0 1 6 ra no...2018 by president rodrigo r. duterte date : julrjicia attached is a copy of republic...

Republika ng Pilipinas

KAGAWARAN NG KATARUNGAN

Department of Justice

Manila

MEMORANDUM CIRCULAR NO. 0 1 6

TO The Undersecretaries/Assistant Secretaries

Heads of Bureaus, Commissions and Offices attached to the DOJ

The Prosecutor General/ Prosecution Staff of the Office

Of the SecretaryThe Chief State Counsel/State Counsels

Chiefs of Service and Staff

Staff of the Office of the Secret£^Regional/Provincial/City ProsecbtorsDOJ LibraryAll Concerned

SUBJECT: REPUBLIC ACT NO. 11032 SIGNED AND APPROVED ON 28 MAY

2018 BY PRESIDENT RODRIGO R. DUTERTE

DATE : JULrJiCia

Attached is a copy of Republic Act No. 11032 dated 28 May 2018, signed byPresident Rodrigo R. Duterte entitled "AN ACT PROMOTING EASE OF DOINGBUSINESS AND EFFICIENT DELIVERY OF GOVERNMENT SERVICES,AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9485, OTHERWISE

KNOWN AS THE ANTI-RED TAPE ACT OF 2007, AND FOR OTHER PURPOSES".

Let the certified copy thereof be kept in the DOJ Records Management Section.

For information and guidance.

MENARDO I. GUEVARRA

' Secretary

Depar.menl o' Just ceC:N:0201807D3S

End.; As stated.

S. No. 13 H

H. No. 6579

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Begun and held in Metro Manila, on Monday, the twenty-fourthday of July, two thousand seventeen.

[ Republic Act No. 11032]

AN ACT PROMOTING EASE OF DOING BUSINESS ANDEFFICIENT DELIVERY OF GOVERNMENT SERVICES,AMENDING FOR THE PURPOSE REPUBLIC ACT No'9485, OTHERWISE KNOWN AS THE ANTI-RED TAPEACT OF 2007, AND FOR OTHER PURPOSES

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

Section l. Section 1 of Republic Act No. 9485, otherwiseknown as the "Anti-Red Tape Act of 200T', is hereby amendedto read as follows:

Section l. Short Title. — This Act shall beknown as the Ease of Doing Business and EfficientGovernment Service Delivery Act of 2018."

Sec. 2. Section 2 of the same Act is hereby amendedto read as follows:

"Sec. 2. Declaration of Policy. - It is herebydeclared the policy of the State to promote integrity,accountability, proper management of public affairsand public property as well as to establish effectivepractices, aimed at efficient turnaround of the deliveryof government services and the prevention of graftand corruption in government. Towards this end, theState shall maintain honesty and responsibility amongits public officials and employees, and shall takeappropriate measures to promote transparency in eachagency with regard to the manner of transacting withthe public, which shall encompass a program for theadoption of simplified requirements and proceduresthat will reduce red tape and expedite business andnonbusiness related transactions in government."


"Sec. 3. Coverage. - This Act shall apply to allgovernment offices and agencies including localgovernment units (LGUs), government-owned or-controlled corporations and other governmentinstrumentalities, whether located in the Philippinesor abroad, that provide services covering businessand nonbusiness related transactions as defined inthis Act."


"Sec. 4. Definition of Terms. - As used in thisAct, the following terms are defined as follows:

"(a) Action refers to the written approval ordisapproval made by a government office or agencyon the application or request submitted by anapplicant or requesting party for processing;

"(b) Business One Stop Shop (BOSS) ~ a singlecommon site or location, or a single online website

or portal designated for the Business Permit andLicensing System (BPLS) of an LGU to receive andprocess applications, receive payments, and issueapproved licenses, clearances, permits, orauthorizations;

"(c) Business-related transactions - a set ofregulatory requirements that a business entitymust comply with to engage, operate or continue tooperate a business, such as, but not limited to,collection or preparation of a number of documents,submission to national and local governmentauthorities, approval of application submitted, andreceipt of a formal certificate or certificates, permits,licenses which include primary and secondary,clearances and such similar authorization ordocuments which confer eligibility to operate orcontinue to operate as a legitimate business;

"(d) Complex transactions - applications orrequests submitted by applicants or requestingparties of a government office which necessitateevaluation in the resolution of complicated issues byan officer or employee of said government office, suchtransactions to be determined by the office concerned;

"(e) Fixer - any individual whether or notofficially involved in the operation of a governmentoffice or agency who has access to people workingtherein, and whether or not in collusion with them,facilitates speedy completion of transactions forpecuniary gain or any other advantage or consideration;

"(f) Government service - the process ortransaction between applicants or requesting partiesand government offices or agencies involvingapplications for any privilege, right, reward, license,clearance, permit or authorization, concession, or forany modification, renewal or extension of theenumerated applications or requests which are acted

upon in the ordinary course of business of theagency or office concerned;

"(g) Highly technical application - anapplication which requires the use of technicalknowledge, specialized skills and/or training in theprocessing and/or evaluation thereof;

"(h) Nonbusiness transactions - all othergovernment transactions not falling under Section 4(c) of this Act;

