LEGISLATIVE INFORMATION

 LEGISLATIVE PROCESS - HOW A BILL BECOMES A LAW 1. PREPARATION OF THE

BILL2. FIRST READING3. COMMITTEE CONSIDERATION / ACTION4. SECOND

READING5. THIRD READING6. TRANSMITTAL OF THE APPROVED BILL TO THE

SENATE7. SENATE ACTION ON APPROVED BILL OF THE HOUSE8. CONFERENCE

COMMITTEE9. TRANSMITTAL OF THE BILL TO THE PRESIDENT10. PRESIDENTIAL ACTION ON

THE BILL11. ACTION ON APPROVED BILL12. ACTION ON VETOED BILL

1. PREPARATION OF THE BILL

The Member or the Bill Drafting Division of the Reference and Research Bureau prepares and
drafts the bill upon the Member's request.

2. FIRST READING

1. The bill is filed with the Bills and Index Service and the same is numbered and reproduced.
2. Three days after its filing, the same is included in the Order of Business for First Reading.
3. On First Reading, the Secretary General reads the title and number of the bill. The Speaker
refers the bill to the appropriate Committee/s.

3. COMMITTEE CONSIDERATION/ACTION

1. The Committee where the bill was referred to evaluates it to determine the necessity of
conducting public hearings.
If the Committee finds it necessary to conduct public hearings, it schedules the time
thereof, issues public notics and invites resource persons from the public and private
sectors, the academe and experts on the proposed legislation.
If the Committee finds that no public hearing is not needed, it schedules the bill for
Committee discussion/s.
2. Based on the result of the public hearings or Committee discussions, the Committee may
introduce amendments, consolidate bills on the same subject matter, or propose a
subsitute bill. It then prepares the corresponding committee report.
3. The Committee approves the Committee Report and formally transmits the same to the
Plenary Affairs Bureau.

4. SECOND READING

1. The Committee Report is registered and numbered by the Bills and Index Service. It is
included in the Order of Business and referred to the Committee on Rules.
 2. The Committee on Rules schedules the bill for consideration on Second Reading.
3. On Second Reading, the Secretary General reads the number, title and text of the bill and
the following takes place:
a. Period of Sponsorship and Debate
b. Period of Amendments
c. Voting which may be by:
i. viva voce
ii. count by tellers
iii. division of the House; or
iv. nominal voting

5. THIRD READING

1. The amendments, if any, are engrossed and printed copies of the bill are reproduced for
Third Reading.
2. The engrossed bill is included in the Calendar of Bills for Third Reading and copies of the
same are distributed to all the Members three days before its Third Reading.
3. On Third Reading, the Secretary General reads only the number and title of the bill.
4. A roll call or nominal voting is called and a Member, if he desires, is given three minutes to
explain his vote. No amendment on the bill is allowed at this stage.
a. The bill is approved by an affirmative vote of a majority of the Members present.
b. If the bill is disapproved, the same is transmitted to the Archives.

6. TRANSMITTAL OF THE APPROVED BILL TO THE SENATE

The approved bill is transmitted to the Senate for its concurrence.

7. SENATE ACTION ON APPROVED BILL OF THE HOUSE

The bill undergoes the same legislative process in the Senate.

8. CONFERENCE COMMITTEE

1. A Conference Committee is constituted and is composed of Members from each House of

Congress to settle, reconcile or thresh out differences or disagreements on any provision of
the bill.
2. The conferees are not limited to reconciling the differences in the bill but may introduce
new provisions germane to the subject matter or may report out an entirely new bill on the
subject.
3. The Conference Committee prepares a report to be signed by all the conferees and the
Chairman.
4. The Conference Committee Report is submitted for consideration/approval of both Houses.
No amendment is allowed.

9. TRANSMITTAL OF THE BILL TO THE PRESIDENT

Copies of the bill, signed by the Senate President and the Speaker of the House of Representatives
and certified by both the Secretary of the Senate and the Secretary General of the House, are
transmitted to the President.

10. PRESIDENTIAL ACTION ON THE BILL

1. If the bill is approved the President, the same is assigned an RA number and transmitted
to the House where it originated.
2. If the bill is vetoed, the same, together with a message citing the reason for the veto, is
transmitted to the House where the bill originated.
11. ACTION ON APPROVED BIL
The bill is reproduced and copies are sent to the Official Gasette Office for publication and
distribution to the implementing agencies. It is then included in the annual compilation of Acts and
Resolutions.

