FOURTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
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S E N A T E  
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BY . // 
COMMITTEE REPORT NO. 
93 
Prepared jointly by the Committees on Science and Technology, Civil 
Service and Government Reorganization and Finance on 
‘AUG 1 4 2000 
Re: 
S. No. 
;? 5 a 6 
Recommending its approval in substitution of Senate Bill Nos. 320 
and 920. 
Sponsors: Senators Angara and Legarda 
MR. PRESIDENT: 
The Committees on Science and Technology, Civil Service and 
Government Reorganization and Finance, to which were referred S. No. 
320, introduced by Senator Jinggoy Estrada, entitled: 
“AN ACT 
CREATING THE NATIONAL COUNCIL FOR INFORMATION 
TECHNOLOGY AND DEVELOPMENT (NCITD), DEFINING ITS 
OBJECTIVES, POWERS AND FUNCTIONS, APPROPRIATING 
FUNDS THEREFOR, AND FOR OTHER PURPOSES” 
And S. No. 920, authored by Senator Legarda, entitled: 
“AN ACT 
CREATING THE DEPARTMENT OF INFORMATION AND 
COMMUNICATIONS TECHNOLOGY, DEFINING ITS POWERS AND 
FUNCTIONS, APPROPRIATING FUNDS THEREFORE, AND FOR 
OTHER PURPOSES” 
have considered the same and have the honor to report them back&.the 
Senate with the recommendation that the attached Senate Bill No. C G  6 
, prepared by the Committees, entitled: 
“AN ACT 
CREATING THE DEPARTMENT OF INFORMATION AND 
COMMUNICATIONS TECHNOLOGY, DEFINING ITS 
POWERS AND FUNCTIONS, APPROPRIATING FUNDS 
THEREFORE, AND FOR OTHER PURPOSES.” 
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iii substitution of S Nos. 320 and 920, with Senators Estradn. Legartla and 
Angat-a :IS t1uihors thereor. 


Respectfully submitted: 
SEN. ANTONIO F. TRILLANES IV 
Cliairman 
Cttc. On Civil Service & Govt. 
licorganimtiori 
Membcr. Ctte. On Finance 
C 11 ai rni an 
Ctte. On Science & Technology 
Vicc Cliairman, Ctte. On Finance 
Member, Ctte. On Civil Service C
‘
 
Gov’t Reorganization 
Y 
Chairman 
Coininittee on ’inaiice 
Member, Ctte. On Science & Technology 
SEN. YANFJLO “PING” LACSON 
Acting Chairman, Ctte. On Civil Service 
& Gov’t. Reorganization 
Member, Ctte. On Finance 
MEMBERS: 
/A/\ 
SEN. PIA Coi 
. CAYETANO 
Vicc Chairpers 
Member, Ctte. On Finance 
and Technology 
SEN. RIIRIAM DEFENSOR-SANTIAGO 
Vicc Chimeison. Comlnittee on Finance 
/ SEN. RICHARD J. GORDON 
n Civil Service and 
arid Finance 
g& 
IN. GREGORIO B. HONASAN I1 
Mcmhcr Cttes. On Civil Service and 
Govern rent Reorganization arid Finance 
i 
SEN. JOKER P. ARROYO 
Vice Chaii-uiian, Cttc. On Finance 
c ‘(2
“Lito” M. LAPID 
~ 
r“‘ 
SE 
Mernbci-, Clte. On Finance 
S 
Member, Cites. On Civil Sei-vicc and 
Gov’t. Reorgaiiizntion m t /  Finance 


Respectfully submitted: 
SEN. JUAN PONCE ENIULE 
Chnilman 
Coiniiiittee on Finance 
Member, Ctte. 011 Scierrce & Technology 
SEN. PANFILO “PING” LACSON 
Acting Chaimian, Cttc. On Civil Scrvice 
8~ Gov’t. Reorganization 
Member, Ctte. On Finance 
MEMBERS: 
SI’N. PIA “Coiiipailrra” S. CAYETANO 
\’ICC C‘lxlirpcrson. Cttc. 011 Science 
/vlcriihci.. CYtc On Finaiicc 
SEN. JOKER P. ARROYO 
Vicc Chnirman, Ctte. 011 Fiirrincc 
il lld -l’cch no Io gy 


SWI<ODOL,FO 
G. BIAZON 
Mcmhci-, Ctle. On Finance 
SEN. ALAN PETERS. CAYETANO 
Meinbcr, Ctte. On Civil Service and 
(ioverlllileiit Reorganization 
Member, Cttes. On Science and 
Technology arid Finance 
SEN. MAR ROXAS 
Member, Cotiimittee on Finance 
Ex-Oflicio Members: 
CI- 
N. PANGILINAN 
IION. MANNY VILLAII 
Seiialc President 


AN ACT 
CREATING THE DEPARTMENT OF INFORMATION AND 
COMMUNICATIONS TECHNOLOGY, DEFINING ITS POWERS AND 
FUNCTIONS, APPROPRIATING FUNDS THEREFORE, 
AND FOR OTHER PURPOSES 
l3cz i/ enacted by the Senate and the House of Representatives of tile Philippines in 
C'ongmss nsscmblcd: 
SECTION 1 .  Short Title. This Act shall be known as the "Department of Information 
and Coiiimunications Technology Act of 2005." 
