” RECEIVED

Republic of the Philippines LATE: MAY 30
HOUSE OF REPRESENTATIVES ia ae
Quezon City
EIGHTEENTH CONGRESS

First Regular Session

HOUSE BILL NO. __ 6874

Introduced by REP. FRANCISCO “KIKO” B. BENITEZ, Ph.D.
EXPLANATORY NOTE

We are on the cusp of the Fourth Industrial Revolution. Great advances in science and
technology are increasingly blurring the boundaries of the digital, physical and biological
worlds, with enormous impact on the creation of economic value and on social relations. It
draws endless possibilities and we are only beginning to fully comprehend the breadth and
depth of how it will transform our way of life.

GPS navigation software that directs you to less congested roads. Autonomous robots and
voice-activated virtual assistants powered by artificial intelligence. Immersive consumer
experience through virtual or augmented reality technologies. Automated irrigation systems
facilitated by sensors and solar power. Decentralized digital currency systems supported by
blockchain technology. Tissue engineering enabled by 3D printing. Science fiction is fast
becoming our reality. And these are only the tip of the iceberg.

The fundamental changes driven by emerging technologies present both opportunities and
challenges to Filipinos. The use of new technologies can increase production and enhance
consumer experience. A 2017 Microsoft study estimates that digital transformation will
contribute $8 billion to or around 40 percent of the Philippines’ GDP by 2021.' Another
Microsoft survey finds 86 percent of business leaders believe that digital transformation will
enable future growth and that data analytics can lead to new revenue streams.”

Digital-creative economy nexus

Creative industries, for example, stand to benefit from digital transformation. Digital
technologies are enabling new forms of artistic and creative expression, opening new
distribution pathways, broadening audiences and markets for creative content, and affecting
consumption patterns. The United Nations Conference in Trade and Development calls creative
industries as “a powerful, growing economic force” as “it intersects with the digital and sharing
economy, e-commerce. og

In the Philippines, export of creative goods and services are valued at $915.45 million in 2014,
an 18 percent increase from $775.83 million in 2005, mainly driven by fashion, interior design,
toys and jewelry products.*

SUN conference on Trade and Development. 2018). Creative Economy
“tod


The National Economic and Development Authority, in its 2018 Socioeconomic Report,
admits “there is a need to consolidate all creative industry players, create opportunities, and
develop a pool of creative talent and experts for a more inclusive creative economy.”

The Technical Education and Skills Development Authority already provides programs to
develop technical skills that are relevant to occupations in the creative economy. However, the
challenge really is mainstreaming digital competencies in all technical and vocational
education and training programs as TESDA recognizes “the increased integration of ICTs in
almost every industry.”

Res!

revolution

Indeed, the digital transformation of production processes and services across industries require
new skillsets. Automation and augmentation of production and service delivery could
potentially displace workers without the necessary skills. In a study of G20 economies, the
World Economic Forum estimates that 75 million current job roles may be displaced by the
shift in the division of labor between humans, machines and algorithms. But on the other hand,
133 million new jobs, such as data analysts, software developers, and e-commerce and social
media specialists, may emerge.°

While digital transformation of businesses in the Philippines is only starting to take off, with
only 32 percent of business leaders having a full digital transformation strategy’, it is crucial
that the Government facilitates the reskilling of the Filipino workforce so they can adapt to the
demands of a digital economy.

A parallel reskilling revolution is necessary to harness the benefits of the Fourth Industrial
Revolution. And workers are already clamoring for more investments in digital skills
development. A 2017 Microsoft study finds 47 percent of workers expect leaders to close the
digital skills gap*

‘A reskilling revolution calls for the development not only of technical skills to operate or design
new technologies but also of human skills such as critical thinking, creativity, originality and
initiative, complex problem-solving, flexibility, and emotional intelligence.’ The development
of these competencies must be integrated in our education systems guided by a standards-based
framework. This bill references the UNESCO Global Framework of Reference on Digital
Literacy Skills, UNESCO Digital Kids Asia Pacific Framework for Education and the Digital
Skills Toolkit of the International Telecommunications Union to guide the formulation of
standard learning outcomes across different modalities of learning.

