Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Seventeenth Congress
Regular Session

HOUSE BILL NO. _78S6

Introduced by Rep. Bernadette Herrera-Dy

AN ACT TRANSFERRING SELECTED NATIONAL GOVERNMENT AGENCIES
AND GOVERNMENT OWNED AND CONTROLLED CORPORATIONS TO NEW
CLARK CITY, PAMPANGA

Explanatory Note

A study conducted by the Japan International Cooperation Agency in 2014 showed
that traffic congestion in National Capital Region resulted in losses of at least 2.4
billion pesos a day and could reach six billion pesos if not solved. In 2015, the
Philippines ranked fifth among countries with the worst traffic conditions in a crowd-
sourcing survey. While in 2016, the American Chamber of Commerce even claimed
that National Capital Region (NCR) may be inhabitable in the next few years due to
its traffic mess. This goes to show that the traffic problem in the Philippines should
be taken seriously and the government must take proactive measures in
decongesting National Capital Region as it is negatively affecting the country’s
productivity and sustainability.

Under President Duterte's Build-Build-Build Program in relation to the Bases
Conversion and Development Authority (BCDA) in 2016, New Clark City was
introduced. It is a carefully master planned community that is strategically located in
Central Luzon and said to be the next big metropolis.

The New Clark City is also projected to add USD 30.94 Billion to the country’s gross
domestic product upon the city’s completion. This 9,450-hectare development has
even set aside 1,514 hectares particularly for a district of government offices and its
attached agencies. Originally for the government's satellite offices, however, it is only
reasonable to utilize the land in order to solve traffic woes of a jammed National
Capital Region. Initiatives to transfer selected government agencies to another
location other than the NCR has been a discussion for decades. With today's
worsening traffic conditions, the government should step up in finding ways to make
our cities livable for our citizens. As a duty to serve the people, the government
should lead in using its resources for traffic decongestion and regional development.

As of August 2017, the total number of government personnel in NCR is 522,340.
This is based on Inventory of Govemment Human Resources by the Civil Service
Commission. 334,825 are career service professionals, 58,311 are non-career, and
129,204 are with Job Orders or Contracts of Service.With these numbers, the


transfer of government offices will give due consideration to its personnel and the
agencies’ official mandate. As the government ensures the benefit of its people, the
government will also give careful attention to the staff that committed their service for
the people.

It is the government responsibility to provide efficient government services and to
make efforts towards development. The transfer of selected national government
agencies and government owned and controlled corporations are seen to contribute
to the country’s economy and overall competence. With due consideration of all its
‘stakeholders, this measure is duly recommended.

In view of the foregoing, the immediate passage of this measure is sought.

BERNADETTE “BH” HERERRA-DY


Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

Seventeenth Congress
Regular Session

HOUSE BILL NO. _7896

Introduced by Rep. Bernadette Herrera-Dy

AN ACT TRANSFERRING SELECTED NATIONAL GOVERNMENT AGENCIES
AND GOVERNMENT OWNED AND CONTROLLED CORPORATIONS TO NEW
CLARK CITY, PAMPANGA

SECTION 1. Short Title: This Act shall be known as the “New Clark City
Government District Act.”

SECTION 2. Declaration of Policy: \t is hereby declared the policy of the state to
ensure efficient government services, through steady development of its
infrastructure and improvement of service delivery. Thus, it is imperative for the
government to make necessary measures to provide smooth operation of
government processes and to ease congestion in its capital. This will be done
through the transfer of selected national government agencies and government
owned and controlled corporations that can still deliver its mandate regardless of its
location, and their regional and local offices can function independently in National
Capital Region.

SECTION 3. Transfer of National Government Agencies (NGA) and Government
Owned and Controlled Corporations (GOCCs): Selected Central Offices of
National Government Agencies (NGAs) and Government Owned and Controlled
Corporations (GOCCs) that are located in National Capital Region (NCR) shalll take
measures to transfer to New Clark City.

The non-critical functions of these NGAs and GOCCs, such as, but not limited to,
personnel, transportation, accounting, payroll, human resources, among others, shall
be prioritized in the transfer. The NGAs and GOCCs shall ensure that only services
catering to front-line public needs shall remain within the NCR in various satellite
Offices.

These agencies and corporations should be fully functioning in New Clark City within
‘one (1) year after the approval of the Implementing Rules and Regulations, unless
stated otherwise, andas approved by the Commission under Section 8 of this Act.

SECTION 4. Selected National Government Agencies (NGA) and Government
Owned and Controlled Corporations (GOCCs). In the interest of decongesting the
capital for improved government service delivery, the following are relevant agencies
and corporations that are located in National Capital Regionare subject for transfer to
the New Clark Cityand by approval of the Commission under Section 8 of this Act. It
is the responsibility of these Heads of Departments and Agencies to assist the


Commission in identifying which services shall transfer to the New Clark City, and
which frontline services shall remain within the National Capital Region.

