Department of Anti-red Tape

Senato TWENTIETH CONGRESS OF THE SAffiep of the Secretary REPUBLIC OF THE PHILIPPINES 25 NOV 27 P4:52 First Regular Session RECEIVED BY: SENATE Senate Bill No. 1562 Introduced by Senator Erwin T. Tulfo AN ACT STRENGTHENING GOVERNMENT EFFICIENCY BY REORGANIZING THE ANTI-RED TAPE AUTHORITY INTO THE DEPARTMENT OF ANTI-RED TAPE, AMENDING REPUBLIC ACT NO. 9485, AS AMENDED, AND APPROPRIATING FUNDS THEREFOR EXPLANATORY NOTE The Anti-Red Tape Authority (ARTA) is the lead government agency mandated to oversee, implement, and monitor the national policy on anti-red tape and ease of doing business in the country pursuant to Republic Act No. 11032, or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018. Despite the passage of the ARTA law, bureaucratic inefficiencies continue to persist, highlighting the need for stronger enforcement, clearer compliance mechanisms, and sustained streamlining of government processes. To fully implement reforms to promote bureaucratic efficiency and attract more investors and businesses, ultimately improving our economy. The proposed measure seeks to strengthen ARTA's mandate by elevating it into a department level, with expanded functions, quasi- judicial powers, and enhanced organizational structure.

In view of the foregoing, the immediate passage of this bill is earnestly sought. ERWIN T. TULFO

Bruate Difice of the see tary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES 25 NOV 27 P4:52 First Regular Session RECEIVED BY: SENATE Senate Bill No. 1562 Introduced by Senator Erwin T. Tulfo AN ACT STRENGTHENING GOVERNMENT EFFICIENCY BY REORGANIZING THE ANTI-RED TAPE AUTHORITY INTO THE DEPARTMENT OF ANTI-RED TAPE, AMENDING REPUBLIC ACT NO. 9485, AS AMENDED, AND APPROPRIATING FUNDS THEREFOR Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

SECTION 1. Short Title - This Act shall be known as the

2 "Department of Anti-Red Tape"

SEC. 2. Declaration of Policy. - It is hereby declared the policy

5 of the State to promote integrity, accountability, proper management of 6 public affairs and public property as well as to establish effective practices, aimed at efficient turnaround of the delivery of government services and the prevention of graft and corruption in government. Towards this end, the State shall maintain honesty and responsibility among its public officials and employees, and shall take appropriate measures to promote transparency in each agency with regard to the manner of transacting with the public, which shall encompass a program for the adoption of simplified requirements and

1 procedures that will reduce red tape and expedite business and non- business related transactions in government.

SEC. 3. Coverage. - This Act shall apply to all government

offices and agencies, including government agencies exercising quasi- 6 judicial functions, local government units (LGUs), government-owned or controlled corporations (GOCCs), and other government instrumentalities, whether located in the Philippines or abroad, that provide services.

SEC. 4. Definition of Terms. - As used in this Act, the following

terms are defined as follows: (a) Action - the written approval or disapproval made by a government office or agency on the application or request submitted by an applicant or requesting party for processing; (b) Business One Stop Shop (BOSS) - a single common site or location, or a single online website or portal designated for the Business Permit and Licensing System (BPLS) of an LGU to receive and process applications, receive payments, and issue approved licenses, clearances, permits, or authorizations; (c) Business-related transactions - a set of regulatory requirements that a business entity must comply with to engage, operate or continue to operate a business, such as, but not limited to, collection or preparation of a number of documents, submission to national and local government authorities, approval of application submitted, and receipt of a formal certificate or certificates, permits, licenses which include primary and secondary, clearances and such similar authorization or documents which confer eligibility to operate or continue to operate as a legitimate business; (d) Collocation - refers to a single common site or location which accepts and processes applications for business permit, issues tax bill, receives payment and releases

permit, clearance and other related documents or where the applicant can print the same; (e) Complex transactions - applications or requests submitted by applicants or requesting parties of a government office which necessitate evaluation in the resolution of complicated issues by an officer or employee of said government office, such transactions to be determined by the office concerned; (f) Electronic Business One Stop Shop (eBOSS) - an online portal, or a website with the functionalities and specifications that enable a one-step, end-to-end online business registration process; (g) Fixer - any individual whether or not officially involved in the operation of a government office or agency who has access to people working therein, and whether or not in collusion with them, facilitates speedy completion of transactions for pecuniary gain or any other advantage or consideration; (h) Function - refers to a task or responsibility performed by the agency as part of their mandate which has to be acted upon without the necessity of any request or application in the ordinary course of business; (i) Government service - the process or transaction between applicants or requesting parties and government offices or agencies involving applications for any privilege, right, reward, license, clearance, permit or authorization, concession, of for any modification, renewal or extension of the enumerated applications or requests which are acted upon in the ordinary course of business of the agency or office concerned; (i) Highly technical application - an application which requires the use of technical knowledge, specialized skills and/or training in the processing and/or evaluation thereof; (k) Multi-stage System - refers to the system adopted by government agencies or offices in the delivery of their government services that are highly technical in nature which consists of multiple components or stages that are

required to be undertaken by the government agency or office and/or by their applicant or requesting party in order to deliver or obtain the final document applied for or requested. These stages involve activities such as, but not limited to, research, field trials, scientific methodology, inter-government actions, involving offices internal or external to the agency, as declared in the agency's Citizen's Charter; (I) Officer or employee - a person employed in a government office or agency required to perform specific duties and responsibilities related to the application or request submitted by an applicant or requesting party for processing; (m) Processing time - the time consumed by government agencies covered under Section 3 of this Act that will cover the end-to-end process of government service from the receipt of an application or request with complete requirements, accompanying documents and payment of fees to the issuance of certification or such similar documents approving or disapproving an application or request; (n) Purely Administrative Transactions - actions that do not involve resolving disputes over conflicting rights or obligations but are limited to either the direct implementation of laws to certain given facts as a consequence of regulation, or the undertaking to gather facts needed to pursue a further legal action or remedy in the case of investigation. These transactions of an agency do not render binding determinations on the rights or obligations of parties arising from any legal or factual controversy, such as the grant or denial of applications, licenses, permits, and contracts which are executive or administrative in nature; (0) Red tape - any regulation, rule, or administrative procedure or system that is ineffective or detrimental in achieving its intended objectives and, as a result, produces slow, suboptimal, and undesirable social outcomes;