"(i) Officer or employee - a person employedin a government office or agency required to performspecific duties and responsibilities related to theapplication or request submitted by an applicant orrequesting party for processing;

"(j) Processing time - the time consumed byan LGU or national government agency (NGA) fromthe receipt of an apphcation or request with completerequirements, accompanying documents and paymentof fees to the issuance of certification or such siTnilnvdocuments approving or disapproving an apphcationor request;

"(k) Red tape - any regulation, rule, oradministrative procedure or system that is ineffectiveor detrimental in achieving its intended objectivesand, as a result, produces slow, suboptimal, andundesirable social outcomes;

"(1) Regulation - any legal instrument thatgives effect to a government poHcy intervention andincludes licensing, imposing information obUgation,compliance to standards or payment of any form offee, levy, charge or any other statutory andregulatory reqmrements necessary to carry outactivity; and

"(m) Simple transactions - applications orrequests submitted by applicants or requestingparties of a government office or agency which onlyrequire ministerial actions on the part of the publicofficer or employee, or that which present onlyinconsequential issues for the resolution by an officeror employee of said government office."


"SEC. 5. Reengineering of Systems andProcedures. — All offices and agencies which providegovernment services are hereby mandated toregularly undertake cost compliance analysis, timeand motion studies, undergo evaluation andimprovement of their transaction systems andprocedures and reengineer the same if deemednecessary to reduce bureaucratic red tape andprocessing time.

"The Anti-Red Tape Authority, created in thisAct, shall coordinate with all government officescovered under Section 3 of this Act in the review ofexisting laws, executive issuances and localordinances, and recommend the repeal of the sameif deemed outdated, redundant, and adds undueregulatory burden to the transacting public.

All proposed regulations of governmentagencies under Section 3 of this Act shall undergoregulatory impact assessment to establish if theproposed regulation does not add undue regulatoryburden and cost to these agencies and the applicantsor requesting parties: Provided, That whennecessary, any proposed regulation may undergo pilotimplementation to assess regulatory impact.

"Upon effectivity of this Act, aU LGUs andNGAs are directed to initiate review of existingpolicies and operations and commence with the

reengineering of their systems and procedures incompliance with the provisions of this Act, pendingthe approval of the implementing rules andregulations (IRR) thereof."


"Sec. 6. Citizen's Charter. - All governmentagencies including departments, bureaus, offices,instrumentalities, or government-owned and/or -controlledcorporations, or LGUs shall set up their respectivemost current and updated service standards to beknown as the Citizen's Charter in the form ofinformation billboards which shall be posted at themain entrance of offices or at the most conspicuousplace, in their respective websites and in the formof published materials written either in English,Filipino, or in the local dialect, that detail:

"(a) A comprehensive and uniform checklist ofrequirements for each type of application or request;

"(b) The procedure to obtain a particularservice;

"(c) The person/s responsible for each step;

"(d) The maximum time to conclude theprocess;

"(e) The document/s to be presented by theapplicant or requesting party, if necessary;

"(f) The amoxmt of fees, if necessary; and

"(g) The procedure for filing complaints."

Sec. 7. A new Section 7 is hereby inserted after Section6 of the same Act to read as follows:

Sec. 7. Zero-Contact Policy. — Except duringthe preliminary assessment of the request andevaluation of sufficiency of submitted requirements,no government officer or employee shall have anycontact, in any manner, unless strictly necessarywith any applicant or requesting party concerningan application or request. Once the Department ofInformation and Communications Technology (DICT)has completed a web-based software enabled businessregistration system that is acceptable to the publicas mandated under Section 26 of this Act, alltransactions shall be coursed through such system.All government agencies including LGUs shall adopta zero-contact policy."

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Sec. 8. Section 7 of the same Act is hereby renumberedas Section 8 to read as follows:

"SEC. 8. Accountability of Heads of Offices andAgencies. — The head of the office or agency shallbe primarily responsible for the implementation ofthis Act and shall be held accountable to the publicin rendering fast, efficient, convenient and reliableservice. All transactions and processes are deemedto have been made with the permission or clearancefrom the highest authority having jurisdiction overthe government office or agency concerned."

Sec. 9. Section 8 of the same Act is hereby amendedand renumbered as Section 9 to read as follows:

"Sec. 9. Accessing Government Services. -The following shall be adopted by all governmentoffices and agencies:

"(a) Acceptance of Applications or Requests. -

"(1) All officers or employees shall acceptwritten applications, requests, and/or documentsbeing submitted by applicants or requesting partiesof the offices or agencies.

"(2) The receiving officer or employee shallperform a preliminary assessment of the apphcationor request submitted with its supporting documentsto ensure a more expeditious action on theapplication or request. The receiving officer oremployee shall immediately inform the apphcant orrequesting party of any deficiency in the accompanyingrequirements, which shall be limited to thoseenumerated in the Citizen's Charter.

"(3) The receiving officer or employee shallassign a unique identification number to anapphcation or request, which shah be the identifyingnumber for ah subsequent transactions between thegovernment and the applicant or requesting partyregarding such specific apphcation or request.

