Republic of the Philippines
HOUSE OF REPRESENTATIVES, ‘et Ye yy
Quezon City, Metro Manila i i

NINETEENTH CONGRESS
First Regular Session

“2885

HOUSE BILL NO.

Introduce by B. Nograles

EXPLANATORY NOTE

Tt has been the impression of the majority of our countrymen that our government has
increasingly become troubled. In fact. its image has taken its tum From bad to worst because
of the growing number of overlapping functions in the government continuously draining
government coflers, This assaults on our bureaucracy have now become remarkably evident
as reported by the media, in the academe and in the kandscape of ordinary Filipino people.

Because of this predicament. many past administrations have resulted in reforming the
complicated. overcentralized and oversized bureaucratic organization to improve government
performances.

One of the most anticipated bureaucratic reforms that were introduced was the House
Bill 5707 also known as the Rightsizing Bill during the 17" Congress. ‘This bill was approved
by this chamber last July 07. 2017 and was transmitted fo the Senate. Also in the 18" congress.
House Bills 02518 among others have been filed that focuses on streamlining our government

Last July 25. 2022, we heard from President Ferdinand Mareos. Jr, his legislative
proposal during his State-ol-the-Nation Address, He proposed the National Government
Rightsizing Program (NGRP) Act. which tends to reform and enhanee government capacity
and seeks to crystalize and catapult government services for our country men,

According to the President. compared to previous government reorganization efforts.
the NGRP Act will entail a comprehensive strategic review of the functions. operations.
and massive and

organization, systems. and. processes of the different agene
translormational initiatives in agencies concemed. such as mergers. consolidation, splittin
transfer. and even the abolition of some offices. The rightsizing efforts will also involve the

conduct of a comprehensive strategie review of lunetions, programs and projeets that will cut

Ss Various it

encies,

Hence this bill secks to streamline the workloree of all the agencies of the executive
branch, and all other entities attached to or under their administrative supervision, government-
owned-and-controlled corporations (GOCCs) not covered by Republic Act 101049 or the
“Government Act of 2011"



The Le

lative Branch. Judiciary. Constitutional Commissions and the Office of the

Ombudsman may likewise streamline their respective offices consistent with the prineiptes and
guidelines of the proposed law while the Local Government Units may also streamline their
operations pursuant to Republic Act No 7160 otherwise known as the “Local Government
Code”

Furthermore. this bill gives the power to the President the authority’ to rightsize the
operation of the Executive Branch. Such authority includes strengthening the funetions of the
agencies: Seale down, phase out. eliminate or discontinue functions. programs. projects or
activities that have already been devolved to LGUs: Transfer/imtegrate funetions trom one
ageney to another: ercation and development of safety nets for employees oF agencies who may
be atfected by the rightsizing efforts and many more

In light of this. ¢

Jderation of this proposal is earnestly sought,

MARGARI B/NOGRALES


Republic of the Philippine
HOUSE OF REPRESENTATIVES
Quezon City. Metro Manila

INTEENTH CONGRESS,

First Regular Session

House Bill No 2885

Introduce by: Rep. Margarita Ignacia B. Nograles

AN ACT.
RIGHTSIZING THE NATIONAL GOVERNMENT TO IMPROVE PUBLIC
ERVICE DELIVERY AND FOR OTHER PURPOSES

Be it enacwd by the Senate and the Henne uf Represcmatives of the Philippines in Congress assembled:

Section 1. Short Title. - This Act shall be known as “R the National

Government Act of 2022."

Section 2, Declaration of Policy. ~ It is hereby declared the policy of the State to

promote und maintain effectiveness. effieieney 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 foe! sources on the essential role, scope. and level of
governance. and minimize. if not eliminate. redundancies. overlaps and duplications in its
operations and simplify its rules and regulations, and systems and processes.

