Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Nineteenth Congress
First Regular Session

House BILLNo,__*19

Introduced by Representative JOEY SARTE SALCEDA

AN ACT
INSTITUTING COMPREHENSIVE REFORMS
TO MODERNIZE THE DELIVERY OF CITIZEN SERVICES

EXPLANATORY NOTE

The state responding to the needs of its citizens in an efficient, effective. and judicious
manner is the most essential function of government. Because such response is mediated
through administrative services and processes, efficiency in these areas is critical to fulfilling
this basic function.

Most government services fall under one of the following categories: (1) Payment of
taxes, fees, and charges; (2) business registration and licenses; (3) common citizen services
(such as basic documentary requirements); (4) delivery of social welfare services; and (5)
procurement. Reforms that result in an improvement in client experience necessarily introduces
enhancements in the whole “value-chain” of these transactions: from client interface. to
institutional capacity, to user experience and morale. Payment of taxes. charges. and fees may
further be subdivided into national government taxes and charges (such as those with the
Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC)), and taxes and fees
imposed by the local government units (LGUs).

A conceptual framework promoted by the Organization for Economi
Cooperation and Development (OECD) is the measurement of “administrative burden,”
and the development of policy approaches to lessen administrative burden. Administrative
burden is what another publication has so aptly called the “fine print of the social contract
between citizens and their government.” These are all the legal and regulatory processes
citizens go through in their interactions with government.

An economic understanding of administrative burdens must ultimately consider

them as “costs.” Here. a framework developed by Herd and Moynihan’ would be useful:
Administrative burden is composed of the learning costs to compliance, the psychological

* Herd P and Moynihan DP, Administrative Burden: Policymaking by Other Means {Russell Sage Foundation
2018)

Page |


costs, and the compliance costs. This would be a more holistic view of red tape, beyond mere
deadlines and steps.

Learning costs are the time and effort dedicated to learning about a program or service,
ascertaining eligibility and category, conditions that must be satisfied, and gaining access.
Psychological costs involve the frustrations of dealing with unjust, obnoxious. or onerous
procedures. and the stresses that arise from uncertainty and discretion in processes. Finally.
compliance costs are costs incurred by the citizen for documentation, representation. fees, and
travel, as well as the opportunity costs of time devoted to regulatory compliance. This bill, as
will be explained in succeeding parts. seeks to lower these costs through a whole-of-
government approach to reengineering the processes where these costs are incurred.

Ease of doing business

A rudimentary measure of the effect
doing business. Over the years, the Philippines’ performance on ease of doing business has
been a mixed bag. The country’s international standing on ease of doing business has
fluctuated. Nonetheless, in 2019, the country saw significant improvement in its comparative
ranking. which coincided with the first year of implementation of the Ease of Doing Business
Law (Republic Act No. 11032), which was signed in May 2018.

ty of government service delivery is the ease of

Ease of Doing Business Ranking of the Philippines
in the annual World Bank Doing Business Report

lil... al :
az z= .

In regional terms, however this ranking still leaves the country below the median in
Southeast Asia. where our real competitors for foreign investment and overal] economic
attractiveness are

Page | 2


Philippine EODB standing, ASEAN 2019

serena 6
state ozs

To address issues on red tape, the Republic Act No. 11032 or the Ease of Doing
Business (EODB) and Efficient Government Service Delivery Act of 2018, was enacted in
May 2018 to amend Republic Act 9485 or the Anti-Red Tape Act of 2007. It aims to streamline
government processes and improve ease of doing business in the Philippines.

The EODB places an emphasis on the prompt and efficient resolution of all government
transactions. The law imposes deadlines on government agencies, after which the request shall
have been deemed approved. The law applies to all government offices and agencies in the
Executive Department including local government units (LGUs), government-owned or -
controlled corporations, and other government instrumentalities, located in the Philippines or
abroad, that provide services covering business-related and non-business transactions as
defined in the law’s Implementing Rules and Regulations (IRR).

This emphasis can be supplemented. Processing time in government agencies is an
outcome of several institutional factors, some of which require solutions far beyond the
scope of the current deadline-oriented law. Processing time, of course, is also different from
the quality of service and the ease of user experience. Some processes, for instance, could be
completed in time, in theory, but in practice, may be challenging to navigate for the client
is why this bill proposes a more holistic modernization instead of merely cutting processing
times down.

Red tape in focus

In complex organizations, red tape is when there are regulations, mechanisms, and
standards which are claimed to be excessive, rigid or redundant, or hinder or prevent action or
decision-making. When government processes are labyrinthine for its clients, and when
processing times are excessively long, there is greater space for “fixing,” where either officials
or third parties ‘facilitate’ the processes for bribes or fees. The EODB law also operates under
the theory that the greater the physical contacts there are, the greater the opportunities for
fixing.

