Agpalo Book, pages 62 – 90

V. DELEGATION OF LEGISLATIVE POWER

- refers to the grant of authority by the legislature to administrative agencies to issue rules
and regulations concerning how the law entrusted to them for implementation may be enforced
Power of Subordinate Legislation
- To entrust to administrative agencies the authority to issue rules to carry out the general
provisions of the statute
- With this power, administrative bodies may implement the broad policies laid down in a
statute by "filling in" the details which the Congress may not have the opportunity or competence to
provide.
A. Reasons for the delegation of legislative power
The reason is the increasing complexity of the task of government and the growing inability
of the legislature to cope directly with the myriad problems demanding its attention.
Case: Eastern Shipping Lines vs. POEA
B. What may be delegated
-The discretion as to how the law shall be enforced
-To issue rules to fill in details
-To ascertain facts on which the law will operate
-To exercise police power
-To fix rates
C. What cannot be delegated
Those which are purely legislative in nature:
-making, altering, and repealing of a law
-the determination of legislative policies and objectives to be achieved
-the formulation and promulgation of a defined and binding rule of conduct

G.R. No. L-23825 Pelaez vs. Auditor General

• Section 10 (1) of Article VII of our fundamental law ordains:
• The President shall have control of all the executive departments, bureaus, or
offices, exercise general supervision over all local governments as may be provided
by law, and take care that the laws be faithfully executed.
• This power is denied by the Constitution to the Executive, insofar as local governments are
concerned. With respect to the latter, the fundamental law permits him to wield no more
authority than that of checking whether said local governments or the officers thereof
perform their duties as provided by statutory enactments.
• Hence, the President cannot interfere with local governments, so long as the same or its
officers act within the scope of their authority. He may not enact an ordinance which the
municipal council has failed or refused to pass, even if it had thereby violated a duty
imposed thereto by law, although he may see to it that the corresponding provincial officials
take appropriate disciplinary action therefor.

D. Tests to determine validity of delegation

G.R. no. 85061 Eastern Shipping Lines vs. POEA
• Power of Subordinate Legislation
• To entrust to administrative agencies the authority to issue rules to carry out the
general provisions of the statute
 • With this power, administrative bodies may implement the broad policies laid down
in a statute by "filling in" the details which the Congress may not have the
opportunity or competence to provide.

a. Completeness Test
-The law must be complete in all its terms and conditions when it
leaves the legislature such that when it reaches the delegate the
only thing he will have to do is enforce it. (People v. Vera, 65 Phil.
56.)
-A statue may be complete when the subject, the manner, and the
extent of its operations are stated in it.
-The test of completeness is whether the provision is sufficiently definite and certain
to know his rights and obligations; whether it describes what it must be done, who
must do it, and the scope of his authority.
b. Sufficient Standard Test
There must be adequate guidelines or limitations in the law to
map out the boundaries of the delegate's authority and prevent
the delegation from running riot. (Cervantes v. Auditor General,
91 Phil. 359; People v. Rosenthal, 68 Phil. 328)
Standard
-must be reasonably adequate, sufficient, and definite for the
guidance of administrative agency in the exercise of the power
conferred upon it and must also be sufficient to enable those
affected to know their rights and obligations.
i. When standard sufficient
1. No uniform application of standards
a. Fair and equitable employment practices
b. Public interest
c. Justice and equity
d. Public convenience and welfare
e. Simplicity, economy and efficiency
2. Standard fixed cannot be enlarged nor restricted
a. Where the law sets the standards by which the delegate
may exercise delegated power, the executive or
administrative agency concerned cannot add thereto and
justify the exercise of the delegated power on the basis of
all such enlarged standards.
ii. When standard insufficient
1. A statute which prescribes no or inadequate standard for the
exercise of a delegated legislative power and the rules issued by an
administrative agency to implement the law are null and void.
E. Usual issues in validity of delegation
a. Against the delegating statute itself
i. WON the requisites of valid delegation are present:
1. Completeness of the statute making the delegation
2. Presence of a sufficient standard
b. Against the exercise of the delegated power
 i. WON the rule or regulation conforms with what the statute provides and
whether the same is reasonable
c. Rules or regulations, generally –
i. Validity of rules and regulations
1. Must be germane to the objects and purposes of the law;
2. Conform to the standards that the law prescribes;
3. Must be reasonable
4. Must be related solely to carrying into effect the general provisions
of the law
ii. Regulations cannot restrict nor enlarge the law
iii. Rules constituting an offense – AA have the authority to issue administrative
regulations which are penal in nature where the law itself makes the
violation of the admin. Regulation punishable and provides for its penalty;
when it does not provide that the violation of such rules shall be unlawful
and punishable, or even if it does, it does not prescribe the penalty for such
violation, the AA tasked to execute the law has no power to penalize
violation of its rules and regulations.
iv. When rules take effect –
1. Publication – Sec 2, NCC; Sec 18, Book I, 1987 Admin.Code - 15 days
after it publication in the O.G., or newspaper of general circulation,
unless otherwise provided. PUBLICATION is essential for its
effectivity, purpose is to inform the public of its contents
2. Filing – Sec 3, Book VII, 1987 Admin.Code
F. Delegation to ascertain facts – basis to determine upon which the law may take effect or its
operation suspended must provide the standard, fix the limits within which the discretion
may be exercised and define the conditions therefor.
G. Prohibition against re-delegation; exceptions
a. Doctrine of Potestas delegate don delegari protest – what has been delegated
cannot be delegated
H. Delegation of rate-fixing power
a. Requirements of public safety, public interest, reasonable feasibility and reasonable
rates, which conjointly satisfy the requirements of a valid delegation of legislative
power.
b. Rate fixing: quasi-legislative or quasi-judicial; when hearing required
i. Quasi-legislative – when rules or rates are meant to apply to all enterprises
of a given kind throughout the Philippines, in which case notice and hearing
are not required for their validity.
ii. Quasi-judicial – when rules or rates apply exclusively to a named person or
entity and are predicated upon a finding of facts, on the basis of which the
rules or rates are based, in which case the valid exercise which demands
previous notice and hearing, WON the order fixing the rates is permanent or
provisional or temporary
c. Power to fix rate cannot be re-delegated
i. Case – Kilusang Mayo Uno Labor Center v. Garcia, Jr.