SEC. 2. Dcclrirntion ofPolicy. It i s  hereby declared the policy of the State: 
a. To enswe the provision o f  a strategic, reliable, cost-efficient and citizen-ccnlric 
information and coniniunications technology (ICT) infrastructure, systems and 
resources as instruinents of nation-building and global competitiveness; 
b. To foster a policy environment that will promote a broader market-lcd 
development of the ICT and ICT-enabled services sectors, a level playing field, 
partilership between the public and the private sectors, strategic alliance with 
foreign investors and balanced investments between high-growth 
and 
econoinicall y-depressed areas; 
c. To foster and accelerate the convergence of ICT facilities; 
<I. To ensure universal access and high-speed connectivity at fair and reasotiahle 
costs; 
c. To eiisure the availability and accessibility of information and cotnmunications 
scrv~ccs i n  areas not adequately served by the private sector; 
f. To proniote the widespread use and development of emerging ICT; 
g. To proniote and assist the development of local ICT content, applications and 
sesvices; 
11. 
To establish a strong and effective regulatory system that will ensure consuincr 
prolection and welfare and foster a healthy competitive environment; 
To promote the development of ICT expeilise in the country's humiln capital to 
enahlc Filipinos to compete in a Ijst-evolving infoiination and communicatioiis 
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age: 
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IC. 
T o  ensure the growili of the 1CT and ICT-enabled services sectors; 
I‘o 131-escrve thc rights of individuals to privacy and confidentiality of‘ thcir 
personal i niortnation; 
To encournge the use of ICT for the tlevelopment and promotion or the country’s 
arts and culture, history, education, public health and safety. and other socio- 
civic puq>oses; 
I. 
111. To sustain the dcvelopment of‘ the national postal system as an integral 
component of thc overall developnrent oflCT in tlie country; 
t i .  To ensure the security of ICI‘ inrrastiuctures and assets of individuals and 
businesses stored therein; 
o. To empower, through the use of ICT, the disadvantaged segments of the 
population, including persons with disabilities, such as the physically, 
emotionally or inentally challenged. 
SEC. 3. D(:fi!ii/ion cy’ 7i~rnu. As used ill this Act, tlie following terms arc dcfinetl as 
Ihl lows: 
a. “lnfoniiation and Communications Technology” or “ICT” shall mean the 
totality of electronic means to collect, store, process and present itifonnation 
to end-users in support of their activities and services. It consists of computet- 
systems, orlice systems and coiisuiner electronics. as well as networked 
information infrastructure, the components of which include telephone, cable. 
wireless and satellite systems, the fntemet, lax machines and computers; 
b. “Electmnic Government” or “E-Govemment” shall mean the application of 
I C T  in government processes to bring about efficient, responsive, ethical. 
accountable and transparent government service; 
c. “ICT Sector” shall mean telecoininunicatious operators, ICT equipiiiciit 
manufacturers, ICT solution providers, Internet service providers, IC‘T 
training institutions, so ttwarc developers and ICT-enabled service providers; 
d. “IC’T-Etiabled Services Sector” shall mean dEshoring and outsourcing service 
providers, 
including 
call 
centers, back 
office processing, 
software 
development, medical or legal transcription, animation, game development, 
engineering or architectural design, and othcr services that require tlie intrinsic 
use of a networked information infi-astructurc; 
e. “Chief Inforination Officer” or T10” shall mean the title given to the hoard 
level head of ICT in an organization responsible for the development and 
tnaintenance of the organization’s ICT systems and applicatioiis. 
