Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

House Bill No._ 1508

INTRODUCED BY HON. MARCELINO “MARCY” R. TEODORO

EXPLANATORY NOTE

Article II, Section 24 of the 1987 Constitution states that “[T]the State recognizes

the vital role of communication and information in nation-building.

Hence, in keeping with the said constitutional provision, this bill proposes the

creation of the Department of Information and Communications (DICT), which shall:

1

Promote and oversee the development of ICT systems and ensure the growth of
reliable and cost-efficient communications facilities and services

. Promote technical trainings and scholarships that will enable Filipinos to compete

in a fast-evolving information and communication era;

. Create a coordinating body called the Council of Chief Information Officers which

is composed of representatives from every government agency;
Create a special account in the general fund called the E-government Fund shall
be administered by the proposed DICT and which may be augmented by
donations, contributions and grants from local and international funding agencies;
Provide for the absorption into the proposed DICT all operating units currently
existing in the Commission on Information and Communications Technology
(CICT), which directly support communications, the National Computer Center and
all offices, services, divisions, units, and personnel of the Department of
Transportation and Communications with functions and responsibilities dealing
with communication; and

. Attach the National Telecommunications Commission, Philippine Postal

Corporation and the Telecommunications Office (TELOF) to the proposed DICT.

It is the objective of this measure to address an existing problem whereby two

diverse concerns, transportation and communications, are presently being handled by just
one department — the Department of Transportation and Communications (DOTC).
Likewise, to create a single and well-focused agency that will concentrate on Information
and Communication Technology (ICT) which is an emerging, fast-evolving, and
increasingly complex phenomenon. And eventually, to develop a world-class Philippine
ICT, thereby ensuring a better future for all Filipinos.

In view of the foregoing, approval of this measure is immediately sought.

flloage: | R, TEODORO.

Representative, 1°* District
City of Marikina


Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

House Bill No. 1508

INTRODUCED BY HON. MARCELINO “MARCY” R. TEODORO

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

Be jit 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’.

SEC. 2. Creation of the Department. — There is hereby created the Department of
Information and Communications Technology, hereinafter referred to as the
Department.

SEC. 3. Declaration of Policy. — \tis the policy of the State to promote the utilization
of Information and Communications Technology (ICT) as a vital tool for
nation-building and economic growth that is government-enabled, private
sector-led, citizen-centric and market-based. Towards this end, government shall
prioritize the effective coordination and implementation of its national and local ICT
and ICT-enabled services, programs, projects and other related initiatives and
reorganize and revitalize all relevant governmental institutions in order to achieve
a streamlined and efficient structure that is responsive and attuned to national
goals and objectives. It shall likewise be the policy of the State to provide an
environment that will support investments in cost-efficient ICT infrastructure,
systems and resources to ensure universal access and high-speed connectivity at
fair and reasonable costs; ensure a level playing field for strategic alliances with
investors in order to have balanced investments between high-growth and
economically depressed areas; ensure consumer protection and welfare as well as.
preserve the rights of individuals and entities to privacy and confidentiality of
information; and to promote accountability through transparent governance, and
effective delivery of government frontline services.

SEC. 4. Definition of Terms. — As used in this Act, the following terms are defined
as follows:

(a) “E-Governance or Electronic Governance” shall mean the application of
information and communications technology to the processes of government
functioning to bring about efficient, ethical, accountable, responsive and
transparent governance.

(b) “ICT Sector or ICT Industry” shall mean all telecommunications
carriers/operators, ICT equipment and solutions manufacturers and providers,


internet service providers, ICT training institutions, software developers and
ICT-enabled service providers.

(c) “ICT-Enabled Service Providers” shall mean offshoring and outsourcing service
providers, including contact centers, medical or legal transcription, animation,
engineering or architectural design services, software development, business
process outsourcing services, and other providers of services that require the
intrinsic use of a networked information infrastructure.

(d) “Information and Communications Technology” 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 inciude the
telephone system, the Internet, fax machines and computers.

(e) “M-Governance or Mobile Governance” shall mean the application of mobile
technology to the process of government functioning to bring about efficient,
ethical, accountable, responsive and transparent governance.

