THIRTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
FIRST REGULAR SESSION 
) 
S.B. No. 
Introduced by Senator Pangilinan 
EXPLANATORY NOTE 
Art. Vlll, Sec. 3 of the 1987 Constitution states that "the Judiciary shall enjoy 
fiscal autonomy. Appropriations for the judiciary may not be reduced by the 
legislature below the amount appropriated for the previous year and, after approval, 
shall be automatically and regularly released". 
However, despite the provision of the Constitution on fiscal autonomy, the 
Judiciary, as a co-equal and separate branch of government, has been hampered in i t s  
operations by the requirements of various oversight agencies, most specially the 
Department of Budget and Management. 
The Judiciary needs to be accorded i t s  independence to fulfill i t s  mandate of 
settling actual controversies and reviewing whether the acts of government are in 
excess of their jurisdiction. 
Judicial Independence should also be accompanied by full accountability, in 
terms of the full disclosure of i t s  various incomes and expenditures, audit of the 
expenditures of the judiciary and reporting to the President and Congress of the 
annual report of the operations and activities of the courts within one month from the 
opening of each regular session of Congress, pursuant to Sec. 16, Art. Vlll of the 
Constitution. 
Legislation i s  required in order to elaborate the extent, scope and limitations 
of fiscal autonomy in the judiciary, and the appurtenant rights and obligations of the 
courts, and also the other oversight agencies of government. 
Considering the backlog of cases, and the numerous vacancies in the judicial 
posts all over the country, we believe that the passage of this law will greatly 
enhance the capability of the judiciary to fulfill i t s  mandate under the constitution. 
In view of the objectives contained herein, the passage of this bill is most 
respectfully urged. 
r 


THIRTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
'04 .J!L 
-'7 
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1 3 3  
FIRST REGULAR SESSION 
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S E N A T E  
S.B. No. 
Introduced by Senator Francis N. Pangilinan 
AN ACT DEFINING THE SCOPE AND EXTENT OF THE 
FISCAL AUTONOMY OF THE JUDICIAL BRANCH OF GOVERNMENT 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title of the Act. -- This Act shall be otherwise known as the 
"The Fiscal Autonomy Act of the Judicial Branch of Government". 
SEC. 2. Declaration of State Policy. -- 
a. 
The Judiciary shall enjoy Fiscal Autonomy. Appropriations for the 
Judiciary may not be reduced by the legislature below the amount appropriated for 
the previous year and, after approval, shall be automatically and regularly released. 
The Judiciary shall have the autonomy to collect fees and other charges, 
to raise i t s  revenues, to prepare and consolidate i t s  own budget, including the 
budgets of various offices and units under i t s  supervision and control, to allocate and 
prioritize the appropriated budget, fees, charges, income and other sources of funds, 
to transfer funds from one expense account to another, to utilize such funds, and to 
report and account for i t s  activities, operations and expenditures, in the manner it 
deems fit and appropriate, and consistent with the provisions of this Act. 
b. 
c. 
The Judiciary shall enjoy autonomy to create various offices and to 
reorganize i t s  administrative structure, both at the central and the regional levels, 
either for oversight or operations purposes, to provide for the necessary personnel 
complement, and provide for adequate salaries, human resource development 
programs and other incentives that will motivate judicial and non-judicial personnel 
to promote the administration of justice and meet the expectations of the public in 
general. 
Sec. 3. 
Power to Collect Fees and Raise Revenues -- 
a. 
The Judiciary shall continue to enjoy i t s  authority under PD 1949 to 
collect legal fees, pursuant to the pertinent provisions of the Rules of Court. 
However, the fund utilization ratio of Eighty Percent (80%) for cost of living 
allowances, and Twenty Percent (20%) for office equipment and facilities shall no 


longer apply, considering that all legal fees prescribed in Rule 141 of the Rules of 
Court, as amended, shall now constitute a part of the Judicial Trust Fund, pursuant to 
Sec. 8 of this Act. 
b. 
The Supreme Court shall determine the appropriate level of fees and 
charges pursuant to Sec. 3 of Rule 141 of the Rules of Court, in accordance with the 
following policy objectives: 
(1) 
Access to justice specially the disadvantaged and poor sectors 
of society; 
Internal revenue generation for the judiciary, to support i t s  
operations; and 
Charging the users of the judicial system in accord with their 
ability to pay. 
(2) 
(3) 
c. 
Local Government Units are strictly prohibited from providing 
allowances, supplies, materials, vehicles and other resources for the use of judges 
within their respective areas of jurisdiction, except for the use of the courtroom 
located within the municipal or city hall, or other buildings or facilities owned or 
leased by the local government unit, and the maintenance thereof. 
SEC. 4. Power to Prepare and Submit the Annual Budget. -- 
The Judiciary shall submit to Congress, with copy furnished to DBM, a budget of 
expenditures and sources of financing which will reflect total revenues and 
expenditures for the budget year. 
SEC. 5. Power to Reallocate the Approved National Budget. -- 
a. 
Upon the approval of the total budget for the Judiciary, the Supreme 
Court shall be fully empowered to recast the approved budget into an operating 
budget for the various units under the general supervision of the Supreme Court. The 
Supreme Court shall have the authority to realign the budget from one expense 
account to another, and from one functional unit or category to another, without the 
necessity of approval from the DBM. The Supreme Court may also utilize any savings 
from the budget for whatever expense, which the Court may deem necessary and 
reasonable for the fulfillment of the Judiciary's mandate. 
The DBM shall automatically release to the Supreme Court, without need 
for any request, the monthly cash requirements of the Judiciary or one-twelfths ('/r2) 
of the total National Government support. The releases shall not be conditioned on 
approved work and financial plans, nor any financial report whatsoever. The Supreme 
Court shall only submit accomplishment and financial reports, within thirty days from 
the opening of each regular session of Congress, to the President and to Congress. 
b. 
c. 
All expenditures and revenues of the Supreme Court, and other inferior 
courts shall be subject to post-audit by the Commission on Audit, under pertinent 
laws, rules and regulations. 


