Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

3905

House Bill No.

Introduced by REP. MARIA LEONOR GERONA-ROBREDO

EXPLANATORY NOTE

One of the challenges our National Government has faced over the years is bringing
inclusive growth to and eradicating poverty in each locality in the country.

Part of the problem stems from the budgetary process. Government has been
repeatedly criticized for its approaches in determining key projects and programs for
localities. Often, national funding for basic infrastructure projects such as hospitals,
schools, and key roads or bridges connecting agricultural areas to business districts
are not granted because of reasons such as politics, corruption, or plain terrible
planning and coordination by both national and local agencies.

A number of systems and programs are being implemented to address this
predicament. One such solution is to create a mechanism that will allow local
government units and civil society to collaborate with line agencies to determine key
programs and projects for their respective municipalities and cities.

‘This bill seeks to materialize this remedy. The bill will create an enhanced Local
Development Council (LDC) through the inclusion of a vice chairperson and at least
five (5) representatives, all from accredited Civil Society Organizations (CSO). The
bill also provides for the creation of a Local Poverty Reduction Action Team
(LPRAT), a group that will identify programs and projects necessary for the growth
and development of their area of jurisdiction. They will, at the same time, ensure that
the chosen projects and programs are in line with the National Government's goals
and agenda for development.

Aside from the LPRAT, the bill also proposes to establish a Regional Poverty
Reduction Action ‘Team (RPRAT), whose mandate is to evaluate the projects and
programs determined by the LPRAT and transmit the necessary projects and
programs to the line agencies for inclusion in the national budget.

‘The LPRAT and RPRAT will be composed of local officials and more importantly
members of organized and accredited civil society groups.


This is not the first time that a bottom-up approach to the budget process was.
considered. During the 1th Congress, Rep. Erin Tafianda filed House Bill No. 219, a
related measure titled People’s Participation in Budget Deliberation Act of 2010. At
present, Senator Teofisto Guingona III and Representatives Cresente C. Paez and
‘Anthony Bravo filed their own versions of the bill titled the Bottom-Up Budgeting
‘Act of 2013 and People’s Participation Deliberation Act of 2013, respectively.

Similarly, the Department of Budget and Management (DBM), Department of the
Interior and Local Government (DILG), Department of Social Welfare and
Development (DSWD), and National Anti-Poverty Commission (NAPC) have issued
Joint Memorandum Circular No. 4 providing for policy guidelines and procedures in
the implementation of the grassroots budgeting process for Fiscal Year 2015.

‘These measures emphasized the involvement of civil society in crafting the national
budget.

In our efforts in achieving a progressive society, we should never discount one of its
most essential elements: people participation.

Naga, a chartered city in Camarines Sur renowned for its mechanism in participative
governance, has proven the significance of government and private-sector
partnerships. Naga has adopted an Empowerment Ordinance that created a people's
council composed of accredited CSOs within the City. Members of the people's
council are enabled to participate in all of the City’s activities be it in the budget
process, policy making, or the determination and implementation of projects and
programs.

This made Naga a first-class city despite its disadvantageous position in terms of sea-
borne trade and vulnerability to natural calamities.

This is the strategy I seek to introduce to our National Government and LGUs. This
has been a proven mechanism and I strongly believe our nation will greatly benefit
from this participative style of governance.

It is on this note that I seek the immediate passage of this bill.

MARIA LEONOK GERONA-ROBREDO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session
3905

House Bill No.

Introduced by REP. MARIA LEONOR GERONA-ROBREDO

AN ACT INSTITUTIONALIZING CITIZENS PARTICIPATION IN THE
BUDGET PROCESS 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. This Act shall be known as the “Participatory Budget
Process Act of 2014.”

Section 2. Declaration of Policy. It is a declared principle of the state, as
enshrined in the Constitution, to encourage non-governmental, community-based, or
sectoral organizations that promote the welfare of the nation. The Constitution
further provides that the State shall respect the role of independent people’s
organizations to enable the people to pursue and protect their legitimate and
collective interests and aspirations through peaceful and lawful means. The state also
recognizes the right of the people and their organizations to effective and reasonable
participation at all levels of social, political, and economic decision-making aspects of
governance. The State is thereby mandated to facilitate the establishment of
adequate consultation mechanisms through legislation.