"(4) The receiving officer or employee shah issuean acknowledgement receipt containing the seal ofthe agency, the name of the responsible officer oremployee, his/her unit and designation, and the dateand time of receipt of such apphcation or request.

"(b) Action of Offices. —

"(1) Ah apphcations or requests submitted shahbe acted upon by the assigned officer or employeewithin the prescribed processing time stated in theCitizen's Charter which shall not be longer thanthree (3) working days in the case of simpletransactions and seven (7) working days in the caseof complex transactions from the date the requestand/or complete apphcation or request was received.

"For apphcations or requests involving activitieswhich pose danger to public health, pubhc safety,pubhc morals, pubhc policy, and highly technicalapphcation, the prescribed processing time shall inno case be longer than twenty (20) working days oras determined by the government agency orinstrumentahty concerned, whichever is shorter.

"The maximum time prescribed above may beextended only once for the same number of days,which shall be indicated in the Citizen's Charter!Prior to the lapse of the processing time, the officeor agency concerned shall notify the apphcant orrequesting party in writing of the reason for theextension and final date of release of the governmentservice/s requested. Such written notification shall besigned by the apphcant or requesting party to serveas proof of notice.

"If the application or request for license,clearance, permit, certification or authorization shallrequire the approval of the local Sangguniojig Bayan,Sangguniafig Panlungsod, or the SangguniangPanlalawigan as the case may be, the Sanggunianconcerned shall be given a period of forty-five (45)working days to act on the application or request,which can be extended for another twenty (20)working days. If the local Sanggunian concerned hasdenied the apphcation or request, the reason for thedenial, as well as the remedial measures that maybe taken by the applicant shall be cited by theconcerned Sanggunian.

In cases where the cause of delay is due toforce majeure or natural or man-made disasters,which result to damage or destruction of documents,and/or system failure of the computerized orautomatic processing, the prescribed processing timesmandated in this Act shall be suspended andappropriate adjustments shall be made.

"(2) No apphcation or request shaU be returnedto the applicant or requesting party withoutappropriate action. In case an apphcation or requestis disapproved, the officer or employee who renderedthe decision shall send a formal notice to theapplicant or requesting party within the prescribedprocessing time, stating therein the reason for thedisapproval. A finding by a competent authority of

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a violation of any or other laws by the applicant orrequesting party shall constitute a vahd ground forthe disapproval of the application or request, withoutprejudice to other grounds provided in this Act orother pertinent laws.

"(c) Denial of Application or Request for Accessto Government Service. - Any denial of applicationor request for access to government service shall befully explained in writing, stating the name of theperson making the denial and the grounds uponwhich such denial is based. Any denial of applicationor request is deemed to have been made with thepermission or clearance from the highest authorityhaving jurisdiction over the government office oragency concerned.

"(d) Limitation of Signatories. - The number ofsignatories in any document shall be limited to amaximum of three (3) signatures which shallrepresent officers directly supervising the office oragency concerned; Provided, That in case theauthorized signatory is on official business or officialleave, an alternate shall be designated as signatory.Electronic signatures or pre-signed license, clearance,permit, certification or authorization with adequatesecurity and control mechanism may be used.

"(e) Electronic Versions of Licenses, Clearances,Permits, Certifications or Authorizations. - Allgovernment agencies covered under Section 3 of thisAct shall, when applicable, develop electronic versionsof licenses, clearances, permits, certifications orauthorizations with the same level of authority asthat of the signed hard copy, which may be printedby the applicants or requesting parties in theconvenience of their offices.

"(f) Adoption of Working Schedules to ServeApplicants or Requesting Parties. - Heads of officesand agencies which render government services shall

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adopt appropriate working schedules to ensure thatall appHcants or requesting parties who are withintheir premises prior to the end of official workinghours are attended to and served even during lunchbreak and after regular working hours.

"(g) Identification Card. - All employeestransacting with the public shall be provided withan official identification card which shall be visiblyworn during office hours.

(h) Establishment of Public Assistance/Complaints Desk. — Each office or agency shallestablish a public assistance/complaints desk in alltheir offices."

Sec. 10. Section 9 of the same Act is hereby amended andrenumbered as Section 10 to read as follows:

"Sec. 10. Automatic Approval or AutomaticExtension of License, Clearance, Permit, Certificationor Authorization. — If a government office or agencyfails to approve or disapprove an original apphcationor request for issuance of hcense, clearance, permit,certification or authorization within the prescribedprocessing time, said application or request shall bedeemed approved: Provided, That all requireddocuments have been submitted and all required feesand charges have been paid. The acknowledgementreceipt together with the official receipt for paymentof all required fees issued to the applicant orrequesting party shall be enough proof or has thesame force and effect of a hcense, clearance, permit,certification or authorization under this automaticapproval mechanism.

"If a government office or agency fails to acton an apphcation or request for renew^ of a hcense,clearance, permit, certification or authorization subjectfor renewal within the prescribed processing time,said license, clearance, permit, certification or

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authorization shall automatically be extended: Provided,That the Authority, in coordination with the CivilService Commission (CSC), Department of Trade andIndustry (DTI), Securities and Exchange Commission(SEC), Department of the Interior and LocalGovernment (DILG) and other agencies which shallformulate the IRR of this Act, shah provide a listingof simple, complex, highly technical applications, andactivities which pose danger to pubHc health, pubHcsafety, public morals or to pubhc policy."