STESDA, (2019). Pagkamalikhain: The Philigpine Creative Industries in the TVET Perspective (Labor Inteligence Report
5/201
® World Economic Forum. (2018). Future of Jobs Report. Retrieved from https /wwww,weforum org/agenda/2016/09/future-of-

Microsoft Asia. (2017). Microsoft Asia Digital Transformation Survey. Retrieved from hitps/Inews,microsof. comven-



This bill also proposes a competency framework for teachers and trainers as part of continuing
professional development. They must hamess digital technologies to augment or enhance
learning activities. For this purpose, we should adopt the UNESCO ICT Competency
Framework for Teachers.

‘Smart governance

Needless to say, the scale of digital transformation of local economies and learning
environments rests in the level of commitment and performance of the Government to build
backbone ICT infrastructure to increase access to fast and affordable Internet. In this aspect we
are lagging.

The Philippines ranked 63" out of 100 countries in the 2020 Inclusive Internet Index which
assesses Internet availability, affordability, relevance and readiness. “The Philippines is among
Asia’s weaker countries in advancing internet inclusion, ranking 19th out of 26 nations in the
region. Affordability levels of smartphones and mobile data are low in the global context, and
mobile users are burdened by relatively slow download and upload speeds,” the Index said.'°

‘The UN Broadband Commission for Sustainable Development has set ambitious targets for
2025, which includes:

1. By 2025, Broadband Internet user penetration should reach 65% in developing
countries;

2. By 2025, entry-level broadband services should be made affordable in developing
countries at less than 2% of monthly Gross National Income (GNI) per capita;

3. By 2025, 60% of youth and adults should have achieved at least a minimum level of
proficiency in sustainable digital skills; and,

4. By 2025, overcome unconnectedness of Micro-, Small- and Medium-sized
Enterprises (MSMEs) by 50%, by sector.

Achieving these will require a whole-of-government approach. Historically, ICT policies and
programs have been developed in silos. It is imperative that government agencies complement
each other and operate under a single framework. For this purpose, this bill aims to establish a
coordinating body to ensure cohesiveness of government policy to accelerate and harness the
digital revolution to transform Philippine cities into smart cities. The bill empowers the
igital Council to formulate strategies for skills development, digital-creative
economy development and smart city development, as well as for backbone ICT infrastructure
development.

‘A smart city represents the totality of digital transformation for the benefit of the people. The
bill adopts the smart city framework developed by Dr. Rudolf Giffinger and his team in the
Vienna University of Technology, which highlights collaboration and innovation among
government, business, academia and citizens. A smart city leverages new technologies to drive
sustainable solutions to urban problems, such as poverty, traffic congestion, pollution, and
criminality.

Helen

10, March 3). Philippines ranks 63" in inclusive internet index. Philippine Star. Retrieved from


Digital transformation for “new normal”

The COVID-19 pandemic has exposed economic and social inequalities, particularly in urban
areas, that make populations vulnerable. Lockdowns have put economies in coma; businesses,
particularly, MSMEs are forced to lay off workers or cut wages to survive. Unemployment
threatens to sink families into extreme poverty. School shutdowns have interrupted learning.
Digital transformation is the solution.

Enterprises can leverage digital technology to reach and engage customers and clients, and can
improvise processes to drive productivity. Digital technology can enable flexible or distance
learning.

But how can the Philippines harness the benefits of digital transformation if we do not address
the digital divide?

‘We must accelerate the digital revolution to foster economic resilience and competitiveness
but also, more crucially, social equity. The Government should be in the frontlines of building
not only a smart future but a future where no one is left behind.

Our Constitution heralds the role of technological innovation to promote national development.
We need to rise up to the challenge and help our people develop the necessary skills and
innovate to adapt, compete and flourish in a brave new world.

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

ite fa re, Ph.D.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 8874

Introduced by REP. FRANCISCO “KIKO” B. BENITEZ, Ph.D.

AN ACT
PROVIDING FOR A COMPREHENSIVE POLICY TO ACCELERATE AND
HARNESS THE DIGITAL REVOLUTION TO FOSTER INCLUSIVE ECONOMIC
GROWTH, SUSTAINABLE DEVELOPMENT AND _ PARTICIPATORY
GOVERNANCE

ARTICLE I
STATE POLICIES AND OBJECTIVES

SECTION 1. Short Title. — This Act shall be known as the “Digital Philippines Act”.