(p) Reengineering - a systematic redesign of end-to-end processes of government services to achieve substantial improvements in performance such as cost, quality, speed and service, or any act of similar nature. It seeks to achieve performance gains from the perspective of clients and stakeholders and involves inter-agency coordination, technology enablement, and outcome-based restructuring; (q) Regulation - any legal instrument that gives effect to a government policy intervention and includes licensing, imposing information obligation, compliance to standards or payment of any form of fee, levy, charge or any other statutory and regulatory requirements necessary to carry out activity or modify behavior; (r) Regulatory Management System (RMS) - a set of policies, institutions, processes, and tools that governments use to develop, implement, and enforce regulations. The RMS shall comprise of but not limited to a regulatory management, framework institutional arrangements, a regulatory policy cycle, and enforcement and compliance strategies; (s) Simple transactions - applications or requests submitted by applicants or requesting parties of a government office or agency which only require ministerial actions on the part of the public officer or employee, or that which present only inconsequential issues for the resolution by an officer or employee of said government; (t) Streamlining - tactical simplification of a government process within an agency such as reducing signatories, cutting steps and simplifying forms or any act of similar nature, while maintaining compliance with existing laws, regulations, and service standards, and consistent with the mandate of this Act.

SEC. 5. Reorganization of the Anti-Red Tape Authority - The

Anti-Red Tape Authority (ARTA) is hereby reorganized as the government's primary agency for streamlining and reengineering

government services to ease the doing of business in the country, hereafter referred to as the Department of Anti-Red Tape (DART).

SEC. 6. Mandate. - The DART shall be the primary policy,

5 planning, coordinating, implementing, and administrative entity of the government that will plan, develop, and promote the national policy on anti-red tape and ease of doing business in the country.

SEC. 7. Powers and Functions of the DART. - The DART shall

10 have the following powers and functions: I. POLICY DEVELOPMENT AND COORDINATION: a) Implement and oversee a national policy on anti-red tape and ease of doing business; b) Implement various ease of doing business and anti-red tape reform initiatives aimed at improving the ranking of the Philippines international competitiveness; c) Monitor and evaluate the compliance of agencies and issue notice of warning to erring and/or non-complying government employees or officials; d) Establish and maintain close coordination, cooperation and linkages with international ease of doing business and government efficiency agencies and organizations, and implement the applicable provisions of international conventions and agreements related to ease of doing business and government efficiency to which the Philippines is a signatory; e) Enter into contracts, public-private partnerships, and memoranda of agreement or understanding under such terms and conditions as the Department may deem proper and reasonable subject to existing laws; f) Receive, take and hold by bequest, device, gift, purchase or lease asset, grant or property, real or personal, subject to such limitations provided under existing laws and regulations;

g) Design and implement reengineering and process streamlining programs to capacitate government agencies in identifying and addressing procedural bottlenecks to enhance service delivery efficiency and responsiveness. II. REGULATORY MANAGEMENT a) Develop and enforce a sound Regulatory Management System (RMS) of national coverage for the compliance of all government agencies including a road map for the implementation and monitoring thereof; b) Recommend policies, processes, and systems to improve regulatory management to increase the productivity, efficiency, and effectiveness of business permitting and licensing agencies; c) Review proposed regulations and changes to existing regulations of all covered government offices and agencies using submitted regulatory impact assessments, subject to proportionality rules to be determined by the Department; d) Conduct regulatory management training programs to capacitate all covered government offices and agencies, and LGUs to comply with sound regulatory management practices; e) Prepare, in consultation with the appropriate agencies, regulatory management manuals for all government agencies and/or instrumentalities and LGUs; f) Provide technical assistance and advisory opinions in the review of proposed national or local legislation, regulations or procedures, and recommend amendments to existing laws as may be necessary for the attainment of the government's objectives in ease of doing business and government efficiency; g) Ensure the dissemination of and public access to information on regulatory management system and changes in laws and regulations relevant to the public by establishing the Philippine Business Regulations Information System;

h) Issue orders directing the withholding of the issuance and/or suspension of the implementation of regulations found to be non-compliant with the prescribed Regulatory Impact Assessment (RIA) requirements, in accordance with its mandate to oversee regulatory reform; and i) Regularly publish and update a list of government offices and agencies indicating their compliance and non- compliance with RIA requirements. III. ENFORCEMENT a) Issue subpoenas pertaining to ongoing investigations relative to violations under this Act; b) To hold any person in contempt directly or indirectly and impose appropriate penalties; c) Conduct searches, arrests, and seizures in accordance with existing laws, rules and regulations; d) Create and maintain an efficient enforcement unit to conduct an investigation, file charges and transmit evidence to the proper court; e) Coordinate and train with law enforcement agencies, government agencies, and local government units in every province and city in order to facilitate action on fixing violations; and f) Prepare for prosecution or cause the filing of appropriate criminal and civil cases for violation of Section 30 of this Act and assist, support and coordinate with other government agencies for the proper and effective prosecution of the same. IV. GENERAL POWERS a) Initiate investigation upon receipt of a complaint and refer the same to the appropriate agency, or file cases for violation/s of this Act; b) Exercise quasi-judicial powers in determining violations of this Act;

c) Impose reasonable fines and penalties for violation of this Act. d) Assist complainants in filing necessary cases with the CSC, the Ombudsman, the Sandiganbayan or other appropriate courts; e) Promulgate rules and regulations governing the hearing and disposition of cases before it, as well as those pertaining to its internal functions and such rules and regulations as may be necessary to carry out the purposes of this Act; and f) Perform such other acts as may be necessary to attain the objectives of this Act.

SEC. 8. Composition of the DART. - The DART shall be

composed of the Secretary of DART, four (4) Undersecretaries, eleven (11) Directors, and technical staff.

