B. Administrative Agencies

Definition

Administrative agency - An agency exercising some significant combination of executive, legislative and judicial powers.

Manner of Creation

• Established by the Constitution
• If created by the Constitution itself, it can only be altered or abolished by the constitution itself.
• Created by statute or law
• Legislature may amend or repeal the law creating it, thereby affecting the agency created by it.
• By authority of law

This is a recognized exception to the principle of non-delegability of legislative power.

As a result of the growing complexity of modern society, it has become necessary to create more and more administrative bodies to help in the regulation of its ramified activities. Specialized in the particular fields assigned to them, they can deal with problems thereof with more expertise and dispatch than can be expected from the legislature or the courts of justice. This is the reason for the increasing vesture of quasi-legislative and quasi-judicial powers in what is now not unreasonably called the fourth department of the government. (Solid Homes v. Payawal, G.R. 84811, 1989).

Kinds of Administrative agencies (BIG CAP)

• Perform some business for the public (e.g. MWSS, PNR, NFA)
• Regulate businesses affected with public interest (e.g. LTFRB, ERB)
• Offer some gratuity, grant or special privilege (e.g. GSIS, SSS, Philippine Veterans Administration)
• It is true that under Section 41(n) of RA 8291 (the GSIS Law), GSIS is expressly granted the power to adopt a retirement plan and/or financial assistance for its employees, but a closer look at the provision readily shows that this power is not absolute. It is qualified by the words “early,” “incentive,” and “for the purpose of retirement.” The retirement plan must be an early retirement incentive plan, and the plan in this case was not an early retirement incentive plan for the purpose of retirement, thus falling outside the powers granted to the GSIS. (GSIS v. COA, G.R. 162372, 2011).
• See to carry on certain functions of the Government (e.g. BIR, Bureau of Customs, Bureau of Immigration)
• Seek to Adjust individual controversies because of some strong social policy involved (e.eg. NLRC, DAR).
• Seek under Police Power to regulate private businesses and individuals (e.g. SEC, MTRCB, Dangerous Drugs Board)

The MMDA is a development authority created for the purpose of laying down policies and coordinating with various agencies, organizations and the private sector, which may enforce, but not enact ordinances. RA 7924 does not grant the MMDA with the police power, let alone the legislative power, and that all its functions are administrative in nature. (MMDA v. Garin, G.R. 130230, 2005).

Administrative agencies have powers and functions which may be administrative, investigatory, regulatory, quasi-legislative, or quasi-judicial, or a mix of the five, as may be conferred by the Constitution or by statute. They have been in fine only such powers or authority as are granted or delegated, expressly or impliedly, by law. And in determining whether an agency has certain powers, the inquiry should be from the law itself. But once ascertained as existing, the authority given should be liberally construed. (Soriano v, MTRCB, G.R. 165785, 2009).