Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
Second Regular Session

a.
HOUSE BILL No. 8694

Introduced by Representative MARIO VITTORIO A. MARINO

AN ACT
RIGHTSIZING THE NATIONAL GOVERNMENT TO IMPROVE PUBLIC
SERVICE DELIVERY

EXPLANATORY NOTE

In the midst of challenges facing the public sector such as the global pandemic, the
consequent economic downturn and scarce resources, our government has to focus its efforts
on its core governance functions and improve its performance on the same.

There is a need to attain improved government performance and to institute reforms
that would transform the bureaucracy into an efficient and results-oriented structure;

This bill proposes to implement a rightsizing program in the National Government for
the purpose of enhancing the government’s institutional capacity to improve public service
delivery.

Itwill also further ensure the long term sustainability of our government service through
resource mobilization and cost effective public expenditure management.

In view thereof, the immediate approval of this bill is highly recommended.

VITTORIO A. MARINO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No._ 8694

Introduced by Representative MARIO VITTORIO A. MARINO

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 “Rightsizing the National
Government Act.”

SEC. 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.

SEC. 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 (LGUs) 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 Governance Commission for GOCC (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.

SEC. 4. Principles and Guidelines. - The National Government shall implement a

Rightsizing Program in accordance with the following principles and guidelines:

a)

b)

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8)

h)

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;

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

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;

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;

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

The organizational structure of 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

mandate and functions.
SEC. 5. Authority of the President of the Philippines to Rightsize the Operations
of the Executive 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)

b)

To pursue the following functional shifts/modifications:

)

2

3)

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;

scale down, phase out, eliminate or discontinue functions, programs,
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

transfer/integrate functions from one agency to another which can better

perform the same.

To undertake the following organizational actions:

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2

3)

b4

bS

regularize ad hoc offices whose functions are vital and significant, thus
must be continually undertaken by the government;

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;

split agencies with multifarious functions which are deemed distinct and
equally serve important aspects of governance;

transfer offices to other agencies wherein their functions are more
aligned; and

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 they were
originally created; (iii) which are not cost-effective since they do not
generate the desired levels 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.


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;

e) To formulate an organizational development program to strengthen the
institutional capacity of the agencies and improve productivity of employees.

SEC. 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 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 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.

SEC. 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 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 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;

2) To engage the services of experts/consultants, through the DBM, to assist the
Committee and its Sub-Committees in the performance of their functions; and

h) To formulate the implementing rules and regulations (IRR) of this Act.

SEC. 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.

SEC. 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.

SEC. 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 RA 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



b)

2) _ Retirement benefit under RA No. 660 (An Act to Amend 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 RA 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 RA 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 RA No. 1616 benefits.

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 (24) 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.

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 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 RA No. 8291, the
portability scheme under RA 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.

SEC. 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.

SEC. 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.

SEC. 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 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 program who undertake in consultancy
services for the government shall be governed by Section 7 of RA No. 6713 (Code of Conduct
and Ethical Standards for Public Officials and Employees)

SEC. 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 House Committee on
Appropriations.

SEC. 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.

SEC. 16. Report to Congress. - The President shall submit a report to Congress on
the results of the Program after the completion of its implementation,

SEC. 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.

SEC. 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.


SEC. 19. Provisions 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.

SEC. 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.

SEC. 21. Separability Clause. - If any provision of this Act is declared

unconstitutional or invali¢

the other provisions not otherwise affected shall remain in fall force
and effect.

SEC. 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.

SEC. 23. Effectivity.- This Act shall take effect take effect fifteen (15) days after its

publication in the Official Gazette or in any newspaper of general circulation.