Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No, 8535

Introduced by HON. LUIS RAYMUND “LRAY” F, VILLAFUERTE, JR.

AN ACT
CURBING THE PRACTICE OF IMPOSING UNFUNDED MANDATES
ON LOCAL GOVERNMENT UNITS:

The Constitution, Article II, Section 25, provides:
The State shall ensure the autonomy of local governments.

Alocal government unit is a political subdivision of the State, which is constituted by law
and possessed of substantial control over its own affairs. Remaining to an intra
sovereign subdivision of one sovereign nation, but not intended, however, to be an
“imperium in imperio,” the local government unit is autonomous in the sense that it is
given more powers, authority, responsibilities and resources (Alvarez vs. Guingona, Jr.,
252 SCRA695 [1996]).

Unfortunately, the free exercise of such autonomy is hampered with the imposition, in the
absence of full consideration by Congress, of unfounded mandates on local government
units.

These unfounded mandates displace other essential local government priorities, impose
contradictory and inconsistent requirements, and compound the fiscal difficulties of local
government units to render basic services to the people.

Hence, this bill seeks to curb the practice of imposing unfounded mandates on local
government un low them to efficiently manage local affairs.

iL Al

LUIS RAY! “LRAY”/F/VILLAFUERTE, JR.



Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. 8535

introduced by HON. LUIS RAYMUND “LRAY” F. Vi

LAFUERTE, JR.

AN ACT
CURBING THE PRACTICE OF IMPOSING UNFUNDED MANDATES
ON LOCAL GOVERNMENT UNITS

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 “Unfunded Mandate Reform
Act.”

SECTION 2. Purposes. — The purposes of this Act are:

(A) To strengthen the partnership between the national goverment and focal
government units;

(B) To end the imposition, in the absence of full consideration by Congress, of mandates
on local government units in a manner that may displace other essential local

government priorities.

SECTION 3. Limitation on Application. — This Act shall not apply to any provision in a
statute or proposed or final regulation that —

(A) Enforces constitutional rights of the individuals;

(8) Establishes or enforces any statutory rights that prohibit discrimination on the basis
of age, race, religion, gender, or handicapped or disability status;

(C) Requires compliance with accounting and auditing procedures with respect to grants
or other money or property provided by the Government;

(D) Provides for emergency assistance or relief at the request of any local government,


or any official of such a government;

(E) Is necessary for the national security or the ratification or implementation of
international treaty obligations;

(F) The President designates
designates in statute; and

emergency tegistation and that the Congress so

(G) Pertains to Social Security.

SECTION 4, Establishment of an Advisory Council. - There shall be established an
advisory council, to be created under the Office of the President.

(A) In General. - The task force shall —
(1) Oversee the implementation of this Act;
(2) Investigate and review the role of unfunded mandates in the intergovernmental
relations and their impact on local objectives and responsibilities, and their impact
on the competitive balance between the national government, local government
units, and the private sector and consider views of and the impact on working men
and women on those same matters;
(3) Investigate and review the role of unfunded mandates imposed on local
ts, the private sector, and individuals;
(4) Investigate and review the role of unfunded local mandates imposed on the
private sector and individuals; and
(5) Make recommendations to the President and the Congress regarding—
(a) Allowing flexibility for local government units in complying with specific
unfunded mandates for which terms of compliance are unnecessarily rigid or
complex;
(b) Reconciling any two (2) or more unfunded mandates which impose
contradictory or inconsistent requirements;
(c) Terminating unfunded mandates which are duplicative, obsolete, or lacking
in practical utility;
(d) Suspending on a temporary basis, unfunded mandates which are not vital
to public health and safety and which compound the fiscal difficulties of local
government units, including recommendations for triggering such suspension;
(e) Consolidating or simplifying unfunded mandates or the planning or
reporting requirements of such mandates, in order to reduce duplication and
facilitate compliance by local governi t those mandates;
(f) Establishing procedures that, in cases in which a piece of legislation would
require a mandate on local government units, the same shall not increase local
government unit burdens; and
(g)Establishing the general rule that Congress shall not impose mandates on
local government units without providing adequate funding to comply with such
mandates; and
(h)
Each recommendation under paragraph (5) shall, to the extent practicable, identify the



