Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

H.B.No, 498

Introduced by HONORABLE JUAN EDGARDO “SONNY” M. ANGARA

EXPLANATORY NOTE

This bill seeks to reorganize the Department of Transportation and Communication by
creating a separate Department of Information and Communications to address the distinct
needs of the communications and transportation sector.

Section 24, Article 11 of the 1987 Philippine Constitution declares that “the State
recognizes the vital role of communications and information in nation-building’. To implement
this State policy, a Department of Transportation and Communications was created under the
Administrative Code of 187 to maintain and expand a viable, efficient, safe and dependable
transportation and communications systems as effective instruments for national recovery and
economic progress. Due to the divergent issues on transportation and communications, a single
department should focus on each one to intensify government initiatives and cope up with the
demands of globalization

Under this proposed measure, the Department of Information and Communications 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 service,
This will ensure that the communications and information technology sector of the country be
given appropriate focus and be included as one of the priorities of the government.

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

Jf. we
suka eon ANGARA

Representative
Lone District, Province of Aurora


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

H.B.No, 496

Introduced by Honorable JUAN EDGARDO “SONNY” M. ANGARA.

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 House of Representatives of the Philippines in
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:
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;
To foster a policy environment that will promote a broader market-led development of
the ICT and ICT-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 facilities;
To ensure universal access and high-speed connectivity at fair and reasonable costs;
e. To ensure the availability and accessibility of information and communications services
in areas not adequately served by the private sector;
f. To promote the widespread use and development of emerging ICT;
g. 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;
|. To encourage the use of ICT for the development and promotion of 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 individuals and businesses
stored therein;

©. 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.

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

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;

c. “ICT Sector’ shall mean telecommunications operators, ICT equipment
manufacturers, ICT solution providers, Internet service providers, ICT training
institutions, software developers and ICT-enabled service providers;

d. “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. 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. 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
particular, and national objectives in general;

c¢. 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 to 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;

e. 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
communications 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 e-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;

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;

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 ;

In coordination with concemed 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;

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

. 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;

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;

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-enabled services;

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

In coordination with the Department of Education, Commission on Higher Education
and Technical Education and Skills Development Authority, formulate policies and
initiatives to promote ICT and ICT-enabled 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 CIOs 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;

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.

4


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 to 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;

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

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

f. 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;

g. 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 Government 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, 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 from
ranks of existing government 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 be assisted by one
(1) 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;
Provide efficient and effective service to the people;
Coordinate with regional offices of other departments, offices, and agencies;
Coordinate with LGUs;

eaos

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

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);
Telecommunications Office (TELOF);
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.

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
the charters, laws or orders creating them, insofar as they are not inconsistent with
this Act:

1. National Telecommunications 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 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-ageney and citizen-centric government ICT 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. |n 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 (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 be 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 be covered by Republic Act
8439, 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 service as a 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 Office 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 be 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. 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. 24. Effectivity Clause. This Act shall take effect fifteen (15) days from its
publication in at least two (2) papers of general circulation.

Approved,