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 promote, develop and oversee the
government's integrated and strategic ICT systems and ensure reliable and
cost-efficient communications facilities and services.

The Department shall likewise be responsible for improving the acquisition,
utilization and optimization of government's information and communications
technologies in order to improve the productivity, efficiency, effectiveness, and
responsiveness of national and local government programs.

The Department shall furthermore be responsible for ensuring the application of
information and communications technology to the various processes of
government functioning. In fulfilling its mandate, the Department shall be guided by
the following strategic objectives:

a) Ensure the provision of.a strategic, reliable, cost-efficient, and citizen-centric
ICT infrastructure, systems, and resources as instruments of nation-building and
global competitiveness;

b) Foster a policy environment for the ICT sector that will promote market-led
broader development of the ICT and ICT-enabled services sector; a level playing
field, partnerships between the public and the private sectors, strategic alliance
with foreign

investors and balanced investments between high-growth and
conomically-depressed areas;

c) Foster and accelerate convergence of ICT facilities such as, but not imited to,
the development of networks;

d) Ensure universal access and high-speed connectivity at fair and easonable
costs;

e) Ensure the availability and accessibility of ICT services in areas not dequately
served by the private sector;

f) Promote and encourage the widespread use, creative development, and access
to ICT with priority consideration on the requirements for growth of the Philippine
ICT industry;

g) Promote and assist the development of local and national content application
and services in the area of ICT by sourcing or providing funds and construction


assistance for |CT-hubs and/or technical support to local-based providers in these
endeavors and in the marketing of the local products to the global community;

h) Establish a strong and effective regulatory and monitoring system that will
ensure investor and consumer protection and welfare and foster a healthy
competitive environment;

i) Promote technical training and scholarships, and the development and use of
expertise in ICT and ICT-enabled services for the country's human capital to
enable Filipinos to compete in a fastevolving information and communications age;
j) Ensure the growth of the ICT and ICT-enabled industries, including mobile
technologies, applications and services;

k) Preserve the rights of individuals to privacy and confidentiality of their personal
information;

|) Encourage the use of ICT in support of efforts or endeavors for the development
and promotion of the country’s arts and culture, history, education, public health
and safety, and other socio-civic purposes;

m) Sustain the development of the nationwide postal system as an integral
component of the overall development of ICT in the country;

n) Ensure the security of ICT infrastructures and assets of individuals and
businesses; and

0) Empower, through the use of ICT, the disadvantaged segments of the
population, including persons with disabilities (PWD) or who are differently-abled.

SEC. 6. Powers and Functions. ~ To carry out its mandate, the Department shall
exercise the following powers and functions:

(a) Formulate, recommend and/or implement national policies and guidelines in
the ICT sector that will promote wider use and development of information and
communications technologies and applications, and increased and convenient
access by the citizens to

the same;

(b) Initiate, harmonize and/or coordinate all ICT plans and initiatives of government
departments/agencies to ensure overall consistency and harmony with the
objective of electronic governance, in particular, and national objectives and goals
in general;

(c) Represent and negotiate for Philippine interests 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 in 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 various programs
among which is an integrated National Government Portal;

(e) Leverage resources and activities in the various national government agencies
for data base building activities, information and resource sharing and agency
networking linkages;

(f) Design, implement, and ensure the protection of an integrated government
information and communications infrastructure development program that will
coordinate all relevant government entities, taking into consideration, the inventory
of existing and projected 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 identify and prioritize all e-government systems and
applications as provided for in the Government Information Systems Plan and/or
the Medium Term Philippine Development Plan (MTPDP);

(h) Coordinate and support the generation and/or acquisition of all necessary
resources and facilities as may be appropriate in and for the development,


marketing, growth and competitiveness of the Philippine ICT and ICT-enabled
services;

(i) Develop, implement and improve, in coordination with concemed government
agencies and industry associations, the government's ICT application capabilities
and determine the personnel qualification and other standards essential to the
integrated and effective development and operation of government information
and communications infrastructure;

(j) 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;

