THIRTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
Third Regular Session 
) 
SENATE 
Senate Bill No. 
Introduced by: Senator Lacson 
EXPLANATORY NOTE 
One of the main roadblocks in the progress of our economy is the 
unending problem of red tape. This phenomenon has resulted in superfluous 
procedures, loss of valuable time and money, and delayed action, if not inaction, 
on the part of government agencies. 
The perennial problem of red tape pervades every aspect of our economy 
and thus, it poses as a grave threat to the growth of investments here in the 
country. According to a World Bank study entitled Doing Business 2007: How fo 
Reform, an entrepreneur in the Philippines wanting to start a business would 
have to undergo eleven (1 1) procedures to be completed at an average of forty- 
eight (48) days with an estimated cost of 18.7% of income per capita. This 
should be differentiated from obtaining a business license since such a process 
requires twenty-three (23) steps, one hundred ninety-seven (197) days, and a 
cost of 113.4% of income per capita. The same process of obtaining a license in 
an Organization for Economic Co-operafion and Development (OECD) - 
member country will only take 14.1 steps, 146.9 days, and costs only 75% of 
income per capita. 
The great disparity in terms of the number of 
procedureslsteps, days and percentage cost in our country as compared to 
OECD countries is indeed despairing. These figures explain for themselves why 
our country is losing its competitive advantage when it comes to attracting 
foreign investors. The numerous business-government interactions in the form 
of bureaucratic rules and procedures only result in an abundance of 
opportunities for corruption to take place. 
In fact, the 2006 SWS survey 
showed that there has been a net decline on the net sincerity among government 
institutions in fighting corruption. 
Indeed, the presence of red tape in our 
governmental structure leads to the prevalence of corruption among the ranks of 


government. 
corruption provides a very bleak picture of the business climate in our country. 
The problem of red tape compounded by the incidence of 
Efforts done in the past to curb red tape failed to produce tangible results. 
It is imperative that our country's fight against red tape be intensified so as to 
address this problem at its roots. This bill aims to provide a feasible approach to 
this problem by requiring all government agencies and instrumentalities to adopt 
a fixed time period within which transactions passing through their respective 
agencies ought to be completed. Moreover, this bill also proposes a regular 
assessment and upgrading of the frontlineservices of such government offices 
to ensure that red tape is being minimized, if not totally eliminated. 
The speedy delivery of basic services and the expeditious processing of 
business transactions are vital to boost our sagging economy. But this can 
never be achieved if the culture of red tape is allowed to flourish unhampered 
and unchecked. It is hoped that the passage of this bill will provide the needed 
solution to the age-old problem of red tape in our bureaucracy by targeting the 
problem areas such as repetitious procedures, long delays and opportunities for 
corruption. 
In view thereof, approval of this bill is urgently sought. 
PA Mky' 
F 0 . ACSON 
\J Senator 


THIRTEENTH CONGRESS OF THE 
) 
Third Regular Session 
- '? r;:n 
':O 76 :pG 
~-~ 
%.*.a . .J 
.. .. 
REPUBLIC OF THE PHILIPPINES 
) 
SENATE 
Senate Bill No. 
2. 
I
U
 
Introduced by: Senator Lacson 
AN ACT 
TO IMPROVE EFFICIENCY IN THE DELIVERY OF GOVERNMENT SERVICE 
TO THE PUBLIC BY REDUCING BUREAUCRATIC RED TAPE, PREVENTING 
GRAFT AND CORRUPTION, AND PROVIDING PENALTIES THEREFOR 
Be it enacted by the Senate and House of Representatives of the 
SECTION 7. Short Tifle. - This Act shall be known as the "Anti-Red Tape 
Philippines in Congress assembled: 
Act of 2006". 
SEC. 2. Declaration of Policy. - It is hereby declared as a State policy to 
promote integrity, accountability, proper management of public affairs and public 
property as well as to establish effective practices aimed at the prevention of 
graft and corruption in government. Towards this end, the State shall maintain 
honesty and responsibility among its public officials and employees, and shall 
take appropriate measures to promote transparency in each agency with regard 
to the manner of transacting with the public, which shall encompass a program 
for the adoption of simplified procedures that will reduce red tape and expedite 
transactions in government. 
SEC. 3. Coverage. - This Act shall apply to all government offices and 
agencies including local government units and government-owned and/or - 
controlled corporations that provide frontline services as defined in this Act. 
Those performing judicial, quasi-judicial and legislative functions are excluded 
from the coverage of this Act. 
SEC. 4. Definition of Terms. -As used in this Act, the following terms are 
(a) "Simple transactions" refers to requests or applications submitted by 
clients of a government office or agency which only require ministerial actions on 
the part of the public officer or employee, or that which present only 
inconsequential issues for the resolution by an officer or employee of said 
government office. 
defined as follows: 
(b) "Complex transactions" refers to requests or applications submitted by 
clients of a government office or agency which necessitates the use of discretion 
in the resolution of complicated issues by an officer or employee of said 
government office or agency, such transaction to be determined by the office 
concerned. 


