APEL 02/20/2021 3.
Kinds/Sources/Scope
A. General Concepts and Principles Sources of Administrative Law
1. Nature, Origin, and Development Administrative law is derived from four sources or is of four
(4) kinds:
Nature
1. Constitution or statutory enactments – e.g. Social Security
Administrative Law – that branch of modern law under
Act which established the Social Security Commission.
which the executive department of the government, acting
in a quasi-legislative or quasi-judicial capacity, interferes 2. Decisions of courts interpreting the charters of
with the conduct of the individual for the purpose of administrative bodies
promoting the well-being of the community.
3. Rules and regulations issued by the administrative bodies
Development – e.g. Omnibus Rules Implementing the Labor Code.
Administrative law is a recent development, being a 4. Determinations and orders of the administrative bodies in
consequence of the ever increasing complexities of society the settlement of controversies
and the proliferation of problems of government that cannot
Classifications:
readily or effectively be addressed by the public agencies or
solved by other disciplines of public law. 1. Internal and External Administration
It was felt that the legislative and judicial departments no 2. Law that Controls and those made by Administrative
longer had either the time or the needed expertise to attend Agencies
to these new problems.
3. Substantive or Procedural Administrative Law
Thus, the obvious solution was delegation of power.
4. General or Special Administrative Law
Two major powers of the administrative agency:
4. Administration
1. Quasi-legislative authority– or rule making power
a. Institution and Function
2. Quasi-judicial power – or adjudicatory function
Institution – administration as the aggregate of
2. Status individuals in whose hands the reins of government
are for the time being.
Ochey
Function – administration as the actual running of the decides factual and sometimes even legal questions as an
government by the executive authorities through the incident of its general power of regulation.
enforcement of laws and implementation of policies.
It is an organ of government, other than a court and the
b. Internal and External legislature, which affects the rights of private parties either
through adjudication or rule making.
5. Distinguished from Law
2. Creation, Establishment, and Abolition
Law is impersonal command provided with sanctions to be
applied in case of violation, while Administration is Creation & Establishment
preventive rather punitive and is accepted to be more
The administrative body may be created by:
personal than law
- Constitutional provision
Law maintains a watchful eye on those who would violate its
- Authority of law
order. While administration on the other hand seeks to spare
- Legislative enactment (i.e. Articles of incorporation
individuals from punishments of the law by persuading him
by AA; Resolution of LGUs)
to observe its commands.
Abolition
----------------------------------------------------------------------------
- If created by the Constitution itself, the
B. Administrative Agencies
administrative body can be altered or abolished only
1. Nature and Definition by Constitution.
- If the body was created only by statute, the
Administrative agency – a body endowed with quasi-
legislature that breathed life into it can amend or
legislative and quasi-judicial powers for the purpose of
even repeal its charter, thereby resulting in its
enabling it to carry out the laws entrusted to it for
abolition which is justified if made in good faith.
enforcement or execution.
3. Kinds
Administrative agency may be regarded as an arm of the
legislature insofar as it is authorize to promulgate rules. a. Bodies set up to function in situations where the
government is offering some gratuity, grant, or special
It may also be loosely considered a court because it performs
privilege (e.g. Bureau of Lands);
functions of a particular judicial character, as when it
Ochey
b. Bodies set up to function in situations where the Sec. 2. Administrative Code
government is seeking to carry on actual businesses of the
(1) "Government of the Republic of the Philippines" refers to
government (e.g. BIR);
the corporate governmental entity through which the
c. Bodies set up to function in situations where the functions of government are exercised throughout the
government is performing some business service to the Philippines, including, save as the contrary appears from the
public (e.g. MWSS); context, the various arms through which political authority
is made effective in the Philippines, whether pertaining to
d. Bodies set up to function in situations where the
the autonomous regions, the provincial, city, municipal or
government is seeking to regulate businesses affected with
barangay subdivisions or other forms of local government.
public interest (e.g. LTFRB);
(2) "National Government" refers to the entire machinery of
e. Bodies set up to function in situations where the
the central government, as distinguished from the different
government is seeking under police power to regulate
forms of local governments.
private businesses and individuals (e.g. SEC);
(3) "Local Government" refers to the political subdivisions
f. Bodies set up to function in situations where the
established by or in accordance with the Constitution.
government is seeking to adjust individual controversies
because of a strong social policy involved (e.g. ECC); (4) "Agency of the Government" refers to any of the various
units of the Government, including a department, bureau,
g. Bodies set up to make the government a private party (e.g.
office, instrumentality, or government-owned or controlled
GSIS).
corporations, or a local government or a distinct unit
4. Advantages therein.
• Help unclog court dockets (5) "National agency" refers to a unit of the National
• Meet the growing complexities of modern society Government.
