Powers of Administrative Agencies | ADMINISTRATIVE LAW

Powers of Administrative Agencies

Administrative Law is the body of law that governs the activities of administrative agencies of government. Administrative agencies are delegated powers to regulate various areas of public and private interest. These agencies have quasi-legislative, quasi-judicial, and executive powers. Their functions and powers must conform to the Constitution and statutes, and their actions are subject to judicial review to ensure compliance with the law.

In the Philippines, administrative agencies play a critical role in governance by carrying out the policies and laws enacted by the legislative branch. The scope and extent of their powers are essential aspects of administrative law.

A. General Framework

The powers of administrative agencies are derived from:

1. Constitution – The general power of the Executive to enforce laws is constitutionally mandated.
2. Statutes – Specific powers are granted to administrative agencies by enabling statutes or legislation.
3. Delegated Powers – Congress may delegate powers to administrative agencies as long as these powers comply with the standards set forth by law.

Administrative agencies must operate within their jurisdiction and cannot exceed the authority granted by law. They also must conform to the principle of non-delegation of powers, although exceptions to this principle exist, especially for administrative discretion and specialized areas.

B. Classification of Powers

The powers of administrative agencies can be categorized into three main types: Quasi-Legislative, Quasi-Judicial, and Executive Powers.

1. Quasi-Legislative (Rule-Making) Power

This refers to the authority of administrative agencies to issue rules and regulations with the force of law. These rules are designed to implement the policy intent of laws enacted by Congress.

• Sources of Rule-Making Power:

  • Enabling statute: Legislation grants agencies the authority to create rules and regulations necessary for the enforcement of laws.
  • Constitutional Limitations: Agencies cannot legislate; they can only fill in the details within the boundaries of the law.

• Requisites for Validity of Administrative Rules:

  1. The rule must be within the scope of the agency’s authority as provided by its enabling law.
  2. It must be promulgated following the required procedure, typically including publication and a period for public comment (the Doctrine of Publication and Notice).
  3. It must be reasonable and consistent with the Constitution and other laws.

• Types of Administrative Rules:

  • Substantive Rules: These are rules that have the force and effect of law and create rights or impose duties.
  • Interpretative Rules: These clarify or explain statutory provisions and do not have the force of law.
  • Procedural Rules: These regulate the internal procedures of the administrative agency.

• Judicial Review of Quasi-Legislative Actions: Courts may review the actions of administrative agencies if there is a question of grave abuse of discretion, illegality, or unconstitutionality. However, courts generally defer to the expertise of administrative agencies under the Doctrine of Primary Jurisdiction and Doctrine of Exhaustion of Administrative Remedies.

2. Quasi-Judicial Power (Adjudicatory Power)

Administrative agencies are granted the authority to hear and decide cases, often in specialized fields. These powers resemble the judicial function of courts but are limited to specific areas regulated by the agency.

• Characteristics of Quasi-Judicial Power:

  • Administrative agencies can issue orders, make findings of fact, and resolve disputes between parties.
  • They have the power to impose administrative sanctions, such as fines, penalties, or suspension of licenses.
  • The proceedings are generally less formal than judicial trials but must still adhere to principles of due process and substantial evidence.

• Essential Elements of Due Process in Administrative Proceedings:

  1. Notice: A party must be informed of the nature and cause of the proceedings.
  2. Hearing: The party must be given an opportunity to present evidence and argue its case.
  3. Impartial Tribunal: The decision-making body must be neutral and free from bias.
  4. Decision based on substantial evidence: The decision must be supported by substantial evidence, not just conjecture or speculation.

• Doctrine of Primary Jurisdiction: If a case requires specialized knowledge or expertise, courts will defer to the administrative agency that has primary jurisdiction over the matter.

• Doctrine of Exhaustion of Administrative Remedies: Parties must exhaust all available remedies within the administrative framework before seeking judicial intervention. Failure to do so generally results in dismissal of the case unless exceptions apply.

• Finality of Administrative Decisions: Administrative decisions may become final and executory unless an appeal is made to a higher administrative authority or the courts within the time specified by law.

3. Executive (Administrative) Power

Administrative agencies are also tasked with the execution and enforcement of laws. This is considered part of the general executive power of the state, delegated to specific agencies.

• Regulatory and Supervisory Functions: Agencies may conduct investigations, inspections, and oversee compliance with laws and regulations. For example, the Securities and Exchange Commission (SEC) or the Department of Labor and Employment (DOLE) exercises regulatory functions over specific industries.

• Enforcement Powers:

  • Administrative agencies can issue orders to ensure compliance with laws or regulations (e.g., cease and desist orders, closure orders).
  • They may also collect fees, impose penalties, revoke licenses, and carry out other sanctions.

• Investigative Powers:

  • Administrative agencies can conduct investigations or inquiries in aid of their rule-making or adjudicatory functions. This power includes summoning witnesses, compelling the production of documents, and conducting hearings.
  • Contempt Power: Administrative agencies have the power to hold individuals in contempt if they refuse to comply with subpoenas or other lawful orders.

Limitations on the Powers of Administrative Agencies

While administrative agencies enjoy a wide range of powers, they are subject to several limitations to ensure that they act within their delegated authority:

• Constitutional Limitations:

  • Actions of administrative agencies must conform to constitutional principles, such as equal protection, due process, and non-delegation of legislative power.
  • Agencies cannot act beyond the scope of their statutory mandate, and their actions must not violate fundamental rights.

• Statutory Limitations:

  • Administrative agencies must comply with their enabling laws and other statutes governing their jurisdiction.
  • Ultra Vires Doctrine: Any act of an agency that exceeds the powers granted to it is ultra vires (beyond its powers) and is invalid.

• Judicial Review:

  • Courts may review the actions of administrative agencies to determine whether they acted within the scope of their authority, whether they committed grave abuse of discretion, or whether their actions were unconstitutional or illegal.

Conclusion

Administrative agencies are vital to the governance and regulation of various sectors in the Philippines. Their powers, which include quasi-legislative, quasi-judicial, and executive functions, allow them to enforce laws, resolve disputes, and create rules and regulations within the limits set by law. However, they are subject to constitutional and statutory constraints to ensure accountability, prevent abuse, and uphold the rule of law.