SEC. 2. Declaration of State Policy. The State recognizes the critical role of science,
technology and innovation in fostering inclusive and sustainable economic growth, and human
development. The State shall take appropriate steps to enable all citizens, regardless of age,
sex, gender, income class, ethnicity, language, religion, or ability, to access and use information
and communication technologies (ICT), and acquire knowledge, skills and values to adapt to
the demands of a knowledge economy and digital society.

The State shall accelerate and harness advance digital technologies and ICT-enabled
innovations to maximize the benefits and address the challenges of the Fourth Industrial
Revolution. The State shall build an enabling ICT ecosystem to reengineer production and
management systems towards sustainability, enhance production, generate employment, and
facilitate interaction between producers and consumers. The State shall promote digital
transformation at all levels of government to streamline and speed up the delivery of
government services.

SEC. 3. Objectives. This Act aims to:

a) Recognize the significant contribution and vast potential of digital innovation and
creative industries to drive economic growth, and enrich our human and cultural capital;

b) Provide a strategic vision, and comprehensive and cohesive framework to guide
anticipatory planning and investment programming to support digital innovation and
transformation;

©) Adopt a whole-of-government approach in promoting digital innovation and
transformation in business and government;


d) Rationalize ICT-enhanced and ICT sector-specific interventions to prevent duplication
and ensure complementarity of services, and improve efficiency in its delivery;
Stimulate growth and enhance competitiveness and resilience of service and creative

industries by promoting digitization of products and services;

e)

£) Establish a framework for development of digital skills of all learners in diverse settings
and throughout life; and,

Provide the backbone infrastructure to bridge the digital divide and enable and support
ICT innovation and digital inclusion.

SEC. 4, Definition of Terms. As used in this Act:

8

a) Digital transformation refers to the strategic adoption of digital technologies to improve
processes and productivity, deliver better learning, customer and employee
‘experiences, manage business risk, and control costs;

1)

Digital inclusion refers to the ability of individuals and groups to access and use
information and communication technologies. Digital inclusion encompasses not only
access to the Internet but also the availability of hardware and software; relevant
content and services; and training for the digital literacy skills required for effective use
of information and communication technologies;

CG

Digital citizenship refers to the ability to find, access, use and create information
effectively; engage with other users and with content in an active, critical, sensitive and
ethical manner, and navigate the online and ICT environment safely and responsibly,
being aware of one’s own rights;

qd)

Digital literacy refers to the ability to access, manage, understand, integrate,
communicate, evaluate and create information safely and appropriately through digital
technologies for employment, decent jobs and entrepreneurship. It includes
competencies that are variously referred to as computer literacy, ICT literacy,
information literacy and media literacy;

c)

Creative industries refer to the cycles of creation, production, promotion, distribution
and/or commercialization of goods, services and activities that use creativity, cultural
and intellectual capital as primary inputs. They constitute a set of activities, focused on
but not limited to arts, potentially generating revenues from trade and intellectual
property rights. They comprise tangible products and intangible intellectual or artistic
services with creative content, economic value and market objectives. Creative
industries are:

1) Music and Performing Arts

2) Film, Television, Radio and Photography

3) Advertising and Marketing

4) Software Development, Animation and Game Development
5) Writing, Publishing and Print Media,

6) Museums, Galleries and Libraries,

7) Heritage Crafts and Activities, including Gastronomy,

8) Architecture and Interior Design, and,


8)

h)

m)

n)

9) Visual Arts, and Product, Graphic and Fashion Design.

Decent work refers to work that is productive and delivers a fair income, security in the
workplace and social protection for families, better prospects for personal development
and social integration;

Informal learning refers to forms of learning that are intentional or deliberate but are
not institutionalized. They are less organized and structured than either formal or non-
formal education. Informal learning may include learning activities that occur in the
family, in the work place, in the local community, and in daily life, on a self-directed,
family-directed or socially-directed basis;

Non-formal education refers to education that is institutionalized, intentional and
planned by an education provider. The defining characteristic of non-formal education
is that it is an addition, alternative and/or a complement to formal education within the
process of the lifelong learning of individuals. It caters for people of all ages, but does
not necessarily apply a continuous pathway-structure; it may be short in duration and/or
low intensity, and it is typically provided in the form of short courses, workshops or
seminars. Non-formal education can cover programs contributing to adult and youth
literacy and education for out-of-school children, as well as programs on life skills,
work skills, and social or cultural development;

