QUASI-LEGISLATIVE Prepared by: Atty. Judiel M. Pareja A. In General People !.

Ma"eran# $"tober %&# %'(( )A*TS: Jose Buenaventura, Godofredo Reyes, Benjamin Reyes, Nazario Aquino and Carlito del Rosario were charged with having violated isheries Administrative !rder No" #$%&" 't alleged that the five accused resorted to electro fishing in the waters of Barrio (an )a*lo Norte, (ta" Cruz *y using their own motor *anca, equi++ed with motor and electrocuting device locally ,nown as sensored with a somewhat we**ed co++er wire on the ti+ or other end of a *am*oo +ole with electric wire attachment which was attached to the dynamo direct and with the use of these devices or equi+ments catches fish thru electric current, which destroy any aquatic animals within its cuffed reach, to the detriment and +rejudice of the +o+ulace" (ec" && of the isheries -aw +rohi*its .the use of any o*no/ious or +oisonous su*stance. in fishing" (ection 01 of the same law +unishes any +erson who uses an o*no/ious or +oisonous su*stance in fishing with a fine of not more than five hundred +esos nor more than five thousand, and *y im+risonment for not less than si/ months or more than five years" 't is noteworthy that the isheries -aw does not e/+ressly +unish electro fishing" Notwithstanding the silence of the law, the (ecretary of Agriculture and Natural Resources, u+on the recommendation of the Commissioner of isheries, +romulgated isheries Administrative !rder No" #$ 213 !"G" &33$4, +rohi*iting electro fishing in all )hili++ine waters !n June 3#, &510 the (ecretary of Agriculture and Natural Resources, u+on the recommendation of the isheries Commission, issued isheries Administrative !rder No" #$%&, amending section 3 of Administrative !rder No" #$, *y restricting the *an against electro fishing to fresh water fisheries 216 !"G" 55164" 7hus, the +hrase .in any +ortion of the )hili++ine waters. found in section 3, was changed *y the amendatory order to read as follows8 .in fresh water fisheries in the )hili++ines, such as rivers, la,es, swam+s, dams, irrigation canals and other *odies of fresh water". I!!ue: 9hether or not (ecretary of Agriculture and Natural Resources and the Commissioner of isheries e/ceeded their authority in issuing isheries Administrative !rders Nos" #$ and #$%& +eld: :es" 7hey e/ceeded their authority" 7he rule%ma,ing +ower confined to details for regulating the mode or +roceeding to carry into effect the law as it has *een enacted" 7he +ower cannot *e e/tended to amending or e/+anding the statutory requirements or to em*race matters not covered *y the statute 7he isheries -aw does not e/+ressly +rohi*it electro fishing "As electro fishing is not *anned under that law" ;ence, the (ecretary of Agriculture and Natural Resources and the Commissioner of isheries are +owerless to +enalize it" ;ad the lawma,ing *ody intended to +unish electro fishing, a +enal +rovision to that effect could have *een easily em*odied in the old isheries -aw" Nowhere in the said law is electro fishing s+ecifically +unished" Administrative agents are clothed with rule%ma,ing +owers *ecause the lawma,ing *ody finds it im+ractica*le, if not im+ossi*le, to antici+ate and +rovide for the multifarious and com+le/ situations that may *e encountered in enforcing the law" All that is required is that the regulation should *e germane to the defects and +ur+oses of the law and that it should conform to the standards that the law +rescri*es"

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S,art *o,,uni"ation!# In". !. -T*# Au.u!t %/# /001 )A*TS: )ursuant to its rule%ma,ing and regulatory +owers, the National 7elecommunications Commission issued a <emorandum Circulars on the *illing of telecommunications services and on measures in minimizing, if not eliminating, the incidence of stealing of cellular +hone unit" 'sla Communications Co", 'nc" 2'slaCom4 and )ili+ino 7ele+hone Cor+oration 2)il7el4 filed an action for the declaration of nullity of the memorandum circulars, alleging that N7C has no jurisdiction to regulate the sale of consumer goods as stated in the su*ject memorandum circulars" (uch jurisdiction *elongs to the =7' under the Consumer Acts of the )hili++ines" (oon thereafter, Glo*e 7elecom, 'nc" and (mart Communications, 'nc" filed a joint motion for leave to intervene and to admit com+laint%in%intervention" 7his was granted *y the trial court" 7he trial court issued a 7R! enjoining N7C from im+lementing the <Cs" N7C filed a <otion to =ismiss, on the ground that +etitioners failed to e/haust administrative remedies" 7he defendant>s <= is denied for lac, of merit" N7C filed a <R *ut was later on denied *y the trial court" 7he CA, u+on N7C>s filing of a s+ecial action for certiorari and +rohi*ition, reversed the decision of the lower court" ;ence this +etition" ISSUE: 9?N the CA erred in holding that the +rivate res+ondents failed to e/haust administrative remedies@ 2ULI-G8 Administrative agencies +ossess quasi%legislative or rule%ma,ing +owers and quasi%judicial or administrative adjudicatory +owers" Auasi%legislative or rule%ma,ing +ower is the +ower to ma,e rules and regulations which results in delegated legislation that is within the confines of the granting statute and the doctrine of non%delega*ility and se+ara*ility of +owers" 7he rules and regulations that administrative agencies +romulgate, which are the +roduct of a delegated legislative +ower to create new and additional legal +rovisions that have the effect of law, should *e within the sco+e of the statutory authority granted *y the legislature to the administrative agency" 't is required that the regulation *e germane to the o*jects and +ur+oses of the law, and *e not in contradiction to, *ut in conformity with, the standards +rescri*ed *y law" 7hey must conform to and *e consistent with the +rovisions of the ena*ling statute in order for such rule or regulation to *e valid" Constitutional and statutory +rovisions control with res+ect to what rules and regulations may *e +romulgated *y an administrative *ody, as well as with res+ect to what fields are su*ject to regulation *y it" 't may not ma,e rules and regulations which are inconsistent with the +rovisions of the Constitution or a statute, +articularly the statute it is administering or which created it, or which are in derogation of, or defeat, the +ur+ose of a statute" 'n case of conflict *etween a statute and an administrative order, the former must +revail" Not to *e confused with the quasi%legislative or rule%ma,ing +ower of an administrative agency is its quasi%judicial or administrative adjudicatory +ower" 7his is the +ower to hear and determine questions of fact to which the legislative +olicy is to a++ly and to decide in accordance with the

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standards laid down *y the law itself in enforcing and administering the same law" 7he administrative *ody e/ercises its quasi%judicial +ower when it +erforms in a judicial manner an act which is essentially of an e/ecutive or administrative nature, where the +ower to act in such manner is incidental to or reasona*ly necessary for the +erformance of the e/ecutive or administrative duty entrusted to it" 'n carrying out their quasi%judicial functions, the administrative officers or *odies are required to investigate facts or ascertain the e/istence of facts, hold hearings, weigh evidence, and draw conclusions from them as *asis for their official action and e/ercise of discretion in a judicial nature" 7he doctrine of +rimary jurisdiction a++lies only where the administrative agency e/ercises its quasi%judicial or adjudicatory function" 7hus, in cases involving s+ecialized dis+utes, the +ractice has *een to refer the same to an administrative agency of s+ecial com+etence +ursuant to the doctrine of +rimary jurisdiction" 7he courts will not determine a controversy involving a question which is within the jurisdiction of the administrative tri*unal +rior to the resolution of that question *y the administrative tri*unal, where the question demands the e/ercise of sound administrative discretion requiring the s+ecial ,nowledge, e/+erience and services of the administrative tri*unal to determine technical and intricate matters of fact, and a uniformity of ruling is essential to com+ly with the +remises of the regulatory statute administered" 7he o*jective of the doctrine of +rimary jurisdiction is to guide a court in determining whether it should refrain from e/ercising its jurisdiction until after an administrative agency has determined some question or some as+ect of some question arising in the +roceeding *efore the court" 't a++lies where the claim is originally cogniza*le in the courts and comes into +lay whenever enforcement of the claim requires the resolution of issues which, under a regulatory scheme, has *een +laced within the s+ecial com+etence of an administrative *odyB in such case, the judicial +rocess is sus+ended +ending referral of such issues to the administrative *ody for its view" ;owever, where what is assailed is the validity or constitutionality of a rule or regulation issued *y the administrative agency in the +erformance of its quasi%legislative function, the regular courts have jurisdiction to +ass u+on the same" 7he determination of whether a s+ecific rule or set of rules issued *y an administrative agency contravenes the law or the constitution is within the jurisdiction of the regular courts" 'ndeed, the Constitution vests the +ower of judicial review or the +ower to declare a law, treaty, international or e/ecutive agreement, +residential decree, order, instruction, ordinance, or regulation in the courts, including the regional trial courts" 7his is within the sco+e of judicial +ower, which includes the authority of the courts to determine in an a++ro+riate action the validity of the acts of the +olitical de+artments" Judicial +ower includes the duty of the courts of justice to settle actual controversies involving rights which are legally demanda*le and enforcea*le, and to determine whether or not there has *een a grave a*use of discretion amounting to lac, or e/cess of jurisdiction on the +art of any *ranch or instrumentality of the Government"

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3. 4ele.ation o5 Le.i!lati e Po6er *o,pania General de Taba"o! de )ilipina! !. 3oard o5 Publi" Utility# Mar"7 08#%'%8 *$MPA-IA GE-E2AL 4E TA3A*$S 4E )ILIPI-AS *$MMISSI$-E2S G.2. -o. L-%%/%8 Mar"7 8# %'%8 )a"t!: C!<)AN'A GCNCRA- =C 7ABAC!( =C '-')'NA( is a foreign cor+oration organized under the laws of (+ain and engaged in *usiness in the )hili++ine 'slands as a common carrier of +assengers and merchandise *y water8 !n June 0, &5&D, the Board of )u*lic Etility Commissioners issued and caused to *e served an order to show cause why they should not *e required to +resent detailed annual re+orts res+ecting its finances and o+erations res+ecting the vessels owned and o+erated *y it, in the form and containing the matters indicated *y the model attached to the +etition" 7hey are ordered to +resent annually on or *efore <arch first of each year a detailed re+ort of finances and o+erations of such vessels as are o+erated *y it as a common carrier within the )hili++ine 'slands, in the form and containing the matters indicated in the model of annual re+ort which accom+anied the order to show cause herein" C!<)AN'A GCNCRA- =C 7ABAC!( =C '-')'NA( denied the authority of the *oard to require the re+ort as,ed for on the ground that the +rovision of Act No" 36F0 relied on *y said *oard as authority for such requirement was, if construed as conferring such +ower, invalid as constituting an unlawful attem+t on the +art of the -egislature to delegate legislative +ower to the *oard" 't is cum*ersome and unnecessarily +roli/ and that the +re+aration of the same would entail an immense amount of clerical wor,". ISSUE: 9hether or not it is constitutional to require C!<)AN'A GCNCRA- =C 7ABAC!( =C '-')'NA( to +ass a detailed re+ort to the Board of )u*lic Etility Commissioners of the )hili++ine 'slands@ 9hether the +ower to require the detailed re+ort is strictly legislative, or administrative, or merely relates to the e/ecution of the law@ +EL4: 7he order a++ealed from is set aside and the cause is returned to the Board of )u*lic Etility Commissioners with instructions to dismiss the +roceeding" 2ULI-G: !. T+E 3$A24 $) PU3LI* UTILIT9

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7he section of Act No" 36F0 under which the Board of )u*lic Etility Commissioners relies for its authority, so far as +ertinent to the case at hand, reads as follows8 (ec" &1" 7he Board shall have +ower, after hearing, u+on notice, *y order in writing, to require every +u*lic utility as herein defined8 2e4 7o furnish annually a detailed re+ort of finances and o+erations, in such form and containing such matters as the Board may from time to time *y order +rescri*e" 7he statute which authorizes a Board of )u*lic Etility Commissioners to require detailed re+orts from +u*lic utilities, leaving the nature of the re+ort, the contents thereof, the general lines which it shall follow, the +rinci+le u+on which it shall +roceed, indeed, all other matters whatsoever, to the e/clusive discretion of the *oard, is not e/+ressing its own will or the will of the (tate with res+ect to the +u*lic utilities to which it refers" (uch a +rovision does not declare, or set out, or indicate what information the (tate requires, what is valua*le to it, what it needs in order to im+ose correct and just ta/ation, su+ervision or control, or the facts which the (tate must have in order to deal justly and equita*ly with such +u*lic utilities and to require them to deal justly and equita*ly with the (tate" 7he -egislature seems sim+ly to have authorized the Board of )u*lic Etility Commissioners to require what information the *oard wants" 't would seem that the -egislature, *y the +rovision in question, delegated to the Board of )u*lic Etility Commissioners all of its +owers over a given su*ject%matter in a manner almost a*solute, and without laying down a rule or even ma,ing a suggestion *y which that +ower is to *e directed, guided or a++lied" 7he true distinction is *etween the delegation of +ower to ma,e the law, which necessarily involves a discretion as to what shall *e, and conferring authority or discretion as to its e/ecution, to *e e/ercised under and in +ursuance of the law" 7he first cannot *e doneB to the latter no valid o*jection can *e made" 7he (u+reme Court held that there was no delegation of legislative +ower, it said8 7he Congress may not delegate its +urely legislative +owers to a commission, *ut, having laid down the general rules of action under which a commission shall +roceed, it may require of that commission the a++lication of such rules to +articular situations and the investigation of facts, with a view to ma,ing orders in a +articular matter within the rules laid down *y the Congress" 'n section 3F 2of the Commerce Act4, Congress has authorized the commission to require annual re+orts" 7he act itself +rescri*es in detail what those re+orts shall contain" 'n other words, Congress has laid down general rules for the guidance of the Commission, leaving to it merely the carrying out of details in the e/ercise of the +ower so conferred" 7his, we thin,, is not a delegation of legislative authority"