SEC. 4. Crcc//ioii of /he IIeportmm/ qf /njiirmot;o~ nwd Conir,lrrrlicntiorls Tech/ioiogi~. 
T l w c  is hcrehy crcated the Department of Inforination and Coiniiiunications Technology. 
Iict-ciiiaftcr rcferrcd to as the Department, which shall carry out the above-declared policy 
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t~inctiotis: 
iind m t i n i c  tlic coiiiinunications-related powers and functions of the Departincnt of 
‘1.1 anspoi-tntion and Communications (DOTC). 
SEC. 5. A % I I I ~ ( / ~ L ~ .  
The Dep:ii?iiient shall bc the primary policy, planning, coordinaltng, 
iniplcinciiting. regulating and administrative entity of the executive brancli of thc 
Govcriiiiiciit tliat will plan, promotc and help develop the country’s ICT sector. 
SEC. 5. f’oiwi..s urrd FwicIioiu Tlic Dcpw.tiiien1 shall exercise fhe following ~?owcrs 
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Forindate, recommend and iinpleiiient national policies, plans, programs and 
g~iiclclincs for the ICT and ICT-enabled services sectois that will proinotc 
wider use iod development of ICT and provide increascd and coiivciiieii[ 
access by the citizens to the same; 
Initiate, Iiarinoni7,e and coordinate all ICT plans and initiatives of government 
agencies to ensure overall consistency and harmony with e-govcminent 
objectives in particular, atid national objectives in general; 
Repi-eseiit and negotiate for Philippine interest on matters pertaining to ICT in 
international bodies; 
Develop and maintain national ICT developiiient plans and establish nnd 
adiiiiiiister comprehensive and integrated programs for 1CT with due 
consideration lo advances on convergence and other emerging technologics; 
and for this purpose, may invite any agency, corporation or organization, 
whether public or private, whose development programs in ICT are an iiitcgral 
part thereof, to participate and assist in the preparation and implementation o f  
such programs; 
Promote knowledge, infoilnation and resource sharing, database huilding and 
agency networlting linkages among various governinent agencies; 
Ensure the development and protection of an integrated goveriniient 
inliirmatioii and communications infrastructure and coordinate all rclcvant 
governinent entities, taking into consideration the inventory of existing 
maiipower, plans, programs, proposals, software and hardware, and the 
installed systems and programs; 
Provide an integrated framework in order to optimize all govcrlilnent ICY 
resoui-ces and networks and the identification and prioritization of all c- 
government systems and applications as provided for iii the Govertiment 
Information Systems Plan (GISP) and tlie Medium Term Philippine 
Development Plan (MTPDP); 
Coordinate and support tlie generation and acquisition of necessary resources 
as may be appropriate for the development. inarketing. growth and 
competitiveness ofthe Philippine ICT and ICT-enabled seivices sectors; 
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Devclop, impleinent and improve, in coordination with concerned government 
agencies antl industry associations. the government's ICT capabilities and 
tietcnnine tlie personnel qualifications and other standal-ds essential to the 
efl'ective developiiirnt and opcratioii of governiiienl inforination 
and 
coni in tin i cati ons in fias tru ct ure; 
Encourage and establish guidelines for the use of public-private partnerships in 
the iiiipleiiientation of ICT projects for government agencies in order to fast- 
track said projects and provide reasonable return-on-investtlient for tlie privatc 
sector, including but not limited to Build-Opel.ate-Transfer (BOT) mechanisms; 
k. Assess, review and supporl ICT rcscarcli and developiueiit programs of the 
government in coordination with the Department of Science and Technology 
and other institutions concerned; 
Establish and prescribe rules and regulations for tlie establishment, operation 
and ~iiaintenance of ICT infrastructure in unserved and underserved areas, i n  
consultation with the private sector, local government units (LGUs) and the 
academe; 
i. 
