ADMINISTRATIVE LAW

C. Powers of Administrative Agencies

Administrative agencies in the Philippines play a critical role in governance. They are vested with powers by the Constitution, statutes, and executive orders to carry out specific functions. These agencies act as instruments for the government to effectively implement policies and manage public affairs. Administrative law governs the actions, functions, and powers of these agencies.

In the context of the Philippine legal system, administrative agencies are given quasi-legislative, quasi-judicial, and ministerial powers. Each type of power has its own scope, limitations, and processes.

1. Quasi-Legislative Power (Rule-Making Power)

Quasi-legislative or rule-making power refers to the power of administrative agencies to promulgate rules and regulations that have the force of law. This power allows agencies to fill in the details or gaps left by the legislature when drafting broad or general policies in statutes.

Nature and Scope

Delegated Power: Administrative agencies derive this power from the enabling laws enacted by Congress. This delegation is necessary due to the technical complexities of various fields that require specialized knowledge.
Regulatory Authority: Administrative agencies issue rules to implement laws in a manner consistent with the legislative intent. These rules must not exceed the boundaries of the enabling statute.

Requirements for Validity of Administrative Rules and Regulations

To be valid, the rules and regulations issued by administrative agencies must meet the following conditions:

Within the Scope of Authority: The rule must be in accordance with the law that delegates such rule-making power.
Published: The rule must be published in the Official Gazette or in a newspaper of general circulation, as required by the Administrative Code of 1987 and the Civil Code (Art. 2).
Reasonable and Consistent with the Law: The rules must be reasonable and not arbitrary, and they must adhere to the objectives of the law.

Distinction Between Legislative Rules and Interpretative Rules

Legislative Rules: Have the force of law and are binding on the public. They create new rights or duties or have a significant effect on existing rights.
Interpretative Rules: These are issued to explain or interpret existing laws or rules. They do not have the force of law and are not binding upon the courts, although they may carry persuasive weight.

Judicial Review of Administrative Rules

Courts have the authority to review administrative rules, particularly on the following grounds:

Ultra vires: When the administrative agency acts beyond the powers conferred by the enabling law.
Constitutional Infirmities: When the rule violates any provision of the Constitution.
Unreasonable, Arbitrary, or Capricious Rules: When rules are deemed unreasonable or exceed the scope of the delegated authority.

2. Quasi-Judicial Power (Adjudicatory Power)

Quasi-judicial power refers to the authority of administrative agencies to resolve disputes, hear cases, and make binding decisions affecting rights and duties, similar to a court of law. This adjudicatory function enables administrative agencies to address cases that arise under their specific fields of expertise.

Procedural Requirements

Administrative agencies are required to observe certain due process requirements in the exercise of their quasi-judicial functions. These include:

Notice and Hearing: A party must be given notice of the proceedings and an opportunity to be heard. This is a requirement of administrative due process.
Decision Based on Substantial Evidence: The decision must be based on substantial evidence, which means such relevant evidence that a reasonable mind might accept as adequate to support a conclusion.
Right to Counsel: Parties have the right to counsel, although strict technicalities of court procedures may not be applicable.
Impartiality: The administrative body must be impartial in hearing and deciding cases.

Judicial Review of Quasi-Judicial Decisions

While administrative agencies enjoy a certain degree of independence in rendering decisions, these decisions are subject to judicial review by the regular courts. Grounds for review include:

Grave Abuse of Discretion: When the agency has acted with gross or patent abuse of discretion amounting to lack or excess of jurisdiction.
Lack of Due Process: When the administrative agency fails to comply with the basic requirements of fairness and impartiality.
Errors of Law: When the decision is tainted by a misapplication of legal principles or rules.

The Court of Appeals or the Supreme Court may review administrative decisions via certiorari, appeal, or other appropriate remedies.

Exhaustion of Administrative Remedies

Before a party can seek judicial intervention, the party must first exhaust all available administrative remedies. This doctrine requires a party to allow the administrative agency to correct its own errors before turning to the courts. Exceptions to this rule include:

Futility of Administrative Remedies: When administrative remedies would be useless, for example, if the agency is shown to be biased.
Violation of Due Process: When due process has been denied.
Issues of Purely Legal Questions: When the issue involves purely legal questions that do not require technical expertise.
Patently Illegal Acts: When the administrative action is clearly illegal or void.

3. Ministerial Power

Ministerial power refers to the power of administrative agencies to enforce or implement laws or regulations. This power involves executing specific duties that require no exercise of discretion on the part of the official or agency. The duties performed are purely administrative in nature, and there is no need for subjective judgment or decision-making.

Examples of Ministerial Functions

Issuance of Permits and Licenses: When the applicant has complied with all statutory requirements, the issuance of a license or permit becomes a ministerial duty of the administrative agency.
Registration of Documents: Administrative agencies may be tasked with the ministerial function of registering deeds, contracts, or other public documents, as long as all formalities are met.

Ministerial acts are often subject to mandamus, which is a judicial remedy compelling a public official to perform a ministerial duty when there is no other adequate remedy available.

4. Investigatory Power

Administrative agencies also have investigatory powers to gather facts, inspect, and inquire into matters within their regulatory jurisdiction. Investigations may be conducted for various reasons:

Fact-Finding: To ascertain the existence of violations of law or to determine the necessity of further regulation.
Inspections and Audits: Administrative agencies often conduct audits or inspections to enforce compliance with the law or with regulatory measures.

Subpoena Power

Administrative agencies may issue subpoenas to compel the production of documents or the attendance of witnesses during investigations or hearings. Failure to comply with a subpoena may result in contempt or other legal sanctions.

5. Licensing Power

One of the most common regulatory powers of administrative agencies is the issuance, suspension, and revocation of licenses. Licensing is a form of regulation used to control and monitor professions, businesses, or industries that may affect public safety, health, or welfare.

Grounds for Revocation or Suspension

Licenses may be revoked or suspended on various grounds, including:

Non-compliance with Regulatory Standards: Failure to meet legal or regulatory requirements.
Misrepresentation or Fraud: Providing false information or engaging in fraudulent activities related to the license.
Violation of Public Interest: Actions that endanger public safety, health, or welfare may result in the suspension or revocation of a license.

Due Process in Licensing

The revocation or suspension of licenses must be done in accordance with due process, which includes the right to notice and a hearing before any adverse action is taken against the licensee.

Conclusion

Administrative agencies in the Philippines are critical to the implementation and enforcement of laws and policies, with powers that encompass quasi-legislative, quasi-judicial, ministerial, investigatory, and licensing functions. These powers must be exercised in line with constitutional and statutory requirements, ensuring that due process and fairness are maintained in their actions. Courts provide a check on the exercise of administrative powers through judicial review, ensuring that agencies do not act beyond their legal authority.