Page |3


While the EODB law significantly cuts red tape within agencies, efforts can be made
to establish a hierarchy of credence across government agencies, such that there should not be
a need to apply for accreditation from a broad host of agencies when accreditation from one

agency should suffice. Furthermore. red tape, that

. strictly unnecessary processes, is not the

only cause of delays in government service delivery. In many cases. a complete overhaul of
the process design, and supplementary capacity to deliver these needs. is the solution,

Benefits of Government Modernization Act

To effect a whole-of-government modernization of state services and processes,

the following are the key reforms proposed under this Act:

Title

Nature of reform:

Rationale

1) Abolition of cedula as
requirement for
transactions

Removal of the Community
Tax Certificate (CTC) or
*cedula’ as a required proof
of residency or identity
(especially once the National
ID system is instituted) for
all national government
processes, and as a
prerequisite for engaging in
business,

This can be carried out
without having to remove
the local government
authority to levy a
community tax.

The CTC itself was found to
be highly ineffective as a
source of government
revenue and as an identity
document.

The CTC often requires a
proof of identity in many
local government units,
which defeats the purpose of
it being a basic identity
document.

‘The CTC as a proof of
identity and residency will
be made redundant by the
National 1D system.

2) Single-contact, single-day
business registration
processing

Single registration portal for
al] basic registration
requirements, with forms
that are automatically filed
based on the registrant's
supplied information.

The portal (which can be a
National Business
Registration Agency) will
then forward these forms to
the other agencies (many of
which may no longer need to
process reyistration
requirements under
reengineered processes and
removal of redundant

This will allow businesses
which pose no threat to the
common good to
immediately do business
upon registration.

This will also cut the
registration time by weeks or
even months.

This will reduce registration
costs significantly for
businesses.

The portal will also allow
registrants to face just one
agency as opposed to at least

Page | 4


Title

Nature of reform

Rationale

registrations, see National
ID for businesses).

Upon complete submission
of requirements during the
same day, a tentative
certificate of registration
(akin to a ‘red herring
prospectus’) can be issued to
the business, with a collatilla
for review if it involves
public health, public safety,
public order, or public
morals.

10 under the current system.

This will also dramatically
reduce transaction costs for
registering businesses, and
will encourage formal.
legally-compliant, tax-
paying entrepreneurship in
the country

3) Single-patient, single-
record system

Under this reform, all
Filipinos will have one
unified health record to be
digitally stored and updated.
This can be linked with the
national ID system. To
ensure security, this ean
make use of distributed
ledger technology (ie.
blockchain)

To reduce hospital
administrative burden.
reduce patient waiting time
before treatment, and
mitigate fraud in PhilHealth
claims

4) Single-registration for
mandatory social
contributions such as
SSS. PhilHealth, Pag-
IBIG (can be linked with
the National ID system)

Enterprises will need to
register once for all
mandatory social
contributions:

National ID system can be
used as the ID for all
mandatory social
contributions and benefits.

To reduce the need for
redundant transactions to
establish identity and
registration with different
agencies:

To allow agencies to focus
on member services, which
could be optimized if front-
desk registration services
can be reduced.

5) Online TIN application
and fully online services
for small taxpayers and
wage earners (taxpayer
identity can be linked
with the National ID
system)

Under this reform, small
taxpayers and wage earners
will no longer need to
physically appear before
their Bureau of Internal
Revenue (BIR) Revenue
District Office (RDO) to
change RDOs, register their
TINS, file returns, and
transact other business.

To reduce the taxpayer costs
and burden of physically
appearing before the BIR.

Page |5.


Title

Nature of reform

Rationale

6) All required government
payments via electronic
payment system (such as
Landbank business portal)

All required government
fees can be paid online in an

easy-to-use payment system.

To allow citizens to settle
fees and charges remotely;
To ensure that there will be
no excess charges and fees,
and to promote transparency
and integrity among
frontline offices.

7) Online taxpayer account
for filing and payment of
almost all non-large
taxpayer taxes (with
forms automatically
filled, assessment
automatically calculated:
no professional help
needed).

Under this reform, small
taxpayers and wage earners
will no longer need to
physically appear before
their BIR Revenue District
Office (RDO) to file returns
and pay taxes

Forms will be automatically
filled, and assessment will
be calculated in an easy-to-
navigate electronic filing
and payment system

To reduce the taxpayer costs
and burden of physically
appearing before the BIR;

To dispense with the need
for small taxpayers to hire
professional assistance for
the most basic tax
transactions.

8) National ID for
businesses (or the
National Registry of
Businesses)

This will be a unified
registry of businesses that
will abolish redundant
registrations (where one
agency registration will be
enough, multiple agency
registrations will no longer
be necessary.)

Special permits and licenses
can be tagged into the
registry account.

‘This will dispense with
redundant business licenses
and help the government
deliver support services for
dusinesses more effectively.
(For example, the small
business wage subsidy could
have been delivered more
quickly and effectively with
a national registry of
business)

This will also ensure that
vendors to the government
can be vetted more easily.

9) Expanded personnel
capacity for highly
technical transactions,
where needed.

Enabling Anti Red Tape
Authority (ARTA) to make
recommendations for
personnel expansion where
bottlenecks are caused by
lack of personnel:

Review of capacity of
government agencies to
deliver highly technical

Highly technical processes
involve the conduct of
inspections and the
submission of technical
documents that require
specialized personnel to
make sound evaluations and
judgment. There may not be
‘enough personne! for many
offices to complete

Page | 6



Title

Nature of reform

Rationale

transactions given their
present plantilla;

Review of EO 366 impact
on delivery time and quality

transactions within the
deadlines prescribed in the
EODB Law.