• Help in the regulation of ramified activities of a (6) "Local agency" refers to a local government or a distinct
developing country unit therein.
• Entrust to specialized agencies the task of dealing with
problems as they have the experience, expertise, and (7) "Department" refers to an executive department created
power of dispatch to provide solution thereto by law. For purposes of Book IV, this shall include any
instrumentality, as herein defined, having or assigned the
rank of a department, regardless of its name or designation.
Ochey
(8) "Bureau" refers to any principal subdivision or unit of objectives. This term includes the state universities and
any department. For purposes of Book IV, this shall include colleges and the monetary authority of the State.
any principal subdivision or unit of any instrumentality
(13) "Government-owned or controlled corporation" refers to
given or assigned the rank of a bureau, regardless of actual
any agency organized as a stock or non-stock corporation,
name or designation, as in the case of department-wide
vested with functions relating to public needs whether
regional offices.
governmental or proprietary in nature, and owned by the
(9) "Office" refers, within the framework of governmental Government directly or through its instrumentalities either
organization, to any major functional unit of a department or wholly, or, where applicable as in the case of stock
bureau including regional offices. It may also refer to any corporations, to the extent of at least fifty-one (51) per cent
position held or occupied by individual persons, whose of its capital stock: Provided, That government-owned or
functions are defined by law or regulation. controlled corporations may be further categorized by the
Department of the Budget, the Civil Service Commission, and
(10) "Instrumentality" refers to any agency of the National
the Commission on Audit for purposes of the exercise and
Government, not integrated within the department
discharge of their respective powers, functions and
framework vested within special functions or jurisdiction by
responsibilities with respect to such corporations.
law, endowed with some if not all corporate powers,
administering special funds, and enjoying operational (14) "Officer" as distinguished from "clerk" or "employee",
autonomy, usually through a charter. This term includes refers to a person whose duties, not being of a clerical or
regulatory agencies, chartered institutions and government- manual nature, involves the exercise of discretion in the
owned or controlled corporations. performance of the functions of the government. When used
with reference to a person having authority to do a
(11) "Regulatory agency" refers to any agency expressly
particular act or perform a particular function in the exercise
vested with jurisdiction to regulate, administer or adjudicate
of governmental power, "officer" includes any government
matters affecting substantial rights and interests of private
employee, agent or body having authority to do the act or
persons, the principal powers of which are exercised by a
exercise that function.
collective body, such as a commission, board or council.
(15) "Employee", when used with reference to a person in
(12) "Chartered institution" refers to any agency organized
the public service, includes any person in the service of the
or operating under a special charter, and vested by law with
government or any of its agencies, divisions, subdivisions or
functions relating to specific constitutional policies or
instrumentalities.
Ochey
Sec. 3 GOCC Governance Act (n) Government Instrumentalities with Corporate Powers
(GICP)/Government Corporate Entities (GCE) refer to
(a) Affiliate refers to a corporation fifty percent (50%) or
instrumentahties or agencies of the government, which are
less of the outstanding capital stock of which is owned or
neither corporations nor agencies integrated within the
controlled, directly or indirectly, by the GOCC.
departmental framework, but vested by law with special
(f) Chartered GOCC refers to a GOCC, including Government functions or jurisdiction, endowed with some if not all
Financial Institutions, created and vested with functions by corporate powers, administering special funds, and enjoying
a special law. operational autonomy usually through a charter including,
but not limited to, the following: the Manila International
(h) Department refers to an executive department created
Airport Authority (MIAA), the Philippine Ports Authority
by law. This shall include any instrumentality having or
(PPA), the Philippine Deposit Insurance Corporation (PDIC),
assigned the rank of a department, regardless of its name or
the Metropolitan Waterworks and Sewerage System
designation.
