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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
EIGHTEENTH CONGRESS
First Regular Session

2857
House Bill No.

Introduced by Representative John Marvin “Yul Servo” C. Nieto

EXPLANATORY NOTE

This bill aims to promote and maintain effectiveness, efficiency and economy
in the government and enhance institutional capacity to improve public
service delivery, and to ensure the attainment of the country’s societal and
economic development goals and objectives.

The passage of this bill into law will mandate the state to focus its functions
and resources on the essential role, scope, and level of governance, and
minimize, if not eliminate, redundancies, overlaps and duplication in its
operations and simplify its rules and regulations, systems and processes.

This representation is a firm believer that the local governments and
agencies brings the government closer to the people, thereby promoting
accessibility, efficiency, and effectiveness of public service delivery. As such,
this proposed legislation is not only timely, but is also essential in the
attainment of our goal as a nation: to uplift the lives of every Filipino.

The same legislation has already been approved by the House of
Representatives and received by the Senate during the 17" congress. As a
manifestation of support to the ultimate goals of this measure, this
representation respectfully re-files this bill.

JOH VIN/“YUL SERVO” C. NIETO


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
EIGHTEENTH CONGRESS
First Regular Session

House Bill No. iy

Introduced by Representative John Marvin “Yul Servo” C. Nieto

AN ACT
RIGHTSIZING THE NATIONAL GOVERNMENT TO IMPROVE PUBLIC
SERVICE DELIVERY

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

SECTION 1. Short Title. - This Act shall be known as “Rightsizing the
National Government Act.”

SEC. 2. Declaration of Policy. - It is hereby declared the policy of the
State to promote and maintain effectiveness, efficiency and economy in the
government and enhance institutional capacity to improve public service
delivery, and to ensure the attainment of the country’s societal and
economic development goals and objectives. Consistent with this, the
government shall focus its functions and resources on the essential role,
scope, and level of governance, and minimize, if not eliminate,
redundancies, overlaps and duplication in its operations and simplify its rules
and regulations, systems and processes.

SEC. 3. Coverage. - This Act shall cover all agencies of the executive
branch, including departments, bureaus, offices, commissions, boards,
councils, and all other entities attached to or under their administrative
supervision, government-owned or controlled corporations (GOCCs) not
covered by Republic Act No. 10149 or the GOCC Governance Act of 2011.

The -Legislature, the Judiciary, the Constitutional Commissions, and the
Office of the Ombudsman may, within their respective authorized


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appropriations, likewise rightsize their respective offices, consistent with the
principles and guidelines contained in this Act.

Local Government Units (LGUs) may also rightsize their respective offices,
consistent with the governing principles and guidelines contained in this Act
and the provisions of RA No. 7160 or the Local Government Code of 1991,
and subject to their financial capability.

The Governance Commission for GOCC (GCG) shall continue to exercise its
authority under RA No. 10149 to reorganize, merge, streamline, abolish, or
privatize any GOCC, in consultation with the department or agency to which
the GOCC is attached.

SEC. 4. Principles and Guidelines. - The National Government shall
implement a Rightsizing Program in accordance with the following principles
and guidelines:

a) The role of government and the scope, level, and prioritization of
government activities shall be determined in accordance with the
Constitutional mandate, political and socio-economic objectives
of the government, and available resources;

b) The government shall establish a conducive policy environment
to encourage active private sector engagement in the production
and delivery of goods and services;

c) The delineation of responsibilities between the National
Government and the LGUs in the provision, Production, and
delivery of goods and services shall be clearly defined;

d) A whole-of-government approach shall be adopted to ensure
seamless operations of agencies within and across sectors and to
be more responsive to public needs;

e) Government operations shall be simplified so that the
departments/agencies can focus on the performance of their
core functions and implementation of programs and projects that
will lead to the attainment of the desired sectoral and national
goals and outcomes;

f) Government systems and processes shall be simplified and
modernized to facilitate the delivery and upgrade the quality of
frontline services, as well as to improve policy formulation,


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9)

h)

planning and performance evaluation, and raise overall
productivity of the public sector;

Government rules, procedures, and requirements shall be
rationalized to reduce the regulatory burden on citizens,
businesses, and other stakeholders, as well as reduce the
administrative burden on the part of the government; and

The organizational structure of an agency shall be designed to
facilitate the effective, efficient, and economical implementation
of programs and projects, and the attainment of organizational
outputs and outcomes; rightsized and the appropriate staffing
mix shall be determined based on the skills and competencies
required to effectively and efficiently carry out the agency
mandate and functions.