SEC. 9. DART Secretary. - The DART shall be headed by a

Secretary who shall be appointed by the President of the Philippines, subject to the confirmation by the Commission on Appointments. The Secretary shall have the following functions: a) Provide executive direction and supervision over the entire operations of the Department; b) Advise and provide regular reports to the President and the Members of the Cabinet on matters of national and subnational bureaucratic efficiency relating to anti-red tape and ease of doing business; c) Establish policies and standards for the effective and efficient operation of the Department in accordance with applicable laws, rules and regulations; d) Appoint all rank and file employees of the Department, in accordance with the civil service laws, rules and regulations; e) Exercise disciplinary powers over employees of the Department in accordance with relevant laws,

f) Formulate such rules and regulations and exercise such other powers as may be required to implement the objectives of this Act; and g) Perform such other tasks as may be provided by law or assigned by the President.

SEC. 10. Undersecretaries and Directors - The Secretary shall

8 be assisted by at least four (4) undersecretaries each for Legal Services, Operations, Administration and Finance, and Regional Operations, and at least eleven (11) Director IV to be assisted by Assistant Directors. Provided, That they are career officials as defined in existing laws, 12 rules and regulations. The positions for Undersecretaries and Directors shall be appointed by the President of the Philippines upon the recommendation of the Secretary.

SEC. 11. Organizational Structure and Staffing. - The Secretary

17 of the DART shall determine the organizational structure and staffing pattern of the DART in accordance with the revised compensation and position classification system, subject to the evaluation and approval of the DBM, in compliance with the civil service laws, rules and regulations, and other relevant laws. Until the new organizational structure and staffing pattern are submitted to and approved by the DBM, the DART shall retain the existing organizational structure of the ARTA.

SEC. 12. DART Regional Offices. - The DART shall establish

seventeen (17) Regional Offices in each Administrative Regions including the National Capital Region and one (1) Regional Office for Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) in coordination with the Department of Budget and Management (DBM) and the Civil Service Commission (CSC) to strengthen and expand the enforcement of the Department. The Regional Office shall be headed by a Director IlI, to be appointed by the President of the Philippines, and assisted by a Director Il to be classified as second-level executive managerial and to be appointed by the Department Secretary.

SEC. 13. Reengineering of Systems and Procedures. - All offices

and agencies which provide government services are hereby mandated to regularly undertake compliance cost analysis, time and motion studies, undergo evaluation and improvement of their transaction 5 systems and procedures and reengineer the same if deemed necessary to reduce bureaucratic red tape and processing time. The DART, created in this Act, shall coordinate with all government offices covered under Section 3 of this Act in the review of existing laws, executive issuances and local ordinances, and recommend the repeal of the same if deemed outdated, redundant, and adds undue regulatory burden to the transacting public. The DART shall provide training programs and technical assistance on reengineering and process streamlining to capacitate all covered government offices and agencies under Section 3 hereof. All proposed regulations and changes to existing regulations of government agencies covered under Section 3 of this Act shall undergo regulatory impact assessment to establish if the proposed regulation does not add undue regulatory burden and cost to these agencies and the applicants or requesting parties: Provided, That when necessary, any proposed regulation may undergo pilot implementation to assess regulatory impact. The conduct of RIA shall be in accordance with the Regulatory Management System (RMS) to be developed by the DART. Upon effectivity of this Act, all covered agencies under Section 3 of this Act are directed to initiate review of existing policies and operations and commence with the reengineering of their systems and procedures in compliance with the provisions of this Act.

SEC. 14. Citizen's Charter. - All government agencies including

departments, bureaus, offices, instrumentalities, or government-owned and/or -controlled corporations, or LGUs shall set up their respective most current and updated service standards to be known as the Citizen's Charter. This shall be made publicly accessible through the following 37 formats:

a) Information Billboards - posted at the main entrance of offices or at the most conspicuous place; b) Citizen's Charter Handbook - to be submitted to the Department and published on the agency's official website; c) The Citizen's Charter shall be written in English, Filipino, or the local dialect, and must provide clear and detailed information on the following: 1) A comprehensive and uniform checklist of requirements for each type of application or request; 2) The procedure to obtain a particular service; 3) The person/s responsible for each step; 4) The processing time for each step; 5) The amount of fees, if necessary; and 6) The procedure for filing complaints. All government services rendered by the agency shall be included in the posted Citizen's Charter. A government service refers to the process or transaction between applicants or requesting parties and government offices or agencies, involving applications for any privilege, right, reward, license, clearance, permit or authorization, concession, or for any modification, renewal, or extension of the enumerated applications or requests, which are acted upon in the 27 Ordinary course of business of the agency or office concerned. The government office or agency's performance of a function without any need for an application or request shall not be included in the Citizen's Charter. However, if the performance of a function may be applied for or requested, it shall be considered a service and be included in the Citizen's Charter. The DART shall form a centralized database of government services and procedures by establishing an Electronic Management

1 Information System which will primarily serve as a repository for all services of government bodies covered under this Act.

SEC. 15. Client Satisfaction Measurement. - All covered

agencies and offices under Section 3 of this Act, are required to implement the client satisfaction measurement covering all services declared in their respective Citizen's Charter. This shall assess the overall satisfaction and perception of clients on the government service they availed.

SEC. 16. Report Card Survey. - All offices and agencies

12 providing government services shall be subjected to a Report Card Survey to be implemented by the DART, in coordination with the Philippine Statistics Authority (PSA) and the CSC, which shall be used to obtain feedback on how provisions of this Act are being followed and how the agency is performing. The RCS shall be a holistic tool that will measure effectiveness of the Citizen's Charter in reducing regulatory burdens and the impact of the human resource systems and programs in delivering efficient government service. The result of the survey shall be the basis for the grant of rewards and incentives program of the Department and may also be included as criteria for the grant of awards, recognition and/or incentives for excellent delivery of services in all government agencies.

