Senate OKs automatic income classification of LGUs bill on 3rd reading

The Senate on Monday approved on third and final reading the proposed Automatic Income Classification of Local Government Units (LGUs) Act—one of the priority measures of the Marcos administration.

Senate Bill 2165 garnered 22 affirmative votes, two negative votes, and zero abstentions.

Senate Minority Leader Aquilino “Koko” Pimentel III and Deputy Minority Leader Risa Hontiveros voted against the passage of the measure.

In explaining his vote, Pimentel said the measure delegates legislative power to the secretary of the Department of Finance (DOF).

“My objection is based on a policy question on whether we should delegate this power, which is legislative in nature, to the secretary of the Department of Finance. The stand of this representation is there is no need to delegate this power because even without this delegation of power the bill will achieve its objective of updating the income classification and even enhancing it,” Pimentel said.

According to the minority chief, this power has been exercised by the legislative department since the 1930s.

“The delegation that we have decided to do does not comply with the constitutional requirement as delineated by the Supreme Court. The bill is not complete because the Secretary of Finance was given the discretion as to how to adjust the numerical income ranges. There [are] no parameters for the adjustment. There is also a lack of sufficient standards as there is no limitation to the authority of the secretary. They can increase by one percent or up to 100 percent the ranges without any guideline,” he added.

While he voted for the passage of the bill, Senator Robin Padilla also expressed reservations on the same provision Pimentel objected to.

“Ang pangkalahatang prinsipyo ng non-delegation of legislative powers ay nakadikit sa doktrina ng separation of powers,” he said.

“Binibigyan diin po natin na ang awtoridad ng Kalihim ng Department of Finance ay umaabot lamang sa pagrekomenda ng mga angkop na pagbabago ng naturang iskedyul ng kita o income ranges sa tamang awtoridad—ang Kongreso ng Pilipinas,” he said.

SB 2165 seeks to set the income thresholds for provinces, cities, and municipalities and empower the Secretary of Finance to regularly reclassify LGUs and revise income ranges in consultation with LGU leagues.

According to Senator JV Ejercito, sponsor of the measure, no LGU will be downgraded under the proposed law unless it falls below its income range during the next reclassification.

The measure also addressed redundant limitations between the Salary Standardization Law of 2019 and the Local Government Code of 1991, thus enabling LGUs to exercise their administrative autonomy in streamlining their organizational structures towards greater efficiency and responsiveness to their respective service delivery requirements, Ejercito said. — BM, GMA Integrated News