SEC. 5. Authority of the President of the Philippines to Rightsize the
Operations of the Executive Branch. - Pursuant to the governing rules,
Policies, standards and guidelines stipulated in this Act, the President of the
Philippines is hereby granted the following authority in the rightsizing of the
operations of the different agencies of the Executive Branch:

a)

b)

To pursue the following functional shifts/modifications:

1) strengthen functions of the agency which directly
contribute to the targeted ultimate societal outcomes of
the National Government and/or the targeted sector/sub-
sector outcomes of the agency;

2) scale down, phase out, eliminate or discontinue functions,
Programs, and projects that can better be carried out or
undertaken by the private sector, or have already been
devolved to LGUs consistent with the governing principles
provided in this Act; and

3) transfer/integrate functions from one agency to another
which can better perform the same.

To undertake the following organizational actions:

1) regularize ad hoc offices whose functions are vital and
significant, thus must be continually undertaken by the
government;


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SEC.

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qd)

e)

2) = merge or consolidate agencies whose functions are
necessarily overlapping or duplicating and can be
undertaken by a single entity; or clients are similar or
related to rationalize the use of government resources;

3) split agencies with multifarious functions which are
deemed distinct and equally serve important aspects of
governance;

b.4 transfer offices to other agencies wherein their functions
are more aligned; and :

b.5 abolish agencies (i) which functions are already redundant
or no longer relevant or necessary, or better undertaken
by another entity; (ii) which are no longer achieving the
objectives and purposes for which they were originally
created; (iii) which are not cost-effective since they do not
generate the desired levels of outputs and outcomes vis-a-
vis the resource inputs; and/or (iv) which have already
become non-operational, dormant and/or outlived their
purposes.

To undertake other functional/organizational actions, as

necessary, consistent with the policies, principles, framework,

and standards of this Act;

To develop and provide safety nets, including their

implementation strategies, for employees of

departments/agencies who may be affected by the government's
rightsizing efforts; and

To formulate an organizational development Program to

strengthen the institutional capacity of the agencies and improve

productivity of employees.

6. Creation of a Committee on Rightsizing the Executive
Branch. - A Committee on Rightsizing the Executive Branch is hereby

created to oversee the implementation of the Rightsizing Program, in
accordance with the provisions of this Act.

The Committee shall be composed of the Executive Secretary as
Chairperson, and the Secretary of the Department of Budget and
Management (DBM) as Co-Chairperson, with the Secretary of Socio-


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Economic Planning, Chairperson of the Civil Service Commission (CSC), and
the Head of the Presidential Management Staff, as members.

The Committee shall be organized within fifteen (15) days from the
effectivity of this Act.

The Committee shall also organize Sub-Committees composed of
experts on government operations, organizational development, and human
resource management to assist in the performance of its functions.

The DBM shall provide the necessary secretariat services to the
Committee and its Sub-Committees.

In the spirit of transparency and participatory governance, the
Committee shall consult the departments/agencies concerned and accredited
public sector unions, and other stakeholders, relative to the implementation
of the Executive Branch Rightsizing Program.

SEC. 7. Powers and Functions of the Committee on Rightsizing the
Executive Branch. - The Committee shall have the following powers and
functions:

@) To develop the policies, framework, strategies, and mechanisms
to be adopted in the implementation of the Executive Branch
Rightsizing Program;

b) To conduct studies on the functions, programs, projects,
Operations, structure, and manpower complement of the
different departments/agencies;

c) To develop and prepare the rightsized organizational structure of
departments/agencies concerned and the corresponding
executive issuances for approval by the President;

d) To develop and prepare the overall change management
Program, including communication plans, to effectively manage
the transition and ensure the smooth implementation of the
Rightsizing Program;

e) To formulate the mechanisms to safeguard the welfare of
employees who may be affected by the rightsizing efforts, as
well as the appropriate organizational development program, for
approval of the President;


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f) To monitor the implementation by the different agencies of their
respective approved Rightsizing Plans, and report to the
President any issue that must be addressed;

9) To engage the services of experts/consultants, through the DBM,
to assist the Committee and its Sub-Committees in the
performance of their functions; and

h) To formulate the implementing rules and regulations (IRR) of
this Act.