10) Recognition of electronic
signature in most
transactions

This reform will allow for
the recognition and
authentication of electronic
signatures for most
transactions.

Many transactions already
recognize electronic
signatures, but limited
means of legal
authentication;

Enabling full recognition of
electronic signatures in most
cases will allow almost all
legal and regulatory
transactions to be done
remotely.

11) Portability of socially
invested programs

Cash transfers. social
benefits can be accessed
anywhere in the country, as
long as recipient is tagged as
eligible:

This will also involve the
use of records technology
such as digital ledger
technology (i.e. blockchain
technology) to ensure no
duplication in the social
benefits;

This can also be linked with
the National ID system

To shift the burden of
benefits claiming away from
the poor.

To allow the poor. wherever
they are in the country, to
access social benefits.

To depoliticize the
distribution of national

social benefits by ensuring
that they do not have to be
linked with local officials.

These benefits are complemented by the Ease of Paying Taxes Act (House Bill No.
7881). which this representation has also filed.

In view of the benefits of these reforms, the approval

Sbill is urgently sought.

JOEY SARTE SALCEDA

Page | 7



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Nineteenth Congress
First Regular Session

7
HOUSE BILL NO. 419

Introduced by Representative JOEY SARTE SALCEDA

AN ACT
INSTITUTING COMPREHENSIVE REFORMS,
TO MODERNIZE THE DELIVERY OF CITIZEN SERVICES

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

assembled:

CHAPTER ONE
GENERAL PROVISIONS

SECTION 1. Short title. - This Act shall also be referred to as the “Clean and Efficient
Government Act of 2020.”

SEC. 2. Declaration of policy. ~ Itis the policy of the State to promote a high standard
of ethics and efficiency in public service. Public offices. officials and employees shall at all
times be accountable to the people and shall discharge their duties with utmost efficiency.
responsibility, integrity, competence. and loyalty.

SEC. 3. Objectives. - This Act aims to:

a)

b)
c)

d)

e)
f)

8)
h)

Modemize the delivery of local and national government services and remove
redundant requirements and processes:

Build the capacities of government offices to promote efficient service delivery:
Initiate a Government Transformation Program (GTP) to modernize the most
essential government services and processes:

Improve ease of doing business by reducing business requirement processing time.
bureaucratic red tape and discretion, and transaction costs to enterprises;

Simplify government procedures and make them more inclusive and accessible:
Allow fully remote processing of government transactions wherever allowed by
law;

Simplify requirements for beneficiaries of social welfare programs:

Improve the monitoring and evaluation of government modernization, anti-red tape
measures, and process simplification programs:

Improve the efficient and transparency of essential social programs. such as
healthcare;

Promote the digitalization of government processes and transactions:

Page |1


k) Encourage compliance with government requirements; and
1) Improve the standard and quality of life of citizens by enhancing public service
delivery.

CHAPTER TWO,
MODERNIZED LOCAL GOVERNANCE

SEC. 4. Removal of the Community Tax Certificate as requirement for government
transactions. ~ Section 163 of the Local Government Code is hereby amended as follows:

SEC. 163, Presentation of Community Tax Certificate On Certain Occasions. -
(a) When an individual subject to the community tax Jacknowledges any
document before a notary public.] takes the oath of office upon election [or
appointment] to any position in the government service|;] [receives any license,
certificate, or permit from any public authority: pays any tax or fee: receives
any money from any public fund; (ransacts other official business; or receives
any salary or wage from any person or corporation,] it shall be the duty of any
person, officer, or corporation [with whom such transaction is made or business
done or from whom any salary or wage is recived] WHICH ADMINISTERS
‘THE OATH OF OFFICE to require such individual to exhibit the community
tax certificate. The presentation of community tax certificate shall not be
required in connection with the registration of a voter.

[(b) When, through its authorized officers, any corporation subject to the
community tax receives any license, certificate, or permit from any public
authority, pays any tax or fee. receives money from publie funds, or transacts
other official business. it shall be the duty of the public official with whom such
transaction is made or business done, to require such corporation to exhibit the
community tax certificate.]

[©] (B) The community tax certificate required in the [two] preceding
paragraph|s] shall be the one issued for the current year. except for the period
from January until the fifteenth (15th) of April each year. in which case, the
certificate issued for the preceding year shall suffice.

SEC. 5. Local Government Transformation Program. - To ensure that local
government agencies are capable of delivering public services in a timely. efficient, and
effective manner, and to assist local governments in expediting citizen transactions. the
Department of Interior and Local Government (DILG) shall undertake a Local Government
‘Transformation Program (LGTP) which shall identify areas for improvement in local
governance. propose solutions for existing issues, provide concrete. time-bound, and practical
model programs for local government modernization, and propose programs for private-public
partnerships in improving local governance.

Through the LGTP. the DILG shall annually set key performance indicators on local
government service delivery and citizen transactions. The DILG shall also identify government
and private resources which local government units may access to meet these indicators.

