Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Fifteenth Congress
Third Regular Session

2656

COMMITTEE REPORT NO.

Submitted by the Commi ivil Service and Professional Regulation and
Appropriations on SRN

Re: House Bill No. 6877

Recommending its approval in substitution of House Bill No. 6320

Sponsor: Representative Andres D. Salvacion, Jr. and Jocelyn S. Limkaichong

Mr. Speaker:

‘The Committees on Civil Service and Professional Regulation and Appropriations to which
was referred House Bill No. 6320 introduced by Rep. Andres D. Salvacion, entitled:

AN ACT
STRENGTHENING THE CAREER EXECUTIVE SERVICE

has egigidered the same and recommends that the attached House Bill No.

£ entitled:

AN ACT
STRENGTHENING THE CAREER EXECUTIVE SERVICE

be approved in substitution of House Bill No. 6320 with Reps. Andres D. Salvacion,Jr. ,
Jocelyn S. Limkaichong, Mariano U. Piamonte, Jr., Rodolfo B. Albano, Jr., Carlos M. Padilla
and Philip A. Pi

Respectfully submitted,

at _
HON:3OCELYN §. LIMKAICHONG
Chairperson
Committee on Appropriations

and Professional Regulation

THE HONORABLE SPEAKER
HOUSE OF REPRESENTATIVES
QUEZON CITY



Bouse of Ro rescniatives
Kanila

Gnrzar

HON, JOCELYN S. LIMKAICHONG
Representative, 1st District, Negros Onental
Chaiperson, Committee on Appropriations

January 22, 2013

HON. ANDRES D. SALVACION, JR

Chairperson
Committee on Civil Service and Professional Regulation

Dear Chairperson Salvacion:

Please be informed that the Committee on Appropriations in its meeting held today at
Conference Rooms 14 & 15, Ramon V. Mitra Building, approved to report out Substitute
Bill to House Bill No. 6320, tied “AN ACT STRENGTHENING THE CAREER

EXECUTIVE SERVICE” with the foliowing amendment:
On Section 21, page 6, lines 16 to 20, delete the entire provision and in lieu thereof

substitute the following:
Beek FOR THE HS
CURRE:

R, SUCH SUNE aS MAYBE:
SHALL BE

EAP!
MENTATION ae THIS ACT

Thank you

Very truly yours,
i

a“
NZ ea,
JOCELYN 5 LIMERICHONS

ec: Rep. Matiano_U. Piamonte
‘ep. Rodolfo 8. Albano:
Rep. Carios M. Padilla
Rep. Philip A. Pichay



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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Fifteenth Congress
Third Regular Session

HOUSE BILLNO. 6877

Introduced by Reps. Andres D. Salvacion Jr., Jocelyn S. Limkaichong, Mariano U.
Piamonte, Rodolfo B. Albano, Jr., Carlos M. Padilla and Philip 4, Pichay

AN ACT STRENGTHENING THE CAREER EXECUTIVE SERVICE

Be it enacted by the Senate and House of Representative of the Philippines in Congress
assembled:
ARTICLE 1
GENERAL PROVISIONS
TION 1. Short Title. ~This Act shall be known as the “Career Executive Service

Act of 20

SEC. 2. Declaration of Policy. - \1 is the policy of the State under Article IX, B,

Section 3 of the 1987 Philippine Constitution to
Jected and development-oriented corps of public managers who

ablish a care¢

vice and to provide the

public sector with a well-s
eas a

ry expertise and responsive leadership qualities that will

possess the nec
‘ism in

stabilizing force, an instrument for change. a vanguard of professionalism and cai
the civil service, and a critical link between the government and the people. Towards this end,
the State hereby calls for an effective. efficient and responsible administration of the

ass within the third level of the career service that will maintain

executive/managerial ¢
continuity and stability in the bureaucracy

SI 3. Coverage. - This Act shall cover the Career Executive Service which

consists of the executive/managerial class of the third level of the career service in the

Executive Branch of the government all of whom shall be appointed by the President. and

those occupying positions above division chief level but are not appointed by the President.

SEC. 4. Definition of Terms. — As used in this Act. the following terms shall be

construed as follows:


sto the corps of well-selected

1 (a) Career Executive Service

and development-oriented career executives who provide competent and

3 faithful service.

