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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

12

HOUSE BILL NO.

Introduced by Representatives FERDINAND MARTIN G. ROMUALDEZ,
YEDDA MARIE K. ROMUALDEZ, FERDINAND ALEXANDER A. MARCOS.
and JUDE A. ACIDRE

EXPLANATORY NOTE,

The aim of rightsizing the government bureaucracy is to improve public service delivery by
minimizing duplication, redundancy or overlapping in functions.

But we all know that rightsizing the bureaucracy is without complications. It is not an easy task to
overhaul a bloated bureaucracy considering the vastness and complexity of government offices.
Nonwithstanding that thousands of government employees stand to be affected as well as the difficulty of
designing an organizational structure that shall function effectively, and realize the legislative intent of the
measures in the context of good governance, improved public service delivery and fiscal prudence

The Bill grants authority to the President of the Philippines to rightsize the Executive Branch in
order to eliminate redundant, duplicate, and overlapping functions. To implement and oversee the
implementation of the Rightsizing Program under the bill, the Committee on Rightsizing the Executive
Branch shall be established. Said Committee is given a three-year timeline to implement the rightsizing
program.

However, for the co-equal branches of Government like the Legislature and the Judiciary,
Constitutional Commissions, Office of the Ombudsman, and the Local Government Units shall have the
option to adopt the Rightsizing Program or design its own program,

In the 18° Congress, similar measures were filed by Representatives Lord Allan Jay Q. Velasco,
Rodrigo A. Abellanosa, Lawrence “Law” H. Fortun, Jericho Jonas B. Nograles, John Marvin “Yul Servo” C
Nieto, Ferdinand L. Hernandez, Joel Mayo Z.. Almatio, Michael Odylon L. Romero, Joy Myra Salvador-
‘Tambunting, Alfred Vargas, Luis Raymund “LRay” F. Villafuerte, Jr. and Mario Vittorio “Marvey” A-

fo.

In view of the foregoing, enactment of this bill into law is earnestly sought.



FEWDINAND MARTINA. ROMUAIDEZ
Repreventative
First District, Leyte

FERDINAND AL! DER A. MARCOS
Representative
First District, locos Norte

YEDMA MARIE K. ROMUALDEZ
Representative
Party-List, Tingog Sinirangan

JUDE #/ACIDRE

Party-List, Tingog Sinirangan


weer anneene

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
Regular Session

HOUSE BILL No. 12

Introduced by HON. FERDINAND MARTIN G. ROMUALDEZ

AN ACT
RIGHTSIZING THE NATIONAL GOVERNMENT TO IMPROVE PUBLIC
SERVICE DELIVERY

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 a
Goverment Act.”

SEC. 2. Declaration of Poli

‘Rightsizing the National

= It is hereby declared the policy of the State

to promote and maintain effectiven

efficiency and economy in the government and enhance

1 capacity to improve public service delivery, and to ensure the attainment of the

‘ocietal and economic development goals and objectives. Consistent with this, the
government shall focus its functions and resources on the essential role, scope, and level of
governance, and minimize, if not eliminate, redundancies, overlaps and duplication in its

operations and simplify its rules and regulations, systems and processes.

SEC. 3. Coverage. - This Act shall cover all agencies of the executive branch, including

's, commissions, boards, councils, and all other entities attached to or

departments, bureaus, o

under their administrative supervision, government-owned ot controlled corporations (GOCC:

not covered by Republic Act No. 10149 or the GOCC Governance Act of 2011

The Ley

lature, the Judiciary, the Constitutional Commissions, and the Office of the

Ombudsman may, within their respective authorized appropriations, likewise rightsize their

respective offices, consistent with the principles and guidelines contained in this Act.


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Local Government Units (LGUs) may also rightsize their 1

spective offices, consistent

with the governing principles and guidelines contained in this Act and the provisions of RA No.

7160 of the Local Government Code of 1991, and subject to their financial capability.

The Governance Commission for GOCCs (GCG) shall continue to exercise it

authority

under RA No. 10149 to reorganize, merge, streamline, abolish, or privatize any GOCC, in

consultation with the department or agency to which the GOCC is attached.
SEC. 4. Principles and Guidelines. - The National Government shall implement a
Rightsizing Program in accordance with the following principles and guidelines:

a) The role of goverment and the scope, level, and prioritization of government
activities shall be determined in accordance with the constitutional mandate, political and socio:
economic objectives of the government, and available resources;

b) The government shall establish a conducive policy environment to encourage active
private sector engagement in the production and delivery of goods and services:

¢) The delineation of responsibilities berween the National Government and the LGUs

in the provision, production, and delivery of goods and services shall be clearly defined;

d) A whole-of government approach shall be adopted to ensure seamless operations of

agencies within and across sectors and to be more responsive to public needs;