SE New Mandates of the Bureau of Local Government Development. — Section 14
of Executive Order No. 262 s. of 1988 is hereby amended to read as:

Page |2


SEC. 13. Bureau of Local Government Development. The Bureau of Local
Government Development. to be headed by a Bureau Director appointed by the
President upon the recommendation of the Secretary, shall have the following
functions:

(a) Establish and prescribe plans, policies, programs and standards to sirengthen
the administrative, fiscal and technical capabilities of local government offices
and personnel;

(b) Provide technical assistance to enhance the administrative, fiscal and
technical overnment officers and personnel:

(c) Formulate, prescribe. monitor and periodically evaluate local development
policies, plans, programs and projects designed to enhance the participation of
local governments in planning and implementation:

(a) Establish a system of incentives and grants to local governments and
prescribe policies, procedures and guidelines in the implementation of self-help
assistance projects;

(e) Formulate and develop models, standards and technical materials on local
government development;

(f) Provide consultation services and advice on local government involved in
development programs:

(g) Establish viable systems of strategies and approaches for local governments
anchored on citizens participation within a wholistic and integrated framework
for the development of communities:

(H) OVERSEE THE LOCAL GOVERNMENT TRANSFORMATION
PROGRAM (LGTP) AND CAPACITATE LOCAL GOVERNMENT
UNITS TO MEET PERFORMANCE INDICATORS SET BY THE
PROGRAM;

(Il) COLLABORATE WITH RELEVANT GOVERNMENT AGENCIES
TO FACILITATE LOCAL GOVERNMENT ACCESS TO NATIONAL
GOVERNMENT PROGRAMS AND PUBLIC-PRIVATE
PARTNERSHIPS TO MODERNIZE PUBLIC SERVICE DELIVERY;
(J) ASSIST LOCAL GOVERNMENTS IN MODERNIZING AND
DIGITALIZING CITIZEN SERVICES AND TRANSACTIONS;

[(b)] (K) Perform other functions as may be delegated by the Secretary or as
provided for by law

SEC. 7. Staffing and appropriations for the Bureau of Local Government Development.
= The amount needed to carry out the added mandates of the Bureau of Local Government
Development shall be charged against the current operative budget sourced from the internal
funds of the DILG. Thereafter. such sum representing the responsibility of the National
Govemment for the continued operations and maintenance of the Bureau shall be included in
the annual General Appropriations Act (GAA).

Congress shall annually appropriate the necessary amount to meet the funding
requirement for personal services (PS) and the maintenance and other operating expenses
(MOOE) of the Bureau. Nothing in this Act shall prevent the National Government from
allocating funds for the operation or implementation of any of the programs or services stated
herein, including the budget for capital outlay (CO).

Page |3


CHAPTER TWO
EASE OF BUSINESS REGISTRATION

SEC. 8. Single office for business registration ~ There is hereby created, under the
Department of Trade and Industry (DTI) an Enterprise Registration Authority (ERA) which
shall perform the following functions:

a) Administer. in cooperation with the Department of Information and

Communication Technology (DICT), the National Registry of Businesses:

b) Create and administer a centralized online business registration platform that shall
receive all business application requirements:

c) Forward business application requirements received through its online registration
facility and facilitate their processing with relevant government offices. including
local goverment units;

d) Set up, within the business registration platform, an electronic payment system for
paying business registration charges and fees;

e) Update registration applicants about the status of requirements forwarded with
relevant government agencies:

f) Within one day. issue tentative licenses to operate to applicants which have
completed submitting all registration requirements pending final approval and do
not require special permits and licenses to safeguard public safety, public order.
public health, or public morals;

2) Work with Negosyo Centers to set up on-site facilities where business registration
through the online business registration platform can be conducted, for the benefit
of applicants who, for whatever reason, are unable to access the online facility:

h) Recommend the elimination of redundant processes in the business registration
process; and

i) Perform such other functions as may be necessary or as are inherent in role as the
central business registration platform and agency of the government.

‘As far as practicable, the online business registration platform which the ERA is
mandated to administer shall have a user interface that can be navigated by the applicant
without professional assistance.

The funds required to create the office, hire personnel, and perform its functions shall
be sourced from the DTI's existing funds for the current fiscal year. after which, appropriations
for the ERA shall be made in the General Appropriations Act (GAA). The Authority shall be
headed by a Director-General which shall have the rank and privileges of an Assistant
Secretary.

SEC. 9. Removal of redundant permits and licenses. ~ To effectively establish a one-
day. one-office business registration process, the ARTA and the DTI shall conduct a thorough
review and time-and-motion study of the business registration process and recommend the
removal of redundant permits and licenses.

The review and study shall be submitted to Congress within ninety (90) days afier the
effectivity of this Act. The DTI and ARTA shall also propose to the President executive action,
such as Executive Orders and Administrative Orders. whenever the removal of redundant
permits and licenses do not require Acts of Congress.

Page| ¢


SEC. 10. National Registry of Businesses. — There shall be established, under the
administration of the ERA created under Section 5 of this Act, a National Registry of
Businesses, which shall be the centralized business registration platform of the government
Within two (2) years upon the effectivity of this Act, all business registration applications shall
be processed and stored through the Registry.

Each duly completed business application shall have one unified record in the Registry
The Record shall contain all of the completed applications registration requirements, licenses
and permits obtained. and other mandatory disclosures and filings. The files and disclosures
held by the ERA shall be subject to the laws, rules, and regulations governing the privacy of
information contained in such documents.

As it requires complete registration with all relevant government agencies, the issuance
of a Certification of Registration by the ERA, through the National Registry of Business, shall
be considered a valid proof of duly completed business registration.