SEC. 17. Zero-Contact Policy. - Except during the preliminary

assessment of the request and evaluation of sufficiency of submitted requirements, no government officer or employee shall have any contact, in any manner, unless strictly necessary with any applicant or requesting party concerning an application or request. All transactions shall be coursed through a web-based software enabled business registration system that is acceptable to the public as created by the Department of Information and Communications Technology (DICT), 34 in compliance with Section 26 of the former Act, R.A. No. 11032, as amended.

In the implementation of Zero Contact Policy, electronic submission of applications, requests and/or payments is preferred, where available. The government official or employee shall communicate with the applicant through e-mail, any other electronic means of communication or the websites of the government agencies concerned, whenever practicable. All government agencies including LGUs shall adopt a zero- contact policy.

SEC. 18. Accountability of Heads of Offices and Agencies. - The

12 head of the office or agency shall be primarily responsible for the implementation of this Act and shall be held accountable to the public in rendering fast, efficient, convenient and reliable service. All transactions and processes are deemed to have been made with the permission or clearance from the highest authority having jurisdiction over the government office or agency concerned.

SEC. 19. Accessing Government Services. - The following shall

be adopted by all government offices and agencies: a) Acceptance of Applications or Requests. 1) All officers or employees shall accept written applications, requests, and/or documents being submitted by applicants or requesting parties of the offices or agencies. 2) The receiving officer or employee shall perform a preliminary assessment of the application or request submitted with its supporting documents to ensure a more expeditious action on the application or request. The receiving officer or employee shall immediately inform the applicant or requesting party of any deficiency in the accompanying requirements, which shall be limited to those enumerated in the Citizen's Charter.

3) The receiving officer or employee shall assign a unique identification number to an application or request, which shall be the identifying number for all subsequent transactions between the government and the applicant or requesting party regarding such specific application or request. 4) The receiving officer or employee shall issue an acknowledgement receipt containing the seal of the agency, the name of the responsible officer or employee, his/her unit and designation, and the date and time of receipt of such application or request. b) Action of Offices. - 1) All applications or requests submitted shall be acted upon by the assigned officer or employee within the prescribed processing time stated in the Citizen's Charter which shall not be longer than three (3) working days in the case of simple transactions and seven (7) working days in the case of complex transactions from the date the request and/or complete application or request was received. For applications or requests involving activities which pose danger to public health, public safety, public morals, public policy, and highly technical application, the prescribed processing time shall in no case be longer than twenty (20) working days or as determined by the government agency or instrumentality concerned, whichever is shorter. Specific transactions, processes, services or activities that agencies fail to include and classify shall be interpreted by the Department as simple transactions without prejudice on the part of the agency to ask for reconsideration.

The maximum time prescribed above may be extended 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 office or agency concerned shall notify the applicant or requesting party in writing of the reason for the extension and final date of release of the government service/s requested. Such written notification shall be signed by the applicant or requesting party to serve as proof of notice. If the application or request for license, clearance, permit, certification, authorization or any other documents of similar nature shall require the approval of the local Sangguniang Bayan, Sangguniang Panlungsod, or the Sangguniang Panlalawigan as the case may be, the Sanggunian concerned 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 has denied the application or request, the reason for the denial, as well as the remedial measures that may be taken by the applicant shall be cited by the concerned Sanggunian. In cases where the cause of delay is due to force majeure or natural or man-made disasters, which result to damage or destruction of documents, and/or system failure of the computerized or automatic processing, the prescribed processing times mandated in this Act shall be suspended and appropriate adjustments shall be made. 2) No application or request shall be returned to the applicant or requesting party without appropriate action. In case an application or request is disapproved, the officer or employee who rendered the decision shall send a formal notice to the applicant or requesting party within the prescribed processing time, stating therein the reason for the disapproval. A finding by a competent authority of a

violation of any or other laws by the applicant or requesting party shall constitute a valid ground for the disapproval of the application or request, without prejudice to other grounds provided in this Act or other pertinent laws. 3)In case of highly technical transactions that involve activities such as, but not limited to, research, field trials, scientific methodology, inter-government actions, the government agency or office may apply the Multi-stage System, provided that the total processing time for all concerned agencies or offices shall not exceed forty (40) working days. Each stage in the Multi-stage System shall have its own processing time. The processing time commences on the date / time that the applicant or requesting party has satisfactorily completed the previous stages and all the requirements for the stage being applied for, and has paid the applicable fees, if any. c) Denial of Application or Request for Access to Government Service. - Any denial of application or request for access to government service shall be fully explained in writing, stating the name of the person making the denial and the grounds upon which such denial is based. Any denial of application or request is deemed to have been made with the permission or clearance from the highest authority having jurisdiction over the government office or agency concerned. d) Limitation of Signatories - The number of signatories in any document shall be limited to a maximum of three (3) signatures which shall represent officers directly supervising the office or agency concerned: Provided, That in case the authorized signatory is on official business or official leave, an alternate shall be designated as signatory. Electronic signatures or pre-signed license, clearance, permit, certification, authorization or any other

documents of similar nature with adequate security and control mechanism may be used. e) Electronic Versions of Licenses, Clearances, Permits, Certifications or Authorizations. - All government agencies covered under Section 3 of this Act shall, when applicable, develop electronic versions of license, clearance permit, certification, authorization or any other documents of similar nature with the same level of authority as that of the signed hard copy, which may be printed by the applicants or requesting parties in the convenience of their offices. f) Adoption of Working Schedules to Serve Applicants or Requesting Parties. - Heads of offices and agencies which render government services shall adopt appropriate working schedules to ensure that all applicants or requesting parties who are within their premises prior to the end of official working hours are attended to and served even during lunch break and after regular working hours. g) Identification Card. - All employees transacting with the public shall be provided with an official identification card which shall be visibly worn during office hours. h) Establishment of Public Assistance/Complaints Desk. - Each office or agency shall establish a public assistance/complaints desk in all their offices.

SEC. 20. Automatic Approval or Automatic Extension of License,

Clearance, Permit, Certification or Authorization. - If a government office or agency fails to approve or disapprove an original application or request for issuance of license, clearance, permit, certification, authorization or any other documents of similar nature within the prescribed processing time, said application or request shall be deemed approved: Provided, That all required documents have been submitted and all required fees and charges as declared in the citizen's charter have been paid.

