NINETEENTH CONGRESS OF THE PHILIPPINES 
REPUBLIC OF THE PHILIPPINES
First Regular Session 
1.
S. B. No. 298
'^',r4<>'/c©ff!cr* of thi?
*22 JUL 12 A 8 51
«liCEIVt D BY;
INTRODUCED BY SENATOR ALAN PETER "COMPANERO" S. CAYETANO
AN ACT
ESTABLISHING A FRAMEWORK FOR A SMART PHILIPPINES, ENSURING 
ACCESSIBLE AND AFFORDABLE INTERNET FOR ALL, APPROPRIATING FUNDS
THEREFOR, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Ingrained in our fundamental law is our high regard and recognition of the 
importance that science and technology plays in improving the lives of every Filipino 
and its role in taking our country to the next phase of nation building. Section 10, 
Article XIV of the 1987 Philippine Constitution provides that "science and technology 
are essential for national development and progress. The State shall give priority to 
research and development, invention, innovation, and their utilization..." Section 12, 
Article XIV of the Constitution also states that "the State shall regulate the transfer 
and promote the adaptation of technology from all sources for the national benefit. It 
shall encourage the widest participation of private groups, local governments, and 
community-based organizations in the generation and utilization of science and 
technology."
The term "smart cities", at its core, means leveraging new and disruptive 
technologies to address a broad range of urban problems.1 Smart cities are the future 
of urban living because technology will play a significant role in governance, making 
social services available, and ensuring that the future is sustainable for future 
generations. As the country strives to create more eco-friendly smart cities with 
improved livability and quality of life for all, there is still work to be done as new 
technologies and other innovative ideas for city living emerge in the coming years.2
In a recent study, state-run think tank Philippine Institute for Development 
Studies (PIDS) said that the Philippines has begun its path toward building smart 
cities but it continues to face challenges along the way. Among the biggest issues are 
operational costs and lack of interoperability. Other challenges include the digital 
divide, lack of policies and standards in implementing smart city initiatives, and 
change in administration. Amid the still high number of challenges in developing 
smart cities, PIDS emphasized that national government agencies have a significant
1 https://law.asia/philippine-smart-cities/
2 https://opengovasia.com/the-philippines-to-expand-smart-city-initiatives/


role to play in addressing such issues.3 This is why this measure aims to bring 
together all the relevant national government agencies to provide an effective and 
long-term solution and framework into which our country can move forward to 
create more smart cities and municipalities in our country.
At the core of smart cities is the digitalization of government, the industries, 
institutions both public and private, and communities throughout the country. 
Broadband connection and digital literacy are critical to participation in society, the 
economy, and to access healthcare and essential services, obtain education, and 
establish or grow businesses, and in employment.
We therefore must modernize our digital infrastructure to ensure that all 
Filipinos have access to, and the use of, affordable, quality, and up-to-date 
information and communication technologies. This includes having reliable and 
affordable broadband internet service for everyone; internet-enabled devices that 
meet the needs of the user, whether for work, commerce, education, among others; 
and applications and online content designed to enable and encourage participation, 
interaction, and development. It also includes access to digital literacy training; digital 
and technical support; and ensuring online privacy and cybersecurity.
This bill creates the Smart Philippines Council composed of all the relevant 
government agencies and organizations, and serves as the overall policy-making and 
implementing body of the Act. The Smart Philippines Council is tasked with creating 
a "Smart Philippines Initiative", a five-year strategic action plan, with particular focus 
on the following sectors: digital infrastructure development, health, transportation, 
education, finance, and urban development. Based on the said Smart Philippines 
Initiative, a "Smart Philippines Resource Guide" shall also be created, which is 
designed to assist cities and municipalities in developing and implementing their own 
smart programs as well.
Our growing population and its corresponding increasing urban challenges 
have pushed our country and the rest of the world to look at the creation of smart 
cities as a solution. This bill aims to fast-track all efforts towards the development of 
smart cities and smart municipalities to ensure that each Filipino's future is secured 
by continually innovating and strengthening our capabilities through technology and 
new opportunities. This measure also seeks to ensure the digital inclusion of every 
Filipino so that each may utilize the full potential of information and communication 
technologies for, among others, education, commerce, and health. All these 
considered, we will be on our way to becoming a Smart Country.
Foregoing considered, the immediate passage of this bill is sought.
>ANERO" S. CAYETANO
ALAN PET
https:/ /www.philstar.com/business/2022/02/02/2157878/challenges-remain-developing-smart-cities- 
Philippines