Sec. 11. New sections to be numbered as Sections 11, 12,13, 14, 15, 16, 17, 18 and 19 are hereby inserted after Section9 of the same Act, to read as follows:

"Sec. 11. Streamlined Procedures for theIssuance of Local Business Licenses, Clearances,Permits, Certifications or Authorizations. - TheLGUs are mandated to implement the followingrevised guidelines in the issuance of businesslicenses, clearances, permits, certifications orauthorizations:

"(a) A single or unified business applicationform shah be used in processing new applications forbusiness permits and business renewals whichconsolidates ah the information of the applicant orrequesting party by various local governmentdepartments, such as, but not limited to, the localtaxes and clearances, building clearance, sanitarypermit, zoning clearance, and other specific LGUrequirements, as the case may be, including the fireclearance from the Bureau of Fire Protection (BFP).The unified form shall be made available onlineusing technology-neutral platforms such as, but notlimited to, the central business portal or the city/municipality's website and various channels fordissemination. Hard copies of the unified forms ahalllikewise be made available at ah times in designatedareas of the concerned office and/or agency.

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"(b) A one-stop business facilitation service,hereinafter referred to as the business one stop shop](BOSS) for the city/municipality's business permittingand licensing system to receive and process manualand/or electronic submission of application for license,clearance, permit, certification or authorization shallbe established within the cities/municipalities'Negosyo Center as provided for under Republic ActNo.^^ 10644, otherwise known as the "Go NegosyoAct . There shall be a queuing mechanism in theBOSS to better manage the flow of applicationsamong the LGUs' departments receiving andprocessing applications. LGUs shall implementcolocation of the offices of the treasury, businesspermits andlicensing office, zoning office, includingthe BFP, and other relevant dty/municipahty offices/departments, among others, engaged in starting abusiness, dealing with construction permits.

(c) Cities/Municipalities are mandated toautomate their business permitting and licensingsystem or set up an electronic BOSS within a periodof three (3) years upon the effectivity of this Act fora more efficient business registration processes.Cities/Municipalities with electronic BOSS shalldevelop electronic versions of licenses, clearances,permits, certifications or authorizations with thesame level of authority, which may be printed bybusinesses in the convenience of their offices. TheDICT shall make available to LGUs the software forthe computerization of the business permit andlicensing system. The DICT, DTI, and DILG, shallprovide technical assistance in the planning andimplementation of a computerized or software-enabledbusiness permitting and licensing system.

'(d) To lessen the transaction requirements,other local clearances such as, but not limited to.sanitary permits, environmental and agriculturalclearances shall be issued together with the businesspermit.

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"(e) Business permits shall be valid for a periodof one (1) year. The city/municipaHty may have theoption to renew business permits within the firstmonth of the year or on the anniversary date of theissuance of the business permit.

"(f) Barangay clearances and permits related todoing business shall be applied, issued, and collectedat the city/municipality in accordance with theprescribed processing time of this Act: Provided,That the share in the collections shall be remitted

to the respective barangays.

"The pertinent provisions of Republic Act No.7160, otherwise known as "The Local Government

Code of 1991", specifically Article IV, Section 152(c)is hereby amended accordingly."

"Sec. 12. Streamlined Procedures for SecuringFire Safety Evaluation Clearance (FSEC), FireSafety Inspection Certificate (FSIC), andCertification of Fire Incidents for Fire Insurance. -For the issuance of FSEC, FSIC, and certificationof fire incidents, the following shall be adopted tomake business permitting more efficient:

"(a) Issuance of FSEC and FSIC shall in nocase be longer than seven (7) working days;

"(b) For new business permit application, theFSIC already issued during the occupancy permitstage shall be sufficient as basis for the issuance ofthe FSIC for a business entity as a requirement forthe business permit;

"(c) For renewal of business permit, the BFPshall, within three (3) working days fi:om application,present the FSIC to the city/municipahty, either thruthe copy of the FSIC or the negative/positive list:Provided, That the business entity shall inform theBFP and submit the necessary documentary

requirements if renovations, modifications or anyform of alterations are made to the original buildingstructure thirty (30) working days before theexpiration of the business permit;

"(d) If the BFP fails to furnish the city/municipality with an FSIC or to inform the samethrough the negative/positive list within three (3)working days from the application of businessrenewal, the business entity shall be deemed to havea temporary valid FSIC and, therefore, shall serveas the basis for the automatic renewal of thebusiness permit;

"(e) Issuance of the certification of fire incidentfor fire insurance purposes shall in no case be longerthan twenty (20) working days, and may be extendedonly once for another twenty (20) working days;

(f) The BFP or any of its officials or employeesshall not sell, offer to sell, or recommend specificbrands of fire extinguishers and other fire safetyequipment to any applicant or requesting party orbusiness entity. Any violation thereof shall bepunishable by imprisonment of one (1) year to six(6) years and a penalty of not less than Five hundredthousand pesos (P500,000.00), but not more thanTwo million pesos (P2,000,000.00);

"(g) The BFP shall colocate with the BOSS orin an appropriate area designated by thecity/municipality within its premises to assess and•collect the fire safety inspection fees;

"(h) The BFP may enter into agreements withcities/municipalities, allowing the latter to bedeputized as assessors and/or collecting agents forthe fire safety inspection fees; and

(i) The BFP shall develop and adopt an onlineor electronic mechanism in assessing fees, collecting/

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accepting payments and sharing/exchange of otherrelevant data on business permit processing.

