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A recent surge in proposed legislation related to blockchain technology and digital assets has drawn significant attention to the complex legislative process in the Philippines.
With numerous bills, ranging from digital asset frameworks to the application of blockchain for the national budget, pending in Congress, understanding this procedure is key to tracking their progress.
An infographic from the office of Senator Bam Aquino details the five-step journey a bill must take to become a Republic Act.
The 5-Stage Legislative Process
1. Filing of Bills
The process begins when a member of the Senate or the House of Representatives files a proposed bill. It is given a number and read on the floor for the first time.
2. Committee Hearings
The bill is referred to a relevant committee (e.G., Committee on Banks, Financial Institutions and Currencies; or Committee on Science and Technology). This is the most critical stage, where the bill is scrutinized, debated, and amended. Committees hold public hearings, inviting stakeholders, experts, and government agencies to provide input. Most bills do not advance past this stage.
3. Plenary Deliberations
If a bill is approved at the committee level, it is sent to the plenary floor for sponsorship and debate by the entire chamber. It must pass three separate “readings,” with the third reading being the final vote of approval by the members of that chamber.
4. Bicameral & Ratification
For a bill to become law, it must be passed in identical versions by both the House and the Senate. Since versions often differ, a Bicameral Conference Committee, composed of members from both chambers, is formed to reconcile the differences.
The single, unified version they produce is then sent back to both chambers for ratification, or final approval.
5. Approval or Veto by the President
The ratified bill is sent to the President, who has three options:
- Sign the bill, making it law.
- Veto the bill, rejecting it and sending it back to Congress.
- Take no action, in which case the bill automatically lapses into law after 30 days.
Status of Key Blockchain Bills
The progress of current digital asset legislation illustrates this process.
The CADENA Act (SB 1330), which seeks to put government budgets on a public ledger, has notably advanced to the plenary deliberation stage (Step 3) in the Senate.
In contrast, most other proposals, such as the Digital Assets Act (SB 433) and various House bills for a Strategic Bitcoin Reserve (HB 421), remain in the crucial committee stage (Step 2). Their advancement is contingent on being debated and approved by their respective committees before they can move to the plenary.
“Mula sa paghahain hanggang sa pagpirma ng Pangulo — dumaraan ito sa mahabang proseso upang matiyak na makakabuti ito sa taumbayan. Kapag mas nauunawaan natin ang prosesong ito, mas nagiging handa tayong makilahok sa paggawa ng mga batas para sa bawat Pilipino.”
[Translation: From filing to the President’s signing—it goes through a long process to ensure it truly benefits the people. The more we understand this process, the more prepared we become to take part in creating laws for every Filipino.]
Paolo Benigno “Bam” Aquino IV, Senator, 20th Congress of the Philippines
This article is published on BitPinas: Explainer: How a Bill Becomes Law in the Philippines
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