SIXTEENTH CONGRESS·OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
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) 
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SENATE 
S. RNo. 586 
Introduced by Senator FRANCIS G. ESCUDERO 
EXPLANATORY NOTE 
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It shall be the policy of the State to protect and promote the welfare, rights and 
interests of government-owned and -controlled corporations, their subsidiaries, other 
corporate off springs, including government acquired asset corporations, government 
corporate entities. and government instrumentalities with corporate powers, 
government financial institutions, and. other government entities, agencies and offices 
hereafter referred to as "government corporations". 
Executive Order No. 292, otherwise known as the Administrative Code of 1987, 
has defined the mandate of the Office of the Government Corporate Counsel (OGCC) 
. as the premier law office of government-owned and controlled corporations (GOCCs), 
their subsidiaries, other corporate offspring and government-acquired asset 
corporations. As such, it is mandated to safeguard their legal interests in a competent, 
speedy and adequate legal service in its commitment to uphold justice under the rule 
of law. 
Every year, an increasing number of requests for legal advice and cases is being 
responded to and handled by the OGCC, in addition to the performance of its 
adjudicatory and other functions. 
To efficiently and effectively address the expanding needs of these government 
corporations, this proposed bill seeks to strengthen the OGCC by re-defining, 
expanding, strengthening, rationalizing and further professionalizing the OGCC as an 
organization and upgrading the employee benefits. 
In view thereof, the approval of this proposed bill is earnestly sought!. • 
«~-
. FRANCIS G. ESCUDERO 


SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
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) 
) 
SENATE 
S. B. No. --<.1586 
Introduced by Senator FRANCIS G. ESCUDERO 
AN ACT 
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TO STRENGTHEN THE OFFICE OF THE GOVERNMENT CORPORATE 
COUNSEL, BY RE-DEFINING, EXPANDING, STRENGTHENING, 
RATIONALIZING AND FURTHER PROFESSIONALIZING IT~ . 
ORGANIZATION, UPGRADING EMPLOYEE BENEFITS AND APPROPRIATING 
FUNDS THEREFOR 
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Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. Declaration of Policy - It shall be the policy of the State to protect 
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and promote the welfare, rights and interests of government-owned and -controlled 
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corporations, their subsidiaries, other corporate offsprings, including government 
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acquired asset corporations, government corporate entities and government 
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instrumentalities with corporate powers, governnient financial institutions, and other 
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government entities, including economic zones and state universities, referred to as 
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." government corporations". 
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. Toward this end, the State shall require the improvement of legal services to 
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efficiently and effectively address the expanding needs of these government 
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corporations in accordance with its initiative towards an improved fiscal management 
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and good corporate governance. 
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SECTION 2. Jurisdiction and Mandate 
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Any law to the . contrary 
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notwithstanding, the Office of the Government Corporate Counsel ("OGCC") shall be 
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the legal counsel and principal law office of all government corporations. All 
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government corporations shall refer to the OGCC the following: 
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a) All legal questions for opinion and advice; 
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b) Prior to their execution, all contracts for review; and 
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c) All cases for representation before regular courts,quasi-judicial bodies, 
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administrative agencies and arbitral tribunals, provided that, the Government 
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Corporate Counsel ("GCC") may thereafter authorize the government 
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corporation's legal department as collaborating counsel to handle cases, as the 
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urgency or expediency of circumstances may warrant. 
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Moreover, as special and additionalduties, the OGCC shall: 
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a) Conciliate, mediate, act as hearing officers or adjudicate all disputes or 
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controversies exclusively between government corporations; 
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b) Exercise control "and supervision over the legal departments of all government 
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corporations; 
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c) Approve the engagement of private lawyers by the government corporations; 
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d) Serve as Corporate Secretary in all boards of government corporations; and 
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e) Perform such other special works or functions necessary in the interest of the 
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service. 
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The aGCC shall be an independent and autonomous office attached to the 
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Department of Justice. All opinions and issuances of the aGCC shall be binding on all 
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government corporations. 
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SECTION 3. Expansion and Upgrading of Positions - The GCC shall have a 
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cabinet rank and the sam~ prerogatives, salary, allowances, benefits and privileges as 
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the Presiding Justice of the Court of Appeals. He/she shall be assisted by a Deputy 
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Government Corporate Counsel ("DGCC") and twelve (12) Assistant Government 
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Corporate Counsels (" AGCC") who shall have the rank,salary, allowances, retirement 
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benefits, and privileges of an Associate Justice of the Court of Appeals. 
