ROUSE OF REPRE
Republic of the Philippines

House of Representatives RECEIVED
Quezon City pave: 30 JUN 2016

TIME: 27
SEVENTEENTH CONGRES BY:
First Regular Session i

HOUSE BILLNO. 194 REASTRATION UNIT,

BILLS AND INDEX SERVICE

Introduced by Hon. Anthony M. Bravo
and Hon. Sabiniano S. Canama
COOP-NATCCO PARTYLIST

EXPLANATORY NOTE

With the perspective of a fully transparent, accountable and participatory budget process,
this proposed bill revolutionizes what seems to be a discreet and exclusive function of the
legislative department. The battle cry of democracy will be best exemplified when civil society
organization (CSOs) will be entitled to actively participate in the whole budgetary process from
national down to the local budget.

As enshrined in Article XIII of the 1987 Constitution, the State respects their right to
pursue and protect “within the democratic framework, their collective interests and aspirations
through peaceful and lawful means, Among the rights and entitlements of the CSOs are to
receive notices and participate in meetings or deliberations relating to the annual budget, submit
an alternative budget, gain access to copies of the bills and budget proposals and serve as resource
persons during budget oversight.

‘Although their participation are not a panacea for all ills, they can however make valuable
contributions to thinking through and responding to some of the most pressing challenges which
is the budget allocation of the scarce resources.

The opening of the whole budgetary system in the arena of public deliberation will not
only empower independent civil society organization (CSOs) but will also increase the public
trust,

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

HON. ANTHONY M. BRAVO. HON. SABINIAKO S. CANAMA



v

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

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 194

Introduced by Hon. Anthony M. Bravo
and Hon. Sabiniano S. Canama
COOP-NATCCO PARTYLIST

AN ACT
INSTITUTIONALIZING CITIZENS PARTICIPATION IN THE BUDGET
PROCESS

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 “People’s Participation in
Budget Deliberations Act.”

SEC. 2, Declaration of Policy. ~ It is hereby declared the policy of the State to
recognize the role of independent civil society organizations (CSOs) as effective participants in
all levels of social, political, and economic decision-making, The State respects their right to
pursue and protect “within the democratic framework, their legitimate and collective interests
and aspirations through peaceful and lawful means,” as provided in Article XIII of the 1987
Constitution. For this purpose, the State shall guarantee the participation of CSOs in the
formulation, monitoring and evaluation of the national and local budgets to ensure that the
annual appropriations will be instruments of development and reflective of national and local

objectives, strategies, and plai

nd 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).
SEC. 3. Definition of Terms. - or purposes of this Act:

@ Accreditation refers to the process by which the Senate or the House of Representatives,
national government agencies (NGAs), and Local Sanggunians shall recognize, register, and
allow the CSOs to participate in the budget deliberation, The accreditation of people
organizations ( POs) and non-government organizations (NGOs) shall not confer juridical
personality on the organizations;

b) Civil Society Assembly refers to an inclusive meeting of all CSOs, POs, and
community/grassroots organizations, facilitated by the Regional Poverty Reduction Action
Team (RPRAT), to gather, analyze and share results of poverty situation and other local


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poverty data in their locality, identify strategies to address poverty and present them to the
Local Poverty Reduction Action Team (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;

¢) Civil Society Organization (CSO) refers to any organized citizens’ group including People’s
Organizations (POs) and Non-Government Organizations (NGOs) such as community groups,
labor unions, indigenous groups, charitable organizations, faith-based organizations,
professional associations, and foundations;

d) Government entity refers to any government agency or instrumentality, including local
government units (I.GUs), with which the POs and NGOs have legitimate concerns;

e) 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 CSOs and other stakeholders, and which will directly address the
needs of poor constituencies and the marginalized sectors in the city or municipality;

f) 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 said plan;

g) Non-government organization (NGO) refers to an independent private and non-profit
organization formed primarily for social and economic development with none of its officers
or members occupying elective government positions;

h) Participation mechanism refers to the means by which CSOs could participate effectively
and meaningfully in the government process of deliberating an annual budget to ensure that it is
responsive to the needs of different sectors in the community;

i) People's organization (PO) refers to a bona fide cooperative or association of citizens
organized for purposes not contrary to law with demonstrated capacity to promote the public
interest and with identifiable leadership, membership, and structure with none of its officers and
members occupying elective government positions; and

P) 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 the LPRAPs before they are transmitted to the concerned

national line agencies.