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'n the case at *ar the +rovision com+lained of does not lay .down the general rules of action under which the commission shall +roceed". nor does it itself +rescri*e in detail what those re+orts shall contain" )ractically everything is left to the judgment and discretion of the Board of )u*lic Etility Commissioners, which is unrestrained as to when it shall act, why it shall act, how it shall act, to what e/tent it shall act, or what it shall act u+on" 7he -egislature, *y the +rovision in question, has a*dicated its +owers and functions in favor of the Board of )u*lic Etility Commissioners with res+ect to the matters therein referred to, and that such Act is in violation of the Act of Congress of July &, &5F3" 7he -egislature, *y the +rovision referred to, has not as,ed for the information which the (tate wants *ut has authorized and *oard to o*tain the information which the *oard wants" People !. Vera# -o e,ber %8# %'1( 3" But while the )ro*ation -aw does not encroach u+on the +ardoning +ower of the e/ecutive and is not for that reason void, does section && thereof constitute, as contended, an undue delegation of legislative +ower@ Ender the constitutional system, the +owers of government are distri*uted among three coordinate and su*stantially inde+endent organs8 the legislative, the e/ecutive and the judicial" Cach of these de+artments of the government derives its authority from the Constitution which, in turn, is the highest e/+ression of +o+ular will" Cach has e/clusive cognizance of the matters within its jurisdiction, and is su+reme within its own s+here" 7he +ower to ma,e laws G the legislative +ower G is vested in a *icameral -egislature *y the Jones -aw 2sec" &34 and in a unicamiral National Assem*ly *y the Constitution 2Act" H', sec" &, Constitution of the )hili++ines4" 7he )hili++ine -egislature or the National Assem*ly may not esca+e its duties and res+onsi*ilities *y delegating that +ower to any other *ody or authority" Any attem+t to a*dicate the +ower is unconstitutional and void, on the +rinci+le that +otestas delegata non delegare +otest" 7his +rinci+le is said to have originated with the glossators, was introduced into Cnglish law through a misreading of Bracton, there develo+ed as a +rinci+le of agency, was esta*lished *y -ord Co,e in the Cnglish +u*lic law in decisions for*idding the delegation of judicial +ower, and found its way into America as an enlightened +rinci+le of free government" 't has since *ecome an acce+ted corollary of the +rinci+le of se+aration of +owers" 2D Cncyc" of the (ocial (ciences, +" 11"4 7he classic statement of the rule is that of -oc,e, namely8 .7he legislative neither must nor can transfer the +ower of ma,ing laws to any*ody else, or +lace it anywhere *ut where the +eo+le have". 2-oc,e on Civil Government, sec" &$3"4 Judge Cooley enunciates the doctrine in the following oft%quoted language8 .!ne of the settled ma/ims in constitutional law is, that the +ower conferred u+on the legislature to ma,e laws cannot *e delegated *y that de+artment to any other *ody or authority" 9here the sovereign +ower of the state has located the authority, there it must remainB and *y the constitutional agency alone the laws must *e made until the Constitution itself is

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charged" 7he +ower to whose judgment, wisdom, and +atriotism this high +rerogative has *een intrusted cannot relieve itself of the res+onsi*ilities *y choosing other agencies u+on which the +ower shall *e devolved, nor can it su*stitute the judgment, wisdom, and +atriotism of any other *ody for those to which alone the +eo+le have seen fit to confide this sovereign trust". 2Cooley on Constitutional -imitations, #th ed", Hol" ', +" 33$" Auoted with a++roval in E" (" vs" Barrias I&5F#J, && )hil", 630"4 7his court +osits the doctrine .on the ethical +rinci+le that such a delegated +ower constitutes not only a right *ut a duty to *e +erformed *y the delegate *y the instrumentality of his own judgment acting immediately u+on the matter of legislation and not through the intervening mind of another" 2E" (" vs" Barrias, su+ra, at +" 66F"4 7he rule, however, which for*ids the delegation of legislative +ower is not a*solute and infle/i*le" 't admits of e/ce+tions" An e/ce+tions sanctioned *y immemorial +ractice +ermits the central legislative *ody to delegate legislative +owers to local authorities" 2Ru*i vs" )rovincial Board of <indoro I&5&5J, 65 )hil", 11FB E" (" vs" (alaveria I&5&#J, 65 )hil", &F3B (touten*urgh vs" ;ennic, I&##5J, &35 E" (", &$&B 63 -aw" ed", 160B 5 (u+" Ct" Re+", 3D1B (tate vs" Noyes I&#DDJ, 6F N" ;", 305"4 .'t is a cardinal +rinci+le of our system of government, that local affairs shall *e managed *y local authorities, and general affairs *y the central authoritiesB and hence while the rule is also fundamental that the +ower to ma,e laws cannot *e delegated, the creation of the munici+alities e/ercising local self government has never *een held to trench u+on that rule" (uch legislation is not regarded as a transfer of general legislative +ower, *ut rather as the grant of the authority to +rescri*ed local regulations, according to immemorial +ractice, su*ject of course to the inter+osition of the su+erior in cases of necessity". 2(touten*urgh vs" ;ennic,, su+ra"4 !n quite the same +rinci+le, Congress is +owered to delegate legislative +ower to such agencies in the territories of the Enited (tates as it may select" A territory stands in the same relation to Congress as a munici+ality or city to the state government" 2Enited (tates vs" ;einszen I&5F0J, 3F1 E" (", 60FB 30 (u+" Ct" Re+", 0$3B D& -" ed", &F5#B && Ann" Cas", 1##B =orr vs" Enited (tates I&5F$J, &5D E"(", &6#B 3$ (u+" Ct" Re+", #F#B $5 -aw" ed", &3#B & Ann" Cas", 150"4 Courts have also sustained the delegation of legislative +ower to the +eo+le at large" (ome authorities maintain that this may not *e done 2&3 C" J", ++" #$&, #$3B 1 R" C" -", +" &1$, citing )eo+le vs" Kennedy I&5&6J, 3F0 N" :", D66B &F& N" C", $$3B Ann" Cas", &5&$C, 1&14" ;owever, the question of whether or not a state has ceased to *e re+u*lican in form *ecause of its ado+tion of the initiative and referendum has *een held not to *e a judicial *ut a +olitical question 2)acific (tates 7el" L 7el" Co" vs" !regon I&5&3J, 336 E" (", &&#B D1 -aw" ed", 600B 63 (u+" Cet" Re+", 33$4, and as the constitutionality of such laws has *een loo,ed u+on with favor *y certain +rogressive courts, the sting of the decisions of the more conservative courts has *een +retty well drawn" 2!+inions of the Justices I&#5$J, &1F <ass", D#1B 61 N" C", $##B 36 -" R" A", &&6B Kiernan vs" )ortland I&5&FJ, D0 !re", $D$B &&& )ac", 605B &&63 )ac", $F3B 60 -" R" A" IN" ("J, 663B )acific (tates 7el" L 7el" Co" vs" !regon, su+ra"4 =ou*tless, also, legislative +ower may *e delegated *y the Constitution itself" (ection &$, +aragra+h 3, of article H' of the Constitution of the )hili++ines +rovides that .7he National Assem*ly may *y law authorize the )resident, su*ject to such limitations and restrictions as it may im+ose, to fi/ within s+ecified limits, tariff rates, im+ort

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or e/+ort quotas, and tonnage and wharfage dues". And section &1 of the same article of the Constitution +rovides that .'n times of war or other national emergency, the National Assem*ly may *y law authorize the )resident, for a limited +eriod and su*ject to such restrictions as it may +rescri*ed, to +romulgate rules and regulations to carry out a declared national +olicy". 't is *eyond the sco+e of this decision to determine whether or not, in the a*sence of the foregoing constitutional +rovisions, the )resident could *e authorized to e/ercise the +owers there*y vested in him" E+on the other hand, whatever dou*t may have e/isted has *een removed *y the Constitution itself" 7he case *efore us does not fall under any of the e/ce+tions hereina*ove mentioned" 7he challenged section of Act No" $33& in section && which reads as follows8 7his Act shall a++ly only in those +rovinces in which the res+ective +rovincial *oards have +rovided for the salary of a +ro*ation officer at rates not lower than those now +rovided for +rovincial fiscals" (aid +ro*ation officer shall *e a++ointed *y the (ecretary of Justice and shall *e su*ject to the direction of the )ro*ation !ffice" 2Cm+hasis ours"4 'n testing whether a statute constitute an undue delegation of legislative +ower or not, it is usual to inquire whether the statute was com+lete in all its terms and +rovisions when it left the hands of the legislature so that nothing was left to the judgment of any other a++ointee or delegate of the legislature" 21 R" C" -", +" &1D"4 'n the Enited (tates vs" Ang 7ang ;o 2I&533J, $6 )hil", &4, this court adhered to the foregoing rule when it held an act of the legislature void in so far as it undertoo, to authorize the Governor%General, in his discretion, to issue a +roclamation fi/ing the +rice of rice and to ma,e the sale of it in violation of the +roclamation a crime" 2(ee and cf" Com+aMia General de 7a*acos vs" Board of )u*lic Etility Commissioners I&5&1J, 6$ )hil", &61"4 7he general rule, however, is limited *y another rule that to a certain e/tent matters of detail may *e left to *e filled in *y rules and regulations to *e ado+ted or +romulgated *y e/ecutive officers and administrative *oards" 21 R" C" -", ++" &00%&05"4 or the +ur+ose of )ro*ation Act, the +rovincial *oards may *e regarded as administrative *odies endowed with +ower to determine when the Act should ta,e effect in their res+ective +rovinces" 7hey are the agents or delegates of the legislature in this res+ect" 7he rules governing delegation of legislative +ower to administrative and e/ecutive officers are a++lica*le or are at least indicative of the rule which should *e here ado+ted" An e/amination of a variety of cases on delegation of +ower to administrative *odies will show that the ratio decidendi is at variance *ut, it can *e *roadly asserted that the rationale revolves around the +resence or a*sence of a standard or rule of action G or the sufficiency thereof G in the statute, to aid the delegate in e/ercising the granted discretion" 'n some cases, it is held that the standard is sufficientB in others that is insufficientB and in still others that it is entirely lac,ing" As a rule, an act of the legislature is incom+lete and hence invalid if it does not lay down any rule or definite standard *y which the

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administrative officer or *oard may *e guided in the e/ercise of the discretionary +owers delegated to it" 2(ee (checter vs" Enited (tates I&53DJ, 35D E" (", $5DB 05 -" ed", &D0FB DD (u+" Ct" Re+", #60B 50 A"-"R", 5$0B )eo+le e/ rel" Rice vs" 9ilson !il Co" I&561J, 61$ 'll", $F1B $ N" C" I3dJ, #$0B &F0 A"-"R", &DFF and cases cited" (ee also R" C" -", title .Constitutional -aw., sec &0$"4 'n the case at *ar, what rules are to guide the +rovincial *oards in the e/ercise of their discretionary +ower to determine whether or not the )ro*ation Act shall a++ly in their res+ective +rovinces@ 9hat standards are fi/ed *y the Act@ 9e do not find any and none has *een +ointed to us *y the res+ondents" 7he +ro*ation Act does not, *y the force of any of its +rovisions, fi/ and im+ose u+on the +rovincial *oards any standard or guide in the e/ercise of their discretionary +ower" 9hat is granted, if we may use the language of Justice Cardozo in the recent case of (checter, su+ra, is a .roving commission. which ena*les the +rovincial *oards to e/ercise ar*itrary discretion" By section && if the Act, the legislature does not seemingly on its own authority e/tend the *enefits of the )ro*ation Act to the +rovinces *ut in reality leaves the entire matter for the various +rovincial *oards to determine" 'n other words, the +rovincial *oards of the various +rovinces are to determine for themselves, whether the )ro*ation -aw shall a++ly to their +rovinces or not at all" 7he a++lica*ility and a++lication of the )ro*ation Act are entirely +laced in the hands of the +rovincial *oards" 'f the +rovincial *oard does not wish to have the Act a++lied in its +rovince, all that it has to do is to decline to a++ro+riate the needed amount for the salary of a +ro*ation officer" 7he +lain language of the Act is not susce+ti*le of any other inter+retation" 7his, to our minds, is a virtual surrender of legislative +ower to the +rovincial *oards" .7he true distinction., says Judge Ranney, .is *etween the delegation of +ower to ma,e the law, which necessarily involves a discretion as to what it shall *e, and conferring an authority or discretion as to its e/ecution, to *e e/ercised under and in +ursuance of the law" 7he first cannot *e doneB to the latter no valid o*jection can *e made". 2Cincinnati, 9" L N" R" Co" vs" Clinton County Comrs" I&#D3JB & !hio (t", 00, ##" (ee also, (utherland on (tatutory Construction, sec 1#"4 7o the same effect are the decision of this court in <unici+ality of Cardona vs" <unici+ality of Binangonan 2I&5&0J, 61 )hil", D$04B Ru*i vs" )rovincial Board of <indoro 2I&5&5J,65 )hil", 11F4 and Cruz vs" :oung*erg 2I&56&J, D1 )hil", 36$4" 'n the first of these cases, this court sustained the validity of the law conferring u+on the Governor%General authority to adjust +rovincial and munici+al *oundaries" 'n the second case, this court held it lawful for the legislature to direct non%Christian inha*itants to ta,e u+ their ha*itation on unoccu+ied lands to *e selected *y the +rovincial governor and a++roved *y the +rovincial *oard" 'n the third case, it was held +ro+er for the legislature to vest in the Governor%General authority to sus+end or not, at his discretion, the +rohi*ition of the im+ortation of the foreign cattle, such +rohi*ition to *e raised .if the conditions of the country ma,e this advisa*le or if deceased among foreign cattle has ceased to *e a menace to the agriculture and livestoc, of the lands". 't should *e o*served that in the case at *ar we are not concerned with the sim+le transference of details of e/ecution or the +romulgation *y e/ecutive or administrative officials of

