Legally Yours,  Political Law

KMU v. Garcia

Constitutional Law. Political Law. Delegation of Powers.
KMU v. GARCIA
239 SCRA 386

FACTS:
The Department of Transportation and Communication (DOTC) and the Land Transportation Franchising and Regulatory Board (LTFRB) released memoranda allowing provincial bus operators to charge passengers rates within 15% above and below the official LTFRB rate for a period of one year. Provincial Bus Operators Association of the Philippines applied for fare rate increase. This was opposed by the Philippine Consumer Foundation, Inc. and Perla Bautista as they were exorbitant and unreasonable.

ISSUE:
Whether or not the provincial bus operators have authority to reduce and increase fare rates based on the order of the LTFRB

HELD:
The Legislature delegated to the defunct Public Service Commission the power of fixing rates of public services and the LTFRB is likewise vested with the same. Such delegation is permitted in order to adapt to the increasing complexity of modern life. The authority given by the LTFRB to the provincial bus operators to set a fare range is illegal and invalid as it is tantamount to an undue delegation of legislative authority. Potestas delegata non delegari protest. What has been delegated cannot be delegated. A further delegation of power would constitute a negation of the duty in violation of the trust reposed in the delegate mandated to discharge it directly. The policy of allowing the provincial bus operators to change their fares would lead to a chaotic situation and would leave the riding public at the mercy of transport operators

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