(c) "Frontline service'' refers to the process or transaction between clients 
and government offices or agencies involving applications for any privilege, right, 
permit, reward, license, concession, or for any modification, renewal or extension 
of the enumerated applications and/or requests which are acted upon in the 
ordinary course of business of the office or agency concerned. 
(d) "Action" refers to the written approval or disapproval made by a 
government office or agency on the application or request submitted by a client 
for processing. 
(e) "Officer or employee" refers to a person employed in a government 
office or agency required to perform specific duties and responsibilities related to 
the application or request submitted by a client for processing. 
(9 "Irrelevant requirements" refers to any document or performance of an 
act 
not 
directly 
material 
to 
the 
resolution 
of 
the 
issues raised in the request or needed in the application submitted by the client. 
(9) "Fixer" refers to any individual whether or not officially involved in the 
operation of a government office or agency who has access to people working 
therein, and whether or not in collusion with them, facilitates speedy completion 
of transactions for pecuniary gain or any other advantage or consideration. 
SEC. 5. Re-engineering of Systems and Procedures. - All offices and 
agencies which provide frontline services are hereby mandated to regularly 
undertake time and motion studies, undergo evaluation and improvement of 
their transaction systems and procedures, and re-engineer the same if deemed 
necessary to reduce bureaucratic red tape and processing time. 
SEC. 6. Citizen's Charter. - All government agencies including 
departments, bureaus, offices, instrumentalities or government-owned and/or - 
controlled corporations, or local government or district units shall set up their 
respective service standards to be known as the Citizen's Charter in the form of 
information billboards which should be posted at the main entrance of offices or 
at the most conspicuous place, and in the form of published materials written 
either in English, Filipino or in the local dialect that detail: 
(a) The procedure to obtain a particular service; 
(b) The personk responsible for each step; 
(c) The maximum time to conclude the process; 
(d) The documentk to be presented by the customer, if necessary; 
(e) The amount of fees, if necessary; and 
(9 (9 The procedure for filing complaints. 
SEC. 7. Accountability of the Heads of Offices and Agencies. - The head 
of the office or agency shall be primarily responsible for the implementation of 
this Act and shall be held accountable to the public in rendering fast, efficient, 
convenient and reliable service. All transactions and processes are deemed to 
have been made with the permission or clearance from the highest authority 
having jurisdiction over the government office or agency concerned. 
SEC. 8. Accessing Frontline Services. -The following shall be adopted by 
all government offices and agencies: 


(a) Acceptance of Applications and Requests - (1) All officers or 
employees shall accept written applications, requests and/or documents being 
submitted by clients of the office or agency. 
(2) The responsible officer or employee shall acknowledge receipt of such 
application and/or request by writing or printing clearly thereon hislher name, the 
unit where he/she is connected with, and the time and date of receipt. 
(3) The receiving officer or employee shall perform a preliminary 
assessment of the request so as to promote a more expeditious action on the 
requests. 
(b) Action of Offices - (1) All applications andlor requests submitted shall 
be acted upon by the assigned officer or employee during the period stated in 
the Citizen's Charter which shall not be longer than five (5) working days in the 
case of simple transactions and ten (IO) working days in the case of complex 
transactions from the date the application or request was received. Depending 
on the nature of the frontline services requested or the mandate of the office or 
agency under unusual circumstances, the maximum time prescribed above may 
be extended. For the extension due to the nature of frontline services or the 
mandate of the office or agency concerned, the period for the delivery of frontline 
services shall be indicated in the Citizen's Charter. The office or agency 
concerned shall notify the requesting party in writing of the reason for the 
extension and the final date of release for the extension and the final date of 
release of the frontline servicek requested. 
(2) No application or request shall be returned to the client without 
appropriate action. In case an application or request is disapproved, the officer 
or employee who rendered the decision shall send a formal notice to the client 
within five working days from the receipt of the application and/or request, stating 
therein the reason for the disapproval including a list of specific requirementh 
which the client failed to submit. 
(c) Denial of Request for Access to Government Service - Any denial of 
request for access to government service shall be fully explained in writing, 
stating the name of the person making the denial and the grounds upon which 
such denial is based. Any denial of request is deemed to have been made with 
the permission or clearance from the highest authority having jurisdiction over 
the government office or agency concerned. 
(d) Limitation of Signatories -The number of signatories in any document 
shall be limited to a maximum of five signatures which shall represent officers 
directly supervising the office or agency concerned. 
(e) Adoption of Working Schedules to Serve Clients - Heads of offices 
and agencies which render frontline services shall adopt appropriate working 
schedules to ensure that all clients who are within their premises prior to the end 
of official working hours are attended to and served even during lunch break and 
after regular working hours. 
(9 Identification Card - All employees transacting with the public shall be 
provided with an official identification card which should be visibly worn during 
office hours. 
(9) Establishment of Public AssistancelComplaints Desk - Each office or 
agency shall establish a public assistancelcomplaints desk in all their offices. 


