Quasi-Legislative or Rule-Making Power | Powers of Administrative Agencies | ADMINISTRATIVE LAW

Quasi-Legislative or Rule-Making Power of Administrative Agencies

In the realm of administrative law, quasi-legislative or rule-making power is one of the essential functions exercised by administrative agencies. It refers to the authority delegated to administrative bodies by the legislature to create rules and regulations that have the force and effect of law.

Legal Basis and Delegation of Rule-Making Power

Under the Philippine Constitution, the legislative power is vested in Congress. However, administrative agencies are delegated quasi-legislative powers to fill in the details and implement the laws passed by Congress. The delegation of this rule-making power is founded on the principle that Congress cannot foresee every detailed situation that may arise and must rely on specialized administrative agencies to formulate specific rules to implement the law. This delegation of power is considered constitutional as long as it meets the following two requirements:

1. Completeness Test – The law must be complete in itself, setting forth the policy to be executed by the administrative agency.
2. Sufficient Standard Test – The law must provide adequate guidelines or standards that limit the agency's discretion in exercising its rule-making power.

Relevant case law:

• Pelaez v. Auditor General, 15 SCRA 569 (1965) – The Supreme Court invalidated a delegation of legislative power that did not meet the requirements of completeness and adequate standards.
• Abakada Guro Partylist v. Ermita, 469 SCRA 1 (2005) – Reiterated the importance of providing sufficient standards in the delegation of legislative power.

Nature and Characteristics of Quasi-Legislative Power

1. Delegated Power: The rule-making authority is always derived from a legislative act. Without a valid delegation of power, an administrative agency cannot issue any rules or regulations.

2. Subordinate Legislation: Rules and regulations issued by administrative agencies are subordinate to the statute they seek to implement. They must conform to the statute's purpose, intent, and language. If an agency oversteps its bounds or contradicts the law, its rules are deemed invalid.

3. Binding Effect: Administrative rules, when properly promulgated under the legislative delegation, have the force and effect of law. These rules bind both the public and the government in the same manner as statutory law.

4. Discretionary Power: The power to issue rules and regulations is a discretionary one. Courts will generally not interfere with an agency's discretion as long as the agency does not act beyond its authority or in a manner that is arbitrary or capricious.

Types of Rules Issued Under Quasi-Legislative Power

1. Substantive Rules: These are rules that affect the rights of individuals and have the force of law. They provide specific standards and obligations that the law itself may not cover in detail.

2. Interpretative Rules: These rules interpret the provisions of a law, providing the agency's understanding or explanation of ambiguous statutory provisions. While these do not have the same binding effect as substantive rules, they may be persuasive, especially if the agency has expertise in the subject matter.

3. Procedural Rules: These are rules that outline the processes and procedures that individuals and entities must follow in dealing with the administrative agency. Procedural rules must comply with the Administrative Code of 1987 or other relevant laws.

Rule-Making Process

The issuance of rules by an administrative agency typically follows a process set forth under the Administrative Code of 1987 or special statutes creating the agency. The process includes:

1. Notice: The public is generally entitled to notice of proposed rule-making. This is to ensure transparency and provide stakeholders the opportunity to participate.

2. Public Participation: Interested parties may submit their comments or attend hearings on the proposed rules. Public participation is essential in ensuring that the rules are fair, reasonable, and consistent with the law.

3. Publication: Once rules are finalized, they must be published in a manner prescribed by law. Publication is a condition for their enforceability. Under the Civil Code of the Philippines, laws (including administrative rules) take effect 15 days following their publication, unless otherwise specified.

4. Legislative Oversight: Congress may exercise its oversight function to review the rules issued by administrative agencies. It can revoke or amend the authority of the administrative agency if the rules are deemed inconsistent with legislative intent.

Limitations on Quasi-Legislative Power

1. Conformity to Law: Administrative agencies cannot issue rules that expand, modify, or amend the statute they are tasked to implement. The rules must conform to the law’s language, purpose, and scope. Any deviation from the law may render the rule invalid.

   • People v. Maceren, 79 SCRA 450 (1977) – The Supreme Court struck down rules that went beyond the authority granted by the enabling statute.

2. Non-Delegation Doctrine: The power to make laws is inherently legislative and cannot be delegated to an administrative agency except through specific delegation. Therefore, the agency must strictly adhere to the scope of authority granted by the legislature.

3. Constitutional Limitations: Administrative rules must not violate constitutional provisions such as the due process clause, equal protection clause, or non-delegation of legislative power.

4. Judicial Review: Courts have the power to review the validity of administrative rules. A rule may be declared invalid if it is:

   • Ultra vires (beyond the agency’s authority);
   • Arbitrary or unreasonable;
   • Inconsistent with the law it seeks to implement; or
   • Violative of constitutional rights.