Section 3. Coverage. - This Act shall cover all agencies of the Executive Braneh
including departments. bureaus. offices, commissions. boards. councils. and all other entities
attached to or under their administrative supervision. and Governmeat-Owned Or -Controlled

Corporations (GOCCs) not covered by Republic Aet (RA) No. 10149 (GOCC Governance Act

of 2011).


the Legislature. the Judiciary. Constitutional Commissions. Commission on Human

Rights and Office of the Ombudsman may. within their respective authorized appropriations,

jecs. consistent with the pi

likewise rightsize their respective of neiples and guidelines
contained in this Act. and within the parameters of the Unified Position Classification and

as amended.

Compensation System established under RA No. 675

J.ocal Government Units (LGUs) may also tightsize their respeetive offices. consistent

with the governing principles and guidelines contained in this Aet and the provisions of RA

No. 7160 (Local Government Code of 1991), and subject to their financial capability
the Governance Commission lor GOCCs shall continue to exercise its authority under

RA No. 10149 to reorganize. merge. sireamline. abolish or privatize any GOCC. in consultation

with the ageney to which the GOCC is attached.
Section 4. Governing Principles. - The National Government shall implement «

Rightsizing Program in accordance with the following principles:

and prioritization of government

a) The role of government and the scope. level

programs. activities and projeets. as well as the appropriate manner by whieh publie

goods and services are provided. shall be determined in accordanee with the

Constitutional mandate. political and socio-economic contests and objectives of
the government. and available resources

b) Government shall establish a conducive policy environment to encourage active

private sector engagement in the production and delivery of goods and services:

©) The delineation of functional ments and responsibilities between the

National Government and the LGUs in the provision of public goods and services
shall be clearly defined. consistent with the provisions of Republic Act No. 7160

or the Local Goverment Code of 1991. and other pertinent laws and issuances. for


purposes of providing a more seamless. accessible. and responsive government

services to the people:

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:

es could focus on the

Government operations shall be simplified so that the agene’

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:

1) Government systems and processes shail be streamlined and digitalized to improve
government interoperability. ensure shared and secured access of information in
government. and enable remote government operations io provide transparent.
timely. convenient. undisrupted. and efficient delivery of public goods and services

sector:

to the Filipino people and raise the overall productivity of the publi

Government rules. procedures and requirements shall be rationalized to reduce the

latory burden on citizens. businesses and other stakeholders. as well as reduce

the administrative burden on the part of the government: and

h) ‘the organizational structure of agencies shall be designed so as to facilitate the

effective. efficient and economical implementation of programs and projets. and

ite staffing

attainment of organizational outputs and outcomes, and the appropt

mix shall be determined based on the skills and competencies required

Section ions

. Authority of the President of the Philippines to Rightsize the Opera

of the Executive Branch, - Pursuant to the governing principles. policies. standards, and

authority in the

idelines stipulated in this Act. the President is hereby granted the following

ightsizing of the operations of the different agencies of the Executive Branch

a) To pursue the following functional shitts/moditications


by

a.l Strengthen unetions of the agency which direetly contribute to the targeted
ultimate societal outcomes of the National Government and/or the targeted

sector/sub-sector outcomes of the ageney:

2. Seale down. phase out, eliminate or discontinue functions. programs. projects
or activities that could be better carried out or undertaken by the private
sector. or have already been devolved to 1.GUs consistent with the governing
prineiples provided in this Aet: and

a3 ‘Transier integrate fumetions from one agency to another which could better

perform the same.

To implement the following organizational actions. upon determination of the

Committee on Rightsizing created under this Act that itis to the best interest of the

State to reorganize. merge. streamline or abolish agencies and offices

ant. thus must

b.1 Regularize ad hoc offices whose functions are vital and si
be continually undertaken by the government:
b.2 Merge or consolidate agencies whose funetions are unnecessarily

overlapping or duplicating and could be undertaken by a single entity, or

clients are similar or related. to rationalize the use of government resources

b.3. Split agencies with multitirious functions which are deemed distinet but

equally important aspects of governance:

bt Transfer offices to other agencies where their functions are more aligned: and.