SEC. 8. Submission of the Rightsized Organizational Structure and
Proposed Executive Issuances to the President. - The Committee on
Rightsizing the Executive Branch shall submit to the President the rightsized
organizational structure of agencies concerned and the corresponding
executive issuances within two hundred fifty (250) days from the effectivity
of the implementing rules and regulations (IRR) of this Act.

SEC. 9. Submission of the Detailed Organizational Structure and
Staffing to the DBM. - The heads of agencies shall prepare and submit to
the DBM the detailed organizational structure and staffing of their respective
agencies within ninety (90) days after the approval of the proposed
executive issuances by the President: Provided, That assistance in the
Preparation of organizational structure and staffing pattern has been
extended to the agency by the DBM and the CSC.

SEC. 10. Retirement Benefits and Separation Incentives for
Personnel Who May be Affected by the Executive Branch Rightsizing
Program. - The affected personnel hired on a permanent basis and with
appointments attested by the CSC, shall be entitled to retirement benefits
and separation incentives.

a) The affected personnel shall be given the option to avail
themselves of any of the following retirement benefits under
existing laws, if qualified:

1) Retirement gratuity provided under RA No. 1616 (An Act
Further Amending Section Twelve of Commonwealth Act
Numbered One Hundred Eighty-Six, as Amended, by


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b)

2)

3)

Prescribing Two Other Modes of Retirement and for Other
Purposes), as amended; or

Retirement benefit under RA No. 660 (An Act to Amend
Commonwealth Act Numbered One Hundred and Eighty-Six
Entitled “An Act to Create and Establish a Government
Service Insurance System, to Provide for its Administration,
and to Appropriate the Necessary Funds Therefor,” and to
Provide Retirement Insurance and for Other Purposes); or
Retirement, separation or unemployment benefit provided
under Republic Act No. 8291 (An Act Amending Presidential
Decree No. 1146, as Amended, Expanding and Increasing
the Coverage and Benefits of the Government Service
Insurance System, Instituting Reforms Therein and for
Other Purposes).

The retirement gratuity benefit of affected personnel who are
qualified and shall avail of RA No. 1616 shall be paid by the
Government Service Insurance System (GSIS). The GSIS shall
no longer pay the refund of retirement premiums (both
personnel and government shares) of the affected personnel who
shall avail of RA No. 1616 benefits.

In addition to said retirement benefits, the affected personnel
who would opt to retire or be separated shall be entitled to the
following applicable separation incentives:

1)

2)

3)

a)

One half (¥) of the actual monthly basic salary for every
year of government service, for those who have rendered
less than eleven (11) years of service;
Three fourth (34) of the actual monthly basic salary for
every year of government service, computed starting from
the first (1°) year, for those who have rendered eleven (11)
to less than twenty-one (21) years of service;

the actual monthly basic salary for every year of
government service, computed starting from the first (1°)
year, for those who have rendered twenty-one (21) to less
than thirty-one (31) years of service; and
One and one fourth (1 %) of the actual monthly basic salary
for every year of government service, computed starting


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from the first (1°) year, for those who have rendered thirty-
one (31) years of service and above.
The actual monthly basic salary shall refer to the salary of the
affected personnel as of the date of approval of the agency's
detailed organizational structure and staffing by the DBM.
A minimum of five (5) years of government service is required in
order for an affected personnel to be entitled to avail of the
Program's separation incentives under Section 10(b) of this Act:
Provided, That for the purpose of computing the total amount of
separation incentives that an affected personnel shall receive,
only the government service up to age fifty-nine (59) and a
fraction thereof shall be counted. Government service starting at
the age sixty (60) shall no longer be subject to the separation
incentives provided herein, without affecting the original
incentive factor determined as applicable based on the actual
years of service of the affected personnel: Provided further, That
for the purpose of complying with the required number of years
of service under Republic Act No. 8291, the Portability scheme
under Republic Act No. 7699 (An Act Instituting Limited
Portability Scheme in the Social Security Insurance Systems by
Totalizing the Workers’ Creditable Services or Contributions in
Each of the Systems) may be applied, subject to existing policies
and guidelines.
The affected personnel, if with permanent appointment attested by the CSC,
who will not opt to retire from the service shall be placed in a manpower
pool to be organized and administered by the CSC. The CSC, in coordination
with other government agencies and relevant private institutions, shall retool
the subject personnel and deploy them to agencies which require their
qualifications, skills, and competencies.
The number of personnel who will avail of the separation incentives under
Section 10 of this Act shall in no case exceed the number of positions
declared for abolition.
The specific guidelines to carry out the provisions of this section shall be
prescribed in the IRR of this Act.