specific unfunded mandates to which the recommendation applies.
(6) Assist Congress in its consideration of proposed legislation establishing or
revising programs containing mandates affecting local government units, and the
private sector by —
(a) Providing for the development of information about the nature and size of
mandates in proposed legislation; and
(b) Establishing a mechanism to bring such information to the attention of the
Senate and House of Representatives before the Senate and House of
Representatives votes on proposed legislation.
(7) Promote informed and deliberate decisions by Congress on the appropriateness
of mandates in any particular instance;
(8) Establish a point-of-order vote on the consideration in the Senate and House of
Representatives of legislation containing significant mandates;
(9) Assist agencies in their consideration of proposed regulations affecting local
government units by —
(a) Requiring that agencies develop a process to enable the elected and other
officials of local governments to provide input when agencies are developing
regulations; and
(b) Requiring that agencies prepare and consider better estimates of the
budgetary impact of regulations containing mandates upon local government
units before adopting such regulations;

(B) Criteria, —
(1) In General. - The Advisory Commission shall establish criteria for making
recommendations.

(2) Issuance of Proposed Criteria. - The Advisory Commission shalll issue proposed
criteria under this subsection not later than sixty (60) days after the date of the
enactment of this Act, and thereafter provide a period of thirty (30) days for
submission by the public of comments on the proposed criteria.
(3) Final Criteria. — Not later than forty five (45) days after the date of issuance of
proposed criteria, the Advisory Commission shall —
(a) Consider comments on the proposed criteria received under paragraph (2);
(b) Adopt and incorporate in final criteria any recommendations submitted in
those comments that the Advisory Commission determines will aid the Advisory
Commission in carrying out its duties under this section; and
(©) Issue final criteria under this subsection.

(C) Preliminary Report, —
(1) In General. — Not later than nine (9) months after the date of enactment of this,
the Advisory Commission shall —

(a) Prepare and publish a preliminary report on its activities under this Act,

including preliminary recommendations pursuant to paragraph (1);

'b) Provides copies of the preliminary report to the public upon request.
QP earings. — The Advisory Commission shall hold public hearings on the
preliminary recommendations contained in the preliminary report of the Advisory
Commission under this subsection.



(D) Final Report. — Not later than three (3) months after the date of the publication of the
preliminary report under subsection (3), the Advisory Commission shall submit to the
Congress a final report on the findings, conclusions, and recommendations of the
Advisory Commission under this section.

(E) Priority to Mandates that are Subject of Judicial Proceedings. — in carrying out this
section, the Advisory Commission shall give the highest priority to immediately
investigating, reviewing and making recommendations regarding unfunded mandates
that are the subject of judicial proceedings, if any.

SECTION 5, Membership. —

(A) NUMBER AND APPOINTMENT — The Commission shall be composed of six (6)
members, four (4) of which, to be appointed by the President as follows:
(1) Two (2) representatives from local government units;
(2) Two (2) members from among institutions in education or academia in the fields
of economics and/or public administration.

(B) The Secretary of Finance and the Secretary of Budget and Management shall
automatically be members of the commission in ex officio capacity.

SECTION 6. Pow he Commission. —

(A) Hearings and Sessions. — The Commission may, for the purpose of carrying out this
Act, hold hearings, sit and act at times and places, take testimony, and receive evidence
as it considers appropriate. It may administer oaths or affirmations to witnesses
appearing before it

(B) Obtaining Official Data. - The Commission may secure directly from any department
or agency information necessary to enable it to carry out this Act. Upon request of the
Commission, the head of that department or agency shall furnish that information to the
Commission.

(C) Mails. — The Commission may use mails in the same manner and under the same
conditions as other departments and agencies of the government.

(D) Contract Authority. - To the extent provided in advance in appropriations Acts, the
Commission may contract with and compensate government and private agencies or
persons for the purpose of conducting research or surveys necessary to enable the
Commission to carry out its duties under this Act.

(E) Experts and Consultants. - The Advisory Commission may procure temporary and
intermittent services of experts or consultanis subject to existing civil service rules and
regulations.


(F) Administrative Support Services. — The Advisory Commission is authorized to hire
personnel to provide administrative support services. The secretariat shall be headed
by an executive director, who shall be appointed by the Commissioners.

SECTION 7. 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 8. Repealing Clause. — Any law, presidential decree or issuance, executive
order, letter of instruction, administrative order, rule or regulation contrary to, or
inconsistent with, the provision of this Act is hereby repealed, modified, or amended
accordingly.

SECTION 9. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
Publication in at least two (2) newspapers of general circulation.

Approved,