RECEINTED
REPUBLIC OF THE PHILIPPINES, O18
HOUSE OF REPRESENTATIVES

Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No, 1903 _

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

Explanatory Note

The Judiciary Development Fund (JDF) was established in 1984 through Presidential Decree
No. 1949, The JDF was created for the benefit of the members and personnel of the Judi ry
to help ensure and guarantee its independence. The Judiciary was then given the authority to
generate its own funds and resources in order to help augment its budgetary requirements and
encourage the welfare of its members and personnel.

The JDF has been in existence for over 30 years now. Time and again, the issue of
transparency and accountability in the accounting and reporting of funds, as well as
allegations of irregularities and abuse of discretion in the allocation and disbursement of the
same, has been consistently raised Supreme Court, on its end, has always invoked its
fiscal autonomy on the matter. However, the constitutional grant of fiscal autonomy should
to override and compromis stitutional principles of transparency,
ity and good governance

Under PD 1449, the exclusive power to approve and authorize disbursements and
expenditures if the JDF is vested to the Chief Justice of the Supreme. In that sense, the JDF
could be considered discretionary funds. Such nature of the JDF is prone to abuse without
mechanisms that would ensure checks and balances. As such, this bill mandates the transfer
of the administration of the JDF from the Supreme Court to the Bureau of '
to the promotion of transparency and accountability, and good governance. Furthermore,
appropriate audit and reportorial requirements to prevent any further abuse of the JDF.

In view of the foregoing, approval of this measure is earnestly sought.

EJANO

TAVIVES



REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES,
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

150

House Bill No.

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO.

AN ACT
REFORMING THE ADMINISTRATION OF THE JUDICIARY DEVELOPMENT
FUND, MANDATING TRANSPARENCY AND ACCOUNTABILITY IN THE
ADMINISTRATION THEREOF, TRANSFERRING THE ADMINISTRATION
THEREOF FROM THE SUPREME COURT TO THE BUREAU OF THE
TREASURY, ENACTING APPROPRIATE AUDIT AND REPORTORIAL
REQUIREMENTS THEREFOR, AMENDING FOR THE PURPOSE
PRESIDENTIAL DECREE NO. 1949, AND FOR OTHER PURPOSES

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 “Judiciary
Development Fund Reform Act of 2016”

SECTION 2. Declaration of Policy.- Consistent with the principles of
transparency, accountability and good governance, it is hereby declared to be the
policy of the State to give life and meaning to the constitutional percept under
Section 1, Article XI of the Constitution that public office is a public trust and to

impress upon public officers and employees that they are at all times accountable

eo eVvauneune

to the people with their duty to serve with the highest degree of responsibility,
10 integrity, loyalty and efficiency,

a In the same manner, it is hereby declared to be the policy, of the State to
12 give live and meaning to Section 28, Article II of the Constitution, which provides
13 that the State adopts and implements a policy of full public disclosure of all its
14 transactions involving public interest, subject to reasonable conditions prescribed
15 by law.

16


1 SECTION 3. Section 2 of Presidential Decree No. 1606 is hereby

2 amended to read as follows:

3 “SECTION 2. ALL FEES AND COLLECTIONS
4 CONSTITUTING THE FUND SHALL BE IMMEDIATELY AND
5 REGULARLY REMITTED BY THE SUPREME COURT,
6 THROUGH THE CHIEF JUSTICE, TO THE NATIONAL
7 TREASURY. NO ALLOCATION, DISBURSEMENT OR
8 EXPENDITURE OF THE FUND SHALL BE PAID OUT EXCEPT
9 IN PURSUANCE OF AN APPROPRIATION BY THE CONGRESS
10 AS PART OF THE BUDGET OF THE JUDICIARY AS PROVIDED
oe FOR IN THE GENERAL APPROPRIATIONS ACT: PROVIDED,
12 THAT THE AMOUNT OF THE FUND SHALL NOT BE
13 INCLUDED IN THE COMPUTATION OF THE ANNUAL
14 APPROPRIATION OF THE JUDICIARY: PROVIDED, FURTHER,
15 THAT THE FUND SHALL BE TREATED AS A SPECIAL FUND IN
16 THE NATIONAL TREASURY AND SHALL BE ADMINISTERED
7 BY THE BUREAU OF THE TREASURY: PROVIDED, FINALLY,
18 THAT ANY ALLOCATION, DISBURSEMENT AND
19 EXPENDITURE OF THE FUND AS PROVIDED FOR IN THE
20 GENERAL APPROPRIATIONS ACT SHALL MADE
2 EXCLUSIVELY FOR THE PURPOSES INDICATED IN THE
22 IMMEDIATELY PRECEDING SECTION, IN ACCORDANCE
23 WITH THE GUIDELINES SET IN THIS DECREE AND ITS
24 IMPLEMENTING RULES AND REGULATIONS.”

