RULE-MAKING POWER

OF ADMINISTRATIVE
AGENCIES
Rule-making/Quasi-legislative Power

• Rule- making power is also known as quasi-legislative power of

administrative agencies.

• It is the authority delegated by the law-making body (Congress) to the

administrative body to adopt rules and regulations intended to carry
out the provisions 0f a law and implement legislative policy
Distinctions Between Law-making
(legislative) and Rule-making:

• Legislative power involves the discretion to determine WHAT the law

shall be. Rule-making power only involves the discretion to determine
HOW the law shall be enforced.

• Legislative power CANNOT be delegated. Quasi-legislative power CAN

be delegated.
Tests to Determine Validity of Delegation of
Rule-making Power

• Completeness Test – 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 delegate’s authority, announce the legislative
policy and specify the conditions under which it is to be implemented.
Three kinds of Administrative Rules and
Regulations
• Supplementary – These rules establish the details in enforcing policies
mentioned in the law.
• Interpretative – These rules clarify or explain existing law or
regulation.
• Contingent – A previously enacted law be revived, suspended,
modified or a new rule be put into operation upon the finding of
certain facts by an administrative agency. Due to the risks involved,
this kind of rule is seldom used.
Requisites of a Valid Administrative
Rule/Regulation

• 1. Its promulgation must be authorized by the legislature.

• 2. It must be within the scope of the authority given by the legislature
• 3. It must be promulgated in accordance with the prescribed
procedure
• 4. It must be reasonable
Prior Notice and Hearing in Relation to
Administrative Rules/Regulations
• General Rule: Administrative rules of general application do not
require previous notice and hearing.
• Exception: When the law itself requires it and mandates that the
administrative regulation shall be based on certain facts as
determined at an appropriate investigation.
• If the regulation is in effect a settlement of a controversy between
specific parties, it is considered an administrative adjudication,
requiring notice and hearing.
Prescribing or Fixing Rates
• If the rules and rates imposed are meant to apply to all enterprises of
a given kind throughout the country, then it is an exercise of quasi-
legislative power. In this regard, prior notice and hearing is not
required.

• If the rules and rates imposed apply exclusively to a particular party

based upon a finding of fact, then it is an exercise of quasi-judicial
power. In this regard, prior notice and hearing is required.
Publication of Administrative
Rules/Regulations
• What must be published:
• Regulations of general application
• Regulations which are penal in nature
What may not be published:
Interpretative regulations
Internal rules governing the personnel of an administrative agency
Letters of Instruction issued by administrative superiors concerning guidelines
to be followed by their subordinates.
Requisites of Administrative Regulation with
Penal Sanction

• 1. The law itself must make violation of the administrative regulation

punishable.

• 2. The law itself must impose and specify the penalty for violation of
the administrative regulation.

• 3. The regulation must be published.