"The pertinent provisions of Republic Act No.9514, otherwise known as the "Revised Fire Code ofthe Philippines of 2008", are hereby amendedaccordingly."

"Sec. 13. Central Business Portal (CEP). - Toeliminate bureaucratic red tape, avert graft andcorrupt practices and to promote transparency andsustain ease of doing business, the DICT shall beprimarily responsible in establishing, operating andmaintaining a GBP or other similar technology, asthe DICT may prescribe.

"The CBP shall serve as a central system toreceive applications and capture application datainvolving business-related transactions, includingprimary and secondary licenses, and businessclearances, permits, certifications or authorizationsissued by the LGUs: Provided, That the CBP mayalso provide links to the online registration orapplication systems established by NGAs.

"The DICT, upon consultation with theNational Privacy Commission (NPC), NGAs andLGUs shall issue rules and guidelines on thefollowing: (a) the establishment, operation andmaintenance of the CBP; and (b) the use of electronicsignatures.

"The DICT is hereby mandated to implementan Interconnectivity Infrastructure DevelopmentProgram for interconnectivity between and amongNGAs and LGUs.

"The DICT, in coordination with otherconcerned NGAs and LGUs, shall also conductinformation dissemination campaigns aimed towardsraising public awareness on the existence of the CBP

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and the improved access to and effective utilizationof the program."

"SEC. 14. Philippine Business Databank (PBD).- Within a period of one (1) year from the effectivityof this Act, the DICT, in coordination with theconcerned agencies, shall establish, manage andmaintain a PBD which shall provide the concernedNGAs and LGUs access to data and information ofregistered business entities for purposes of verifyingthe validity, existence of and other relevantinformation pertaining to business entities. Allconcerned NGAs and LGUs shall either link theirown database with the system or periodically submitto the system updates relevant to the informationregistered with them.

"The DICT, in consultation with the DTI, SEC,Cooperative Development Authority (CDA), NPciDILG, LGUs, and other concerned agencies, shallissue the IRR on the development, management,operation and maintenance of the PBD within three(3) months from the effectivity of this Act.

"Documents already submitted by an apphcantor requesting party to an agency which has accessto the PBD shall no longer be required by otherNGAs and LGUs having the same access.Documents or information shall be crosschecked andretrieved in the PBD.

"At the local government level, the city ormunicipal business process and licensing office shallnot require the same documents already provided byan applicant or requesting party to the localgovernment departments in connection with otherbusiness-related licenses, clearances, permits,certifications or authorizations such as, but notlimited to, tax clearance, occupancy permit andbarangay clearance."

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"Sec. 15. Interconnectiuity InfrastructureDevelopment. - In order to expedite the processingof licenses, clearances, permits, certifications orauthorizations, the Authority, together with theDICT, shall develop a fast and reliableinterconnectivity infrastructure. In relation to this,the processing and approval of hcenses, clearances,permits, certifications or authorizations for theinstallation and operation of telecommunication,broadcast towers, facilities, equipment and serviceshall be:

(a) a total of seven (7) working days for thoseissued by the barangay;

"(b) a total of seven (7) working days for thoseissued by LGUs; and

"(c) seven (7) working days for those issued byNGAs.

"If the granting authority fails to approve ordisapprove an application for a license, clearance,permit, certification or authorization within theprescribed processing time, said application shall bedeemed approved: Provided, That when the approvalof the appropriate local legislative body is necessary,a nonextendible period of twenty (20) working daysis hereby prescribed.

"For homeowners and other communityclearances, the officers of the homeowners associationshall be given ten (10) working days to refer theapplication to the members of the associationpursuant to Section 10(k) of Republic Act No. 9904,otherwise known as the "Magna Carta forHomeowners and Homeowners Associations":Provided, That a nonextendible period of thirty (30)working days is granted the homeowners associationto give its consent or disapproval: Provided, further.

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That in case of disapproval, the granting authorityshall notify the applicant or requesting party withinthe prescribed period of the reason/s for disapprovalas well as remedial measures that may be taken bythe applicant or requesting party.

Within three (3) months upon the approval ofthe IRR of this Act, the Authority, in coordinationwith the DICT, shall review and recommend therepeal of outdated, redundant and unnecessarylicenses, clearances, permits, certifications orauthorizations being required by NGAs, LGUs, andprivate entities."

Sec. ̂16. Anti-Red Tape Unit in the CivilService Commission (CSC). - The GSC shallmaintain an anti-red tape unit in its central and allits regional offices, utilize Report Card Surveyfindings for purposive and integrated government-wide human resource systems and programs towardefficient delivery of government service ascontemplated in this Act; and receive, review, hear,and decide on complaints on erring governmentemployees and officids and noncompliance with theprovisions of this Act."