Reskilling refers to learning new sets of competencies to transition to a completely new
role;

Upskilling refers to learning new competencies to stay in current role, due to the change
in skills required, or adding certain competencies for career progression;

Occupational mobility refers to the ease at which a worker can leave one job for another
ina different field;

Flexible learning refers to a set of educational approaches and systems concerned with
providing learners with increased choice, convenience, and personalization to suit their
needs. In particular, flexible leaning provides educational choices about where, when,
and how learning occurs, by using a range of digital and non-digital technologies to
support the teaching and learning process;

Learner-centered pedagogy refers to a pedagogical approach that generally draws on
learning theories suggesting learners should play an active role in the learning process.
Students therefore use prior knowledge and new experiences to create knowledge. The
teacher facilitates this process, but also creates and structures the conditions for
learning;

Open educational resources (OER) refer to any educational resources (including
curriculum maps, course materials, textbooks, streaming videos, multimedia
applications, podcasts, and any other materials that have been designed for use in
teaching and learning) that are openly available for use by teachers and students,
without an accompanying need to pay royalties or license fees. An OER is an
educational resource that incorporates a license that facilitates reuse, and potentially


adaptation, without requiring that permission first be requested from the copyright
holder; and,

0) Community learning center is a physical learning space that promotes human
development by providing opportunities for lifelong learning to all people in the local
community. CLCs support empowerment, social transformation and improvement of
the quality of life of the people. The main functions of CLCs are to provide: i) access
to digital technologies, ii) education and training, iii) community information and
resource services, iv) community development activities, and v) co-ordination and
networking, to promote human development and lifelong learning.

ARTICLE IL
NATIONAL DIGITAL COUNCIL

SEC. 5. National Digital Council. There is hereby created a National Digital Council,
under the administrative supervision of the Office of the President, to formulate strategies and
coordinate government policies and programs to foster digital inclusion and maximize the
economic and social benefits of digital and data-driven technologies to promote robust
economic growth and resilience, sustainable development, and participatory governance.

SEC. 6. Composition. The National Digital Council, hereinafter referred to as the
Council, shall be composed of a Chairperson, with the rank of Secretary, appointed by the
President of the Philippines, and the following:

a) Secretary of the Department of Information and Communication Technology, as Vice
Chairperson;

b) Secretary of the National Economic and Development Authority;

¢) Secretary of the Department of Finance;

d) Secretary of the Department of Trade and Industry;

€) Secretary of the Department of Labor and Employment;

f) Secretary of the Department of Education;

g) Secretary of the Department of Science and Technology;

h) Secretary of the Department of Agriculture;

i) Secretary of the Interior and Local Government;

j) Chairperson of the Commission on Higher Education;

k) Director General of the Technical Education and Skills Development Authority;

1) Chairperson of the National Commission for Culture and the Arts;

m) five (5) private sector representatives.

The Chairperson and the five (5) private sector representatives, who shall be appointed by the
President, shall be citizens and residents of the Philippines, of proven competence, integrity,
probity and independence. They must have distinguished themselves in government, the
private sector or the academe in any of the following fields: computer science, engineering,
mathematics, economics, business and industry, and education.

Department Secretaries may designate an Undersecretary, whose portfolio covers promotion
of innovation and human capital development, as his/her representative, who shall sit in a
permanent capacity, and their acts shall be considered the acts of their principals.


SEC. 7. Powers and Functions of the Council, ~The Council shall exercise the following
powers and functions:

a) Formulate five-year and ten-year digital inclusion plans and strategies to accelerate and
harness advances in digital technology to increase competitiveness of service and
creative industries, and micro, small and medium enterprises (MSMEs), and Filipino
workforce in a global and digital economy, promote sustainable production, enhance
value creation, improve efficiencies in value chains, optimize business processes and
choices, and build long-term dynamism and resilience against future shocks and crises;

b)

Identify and recommend innovative service and creative industries to the Board of
Investments and Fiscal Incentives Review Board for the grant of performance-based
and time-bound tax and duty incentives and deductions;

°)