Subject to evaluation and favorable recommendation of the Committee on

Rightsizing, abolish agencies when any of the following standards are

present: (i) the functions are already redundant or no longer relevant or

necessary. or could be better undertaken by another entity: (ii) ageney is no

longer achieving the objectives and purposes for which they were originally


created: (iii) continued operation is not cost-elTective since they do not

generate the desired level of outputs and outcomes vis-é-vis the resource
inputs: and or (iv) ageney has already become non-operational or dormant
and/or outlived its purpose.

©) To undertake other functional organizational actions. as necessary. consistent with

the policies. principles. framework and standards of this Act.

s. for

d) To develop and provide safety nets. including their implementation strategi

employees of agencies who may be affeeted by the government’s rightsizing
efforts.
©) To formulate an Organizational Development Program to. strengthen the

institutional capacity of the agencies and improve productivity of employees.

Section 6, Creation of a Committee on Rightsizing the Executive Branch. -
A Commitice on Rightsizing the Hxceutive Branch is hereby ereated t oversee the

implementation of the Rightsizing Program. in accordance with the provisions of this Act

The Committee shall be composed of the following officials or their duly authorized

representattives: Executive Seeretary as Chairperson, and the Seeretary of the Department of

Budget and Management (DBM) as Co-Chairperson, with the Secretary of the National

Economie and Development Authority, Chairperson of the Civil Service Commission (CSC),

s members. The duly authorized

and the Director-General of the Anti-Red ‘Tape Authority

representative shall be at least a third (3rd) ranking official of the ageney

The Committee shall be organized within fifteen (15) days trom the effectivity of

this Act



The Committee shall 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 transpareney and participatory governance. the Committee shall consult

coneemed. 3

the agenei redited public sector unions and other stakeholders relative to the

implementation of the Executive Branch’s Rightsizing Program

Seetion 7.

Powers and Functions of the Committee on Rightsizing the

ecutive Branch, - The Commitice shall have the followin
a) 10 develop the policies. framework, strategies and mechanisms to be adopted in

the implementation of the Executive Branch’s Rightsizing Prog

an
b) To conduct studies on the functions. programs. projects, operations. structure and

manpower complement of the different

¢) To develop and prepare the rightsized organizational structure of agencies
concemed and the corresponding executive issuances for approval by the President.

in accordance with the provisions of Section § of this Act

4) Lo develop and prepare the overall Change Management Program, including

the transition and cnsure the smooth

Communication Plan, to effectively mana

implementation of the Rightsizing Program:

e) To formulate the mechanisms to safeguard the weltare of employees who may be
affected by the rightsizing efforts, as well as the appropriate Organizational

Development Program. for approval of the President:



£) Fo monitor the implementation by the different agencies of their respective

must be

approved Rightsizing Plans. and report to the President any issue tha

addressed:

» Tou Ie services of experts‘consultants. through the DBM. to assist the

Committee and its Sub-Commitices in the performance of their functions: and

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

Seetion 8. Submi

sion of the Rightsized Orga id Proposed

Executive Issuances to the President, - The Committee on Rightsizing the Exccutive Branch

«ill submit to the President sized organizational structure of agencies concemed and

the corresponding executive issuances within hyo hundred fifty (250) days from the effectivity

of the IRR of this Act
Section 9. Submission of the Detailed Organizational Structure and Staffing to the
DBM. - Ageney Heads shall prepare and submit to the DBM the detailed organizational

structure and stafi

of their respective agencies within ninety (90) days afier the approval of

the proposed executive issuances by the President

on 10, Retirement Benefits and Separation Incentives for Perso:

be Affected by the Executive Branch’s Rightsizing Program, - The allccted personne! hited
on a permanent basis and with appointments attested by the CSC shall be entitled to retirement
benefits and separation incentives.