For this purpose, the State shall institutionalize the participatory budget process in
the identification and planning of programs and projects that will be funded by the
General Appropriations Act (GAA).

Section 3. Institutionalization of the Participatory Budget Process. The

active participation of Civil Society Organizations (CSOs) in the identification and
planning of programs and projects that will be funded by the GAA shall be

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guaranteed by the State through the institutionalization of the Participatory Budget
Process. CSO participation shall be made a component in the planning,
identification, and monitoring of projects and programs that shall be funded by the
annual National Budget. The CSO shall work in collaboration with the government
for this purpose.

Section 4. Definition of Terms.

a, Civil Society Assembly refers to an inclusive meeting of all CSOs, POs, and
community/grassroots organizations, facilitated by the Regional Poverty
Reduction Action Team, to gather, analyze and share results of poverty
situation and other local poverty data in their locality, identify strategies to
address poverty and present them to the LPRAT. The assembly shall also
include an orientation on the effects of the implementation of the
participatory budget process and the role of the CSOs.

b, Civil Society Organizations (CSOs) refers to non-government
organizations (NGOs), People's Organizations (POs), basic sector
organizations, cooperatives, trade unions, professional associations, faith-
based organizations, media groups, indigenous peoples movements,
foundations, and other citizen's groups which are non-profit and are formed
primarily for social and economic development to plan and monitor
government programs and projects, engage in policy discussions, and actively
participate in collaborative activities with the government.

c. Local Poverty Reduction Action Plan (LPRAP) refers to the Local
Government Unit's plan which contains programs and projects collectively
drawn through a participatory process by the Local Government Units with
Civil Society Organizations and other stakeholders, and which will directly
address the needs of the poor constituencies and the marginalized sectors in
the city or municipality.

d. Local Poverty Reduction Action Team (LPRAT) refers to the group
that will spearhead the formulation of the LPRAP. They shall also monitor the
implementation of the LPRAP.

e. People's organization (PO) refers to a self-help group belonging to the
basic sectors and/or disadvantaged groups composed of members having a
common bond of interest who voluntarily join together to achieve a lawful
common social or economic end;

f. Regional Poverty Reduction Action Team (RPRAT) refers to the

group that will provide support and guidance to the LGUs throughout the
participatory budget process. They will also review, validate and consolidate

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the LPRAPs before they are transmitted to the concerned national line
agencies.

Section 5. Local Poverty Reduction Action Team. All LGUs are mandated to
create a LPRAT within one (1) year after the effectivity of this Act. The LPRAT shall
be composed of the following:

a.

City/municipal mayor as chairperson;

b, ACSO representative as co-chairperson;

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&

. Sangguniang panglungsod/bayan member, who is the chairperson of the

Committee on Appropriations, as member;

. All local government department heads such as the planning office, budget

officer, agriculture officer, social welfare and development officer, and health
officer, as members;

. Representatives of national government agencies such as the Department of

Social Welfare and Development (DSWD) City/Municipal Social Welfare
Development Officer, PESO manager, Department of Interior and Local
Government (DILG) City/Municipal Local Government Operations Officer,
School District Supervisor, and Agrarian Reform Officer as members; and
Representatives, who are residents of the city or municipality, from the
following CSOs as members:
i. Aleader from Department of Health (DOH) organized community
health teams;
ii, A leader of parent-teacher associations (PTA);
iii. A leader of CSOs accredited or recognized by any national
government agency;
iv. Aleader of women's groups;
vy. Aleader of basic sector organizations;
vi. A leader of other community or grassroots organizations; and
vii. A representative from the business sector
A representative from a local business group or association.

All representatives being referred to in Section 5(f) above must come from duly
accredited CSOs. The accreditation requirements and processes shall be provide for
in the Implementing Rules and Regulations.

In the event that the sectors indicated are not organized, the LGU, in coordination
with CSOs and concerned national government agencies, shall initiate and support
the organization of the basic sectors identified. The sectors will be made to undergo
the same accreditation process as the CSOs for inclusion in the LPRAT.

The co-chairperson from CSOs shall be elected from and by the members
enumerated in Section 5(f).

