BOOK VII

Administrative Procedure

CHAPTER 1

General Provisions

SECTION 1. Scope.—This Book shall be applicable to all agencies as defined in the

next succeeding section, except the Congress, the Judiciary, the Constitutional
Commissions, military establishments in all matters relating exclusively to Armed Forces
personnel, the Board of Pardons and Parole, and state universities and colleges.

SECTION 2. Definitions.—As used in this Book:

(1) “Agency” includes any department, bureau, office, commission, authority or officer of
the National Government authorized by law or executive order to make rules, issue
licenses, grant rights or privileges, and adjudicate cases; research institutions with
respect to licensing functions; government corporations with respect to functions
regulating private right, privileges, occupation or business; and officials in the exercise
of disciplinary power as provided by law.

(2) “Rule” means any agency statement of general applicability that implements or
interprets a law, fixes and describes the procedures in, or practice requirements of, an
agency, including its regulations. The term includes memoranda or statements
concerning the internal administration or management of an agency not affecting the
rights of, or procedure available to, the public.

(3) “Rate” means any charge to the public for a service open to all and upon the same
terms, including individual or joint rates, tolls, classifications, or schedules thereof, as
well as commutation, mileage, kilometerage and other special rates which shall be
imposed by law or regulation to be observed and followed by any person.

(4) “Rule making” means an agency process for the formulation, amendment, or repeal
of a rule.

(5) “Contested case” means any proceeding, including licensing, in which the legal
rights, duties or privileges asserted by specific parties as required by the Constitution or
by law are to be determined after hearing.

(6) “Person” includes an individual, partnership, corporation, association, public or

private organization of any character other than an agency.

(7) “Party” includes a person or agency named or admitted as a party, or properly

seeking and entitled as of right to be admitted as a party, in any agency proceeding; but
nothing herein shall be construed to prevent an agency from admitting any person or
agency as a party for limited purposes.
(8) “Decision” means the whole or any part of the final disposition, not of an interlocutory
character, whether affirmative, negative, or injunctive in form, of an agency in any
matter, including licensing, rate fixing and granting of rights and privileges.

(9) “Adjudication” means an agency process for the formulation of a final order.

(10) “License” includes the whole or any part of any agency permit, certificate, passport,
clearance, approval, registration, charter, membership, statutory exemption or other
form of permission, or regulation of the exercise of a right or privilege.

(11) “Licensing” includes agency process involving the grant, renewal, denial,
revocation, suspension, annulment, withdrawal, limitation, amendment, modification or
conditioning of a license.

(12) “Sanction” includes the whole or part of a prohibition, limitation or other condition
affecting the liberty of any person; the withholding of relief; the imposition of penalty or
fine; the destruction, taking, seizure or withholding of property; the assessment of
damages, reimbursement, restitution, compensation, cost, charges or fees; the
revocation or suspension of license; or the taking of other compulsory or restrictive
action.

(13) “Relief” includes the whole or part of any grant of money, assistance, license,
authority, privilege, exemption, exception, or remedy; recognition of any claim, right,
immunity, privilege, exemption or exception; or taking of any action upon the application
or petition of any person.

(14) “Agency proceeding” means any agency process with respect to rule-making,
adjudication and licensing.

(15) “Agency action” includes the whole or part of every agency rule, order, license,
sanction, relief or its equivalent or denial thereof.

CHAPTER 2

Rules and Regulations

SECTION 3. Filing.—(1) Every agency shall file with the University of the Philippines
Law Center three (3) certified copies of every rule adopted by it. Rules in force on the
date of effectivity of this Code which are not filed within three (3) months from that date
shall not thereafter be the basis of any sanction against any party or persons.

(2) The records officer of the agency, or his equivalent functionary, shall carry out the
requirements of this section under pain of disciplinary action.

(3) A permanent register of all rules shall be kept by the issuing agency and shall be
open to public inspection.
SECTION 4. Effectivity.—In addition to other rule-making requirements provided by law
not inconsistent with this Book, each rule shall become effective fifteen (15) days from
the date of filing as above provided unless a different date is fixed by law, or specified in
the rule in cases of imminent danger to public health, safety and welfare, the existence
of which must be expressed in a statement accompanying the rule. The agency shall
take appropriate measures to make emergency rules known to persons who may be
affected by them.

