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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS,
First Regular Session

House Bill No. _ 2398

Introduced by Rep. LAWRENCE LEMUEL H. FORTUN

EXPLANATORY NOTE

This bill seeks the implementation of a right-sizing program in the Philippine
Government to promote effectiveness, efficiency, and economy in the Philippine bureaucracy,
enhance institutional capacity to improve the delivery of services to the Filipino people, and
ensure the attainment of the country’s development goals and objectives. This is in line with the
Philippine Development Plan 2017-2022, which envisions a people-centered, clean, efficient,
and effective delivery of public goods and services.

Under the proposed measure, the President is granted authority to implement the
Rightsizing Program for the Executive Branch with the goal of eliminating redundant,
duplicating, or overlapping functions and simplifying its rules and regulations, systems, and
processes. It also provides for the creation of the Committee on Rightsizing the Executive
Branch mandated to develop policies and strategies and monitor the implementation of the
rightsizing program; as well as prepare the rightsized organizational structure of the departments
and agencies for approval by the President. Furthermore, this measure provides for the optional
adoption by the Legislature, Judiciary, Constitutional Commissions, Office of the Ombudsman,
and local government units of the rightsizing program. In all instances, the bill ensures that
mechanisms are in place to safeguard the welfare of the affected personnel in this endeavor.

Essentially, the bill seeks to streamline the whole bureaucracy and ensure more focused
roles, functions, and programs, that will ultimately result in the efficient mobilization of the
government's valuable resource and efficient delivery of services to its constituencies.

The 17th Congress of the House of Representatives approved this bill on Third and Final
Reading, It is hoped that finally, in the 18th Congress, this bill will become a law.

In view of the foregoing, the péSsage of this bill is earnestly sought.

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS.
First Regular Session

House Bill No. 2398

Introduced by Rep. LAWRENCE LEMUEL H. FORTUN

AN ACT
RIGHTSIZING THE NATIONAL GOVERNMENT TO IMPROVE PUBLIC
SERVICE DELIVERY

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the “Rightsizing the
National Government Act”.

SEC. 2. Declaration of Policy. ~ It is hereby declared the policy of the State to
promote and maintain effectiveness, efficiency and economy in the government and
enhance institutional capacity to improve public service delivery, and to ensure the
attainment of the country’s societal 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 departments, bureaus, offices, commissions, boards, councils, and all other
entities attached to or under their administrative supervision, government-owned or -
controlled corporations (GOCCs) not covered by Republic Act No. 10149 or the “GOCC
Governance Act of 2011”.

‘The Legislature, 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.

Local government units (LGUs) may also rightsize their respective offices,
consistent with the governing principles and guidelines contained in this Act and the
provisions of Republic Act No. 7160 or the “Local Government Code of 1991”, and
‘subject to their financial capabilit

The Governance Commission for GOCCs (GCG) shall continue to exercise its
authority under Republic Act 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 Righsizing Program in accordance with the following principles and guidelines:

(a) The role of government and the scope, level, and prioritization of government
activities shall be determined in accordance with the constitutional mandate, political and
socioeconomic 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;

(c) The delineation of responsibilities between the National Government and the
LGUs in the provision, production, and delivery of goods and services shall be clearly
defined;


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(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;

(c) 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;

(f) Government systems and processes 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 productivity
of the public sector;

(g) Government rules, procedures, and requirements shall be rationalized to
reduce the regulatory burden on citizens, businesses, and other stakeholders, as well as
reduce the administrative burden on the part of the government; and

(h) The organizational structure of an agency shall be designed to facilitate the
effective, efficient, and economical implementation of programs and projects, and the
attainment of organizational outputs and outcomes; rightsized and the appropriate staffing
mix shall be determined based on the skills and competencies required to efficiently and
efficiently carry out the agency’s mandate and functions.

