Senate OKs bicam report on bill seeking to ease doing business, reduce red tape

The Senate approved and adopted Wednesday the bicameral report on the proposed measure seeking to further ease doing business and reduce red tape in the country.

Senator Juan Miguel Zubiri sponsored the 21-page bicameral report on the disagreeing provisions of Senate Bill No. 1311 and House Bill No. 6579 or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018 and presented the highlights of the reconciled bill.

“Mr. President, after several bicameral meetings, your Bicameral Conference Committee has come up with a reconciled version that we believe will respond to the clamor of the public, especially the business sector, to improve ease of doing business and reduce red tape in the country,” he said in his sponsorship speech.

Under the reconciled version, covered are all local government units, national government agencies, and other government instrumentalities that provide service covering business and non-business related transactions.

It states that the prescribed processing time for transactions in government will be further reduced from five to three working days for simple transactions; from 10 to seven working days for complex transactions; and 20 working days for highly technical applications.

It states there will be automatic approval of permits and licenses if the local government units and agencies fail to approve or disapprove the application within the prescribed processing time.

Zubiri said a new section was added to streamline procedures for the issuance of local business permits to include the following provisions:

• Use of single or unified business application for local tax and clearances, building clearances, fire safety inspection certificates, etc.; which shall also be available online;
• Creation of one-stop business facilitation service (also referred to as business one-stop shop) on site and/or on-line in all cities and municipalities;
• Automation of business permitting and licensing systems of LGUs with the help of the Department of Information and Communications Technology (DICT);
• Renewal of business permit within first month of the year or anniversary date of the issuance of permit; and
• Payment of barangay clearance to be collected by the city/municipality and remitted to the respective barangays.

He said a new section to streamline procedures in securing Fire Safety Inspection Certificate (FSIC), Fire Safety Evaluation Clearance (FSEC), and certification of fire incidents was also included to:

• Limit processing time for the issuance of FSIC and FSEC to seven working days and 20 working days for certification of fire incident for fire insurance purposes; and
• Prohibit the Bureau of Fire (BFP) personnel from selling or recommending any brand of fire extinguishers or equipment, among others.

Under the reconciled version, the DICT is mandated to create the Central Business Portal which shall serve as the central system to receive application and capture application data involving business-related transactions; and the Philippine Business Databank which shall contain all data and information of registered business entities.

Within three years after the effectivity of this Act, the DICT is also mandated to ensure the automation of all business-related transactions in all local government units and government agencies, and has to ensure that all municipalities and provinces classified from 3rd to 6th classes are provided with appropriate equipment and connectivity.

Zubiri said upon the recommendation of the Minority Floor Leader Franklin Drilon, they added a section on Interconnectivity Infrastructure Development which expedites the processing and approval of permits, licenses, clearances or authorizations for the installation and operation of telecommunication, broadcast towers, facilities, equipment and service to be able to ensure a fast and reliable interconnectivity infrastructure.

“We consider[ed] that Drilon amendment. If in the future we will have faster internet connection we could thank Senator Drilon for it,” he said.

He said the Civil Service Commission (CSC) shall be strengthened by institutionalizing the anti-red tape unit in its central and regional offices.

He said an Anti-Red Tape Authority under the Office of the President will be created to plan, implement and oversee national policy on anti-red tape and ease of doing business; initiate investigation, motu propio or upon receipt of a complaint, refer the same to the appropriate agency, or file cases for violations of the Act; and recommend policies, processes and systems to improve regulatory management of all local government agencies and government agencies, among others.

He said the Anti-Red Tape Authority shall be headed by a director general with the rank of a Secretary, to be appointed and co-terminus with the tenure of the President. He or she shall be assisted by three deputy director generals.

He said the existing National Competitiveness Council will be reorganized and renamed as the Ease of Doing Business and Anti-Red Tape Advisory Council to be composed by:

• Department of Trade and Industry (DTI) Secretary as Chairperson;
• Anti-Red Tape Authority Director-General as Vice-Chairperson;
• DICT Secretary;
• Interior and Local Government (DILG) Secretary;
• Department of Finance (DOF) Secretary; and
• two representatives from the private sector, as members.

He said all offices and agencies providing government services shall be subjected to a Report Card Survey initiated by the Anti-Red Tape Authority, in coordination with the CSC and the Philippine Statistics Authority (PSA), which shall become the basis for the grant of awards, recognition, and/or incentives for excellent delivery of service in all government agencies.

The senator said stiffer penalties shall be imposed for non-compliance and violations of the Act.

He said administrative liability with six months suspension without pay will be the punishment for first offense while an administrative liability and criminal liability of dismissal and perpetual disqualification from the public service, and forfeiture of retirement benefits, and one year to six years imprisonment, with a fine of P500,000 to P2 million for second offense.

Zubiri said he expected both chambers to ratify the proposed measure next week and it will be signed by President Rodrigo Duterte before the Congress adjourns on March 23. — MDM, GMA News