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111. Provide policy-direction and guidance in ICT-related aspects for tlie operation 
and niaintenance o f  a nationwide postal system that shall include inail 
processing, delivery services, and money remittance and payment services; 
11. Assist antl provide technical expertise in the development of guidelines to the 
Intellectual Property Office ("0) in the enforcenient and adminislration of 
laws, standards, rules, and regulations govci-ning ICT ; 
0, I n  coordination with concerned agencies, the private sector and relcvant 
international bodies, ensure consumer protection and welfare, and protect the 
rights of consumer and business users to privacy, security and confidentiality; 
I-lar-nionize, synchronize and coordinate with appropriate agencies all ICT and 
c-coinnierce policies, plans antl programs; 
q. Coordinale with the Department of Trade and Industry in the promotion of 
trade and investment opportunities and protection of' investor interests in thc 
ICT and ICT-enabled services sectors; 
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I n  coordinatioii with concerned agencies, promote strategic partnership and 
alliances among and between local and international ICT firms and institutions, 
rescarcli and development, educational and training institutions, and technology 
pi-o\.itlers. developers a1~1 maiinfacluret.s, to specd up industry growth antl 
cr\hance global competitiveness; 
In coordinatioii with concerned agencies, plan and implenlent such activities as 
may be appropriate to enliancc the competitiveness o f  Pliilippinc worlte~-s, 
lirnis, and small and inediuni enterprises in the global mal-kets for ICT ant1 
IC"l-enahlet1 services; 
s. 
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t. 
In coordination with concerned agencies, establish antl recommend tlic 
adoption or qualification standards and enhance the career opportunities of 1CT 
workers i n  government; 
11. I n  coordination with the Departiiient of Education, Commission on I-lighcr 
Education and Teclinical Etlucatioii ant1 Skills Devclopnlcnt Aulliority. 
ihrmulate policies and initiatives to proniote ICT and ICT-enahlcd scr~ic'cs 
education and the development. promotion antl application of ICT iii education 
in a manner that is consistent with the national goals and objcctivcs. and 
I-csliniisibe to the human resource needs of the ICT and 1CT-enabled services 
sectors; 
v. Facilitate the creation of the Chief Information Officer (CIO) Council, which 
shall consist of ClOs of national government agencies (NGAs) with at least the 
rank of Assistant Secretary, with the Secretary serving as the Chaii-man, to 
assist the Department in iinpleiiienting e-government initiatives; 
w. Administer the E-Government Fund as specified in Section 15 and, in 
coordination with tlie Department of Budget and Management, establish 
guidelines for the disbursement and management of the E-Goveriuiient Fund, 
including the monitoring and evaluation system of projects funded under the 
said fund. 
SEC. 7. C'omposi/iorz. The Depaitiiieiit of Information and Coiiimunieations Technology 
sliiill hc headed by a Secretary. The Departiiieiit proper shall be coinposed of the Office 
ol'tlic Secretary, the offices ofthe Undersecretaries and the Assistant Secretaries. 
S EC'. 8. Sccrr/nr:l: of Ir!fi~rrttntiorz arid Conzrriitnictrtiorrs Teclzriologv. The Secretary shall 
hc appoiiitcd by tlic I'resident, subject to confiriiiation by tlic Comniiissioii on 
Appointments. 
Vie Secretary shall have the following functions: 
a. Provide executive direction and supervision over the entire operttions of thc 
Department and its attached agencies; 
13. Establish policies atid standards for the effective, efficient and econonucal 
oper:ition ofthe Department, in accordance with the programs of Goveiiiment; 
C. I<ationiilize delivery systems necessary for the effective attainment of the 
objectives of the Depa~-tinent, in accordance with the progra~ns of Governmclit; 
(I. lieview and approve request Tor financial and manpower resources oi' all 
operating offices of the Department; 
c. Designate and appoint officers and employees oE the Department, excluding thc 
Undersecretaries. Assistant Secretaries, and Regional and Assistant Regional 
Directors, i n  accordance with the Civil Set-vice laws, rules and regulations; 
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Coordinatc with LGUs, other agencies and puhlic and private interests groups, 
including non-governinent organizations (NGOs) antl people’s orgonizatioiis 
(POs) on Depai’tincnt policies and initiatives; 
g. Advice the President on the proniulgation of executive and administrativc 
ordcrs and rcgulalory and legislative proposals on matters perteining to ICT 
tlevclopment: 
11. 