4 (b) Career Executive Service Board (CESB) refers to the policy —
5 making body responsible for the development, maintenance and
6 administration of the System under the super of the Civil Service
7 Commission as provided herein.

8 (c) Career Executive Service Eligible (CESE) refers to a person who
9 passed the qualifying examination process set'by the CESB but has not yet
10 been appointed to a position in the CES.

aa (a) Career Executive Service Officer (CESO) refers 0 a Career
12 Executive Service Eligible who is conferred a CES rank and appointed to a
3 position covered by the CES.

4 (e) Career Executive System (System) refers to the system designed
15 to professionalize and promote career development among the executive and
16 managerial personnel of the third level in the career service.

v7 (£) Mobility refers to the movement of a CESO from one position 10
18 another without reduction in rank or salary.

19 (g) Rank refers to the index of classification of CESOs to which a
20 CESE may be appointed by the President in accordance with the requirements
21 prescribed by the Board.

2 (h) Third Level refers to the highest level in the career service of the
23 Civil Service System which includes positions in the executive and
24 managerial class cévering all positions higher than chief of division based on
25 the position classification system of the Deparment of Budget and
26 Management and the Civil Service Commission.

27 i ARTICLE ID

28 CAREER EXECUTIVE SYSTEM

29 SEC. 5. The Career Executive System ~ The System shall cover all executive and

30 managerial positions in the third level of the career service in the Executive Branch, as

31 defined in Section 4 hereof. Entry and advancement in the System shall be governed by the

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s. as may be prescribed by the

nd such other

requirement

principles of merit and fitnes:
CESB. The System shall be essentially characterized by the principles of merit and fitness,
security of tenure and mobility.

SEC. 6. Career Executive Service Board (CESB) ~ A Career Executive Service
Board, hereinafter referred to as the Board. under the supervision of the Civil Service

all be composed of the Chairperson of the

Commission (CSC) is

Commission who shall serve as the Board’s ex officio Chairperson and four (4) ex officio

ment (DBM) or

members, namely: the Secretary of the Department of Budget and Man:
his/her permanent representative holding @ position not lower than an Undersecretary ; the
President of the Development Academy of the Philippines (DAP); the Dean of the National
College of Public Administration and Governance (NCPAG) of the University of the
Philippines; and the representative of a duly accredited national federation or union of
CESOs. The Board shall also include three (3) members to be appointed by the President for
a term of three (3) years. namely: a representative of a nationwide association of personnel
and/or human resource practitioners in the private sector; a representative of the Philippine
Association of Professional Regulatory Board Members (PAPRBM) and a representative of

the Office of the President.

SEC. 7. Powers and Functions of the Board. ~The Board shall be the policy-making
body for the System. It shall promulgate rules, standards and procedures in the recruitment,

selection, assignment to positions, attestation of appointment to CES positions. conferment of
ranks, classification. compensation, mobility. performance management, tour of duty,

rewards and incentives and training and career development of CESOs and CESEs: Provided.

That in the exercise of its power of supervision, the Commission may mori proprio review.
revise or reverse any policy of the Board within a period of thirty (30) days from receipt of
written notice thereof: Provided, further, That if the Commission does not act within the said
period, the subject policy of the Board shall be deemed as presumptively approved by the
Commission.

SEC. 8. Office of the Career Executive Service (OCES). ~ The Office of the Career
Executive Service (OCES) shall serve as the Board's secretariat with its own administrative
and financial components. It shall be responsible for the implementation of the policies. rules.
regulations, decisions, directives and instructions pertaining to the System. It shall be headed
by an Executive Director, who shall be appointed by the President. assisted by two (2)

Deputy Executive Directors. both of whom shall be appointed by the President.

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ARTICLE I
POLICIES AND STANDARDS IN THE CAREER
EXECUTIVE SYSTEM.

