* RECEIVED
© ogre AUG 01 P, Fi
ME:

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO, _3354

Introduced by REPRESENTATIVE JOEL MAYO Z. ALMARIO

EXPLANATORY NOTE

The State is mandated by the Philippine Constitution to empower its institutions
to promote and maintain an effective and efficient system to deliver basic services.
However, for the past decades, the government bureaucracy has been facing the problem
of an excessive yet inefficient manpower. There is a need to remove the excess fat in the
government bureaucracy and streamline its operations. This bill seeks to address this
issue by rightsizing the National Government in order to improve public service delivery.

This bill will abolish, deactivate, regroup, merge, consolidate and/or split various
departments and agencies, It will also establish or regulate offices and transfer functions
and projects. Likewise, the measure will create a Committee on Rightsizing the National
Government to oversee the implementation of the proposed act, as well as provide safety
nets in the transition and reorganization. A technical working group composed of ‘experts
‘on government operations, organization and development, and human resource
management will also be created.

Personnel who may be affected by the measure whether hired on a permanent,
temporary, casual or contractual basis will be given the option to avail themselves of the
benefits the under existing laws.

The undersigned representation filed a similar bill during the 17% Congress. This
bill is being refiled in response to President Rodrigo Roa-Duterte’s call during the State
of the Nation Address urging Congress to “review and pass the Government Rightsizing
Bill to reconfigure the existing Metro Manila- centric bureaucracy; streamline
government systems in order to deliver services without delay, and within a short
timeline.”

Support for this bill is earnestly sought.



wo eraneune

10
1
12
123
14
15
16

24 District, Davao Oriental

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House pin no.3394

Introduced by REPRESENTATIVE JOEL MAYO Z. ALMARIO

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 of 2019.”

SECTION 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 the governance, and minimize, if not eliminate,
redundancies, overlaps and duplications in its operations and simplify its systems and

processes.

SECTION 3. COVERAGE - This Actshall cover all national government agencies, including
departments, bureaus, offices, commissions, boards, council, and all other entities

attached to or under their administrative supervision.


woarvaunnrwne

10
1
12
13
14
15
16
7
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33

The Legislature, the Judiciary, Constitutional Offices, State Universities and
Colleges, and Local Government Units (LGUs) may, within their respective offices,
likewise rightsize their respective offices consistent with the principles and guidelines

contained in this Act.

The Governance Commission for Government-Owned or -Controlled Corporations
shall continue to exercise its authority under Republic Act (R.A.) No. 10149 to reorganize,
merge, streamline, abolish or privatize any government-owned or controlled corporation
(GOCC), in consultation with the department or agency to which the GOCC is attached.

SECTION 4. PRINCIPLES AND GUIDELINES - The National Government shall implement
a Rightsizing Program in accordance with the following principles and guidelines:

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

©) Government operations shall be simplified so that the departments/agencies
could focus on the performance of their core functions and implementation of
programs and projects that will lead to attainment of the desired sectoral and

national goals and outcomes;

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

formulation, planning and performance evaluation;

e) Government rules shall be rationalized to reduce the regulatory burden on

citizens, businesses and other stakeholders; and


warvraurwne

10

12
123
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33

f) The organizational structure of agencies shall be right sided 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.

SECTION 5. AUTHORITY OF THE PRESIDENT OF THE PHILIPPINES TO RIGHTSIZE
THE OPERATION OF THE NATIONAL GOVERNMENT - Pursuant to the policies,
principles and guidelines stipulated in this Act, the President is hereby granted the

following authority in the rightsizing of the operations of the different

departments/agencies of the National Government:

a) To undertake the following organizational actions in order to eliminate

functions, programs and projects which are already redundant, no

longer necessary, or those duplicating or overlapping between and

among the units within the department or with other

departments /agencies of the National Government:

al

a2

a3

Abolish, deactivate, group, integrate, merge, consolidate or
split national government agencies, including departments,
bureaus, offices, commissions, boards, councils, and all other
entities attached to or under their administrative

supervision;

Create, establish or regularize offices; and

Transfer offices, functions, programs and projects, and/or
the corresponding appropriations, equipment, properties,
records, personnel, and transactions, from one

department/agency to another.

b) To formulate and provide safety nets, including their implementation

strategies, for employees of the departments/agencies who may be

affected by the government's rightsizing efforts.


war nurwne

10
1
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32

SECTION 6. CREATION OF A COMMITTEE OF RIGHTSIZING THE NATIONAL
GOVERNMENT - A Committee on Right
to oversee the implementation of the National Government's Rightsizing Program, in

ing the National Governmentis hereby created

accordance with the provisions of this Act.