"Sec. 17. Anti-Red Tape Authority. - To ensurethe attainment of the objectives of this Act, there ishereby created the Anti-Red Tape Authority, hereinreferred to as the Authority, which shall be organizedwithin six (6) months after the effectivity of this Act.The Authority shall be attached to the Office of thePresident.

The Authority shall have the following powersand functions:

(a) Implement and oversee a national pohcy onanti-red tape and ease of doing business;

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"(b) Implement various ease of doing businessand anti-red tape reform initiatives aimed atimproving the ranking of the Philippines;

"(c) Monitor and evaluate the compliance ofagencies covered under Section 3 of this Act, andissue notice of warning to erring and/or noncomplyinggovernment employees or officials;

(d) Initiate investigation, motu proprio or uponreceipt of a complaint, refer the same to theappropriate agency, or file cases for violations of thisAct;

"(e) Assist complainants in filing necessary caseswith the CSC, the Ombudsman and other appropriatecourts, as the case may be;

"(f) Recommend policies, processes and systemsto improve regulatory management to increase theproductivity, efficiency, and effectiveness of businesspermitting and licensing agencies;

"(g) Review proposed major regulations ofgovernment agencies, using submitted regulatoryimpact assessments, subject to proportionality rulesto be determined by the Authority;

"(h) Conduct regulatory management trainingprograms to capacitate NGAs and LGUs to complywith sound regulatory management practices;

"(i) Prepare, in consultation with theappropriate agencies, regulatory managementmanuals for all government agencies and/orinstrumentalities and LGUs;

"(j) Provide technical assistance and advisoryopinions in the review of proposed national or locallegislation, regulations or procedures;

"(k) Ensure the dissemination of and publicaccess to information on regulatory managementsystem and changes in laws and regulations relevantto the public by establishing the Philippine BusinessRegulations Information System;

"(1) Enlist the assistance of the CSC, DTI andother government agencies in the implementationof its powers and functions provided for in this Act;and

"(m) Perform such acts as may be necessaryto attain the objectives of this Act."

"Sec. iS. Composition of the Authority. — TheAuthority shall be headed by a Director General tobe appointed by the President of the Philippines uponeffectivity of this Act, and such appointment shallbe coterminous with the tenure of the President ofthe Phihppmes. The Director General shall enjoy thebenefits, privileges, and emoluments equivalent to therank of Secretary.

"The Director General shall oversee theday-to-day operations of the Authority. He/She shallbe assisted by three (3) Deputy Directors Generaleach for legal, operations, and administration andfinance: Provided, That they are career officials asdefined in existing laws, rules and regulations. TheDeputy Directors General shall enjoy the benefits,privileges, and emoluments equivalent to the rankof Undersecretary and shall likewise be appointed bythe President of the Philippines.

"The Director General of the Authority, inconsultation with the CSC, DTI and the Departmentof Budget and Management (DBM), shall determinethe organizational structrmes including regional orfield offices, qualification standards, staffing patternand compensation of the newly created Authority inaccordance with existing laws, rules and regulations:

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Provided, That in the absence of regional or fieldoffices, the Authority may deputize the regionalpersonnel of the DTI to perform its powers andfunctions."

"Sec. 19. Ease of Doing Business and Anti-RedTape Advisory Council. - There is hereby createdan Ease of Doing Business and Anti-Red TapeAdvisory Council, herein referred to as the Council.It shall be composed of the Secretary of the DTI asChairperson, the Director General of the Authorityas Vice-Chairperson, the Secretaries of the DICT,DILG and Department of Finance (DOF), and two(2) representatives from the private sector asmembers. The department secretaries may designatetheir representatives, who shall sit in a permanentcapacity, with no less than Undersecretary in rank,and their acts shall be considered the acts of theirprincipals. The private sector representatives shallbe appointed by the President of the Philippines fora term of three (3) years, and may be reappointedonly once, from the nominees submitted by reputablebusiness groups or associations.

"The Council shall be the policy and advisorybody to the Authority. The Council shall formulatepolicies and programs that will continuously enhanceand improve the country's competitiveness and easeof doing business. Towards this end, the Council shallhave the following powers and functions:

"(a) Plan, draft and propose a national policyon ease of doing business and anti-red tape;

"(b) Recommend policies, processes and systemsto improve regulatory management to increase theproductivity, efficiency, and effectiveness of permittingand licensing agencies;

"(c) Design and identify systems that willcontinuously enhance and improve the dehvery of

'/T

services in government and ease of doing businessin the country;

"(d) Authorize the creation or appointment ofspecific working groups or task forces in aid of theimplementation of this Act;

"(e) Propose legislation, amendments ormodifications to Philippine laws related to anti-redtape and ease of doing business;

"(f) Periodically review and assess the country'scompetitiveness performance, challenges, and issues;

"(g) Provide technical assistance and advisoryopinions in the review of proposed national or locallegislation, regulations, or procedures;

"(h) Recommend to the Authority the issuanceof the appropriate measures to promote transparencyand efficiency in business practices and dehvery ofservices in government; and

"(i) Perform such other functions as may benecessary or as may be directed by the President ofthe Phihppines for the successful implementation toattain the objectives of this Act.