   Case law:

   • Central Bank of the Philippines v. CA, 139 SCRA 46 (1985) – The Supreme Court held that rules and regulations cannot modify or supplant the law they are supposed to implement.

Case Examples

1. Commissioner of Internal Revenue v. Fortune Tobacco Corp., 559 SCRA 160 (2008) – The Supreme Court held that the Commissioner of Internal Revenue cannot issue a revenue regulation that imposes additional tax not found in the Tax Code, as this would constitute an invalid exercise of legislative power.

2. Tatad v. Garcia, 243 SCRA 436 (1995) – The Court invalidated a DOTC administrative order that violated the principle of due process and overstepped the bounds of the enabling law.

3. Lina, Jr. v. Carino, 363 SCRA 183 (2001) – The Court struck down a rule promulgated by the Department of Agrarian Reform (DAR) that effectively amended the Comprehensive Agrarian Reform Law, emphasizing that an administrative agency's power is confined to implementing—not altering—the law.

Conclusion

The quasi-legislative or rule-making power of administrative agencies is a critical function that enables the detailed implementation of laws. While administrative agencies possess the expertise to craft specific regulations, their rule-making power is circumscribed by the limits set by Congress and the Constitution. Any rule promulgated must not only comply with the legislative intent but also respect constitutional principles and due process. This careful balance ensures that the quasi-legislative power remains a vital yet controlled aspect of governance in the Philippines.

Requisites for Validity | Quasi-Legislative or Rule-Making Power | Powers of Administrative Agencies | ADMINISTRATIVE LAW

Quasi-Legislative or Rule-Making Power of Administrative Agencies: Requisites for Validity

In administrative law, the quasi-legislative power, also known as the rule-making power, is one of the inherent functions of administrative agencies. This power enables them to promulgate rules and regulations to implement or interpret statutes or carry out the objectives of laws. These rules have the force and effect of law, provided they meet certain requisites for validity.

Requisites for Validity of Administrative Rules and Regulations

For rules and regulations issued by administrative agencies to be considered valid and enforceable, they must meet the following essential requisites:

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1. The Rule Must Be Within the Scope of Authority Delegated by Law

Administrative agencies derive their power to issue rules and regulations from enabling statutes. The following conditions must be met:

• Express Delegation: The enabling law must expressly delegate the power to the administrative agency to promulgate rules and regulations.
• Within Scope of Authority: The rules and regulations must be consistent with and fall within the scope of authority granted by the enabling law. They should not go beyond or conflict with the legislative intent.

This means the agency cannot issue rules and regulations on matters that exceed its powers as delegated by law. Any rules issued outside of this scope are considered ultra vires (beyond authority) and are invalid.

Case Example: In People v. Maceren (1977), the Supreme Court struck down a rule issued by the Fisheries Commissioner, ruling that it was beyond the authority delegated to the agency under the Fisheries Law.

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2. The Rule Must Be Promulgated in Accordance with the Procedure Prescribed by Law

For administrative rules to be valid, they must follow the proper procedural requirements as mandated by law. This includes:

• Publication: Rules must be published in the Official Gazette or in a newspaper of general circulation. This is in accordance with Executive Order No. 200 (1987), which states that laws and rules must be published before they take effect.

  Case Example:
  In Tañada v. Tuvera (1986), the Supreme Court held that laws and administrative rules, to be effective, must be published as a means of ensuring public knowledge.

• Notice and Hearing (if required): While not all rules require a prior hearing, substantive rules that impose penalties or affect rights may require notice and the opportunity for affected parties to be heard. However, interpretative rules, which merely clarify the meaning of a statute, typically do not require a hearing.

  Administrative Code of 1987: Section 9 of the Administrative Code provides that every rule-making process involving substantive rules must involve prior notice and public participation, especially when the rule may adversely affect individuals.

• Filing: In certain cases, the rules must be filed with the University of the Philippines Law Center, as required by the Administrative Code.

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3. The Rule Must Be Reasonable and Not Arbitrary or Oppressive

Rules and regulations must pass the test of reasonableness. This means that they must be rationally related to the purpose of the law and must not be arbitrary, capricious, or oppressive. They must not impose an undue burden on those affected or be disproportionate to the goal they intend to achieve.

• Substantial Compliance: The regulations must substantially comply with the purposes for which they were enacted. They should be fair, not oppressive, and within reasonable limits.

  Case Example:
  In Paat v. Court of Appeals (1997), the Supreme Court struck down an administrative regulation that excessively burdened citizens by requiring multiple permits for the same activity, stating that it was unreasonable and violated the principle of simplicity in regulation.

