Law Summary
Declaration of Policy
- Promote integrity, accountability, and proper management of public affairs and property.
- Enhance efficient government service turnaround and prevent graft and corruption.
- Maintain honesty and responsibility of public officials and employees.
- Promote transparency through simplified and expedited procedures reducing red tape.
Coverage
- Applies to all government offices, agencies, LGUs, government-owned/controlled corporations, and other instrumentalities domestically and abroad providing business and nonbusiness services.
Definition of Key Terms
- Action: written approval/disapproval by government on applications.
- Business One Stop Shop (BOSS): centralized location or portal for LGU Business Permit and Licensing System.
- Business-related transactions: compliance activities required for business operation or continuity.
- Complex transactions: applications requiring evaluation of complicated issues.
- Fixer: individuals facilitating speedy transactions for gain, authorized or not.
- Government service: processing applications for privileges like licenses and permits.
- Highly technical application: requires specialized knowledge or skills.
- Nonbusiness transactions: government transactions other than business-related.
- Officer or employee: government personnel handling applications.
- Processing time: duration from complete application receipt to government act.
- Red tape: ineffective administrative procedures causing delays and poor outcomes.
- Regulation: legal instruments enforcing government policy including fees and compliance.
- Simple transactions: requiring only ministerial or routine government actions.
Reengineering of Systems and Procedures
- Government offices must regularly analyze, evaluate, and improve procedures to reduce red tape and processing times.
- Anti-Red Tape Authority coordinates review of laws and recommends repeal of outdated or redundant regulations.
- Regulatory impact assessments must be conducted on proposed regulations to prevent undue burdens.
- LGUs and NGAs to start reviewing and reengineering systems pending IRR approval.
Citizen's Charter
- Agencies must publish up-to-date service standards detailing:
- Uniform checklist of requirements.
- Procedure for obtaining service.
- Responsible personnel.
- Maximum processing times.
- Required documents.
- Applicable fees.
- Complaint procedures.
- Information to be posted visibly and made accessible online in English, Filipino, or local dialects.
Zero-Contact Policy
- Government officials/employees to avoid unnecessary contact with applicants after initial evaluation except as strictly necessary.
- All business-related transactions to be conducted through DICT-developed web-based system upon completion.
Accountability of Heads of Offices and Agencies
- Heads responsible for Act implementation and fast, efficient, reliable service delivery.
- All transactions presumed authorized by highest agency authority.
Accessing Government Services
- Acceptance:
- Written applications/documents must be accepted.
- Preliminary assessment done; deficiencies immediately communicated.
- Unique ID number assigned to applications.
- Acknowledgment receipt issued with official details.
- Action:
- Simple transactions: max 3 working days.
- Complex transactions: max 7 working days.
- Highly technical or public safety-related: max 20 working days.
- Extensions allowed once with written notice and applicant's acknowledgment.
- Local Sanggunian approvals have longer but fixed timeframes.
- Denial:
- Written notice with reasons must be given.
- Denials require authorization from highest authority.
- Limitations:
- Maximum three signatures on documents.
- Electronic signatures allowed under security measures.
- Electronic copies of permits allowed.
- Working schedules to serve applicants even during breaks and after hours.
- Employees must wear visible IDs.
- Public assistance/complaint desks must be established.
Automatic Approval and Extension
- Applications are automatically approved if not acted upon within prescribed time, provided complete documents and payments.
- Renewal applications automatically extended under the same conditions.
- Authority to define classifications of transaction types.
Streamlined Local Business Licensing
- Unified application form consolidating multiple local requirements.
- Establishment of BOSS in LGUs, with queuing and colocation of offices.
- Mandatory automation of business permitting within three years.
- Other clearances like sanitary and environmental incorporated into business permit.
- Business permits valid for one year with optional renewal timing.
- Barangay clearances integrated and revenue shared with barangays.
Streamlined Fire Safety Clearances
- Fire Safety Evaluation and Inspection Certificates issued within seven working days.
- Existing certificates from occupancy permits acceptable for new business applications.
- Temporary validity granted if BFP fails to timely provide certificates for renewals.
- Fire incident certificates issued within prescribed periods.
- BFP employees prohibited from selling fire safety equipment; violations punishable.
