FIFTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

1896

House Bill No.

Introduced by Representative Ben P. Evardone

EXPLANATORY NOTE.

This bill seeks to create a Department of Information and Communications
‘Technology (DICT) in light of the imminent need to establish a strategic, reliable,
cost-efficient and citizen-centric ICT foundation that will tap market-driven
solutions to make the country and its citizens globally competitive, promote
balanced national economic growth and support nation-building.

ICT, as we know it today, encompasses every type of electronic medium that
stores, processes and transmits information from creators to end-users. This largely
comprises the Internet, which has become the world’s major highway for
information and communications and has practically revolutionized how we think
about and behave in the world we live in. And despite the Philippines’ overall
socioeconomic condition, Filipinos have shown their proficiency in taking
advantage of ICT-based platforms. This observation has never been more
pronounced with the country’s rapid emergence as one of the world’s most prolific
business processing outsourcing (BPO) hubs, which has then paved the way not only
for millions of dollars of investments to enter the local economy but also for
providing scores of Filipinos to get employment without having to leave their
homeland and families.

While the Commission of Information and Communications Technology
(CICT) already exists by virtue of Executive Order No. 269, its current mandate
does not measure up to the original intent the Constitution has framed under Section
24, Article Il, wherein the State is cognizant of the vital role communication and
information play in nation-building. Even E.O. 269 explicitly stated that the CICT.
would only serve as a “transitory” body that is advisory in nature and would
eventually be superseded by the DICT pending the passage of formal legislation that
will create a specific Cabinet position to carry out ICT-related tasks in behalf of the
government,

Among the salient features of the bill a
‘Transferring the communications aspect from the Department of
Transportation and Communications (DOTC) to the newly-created
Department of Information and Communications Technology,
along it existing agencies such as the National
Telecommunications Commission and the Philippine Postal
Corporation;
* Allowing the DICT to draw up various economic incentives, such
as build-operate-transfer (BOT) schemes that draw strength from
private-public sector synergies to provide leverage on the
government's aims to  establi: a solid ICT infrastructure
backbone, which will then sustain the country’s information and
communication requirements in the years to come; and
© Ensure fairness with regard to protecting the rights of consumers
and businesses to privacy, security, and confidentiality



‘The immediate passing of this bill will enable both the state and its
constituents to take advantage of ICT’s power and ensure that the benefits of
developing the country’s core ICT competencies, from the construction of vital
information and communications infrastructure to forging linkages among various
sectors that rely on ICT, will accrue to the public-at-large.

In view of the foregoing, immediate passage of this bill is earnestly
requested.

Representative, Lone District of Eastern Samar


FIFTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

House Bill No__1896 .

Introduced by Representative Ben P. Evardone

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

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

SECTION 1. Short Title. This Act shall be known as the "Department of
Information and Communications Technology Act of 2010."

SEC. 2, Declaration of Policy. It is hereby declared the policy of the State:

a. To ensure the provision of a strategic, reliable, cost-efficient and citizen-centric
information and communications technology (ICT) infrastructure, systems and resources
as instruments of nation-building and global competitiveness;

b. To foster a policy environment that will promote a broader market-led
development of the ICT and 1CT-enabled services sectors, a level playing field,
partnership between the public and the private sectors, strategic alliance with foreign
investors and balanced investments between high-growth and economically-depressed
areas;

¢. To foster and accelerate the convergence of ICT faciliti

4. To ensure universal access and high-speed connectivity at fair and reasonable
costs;

¢. To ensure the availability and accessibility of information and commun
service in areas not adequately served by the private sector;

£. To promote the widespread use and development of emerging ICT;

8. To promote and assist the development of local ICT content, applications and
services;

h. To establish a strong and effective regulatory system that will ensure consumer
protection and welfare and foster a healthy competitive environment;

i. To promote the development of ICT expertise in the country’s human capital to
enable Filipinos to compete in a fast-evolving information and communications age:
j. To ensure the growth of the ICT and ICT-enabled services sectors;

