REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

I$ “RECEIVED @
SEVENTEENTH CONGRESS
First Regular Session

DATE: Se
House Bill No. _5415_

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

EXPLANATORY NOTE

Presidential Decree 807 or the Civil Service Decree of the Philippines created three levels in our
civil service system. These are: the first level, which includes the clerical, trades, crafts and
custodial service positions for non-professional or sub-professional work requiring less than four
years of collegiate studies; the second level, which includes the professional, technical and
Scientific positions requiring at least four years of college work up to Division Chief level; and
the third level, which mainly covers positions in the career executive service, the entry to which
is currently prescribed by the Career Executive Service Board or CESB.

‘Those who belong in the third level of the civil service system occupy positions in the executive
and managerial services. They enjoy security of tenure, mobility, and classification based on
ranks. These positions have significant roles in the bureaucracy as they have a direct hand both
in the formulation and implementation of government policies thus it is important that we enact a
system that would set up career development and professionalize the career executive service.

This bill seeks to systematize appointments and promotions in the government by providing for a
systematized career rank progression in the bureaucracy. It also seeks to create a Career
Executive Service Board (CESB) that will issue rules, standards and procedures in the
recruitment, selection, and assignment to positions, classification, compensation, mobility,
performance management, tour of duty, rewards and incentives and training of the Career
Executive Service Officers (CESOs).

This bill seeks to promote the concept of merit and fitness over that of trust and confidence. It is
hoped that thru the passage of this bill, the practice of appointing people to career executive
positions in the government even if that person is not eligible will be averted.

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



REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bil No. 5415

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

N ACT
STRENGTHENING THE CAREER EXECUTIVE SERVICE

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

ARTICLE 1
GENERAL PROVISIONS

SECTION 1. Short Title. - This Act shall be known as the "Career Executive Service
Act of 2017."

SEC. 2. Declaration of Policy. — It is the policy of the State, under Article IX, B, Section
3 of the 1987 Philippine Constitution, to establish a career service and to provide the public
sector with a well-selected and development-oriented corps of public managers who possess the
necessary expertise and responsive leadership qualities that will serve as a stabilizing force, an
instrument for change, a vanguard of professionalism and careerism the civil service, and a
critical link between the government and the people. Towards this end, the State hereby calls for
an effective, efficient and responsible administration of the executive/managerial class within the
third level of the career service that will maintain continuity and stability in the bureaucracy.

SEC. 3. Coverage. - This Act shall cover the Career Executive Service which consists of
the executive/managerial class of the third level of the career service in the Executive Branch of
the government all of whom shall be appointed by the President and those occupying positions
above division chief level but are not appointed by the President.

SEC. 4. Definitions of Terms. - As used in this Act, the following terms shall be
construed as follows:

a) “Career Executive Service (CES)” refers to the corps of well-selected and development-
oriented career executive who provide competent and faithful service.

b) “Career Executive Service Board (CESB)” refers to the policymaking body responsible
for the development, maintenance and administration of the System under the supervision
of the Civil Service Commission as provided herein.

©) “Career Executive Service Eligible (CESE)” refers to a person who passed the qualifying
examination process set by the CESB but has not yet been appointed to a position in the
CES.

d) “Career Executive Service Officer (CESO)” refers to a Career Executive Service ible

who is conferred a CES rank and appointed to a position covered by the CES


©) “Career Executive System (System)” refers to the system designed to professionalize and
promote career development among the executive and managerial personnel of the third
level in the career service.

f) “Mobility” refers to the movement of a CESO from one position to another without
reduction in rank or salary,

g) “Rank” refers to the index of classification of CESO to which a CESE may be appointed
by the President in accordance with the requirements prescribed by the Board.

h) “Third level” refers to the highest level in the career service of the Civil Service System
includes positions in the executive and managerial class covering all positions higher than
Chief of Division based on the position classification system of the Department of
Budget and Management and the Civil Service Commission

ARTICLE II
CAREER EXECUTIVE SYSTEM

SEC. 5. The Career Executive System. — The System shall cover all executive and
managerial positions in the third level of the career service in the Executive Branch, as defined in
Section 4 hereof. Entry and advancement in the System shall be governed by the principles of
merit and fitness, security of tenure and mobility.