CHAPTER THREE
EFFICIENT AND TRANSPARENT DELIVERY OF SOCIAL SERVICES

SEC. 11. National Patient Registry for Universal Health Care.— The Philippine Health
Insurance Corporation (PHIC) shall maintain an electronic national health records system
where patient data, including all requested and actually granted and paid claims and benefits.
and all health information during patient's encounters with health service providers or
professionals accredited with the PHIC, shall be stored, and may be obtained upon request by
the patient.

The DICT shall provide support in designing a secure database with mechanisms for
detecting probable fraud. provided, that the database shall abide by the ‘one-patient. one-
record” principle.

SEC. 12. Portability of social services. ~ It shall be the objective of national government
agencies to ensure that the receipt of national social services shall be delinked from venue
requirements. The Performance Management and Delivery Office, created under Section 16 of
this Act, shall formulate a comprehensive report to Congress and the President identifying
government services that require the beneficiary to be physically present in a certain locality,
and propose changes in government regulations and practices to ensure that beneficiaries of
social services can access their social benefits conveniently in any locality in the country.

Once its recommendations are approved by the Cabinet, the Performance Management
and Delivery Office shall monitor the implementation of its proposals. and perform functions
and powers given to it under Section 16 of this Act to ensure that identified government
services are delinked from venue requirements.

SEC. 13. Relaxation of data privacy rules for government social services. ~ Section 4
of Republic Act No, 10173 is hereby amended as follows:

Section 4. Scope. ~ This Act applies to the processing of all types of personal
information and to any natural and juridical person involved in personal
information processing including those personal information controllers and
processors who, although not found or established in the Philippines. use

Page | 5


equipment that are located in the Philippines, or those who maintain an office.
branch or agency in the Philippines subject to the immediately succeeding
paragraph: Provided, That the requirements of Section 5 are complied with.

This Act does not apply to the following:

(a) Information about any individual who is or was an officer or employee of a
government institution that relates to the position or functions of the individual,
including:

(1) The fact that the individual is or was an officer or employee of the
government institution;

(2) The title, business address and office telephone number of the individual:
(3) The classification, salary range and responsibilities of the position held by
the individual; and

(4) The name of the individual on a document prepared by the individual in the
course of employment with the government;

(b) Information about an individual who is or was performing service under
contract for a government institution that relates to the services performed,
including the terms of the contract, and the name of the individual given in the
course of the performance of those services;

(c) Information relating to any discretionary benefit of a financial nature such
as the granting of a license or permit given by the government to an individual,
including the name of the individual and the exact nature of the benefit;

(d) Personal information processed for journalistic, artistic, literary or research
purposes;

(e) Information necessary in order to carry out the functions of public authority
which includes the processing of personal data for the performance by the
independent, central monetary authority and law enforcement and regulatory
agencies of their constitutionally and statutorily mandated functions. Nothing
in this Act shall be construed as to have amended or repealed Republic Act No.
1405, otherwise known as the Secrecy of Bank Deposits Act; Republic Act No.
6426, otherwise known as the Foreign Currency Deposit Act; and Republic Act
No. 9510, otherwise known as the Credit Information System Act (CISA);

(f) Information necessary for banks and other financial institutions under the
jurisdiction of the independent, central monetary authority or Bangko Sentral
ng Pilipinas to comply with Republic ActNo. 9510, and Republic Act No. 9160,
as amended, otherwise known as the Anti-Money Laundering Act and other
applicable laws; [and]

(g) Personal information originally collected from residents of foreign
jurisdictions in accordance with the laws of those foreign jurisdictions,
including any applicable data privacy laws, which is being processed in the
Philippines; AND

(H) PERSONAL INFORMATION NECESSARY FOR THE
TAR! ING, PROCESSING, AND DISTRIBUTION OF
GOVERNMENT ASSISTANCE, SUCH AS SOCIAL WELFARE
BENEFITS AND OTHER FORMS OF FINANCIAL ASSISTANCE.

SEC. 14. Simplification and streamlining of rules and procedures on data-sharing by
government social welfare agencies. - Within ninety (90) days after the effectivity of this Act.
the National Privacy Commission (NPC) shall issue simplified rules and procedures to govern
the data sharing among government agencies with social benefits programs, including but not

Page | 6


limited to, the Social Security System (SSS), the Philippine Health Insurance Corporation
(PHIC), and the Department of Social Welfare and Development (DSWD).

CHAPTER FOUR
EFFICIENT CITIZEN SERVICES AND TRANSACTIONS

SEC. 15. Electronic payment systems for government requirements. - The DICT, in
coordination with the Bangko Sentral ng Pilipinas (BSP), Land Bank of the Philippines, and
the Development Bank of the Philippines, shall establish convenient electronic payment
mechanisms for government fees and charges. The DICT, LBP, BSP, and DBP shall issue
simplified rules and procedures for the participation of government offices in such
mechanisms.

Within one (1) year after the effectivity of this Act, national government agencies shall
provide electronic payment, through the mechanisms created pursuant to this Section, as an
option for the payment of government fees and charges. The DICT and ARTA shall monitor
compliance with this paragraph.