K. to preserve the rights of individuals to privacy and confidentiality of their
personal information;

1. To encourage the use of ICT for the development and promotion or the
country's arts and culture, history, education, public health and safety and other socio-
civic purposes;

m, To sustain the development of the national postal system as an integral
component of the overall development of ICT in the country;

n. To ensure the security of ICT infrastructures and assets of indi
businesses stored there

©. To empower, through the use of ICT, the disadvantaged segments of the
population, including persons with disabilities, such as the physically, emotionally or
mentally challenged.

juals and

SEC. 3. Definition of Terms. As used in this Act, the following terms arc defined
as follows:


a. “Information and Communications Technology” or “ICT” shall mean the
totality of electronic means to collect, store, process and present information to end-users
in support of their activities and services. It consists of computer systems, office systems
and consumer electronics, as well as networked information infrastructure, the
components of which include telephone, cable, wireless and satellite systems, the
internet, fax machines and computers;

b, “Electronic Government” or “E-Government” shall mean the application of
ICT in government processes to bring about efficient, responsive, ethical, accountable
and transparent government service;

¢ “ICT Sector” shall mean telecommunication operators, ICT equipment
manufacturers, ICT solution providers, Intemet service providers, ICT tr
institutions, software developers and ICT-enabled service providers;

4, “ICT-enabled Services Sector” shall mean offshoring and outsourcing service
providers, including call centers, back office processing, software development, medical
or legal transcription, animation, game development, engineering or architectural design,
and other services that require the intrinsic use of a networked information infrastructure;

©. “Chief Information Officer” or CIO” shall mean the title given to the board
level head of ICT in an organization responsible for the development and maintenance of
the organization's ICT systems and applications,

SEC. 4. Creation of the Department of Information and Communications
Technology (DICT) ~ There is hereby created the Department of Information and
Communications Technology. Hereafter 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. 5. Mandate — The Department shall be the primary policy, planning,
coordinating, implementing, regulating, and administrative entity of the executive branch
of the Government that will plan, promote and help develop the country’s ICT sector.

SEC. 6 Powers and Functions. The Department shall exercise the following
powers and functions:

a. Formulate, recommend and implement national policies, plans, programs and
‘guidelines for the ICT and ICT-enabled services sectors that will promote wider use and
development of ICT and provide increased and convenient access by the citizens to the
same;

b. Initiate, harmonize and coordinate all ICT plans and initiatives of government
agencies to ensure overall consistency and harmony with e-government objectives in
sular, and national objectives in general;

;. Represent and negotiate for Philippine interest on matters pertaining to ICT in
international bodies,

d. Develop and maintain national ICT development plans and establish and
administer comprehensive and integrated programs for ICT with due consideration lo
advances on convergence and other emerging technologies; and for this purpose, may
invite 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;

€. Promote knowledge, information and resource sharing, database building and
agency networking linkages among various government agencies;

f. Ensure the development and protection of an integrated government
information and commynications infrastructure and coordinate all relevant government
entities, taking into consideration the inventory of existing manpower, plans, programs,
proposals, software and hardware, and the installed systems and programs;

g. Provide an integrated framework in order to optimize all government ICT
resources and networks and the identification and prioritization of all government
systems and applications as provided for in the Government Information Systems Plan
(GISP) and the Medium Term Philippine Development Plan (MTPDP);

h, Coordinate and support the generation and acquisition of necessary resources as
may be appropriate for the development, marketing, growth and competitiveness of the
Philippine ICT and ICT-enabled services sectors;

i. Develop, implement and improve, in coordination with concerned government
agencies and industry associations, the government's ICT capabilities and determine the



personnel qualifications and other standards essential to the effective development and
operation of government information and communications infrastructure;