SEC. 9. Automatic Extension of Permits and Licenses. - If a government 
office or agency fails to act on an application and/or request for renewal of a 
license, permit or authority subject for renewal within the prescribed period, said 
permit, license or authority shall automatically be extended until a decision or 
resolution is rendered on the 'application for renewal: Provided, That the 
automatic extension shall not apply when the permit, license or authority covers 
activities which pose danger to public health, public safety, public morals or to 
public policy including, but not limited to, natural resource extraction activities. 
SEC. 10. Report Card Survey. - All offices and agencies providing 
frontline services shall be subjected to a report card survey to be initiated by the 
Civil Service Commission (CSC), in coordination with the Development Academy 
of the Philippines (DAP), which shall be used to obtain feedback on how 
provisions in the Citizen's Charter are being followed and how the agency is 
performing. 
The report card survey shall also be used to obtain information and/or 
estimates of hidden costs incurred by clients to access frontline services which 
may include, but is not limited to, bribes and payment to fixers. 
A feedback mechanism shall be established in all agencies covered by 
this Act and the results thereof shall be incorporated in their annual report. 
SEC. 11. Violations. - After compliance with the substantive and 
procedural due process, the following shall constitute violations of this Act 
together with their corresponding penalties: 
(a) Light Offense - (1) Refusal to accept application andlor request within 
the prescribed period or any document being submitted by a client; 
(2) Failure to act on an application andlor request or failure to refer back 
to the client a request which cannot be acted upon due to lack of requirementls 
within the prescribed period; 
(3) Failure to attend to clients who are within the premises of the office or 
agency concerned prior to the end of official working hours and during lunch 
break; 
(4) Failure to render frontline services within the prescribed period on any 
application andlor request without due cause; 
(5) Failure to give the client a written notice on the disapproval of an 
application andlor request; and 
(6) Imposition of additional irrelevant requirements other than those listed 
in the first notice. 
Penalties for light offense shall be as follows: 
First Offense - Thirty (30) days suspension without pay and mandatory 
attendance in Values Orientation Program; 
Second Offense -Three months suspension without pay; and 
Third Offense - Dismissal and perpetual disqualification from public 
service. 


(b) Grave Offense - Fixing and/or collusion with fixers in consideration of 
economic andlor other gain or advantage. 
Penalty - Dismissal and perpetual disqualification from public service, 
SEC. 12. Criminal Liability forFixers. - In addition to Section 1 l(b), fixers, 
as defined in this Act, shall suffer the penalty of imprisonment not exceeding six 
years or a fine of not less than Twenty thousand pesos (P20,OOO.OO) but not 
more than Two hundred thousand pesos (P200,000.00), or both fine and 
imprisonment at the discretion of the court. 
SEC. 13. Civil and Criminal Liability, Not Barred. - The finding of 
administrative liability under this Act shall not be a bar to the filing of criminal, 
civil or other related charges under existing laws arising from the same act or 
omission as herein enumerated. 
SEC. 14. Administrative Jurisdiction. - The administrative jurisdiction on 
any violation of the provisions of this Act shall be vested in either the CSC, the 
Presidential Anti-Graft Commission (PAGC) or the Office of the Ombudsman as 
determined by appropriate laws and issuances. 
SEC. 15. Immunity; Discharge of Co-RespondentLAccused to be a 
Witness. - Any public official or employee or any person, having been charged 
with another under this Act and who voluntarily gives information pertaining to 
an investigation or who willingly testifies therefore, shall be exempt from 
prosecution in the case/s where hislher information and testimony are given. The 
discharge may be granted and directed by the investigating body or court upon 
the application or petition of any of the respondentlaccused-informant and 
before the termination of the investigation: Provided, That: 
(a) 
There 
is 
absolute 
necessity for 
the 
testimony 
of 
the 
respondentlaccused-informant whose discharge is requested; 
(b) There is no other direct evidence available for the proper prosecution 
of the offense committed, except the testimony of said respondentlaccused- 
informant; 
(c) The testimony of said respondentlaccused-informant can be 
substantially corroborated in its material points; 
(d) The respondent/accused-informant has not been previously convicted 
of a crime involving moral turpitude; and 
(e) Said respondentlaccused-informant does not appear to be the most 
guilty. 
Evidence adduced in support of the discharge shall automatically form 
part of the records of the investigation. Should the investigating body or court 
deny the motion or request for discharge as a witness, his/her sworn statement 
shall be inadmissible as evidence. 
SEC. 16. Implementing Rules and Regulations. - The Civil Service 
Commission, in coordination with the Development Academy of the Philippines, 
the Office of the Ombudsman and the Presidential Anti-Graft Commission, shall 
promulgate the necessary rules and regulations within ninety (90) days from the 
effectivity of this Act. 
SEC. 17. Separability Clause. - If any provision of this Act shall be 
declared invalid or unconstitutional, such declaration shall not affect the validity 
of the remaining provisions of this Act. 


SEC. 18. Repealing Clause. - All provisions of laws, presidential 
decrees, letters of instruction and other presidential issuances which are 
incompatible or inconsistent with, the provisions of this Act are hereby deemed 
amended or repealed. 
SEC. 19. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in two national newspapers of general 
circulation. 
Approved,