9. Membership in the Career Executive System. ~ A person who meets the

academic, leadership, experience and other requirements and passes the required examination

prescribed by the Board shall be included in the register of CESEs and upon appointment to
shall become an active member of the CES. A CESE who is

an appropriate rank in the CE!

appointed to a position in the CES shall be recommended for original appointment to CESO

rank by the Board. This process completes his/her membership in the CES. Recruitment into

em shall be conducted government-wide with provisions to allow qualified or

the Sys

outstanding persons from the non-government or private sector to enter the CES

SEC. 10. Security of Tenure.— A CES incumbent shall enjoy security of tenure in the
CES based on eligibility. and shall not be suspended nor dismissed except for cause and with
due process of law.

SEC. 11. Compensation. ~A CESO shall be compensated according to rank and
performance. In case a CESO occupies a position whose salary grade is higher than that of
the rank the CESO is holding, the CESO shall receive the difference between the salary grade
of the position and the rank. The Board. in coordination with the Commission and the DBM,

shall develop and periodically review a compensation plan for CESOs. The employing

agency shall provide the funds to pay the salary. fringe benefits and allowances of a CESO.

SEC. 12. Rank System in the Career Executive System. — A CESO shall be
appointed in accordance with a rank system which shall be established and determined by the

Board. Rank classification shall be based on proven competence and qualifications such as
and other

appropriate academic and professional background, broad levels of responsibi

relevant considerations as may be prescribed by the Board.

appointed to a position in the CES,

SEC. 13. Appointment to Rank. ~ Only a CE

shall be appointed to rank by the President upon recommendation by the Board.

SEC. 14. Promotion in Rank. ~ The Board shall provide for the criteria which shall
be the basis for promotion in rank. The criteria to be established shall include, but shall not be
limited to, performance, qualifications, and proven competence. The Board shall recommend
to the President qualified CESOs who meet the criteria prescribed by the Board for promotion

in rank.


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SEC. 15. Mobility in the Career Executive System. — A CESO may be assigned 10

any position in the System without diminution in rank and salary, The tour of duty of each
this period the CESO shall not be

CESO shall be for a period of three (3) years. During
transferred to another office or position without consent. In filling a vacancy, the head of
agency shall give preference and priority to those who have been appointed to rank or
conferred CES eligibility. The Board shall provide information on vacancies. an updated list
of available qualified persons who may be assigned. and such other mechanisms to assist the

head of agency in the process of selection.

SEC. 16. Appointment to Positions in the Career Executive System. ~ \ CESO and
CESE shall be given priority in appointments to vacant positions in the System. In
exceptional cases, a non-CESO and non-CESE may be appointed to a position in the System
on a temporary status but may be replaced once a CESO or CESE becomes available.

Officials who are in Salary Standardization Law (SSL) — exempt agencies shall likewise be

required to be CESEs before being appointed in the System, Career undersecretaries, assistant
tem shall preferably come from the

secretaries and other officials of similar rank in the S}
roster of CESOs and CESEs. The appointing authority shall choose from a list of at least
three (3) eligibles who are qualified, available and willing to be appointed to the vacant
istant secretaries and other officials of

position. The number of career undersecretaries. a:
jons in the government shall conform to the number set by Jaw.

similar rank appointed to pos
‘The Commission shall establish a mechanism to ensure that assignments to positions in the

System conform to the standards prescribed under this Act.

SEC. 17. Discipline. — Investigation and adjudication of administrative complaints
against occupants of positions in the CES appointed by the President, shall be vested with the

President. In the case of non-presidential appointees. the same shall be vested concurrently

1 Service Commission.

with the head of the ageney and the Ci

SEC.18. Training and Career Development. ~ The Board shall establish a continuing
program of training and career development of CESOs and CESEs.

SEC. 19. Performance Management. ~ The Board shall develop a system for
periodic evaluation of the performance of occupants of positions in the CES taking into
account their accomplishments and managerial capability. This periodic evaluation system
shall be the basis for the grant of incentives and awards. as well as for sanctions for poor

performance.



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ARTICLE IV
MISCELLANEOUS PROVISIONS
SEC. 20. Review and Evaluation of the CESB System. After the first three (3) years
of implementation of this Act and every three (3) years thereafter, the Civil Service
Commission shall convené an evaluation body that will conduct the evaluation of the Board
and OCEFS in order to assess the effectiveness of the CESB in managing the System. The
Body shall be composed of no less than three (3) heads of public and private institutions
whose work is related to executive development within the framework of developing
countries like the Philippines. At least two (2) of them should come from non-government
institutions (NGOs).
The evaluation body shall conduct public consultations and indicate its evaluation
reports and recommendations which portions have been the result of the said public
consultations.