The acknowledgment receipt together with the official receipt issued by any government agency as proof of payment, for payment of all required fees issued to the applicant or requesting party shall be enough proof or has the same force and effect of a license, clearance, permit, certification, authorization or any other documents of similar nature under this automatic approval mechanism. In case the concerned agency fails or refuses to accept payments 9 and/or refuses or fails to issue a payment order within the standard processing time despite demand or proof that the applicant complied with the complete requirements as enumerated in the Citizen's Charter of the concerned office or agency, the Department, after due investigation, may order the concerned office or agency to accept the 14 payment based on the Citizen Charter and to issue the corresponding license, clearance, permit, certification, authorization or any other documents of similar nature. In case of government agencies or offices covered under Section 3 of this Act relating to purely administrative proceedings or transactions, Automatic Approval or Automatic Extension shall only apply to applications or requests for the issuance of license, clearance, permit, certification, authorization or any other documents of similar nature. If a government office or agency fails to act on an application or request for renewal of a license, clearance, permit, certification, authorization or any other documents of similar nature subject for renewal within the prescribed processing time, licenses, clearance, permit, certification, authorization or any other documents of similar nature shall automatically be extended: Provided, That the Department, shall provide a listing of simple, complex, highly technical applications, and activities which pose danger to public health, public safety, public morals or to public policy.

SEC. 21. Streamlined Procedures for the Issuance of Business

Licenses, Clearances, Permits, Certifications or Authorizations. - The 37 LGUs, National Government Agencies (NGAs), Government Owned

and Controlled Corporations (GOCCs), and all other government offices and agencies are mandated to implement the following revised guidelines in the issuance of business license, clearance, permit, certification, authorization or any other documents of similar nature: a) A single or unified business application form shall be used in processing new applications for business permits and business renewals which consolidates all the information of the applicant or requesting party by various local government departments, such as, but not limited to, the local taxes and clearances, building clearance, sanitary permit, zoning clearance, and other specific LGU requirements, as the case may be, including the fire clearance from the Bureau of Fire Protection (BFP). The unified form shall be made available online using technology-neutral platforms such as, but not limited to, the Central Business Portal (CBP) or the city/municipality's website and various channels for dissemination. Hard copies of the unified forms shall likewise be made available at all times in designated areas of the concerned office and/or agency. b) A one-stop business facilitation service, hereinafter referred to as the business one stop shop, (BOSS) for the city/municipality's business permitting and licensing system to receive and process manual and/or electronic submission of application for license, clearance permit, certification, authorization or any other documents of similar nature shall be established within the cities/municipalities' Negosyo Center as provided for under Republic Act No. 10644, otherwise known as the "Go Negosyo Act." There shall be a queuing mechanism in the BOSS to better manage the flow of applications among the LGUs' departments receiving and processing applications. LGUs shall implement collocation of the offices of the treasury, business permits and licensing office, zoning office, including the BFP, and other relevant city/municipality offices/departments, among others, engaged in starting a business, dealing with construction permits.

c) NGAs, GOCCs, and all other government offices and agencies, shall set up electronic one-stop shops, with unified application forms when rendering government services that require action or approval from different government agencies and offices. d) Cities/Municipalities are mandated to streamline and digitalized their business permitting and licensing system or set up an eBOSS within a period of one (1) year upon the effectivity of this Act for more efficient business registration processes. Cities/Municipalities shall develop electronic versions of licenses, clearances, permits, certifications, authorizations or any other documents of similar nature with the same level of authority, which may be printed by businesses in the convenience of their offices. The DICT shall make available to LGUs the software for the digitalization of the business permit and licensing system. The Department, DICT, DTI, and DILG, shall provide technical assistance in the planning, implementation, and monitoring of this mandate. e) There shall be, in all cities/municipalities, a Business Permit and Licensing Office (BPLO) headed by a Chief, with the rank and salary of a Department Head. They shall be qualified by the Personnel Selection and Promotions Board of the LGU. This position shall henceforth be included under the mandatory appointive local officials common to all cities/municipalities and provinces under Book III, Title Five of Republic Act 7160 otherwise known as the Local Government Code. The Department, DILG, and DTI shall provide for the composition, structure, and staffing pattern of the said office. f) The Chief BPLO shall be deputized by the City Treasurer to assess the fees and taxes associated with business registration. g) To lessen the transaction requirements, other local clearances such as, but not limited to, sanitary permits, environmental and agricultural clearances shall be issued together with the business permit.

h) Business permits shall be valid for a period of one (1) year. The city/municipality may have the option to renew business permits within the first month of the year or on the anniversary date of the issuance of the business permit. i) Barangay clearances and permits related to doing business shall be applied, issued, and collected at the city/municipality in accordance with the prescribed 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 Chapter III, Section 167 and Article IV, Section 152(c) and hereby amended accordingly.

SEC. 22. Streamlined Procedures for Securing Fire Safety

Evaluation Clearance (FSEC), Fire Safety Inspection Certificate (FSIC), and Certification of Fire Incidents for Fire Insurance. - The issuance of the FSEC, FSIC, and certification of fire incidents shall no longer be a condition precedent prior to the issuance of a business permit; Provided, That post-audit joint inspections shall be conducted by the city/municipality and the BFP Local Fire Station to determine compliance with fire safety standards and shall be for the issuance of FSEC, FSIC, and certification of fire incidents, the following shall be adopted to make business permitting more efficient: a) Issuance of FSEC and FSIC shall in no case be longer than seven (7) working days; b) The issuance of a Fire Safety Inspection Certificate (FSIC) or Fire Safety Evaluation Clearance (FSEC) shall no longer be required as a prerequisite for the approval of new business permit applications.

