REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

House Bill No, 7086

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

EXPLANATORY NOTE

The Office of the Government Corporate Counsel (OGCC) was found on December 1, 1935
under the Department of Justice (DOJ), it was then known as the Government Counsel Division
of the DOJ. It acts as the premier law office of government-owned and controlled corporations
(GOCCs), their subsidiaries, other corporate offspring and government acquired asset
corporations. As such, the OGCC safeguards the legal interest of all GOCCs, their subsidiaries,
other corporate offspring and government acquired asset corporations.

This bill seeks to strengthen and further professionalize OGCC by re-defining, expanding,
strengthening, and rationalizing its organization. This bill also seeks to provide an upgrade to the
compensation as well as the benefits being received by the employees of the OGCC.

It is hoped that thru the passage of this bill, we would have a more effective and efficient OGCC,
and that we would retain the services of the people in the OGCC, men and women who are

committed to providing excellent and professional service for our country.

In view of the foregoing, immediate approval of this measure is earnestly sought.

tepresentative
Magdalo Para sa Pilipino Party-List

taps


REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

House Bill No. 7086

Introduced by MAGDALO Party-List Representative _
HON. GARY C. ALEJANO.

AN ACT
TO STRENGTHEN THE OFFICE OF THE GOVERNMENT CORPORATE COUNSEL,
BY RE-DEFINING, EXPANDING, STRENGTHENING, RATIONALIZING AND
FURTHER  PROFESSIONALIZING ITS ORGANIZATION, UPGRADING
EMPLPLOYEE BENEFITS AND APPROPRIATING FUNDS THEREFOR

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

SECTION 1. Declaration of Policy.- \t shall be the policy of the State to protect and
promote the welfare, rights and interests of government-owned and -controlled corporations,
their subsidiaries, other corporate offsprings, including government acquired asset corporations,
government corporate entities and government instrumentalities with corporate powers,
government financial institutions, and other government entities, including economic zones and

state universities, referred to as "government corporations".

Toward this end, the State shall require the improvement of legal services to efficiently
and effectively address the expanding needs of these government corporations in accordance
with its

iative towards an improved fiscal management and good corporate governance.

SEC. 2. Jurisdiction and Mandate.- Any law to the contrary notwithstanding, the Office
of the Government Corporate Counsel (OGCC) shall be the legal counsel and principal law
office of all government corporations. All government corporations shall refer to the OGCC the
following:

A) All legal questions for opinion and advice;

B) Prior to their execution, all contracts for review; and

C) All cases for representation before regular courts, quasi-judicial bodies,
administrative agencies and arbitral tribunals, provided that, the Government
Corporate Counsel (GCC) may thereafter authorize the government corporation's
legal department as collaborating counsel to handle cases, as the urgency or

expediency of circumstances may warrant.


4

Moreover, as special and additional duties, the OGCC shall:

‘A) Conciliate, mediate, act as hearing officers or adjudicate all disputes or controversies
exclusively between government corporations;

B) Exercise control and supervision over the legal departments of all government
corporations;

C) Approve the engagement of private lawyers by the government corporations;

D) Serve as Corporate Secretary in all governing boards of government corporations; and

E) Perform such other special duties or functions as may be found necessary in the
interest of the service.

‘The OGCC shall be an independent and autonomous office attached to the Department of
Justice. All opinions and issuances of the OGCC shall be binding on all government

corporations.

SEC. 3. Expansion and Upgrading of Positions.- The GCC shall have a cabinet rank
and the same prerogatives, salary, allowances, benefits and privileges as the Presiding Justice of
the Court of Appeals. He/she shall be assisted by a Deputy Government Corporate Counsel
(DGCC) and twelve (12) Assistant Government Corporate Counsels (AGCC) who shall all have
the rank, salary, allowances, retirement benefits, and privileges of an Associate Justice of the
Court of Appeals.

No person shall be appointed GCC, DGCC or AGCC unless he/she is a natural-born
citizen of the Philippines and has been engaged in the practice of law in the Philippines for at
least fifteen (15) years.

