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THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
’ 
. ’- 27 ;34 :55 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The Constitution, Article 2, Section 25, provides: 
The State shall ensure the autonomy of local 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. Guingunu, 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, aqd 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. 


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THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
S. B. sENATi%l 
No. 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
CURBING THE PRACTICE OF IMPOSING UNFUNDED MANDATES ON LOCAL 
GOVERNMENT UNITS 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. - This Act shall be known as the “Unfhded Mandate Reform 
Act.” 
SECTION 2. PI UOJ 
- The puq ses of this Act are : 
(1) 
government units; 
(2) 
to strengthen the partnership between the national government and local 
to end the imposition, in the absence of full consideration by Congress, of 
inandantes on local government units in a manner that may displace other essential local 
government priorities. 
SECTION 3. Limitation on Application. - This Act shall iiot apply to any provision in an 
statute or proposed or final regulation that - 
(1) enforces constitutional rightsof the individuals; 
(2) establishes or enforces any statutory rights that prohibit discrimination on the 
basis of age, race, religion, gender, or handicapped or disability status; 
(3) requires compliance with accounting and auditing procedures with respect to 
grants or other money or property provided by the Government; 
(4) provides for emergency assiatnce or relief at the request of any local 
government, or any official of such a government; 


(5) is necessary for the national security or the ratification or implementation of 
international treaty obligations; 
(6) the President designates as emergency legislation and that the Congress so 
designates in staute; 
(7) pertains to Social Security. 
SECTION 4. Establsihment of an Advisory Council. - There shall be established an 
advisory council, to be created under the Office of the President. 
(1) IN GENERAL - The task force shall - 
(A) oversee the implementation of this Act; 
(B)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; 
(C) investigate and review the role o f  unfunded mandates imposed on 
local governments, the private sector, and individuals; 
(D) investigate and review the role of unfunded local mandates imposed on 
the private sector and individuals; and 
(E) make recommendations to the President and the Congress regarding- 
(i) allowing flexibility for local government units in complying 
with specific unfunded mandates for which terms of compliance are 
unnecessarily rigid or complex; 
(ii) reconciling any two (2) or more unfunded mandates which 
impose contradictory or inconsistent requirements; 
(iii) terminating unfunded mandates which are duplicative, 
obsolete, or lacking in practical utility; 
(iv) 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; 
(v) 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; 
(vi) 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 
(vii) 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. 
(F) assist Congress in its consideration of proposed legislation establishing 
or revising programs containing mandates affecting local government units, and 
the private sector by - 
(i) providing for the development of information about the nature and size 
of mandates in proposed legislation; and 
.(ii) 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. 
(G) promote informed and deliberate decisions by Congress on the 
appropriateness of mandates in any particular instance; 
(H) establish a point-of-order vote on the consideration in the Senate and 
House of Represenatives of legislation containing significant mandates; 
(I) assist agencies in their consideration of proposed regulations affecting 
local government units by - 


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(i) 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 
(iii) requiring that agencies prepare and consider better estimates 
of the budgetary impact of regulations containing mandates upon local 
government units before adopting such regulations; 
(2) CRITERIA - 
(A) IN GENERAL - The Advisory Commission shall establish criteria 
for making recommendations under subsection (1). 
(B) ISSUANCE OF PROPOSED CRITERIA - The Advisory 
Commisison 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 onthe proposed criteria. 
(C) FINAL CRITERIA - Not later than forty five (45) days after the date 
of issuance of proposed criteria, the Advisory Commission shall - 
(i) consider comments on the proposed criteria received under 
paragraph (4); 
(ii) 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 
(iii) issue final criteria under this subsection. 
(3) PRELIMINARY REPORT - 
(A) 
enactment of this, the Advisory Commission shall - 
IN GENERAL - Not later than nine (9) months after the date of 
(i) prepare and publish a preliminary report on its activities under 
this Act, including preliminary recommendations pursuant to subsection 
(1); 


(ii) provides copies of the preliminary report to the public upon 
request. 
(B) 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. 
FINAL REPORT - Not later than three (3) months after the date of the 
publication of the preliminary report under subsection (3), the Advisory Commission shall 
submit to the Congress a final report on the findings, conclusions, and recommendations of the 
Advisory Commission under this section. 
(4) 
(5) 
PRIORITY TO MANDATES THAT ARE SUBJECT OF JUDICIAL 
PROCEEDINGS - In canying out this section, the Advisory Commission shall give the highest 
priority to immediately investigating, reviewing and making recommendations regarding 
unfunded mandates that are the subject of judicial proceedings, if any. 
SECTION 5. Membership - 
(1) NUMBER AND APPOINTMENT - The Commission shall be composed of 
six (6) members, four (4) of which, to be appointed by the President as follows: 
(A) two (2) representatives from local government units; 
(B) two (2) members from among institutions in education or academia in 
the fields of economics and/or public administration. 
(2) The Secretary of Finance and the Secretary of Budget and Management shall 
automatically be members of the commission in ex oficio capacity. 
SECTION 6. Powers ofthe Commission. - 
(1) HEARINGS AND SESSIONS - The Commision 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. 
(2) OBTAINING OFFICIAL DATA - The Commission may secure directly 
from any department or agency information necessary to enable it to carry out this Act. Upon 


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request of the Commission, the head of that depakhnent or agency shall furnish that information 
to the Commission. 
(3) MAILS - The Commission may use mails in the same manner and under the 
same conditions as other departments and agencies of the government. 
(4) 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. 
(5) EXPERTS AND CONSULTANTS - The Advisory Commission may procure 
temporary and intermittent services of experts or consultants subject to existing civil service 
rules and regulations. 
(6) ADMINISTRATIVE SUPPORT SERVICES - The Advisory Commission is 
authorized to hire personnel to provide administrative support services. The secretariat shall be 
headed by an executive director, who shall be appointed by the Commissioners. 
SECTION 7. Separability Clause. - If any provision, or part hereof, is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
valid and subsisting. 
SECTION 8. Repealing Clause. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to, or inconsistent 
with, the provision of this Act is hereby repealed, modified, or amended accordingly. 
SECTION 9. ESfectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved. 
FN : 1958