SECTION 5. Publication and Recording.—The University of the Philippines Law Center

shall:

(1) Publish a quarterly bulletin setting forth the text of rules filed with it during the
preceding quarter; and

(2) Keep an up-to-date codification of all rules thus published and remaining in effect,
together with a complete index and appropriate tables.

SECTION 6. Omission of Some Rules.—(1) The University of the Philippines Law

Center may omit from the bulletin or the codification any rule if its publication would be
unduly cumbersome, expensive or otherwise inexpedient, but copies of that rule shall
be made available on application to the agency which adopted it, and the bulletin shall
contain a notice stating the general subject matter of the omitted rule and new copies
thereof may be obtained.

(2) Every rule establishing an offense or defining an act which, pursuant to law is
punishable as a crime or subject to a penalty shall in all cases be published in full text.

SECTION 7. Distribution of Bulletin and Codified Rules.—The University of the

Philippines Law Center shall furnish one (1) free copy each of every issue of the bulletin
and of the codified rules or supplements to the Office of the President, Congress, all
appellate courts and the National Library. The bulletin and the codified rules shall be
made available free of charge to such public officers or agencies as the Congress may
select, and to other persons at a price sufficient to cover publication and mailing or
distribution costs.

SECTION 8. Judicial Notice.—The court shall take judicial notice of the certified copy of
each rule duly filed or as published in the bulletin or the codified rules.

SECTION 9. Public Participation.—(1) If not otherwise required by law, an agency shall,

as far as practicable, publish or circulate notices of proposed rules and afford interested
parties the opportunity to submit their views prior to the adoption of any rule.

(2) In the fixing of rates, no rule or final order shall be valid unless the proposed rates
shall have been published in a newspaper of general circulation at least two (2) weeks
before the first hearing thereon.
(3) In case of opposition, the rules on contested cases shall be observed.

CHAPTER 3

Adjudication

SECTION 10. Compromise and Arbitration.—To expedite administrative proceedings

involving conflicting rights or claims and obviate expensive litigations, every agency
shall, in the public interest, encourage amicable settlement, compromise and arbitration.

SECTION 11. Notice and Hearing in Contested Cases.—(1) In any contested case all
parties shall be entitled to notice and hearing. The notice shall be served at least five (5)
days before the date of the hearing and shall state the date, time and place of the
hearing.

(2) The parties shall be given opportunity to present evidence and argument on all
issues. If not precluded by law, informal disposition may be made of any contested case
by stipulation, agreed settlement or default.

(3) The agency shall keep an official record of its proceedings.

SECTION 12. Rules of Evidence.—In a contested case:

(1) The agency may admit and give probative value to evidence commonly accepted by
reasonably prudent men in the conduct of their affairs.

(2) Documentary evidence may be received in the form of copies or excerpts, if the
original is not readily available. Upon request, the parties shall be given opportunity to
compare the copy with the original. If the original is in the official custody of a public
officer, a certified copy thereof may be accepted.

(3) Every party shall have the right to cross-examine witnesses presented against him
and to submit rebuttal evidence.

(4) The agency may take notice of judicially cognizable facts and of generally
cognizable technical or scientific facts within its specialized knowledge. The parties shall
be notified and afforded an opportunity to contest the facts so noticed.

SECTION 13. Subpoena.—In any contested case, the agency shall have the power 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 the hearing upon
showing of general relevance. Unless otherwise provided by law, the agency may, in
case of disobedience, invoke the aid of the Regional Trial Court within whose
jurisdiction the contested case being heard falls. The Court may punish contumacy or
refusal as contempt.
SECTION 14. Decision.—Every decision rendered by the agency in a contested case
shall be in writing and shall state clearly and distinctly the facts and the law on which it
is based. The agency shall decide each case within thirty (30) days following its
submission. The parties shall be notified of the decision personally or by registered mail
addressed to their counsel of record, if any, or to them.

SECTION 15. Finality of Order.—The decision of the agency shall become final and
executory fifteen (15) days after the receipt of a copy thereof by the party adversely
affected unless within that period an administrative appeal or judicial review, if proper,
has been perfected. One motion for reconsideration may be filed, which shall suspend
the running of the said period.

SECTION 16. Publication and Compilation of Decisions.—(1) Every agency shall

publish and make available for public inspection all decisions or final orders in the
adjudication of contested cases.

(2) It shall be the duty of the records officer of the agency or his equivalent functionary
to prepare a register or compilation of those decisions or final orders for use by the
public.

