A rule is binding on the courts so long as the procedure fixed for its promulgation is followed and its scope

is within the statutory authority granted by the legislature, even if the courts are not in agreement with the policy stated therein or its innate wisdom (Davis, op. cit., 195-197). On the other hand, administrative interpretation of the law is at best merely advisory, for it is the courts that finally determine what the law means.

Conference of Maritime Manning Agencies v. POEA All that is required is that the regulation should be germane to the objects and purposes of the law; that the regulation be not in contradiction to but in conformity with the standards prescribed by the law.

Realty Exchange v. Sendino DOCTRINE: The power to "adopt rules of procedure for the conduct of its business" and perform such functions necessary for the effective accomplishment of its functions provides ample authority for the HLURB to decide cases in divisions. There is ample authority, both in statutes and jurisprudence, justifying the HLURB's act of dividing itself into 3.

DAGAN v. Philippine Racing Commission The validity of an administrative issuance hinges on compliance with the following requisites: 1. Its promulgation must be authorized by the legislature 2. It must be promulgated in accordance with the prescribed procedure 3. It must be within the scope of the authority given by legislature 4. It must be reasonable

FIXING OF RATES There are 2 requirements: 1. Publication in a newspaper of general circulation for at least 2 weeks 2. Public hearing - If the requirements were not complied with, a party can go to court (rate is void) Principles laid down in Vigan and Philcomsat: 1. If the rate applies to only one entity it is a QUASI-JUDICIAL FUNCTION a. This will involve a question of fact, WON the rate is reasonable, confiscatory, or oppressive

b. Finding of fact is quasi-judicial in character, thus there is a need for notice and hearing to comply with procedural due process requirements 2. If the rate applies to all = it QUASI-LEGISLATIVE in character a. Jurisprudence: Generally, notice and hearing is NOT required, UNLESS the law says otherwise b. Note: The law now provides the need for notice and hearing as per mandate of Sec. 9, Book VII, Admin Code

Panay Autobus & KMU Power of rate fixing cannot be delegated by admin agencies. Admin agencies may only implement what the law provides and fill in the details Ynchausti v. Public Utility Commission Courts cannot interfere with the setting of rates unless there is an abuse of discretion as there is a presumption that rates fixed by the Government are reasonable

LICENSING
Section 17. Licensing Procedure. (1) When the grant, renewal, denial or cancellation of a license is required to be preceded by notice and hearing, the provisions concerning contested cases shall apply insofar as practicable. (2) Except in cases of willful violation of pertinent laws, rules and regulations or when public security, health, or safety require otherwise, no license may be withdrawn, suspended, revoked or annulled without notice and hearing.

Section 18. Non-expiration of License. - Where the licensee has made timely and sufficient application for the renewal of a license with reference to any activity of a continuing nature, the existing license shall not expire until the application shall have been finally determined by the agency.

JUDICIAL FUNCTION - General rules on evidence and procedure do not apply to administrative agencies This is to expedite proceedings; act with flexibility - Agencies must, however, comply with procedural due process because such is constitutionally guaranteed (BOOK 7) Sec. 10 every agency shall encourage amicable settlement, compromise, arbitration

Sec. 11 all parties entitled to notice and hearing, at least 5 days before date of hearing and given opportunity to present evidence and meet all issues Sec. 12 Rules on evidence: man

-examine witnesses presented and submit rebuttal evidence cts Sec. 14 or by registered mail Sec. 15 Decision shall be final and executory within 15 days after receipt of a copy thereof unless appeal is perfected

POWER TO ISSUE SUBPOENA, DECLARE CONTEMPT

1. Subpoena power a. To require attendance of witnesses b. Production of books, papers, documents, or other pertinent data c. Upon request of any party before/during hearing d. Upon showing of general relevance e. The rule about issuing subpoena is not so strict

2. Contempt power a. Agency may, in case of disobedience, invoke the aid of the RTC within whose jurisdiction the contested case falls b. For contumacy or refusal to obey c. Need to seek the aid of the court because power to cite for contempt is inherently judicial (1) Unless otherwise provided by law (a) Agency may be expressly given the power to cite for contempt by an enabling statute (See PD 902-A) (b) The grant of power CANNOT BE IMPLIED Evangelista v. Jarencio
Administrative agencies may enforce subpoenas issued in the course of investigations, whether or not adjudication is involved, and whether or not probable cause is shown and even before the issuance of a complaint.

It is enough that the investigation be for a lawfully authorized purpose. A subpoena meets the requirements for enforcement if the inquiry is (1) within the authority of the agency (subpoena power is granted by law) ; (2) the demand is not too indefinite (not for a fishing expedition) ; and (3) the information is reasonably relevant (clear relevance). Guevara v. COMELEC The COMELECs contempt power can only be exercised as an INCIDENT of quasi-judicial functions (to try, hear, and decide controversies in connection with elections). This power cannot be used in connection with its ministerial duties, preparatory processes for elections (e.g. purchase of ballot boxes, machines, etc.) Tolentino v. Inciong Two ways where the power of contempt is illegal: (1) There was no grant of power; (2) There was such grant of power but was improperly exercised (as was in this case, wherein NLRC declared in contempt a judge of a CFI). Contempt power cannot be abused or wrongly used.