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‘The LPRAT shall always be composed of an equal number of government and non-
government representatives,

Section 6. Powers and Functions of the Local Poverty Reduction Action
Team. The LPRAT shall have the following powers and functions:

a. Identify priority poverty reduction projects through a consensus among its
members. In the absence of a consensus, the decision will be made through a
majority vote;

b. Develop and formulate the Local Poverty Reduction Action Plan (LPRAP)
based on the identified priority poverty reduction projects, following the
process and guidelines to be provided by in the Implementing Rules and
Regulations, ensuring that the projects are in line with the declared national
government priorities and are not one of those excluded;

c. Conduct public consultations, when necessary, to ensure that the projects to
be embodied in the LPRAP reflect an actual need in the community;

d. Submit the LPRAP to the RPRAT for validation;

e. Participate in the budget proceedings of the Enhanced Local Development
Council's activities.

Section 7. Enhanced City/Municipal Development Council.

For budget-related purposes, the membership of the City/Municipal Development
Council shall be expanded with the inclusion, in addition to those provided for in
Section 107(b) of the Local Government Code, of the following as members:

a, A.CSO representative as Vice Chairperson

b. At least five CSO representatives elected by CSOs during the CSO assembly as
Members

c. Arepresentative from a local business group or association.

‘The other members of the LPRAT, such as the local government department heads
and representatives of national government agencies, shall be invited to sit as
observers and resource persons during the proceedings.

Section 8, Powers and Functions of the Enhanced City/Municipal
Development Council

In addition to the functions provided in the Local Government Code, the Enhanced
City/Municipal Development Council shall:
a. Review and validate the LPRAP prepared by the LPRAT.
b. Upon determination that the LPRAP is sound, based on guidelines to be
provided, the ELDC shall prepare the letter of transmission to the RPRAT.

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Section 9. Regional Poverty Reduction Action Team (RPRAT) - A Regional
Poverty Reduction Action Team shall be established one (1) year after the effectivity
of this Act. The RPRAT shall be composed of the following:

a, Regional Director of the Department of Interior and Local Government as

chairperson;

b. Regional Director of the Department of Budget and Management as co-
chairperson;

. Regional Director of the Department of Agriculture as member;

d. Regional Director of the Department of Agrarian Reform as member;

. Regional Director of the Department of Environment and Natural Resources
as member;

Regional Director of the Department of Health as member;

. Regional Director of the Department of Education as member;

. Regional Director of the Department of Labor and Employment as member;
Regional Director of the Department of Social Welfare and Development as
member;

. Regional Director of the Department of Trade and Industry as member;

k. Regional Director of the Department of Tourism as member;

Regional Director of the National Economic and Development Authority as

member;

m. Regional Director of the Technical Education and Skills Development

Authority as member;

n. Representative from the Department of Energy as member;

o. Representative from the National Electrification Administration as member;

and

p. Provincial CSO representative as member.

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Section 10. Powers and Functions of the Regional Poverty Reduction
Action Team. The RPRAT shall have the following powers and functions:

a. Convene and conduct civil society general assemblies which shall include an
orientation to all stakeholders regarding the rationale behind and the
processes involved in participatory budgeting, and the role of CSOs in Local
Development Councils and local special bodies;

b. Provide support and facilitate the selection of CSO representatives to the
LPRAT. The RPRAT should ensure that the process of selection remains the
independent action of the CSO. They are prohibited from influencing and
interfering, in any way, in the selection of the CSO representatives;

c. Provide Technical Assistance to the LPRATs as the latter develops and
formulates their LPRAPs;.

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d. Transmit and endorse the validated LPRAPs to the concerned national
agencies for review and inclusion in their respective budgets.

Section 11. Implementing Rules and Regulations - Implementing Rules and
Regulations for this Act shall be issued ninety (90) days after its implementation

Section 12. Role of the Department of Budget and Management - The
Department of Budget and Management shall issue a list of projects for the
upcoming fiscal year during the first quarter of the year from which the LPRAT shall
choose from.

Section 13. Separability Clause. ~ If, for any reason, any part or provision of this
Act is declared invalid, such declaration shalll not affect the other provisions of this
Act.

Section 14. Repealing Clause. — All provisions of existing laws, orders, rules and
regulations or parts thereof which are in conflict or inconsistent with the provisions
of this Act are hereby repealed, amended or modified accordingly.

Section 15. Effectivity. — This Act shall take effect immediately upon its
publication in the Official Gazette or in at least two (2) newspapers of general
circulation in the Philippines.

Approved,

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