Within two (2) years after the effectivity of this Act, and notwithstanding any law to
the contrary, local government units shall provide electronic payment, through the mechanisms
created pursuant to this Section, as an option for the payment of all local government fees and
charges. The DICT, DILG, and ARTA shal] monitor compliance with this paragraph.

SEC. 16. Electronic signatures for government requirements. — Section 27 of Republic
Act No. 8792 is hereby amended as follows:

Section 27. Government Use of Electronic Data Messages, Electronic
Documents and Electronic Signatures. - Notwithstanding any law to the
contrary, within two (2) years from the date of the effectivity of this Act, all
departments, bureaus, offices and agencies of the government, as well as all
government-owned and -controlled corporations, that pursuant to law require
or accept the filling of documents, require that documents be created, or
retained and/or submitted, issue permits, licenses or certificates of registration
or approval, or provide for the method and manner of payment or settlement of
fees and other obligations to the government, shall -

(a) accept the creation, filing or retention of such documents in the form of
electronic data messages or electronic documents;

(b) issue permits. licenses, or approval in the form of electronic data messages
or electronic documents;

(c) require and/or accept payments, and issue receipts acknowledging such
payments, through systems using electronic data messages or electronic
documents: or

(d) transact the government business and/or perform governmental functions
using electronic data messages or electronic documents, THE
DEPARTMENT OF INFORMATION AND COMMUNICATIO!
TECHNOLOGY, IN CONSULTATION WITH THE NATIONAL
PRIVACY COMMISSION AND OTHER RELEVANT AGENCIES,
SHALL [and] for the purpose, [are authorized to] adopt and promulgate, after
appropriate public hearing and with due publication in newspapers of general

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circulation. the appropriate rules, regulations. or guidelines, to, among others,
specify -

1) the manner and format in which such electronic data messages or electronic
documents shall be filed, created, retained or issued:

2) where and when such electronic data messages or electronic documents have
to signed, the use of an electronic signature, the type of electronic signature
required;

3) the format of an electronic data message or electronic document and the
manner the electronic signature shall be affixed to the electronic data message
or electronic document:

4) the control processes and procedures as appropriate to ensure adequate
integrity, security and confidentiality of electronic data messages or electronic
documents or records of payments:

5) other attributes required to electronic data messages or electronic documents
‘or payments; and

6) the full or limited use of the documents and papers for compliance with the
government requirements: Provided, that this Act shall be itself mandate any
department of the government, organ of state or statutory corporation to accept
or issue any document in the form of electronic data messages or electronic
documents upon the adoption, promulgation and publication of the appropriate
rules. regulations or guidelines.

SEC. 17. Adoption of rules on electronic signatures for government transactions. ~The
DICT shall adopt and promulgate the appropriate rules, regulations, or guidelines on electronic
signatures for government transactions as mandated by Sec. 16 of this Act within ninety (90)
days after the effectivity of this Act.

SEC. 18. Capacity-building fictions of the Anti-Red Tape Authority. — There shall be
created, within the ARTA, a Government Offices Capacity-Building Bureau (GOCBB), which
may be supported by an appropriate number of sub-offices as may be determined by law
through executive action, and which shall perform the following functions:

a) Establish and prescribe plans, policies, programs, and standards to strengthen the
administrative and technical capabilities of national government offices and
personnel to deliver citizen services more efficiently:

b) Formulate. prescribe. monitor. and periodically evaluate policies. plans. programs.
and projects designed to enhance government processes and service delivery:

c) Formulate and develop models, standards and materials on efficient government
transactions and service delivery

d) Whenever necessary and upon request of the relevant agency, provide technical
assistance and advice to government agencies seeking to optimize their processes:

e) Establish strategies and approaches for governments offices to make processes
simpler and more inclusive: and

f) Perform such other functions as may be inherent in its role as the leading
government oifice for process optimization strategies. and as may be delegated by
the Director-General of the ARTA.

As far as practicable, the Office shall assign units or divisions to specialize in specific
areas of government service delivery such as procurement, basic citizen services. and social
welfare benefits. or in the operations of clusters of closely-related government offices. These

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units or divisions shall work closely with relevant government agencies in performing the
functions of the Office within these units’ or divisions’ area of specialization or assignment.

‘The amount needed to carry out the mandate of the GOCB shall be charged against the
current operative budget sourced from the internal funds of the ARTA. Thereafter, such sum
representing the responsibility of the National Government for the continued operations and
maintenance of the Bureau shall be included in the annual General Appropriations Act (GAA).

Congress shall annually appropriate the necessary amount to meet the funding
requirement for personal services (PS) and the maintenance and other operating expenses
(MOOE) of the Bureau. Nothing in this Act shall prevent the National Government from
allocating funds for the operation or implementation of any of the programs or services stated
herein, including the budget for capital outlay (CO).

Sec. 19. Inclusivity of government processes. ~ All government agencies, offices. and
instrumentalities shall ensure that their processes are inclusive and intelligible, To this effect.
the Komisyon ng Wikang Filipino (KWF) shall extend technical assistance to government
agencies, offices, and instrumentalities to translate procedures, processes, instructions, and
guidelines in the language or languages most accessible to the clients or participants of such
procedures, processes, instructions, and guidelines. Congress shall annually appropriate the
necessary amount to meet the funding requirement for technical assistance.