c) A Joint Inspection Post-Audit Team composed of representatives from the Local Government Unit (LGU) and the Bureau of Fire Protection (BFP) shall conduct post-approval inspections to assess the business establishment's compliance with applicable fire safety standards within thirty (30) calendar days from the issuance of the business permit. d) The findings of the Joint Inspection Post-Audit Team shall form the basis for the renewal, suspension, or revocation of the business permit, and for the imposition of any corrective or administrative measures as may be warranted under existing fire safety laws and regulations. e) Issuance of the certification of fire incident for fire insurance purposes shall in no case be longer than twenty (20) working days, and may be extended only once for another twenty (20) working days; f) The BFP or any of its officials or employees shall not sell, offer to sell, or recommend specific brands of fire extinguishers and other fire safety equipment to any applicant or requesting party or business entity. Any violation thereof shall be punishable by imprisonment of one (1) year to six (6) years and a penalty of not less than Five hundred thousand pesos (P500,000.00), but not more than Two million pesos (P2,000,000.00); g) The BFP shall collocate with the BOSS or in an appropriate area designated by the city/municipality within its premises to assess and collect the fire safety inspection fees; h) The BFP shall enter into agreements with cities/municipalities, allowing the latter to be deputized as assessors and/or collecting agents for the fire safety inspection fees; i) The BFP shall develop and adopt an online or electronic mechanism in assessing fees, collecting/accepting payments and

sharing/exchange of other relevant data on business permit processing; and j) The Department of the Interior and Local Government (DILG), the Bureau of Fire Protection (BFP), and DART shall issue the necessary joint memorandum circulars or guidelines to operationalize this provision and ensure harmonized post-audit procedures. The pertinent provisions of Republic Act No. 9514, otherwise known as the "Revised Fire Code of the Philippines of 2008", are hereby amended accordingly.

SEC. 23. Central Business Portal (CBP). - To eliminate

bureaucratic red tape, avert graft and corrupt practices and to promote transparency and sustain ease of doing business, the DICT shall be primarily responsible in establishing, operating and maintaining a CBP or other similar technology, as the DICT may prescribe. The CBP shall serve as a central system to receive applications and capture application data involving business-related transactions, including primary and secondary license, clearance, permit, certification, authorization or any other documents of similar nature issued by the LGUs: Provided, That the CBP may also provide links to the online registration or application systems established by NGAs. The DICT, upon consultation with the National Privacy 27 Commission (NPC), NGAs and LGUs shall issue rules and guidelines on the following: (a) the establishment, operation and maintenance of the CBP; and (b) the use of electronic signatures. The DICT is hereby mandated to implement an Interconnectivity Infrastructure Development Program for interconnectivity between and among NGAs and LGUs. The DICT, in coordination with other concerned NGAs and 36 LGUs shall also conduct information dissemination campaigns aimed

1 towards raising public awareness on the existence of the CBP and the improved access to and effective utilization of the program.

SEC. 24. Philippine Business Databank (PBD). - Within a

period of one (1) year from the effectivity of this Act, the DICT, in coordination with the concerned agencies, shall established, manage and maintain a PBD which shall provide the concerned NGAs and LGUs access to data and information of registered business entities for purposes of verifying the validity, existence of and other relevant information pertaining to business entities. All concerned NGAs and LGUs shall either link their own database with the system or 12 periodically submit to the system updates relevant to the information registered with them. The DICT, in consultation with the DTI, SEC, Cooperative Development Authority (CDA), NPC, DILG, LGUs, and other concerned agencies, shall issue 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 applicant or requesting party to an agency which has access to the PBD shall no longer be required by other NGAs and LGUs having the same access. Documents or information shall be cross-checked and retrieved in the PBD. At the local government level, the city or municipal business process and licensing office shall not require the same documents already provided by an applicant or requesting party to the local government departments in connection with other business-related licenses, clearances, permits, certifications or authorizations such as, but not limited to, tax clearance, occupancy permit and barangay clearance.

SEC. 25. Interconnectivity Infrastructure Development. - In

order to expedite the processing of licenses, clearances, permits, certifications or authorizations, the Department, together with the 37 DICT, shall develop a fast and reliable interconnectivity infrastructure.

1 In relation to this, the processing and approval or license, clearances, permit, certification, authorization or any other documents of similar nature for the installation and operation of telecommunication, broadcast towers, facilities, equipment and service shall be: a) a total of seven (7) working days for those issued by the barangay; b) a total of seven (7) working days for those issued by LGUs; and c) seven (7) working days for those issued by NGAs. If the granting authority fails to approve or disapprove an application for a license, clearances, permit, certification, authorization or any other documents of similar nature within the prescribed processing time, said application shall be deemed approved: Provided, That when the approval of the appropriate local legislative body is necessary, a non-extendable period of twenty (20) working days is hereby prescribed. For homeowners and other community clearances, the officers of the homeowners association shall be given ten (10) working days to refer the application to the members of the association pursuant to

Section 10(k) of Republic Act No. 9904, otherwise known as the

for Homeowners and Homeowners "Magna Carta Associations": Provided, That a non-extendible period of thirty (30) working days is granted the homeowners association to give its consent or disapproval: Provided, further, That in case of disapproval, the granting authority shall notify the applicant or requesting party within the prescribed period of the reason/s for disapproval as well as remedial measures that may be taken by the applicant or requesting party.

SEC. 26. Committee on Anti-Red Tape (CART) in covered

government offices and agencies. - The Committee on Anti-Red Tape, shall be established in all covered government offices and agencies to ensure that complaints forwarded by the Presidential Complaints Center, Civil Service Commission's Contact Center ng Bayan, and 37 Complaints Action Center of the Authority are acknowledged,

1 received, responded to and/or acted upon within the designated period 2 by intended recipient within their agency. The CART shall recommend policies, issuances, and measures to 5 facilitate the implementation of this Act and further improve related issuances and existing guidelines.

SEC. 27. Ease of Doing Business and Anti-Red Tape Advisory

9 Council. - There is hereby constituted an Ease of Doing Business - 10 ART Advisory Council to serve as the principal inter-agency and multi- sectoral body that shall provide strategic guidance, policy coordination, and oversight in the implementation of ease of doing business and regulatory reform initiatives across the national and local governments. I. COMPOSITION The Advisory Council shall be chaired by the Secretary of the Department of Trade and Industry (DTI), co-chaired by Secretary of DART and shall be composed of the following members: a) Secretary of the Department of the Interior and Local Government (DILG) b) Secretary of the Department of Information and Communications Technology (DICT) c) Department of Finance (DOF) d) Secretary of the Department of Budget and Management (DBM) e) Secretary of the Department of Economy, Planning, and Development (DepDEV) In addition to the above, the Council shall include two (2) representatives from the private sector, to be appointed by the President of the Republic of the Philippines. Such representatives shall be selected from recognized business organizations, professional associations, or industry groups and shall serve a term of three (3) years, renewable once.