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4. The Rule Must Not Contradict the Law

Administrative regulations are meant to interpret or implement the law, and as such, they cannot conflict with the law they are meant to enforce. This includes the Constitution, statutes, and judicial decisions.

• Consistency with Law: The rule must not modify, amend, or be inconsistent with the statute it implements. If there is a conflict between the rule and the statute, the statute prevails.

  Case Example:
  In Commissioner of Internal Revenue v. Court of Appeals (1996), a revenue regulation issued by the Bureau of Internal Revenue was declared invalid for being inconsistent with the National Internal Revenue Code.

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5. The Rule Must Be Clear and Definite

For a rule or regulation to be valid, it must be clear, definite, and understandable. Vague rules can lead to confusion and arbitrary enforcement, violating due process rights.

• Doctrine of Void-for-Vagueness: If a rule is so vague that persons of common intelligence must guess at its meaning and differ in its application, it may be declared void for vagueness. Rules must be sufficiently precise to provide fair notice of what is required or prohibited.

  Case Example:
  In Estrada v. Sandiganbayan (2001), the Supreme Court applied the doctrine of void-for-vagueness when it found that certain provisions of the Anti-Plunder Law were so unclear that they failed to provide adequate notice of the conduct that was being prohibited.

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6. The Rule Must Serve the Public Interest

Administrative rules must promote the public good or welfare. This requisite is aligned with the general welfare clause, which mandates that government actions, including administrative rules, should be in the public interest and not merely serve a select group or private interests.

• Public Welfare: The rule must serve a legitimate public interest and should not only protect private or narrow interests. The regulation must benefit the common good.

  Case Example:
  In Agustin v. Edu (1979), a Land Transportation Commission regulation requiring motor vehicles to have early warning devices was upheld because it promoted public safety, which served the general welfare.

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Classification of Administrative Rules

While understanding the requisites for validity, it is important to distinguish between substantive rules and interpretative rules:

• Substantive Rules: These are rules that create, modify, or affect a legal right. These rules are subject to the full range of procedural requirements (e.g., notice and hearing).

• Interpretative Rules: These clarify or explain existing statutes. These are generally not required to undergo the notice and hearing process because they do not impose new obligations but merely explain the existing ones.

• Legislative Rules: These have the force and effect of law. They usually require compliance with the procedural due process requisites, such as publication and public participation.

• Internal Regulations: These are meant for the internal administration of an agency and usually do not require publication or compliance with procedural due process rules.

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Judicial Review of Administrative Rules

The validity of administrative rules and regulations is subject to judicial review. Courts can declare a rule invalid if it fails to meet any of the requisites for validity, particularly if:

• It is ultra vires (beyond the powers granted by law);
• It is unreasonable or oppressive;
• It was issued without proper observance of procedural requirements;
• It contradicts the law or the Constitution; or
• It is vague and unclear.

Courts generally accord administrative agencies some level of deference in the interpretation of their enabling statutes. However, this deference is not absolute, and courts will scrutinize administrative rules closely when they affect substantive rights or involve constitutional issues.

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Conclusion

The exercise of quasi-legislative or rule-making power by administrative agencies is essential to the implementation of laws. However, to ensure that this power is exercised in a manner consistent with legal principles and public interest, administrative rules and regulations must meet the requisites for validity, which include authority, procedure, reasonableness, consistency with law, clarity, and public interest. Failure to comply with any of these requisites may render the rules invalid and subject to judicial challenge.

Kinds of Administrative Rules and Regulations | Quasi-Legislative or Rule-Making Power | Powers of Administrative Agencies | ADMINISTRATIVE LAW

POLITICAL LAW AND PUBLIC INTERNATIONAL LAW
XIII. ADMINISTRATIVE LAW
C. Powers of Administrative Agencies
1. Quasi-Legislative or Rule-Making Power
a. Kinds of Administrative Rules and Regulations

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Administrative agencies in the Philippines possess powers and duties primarily delegated to them by statutes. Among these powers is the quasi-legislative function or rule-making power. This allows agencies to issue rules and regulations that have the force and effect of law, provided they are within the bounds of the authority granted to them by the enabling statute.

1. Quasi-Legislative or Rule-Making Power

Quasi-legislative power is the authority delegated to administrative agencies to promulgate rules and regulations necessary to implement the law. This is essential for the proper functioning of agencies because it allows them to fill in the details and operationalize legislative intent.

Rule-making is necessary for administrative bodies to perform their functions effectively because statutes enacted by Congress are often broad and general. Administrative rules supplement these statutes by providing the specifics necessary for implementation.

Administrative rules have the same binding force as laws enacted by Congress if they meet the following requisites:

1. The rule must be within the scope of the statutory authority conferred upon the administrative agency – It cannot go beyond the law it seeks to implement.
2. It must be reasonable and consistent with the law – Rules cannot be arbitrary or capricious, and they must uphold the purposes and objectives of the enabling statute.
3. Due process in the promulgation of rules must be observed – This includes public notice and hearing when necessary.