SEC. 5. Authority of the President of the Philippines to Rightsize the
Operations of the Executive Branch. — Pursuant to governing rules, policies, standards
and guidelines stipulated in this Act, the President of the Philippines is hereby granted the
following authority in the rightizing of the operations of the different agencies of the
Executive Branch:

(a) To pursue the following functional shifts/modifications:

(1) Strengthen functions of the agency which directly contribute to the targeted
ultimate societal outcomes of the National Government and/or the targeted
sector/subsector outcomes of the agency;

(2) Scale down, phase out, eliminate or discontinue functions, programs, and
projects that can better be carried out or undertaken by the private sector, or have already
been devolved to LGUs consistent 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 serve 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; (iii) which
are not cost-effective since these do not generate the desired levels of outputs and
outcomes vis-@-vis the resource inputs; and/or (iv) which have already become
nonoperational, dormant and/or outlived their purposes.

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

(d) 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; and

(e) To formulate an organizational development program to strengthen the
institutional capacity of the agencies and improve the productivity of employees. -


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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, accordance with the provisions of this Act.

The Committee shall be composed of the Executive Secretary as Chairperson, and
the Secretary of the Department of Budget and Management (DBM) as Cochairperson,
with the Secretary of Socio-economic Planning, Chairperson of the Civil Service
Commission (CSC), and the Head of the Presidential Management Staff, as members.

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

The Committee 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
Subcommittees.

In the spirit of transparency and 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:

(a) 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/agencies;

(c) To develop and prepare the rightsized organizational structure of
department/agencies concerned and the corresponding executive issuances for approval
by the President;

(d) To develop and prepare the overall change management program, including
communication plans, to effectively manage the transition and ensure the smooth
implementation of the Rightsizing Program;

(e) To formulate the mechanisms to safeguard 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;

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

(g) To engage the services of experts/consultants, through the DBM, to assist the
Committee and Subcommittees 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 fifty (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 Rightsizing Program. ~ The affected
personnel hired on a permanent basis and with appointments attested by the CSC, shalll be
entitled to retirement benefits and separation incentives.

(a) The affected personnel shall be given the option to avail themselves of any of
the following retirement benefits under existing laws, if qualified:


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(1) Retirement gratuity provided under Republic Act No. 1616 (An Act Further
Amending Section Twelve of Commonwealth Act Numbered One Hundred Eighty-Six,
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 Numbered One Hundred and Eighty-Six Entitled “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 Purposes); or

(3) Retirement, separation or unemployment benefit provided under Republic Act
No. 8291 (An 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 gratuity benefit of affected personnel who are qualified and shall
avail of Republic Act No. 1616 shall be paid by the Government Service Insurance
System (GSIS). The 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 benefits, the affected personnel who would opt
to retire or be separated shall be entitled to the following applicable separation incentives:

(1) One half (1/2) 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 (3/4) of the actual monthly basic salary for every year of
government service, computed starting from the first (1°) year, for those who have
rendered eleven (11) to less 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%) of the actual monthly basic salary for every year of
government service, computed starting from the first (1") 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.

‘A minimum of five (5) years of government service is required in order for an
affected personnel to be entitled to avail of the Program’s separation incentives under
Section 10(b) of this Act: Provided, That for 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 of 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 years of service of the affected 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 not 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. :


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SEC. 11. Other Benefits of Retired/Separated Personnel, ~ The affected
personnel who retire or are separated shall, in addition to the applicable benefits above,
be entitled to the following:

(a) 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. Prohibition 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
Executive Branch, including in GOCCs, for a period of five (5) years, except as teaching
or medical staff in educational institutions and hospitals, respectively.

The retired/separated personnel under the program, who are reemployed within
the prohibited period shall refund the separation incentives received under Section 10(b)
of this Act on a prorated 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 Rightsizing
Program. — There is hereby created an oversight committee to oversee, monitor and
evaluate the implementation of this Act.

The oversight 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 Civil Service, Government Reorganization and Professional Regulation,
the Senate Committee on Finance, the House Committee on Government Reorganization
and the 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
Program 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.

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 (15) 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 guidelines, 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.


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The heads of offices shall issue their respective IRR and furnish a copy thereof to
the Joint Congressional Oversight Committee on the Rightsizing Program of 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. ~ All laws, decrees, executive orders, rules and
regulations, and other issuances or parts thereof which are inconsistent with this Act are
hereby repealed, amended or modified accordingly.

SEC. 23. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in any newspaper of general circulation.

Approved,