(MWSS), the Laguna Lake Development Authority (LLDA),
(k) Government Agency refers to any of the various units of the Philippine Fisheries Development Authority (PFDA), the
the Government of the Republic of the Philippines, including Bases Conversion and Development Authority (BCDA), the
a department, bureau, office, instrumentality or GOCC, or a Cebu Port Authority (CPA), the Cagayan de Orb Port
local government or a distinct unit therein. Authority, the San Fernando Port Authority, the Local Water
Utilities Administration (LWUA) and the Asian Productivity
(m) Government Financial Institutions (GFIs) refer to Organization (APO).
financial institutions or corporations in which the
government directly or indirectly owns majority of the (o) Government-Owned or -Controlled Corporation
capital stock and. which are either: (GOCC) refers to any agency organized as a stock or nonstock
corporation, vested with functions relating to public needs
(1) registered with or directly supervised by the whether governmental or proprietary in nature, and owned
Bangko Sentral ng Pilipinas; or by the Government of the Republic of the Philippines
(2) collecting or transacting funds or contributions directly or through its instrumentahties either wholly or,
from the public and places them in financial where applicable as in the case of stock corporations, to the
instruments or assets such as deposits, loans, bonds extent of at least a majority of its outstanding capital
and equity including, but not limited to, the stock: Provided, however, That for purposes of this Act, the
Government Service Insurance System and the Social term “GOCC”- shall include GICP/GCE and GFI as defined
Security System. herein.
Ochey
(p) Nonchartered GOCC refers to a GOCC organized and Book IV, Chapter 7, Section 38, Administrative Code
operating under Batas Pambansa Bilang 68, or “The
(1) Supervision and Control.— Supervision and control shall
Corporation Code of the Philippines”.
include authority to act directly whenever a specific function
(w) Related Corporation refers to a subsidiary or affiliate of is entrusted by law or regulation to a subordinate; direct the
a GOCC. performance of duty; restrain the commission of acts;
review, approve, reverse or modify acts and decisions of
(z) Subsidiary refers to a corporation where at least a
subordinate officials or units; determine priorities in the
majority of the outstanding capital stock is owned or
execution of plans and programs; and prescribe standards,
controlled, directly or indirectly, through one or more
guidelines, plans and programs. Unless a different meaning
intermediaries, by the GOCC.
is explicitly provided in the specific law governing the
---------------------------------------------------------------------------- relationship of particular agencies, the word “control” shall
encompass supervision and control as defined in this
C. Administrative Relationships
paragraph.
Areas: policies, operations, budget, decisions, dayto-day,
(2) Administrative Supervision.—
policy and program coordination
(a) Administrative supervision which shall govern the
1. Supervision and Control
administrative relationship between a department or its
(substitute judgment; rules on how to execute act; alter-ego; equivalent and regulatory agencies or other agencies as may
e.g. President and DOTC) be provided by law, shall be limited to the authority of the
department or its equivalent to generally oversee the
2. Administrative Supervision operations of such agencies and to insure that they are
(oversight, reports, proper performance; not over managed effectively, efficiently and economically but
appointments and contracts, not reverse decisions; e.g. without interference with day-to-day activities; or require
Department and Regulatory Agencies; Province and the submission of reports and cause the conduct of
Component City/ Municipality) management audit, performance evaluation and inspection
to determine compliance with policies, standards and
3. Attachment guidelines of the department; to take such action as may be
(sit in Board; reporting; not day-to-day; e.g. DPWH and necessary for the proper performance of official functions,
MWSS) including rectification of violations, abuses and other forms
of maladministration; and to review and pass upon budget
Ochey
proposals of such agencies but may not increase or add to agency comply with a system of periodic reporting which
them; shall reflect the progress of programs and projects; and
having the department or its equivalent provide general
(b) Such authority shall not, however, extend to: (1)
policies through its representative in the board, which shall
appointments and other personnel actions in accordance
serve as the framework for the internal policies of the
with the decentralization of personnel functions under the
attached corporation or agency;
Code, except when appeal is made from an action of the
appointing authority, in which case the appeal shall be (b) Matters of day-to-day administration or all those
initially sent to the department or its equivalent, subject to pertaining to internal operations shall be left to the
