Ease of Doing Business and Efficient Government Service Delivery Act of 2018

Case Overview and Summary

Summary of Republic Act No. 11032 (Ease of Doing Business and Efficient Government Service Delivery Act of 2018)

Objectives and Policy
• Promotes integrity, accountability, and transparency in government transactions (Section 2)
• Aims to simplify requirements and procedures to reduce red tape and expedite business and non-business transactions (Section 2)

Coverage and Definitions
• Applies to all government offices, agencies, LGUs, GOCCs, and other instrumentalities providing services for business and non-business transactions (Section 3)
• Defines key terms such as "action", "business one stop shop", "business-related transactions", "complex transactions", "fixer", "government service", "highly technical application", "non-business transactions", "officer or employee", "processing time", "red tape", "regulation", and "simple transactions" (Section 4)

Reengineering of Systems and Procedures
• Mandates offices and agencies to regularly review and reengineer their transaction systems and procedures to reduce red tape and processing time (Section 5)
• Requires regulatory impact assessment for proposed regulations to avoid undue regulatory burden (Section 5)

Citizen's Charter
• Requires agencies to set up a Citizen's Charter detailing requirements, procedures, processing time, fees, and complaint procedures (Section 6)

Zero-Contact Policy
• Prohibits contact between government officers/employees and applicants, except during preliminary assessment and evaluation of requirements (Section 7)
• Requires transactions to be coursed through a web-based system once established by DICT (Section 7)

Accountability of Heads of Offices and Agencies
• Holds heads of offices and agencies primarily responsible for implementing the Act (Section 8)

Accessing Government Services
• Mandates acceptance of applications, issuance of acknowledgment receipts, and action within prescribed processing times (Section 9)
• Prescribes processing times: 3 working days for simple transactions, 7 working days for complex transactions, 20 working days for highly technical applications or those posing danger to public health, safety, morals, or policy (Section 9)
• Allows automatic approval or extension of licenses, clearances, permits, certifications, or authorizations if agency fails to act within prescribed time (Section 10)

Streamlined Procedures for Local Business Permits and Licenses
• Mandates use of a single or unified business application form consolidating all requirements (Section 11)
• Requires establishment of a Business One Stop Shop (BOSS) for receiving and processing applications (Section 11)
• Mandates automation of business permitting and licensing system within 3 years (Section 11)
• Allows issuance of other local clearances together with the business permit (Section 11)
• Sets validity of business permits to 1 year (Section 11)
• Allows application and issuance of barangay clearances and permits at the city/municipality level (Section 11)

Streamlined Procedures for Fire Safety Evaluation Clearance (FSEC), Fire Safety Inspection Certificate (FSIC), and Fire Incident Certification
• Prescribes processing times: 7 working days for FSEC and FSIC, 20 working days for fire incident certification (Section 12)
• Allows use of FSIC issued during occupancy permit stage for new business permit applications (Section 12)
• Requires BFP to present FSIC or negative/positive list to city/municipality within 3 working days for business permit renewals (Section 12)
• Prohibits BFP from selling or recommending specific brands of fire safety equipment (Section 12)
• Allows BFP to colocate with BOSS or be deputized as collecting agent for fire safety inspection fees (Section 12)

Central Business Portal (CBP)
• Mandates DICT to establish, operate, and maintain a CBP to receive applications and capture data for business-related transactions (Section 13)
• Requires DICT to issue rules and guidelines on CBP establishment, operation, and use of electronic signatures (Section 13)
• Mandates DICT to implement an Interconnectivity Infrastructure Development Program (Section 13)

Philippine Business Databank (PBD)
• Requires DICT to establish, manage, and maintain a PBD providing access to data and information of registered business entities (Section 14)
• Allows agencies with access to PBD to cross-check and retrieve documents instead of requiring resubmission from applicants (Section 14)

