FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
5 EN A TE 
S.B. No.1352 
Introduced by Senator Loren Legarda 
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 II 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 1987 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 Information and 
Communication Technology 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. 
~ 
-- . ..-----:::::::::-
LORE1-q'ttGARDA 
Senator 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SEN ATE 
S.B. No.1352 
Introduced by Senator Loren Legarda 
AN ACT 
I n 
I'll i, II n .. )., 
. "-
>.{. 
j _J 
1\:-'. '. 
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 in Congress assembled: 
I 
SECTION 1. Title. This Act shall be known as the "Department of 
2 
Infor1I!ation and Communications Technology Act of 2010." 
3 
4 
SEC. 2. Declaration a/Policy. It i s hereby declared the policy of the State: 
5 
a. To ensure the provision of a strategic, reliable, cost-efficient and citizen-
6 
centric information and communications technology (ICT) infrastructure, 
7 
systems and resources as instruments of nation-building and global 
8 
competitiveness; 
9 
b. To foster a policy environment that will promote a broader market-led 
10 
development of the lCT and lCT-enabled services sectors, a level playing 
11 
field, partnership between the public and the private sectors, strategic alliance 
12 
with foreign investors and balanced investments between high-growth and 
13 
economically depressed areas; 
14 
c. To foster and accelerate the convergence of lCT facilities; 
IS 
d. To ensure universal access and high-speed connectivity at fair and reasonable 
16 
costs; 
17 
e. To 
ensure 
the 
availability 
and 
accessibility 
of 
information 
and 
18 
communications services in areas not adequately served by the private sector; 
19 
f. 
To promote the widespread use and development of emerging lCT; 
20 
g. To promote and assist the development of local lCT content, applications and 
21 
services; 
I 


I 
h. To establish a strong and effective regulatory system that will ensure 
2 
consumer protection and welfare, and foster a healthy competitive 
3 
environment; 
4 
I. To promote the development of ICT expertise in the country's human capital 
5 
to enable Filipinos to compete in the fast-evolving information and 
6 
communications age; 
7 
j. 
To ensure the growth of the ICT and ICT-enabled services sectors; 
8 
k. To preserve the rights of individuals to privacy and confidentiality of their 
9 
personal information; 
10 
1. 
To encourage the use of ICT for the development and promotion of the 
11 
country's arts and culture, history, education, public health and safety, and 
12 
other socio- civic purposes; 
13 
m. To sustain the development of the national postal system as an integral 
14 
component of the overall development ICT in the country; 
15 
n. To ensure the security of ICT infrastructures and assets of individuals and 
16 
businesses stored therein; and 
17 
o. To empower, using ICT, the disadvantaged segments of the population, 
18 
including persons with disabilities, such as the physically, emotionally or 
19 
mentally challenged. 
20 
21 
SEC. 3. Definition of Terms. As used in this Act, the following terms are 
22 
defined as follows: 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
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 netlAforked 
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, softlAfare developers and ICT -enabled service providers; 
d. "ICT-Enabled Services Sector" shall mean offshoring and outsourcing service 
2 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
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; 
e. "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). 
15 
SEC. 5. Mandate. The Department shall be the primary policy, planning, 
16 
coordinating, implementing, regulating and administrative entity of the executive 
17 
branch of the Government that will plan, promote and help develop the country's 
18 
I CT sector. 
19 
20 
SEC. 6. Powers and Functions. The Department shall exercise the following 
21 
powers and functions: 
22 
23 
a. Formulate, recommend and implement national policies, plans, programs 
24 
and guidelines for the ICT and ICT-enabled services sectors that will promote 
25 
wider use and development of lCT and provide increased and convenient 
26 
access by the citizens to the same; 
27 
b. Initiate, harmonize and coordinate all lCT plans and initiatives of 
28 
government agencies to ensure overall consistency and harmony with e-
29 
government objectives in particular, and national objectives in general; 
30 
c. Represent and negotiate for Philippine interest on matters pertaining to ICT 
31 
in international bodies; 
32 
d. Develop and maintain national ICT development plans and establish and 
33 
administer comprehensive and integrated programs for ICT with due 
34 
consideration to advances on convergence and other emerging technologies; 
35 
and for this purpose, may invite any agency, corporation or organization, 
36 
whether public or private, whose development programs in ICT are an 
3 