12. ACTION ON VETOED BILL

The message is included in the Order of Business. If the Congress decides to override the veto, the
House and the Senate shall proceed separately to reconsider the bill or the vetoed items of the bill.
If the bill or its vetoed items is passed by a vote of two-thirds of the Members of each House, such
bill or items shall become a law.

NOTE:A joint resolution having the force and effect of a law goes
through the same process.

Constitutions are the fundamental law of every nation. They put in place
basic tenets and forms of government to be observed in the country. The
Philippine Constitution is no different. One of the vital portions of our
Constitution provides us with the three branches of government: the
legislative department, there to pass laws; the executive department, to
enforce laws; and, the judiciary department, to interpret laws. The doctrine
of separation of powers ensures that neither branch encroaches on the
powers of the other. Each branch is considered as a coequal of the other
two in hierarchy but is considered supreme in matters which pertain to that
branch.

While these branches have distinct powers and functions, there is also an
interplay among them to ensure that their roles are properly being carried
out. This system of checks and balances ensures that each branch is still
acting within the parameters set for it in the Constitution.

The system of checks and balances is manifest in the exercise of passing,

executing, and interpreting a law. A law begins by it being proposed,
discussed and passed in Congress. Thereafter, the bill is passed to the
executive department, specifically the President, so that he may act on the
bill. Acting on such bill would mean either approving the bill, letting it pass
into law or vetoing the same.

This veto power was granted in the Constitution through Article VI, Section
27 (1). Generally, when a President disapproves a bill, he or she exhibits
such disapproval by executing a veto to invalidate the whole law. The
power must generally be exercised in its entirety.

However, an exception exists under Article VI, Section 27 (2) when the bill
is an appropriation, revenue or tariff bill. When any of these bills are
involved, the President may execute a line or item veto. Such veto will not
invalidate the whole bill but only the particular item under consideration.
The other items to which the President does not object shall not be affected
by this veto.

An example of this exercise can be seen in recent events. Republic Act

10963, also known as the Tax Reform for Acceleration and Inclusion
(TRAIN) law, was passed on Dec. 19, 2017. This law amended certain
provisions of the old tax law, the National Internal Revenue Code (NIRC).
Section 6 of the TRAIN law amended Section 25 of the NIRC, which
pertains to the entitlement of employees of certain qualified companies to a
fifteen percent (15%) preferential tax rate.

The TRAIN Law added a subsection to Section 25 of the NIRC, which

provided that regional headquarters (RHQs), regional operating
headquarters (ROHQs), offshore banking units (OBUs) or petroleum
service contractors and subcontractors registering with the Securities and
Exchange Commission (SEC) after Jan. 1, 2018 would no longer be eligible
to avail of the preferential tax rate. This Section ended with the proviso
which stated, “Provided, however, That existing RHQs/ROHQs, OBUs or
petroleum service contractors and subcontractors presently availing of
preferential tax rates for qualified employees shall continue to be entitled to
avail of the preferential tax rate for present and future qualified employees.”

President Rodrigo Duterte vetoed certain provisions of the TRAIN law

including the proviso under the proposed Section 25 (F). In his veto
message, the President explained that the proviso violates the “Equal
Protection Clause under Section 1, Article III of the 1987 Constitution, as
well as the rule of equity and uniformity in the application of the burden of
taxation.”

However, in the same veto message, he also states, “Given the significant
reduction in the personal income tax, the employees of these firms should
follow the regular tax rates applicable to other individual taxpayers.”

The Bureau of Internal Revenue has interpreted this to mean the complete
withdrawal of the preferential tax rate, regardless of the date of registration
of the RHQ, ROHQ, OBU, etc. with the SEC.

However, there is a contrary interpretation that the intention of the

President was only to remove the proviso, and not the preferential rate
altogether. This would mean that only future qualified employees are
prohibited from availing of the preferential tax rate, but present qualified
employees may still avail of such rate. Indeed, when only a part of the law
is amended or declared unconstitutional, the rest of the law stands and is
enforceable. The same may hold true for an item veto.

In the end, the proper understanding would be best determined by the

judiciary department, in exercise of its power to interpret laws. The court
with appropriate jurisdiction has the authority to rule on what the law should
actually be, based on principles of law.

These circumstances exhibit the confluence of the three branches and the
roles that all of them play in order to pass laws in the land. The principles of
separation of powers and checks and balances maintain the stability and
efficiency that our government still holds today.