ADMINISTRATIVE LAW | ABAKADA GURO PARTYLIST VS. PURISIMA, G.R. NO. 166715, 2008

ABAKADA GURO PARTYLIST VS. PURISIMA,

G.R. NO. 166715, 2008

 

TOPIC/DOCTRINE

Two tests determine the validity of delegation of legislative power: (1) the completeness test and (2) the sufficient standard test. A law is complete when it sets forth therein the policy to be executed, carried out or implemented by the delegate. It lays down a sufficient standard when it provides adequate guidelines or limitations in the law to map out the boundaries of the delegate’s authority and prevent the delegation from running riot. To be sufficient, the standard must specify the limits of the delegate’s authority, announce the legislative policy and identify the conditions under which it is to be implemented.

 

FACTS

RA 9335 (Attrition Act of 2005) encourages BIR and BOC officials and employees to exceed their revenue targets by providing for a system of rewards and sanctions through a Rewards and Incentives Fund (Fund) and a Revenue Performance Evaluation Board (Board). This covers all the officials and employees of the BIR and BOC with at least 6months of service regardless of employment status.

The Fund will come from the collection of the BIR and the BOC in excess of their revenue targets for the year. This revenue target is determined by the Development Budget and Coordinating Committee (DBCC). The incentive or reward will then come from the fund and allocated to the BIR and BOC in proportion to their contribution to the Fund.

Petitioners as taxpayers, challenge the constitutionality of RA 9335. Allegedly there is undue delegation to fix revenue targets to the President for while the law says that BIR and BOC officials may be dismissed from service if their revenue collections fall short of the target by 7.5%, it is not stated what this target is. Instead, the fixing of revenue targets has been delegated to the President without sufficient standards.

 

ISSUE

Whether there was undue delegation of legislative power in this case.

 

RULING

No.

The court ruled that two tests determine the validity of delegation of legislative power: (1) the completeness test and (2) the sufficient standard test. A law is complete when it sets forth therein the policy to be executed, carried out or implemented by the delegate. It lays down a sufficient standard when it provides adequate guidelines or limitations in the law to map out the boundaries of the delegate’s authority and prevent the delegation from running riot. To be sufficient, the standard must specify the limits of the delegate’s authority, announce the legislative policy and identify the conditions under which it is to be implemented.

Here, the court ruled that the policy of RA 9335 is to optimize the revenue generation capability and collection of the BIR and BOC. On the other hand, Section 4 of the law delegating to the president to fix revenue targets provide that the revenue targets are based on the original estimated revenue collection expected of the BIR and BOC for a given fiscal year as approved by the DBCC and stated in the Budget of Expenditures and Sources of Financing (BESF) submitted by the President to Congress. Thus, revenue targets are determined not only by the president. It undergoes a scrutiny by the DBCC. On the other hand, section7 of the law provides that… “remove from service officials and employees whose revenue collection falls short of the target by at least 7.5% with due consideration of all relevant factors affecting the level of collecting subject to civil service laws, rules and regulations and compliance with substantive and procedural due process… the application of the criteria for the separation of an official or employee from service shall be without prejudice to the application of other relevant laws on accountability of public officers…” Clearly, RA9335 in no way violates the security of tenure of officials and employees of the BIR and the BOC. The guarantee of security of tenure only means that an employee cannot be dismissed from the service for causes other than those provided by law and only after due process is accorded the employee. Under RA9335, the yardstick for removal is when the revenue collection falls short of the target by at least 7.5% with due consideration of all relevant factors affecting the level of collection. This standard is similar to inefficiency and incompetence in the performance of official duties which is a ground for disciplinary action under civil service laws. Besides, the removal here is subject to civil service laws, rules and regulations and compliance with substantive and procedural due process.







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