"The Authority shall serve as Secretariat to theCouncil to be headed by its Deputy Director Generalfor operations.

"The National Competitiveness Council (NCC),created under Executive Order No. 44, Series of2011, shall be renamed and reorganized asthe Council. The pertinent provisions under thefollowing presidential orders: Executive Order No.571, Executive Order No. 44, and AdministrativeOrder No. 38 are hereby repealed accordingly."

24


"Sec. 20. Report Card Survey. ~ All officesand agencies providing government services shall besubjected to a Report Card Survey to be initiated bythe Authority, in coordination with the CSC, and thePhilippine Statistics Authority (PSA), which shall beused to obtain feedback on how provisions in theCitizen's Charter and the provisions of this Act arebeing followed and how the agency is performing.

"The Report Card Survey shall also be used toobtain information and/or estimates of hidden costsincurred by applicants or requesting parties to accessgovernment services which may include, but is notlimited to, bribes and payment to fixers. The resultof the survey shall also become basis for the grantof awards, recognition and/or incentives for excellentdelivery of services in all government agencies.

"A feedback mechanism shall be established inall agencies covered by this Act and the resultsthereof shall be incorporated in their annual report."

Sec. 13. Sections 11 and 12 of the same Act are herebydeleted, and replaced with new sections to be numbered asSections 21 and 22, to read as follows:

"Sec. 21. Violations and Persons Liable. - Anyperson who performs or cause the performance of thefollowing acts shall be liable:

"(a) Refusal to accept application or requestwith complete requirements being submitted by anapplicant or requesting party without due cause;

"(b) Imposition of additional requirements otherthan those listed in the Citizen's Charter;

25

"(c) Imposition of additional costs not reflectedin the Citizen's Charter;

"(d) Failure to give the applicant or requestingparty a written notice on the disapproval of anapplication or request;

"(e) Failure to render government serviceswithin the prescribed processing time on anyapplication or request without due cause;

"(j^ Failure to attend to appKcants or requestingparties who are within the premises of the office oragency concerned prior to the end of official workinghours and dicing lunch break;

and

"(g) Failure or refusal to issue official receipts;

"(h) Fixing and/or collusion with fixers inconsideration of economic and/or other gain oradvantage."

"Sec. 22. Penalties and Liabilities. — Anyviolations of the preceding actions will warrant thefollowing penalties and liabilities.

"(a) First Offense: Administrative liability withsix (6) months suspension: Provided, however, Thatin the case of fixing and/or collusion with fixersunder Section 21(h), the penalty and liability underSection 22(b) of this Act shall apply.

"(b) Second Offense: Administrative liability andcriminal liability of dismissal from the service,perpetual disqualification from holding public officeand forfeiture of retirement benefits andimprisonment of one (1) year to six (6) years witha fine of not less than Five himdred thousand pesos(P500,000.00), but not more than Two million pesos(P2,000,000.00).

26

"Criminal liability shall also be incurredthrough the commission of bribery, extortion, orwhen the violation was done deliberately andmaliciously to solicit favor in cash or in kind. Insuch cases, the pertinent provisions of the RevisedPenal Code and other special laws shall apply."

Sec. 14. Section 13 of the same Act is herebyrenumbered as Section 23 to read as follows:

"Sec. 23. Civil and Criminal Liability, NotBarred. - The finding of administrative liabiUtyunder this Act shall not be a bar to the filing ofcriminal, civil or other related charges under existinglaws arising from the same act or omission asherein enumerated."


"Sec. 24. Administrative Jurisdiction. - The

administrative jurisdiction on any violation of theprovisions of this Act shall be vested in either theCSC, or the Office of the Ombudsman as determined

by appropriate laws and issuances."

Sec. 16. Section 15 of the same Act is hereby renumberedas Section 25, and all succeeding sections of the same Act arehereby deleted.

"Sec. 25. Immunity; Discharge of Co-Respondent/Accused to be a Witness. - Any public official oremployee or any person having been charged withanother offense under this Act and who voluntarilygives information pertaining to an investigation orwho willingly testifies therefore, shall be exempt fromprosecution in the case/s where his/her informationand testimony are given. The discharge may begranted and directed by the investigating body orcourt upon the application or petition of any of the

27

respondent/accused-informant and before thetermination of the investigation: Provided, That:

"(a) There is absolute necessity for thetestimony of the respondent/accused-informant whosedischarge is requested;

"(b) There is no other direct evidence availablefor the proper prosecution of the offense committed,except the testimony of said respondent/accused-informant;

"(c) The testimony of said respondent/accused-informant can be substantially corroborated in itsmaterial poii^ts;

"(d) The respondent/accused-informant has notbeen previously convicted of a crime involving moralturpitude; and

"(e) Said respondent/accused-informant does notappear to be the most guilty.

"Evidence adduced in support of the dischargeshall automatically form part of the records of theinvestigation. Should the investigating body or courtdeny the motion or request for discharge as awitness, his/her sworn statement shall be

inadmissible as evidence."