appeal in accordance with law; (2) contracts entered into by discretion or judgment of the executive officer of the agency
the agency in the pursuit of its objectives, the review of or corporation. In the event that the Secretary and the head
which and other procedures related thereto shall be of the board or the attached agency or corporation strongly
governed by appropriate laws, rules and regulations; and (3) disagree on the interpretation and application of policies,
the power to review, reverse, revise, or modify the decisions and the Secretary is unable to resolve the disagreement, he
of regulatory agencies in the exercise of their regulatory or shall bring the matter to the President for resolution and
quasi-judicial functions; and direction;
(c) Unless a different meaning is explicitly provided in the (c) Government-owned or controlled corporations attached
specific law governing the relationship of particular to a department shall submit to the Secretary concerned
agencies, the word “supervision” shall encompass their audited financial statements within sixty (60) days
administrative supervision as defined in this paragraph. after the close of the fiscal year; and
(3) Attachment.— (d) Pending submission of the required financial statements,
the corporation shall continue to operate on the basis of the
(a) This refers to the lateral relationship between the
preceding year’s budget until the financial statements shall
department or its equivalent and the attached agency or
have been submitted. Should any government-owned or
corporation for purposes of policy and program
controlled corporation incur an operating deficit at the close
coordination. The coordination may be accomplished by
of its fiscal year, it shall be subject to administrative
having the department represented in the governing board
supervision of the department; and the corporation’s
of the attached agency or corporation, either as chairman or
operating and capital budget shall be subject to the
as a member, with or without voting rights, if this is
department’s examination, review, modification and
permitted by the charter; having the attached corporation or
approval
Ochey
Book IV, Chapter 9, Sections 42-43, Administrative Code department as may be convenient and economical for their
operations
SECTION 42. Government-Owned or Controlled
Corporations.— ----------------------------------------------------------------------------
Government-owned or controlled corporations shall be D. Powers of the President
attached to the appropriate department with which they
1. Power of Control
have allied functions, as hereinafter provided, or as may be
provided by executive order, for policy and program i. Article VII, Section 17, 1987 Constitution
coordination and for general supervision provided in
Section 17. The President shall have control of all the
pertinent provisions of this Code.
executive departments, bureaus, and offices. He shall ensure
In order to fully protect the interests of the government in that the laws be faithfully executed.
government-owned or controlled corporations, at least one-
ii. Book III, Chapter 1, Section 1, Administrative Code
third (1/3) of the members of the Boards of such
corporations should either be a Secretary, or SECTION 1. Power of Control.— The President shall have
Undersecretary, or Assistant Secretary. control of all the executive departments, bureaus, and
offices. He shall ensure that the laws be faithfully executed.
SECTION 43. Regulatory Agencies.—
2. Power to Create Public Office and Reorganize
(1) A regulatory agency shall be subject to the
administrative supervision of the department under which ii. Book III, Chapter 10, Section 31, Administrative Code
they are placed, except when they are government
corporations in which case they shall be governed by the SECTION 31. Continuing Authority of the President to
provisions of the preceding section; Reorganize his Office.—The President, subject to the policy
in the Executive Office and in order to achieve simplicity,
(2) The heads of regulatory agencies shall submit annually, economy and efficiency, shall have continuing authority to
for the approval of the Secretary concerned, their budgets reorganize the administrative structure of the Office of the
and work plans which shall be the basis of their day-to-day President. For this purpose, he may take any of the following
operations; and actions:
(3) The regulatory agencies may avail themselves of the (1) Restructure the internal organization of the Office of the
common auxiliary and management services of the President Proper, including the immediate Offices, the
Presidential Special Assistants/Advisers System and the
Ochey
Common Staff Support System, by abolishing, consolidating
or merging units thereof or transferring functions from one
unit to another;
(2) Transfer any function under the Office of the President
to any other Department or Agency as well as transfer
functions to the Office of the President from other
Departments and Agencies; and
(3) Transfer any agency under the Office of the President to
any other department or agency as well as transfer agencies
to the Office of the President from other departments or
agencies.
Ochey