Set-se as a member of the Governinent Prncurement Policy Boarti as 
established by Republic Act No. 91 84; 
Serve as the Chairinan of tlic Bond of the I’hilippine Postal Corporation in 
accordance with Republic Act No. 7354 and thc Corporation Law; 
Foi-m~ilatc such rules and regulations and exercise such other powers as may he 
required to iniplenient the objectives oftliis Act; 
k. Perform such other tasks as may be provided by Law or assigned by the 
President from time to time. 
I. 
.j. 
SEC. 9. Ui7dersccrctnrics. The Secretary shall be assisted by three (3) Undersecretaries, 
\vIiu shall be appointed by the President upon tlie recommendation of the Secretary: 
provided tliat one (I ) of the Undersecretaries shall be a career officer coming fioni r:inlts 
of’ misting government inforination and communications agencies and offices or 
qtialilietl ICT professionals in the private sector. 
SIX. I O .  ,4ssistcrrit Sec-rctnries. The Secretary shall be assisted by three (3) Assistant 
Sccrctaries wlio shall be career officers appointed by the I’resident upon the 
rccoiiiiiieiitlation of the Secretary. 
SEC. 11. Qrid~ficcitiorrs. No person shall be appointed Secretary, Undersecretary or 
Assistant Sccrctary of the Department unless he is a citizen and resident of the 
I’liilippines of good rnoral character, and of proven integrity. 
SEC. 12. Regiorinl Qlficcs. The Department shall be authorized to establish, operate, and 
maintain I<egion;il Offlcc in each of the adiniriistrative regions of the country as the nccd 
iirises. The regional olfice shall be headed by a Regional Director, who may he assisted 
hy one ( 1  ) Assistant Regional Director. The Regional Offices shall have, within tlreir 
rcspcctive administrative rcgions, the following functions: 
a. Impletnent laws, policies, plans, programs, projec.ts, rules antl regulations of 
tlie Department; 
13. PI-ovide efficient and effective service to the people; 
c. Coordiiiate with regional offices of other tlepartments, offices, and agencics; 
d. Coordinate will1 LGUs; 
e. Perform such other functions as may he provided by law or assigned by the 
Secretary. 
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a. The following agencies are herehy abolished, and their powers and functions, 
applicable funds and appropriations, records, equipment, property, and 
pel-sotinel transferred to the Depattmcnt: 
I, All operating units currently existing in thc Commission on Iiifoi-mation 
and C om inun i cat i ons Tech ino I og y ( C ICT) : 
2. National Coinputel- Center (NCC); 
3. ~Telecoiiimunicatioiis Office (TELOF); 
4. All 
operating 
units 
of the 
Department 
of Transportation 
and 
Communications (DOTC) with functions and responsibilities dealing with 
coinmunications. 
All ollices, services, divisions, units and personnel not otherwise covercd hy 
tliis Act for transfer to the Department shall be retained under the DOTC, which is 
hereby renamed the Department of Transportation. 
b. The following agencies are hereby attached to the Department for policy and 
program coordination, and shall continue to operate and hnction in 
accordance with the charters, laws or orders creating them, insofar as they are 
not inconsistent with this Act: 
I .  National Telecoiiitnunications Commission; 
2. Philippine Postal Corporation. 
c. The laws and rules on government reorganization as provided for in Republic 
Act No. 6656. otherwise known as the lieorganization Law, shall govern the 
reorgan irnt ion pi-ocess of the Department, 
SEC. 14. /-'o.~/n/ Rcp/ntor;y Au//iori[y. The exclusive power and authority to regulate the 
postal tlclivery services industry, as provided for under Presidential Decree No. 240 and 
I?epublic Act No. 7354, is hereby transferred to the Department. 