The evaluation body shall submit its report and recommendations to the Board,

CSC and the appropriate committees in Cong

SEC. 21. Appropriations. ~The amount necessary for the initial implementation of
this Act shall be charged against the current year’s appropriations of the CESB. Thereafter,
is Act shall be

such sums as may be necessary for the continued implementation of th
included in the Annual General Appropriations Act.

SEC. 22. Transitory Provisions. - The incumbent Chairman of the Board of the
current Career Executive Service Board. as well as the other incumbent Board members. shall
continue to exercise their duties and functions until the new Board shall have been created
pursuant to this Act. The Career Executive System Board (New Board) created under this law
shall then succeed and take over the functions of the Career Executive Service Board (Old

Board) and the composition and members of the New Board, as enumerated under Section 6

of this Act, shall assume their respective posts: Provided, ‘Thi

(a) All rights pertaining to the CESOs and CESEs which shall have

accrued prior to the effectivity of this Act shall be respected:

bles (CSEEs) in the CES at the time

(b) Career Service Executive Eli

of the effectivity of this Act shall be allowed to undergo further screening

process to qualify as CESE

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is of the current

4s, funds. grants and re

(c) The personnel

CESB secretariat are hereby transferred to the OCES; and
(d) Incumbent officials and employees of the current CESB secretariat
shall continue to exercise their respective functions. duties and responsibilities

with the corresponding benefits and privileges and shall be deemed absorbed

by the OC

SEC. 23. Implementing Rules and Regulations.-The Board and the Commission
to

shall promulgate jointly the implementing rules and regulations (IRR) as may be necess:
implement the intent and purposes of this Act. Said IRR shall be published in the Official
Gazette and in two (2) ewspapers of general circulation.

SEC. 24. Repealing Clause. ~ Article IV. Part Ill of the Integrated Reorganization
Plan, as approved under Presidential Decree No. 1, as amended, is hereby repealed. All
provisions of Executive Order No. 292. or the Revised Administrative Code of 1987 and
Executive Order No. 891. series of 2010 that are inconsistent with this Act are hereby
repealed. All other laws, rules and regulations or parts thereof that are inconsistent with the
provisions of this Act are hereby repealed or modified accordingly

SEC.
invalid or unconstitutional, no other part, section or provision shall be affected by the .

5. Separability Clause. — If any part, section or provision of this Act is held

invalidity or unconstitutionality thereof.

SEC. 26. Effectivity Clause. — This act shall take effect fifteen (15) days after its

Publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,


FACT SHEET

House Bill No. 6320

AN ACT
STRENGTHENING THE CAREER EXECUTIVE SERVICE

Introduced by: REPRESENTATIVE ANDRES D. SALVACION, JR.

Committee Referrals: COMMITTEE ON CIVIL SERVICE AND
PROFESSIONAL REGULATION (Primary)
Committee Chairperson: REP. ANDRES D. SALVACION, JR.
COMMITTEE ON APPROPRIATIONS (Secondary)
Committee Chairperson: REP. JOCELYN S. LIMKAICHONG

OBJECTIVES:

To clarify the policies and standards in the Career Executive System
governing the entry into the system, security of tenure, compensation, rank
system, and manner of appointment and promotion to rank of civil
servants.

To ensure the development of a strong, competent and accountable corps
of public managers in the executive branch of the government.

KEY PROVISIONS:

¢ Creates a new Career Executive Service Board (CESB), under the
supervision of the Civil Service Commission, which shall serve as the
policy making body of the Career Executive System

Covers the executive or managerial class of the third level of the career
service in the Executive Branch

Creates the Office of the Career Executive Service (OCES) which serves
as the Secretariat of the CESB under the Civil Service Commission

* Provides for.continuing training and career development to Career
Executive Officers (CESOs) and Career Service Eligibles (CESEs).

Provides for security of tenure of CES incumbent based on eligibility who
shall not be suspended nor dismissed except for cause and with due
process of law.

RELATED LAW:

« Exec. Order 292 or the Administrative Code of 1987
« Exec. Order 891, series of 2010