Page 9 of 37

rules and regulations to carry into effect the +rovisions of a law" 'f we were, recurrence to our own decisions would *e sufficient" 2E" (" vs" Barrias I&5F#J, && )hil", 630B E"(" vs" <olina I&5&$J, 35 )hil", &&5B Alegre vs" Collector of Customs I&535J, D6 )hil", 65$B Ce*u Auto*us Co" vs" =e Jesus I&56&J, D1 )hil", $$1B E" (" vs" Gomez I&5&DJ, 6& )hil", 3&#B Ru*i vs" )rovincial Board of <indoro I&5&5J, 65 )hil", 11F"4 't is connected, however, that a legislative act may *e made to the effect as law after it leaves the hands of the legislature" 't is true that laws may *e made effective on certain contingencies, as *y +roclamation of the e/ecutive or the ado+tion *y the +eo+le of a +articular community 21 R" C" -", &&1, &0F%&03B Cooley, Constitutional -imitations, #th ed", Hol" ', +" 3304" 'n 9ayman vs" (outhard 2I&#3DJ, &F 9heat" &B 1 -aw" ed", 3D64, the (u+reme Court of the Enited (tate ruled that the legislature may delegate a +ower not legislative which it may itself rightfully e/ercise"2Hide, also, =owling vs" -ancashire 'ns" Co" I&#51J, 53 9is", 16B 1D N" 9", 06#B 6& -" R" A", &&3"4 7he +ower to ascertain facts is such a +ower which may *e delegated" 7here is nothing essentially legislative in ascertaining the e/istence of facts or conditions as the *asis of the ta,ing into effect of a law" 7hat is a mental +rocess common to all *ranches of the government" 2=owling vs" -ancashire 'ns" Co", su+raB 'n re Hillage of North <ilwau,ee I&#51J, 56 9is", 1&1B 50 N"9", &F66B 66 -"R"A", 56#B Nash vs" ries I&5F1J, &35 9is", &3FB &F# N"9", 3&FB ield vs" Clar, I&#53J, &$6 E"(", 1$5B &3 (u+" Ct", $5DB 61 -aw" ed", 35$"4 Notwithstanding the a++arent tendency, however, to rela/ the rule +rohi*iting delegation of legislative authority on account of the com+le/ity arising from social and economic forces at wor, in this modern industrial age 2)fiffner, )u*lic Administration I&561J ch" OOB -as,i, .7he <other of )arliaments., foreign Affairs, July, &56&, Hol" 'O, No" $, ++" D15%D05B Beard, .(quirt%Gun )olitics., in ;ar+er>s <onthly <agazine, July, &56F, Hol" C-O', ++" &$0, &D34, the orthodo/ +ronouncement of Judge Cooley in his wor, on Constitutional -imitations finds restatement in )rof" 9illough*y>s treatise on the Constitution of the Enited (tates in the following language G s+ea,ing of declaration of legislative +ower to administrative agencies8 .7he +rinci+le which +ermits the legislature to +rovide that the administrative agent may determine when the circumstances are such as require the a++lication of a law is defended u+on the ground that at the time this authority is granted, the rule of +u*lic +olicy, which is the essence of the legislative act, is determined *y the legislature" 'n other words, the legislature, as it its duty to do, determines that, under given circumstances, certain e/ecutive or administrative action is to *e ta,en, and that, under other circumstances, different of no action at all is to *e ta,en" 9hat is thus left to the administrative official is not the legislative determination of what +u*lic +olicy demands, *ut sim+ly the ascertainment of what the facts of the case require to *e done according to the terms of the law *y which he is governed". 29illough*y on the Constitution of the Enited (tates, 3nd ed", Hol" '', +" &160"4 'n <iller vs" <ayer, etc", of New :or, I&##6J, &F5 E"(", 6 (u+" Ct" Re+", 33#B 30 -aw" ed", 50&, 50$4, it was said8 .7he efficiency of an Act as a declaration of legislative will must, of course, come from Congress, *ut the ascertainment of the contingency u+on which the Act shall ta,e effect may *e left to such agencies as it may designate". 2(ee, also, &3 C"J", +" #1$B (tate vs" )ar,er I&#D$J, 31 Ht", 6D0B Blanding vs" Burr I&#D5J, &6 Cal", 6$6, 3D#"4 7he legislature, then may

Page 10 of 37

+rovide that a contingencies leaving to some other +erson or *ody the +ower to determine when the s+ecified contingencies has arisen" But, in the case at *ar, the legislature has not made the o+eration of the )rohi*ition Act contingent u+on s+ecified facts or conditions to *e ascertained *y the +rovincial *oard" 't leaves, as we have already said, the entire o+eration or non%o+eration of the law u+on the +rovincial *oard" the discretion vested is ar*itrary *ecause it is a*solute and unlimited" A +rovincial *oard need not investigate conditions or find any fact, or await the ha++ening of any s+ecified contingency" 't is *ound *y no rule, G limited *y no +rinci+le of e/+endiency announced *y the legislature" 't may ta,e into consideration certain facts or conditionsB and, again, it may not" 't may have any +ur+ose or no +ur+ose at all" 't need not give any reason whatsoever for refusing or failing to a++ro+riate any funds for the salary of a +ro*ation officer" 7his is a matter which rest entirely at its +leasure" 7he fact that at some future time G we cannot say when G the +rovincial *oards may a++ro+riate funds for the salaries of +ro*ation officers and thus +ut the law into o+eration in the various +rovinces will not save the statute" 7he time of its ta,ing into effect, we reiterate, would yet *e *ased solely u+on the will of the +rovincial *oards and not u+on the ha++ening of a certain s+ecified contingency, or u+on the ascertainment of certain facts or conditions *y a +erson or *ody other than legislature itself" 7he various +rovincial *oards are, in +ractical effect, endowed with the +ower of sus+ending the o+eration of the )ro*ation -aw in their res+ective +rovinces" 'n some jurisdiction, constitutions +rovided that laws may *e sus+ended only *y the legislature or *y its authority" 7hus, section 3#, article ' of the Constitution of 7e/as +rovides that .No +ower of sus+ending laws in this state shall *e e/ercised e/ce+t *y the legislature.B and section 31, article ' of the Constitution of 'ndiana +rovides .7hat the o+eration of the laws shall never *e sus+ended, e/ce+t *y authority of the General Assem*ly". :et, even +rovisions of this sort do not confer a*solute +ower of sus+ension u+on the legislature" 9hile it may *e undou*ted that the legislature may sus+end a law, or the e/ecution or o+eration of a law, a law may not *e sus+ended as to certain individuals only, leaving the law to *e enjoyed *y others" 7he sus+ension must *e general, and cannot *e made for individual cases or for +articular localities" 'n ;olden vs" James 2I&#&$J, && <ass", 651B 1 Am" =ec", &0$, &00, &0#4, it was said8 By the twentieth article of the declaration of rights in the constitution of this commonwealth, it is declared that the +ower of sus+ending the laws, or the e/ecution of the laws, ought never to *e e/ercised *ut *y the legislature, or *y authority derived from it, to *e e/ercised in such +articular cases only as the legislature shall e/+ressly +rovide for" <any of the articles in that declaration of rights were ado+ted from the <agna Charta of Cngland, and from the *ill of rights +assed in the reign of 9illiam and <ary" 7he *ill of rights contains an enumeration of the o++ressive acts of James '', tending to su*vert and e/tir+ate the +rotestant religion, and the laws and li*erties of the ,ingdomB and the first of them is the assuming and e/ercising a +ower of dis+ensing with and sus+ending the laws, and the e/ecution of the laws without consent of +arliament" 7he first article in the claim or declaration of rights contained in the statute is, that

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the e/ercise of such +ower, *y legal authority without consent of +arliament, is illegal" 'n the tenth section of the same statute it is further declared and enacted, that .No dis+ensation *y non o*stante of or to any statute, or +art thereof, should *e allowedB *ut the same should *e held void and of no effect, e/ce+t a dis+ensation *e allowed of in such statute". 7here is an im+lied reservation of authority in the +arliament to e/ercise the +ower here mentionedB *ecause, according to the theory of the Cnglish Constitution, .that a*solute des+otic +ower, which must in all governments reside somewhere,. is intrusted to the +arliament8 & Bl" Com", &1F" 7he +rinci+les of our government are widely different in this +articular" ;ere the sovereign and a*solute +ower resides in the +eo+leB and the legislature can only e/ercise what is delegated to them according to the constitution" 't is o*vious that the e/ercise of the +ower in question would *e equally o++ressive to the su*ject, and su*versive of his right to +rotection, .according to standing laws,. whether e/ercised *y one man or *y a num*er of men" 't cannot *e su++osed that the +eo+le when ado+ting this general +rinci+le from the Cnglish *ill of rights and inserting it in our constitution, intended to *estow *y im+lication on the general court one of the most odious and o++ressive +rerogatives of the ancient ,ings of Cngland" 't is manifestly contrary to the first +rinci+les of civil li*erty and natural justice, and to the s+irit of our constitution and laws, that any one citizen should enjoy +rivileges and advantages which are denied to all others under li,e circumstancesB or that ant one should *e su*ject to losses, damages, suits, or actions from which all others under li,e circumstances are e/em+ted" 7o illustrate the +rinci+le8 A section of a statute relative to dogs made the owner of any dog lia*le to the owner of domestic animals wounded *y it for the damages without +roving a ,nowledge of it vicious dis+osition" By a +rovision of the act, +ower was given to the *oard of su+ervisors to determine whether or not during the current year their county should *e governed *y the +rovisions of the act of which that section constituted a +art" 't was held that the legislature could not confer that +ower" 7he court o*served that it could no more confer such a +ower than to authorize the *oard of su+ervisors of a county to a*olish in such county the days of grace on commercial +a+er, or to sus+end the statute of limitations" 2(linger vs" ;enneman I&#0DJ, 6# 9is", DF$"4 A similar statute in <issouri was held void for the same reason in (tate vs" ield 2I&#D6, &0 <o", D35BD5 Am" =ec", 30D"4 'n that case a general statute formulating a road system contained a +rovision that .if the county court of any county should *e of o+inion that the +rovisions of the act should not *e enforced, they might, in their discretion, sus+end the o+eration of the same for any s+ecified length of time, and thereu+on the act should *ecome ino+erative in such county for the +eriod s+ecified in such orderB and thereu+on order the roads to *e o+ened and ,e+t in good re+air, under the laws theretofore in force". (aid the court8 ." " " this act, *y its own +rovisions, re+eals the inconsistent +rovisions of a former act, and yet it is left to the county court to say which act shall *e enforce in their county" 7he act does not su*mit the question to the county court as an original question, to *e decided *y that tri*unal, whether the act shall commence its o+eration within the countyB *ut it *ecame *y its own terms a law in every county not e/ce+ted *y name in the

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act" 't did not, then, require the county court to do any act in order to give it effect" But *eing the law in the county, and having *y its +rovisions su+erseded and a*rogated the inconsistent +rovisions of +revious laws, the county court is " " " em+owered, to sus+end this act and revive the re+ealed +rovisions of the former act" 9hen the question is *efore the county court for that tri*unal to determine which law shall *e in force, it is urge *efore us that the +ower then to *e e/ercised *y the court is strictly legislative +ower, which under our constitution, cannot *e delegated to that tri*unal or to any other *ody of men in the state" 'n the +resent case, the question is not +resented in the a*stractB for the county court of (aline county, after the act had *een for several months in force in that county, did *y order sus+end its o+erationB and during that sus+ension the offense was committed which is the su*ject of the +resent indictment " " " ". 2(ee <itchell vs" (tate I&5F&J, &6$ Ala", 653B 63 (", 1#0"4 7rue, the legislature may enact laws for a +articular locality different from those a++lica*le to other localities and, while recognizing the force of the +rinci+le hereina*ove e/+ressed, courts in may jurisdiction have sustained the constitutionality of the su*mission of o+tion laws to the vote of the +eo+le" 21 R"C"-", +" &0&"4 But o+tion laws thus sustained treat of su*jects +urely local in character which should receive different treatment in different localities +laced under different circumstances" .7hey relate to su*jects which, li,e the retailing of into/icating drin,s, or the running at large of cattle in the highways, may *e differently regarded in different localities, and they are sustained on what seems to us the im+regna*le ground, that the su*ject, though not em*raced within the ordinary +owers of munici+alities to ma,e *y%laws and ordinances, is nevertheless within the class of +u*lic regulations, in res+ect to which it is +ro+er that the local judgment should control". 2Cooley on Constitutional -imitations, Dth ed", +" &$#"4 (o that, while we do not deny the right of local self%government and the +ro+riety of leaving matters of +urely local concern in the hands of local authorities or for the +eo+le of small communities to +ass u+on, we *elieve that in matters of general of general legislation li,e that which treats of criminals in general, and as regards the general su*ject of +ro*ation, discretion may not *e vested in a manner so unqualified and a*solute as +rovided in Act No" $33&" 7rue, the statute does not e/+ressly state that the +rovincial *oards may sus+end the o+eration of the )ro*ation Act in +articular +rovinces *ut, considering that, in *eing vested with the authority to a++ro+riate or not the necessary funds for the salaries of +ro*ation officers, they there*y are given a*solute discretion to determine whether or not the law should ta,e effect or o+erate in their res+ective +rovinces, the +rovincial *oards are in reality em+owered *y the legislature to sus+end the o+eration of the )ro*ation Act in +articular +rovinces, the Act to *e held in a*eyance until the +rovincial *oards should decide otherwise *y a++ro+riating the necessary funds" 7he validity of a law is not tested *y what has *een done *ut *y what may *e done under its +rovisions" 29alter C" !lsen L Co" vs" Aldanese and 7rinidad I&533J, $6 )hil", 3D5B &3 C" J", +" 0#1"4 't in conceded that a great deal of latitude should *e granted to the legislature not only in the e/+ression of what may *e termed legislative +olicy *ut in the ela*oration and e/ecution

