FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
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iii JLl 15 P 1 :54 
SENtfs5 
S. No. ___ --'-
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I'IECEIVm sv . f--":.----
Introduced by Senator Miriam Deferisor Santiago 
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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 (Alvarez vs. Guingona, Jr., 252 SCRA 695 [1996]). 
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.' 
• This bill waS originally filed during the Thirteenth Congress, First Regular Session. 


FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
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,~Jl 15 1'1 :54 
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AN ACT 
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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 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 Refonn 
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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, III the absence of full consideration by Congress, of 
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mandates on local government units in a marmer that may displace other essential 
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local government priorities., 
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SECTION 3. Limitation on Application. - This Act shall not apply to any provision in an 
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statute or proposed or final regulation that -
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(A) Enforces constitutional rights of the individuals; 
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(B) Establishes or enforces any statutory rights that prohibit discrimination on the basis 
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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 any local government, 
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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 
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designates in statute; and 
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(G) Pertains to Social Security. 
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SECTION 4. Establishment of an Advisory Council. - There shall be established an 
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advisory council, to be created under the ,Office ofthe President. 
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(A) In General. - The task force shall-
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(I) Oversee the implementation of this Act; 
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(2) Investigate 
and 
review 
the 
role 
of unfunded 
mandates 
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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; 
(3) Investigate and revIew the role of unfunded mandates imposed on local 
governments, the private sector, and individuals; 
(4) Investigate and review the role of unfunded local mandates imposed on the 
private sector and individuals; and 
(5) 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) Reconciling any two (2) or more unfunded mandates which impose 
contradictory or inconsistent requirements; 
(c) Terminating unfunded mandates which are duplicative, obsolete, or 
lacking in practical utility; 
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Cd) 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; 
( e) 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; 
(f) Establishing procedures 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 burdens; and 
(g) 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. 
(6) Assist Congress in its consideration of proposed legislation establishing or 
revising programs containing mandates affecting local government units, and 
the private sector by ~ 
(a) Providing for the development of information about the nature and size 
of mandates in proposed legislation; and 
(b) 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. 
(7) Promote 
informed 
and 
deliberate 
decisions 
by 
Congress 
on 
the 
appropriateness of mandates in any particular instance; 
(8) Establish a point-of-order vote on the consideration in the Senate and House 
of Representatives of legislation containing significant mandates; 
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(9) Assist agencies in their consideration of proposed regulations affecting local 
government units by -
(a) Requiring that agencies develop a process to enable the elected 
and other officials of local govermnents to provide input when agencies 
are developing regulations; and 
(b) Requiring that agencies prepare and consider better estimates 
of the budgetary impact of regulations containing mandates upon local 
government units qefore adopting such regulations; 
(B) Criteria. -
(1) In General. - The Advisory Commission shall establish criteria for making 
recommendations. 
(2) Issuance of Proposed Criteria. -
The Advisory Commission shall issue 
proposed criteria un&r 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. 
(3) 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. 
(C) Preliminary Report. -
(1) In General. - Not later than nine (9) months after the date of enactment of 
this, the Advisory Commission shall-
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(a) Prepare and publish a preliminary report on its activities under 
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this Act, includi~g preliminary recommendations pursuant to paragraph 
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(1); 
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(b) Provides copies of the preliminary report to the public upon 
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request. 
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(2) Public Hearings. - The Advisory Commission shall hold public hearings on 
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the preliminary recommendations contained in the preliminary report of the 
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Advisory Commission under this subsection. 
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(D) Final Report. - Not later than three (3) months after the date of the publication of 
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the preliminary report undei' subsection (3), the Advisory Commission shall submit 
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to the Congress a final report on the findings, conclusions, and recommendations of 
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the Advisory Commission under this section. 
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(E) 
Priority to Mandates that are Subject of Judicial Proceedings. - In carrying out this 
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section, the Advisory Commission shall give the highest priority to immediately 
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investigating, reviewing and making recommendations regarding unfunded 
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mandates that are the subject of judicia I 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 (6) 
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members, four (4) of which, to be appointed by the President as follows: 
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(I) Two (2) representatives from local government units; 
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(2) Two (2) members from among institutions in education or academia in the 
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fields of economics andlor public administration. 
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(B) The Secretary of Finance and the Secretary of Budget and Management shall 
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automatically be members ofthe commission in ex officio capacity. 
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SECTION 6. Powers of the Commission.-
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CA) Hearings and Sessions. - The Commission may, for the purpose of carrying out this 
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Act, hold hearings, sit and act at times and places, take testimony, and receive evidence as it 
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considers appropriate. It may administer.oaths or affirmations to witnesses appearing before it. 
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(B) Obtaining Official Data. -
The Commission may secure directly from any 
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department or agency information necessary to enable it to carry out this Act. Upon request of 
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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 manner 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 
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Commission may contract with and compensate government and private agencies or persons for 
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the purpose of conducting research or surveys necessary to enable the Commission to carry out 
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its duties under this Act. 
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(E) Experts and Consultants. - The Advisory Commission may procure temporary and 
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intermittent services of experts or consultants subject to existing civil service rules and 
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regulations. 
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(F) Administrative Support Services. - The Advisory Commission is authorized to hire 
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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 provision 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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