4. Coverage, — All CSOs may be allowed to participate and play a significant role
in the national as well as local annual budget deliberations: Provided, That they undergo the
mandatory accreditation process and comply with the implementing rules and regulations
issued by Congress, concerned NGAs, or Local Sanggunians, pursuant to Section 5 of this
Act.

Both Houses of Congress shall, through the Senate President and the House Speaker,
allow the active participation of accredited CSOs in the deliberation of the annual national

budget by inviting their duly authorized representatives as resource persons, subject to such


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internal rules and regulations as the Senate and the House of Representatives or its concerned
committee may provide.

All NGAs are required to conduct public consultations among their stakeholders,
including concerned CSOs, on their agency’s proposed budgets before these are submitted to
the Department of Budget and Management (DBM).

The Local Chief Executives (LCEs) and/or the Local Finance Committees shall hold
consultations on the proposed budgets of the LGUs with their constituents prior to submission
to the Local Sanggunian, ‘The CSOs are allowed to participate in the Local Development
Councils’ formulation of the Annual Investment Plan (AIP); Provided That such participation is
subject to the limitations provided by law, ordinances, rules, and regulations.

The local Sanggunian shall also invite the active participation of the accredited CSOs
during public hearings for the annual budget and other appropriation ordinances

SEC. 5. Application for Accreditation, ~ Within thirty (30) days upon the approval of
this Act, and after the election of a new Congress or a Local Sanggunian, the respective
Sceretaries of the legislative bodies shall send notices to CSOs, informing them that they may
apply for accreditation to enable them to participate in the annual budget deliberations.

‘The application for accreditation shall be filed with the Office of the Secretary of the
Senate, the Secretary General of the House of Representatives, the Secretary of the NGA
concerned, and the Secretary to the Local Sanggunian in the form prescribed by such offices for
the purpose, with the following documents as attachments:

a) Articles of Incorporation and by-laws of the applicant CSOs;

b) Certificate of Registration with the Securities and Exchange Commission
(si
c) Affidavit describing the organization, its work, and operations showing:

or other government accrediting agencies;

1, The character of the organization;
2. The purpose for which it is organized;
3. The list of activities or projects for the past two (2) years; and
4. List of officers, directors, trustees, and members.
d) Certificate of Good Record from the proper authority or concerned office;
¢) Duly audited financial statements for the past two (2) years showing the
assets and liabilities of the organization; and
f) Board Resolution or any other form of legal evidence to prove that the
respective organization has the desire and is mandated by its representation to
apply.

SEC. 6. Action on Accreditation. - All applications for accreditation shall be acted
within a period of ten (10) working days. Upon approval of the application by the Secretary of
the Senate, the Secretary General of the House of Representatives, the Secretary of Concerned
NGA, or the Secretary to the Local Sanggunian, a certificate of accreditation shall be issued to


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the organization which shall be valid for three (3) years upon approval. In case of disapproval, a
notice shall be sent to the CSO concerned. The notice shall include the date of hearing to allow
the CSO to appeal the disapproval. The final decision shall be rendered within ten (10) days
after the issuance of the said notice.

SEC. 7. Guidelines in Choosing the Representatives for Accredited CSOs. -
Accredited CSOs shall submit the name of their representative in the budget exercise who shall
serve at the pleasure of the accredited organizations, Nominated representatives of accredited
CSOs should be bona fide members of the organizations they represent.

Nominated/elected representatives of accredited CSOs shall be allowed to participate
during budget deliberations in the national and the local levels of government and shall be
chosen based on their prior engagement in budget deliberation or other related experiences.