(k) Assess, review and provide direction to 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 facilities in areas not adequately served by the private
sector, in consultation with the private business sector, local government units and
the academe;

(m) Support, assist, and prescribe rules and regulations on ICT-related aspects for
the operation and maintenance of a nationwide postal system that shall include
mail processing, delivery services, and money order services;

(n) Administer and enforce all laws, standards, rules and regulations governing
ICT, and in coordination with the Intellectual Property Office (IPO), ensure the
protection of ICT-related intellectual property rights;

(0) In coordination with concerned agencies, ensure consumer protection and
welfare, and protect the rights of consumers 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 in ICT and ICTenabled services;

(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/or implement such activities
as may be appropriate and/or necessary to enhance the competitiveness of
Philippine workers, firms, and small to medium enterprises in the global ICT
market and ICT-enabled services market;

(t) In coordination with the Department of Education, Commission on Higher
Education (CHED) and Technical Education and Skills Development Authority
(TESDA), undertake initiatives to promote ICT and ICT-enabled services in
education and training and the development, promotion and application of ICT in
education in a manner that is consistent with national goals and objectives, and
responsive to the human resources needs of the ICT and ICTenabled services
sector in particular.

SEC. 7. Composition. - The Department shall be headed by a Secretary to be
appointed by the President, subject to the confirmation by the Commission on
Appointments. The President shall also appoint not more than four (4)
undersecretaries and four (4) assistant secretaries.

Any person appointed as undersecretary or assistant secretary of the Department
must be a citizen and resident of the Philippines, of good moral character, of
proven integrity, and with experience or expertise in either of the following:


electronic governance, cyber services, information technology infrastructure, or
human capital development.

The assistant secretaries referred to herein shall be career officers with
appropriate eligibilities as prescribed by the Civil Service Commission.

SEC. 8. Secretary of Information and Communications Technology. — The
authority and responsibility for the exercise of the mandate of the Department and
for the discharge of its powers and functions shall be vested in the Secretary of
Information and Communications Technology, hereinafter referred to as the
Secretary, who shall have supervision and control over the Department.

For such purposes, the Secretary shall:

(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;

(c) Rationalize delivery systems necessary for the effective attainment of the
objectives of the Department, including the creation of regional and/or field offices;
(d) Review and approve requests for financial and manpower resources of all
operating offices of the Department;

(e) Designate and/or appoint all officers and employees of the Department, except
the undersecretaries, assistant secretaries and regional and assistant regional
directors, in accordance with civil service laws, rules and regulations;

(f) Coordinate with local government units (LGUs), other agencies, and public and
private interest groups, including nongovernment organizations (NGOs) and
people's organizations (POs) on Department policies and initiatives;

(g) Advise the President of the Republic of the Philippines on the promulgation of
executive and administrative orders and regulatory and legislative proposals on
matters pertaining to ICT development and promotion;

(h) Formulate such rules and regulations and exercise such other powers as may
be necessary to implement the objectives and purposes of this Act; and

(i) Perform such other tasks as may be provided by law or assigned by the
President of the Republic of the Philippines from time to time.

SEC. 9. Council of Chief Information Officers. - Every department and agency of
the national government or its equivalent office in any constitutional body, state
college or university, and government-owned and controlled corporation, is hereby
directed to designate at least the third ranking official as a Chief Information Officer.
The said officers shall collectively form the Council of Chief Information Officers.
The Secretary shall be the Chairman of the Council.

The Council shall serve as a coordinating body to assist the Secretary in
implementing plans for a unified government-wide portal, set standards for
government websites, and establish rules and guidelines for the provision of
information and other ICT e-government tives.

In performing its duties, the Council shall also consult regularly with Chief
Information Officers of local government units on |CT-related activities through
their national association and/or through the leagues of local governments.

The Secretary shall convene the Council en banc or by sector at least once every
semester within a calendar year.

SEC. 10. 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 government ICT projects which 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.

The Fund may be augmented by donations, contributions and grants from local or
international funding agencies.