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SEC. 11. Other Benefits of Retired/Separated Personnel. - The
affected personnel who retire or are separated shall, in addition to the
applicable benefits above, be entitled to the following:

a) Refund of Pag-IBIG contributions, both personal and government
of all affected members, pursuant to existing rules and
regulations of the Home Development Mutual Fund; and

b) Commutation of unused vacation and sick leave credits of the
affected personnel in accordance with existing rules and
regulations.

SEC. 12. Period of Availability of the Retirement Benefits and
Separation Incentives. - The retirement benefits and separation incentives
Provided in this Act shall be available within sixty (60) days upon approval
by the DBM of the detailed rightsized organizational structure and staffing of
departments/agencies concerned.

SEC. 13. Prohibition on Reemployment of Personnel
Retired/Separated from the Service. - Personnel who retire or are
separated from the service as a result of the implementation of the
Rightsizing Program shall not be reemployed in any agency of the Executive
Branch, including in GOCCs, for a period of five (5) years, except as teaching
or medical staff in educational institutions and hospitals, respectively.

The retired/separated personnel under the program, who are
reemployed within the prohibited period shall refund the separation
incentives received under Section 10(b) of this Act on a prorated basis.

The retired/separated personnel under the program who undertake in
consultancy services for the government shall be governed by Section 7 of
Republic Act No. 6713 (Code of Conduct and Ethical Standards for Public
Officials and Employees).

SEC. 14. Joint Congressional Oversight Committee on the
Rightsizing Program. - There is hereby created an oversight committee to

oversee, monitor and evaluate the implementation of this Act.

The oversight committee shall be composed of five (5) members each from
the Senate and the House of Representatives which shall include members of

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the Senate Committee on Civil Service, Government Reorganization and
Professional Regulation, the Senate Committee on Finance, the House

Committee on Government Reorganization and House Committee on
Appropriations.

SEC. 15. Conduct of an Impact Assessment. - The DBM shall
commission the conduct of an independent impact assessment on the
Executive Branch Rightsizing Program three (3) years from its completion to,
among others, determine the effects of, and gains from, the implementation
of the program.

SEC. 16. Report to Congress. - The President shall submit a report to
Congress on the results of the Program after the completion of its
implementation.

SEC. 17. Sunset Provision. - The authority given to the President under
this Act, as well as the existence of the Committee on Rightsizing the
Executive Branch, shall end three (3) years after the effectivity of this Act.

SEC. 18. Implementing Rules and Regulations. - The Committee on
Rightsizing the Executive Branch shall formulate the necessary IRR within
thirty (30) days from the organization of the Committee. The IRR shall take

effect fifteen (15) days after its publication in a newspaper of general
circulation.

SEC. 19. Provisions Applicable to other Branches of Government,
Constitutional Commissions, Office of the Ombudsman, and the
LGUs. - The governing principles, policies, standards, and guideline, as well
as the conditions and limitations provided in this Act, shall be followed in the
implementation of the Rightsizing Program by other branches of

government, Constitutional Commissions, Office of the Ombudsman, and the
LGUs.

The heads of offices shall issue their respective IRR and furnish a copy
thereof to the Joint Congressional Oversight Committee on the Rightsizing
Program and the DBM.


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SEC. 20. Funding Requirements. - The amount necessary for the initial
implementation of this Act shall be sourced against any applicable
appropriation items under the current General Appropriations Act.
Subsequent amount needed to continue the implementation of the Executive
Branch Rightsizing Program in the Executive Branch shall be included in the
succeeding appropriations.

In the event that the Legislature, Judiciary, Constitutional Commissions and
the Office of the Ombudsman implement the rightsizing under this Act, the
funding requirements shall be included in the succeeding appropriations.

SEC. 21. Separability Clause. - If any provision of this Act is declared
unconstitutional or invalid, the other provisions not otherwise affected shall
remain in full force and effect.

SEC. 22. Repealing Clause. - All laws, decrees, executive orders, rules and
regulations, and other issuances or parts thereof which are inconsistent with
this Act are hereby repealed, amended or modified accordingly.

SEC. 23. Effectivity. - This Act shall take effect take effect fifteen (15)
days after its publication in the Official Gazette or in any newspaper of

general circulation.

Approved,