The number, rank, qualifications for appointment, salary, allowances, retirement and
other benefits, and privileges of the other members of the legal staff shall be as follows:

A) Twenty (20) Government Corporate Attomey IV (GCA IV) who shall have the rank,
salary, allowances, retirement benefits, and privileges of a Regional Trial Court Judge.
No person shall be appointed GCA IV unless he/she is a natural-born citizen of the
Philippines and has been engaged in the practice of law in the Philippines for at least ten
(10) years;

B) Twenty (20) Government Corporate Attorney III (GCA III) who shall have the rank,
salary, allowances, retirement benefits, and privileges of a Metropolitan Trial Court
Judge. No person shall be appointed GCA III unless he/she is a natural-born citizen of the


Philippines and has been engaged in the practice of law in the Philippines for at least five
(5) years;

C) Twenty (20) Government Corporate Attorney Il (GCA II), who shall have the rank,
salary, allowances, retirement benefits, and privileges of a Municipal Trial Court Judge in
“ities. No person shall be appointed GCA II unless he/she is a natural-born citizen of the
Philippines and has been engaged in the practice of law in the Philippines or at least five
(5) years; and

D) Twelve (12) Government Corporate Attorney I (GCA 1). No person shall be appointed
GCA unless he/she is a natural-born citizen of the Philippines and has been admitted to
the Philippine Bar.

The GCC, DGCC and AGCC shall be appointed by the President of the Philippines. The
other members of the legal staff and administrative personnel shall be appointed by the GCC.
Appointments of the DGCC, AGCC and other members of the legal staff shall be deemed
permanent upon compliance with the prescribed qualification standards under this law.

The administrative structure of the OGCC shall be organized into the Finance and
Accounting Services, the Human Resource and Management Services, the Case and Records
Management Services, the Library Management and Information Technology Services and the
Property and Supply Services.

The legal and non-legal staff of the OGCC occupying the positions affected by the
changes embodied in this Act at the time of its approval shall thereafter occupy and discharge the
duties and functions of the upgraded positions and receive and receive the corresponding salary,
benefits and privileges without necessity of new appointment.

SEC. 4. Compensation.- The basic monthly compensation of the OGCC employees shall

be as follows:

Position Salary Grade

From To

Government Corporate Counsel 30 31

Deputy Government Corporate 29 30
Counsel

Assistant Government Corporate 29 30
Counsel



eI Ane wn

10
nf
12
13
4
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32

Government Corporate AttorneyIV | 28 29
Government Corporate Attorney III 27 28
Government Corporate Attomey IT 26 27
Government Corporate Attorney I 25 26

‘The non-legal personnel shall have the same compensation as that of their counterparts in
the Office of the Solicitor General and Court of Appeals.

The salaries, benefits and privileges of the personnel of the OGCC granted under this Act
shall be further increased to match any corresponding increase in salaries arid privileges
subsequently granted to their respective counterparts in the judiciary.

SEC. 5. Personnel benefits and privileges.- Provisions of other laws to the contrary
notwithstanding, the OGCC may provide its employees the following benefits:

I. Health care services through a health maintenance organization (HMO). Expenses
for the mandatory medical annual check-up of the GCC, the DGCC and the
AGCC shall be for the account the office.

Il. Accident insurance for all employees to be procured by the office at its own
expense for travels while in the performance of official duties;

Ill. Without prejudice to the efficiency of the service, scholarships for deserving
employees on official time and at the expense of the office to upgrade their
knowledge and skills; Provided that, scholars under this provision shall be
selected on the basis of merit as determined by competitive examination; and

IV. A provident fund which shall consist of, but not limited to contributions made by
the office and by its lawyers and employees to a common fund for the payment of
benefits to such lawyer or employees or their respective beneficiaries/heirs.