SEC. 6. Career Executive Service Board (CESB). - A Career Executive Service Board,
hereinafter referred to as the Board, under the supervision of the Civil Service Commission is
hereby created. It shall be composed of the Chairperson of the Commission who shall serve as
the Board's ex-officio Chairperson and four (4) ex-officio members, namely: the Secretary of the
Department of Budget and Management (DBM) or his/her permanent representative holding a
position not lower than an Undersecretary; the President of the Development Academy of the
Philippines (DAP); the Dean of the National College of Public Administration and Governance
(NCPAG) of the University of the Philippines; and the representative of a duly accredited
national federation or union of CESOs. The board shall also include three (3) members to be
appointed by the President for a term of three (3) years, namely: a representative of a nationwide
association of personnel and/or human resource practitioners in the private sector; a
representative of the Philippine Association of Professional Regulatory Board Members
(PAPRBM) and a representative of the Office of the President.

SEC. 7. Powers and Functions of the Board. - The Board shall be the policy-making
body for the System. It shall promulgate rules, standards and procedures in the recruitment,
selection, assignment to positions, attestation of appointment to CES positions, conferment of
ranks, classification, compensation, mobility, performance management, tour of duty, rewards
and incentives and training, and career development of CESOs and CESEs: Provided, That in the
exercise of its power of supervision, the Commission may motu proprio review, revise or reverse
any policy of the Board within a period of thirty (30) days from receipt of written notice thereof:
Provided, further, That if the Commission does not act within the said period, the subject policy
of the Board shall be deemed as presumptively approved by the Commission.

SEC. 8. Office of the Career Executive Service (OCES). - The Office of the Career
Executive Service (OCES) shall serve as the Board's secretariat with its own administrative and
financial components. It shall be responsible for the implementation of the policies, rules,
regulations, decisions, directives and instructions pertaining to the System. It shall be headed by
an Executive Director, who shall be appointed by the President, assisted by two (2) Deputy
Executive Directors, both of whom shall be appointed by the President


ARTICLE IL
POLICIES AND STANDARDS
IN THE CAREER EXECUTIVE SYSTEM

SEC. 9. Membership in the Career Executive System. - A person who meets the
academic, leadership, experience and other requirements and passes the required examination
prescribed by the Board shall be included in the register of CESEs and, upon appointment to an
appropriate rank in the CES, shall become an active member of the CES. A CESE who is
appointed to a position in the CES shall be recommended for original appointment to CESO rank
by the Board. This process completes his/her membership in the CES. Recruitment into the
System shall be conducted government-wide with provisions to allow qualified or outstanding
persons from the nongovernment or private sector to enter the CES.

SEC. 10. Security of Tenure. - A CES incumbent shall enjoy security of tenure in the
CES based on eligibility, and shall not be suspended nor dismissed except for cause and with due
process of law.

SEC. 11. Composition. - A CESO shall be compensated according to rank and
performance. In case a CESO occupies a position whose salary grade is higher than that of the
rank the CESO is holding, the CESO shall receive the difference between the salary grade of the
position and the rank. The Board, in coordination with the Commission and the DBM, shall
develop and periodically review a compensation plan for CESOs. The employing agency shall
provide the funds to pay the salary, fringe benefits and allowances of a CESO.

SEC. 12. Rank System in the Career Executive System. - A CESO shall be appointed in
accordance with a rank system which shall be established and determined by the Board. Rank
classification shall be based on proven competence and qualifications such as appropriate
academic and professional background, broad levels of responsibility and other relevant
considerations as may be prescribed by the Board.

SEC. 13. Promotion in Rank. - The Board shall provide for the criteria which shall be
the basis for promotion in rank. The criteria to be established shall include, but shall not be
limited to, performance, qualifications and proven competence. The Board shall recommend to
the President qualified CESOs who meet the criteria prescribed by the Board for promotion in
rank,

SEC. 14. Mobility in the Career Executive System. - A CESO may be assigned to any
position in the System without diminution in rank and salary. The tour of duty of each CESO
shall be for a period of three (3) years. During this period, the CESO shall not be transferred to
another office or position without consent. In filling a vacancy, the head of agency shall give
preference and priority to those who have been appointed to rank or conferred CES eligibility
The Board shall provide information on vacancies, an updated list of available qualified persons
who may be assigned, and such other mechanisms to assist the head of agency in the process of
selection.