SEC. 6 .  Power. to Create Offices and Reorganize the Administrative 
Structure. -- 
a. 
The Supreme Court shall have the authority to create such offices and to 
reorganize i t s  administrative structure, both at the national and regional levels, for 
purposes of oversight or operations, in order to carry out the purposes of this Act, and 
to enable it to take on the additional functions and responsibilities stated in this Act, 
within the limit of i t s  available resources. 
b. 
The Supreme Court shall likewise have the authority to create such 
positions, and allocate the necessary budgetary support for the smooth operations of 
such offices. 
c. 
The creation of offices at the regional (eve( shall be guided by the 
principle of decentralization of administrative, financial, and personnel matters, and 
bringing court management closer to the litigants, and other users of the judicial 
system. 
SEC. 7. Salary and Personnel Administration. -- 
a. 
The Supreme Court shall have the authority to determine the number 
and positions of court personnel necessary for the smooth functioning of the judiciary, 
within the limits of the approved appropriation guided by constitutional and 
legislative policies on hiring and compensation. A copy of the annual approved 
staffing pattern of personnel shall be furnished the COA and the DBM. 
b. 
The Supreme Court shall institute measures to provide sufficient, 
attractive and competitive compensation for judicial and non-judicial personnel that 
will ensure continuity of service and sustainability, and in support of a career 
development program. Such measures may include but not be limited to the broad- 
banding of salaries, and the provision of total cash compensation packages. 
SEC. 8. Judiciary Trust Fund. -- There is hereby created a trust fund, to be 
known as the Judiciary Trust Fund, which shall be dedicated for the use of the 
judiciary. All the funds collected for, or accruing to the Judiciary may be deposited 
and kept in the said trust fund, and from which funds needed for i t s  operation shall 
be drawn. The Judiciary Trust Fund shall include, but not be limited to the following: 
a. 
Such funds that may be appropriated by Congress for the 
Judiciary; 
Increases in legal fees that are collected by the Judiciary pursuant 
to PD 1949; 
Contributions of the local government units, under Sec. 3.c. of 
this Act: and 
b. 
c. 
d. 
Within ninety (90) days from the effectivity of this Act, the DBM, DOF and COA, 
in consultation with the Supreme Court, shall promulgate the rules and regulations 
governing the establishment and administration of the Judiciary Trust Fund. 
All interest income of the trust fund. 


SEC. 9. Transfer of Physical Assets. -- All real and personal properties not 
presently titled to the Supreme Court, which have been acquired for the judiciary 
shall, as far as practicable, be transferred to the Supreme Court, by other national or 
local government units, or government owned or controlled corporations, through an 
appropriate instrument, within six months from the effectivity of this Act. Thereafter, 
the Supreme Court shall exercise the fiduciary ownership, management, control, as 
well as the security, maintenance and disposition, of such properties. 
SEC. 10. Rules and Regulations. -- The Supreme Court, in consultation with 
the DBM and the COA, shall promulgate the rules and regulations necessary to carry 
out the intent of this Act, save for those provisions where particular agencies of 
government are mandated to promulgate the implementing rules. 
The necessary 
rules and regulations shall be promulgated within six months from the effectivity of 
this Act. 
SEC. 11. Delegation of Authority. -- The Supreme Court en banc, through an 
appropriate instrument] may also delegate to the Chief Justice, the Court 
Administrator, or other offices or heads of offices, which currently exist or may be 
created in the future, any and all powers, functions and responsibilities which are 
granted under this Act, under such conditions and under such periods as the Supreme 
Court en banc may allow. 
SEC. 12. Separability Clause. -- If any provision or part of this Act or the 
application thereof to any person or circumstance i s  held invalid, the remainder of 
this Act or the application of such provision or part to other persons or circumstances 
shall not be affected thereby. 
SEC. 13. 
Repealing Clause. -- All Laws, decrees, executive orders, or rules 
and regulations inconsistent with this Act are hereby repealed or modified 
accordingly. 
SEC. 14. 
Effectivity. -- This Act shall take effect fifteen (15) days after i t s  
publication in the Official Gazette or in two (2) newspapers of general circulation. 
Approved,