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NINETEENTH CONGRESS OF THE PHILIPPINES 
REPUBLIC OF THE PHILIPPINES
First Regular Session
S. B. No. 298
122 JUL 12 A8 SI
Rb’CtiV'EO BY:
INTRODUCED BY SENATOR ALAN PETER "COMPANERO" S. CAYETANO
AN ACT
ESTABLISHING A FRAMEWORK FORA SMART PHILIPPINES, ENSURING 
ACCESSIBLE AND AFFORDABLE INTERNET FOR ALL, 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. Short Title. - This Act shall be known as the "Smart Philippines
Act".
SECTION 2. Declaration of Policy. - The State recognizes science and 
technology as essential for national development and progress. It thus gives priority 
to research and development, invention, and innovation and promotes smart 
technologies.
In the same way that commerce and education require school buildings, roads, 
and other physical infrastructure, the digital economy needs the development of a 
digital highway for e-commerce, e-health programs, education, public safety, and 
government services.
Achieving accessible and affordable access to internet service and information 
and communication technologies is a matter of social and economic justice. Thus, the 
State ensures that all Filipinos shall have access to affordable, quality, and up-to-date 
information and communication technologies. This includes having reliable and 
affordable internet service for everyone; internet-enabled devices that meet the 
needs of the user, whether for work, commerce, and education, among others; and 
applications and online content designed to enable and encourage participation, 
interaction, and development. It also includes access to digital literacy training; digital 
and technical support; and ensuring online privacy and cybersecurity.
SECTION 3. Definition of Terms. - As used in this Act, the term:
a] "Smart City" or "Smart Municipality" means a community in which innovative, 
advanced, and trustworthy information, communication, and energy 
technologies and related mechanisms are applied to:
1} Improve the health and quality of life of residents;


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2) Increase the efficiency and cost effectiveness of civic operations and 
services;
3) Promote economic growth; and
4) Create a community that is safer and more secure; sustainable, resilient, 
livable and workable.
The term “Smart City" or “Smart Municipality" also includes a city or 
municipality that:
1) Gathers and incorporates data from systems, devices, and sensors 
embedded in civic systems and infrastructure to improve the 
effectiveness and efficiency of civic operations and services;
2) Aggregates and analyzes gathered data;
3) Communicates the analysis and data in a variety of formats;
4} Makes corresponding improvements to civic systems and services 
based on gathered data;
5} Coordinates with relevant public and private sector entities [including 
entities providing electric, water, telecommunications, 
energy, and transportation services) to leverage the activities carried 
out by those entities;
6) Integrates measures to -
i. 
Ensure the resilience of civic systems against cybersecurity 
threats and physical vulnerabilities and breaches;
ii. 
Protect the private data of residents;
hi. Measure the impact of smart city or community technologies on 
the effectiveness and efficiency of civic operations and services; 
and
iv. Promote regional coordination of the activities.
As used in this Act, the term “Smart City" shall pertain to both cities and 
municipalities unless otherwise indicated.
b) “Digital inclusion" means—
1) activities necessary to ensure that all individuals in the Philippines shall 
have the opportunity to interconnect to others within and without the 
country through access to, and the use of, affordable information and 
communication technologies, such as—
i. 
reliable and affordable internet service;
ii. 
internet-enabled devices that meet the needs of the user, whether 
for work, commerce, and education, among others; and
hi. 
applications and online content designed to enable and encourage
self-sufficiency, participation, and collaboration;
2) including—
i. 
access to digital literacy training;
ii. 
provision of quality technical support; and
hi. assurance of online privacy and cybersecurity.
SECTION 4. Smart Philippines Council. - There is hereby established a 
“Smart Philippines Council" (SPC) composed of the following members:


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1. Department of Information and Communications (DICT) Secretary as 
Chairperson;
2. Department of the Interior and Local Government (DILG) Secretary as Co- 
Vice Chairperson;
3. Department of Science and Technology (DOST) Secretary as Co-Vice 
Chairperson;
As members—
1. 
Department of Environment and Natural Resources (DENR) Secretary;
2. 
Department of Human Settlements and Urban Development (DHSUD) 
Secretary;
3. 
Department of Education (DepEd) Secretary;
4. 
Commission on Higher Education (CHED) Chairperson;
4. Department of Energy [DOE] Secretary;
5. Department of Labor and Employment (DOLE] Secretary;
6. Department of Transportation (DOTr) Secretary;
7. National Economic and Development Authority (NEDA] Secretary;
8. National Privacy Commission (NPC) Chairperson;
9. President of the League of Cities of the Philippines;
10. President of the League of Municipalities of the Philippines; and
11. Such representatives of the private sector, including the industry and the 
academe, which the President appoints, upon recommendation of the SPC 
Chairperson.
SECTION 5. Smart Philippines Initiative. - The SPC shall act as the overall 
policy-making and advisory body for the fulfillment of this Act. The SPC shall, within 
six (6] months from the effectivity of this Act, create a five-year strategic action plan 
called the "Smart Philippines Initiative", with specific focus on modernizing digital 
infrastructure, health, transportation, education, finance, and urban development, for 
the cities and municipalities in the entire country.
The Smart Philippines Initiative shall contain and prioritize activities which:
1. Identify the barriers to digital inclusion;
2. Study the feasibility of providing subsidies to local government units 
[LGUs] to enable them to provide broadband service to their constituents 
and make reports and recommendations to the President and Congress;
3. Study measures and programs to ensure the affordability of the prices of 
broadband service for households, including how competition impacts the 
price of broadband service;
4. Include the necessary assessments, conducted in coordination with 
relevant private sector organizations and LGUs;
5. Demonstrate smart city technologies in repeatable ways that can rapidly 
be scaled;
6. Encourage public, private, regional, national, and international sharing of 
data and best practices;
7. Encourage private sector innovation by promoting industry-driven 
technology standards, open platforms, technology-neutral 
requirements, and interoperability;