SEC. 8. Cancellation of Accreditation, — Upon verified complaint in writing charging
the holder of a certificate of accreditation of having procured the certificate of accreditation by
fraud or deceit or through error, the Secretary of the Senate, the Secretary General of the House
of Representatives, the Secretary of concerned NGA, and the Secretary to the Local
Sanggunian shall have the power to cancel the certificate of accreditation: Provided, That no
accreditation shall be cancelled without due notice and hearing by the proper authority. Inaction
on the verified complaint by the proper authority within fifteen (15) days shall be construed in
favor of the CSOs involved.

SEC. 9. Rights and Entitlements. — An accredited CSO shall enjoy the following rights
and entitlements:

a) Receive notices of the hearings and consultations and/or calls for written submissions
from the Senate, the House of Representatives, concerned NGAs, and the Local Sanggunian to
ensure their active participation in the budget deliberations.

b) Participate through its duly authorized representative in any regular and consultative
public meetings, hearings, conferences, dialogues or debates relating to the government’s
annual budget, whether sponsored by either House of Congress, national agencies, or other
LGUs.

Accredited organizations must inform the secretariat of the Committee on Appropriations
of the House of Representatives or the Finance Committee of the Senate of their intent to
participate in the budget hearings of a specific agency.

c) Submit its own alternative or proposed budget and alternative sources of financing of
the department or agency with which the sector or organization it represents is concerned;

d) Gain access to copies of the bills or budget proposals filed in both Houses or LGUs
concerned and all information and submissions relative thereto;

¢) Present position papers or written proposals on projects and programs of the

government entities whose budgets are under deliberation;


Own

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f) Gain access to and make copies of the data coming from both Houses and concerned

NGAs and LGUs; and

g) Serve as resource perso:

Nothing in this Act shall
incentives as provided by law.

SEC. 10, Suspension of
suspended shall not be allowed
deliberations in any manner, whi

SEC. 11, Non-Aceredited
participate in the process by si

s during budget oversight.
¢ construed to deprive CSOs of their rights, privileges, and
Entitlements of CSOs, ~ CSOs whose accreditation have been
lo engage or participate in the national and local annual budget
ther directly or indirectly.

CSOs. — CSOs that are unable to get accreditation may still
ibmitting position papers for the consideration of Congress,

NGAs, and the Local Sanggunidn, and by attending and observing public consultations, They

may also be invited to expound g
SEC. 12. Publie and Tim
participate in an informed mani
public pos
documents as well as actual ex}
Management (DBM) and LGUs
the budget calendar. In time

web, and/or other

Budget Call, Budget Message,

Sources of Financing, Details of

n their proposals.
ly Disclosure of Budget Proposals. ~ In order for citizens to
er, Congress, concerned NGAs, and LGUs shall post on the
ting arcas, or otherwise make available proposed budget
enditures made in the past year, The Department of Budget
hall post all the developments in the budget process following
ith the budget calendar, the DBM shall immediately post the
‘National Expenditure Program, Budget of Expenditures and

Programs and Projects, and Staffing Summary on the annual

budget of the national government in the first week of September of each year. Concerned

government agencies shall be required to post their budget presentations to Congress a week

before the start of the budget he:
SEC. 13, Enhancing Bud)
institutionalizing a mechanis
agencies to determine key progr
their area of jurisdiction, the fe
of this Act:
A. A Local Poverty Red
as members:
a) City/ Municipal
b) A CSO represer
c) The Sanggunian,
Committee on
d) All department
agriculture offi

as members;

irings at the Committee on Appropriations.

get Planning Mechanism for the LGUs. — For the purpose of
that will allow LGUs and CSOs to collaborate with line

ms and projects necessary for the growth and development of

lowing Teams shall convene one (1) year after the effectivity

ction Action Team which shall be composed of the following

Mayor as ex-officio chairperson;
ative as co-chairperson;

 Panglunsod/Bayan member who is the chairperson of the
.ppropriations, as ex-officio member ;

heads of LGUs such as the planning officer, budget officer,

ser, social welfare and development officer and health officer,


e) Representatives
City/Municipal

Social Welfare

f national government agencies such as DSWD’s

Development Officer, DOLE’s Public Employment Service

Officer (PESO) manager, DILG’s City/ Municipal Local Government

Operations Officer, School District Supervisor, and DAR’s Agrarian Reform

Officer as members;

) A Communi
member of any
teams; parent-t

government ag

ity leader , who is a resident of the city or municipality and a
lof the following CSOs : DOH’s organized community health
cher association (PTA); CSOs accredited by any national

ency; women’s groups; basic sector organizations, other

‘community or grassroots organizations; and

g) Representative f

All. representatives referri
CSOs. The accreditation requiret
Rules and Regulations (IRR).