1 
integral part thereof, to participate and assist In the preparation and 
2 
implementation of such programs; 
3 
e. Promote knowledge, information and resource sharing, database building 
4 
and agency networking linkages among various government agencies; 
5 
f. 
Ensure the development and protection of an integrated government 
6 
information and communications infrastructure and coordinate all relevant 
7 
government entities, taking into consideration the inventory of existing 
8 
manpower, plans, programs, proposals, software and hardware, and the 
9 
installed systems and programs; 
10 
g. Provide an integrated framework in order to optimize all governmEnt ICT 
11 
resources and networks and the identification and prioritization of all e-
12 
government systems and applications as provided for in the Government 
13 
Information Systems Plan (GlSP) and the Medium Term Philippine 
14 
Development Plan (MTPDP); 
15 
h. Coordinate and support the generation and acquisition of necessary resources 
16 
as may be appropriate for the development, marketing, growth and 
17 
competitiveness of the Philippine lCT and lCT -enabled services sectors; 
18 
1. 
Develop, implement and improve, in coordination with concerned 
19 
20 
21 
22 
government agencies and industry associations, the government's lCT 
capabilities and determine the personnel qualifications and other standards 
essential to the effective development and operation of government 
information and communications infrastructure; 
23 
J. 
Ent:ourage and establish guidelines for the use of public-private partnerships 
24 
in the implementation of ICT projects for government agencies in order to 
25 
fast-track said projects and provide reasonable rehlm-on-investment for the 
26 
private sector, including but not limited to Build-Operate-Transfer (BOT) 
27 
mechanisms; 
28 
k. Assess, review and support lCT research and development programs of the 
29 
government in coordination with the Department of Science and Technology 
30 
and other institutions concerned; 
31 
I. Establish and prescribe rules and regulations for the establishment, operation 
32 
and maintenance ICT infrastructure in unserved and underserved areas, in 
33 
consultation with the private sector, local government units (LGUs) and the 
34 
academe; 
35 
m. Provide policy-direction and guidance in lCT-related aspects for the 
36 
operation and maintenance of a nationwide postal system that shall include 
4 


1 
mail processing, delivery services, and money remittance and payment 
2 
services; 
3 
n. Assist and provide technical expertise in the development of guidelines to the 
4 
Intellectual Property Office (IPO) in the enforcement and administration of 
5 
laws, standards, rules, and regulations governing ICT; 
6 
o. In coordination with concerned agencies, the private sector and relevant 
7 
international bodies, ensure consumer protection and welfare, and protect the 
8 
rights of consumer and business users to privacy, security and confidentiality; 
9 
p. Hqrmonize, synchronize and coordinate with appropriate agencies all ICT 
10 
and e-commerce policies, plans and programs; 
11 
q. 'Coordinate with the Department of Trade and Industry in the promotion of 
12 
trade and investment opportunities and protection of investor interests in the 
13 
ICT and ICT-enabled services sectors; 
14 
r. In coordination with concerned agencies, promote strategic partnership and 
15 
alliances among and between local and international rCT firms and 
16 
institutions, research and development, educational and training institutions, 
17 
and technology providers, developers and manufacturers to speed up 
18 
industry growth and enhance global competitiveness; 
19 
s. rn coordination with concerned agencies, plan and implement such activities 
20 
as may be appropriate to enhance the competitiveness of Philippine workers, 
21 
firms, and small and medium enterprises in the global markets for rCT and 
22 
rCT-enabled services; 
23 
t. In coordination with concerned agencies, establish and recommend the 
24 
adoption of qualification standards and enhance the career opportunities of 
25 
ICT workers in government; 
26 
u. In coordination with the Department of Education, Commission on Higher 
27 
Education and Technical Education and Skills Development Authority, 
28 
formulate policies and initiatives to promote rCT and rCT-enabled services 
29 
education and the development, promotion and application of rCT in 
30 
education in a manner that is consistent with the national goals and 
31 
objectives, and responsive to the human resource needs of the ICT and ICT-
32 
enabled services sectors; 
33 
v. Facilitate the creation of the Chief Information Officer (CIO) Council, which 
34 
shall consist of CIOs of national government agencies (NGAs) with at least 
35 
J:he rank of Assistant Secretary, with the Secretary serving as the Chairman, to 
36 
assist the Department in implementing e-government initiatives; 
5 