SEC. 15. Appointment to Positions in the Career Executive System. - A CESO and
CESE shall be given priority in appointments to vacant positions in the System. In exceptional
cases, a non-CESO and non-CESE may be appointed to a position in the System on a temporary
status but may be replaced once a CESO or CESE becomes available. Career undersecretaries,
assistant secretaries and other officials of similar rank in the System shall preferably come from
the roster of CESOs and CESEs. The appointing authority shall choose from a list of at least
three (3) eligible who are qualified, available and willing to be appointed to the vacant position
The number of career undersecretaries, assistant secretaries and other officials of similar rank
appointed to positions in the government shall conform to the number set by law. The
Commission shall establish a mechanism to ensure that assignments to positions in the System
conform to the standards prescribed under this Act



55

SEC. 16. Discipline. - Investigation and adjudication of administrative complaints
against occupants of positions in the CES appointed by the President shall be vested with the
President. In the case of non-presidential appointees, the same shall be vested concurrently with
the head of the agency and the Civil Service Commission.

SEC. 17. Training and Career Development. - The Board shall establish a continuing
program of training and career development of CESOs and CESEs.

SEC. 18. Performance Management. - The Board shall develop a system for periodic
evaluation of the performance of occupants of positions in the CES, taking into account their
accomplishments and managerial capability. This periodic evaluation system shall be the basis
for the grant of incentives and awards, as well as for sanctions for poor performance.

ARTICLE IV
MISCELLANEOUS PROVISIONS

SEC. 19. Review and Evaluation of the CESB System. - After the first three (3) years of
implementation of this Act and every three (3) years thereafter, the Civil Service Commission
shall convene an evaluation body that will conduct the evaluation of the Board and the OCES in
order to assess the effectiveness of the CESB in managing the System. The body shall be
composed of no less than three (3) heads of public and private institutions whose work is related
to executive development within the framework of developing countries like the Philippines. At
least two (2) of them should come from nongovernment organizations (NGOs)

The evaluation body shall conduct public consultations and indicate its evaluation reports
and recommendations which portions have been the result of the said public consultations.

The evaluation body shall submit its report and recommendations to the Board, OCES,
CSC and the appropriate committees in Congress.

SEC. 20. Appropriations. - The amount necessary for the initial implementation of this
Act shall be charged against the current year's appropriations of the CESB. Thereafter, such
sums as may be necessary for the continued implementation of this Act shall be included in the
annual General Appropriations Act

SEC. 21. Transitory Provisions. - The incumbent Chairman of the Board of the current
Career Executive Service Board, as well as the other incumbent Board members, shall continue
to exercise their duties and functions until the new Board shall have been created pursuant to this
Act. The Career Executive System Board (New Board) created under this Act shall then succeed
and take over the functions of the Career Executive Service Board (Old Board) and the
composition and members of the New Board, as enumerated under Section 6 of this Act, shall
assume their respective posts: Provided, That:

a) All rights pertaining to the CESOs and CESEs which shall have accrued prior to the
effectivity of this Act shall be respected;

b) The personnel, assets, funds, grants and records of the current CESB secretariat are
hereby transferred to the OCES; and

©) Incumbent officials and employees of the current CESB secretariat shall continue to
exercise their respective functions, duties and responsibilities with the corresponding
benefits and privileges and shall be deemed absorbed by the OCES.

SEC. 22. Implementing Rules and Regulations. - The Board and the Commission shall
promulgate jointly the implementing rules and regulations (IRR) as may be necessary to
implement the intent and purposes of this Act. Said IRR shall be published in the Official
Gazette or in two (2) newspapers of general circulation.


SEC. 23. Repealing Clause. - Article IV, Part III of the Integrated Reorganization Plan
as approved under Presidential Decree No.1, as amended, is hereby repealed. All provisions of
Executive Order No. 292, or the Revised Administrative Code of 1987 and Executive Order No,
891, series of 2010 that are inconsistent with this Act are hereby repealed. All other laws, rules
and regulations or parts thereof that are inconsistent with the provisions of this Act are hereby
repealed or modified accordingly

SEC. 24. Separability Clause. - If any part, section or provision of this Act is held
invalid or unconstitutional, no other part, section or provision shall he affected by the invalidity
or unconstitutionality thereof.

SEC. 25. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,