‘The National Couneil for Disability Affairs (NCDA) shall also ensure that government
processes comply with the Republic Act No. 7277 otherwise known as Magna Carta for
Disabled Persons, Batas Pambansa Blg. 344 or Accessibility Law. Republic Act 6759 or White
Cane Act and the International Labor Organization (ILO) Convention No. 159 or the
Vocational Rehabilitation of Persons with Disability. The NCDA shall be consulted in the
formulation of guidelines. rules. and regulations mandated by this Act.

The Philippine Commission on Women (PCW) shall also ensure that government
processes comply with Republic Act 9710, also known as the Magna Carta of Women, and
other relevant laws. For this purpose, the PCW shall be consulted in the formulation of
guidelines. rules. and regulations mandated by this Act.

The formulation of guidelines. rules. and regulations mandated by this Act shall be
undertaken in a manner that is consultative and inclusive and shall take into consideration the
concerns of vulnerable groups and sectors.

CHAPTER FIVE
PERFORMANCE MANAGEMENT AND EVALUATION

SEC. 20. Performance Management and Delivery Office. ~ There shall be created under
the Office of the President, a Performance Management and Delivery Office (PMDO). which
shall be headed by a Director-General with the rank of Undersecretary. and which shall
coordinate, monitor. and propose enhancements to the modemization of public-service delivery
and the implementation of key government programs as identified by the President with the
Cabinet

The unit shall perform the following functions:

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a) Facilitate the identification by the Cabinet of key government programs for
monitoring. acceleration, and improvement:

b) Coordinate the formulation by the Cabinet of a Government Transformation
Program (GTP) to modernize public service delivery. and monitor its
implementation;

©) Promote the acceleration of key government programs and priorities by
coordinating the direction of Executive Branch resources and attention towards
these programs and priorities:

d) Promote strategic, time-bound, and practical planning among government agencies
involved in the GTP and in key programs and priorities;

e) Identify the most important key performance indicators (KPIs) for the GTP and for
key government programs:

f) Assist implementing agencies in meeting KPIs, and whenever necessary. elevate
necessary action to the Cabinet and the President:

2) Work with other agencies in communicating the results of the GTP and of key
programs and priorities to the general public; and

h) Perform other functions delegated by the President to ensure that public service
delivery is improved.

The amount needed to carry out the mandates of the PMDO shail be charged against
the current operative budget sourced from the internal funds of the Office of the President,
Thereafier. such sum representing the responsibility of the National Government for the
continued operations and maintenance of the Bureau shall be included in the annual General
Appropriations Act (GAA).

Congress shall annually appropriate the necessary amount to meet the funding
requirement for personal services (PS) and the maintenance and other operating expenses
(MOOE) of the Office. Nothing in this Act shall prevent the National Government from
allocating funds for the operation or implementation of any of the programs or services stated
herein, including the budget for capital outlay (CO).

‘The Office may retain or employ independent counsel, research staff, and service staff,
as its duly appointed head deems necessary to carry out the functions, powers. and duties of
the Office, notwithstanding relevant laws. rules. and regulations.

SEC. 21. Congressional Oversight Committee on Government Modernization, ~ There
shall be created a Congressional Oversight Committee on Government Modernization. a
standing joint committee of Congress which shall be composed of five (5) members and one
co-chair from the Senate. and five (5) members and one co-chair from the House of
Representatives.

The minority of both the Senate and the House shall be represented proportionally in
the Oversight Committee, and shall have at least one (1) representative in each delegation.

The Oversight Committee shall convene at least once every session to oversee the
implementation of this Act. The Oversight Committee shall receive a copy of all reports
mandated to be accomplished in this Act.

The Oversight Committee shall adopt its own rules and procedures. in accordance with
the Rules of the Senate and the House of Representatives. The Oversight Committee shall

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exercise subpoena powers requiring a nominee or witness to testify at its hearing or for the
taking of his deposition or to bring books, documents or other things under his control. The
subpoena shall be signed, under the seal of the Oversight Committee, by the co-chairs of the
Committee. The subpoena shall state the subject matter under inquiry and the nominee or
witness whose attendance is required, and, in case of a subpoena duces tecum, shall particularly
describe the books, documents or things to be produced.

CHAPTER SIX
POWERS TO REENGINEER GOVERNMENT PROCESSES

SEC. 22. Authority of the President to cause the reengineering of government
processes. ~The President is hereby authorized to direct the Civil Service Commission (CSC),
the Department of Budget and Management (DBM), and the National Economic and
Development Authority (NEDA) to craft guidelines and general principles of a whole-of-
government reengineering of the processes for the processing of issuance of national and local
permits, licenses, and certifications issued by the Executive Branch and by Local Government
Units, except those which are explicitly required under law.

For highly technical transactions specifically mandated by existing laws, the President
may direct the CSC and DBM to authorize the augmentation of personnel performing tasks
directly related to the processing and issuance of such licenses, permits, and certifications,
whenever the CSC and DBM find the necessity for such augmentation.