A. National Government Agencies

. CIVIL SERVICE COMMISSION

. COMMISSION ON APPOINTMENTS

. COMMISSION ON AUDIT

COMMISSION ON ELECTIONS

COMMISSION ON HUMAN RIGHTS OF THE PHILIPPINES

DEPARTMENT OF AGRARIAN REFORM

DEPARTMENT OF AGRICULTURE

DEPARTMENT OF BUDGET AND MANAGEMENT

. DEPARTMENT OF EDUCATION

10. DEPARTMENT OF ENERGY

11. DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

12. DEPARTMENT OF FINANCE

13. DEPARTMENT OF HEALTH

14.DEPARTMENT OF INFORMATION AND COMMUNICATION
TECHNOLOGY

15. DEPARTMENT OF JUSTICE

16. DEPARTMENT OF LABOR AND EMPLOYMENT

17. DEPARTMENT OF NATIONAL DEFENSE

18. DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS

19. DEPARTMENT OF SCIENCE AND TECHNOLOGY

20, DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT

21, DEPARTMENT OF TRADE AND INDUSTRY

22.NATIONAL ECONOMIC AND DEVELOPMENT AUTHORITY

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B. Government Owned and Controlled Corporations
BANGKO SENTRAL NG PILIPINAS

. CREDIT INFORMATION CORPORATION

. HOME GUARANTY CORPORATION

HOME DEVELOPMENT MUTUAL FUND
DEVELOPMENT ACADEMY OF THE PHILIPPINES

. NATIONAL ELECTRIFICATION ADMINISTRATION
NATIONAL TRANSMISSION CORPORATION

NATIONAL POWER CORPORATION

NATIONAL HOME MORTGAGE FINANCE CORPORATION
10. NATIONAL TOBACCO ADMINISTRATION

11, NATIONAL IRRIGATION ADMINISTRATION

12. NATIONAL HOUSING AUTHORITY

13. OVERSEAS WORKERS WELFARE ADMINISTRATION
14. PHILIPPINE NATIONAL OIL COMPANY

15, PHILIPPINE EXPORT-IMPORT CREDIT AGENCY

16. PHILIPPINE DEPOSIT INSURANCE CORPORATION

17. PHILIPPINE COCONUT AUTHORITY

18. PHILIPPINE CHARITY SWEEPSTAKES OFFICE

19. PHILIPPINE SUGAR CORPORATION

20. PHILIPPINE CENTER FOR ECONOMIC DEVELOPMENT
21. PEOPLE'S TELEVISION NETWORK, INCORPORATED
22, POWER SECTOR ASSETS AND LIABILITIES MANAGEMENT

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23. TOURISM PROMOTIONS BOARD

24. TOURISM INFRASTRUCTURE AND ENTERPRISE

25. SMALL BUSINESS GUARANTEE AND FINANCE CORPORATION
26. QUEDAN AND RURAL CREDIT GUARANTEE CORPORATION
27.SOCIAL SECURITY SYSTEM

SECTION 5. Employee Benefits upon Transfer. Government employees employed
before the agreed upon transition and transfer of their respective offices to New
Clark City are subject to the following:

a) Option to follow a four-day work week upon transition of office to New Clark
City, under the guidance of existing labor laws and standards.

b) Free transportation coasters/buses to New Clark City from a local pick-up
point in National Capital Region.

c) Low-cost and/or long-term payment options for housing of families of
government employees in New Clark City.

Previously acquired standard and specific-purpose allowances, agreements, and
benefits of government employees upon original employment will be upheld despite
transfer.

SECTION 6. Government Employee Options. The following are other options for
government employees that will not transfer to New Clark City:

a) Option to be transferred to attached agencies and offices of their respective
agencies, within National Capital Region

b) An option for a special voluntary severance package, other than that provided
in RA 6683

c) Exemption for certain GSIS pension requirements, amending Section 11 (1) of
PD 11460r the Government Service Insurance System, for the early
separation of government employees because of the transfer under this Act

SECTION 7. Incentives for Transferred GovernmentEmployees. Employees
transferred to New Clark City within the prescribed period are subjected to special
bonuses and incentives for compliance through its inclusion in the annual General
Appropriations Act.

SECTION 8. Establishment of a Transitory Commission. A Transitory
Commission, composed of representatives from the Civil Service Commission,
Bases Conversion Development Authority, Department of Budget and Management,
Department of Transportation, and National Housing Authority will be established
upon effectivity of this Act. The Transitory Commission will have the following
functions:

a) Serve as oversight committee for transferring and transitioning agencies and
corporations

b) Determine capabilities of selected agencies and corporations to transfer to
New Clark City and prescribe measures to continue or dismiss from transfer

¢) Develop and approve necessary transfer and transition requirements and
conditions of government agencies and corporations. These include possible
modes of transfer, safety measures, and labor standards.


SECTION 9. Fund Sources. The amounts necessary to be implemented under this
Act shall be funded as follows:

a) For national government agencies, they shall be charged against the 2019
General Appropriations Act. Thus, the needed amounts must be included in
the annual General Appropriations Act.

b) For Government Owned and Controlled Corporations, the amounts shall
‘come from their respective corporate funds in the corporate operation budgets
as approved by the DBM.

Section 10. Implementing Rules and Regulations. Within ninety (90) days from
the effectivity of this Act, the Commission, in consultation with appropriate
government agencies and other stakeholders, shall promulgate the necessary rules
and regulations to implement this Act.

Section 11. Separability Clause. \f, for any reason or reasons, any part of the
provision of this Act shall be held to be unconstitutional or invalid, other parts or
provisions hereof which are not affected thereby shall continue to be in full force and
effect.

Section 12. Repealing Clause. All |aws, decrees, orders, rules, and regulations, or
parts thereof, inconsistent with the provisions of this Act are hereby repealed,
amended, or modified accordingly.

Section 13. Effectivity Clause. This Act shall take effect after fifteen (15) days

following its publication in the Official Gazette and at least two (2) newspapers of
general circulation.

Approved,