SEC. 6. Seminar and other Professional Fees.- Subject to availability of funds, fees for
relevant seminars, as well as professional membership fees for lawyers, registration fees and
related miscellaneous expenses incurred in completing the mandatory continuing legal education
(MCLE) shall be borne by the office. Professional membership, registration fees including those

for mandatory continuing professional education (CPE), and related miscellaneous expenses of

other employees holding positions for which a professional license is required by the office, shall
also be borne by the OGCE.


Cer AHeon =

SEC. 7. Transportation Benefits.- Subject to availability of funds, employees shall be
provided with contracted transportation services until such time that the office can procure
additional motor vehicles for this purpose.

SEC. 8. Other Benefits. Provisions of other laws to the contrary notwithstanding, the
legal staff of the OGCC are allowed to receive allowances, honoraria and reimbursement of
reasonable expenses from the government corporations. Employees of the OGCC may likewise
be extended such benefits and privileges as are given to the employees of their clients. Provided,
that such allowances or honoraria shall not exceed one hundred percent (100%) of their basic
salary as provided under the Salary Standardization Law (Republic Act 6758).

In addition, any member of the legal staff may be designated by the GCC to act in a
concurrent capacity as corporate secretary of, or assigned to perform special or additional tasks
in any of the government corporations and by virtue of such designation or assignment, receive
such additional compensation and privileges as maybe granted them by the concemed

government corporation.

SEC. 9. Attorney's fees and Special Assessment. The OGCC is authorized to receive
twenty percent (20%) of all the money claims collected by, or awarded/adjudged to government
corporations in addition to the attorney's fees awarded by a court, tribunal or panel, including
awards/judgments, stipulated under court-approved compromises.

The OGCC is hereby authorized to use such awards and attorney's fees to meet
contingencies, obligations and undertakings, or for employee salaries, allowances, other benefits
and incentives in Section 5 hereof, necessary or proper to promote efficiency in the service as
determined by the GCC.

The GCC is likewise authorized to make special assessments upon GOCCs to similarly
meet such contingencies, obligations and undertakings, or to provide for employee salaries,
allowances, other benefits and incentives, as may be warranted or proper as determined by the
Gee.

Attorney's fees and special assessments shall be deposited in an authorized government
depository as a trust liability and shall be made available for expenditure without the need for a
Cash Disbursement Ceiling, for purposes of upgrading facilities and equipment, granting of
employees’ incentive pay and other benefits, and defraying such other incentive expenses not
provided for in the General Appropriations Act as may be determined by the GCC. In both cases,
the usual accounting and auditing procedures shall apply.


Cr Ce ad

°

SEC. 10. Franking Privilege.- All official matters and telegrams of the OGCC addressed
for delivery within the Philippines shall be received, transmitted and delivered free of charge.

SEC. 11. Appropriations.- The amount needed for employees’ salaries, mandatory
allowances and benefits under other laws, maintenance and other operating expenses and capital
outlay shall be appropriated in the budget of the OGCC under the annual General Appropriations
Act.

SEC. 12. Implementing Rules and Regulations.- Within sixty (60) days from the
approval of this Act, the GCC, in consultation with the Secretary of the Justice and Secretary of
Budget and Management, shall promulgate such rules and regulations as may be necessary to
carry out the provisions of this Act.

SEC. 13. Repealing Clause.- Provisions of Presidential Decree No. 1415 dated June 9,
1978 other provisions of Presidential Decree 1415, Executive Order 292 or the Revised
Administrative Code of 1987, as amended, Executive Order 878 dated March 4,1983, Republic
Act No. 6000 dated August 4, 1969 and other pertinent laws rules and regulations shall remain in
force and effect unless otherwise contrary or inconsistent with the provisions of this Act.

SEC. 14. Separability Clause.- \f any of the provisions of this Act is declared invalid or
unconstitutional, the provisions not affected thereby shall continue to be in full force and effect.

SEC. 15. Effectivity.- This Act shall take effect after fifteen (15) days from its
publication in the Official Gazette or in a national newspaper of general, circulation.

Approved,