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FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
7 
\JUI. -2 f-'j ' * J  
OF THE PHILIPPINES 
1 
First Regular Session 
) 
S E N A T E  
! 
Senate Bill No. 4 9 % 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Our government works in a system of bureaucracy. In a bureaucracy, the 
executive branch of the government is divided into sections known as the 
Department. Each department has its own specific role, task and a sector of our 
country to attend to. In recent years, there has been a demand for the efficiency 
and productivity of our government sectors due to economic crisis. 
Executive Order No. 546 created the Ministry of Transportation and 
Communication which was later on renamed to Department of Transportation 
and Communication. The DOTC is tasked with policy, planning, programming, 
coordinating, implementing, regulating and administrative entity of the executive 
branch of government in the promotion, development, and regulation of a 
dependable and coordinated network of transport and communication systems in 
the country. 
To better serve the people, devolution of powers within the ranks of the 
DOTC is needed. This bill proposes the separation of the DOTC into two more 
specific departments to be known as the Department of Transportation (DOT) 
and the Department of Communication (DOC). Through the proposed separation 
of the DOTC, each of the Transportation and Communication sectors would be 
served more efficiently and effectively. 
In light of the foregoing, approval of the proposed separation of the 
Department of Transportation and Communication into the Department of 
Transportation and the Department of Communication is earnestly sought. 


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FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
7 
JljL -2 p 14 
' ' .! 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
S E N A T E  
Senate Bill No. 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
SEPARATING 
THE 
DEPARTMENT 
OF 
TRANSPORTATION 
AND 
COMMUNICATION INTO THE DEPARTMENT OF TRANSPORTATION AND 
THE DEPARTMENT OF COMMUNICATIONS REDEFINING ITS POWERS, 
FUNCTIONS, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER 
PURPOSES, THEREBY AMENDING EXECUTIVE ORDER NO. 546 
Be if enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
CHAPTER 1 
GENERAL PROVISIONS 
SECTION 1. Declaration of Policy. It is hereby declared the policy of the 
state to guarantee the efficient and effective provision of the sectors of 
transportation and communication to the people. It is likewise the policy of the 
state to recognize the importance and role of the transportation and 
communication sectors in the development of the country. But in order to ensure 
a more efficient provision of its services, the devolution of the Department of 
Transportation and Communication into two (2) separate departments, 
hereinafter referred to as the Department of Transportation and the Department 
of Communication, is deemed necessary. 
SEC 2. Creation of the Deparfmenf of Transportation (Dlj and the 
Deparfmenf of Communication (DOC). 
In order to efficiently and effectively 
address the problems of having a solitary agency manage the Transportation and 
the Communications sectors, this bill proposes the creation of two (2) distinct 
departments to be known as: 1) the Department of Transportation (DT) and 2) 
the Department of Communication (DOC), having separate functions, powers 
and mandates. 
CHAPTER I1 
THE DEPARTMENT OF TRANSPORTATION 
SEC 3. Mandate. The Department of Transportation shall be the principal 
policy, planning, programming, coordinating, implementing, regulating and 
administrative entity of the executive branch of the government in the promotion, 


development, and regulation of a dependable and coordinated network of 
transport systems in undertaking of the following objectives: 
(a) Advance the development of a dependable and coordinated network 
of Transportation systems; 
(b) Guide government and private investments in the development of the 
country’s inter-modal transport systems in a most sound, effective, and 
systematic behavior for maximum safety, 
service, and cost 
productiveness; 
(c) Impose appropriate measures so that technical, economic and other 
conditions for the continuing economic feasibility of the transport 
sector are not endangers and do not encourage distortions in the 
transport systems; 
(d) Formulate, and implement an integrated approach towards the 
development of the country’s transportation sector, developing and 
implementing a comprehensive medium and long-term action plans for 
its development; 
(e) Formulate, enforce and strengthen quality standards for air, land and 
sea faring vehicles to ensure the best quality of service to the riding 
public; 
bureaus and attached agencies necessary to purse its mandate; 
(f) Exercise quasi-judicial and quasi-legislative functions through its 
(9) Exercise other powers and functions and perform such acts as may be 
deemed necessary, useful, incidental, or auxiliary to accomplish its 
mandate and objectives. 
SEC 4. Aufhority and Responsibilify. Authority and responsibility of the 
Department shall be vested in the Secretary of the Department of Education and 
Transportation. The Secretary shall be assisted by two (2) Assistant Secretaries 
(one for every bureau of the department), unless otherwise determined by the 
President of the Republic of the Philippines. 
SEC 5. Powers and Functions. To accomplish its mandate, the 
Department of Environment shall have the following Powers and Functions: 
(a) Coordinate and oversee all activities of the Department relative to the 
Transportation sector; 
(b) Formulate and recommeod national policies and guidelines for the 
preparation and implemehtation of an integrated and comprehensive 
transportation system at the national, regional and municipal level; 
(c) Manage and establish comprehensive programs for the transportation 
sector, and for the said purpose, may call on any agency, corporation, 
or any entity, whose development programs include transportation as 
an integral part to part to participate in, and assist in the 
implementation of such programs; 