10.1 The affected personne! shall be given the option to avail themselves of any of the

following retirement benefits under existing laws. if qualified:

a) atuity provided under RA No. 1616 (An Act Further Amending

Seetion Twelve of Commonwealth Act Numbered One Hundred Lighty-Siy. as


10.2

a)

b)

Amended, By Prescribing Two Other Modes of Retirement and for Other

Purposes). ais amended: or
Retirement benefit under RA No. 660 (An Act to Amend Commonwealth Act

Nambered One Hundred and Fighty-Six Entitled “An Act to Create and Establish

a Government Service Insurance System. to Provide for its Administration, and to

Appropriate the Necessary Funds Uherefior.” and to Provide Retirement Insurance
and for Other Purposes): or

Retirement, separation or unemployment benelit provided under RA No. $291 (An

Act Amending Presidential Deeree No, 1146. as Amended. Expanding and
Increasing the Coverage and Benefits of the Government Service Insurance
System. Instituling Reforms Therein and for Other Purposes).

The retirement gratuity benefit of affected personnel who are qualified and have
opted to avail themselves of RA No. 1616 shall be paid by the Government Service
Insurance System (GSIS). The GSIS shall no longer pay the relund of retirement

premiums (both personnel and government shares) of the aflected personnel who

will opt to avail of RA No. 1616 benefits.

In addition to said retirement benefits. the affected personnel who would apt to

shall be entitled to the followin

applicable sepa

ation,

retire or be separated

incentives:

% of the

ual monthly basie salary for every year of government service. for

those who have rendered fess than [1 years of servies

ar off government service,

of the actual month!

ry for every y

computed starting from the IM year. for those who have rendered LL to less than 2

years of service:



)

dy

lary lor every sear of

ies overnment service, computed

the actual monthly b:
starting from the 1 year. for those who have rendered 21 to less than 31 years of
service: and

1% of the actual monthly basic salary for every year of government serviee.

year. for those who have rendered 31 years of s

computed starting from the |
and above,

The actual monthly basic salary shall refer to the salary of the affected personnel

as of the date of approval of his‘her ageney’s detailed organizational structure and

stalfing 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 Seetion 10.2 of this Act.

PROVIDED: That for the purpose of computing the total amount of separation
incentives that an al¥ected personnel would receive. only his‘her government

service up to age 59 and a fraction thereof would be counted. Government service

starting at the age 60 would no longer be subject to the separation incentives

| Without aflveting the original incentive factor determined

provided here’

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 unde!

RA No. 8291. the portability scheme under RA,

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 §

stems) may be applied. subject to existing policies and guidelines.



The alleeted personnel. if with permanent appointment attested by the CSC. who
vill not opt to retire from the service shuill be placed in a manpower pool to be

anized and administered by the CSC, The CSC. in coordination with other

government agencies and relevant private institutions. shall retool the subject
affected personnel and deploy them 10 ageneies which require their qualifications.

skills and competencies,

The number of personnel who will avait of the separation incentives under Section

10.2 of this Act shall in no case exceed the number of positions declared for
abolition.

jelines to carry out the provisions of this Section shall be

The specific

prescribed in the IRR of this Act
Section 11. Other Benefits of Retired/Separated Personnel. - The allected personnel
who retired/separated shall. in addition to the applicable benelits above. be entitled to the

followi

‘butions - all affected personnel who are members of the

a)
Pag-IBIG shall be entitled to the refund of their contributions (both personal and

sovernment), pursuant to existing rules and regulations of the Home Development

Mutual Pund: and
by) Commutation of Unused Vacation and Sick Leave Credits - all affected personnel
shall be entitled to the commutation of unused vacation and sick leave credits in

accordance with existing rules and regulations.

Section 12. Period of Avai ty 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 agencies concerned.