Page 13 of 37

thereof" .9ithout this +ower, legislation would *ecome o++ressive and yet im*ecile". 2)eo+le vs" Reynolds, D Gilman, &"4 't has *een said that +o+ular government lives *ecause of the ine/hausti*le reservoir of +ower *ehind it" 't is unquestiona*le that the mass of +owers of government is vested in the re+resentatives of the +eo+le and that these re+resentatives are no further restrained under our system than *y the e/+ress language of the instrument im+osing the restraint, or *y +articular +rovisions which *y clear intendment, have that effect" 2Angara vs" Clectoral Commission I&561J, 6D !ff" Ga", 36B (chnec,en*urger vs" <oran I&561J, 6D !ff" Gaz", &6&0"4 But, it should *e *orne in mind that a constitution is *oth a grant and a limitation of +ower and one of these time% honored limitations is that, su*ject to certain e/ce+tions, legislative +ower shall not *e delegated" 9e conclude that section && of Act No" $33& constitutes an im+ro+er and unlawful delegation of legislative authority to the +rovincial *oards and is, for this reason, unconstitutional and void" 9not !. IA*# Mar"7 /0# %'&( )a"t!: )etitioner, :not in this case, challenges the constitutionality of C"! No" 131%A which +rohi*its the inter+rovincial movement of cara*aos without first, com+lying the requirements of said order, +articularly the age" 7he said C"! also +rovides that the seized +ro+erty shall *e distri*uted to charita*le institutions and other similar institutions as the Chairman of the National <eat 'ns+ection Commission Pmay see fitQ, in the case of cara*eef, and to deserving farmers through dis+ersal as the =irector of Animal 'ndustry Pmay see fitQ, in the case of cara*aos" !n January &6, &5#$, :not trans+orted si/ cara*aos in a +um+ *oat from <as*ate to 'loilo when the same were confiscated *y the +olice station commander of Barotac Nuevo, 'loilo for the violation of C"! 131%A" a case was then filed *y :not questioning the validity of C"! 131%A and also for the recovery of the cara*aos" I!!ue!: &" 9!N C"! No" 131%A is constitutional" 3" 9!N there is a valid delegation of legislative +owers with regard to the distri*ution of cara*eef and cara*aos" +eld: &" No, C"! 131%A is not constitutional" 7he e/ecutive defined the +rohi*ition, convicted the +etitioner and immediately im+osed +unishment, which was carried out forthright" =ue +rocess was not +ro+erly o*served therefore" 't cannot also *e said that the said order is a valid e/ercise of +olice +ower *ecause although the su*ject of C"! 131%A is lawful, the means em+loyed to meet the ends are not justifia*le" 'n this case, the reasona*le connection *etween the means em+loyed and the +ur+ose sought to *e achieved *y the questioned measure is missing" 3" 7here is no valid delegation of legislative +ower *ecause of the +hrase Pmay see fitQ which leaves discretion u+on the Chairman of the National <eat 'ns+ection Commission and the =irector of Animal 'ndustry to choose the su*jects of distri*ution" 't is laden with +erilous o++ortunities for +artiality and a*use, and even corru+tion" 7here are no sufficient standard and reasona*le guidelines which the said officers must o*serve when ma,ing their distri*ution" 7here o+tions, therefore, are a++arently *oundless" Pelae: !. Auditor General# 4e"e,ber /;# %'8<

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)A*TS: rom (e+t F$ to !ct 35, &51$, the )resident 2<arcos4 issued e/ecutive orders creating 66 munici+alities R this is +ur+ortedly in +ursuant to (ec 1# of the Revised Administrative Code which +rovides that the )resident of the )hili++ines may *y e/ecutive order define the *oundary, or *oundaries, of any +rovince, su*%+rovince, munici+ality, Itownshi+J munici+al district or other +olitical su*division, and increase or diminish the territory com+rised therein, may divide any +rovince into one or more su*+rovincesS7he H) Cmmanuel )elaez and a ta/+ayer filed a s+ecial civil action to +rohi*it the auditor general from dis*ursing funds to *e a++ro+riated for the said munici+alities" )elaez claims that the C!s are unconstitutional" ;e said that (ec 1# of the RAC has *een im+liedly re+ealed *y (ec 6 of RA 360F which +rovides that *arrios may Pnot *e created or their *oundaries altered nor their names changedQ e/ce+t *y Act of Congress or of the corres+onding +rovincial *oard Pu+on +etition of a majority of the voters in the areas affectedQ and the Precommendation of the council of the munici+ality or munici+alities in which the +ro+osed *arrio is situated"Q )elaez argues, accordingly8 P'f the )resident, under this new law, cannot even create a *arrio, can he create a munici+ality which is com+osed of several *arrios, since *arrios are units of munici+alities@Q 7he Auditor General countered that only *arrios are *arred from *eing created *y the )resident" <unici+alities are e/em+t from the *ar and that t a munici+ality can *e created without creating *arrios" C/isting *arrios can just *e +laced into the new munici+ality" 7his theory overloo,s, however, the main im+ort of )elaezT argument, which is that the statutory denial of the +residential authority to create a new *arrio im+lies a negation of the *igger +ower to create munici+alities, each of which consists of several *arrios" ISSUE: 9hether or not Congress has delegated the +ower to create *arrios to the )resident *y virtue of (ec 1# of the RAC" ;C-=8 Although Congress may delegate to another *ranch of the government the +ower to fill in

the details in the e/ecution, enforcement or administration of a law, it is essential, to forestall a violation of the +rinci+le of se+aration of +owers, that said law8 2a4 *e com+lete in itself G it must set forth therein the +olicy to *e e/ecuted, carried out or im+lemented *y the delegate G and 2*4 fi/ a standard G the limits of which are sufficiently determinate or determina*le G to which the delegate must conform in the +erformance of his functions" 'ndeed, without a statutory declaration of +olicy, the delegate would, in effect, ma,e or formulate such +olicy, which is the essence of every lawB and, without the aforementioned standard, there would *e no means to determine, with reasona*le certainty, whether the delegate has acted within or *eyond the sco+e of his authority" (ection 1# of the Revised Administrative Code does not meet these well settled requirements for a valid delegation of the +ower to fi/ the details in the enforcement of a law" 't does not enunciate any +olicy to *e carried out or im+lemented *y the )resident" Neither does it give a standard sufficiently +recise to avoid the evil effects a*ove referred to" 'n the case at *ar, the +ower to create munici+alities is eminently legislative in character not administrative"

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Ea!tern S7ippin. Line! !. P$EA# $"tober %&# %'&& But the +etitioner questions the validity of <emorandum Circular No" 3 itself as violative of the +rinci+le of non%delegation of legislative +ower" 't contends that no authority had *een given the )!CA to +romulgate the said regulationB and even with such authorization, the regulation re+resents an e/ercise of legislative discretion which, under the +rinci+le, is not su*ject to delegation" 7he authority to issue the said regulation is clearly +rovided in (ection $2a4 of C/ecutive !rder No" 050, reading as follows8 """ 7he governing Board of the Administration 2)!CA4, as hereunder +rovided shall +romulgate the necessary rules and regulations to govern the e/ercise of the adjudicatory functions of the Administration 2)!CA4" (imilar authorization had *een granted the National (eamen Board, which, as earlier o*served, had itself +rescri*ed a standard shi++ing contract su*stantially the same as the format ado+ted *y the )!CA" 7he second challenge is more serious as it is true that legislative discretion as to the su*stantive contents of the law cannot *e delegated" 9hat can *e delegated is the discretion to determine how the law may *e enforced, not what the law shall *e" 7he ascertainment of the latter su*ject is a +rerogative of the legislature" 7his +rerogative cannot *e a*dicated or surrendered *y the legislature to the delegate"

Edu !. Eri"ta# $"tober /;# %'(0 AC7(8 )etitioner Romeo Cdu, the -and 7rans+ortation Commissioner issued Administrative !rder No" 3, which too, effect on A+ril &0, &55F, which +rovides as follows8 P No motor vehicles of whatever style, ,ind, ma,e, class or denomination shall *e registered if not equi++ed with reflectors" (uch reflectors shall either *e factory *uilt%in%reflector 7he luminosity shall have an commercial glass reflectors, reflection ta+e or luminous +aint"

intensity to *e maintained visi*le and clean at all times such that if struc, *y a *eam of light shall *e visi*le &FF meters away at night"Q 7hen came a section on dimensions, +lacement and color" As to dimensions the following is +rovided for8 PGlass reflectors% not less than 6 inches in diameter or not less than 6 inches squareB Reflectorized ta+e% at least 6 inches wide and &3 inches long" 7he +ainted or ta+ed area may *e *igger at the discretion of the vehicle owner" )rovision is then made as to how such reflectors are to *e +laced, installed, +asted or +ainted" 7here is the further requirement that in addition to such reflectors there shall *e installed, +asted or +ainted four

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reflectors on each side of the motor vehicle +arallel to those installed, +asted or +ainted in front and those in the rear end of the *ody thereof" 7he color required of each reflectors, whether *uilt%in, commercial glass, reflectorized ta+e or reflectorized +aint +laced in the front +art of any motor vehicle shall *e am*er or yellow and those +laced on the sides and in the rear shall all *e red" PNon com+liance with the requirements contained in this !rder shall *e sufficient cause to refuse registration of the motor vehicle affected and if already registered, its registration may*e sus+ended in +ursuance of the +rovisions of (ection &1 or RA $&61B )rovided, however, that in the case of the violation of (ection &2a4 and 2*4 and +aragra+h 2#4 (ection 6 hereof, a fine of not less than ten nor more than fifty +esos shall *e im+osed" 't is not *e lost sight of that under Re+u*lic Act no" $&61, of which the Reflector -aw is an amendment, +etitioner, as the -and 7rans+ortation Commissioner, may, with the a++roval of the (ecretary of )u*lic 9or,s and Communication, issue rules and regulations for its im+lementation for as long as they do not conflict with its +rovision" 't is li,ewise an e/+ress +rovision of the a*ove statute that for a violation of any of its +rovisions or regulations +romulgated +ursuant thereto a fine of not less than )&F nor less than )DF could *e im+osed" Res+ondent Galo on his *ehalf and that of other motorist filed on <ay 3F, &50F a suit for certiorari and +rohi*ition with +reliminary injunction assailing the validity of the challenged Act as an invalid e/ercise of the +olice +ower, for *eing violative of the due +rocess clause" 7his he followed on <ay 3#, &50F with a manifestation wherein he sought as an alternative remedy that, in the event that res+ondent Judge Cricta would hold said statuted constitutional, Administrative !rder No" 3 of the -and 7rans+ortation Commissioner, now +etitioner, im+lementing such legislation *e nullified as an undue e/ercise of legislative +ower" 7here was a hearing on the +lea for the issuance of writ of +reliminary injunction held on <ay 30, &50F where *oth +arties were duly re+resented, *ut no evidence was +resented" 7he ne/t day, on <ay 3#, &50F, res+ondent Judge ordered the issuance of +reliminary injunction directed against the enforcement of such administrative order"

'((EC 9!N there has *een undue delegation of legislative +ower which as a result of such Administrative !rder issued in furtherance of the delegated +ower is null and void@

;C-=8 't is a fundamental +rinci+le flowing from the doctrine of se+aration of +owers that Congress may not delegate its legislative +ower to the two other *ranches of government, su*ject to the e/ce+tion that local governments may over local affairs +artici+ate in its e/ercise" 9hat cannot *e delegated is the authority under the Constitution to ma,e laws and to alter and re+eal themB the

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test is the com+leteness of the statute in all its terms and +rovisions when it leaves the hands of the legislature" 7o determine whether or not there is an undue delegation of legislative +ower the inquiry must *e directed to the sco+e and definiteness of the measure enacted" 7he legislature does not a*dicate its functions when it descri*es what jo* must *e done, who is to do it, and what is the sco+e of his authority" or a com+le/ economy, that may indeed *e the only way in which the legislative +rocess can go forward" A distinction has rightfully *een made *etween delegation of +ower to ma,e the laws which necessarily involves a discretion as to what it shall *e, which constitutionally may not *e done, and delegation of authority or discretion as to its e/ecution to e/ercised under and in +ursuance of the law, to which no valid o*jection call *e made" 7he Constitution is thus not to *e regarded as denying the legislature the necessary resources of fle/i*ility and +ractica*ility" 7o avoid the taint of unlawful delegation, there must *e a standard, which im+lies at the very least that the legislature itself determines matters of +rinci+le and lay down fundamental +olicy" !therwise, the charge of com+lete a*dication may *e hard to re+el" A standard thus defines legislative +olicy, mar,s its limits, its ma+s out its *oundaries and s+ecifies the +u*lic agency to a++ly it" 't indicates the circumstances under which the legislative command is to *e effected" 't is the criterion *y which legislative +ur+ose may *e carried out" 7hereafter, the e/ecutive or administrative office designated may in +ursuance of the a*ove guidelines +romulgate su++lemental rules and regulations" 7his is to adhere to the recognition given e/+ression *y Justice -aurel in a decision announced not long after the Constitution came into force and effect that the +rinci+le of non%delegation .has *een made to ada+t itself the com+le/ities of modern governments, giving rise to the ado+tion, within certain limits, of the +rinci+le of .su*ordinate legislation. not only in the Enited (tates and Cngland *ut in +ractically all modern governments".
$$