In order to ensure full transparency, accountability and integrity on the use of
e-government funds, a set of guidelines for the disbursement and management of
the fund, including the monitoring and evaluation system of projects funded under
the e-government fund, shall be formulated, developed and published by the
Department, in coordination with the Department of Budget and Management
(DBM). In the preparation of said guidelines, consultations shall also be made with
the respective umbrella organizations of the information technology and
communications sector.

The implementing agencies granted funding under the e-government fund shall
maintain primary responsibility over the use and management of the allocated
funds. The agency concerned shall regularly submit performance and monitoring
reports on the use of said funds to the Department of Information and
Communications Technology (DICT).

In connection with the implementation of the e-government fund, the Department
shall provide or arrange the appropriate or relevant ICT education or training
program for government ICT in order to enable the trainees to comprehend the ICT
development cycle appropriate to a given project, as well as to ensure that
government project managers shall acquire expertise for the timely delivery of
systems according to a prescribed content and budget.

SEC. 11. Periodic Performance. — The Secretary is hereby required to formulate
and enforce a system to periodically and objectively measure and evaluate the
performance of the Department and to submit the same annually to the President
of the Republic of the Philippines and to appropriate Congressional Committees.

SEC. 12. Transfer of Agencies and Personnel.
institutions are hereby absorbed in the Departme:

The following agencies and

{a) All operating units currently existing in the Commission on Information and
Communications Technology (CICT), which directly support communications,
including the Telecommunications Policy Planning Office;

(b) The National Computer Center under the Department of Science and
Technology (DOST); and

(c) All offices, services, divisions, units, and personnel of the Department of
Transportation and Communications (DOTC) with functions and responsibilities
dealing with communication.

All offices, services, divisions, units and personnel not otherwise covered by this
Act for transfer or absorption into the new Department shalll 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.


The following agencies are hereby attached to the Department for policy and
program coordination and shall continue to operate and function in accordance
with their charters, laws or orders creating them, and with such other functions and
responsibilities mandated by law and insofar as they are consistent with this Act:

(a) National Telecommunications Commission;
(b) Philippine Postal Corporation; and
(c) Telecommunications Office (TELOF).

The Department shall not exercise any power which will have the effect of
modifying the exercise by the NTC of its quasi-judicial function.

SEC. 13. Separation from Service. - Employees separated from the service as a
result of the reorganization shall, within ninety (90) days therefrom, receive the
retirement benefits to which they may be entitled under existing laws, rules and
regulations.

Those incumbent employees whose positions are not included in the new position
structure and staffing pattern of the Department, or who are not re-appointed shall
be deemed separated from the service, whether permanent, temporary,
contractual or casual employees, and shall, within ninety (90) days therefrom,
receive the retirement benefits to which they may be entitled under existing laws,
rules and regulations.

SEC. 14. Appropriations. - The amount needed for the initial implementation of
this Act shall be taken from the current year’s appropriations of the Commission on
Information and Communications Technology and all government agencies herein
absorbed or attached to the Department. Thereafter, the amount needed for the
operation and maintenance of the Department and its line agencies shall be
included in the annual General Appropriations Act.

The budget of the Philippine Postal Corporation shall be charged from its internally
generated funds.

SEC. 15. Transitory Provisions. — Within three (3) months after the approval of this
Act, the organizational structure including the creation of new divisions or units as
may be deemed necessary for the Department to carry out its powers and
functions under this Act, shall be determined by the Secretary through a
Committee that he shall establish for the purpose.

The new organizational structure and staffing pattern of the Department shall be
evaluated and approved by the DBM.

The authorized positions created under the organizational or reorganization plan
shall be filled with regular appointments, as the exigencies of the service will
require and depending upon the position involved, by the President of the
Philippines or the Secretary of the Department as the case may be, in accordance
with the civil service rules and regulations.

SEC. 16. Implementing Rules and Regulations. - The Department shall
promulgate and issue such rules and regulations and other issuances within ninety
(90) days from the approval of this Act as may be necessary to ensure its effective
implementation.

SEC. 17. Separability Clause. — \f 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. 18. 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. 19. Effectivity Clause. — This Act shall take effect after fifteen (15) days from
its publication in at least two (2) newspapers of general circulation.

Approved,