Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

SEVENTEENTH CONGRESS
Second Regular Session

7149

HOUSE BILL NO.

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

EXPLANATORY NOTE

The “Doing Business 2018” report of the World Bank ranked the Philippines
113% among 190 countries in terms of ease of doing business, slipping from 99t
place. In terms of ease of starting a business, the Philippines lags behind its Asian
neighbors.

The same report noted that the Philippines improved its business
regulations last year but despite the continued reports, small and medium-sized
businesses still face significant regulatory challenges. For one, the regulations and
process of various government agencies are often redundant and lengthy. Also
contributing to the frustration of the people is the processes of getting government
LD.s, paying taxes, and obtaining permits which are very time-consuming. All these
and more bureaucratic inefficiencies often discourage young entrepreneurs to put up
their businesses.

The State must take the necessary actions to facilitate the reduction of
regulatory burdens to allow the country to reap the fruits brought by empowered
small and medium businesses.

This bill seeks to create a Government Efficiency Office which will ensure
the efficient implementation of existing and proposed regulations across government
agencies. Their functions also include reviewing existing regulations to recommend
their repeal, amendment, or consolidation which will relieve, if not completely
remove, the regulatory barriers in complying to these regulations.

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

\LFRED VARGAS


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

SEVENTEENTH CONGRESS
Second Regular Session

7149

HOUSE BILL NO.

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

AN ACT
IMPROVING THE QUALITY OF REGULATION AND REDUCE REGULATORY
BURDEN THROUGH THE CREATION OF A GOVERNMENT EFFICIENCY OFFICE

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

SECTION 1. Title. - This Act shall be known as the “Government Efficiency
Office Act.”

SECTION 2. Declaration of Policy. - The State recognizes the need to
establish a comprehensive and centralized regulatory management to improve
quality of regulations, and to reduce regulatory burden. The operations of a
regulatory management system shall reduce the cost of doing business; improve
service delivery to the public; and strengthen decision-making, accountability, and
efficiency in government and society.

SECTION 3. Definition of Terms. - For the purposed of this Act, the following
terms shall refer to:

(a) Amendment refers to the addition, deletion and/or change of certain
provision/s of a rule or regulation.

(b) Consolidation refers to the integration of multiple, similar regulations into
one legal document.

(c) Delisting refers to the removal of invalid rules and regulations already
repealed from the agency's website and roster of activities of issuances.

(d) Existing Regulation refers to a circular, memorandum order, or executive
order by the national government, a local government or other regulatory
body which is already issued and is already in circulation.

(€)NPDIR refers to the National Policy on the Development and
Implementation of Regulations.


() Proposed Regulation refers to a circular, memorandum order, or
executive order by the national government, a local government or other
regulatory body which is still in its formation or development stage.

(g) Regulation refers to a legal instrument that gives effect to a government
policy intervention. This is may be in the form of a circular, memorandum
order, or executive order issued by national government, a local or other
regulatory body.

(h) Regulatory Burden refers to an administrative cost of a regulation in
terms of time, effort, or financial resources expended by persons to
generate, maintain, or provide information to or for a government office,
including the resources expended for: reviewing instructions; acquiring,
installing, and utilizing technology and systems; adjusting the existing ways
to comply with any preciously applicable instructions and requirements;
searching data resources; completing and reviewing the collection of
information; and transmitting, or otherwise disclosing the information.

(i

Regulatory Management System refers to a set of policies, principles,
standards, institution, processes and tools employed by government to
pursue and maintain good quality regulation and minimize regulatory
burden.

(Gj) Regulatory Management and Review refers to a series of actions taken
ona regulation or set of regulations, including but not limited to regulatory
mapping, organization, examination, research, consultation, impact
analysis, recommendation and final agency action on the regulation based
on the results of the analysis. The final agency action may involve the
following: (i) proceeding or not proceeding with the promulgation of a new
regulation or (ii) the amendment, consolidation, delisting or repeal of an
existing regulation.

(k) Repeal refers to the full elimination of a rule/issuance because it has been
deemed no longer necessary.

SECTION 4. Establishment of the Government Efficiency Office. - To
attain the purposes of this Act, the “Government Efficiency Office” is hereby
created, hereinafter referred to as the "GEO", which shall be attached to the Office
of the President. The GEO shall have the primary responsibility of implementing
the National Policy on the Development and Implementation of Regulations
(NPDIR).

SECTION 5. National Policy on the Development and Implementation of
Regulations. - The GEO, in cooperation with the National Economic and
Development Authority (NEDA), National Competitiveness Council (NCC), the
Philippine Institute for Development Studies (PIDS), the Senate and Congressional
Economic Planning Offices, and a representative from each national government


agency, shall create the National Policy on the Development and Implementation of
Regulations (NPDIR), which is shall contain the regulatory management and review
policies, principles, standards, and guidelines to be followed by all government
agencies.

