THIRTEENTH CONGRESS OF THE REPUBLIC 
1 s  REGULAR SESSION 
OF THE PHILIPPINES 
SENATE 
S.B. NO. 
1795 
EXPLANATORY NOTE 
The information and communications technology (ICT) is a vital 
tool in the development of an electronic society. 
Being connected 
digitally provides us with easy access and fast links, thus, making the 
use of ICT highly essential in our economic growth, educational 
advancement, awareness enhancement, market facilitation and public 
participation. 
The passage of Republic Act 8792, the E-Commerce Act, has 
liberalized the country from the confinements of the traditional way of 
transacting business and effecting communications. However, due to the 
dispersed attention of different agencies towards implementing its 
mandate, the country has lagged behind other Asian neighbors in terms 
of linking itself internally. 
Hence, it is but necessary to fortify the 
government's commitment to making the advantages of the ICT available 
to the Filipino people. 
Issues on infrastructure, regulations, convergence, security, 
digital, divide, interoperability of laws, among others, must be focused on 
by a single department to intensify government initiatives to catch up 
with the rest of the wired world. Hence, the creation of a separate key 
department that will 
focus 
exclusively on 
the 
promotion 
of 
communication and information technology is deemed vital. 
This bill seeks to transform and integrate the existing Department 
of Transportation and Communications, National Computer Center and 
other ICT functions of other key agencies into two separate departments, 
namely, the Department of Information and Communications Technology 
(DICT) which shall be the primary agency in charge of the promotion and 
development of integrated and strategic information and communications 
technology (ICT) systems and reliable and cost-efficient communications 
facilities and services, and the Department of Transportation which will 
concentrate on government programs and projects related to 
transportation. 
This proposed integration of functions is in fact putting in place a 
systematic direction in our government bureaucracy rather than 
establishing an unnecessary addition to the existing ones. 
As declared in Article I1 Section 24 of the Constitution, "The State 
recognizes the vital role of communication and information in nation- 
building. ' 
Therefore, it is in pursuance of this policy and the 


consideration of the above premises that the passage of this bill is 
earnestly sought. 
n 


THIRTEENTH CONGRESS OF THE REPUBLIC 
1% REGULAR SESSION 
OF THE PHILIPPINES 
AN ACT 
CREATING 
THE 
DEPARTMENT 
OF 
INFORMATION 
AND 
COMMUNICATIONS TECHNOLOGY, DEFINING ITS POWERS AND 
FUNCTIONS, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and the House of Representatives in 
Congress assembled 
SECTION 1. Short Title - This Act shall be known as the 
"Department of Information and Communications Technology Act of 
2004." 
SEC. 2.. Declaration of Policy - It is hereby declared the policy 
of the State: 
a. To ensure the provision of strategic, reliable and cost-efficient 
information 
and 
communications 
technology 
(ICT) 
infrastructure, systems, and resources as instruments for 
nation-building and global competitiveness; 
"Information and Communication Technology (ICT) is defined 
as the totality of electronic means to collect, store, process and 
present information to end-users in support of their activities. 
It consists of computer systems, office systems and consumer 
electronics, as well as networked information infrastructure, 
the components of which include the telephone system, the 
Internet, fax machines and computers. 
b. To ensure a policy and legal government that will promote a 
level playing field, partnerships between the public and the 
private sectors, strategic alliances with foreign investors, 
balanced investments between high-growth and economically- 
depressed areas, and broader private sector participation in 
ICT computer; 
c. To foster and accelerate development of convergent networks of 
ICT facilities; 
d. To ensure universal access and high-speed connectivity at fair 
and reasonable cost; 
e. To ensure the provision of information and communication 
services in areas not adequately served by the private sector; 
f. To foster the widespread use and application of emerging ICT; 


