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SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
'13 Gel -3 P5 :52 
SENATE 
S. No. 
1813 
RECEIVED In;-f-
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The Constitution, Article II, Section 25, provides: "The State shall ensure the autonomy 
oflocal governments." 
A local government unit is a political subdivision of the State, which is constituted by law 
and possessed of substantial control over its own affairs. Remaining to an intra sovereign 
subdivision of one sovereign nation, but not intended, however, to be an "imperium in imperio, " 
the local government unit is autonomous in the sense that it is given more powers, authority, 
responsibilities and resources. l 
Unfortunately, the free exercise of such autonomy is hampered with the imposition, in the 
absence of full consideration by Congress, of unfounded mandates on local government units. 
, 
These unfounded mandates displace other essential local government priorities, impose 
contradictory and inconsistent requirements, and compound the fiscal difficulties of local 
government units to render basic services to the people. 
Hence, this bill seeks to curb the practice of imposing unfounded mandates on local 
government units in order to allow them to efficiently manage local affairs.2 
Lw,.. 4k·,.4;V-
.~ ~ 
. 
.MIRIAM DEF'IJ~SOR sifJ.uy;u 
pM 
I Alvarez vs. Guingona. Jr., 252 SCRA 695 (1996). 
2 This bill was originally filed during the Thirteenth Congress, First Regular Session. 


, , 
SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S.No. 
1813 
Introduced by Senator Miriam Defensor Santiago 
I 
~Acr 
'13 
OCT -3 P5 :52 
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CURBING THE PRACTICE OF IMPOSING UNFUNDED MANDATES ON LOCAL 
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GOVERNMENT UNITS 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. Short Title. - This Act shall be known as the "Unfunded Mandate Reform 
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Act." 
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SECTION 2. Purposes. - The purposes of this Act are: 
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(A) 
To strengthen the partnership between the national government and local 
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government units; 
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(B) 
To end the imposition, in the absence of full consideration by Congress, of 
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mandates 011 local government units in a manner that may displace other essential local 
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government priorities. 
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SECTION 3. Limitation on Application. - This Act shall not apply to any provision in 
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any statute, proposed statute, or final regulation that-
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(A) 
Enforces the constitutional rights of individuals; 
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(B) 
Establishes or enforces any statutory rights that prohibit discrimination on the 
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basis of age, race, religion, gender, or handicapped or disability status; 
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(C) 
Requires compliance with accounting and auditing procedures with respect to 
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grants or other money or property provided by the Government; 
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(D) 
Provides for emergency assistance or relief at the request of allY local 
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government, or any official of such a government; 
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(E) 
Is necessary for the national security or the ratification or implementation of 
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international treaty obligations; 
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(F) 
The President designates as emergency legislation and that the Congress so 
designates in statute; and 
(0) 
Pertains to social security. 
SECTION 4. Establishment of an Advisory Council. - There shall be established an 
advisory council, to be created under the Office of the President. 
(A) 
In General. - The task force shall -
(1) 
Oversee the implementation of this Act; 
(2) 
(3) 
(4) 
(5) 
Investigate and review the role of unfunded mandates in the 
intergovernmental relations and their impact on local objectives and 
responsibilities, and their impact on the competitive balance between the 
national government, local government units, and the private sector and 
consider views of and the impact on working men and women on those 
same matters; 
InVestigate and review the role of unfunded mandates imposed on local 
governments, the private sector, and individuals; 
Investigate and review the role of unfunded local mandates imposed on 
the private sector and individuals; and 
Make recommendations to the President and the Congress regarding-
(a) 
Allowing flexibility for local government units in complying with. 
specific unfunded mandates for which terms of compliance are 
unnecessarily rigid or complex; 
(b) 
(c) 
Reconciling any two (2) or more unfunded mandates which impose 
contradictory or inconsistent requirements; 
Terminating unfunded mandates which are duplicative, obsolete, 
or lacking in practical utility; 
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(6) 
(7) 
(d) 
(e) 
(1) 
(g) 
Suspending on a temporary basis, unfunded mandates which are 
not vital to public health and safety and which compound the fiscal 
difficulties of local government units, including recommendations 
for triggering such suspension; 
Consolidating or simplifying unfunded mandates or the planning or 
reporting requirements of such mandates, in order to reduce 
duplication and facilitate compliance by local government units 
with those mandates; 
Establishing procednres that, in cases in which a piece of 
legislation would require a mandate on local government units, the 
same shall not increase local government unit bnrdens; and 
Establishing the general rule that Congress shall not impose 
mandates on local government units without providing adequate 
funding to comply with such mandates; and 
Each recommendation under paragraph (5) shall, to the 
extent practicable, identify the specific unfunded mandates to 
which the recommendation applies. 
