AN ACT REENGINEERING THE GOVERNMENT BUREAUCRACY FOR BETTER GOVERNANCE,

APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES

Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City
ELEVENTH CONGRESS
Second Regular Session
House Bill No.   9103
(in substitution of House Bill Nos. 664, 667, 1444, 1495, 6577,
and House Resolution No. 188)
Introduced by Honorable Albano III, Teodoro Jr., Cojuangco, Golez, Herrera (E.F.), Verceles,
Jr., Alvarez (H), Aumentado, Ramiro, Gonzales (J.), Cosalan, Loreto-Go, Enrile, Tuazon,
Lorenzo-Villareal, Suplico, Gullas, Monfort, Echeverri, Silverio, and Duavit
AN ACT
REENGINEERING THE GOVERNMENT BUREAUCRACY FOR BETTER GOVERNANCE,
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:
            SECTION 1.  Title.  -  This Act shall be known as the “Act to Reengineer the
Government Bureaucracy for Better Governance.”
            SEC. 2.  Declaration of Policy.  -  It is hereby declared the policy of the State to
maintain an efficient, effective, professionalized, and properly compensated bureaucracy
whose scope and focus of functions, programs, and activities support national development
goals and efforts, and whose size and organizational structure promote economy,
productivity, innovation, responsiveness and service to the general public.
            SEC. 3.  Scope of Reengineering.  -  The reengineering shall cover all entities and
offices of the Executive Branch of the government, including departments and their
respective bureaus, offices, attached agencies, commissions, boards, councils, authorities,
including government-owned and/or controlled corporations, state universities and colleges,
and all other instrumentalities of the Executive Branch.
            SEC. 4.  Reengineering Principles and Guidelines.  -  The reengineering of the
Executive Branch shall be carried out in accordance with the following principles and
guidelines:
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.  Such
determination shall be guided by the following policy statements:
Government shall give priority to the strengthening of its fundamental functions. 
These include:
Effective macro-economic management, including the formulation and
implementation of socio-economic, fiscal, and monetary policies;
Maintenance of peace and order, and national and political security;
Conservation of natural resources and ensuring their productive
utilization and development for the national welfare;
Maintenance of an effective and reliable system of administering justice,
lawmaking, and law enforcement;
Provision of quality basic and secondary education, especially to the
poor and disadvantaged population;
Provision of adequate and appropriate infrastructure;
 Promotion of economic and political diplomacy to achieve sound and
mutually productive economic and political relations with other
nations and international communities;
Promotion of total human development; and
Disaster mitigation and effective management of state emergencies and
calamities.
The role of government in the various sectors shall be to steer and mobilize the
instruments that contribute to achieving sectoral objectives.  To this end, the
government shall focus its sectoral functions on:
Policy setting, monitoring and assessment;
Promotion and advocacy;
Provision of information and linkages or access to markets, services and
production inputs and outputs;
Provision of assistance and incentives to equalize and level the playing
field;
Enforcement of appropriate rules and regulations; and,
Provision of safety nets of adversely-affected sectors of the population.
To the extent possible, government shall limit direct provision, production and
delivery of goods and services and encourage more private sector
participation.  The criteria for the determination of direct provision,
production and delivery of goods and services by government shall be
established.
The national government shall assist, supervise and monitor local government units to
complement the greater autonomy granted to them.  The delineation of
responsibilities between the national government and local government units in the
provision, production and delivery of goods and services shall be clearly defined and
agreed upon.  The criteria of such delineation shall be established.
The national government shall adopt a structural framework that will define the vertical
and 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 organizations, which will guide the
determination of the organizational configuration and proper grouping of agencies.
The Executive Branch shall streamline its systems and procedures to facilitate and
improve the relevance and quality of frontline services, and improve policy
formulation, planning and performance evaluation.  These systems and procedures
shall be designed within the context of decentralized decision-making and authority
within the Executive Branch and its Departments, agencies, bureaus, offices and other
instrumentalities.