I 
w. Administer the E-Government Fund' as specified in Section 
15 and, in 
2 
3 
4 
5 
6 
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. 
7 
SEC. 7. Composition. The Department of Information and Communications 
8 
Technology shall be headed by a Secretary. The Department proper shall be 
9 
composed of the Office of the Secretary, the offices of the Undersecretaries and the 
10 
Assistant Secretaries. 
II 
12 
SEC. 8. Secretary of Information and Communications Technology. The 
13 
Secretary shall be appointed by the President, subject to confirmation by the 
14 
Commission on Appointments. 
15 
16 
17 
The Secretary shall have the following functions: 
18 
a. Provide executive direction and supervision over the entire operations of the 
19 
Department and its attached agencies; 
, 
20 
b. Establish policies and standards for the effective, efficient and economical 
21 
operation of the Department, in accordance with the programs of 
22 
Government; 
23 
c. Rationalize delivery systems necessary for the effective attainment of the 
24 
objectives of the Department, in accordance with the programs of 
25 
Government; 
26 
d. Review and approve request for financial and manpower resources of all 
27 
operating offices ot the Department; 
28 
e. Designate and appoint officers and employees of the Department, excluding 
29 
the Undersecretaries, Assistant Secretaries, and Regional and Assistant 
30 
Regional Directors, in accordance with the Civil Service laws, rules and 
31 
regulations; 
32 
f. 
Coordinate with LGUs, other agencies and public and private interests 
33 
groups, including non-government organizations (NGOs) and people's 
34 
organizations (POs) on Department policies and initiatives; 
35 
g. Advice the President on the promulgation of executive and administrative 
36 
orders and regulatory and legislative proposals on matters pertaining to ICT 
6 


development; 
2 
h. Serve as a member of the Government Procurement Policy Board as 
3 
established by Republic Act No. 9184; 
4 
1. 
Serve as the Chairman of the Board of the Philippine Postal Corporation in 
5 
accordance with Republic Act No. 7354 and the Corporation Law; 
, 
6 
j. 
F~nnulate such rules and regulations and exercise such other powers as may 
7 
be required to implement the objectives of this Act; 
8 
k. Perform such other tasks as may be provided by Law or assigned by the 
9 
President from time to time. 
10 
11 
SEC. 9. Undersecretaries. The Secretary shall be assisted by three (3) 
12 
Undersecretaries, who shall 
be 
appointed by the 
President upon the 
13 
recommendation of the Secretary; Provided that one (1) of the Undersecretaries shall 
14 
be a career officer coming from ranks of existing government information and 
15 
communications agencies and offices or qualified ICT professionals in the private 
16 
sector. 
17 
18 
SEC. 10. Assistant Secretaries. The Secretary shall be assisted by three (3) 
19 
Assistant Secretaries who shall be career officers appointed by the President upon 
20 
the recommendation of the Secretary. 
21 
22 
SEC. 11. Qualifications. No person shall be appointed Secretary, 
23 
Undersecretary or Assistant Secretary of the Department unless he is a citizen and 
24 
resident of the Philippines, of good moral character, and of proven integrity. 
25 
26 
SEC. 12. Regional Offices. The Department shall be authorized to establish, 
27 
operate, and maintain a Regional Office in each of the administrative regions of the 
28 
country as the need arises. The regional office shall be headed by a Regional 
29 
Director, who may be assisted by one (1) Assistant Regional Director. The Regional 
30 
Offices shall have, within their respective administrative regions, the following 
31 
functions: 
32 
33 
a. Implement laws, policies, plans, programs, projects, rules and regulations of 
34 
the Department; 
35 
b. Provide efficient and effective service to the people; . 
36 
c. Coordinate with regional offices of other departments, offices, and agencies; 
7 


I 
d. Coordinate with LGUs; 
2 
e. Perform such other functions as may be provided by law or assigned by the 
3 
Secretary. 
4 
5 
SEC. 13. Transfer of Agencies and Personnel. 
6 
7 
a. The following agencies are hereby abolished, and their powers and functions, 
8 
9 
applicable funds and appropriations, records, equipment property, and 
personnel transferred to the Department: 
10 
1. 
All operating units currently existing in the Commission on Information 
II 
and Communications Technology (CICT); 
12 
2. National Computer Center (NCC); 
13 
3. Telecommunications Office (TELOF); 
14 
4. All 
operating units of the Department of Transportation and 
IS 
Communications (DOTC) with functions and responsibilities dealing with 
16 
·communications. 
17 
. All offices, services, divisions, units and personnel not otherwise covered 
18 
by this Act for transfer to the Department shall be retained under the DOTC, 
19 
which is hereby renamed the Department of Transportation. 
20 
21 
b. The following agencies are hereby attached to the Department for policy and 
22 
program coordination, and shall ccmtinue to operate' and function in 
23 
accordance with the charters, laws or orders creating them, insofar as they are 
24 
not inconsistent with this Act: 
25 
1. National Telecommunications Commission; 
26 
2. Philippine Postal Corporation. 
27 
28 
c. The laws and rules on government reorganization as provided for in Republic 
29 
Act No. 6656, otherwise known as the Reorganization Law, shall govern the 
30 
reorganization process of the Department. 
31 
32 
SEC. 14. Postal Regulatory Authority. The exclusive power and authority to 
33 
regulate the postal delivery services industry, as provided for under Presidential 
34 
Decree No. 240 and Republic Act No. 7354, is hereby transferred to the Department. 
35 
SEC. 15. E-Government Fund. There shall be an E-Government Fund to be 
36 
administered by the Department, which is a Special Account in the General Fund, 
8 


