FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
Second Regular Session 
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Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The Constitution, Article 2, Sections 27 and 28 provide: 
SEC. 27. The State shall maintain honesty and integrity in the public 
service and take positive and effective measures against graft and corruption. 
SEC. 28. Subject to reasonable conditions prescribed by law, the State 
adopts and implements a policy of full public disclosure of all its transactions 
involving public interest. 
Further, the Constitution, Article 3, Section 7 states: 
The right of the people to information on matters of public concern shall 
be recognized. Access to official records, and to documents and papers pertaining 
to official acts, transactions, or decisions, as well as to government research data 
used as basis for policy development, shall be afforded the citizen, subject to such 
limitations as may be provided by law. 
Under the Constitution, Congress may decrease but not increase the budget as proposed 
by the President. However, it is now accepted practice that Congress may cut the appropriation 
for any program or project of the President’s Budget, and use the pool of appropriation cuts to 
increase (augment) the budget of any proposed - or even new - items in the President’s Budget. 
The increases are made through budget insertions, initiatives or amendments, which are known 
in the United States as “earmarks”. What is inherently wrong in the current practice is the lack 
of transparency 
Along with earmarking, the practice of providing limited tax benefits and tariff benefits 
comprise the legislative power of focusing government efforts and reliefs on a particular person, 
agency, project or program. These activities involve costs and revenue repercussions to the 
general treasury and benefit only a limited sector of our society. Thus, they require a higher level 
of transparency to minimize, if not totally eliminate the risks of unprofessional motivation to our 
legislators. 


This bill seeks to provide transparency and accountability in the earmark process, 
including in the proposals for limited tax benefits or tariff benefits. This is in response to reports 
of, and concern over, alleged illegalities or irregularities in the congressional earmarks or 
insertions in the 2008 Budget. 
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FOURTEENTH CONGRESS OF THE REPUBLIC) 
Second Regular Session 
1 
OF THE PHILIPPINES 
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GC1 -6 
SENATE 
S. No. 
I 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
TO PROVIDE TRANSPARENCY AND ACCOUNTABILITY IN THE LEGISLATIVE 
PROCESS 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the "Legislative Transparency and 
Accountability Act of 2008." 
SECTION 2. De3nition.'- For the purposes of this Act, the term - 
A. LEGISLATIVE BODY -means the Senate or the I-Iouse of Representatives; 
B. LEGISLATOR - means a Senator or a Member of the House of Representative; 
C. PROPOSED LEGISLATION - means any bill or joint resolution (or an 
accompanying report) or in any conference report on a bill or joint resolution 
(including an accompanying joint explanatory statement of managers); 
D. CONGRESSIONAL EARMARK - means a provision or report language included 
primarily at the request of a Legislator providing, authorizing or recommending a 
specific amount of discretionary budget authority, credit authority, or other 
spending authority for a contract, loan, loan guarantee, grant, loan authority, or 
other expenditure with or to an entity, or targeted to a specific locality or 
Congressional district, other than through a statutory or administrative formula- 
driven or competitive award process; 
E. LIMITED TAX'BENEFIT - means: 
1. any revenue provision that- 
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a. provides a tax deduction, credit, exclusion, or preference to a 
particular beneficiary or limited group of beneficiaries under the 
National Internal Revenue Code; and 
b. contains eligibility criteria that are not uniform in application with 
respect to potential beneficiaries of such provision; or 
2. any tax provision which provides one beneficiary temporary or permanent 
transition relief from a change to the National Internal Revenue Code; and 
F. LIMITED TAX BENEFIT -means a provision modifying the Tariff and Customs 
Code in a manner that benefits a particular or limited group of entities. 
SECTION 3. Prohibition on Buying Votes - A Legislator may not condition the inclusion 
of language to provide fLmding for a congressional earmark, a limited tax benefit, or a limited 
tariff benefit in any proposed legislation on any vote cast by another Legislator. 
SECTION 4. Additional Requirements for Congressional Earmarks, Limited Tax Benefits 
and Limited TarijjfBenefits. - 
A. A Legislator who requests a congressional earmark, a limited tax benefit, or a limited 
tariff benefit in any proposed legislation shall provide a written statement to the 
chairman and other members of the committee of jurisdiction, including-. 
1. the name of the Legislator; 
2. in the case of a congressional earmark, the name and address of the intended 
recipient or, if there is no specifically intended recipient, the intended location 
of the activity; 
3. in the case of a limited tax or tariff benefit, identification of the individual or 
entities reasonably anticipated to benefit, to the extent known to the 
Legislator; 
4. the purpose and general program description of such congressional earmark or 
limited fax or tariff benefit: and 
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5. a declaration under oath that the Legislator and hisher spouse and their 
relatives within fourth degree of consanguinity has no financial interest in 
such congressional earnlark or limited tax or tariff benefit. 
B. Each committee shall maintain the written statements transmitted under paragraph 
(A). The written statements transmitted under paragraph (A) for any congressional 
earmarks, limited tax benefits, or limited tariff benefits included in any measure 
reported by the committee or conference report filed by the chairman of the 
committee or any subcommittee thereof shall be published in a searchable format on 
the committee's or the legislative body's website within 48 hours after receipt on such 
information but not less than 24 hours before its consideration. 
C. The Department of Budget and Management and the Department of Finance shall 
also publish concurrently in their website a copy of the proposed legislation and the 
accompanying written statements from the Legislators. 
SECTION 5. Prohibition on Consideration. - No proposed legislation that contains an 
earmark shall be considered unless the proposed legislation includes the written statement from 
the Legislator as provided in Section 4. 
SECTION 6. Prohibition on Advocating Congressional Earmarks, Limited Tax Benejts 
and Limited TarifS Benefits on Which There Exists Financial Interest. - No Legislator may 
advocate to include a Congressional Earmark, Limited Tax Benefit and Limited Tariff Benefit in 
any proposed legislation if the Legislator and hisher spouse and their relatives within fourth 
degree of consanguinity has a financial interest in such Congressional Earmark, Limited Tax 
Benefit and Limited Tariff Benefit. 
SECTION 7. Separability of Congressional Earmarks, Limited Tax Benefits and Limited 
Tariff Benefits. - A Legislator may withdraw his request for Congressional Earmark, Limited 
Tax or Tariff Benefit anytime before his legislative body considers the proposed legislation for 
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the final approval. I f  any such Congressional Earmark, Limited Tax or Tariff Benefit is so 
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withdrawn, the remainder of the proposed legislation or the provisions not otherwise affected 
shall remain valid and subsisting. 
SECTION 8. 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 9. Repealing Clause. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to or is inconsistent 
with the provision ofthis Act is hereby repealed, modified, or amended accordingly. 
SECTION 10. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved, 
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