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8. Promote the following:
a. A skilled workforce;
b. An open and competitive global market for smart city technologies;
c. Inclusion of all citizens, including minority or disadvantaged 
groups; and
d. Protocols and standards that allow the measurement and validation of 
cost savings and performance improvements associated with the 
installation and use of smart city technologies and practices;
9. Foster the growth of the smart city technology industry and workforce in 
the country;
10. Encourage the adoption of smart city technologies by communities;
11. Safeguard cybersecurity, including by promoting industry practices 
regarding cybersecurity;
12.Safeguard privacy and establish parameters and best practices for the 
management of data;
The SPG may avail itself of the expertise and services of local and international 
resource persons and consultants. The SPG shall endeavor to facilitate collaboration 
and cooperation with all relevant public and private stakeholders in the creation of 
the Smart Gity Initiative.
The Smart Philippines Initiative shall also be in congruence and shall 
complement DIGT's current initiatives, such as the E-Government Masterplan and the 
National Digital Infrastructure Program.
SECTION 6. Smart Philippines Pilot Program. The Smart Philippines Council 
shall provide technical support and expertise to cities and municipalities to enable 
the same to modernize their digital infrastructure, health, transportation, education, 
finance, and urban development
There shall be a Smart Philippines Pilot Program for cities and municipalities 
which are financially unable to independently launch their respective modernization 
programs under this Act For this purpose, the Smart Philippines Council shall choose 
five (5} cities and municipalities each from Luzon, Visayas, and Mindanao to form part 
of the pilot program that shall assist said local government units in the funding for 
the implementation of this Act
SECTION 7. Smart Philippines Resource Guide. - Based on the Smart 
Philippines Initiative, the SPG shall create a “Smart Philippines Resource Guide" 
which is designed to assist cities and municipalities in developing and implementing 
their own smart programs.
The Smart Philippines Resource Guide shall be maintained electronically on a 
website and available free of charge to the public.
SECTION 8. Lead Agency. - The DICT, in coordination with the DILG and 
DOST, shall be the primary government agency responsible for the implementation 
and enforcement of this Act. It shall ensure that the mandates provided in this Act are 
fulfilled and that interagency cooperation and the proper public and private 
partnerships are established for their accomplishments.


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SECTION 9. Report to Congress - The SPC shall submit a report to Congress 
every year following the approval of this Act, particularly on Section 5 of this Act, 
including the status and progress of the implementation of its Smart City Initiative, 
and shall make the necessary recommendations in areas where there is need for 
legislative action.
Furthermore, the lead implementing agencies of this Act shall periodically 
recommend to the President and Congress how to update the Smart Philippines 
framework given the fast pace of technological change in the world.
SECTION 10. Joint Congressional Oversight Committee. - There is hereby 
created a Joint Congressional Oversight Committee to oversee the implementation of 
this Act composed of seven Members from the Senate and seven Members from the 
House of Representatives. The Members from the Senate shall be appointed by the 
Senate President, with at least two senators representing the minority. The Members 
from the House of Representatives shall be appointed by the Speaker, with at least 
two members representing the minority.
SECTION 11. Appropriations. - For purposes of this Act, the initial amount of 
One Hundred Million Pesos (Php 100,000,000.00} is hereby authorized to be 
appropriated from the funds of the National Treasury not otherwise appropriated. 
Thereafter, the amount needed for the implementation of this Act shall be included in 
the annual General Appropriations Act.
SECTION 12. Implementing Rules and Regulations. - The DICT, in 
coordination with DILG and DOST, shall promulgate its implementing rules and 
regulations within thirty (30) days after the effectivity of this Act.
SECTION 13. Separability Clause. - If any part or provision of this Act is 
declared invalid or unconstitutional, the other parts hereof not affected thereby shall 
remain valid.
SECTION 14. Repealing Clause. - All laws, acts, presidential decrees, 
executive orders, administrative orders, rules and regulations inconsistent with or 
contrary to the provisions of this Act are deemed amended, modified or repealed 
accordingly.
SECTION 15. Effectivity. - This Act shall take effect fifteen (15} days after its 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,