©) Government operations shall be simplified so that the departments/agencies can
focus on the performance of their core functions and implementation of programs and projects
that will lead to the attainment of the desired sectoral and national goals and outcomes;

}) Government systems and proces:

s shall be simplified and modernized to facilitate

the delivery and upgrade the quality of frontline services, as well as to improve policy

formulation, planning and performance evaluation, and raise overall producti

of the public
sector;
£) Government rules, procedures, and requirements shall be rationalized to reduce the

regulatory burden on citizens, busi and other stakeholders, as well as reduce the

administrative burden on the part of the government; and

ned to facilitate the effective,

h) The organizational structure of an agency shall be des
efficient, and economical implementation of programs and projects, and the attainment of

organizational outputs and outcomes; rightsized and the appropriate

atting mix shall be

determined based on the skills and competencies required to effectively and efficiently carry out

the agency mandate and functions


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SEC. 5. Authority of the President of the Philippines to Rightsize the Operations

of the Executive Branch, - Pursuant to the governing cules, policies, standards and guidelines

stipulated in this act, the President of the Philippines is hereby geanted the following authority in

the rightsizing of the operations of the different agencies of the executive branch:

a) To pursue the following functional shifts/modifications:
1) Strengthen functions of the ageney which directly contribute to the targeted
ultimate societal outcomes of the national government and/or the targeted sector/sub-sector
outcomes of the ag
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that can better be carried out or undertaken by the private sector, or have already been devolved

cys

ale down, phase out, eliminate or discontinue functions, progeams, projects

to LGUs cons

stent with the governing principles provided in this Act; and
3) Transfer/integrate functions from one agency to another which can better
perform the same,
b) To undertake the following organizational actions

1) Regularize ad hoc offices whose functions are vital and significant, thus must be

continually undertaken by the government;

2) Merge or consolidate agencies whose functions are necessarily overlapping or
duplicating and can be undertaken by a single entity; or clients are similar or related to rationalize
the use of government resources;

3) Split agencies with multifarious functions which are deemed distinct and equally
ve important aspects of governance;

4) Transfer offices to other agencies wherein their functions are more aligned; and

5) Abolish agencies (i) which functions are already redundant or no longer relevant

or necessary, or better undertaken by another entity: (ii) which are no longer achieving the

objectives and purposes for which these were originally created; (ii) which are not costeffective

since these do not generate the desired levels of outputs and outcomes vis-i-vis the resource
inputs; and/or (iv) which have already become non-operational, dormant and/or outlived their
purposes.

©) Yo undertake other functional/organizational actions, as necessary, consistent with
the policies, principles, framework, and standards of this Act

4) To develop and provide safety nets, including their implementation strategies, for
employees of departments/agencies who may be affected by the government’s rightsizing

efforts;


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©) To formulate an organizational development progeam to strengthen the institutional

capacity of the agencies and improve productivity of employees.

SEC. 6. Creation of a Committee on Rightsizing the Executive Branch. - A
Committee on Rightsizing the Executive Branch is hereby created to oversee the implementation

of the Rightsizing Program, in accordance with the provisions of this ct

‘The
Secretary of the Department of Budget and Management (DBM) as

Committee shall be composed of the Executive Secretary as Chairperson, and the
Chairperson, with the
Chairperson of the Civil Service Commission (CSC), and
the Head of the Presidential Management Staff, as members

Secretary of Socio-Economic Planning,

‘The Committee shall be organized within fifteen (15) days from the effectivity of this
Act.

‘The Commitice shall also organize Subcommittees composed of experts on government

operations, organizational development, and human resource management to assist in the

performance of its functions.

The DBM shall provide the necessary secretariat services to the Committee and its
Subcommittees

In the spirit of transparency

cd participatory governance, the Committee shall consult

the departments/agencies concerned and accredited public sector unions, and other

stakeholders, relative to the implementation of the Executive Branch Rightsizing Program.

SEC. 7. Powers and Functions of the Committee on Rightsizing the

Executive Branch. - The Committee shall have the following powers and functions

4) To develop the policies, framework, strategies, and mechanisms to be adopted in the

implementation of the Executive Branch Rightsizing Program;

b) To conduct studies on the functions, programs, projects, operations, structure, and

manpower complement of the different departments /agenci
©) Yo develop and prepare the rightsized organizational structure of
departments/agencies concemed and the corresponding executive issuances for approval by the
President,
@) To develop and prepare the overall change management program, including

ansition and ensure the smooth

communication plans, to effectively manage the

implementation of the Rightsizing Program;


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©) To formulate the mechanisms to sa

jeguard the welfare of employees who may be
affected by the rightsizing efforts, as well as the appropriate organizational development
program, for approval of the President;

8) To monitor the implementation by the ditferent agencies of their respective
approved Rightsizing Plans, and report to the President any issue that must be addressed;

8) To engage the services of experts/consultants, through the DBM, to assist the
Committee and its Sub-Committees in the performance of their functions; and

h) To formulate the implementing rules and regulations (IRR) of this Act.

