An administrative agency is a general term that covers any government authority that can act as
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an executive body that serves public interests, which is the reason (rationale) for its
existence; it shall not represent any private interests.
a quasi-legislative body that establishes and prescribes rules and regulations to implement
the law; it shall not have absolute discretion to determine or change the law.
a quasi-judicial body that conducts hearings and decides on cases; it shall not have inherent
powers of a pure judicial court, and its proceedings shall not be bound by all the rules
applicable to proceedings in court.
The administrative agencies act as a mechanism that provides expertise and organizational
capability for the three branches of government.
An administrative agency may be created by
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executive order; as in EO 100, s. 1986 that created PIA.
legislation; as in RA 10844 that created DICT.
constitutional provision; as in Art. 9 that created CSC, COMELEC and COA.
An agency is wholly within the power of the law that created it, that prescribes its powers and
functions. It may also be abolished in the same manner it is created if such abolition is justified by
the law.
Types of Administrative Agency
The administrative agencies are classified into:
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Agencies set up to function in situations wherein the government is offering some gratuity,
grant, or special priviledge; such as PVAO, NARRA, etc.
Agencies set up to function in situations wherein the government is seeking to carry on certain
government functions; such as BIR, BI, CSC, COMELEC, BSP, etc.
Agencies set up to function in situations wherein the government is performing some business
service for the public; such as PHILPOST, PNR, MWSS, CAAP, CAB, etc.
Agencies set up to function in situations wherein the government is seeking to regulate
industry, business, or private individuals; such as FDA, PhilFIDA, SEC, MTRCB, PRC,
IPOPHL, etc.
Agencies set up to function in situations wherein the government is seeking to adjust
individual controversies because of some strong social policy involved; such as BALA, BLR,
BWSC, ECC, PCW, etc.
Powers and Functions of Administrative Agency
The powers and functions of administrative agency are defined in the Constitution, the laws or both.
The powers of an administrative agency are:
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Executive power - the authority to implement or carry out the policy set out in the law or
statute.
Quasi-legislative power - the authority to adopt rules and regulations intended to better carry
out the policy; the function of rule-making.
Quasi-judicial power - the authority to hear and decide on cases in the performance of duty
and to enforce its decisions according to the law; the function of adjudication.
Incidental power - the authority necessary to effectively carry out the above express powers;
the use of enabling, directing, dispensing, examining and prosecuting functions. It is often
referred to as the determinative power.
The scope of such powers are:
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expressly granted by the legislation and those necessarily implied in the exercise thereof.[2]
deprived of quasi-judicial powers unless it is expressly granted.[3]
liberally interpreted by legislation to enable the accomplishment of assigned duties in
accordance with the legislative purpose.[4]
It is considered unconstitutional for an administrative agency to act outside of its scope.
Types of Administrative Agency
The administrative agencies are classified into:





Agencies set up to function in situations wherein the government is offering some gratuity,
grant, or special priviledge; such as PVAO, NARRA, etc.
Agencies set up to function in situations wherein the government is seeking to carry on certain
government functions; such as BIR, BI, CSC, COMELEC, BSP, etc.
Agencies set up to function in situations wherein the government is performing some business
service for the public; such as PHILPOST, PNR, MWSS, CAAP, CAB, etc.
Agencies set up to function in situations wherein the government is seeking to regulate
industry, business, or private individuals; such as FDA, PhilFIDA, SEC, MTRCB, PRC,
IPOPHL, etc.
Agencies set up to function in situations wherein the government is seeking to adjust
individual controversies because of some strong social policy involved; such as BALA, BLR,
BWSC, ECC, PCW, etc.
Powers and Functions of Administrative Agency
The powers and functions of administrative agency are defined in the Constitution, the laws or both.
The powers of an administrative agency are:
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
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Executive power - the authority to implement or carry out the policy set out in the law or
statute.
Quasi-legislative power - the authority to adopt rules and regulations intended to better carry
out the policy; the function of rule-making.