Sec. 17. New sections to be numbered as Sections 26,27, 28, 29, 30. 31, 32 and 33 are hereby inserted after Section15 of the same Act to read as follows:

"Sec. 26. Transition from Manual to Software-Enabled Business-Related Transactions. - The

DICT, in coordination with other concerned agencies,shall within three (3) years after the effectivity ofthis Act, automate business-related transactions bydeveloping the necessary software and technology-neutral platforms and secure infrastructiore that isweb-based and accessible to the public. The DICT

2829

shall ensure that all municipalities and provincesclassified as third (3"^), fourth (4^^), fifth (5^) andsixth (6^^) class are provided with appropriateequipment and connectivity, information andcommunications technology platform, training andcapability building to ensure the LGUs compHancewith this Act."

"Sec. 27. Transitory Provisions. —

"(a) The Director General of the Authority, inconsultation with the DTI, shall determine theorganizational structure and personnel complementof the Authority. To ensure continued implementationof ease of doing business and anti-red tape reforms,the teams or units involved in regulatoryimprovement and/or ease of doing business-relatedprograms of the DTI-Competitiveness Bureau shallserve as temporary secretariat of the Authority untilsuch time that its organizational structure andpersonnel complement have been determined andfilled up: Provided, That the staff of the DTI-Competitiveness Bureau shall have the option to beabsorbed or transferred laterally to the Authoritywithout diminution of their rank, position, salariesand other emoluments once the staffing pattern andplantilla position of the Authority has been approved.

"(b) AU regulatory management programs andanti-red tape initiatives across government agenciesshall be gathered by the Authority. The DTI, CDA,NCC, DOF, Development Academy of the Philippines(DAP), and National Economic and DevelopmentAuthority (NEDA) shall submit to the Authority areport on the status of their respective projectsrelated to regulatory management.

"(c) The Authority, in coordination with CSCand the Council, shall conduct an informationdissemination campaign in all NGAs and LGUs to

inform them of this Act amending Republic Act No.9485, otherwise known as the Anti-Red Tape Act of2007."

"Sec. 28. Congressional Oversight Committee.- To monitor the implementation of this Act, thereshall be created a Congressional OversightCommittee on Ease of Doing Business (COC-EODB),to be composed of five (5) members from the Senate,which shall include the Chairpersons of the SenateCommittees on Trade and Commerce and

Entrepreneurship, Civil Service, GovernmentReorganization and Professional Regulation, andEconomic Affairs; and five (5) members from theHouse of Representatives which shall include theChairpersons of the House Committees on Trade andIndustry, Civil Service and Professional Regulation,Government Reorganization, and Economic Affairs.The COC-EODB shall be jointly chaired by theChairpersons of the Senate Committee on Trade andCommerce and Entrepreneurship and the House ofRepresentatives Committee on Trade and Industry:Provided, That the oversight committee shall ceaseto exist after five (5) years upon the effectivity of thisAct.

"The Secretariat of the COC-EODB shall be

drawn from the existing personnel of the Senate andHouse of Representatives committees comprising theCOC-EODB."

"Sec. 29. Appropriations. - The amountnecessary to carry out the provisions of this Actshall be charged against the current year'sappropriations of the concerned agencies. In addition,the amount of Three hundred million pesos(P300,000,000.00) as initial funding for the Authorityto be charged against the unexpended ContingencyFund of the Office of the President is herebyappropriated. Thereafter, the amount needed for the

so

implementation of this Act shall be included in theannual General Appropriations Act."

"Sec. 30. Implemeniing Rules and Regulations.- The Authority with the CSC and DTI, and incoordination with the DICT. DOF. DILG, NEDA,PSA, CDA. SEC. the Office of the Ombudsman,Housing and Land Use Regulatory Board (BLURB)and the Union of Local Authorities of the Philippines(ULAP), shall promulgate the necessary rules andregulations within ninety (90) working days from theeffectivity of this Act."

"Sec. 31. Separability Clause. - If anyprovision of this Act shall be declared invalid or

unconstitutional, such declaration shall not affect the

validity of the remaining provisions of this Act."

"Sec. 32. Repealing Clause. — All provisions oflaws, presidential decrees, letters of instruction andother presidential issuances which are incompatibleor inconsistent with the provisions of this Act arehereby deemed amended or repealed accordingly."

"Sec. 33. Effectivity. - This Act shall takeeffect within fifteen (15) days following its publicationin the Official Gazette or in two (2) nationalnewspapers of general circulation."

Sec. 18. Effectivity. - This Act shall take effect fifteen(15) days after its publication in the Official Gazette or in two(2) newspapers of general circulation.

PANTALEON D. ̂ V^REZSpeaker of ihejHgiiseof Represento yes

.

AQUILINO "KOKO" PIMENTEL III

President of the Senate

31

This Act which is a consolidation of Senate BlU No. 1311

and House Bill No. 6579 was finally passed by the Senate andthe House of Representatives on February 21, 2018 andFebruary 27, 2018, r^pectivelv.

CESAR STRAIT'PAREJA

Secreiaiy GeneralHouse ofRepresentatives

LUTGARDO B. BARBO

Secretary ofthe Senate

Approved:- WAY I 0

RODR ROA DUTERTE

President of the Philippines

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