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No person shall be appointed GCC, DGCC or AGCC unless he/she is a natural-
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born citizen of the Philippines and, for at least fifteen (15) years, has been engaged in 
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the practice of law in the Philippines. The number, rank, qualifications for 
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appointment, salary, allowances, retirement and other benefits, and privileges of the 
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other members of the legal staff shall be as follows: 
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(a) Twenty (20) Government Corporate Attorney IV ("GCA IV") who shall have 
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the rank, salary, allowances, retirement benefits, and privileges of a Regional 
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Trial Court Judge'~ No person shall be appointed GCA IV unless he/ she is a 
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natural-born citizen of the Philippines and, for at least ten (10) years, has 
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been engaged in the practice of law in the Philippines; 
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(b) Twenty (20) Government Corporate Attorney III ("GCA III") who shall have 
the rank, salary, allowances, retirement· benefits, and 
privil~ges of a 
Metropolitan Trial Court Judge. No person shall be appointed GCA III 
unless he/ she is a natural-born citizen of the Philippines and, for <it least five 
(5) years; has been engaged in the practice of law in the Philippines; 
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(c) Twenty (20) Government Corporate Attorney II ("GCA II"), who shall have 
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the rank, salary, allowances, retirement benefits, and privileges of a 
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Municipal Trial Court Judge in Cities. No person shall be appointed GCA II 
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unless he/she is a natural-born citizen of the Philippines and, for at least 
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three (3) years, has been engaged in the practice of law in the Philippines; 
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(d) Twelve (12) Government Corporate Attorney I ("GCA 1"). No person shall 
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be appointed GCA I unless he/she . is a natural-born citizen of the 
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Philippines and has been admitted to the Philippine Bar; 
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The GCC, DGCC and AGCC shall be appointed by the President of the 
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Philippines. The other members of the legal staff and administrative personnel shall 
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be appointed by the GCe. Appointments of the DGCC, AGCC and other members of 
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the legal staff shall be deemed permanent upon compliance with the prescribed 
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qualification standards under this law. 
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The administrative structure of the OGCC shall be organized into the Finance 
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and Accounting Services, the Human Resource and Management Services, the Case 
4. and Records Management Services, the Library Management and Information 
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Technology Services and the Property and Supply Services. 
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The legal and non-legal staff of the OGCC occupying the positions affected by 
the changes embodied in this Act at the time of its approval shall thereafter occupy 
and discharge the duties and functions of the upgraded positions and receive and 
receive the corresponding salary, benefits and privileges without necessity of new 
appOintment. 
SECTION 4. Compensation - The basic monthly compensation of ife OGCC 
employees shall be as follows: 
Position 
Salary Grade . 
From 
To 
Government Corporate Counsel 
30 
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DeputY Government Corporate Counsel 
29 
30 
Assistant Government Corporate Counsel 
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Gover,nment Corporate Attorney IV 
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Government Corporate Attorney III 
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Government Corporate Attornev II 
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Government Corporate Attorney I 
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The non-legal personnel shall have the same compensation as that of their 
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counterparts in the Office of the Solicitor General and Court of Appeals. 
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The salaries, benefits and privileges of the personnel of the OGCC granted 
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under this Act shall further be increased to match any corresponding increase in 
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salaries and privileges subsequently granted to their respective counterparts in the 
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judiciary. 
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SECTION 5. Personnel benefits and privileges - Provisions of other laws to the 
contrary notwithstanding,. the OGCC may. provide its employees the following 
benefits: 
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I. 
Health care services through a health maintenance organization (HMO). 
Expenses for tl1.e mandatory medical annual check-up of the GCC, the 
DGCC and the AGCC shall be for the account of the office. 
II. 
Accident insurance for all employees to be procured by the office at its own 
expense for travels while in the performance of official duties; 
III. 
Without prejudice to the effiCiency of the service, scholarships for deserving 
employees on official time and at the expense of the office to upgrade their 
knowledge and skills; provided that, scholars under this provision shall be 
selected on the basis of merit as determined by competitive examination; 
IV. 
A provident fund which shall consist of, but not be limited to contributions 
made by the office and by its lawyers and employees to a comm~n fund for 
the payment· of benefits to such lawyers or employees or their' respective 
beneficiaries/heirs. 