g. To establish a strong and effective regulatory system that will 
ensure consumer protection and welfare and foster a healthy 
competitive environment; 
h. To promote the development of ICT expertise in the country’s 
human capital to enable Filipinos to compete in a fast-evolving 
information and communication age; 
i. To ensure the growth of the ICT industries; 
j. To preserve the rights of individuals to privacy and 
confidentiality of their personal information; 
k. To encourage the use of ICT in support of efforts for the 
development and promotion of the country’s arts and culture, 
history, education, public health and safety, and other socio- 
civic purposes; 
To sustain the development of the nationwide system as an 
integral component of the overall development of ICT in the 
country. 
1. 
SEC. 3. Creation of the Department of Information and 
Communications Technology 
- 
There is hereby created the 
Department of Information and Communications Technology, hereinafter 
referred to as the Department, which shall carry out the above-declared 
policy and assume the communications-related powers and functions of 
the Department of Transportation and Communications (DOTC). 
SEC. 4. Mandate - The Department shall be the primary policy, 
planning, coordinating, implementing, regulating and administrative 
entity of the executive branch of the Government that will promote, 
develop, and regulate integrated and strategic ICT systems and reliable 
and cost-efficient communication facilities and services. 
SEC. 5. Powers and Functions - The Department shall perform 
the following functions: 
a. Formulate and recommend national policies and guidelines that 
will promote ICT and the wider use of the internet and other 
cyberspace 
infrastructure 
and 
exchanges 
of 
universal 
application, in consultation with the private business sector, 
relevant civil society institutions, and other private and public 
entities, such as educational and training sectors; 
b. Establish and administer comprehensive and integrated 
programs for ICT at the national, regional, and local levels with 
due consideration to advancement in convergence and other 
emerging technologies; and for this purpose, may call on any 
agency, corporation or organization, whether public or private, 
whose development programs in ICT are an integral part 
thereof, to participate and assist in the preparation and 
implementation of such programs; 
c. Design, implement, and ensure the protection of an integrated 
government information and communications infrastructure 
development program 
that will 
coordinate all 
existing 
government entities, taking into account all their existing plans, 
programs, proposals, software and hardware 
inventory, 
installed systems, and programs; 
d. Develop and implement, in coordination with concerned 
government 
agencies, a comprehensive 
ICT 
application 
capability in the national government and determine the 


personnel qualification and other standards essential to the 
integrated and effective 
development and 
operation of 
government information and communications infrastructure; 
e. Encourage and establish guidelines for private sector funding of 
ICT projects for government agencies in order to fast-track said 
projects which provide reasonable cost-recovery mechanisms for 
the private sector, including but not limited to Build-Operate- 
Transfer (BOT) mechanisms; 
f. Assess, review and provide direction to ICT research and 
development program of the government in coordination with 
other institutions concerned; 
g. Establish and prescribe rules and regulations for the 
establishment, operation and maintenance of ICT facilities in 
areas not adequately served by the private sector, in 
consultation with the private business sector, civil society, and 
other private and public entities, such as educational and 
training sectors; 
h. Formulate such rules and regulations and exercise such other 
powers as may be necessary to implement the objectives of this 
Act; and 
i. Perform such other tasks as may be provided by law or assigned 
by the Resident from time to time. 
SEC. 6. Composition - The Department of Communication 
Technology shall be headed by a Secretary. The Department proper shall 
be composed of the Office of the Secretary, the Offices of the 
Undersecretaries and the Assistant Secretaries. 
SEC. 7. The Secretary of the DCT - The Secretary shall be 
appointed by the President, subject to the confirmation by the 
Commission on Appointments. 
The Secretary shall have the following functions: 
a. 
b. 
C. 
d. 
e. 
f. 
Provide executive direction and supervision over the entire 
operations of the Department of Communications Technology 
(DCT) and its attached agencies; 
Establish policies and standards for the effective, efficient and 
economical operation of DCT, in accordance with the programs 
of the Government; 
Rationalize delivery systems necessary for the effective 
attainment of the objectives of DCT, in accordance with the 
programs of the Government; 
Review and approve requests for financial and manpower 
resources of all operating offices of DCT; 
Designate and appoint all officers and employees of DCT, 
excluding the Undersecretaries, Assistant Secretaries, and 
Regional and Assistant Regional Directors, in accordance with 
Civil Service laws, rules and regulations; 
Coordinate with local government units, other agencies, and 
public and private interest groups, including NGOs and Pos on 
Department policies and initiatives; 
Advise the President on the promulgation of executive and 
administrative orders and regulatory and legislative proposals 
on matters pertaining to ICT development; 


h. Formulate such rules and regulations and exercise such other 
powers as may be necessary to implement the objectives of 
this Act; and 
i. 
Perform such other tasks as may be provided by law or 
assigned by the President from time to time. 
SEC. 8. The Undersecretaries - The Secretary shall be assisted 
by three (3) Undersecretaries, who shall be appointed by the President 
upon the recommendation of the Secretary: Provided, that, one (1) of the 
Undersecretaries shall be a career officer coming form the ranks of 
existing government information and communications agencies and 
offices or qualified IT and ICT professionals in the private sector. 
SEC. 9. Assistant Secretaries - The Secretary shall be assisted 
by three (3) Assistant Secretaries who shall be career officers appointed 
by the President upon the recommendation of the Secretary. 
SEC. 10. 
Qualifications 
- 
No person shall be appointed 
Secretary, Undersecretary or Assistant Secretary of the Department 
unless he is a citizen and resident of the Philippines, of good moral 
character, and of proven integrity. 
SEC. 11. 
Regional Offices - 
The Department shall have a 
Regional Office in each of the administrative regions in the country. The 
Regional Offices shall essentially be line in character and shall be 
responsible for the delivery of all front line services of the Department. 
Each Regional Office shall be headed by a Regional Director who shall be 
assisted by Assistant Regional Director. 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 Department; 
b. Provide efficient and effective service to the people; 
c. Coordinate with regional offices of other departments, offices, 
and agencies; 
d. Coordinate with LGUs; and 
e. Perform such other functions as may be provided by law or 
assigned by the Secretary. 
SEC. 12. Transfer of Agencies and Personnel. 
a. The following agencies and institutions are hereby absorbed by 
the Department: 
1. 
2. 
the National Computer Center under the Department of 
Science and Technology and 
all offices, services, division, units, and personnel of the 
DOTC with functions and responsibilities dealing with 
communications. 
All offices, services, divisions, units and personnel not 
otherwise covered by this Act for transfer or absorption into 
the new Department shall continue to perform their 
transportation-related functions and therefore, shall be 
retained under the Department of Transportation and 
Communications which is hereby renamed the Department 
of Transportation. 