(d) Regulate, as may be deemed necessary, activities relative to the 
transportation sector, and prescribed or collect fees in the exercise of 
such power; 
(e) Issues, reviews and provides direction to transportation research and 
development programs of the government in coordination with the 
respective entities concerned; 
(f) Performs such other functions as may be deemed necessary to carry 
into effect the provisions of this Act; 
(9) Exercise other powers and functions, and perform such acts as may 
be deemed necessary, useful, incidental or auxiliary to accomplish its 
mandate and objectives. 
SEC 6. Organization of 
the Depahent. The 
Department of 
Transportation shall be composed of the Department proper made up of the 
immediate Office of the Secretary, Administrative and Legal Affairs Service, 
Financial and Comptrollership, Planning services and following attached 
agencies: 1) Air Transportation Office; 2) Civil Aeronautics Board; 3) EDSA MRT 
3 Project; 4) Maritime Industry Authority; 5) METRO, Inc.; 
6) Office of 
Transportation and Cooperatives; 7) Land Transportation Office; 8) Land 
Transportation Franchising and Regulatory Board, and, 9) PMO Fishing Ports. 
SEC 7. The Bureaus specified in Section 6 of this Act would still have the 
same functions and powers but will report directly to the Department of 
Transportation (DT). 
CHAPTER 111 
THE DEPARTMENT OF COMMUNICATION 
SEC 8. 
Mandate. 
The Department of Communication shall be the 
primary policy, planning, programming, coordinating, implementing, regulating 
and administrative entity of the executive branch of the government in the 
promotion, development and regulation of a dependable and coordinating 
network of communication systems in pursuance of the following objectives: 
(a) Guide the government and private institutions in the development of 
the country’s inter-modal system of communication systems in a most 
practical effective, and orderly fashion from maximum satisfaction, 
service, and cost effectiveness: 
(b) Provide, extend and operate by itself or though or together with other 
entities, private or government, local or national, telephones (landline- 
based and other cellular phones), telegraph, telex, and other 
telecommunications services throughout the country whenever 
economic, social and political development activities warrant the 
provisions thereof; Provided, however, that the national economic 
viability of the entire network or components thereof is maintained at 
reasonable rates: 
(c) Develop an integrated nationwide transmission system by itself or 
through or together with other entities in accordance with national and 


international telecommunications service standards to meet all 
communication service requirements including: among others, radio 
and television broadcast relaying, leased channel services and data 
transmission; 
(d) Establish, operate and maintain by itself or through or together with 
other entities an international switching system for incoming and 
outgoing international telecommunications services; 
(e) Encourage the development of a domestic telecommunications 
industry in coordination with the concerned entities, particularly the 
manufacture 
of 
communications/electronics 
equipment 
and 
components to complement and support, as much as possible, the 
expansion, development, operations and maintenance of nationwide 
telecommunication network; 
(9 Provide for an efficient, fast and reliable Philippine Postal System for 
the country; 
(9) Formulate and implement an integrated approach towards the 
development of the country’s communications sector, developing and 
implementing comprehensive medium and long-term action plans for 
its development. 
(h) Ensure the efficient functioning of our telecommunications systems, 
admonish corporations and other entities, if deemed necessary, in the 
event that the said entities provide sub-par service to their paying 
customers; 
(i) Exercise other powers and functions, and perform such acts as may 
be deemed necessary, useful, incidental or auxiliary to accomplish its 
mandate and objectives. 
SEC 9. Authority and Responsibility. Authority and responsibility of the 
Department shall be vested in the Secretary of the Department of 
Communication. The Secretary shall be assisted by three (3) Assistant 
Secretaries (one for every bureau of the department), unless otherwise 
determined by the President of the Republic of the Philippines. 
SEC I O .  
Powers and Functions. To accomplish its mandate, the 
Department of Environment shall have the following Powers and Functions: 
(a) Coordinate and supervise all activities of the Department relative the 
(b) Formulate and recommend national policies and guidelines for the 
preparation and implementation of an integrated and comprehensive 
communications systems at the national, regional and municipal level. 
(c) Manage, as may be deemed necessary, activities relative to the 
communications sector, and prescribe or collect fees in the exercise of 
such power; 
Communications sector; 