;e continued8 .Accordingly, with the growing

com+le/ity of modern life, the multi+lication of the su*jects of governmental regulation, and the increased difficulty of administering the laws, there is a constantly growing tendency toward the delegation of greater +owers *y the legislature and toward the a++roval of the +ractice *y the courts". $D Consistency with the conce+tual a++roach requires the reminder that what is delegated is authority non%legislative in character, the com+leteness of the statute when it leaves the hands of Congress *eing assumed 9;CRC !RC, the writs of certiorari and +rohi*ition +rayed for are granted, the orders of <ay 3#, &50F of res+ondent Judge for the issuance of a writ of +reliminary injunction, the writ of +reliminary injunction of June &, &50F and his order of June 5, &50F denying reconsideration are annulled and set aside" Res+ondent Judge is li,ewise directed to dismiss the +etition for certiorari and +rohi*ition filed *y res+ondent 7eddy C" Galo, there *eing no cause of action as the Reflector -aw and Administrative !rder No" 3 of +etitioner have not *een shown to *e tainted *y invalidity" 9ithout +ronouncement as to costs"

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3eltran !. Se"retary o5 +ealt7# -o e,ber /<# /00< acts8 'n January of &55$, the New 7ro+ical <edicine oundation, with the assistance of the E"(" Agency for 'nternational =evelo+ment 2E(A'=4 released its final re+ort of a study on the )hili++ine *lood *an,ing system entitled P)roject to Cvaluate the (afety of the )hili++ine Blood Ban,ing (ystem"Q 't was revealed that of the *lood units collected in &553, 1$"$ U were su++lied *y commercial *lood *an,s, &$"DU *y the )NRC, &6"0U *y government hos+ital%*ased *lood *an,s, and 0"$U *y +rivate hos+ital%*ased *lood *an,s B showing that the )hili++ines heavily relied on commercial sources of *lood" 't was further found, among other things, that *lood sold *y +ersons to *lood commercial *an,s are three times more li,ely to have any of the four 2$4 tested infections or *lood transfusion transmissi*le diseases, namely, malaria, sy+hilis, ;e+atitis B and Acquired 'mmune =eficiency (yndrome 2A'=(4 than those donated to )NRC" Re+u*lic Act No" 00&5 or the National Blood (ervices Act of &55$ was then enacted into law on A+ril 3, &55$" 7he Act see,s to +rovide an adequate su++ly of safe *lood *y +romoting voluntary *lood donation and *y regulating *lood *an,s in the country" !ne of the +rovisions of the said act was the +hasing out of commercial *lood *an,s within 3 years from its effectivity" Petitioner!# "o,pri!in. t7e ,ajority o5 t7e 3oard o5 4ire"tor! o5 t7e P7ilippine A!!o"iation o5 3lood 3an=! a!!ail t7e "on!titutionality o5 2A ((%' on the ground among others that it is an im+ro+er and unwarranted delegation of legislative +ower" According to +etitioners, the Act was incom+lete when it was +assed *y the -egislature, and the latter failed to fi/ a standard to which the (ecretary of ;ealth must conform in the +erformance of his functions" )etitioners also contend that the two%year e/tension +eriod that may *e granted *y the (ecretary of ;ealth for the +hasing out of commercial *lood *an,s +ursuant to (ection 0 of the Act constrained the (ecretary to legislate, thus constituting undue delegation of legislative +ower" 'ssue8 9;C7;CR !R N!7 (CC7'!N 0 ! -CG'(-A7'HC )!9CR ;eld8 No" 'n testing whether a statute constitutes an undue delegation of legislative +ower or not, it is usual to inquire whether the statute was com+lete in all its terms and +rovisions when it left the hands of the -egislature so that nothing was left to the judgment of the administrative *ody or any other a++ointee or delegate of the -egislature" C/ce+t as to matters of detail that may *e left to *e filled in *y rules and regulations to *e ado+ted or +romulgated *y e/ecutive officers and administrative *oards, an act of the -egislature, as a general rule, is incom+lete and hence invalid if it does not lay down any rule or definite standard *y which the administrative *oard may *e guided in the e/ercise of the discretionary +owers delegated to it" Re+u*lic Act No" 00&5 or the National Blood (ervices Act of &55$ is com+lete in itself" 't is clear from the +rovisions of the Act that the -egislature intended +rimarily to safeguard the health of the +eo+le and has mandated several measures to attain this o*jective" !ne of these is the +hase out of commercial *lood *an,s in the country" 7he law has sufficiently +rovided a definite standard for the guidance of the (ecretary of ;ealth in carrying out its +rovisions, that is, the +romotion of R"A" 00&5 C!N(7'7E7C( EN=EC =C-CGA7'!N !

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+u*lic health *y +roviding a safe and adequate su++ly of *lood through voluntary *lood donation" By its +rovisions, it has conferred the +ower and authority to the (ecretary of ;ealth as to its e/ecution, to *e e/ercised under and in +ursuance of the law" 7he (ecretary of ;ealth has *een given, under Re+u*lic Act No" 00&5, *road +owers to e/ecute the +rovisions of said Act" (+ecifically, (ection 36 of Administrative !rder No" 5 +rovides that the +hase%out +eriod for commercial *lood *an,s shall *e e/tended for another two years until <ay 3#, &55# P*ased on the result of a careful study and review of the *lood su++ly and demand and +u*lic safety"Q 7his +ower to ascertain the e/istence of facts and conditions u+on which the (ecretary may effect a +eriod of e/tension for said +hase%out can *e delegated *y Congress" 7he true distinction *etween the +ower to ma,e laws and discretion as to its e/ecution is illustrated *y the fact that the delegation of +ower to ma,e the law, which necessarily involves a discretion as to what it shall *e, and conferring an authority or discretion as to its e/ecution, to *e e/ercised under and in +ursuance of the law" 7he first cannot *e doneB to the latter no valid o*jection can *e made" &" Car*onilla vs" BAR, (e+tem*er &$, 3F&&

*. >ind! o5 Ad,ini!trati e 2ule! and 2e.ulation! %. 3PI Lea!in. *orporation !. *A# -o e,ber %&# /001 B-C attem+ts to convince the Court that Revenue Regulation &5%#1 is legislative rather than inter+retative in character and hence, should retroact to the date of effectivity of the law it see,s to inter+ret" Administrative issuances may *e distinguished according to their nature and su*stance8 legislative and inter+retative" A legislative rule is in the matter of su*ordinate legislation, designed to im+lement a +rimary legislation *y +roviding the details thereof" An inter+retative rule, on the other hand, is designed to +rovide guidelines to the law which the administrative agency is in charge of enforcing"I&DJ 7he Court finds the questioned revenue regulation to *e legislative in nature" (ection & of Revenue Regulation &5%#1 +lainly states that it was +romulgated +ursuant to (ection 300 of the N'RC" (ection 300 2now (ection 3$$4 is an e/+ress grant of authority to the (ecretary of inance to +romulgate all needful rules and regulations for the effective enforcement of the +rovisions of the N'RC" 'n )a+er 'ndustries Cor+oration of the )hili++ines v" Court of A++eals,I&1J the Court recognized that the a++lication of (ection 300 calls for none other than the e/ercise of quasi% legislative or rule%ma,ing authority" Herily, it cannot *e dis+uted that Revenue Regulation &5%#1 was issued +ursuant to the rule%ma,ing +ower of the (ecretary of legislative, and not inter+retative as alleged *y B-C" B-C further +osits that, assuming the revenue regulation is legislative in nature, it is invalid for want of due +rocess as no +rior notice, +u*lication and +u*lic hearing attended the issuance thereof" 7o su++ort its view, B-C cited C'R v" ortune 7o*acco, et al",I&0J wherein the Court inance, thus ma,ing it

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nullified a revenue memorandum circular which reclassified certain cigarettes and su*jected them to a higher ta/ rate, holding it invalid for lac, of notice, +u*lication and +u*lic hearing" 7he doctrine enunciated in ortune 7o*acco, and reiterated in C'R v" <ichel J" -huillier

)awnsho+, 'nc",I&#J is that when an administrative rule goes *eyond merely +roviding for the means that can facilitate or render less cum*ersome the im+lementation of the law and su*stantially increases the *urden of those governed, it *ehooves the agency to accord at least to those directly affected a chance to *e heard and, thereafter, to *e duly informed, *efore the issuance is given the force and effect of law" 'n -huillier and ortune 7o*acco, the Court invalidated the revenue memoranda concerned *ecause the same increased the ta/ lia*ilities of the affected ta/+ayers without affording them due +rocess" 'n this case, Revenue Regulation &5%#1 would *e *eneficial to the ta/+ayers as they are su*jected to lesser ta/es" more has no right to a refund" After u+holding the validity of Revenue Regulation &5%#1, the Court now resolves whether its a++lication should *e +ros+ective or retroactive" 7he +rinci+le is well entrenched that statutes, including administrative rules and regulations, o+erate +ros+ectively only, unless the legislative intent to the contrary is manifest *y e/+ress terms or *y necessary im+lication"I&5J 'n the +resent case, there is no indication that the revenue regulation may o+erate retroactively" or after the said date"Q urthermore, there is an e/+ress +rovision stating that it Pshall ta,e effect on January &, &5#0,Q and that it Pshall *e a++lica*le to all leases written on Being clear on its +ros+ective a++lication, it must *e given its literal meaning and a++lied without further inter+retation"I3FJ 7hus, B-C is not in a +osition to invo,e the +rovisions of Revenue Regulation &5%#1 for lease rentals it received +rior to January &, &5#0" 't is also a+t to add that ta/ refunds are in the nature of ta/ e/em+tions" As such, these are regarded as in derogation of sovereign authority and are to *e strictly construed against the +erson or entity claiming the e/em+tion" 7he *urden of +roof is u+on him who claims the e/em+tion and he must *e a*le to justify his claim *y the clearest grant under Constitutional or statutory law, and he cannot *e +ermitted to rely u+on vague im+lications"I3&J justifies a ta/ refund" 't is not necessary to rule on the remaining issues" 9;CRC !RC, the +etition for review is here*y =CN'C=, and the assailed decision and resolution of the Court of A++eals are A (! !R=CRC=" 'R<C=" No +ronouncement as to costs" Nothing that B-C has raised )etitioner, in fact, is invo,ing Revenue Regulation &5%#1 as the very *asis of its claim for refund" 'f it were invalid, then +etitioner all the

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%. *o,,i!!ioner o5 Internal 2e enue Au.u!t /'# %''8 A. Requisites for Halidity

!. *A ?3ello!illo@! Separate $pinionA#

C/ecutive (ecretary vs" (outhwing ;eavy 'ndustries, e*ruary 3F, 3FF1 AC7(8 7his instant consolidated +etitions see, to annul the decisions of the Regional 7rial Court which declared Article 3, (ection 6"& of C/ecutive !rder &D1 unconstitutional" (aid C! &D1 +rohi*its the im+ortation of used vehicles in the country inclusive of the (u*ic Bay ree+ort None" !n =ecem*er &3, 3FF3, )resident Gloria <aca+agal Arroyo issued C/ecutive !rder &D1 entitled .)roviding for a com+rehensive industrial +olicy and directions for the motor vehicle develo+ment +rogram and its im+lementing guidelines".7he said +rovision +rohi*its the im+ortation of all ty+es of used motor vehicles in the country including the (u*ic Bay ree+ort, or the ree+ort None, su*ject to a few e/ce+tions" Consequently, three se+arate actions for declaratory relief were filed *y (outhwing ;eavy 'ndustries 'nc, (u*ic 'ntegrated <acro Hentures Cor+, and <otor Hehicle 'm+orters Association of (u*ic Bay ree+ort 'nc" +raying that judgment *e rendered declaring Article 3, (ection6"& of the C! &D1 unconstitutional and illegal" 7he R7C rendered a summary judgment declaring that Article 3, (ection 6"& of C! &D1 constitutes an unlawful usur+ation of legislative +ower vested *y the Constitution with Congress and that the +roviso is contrary to the mandate of Re+u*lic Act 03302RA 03304 or the Bases Conversion and =evelo+ment Act of &553 which allows the free flow of goods and ca+ital within the ree+ort" 7he +etitioner a++ealed in the CA *ut was denied on the ground of lac, of any statutory *asis for the )resident to issue the same" 't held that the +rohi*ition on the im+ortation of use motor vehicles is an e/ercise of +olice +ower vested on the legislature and a*sent any ena*ling law, the e/ercise thereof *y the )resident through an e/ecutive issuance is void" '((EC(8 &"9hether or not the )rivate Res+ondents have the legal standing in questionaing the said law@ 3"9hether or not Article3, (ection 6"& of C! &D1 is a valid e/ercise of the )residentTs quasi% legislative +ower" ;C-=8

