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THIRTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
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OF THE PHILIPPINES 
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Introduced by Senator S. R. OsmeAa 111 
EXPLANATORY NOTE 
According to generally accepted principles of good governance, the role of the 
government is primarily that of setting the stage to ensure the success of private 
enterprises. 
In the Philippine reality, however, government has not chosen to keep to the 
background in support of private businesses. It has shown a tendency to grow, to 
venture increasingly into areas which are ideally the domain of private businesses, 
and in the process, to increase its expenditure programs well beyond the capacity of 
the tax system to finance. 
This bill seeks the creation of a Government Reorganization Commission to 
undertake studies and propose measures to abolish, merge, integrate, transfer, 
regroup, or restructure departments, bureaus, offices, 
government-owned and 
controlled corporations and other agencies of the Executive Branch in order to 
eliminate overlapping andlor fragmentation functions programs and activities. 
The Commission is proposed to be chaired by the Chairman of the Senate 
Committee on Civil Service and Government Reorganization. 
It will 
have 15 
members representing both houses of Congress, the Civil Service Commission, and 
representatives from the private sector and a recognized government employees 
organization. 
The Commission is mandated to submit a report of its study and reorganization 
Plan to the President who may, if so inclined, submit the same to Congress for 
approval through a concurrent resolution. 
At present, government is a significant contributor to the tremendous waste of 
resources in the Philippine economy. All the rhetoric about reducing poverty and 
bringing about Philippine economic resurgence should start with the urgent need to 
trim down the unnecessary and redundant appendages of the government and make it 
better able to address the needs of devalopment. 
In view of the foregoing, early passage of this bill is earnestly requested. 
S E ~ G I O  
OSNIENA 111 
Senator 


THIRTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
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OF THE PHILIPPINES 
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S E N A T E  
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Introduced by Senator S. R. Osmeiia 111 
AN ACT 
REORGANIZING 
THE 
GOVERNMENT 
BUREAUCRACY, 
CRATING 
A 
GOVERNMENT REORGANIZATION COMMISSION, DEFINING ITS POWERS AND 
FUNCTIONS AND FOR OTHER PURPOSE§ 
Be it enacted by the Senate and the House of Representatives of the Republic of the 
Philippines in Congress assembled. 
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SECTION 1. 
ShorC Tifle. - This Act shall be known as the 
“Government Reorganization Act of 2004.” 
SEC. 2. Declarafion ofPolicy. - It is declared the policy of the State to 
maintain an . efficient, effective, professionalized, and properly compensated 
bureaucracy which scope and focus of functions, programs and activities 
support national development goals and efforts and whose size and 
organizational structure promote economy, productivity, innovation and 
resporisiveness and service to the general public. 
SEC. 3. Creation of the Governmenf Reorganizafion Commission. - 
Pursuant to the preceding section, a Government Reorganization Commission, 
hereinafter referred to as the Commission, is hereby created with the following 
as members thereof: 
1. Chairman of Senate Committee on Civil Service and Government 
Reorganization, who will be its chairman; 
2. Chairman of House Committee on Government Reorganization, who 
will be a co-vice chairman: 
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3. Chairman of the House Committee on Civil Service, who will be a co- 
vice chairman; 
4. Three(3) majority members of the Senate Committee on Civil Service 
and Government Reorganization; 
5. One (1) minority member of the Senate Committee on Civil Service 
and Government Reorganization; 
6. One (I) majority member of House Committee on Government 
Reorganization; 
7. One (1) majority member of House Committee on Civil Service; 
8. One (1) minority member of the House Committee on Civil Service 
and/or Government Reorganization; 
9. Chairman and the two (2) members of the Civil Service Commission; 
I O .  Representative from the private sector to be appointed by the 
President; and 
11. Representative 
from 
a 
recognized 
government 
employees 
organization to be nominated by members of such organization. 
SEC. 4. Mandafe. - The Commission shall pursue a survey of the 
government bureaucracy and draft a plan of reorganization of all entities and 
offices of the Executive branch of government. These shall include all 
departments and their respective attached agencies, bureaus, offices, 
commissions, boards, councils, authorities, including government-owned and 
controlled corporations, state universities and colleges, and all other 
instrumentalities of the Executive branch. 
SEC. 5. Powers and Funcfions. - Pursuant to Section 2 of this Act, and 
in order to ensure the successful implementation of the reorganization of the 
Executive branch, the Commission is hereby authorized to: 
1. formulate and administer the necessary guidelines, rules, and 
procedures to implement and ensure adherence to this Act; 


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2. draft a plan to abolish, merge, integrate, transfer, and regroup, or 
restructure departments, bureaus, offices, government-owned and 
controlled corporations, and other agencies of the Executive branch 
only for the purpose of eliminating overlapping and fragmented 
functions, programs and activities; effects the distribution and transfer 
to appropriations, assets, liabilities, equipment, records, other 
properties, transactions, positions, and personnel, all the time giving 
due regard to pertinent laws and rules and regulations, and the right 
to security of tenure of civil service officers and employees; 
3. adopt a human resource development strategy, and a government 
staffing and remuneration policy to include a rewards and incentives 
scheme that will establish equity, promote morale, productivity, 
innovativeness, professionalism, and creativity, and attract and retain 
the best and the brightest within the civil service; and 
4. adopt and enforce the necessary guidelines, rules and regulations, 
and processes to fully implement the reorganization herein, provided. 