Assist Congress in its consideration of proposed legislation establishing or 
revising programs containing inandates affecting local government units, 
and the private sector by -
(a) 
(b) 
Providing for the development of infonnation about the natnre and 
size of mandates in proposed legislation; and 
Establishing a mechanism to bring such information to the 
attention of the Senate and House of Representatives before the 
Senate and House of Representatives votes on proposed 
legislation. 
Promote informed and deliberate decisions by Congress on the 
appropriateness of mandates in any particular instance; 
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(8) 
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(9) 
Establish a point-of-order vote on the consideration in the Senate and 
House of Representatives oflegislation containing significant mandates; 
Assist agencies in their consideration of proposed regulations affecting 
local government units by -
(a) 
(b) 
Requiring that agencies develop a process to enable the elected and 
other officials of local governments to provide input when 
agencies are developing regulations; and 
Requiring that agencies prepare and consider better estimates of 
the budgetary impact of regulations containing mandates upon 
local government units before adopting such regulations; 
Criteria. -
(1) 
In General. -
The Advisory Commission shall establish criteria for 
making recommendations. 
(2) 
(3) 
Issuance of Proposed Criteria. - The Advisory Commission shall issue 
proposed criteria under this subsection not later than sixty (60) days after 
the date of the enactment of this Act, and thereafter provide a period of 
thirty (30) days for submission by the public of comments on the proposed 
criteria. 
Final Criteria. - Not later than forty five (45) days after the date of 
issuance of proposed criteria, the Advisory Commission shall -
(a) 
Consider comments on the proposed criteria received under 
paragraph (2); 
(b) 
Adopt and incorporate in final criteria any recommendations 
submitted in those comments that the Advisory Commission 
determines will aid the Advisory Commission in carrying out its 
duties under this section; and 
(c) Issue final criteria under this subsection. 
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(C) 
Preliminary Report. -
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(1) 
(2) 
In General. - Not later than nine (9) months after the date of enactment of 
this, the Advisory Commission shall -
(a) 
(b) 
Prepare and publish a preliminary report on its activities under this 
Act, including preliminary recommendations pursuant to paragraph 
(1); 
Provides copies of the preliminary report to the public upon 
request. 
Public Hearings. - The Advisory Commission shall hold public hearings 
on the preliminary recommendations contained in the preliminary report 
of the Advisory Commission under this subsection. 
(D) 
Final Report. - Not later than three (3) months after the date of the publication of 
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the preliminary report under subsection (3), the Advisory Commission shall submit to the 
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Congress a final report on the findings, conclusions, and recommendations of the Advisory 
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Commission under this section. 
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(E) 
Priority to Mandates that are Subject of Judicial Proceedings. - In carrying out 
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this section, the Advisory Commission shall give the highest priority to immediately 
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investigating, reviewing and making recommendations regarding unfunded mandates that are the 
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subject of judicial proceedings, if any. 
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SECTION 5. Membership.-
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(A) 
NUMBER AND APPOINTMENT - The Commission shall be composed of six 
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(6) members, four (4) of which, to be appointed by the President as follows: 
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(B) 
(1) 
(2) 
Two (2) representatives from local government units; 
Two (2) members from among institutions in education or academia in the 
fields of economics and/or public administration. 
The Secretary of Finance and the Secretary of Budget and Management shall 
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automatically be members of the Commission in ex officio capacity. 
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SECTION 6. Powers of the Commission.-
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(A) 
Hearings and Sessions. - The Commission may, for the purpose of carrying out 
this Act, hold hearings, sit and act at times and places, take testimony, and receive evidence as it 
considers appropriate. It may administer oaths or affirmations to witnesses appearing before it. 
(B) 
Obtaining Official Data. -
The Commission may secure directly from any 
department or agency information necessary to enable it to carry out this Act. Upon request of 
the Commission, the head of that department or agency shall furnish that information to the 
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Commission. 
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(C) 
Mails. - The Commission may use mails in the same marmer and under the same 
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conditions as other departments and agencies of the government. 
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(D) 
Contract Authority. - To the extent provided in advance in appropriations Acts, 
the Commission may contract with and compensate government and private agencies or persons 
for the purpose of conducting research or surveys necessary to enable the Commission to carry 
out its duties under this Act. 
(E) 
Experts and Consultants. - The Advisory Commission may procure temporary 
and intermittent services of experts or consultants subject to existing civil service rules and 
regulations. 
(F) 
Administrative Support Services. - The Advisory Commission is authorized to 
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hire personnel to provide administrative support services. The secretariat shall be headed by an 
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executive director, who shall be appointed by the Commissioners. 
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SECTION 7. Separability Clause. - If any provision or part hereof is held invalid or 
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unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
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valid and subsisting. 
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SECTION 8. Repealing Clause. - Any law, presidential decree or issuance, executive 
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order, letter of instruction, administrative order, rule, or regulation contrary to or inconsistent 
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with the provisions of this Act is hereby repealed, modified, or amended accordingly. 
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SECTION 9. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
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publication in at least two (2) newspapers of general circulation. 
Approved, 
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