SEC. 8. Submission of the Rightsized Organizational Structure and Proposed
Executive Issuances to the President. - The Committee on Rightsizing the Executive Branch
shall submit to the President the rightsized organizational structure of agencies concerned and

the corresponding executive issuances within two hundred fitty (250) days from the effectivity of

the Implementing Rules and Regulations (IRR) of this Act.

SEC. 9. Submission of the Detailed Organizational Structure and Staffing to the
DBM. ~ The heads of agencies shall prepare and submit to the DBM the detailed organizational
structure and staffing of their respective agencies within ninety (90) days after the approval of the
Proposed executive issuances by the President: Provided, ‘That assistance in the preparation of
organizational structure and staffing pattern has been extended to the agency by the DBM and
the CSC.

SEC. 10. Retirement Benefits and Separation Incentives for Personnel Who May
be Affected by the Executive Branch Right

ing Program. - The affected personnel hired

on a permanent basis and with appointments attested by the CSC, shall be entitled to retirement
benefits and separation incentives.
il themselves of any of the

a) Th

fected personnel shall be given the option to

following retirement benefits under exi

ing laws, if qualified:

1) Retirement gratuity: provided under Republic Act No. 1616 (An Act Further
Amending Section 12 of Commonwealth Act No, 186, as Amended, By Prescribing Two Other
Modes of Retirement and for Other Purposes), as amended: or

2) Retirement benefit under Republic Act No. 660 (An Act to Amend

Commonwealth Act No. 186 or “An Act to Create and Establish a Government Service

Insurance System, to Provide for its Administration, and to Appropriate the Necessary Funds

“Therefor,” and to Provide Retirement Insurance and for Other Purp

ses); oF


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3) Retirement, separation or unemployment benefit provided under Republic Act

No. 8291 (

n Act Amending Presidential Decree No. 1146, as Amended, Expanding and

Increasing the Coverage and Benefits of the Government Service Insurance System, Instituting

Reforms Therein and for Other Purposes)

‘The retirement geatui

benefit of affected personnel who are qualified and shall avail of

SIS). The

Republic Act No. 1616 shall be paid by the Government Service Insurance System (
GSIS shall no longer pay the refund of retirement premiums (both personnel and government

shares) of the affected personnel who shall avail of Republic Act No. 1616 benefits.

b) In addition to said retirement benetits, the affected personnel who would opt to
retire or be separated shall be entitled to the following applicable separation incentives:

1) One half (%) of the actual monthly basic salary for every year of government
service, for those who have rendered less than eleven (11) years of service;

2) Three fourth (*4) of the actual monthly basic salary for every year of government
service, computed starting from the first (I” year, for those who have rendered eleven (11) to
Jess than twenty-one (21) years of service;

3) The actual monthly basic salary for every year of government service, computed

starting from the first (1°) year, for those who have rendered twenty-one (21) to less than thirty-

one (31) years of service; and
4) One and one fourth (1 4) of the actual monthly basic salary for every year of
government service, computed starting from the first (I") year, for those who have rendered

thirty-one (31) years of service and above

The actual monthly basic salary shall refer to the salary of the affected personnel as of the

date of approval of the agency’s detailed organizational structure and staffing by the DBM

\ minimum of five (5) years of government service is requited in order for an affected

personnel to be entitled to avail of the Progeam's separation incentives under Section 10.b of this
Act: Provided, That tor the purpose of computing the total amount of separation incentives that
an affected personnel shall receive only the government service up to age fifty-nine (59) and a
fraction thereof shall be counted. Government service starting at the age sixty (60) shall no
longer be subject to the separation incentives provided herein, without affecting the original

incentive factor determined as applicable based on the actual yeats of service of the affected


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personnel: Provided further, That for the purpose of complying with the required number of years

of service under Republic Act No. 8291, the portability

scheme under Republic Act No. 7699

(An Act Instituting Limited Portability Scheme in the Social Security Insurance Systems by
Totalizing the Workers’ Creditable Services or Contributions in Each of the Systems) may be
applied, subject to existing policies and guidelines.