The foregoing transfer of powers and functions shall include all 
applicable funds and appropriations, records, equipment, 
property, and personnel as may be necessary. 
b. The following agencies are hereby attached to the Department 
for policy and program coordination, and shall continue to 
operate and function in accordance with Charters, laws or 
orders creating them, and with such other functions and 
responsibilities as it shall be mandated to regulated ICT in 
accordance with law and insofar as they are inconsistent with 
this Act: 
1. The National Telecommunications Commission (NTC), and 
2. Philippine Postal Corporation 
The Department shall not exercise any power which will tend to 
influence or effect a review or a modification of the quasi- 
judicial functions of the NTC. 
c. The law and rules on government reorganization as provided for 
in Republic Act 
No. 
6656, otherwise known 
as the 
Reorganization Law, shall govern the reorganization process as 
the Department is created. 
SEC. 13. Transfer of Agencies and Personnel. 
a. All offices, services, divisions, units and personnel of the DOCT 
with 
functions 
and 
responsibilities 
dealing 
with 
communications shall be absorbed by or attached to the 
Department of Communications Technology, as the case may 
be. 
b. The National Computer Center under the Department of Science 
and Technology is hereby absorbed by the Department of 
Information and Communication Technology. 
c. The following agencies are hereby attached to the Department of 
Communications Technology for supervision and policy and 
program coordination and integration, and shall continue to 
operate and function in accordance with their characters, laws 
or orders creating them, insofar as they are not inconsistent 
with this Act: 
1. National Telecommunications Commission; 
2. Philippine Postal Corporation; 
3. Telecommunications Office (TelOf); 
4. Municipal Telephone Project Office. 
d. The law and rules on government reorganizations as provided 
for in Republic Act No. 6656, otherwise known as the 
Reorganization Law, shall govern the reorganization process of 
the Department of Communication Technology . 
SEC. 14. Implementation of the W 
eb - In consonance with 
the objectives of Administrative Order No. 332 and Republic Act No. 
8792, the primary responsibility over the implementation of the RPWeb 
or the electronic online network of the government which shall serve as 
initial platform of the government information infrastructure (GII), is 


hereby transferred to the Department. For this purpose, the Department 
shall continue the utilization of all funds, monies, interests, and 
properties outstanding and accruing from the RPWeb. 
SEC. 15. Sectoral and Industry Task Forces - The Department 
may create sectoral and industry task forces, technical working groups, 
advisory bodies or committees for the furtherance of its objectives. 
Additional private sector representatives, such as from the academe and 
federation of private industries directly involved in ICT, as well as other 
National Government Agencies (NGAs), LGUs, and GOCCs, may be 
appointed to these working groups. Government IT professionals shall 
also be tapped to participate in the work of the Department through 
these working groups. 
SEC. 16. Structure and Staffing Pattern - The Department 
shall determine its organization structure and create new divisions or 
units as it may deem necessary, and shall appoint officers and employees 
of the Department in accordance with the Civil Service law, rules, and 
regulations. 
SEC. 17. Separation from Service - Employees separated from 
the service as a result of this reorganization shall, within ninety (90) days 
therefrom, receive the retirement benefits to which they may be entitled 
under existing laws, rules, and regulations. 
SEC. 18. Appropriation - The amount needed for the initial 
implementation of this Act shall be taken from the current year’s 
appropriations of the DOCT and all government agencies herein absorbed 
by or attached to the Department. Thereafter, the amount needed for the 
operations and maintenance of the Department shall be included in the 
General Appropriations Act. 
SEC. 19. 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. 20. Separability Clause - If any provision of this Act shall 
be declared unconstitutional or invalid, the other provisions not 
otherwise affected shall remain in full force and effect. 
SEC. 21. Effectivity Clause - This Act shall take effect after 
fifteen (15) days from its publication in at least two (2) papers of general 
circulation. 
Approved,