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PHILIPPINES - REGULATORY IMPACT ASSESSMENT (RIA) GUIDELINES DRAFT – FOR DISCUSSION AND FINALISATION Process RIA can be applied to new regulations, ensuring that only regulations that benefit the economy become effective, as well as to existing regulations, by modifying or removing regulations already in place. Generally, when implementing a RIA Regime, the focus is first on the flow of new regulations. Once good practice has been established, the focus then extends to reforming the stock of existing regulations. In developing a regulatory proposal, a regulator (eg., department) would: 1. Prepare a Preliminary Impact Assessment (PIA) to establish whether the regulatory proposal is likely to involve impacts on business, community (individuals) or the government. 2. If the PIA shows the impact could be significant compliance impacts on business, community or the government, then the cost of those impacts are estimated using a standard costing methodology and a Regulatory Impact Statement (RIS) is completed. The PIA/RIS is both a process whereby each regulation is assessed and a document recording how the regulation was made and assessed. Elements Key elements of a ‘best practice’ RIA Regime are: 1. Institutional Arrangement is established that - i. Embeds the RIA Regime in the law/regulation making process and systems ii. Establishes a central RIA body to support regulators with RIA iii. Establishes RIA Champions/Units in regulators (eg., departments) to be the contact point with the central RIA body. 2. RIA Support Materials and Tools are developed that - i. Promote ‘best practice’ principles in regulation making and review ii. Support both regulators and regulated parties to participate efficiently and effectively in the RIA system. 2.3 Philippines Law Making Authorities and Approval Process The 1987 Constitution of the Republic of the Philippines governs the making of laws in Philippines. Key authorities in the Philippines law making system include: Version 4.0 23 July 2012 DRAFT Page 6/24
PHILIPPINES - REGULATORY IMPACT ASSESSMENT (RIA) GUIDELINES DRAFT – FOR DISCUSSION AND FINALISATION • President • Congress • Secretaries of Departments • Independent authorities • City Municipal Provincial Council • Local Government authorities The Philippines system of legal acts is comprised of: 1. Constitution 2. Republic Acts of Congress 3. Executive Orders and Issuances of the President 4. Regulatory Guidelines of independent Authorities 5. Administrative Orders, Implementing Rules and Regulations, and Memorandum Circulars of Department Secretaries 6. Resolutions and Ordinances of Local Governments. 2 primary forms of regulation in the Philippines system are Acts and Orders. These are usually prepared by the relevant Department, initiated by the Secretary or at the request of either the Congress or the President. For the purposes of the Philippines Pilot RIA Guidelines, the term ‘regulations’ is used to refer to regulatory proposals approved and issued by Congress, the President, and the departments involved in the RIA Pilot Program, ie. DOF, DOLE and DOT. The process and approvals required for making regulations in the Philippines varies depending on the type of regulation proposed. An overview of how RIA fits into the law making approval process for regulations is set out below. Version 4.0 23 July 2012 DRAFT Page 7/24
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