Republic af the Philippines
House of Representatives
Quezon City, Meteo Atanila

Nineteenth Congress
Third Regular Session

HOUSE BILL No. 111812

Introduced by Representatives Ferdinand Martin G. Romualdez,
Aurelio “Dong” D. Gonzales Jr., Manuel Jose “Mannix” M. Dalipe,
Yedda Marie K. Romualdez and Jude A. Acidre

EXPLANATORY NOTE

This bill seeks to provide a comprehensive fi
Judiciary, creating for the purpose the Judiciary ‘Trust Fund,

I autonomy for the

Section 3, Article VIII 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.” ‘This
principle is essential for maintaining judicial independence, enabling the
Judiciary to function freely from external pressures and influences.

‘As a separate and co-equal branch of government tasked with resolving
actual controversies involving legally demandable and enforceable rights, the
Judiciary includes the Supreme Court, Sandiganbayan, Court of Appeals, and
Court of Tax Appeals and all lower courts. To effectively fulfill its constitutional
mandate, the Judiciary must be equipped with the necessary financial resources
and administrative authority.

A central feature of this bill is the establishment of the Judiciary Trust
Pund in lieu of the current Judiciary Development Fund, which will consolidate
all revenues, legal fees. and appropriations for the Judiciary. This fund will
provide a stable financial foundation essential for the effective administration of
justice. The legislation mandates that the Department of Budget and


Management (DBM) release funds unconditionally, preventing delays that could
hinder judicial operations. Additionally, it empowers the Chief Justice or the
Supreme Court to realign budgetary allocations as necessary. ensuring
flexibility in resource management to meet urgent operational demands.

The bill grants the Judiciary the right to continue collecting legal fees and
to adjust these fees based on principles of accessibility and the publie’s ability
to pay. While local government units may contribute resources, the Act
delineates clear limitations to preserve judicial independence and prevent undue
influence on judicial functions.

Furthermore, the legislation allows for the reorganization of the
Judiciary’s administrative structure and aims to enhance compensation packages
for both judicial and non-judicial personnel to ensure continuity and
sustainability of service. Importantly, all judicial expenditures and revenues will
remain subject to post-audit by the Commission on Audit (COA). ensuring
transparency and accountability in managing public funds.

The necessity for this legislation is emphasized by various jurisprudential
interpretations of judicial fiscal autonomy. as explained in key jurisprudence
such as Cesar Bengzon, et al. v. Hon. Franklin N. Drilon, G.R. No. 103524, 15
April 1992, which highlighted the importance of allowing the Judiciary full
flexibility in resource allocation. Similarly, rulings in Civil Service Commission
v. Department of Budget and Management, G.R. No. 158791, 22 July 2005,
affirm that appropriations for entities with fiscal autonomy should be released
unconditionally.

This bill represents significant progress in securing the financial
independence of the Philippine Judiciary. By establishing a Judiciary Trust Fund
and granting essential financial and administrative authorities, the bill aims to
enhance operational efficiency, transparency. and accountability. thereby
effectively empowering the Judiciary to fulfill its constitutional responsibilities.
A financially independent Judiciary is crucial for maintaining public trust,
ensuring that justice is delivered impartially and equitably, and upholding the
rule of law.

In view of the foregoing, the immediate passage of this bill is eamestly
sought.


AUREL] ONG” Pf. GONZAL!

M.

UEL JOSE “MANNIX;

\YEDPA MARIE K. ROMUALDEZ



WON VeYne

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Republic of the Philippines

House of Representatives
Quezon City, Meteo Manila

Nineteenth Congress
Third Regular Session

HOUSE BILLNo. 11181

Introduced by Representatives Ferdinand Martin G. Romualdez,
Aurelio “Dong” D. Gonzales Jr., Manuel Jose “Mannix” M. Dalipe,
Yedda Marie K. Romualdez and Jude A. Acidre

AN ACT
PROVIDING FOR A COMPREHENSIVE FISCAL AUTONOMY FOR
THE JUDICIARY, CREATING FOR THE PURPOSE THE JUDICIARY
TRUST FUND

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 “Judiciary
Fiscal Autonomy Act.”

SEC. 2. Declaration of Policy. — It is the policy of the State to protect
the independence of the Judiciary, including its fiscal independence, from any
interference and ensure that the rights of the parties are respected through the
conduct of fair judicial proceedings. Towards this end, the State affirms and
strengthens the fiscal autonomy of the Judiciary enshrined in the Constitution,

which declares that the appropriations for the Judiciary may not be reduced


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below the amount appropriated for the previous year and, after approval by
Congress, shall be automatically and regularly released.

SEC. 3. Judiciary Trust Fund. — The Judiciary Trust Fund is hereby
established for the use and operation of the Judiciary, particularly to grant or
augment allowances and other benefits to members and personnel of the
Judiciary and to finance the acquisition, maintenance, and repair of office
equipment and facilities. All the funds collected for, or accruing to, the
Judiciary shall form part of the Judiciary Trust Fund, which includes the
following:

(a) Appropriations for the Judiciary under the annual General
Appropriations Act;

(b) Legal fees that are collected by the Judiciary pursuant to Rule 141
of the Rules of Court, as amended;

(c) Donations, contributions, bequests or grants from local government
units; and

(d) All interests or income derived from the Judiciary Trust Fund.