SECTION 6. Functions of the Government Efficiency Office. - As the highest
overseeing body for all regulatory activities of national and local government
agencies and units, the GEO shall have the following functions:

a) Head the implementation of the NPDIR in coordination with the concerned

government agencies;

Develop, coordinate and oversee the regulatory management system for the

implementation of the NPDIR;

©) Provide directions and guidelines for the regulatory management and review

process at the agency and inter-agency level;

Set an annual government-wide goal for reduction of regulatory burden by at

least ten percent (10%) during each of the next three years, and set annual

agency goals to reduce regulatory burden impose on the public that represent

the maximum practicable opportunity in each agency;

Provide direction on the acquisition and use of tools on the expertise in

information technology, behavioral science, user experience design, and any

other fields that contribute to the reduction of regulatory burden and the

improvement of service delivery to the public;

f) Recommend policies, processes and systems to improve regulatory
management and review in ways that increase the productivity, efficiency, and

effectiveness of the government agencies and programs, including service

delivery to the public;

Submit advisory opinions, studies, and annual special reports to Congress on

proposed national legislation to reduce regulatory burden;

Coordinate with legislative-Executive Development Advisory Council (LEDAC)

on proposed national legislation to reduce regulatory burden; and

i) Ensure the dissemination of the public access to information on the regulatory
management system and changes in laws and regulations relevant to the
public.

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SECTION 7. Organization of the Government Efficiency Office. - The GEO
shall be headed by an Executive Director appointed by the President who shall be
internally supported by the following units: (1) Proposed Regulations Review Unit,
(2) Existing Regulations Review Unit, (3) Research and Capacity Building Unit, (4)
Behavioral Insights Unit, (5) User Experience Design Unit, and (6) Communication
Unit. These units shall comprise the GEO. The Efficiency Office shall also work in
coordination with each agency's Internal Regulatory Management Unit and may
form other units for the effective implementation of its work.

SECTION 8. Internal Regulatory Management Unit. - It is hereby mandated
that each government agency shall create an Internal Regulatory Management Unit,


hereinafter referred to as IRMU, to directly handle all activities in relation to
regulatory management and review of proposed and existing regulations. It shall
have a representative in relation to regulatory management and review to serve as a
liaison to the Government Efficiency Office. This representative shall also form part
of Technical Working Groups (TWGs) for purposes of regulatory management and
review. This representative shall also be responsible for submitting documents
required by GEO in relation, but not limited to, internal inventory, prioritization, cost
benefit analysis, impact analysis and evidence-based research, for the regulatory
management and review of proposed and existing regulations.

SECTION 9. Proposed Regulations Review Unit. - The Proposed
Regulations Review Unit shall have the following specific functions and
responsibilities:

(a) Establish and implement the process for the management and review of
existing regulations as indicated in the NPDIR;

(b) Coordinate with government agencies’ IRMU for the management and review
of existing regulations;

(©) Generate, maintain, and update records of reviewed existing regulations,
regulatory impact analyses, regulatory impact statements, and all other
relevant information;

(d) Assess and provide advice to Congress and the LEDAC on the regulatory
impact of proposed legislation; and

(e) Perform other functions relating to the aforementioned functions as may be
provided by law or assigned by the Executive Director.

SECTION 10. Existing Regulations Review Unit. - The Existing Regulations
Review Unit shall have the following specific functions and responsibilities:

(a) Establish and implement the process for the management and review of
proposed regulations as indicated in the NPDIR;

(b) Coordinate with government agencies’ IRMU for the management and review
of proposed regulations;

(c) Generate, maintain and update records of reviewed proposed regulations,
regulatory impact analyses, regulatory impact statements, and all other
relevant information;

(a) Identify and submit to Congress and the LEDAC proposed legislation to repeal
or amend existing laws found to be causing unnecessary and/or significant
regulatory burden; and

(e) Perform other functions relating to the aforementioned functions as may be
provided by law or assigned by the Executive Director.

SECTION 11. Research and Capacity Building Unit. - The Research and
Capacity Building Unit shall have the following specific functions and responsibilities:

(a) Undertake research, data collection, analysis and dissemination of regulatory
research and statistics, laws, policies, agreements, and other related
information;


(b) Benchmark best practices in regulatory management and easing regulatory
burden;

(©) Collaborate with government and non-government research institutions on
regulatory management policies and studies;

(d) Partner with the Philippine Institute for Development Studies (PIDS) in
conducting sectoral and macro level impact assessment and potential effects
of regulatory burden;

(e) Conduct or facilitate the conduct of trainings and courses for the benefit of the
technical staff of the Government Efficiency Office and other government
personnel directly or indirectly engaged in regulatory management policy in
order to build, improve, and enhance their capacity and competence in
regulatory management and review;

( Design and implement a regulatory management consultancy fellowship
program that shall deploy experienced management consultants to partner
government agencies and assist them in reducing regulatory burden and
improving service delivery to the public;

(g) Perform other functions relating to the aforementioned functions as may be
provided by law or assigned by the Executive Director.