Section 13. Prohibition on Reemployment of Personnel Retired/Separated from the

Ser

¢. = Aflected personnel who retired/separated from the service as a result of the

implementation of the Rightsizing Program shall not be reemployed in any agency of the

National Government, including in GOCCs. for a period of five (3) years. except as teaching
or medical staf in educational institutions and hospitals. respectively

The reemployment of retired’separated personnel under the Program within the
prohibited period shall cause the refund of the separation incentives received by subject
personnel under Section 10.2 of this Act on a pro-rated basis

Section 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 cach from the Senate
and from the House of Representatives. which shall include representatives of the Senate
Committees on Civil Service. Government Reorganization and Professional Regulation. and

Finance. and the House Commitices on Government Reorganization and Appropriations

section 15, Conduct of an Impact Assessment, — The DBM shall commission the

conduct of an independent impact assessment on the ENecutive Branch's Rightsizing Prog

three (3) years trom its completion to. among others. determine the effects of. and gains from.

the implementation of the Program,

Section 16. Report to Congress. - The President shall submit a report to Congress on

the results of the Program atter the completion of its implementation.



‘en to the President under this Act. as

tion 17. Sunset Provision. - ‘The authority gi

the Executive Branch. shall end three

well as the exisience of the Commitice on Rightsizi

(3) years after the efeetivity of this Act

Ser the

ions. - The Committee on Rightsizin;

ion 18. Implementing Rules and Regul:

Executive Braneh shall formulate the ne

ssary IRR within thirty (30) days from the
organization of the Committee, Such rules and regulations shall take effcet fifteen (15) days

afir its publication in a newspaper of general eireulation

Section 19. Provisions Applicable to Other Branches of Government,

utional Commissions, Commission on Human Rights, Office of the Ombudsman,

‘Cons

principles. policies. standards. and guidelines. as well as the

and the LGUs, - The

vernin
conditions and limitations provided in this Act. shall be followed in the implementation of the

Rivhtsizing Program by other branches of government. Constitutional Commissions,

Commission on [luman Rights. Oflice of the Ombudsman. and the LGL

The heads of said offices shall issue their respective IRR and furnish a copy thereol to
the Senate Commitices on Civil Service, Government Reorganization and Professional

Regulation, and Finance. the House Commitices on Government Reorganization and

Appropriations. and the DBM

for the initial

Section 20. Funding Requirements, - The amount necessary

implementation of this Act shall be sourced against any applicable appropriation items under
the current General Appropriations Act. Subsequent amount needed t continue the

implementation of the National Government's Rightsizing Program shall be included in the

succeeding appropriations.

In the event that the Legislature. the Judiciary. Constitutional Commissions, Commission

on Human Rights. and the Office of the Ombudsman rightsize their respective offices in


accordance with the provisions of this Act, funds necessary for the purpose shall likewise be

sourced from any applicable appropriations under the GAA.
For GOCCs not covered by RA No. 10149. the amount needed for the implementation

of their Rightsizing Program shall be outsourced from their respective corporate funds. In ease:

of funding deficieney. the National Government may provide assistance in the payment of

efforts of these

hisizi

separation incentives of personnel who may be affected by the rig

GOCCs, provided that their salaries and other compensation are covered by RA No. 6758
(Compensation and Position Classification Act of 1989), as amended.
In case the LGUs pursue rightsizing efforts consistent with the provisions of this et and

a

RA No. 7160, the amount needed for the purpose shall be drawn trom their respective to

2overnment funds.

Section 21, Separability Clause. - I any provision of this Act is declared
unconstitutional or invalid, the other provisions not otherwise affected shall remain in full foree
and effet.

Section 22. Repealing Clause, - All laws. decrees. executive orders, rules and

vkitions. and other issuances or parts thereof which are inconsistent with this Act are het

repealed. amended or modilied accordingly

See n 15) days after its publication

ion 23. Effeetivity. = This Act shall take effect filte

in at least wo (2) newspapers

of general circulation,

Approved.