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SECTION 6. Seminar and other Professional Fees - Subject to availability of funds, 
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fees for relevant seminars, as well as professional membership fees for lawyers, 
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registration fees and related miscellaneous expenses incurred in completing the 
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mandatory continuing legal education (MCLE) shall be borne by the office. 
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' Professional membership, registration fees including those for mandatory continuing 
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professional education (CPE), and related miscellaneous expenses of other employees 
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holding positions for which a professional license is required by the office, shall also 
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be borne by the OGCe. 
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SECTION 7. Transportation Benefits - Subject to availability of funds, employees 
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shall be provided with contracted transportation services until such time that the 
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office can procure additional motor vehicles for this purpose. 
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SECTION 8. Other, Benefits - Provisions of other laws to the contrary 
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notwithstanding, the legal, staff of the OGCC are allowed to receive allowances, 
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honoraria and reimbursement of reasonable expenses from the government 
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corp9rations. Employees of the OGCC may likewise be extended such benefits and 
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privileges as are given to the employees of their clients. 
Provided, That such 
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allowances or honoraria shall not exceed one hundred percent (100%) of their basic 
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salary as provided under the Salary Standardization Law (Republic Act 6758). 
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In addition, any member of the legal staff may be designated by the GCC to act 
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in a concurrent capacity a~ corporate secretary of, or assigned to perform special or 
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additional tasks in, any of the government corporations and by virtue of such 
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designation or assignment; receive such additional compensation and privileges as 
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maybe granted them by the concerned governmel1t corporation. 
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SECTION 9. Attorney's fees and Special Assessment. - The aGCC is authorized to 
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receive twenty percent (20%) 
of all' the money claims 
collecte~ by, or 
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awarded/ adjudged to government 'corporations in addition to the attorney's fees 
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awarded by a court, tribunal or panel, including awards/judgments, stipulAted under 
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court~approved compromises. 
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The OGCC is hereby authorized to use such awards and attorneys fees to meet 
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contingencies, obligations and undertakings, or for employee salaries, allowances, 
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other benefits and incentives in Section 5 hereof, necessary or proper to promote 
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efficiency in the service:'as determined by the GCe. 
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The GCC is likewise authorized to make special assessments upon GaCCs to 
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similarly meet such contingencies, obligations and undertakings, or to provide for 
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employee salaries, allowances, other benefits and incentives, as may be warranted or 
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proper as determined by the GCe. 
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Attorney's fees and special assessments shall be deposited in an authorized 
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government depository as a trust liability and shall be made available for expenditure 
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Without the need for a Cash Disbursement Ceiling, for purposes of upgtading facilities 
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and equipment, granting of employees' incentive pay and' other benefits, and 
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defraying such other incentive expenses not provided for in the General 
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Appropriations Act as may be determined by the GCe. In both cases, the usual 
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accounting and auditing pr()cedures shall apply. 
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,SECTION 10. 
Fr~nking Privilege - All official matters and telegrams of the 
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aGCC addressed for delivery within the Philippines shall be received, transmitted 
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and delivered free of charge. 
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SECTION 11. Appropriations - The amount needed for employees' salaries, 
mandatory allowances and benefits under other laws, maintenance and other 
operating expenses and capital outlay shall be appropriated in the budget of the 
OGCC under the annual General Appropriations Act. 
SECTION 12. ,Implementing Rules and Regulations -Within sixty (60) hays from 
the approval of this Act, the GCC, in consultation with the Secretary of the Jlustice and 
Secretary of Budget and Management, shall promulgate such rules and regulations as 
may be necessary to carry out the provisions of this Act. 
SECTION 13. Repealing Clause- Provisions of Presidential Decree No. 1415 
dated June 9, 1978 Other provisions of Presidential Decree 1415, Executive Order 292 
or the Revised Administrative Code of 1987, as amended, Executive Order 878 dated 
March 4,1983, Republic Act 6000 dated August 4,1969 and other pertinent laws rules 
and regulations shall remain in force and effect unless otherwise contrary or 
inconsistent with the provisions of this Act. 
SECTION 14. Separability Clause -If any of the provisions of this Act is declared 
invalid or unconstitutional; the provisions not affected thereby shall continue to be in 
full force and effect. 
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SECTION 15. Effectivity - This Act shall take effect after fifteen (15) days from 
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its publication in the Official Gazette or in a national newspaper of general circulation. 
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Approved, 
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