J. Encourage and establish guidelines for the use of public-private partnerships in
the implementation of ICT projects for government agencies in order to fast-track said
projects and provide reasonable return-on-investment for the private sector, including but
not limited to Build-Operate-Transfer (BOT) mechanisms;

k. Assess, review and support ICT research and development programs of the
‘government in coordination with the Department of Science and Technology and other
institutions concerned;

|. Establish and prescribe rules and regulations for the establishment, operation
and maintenance of ICT infrastructure in unserved and underserved areas, in consultation
‘with the private sector, local government units (LGUs) and the academe;

m. Provide policy-direction and guidance in ICT-related aspects for the operation
and maintenance of a nationwide postal system that shall include mail processing,
delivery services, and money remittance and payment services;

in. Assist and provide technical expertise in the development of guidelines to the
Intellectual Property Office (IPO) in the enforcement and administration of laws,
standards, rules, and regulations governing ICT ;

0, In coordination with concerned agencies, the private sector and relevant
international bodies, ensure consumer protection and welfare, and protect the rights of
‘consumer and business users to privacy, security and confidentiality;

p. Harmonize, synchronize and coordinate with appropriate agencies all ICT and
e-commerce policies, plans and programs;

q. Coordinate with the Department of Trade and Industry in the promotion of
trade and investment opportunities and protection of investor interests in the ICT and
ICT-enabled services sectors;

r. In coordination with concerned agencies, promote strategic partnership and
alliances among and between local and international ICT firms and institutions, research
and development, educational and training institutions, and technology providers,
developers and manufacturers, to speed up industry growth and enhance global
competitiveness;

s. In coordination with concerned agencies, plan and implement such activities as
may be appropriate to enhance the competitiveness of Philippine workers, firms, and
small and medium enterprises in the global markets for ICT and ICT-enhanced services;

‘In coordination with concerned agencies, establish and recommend the adoption
or qualification standards and enhance the career opportunities of ICT workers in
government;

uu, In coordination with the Department of Education, Commission on Higher
Education and Technical Education and Skills Development Authority, formulate policies
and initiatives to promote [CT and ICT-enhanced services education and the
development, promotion and application of ICT in education in a manner that is
consistent with the national goals and objectives, and responsive to the human resource
needs of the ICT and ICT-enabled services sectors;

¥. 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 Chairman, to assist the Department
in implementing e-government initiatives;

w. Administer the E-Government Fund as specified in’ Section 15 and, in
coordination with the Department of Budget and Management, establish guidelines for
the disbursement and management of the E-Government Fund, including the monitoring,
and evaluation system of projects funded under the said fund.

SEC. 7. Composition. The Department of Information and Communications
‘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. 8. Secretary of Information and Communications Technology. _ The
Secretary shall be appointed by the President, subject fo confirmation by the Commission
‘on Appointments.

‘The Secretary shall have the following functions:


a. Provide executive direction and supervision over the entire operations of the
Department and its attached agencies;

b. Establish policies and standards for the effective, efficient and economical
‘operation of the Department, in accordance with the programs of Government;

©. Rationalize delivery systems necessary for the effective attainment of the
objectives of the Department in accordance with the programs of Government;

4. Review and approve request for financial and manpower resources of all
‘operating offices of the Department;

€. Designate and appoint officers and employees of the Department, excluding the
Undersecrétaries. Assistant Secretaries, and Regional and Assistant Regional Directors,
in accordance with the Civil Service laws, rules and regulations;

£ Coordinate with LGUs, other agencies and public and private interests groups,
including non-government organizations (NGOs) and people’s organizations (POs) on
Department policies and initiatives;

8. Advice the President on the promulgation of executive and administrative
orders and regulatory and legislative proposals on matters pertaining to ICT
development;

h. Serve as a member of the Govemment Procurement Policy Board as
established by Republic Act No. 9184;

i, Serve as the Chairman of the Board of the Philippine Postal Corporation in
‘accordance with Republic Act No. 7354 and the Corporation Law;

J, Formulate such rules and regulations and exercise such other powers as may be
required to implement the objectives of this Act;

k. Perform such other tasks as may be provided by Law or assigned by the
President from time to time.

SEC. 9. Undersecretaries. The Secretary shall be assisted by three (3)
Undersecretaries, which 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 from ranks of existing goverment information and communications agencies
and offices or qualified ICT professionals in the private sector.

