Practical Necessity of the Rule-Making Power Interpretative Regulations- these are the rules and

regulations construing or interpreting the provisions of

1. Regulation of highly complex and changing
a statute to be enforces.
conditions;
2. Gradual change in regulatory role of Congress;  Administrative rules and regulations or
3. Inability of legislative bodies to anticipate policies enacted by administrative bodies to
future situations interpret the law which they are entrusted to
enforce, have the force of law, and are entitled
Limitations of Rule-Making Power
to great weight and respect.
1. It may not make rules which are inconsistent  However, these are not conclusive, and are, at
with the Constitution or a statue, particularly best, advisory, for it is courts that finally
the statue it is administering or which created determine what the law means.
it, or which are in derogation of, or defeat, the
R.A. 8424
purpose of a statue.
2. It may not, by its rules and regulations, amend, National Internal Revenue Code
alter, modify, extend, supplant, enlarge, or
expand, restrict or limit the provisions or Section 4. Power of the Commissioner to Interpret
coverage of the statue as its powers belongs to Tax Laws and to Decide Tax Cases. – The power to
the legislature. interpret the provisions of this Code and other tax laws
3. A public administrative body may make only shall be under the exclusive and original jurisdiction of
such rules and regulations as are within the the Commissioner, subject to review by the Secretary
limits of the powers granted to it or what is of Finance.
found in the legislative enactment itself. Legislative Rule Interpretative Rule
4. A rule or regulation should be uniform in Implement and provides Do no more than clarify or
operation, reasonable, and not unfair or details the law construe the statute being
discriminatory. administered for a paper
observance
Doctrine of Constitutional Supremacy
Have the force and effect of Only advisory for the courts
 The Constitution is the fundamental, law have the final say on proper
paramount and supreme law of the nation, it is interpretation
deemed written in every statute and contract. Issued pursuant to a valid Issued as an incident of its
delegation of legislative power to enforce the law
 If a law or contract violates any norm of the
power
Constitution that law or a contract whether
Must be published Need to be published
promulgated by the legislative or by the
executive branch or entered into by private
persons for private purposes is null and void
and without any force and effect. Requisites for a Valid Administrative Regulation
(RVAR)
Kinds of Administrative Rules and Regulations
1. It must be issued under authority of law
1. Legislative Rule
2. It must be within the scope of legislative
2. Interpretative Rule
authority
Legislative Rule 3. It must be promulgated in accordance with the
prescribed procedure
a. Supplementary or “detailed legislation 4. It must be reasonable
regulation”
- These are the rules and regulations which
fix the details in the execution an d
 It must be issued under authority of law
enforcement of a policy set out in the law.
- There must be a valid delegation of
b. Contingent legislation or determination
legislative power
- It is issued on account of the concurrence
- This is granted either by the charter itself
of a certain contingency, as determined by
of an administrative body, or by the law it
the administrative agencies. The operation
is supposed to enforce.
of law may either be enforced or
suspended.
Test of Valid Delegation Petitioner appealed to the HDMF Board of Trustees
but the same was denied for having been rendered
1. Completeness Test- the law must be complete
moot and academic. He then filed a petition for review
in all its terms and conditions when it leaves
before the Court of Appeals but the same was
the legislature such that when it reaches the
dismissed, hence, the instant petition.
delegate, the only things to be done is to
enforce it. Petitioner contends that the subject 1995 Amendments
2. Sufficient Standard Test- adequate issued by HDMF are inconsistent with the enabling
guidelines or limitations in the law to law, P.D. No. 1752, as amended by R.A. No. 7742,
determine the boundaries of the delegate’s which merely requires as a pre-condition for
authority and prevent the delegation from exemption from coverage the existence of either a
running riot. superior provident/retirement plan or a superior
housing plan, and not the concurrence of both plans;
and that the 1996 Amendment are also void insofar as
 It must be within the scope of legislative they abolished the exemption granted by Section 19 of
authority P.D. 1752, as amended. The repeal of such exemption
- The implementing rules and regulations of involves the exercise of legislative power, which
a law cannot extend the law or expand it cannot be delegated to HMDF.
coverage, as the power to amend or repeal
RULING: No, the amendment is not valid.
a statute is vested in the legislature.
It is accordingly ordinarily held that the intention of
Illustrate Case
the legislature in using the term "and/or" is that the
Romulo Mabanta Law Office v. HDMF word "and" and the word "or" are to be used
interchangeably. Section 19 of P.D. No. 1752 intended
G.R. No 131082; June 19, 2000; Davide J. that an employer with a provident plan or an employee
FACTS: Republic Act No. 7742 requires the existence housing plan superior to that of the fund may obtain
of a plan providing for both provident/retirement and exemption from coverage. If the law had intended that
housing benefits for exemption from the Pag-IBIG the employee [sic] should have both a superior
Fund coverage under Presidential Decree No. 1752, as provident plan and a housing plan in order to qualify
amended. Petitioner Romulo Mabanta Law Office was for exemption, it would have used the words "and"
exempted from January to 31 December 1995 from the instead of "and/or."