created specifically to fund cross-agency and citizen-centric government ICT 
2 
projects. rhe Fund shall be used to support and co-finance projects that enable the 
3 
government to expand its ability to conduct activities electronically and provide 
4 
frontline services through the development and implementation of innovative uses 
5 
of the Internet or other emerging technologies. However, internal IT systems meant 
6 
to support the agencies' IT operations shall be charged against the agencies' own 
7 
budgetary allocation. 
8 
9 
SEC. 16. Implementation of the RPWeb. In consonance with the objectives of 
10 
Administrative Order No. 332 and Republic Act No. 8792, the primary responsibility 
11 
over the implementation of the RPWeb or the electronic online network of the 
12 
government which shall serve as initial platform of the Government Information 
13 
Infrastructure (GIl), is hereby transferred to the Department. For this purpose, the 
14 
Department shall continue utilization of all funds, monies, interests, and properties 
15 
outstanding and accruing from the RPWeb. 
16 
17 
SEC. 17. Sectoral and Industry Task Forces. The Department may create 
18 
sectoral and industry task forces, technical working groups, advisory bodies or 
19 
committees for the furtherance of its objectives. Additional private sector 
20 
representatives, such as from the academe and federation of private industries 
21 
directly involved in ICT, as well as other NGAs, LGUs and government owned and 
22 
controlled corporations (GOCCs), may be appointed to these working groups. 
23 
Government IT professionals may also he tapped to partake in the work of the 
24 
Department through these working groups. 
25 
26 
SEC. 18. Structure and Staffing Pattern. The Department shall determine its 
, 
27 
organizational structure and create new divisions or units as it may deem necessary, 
28 
and shall appoint officers and employees of the Department in accordance with the 
29 
Civil Service Law, rules, and regulations. 
30 
31 
SEC. 19. Magna Carta. Employees of the Department shall be covered by 
32 
Republic Act 8430, which provides a' magna carta for scientists, engineers, 
33 
researchers and other science and technology personnel in the government. 
34 
35 
SEC. 20. Separation from Service. Employees separated from the service as a 
36 
result of this reorganization shall, within ninety (90) days therefrom, receive the 
9 


I 
separation and retirement benefits to which they may be entitled under Executive 
2 
Order No. 366; Provided, that such separation pay and retirement benefits shall have 
3 
priority of payment out of the savings of the department or agency. 
4 
5 
SEC. 21. Appropriation. The amount needed for the initial implementation of 
6 
this Act shall be taken from the current fiscal year's appropriation of the ClCT 
7 
through the Office of the President and all agencies herein absorbed by or attached 
8 
to the Department. Thereafter, the amount needed for the operation and 
9 
maintenance of the Department shall be included in the General Appropriations Act; 
10 
Provided, that for the next fiscal year, the amount shall be One Billion Two Hundred 
11 
Million Pesos (Pl,200,OOO,OOO.OO). 
12 
, 
13 
SEC. 22. Repealing Clause. All laws, decrees, executive orders, rules and 
14 
regulations and other issuances or parts thereof inconsistent with this Act are hereby 
15 
repealed, amended or modified accordingly. 
16 
17 
SEC. 23. Separability Clause. If any provision of this Act shall be declared 
18 
unconstitutional or invalid, the other provisions of this Act not otherwise affected 
19 
thereby shall remain in full force and effect. 
20 
21 
SEC. 24. EffectiVity Clause. This Act shall take effect fifteen (15) days from its 
22 
publication in at least two (2) newspapers of general circulation 
23 
24 
Approved, 
10