The Committee shall be composed of the Executives Secretary as Chairman, and
the Secretary of Budget and Management as Co-Chairman, with the Director-General of
the National Economic and Development Authority, 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 organize a Technical Working Group composed of experts on
government operations, organizational development, and human resource management

to assist in the performance of its functions.

In the spirit of transparency and participatory governance, the Committee shall
consult the department/agencies concerned and accredited public sector unions relative

to the implementation of the National Government's Rightsizing Program.

SECTION 7. POWERS AND FUNCTIONS OF THE COMMITTEE ON RIGHTSIZING THE
NATIONAL GOVERNMENT - The Committee shall have the following powers and

functions:

a) To develop the policies, framework, strategies and mechanisms to be
adopted in the implementation of the National Government's

Rightsizing Program;

b) To conduct studies on the functions, programs, projects, operations,
structure and manpower complement of the different

departments/agencies;


wor aunrwne

10
1
12
123
14
15
16
7)
18
19
20
ah
22
23
24
25
26
27
28
29
30
31
32

©) To develop and prepare the rightsized organizational structure of
departments/agencies concerned and the corresponding executive

issuances for approval by the President;

4) To monitor the implementation by the different departments/agencies
of their respective approved Rightsizing Plans, and report to the

President any issue that must be addressed;

) To commission the conduct of an independent impact assessment on
the National Government's Rightsizing Program after its completion, to
determine the effects of, and gains from, the implementation of the
program, mitigate any adverse effects, and address areas which still

require improvements; and

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

SECTION 8. SUBMISSION OF THE RIGHTSIZED ORGANIZATIONAL STRUCTURE AND
PROPOSED EXECUTIVE ISSUANCES TO THE PRESIDENT - The Committee on
Rightsizing the National Government shall submit to the President the rightsized
organizational structure of department/agencies concerned and the corresponding

executive issuances within one (1) year from the effectivity of the IRR of this Act.

SECTION 9. SUBMISSION OF THE DETAILED ORGANIZATIONAL STRUCTURE AND
STAFFING TO THE DBM - Department Secretaries/Agency Heads shall prepare and
submit to the DBM the detailed organizational structure and staffing of their respective
department/agencies within ninety (90) days after the approval of the proposed

executive issuances by the President.

SECTION 10. RETIREMENT BENEFITS AND SEPARATION INCENTIVES FOR
PERSONNEL WHO MAY BE AFFECTED BY THE NATIONAL GOVERNMENT'S
RIGHTSIZING PROGRAM - The affected personnel, whether hired on a permanent,


1 _ temporary, casual or contractual basis and with appointments attested by the CSC, shall
2 be entitled to retirement benefits and separation incentives.
3
4 10.1 The affected personnel shall be given the option to avail themselves of any of
5 the following retirement benefits under existing laws, if qualified:
6
7 a) Retirement gratuity provided under R.A. No. 1616 (An Act Further
8 Amending Section Twelve of Commonwealth Act Numbered One
9 Hundred Eighty-Six, as Amended, By Prescribing Two Other Modes of
10 Retirement and for Other Purposes), as amended: or
11
12 b) Retirement benefit under R.A. No. 660 (An Act to Amend Commonwealth
2B ‘Act Numbered One Hundred and Eighty-Six Entitled “An Act to Create and
14 Establish a Government Service Insurance System, to Provide for its
15 Administration, and to Appropriate the Necessary Funds Therefor,” and
16 to Provide Retirement Insurance and for Other Purposes); or
7
18 c) Retirement, separation or unemployment benefit provided under R.A.
19 No.8291 (An Act Amending Presidential Decree No. 1146, as Amended,
20 Expanding and Increasing the Coverage and Benefits of the Government
21 Service Insurance System, Instituting Reforms Therein and for Other
2 Purposes).
23
24 The retirement gratuity benefits of affected personnel who are qualified
25 and have opted to avail themselves of RA No. 1616 shall be paid by the
26 Government Service Insurance System (GSIS). The GSIS shall no longer pay
27 the refund of retirement premiums (both personnel and government shares)
28 of the affected personnel who will opt to avail of RA No. 1616 benefits.
29
30 10.2 Inaddition to said retirement benefits, the affected personnel who would opt

