Policy and Restructuring Framework
- Section 1 declares the government policy to streamline the bureaucracy through homogeneous grouping of functionally related agencies and functions under appropriate offices.
- An agency may be placed under the Office of the President only if it provides direct staff assistance and support to the President (Section 1[a]) or performs functions requiring the immediate attention of the President (Section 1[b]).
- Section 2 orders the Office of the President to be streamlined and re-structured through: transfer/attachment, integration, abolition of functions/programs/agencies (subject to law), and retention of certain corporations under conditions in Section 1.
- Section 2(a)–(d) sets the operative restructuring modes for agencies and GOCCs affected by the streamlining policy.
Transfer and Integration of Regular Agencies
- Section 3.1 transfers specified regular agencies from the Office of the President to the designated departments and/or agencies for policy and program coordination and/or administrative supervision.
- The National Statistical Coordination Board transfers to the National Economic and Development Authority (Section 3.1[a]).
- The Commission on Filipino Language transfers to the Department of Education, Culture and Sports (Section 3.1[b]).
- The Philippine Center Management Board transfers to the Department of Foreign Affairs (Section 3.1[c]).
- The National Statistics Office transfers to the National Economic and Development Authority (Section 3.1[d]).
- The Statistical Research and Training Center transfers to the National Economic and Development Authority (Section 3.1[e]).
Transfer and Integration of GOCCs
- Section 3.2 transfers specified government-owned and/or controlled corporations from the Office of the President to designated departments and/or agencies for policy and program coordination and/or administrative supervision.
- The Philippine Deposit Insurance Corporation transfers to the Department of Finance (Section 3.2[a]).
- The Laguna Lake Development Authority transfers to the Department of Environment and Natural Resources (Section 3.2[b]).
- The Philippine Center for Economic Development transfers to the University of the Philippines System (Section 3.2[c]).
- The transfers in Section 3.2 must be consistent with pertinent provisions of Administrative Order No. 59 (s. 1988) and other applicable laws, rules, and regulations (Section 3.2).
Eventual Abolition and Integration Operations
- Section 3.3 provides for transfers from the Office of the President for administrative supervision and eventual abolition in accordance with law and the terms of Section 5.
- The Economic Support Fund Secretariat transfers to the Department of Public Works and Highways and is eventually abolished in accordance with law (Section 3.3[a]).
- The Board of Liquidators transfers to the National Development Company and is eventually abolished in accordance with law (Section 3.3[b]).
- The Development Coordinating Council for Leyte and Samar transfers to the Department of National Defense and is eventually abolished in accordance with law (Section 3.3[c]).
- The Kalinga Special Development Authority transfers to the Department of National Defense and is eventually abolished in accordance with law (Section 3.3[d]).
- The Sequestered Assets Disposition Authority transfers to the Presidential Commission on Good Government and is eventually abolished in accordance with law (Section 3.3[e]).
- The Philippine Gamefowl Commission of the Games and Amusements Board transfers and is eventually abolished in accordance with law (Section 3.3[f]).
- Section 3.4 integrates the Philippine Human Resources Development Center with the Presidential Management Staff.
Implementation Through Programs and Approvals
- Section 4 implements the Executive Order through a Function, Rationalization and Integration Program and staged approvals and issuance responsibilities.
- Within 60 days from effectivity, affected departments and/or agencies must prepare and submit to the President through the Department of Budget and Management a Function, Rationalization and Integration Program consistent with Section 48 of Republic Act No. 7645, containing:
- streamlining and rationalization of duplicative, unnecessary, or redundant functions, programs, and activities resulting from the transfers (Section 4(a)(a.1)),
- a policy integration and rationalization plan showing affected functions, programs, and activities and mechanisms for policy and program coordination (Section 4(a)(a.2)),
- significant re-focusing, abolition, scaling down, or phasing out of functions/programs/activities, corresponding shifts in structure and resource allocations, and staffing changes needed to effect streamlining and integration (Section 4(a)(a.3)).
- The Secretary of Budget and Management must review and recommend to the President the programs within 60 days from receipt (Section 4(b)).
- After Presidential approval, the Secretary must prepare and issue within 30 days the necessary action documents authorizing changes in functions, program/activity/project structure, internal organization, staffing, and budgetary allocations (Section 4(b)).
- After approval of their respective programs, Department Secretaries and/or Heads of Agencies concerned must issue within 15 days the rules, regulations, and other issuances needed for effective implementation (Section 4(c)).
Transitory Arrangements Before Transfer or Abolition
- Section 5 requires interim arrangements immediately carried out before actual transfer or abolition of agencies.
- For agencies included under Section 3.3, the Department of Budget and Management must immediately prepare and submit to the Office of the President the necessary documentation to effect actual abolition (Section 5.1).
- Until the agencies included under Section 3.3 are actually abolished, the following personnel policies apply:
- non-filling or vacant positions (Section 5.1[a]),
- non-renewal of contracts of all contractual employees including casual and temporary employees (Section 5.1[b]).
- Within 30 days from effectivity, these agencies must submit to the Department of Budget and Management, through the Department and/or agency to which they were transferred, an inventory of:
- vacant positions, and
- contracts of all contractual, casual and temporary employees (Section 5.1).
- All transferred agencies and corporations must immediately confer and coordinate with the departments and agencies to which they are transferred (Section 5.2).
- While the Function, Rationalization and Integration Programs are pending evaluation, affected agencies and corporations must continue operating under existing internal operational arrangements (Section 5.2).
- Any transfer of an agency or corporation includes functions, appropriations, funds, records, equipment, facilities, other properties, choses in action, assets and liabilities, and personnel (Section 5.3).
Consent Requirements for Creditor Prejudice
- Section 6 requires notice and/or consent compliance before implementing the Function, Rationalization and Integration Program if an authorized organizational change is of such substance or materiality that it would prejudice third persons with rights recognized by law or contract.
- If notice to or consent of creditors is required under any agreement with such creditors, that notice/consent must be obtained prior to implementation (Section 6).
Separability, Repeal, and Effect on Existing Issuances
- Section 7 provides separability: any portion declared unconstitutional does not nullify the other portions so long as remaining portions can subsist and be given effect.
- Section 8 revokes or modifies executive rules, regulations, and other issuances (or parts) inconsistent with the Executive Order.