Administrative Bodies – are created and can only be abolished by the legislative branch of the

government. However, these administrative agencies are given Legislative and Judicial power.

GENERAL RULE: The law-making power of the congress cannot be delegated, what’s only delegated is to
promulgate rules and regulations to implement the provisions of the law creating the administrative body

Classification of powers:

1. Quasi-legislative
- Power to make rules and regulations in the implementation or in the conduct of a certain
administrative body
- Every administrative body has the rule-making power to make rules and regulations which is
of two kinds:
(1) Internal – are rules and regulations which only affect the conduct of the internal
business of a particular administrative agency
(2) External – are rules and regulations which affect private concerns
- Example: the DOH has its own rules and regulations. But this power to make rules should be
stated in the charter or the law creating it
- The legislative power of these administrative bodies should not contravene a statute which
creates it, the constitution
- Limitation: It will always be subject to the question, whether they are not contravening the
constitution or the statute and always with the test of valid delegation.
- Distinction between Legislative: In the legislative power exercised by the congress, It
includes the power to determine what law should be passed and how should that law be
applied WHILE on quasi-legislative power, it also has the power to determine how the law
will be applied but it cannot determine what law should be passed, their power is limited to
making rules and regulations which are subject to the conditions as stated in the law which
created them
- All rules must conform to the standards prescribed in the law
- The legislative body cannot delegate to a particular administrative body, board, or officer the
power to declare acts that constitute criminal offense because the body who has the power
to declare what acts should be considered as criminal offense is only the congress
→ Example: People vs. Exconde
101 Philippines 1125
1957

In this case, it justifies the subordinate legislation of administrative bodies. Why is it

subordinate? Because its power to promulgate rules and regulations should be delegated
by the congress. Those rules and regulations should be subject to the law creating it.

→ Example: Echegaray vs. Secretary of Justice

G.R. No. 132601
October12, 1998

(First to be punished by the Death penalty) Discusses the test for valid delegation of the
legislative powers by the congress. What are the tests for valid delegation? All the
 congress will delegate to another branch of the government the power to fill in the details
in the execution, enforcement or administration of the law. It is essential to forestall the
violation of the principle of separation of powers. So, the following were stated there as
a test for a valid delegation of the legislative powers by the congress:
(1) The law must be complete in itself – the law creating the administrative body
should clearly state the policy to be executed, carried out, or implemented
by the delegate
(2) There should be a fix standard – limits of which are sufficiently determinate
or at least determinable and which the delegation must conform the
performance of his functions

In this case, the law being subject to the case is R.A. No. 8177.

Issue: Whether or not the mode of carrying the death penalty is correct.

Ruling: The SC says that the R.A. No. 8177 sufficiently describes what job must be done,
who is going to do it and what is the scope of authority. Therefore R.A. No. 8177 was
declared to be valid, that’s why Echegaray was executed following the death penalty.
However, after that the implementation was suspended until now.

→ Example: Land Bank of the Philippines vs. Leonila P. Silada

G.R. No. 164876
January 23, 2006

Issue: Rules made by the administrative bodies have the force and effect of a law
Ruling: The SC said that it is very elementally that the rules and regulations issued by the
administrative bodies to interpret law which they are entrusted to enforce have the force
of law and are entitled to great respect. It is the administrative issuance partake to the
nature statute and have in their favor a presumption of legality. As such, the court cannot
ignore administrative issuance especially when its validity is not put in issue. Unless, an
administrative order is declared valid, courts have no option to apply the same.

