Republic of the Philippines

House of Representatives
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

3096

House Bill No.

Introduced by Representative TEODORICO “NONONG” T. HARESCO, JR.

AN ACT
RIGHTSIZING THE NATIONAL GOVERNMENT TO IMPROVE
PUBLIC SERVICE DELIVERY

EXPLANATORY NOTE

Public service is a public trust. To delay or make complicated the delivery of services
-ded by the people is to deny them of opportunities that would better their lives as Filipino

ens.

The bureaucracy, as the so-called “fourth branch of government”, is the administrative
heart and soul of government. It has the capacity to make public service delivery accessible or
sible, depending on the effectiveness and efficiency of its ex
systems and processes.

inacy

Consistent with this, it is 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. Hence, it is imperative for the government to focus its
functions and resources on the essential role, scope, and level of governance, and minimize, if
not eliminate, redundancies, overlaps, and duplication in its operations and simplify its rules
and regulations, systems and processes.

jucracy: The Fourth Hranch of Government. In; Goveroment and Polities oF the United States. Comparative
ve. London

"Howes, Nigel. (1998) B
Gowemment and Politics,



This bill seeks to ensure seamless operations of agencies within and across sectors and
to be more responsive to public needs by creating the Committee on Rightsizing the Executive
Branch. The Committee shall oversee the implementation of the Rightsizing Program, aimed
at simplifying and modernizing government systems and processes to facilitate the delivery
and upgrade the quality of frontline services, as well as to improve policy formulation, planning
and performance evaluation, and raise overall productivity of the public sector

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

Va. \.\

TEODORICO T. HARESCO,LR


NINETEENTH CONGRESS OF THE
REPUBLIC OF THE PHILIPPINES.
First Regular Session

3096

House Bill No.

Introduced by Representative TEODORICO “NONONG” T. HARESCO, JR.

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
Congressassembled:

IN 1. Short Title. — This Act shall be known as “Rightsizing the National Government

SECTION 2. Declaration of Policy. — It is hereby declared the policy of the state to promote
and maintain effectiveness, efficieney 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 duplication in its
operations and simplify its rules and regulations, systems and processes.

ECTION 3. Coverage. — This Act shall cover all agencies of the executive branch, including
departments, bureaus, offices, commissions, boards, councils, and all other entities attached to
or under their administrative supervision, government-owned or controlled corporation
(GOCCs) not covered by Republic Act No. 10149 or the GOCC Governance Act of 2011"

The Legislature, the Judiciary, the Constitutional Commissions, and the Office of the
‘Ombudsman may, within their respective authorized appropriations, likewise rightsize their
respective offices, consistent with the principles and guidelines contained in this Act.

Local government units (LGUs) may also rightsize their respective offices, consistent
with the governing principles and guidelines contained in this Act and the provisions of
Republic Act No. 7160 or the “Local Government Code of 1991,” and subject to their financial
capability.

The government Commission for GOCCs (GCG) shall continue to exercise it authority
under Republic Act No. 10149 to recognize, merge. streamline, abolish, or privatize any
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


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Rightsizing Program in accordance 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
socioeconomic objectives of the government, and available resources:

(b) The government shall establish a conductive policy environment to encourage active
private sector engagement in the production and delivery of goods and services.

(c) 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:

(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;

(e) Government operations shall be simplified so that the departments/agencies can
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 and modemized to facilitate
the delivery and upgrade the quality of frontline services, as well as to improve policy
formulation, planning and performance evaluation, and raise overall productivity of the public
sector;

(g) Government rules, procedures and requirements shall be rationalized to reduce the
regulatory 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 an agency shall be designed to facilitate the
effective, efficient, and economical implementation of programs and projects, and the
attainment of organizational outputs and outcomes: rightsized and the appropriate staffing mix
shall be determined based on the skills and competencies required to effectively and efficiently
carry out the agency”s mandate and functions.

SECTION 5. Authority of the President of the Philippines to Rightsize the Operations of the
Execute Branch, ~ Pursuant to the governing rules, policies, standards and guidelines
stipulated in this Act, the President of the Philippines is hereby granted the following authority
in the rightsizing of the operations of the different agencies of the

a. To pursue the following functional shifts/modifications:

(J) Strengthen functions of the agency which directly contribute to the targeted
ultimate societal outcomes of the National Government and/or the targeted
sector/subsector outcomes of the agency;

(2) Scale down, phase out, eliminate or discontinue functions, programs, and
projects that can better be carried out or undertaken by the private sector, or
have already been devolved to LGUs consistent with the governing principles
provided in this Act; and