31 to retire or be separated shall be entitled to the following applicable separation
32 incentives:
33


worvanunewne

10

12
13
14
15
16
7
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33

a) % of the actual monthly basic salary for every year of government

service, for those who have rendered less than 11 years of service;

b) % of the actual monthly basic salary for every year of government
service, computed starting from the 1* year, for those who have rendered

11 to less than 21 years of service;

©) the actual monthly basic salary for every year of government service,
computed starting from the 1* year, for those who have rendered 21 to

less than 31 years of service; and

d) 11/4 of the actual monthly basic salary for every year of government
service, computed starting from the 1* year, for those who have rendered

31 years of service and above.

The actual monthly basic salary shall refer to the salary of the affected
personnel within the authorized period of implementation of the Program in

their respective departments /agencies.

A minimum of five (5) years of government service is required in order for
affected personnel to be entitled to avail of the Program's separation

incentives under Section 10.2 of this Act.

Provided, That for the purpose of computing the total amount of separation
incentives that an affected 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 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 RA No. 8291, the portability scheme under


warvraunrwne

10
1
12
13
14
15
16
17
18
19
20
2
22
23
24
25
26
27
28
29
30
31
32

RA No. 7699 (An Act Instituting Limited Portability Scheme in the Social
Security Insurance Systems by Totalizing the Worker's 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, 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 shall retool the subject affected 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

10.2 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.

SECTION 11. OTHER BENEFITS OF RETIRED/SEPARATED PERSONNEL - The affected
personnel who retired/separated shall, in addition to the applicable benefits above, be

entitled to the following:

a) Refund of PAG-IBIG Contributions - all affected personnel who are members
of the PAG-IBIG shall be entitled to the refund of their contributions (both
personal and government), pursuant to existing rules and regulations of the

Home Development Mutual Fund; and

b) Commutation of Unused Vacation Leave 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 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


waraurwne

10
1
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32

of the detailed rightsized organizational structure and staffing of departments/ agencies

concerned.

SECTION 13. PROHIBITION ON REHIRING OF PERSONNEL RETIRED/ SEPARATED
FROM THE SERVICE - Affected personnel who retired/ separated from the service as a
result of the implementation of the National Government's Rightsizing Program shall not
be appointed nor hired as casuals or contractual in any agency of the National
Government, including in GOCCs, for a period of five (5) years, exceptas teaching staff in
a state university or college.

The provision of consultancy services by government personnel who retired or
were separated as a result of the rightsizing efforts shall be governed by Section 7 of R.A.
No. 6713 otherwise known as the Code of Conduct and Ethical Standards for Public
Officials and Employees.

SECTION 14. REPORT TO CONGRESS - The President shall submit a report to Congress

on the results of the Program after the completion of its implementation.

SECTION 15. 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 amounts needed to continue
the implementation of the National Government's Rightsizing Program in the National

Government shall be included in the succeeding appropriations.

SECTION 16. IMPLEMENTING RULES AND REGULATIONS - The Committee on
Rightsizing the National Government shall formulate the necessary Implementing Rules

and Regulations within thirty (30) days from the organization of the Committee.

SECTION 17. 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.


SECTION 18. REPEALING CLAUSE - All laws, decrees, executive orders, rules and
regulations, and other issuances or parts thereof which are inconsistent with this Actare
hereby repealed, amended or modified accordingly.

SECTION 19. EFFECTIVITY - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or a newspaper of general circulation, whichever comes

first.

Approved.