SECTION 17. Licensing Procedure.—(1) When the grant, renewal, denial or

cancellation of a license is required to be preceded by notice and hearing, the
provisions concerning contested cases shall apply insofar as practicable.

(2) Except in cases of willful violation of pertinent laws, rules and regulations or when
public security, health, or safety require otherwise, no license may be withdrawn,
suspended, revoked or annulled without notice and hearing.

SECTION 18. Non-expiration of License.—Where the licensee has made timely and

sufficient application for the renewal of a license with reference to any activity of a
continuing nature, the existing license shall not expire until the application shall have
been finally determined by the agency.

CHAPTER 4

Administrative Appeal in Contested Cases

SECTION 19. Appeal.—Unless otherwise provided by law or executive order, an appeal

from a final decision of the agency may be taken to the Department head.

SECTION 20. Perfection of Administrative Appeals.—(1) Administrative appeals under

this Chapter shall be perfected within fifteen (15) days after receipt of a copy of the
decision complained of by the party adversely affected, by filing with the agency which
adjudicated the case a notice of appeal, serving copies thereof upon the prevailing party
and the appellate agency, and paying the required fees.

(2) If a motion for reconsideration is denied, the movant shall have the right to perfect
his appeal during the remainder of the period for appeal, reckoned from receipt of the
resolution of denial. If the decision is reversed on reconsideration, the aggrieved party
shall have fifteen (15) days from receipt of the resolution of reversal within which to
perfect his appeal.

(3) The agency shall, upon perfection of the appeal, transmit the records of the case to
the appellate agency.

SECTION 21. Effect of Appeal.—The appeal shall stay the decision appealed from
unless otherwise provided by law, or the appellate agency directs execution pending
appeal, as it may deem just, considering the nature and circumstances of the case.

SECTION 22. Action on Appeal.—The appellate agency shall review the records of the
proceedings and may, on its own initiative or upon motion, receive additional evidence.

SECTION 23. Finality of Decision of Appellate Agency.—In any contested case, the

decision of the appellate agency shall become final and executory fifteen (15) days after
the receipt by the parties of a copy thereof.

SECTION 24. Hearing Officers.—(1) Each agency shall have such number of qualified
and competent members of the base as hearing officers as may be necessary for the
hearing and adjudication of contested cases.

(2) No hearing officer shall engaged in the performance of prosecuting functions in any
contested case or any factually related case.

SECTION 25. Judicial Review.—(1) Agency decisions shall be subject to judicial review

in accordance with this chapter and applicable laws.

(2) Any party aggrieved or adversely affected by an agency decision may seek judicial
review.

(3) The action for judicial review may be brought against the agency, or its officers, and
all indispensable and necessary parties as defined in the Rules of Court.

(4) Appeal from an agency decision shall be perfected by filing with the agency within
fifteen (15) days from receipt of a copy thereof a notice of appeal, and with the
reviewing court a petition for review of the order. Copies of the petition shall be served
upon the agency and all parties of record. The petition shall contain a concise statement
of the issues involved and the grounds relied upon for the review, and shall be
accompanied with a true copy of the order appealed from, together with copies of such
material portions of the records as are referred to therein and other supporting papers.
The petition shall be under oath and shall how, by stating the specific material dates,
that it was filed within the period fixed in this chapter.

(5) The petition for review shall be perfected within fifteen (15) days from receipt of the
final administrative decision. One (1) motion for reconsideration may be allowed. If the
motion is denied, the movant shall perfect his appeal during the remaining period for
appeal reckoned from receipt of the resolution of denial. If the decision is reversed on
reconsideration, the appellant shall have fifteen (15) days from receipt of the resolution
to perfect his appeal.

(6) The review proceeding shall be filed in the court specified by statute or, in the
absence thereof, in any court of competent jurisdiction in accordance with the provisions
on venue of the Rules of Court.

(7) Review shall be made on the basis of the record taken as a whole. The findings of
fact of the agency when supported by substantial evidence shall be final except when
specifically provided otherwise by law.

SECTION 26. Transmittal of Record.—Within fifteen (15) days from the service of the
petition for review, the agency shall transmit to the court the original or a certified copy
of the entire records of the proceeding under review. The record to be transmitted may
be abridged by agreement of all parties to the proceedings. The court may require or
permit subsequent correction or additions to the record.