25

26 SECTION 4. Section 3 of the same Decree is hereby amended to read as
27 follows:

28 “SECTION 3. THE COMMISSION ON AUDIT THROUGH
29 THE AUDITOR OF THE SUPREME COURT OR HIS DULY
30 AUTHORIZED REPRESENTATIVE SHALL QUARTERLY AUDIT.
31 THE RECEIPTS, REVENUES, USES, DISBURSEMENTS AND
32 EXPENDITURES OF THE FUND, AND SHALL SUBMIT THE
33 APPROPRIATE REPORT IN WRITING THIRTY (30) DAYS
34 FROM THE COMPLETION OF SAID AUDIT TO THE CHIEF

2


1 JUSTICE OF THE SUPREME COURT, THE SENATE
2 PRESIDENT, THE SPEAKER OF THE HOUSE OF
3 REPRESENTATIVES AND THE CHAIRPERSON OF THE
4 COMMISSION ON AUDIT.”

>

6 SECTION 5. Section 4 of the same Decree is hereby amended to read as
7 follows:

8 “Section 4. Nothing herein shall be construed to affect or diminish
9 the duty of local government units to provide office spaces, equipment and
10 facilities to the courts within their respective territorial jurisdiction as
a. required under existing laws: PROVIDED, THAT THE CHIEF
12 JUSTICE OF THE SUPREME COURT SHALL SUBMIT THE
3 APPROPRIATE REPORT IN WRITING, DETAILING THE
4 FUNDING AND SUPPORT RECEIVED BY THE JUDICIARY
45 FROM EXTERNAL SOURCES AND BEYOND THE
16 ALLOCATION RECEIVED FROM THE GENERAL
v7 APPROPRIATES ACT, DURING THE DELIBERATIONS BY THE
18 CONGRESS ON THE BUDGET OF THE JUDICIARY. Moreover,
19 there shall be no reduction of the compensation, allowances, benefit and
20 privileges enjoyed by the members and personnel of the Judiciary on the
21 date of the effectivity of this Decree.”

2

23 SECTION 6. Section 5 of the same Decree is hereby amended to read as
24 follows:

25 “SECTION 5. THE SUPREME COURT, DEPARTMENT OF
26 BUDGET AND MANAGEMENT, BUREAU OF THE TREASURY
7 AND COMMISSION ON AUDIT SHALL PROMULGATE THE
28 NECESSARY RULES AND REGULATIONS FOR THE
29 EFFECTIVE IMPLEMENTATION OF THE DECREE WITHIN
30 NINETY (90) DAYS FROM THE APPROVAL HEREOF.”


SECTION 7. Separability Clause.- If for any reason, any provision of

this Act is declared unconstitutional or invalid, or the application of such

provision to any circumstance is held invalid, the other parts or provisions hereof

which are not affected thereby shall continue to be in full force and effect.

SECTION 8. Repealing Clause.- All laws, decrees, executive orders,
rules and regulations, and other issuances or parts thereof that are inconsistent

with this Act are hereby repealed, amended or modified accordingly

SECTION 9. Effectivity. - This Act shall take effect after fifteen (15)

days following its publication in two (2) national newspapers of general

irculation,

Approved,