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Atty. June Erik C. Ylanan

which created it, or which are in derogation of, importation of these vehicles. Thus, in Taxicab
or defeat, the purpose of a statute. Operators of Metro Manila, Inc. v. Board of
Transportation,41 the Court held that a
In the instant case, the subject matter of the regulation phasing out taxi cabs more than six
laws authorizing the President to regulate or years old is a valid exercise of police power.
forbid importation of used motor vehicles, is The regulation was sustained as reasonable
the domestic industry. EO 156, however, holding that the purpose thereof was to
exceeded the scope of its application by promote the convenience and comfort and
extending the prohibition on the importation of protect the safety of the passengers.
used cars to the Freeport, which RA 7227,
considers to some extent, a foreign territory. The problem, however, lies with respect to the
The domestic industry which the EO seeks to application of the importation ban to the
protect is actually the "customs territory" which Freeport. The Court finds no logic in the all
is defined under the Rules and Regulations encompassing application of the assailed
Implementing RA 7227, as follows: provision to the Freeport which is outside the
customs territory. As long as the used
"the portion of the Philippines outside the motor vehicles do not enter the customs
Subic Bay Freeport where the Tariff and territory, the injury or harm sought to be
Customs Code of the Philippines and other prevented or remedied will not arise. The
national tariff and customs laws are in force application of the law should be
and effect."39 consistent with the purpose of and
reason for the law. Ratione cessat lex, et
The proscription in the importation of used cessat lex. When the reason for the law
motor vehicles should be operative only ceases, the law ceases. It is not the letter
outside the Freeport and the inclusion of said alone but the spirit of the law also that gives it
zone within the ambit of the prohibition is an life.42 To apply the proscription to the Freeport
invalid modification of RA 7227. Indeed, when would not serve the purpose of the EO.
the application of an administrative issuance Instead of improving the general economy of
modifies existing laws or exceeds the intended the country, the application of the importation
scope, as in the instant case, the issuance ban in the Freeport would subvert the avowed
becomes void, not only for being ultra vires, purpose of RA 7227 which is to create a
but also for being unreasonable. market that would draw investors and
ultimately boost the national economy.
IV. It must be reasonable.
xxx
It is an axiom in administrative law that
administrative authorities should not act Now, other sources further expand the
arbitrarily and capriciously in the issuance of requirements for the validity of the
rules and regulations. To be valid, such rules administrative order. Aside from the four (4)
and regulations must be reasonable and fairly mentioned requirements, the requirement that
adapted to secure the end in view. If shown to (5) it must be applied to all; and (6)
bear no reasonable relation to the purposes for publication, are added.
which they were authorized to be issued, then
they must be held to be invalid. The first requirement is not that complicated.
As long as there is a law that delegates the
There is no doubt that the issuance of the ban legislative power to the administrative agency,
to protect the domestic industry is a then it is good, otherwise, it unconstitutional as
reasonable exercise of police power. The it violates the principle of separation of powers.
deterioration of the local motor manufacturing
firms due to the influx of imported used motor It is must be within the scope and purview of
vehicles is an urgent national concern that the law.
needs to be swiftly addressed by the President.
In the exercise of delegated police power, the  The power of administrative officials to
executive can therefore validly proscribe the promulgate rules in the implementation of a

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Atty. June Erik C. Ylanan

statute is necessarily limited to what is function of prescribing rates by an

provided for in the legislative enactment. administrative agency, it may either be a
The implementing rules and regulations of legislative or an adjudication function. If it
a law cannot extend the law or expand its were a legislative function the grant of prior
coverage, as the power to amend or repeal notice and hearing to the affected parties is
a stature is vested in the legislature. not a requirement of due process. As regards
rates prescribed by an administrative agency in
 However, administrative bodies are the exercise of its quasi-judicial function, prior
allowed, under their power of subordinate notice and hearing are essential to the validity
legislation, to implement the broad policies of such rates. Where the rules and the rates
laid down in the statute by “filling in” the are meant to apply to all enterprises of a given
details. All that is required is that the kind throughout the country, they may partake
regulation be germane to the objectives of a legislative character. But if they apply
and purposes of the law; that the exclusively to a particular party, based upon a
regulation does not contradict but conforms finding of fact, then its function is quasi-judicial
with the standards prescribed by law. in character.

Xxx 1. Hon. Executive Secretary vs. Southwing

Heavy Industries (G.R. No. 164171, February
If the administrative rule however provide for a 20, 2006)
penal sanction; an additional requirement is 2. DOH vs. Philip Morris Phil. Mftg. (G.R.
needed in order for the administrative rule to No. 202943, March 25, 2015)
be valid and these are: 3. SM Land, Inc. vs. Bases Conversion
Development Authority (G.R. No. 203655,
(a) The law must itself declare as March 18, 2015)
punishable the violation of the 4. Public Schools District Supervisors
administrative rule or regulation; and Association vs. Hon. Edilberto de Jesus (G.R.
(b) The law should define or fix the penalty No. 157299, June 19, 2006)
for the violation of the administrative 5. GMA Network Inc. vs. COMELEC (G.R.
rule or regulation. No. 205357, September 2, 2014)
6. Association of Philippine Coconut
xxx Dessicators vs. Philippine Coconut
Authority (G.R. No. 110526 February 10,
Is there a need of prior notice and hearing 1998)
before and administrative order be valid? 7. Echegaray vs. Secretary of Justice (G.R.
No. 132601, Octpber 12, 1998)
GENERAL RULE: Hearing is not necessary for 8. Lupangco vs. Court of Appeals (160
the issuance of and administrative rule or SCRA 848)
regulation. There is no constitutional 9. National Power Corporation vs. Pinatubo
requirement for a hearing in the promulgation Commericial G.R. 176006, March 26, 2010)
of a general regulation. Where the rule is 10. De Jesus vs. COA (G.R. No. 109023,
procedural, or where the rules are in effect August 12, 1998)
merely legal opinion, there is no notice 11. Phil. Assoc. of Service Importers vs
required. Torres (212 SCRA 298)
12. People of the Philippines vs. Maceren
EXCEPTION: When the administrative rule (79 SCRA 450)
substantially adds to or increase the burden of 13. Alliance for the Foundation of Family vs
those concerned, an administrative agency Hon. Janette L. Garin (G.R. No. 217872, April
must accord those directly affected a chance to 26, 2017)
be heard before its issuance (e.g. imposition of 14. Inmates of the New Bilibid Prison vs.
taxes) Secretary De Lima (G.R. No. 212719/G.R. No.
214637. June 25, 2019)
In the case of Phil. Consumers Foundation vs.
Secretary of DECS, the SC discussed that the

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