SEC. 10, 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. 11, 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. 12. Regional Offices. The Department shall be authorized to establish,
‘operate, and maintain Regional Office in each of the administrative regions of the country
as the need arises. The regional office shall be headed by a Regional Director, who may
he assisted by one (1) Assistant Regional Director. The Regional Offices shall have,
within their respective administrative regions, the following function:

a, Implement laws, policies, plans, programs, projects, rules and regulations of the
Department;

b. Provide efficient and effective service to the people;

©. Coordinate with regional offices of other Departments, offices, and agencies;

. Coordinate with LGUs;

¢. Perform such other functions as may be provided by law or assigned by the
Seoretary.

SEC. 13. Transfer of Agencies and Personnel.

a. The following agencies are hereby abolished, and their powers and functions,
applicable funds and appropriations, records, equipment, property, and personnel
transferred to the Department:

1. All operating units currently existing in the Commission on Information and
Communications Technology (CICT),

2. National Computer Center (NCC);

3. Telecommunications Office (TELOF);



4. All operating units of the Department of Transportation and Communications
(DOTC) with functions and responsibilities dealing with communications.

All offices, services, divisions, units and personnel not otherwise covered by this
Act for transfer to the Department shall be retained under the DOTC, which is hereby
renamed the Department of Transportation.

. The following agencies are hereby attached to the Department for policy and
program coordination, and shall continue to operate and function in accordance with the
charters, laws or orders creating them, insofar as they are not inconsistent with this Act

1. National Telecommunications Commission;
2. Philippine Postal Corporation,

¢. The laws and rules on government reorganization as provided for in Republic
Act No. 6656, otherwise known as the Reorganization Law, shall govern the
reorganization process of the Department,

SEC. 14, Postal Regulatory Authority. The exclusive power and authority to
regulate the postal delivery services industry, as provided for under Presidential Decree
No. 240 and Republic Act No. 7354, is hereby transferred to the Department,

SEC. 15. E-Government Fund. There shall be an E-Government Fund to be
administered by the Department, which is a Special Account in the General Fund, created
specifically to fund cross-agency and citizen-centrie government [CT projects. The Fund
shall be used to support and co-finance projects that enable the government to expand its
ability to conduct activities electronically and provide frontline services through the
development and implementation of innovative uses of the Internet or other emerging
technologies.

However, internal IT systems meant to support the agencies’ IT operations shall
be charged against the agencies’ own budgetary allocation.

SEC. 16. Implementation of the RPWeb. In consonance with the objectives of
Administrative Order No. 332 and Republic Act No. 8792, the primary responsiblity
‘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 (GIl), is hereby transferred to the Department. For this purpose, the
Department shall continue utilization of all funds, monies, interests, and properties
‘outstanding and accruing from the RPWeb.

SEC. 17. 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
academe and federation of private industries directly involved in ICT, as well as other
NGAs. LGUs and government owned and controlled corporations (GOCCs), may be
appointed to these working groups. Government IT professionals may also he tapped to
partake in the work of the Department through these working groups.

SEC. 18. Structure and Staffing Pattern. The Department shall determine its
organizational 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. 19. Magna Carta. Employees of the Department shall he covered by
Republic Act 8430, which provides a magna carta for scientists, engineers, researchers
and other science and technology personnel in the government.

SEC. 20. Separation from Service. Employees separated from the se
result of this reorganization shall, within ninety (90) days therefrom, receive the
separation and retirement benefits to which they may be entitled under Executive Order



No. 366. Provided that such separation pay and retirement benefits shall have priority of
Payment out of the savings of the department or agency.

SEC. 21. Appropriation, The amount needed for the initial implementation of this
Act shall be taken from the current fiscal year's appropriation of the CICT through the
Offfce of the President and all agencies herein absorbed by or attached to the Department.
‘Thereafter, the amount needed for the operation and maintenance of the Department shall
be included in the General Appropriations Act, provided that for the next fiscal year, the
amount shall he One Billion Two Hundred Million Pesos (P1,200,000,000.00),

SEC. 22. 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. 23. Separabitity 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. 24. Effectivity Clause. This Act shall take effect fifteen (5) days from its
Publication in at least two (2) papers of general circulation.

Approved