Republic of the Philippines f
HOUSE OF REPRESENTATIVES | ©
Quezon City {
SIXTEENTH CONGRESS
Second Regular Session

House Bi. nol G85 _ ‘soba

Introduced by Rep. Winston “Winnie” Castelo

EXPLANATORY NOTE

The proposed bill proceeds from the observation that little to none is undertaken by
government to address the oft-repeated problem of too many rules and regulations as they
apply to small, medium, and large businesses that made one observer think it is part of the
costs of doing business in the Philippines. And this problem originates not just from the national
level but more so at the local level of governmental affairs.

Thus, there should be more sensible regulatory requirements intended to reduce
illnesses, accidents, protect the environment and maintain quality of life. And these can be
achieved only if regulations are not onerous, not poorly designed, and not of the type that would
‘cause harm not to mention overwhelming small businesses, reducing economic growth,
eliminating jobs, killing innovation, and causing serious hardship.

In fact, in light of the upcoming Asean integration that should come about by 2015, it is
high time to create the structure to be called the Office for Information and Regulatory Affairs
that is designed to play a coordinating function thus ensuring that multiple actors, with their own
areas of expertise or specialization could bring their knowledge to bear.

For example, in the case of smalll enterprises, the regulatory requirements imposed upon
them should now be the subject of regulatory review. And yet, many studies found that these
small and medium enterprises or entrepreneurship is the lifeblood of urban regeneration such
that they should not be stymied by costs, regulations, and hardships in securing permits or
licenses for the business.

The review technique envisioned in this proposed measure is simply finding the right
balance and giving careful consideration to the track records of old rules and the likely
consequences of any new requirements. It cannot be denied that there seems to be a constant
flow of new regulatory requirements that have proved burdensome to the private sector.

This bill adopts a new persuasion and it is that in today's economy, the need for
regulatory discipline, this time on the part of the regulator or from national and local


governments should now reflect that such governments are responsible and would not be the
first to exact burdensome, unjustified, and harmful regulations otherwise inimical to the private
‘sector across all types and sizes of business activity.

Purposively therefore, this bill seeks to find creative ways to institutionalize regulatory
simplification and freeing the private sector without in any way jeopardizing public safety, health,
or the environment.

For all intents anid purposes, this bill seeks simply to be a mechanism of ‘regulatory
lookback’ precisely to eliminate or streamline regulations based on the results of cost-benefit
analysis. This must produce significant reform proposals and thereby saving millions or billions
of pesos each year for government

For example, if an agency, at either national or level embarks on imposing a new
regulation at the cost of P100 million say for worker safety, it must make sure that in terms of
benefits, the same will not cost much less, say only P50 milion. In other words, government
agencies must ensure that in making decisions, the actual consequences of the rules they
proposed are maximized in terms of net benefits, is way;-it.can generate savings on the

growth and prosperity on the other.

The immediate passage of this hlimble measure is therefore most|earnestly sought,


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Second Regular Session

House BILL No. 4685

Introduced by Rep. Winston “Winnie” Castelo

AN ACT
CREATING THE OFFICE FOR INFORMATION AND REGULATORY AFFAIRS AS INTER-
AGENCY STRUCTURE TO UNDERTAKE REGULATORY REVIEW ANDTAKE CHARGE OF
ALL REGULATORY AFFAIRS OF SMALL, MEDIUM, AND LARGE BUSINESS,
ENTERPRISE OR ACTIVITY AND FOR OTHER PURPOSES

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

SECTION 1. This Act shall be known as the "Office for Information and Regulatory
Affairs Act of 2014"

SEC. 2. There shall be created the Office for Information and Regulatory Affairs vested
with its coordinating function to conduct close, periodic, and continuing regulatory review of the
rules and regulations imposed by the national and local government agencies upon small,
medium, and large business, enterprise, or activity

The same shall be constituted as an inter-agency structure comprised of the Presidential
Management Staff, the Department of Budget and Management and the National Economic and
Development Authority in collaboration with the private sector.

SEC. 3. Under this Act, national and focal agencies are separately and collectively
enjoined to discipline the regulatory process and as such required detailed analysis of costs and
benefits when issuing new regulations.

SEC. 4, This Act shall take effect immediately upon approval.

Approved,