SEC. 5.  Authority to Reengineer.  -  The President of the Philippines is hereby given
the authority to reengineer the Executive Branch in accordance with the policy, principles,
guidelines and time frame stipulated in this Act.  Such authority shall include the following:
To adopt structural, sectoral and operating systems frameworks, and the corresponding
implementing guidelines, rules and criteria which define the overall and specific
objectives and hierarchical and functional structures of the Executive Branch, the
delineation of national-local responsibilities, the focus of the mandates and functions
of sectoral departments and all other agencies of the Executive Branch, and the
strategy to streamline and upgrade the operating systems of government;
 To create, abolish, merge, integrate, restructure or establish departments, bureaus, offices,
agencies and government-owned and/or controlled corporations; eliminate
overlapping, duplication, proliferation and diffusion of functions, programs, projects,
appropriations, equipment, properties, records, personnel, and transactions from one
agency to another;
To adopt a government staffing and compensation policy and a human resource
development strategy, including the creation, classification and abolition of positions,
hiring of personnel and upgrading of compensation structures, as well as
rationalization of incentives and rewards systems; and
To adopt and enforce the necessary guidelines, rules and regulations to promote
efficiency, achieve effectiveness and effect economy in government.
SEC. 6.  Implementation of Reengineering.  -  The Executive-Legislative Committee
on Streamlining the Bureaucracy (ELCSB) is hereby constituted to assist the President in the
drafting and implementation of the reengineering of the Executive Branch, in accordance
with the provisions of this Act.
            The ELCSB shall be composed of the Executive Secretary representing the
President as Chairman; the Secretary of Department of Budget and Management
(DBM); the Director-General of the National Economic and Development Authority
(NEDA); the Chairman of the Civil Service Commission (CSC); the Chairman of the
Senate Committee on Civil Service and Government Reorganization; the Chairman of
the Senate Committee on Government Corporations and Public Enterprises; the
Chairman of the Senate Committee on Finance; the Chairman of the House
Committee on Government Enterprises and Privatization; the Chairman of the House
Committee on Appropriations; the Chairman of the House Committee on Government
Reorganization; one (1) Senator belonging to the Majority party and one (1) Senator
belonging to the party with the biggest representation in the Minority, both of whom
shall be appointed by the Senate President; one (1) House Member belonging to the
Majority and one House Member belonging to the party with the biggest
representation on Minority both of whom shall be appointed by the Speaker of the
House of Representatives, as Members; PROVIDED, HOWEVER, That in the event
that the subject matter under consideration by the ELCSB falls within the jurisdiction
of any standing Committee of the Senate and the House of Representatives, the
Chairperson of that standing Committee shall be considered as an AdHoc member of
the ELCSB.
            A secretariat and technical staff shall be formed to provide administrative
support and technical assistance to be composed of the existing secretariat of the
Committees of the Senate and House of Representatives and the Executive agencies
composing the ELSCB, to be complemented by contractual personnel, as necessary.
            SEC. 7.  Impact Mitigation Program for Redundant Personnel.  -  The ELCSB shall
formulate and adopt an impact mitigation program for personnel whose policies may be
declared redundant as a result of the reengineering provided in this Act.  The program shall
include the formulation of technical and objective criteria for the identification of redundant
positions and the incumbents therein, the establishment and operation of a government
manpower pool, and the re-tooling, re-training, and subsequent re-deployment of qualified
personnel to appropriate positions in the newly reengineered agencies.
            Under this program, redundant personnel may be retained or shall be
retired/separated from service, subject to the following general guidelines:
Redundant personnel who are qualified for re-training/re-tooling, as determined by the
agency based on the criteria as developed/prescribed by the ELCSB, has the option to be
retained.  If they chose to be retained, they shall be deployed in a government manpower
 pool to undergo re-tooling/re-training for subsequent appointment to the new staffing
pattern of the reengineered agencies.
Personnel in the manpower pool shall be covered by the following guidelines:
They shall continue to receive the basic salaries and other compensation common to
all, except for Representation and Transportation Allowances, miscellaneous and
extraordinary expenses, and other special allowances given to specific groups, for
one year from the day their positions are officially declared redundant.
An employee may be allowed to leave the government service before the expiration
of one year, and be paid the corresponding retirement benefits under applicable
laws or separation benefits under Republic Act No. 6656: Provided, That the
corresponding remuneration paid to him and the expenses incurred by the
government while he was in the manpower pool shall be deducted from whatever
benefits he will receive.  The computation of retirement or separation benefits
shall be based on a new salary schedule that will be adopted by the National
Government.
