Republic of the Philippines
Bouse of Representatives
‘Quezon City
Fifteenth Congress
First Regular Session

gal 1230
HOUSE BILL NO.

Introduced by Honorable Winston Castelo

EXPLANATORY NOTE

Section 24, Article II (Declaration of Principles and State Policies) of the 1987
Constitution states:

“SEC. 24. The State recognizes the vital role of communication
and information in nation-building.”

To give recognition to the vital importance of information technology in
national development, this bill seeks to reorganize and rationalize certain
government functions. This bill proposes to create a new agency which shall be
known as the Department of Information Technology and Communications (DITC)
that will effectively merge the communications arm of the Department of
Transportation and Communications (DOTC) with the information technology division
of the Department of Science and Technology (DOST), Commission on Information
and Communications Technology (CICIT) and the National Computer Center (NCC)
which is presently under the Office of the President. These are offices in charge of
communications and information technology planning for the government.

Through this bill, we look forward to the use of information technology and
modern communication to spur the growth of the economy, improve the efficiency of


government and the delivery of public services. In this way, we overcome
geographic limitation to achieve the goal of globalization by transcending cultural
and territorial barriers.

To attain this objective, there is a need to provide a national and integrated
government program that will optimize the utilization of information technology and
communications facilities. Moreover, it is of critical importance that the information
technology and communications services of the government be integrated.
Information technology offers tremendous potential to meet basic human needs and
develop human resources.

Countries around the world realize the inherent advantages of dealing in an
environment that is uniform and closely knit. The integration of everything from
trade and technology is an inevitable consequence of globalization. At the heart of
this global momentum is information technology and modern com!

2"? Distri¢t, Quezon City


Republic of the Philippines
House of Representatives
Quezon City
Fifteenth Congress
First Regular Session

ae 1230
HOUSE BILLNO.__—

Introduced by Honorable Winston Castelo

AN ACT
CREATING THE DEPARTMENT OF INFORMATION TECHNOLOGY AND
COMMUNICATIONS, DEFINING ITS POWERS AND _ FUNCTIONS,
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES.

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. This Act shall be known as the "Department of Information
Technology and Communications Act of 2001.”

SEC. 2. Declaration of Policy. - The State shall provide the policy
environment for the full development of Filipino capability and the resurgence of
communications structures suitable to the needs and aspirations of the nation and
the balanced flow of information into, out of, and across the country, in accordance
with a policy that respects the freedom of speech and of the press. For this Purpose,
the State shall provide a national and integrated government program that will
optimize the utilization of information technology and communications facilities
towards the attainment of continued economic growth and development.

SEC. 3. Creation of Department of Information Technology and

Communications. —- There is hereby created a Department of Information


Technology and Communications, hereinafter referred to as the DITC, which shall
assume the communication functions of the Department of Transportation and
Communications and such other functions as may be assigned to it by law.

SEC. 4. Objectives. - The Department of Information Technology and

Communications shall have the following objectives:

(a) Promote the development of dependable and coordinated information
technology and communications systems;

(b) Guide the development of information technology and communication
systems in a most practical, expeditious, and orderly fashion of maximum
service, safety and cost effectiveness;

(c) Impose appropriate measures so that technical, economic and other
conditions for the continuing economic viability of the information
technology and communications entities are not jeopardized;

(

Develop an integrated plan for a nationwide information technology and
communications service requirements;

(e)

Encourage the development of the information technology and
communications industries and to complement and support, as much as
possible, the expansion, development, operation and maintenance of the
nationwide computer and telecommunications network; and

(f) Provide for a safe, reliable and efficient postal system for the country.

SEC. 5. Authority and Responsibility. - The authority and responsibility
for the exercise of the mandate of the DITC and for the discharge of its powers and

functions shall be vested in the Secretary of Information Technology and


Communications, hereinafter referred to as the Secretary, who shall have

supervision and control over the DITC and who shall be appointed by the President

of the Republic of the Philippines.

SEC. 6. Powers and Functions. - To accomplish its mandate, the DITC

shall have the following powers and functions:

(a) Formulate and recommend national policies and guidelines for the

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Preparation and implementation of integrated and comprehensive
information technology and communications system at the national,
regional and local levels;

Establish and administer comprehensive and integrated programs for
information technology and communications, and for this purpose, may
call on any agency, corporation, or organization, whether public of
private, whose development programs include information technology
and communications as an integral part thereof, to participate and assist
in the preparation and implementation of such programs;

Assess, review and provide direction to information technology and
communications research and development programs of the government
in coordination with other institutions concerned;

Administer and enforce all laws, rules and regulations in the field of
information technology and communications;

Establish, operate and maintain a nationwide postal system that shall
include mail processing, delivery services, and money order services and

promote the art of philately;


(f) Establish and prescribe rules and regulations for the establishment,
‘operation and maintenance of such telecommunications facilities in areas
not adequately served by the private sector in order to render such
domestic and overseas services that are necessary with due

consideration for advances in technology;

(g) Establish and prescribe rules and regulations for the operation and
maintenance of a nationwide postal system that shall include mail
processing, delivery services, money order service and promotion of
philately;

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Establish and prescribe the corresponding rules and regulations for the
enforcement of laws governing information technology, postal services,
including the penalties for violations thereof, and for the deputation of
appropriate law enforcement agencies in pursuance thereof; and

(i) Perform such other powers and functions as may be prescribed by law,

or as may be necessary, incidental, or proper to its mandate, or as may
be assigned from time to time by the President of the Philippines.