SIX. IS. E-Goi,eixwieii/ Fiirid. There shall be an E-Government Fund to be administered 
by tlie Departinent, which is a Special Account in tlie General Fund, created specifically 
to firrid cross-agency and citizen-centric govcrnment 1CT projects. The Fund shall be 
tiscd to support and co-finance projects that enable the government to expand its ability to 
conduct activities electronically and provide li.ontline services through the development 
arid iiiipleriientatio~i of innovative uses of the Internet or other emerging technologies. 
I Iuwcver, internal IT systems meant to support the agencies' IT operations shall hc 
dial-get1 against thc agencies' own budgetary allocation. 
SEC. 16. /nip/e,7ieii/n/ion q/ the X/'Wevc6. 
111 consonance wilh the objectives of 
Ahinistrntive Order No. 332 and Republic Act No. 8792, the primary respoiisihility 
over the iinplcmcntation of the IIPWeh or [lie electronic online rietwoi-k of the 
g._ovcrniiicnt which shall serve as initial platrotin of the Government Information 
Inl'rastruct~1re (GII). is lierehv transferred to the Deimtmcnt. For this purpose. thc 
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Ucliartincnt shall continue utilization of all funds, monies, interests. and properties 
oii tst atid i ins wid accruing from t lie RP Web. 
S EC. 17. Scdoroi m d  I/7dw/r:v 7osk Focws. Thc Departiiient may create sectoral iind 
industry (ask times. (cclintcal working gi-oulis, advisory bodies or conmiittees fix the 
lilt-tlicrance of its ohjectivcs. Additional private sector representatives. sucli :IS from 
iiciidcnic ant1 ictleration oi private industries directly iuvolved in ICT. as well as othcr 
NGAs. LGUs ontl government owned and controlled corporations (GOCCs), may be 
appointed to tliese working groups. Goveiiiment IT professionals may also he tapped to 
pLtrtnlic i n  the work of the Depaiment through these working groups. 
SEC. 18. Srf.icc/irre nrid Stqffhg fntton. The Department shall determiiic its 
orgniiizational structure and create new divisions or units as it may deem necessary. antl 
slid1 appoint officers and employees of the Depatltnent in accordance with the Civil 
Service LAW, rules, and regulations. 
SEC. 19. Mogfin CcuYn. Employees of the Department shall he covered by Republic Act 
8430, which provides a magna r a t a  for scientists, engineers, researchers and other 
sciencc and technology personnel in the government. 
SEC. 20. Sq7nrntiori from Service. Employees separated from the service as a result of 
iliis reorganization shall, within ninety (90) days therefrom, receive the separation antl 
rctii'cnicnt benefits to which they may be entitled under Executive Order No. 366. 
I'rovttlecl that such separation pay and retirement benefits shall have priority of payment 
out 0 1  the savings of the department or agency. 
SIX. 2 1. , , l / ~ ~ j i . ~ ~ ~ f ~ ; ~ r / i o ~ ~ .  
The amount needed for the initial iniplenlentation of this Act 
sliall he taken from the current fiscal year's appropriation of the ClCT through the Ol'fjcc 
01' tlic i'rcsidcnt and all agencies herein absorbed by or attached to the Departnicnt. 
'flicrcatlei-, tlie aniount needed for the operation and maintenance of'the Department shall 
he included in the General Appropriations Act, provided that for the next fiscal year, the 
aniount shall he One Billion Two Hundred Million Pesos (1'1,200,000,O0O.OO). 
SEC. 22. /?q~eci/i/ig 
Clouse. A11 laws, decrees, executive orders, rules and regulations antl 
other issuanccs or parts thereof which are inconsistent with this Act are liereby rcpcaletl. 
ii i n  c ntl ctl or in od i fi ed accordingly . 
SEC. 23. S c p r d d i [ v  Cla~rsc. If any provision of this Act shall be declared 
~~i~constilutional 
or invalid, tlie other provisions not othetwise affected shall remain in full 
force and efl'ect. 
SEC. 24. cfli,r/ii,i/y Clouse. This Act shall take effect fifteen (15) days fi-onl its 
publicaticin in at lcast two (2) papers of general circulation 
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