Interconnectivity Infrastructure Development
• Mandates development of a fast and reliable interconnectivity infrastructure (Section 15)
• Prescribes processing times for licenses, clearances, permits, certifications, or authorizations related to telecommunication, broadcast towers, facilities, equipment, and services: 7 working days for barangay, LGU, and NGA (Section 15)
• Allows automatic approval if granting authority fails to act within prescribed time (Section 15)
• Prescribes processing times for homeowners and community clearances (Section 15)

Anti-Red Tape Unit in Civil Service Commission (CSC)
• Requires CSC to maintain an anti-red tape unit to receive, review, hear, and decide on complaints and non-compliance (Section 16)

Anti-Red Tape Authority
• Creates the Anti-Red Tape Authority attached to the Office of the President (Section 17)
• Outlines the powers and functions of the Authority, including implementing anti-red tape policies, monitoring compliance, investigating violations, recommending policies and systems, reviewing proposed regulations, conducting training programs, and establishing the Philippine Business Regulations Information System (Section 17)
• Specifies the composition of the Authority, headed by a Director General and three Deputy Directors General (Section 18)

Ease of Doing Business and Anti-Red Tape Advisory Council
• Creates the Ease of Doing Business and Anti-Red Tape Advisory Council as the policy and advisory body to the Authority (Section 19)
• Outlines the powers and functions of the Council, including formulating policies, recommending improvements, designing systems, proposing legislation, and providing technical assistance (Section 19)

Report Card Survey
• Mandates subjecting offices and agencies to a Report Card Survey to obtain feedback on compliance with the Citizen's Charter and performance (Section 20)
• Requires the survey to gather information on hidden costs incurred by applicants, including bribes and payments to fixers (Section 20)
• Requires establishment of a feedback mechanism in all agencies (Section 20)

Violations and Persons Liable
• Lists actions constituting violations, such as refusal to accept applications, imposition of additional requirements or costs, failure to provide written notice of disapproval, failure to render services within prescribed time, failure to attend to applicants during office hours, failure to issue official receipts, and fixing or collusion with fixers (Section 21)

Penalties and Liabilities
• Prescribes penalties for violations: first offense - 6 months suspension; second offense - dismissal from service, perpetual disqualification from public office, forfeiture of retirement benefits, and imprisonment of 1 to 6 years with a fine of P500,000 to P2,000,000 (Section 22)
• Imposes criminal liability for bribery, extortion, or deliberate and malicious violations to solicit favor (Section 22)

Civil and Criminal Liability Not Barred
• Clarifies that finding of administrative liability does not bar filing of criminal, civil, or other related charges (Section 23)

Administrative Jurisdiction
• Vests administrative jurisdiction on violations to the CSC or the Office of the Ombudsman (Section 24)

Immunity and Discharge of Co-Respondent/Accused as Witness
• Allows exemption from prosecution for public officials, employees, or persons who voluntarily provide information or willingly testify, subject to certain conditions (Section 25)

Transition from Manual to Software-Enabled Business-Related Transactions
• Mandates DICT to automate business-related transactions by developing necessary software, platforms, and infrastructure within 3 years (Section 26)
• Requires DICT to provide equipment, connectivity, training, and capability building to 3rd to 6th class municipalities and provinces (Section 26)

Transitory Provisions
• Outlines transitory provisions, including determination of organizational structure and personnel complement of the Authority, transfer of DTI teams involved in regulatory improvement and ease of doing business programs, submission of reports on regulatory management programs by various agencies, and information dissemination campaign (Section 27)

Congressional Oversight Committee
• Creates a Congressional Oversight Committee on Ease of Doing Business to monitor implementation of the Act (Section 28)

Appropriations
• Charges the amount necessary to implement the Act against current year's appropriations of concerned agencies (Section 29)
• Appropriates P300,000,000 as initial funding for the Authority (Section 29)

Implementing Rules and Regulations
• Mandates the Authority, CSC, DTI, and other agencies to promulgate the necessary implementing rules and regulations within 90 working days (Section 30)

Separability Clause and Repealing Clause
• Includes standard separability and repealing clauses (Sections 31 and 32)

Effectivity
• Provides for the Act to take effect 15 days after publication in the Official Gazette or in two newspapers of general circulation (Section 33)