SECTION 12. The Behavioral Insights Unit. - The Behavioral Insights Unit
shall have the following specific functions and responsibilities:

(a) Provide behavioral science advice to the GEO, relevant government offices,
and to Congress towards improving the design and impact of laws and
regulations through the introduction of more realistic models of human
behavior, with guidance form experts in economics, psychology, and
relevant fields;

(b) Collaborate with the local and international research institutions with
regards to the use of behavioral science in redesigning regulation and
public service.

(©) Generate, maintain and update records of the local application of behavioral
science in regulatory management and policy-making;

(d) Conduct or facilitate the conduct of tests and trials that provide empirical
data towards the use of behavioral science in the design of regulation and
public services; and

(€) Perform other functions relating to the aforementioned functions as may be
provided by law or assigned by the Executive Director.

SECTION 13. The User Experience Design Unit. - The User Experience
Design Unit shall have the following specific functions and responsibilities:

(a) Generate, maintain and update records of users experience best practices in
government;

(b) Provide users experience advice to the GEO, relevant government offices
and to Congress towards improving the design and impact of laws and
regulations;


(© Design and undertake crowdsourcing activities and public consultations for
purposes of gathering information relevant to the regulatory management
and review process; and

(d) Perform other functions relating to the aforementioned functions as may be
provided by law or assigned by the Executive Director.

SECTION 14, The Communication Unit. - The Communication shall have the
following specific functions and responsibilities:

(a) Promote the functions, objectives, and accomplishments of the GEO to the
public;

(b) Formulate and implement the communications strategy of the GEO to
ensure alignment of regulatory management objectives among government
agencies;

(c) Create and handle the GEO's website shall contain all updates on
regulations; and

(d) Perform other functions relating to the aforementioned functions as may be
provided by law or assigned by the Executive Director.

SECTION 15. Proposed Regulations. - In accordance with the NPDIR, all
national and local government agencies shall be required to submit all new
proposed regulations to the GEO, which shall then assess and inform the
submitting government unit within five (5) working days whether the said agency
needs to take undertake a regulatory impact analysis for the proposed regulation.
Should the GEO fail to assess the proposed regulation within five (5) days, the
submitting government units shall be deemed allowed to move forward with the
proposed regulation.

Should the GEO assess that the proposed regulation needs to undergo regulatory
impact analysis the submitting government agency shall carry out such and report
its results to the GEO within thirty (30) days. The Office shall review the report of
the submitting government unit and shall conduct final examination and issuance
ofa regulatory impact statement for consideration by the government agency.

SECTION 16. Existing Regulations, - In accordance with the NPDIR, the
GEO shall determine government- wide and agency targets to reducing regulatory
burden per year. It shall also identify priority thematic and sectoral areas for the
same. Based on the identified priorities and targets, the GEO shall promulgate the
necessary policies, guidelines and schedules for the annual management and review
process for existing regulations on the agency and inter-agency levels, and notify the
concerned government agencies of the same. Upon release of such concerned
government agencies, the IRMUs of each concerned agency shall conduct an internal
mapping of regulations and submit a complete list of existing regulations in line with
identified priority area. The GEO shall then coordinate with the concerned agencies
for the completion of the regulatory management and review process in accordance
with the guidelines and schedules provided.


SECTION 17. The Rule of the Department of Budget and Management. -
The Department of Budget and Management (DBM) shall consider the regulatory
management and review targets and accomplishment of each government agency in
DBM's assessment of the respective agency's annual budget proposals.

SECTION 18. Publication. - The GEO must periodically release a list of all
repealed and amended regulations to the public through the official website and/or a
publication of general circulation.

SECTION 19. Implementing Rules and Regulations. - ‘The Government
Efficiency Office, in consultation with the National Economic and Development
Authority (NEDA), the National Competitiveness Council (NCC), The Department of
Budget and Management (DBM), the Department of Trade and Industry (DTI), the
Department of Finance (DoF),and Department of Interior and Local Government
(DILG), shall issue the rules and regulations necessary to implement the provisions of
this Act ninety (90) days from the date of appointment of the GEO Executive Director.

SECTION 20. Appropriations. - The amount necessary to implement the
provisions of this Act shall be charged against the current year’s appropriations of
the Office of the President. Thereafter, such sums as may be necessary for its
continued implementation shall be included in the annual General Appropriations
Act.

SECTION 21. Separability Clause. - If any provision of this Act shall be
declared invalid or unconstitutional, such declaration shall not affect the validity of
the remaining provisions of this Act.

SECTION 22. Repealing Clause. - All provisions of laws, presidential decrees,
letters of instruction and other presidential issuances that are incompatible or
inconsistent with the provisions of this Act are hereby deemed amended or repealed.

SECTION. 23. Effectivity. - This Act shall take effect fifteen (15) days
following its publications in the Official Gazette or in any two (2) newspapers of
general circulation.

Approved,