(d) Issues, reviews and provide direction to communication research and 
development programs of the government in coordination with the 
respective entities concerned; 
(e) Administer and establish a comprehensive and integrate programs for 
the communications sector, and for the said purpose, may call upon 
on any agency, corporation, or any other entity, whether private or 
public, whose development programs include Communications as an 
indispensable part to participate in, and assist in the implementation of 
such programs; 
(f) Accomplish such other functions to carry into effect the provisions of 
this Act. 
SEC 11. 
Organization of the Department. The Department of 
Communication shall be composed of the Department proper made up of the 
immediate Office of the Secretary, Administrative and Legal Affairs Service, 
Financial and Comptrollership, Planning Services and the following attached 
agencies: 
1) 
Municipal 
Telephone 
Project 
Office; 
2) 
National 
Telecommunications Commission; and 3) Telecommunications Office. 
SEC 12. The three (3) attached agencies named in Section 11 of this Act 
and the National Telecommunication would still have the same functions and 
powers but will report directly to the newly created Department of 
Communication. 
CHAPTER IV 
APPROPRIATIONS 
SEC 13. Appropriations. Such amount as maybe deemed necessary to 
effectively and efficiently carry out the provisions of this Act is hereby 
appropriated from the funds of the National Treasury not otherwise appropriated 
to each of the two (2) departments. Thereafter, such amount as may be deemed 
necessary for the continued operation and maintenance of the two (2) 
Departments shall be included in the General Appropriations Act. Funds would 
be appropriated to ensure the effective discharge of the two (2) Department's 
powers and functions. 
CHAPTER V 
MISCELLANEOUS PROVISIONS 
SEC 14. 
Transitory Provisions. In accomplishing the acts of 
reorganization herein prescribed, the following transitory provisions shall be 
complied with, unless otherwise provided elsewhere in this Act: 
(a) The transfer of a government unit shall include the functions, 
appropriations, funds, records, equipment, facilities, chosen in action, 
rights, other assets, and liabilities, in any, who of the separated unit as 
well as the personnel thereof, as may be necessary, who shall in a 
hold-over capacity, continue to perform their respective duties and 
responsibilities and receive corresponding salaries and benefits. 


These personnel from the separated unit whose positions are not 
included in the Department‘s new position structure and staffing 
pattern approved and prescribed by the Secretary or who are not 
reappointed shall be deemed separated from the service and shall be 
entitled to the benefits. 
(b) The transfer of functions which results in the separation of the 
government unit that exercised them shall include the appropriates, 
funds, records, equipment, facilities, rights, other assets and personnel 
as may be the proper discharge of the transferred functions The 
separated units remaining appropriations and funds, including its 
liabilities, if any, shall be allocated to such appropriate units as the 
Secretary shall determine or unless otherwise be disposed in 
accordance with the Government Auditing Code and other pertinent 
laws, rules and regulations. 
SEC 15. New Structure and Pattern. Upon approval of this proposed bill, 
the officers and employees of the Department shall, in a holder capacity, 
continue to perform their respective duties and responsibilities and receive the 
corresponding salaries and benefits unless in the meantime they are separated 
from the government service. 
SEC 16. Periodic Performance Evaluation. The Department of 
Transportation (DT) and the Department of Communication (DOC) are hereby 
required to formulate and enforce a system of measuring and evaluating 
periodically and objectively the performance of their respective Departments and 
submit the same bi-annually to the President of the Republic of the Philippines 
SEC 17. Place 
to transact 
business. The existing offices of the 
Department of Transportation and Communication would, for the time being, still 
be in use but 
will be divided into the Department of Transportation and 
Department of Communication until such time when a separate office shall have 
been made and/or upon the discretion of the officials concerned. 
SEC 18. Promulgation of Rules. Each Secretary of the Department of 
Transportation and the Department of Communications shall promulgate the 
necessary implementing details to carry out the organization’s respective 
mandate and other transitory matters that needs to be taken of the assure the 
orderly implementation of this Act. 
SEC 19. Regulatory fees. The Department of Transportation and the 
Department of Communication may impose fees in ways duly approved and 
provided for by the law for accomplishing its functions and mandate. 
SEC 20. Separafely Clause. If, for any reason, any portion or part of this 
Act is declared unconstitutional or invalid, the rest of the provisions not affected 
thereby shall remain in full force and effect. 
SEC 21. Repealing Clause. All laws, presidential decrees, executive 
orders, letters of instruction, rules and regulations or parts thereof inconsistent 


with the provisions of this Act are hereby repealed or modified accordingly. 
Other sections of the Executive Order No. 546 not affected shall remain in full 
force and effect. 
SEC 22. Effectivity. This act shall take effect fifteen (15) days after its 
complete publication in at least two (2) newspapers of general circulation. 
Approved,