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&":C(" )etitioners argue that res+ondents will not *e affected *y the im+ortation *an considering that their certificate of registration and ta/ e/em+tion do not authorize them to engage in the im+ortation and?or trading of used cars" 7he esta*lished rule that the constitutionality of a law or administrative issuance can *e challenged *y one who will sustain a direct injury as a result of its enforcementhas *een satisfied in the instant case" 7he *road su*ject of the +rohi*ited im+ortation is Pall ty+es of used motor vehicles"Q Res+ondents would definitely suffer a direct injury from the im+lementation of C! &D1 *ecause their certificate of registration and ta/ e/em+tion authorize them to trade and?or im+ort new and used motor vehicles and s+are +arts, e/ce+t Pused cars"Q !ther ty+es of motor vehicles im+orted and?or traded *y res+ondents and not falling within the category of used cars would thus *e su*jected to the *an to the +rejudice of their *usiness" Endou*tedly, res+ondents have the legal standing to assail the validity of C! &D1" 3" :C( BE7 )olice +ower is inherent in a government to enact laws, within constitutional limits, to +romote the order, safety, health, morals, and general welfare of society" 't is lodged +rimarily with the legislature" By virtue of a valid delegation of legislative +ower, it may also *e e/ercised *y the )resident and administrative *oards, as well as the lawma,ing *odies on all munici+al levels, including the *arangay" (uch delegation confers u+on the )resident quasi%legislative +ower which may *e defined as the authority delegated *y the law%ma,ing *ody to the administrative *ody to ado+t rules and regulations intended to carry out the +rovisions of the law and im+lement legislative +olicy +rovided that it must com+ly with the following requisites8 2&4 'ts +romulgation must *e authorized *y the legislatureB 234 't must *e +romulgated in accordance with the +rescri*ed +rocedureB 264 264 't must *e within the sco+e of the authority given *y the legislatureB and 2$4 't must *e reasona*le"

7he first requisite was actually satisfied since C! &D1 has *oth constitutional and statutory *ases" Anent the second requisite, that the order must *e issued or +romulgated in accordance with the +rescri*ed +rocedure, the +resum+tion is that the said e/ecutive issuance duly com+lied with the +rocedures and limitations im+osed *y law since the res+ondents never questioned the +rocedure that +aved way for the issuance of C! &D1 *ut instead, what they challenged was the a*sence of su*stantive due +rocess in the issuance of the C!" 'n the third requisite, the Court held that the im+ortation *an runs afoul with the

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third requisite as administrative issuances must not *e ultra vires or *eyond the limits of the authority conferred" 'n the instant case, the su*ject matter of the laws authorizing the )resident to regulate or for*id im+ortation of used motor vehicles, is the domestic industry" C! &D1, however, e/ceeded the sco+e of its a++lication *y e/tending the +rohi*ition on the im+ortation of used cars to the ree+ort, which RA 0330, considers to some e/tent, a foreign territory" 7he domestic industry which the C! see,s to +rotect is actually the .customs territory. which is defined under the Rules and Regulations 'm+lementing RA 0330 which states8 .the +ortion of the )hili++ines outside the (u*ic Bay are in force and effect". ree+ort where the 7ariff and Customs Code of the )hili++ines and other national tariff and customs laws

Regarding the fourth requisite, the Court finds that the issuance of C! is unreasona*le" (ince the nature of C! &D1 is to +rotect the domestic industry from the deterioration of the local motor manufacturing firms, the Court however, finds no logic in all the encom+assing a++lication of the assailed +rovision to the ree+ort None which is outside the customs territory of the )hili++ines" As long as the used motor vehicles do not enter the customs territory, the injury or harm sought to *e +revented or remedied will not arise" 7he Court finds that Article 3, (ection 6"& of C! &D1 is H!'= insofar as it is made a++lica*le within the secured fenced%in former (u*ic Naval Base area *ut is declared HA-'= insofar as it a++lies to the customs territory or the )hili++ine territory outside the +resently secured fenced%in former (u*ic Naval Base area as stated in (ection &"& of C! 50%A 2an C! e/ecuted *y )res" )rivilege within the (u*ic idel H" Ramos in &556 +roviding the 7a/ and =uty ree ree+ort None4" ;ence, used motor vehicles that come into the

)hili++ine territory via the secured fenced%in former (u*ic Naval Base area may *e stored, used or traded therein, or e/+orted out of the )hili++ine territory, *ut they cannot *e im+orted into the )hili++ine territory outside of the secured fenced%in former (u*ic Naval Base area" )etitions are )AR7'A--: GRAN7C= +rovided that said +rovision is declared HA-'= insofar as it a++lies to the )hili++ine territory outside the +resently fenced%in former (u*ic Naval Base area and H!'= with res+ect to its a++lication to the secured fenced%in former (u*ic Naval Base area"

&" 3.

=agan vs" )hili++ine Racing Commission, e*ruary &3, 3FF5

act%finding and Rate% i/ing

-ovina vs" <oreno, Novem*er 35, &516 acts8 Numerous residents of <aca*e*e, )am+anga com+lained that a++ellees had *loc,ed the .(a+ang Bulati., a naviga*le river in the same munici+ality and as,ed that the o*structions *e ordered removed, under the +rovisions of Re+u*lic Act No" 3FD1" After notice and hearing to the

Page 24 of 37

+arties, the said (ecretary of )u*lic 9or,s and Communications found the constructions to *e a +u*lic nuisance in naviga*le waters, and ordered the land owners, s+ouses -ovina, to remove five 2D4 closures of (a+ang Bulati" After recei+t of the decision, the a++ellees filed a +etition in C ' of <anila to restrain the (ecretary from enforcing his decision" 7he trial court, after due hearing, granted a +ermanent injunction" 't held that Re+u*lic Act No" 3FD1 is unconstitutional and that (a+ang Bulati is not a naviga*le river *ut a +rivate stream" 7he a++elleesT contention is that Re+u*lic Act No" 3FD1 is unconstitutional *ecause it invests the (ecretary of )u*lic 9or,s and Communications with swee+ing, unrestrained, final and una++eala*le authority to +ass u+on the issues of whether a river or stream is +u*lic and naviga*le, whether a dam encroaches u+on such waters and is constitutive as a +u*lic nuisance, and whether the law a++lies to the state of facts, there*y Constituting an alleged unlawful delegation of judicial +ower to the (ecretary of )u*lic 9or,s and Communications"

'ssue8 9hether or not there is an unlawful delegation of judicial +ower"

;eld8 7he contentions of the a++ellees are not tena*le" R"A" 3FD1 merely em+owers the (ecretary to remove unauthorized o*structions or encroachments u+on +u*lic streams, constructions that no +rivate +erson was anyway entitled to ma,e, *ecause the *ed of naviga*le streams is +u*lic +ro+erty, and ownershi+ thereof is not acquira*le *y adverse +ossession" 't is true that the e/ercise of the (ecretary>s +ower under the Act necessarily involves the determination of some questions of fact, such as the e/istence of the stream and its +revious naviga*le characterB *ut these functions, whether judicial or quasi%judicial, are merely incidental to the e/ercise of the +ower granted *y law to clear naviga*le streams of unauthorized o*structions or encroachments, and authorities are clear that they are, validly confera*le u+on e/ecutive officials +rovided the +arty affected is given o++ortunity to *e heard, as is e/+ressly required *y Re+u*lic Act No" 3FD1, section 3" 7he mere fact that an officer is required *y law to inquire the e/istence of certain facts and to a++ly the law thereto in order to determine what his official conduct shall *e and the fact that these acts may affect +rivate, rights do not constitute an e/ercise of judicial +owers" Accordingly, a statute may give to non%judicial officers the +ower to declare the e/istence of facts which call into o+eration its +rovisions, and similarly may grant to commissioners and other su*ordinate officer, +ower to ascertain and determine a++ro+riate facts as a *asis for +rocedure in the enforcement of +articular laws" 't is noteworthy that Re+u*lic Act 31FD authorizes removal of the unauthorized di,es either as .+u*lic nuisances or as +rohi*ited constructions. on +u*lic naviga*le streams, and those of a++ellees clearly are in the latter class" 'n fine, it is held that Re+u*lic Act No" 3FD1 does not constitute an unlawful delegation of judicial +ower to the (ecretary of )u*lic 9or,sB that the findings of fact of the (ecretary of )u*lic 9or,s under Re+u*lic Act No" 3FD1 should *e res+ected in the a*sence of illegality, error of law, fraud, or im+osition, so long as

Page 25 of 37

the said, findings are su++orted *y su*stantial evidence su*mitted to him" 7he decision a++ealed from is reversed, and the writs of injunction issued therein are annulled and set aside" Higan Clectric -ight Com+any, 'nc" vs" )u*lic (ervice Commission, January 6F, &51$ AC7(8 7his is an original action for certiorari to annul an order of res+ondent )u*lic (ervice Commission ordering the reduction of rates of Higan Clectric -ight Co" )(C averred that Higan Clectric ma,ing a net o+erating +rofit in e/cess of the allowa*le return of &3U on its invested ca+ital, and that it is in the +u*lic interest and in consonance with (ection 6of Re+u*lic Act No" 6F$6 that reduction of its rates to the e/tent of its e/cess revenue *e +ut into effect immediately" Higan Clectric contended that the reduction of rate is unconstitutional *ecause it has *een ordered without notice and hearing, thus issued without due +rocess of law" 'n defense, )(C maintains that rate%fi/ing is a legislative functionB that legislative or rule%ma,ing +owers may constitutionally *e e/ercised without +revious notice of hearingB and that the decision in Ang 7i*ay vs" Court of 'ndustrial Relations215 )hil", 16D4 G in which we held that such notice and hearing are essential to the validity of a decision of the )u*lic (ervice Commission G is not in +oint *ecause, unli,e the order com+lained of G which res+ondent claims to *e legislative in nature G the Ang 7i*ay case referred to a +roceeding involving the e/ercise of judicial functions" '((EC8 9hether or not the Congress validly delegated legislative +ower to the )(C@ ;C-=8

No" Congress has not delegated, and cannot delegate legislative +owers to the )u*lic (ervice Commission" Consistently with the +rinci+le of se+aration of +owers, which underlies our constitutional system, legislative +owers may not *e delegated e/ce+t to local governments, and only tomatters +urely of local concern" ;owever, Congress may delegate toadministrative agencies of the government the +ower to su++ly the details in the e/ecution or enforcement of a +olicy laid down *y it which is com+lete in itself" (uch law is not deemed com+lete unless it lays down a standard or +attern sufficiently fi/ed or determinate, or, at least, determina*le without requiring another legislation, to guide the administrative *ody concerned in the +erformance of its duty to im+lement or enforce said )olicy" !therwise, there would *e no reasona*le means to ascertain whether or not said *ody has acted within the sco+e of its authority, and, as a consequence, the +ower of legislation would eventually *e e/ercised *y a *ranch of the Government other than that in which it is lodged *y the Constitution, in violation, not only of the allocation of +owers therein made, *ut, also, of the +rinci+le of se+aration of +owers" Although the rule%ma,ing +ower and even the +ower to fi/ ratesG when such rules and?or rates are meant to a++ly to all enter+rises of agiven ,ind throughout the )hili++ines G may +arta,e of a legislativecharacter, such is not the nature of the order com+lained of" 'ndeed, the same a++lies e/clusively to +etitioner herein" 9hat is more, it is +redicated u+on the finding of fact G *ased u+on a re+ort su*mitted *y the General Auditing !ffice G that +etitioner is ma,ing a +rofit of more than &3U of its invested ca+ital, which is denied *y +etitioner" !*viously, the latter is entitled to cross%e/amine the ma,er of said re+ort, and to introduce evidence to dis+rove the contents thereof and?or e/+lain or com+lement the same, as well as to refute the conclusion drawn therefrom *y the res+ondent" 'n other words, in ma,ing said finding of fact, res+ondent +erformed afunction+arta,ing of a quasi% judicial character the valid e/ercise of which demands +revious notice and hearing"

Page 26 of 37

)hilCom(at Cor+oration vs" Alcuaz, =ecem*er &#, &5#5 acts8 7he +etition *efore us see,s to annul and set aside an !rder & issued *y res+ondent Commissioner Jose -uis Alcuaz of the National 7elecommunications Commission" ;erein +etitioner is engaged in +roviding for services involving telecommunications" Charging rates for certain s+ecified lines that were reduced *y order of herein res+ondent Jose AlcuazCommissioner of the National 7elecommunications Commission" 7he rates were ordered to *e reduced *y fifteen +ercent 2&DU4 due to C/ecutive !rder No" D$1 which granted the N7C the +ower to fi/ rates" (aid order was issued without +rior notice and hearing"

Ender (ection D of Re+u*lic Act No" DD&$, +etitioner was e/em+t from the jurisdiction of the then )u*lic (ervice Commission, now res+ondent N7C" ;owever, +ursuant to C/ecutive !rder No" &51 issued on June &0, &5#0, +etitioner was +laced under the jurisdiction, control and regulation of res+ondent N7C

'ssue8 9hether or Not C"!" D$1 is unconstitutional"

;eld8 'n Higan Clectric -ight Co", 'nc" vs" )u*lic (ervice Commission the (u+reme Court said that although the rule%ma,ing +ower and even the +ower to fi/ rates% when such rules and?or rates are meant to a++ly to all enter+rises of a given ,ind throughout the )hili++ines%may +arta,e of a legislative character" Res+ondent Alcuaz no dou*t contains all the attri*utes of a quasi%judicial adjudication" oremost is the fact that said order +ertains e/clusively to +etitioner and to no other 7he res+ondent admits that the questioned order was issued +ursuant to its quasi%judicial functions" 't, however, insists that notice and hearing are not necessary since the assailed order is merely incidental to the entire +roceedings and, therefore, tem+orary in nature *ut the su+reme court said that 9hile res+ondents may fi/ a tem+orary rate +ending final determination of the a++lication of +etitioner, such rate%fi/ing order, tem+orary though it may *e, is not e/em+t from the statutory +rocedural requirements of notice and hearing 7he (u+reme Court (aid that it is clear that with regard to rate%fi/ing, res+ondent has no authority to ma,e such order without first giving +etitioner a hearing, whether the order *e tem+orary or +ermanent" 'n the Case at *ar the N7C didnTt scheduled hearing nor it did give any notice to the +etitioner" )hili++ine 'nterisland (hi++ing Association vs" CA, January 33, &550