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2. Kinds of Administrative Rules and Regulations

There are several types of administrative rules and regulations that agencies can issue, depending on their nature, scope, and effect. These can be categorized into the following:

a. Legislative Rules (Substantive Rules)

Legislative rules are issued by administrative agencies pursuant to the delegation of legislative power. These rules have the force and effect of law because they are intended to implement, enforce, or interpret the law.

Characteristics:

• They bind the public and the government.
• These rules are enforceable in the same way as a statute.
• They usually require notice and public hearing prior to promulgation (in accordance with the Administrative Code or statutes such as the Administrative Procedure Act).
• Example: The implementing rules and regulations (IRRs) of statutes issued by government agencies.

b. Interpretative Rules

Interpretative rules are issued by an administrative agency to clarify or interpret the provisions of a statute without adding any new provisions. Unlike legislative rules, interpretative rules do not have the force of law. Instead, they provide guidance on how the agency understands or applies the law.

Characteristics:

• No need for notice and hearing in their promulgation.
• These rules merely state what the agency believes the law means or how it applies.
• They are not binding on the courts, although they may be given persuasive effect.

Example: Circulars or advisory opinions issued by the Bureau of Internal Revenue (BIR) to clarify provisions of the Tax Code.

c. Procedural Rules

Procedural rules are issued by administrative agencies to regulate the internal procedures or the process by which agencies conduct their affairs, including how they handle administrative cases.

Characteristics:

• These rules govern the agency’s methods of operation or decision-making process.
• They do not affect the substantive rights of the parties.
• Procedural rules are generally binding and enforceable as long as they are reasonable and consistent with due process.

Example: Rules of procedure issued by the Civil Service Commission (CSC) in handling administrative complaints against government employees.

d. Informal or Non-Legislative Rules

These are rules or guidelines issued by administrative agencies that do not have the force and effect of law. They include memoranda, bulletins, and press releases, which are used to inform the public or guide the agency’s employees but are not binding.

Characteristics:

• These are not strictly enforceable against the public.
• They are often used for internal guidance within the agency or for educational purposes.

Example: Memoranda from the Department of Health (DOH) advising hospitals on best practices for public health.

e. Hybrid Rules

Hybrid rules combine both legislative and interpretative functions. These rules, while not having the full force of law, may be used to fill gaps in the statutory framework and to clarify specific statutory provisions. They occupy a middle ground between legislative and interpretative rules.

Example: Guidelines issued by the Commission on Elections (COMELEC) to implement portions of the Omnibus Election Code that require interpretation.

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3. Limits on Quasi-Legislative Power

The rule-making power of administrative agencies is not unlimited. Several legal doctrines and principles control the exercise of quasi-legislative authority:

a. Doctrine of Subordinate Legislation

Administrative agencies cannot enact rules that go beyond the scope of the legislative mandate. The rule-making power is always subordinate to the statute, and rules must be confined to what the law allows. Agencies must avoid ultra vires (beyond the powers) regulations.

b. Non-Delegation Doctrine

While Congress may delegate rule-making authority to administrative agencies, this delegation must be done with clear standards to guide the agency. The law delegating the authority must specify the scope and limits of the power delegated. Otherwise, it may violate the non-delegation doctrine enshrined in the Constitution.

c. Due Process

The issuance of administrative rules, especially those that affect the rights of individuals or entities, must comply with procedural due process. The Administrative Code of 1987 and the Administrative Procedure Act (R.A. No. 386) prescribe the procedures that must be followed for valid rule-making, including the publication of proposed rules, providing an opportunity for comment, and holding public hearings when necessary.

d. Judicial Review of Rules and Regulations

Administrative rules are subject to judicial review. Courts can invalidate administrative rules if they are found to be:

• Unconstitutional – Rules must comply with the provisions of the Constitution.
• Ultra Vires – Rules that exceed the scope of the authority granted by the enabling statute will be struck down.
• Arbitrary or Capricious – Rules that are not based on substantial evidence, are unreasonable, or are promulgated without adequate justification can be invalidated.

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4. Conclusion

The rule-making power of administrative agencies, a vital part of the Philippine administrative law system, ensures the effective implementation of laws enacted by Congress. By issuing rules and regulations, administrative agencies provide detailed frameworks that are necessary for the proper operation of government policies. However, this power is carefully circumscribed by legal principles that ensure that agencies act within the bounds of their statutory mandates and respect the rights of individuals and entities. Quasi-legislative authority must always align with legislative intent, constitutional norms, and the principles of fairness and due process.