II. POWERS AND FUNCTIONS OF THE COUNCIL The Council shall meet at least once every quarter and may convene special meetings as necessary. It shall function as an advisory, consultative, and may recommend policies, issue position papers, and provide technical advice to improve the regulatory environment and service delivery mechanisms. Towards this end, the Council shall have the following powers and functions: a) Plan, draft and propose a national policy on ease of doing business and anti-red tape; b) Recommend policies, processes and systems to improve regulatory management to increase the productivity, efficiency, and effectiveness of permitting and licensing agencies; c) Design and identify systems that will continuously enhance and improve the delivery of services in government and ease of doing business in the country; d) Authorize the creation or appointment of specific working groups or task forces in aid of the implementation of this Act; e) Propose legislation, amendments or modifications to Philippine laws related to anti-red tape and ease of doing business; f) Periodically review and assess the country's competitiveness performance, challenges, and issues; g) Provide technical assistance and advisory opinions in the review of proposed national or local legislation, regulations, or procedures; h) Recommend to the Department the issuance of the appropriate measures to promote transparency and efficiency in business practices and delivery of services in government; and i) Perform such other functions as may be necessary or as may be directed by the President of the Philippines for the

successful implementation to attain the objectives of this Act. The Department shall serve as Secretariat to the Council to be headed by its Undersecretary for Operations. The Member, as well as the secretariat shall be entitled to receive honoraria in accordance with the existing rules and regulations. The National Competitiveness Council (NCC), created under Executive Order No. 44, Series of 2011, shall be renamed and reorganized as the Council. The pertinent provisions under the following presidential orders: Executive Order No. 571, Executive Order No. 44, and Administrative Order No. 38 are hereby repealed accordingly.

SEC. 28. Ease of Doing Business Training. - The Department,

through the Ease of Doing Business Training Service (EODBTS), shall develop and deliver regular and targeted training programs for covered government agencies focused on regulatory management, process reengineering, streamlining, innovation, and other relevant compliance requirements under the Act. The office shall address gaps in awareness, implementation, and institutional capacity by equipping government personnel with the appropriate knowledge, tools, and frameworks to effectively comply with DART's regulatory reform directives. The Department, through the EODBTS, shall also be responsible for documenting and disseminating best practices on regulatory reform 30 by engaging with academic institutions, international organizations, and stakeholders.

SEC. 29. Strategic Competitiveness. - The Department, through

the Strategic Competitiveness Services (SCS), shall spearhead the tracking and analysis of the Philippines' performance in global competitiveness indices, and drive reform initiatives to enhance the country's standing in these rankings. It shall promote evidence-based

1 policymaking and ensure that national strategies are aligned with international benchmarks on ease of doing business, regulatory quality, and bureaucratic efficiency. The Department shall develop program and initiatives including 6 but not limited to process management to empower government agencies in identifying and resolving procedural bottlenecks in public service delivery. Through these initiatives, SCS shall advance digital transformation, reduce regulatory burdens, and promote citizen- and business-friendly government processes. It shall formulate and recommend strategic regulatory reforms that foster a more enabling environment for businesses and contribute to the country's long-term economic resilience.

SEC. 30. Violations and Persons Liable. - Any person who

performs or cause the performance of the following acts shall be liable: a) Refusal to accept application or request with complete requirements being submitted by an applicant or requesting party without due cause; b) Failure to set up, create, and publish an updated Citizen's Charter under Section 14; c) Imposition of additional requirements other than those listed in the Citizen's Charter; d) Imposition of additional costs not reflected in the Citizen's Charter; e) Failure to give the applicant or requesting party a written notice on the disapproval of an application or request; f) Failure to render government services within the prescribed processing time on any application or request without due cause; g) Failure to attend to applicants or requesting parties who are within the premises of the office or agency concerned prior to the end of official working hours and during lunch break; h) Failure or refusal to issue official receipts; i) Failure to set up and operationalize, and implement electronic business one-stop shop under Section 21 hereof for cities and municipalities;

j) Fixing and/or collusion with fixers in consideration of economic and/or other gain or advantage and; k) Failure to comply with the Automatic Approval mechanism under Section 20 hereof.

SEC. 31. Penalties and Liabilities. - After compliance with the

substantive and procedural due process, any violations of the preceding actions will warrant the following penalties and liabilities. a) First Offense: Administrative liability with six (6) months suspension: Provided, however, That in the case of fixing and/or collusion with fixers under Section 30j), the penalty and liability under Section 31(b) of this Act shall apply. b) Second Offense: Administrative liability and criminal liability of dismissal from the service, perpetual disqualification from holding public office and forfeiture of retirement, benefits and imprisonment of one (1) year to six (6) years with a fine of not less than Five hundred thousand pesos (P500.000.00), but not more than Two million pesos (P2,000,000.00). Criminal liability shall also be incurred through the commission of bribery, extortion, or when the violation was done deliberately and maliciously to solicit favor in cash or in kind. In such cases, the pertinent provisions of the Revised Penal Code and other special laws shall apply. c) Fixing and/or collusion with Fixers: In accordance with Section 30 paragraph (j) of this Act, fixing and/or collusion with fixers in consideration of economic and/or other gain or advantage, shall be considered as grave offense, the Administrative liability shall be dismissal and perpetual disqualification from public service. d) Contempt: In accordance with Section 7, Ill paragraph (b) of this Act, any person committing any act of misbehavior in the presence of or so near any member of the Department or any hearing officer as to obstruct or interrupt the proceedings before

the same, including disrespect toward said officials, offensive acts toward others, or refusal to be sworn, or to answer as a witness or to subscribe an affidavit or deposition when lawfully required to do so, may be summarily adjudged guilty of direct contempt by said officials and shall be punished by a fine not exceeding Five thousand pesos (P5,000.00) or imprisonment not exceeding five (5) days, or both if it be committed against the Department or any member thereof; and, if the offense is committed against a hearing officer, it shall be punishable by a fine not exceeding One thousand pesos (P1,000.00) or imprisonment not exceeding one (1) day, or both.