Page 27 of 37

AC7( !n e*ruary 6, &5#1, shortly *efore the +residential elections, )resident erdinand C" <arcos, res+onding to the clamor of har*or +ilots for an increase in +ilotage rates, issued C/ecutive !rder No" &F##, )R!H'='NG !R EN' !R< AN= <!=' 'C= RA7C( !R )'-!7AGC (CRH'CC( RCN=CRC= 7! !RC'GN AN= C!A(79'(C HC((C-( 'N A-- )R'HA7C AN= )EB-'C )!R7(" 7he e/ecutive order increased su*stantially the rates of the e/isting +ilotage fees +reviously fi/ed *y the ))A" ;owever, the ))A refused to enforce the e/ecutive order on the ground that it had *een drawn hastily and without +rior consultationB that its enforcement would create disorder in the +orts as the o+erators and owners of the maritime vessels had e/+ressed o++osition to its im+lementationB and that the increase in +ilotage, as mandated *y it, was e/or*itant and detrimental to +ort o+erations" 7he Enited ;ar*or )ilots> Association of the )hili++ines, 'nc" 2E;)A)4 then announced its intention to im+lement C"!" No" &F## effective Novem*er &1, &5#1" E;)A) is the um*rella organization of various grou+s rendering +ilotage service in different +orts of the )hili++ines" 7he service consists of navigating a vessel from a s+ecific +oint, usually a*out two 234 miles off shore, to an assigned area at the +ier and vice versa" 9hen a vessel arrives, a har*or +ilot ta,es over the shi+ from its ca+tain to maneuver it to a *erth in the +ort, and when it de+arts, the har*or +ilot also maneuvers it u+ to a s+ecific +oint off shore" 7he setu+ is required *y the fact that each +ort has +eculiar to+ogra+hy with which a har*or +ilot is +resumed to *e more familiar than a shi+ ca+tain" 7his in turn drew a warning from the ))A that disci+linary sanctions would *e a++lied to those who would charge rates under C"!" No" &F##" 7he ))A instead issued <emorandum Circular No" $6%#1, fi/ing +ilotage fees at rates lower than those +rovided in C"!" No" &F##" Consequently, the E;)A) filed on January 0, &5#0 a com+laint for injunction with the Regional 7rial Court of <anila, against the then <inister of 7rans+ortation and Communications, ;ernando )erez, and ))A General <anager, )rimitivo (" (olis, Jr" 't sought a writ of +reliminary mandatory injunction for the immediate im+lementation of C"!" No" &F##, as well as a tem+orary restraining order to sto+ ))A officials from im+osing disci+linary sanctions against E;)A) mem*ers charging rates in accordance with C"!" No" &F##" 7he R7C of <anila issued a tem+orary restraining order, enjoining the ))A from threatening the E;)A), its officers and its mem*ers with sus+ension and other disci+linary action for collecting +ilotage fees +ursuant to C"!" No" &F##" !n e*ruary 31, &5##, while the case was +ending, the ))A issued Administrative !rder No" F3%##, entitled '<)-C<CN7'NG GE'=C-'NC( !N !)CN )'-!7AGC (CRH'CC" 7he ))A announced in its order that it was leaving to the contracting +arties, i"e", the shi++ing lines and the +ilots, the fi/ing of mutually acce+ta*le rates for +ilotage services, thus a*andoning the rates fi/ed *y it 2))A4 under <emorandum Circular No" $6%#1, as well as those +rovided in C"!" No" &F##" 7he E;)A) and <anila )ilotsT Association filed a +etition for certiorari filed *efore R7C% <anila, Branch 3 see,ing for the annulment of A"!" No" F3%##" 7he E;)A) and <)A, as +etitioners *elow, contended 2&4 that A"!" No" F3%## was issued without the *enefit of a +u*lic hearingB 234 that C"!" No" &F## had not *een re+ealed *y any other C/ecutive !rder or )residential =ecree and, therefore, should *e given effectB and 264 that A"!" No" F3%## contravened )"=" No" #D0" !n (e+tem*er #, &5#5, a writ of +reliminary injunction was issued *y the court, enjoining the ))A from im+lementing A"!" No" F3%## and, on !cto*er 31, &5#5, judgment was rendered in favor of the +etitioners therein"

Page 28 of 37

Res+ondents and the intervenors *elow filed a joint +etition for certiorari in the Court of A++eals 2CA G"R" () No" &5D0F4, assailing the decision of the trial court" But their +etition was dismissed for lac, of jurisdiction on the ground that the issue raised was +urely legal" 7he +arties se+arately filed +etitions for review *efore this Court" 7he first one, *y the ))A and its officers, was doc,eted as G"R" No" &FF&F5, while the second one, *y the intervenors, was doc,eted as G"R" No" &FF$#&" 7he +etition filed *y the government in G"R" No" &FF&F5 was dismissed for failure of +etitioners to show that the Court of A++eals committed a reversi*le error" !n the other hand, the +etition of the intervenors in G"R" No" &FF$#& was given due course" ollowing the denial of its +etition in G"R" No" &FF&F5, the ))A issued on July 6&, &553, Administrative !rder No" FD%53, +lacing har*or +ilots under the control of the ))A with res+ect to the scheduling and assignment of service of vessels" 7he ))A cited as justification .+ilotage delays " " " under the set%u+ where +rivate res+ondents 2E;)A) L <)A4 assign the +ilots" 'ntentionally or otherwise, several vessels do not receive the +ilotage service +rom+tly, causing them o+erational disru+tions and additional e/+enses?costs". )etitioners contend that C"!" No" &F## was merely an administrative issuance of then )resident erdinand C" <arcos and, as such, it could *e su+erseded *y an order of the ))A" 7hey argue that to consider C"!" No" &F## a statute would *e to de+rive the ))A of its +ower under its charter to fi/ +ilotage rates"

'((EC

9hether or not the )resident erdinand <arcos, in the e/ercise of his legislative +ower, is authorized to fi/ +ilotage rates

RE-'NG :es" )resident <arcos is authorized to fi/ +ilotage rates 7he contention of the +etitioners has no merit" 7he fi/ing of rates is essentially a legislative +ower" 'ndeed, the great *attle over the validity of the e/ercise of this +ower *y administrative agencies was fought in the &53Fs on the issue of undue delegation +recisely *ecause the +ower delegated was legislative" 7he growing com+le/ity of modern society, the multi+lication of the su*jects of governmental regulations and the increased difficulty of administering the laws made the creation of administrative agencies and the delegation to them of legislative +ower necessary" 7here is no *asis for +etitioners> argument that rate fi/ing is merely an e/ercise of administrative +owerB that if )resident <arcos had +ower to revise the rates +reviously fi/ed *y the ))A through the issuance of C"!" No" &F##, the ))A could in turn revise those fi/ed *y the )resident, as the ))A actually did in A"!" No" $6%#1, which fi/ed lower rates of +ilotage fees, and even entirely left the fees to *e +aid for +ilotage to the agreement of the +arties to a contract" 7he orders +reviously issued *y the ))A were in the nature of su*ordinate legislation, +romulgated *y it in the e/ercise of delegated +ower" As such these could only *e amended or revised *y law, as the )resident did *y C"!" No" &F##" 't is not an answer to say that C"!" No" &F## should not *e considered a statute *ecause that would im+ly the withdrawal of +ower from the ))A" 9hat determines whether an act is a law or an administrative issuance is not its form *ut its nature" ;ere, as we have already said, the +ower to fi/ the rates of charges for services, including +ilotage service, has always *een regarded as legislative in character"

Page 29 of 37

Nor is there any dou*t of the +ower of the then )resident to fi/ rates" !n e*ruary 6, &5#1, when he issued C"!" No" &F##, )resident <arcos was authorized under Amendment No" 1 of the &506 Constitution to e/ercise legislative +ower, just as he was under the original &506 Constitution, when he issued )"=" N!" #D0 which created the ))A, endowing it with the +ower to regulate +ilotage service in )hili++ine +orts" Although the +ower to fi/ rates for +ilotage had *een delegated to the ))A, it *ecame necessary to rationalize the rates of charges fi/ed *y it through the im+osition of uniform rates" 7hat is what the )resident did in +romulgating C"!" No" &F##" As the )resident could delegate the ratema,ing +ower to the ))A, so could he e/ercise it in s+ecific instances without there*y withdrawing the +ower vested *y )"=" No" #D0, (ection 3F2a4 in the ))A .to im+ose, fi/, +rescri*e, increase or decrease such rates, charges or fees""" for the services rendered *y the Authority or *y any +rivate organization within a )ort =istrict". 't is worthy to note that C"!" No" &F## +rovides for adjusted +ilotage service rates without withdrawing the +ower of the ))A to im+ose, +rescri*e, increase or decrease rates, charges or fees" 7he reason is *ecause C"!" N!" &F## is not meant sim+ly to fi/ new +ilotage rates" 'ts legislative +ur+ose is the .rationalization of +ilotage service charges, through the im+osition of uniform and adjusted rates for foreign and coastwise vessels in all )hili++ine +orts". 9e conclude that C"!" No" &F## is a valid statute and that the ))A is duty *ound to com+ly with its +rovisions" 7he ))A may increase the rates *ut it may not decrease them *elow those mandated *y C"!" No" &F##" inally, the ))A cannot refuse to im+lement C"!" No" &F## or alter it as it did in +romulgating <emorandum Circular No" $6%#1" <uch less could the ))A a*rogate the rates fi/ed and leave the fi/ing of rates for +ilotage service to the contracting +arties as it did through A" !" No" F3%##, (ection 6" 7heretofore the +olicy was one of governmental regulation of the +ilotage *usiness" By leaving the matter to the determination of the +arties, the ))A jettisoned this +olicy and changed it to laissez%faire, something which only the legislature, or whoever is vested with lawma,ing authority, could do" &" )hili++ine Consumers oundation, 'nc" vs" (ecretary of =CC(, August 6&, &5#0

*. Construction and Administrative 'nter+retation Hictorias <illing Com+any, 'nc" vs" (ocial (ecurity Commission, <arch F0, &513 acts8 !n !cto*er &D, &5D#, the (ocial (ecurity Commission issued its Circular No" 33 of the following tenor8 .Cffective Novem*er &, &5D#, all Cm+loyers in com+uting the +remiums due the (ystem, will ta,e in"""to consideration and include in the Cm+loyee>s remuneration all *onuses and overtime +ay, as well as the cash value of other media of remuneration" All these will com+rise the Cm+loyee>s remuneration or earnings, u+on which the 6%&?3U and 3%&?3U contri*utions will *e *ased, u+ to a ma/imum of )DFF for any one month". )etitioner Hictorias <illing Com+any, 'nc" wrote the (ocial (ecurity Commission in effect +rotesting against the circular as contradictory to a +revious Circular No" 0, dated !cto*er 0, &5D0 e/+ressly e/cluding overtime +ay and *onus in the com+utation of the em+loyers> and em+loyees> res+ective monthly +remium contri*utions" <oreover, it contended that due notice via +u*lication was not com+lied with" 'ssue8 2&4 9hether or not Circular No" 33 is a rule or regulation, as contem+lated in (ection $2a4 of Re+u*lic Act &&1& em+owering the (ocial (ecurity Commission .to ado+t, amend and re+eal

Page 30 of 37

su*ject to the a++roval of the )resident such rules and regulations as may *e necessary to carry out the +rovisions and +ur+oses of this Act". ;eld8 't will thus *e seen that whereas +rior to the amendment, *onuses, allowances, and overtime +ay given in addition to the regular or *ase +ay were e/+ressly e/cluded, or e/em+ted from the definition of the term .com+ensation., such e/em+tion or e/clusion was deleted *y the amendatory law" 't thus *ecame necessary for the (ocial (ecurity Commission to inter+ret the effect of such deletion or elimination" Circular No" 33 was, therefore, issued to a++rise those concerned of the inter+retation or understanding of the Commission, of the law as amended, which it was its duty to enforce" 't did not add any duty or detail that was not already in the law as amended" 't merely stated and circularized the o+inion of the Commission as to how the law should *e 7ayug Rural Ban, vs" Central Ban,, Novem*er 3#, &5#1 AC7(8

)laintiff%a++ellee is a *an,ing cor+oration in 7ayug, )angasinan" =uring the +eriod from =ecem*er 3#, &513 to July 6F, &516, it o*tained thirteen 2&64 loans from defendant%a++ellant Central Ban, totaling )#&6,FFF" !n =ecem*er 36, &51$, Central Ban, issued <emorandum Circular No" =-C%#, im+osing an additional +enalty interest rate of ten +ercent 2&FU4 +"a" on all +ast due loans of rural *an,s, *eginning January $, &51D" (aid Circular was enforced on all rural *an,s effective July $, &51D"

!n June 30, &515, 7ayug sued Central Ban, in C '%<anila to recover the &FU im+osed +enalty amounting to )&1,#0$"F0, and to restrain the same from further im+osing the +enalty" Central Ban, filed a counterclaim for the outstanding *alance and overdue accounts of the +laintiff%a++ellee, including accrued interest and the &FU +enalty" =efendant%a++ellant justified that the +enalty was legally im+osed under the Rules and Regulations Governing Rural Ban,s +romulgated *y the <onetary Board on (e+tem*er D, &5D#, under Re+u*lic Act No" 03F" 7ayug +rayed for the dismissal of the counterclaim, saying that their un+aid o*ligation was due to Central Ban,Ts fle/i*le and dou*le standard +olicy of its rediscounting +rivileges, and its su*sequent ar*itrary and illegal im+osition of the &FU +enalty" 7he lower court ruled that only a legal question has *een raised in the +leadings, and decided the case in favor of 7ayug Rural Ban,"