SEC. 6. Principles and Parameters. - The reorganization of the 
Executive branch herein authorized shall be carried out according to the 
following principles and guidelines: 
1. Government’s role, and the determination of the scope, level, and 
prioritization of its activities shall be in accordance with its 
Constitutional mandate, political and socioeconomic objectives, and 
available resources, to be guided by the following policies: 
a. Government shall prioritize the strengthening its fundamental 
functions, among which are: 
1. effective macro-economic management, including the 
formulation and implementation of socioeconomic, fiscal, 
and monetary policies; 
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2. the maintenance of peace and order, and national political 
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security; 
3. the conservation of natural resources and ensuring their 
productive utilization and development for the national 
welfare; 
4. the maintenance of an effective and reliable system of 
administering justice, lawmaking, and law enforcement; 
5. providing quality basic and secondary education, especially 
to the poor and disadvantaged population; 
6. providing adequate and appropriate infrastructure; 
7. promoting economic and political diplomacy to achieve 
sound and mutually productive economic and political 
relations with other nations and international communities; 
8. the promotion of total human development; and 
9. disaster mitigation and the effective management of state 
emergencies and calamities. 
b. Government’s role shall e to steer and mobilize the instruments 
that contribute to achieving sectoral objectives. To this end, 
Government shall focus its sectoral functions on: 
I .  policy setting, monitoring, and assessment; 
2. promotion and advocacy; 
3. providing information and linkages or access to markets; 
4. providing assistance and incentives; 
5. enforcement of the appropriate rules and regulations; and 
6. providing safety nets for adversely affected sectors of the 
population. 
c. To the extent possible, government shall limit direct provision 
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and production of public goods and encourage more private 
sector participation. 
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2. The National Government shall assist, supervise, and monitor local 
government units to complement the greater autonomy granted to 
them. The declination of responsibilities between the National 
Government and local government units in the provisions and 
production of public goods shall be clearly defined and agreed upon 
3. The National Government shall adopt a structural framework that will 
define the vertical as well as horizontal compartmentalization of the 
Executive Branch, including the basic structural and functional 
configuration of departments and agencies. It shall likewise adopt a 
typology of government offices which shall serve to determine the 
proper organizational configurations and groupings of these offices. 
4. The Executive Branch shall streamline its systems and procedures to 
facilitate and improve the relevance and quality of front-line services, 
and improve policy formulation, planning and performance, and 
evaluation and assessment. These systems and procedures shall e 
designed within the context of decentralizing the decision-making 
authority within the Executive Branch and its departments, agencies, 
bureaus, offices and other instrumentalities. 
SEC. 7. Submission of Report fo the President and Congress. - The 
Commission shall submit the report of its study and reorganization plan, to the 
President. If the President finds the report or plan satisfactory, the same shall be 
submitted to both Houses of Congress. The organizational plan, shall be 
effective upon the its approval of Congress through a concurrent resolution. 
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SEC. 8. Re-Too/ing, Re-Training, and Re-Deploymenf Program. - The 
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Government shall adopt and implement a re-tooling, re-training, and re- 
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deployment program for personnel who might be displaced as a result of the 
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reorganization 
of departments, 
agencies, 
bureaus, 
offices, 
and other 
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instrumentalities of the Executive Branch. This program shall include the 
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formulation of technical and objective criteria for the identification of redundant 
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positions and the consequent incumbents therein, the establishment and 
operation of a government manpower pool, and the re-tooling, retraining, and 
subsequent re-deployment of personnel to appropriate non-redundant positions 
in the newly reorganized agencies. 
All personnel whose positions have been declared redundant shall be 
consequently be deployed to the government pool, which shall be established 
according to the following guidelines: 
1. All redundant personnel shall continue to receive their basic salaries 
for one (I) 
year from the day their positions are officially declared 
redundant; 
2. All allowances, financial and non-financial benefits, and other 
compensation received by the incumbents prior to their positions 
being declared redundant shall be terminated upon such declaration; 
3. If the redundant personnel *shall choose to immediately leave the 
government service, or before the expiration of the one(I) year period 
provided for, he shall be entitled to receive in cash his basic salary for 
the remaining period, in addition to any separation pay and other 
benefits due pursuant to Section 9 of Republic Act No. 6656; 
4. Redundant personnel who are eligible for retirement under existing 
laws shall likewise be entitled to encash the basic salary for the 
remaining period, should they choose to retire before the end of the 
one (I) year period provided fur; and 
5. Residence in the manpower pool shall not be considered nor credited 
as service for purposes of computing retirement and separation 
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benefits. 
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SEC. .9. The Judiciary and Constitutional Offices. - The Judiciary and 
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Constitutional offices may likewise pursue a survey and reorganization of its 
ranks in accordance with the principles, guidelines, standards, and time frame 
prescribed in this Act. They may coordinate their respective reorganization 
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efforts with the Executive branch for better coordination and in the interest of 
public service. 
SEC. 10. Repealing Clause. - All laws, decrees, orders, rules and 
regulations and other issuances inconsistent with the provisions of this Act are 
hereby repealed or amended accordingly. 
SEC. 11. Separability Clause. - Should any section or provision of this 
Act be declared unconstitutional or invalid, other sections or provisions not so 
affected shall continue to be full force and effect. 
SEC. 4. Effecfivity Clause. - This Act shall take effect fifteen (15) days 
after its publication in the Official Gazeffe and in at least two (2) newspapers of 
general circulation 
Approved, 
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