SEC. 7. Officers of the DITC.- The Secretary shall be assisted by three (3)
Undersecretaries who shall be appointed by the President upon the recommendation
of the Secretary.

The Secretary shall also be assisted by six (6) Assistant Secretaries appointed
by the President upon the recommendation of the Secretary, each of whom shall be
responsible for the following four (4) staff offices composed of eight (8) services and

three (3) line offices, and shall report to the respective Undersecretaries assigned by


the Secretary, which Undersecretary shall have control and supervision over said
respective services and offices:
(a) Office of the Assistant Secretary for Administrative and Legal Affairs:
1. Administrative Service, and
2. Legal Service
(b) Office of the Assistant Secretary for Finance and Comptrollership:
1, Finance and Management Service, and
2. Comptrollership Service
(c) Office of the Assistant Secretary for Planning and Project Development:
1, Planning Service, and :
2. Project Development Service
(d) Management Information Service and Project Management:
1, Management Information Service, and
2. 2. Project Management Service
(e) Office of the Assistant Secretary for Postal Services
(f) Office of the Assistant Secretary for Telecommunications
(g) Office of the Assistant Secretary for Information Technology
Each of the above-named services shall be headed by a service chief
appointed by the Secretary.
SEC. 8. Structural Organization. — The Office of the Secretary shall have
direct line supervision and control over the regional offices. It shall be responsible
for developing and implementing policies, plans, programs and projects for the

department.


The DITC which is comprised of the offices of the Secretary, Undersecretary and
Assistant Secretaries shall include the regional offices and the attached agencies of
the

ore.

SEC. 9. Regional Offices. — The DITC shall have three (3) Regional Offices
in each of the Administrative regions of the country: the Regional Office for
Information Technology, the Regional Office for Telecommunications and the
Regional Office for Postal Services. Each Regional Office shall be headed by a
Regional Director and assisted by an Assistant Regional Director.

The Regional Offices shall essentially be line in character and shall be
responsible for the delivery of all front line services of the DITC.

For such purposes, the Regional Offices shall have, within their respective
administrative regions, the following functions:

(a) Implement laws, policies, plans, programs, projects, rules and regulations

of the DITC;

(b) Provide efficient and effective service to the people;

(c) Coordinate with regional offices of other departments, offices and

agencies;

(d) Coordinate with local government units;

(e) Perform such other functions as may be provided by law.

SEC. 10. Appointed by Officials and Employees. ~ All other officers not
appointed by the President and all rank and file, contractual or casual employees,

shall be appointed by the DITC Secretary.


SEC. 11. Nature of the Appointment of Officials and Employees. —
Appointment to the positions with rank lower than that of the assistant secretaries of
the DITC shall be made only upon merit and fibless and shall be governed by
relevant laws, rules and regulations on the matter. ;

SEC. 12. Agencies Attached and Placed Under the Control and
Supervision of the DITC. — The DITC shall exercise control and supervision over
the following agencies, any provision of the law or their respective charters to the
contrary
notwithstanding:

(1) National Computer Center (NCC)

(2) National Telecommunications Commission (NTC)

(3) Philippine Postal Corporation (PPC)

(4) Science and Technology Information Institute (STII)

All actions taken and exercised by the governing boards and executives of the
abovenamed agencies which affect and bear on the policies, programs, projects,
rules and regulations of the DITC shall require the prior approval of the Secretary.

SEC. 13. Security of Tenure. - In the implementation of this Act, the
Executive Branch of the government shall insure that there shall be no undue
separation of personnel. In the event that the laying-off of personnel becomes
unavoidable because of the abolitions of their office or positions, impact mitigation
measures shall be adopted, such as redeployment of separated employees of one
department or agency to other appropriate departments, agencies or entities.

SEC. 14. Separation Benefits. - Employees who may be separated or

removed from the service by reason of this Act, shall be granted a gratuity


equivalent to one hundred fifty percent (150%) of their basic monthly pay for every
year of service, based on the highest salary received. For those employees who have
been in the government service for at least fifteen (15) years and are at least fifty
years old, they may opt to avail of the early retirement benefits equivalent to
seventy five percent (75%) of the amount they would have been entitled to receive
as full retirement benefits had they remained in the service for the mandated period.

SEC. 15. Rules and Regulations. — Within sixty (60) days from their
appointment, the Secretary shall promulgate rules and regulations for the effective
implementation of this Act.

SEC. 16. Appropriation. - Such sum as may be necessary for the
implementation of this Act shall be taken from the current fiscal year appropriations
of the Department of Transportation and Communications (DOTC). Thereafter, the
amount needed for the operations and maintenance of the DITC shall be included in
the General Appropriations Act.

SEC. 17. Repealing Clause. — All laws, decrees, executive orders, rules and
regulations, and other issuances or parts thereof which are inconsistent with this Act
are hereby repealed, amended or modified accordingly.

SEC. 18. Effectivity. — This Act shall take effect after fifteen (15) days
following its publication in two (2) national newspapers of general circulation.

Approved,