Republic of the Philippines UN
HOUSE OF REPRESENTATIVES

Quezon City

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© one, 30 SP Os

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO., 3871

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 to its
people

However, for the past decades, the government bureaucracy has been facing the
problem of a huge manpower. There is a need to remove the excess fat in the government
bureaucracy and streamline its operations.

The proposed act rightsizing the National Government to improve public service
delivery, which seeks to address this concern, also coincides with President Rodrigo
Roa-Duterte's mandate to all Department Secretaries and Heads of various agencies to
streamline the operation of their respective agencies

This bill will abolish, deactivate, group, integrate, merge, consolidate and/or split
various department and agencies. It will also create, establish or regulate offices and
transfer offices functions and projects and formulate and provide safety nets in the
implementation

Likewise, the measure will create a Committee on Rightsizing the National
Government to oversee the implementation of the proposed act. A technical working group
composed of experts on government operations, organization development, and human
resource management will also be created

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

In view of the foregoing, the passage of this bill is earnestly requested.

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 88'71.

Introduced by REPRESENTATIVE JOEL MAYO Z, ALMARIO

AN ACT RIGHTSIZING THE NATIONAL GOVERNMENT TO
IMPROVE PUBLIC SERVICE DELIVERY

Section 1, Short Title. - This Act shall be known as “Rightsizing the National
Government Act of 2016.”

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
governance, and minimize, if not eliminate, redundancies, overlaps and duplications in its
operations and simplify its systems and processes.

Section 3. Coverage. - This Act shall cover all national government agencies,
including departments, bureaus, offices, commissions, boards, councils, and all other entities
attached to or under their administrative supervision.

‘The Legislature, the Judiciary, Constitutional Offices, State Universities and Colleges,
and Local Government Units (LGUs) may, within their respective authorized appropriations,
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 (RA) 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 implemes
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)

d)

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;

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 the attainment of the desired sectoral
and national goals and outcomes;

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;

Government rules shall be rationalized to reduce the regulatory burden on
citizens, businesses and other stakeholders; and

The organizational structure of agencies shall be rightsized and the appropriate
staffing mix shall be determined based on the skills and competencies required
to effectively and efficiently cary out the agency mandate and functions.

Section 5. Authority of the President of the Philippines to Rightsize the
Operations 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

ny
Government:
a)
b)

hisizing of the operations of the different departments/agencies of the National

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:

a1 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;

a.2 Create, establish or regularize offices; and

a3 Transfer offices, functions, programs and projects, and/or the
corresponding appropriations, equipment, properties, records, personnel,
and transactions, from one department/agency to another.

To formulate and provide safety nets, including their implementation
strategies, for employees of departments/agencies who may be affected by the
government's rightsizing efforts,



Section 6. Creation of a Committee on Rightsizing the National
Government. - A Committee on Rightsizing the National Government it hereby created to
oversee the implementation of the National Government’s Rightsizing Program, in
accordance with the provisions of this Act,

The Committee shall be composed of the Executive Secretary as Chairman, and the
treety 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 Presidentiai Management Staff, as members,

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

The Committee shall also 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 spitit of transparency and participatory governance, the Committee shall
Consult the departments/agencies concerned and accredited public sector unions relative to
the implementation of the National Government's Rightsizing Program,

Section 7. Powers and Funetions of the Committee on Rightsizing the
National Government. - 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 National Government's Rightsizing Program;

») To conduct studies on the functions, programs, projects, operations, structure
‘nd manpower complement of the different departments/agencies,

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

®) To monitor the implementation by the different depar tments/agencies of their
thet ca pibbroved 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 detecnin
ihe effets of, aud gains ftom, the implementation of the Prosar, mitigate
any adverse effects, and address areas which still require improvements: and

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

iou 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
departments/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/A gency Heads shall prepare and submit to the DBM the
detailed organizational structure and staffing of their respective departments/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, temporary, casual or contractual basis and with
appointments attested by the CSC, shall be entitled to retirement benefits and separation
incentives,

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

4) Retirement gratuity provided under RA No, 1616 (An Act Further
Amending Section Twelve of Commonwealth Act Numbered One
Hundred Bighty-Six, as Amended, By Prescribing Two Other Modes of
Retirement and for Other Purposes), as amended; or

b) 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 RA 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
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 refund of retirement premiums (both personnel and government shares) of
the affected personnel who will opt to avail of RA No. 1616 benefits

10.2 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:

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 L* year, for those who have rendered
11 to less than 21 years of service;

c) 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


a) 1% 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 Progeam in
their respective departments/agencies,

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 10,2 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
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 Systems) may be applied, subject to existing
policies and guidelines.

The affected personnel, if with permanent appointment attested by the CSC, who will
Aol opt t0 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
thent 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,

"he 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:

ay 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

6) 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 Availability of the Retirement Benefits and Separation
Ancentives. - 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,

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, except as 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 RA No. 6713
(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 amount 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 IRR within thirty (30) days from the
organization of the Committee. Such rules and regulations shall take effect fifteen (15) days
after its publication in a newspaper of general circulation.

Section 17. Scparability 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 Act are
hereby repealed, amended or modified accordingly.

Section 19, Effectivity. - This Act shall take effect take effect fifteen (15) days after
its publication in at least two (2) newspapers of general circulation.