Personnel who have been trained and accordingly placed in any position in the
government may be allowed to be separated from the service only after he has
rendered at least three years of government service under the new setup. 
Otherwise, provision under Section 7b2) shall be proportionately applied.
Redundant employees who may be retired or separated from the service shall be granted
corresponding benefits.  If they are already eligible for retirement under existing laws,
they shall be granted retirement benefits.  If not, they shall be entitled to separation
benefits equivalent to one month basic salary for every year of government service,
pursuant to the provisions of Republic Act No. 6656.  For this purpose, the computation
of retirement or separation benefits, as the case may be, shall be based on a new salary
schedule that will be adopted by the National Government.
SEC. 8.  Need for Notice and Hearing.  -  Notwithstanding the exercise of the
authority delegated herein, the President, through his duly designated representatives, shall
ensure that the government employees who would be separated or removed from the
services as a result of the reengineering shall be given prior notice on the reasons for such
action and the right to be heard thereon.  Officers and employees may exercise their right
to be heard within fifteen (15) calendar days from the receipt of notice.
SEC. 9.  Appeals Board.  -  An Appeals Board shall be created to be the venue for
complaints of employees deemed unjustly affected by the reengineering.  The Board shall
be composed of the following:
the Chairman of the Civil Service Commission, as Chairman;
an Undersecretary of the Department of Budget and Management, as permanent
member;
a Commissioner of the Civil Service Commission, as permanent member;
an Undersecretary representing the management of the department/agency being
heard, as non-permanent member; and
a duly-elected representative of the employees in the department/agency being
heard, as non-permanent member.
Both permanent and non-permanent members shall have equal voting rights in the Appeals
Board.
The Appeals Board shall have the power to enforce its decision, including the
reinstatement of an employee who may be found to have been unjustly terminated or
reassigned in the process.  Although a decision has already been rendered by the Appeals
Board, no employee shall be prevented from further appealing his case to the appropriate
Courts.
SEC. 10.  Timeframe for Reengineering.  -  The President shall implement and effect
the provisions of this Act within six (6) months from approval thereof.  Any reengineering
effected under this Act shall be for the entire Executive Department and shall be exercised
only once.
SEC. 11.  Continuing “Scrap-and-Build” Policy of the Government.  -  After the
reengineering of the Executive Branch is fully implemented, the National Government shall
adopt a continuing “scrap-and-build” policy, subject to review and approval of Congress, for
organizational and staffing changes in accordance with the following principles and
guidelines:
The proper scope, level and focus of government intervention, distribution of functions
among levels of government, design of the administrative structure and level of
manpower complement of the Executive Branch shall be established and fixed after the
implementation of the reengineering authorized under this Act.
An agency may be created provided an existing equivalent organizational unit is abolished.
Increases in the personnel/staffing complement of any department or agency of the Executive
Branch shall be allowed only for population sensitive positions such as teaching and
related teaching, uniformed and medical and allied medical positions.
For this purpose, the ELCSB to be established under Section 6 of this Act shall
provide the detailed guidelines on the continuing implementation of the
“scrap-and-build” policy.
            SEC. 12.  Report to Congress.  -  Within three (3) months after the completion of
the reengineering of the Executive Branch, the President of the Philippines shall submit in
writing a report to Congress of the results of such reengineering.
            SEC. 13.  Appropriations.  -  The amount necessary for the initial implementation of
this Act shall be charged against the Contingent Fund and/or any applicable appropriation
items under the current General Appropriations Act.  Thereafter, such sums as may be
needed for the continued reengineering of the bureaucracy shall be included in the annual
General Appropriations Act.
            SEC. 14.  Repealing Clause.  -  All laws, decrees, orders, rules and regulations, and
other issuances which are inconsistent with this Act are hereby repealed or amended
accordingly.
            SEC. 15.  Separability Clause.  -  Should any section or provision of this Act be
declared unconstitutional or invalid, other sections or provisions hereof not so affected shall
continue to be in full force and effect.
            SEC. 16.  Effectivity Clause.  -  This Act shall take effect fifteen (15) days following
its full publication in the Official Gazette and in at least two (2) newspapers of general
circulation.