Pag-IBIG Fund coverage by respondent HDMF It is without doubt that the HDMF Board has rule-
because of a superior retirement plan. making power as provided in Section 51 17 of R.A.
The HDMF Board of Trustees, through a Resolution No. 7742 and Section 13 of P.D. No. 1752. However,
amended the Rules and Regulations Implementing it is well-settled that rules and regulations, which are
R.A. No. 7742. As amended, Section 1 of Rule VII the product of a delegated power to create new and
provides that for a company to be entitled to a waiver additional legal provisions that have the effect of law,
or suspension of Fund coverage, it must have a plan should be within the scope of the statutory authority
providing for both provident/retirement and housing granted by the legislature to the administrative agency.
benefits superior to those provided under the Pag-IBIG It is required that the regulation be germane to the
Fund. objects and purposes of the law, and be not in
contradiction to, but in conformity with, the standards
Petitioner filed with the respondent an application for prescribed by law.
Waiver or Suspension of Fund Coverage because of its
superior retirement plan, as well as questioned the In the present case, when the Board of Trustees of the
amendment through a letter claiming that the HDMF required in Section 1, Rule VII of the 1995
amendments are invalid. Amendments to the Rules and Regulations
Implementing R.A. No. 7742 that employers should
The HDMF disapproved Petitioner's application on the have both provident/retirement and housing benefits
ground that the requirement that there should be both a for all its employees in order to qualify for exemption
provident retirement fund and a housing plan is clear from the Fund, it effectively amended Section 19 of
in the use of the phrase "and/or," and that the Rules P.D. No. 1752. And when the Board subsequently
Implementing R.A. No. 7742 did not amend nor repeal abolished that exemption through the 1996
Section 19 of P.D. No. 1752 but merely implement the Amendments, it repealed Section 19 of P.D. No. 1752.
law. Such amendment and subsequent repeal of Section 19
are both invalid, as they are not within the delegated
power of the Board. The HDMF cannot, in the exercise superiors concerning the rules or guidelines to be
of its rule-making power, issue a regulation not followed by their subordinates in the performance of
consistent with the law it seeks to apply. Indeed, their duties.
administrative issuances must not override, supplant or
modify the law, but must remain consistent with the
law they intend to carry out. 21 Only Congress can Internal Rules
repeal or amend the law.
- These rules create no relation except
 It must be promulgated in accordance with between the official who issues them and
the prescribed procedure. the official who receives them.
 Requirement of notice and hearing - Their objective is simply the efficient and
 Formal requirements on promulgation economical administration of the affairs of
the department or agency in which they
Notice and Hearing
issued in accordance with the law
General Rule: Prior notice and hearing are not governing the subject matter.
essential to the validity of rules and regulations.  It must be reasonable
(Reason: No determination of past events or facts that - Administrative authorities must not be act
have to be established or ascertained). arbitrarily and capriciously in the
enactment of rules and regulations in the
Exceptions: exercise of their delegated power to create
1. When required by law; and new or additional legal rules that have the
2. When the regulation is a settlement of effect of law.
controversy between specific parties since it is A rule or regulations is said to be reasonable
considered as administrative adjudication.
1. It bears reasonable relation to the purpose
Publication sought to be accomplished.
General Rule: Administrative rules and regulations - A rule adopted by liquor control board
must be published if their purpose is to enforce or prohibiting the use of illuminated signs
implement existing law pursuant to a valid delegation. that showed the trade name of the
alcoholic beverages, as this was unrelated
Exceptions: to the board’s statutory purpose of
policing the sale of liquor.
1. Interpretative Rule and Regulations
2. If it is supported by good reasons
2. Internal Rules and Regulations
- The regulation of certain activities
3. Letters of instructions issued by superiors.
involving mere privilege, such as the sale
Tañada v. Tuvera (G.R. No. L-3915) of intoxicating liquors or the conduct of
horse racing. Is accorded liberal judicial
RULING: We hold therefore that all statutes, including support, and the court is slow to find such
those of local application and private laws, shall be regulations unreasonable.
published as a condition for their effectivity, which 3. If it is free from constitutional infirmities or
shall begin fifteen days after publication unless a change of arbitrariness.
different effectivity date is fixed by the legislature. - A rule, for example, providing that
Covered by this rule are presidential decrees and absence from work for three (3) days or
executive orders promulgated by the President in the longer on the part of the employee,
exercise of legislative powers whenever the same are without consent of the employer, would
validly delegated by the legislature or, at present, create a conclusive presumption that the
directly conferred by the Constitution. administrative employee had resigned would be
rules and regulations must a also be published if their unreasonable and hence, contrary to law.
purpose is to enforce or implement existing law
pursuant also to a valid delegation.
Interpretative regulations and those merely internal in
nature, that is, regulating only the personnel of the
administrative agency and not the public, need not be
published. Neither is publication required of the so-
called letters of instructions issued by administrative