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(3) Transter/integrate functions from one agency to another which can better
perform the same.

b. To undertake the following organizational actions:

(1) Regularize ad hoe offices whole functions are vital and significant, thus must
be continually undertake by the government;

(2) Merge or consolidate agencies whose functions are necessarily overlapping or
duplicating and can be undertaken by a single entity; or clients are similar or
related to rationalize the use of government resources;

(3) Split agencies with multifarious functions which are deemed distinct and
‘equally serve important aspects of governance;

(4) Transfer offices to other agencies wherein their functions are more aligned; and

(5) Abolish agencies: (i) which functions are already redundant or no longer
relevant or necessary, or better undertaken by another entity; (ii) which are no
longer achieving the objectives and purposes for which these were originally
created: (iii) which are not cost-effective since these do not generate the desired
levels or outputs and outcomes vis-a-vis the resource inputs; and/or (iv) which
have already become non-operational, dormant and/or outlived their purposes.

¢. To undertake other functional/organizational actions, as necessary, consistent with
the policies, principles, framework, and standards of this Act;

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

e. 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 Committee
on Rightsizing the Executive Branch is hereby created to oversee the implementation of the
Rightsizing Program, in accordance with the provisions of this Act.

‘The Committee shall be composed of the Executive Secretary as Chairperson, and the
Secretary of the Department of Budget and Management (DBM) as Co-chairperson, with the
Secretary of Socio-Economic Planning, 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 also organize Subcommittees composed of experts on government
operations, organizational development, and human resource management to assist in the
performance of its functions.


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The DBM shall provide the necessary secretarial services to the Committee and its
Subcommittees,

In the spirit of transparency and participatory governance, the Commitice shall consult
the departiment/agencies concerned and accredited public sector unions, and other stakeholders,
relative to the implementation of the Executive Branch Rightsizing Program.

SECTION 7. Powers and Functions of the Committee on Rightsizing the Executive Branch.
~The Committee shall have the following powers and functions:

a, To develop the policies, framework, strategies, and mechanism to be adopted in the
implementation of the Executive Branch Rightsizing Program;

b. To conduct studies on the functions, programs, projects, operations, structure, and
manpower complement of the different departments/agencies;

c. To develop and prepare the rightsized organizational structure of
department/agencies concerned and the corresponding executive issuances for
approval by the President;

d. To develop and prepare the overall change management program. including
‘communication plans, to effectively manage the transition and ensure the smooth
implementation of the Rightsizing Program:

¢. To formulate the mechanisms to safeguard the welfare of employees who may be
affected by the rightsizing efforts, as well as the appropriate organizational
development program, for approval of the President;

f, To monitor the implementation by the different agencies of their respective
approved rightsizing Plans, and report to the President any issue that must be
addressed;

g. To engage the services of expert/consultants, trough the DBM, to assist the
Committee and its Subcommittees in the performance of their functions; and

h. 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 Executive Branch
shall submit to the President the rightsized organizational structure of agencies concerned and
the corresponding executive issuances within two hundred fifty (250) days from the effectivity
of the implementing rules and regulations (IRR) of this Act.

SECTION 9. Submission of the Detailed Organizational Structure and Staffing to the DBM.
~ The heads of agencies shall prepare and submit to the DBM the detailed organizational
structure and staffing of their respective agencies within ninety (90) days after the approval of
the proposed executive issuances by the President: Provided, The assistance in the preparation
of organizational structure and staffing pattern has been extended to the agency by the DBM
and the CSC.



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SECTION 10. Retirement Benefits and Separation Incentives for Personnel Who May be
Affected by the Executive Branch Rightsizing Program. ~ The affected personnel hired on a
permanent basis and with appointment attested by the CSC, shall be entitled to retirement
benefits and separation incentives.

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

(1) Retirement gratuity provided under Republic Act No. 1616 (An Act Further
Amending Section Twelve of Commonwealth Act Numbered One Hundred
Eighty-Six, as Amended, by Prescribing Two other Modes of Retirement and
for Other Purposes), as amended: or

(2) Retirement benefit under Republic Act 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

(3) Retirement, separation or unemployment benefit provided under Republic Act
No. 8291 (An Act Amending Presidential Decree No. 1146, as Amended,
Expanding and Increasing the Coverage and Benefits of the Government
Services Insurance System, Instituting Reforms Therein and for Other
Purposes).