The Supreme Court shall utilize the appropriations for the purposes for
which the same was appropriated and use any savings from the appropriations
for whatever purposes it may deem necessary and reasonable for the fulfillment
of the Judiciary’s mandate. The amounts accruing to the Judiciary Trust Fund
shall be deposited by the Chief Justice or the duly authorized representative in

an authorized government depositary bank. All expenditures and revenues of
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the Judiciary shall be subject to post-audit by the Commission on Audit (COA),
under pertinent laws, rules and regulations.

SEC. 4. Submission of Annual Budget Proposal. — The Supreme Court
shall submit to Congress for approval a budget of expenditures and sources of
financing, reflecting total revenues and expenditures for the budget year, with
copy furnished to the Department of Budget and Management (DBM).

SEC. 5. Administration and Allocation of Funds, — The Chief Justice of
the Supreme Court shall administer and allocate the Judiciary Trust Fund and
shall approve and authorize disbursements and expenditures of the Judiciary
Trust Fund in accordance with the guidelines set in this Act and its
implementing rules and regulations.

SEC. 6. Realignment and Automatic Release. — The Chief Justice of the
Supreme Court may realign the budget from one expense account to another,
except the Capital Outlays, or from one functional unit or category to another,
without the approval of the DBM.

The DBM shall automatically release to the Supreme Court, without need
for any request, the appropriations and monthly cash requirements of the
Judiciary. The releases shall not be conditioned on approved work and financial
plans, nor any financial report.

SEC. 7. Legal Fees. — The Supreme Court shall determine the
appropriate level of fees and charges pursuant to Section 3 of Rule 141 of the

Rules of Court, in accordance with the following policy objectives:


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(a) Access to justice specially for the disadvantaged and poor sectors
of society;

(b) Internal revenue generation for the Judiciary, to support its
operations; and

(c) Ability to pay of those who avail the services of the judicial
system.

SEC. 8. Prohibition. — The 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. 9. Creation and Reorganization of Administrative Structure. —
The Supreme Court shall create such offices as may be necessary, and
reorganize its administrative structure, both at the national and regional levels,
for purposes of oversight or operations, to carry out the purposes of this Act,
and enable additional functions and responsibilities stated in this Act, within the
limit of available resources.

The Supreme Court shall create such positions, and allocate the necessary
budgetary support for the operations of such offices. The creation of offices at
the regional level shall be guided by the principle of decentralization of

administrative, financial, and personnel matters, and the objective to bring court
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management closer to the litigants, and others who avail the services of the
judicial system.

SEC. 10. Salary and Personnel Administration. - The Supreme Court
shall determine the number and positions of court personnel necessary for the
smooth functioning of the Judiciary, within the limits of the approved
appropriation and 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.

The Supreme Court shall institute measures to provide sufficient,
attractive and competitive compensation for judicial and non-judicial personnel
to ensure continuity and sustainability of service, and support career
development. Such measures include the broadbanding of salaries, and the
provision of total cash compensation packages.

For purposes of this Section, “broadbanding" refers to the consolidation
of a range of similar job classifications into a single pay band for purposes of
compensation.

Sec. 11. Proposed Revisions of the DBM. — The budget proposal
prepared by the Supreme Court shall be incorporated in the National
Expenditure Program (NEP) without any revisions. The DBM may, however,
propose revisions thereon as it may deem appropriate: Provided, That the

revisions are clearly indicated in the NEP: Provided, further, That the DBM


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shall consult in writing the Supreme Court concerning its comments on, and
suggested revisions to, the proposed budget for the Judiciary.

Upon written request of the DBM, the Supreme Court may submit reports
of operation and income, current personnel, work and financial plans and
similar reports to the DBM only for recording purposes and shall not be a
condition precedent for subsequent fund releases.

SEC. 12. Transfer of Physical Assets. — Within six (6) months from the
effectivity of this Act, 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
govemment units, or government-owned or -controlled corporations.
Thereafter, the Supreme Court shall exercise the ownership, management,
control, as well as the security, maintenance and disposition, of such properties.

SEC. 13. Delegation of Authority. - The Supreme Court En Banc may,
through an appropriate instrument, delegate to the Chief Justice, the Court
Administrator, or other 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 prescribed.

SEC. 14. Reportorial Requirement, —Within thirty (30) days from the
opening of each regular session of Congress, the Supreme Court shall submit to

the President and to Congress its annual accomplishment and financial report.


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SEC. 15. Implementing Rules and Regulations. — Within six (6) months
from the effectivity of this Act, the Chief Justice of the Supreme Court shall, in
consultation with the DBM and the COA, 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.

SEC. 16. Separability Clause. — If any provision of this Act shall be held
unconstitutional or invalid, the other provisions not otherwise affected shall
remain in full force and effect.

SEC. 17. Repealing Clause. — Presidential Decree No. 1949 establishing
the Judiciary Development Fund is repealed. Section 373 of Republic Act No.
7160, as amended, otherwise known as the “Local Government Code of 1991,”
is deemed amended. All other laws, executive orders, rules, and regulations
inconsistent with or contrary to this Act, are deemed repealed or modified
accordingly.

SEC. 18. Effectivity Clause. — This Act shall take effect after fifteen (15)
days following its publication in the Official Gazette or in at least two (2)
newspapers of national circulation.

Approved,