2. Quasi-judicial
- their powers should be within the law which creates them; they cannot implement or pass
laws and regulations which are contrary to the law that created the said administrative agency

Rules and Regulations – are not laws because laws are created and passed by the legislative part of the
government or by the congress. However, it has the force and effect of laws to affecting actions or
decisions of the particular administrative body
- It enjoys only presumption of legality, which means, that the court should respect and apply
them. Unless, they are declared invalid by the SC and if they are not constitutional or it
contravenes the law from which they are created
- There is this rule that they are the experts in the particular field which is the reason why they
are created
Doctrines of Administrative Agencies

• Delegation of Powers
- In general principles, the judicial powers cannot delegate any powers if they are not granted
the power to delegate
- Test of Delegation:
(1) Completeness Test – examine the following:
i. Subject matter
ii. Scope of the subject matter (whether it is within the purpose for which the
particular administrative body is created)
iii. The law creating it should outline the job that must be done
iv. Authority (whether or not the particular agency is granted the authority to
implement)
(2) Sufficient Standard Test – examine the following:
i. Legislative policy (this can be found in the law itself; the “whereas” clauses in
the law”; whether it is within the scope of such policy;
ii. whether the administrative body exercising is the agency stated in the
administrative agency to impellent that particular law

→ Example: Senator Robert Jaworski vs. PAGCOR

G.R. No. 144463
January 14, 2004

Facts: In this case, PAGCOR is a GOCC (Government Owned and Controlled Corporation),
but it operates like an ordinary corporation. It was created by the legislative branch of the
government. It was created on July 11, 1983 and under the law that created PAGCOR,
granted them the authority to operate and maintain the gambling for a period of 25 years
and the law creating it says that the 25 years is renewable for another 25 years. On March
31, 1999, the PAGCOR granted to a private corporation named SAGE the authority to
maintain sport betting station, casinos and other similar functions as the PAGCOR. After
SEIGE was granted the said authority by PAGCOR, it started an internet of trial betting
operation. When SAGE was granted such authority, Senator Jaworski questioned the
grant to SAGE by the PAGCOR because he said (1) PAGCOR has no authority to grant to
SAGE the authority and right to betting station and more so, such granting has no basis
because Senator Jaworski alleged that, at the time PAGCOR was created, has no inherent
power to grant internet betting operations because at that time in 1999, there was no
internet yet in the Philippines. So, how can PAGCOR grant an authority for which they are
not granted under the law creating them.

Issue: Whether or not the PAGCOR has authority to operate internet gambling

Ruling: The SC said that PAGCOR was created and granted a legislative franchise and when
granted with such, it is only a special privilege granted by the state to corporations. The
SC held that when it is called special privilege, it is embodied with public concerns
therefore you cannot just exercise it by will and pleasure. And according to the SC, you
need to look into the law which granted PAGCOR the legislative franchise because it is the
 congress who prescribes conditions in the exercise of a grant. The SC said that the
PAGCOR was only allowed to enter into operators or management contracts but it is not
granted the authority to delegate its power to operate and maintain sports betting
casinos etc. Therefore, PAGCOR has acted beyond its legislative franchise since it cannot
delegate powers which are not stated in its charter.

GENERAL RULE/ PRINCIPLE in all Administrative bodies: It can only delegate powers which
under its charter or law in administrative bodies the power to delegate

→ Example: Eastern Shipping Lines Inc. vs. POEA

166 SCRA 533
1988

Issue: What can be delegated?

Ruling: The SC says that if it is something of a nature which requires legislative
discretion as to the substantive contents of the law, the legislative body or the
congress cannot delegate it. But, if the discretion refers to how the law may be
enforced, then it can be delegated by the congress to the legislative body. In
relation to the sufficient standards, there are ACCEPTED SUFFICIENT
STANDARDS: (1) Public Interest (2) Public Convenience and Welfare (3) Public
Convenience and Welfare (4) Simplicity, Economy, and Efficiency (5) Sense and
Experience of Men (6) National Security.

GENERAL RULE: potestas delegate non delegari potest – you cannot delegate what has not been
delegated

EXCEPTION: If the rules and regulations being implemented by the legislative body is only to fill
up the details which the legislator was not able to provide, the administrative body is deemed
to have that power. But, if it does not state that it cannot delegate the power to another body,
especially private bodies, then it cannot delegate because it is not stated in the law.