Quasi-judicial power - the authority to hear and decide on cases in the performance of duty
and to enforce its decisions according to the law; the function of adjudication.
Incidental power - the authority necessary to effectively carry out the above express powers;
the use of enabling, directing, dispensing, examining and prosecuting functions. It is often
referred to as the determinative power.
The scope of such powers are:
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expressly granted by the legislation and those necessarily implied in the exercise thereof.[2]
deprived of quasi-judicial powers unless it is expressly granted.[3]
liberally interpreted by legislation to enable the accomplishment of assigned duties in
accordance with the legislative purpose.[4]
It is considered unconstitutional for an administrative agency to act outside of its scope.
Administrative Rule-Making
Rule-making is the function of administrative agencies to promulgate rules and regulations to carry out
the general provisions of a law into effect. It may also be referred to as subordinate legislation.
An administrative agency must promulgate administrative/implementing rules and regulations in
harmony with the law and not in violation of the authority conferred on the agency.[5]
An administrative agency shall publish or circulate notices of proposed rules and regulations as well as
provide an opportunity to interested parties to submit their views regarding the adoption of any rule.[6]
The promulgation of implementing rules and regulations may be interrupted or set aside by the judicial
department if there is an error of law, a grave abuse of power or lack of jurisdiction or grave abuse of
discretion clearly conflicting with either the letter or the spirit of a legislative enactment.[7]
The implementing rules and regulations are also subject to amendment or repeal by the agencies that
promulgated them, or by the legislature.
Administrative Adjudication
main article: Administrative Adjudication
Administrative adjudication is the function of administrative agencies to conduct hearings and
decide on cases in the duty of carrying out a law.
An administrative agency must have jurisdiction to give validity to its determinations/decisions as a
quasi judicial body or tribunal. Such jurisdiction is limited and dependent entirely on the source of its
authority, which is either from the statutes or the Constitution.
An administrative agency is normally granted the authority to promulgate its own proceeding (rules
of procedures), provided they do not violate fundamental rights and the Constitution. Such rules of
procedures shall remain effective unless disapproved by the Supreme Court.[8]
An administrative proceedings is not required to adapt formal court rules that govern purely judicial
proceedings. However, it is essential for any proceeding to observe due process.
The decision rendered by an administrative agency in a case shall be in writing and shall clearly
state the facts and legal basis. The agency shall decide each case within 30 days following its
submission.
The decision of the agency is final and executory after the receipt of copy of such decision by the
party who lost the case. However, an administrative appeal or judicial review may be perfected
before the finality of the decision.[9]
An administrative agency shall publish and make available for public inspection all decisions or final
orders in the adjudication of contested cases.[10]
Rate-Fixing
main article: Rate-Fixing Power
Rate-fixing is the function of administrative agency to fix or control the charges (rates, wages and
prices) exalted to public utility services.
The rate-fixing by an administrative agency must be accompanied with notice and hearing, specially
if its is quasi-judicial in nature.[11] It must also be reasonable and just in the absence of an express
requirement for standard by law.
The proposed rates by the agency shall be valid after their publication in a newspaper of general
circulation at least 2 weeks before the first hearing thereon.[12]
Determinative Functions
The incidental or determinative functions of administrative agency are:
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Licensing - the function to permit or allow something which the law undertakes to regulate. It
is simply the issuance of license. It is also referred to as the enabling function.
Directing - the function to determine, assess, valuate and classify for corrective purposes and
compliance with the law.
Dispensing - the function to exempt one from or relax a general prohibition, or to relieve one
from an affirmative duty.
Examining - the function to require the attendance of witnesses or the production of books,
papers, documents and other pertinent data, upon request of any party before or during a
hearing.[13] It is simply the issuance of subpoena. It is also referred to as the 'investigatory
function'.
Prosecuting - the power to apply compulsion or force against person or property to effectuate
a legal purpose without a judicial warrant to authorize such action. It is more often referred to
as the 'summary function'.