Republic of the Philippines
House of Representatives
Quezon City, Meteo Manila

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No, 7405

INTRODUCED BY
REP. ALFRED VARGAS

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 needed by the people is to deny them of
opportunities that would better their lives as Filipino citizens.

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 inaccessible,
depending on the effectiveness and efficiency of its existing rules and
regulations, systems and processes.

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.

1 Bowles, Nigel. (1998) Bureaucracy: The Fourth Branch of Government. In:
Government and Politics of the United States. Comparative Government and Politics.
Palgrave, London


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 immediate passage of this bill is
earnestly sought.


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

EIGHTEENTH CONGRESS
Second Regular Session

. 7105
House Bill No.

INTRODUCED BY
REP. ALFRED VARGAS

AN ACT
RIGHTSIZING THE NATIONAL GOVERNMENT TO IMPROVE
PUBLIC SERVICE DELIVERY

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

SECTION 1. Short Title. - This Act shall be known as “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 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.

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
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 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;

(4) 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;

(ec) 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
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;

(@) 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 Executive Branch:

a. 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/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

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

b. To undertake the following organizational actions:

(1) Regularize ad hoc 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-
vis the resource inputs; and/or (iv) which have already become non-
operational, dormant and/or outlived their purposes.



c. 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.

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

In the spirit of transparency and participatory governance, the
Committee shall consult the department/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;

e. 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.

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).

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 ('4) 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*t 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 from the first (1*)


year, for those who have 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
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 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 personnel 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 Committee 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 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,