- BFP offices colocated with BOSS; deputization allowed for fee collection.
- Online systems for fee assessment and payments encouraged.
Central Business Portal (CBP)
- DICT to establish and maintain CBP for business transaction applications.
- CBP to link LGU and NGA systems and provide electronic signature guidelines.
- DICT tasked with interconnectivity development and public information campaigns.
Philippine Business Databank (PBD)
- DICT to develop PBD for centralized business information within one year.
- Agencies to link or update the database regularly.
- Cross-agency use of submitted documents to avoid redundancy.
- LGUs to avoid double-document requests for business licenses.
Interconnectivity Infrastructure Development
- Fast, reliable system for processing permits across barangays, LGUs, NGAs with prescribed maximum timeframes.
- Specific timelines for community clearances including homeowners associations.
- Review and repeal of outdated licenses and permits within three months of IRR approval.
Anti-Red Tape Unit in CSC
- CSC maintains anti-red tape units nationwide to utilize survey findings.
- Units to handle complaints regarding noncompliance and erring officials.
Anti-Red Tape Authority
- Established under the Office of the President with powers to:
- Implement and oversee national anti-red tape policies.
- Monitor agency compliance and issue warnings.
- Investigate complaints and assist complainants.
- Recommend improvements in regulatory management.
- Review and conduct training on regulation.
- Provide advisory opinions and disseminate information.
- Coordinate with other agencies.
Composition of the Authority
- Led by a Director General appointed by the President, rank and compensation equivalent to Secretary.
- Assisted by three Deputy Directors General (legal, operations, administration/finance).
- Organizational structure and staffing determined in consultation with relevant agencies.
- Option to deputize regional personnel for absence of regional offices.
Ease of Doing Business and Anti-Red Tape Advisory Council
- Composed of secretaries of DTI (Chair), Authority (Vice Chair), DICT, DILG, DOF, and two private sector representatives.
- Advises and formulates policies to enhance competitiveness and ease of doing business.
- Powers include proposing policies, legislation, reviewing competitiveness, authorizing task forces, and other functions directed by the President.
- Authority serves as Secretariat.
Report Card Survey
- Periodic surveys coordinated by the Authority, CSC, and PSA to evaluate agency compliance and service delivery.
- Survey obtains data on hidden costs like bribes and payments to fixers.
- Results guide awards and agency improvements.
- Establishment of feedback mechanisms required.
Violations and Persons Liable
- Liable acts include refusal to accept complete applications, imposing unauthorized requirements or costs, failure to notify disapproval, late service, neglecting clients before hours end, refusal to issue official receipts, and fixing or collusion.
Penalties and Liabilities
- First offense: six-month administrative suspension.
- Second offense: dismissal, disqualification from public office, forfeiture of benefits, imprisonment, and fines from P500,000 to P2,000,000.
- Criminal liability applies in cases involving bribery or malicious acts.
Civil and Criminal Liability Not Barred
- Administrative findings do not prevent filing of criminal or civil cases arising from the same acts.
Administrative Jurisdiction
- Violations are under jurisdiction of either CSC or the Office of the Ombudsman as per relevant laws.
Immunity and Discharge of Co-Respondent
- Informants who testify voluntarily may be exempted from prosecution under certain conditions such as necessity and corroboration.
- Denial of discharge leads to inadmissibility of the informant's testimony.
Transition to Software-Enabled Transactions
- DICT to automate business-related transactions within three years.
- Provision of equipment and capacity-building for lower-class municipalities and provinces.
Transitory Provisions
- Authority's structure and personnel to be determined by the Director General.
- Temporary secretariat to be formed from DTI staff.
- Collection of all regulatory management data by the Authority.
- Information campaigns to inform agencies of the Act.
Congressional Oversight Committee
- Committee composed of Senate and House members to monitor implementation, existing for five years post-effectivity.
Appropriations
- Initial P300 million funding charged to Office of the President's contingency fund.
- Subsequent funding included in General Appropriations Act.
Implementing Rules and Regulations
- To be promulgated within 90 working days by the Authority in coordination with various agencies.
Separability Clause
- Invalid provisions do not affect the remaining law.
Repealing Clause
- Inconsistent laws and orders are amended or repealed.
Effectivity
- Takes ef