In the event that the secto
CSOs and concerned national g
of the basic sectors identified.
CSOs for the inclusion in the
members enumerated under Sect

The LPRAT shall be cor

rom the business sector

-d to in Section 13 (f) and (g) shall come from duly accredited
ments and processes shall be provided for in the Implementing

s indicated are not organized, the LGU, in coordination with
ernment agencies, shall initiate and support the organization
hhe sectors will undergo the same accreditation process as the
LPRAT, The co-chairperson shall be elected from and by the
ion 13 (f) and (g).

posed of an equal number of representatives from both

government and non-government organizations

The LPRAT shall exercise
a) Identify priority povert)
In the absence of a conse!
b) Develop and formulate
projects from a list issued)

to be provided in the IRR):

©) Conduct public consul
embodied in the LPRAP re}
d) Submit the LPRAP to t
) Participate in the budge
B. A Regional Poverty
following as members:
a) Department of the Int
chairperson;
b) DBM Regional Directo’

the following powers and functions

reduction projects through a consensus among its members.
sus, the decision shall be made through a majority vote;
the LPRAP based on the identified priority poverty reduction
by the DBM and following the process and guidelines

lations, when necessary, to ensure that the projects to be
flect an actual need in the community;

¢ RPRAT for validation; and

deliberation process of the Local Development Council
Reduction Action Team which shall be composed of the

rior and Local Government (DILG) — Regional Director as

as co-chairperson ;



Soerauneun

©) Regional Directors of the following department and agencies as members
Agriculture,
Agrarian Reform, Environment and Natural Resources, Health, Education, Labor and
Employment, Social Welfare and Development, Trade and Industry, Tourism, National
Economic and Development Authority, and Technical Education and Skills
Development Authority;

d) A representative from the Department of Energy and the National Electrification
Administration as members; and

e) Representatives of Provincial CSOs as members.

‘The RPRAT shall exercise 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 an independent action of the CSO.
It is prohibited from influencing and interfering, in any way, in the selection of the CSO
representatives;

¢) Provide technical assistance to the LPRAT as the latter develops and formulates their
LPRAPs,

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

SEC. 14, Monitoring and Evaluation System. — The offices of the Senate Secretary,
House Secretary General, concerned Department Secretary, and the Secretary to the Local
Sanggunian shall be tasked with the establishment of an effective monitoring and evaluation
system for civil society accreditation and participation mechanisms.

‘An assessment tool mechanism for civil society participation shall be constituted and
afforded for the adequate, timely, and relevant feedback mechanism on the progress and status
of budget implementation.

SEC. 15. Penalties . - Any person who shall willfully restrain or prevent a
representative of a CSO from exercising rights granted under this Act, or violate any of the
provisions hereof, shall suffer a penalty of suspension of one (1) month to three (3) months, or
a fine of not less than Thirty Thousand Pesos (P30,000.00) but not more than Fifty Thousand
Pesos (P50, 000.00), or both at the discretion of the court.

SEC. 16. Implementing Rules and Regulations. - The DBM, in consultation with the
Senate, the House of Representatives, the DILG , CSOs, and other concerned agencies, shall
issue the Implementing Rules and Regulations (IRR) within ninety (90) days after the approval
of this Act.


SEC. 17, Separability Clause. ~ If any provision of this Act is declared unconstitutional,
the same shall not affect the validity and effectivity of the other provisions hereof.

SEC. 18. Repealing Clause. ~ All laws, decrees, orders and issuances or portion thereof,
which are inconsistent with the provisions of this Act are hereby repealed or modified
accordingly.

SEC. 19, Effeetivity. ~ This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in any national newspaper of general circulation

Approved,