‘The affected personnel, if with permanent appointment attested by the CSC, who will

Rot opt to retire from the service shall be placed in a manpower pool to be organized and
administered by the CSC. The CSC, in coordination with other government agencies and
relevant private institutions, shall retool the subject personnel and deploy them to agencies which

require their qualifications, skills, and competencies.

The number of personnel who will avail of the separation incentives under Section 10 of
this Act shall in no case exceed the number of positions declared for abolition
‘The specific guidelines to carry out the provisions of this Section shall be prescribed in

the IRR of this Act.

SEC. I, Other Benefits of Retired/Separated Personnel. - ‘The affected personnel
who retire or are separated shall, in addition to the applicable benetits above, be entitled to the
following:

4) Refund of Pag-IBIG contributions, both personal and government of all affected
members, pursuant to existing rules and regulations of the Home Development Mutual Fund;
and

b) Commutation of Unused Vacation and Sick Leave Credits of the affected personnel

in accordance with existing rules and regulations.

SEC. 12. Period of Availability of the Retirement Benefits and Separation
Incentives, - The retirement benefits and separation incentives provided in this Act shall be
available within sixty (60) days upon approval by the DBM of the detailed rightsized

organizational structure and staffing of departments /agencies concerned.

SEC. 13. Pro

ion on Reemployment of Personnel Retired/Separated from the
Service. - Personnel who retire or are separated from the service as a result of the

implementation of the Rightsizing Program shall not be reemployed in any agency of the


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‘cutive Branch, including in GOCCs, for a period of fi

(5) years, except as teaching or

medical staff in educational institutions and ho:

respectively.

‘The retired/separated personnel under the program, who are re-employed within the
prohibited period shall refund the separation incentives received under Section 10.b of this Act

on a pro-rated basis,
‘The retired/separated personnel under the program who undertake in consultancy
services for the government shall be governed by Section 7 of Republic Act No. 6713 (Code of

Conduct and Ethical Standards for Public Officials and Employees)

SEC. 14. Joint Congressional Oversight Committee On The Rightsi

1g

There is hereby created an oversight committee to oversee, monitor and evaluate

Program.

the implementation of this Act

The 0}

ight committee shall be composed of five (5) members each from the Senate

and the House of Representatives which shall include members of the Senate Committee on

il Service, Government Reorganization and Professional Regulation, the Senate Committee

‘on Finance, the House Committee on Govern

nent Reorganization and House Committee on

Appropriations.

SEC. 15. Conduct Of An Impact Assessment, — The DBM shall commission the
conduct of an independent impact assessment on the executive branch rightsizing progeam three
(3) years from its completion to, among others, determine the effects of, and gains from, the

implementation of the program

SEC. 16, Report to Congress. - The President shall submit a report to Congress on the

results of the Program after the completion of its implementation.
SEC. 17. Sunset Provision. ~ The authority given to the President under this Act, as

well as the existence of the Committee on Rightsizing the Executive Branch, shall end three (3)

years after the effectivity of this Act.

"0


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SEC. 18. Implementing Rules and Regulations. - The Committee on Rightsizing the
Executive Branch shall formulate the necessary IRR within thirty (30) days from the organization
of the Committee. The IRR shall take effect fifteen (13) days after its publication in a newspaper
of general circulation.

SEC. 19. Provisions Applicable to other Branches of Government, Constitutional

Commissions, Office of the Ombudsman, and the LGUs. — The governing principles,

policies, standards, and guideline, as well as the conditions and limitations provided in this Act,
shall be followed in the implementation of the rightsizing program by other branches of

government, Constitutional Commissions, Office of the Ombudsman, and the LGUs

The heads of offices, shall issue their respective IRR and furnish a copy thereof to the

Joint Congress

nal Committee on the Rightsizing Program and the DBM,

SEC. 20. Funding Requirements. - ‘The amount necessary for the initial
implementation of this Act shall be sourced against any applicable appropriation items under the
current General Appropriations Act. Subsequent amount needed to continue the implementation
of the Executive Branch Rightsizing Program in the Executive Branch shall be included in the

succeeding appropriations.

In the event that the Legislature, Judiciary, Constitutional Commissions and the Office of
the Ombudsman implement the rightsizing under this Act, the funding requirements shall be

included in the succeeding appropriations.

SEC. 21. Separability Clause. - If any provision of this Act is declared unconstitutional

or invalid, the other provisions not otherwise affected shall remain in full force and effect

SEC. 22. Repealing Clause.

and other issuances or parts thereof which are inconsistent with this Act are hereby repealed,

All laws, decrees, executive orders, rules and regulations,

amended or modified accordingly

SEC. 23. Effectivity. - This Act shall take effect take effect fifteen (15) days after its

publication in the Official Gazette or in any newspaper of general circulation.

Approved,

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