(1) The retirement gratuity benefit of affected personnel who are qualified and shall
avail of Republic Act 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 shall avail of Republic Act No. 1616 benefits

b. 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;

(1) One half (%) of the actual monthly basic salary for every year of
government service, for those who have rendered less than eleven (11)
years of service;

(2) Three fourth (3/4) of the actual monthly basic salary for every year of
government service, computed starting from the first (1 year, for those
who have rendered eleven (11) to less than twenty-one (21) years of service;

(3) The actual monthly basic salary for every year of government service,
computed starting from the first (1") year, for those who have rendered
twenty-one (21) to less than thirty-one (31) years of service; and

(4) One and one fourth (1'4) of the actual monthly basic salary for every year
of government service, computed starting from the first (1*) year, for those
who have rendered thirty-one (31) years of service and above.


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The actual monthly basic salary shall refer to the salary of the affected personnel as of the
date of approval of the agency’s detailed organizational structure and staffing by
the DBM

inimum of five (5) years of government service is required in order for an affected
personnel to be entitled to avail of the Program’s separ ycentives under
Section 10 (b) of this Act: Provided. That for the purpose of computing the total
amount of separation incentives that an affected personnel shall receive, only the
‘government service up to age fifty-nine (59) and a fraction thereof shall be counted.
Government service starting at the age of sixty (60) shall 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 Republic Act No. 8291, the portability scheme
under Republic Act 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 not
opt to retire from the service shall be placed in a manpower pool to be organized
and administered by the CSC. The CSC, in coordination with other government
agencies and relevant private institutions, shall retool the subject 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 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
retire or are separated shall, in addition to the applicable benefits above, be entitled to the
following:
a. Refund of Pag-IBIG contributions, both personal and government of all affected
members, pursuant to existing rules and regulations of the Home Development
Mutual Fund; and

b. Commutation of unused vacation and sick leave credits of the affected personnel
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 of the detailed rightsized organizational
structure and staffing of departments/agencies concerned.

SECTION 13. Prohibition on Reemployment of Personnel Retired/Separated from the
Service. — Personnel who retire or are separated from the service as a result of the


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implementation of the Rightsizing Program shall not be reemployed in any agency of the
Executive Branch, including in GOCCs, for a period of five (5) years, except as teaching or
medical staff in educational institutions and hospitals, respectively.

The retired/separated personnel under the program, who are reemployed within the
prohibited period shall refund the separation incentives received under Section 10 (b) of this
Act on a prorated basis.

The retired/separated personne! under the program who undertake in consultancy
services for the government shall be governed by Section 7 of Republic Act No. 6713 (Code
of Conduct and Ethical Standards for Public Officials and Employees).

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 each from the Senate
and the House of Representatives which shall include members of the Senate Committee on
Civil Service, Government Reorganization and Professional Regulation, the Senate Committee
on Finance, the House Committee on Government Reorganization and the House Committee
on Appropriations.

SECTION 15. Conduct of an Impact Assessment. — The DBM shall commission the conduct
of an independent impact assessment on the Executive Branch Rightsizing Program three (3)
years from 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 after the completion of its implementation.

SECTION 17. Sunset Provision. ~The authority given to the President under this Act, as well
as the existence of the Committee on Rightsizing the Executive Branch, shall end three (3)
years after the effectivity of this Act.

SECTION 18. Implementing Rules and Regulations, - The Committee on Rightsizing the
Executive Branch shall formulate the necessary Implementing Rules and Regulations (IRR)
within thirty (30) days from the organization of the Committee. The IRR shall take effect fifteen
(15) days after its publication in a newspaper of general circulation.

SECTION 19. Provisions Applicable to Other Branches of Government, Constitutional
Commissions, Office of the Ombudsman, and the LGUs. ~The governing principles, policies,
standards, and guidelines, as well as the conditions and limitations provided in this Act, shall
be followed in the implementation of the Rightsizing Program by other branches of
government, Constitutional Commissions, Office of the Ombudsman, and the LGUs.

The heads of offices shall issue their respective IRR and furnish a copy thereof to the
Joint Congressional Oversight Commitice on the Rightsizing,

SECTION 20. Funding Requirements. ~ The amount necessary for the initial implementation
of this Act shall be sourced against any applicable appropriation items under the current


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General Appropriations Act. Subsequent amount needed to continue the implementation of the
Executive Branch Rightsizing Program in the Executive Branch shall be included in the
sueceeding appropriations

In the event that the Legislature, Judiciary, Constitutional Commissions and the Office
‘of the Ombudsman implement the rightsizing under this Act, the funding requirements shall be
included in the succeeding appropriations.

SECTION 21. 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 22. 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 23. Effectivity. — This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in any newspaper of general circulation.

Approved.