Central Ban, a++ealed the decision of the trial court to the Court of A++eals, for determination of questions of fact and of law" 7he Court of A++eals ruled that the resolution of the a++eal will solely de+end on the legal issue of whether or not the <onetary Board had authority to authorize

Page 31 of 37

=efendant%a++ellant%a++ellant Central Ban, to im+ose a +enalty rate of &FU +er annum on +ast due loans of rural *an,s, and ordered the certification of the case to the (u+reme Court for +ro+er determination"

'((EC8

9hether or not the Central Ban, can validly im+ose the &FU +enalty on 7ayugTs +ast overdue loans *eginning July $, &51D, *y virtue of <emorandum Circular No" =-C%# dated =ecem*er 36, &51$"

RE-'NG8

7he answer is in the negative"

Nowhere in any of the a*ove%quoted +ertinent +rovisions of R"A" 03F nor in any other +rovision of R"A" 03F for that matter, is the monetary Board authorized to mete out on rural *an,s an additional +enalty rate on their +ast due accounts with A++ellant" As correctly stated *y the trial court, while the <onetary Board +ossesses *road su+ervisory +owers, nonetheless, the retroactive im+osition of administrative +enalties cannot *e ta,en as a measure su+ervisory in character" Administrative rules and regulations have the force and effect of law" 7here are, however,

limitations to the rule%ma,ing +ower of administrative agencies" A rule sha+ed out *y juris+rudence is that when Congress authorizes +romulgation of administrative rules and regulations to im+lement given legislation, all that is required is that the regulation *e not in contradiction with it, *ut conform to the standards that the law +rescri*es" 7he rule delineating the e/tent of the *inding force to *e given to administrative rules and regulations was e/+lained *y the Court in 7eo/on v"

<em*er of the Board of Administrators 266 (CRA D##4, thus8 .7he recognition of the +ower of
administrative officials to +romulgate rules in the im+lementation of the statute is necessarily limited to what is +rovided for in the legislative enactment" 7he Court held in the same case that .A rule is *inding on the courts so long as the +rocedure fi/ed for its +romulgation is followed and its sco+e is within the statute granted *y the legislature, even if the courts are not in agreement with the +olicy stated therein or its innate wisdom """". !n the other hand, .administrative inter+retation of the law is at *est merely advisory, for it is the courts that finally determine what the law means". 'ndeed, it cannot *e otherwise as the Constitution limits the authority of the )resident, in whom all e/ecutive +ower resides, to ta,e care that the laws *e faithfully e/ecuted"

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No lesser administrative, e/ecutive office, or agency then can, contrary to the e/+ress language of the Constitution, assert for itself a more e/tensive +rerogative" Necessarily, it is *ound to o*serve the constitutional mandate" 7here must *e strict com+liance with the legislative enactment" &" )harmaceutical and ;ealth Care Association of the )hili++ines vs" =uque, !cto*er F5, 3FF0 3" ;ilado vs" Collector of Customs, August 6&, &5D1 6" AB(%CBN Broadcasting Cor+oration vs" C7A, !cto*er &3, &5#& 4. )enal Regulations E( vs" )anlilio, =ecem*er F#, &5&$ AC7(8 !n or a*out the 33nd day of e*ruary, &5&6, all of the cara*aos *elonging to the a*ove%named

accused having *een e/+osed to the dangerous and contagious disease ,nown as rinder+est, were, in accordance with an order of duly%authorized agent of the =irector of Agriculture, quarantined in a corral in the *arrio of <asamat, munici+ality of <e/ico, )rovince of )am+anga" 7hat, on said +lace, Adriano )anlilio illegally and voluntarily and in violation of Act No" &01F, and while the quarantine against said cara*aos was still in force, +ermitted and ordered said cara*aos to *e ta,en from the corral in which they were then quarantined and his servants and agents too, the said cara*aos from the said corral and drove them from +lace to +lace within his hacienda to use them the said caracaos as wor, animals" 7he contention of the accused is that the facts alleged in the information and +roved on the trial do not constitute a violation of Act No" &01F or any +ortion thereof" urthermore, the government contended that if the offense stated in the information and +roved u+on the trial does not constitute a violation of any of the +rovisions of Act No" &01F, it does constitute a violation of article D#&, +aragra+h 3, of the )enal Code" 't +rovides8 A fine of not less than fifteen and not more than seventy +esetas and censure shall *e im+osed u+on8 " " " 3" Any +erson who shall violate the regulations, ordinances, or +roclamations issued with reference to any e+edemic disease among animals, the e/termination of locusts, or any other similar +lague"&aw+hil"net '((EC8 9!N act of defendant is in violation of said act"

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;C-=8 7he only sections of Act No" &01F, which +rohi*it acts and +ronounce them unlawful are 6, $ and D" 7his case does not fall within any of them" (ection 6 +rovides, in effect, that it shall *e unlawful for any +erson, firm, or cor+oration ,nowingly to shi+ or otherwise *ring into the )hili++ine 'slands any animal suffering from, infected with, or dead of any dangerous communica*le disease, or any of the effects +ertaining to such animal which are lia*le to introduce such disease into the )hili++ine 'slands" (ection $ declares, su*stantially, that it shall *e unlawful for any reason, firm, or cor+oration ,nowingly to shi+, drive or otherwise ta,e or trans+ort from one island, +rovince, munici+ality, townshi+, or settlement to another any domestic animal suffering from any dangerous communica*le diseases or to e/+ose such animal either alive or dead on any +u*lic road or highway where it may come in contact with other domestic animals" (ection D +rovides that whenever the (ecretary of the 'nterior shall declare that a dangerous communica*le animal disease +revails in any island, +rovince, munici+ality, townshi+, or settlement and that there is danger of s+reading such disease *y shi++ing, driving or otherwise trans+orting or ta,ing out of such island, +rovince, munici+ality, townshi+, or settlement any class of domestic animal, it shall *e unlawful for any +erson, firm or cor+oration to shi+, drive or otherwise remove the ,ind of animals so s+ecified from such locality e/ce+t when accom+anied *y a certificate issued *y authority of the =irector of Agriculture stating the num*er and the ,ind of animals to *e shi++ed, driven, ta,en or trans+orted, their destination, manner in which they are authorized to *e shi++ed, driven, ta,en, or trans+orted, and their *rands and distinguishing mar,s"

7he (olicitor%General suggests, *ut does not argue, that section 1 is a++lica*le to the case at *ar" (ection 1 sim+ly authorizes the =irector of Agriculture to do certain things, among them, +aragra+h 2c4 .to require that animals which are suffering from dangerous communica*le diseases or have *een e/+osed thereto *e +laced in quarantine at such +lace and for such time as may *e deemed *y him necessary to +revent the s+read of the disease". Nowhere in the law, however, is the violation of the orders of the Bureau of Agriculture neither +rohi*ited or made unlawful, nor is there +rovided any +unishment for a violation of such orders" (ection # +rovides that .any +erson violating any of the +rovisions of this Act shall, u+on conviction, *e +unished *y a fine of not more than one thousand +esos, or *y im+risonment for not more than

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si/ months, or *y *oth such fine and im+risonment, in the discretion of the court, for each offense". A violation of the orders of the Bureau of Agriculture, as authorized *y (ection 1 +aragra+h 2 c4, is not a violation of the +rovision of the Act" 7he orders of the Bureau of Agriculture, while they may +ossi*ly *e said to have the force of law, are statutes and +articularly not +enal statutes, and a violation of such orders is not a +enal offense unless the statute itself somewhere ma,es a violation thereof unlawful and +enalizes it" Nowhere in Act No" &01F is a violation of the orders of the Bureau of Agriculture made a +enal offense, nor is such violation +unished in any way therein" ;owever, we consider these acts as +lain violation of the article of the )enal Code as a*ove quoted" 7he fact that the information in its +ream*le charged a violation of act No" &01F does not +revent us from finding the accused guilty of a violation of an article of the )enal Code" 7he accused is accordingly convicted of a violation of article D#&, +aragra+h 3, of the )enal Code, and is sentenced to +ay a fine of seventy +esetas 2)&$4 and censure, with su*sidiary im+risonment in case of insolvency, and the costs of this a++eal" (o ordered" )eo+le vs" (antos, August &D, &561 !n June &#, &56F, the +rovincial fiscal of Cavite filed an information against the accused %a++ellee Augusta A" (antos for violation of section 3# of ish and Game Administrative !rder No" 3 and +enalized *y section 35 thereof" 7hat on or a*out A+ril 35, &56D, within &,DFF yards north of Cavalry )oint, Corregidor 'sland, )rovince of Cavite, )"'", the said accused Augusta A" (antos, the registered owner of two fishing motor *oats <ala*on '' and <ala*on ''', manned and o+erated *y his fishermen, fish, loiter and anchor without +ermission from the (ecretary of Agriculture and Commerce within three 264 ,ilometers from the shore line of the 'sland of Corregidor over which the naval and military authorities of the Enited (tates e/ercise jurisdiction" (ection 3# of Administrative !rder No" 3 relative to fish and game, issued *y the (ecretary of Agriculture and Commerce, +rovides as follows8 3#" )rohi*ited fishing areas" G No *oats licensed in accordance with the +rovisions of Act No" $FF6 and this order to catch, collect, gather, ta,e, or remove fish and other sea +roducts from )hili++ine waters shall *e allowed to fish, loiter, or anchor within 6 ,ilometers of the shore line of islands and reservations over which jurisdiction is e/ercised *y naval or military authorities of the Enited (tates, +articularly Corregidor, )ulo Ca*allo, -a <onja, Cl raile, and Cara*ao, and all other islands and detached roc,s lying *etween <ariveles Reservation on the north side of the entrance to <anila Bay and Calum+an )oint Reservation on the south side of said entrance8 )rovided, 7hat *oats not su*ject to license under Act No" $FF6 and this order may fish within the areas mentioned a*ove only u+on receiving written

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+ermission therefor, which +ermission may *e granted *y the (ecretary of Agriculture and Commerce u+on recommendation of the military or naval authorities concerned" 7he a*ove quoted +rovisions of Administrative, !rder No" 3 were issued *y the then (ecretary of Agriculture and Natural Resources, now (ecretary of Agriculture and Commerce, *y virtue of the authority vested in him *y section $ of Act No" $FF6 which reads as follows8 (CC" $" 'nstructions, orders, rules and regulations" G 7he (ecretary of Agriculture and Natural Resources shall from time to time issue such instructions, orders, rules and regulations consistent with this Act, as may *e necessary and +ro+er to carry into effect the +rovisions thereof and for the conduct of +roceedings arising under such +rovisions" 7he C ' 2now R7C4 of Cavite dismissed the case on the ground that it does not fall within its jurisdiction" 7he +rosecuting attorney a++ealed and requested that the case *e remanded to the C ' contending that *ecause the a++lica*le +enalty is under section #6 of Act No" $FF6, it falls within the original jurisdiction of the court" '((EC8 9hether or not accused (antos *e criminally lia*le under (ection 3# of A! No" 3 issued *y the (ecretary of Agriculture and Commerce *y virtue of the authority given *y Act No" $FF6" RE-'NG8 Act No" $FF6 contains no similar +rovision +rohi*iting *oats not su*ject to license from fishing within three ,ilometers of the shore line of islands and reservations over which jurisdiction is e/ercised *y naval and military authorities of the Enited (tates, without +ermission from the (ecretary of Agriculture and Commerce u+on recommendation of the military and naval authorities concerned" 'nasmuch as the only authority granted to the (ecretary of Agriculture and Commerce, *y section $ of Act No" $FF6, is to issue from time to time such instructions, orders, rules, and regulations consistent with said Act, as may *e necessary and +ro+er to carry into effect the +rovisions thereof and for the conduct of +roceedings arising under such +rovisionsB and inasmuch as said Act No" $FF6, as stated, contains no +rovisions similar to those contained in the a*ove quoted conditional clause of section 3# of A! No" 3, the conditional clause in question su++lies a defect of the law, e/tending it" 7his is equivalent to legislating on the matter, a +ower which has not *een and cannot *e delegated to him, it *eing e/clusively reserved to the then )hili++ine -egislature *y the Jones -aw, and now to the National Assem*ly *y the Constitution of the )hili++ines" (uch act constitutes not only an e/cess of the regulatory +ower conferred u+on the (ecretary of Agriculture and Commerce, *ut also an e/ercise of a legislative +ower which he does not have, and therefore said conditional clause is null and void and without effect 2&3 Cor+us Juris, #$DB Ru*i vs" )rovincial Board of <indoro, 65 )hil", 11FB E"(" vs" Ang 7ang ;o, $6 )hil", &B E"(" vs" Barrias, && )hil", 6304"

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or the foregoing considerations, we are of the o+inion and so hold that the conditional clause of section 3# of A! No" 3" issued *y the (ecretary of Agriculture and Commerce, is null and void and without effect, as constituting an e/cess of the regulatory +ower conferred u+on him *y section $ of Act No" $FF6 and an e/ercise of a legislative +ower which has not *een and cannot *e delegated to him" 9herefore, inasmuch as the facts with the commission of which Augusto A" (antos is charged do not constitute a crime or a violation of some criminal law within the jurisdiction of the civil courts , the information filed against him is dismissed, with the costs de oficio" (o ordered" &" )esigan vs" Angeles, A+ril 6F, &5#$

E. Cffectivity of Rules &" 7aMada vs" 7uvera, =ecem*er 35, &5#1

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