SEC. 32. Criminal Liability for Private Individual Involved in

Fixing. - In addition to Section (b) of the preceding section, fixers, as defined in this Act, shall suffer the penalty of one (1) year to six (6) years with a fine of not less than Five hundred thousand pesos (P500.000.00), but not more than Two million pesos (P2,000,000.00).

SEC. 33. Civil and Criminal Liability, Not Barred. - The finding

of administrative liability under this Act shall not be a bar to the filing of criminal, civil or other related charges under existing laws arising from the same act or omission as herein enumerated.

SEC. 34. Administrative Jurisdiction. - The administrative

jurisdiction on any violation of the provisions of this Act shall be vested in either the CSC, or the Office of the Ombudsman as determined by appropriate laws and issuances.

SEC. 35. Immunity; Discharge of Co-Respondent / Accused to be

30 a Witness - Any public official or employee or any person having been charged with another offense under this Act and who voluntarily gives information pertaining to an investigation or who willingly testifies therefore, shall be exempt from prosecution in the case/s where his/her information and testimony are given. The discharge may be granted and directed by court upon the application: Provided, That;

a) There is absolute necessity for the testimony of the respondent/accused-informant whose discharge is requested; b) There is no other direct evidence available for the proper prosecution of the offense committed. except the testimony of said respondent/accused- informant; c) The testimony of said respondent/accused- informant can be substantially corroborated m its material points; d) The respondent/accused-informant has not been previously convicted of a crime involving moral turpitude; and e) Said respondent/accused-informant does not appear to be the most guilty. Evidence adduced in support of the discharge shall automatically form part of the records of the investigation. Should the investigating body or court; deny the motion or request for discharge as a witness, his/her sworn statement shall be inadmissible as evidence.

SEC. 36. Provident Fund. - DART shall maintain a Provident

Fund which consists of contributions made by both the Department and its officials and employees and earnings thereon, for the payment of benefits to such officials and employees or their dependents or heirs under such terms and conditions as may be prescribed by the Secretary and other relevant laws, subject to the approval of the President of the Philippines.

SEC 37. Franking Privilege. - The DART may transmit through

27 ordinary mail and/or registered mail with return card, free of charge, all official communications and papers directly connected with the conduct of its duties, functions and/or its exercise of administrative 30 supervision over its personnel. The envelope or wrapper of the privileged mail matter shall bear on the left upper corner "Department of Ease of Anti-Red Tape" together with its address and on the right upper corner, the words "Private or unauthorized use to avoid payment of postage is penalized by fine or imprisonment or both.

SEC. 38. Transitory Provisions. - The DART shall, by virtue of

this Act, be subrogated to all the rights and assume all the liabilities, funds, records, properties, assets, equipment, necessary personnel, and unexpended appropriations or allocations of the ARTA. All contracts and liabilities of the ARTA are hereby transferred to and assumed by the DART and shall be acted upon in accordance with Presidential Decree No. 1445, otherwise known as the "Government Auditing Code of the Philippines", as amended, and other pertinent laws, rules, and regulations. Subject to the succeeding section, all current officials and employees of the ARTA shall enjoy security of tenure and be retained under and absorbed by the DART, in accordance with the staffing pattern and the selection process as prescribed under Republic Act No. 6656, or the "Government Reorganization Law". Current officials and employees of the ARTA shall continue to draw their salaries, benefits, and other emoluments from the appropriations of the ARTA until the corresponding funds shall have been appropriated and released to the DART no later than one (1) year from the effectivity of this Act. Any reference to the ARTA, its Director General, Secretary, or the EODB-ART Advisory Council in any existing law, executive order, administrative order, presidential proclamation, rules and regulations, and other issuance related to the mandate of the DART, shall hereafter refer to the DART, the DART Secretary, and the DART Council, respectively. The President may retain the incumbent Secretary of the ARTA as the Secretary of DART, without need of a new appointment, in line with the authority of the President under Article VII, Section 16 of the 1987 Philippine Constitution to nominate and appoint a new Secretary.

SEC. 39. Separation and Retirement from Service of Employees

of ARTA. - The ARTA employees who are separated from service as a result of the reorganization under the provisions of this Act shall 37 receive separation benefits which they may be entitled to under existing

1 laws: Provided, That those who are qualified to retire under existing retirement laws shall be allowed to retire and receive retirement benefits, which they may be entitled to under applicable laws, rules, regulations and issuances.

SEC. 40. Appropriations. - The amount necessary to cover the

7 initial implementation of this Act shall be charged against the current year's appropriations of the ARTA. In addition, all covered agencies under Section 3 of this Act shall include in its proposed budget and ensure the effective implementation of the Ease of Doing Business and the efficient delivery of government services, the State shall prioritize the allocation of available public resources for the fulfillment of the mandates under this Act.

SEC. 41. Implementing Rules and Regulations. - The DART,

DTI, in coordination with the DICT, DOF, DILG, DEPDev, PSA, CDA, SEC, the Office of the Ombudsman, Department of Human Settlements and Urban Development (DHSUD) and the Union of Local Authorities of the Philippines (ULAP), shall promulgate the necessary rules and regulations within ninety (90) working days from the effectivity of this Act.

SEC. 42. Separability Clause. Should any provision or part of

this Act be declared unconstitutional or invalid, the other provisions and parts hereof, insofar as they are separable from the invalid ones, shall remain in full force and effect.

SEC. 43. Repealing Clause. - All laws, decrees, orders,

29 proclamations, rules and regulations, or parts thereof, which are inconsistent with this Act are hereby repealed, amended, or modified accordingly.

SEC. 44. Effectivity. - This Act shall take effect fifteen (15) days

after its publication in the Official Gazette or in at least two (2) newspapers of general circulation. Approved,