SEC. 23. Authority of the President 10 Suspend the Requirements for National and
Local Permits, Licenses and Certifications, and to Streamline and Expedite the Process for the
Issuance thereof, — Notwithstanding any law, decree, order, ot ordinance to the contrary, the
President, in times of national emergency shall have the authority to:

a) accelerate and streamline regulatory processes and procedures for new and pending
applications for permits, licenses, clearances, certifications, or authorizations,
including fixing or shortening the periods provided for under existing laws,
regulations, issuances, and ordinances;

b) suspend or waive the requirements in securing such permits, licenses, clearances,
certifications, or authorizations:

©) use intelligence funds under the Office of the President to augment the personnel
performing tasks directly related to the processing and issuance of such licenses,
permits, and certifications; and

4) direct any other agency under the Executive branch, including military and
uniformed personnel, to assist any other agency or office in the processing and
issuance of license, permits, and certifications.

SEC. 24. Power to suspend or remove personnel in the Executive Branch. ~ Consistent
with Article VII Sections 17 and 18 of the Constitution, the Revised Administrative Code, other
existing laws, and jurisprudence, the President shall have the authority to suspend or remove,
upon the determination of a competent body, any government official or employee performing
acts contrary to the preceding section.

SEC. 25. Power to direct the Anti-Red Tape Authority to recommend capacitation. —
The Anti-Red Tape Authority (ARTA) is hereby given the additional mandate of
recommending structural and personne] augmentation, and or reorganization reforms whenever
it is determined that the cause of delays in the issuance of permits, licenses, and certifications

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by a relevant agency is a systemic or structural issue. The Department of Budget and
Management (DBM) is mandated to study and comment on ARTA recommendations pursuant
to this Section. and whenever deemed meritorious and as may be relevant and appropriate. to
cause the inclusion of the relevant recommendations to the immediately succeeding National
Expenditure Plan,

SEC. 26. Study and report to reduce basic business registration process to one day and
with one registration agency. — The Department of Trade and Industry (DTI), the Department
of Budget and Management (DBM). the Securities and Exchange Commission (SEC). the
ARTA, and other relevant agencies, are directed to formulate a joint study and report to
Congress and the President on the elimination of redundant business registration requirements,
with the aim of reducing business registration to just one (1) working day. The ARTA shall be
the coordinator of efforts to complete the joint study and report.

The feasibility of a single business entities registration agency as the receiving office
and clearing house of registration requirements shall also be included in the joint study and
report.

The joint study and report shall be submitted to Congress and the President within
ninety (90) days upon the effectivity of this Act.

SEC. 27. Power of the President (0 repeal or amend rules and regulations which
preclude agency or process digitalization, — Notwithstanding any law to the contrary. the
President shall have the power to repeal or amend any rule, regulation, or issuance issued by
any agency or instrumentality under the Executive Branch, which prevents any agency or office
from making their processes compatible with the digital space. or which makes compulsory the
physical appearance of the client to complete the processing and/or issuance of any license.
permit. or certification.

SEC. 28. Power to Direct the Commissioner of Internal Revenue and the Commissioner
of Customs to expedite the processing of tax filings and payment. - Notwithstanding any law
to the contrary, the President shall have the power to direct the Commissioner of Internal
Revenue and the Commissioner of Customs to issue such regulations and perform such tasks
as may be necessary to expedite the processing of tax filings and payments, and to enhance
taxpayer experience.

SEC. 29 Study and report to integrate the National Identification System with other
mandatory registrations. The National Economic and Development Authority (NEDA) shall
formulate a comprehensive study of all mandatory social contributions. registrations. and other
required forms of identification and registration which may be subsumed into the Philippine
Identification System established under Republic Act No. 11055. The study shall include
recommendations to remove redundant registration and identification requirements.

‘The initial findings of the study shall be submitted to Congress and the President within
ninety (90) days upon the effectivity of this Act. NEDA shall make subsequent reports to
Congress and the President every thirty (30) days thereafter. and the final report shall be
submitted to Congress and the President within one hundred and eighty (180) day’s after the
date of effectivity of this Act.

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SEC. 30. Study and report on the digitization of datubases for basic social services,
including PhitHealth. ~ The Department of Information and Communication Technology
(DICT) shall formulate a comprehensive study of information and communication technology-
based solutions to minimize fraud and strengthen data management and administration of
mandatory social programs administered by such agencies as the Philippine Health Insurance
Corporation and the Social Security System.

The DICT shall also seek the definitive opinion of the National Privacy Commission
(NPC) on the measures that can be taken to facilitate the sharing and integration of databases
among government agencies to facilitate the targeting and distribution of social services.

The initial findings of the study shall be submitted to Congress and the President within
ninety (90) days upon the effectivity of this Act. DICT shall make subsequent reports to
Congress and the President every thirty (30) days thereafter, and the final report shall be
submitted to Congress and the President within one hundred and eighty (180) days afier the
date of effectivity of this Act.

The President may also request the DICT to prioritize the consideration of specific
social services in the conduct of the study.

CHAPTER SEVEN
OTHER PROVISIONS.

SEC. 31. Separability Clause. - If any part or provision of this Act is held invalid or
unconstitutional, the remaining parts or provisions not affected shall remain in full force and

effect,

SEC. 32. Repealing Clause. ~ All laws. decrees, orders, rules, and regulations
inconsistent with the provisions of this Decree are hereby repealed or modified accordingly.

SEC. 33. Effectivity. — This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in any newspaper of general circulation.

Approved,

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