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Republic of the Philippines
House of Representatives
Quejon City, Metro Manila

Nineteenth Congress

First Regular Session
First Re

House Bill No. 7910

Introduced by :
Hon. Gerville ‘Jinky Bitrics’ R. Luistro

EXPLANATORY NOTE

This bill seeks to ‘rightsize’ the national government bureaucracy,
particularly the executive branch, to get rid of redundant and inefficient
government bodies, or their overlapping functions — a move seen to free
up some P14.8 billion in savings in personnel services which could be
used to fund priority projects instead, such as infrastructure and social
services programs.

The objective of the rightsizing is to have a smaller bureaucracy
that is agile and responsive to the challenges of the new times. It shall
rationalize the functions of government agencies and determine which
may be streamlined through merging, restructuring or abolition. These
measures are to be undertaken with the overarching objectives of
achieving good governance, improved public service delivery and fiscal
Prudence.

To realize these objectives, a Committee on Rightsizing the
Executive Branch is established to spearhead the formulation of a
Rightsizing Program which shall be implemented by the Committee within
a three-year period from the effectivity of the law. The other branches of
government, the Judiciary and the Legislative, including the Constitutional
Commissions and the Office of the Ombudsman, are given the option to
design and implement rightsizing programs of their own following the
principles and standards laid down in the (bill) law.


Affected personnel may apply for positions that will be created as an
effect of the rightsizing, or may opt to retire and shall receive appropriate
retirement benefits. The proposal for rightsizing, however, excludes
teaching and teaching-related positions, medical and allied medical
Positions or those in the health sector, and the military as well as other
uniformed personnel.

Rightsizing the national government bureaucracy is by no means an
easy task. But when properly executed and with the appropriate
framework, it could well result in a government more responsive to the
needs of the people.

For the foregoing reasons, the immediate approval of the bill is
earnestly urged.



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Republic of the Philippines
Bouse of Representatives
Queson City, Metro Manila

Nineteenth Congress

First Regular Session

House Bill No. 7510.

Introduced by :

Hon. Gerville ‘Jinky Bitrics’ R. Luistro

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 the ‘Rightsizing the
National Government Act’.

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 enhanced 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.

Section 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 corporations (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 (LGU’s) may also rightsize their respective offices,
Consistent with the governing principles and guidelines contained in this Act and
the provisions of RA No. 7160 or the Local Government Code of 1991, and
subject to their financial capability.

The Government Commission for GOCC’s (GCG) shall continue to exercise
its authority under RA No. 10149 to reorganize, 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 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;

5) The government shall establish a conductive policy environment to
encourage active private engagement in the production and delivery of
goods and services;

¢)

The delineation of responsibilities between the National Government and
the LGU’s in the provision, production, and delivery of goods, and services
shall be clearly defined;

d

A whole-government approach shall be adopted to ensure seamless
operations of agencies within and across sectors and to be more
responsive to public needs;

©) 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;

f)

Government systems and processes shall be simplified and modernized 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 agencies mandate and functions.

Section 5. Authority of the President of the Philippines to Rightsize the
Operations of the Executive Branch - Pursuant to the governing rules,
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 executive branch:

a)

b)

¢

d)

To pursue the following functional shifts/modifications:

1) Strengthen functions of the agency which directly contribute to the
targeted ultimate societal outcomes of the national government and/or
the targeted sector/sub-sector outcomes of the agency;

2) Scale down, phase out, eliminate or discontinue functions, programs,
Projects that can 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,

3

Transfer/integrate functions from one agency to another which can
better perform the same.

To undertake the following organizational actions:

1) Regularize ad hoc offices whose functions are vital and significant, thus
must be continually undertaken 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 aspect 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 level of 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.

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


€) To formulate an organizational 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 be also organize Subcommittees composed of
experts on government operations, organizational development, and human
resource management to assist in the performance of its functions.

The DBM shall provide the necessary secretariat services to the
Committee and its Subcommittees.

In the spirit of transparency and participatory governance, the Committee
shall consult the departments/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:

@) To develop the policies, framework, strategies, and mechanisms 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;

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

©

4) 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 the 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 experts/consultants, through the DBM, to assist
the Committee and the Sub-Committees 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, That assistance in the preparation of
organizational structure and staffing pattern has been extended to the agency by
the DBM and the CSC.

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
appointments 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 12 of Commonwealth Act. No. 186, as
Amended, By Prescribing Two Other Modes of Retirement and for Other
Purposes), as amended; or,

2) Retirement benefit under the Republic Act No. 660 (An Act Further
Amending Commonwealth Act No. 186 or “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 Service Insurance System, Instituting Reforms
Therein and for Other Purposes).

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 (¥2) of the actual monthly basic salary for every year of
government service, for those who have rendered eleven (11) years of
service;

2) Three fourths (34) 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 ¥%) of the actual monthly basic salary for every
year of government service, computed starting the first (1%) year, for
those who rendered thirty-one (31) years of service and above.

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.

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.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 the age of 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
System by Totalizing the Workers’ Creditable Service or Contribution 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 no 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 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 the 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 separated
from the service as a result of the 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 re-employed
within the prohibited period shall refund the separation incentives received under
Section 10.b of this Act on a pro-rated basis.

The retired/separated personnel under the programs who undertake the
consultancy services for the government shall be govern by Section 7 of
Republic Act No. 6713 (Code of Conduct and Ethical Standards for Public official
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 of
the Senate and the House of the Representative which shall include members of
the Senate Committee on Civil Service, the House Committee on Government
Reorganization and House Committee on Appropriations.

Section 15. Conduct Of An Impact Assessment - The DBM shall
commission the conduct of an independent impact assessment to the executive
branch rightsizing program three (3) years from its completion to, among
others, determine the effects of, ang 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 this
implementation.

Section 17. Sunset Provision - The authority given to the President under
this Act, as well as the existence of the Committee on Rightsizing of 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 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. Provision Applicable to other Branches of Government,
Constitutional Commissions, Office of the Ombudsman, and the LGUs —
The governing principles, policies, standards, and guideline, 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 Committee on the Rightsizing Program and
the DBM.

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 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 succeeding 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.