Harmonize and rationalize policies and programs for the promotion of digital
innovation in business and government, and development of digital competencies of
workers, teachers and learners under a standards-based framework;

4) Ensure the affordability and sustainability of digital skills development programs,

3

Advise the President with respect to policies and programs to catalyze digital
transformation of enterprises, education systems and government service;

f) Strengthen international linkages and partnerships to share best practices in
accelerating digital innovation and transformation;

g) Call upon or mobilize any department, bureau, office, agency, or instrumentality of the
government, including government-owned and -controlled corporations and local
government units, to extend full support towards the attainment of the objectives of this
Act;

bh

Create ad hoc committees or technical working groups consisting of relevant national
government agencies and stakeholders that address specific concerns relative to the
implementation of this Act;

Monitor the implementation of policies and programs and performance of
implementing agencies vis-a-vis standards and targets set forth in this Act; and,

j) Perform other tasks that the President may direct.

SEC. 8. Secretariat. A Secretariat is hereby created as a separate unit of the Presidential
Management Staff to provide technical, administrative and operation support to the Council.
The Secretariat shall be headed by an Executive Director appointed by the President. The
Executive Director shall have the same qualifications as the Chairperson and the private sector
representatives.

ARTICLE I
NATIONAL DIGITAL SKILLS DEVELOPMENT STRATEGY


SEC. 9. National Digital Skills Development Strategy. The Council shall formulate a
National Digital Skills Development Strategy, hereinafter referred to as NDS, to provide long-
term vision and direction to promote digital citizenship and ensure that all persons understand
and can take advantage of the educational, economic and social opportunities and benefits of
advanced information and communication technologies. The NDS shall:

a)

Identify and analyze current and emerging trends and changes in technology, trade,
consumption, demography and health that impact labor markets;

b) Define the skills or competencies necessary to adapt, compete and flourish in a
knowledge-based and digital economy and society, including but not limited to the
competencies identified under Section 6 of this Act;

°)

Determine gaps in existing policies, plans, programs and curricula to promote and
support ICT innovation and digital transformation;

d)

Establish goals for digital skills development in basic education, tertiary education,
technical and vocational education and training (TVET), and non-formal education for
out-of-school children and youth, and adults, and open opportunities for digital skills
development through informa! learning;

e)

Create a framework for the development of digital competencies of teachers and
trainers, guided by the principles of continuing professional development and lifelong
learning;

£) Provide for opportunities for the upskilling or reskilling of workers to build
occupational mobility and enable transition from jobs that require manual or physical
labor, administrative and management skills to work in industries that require technical
skills to use, operate and manage automated or digital technology-augmented systems

through lifelong learning;

g) Establish goals for the development of skills for digital entrepreneurship and lifelong
learning;

h) Provide for a framework of recognition, validation and accreditation of digital

competencies obtained through non-formal or informal learning;

Establish a framework for job placement to help graduates of digital skills education
and training programs find decent work;

Identify benchmarks, targets and indicators for the level of proficiency in digital skills
of key cohorts, adopt best practices in digital transformation in other countries, and
provide for its periodic monitoring and review; and,

i

k) Provide for mechanisms for collaboration between the government and the private
sector to broaden access to and ensure the affordability and sustainability of digital

skills development programs.

SEC. 10. Digital literacy framework. The Department of Education, Commission on
Higher Education, Technical Education and Skills Development Authority and other


government agencies implementing sector-specific, non-formal skills development programs
shall integrate in the curricula and design of the K-12, the Alternative Learning System (ALS),
general education programs of higher education institutions, TVET and other training
programs, and develop, in consultation with the private sector, modules on the following
competence areas:

a) ICT literacy ~ to identify, use, operate and manage ICT hardware and software;

b) Information and data literacy —to search, retrieve, navigate, analyze, interpret, critically
evaluate, organize, store, manage and utilize data, information and digital content
effectively to make informed decisions;

©)

Communication and collaboration — to be able, using digital technology, to interact,
communicate, share and co-create content, and collaborate with people; to participate
in social activities; to recognize, seek out and act on opportunities for social influence;
and to demonstrate and adapt netiquette or ethical and courteous behavior, and navigate
and bridge cultural and generational divides in digital environments;

d) Creativity, innovation and problem-solving — to represent and express one’s identity;
create, edit and curate digital content in different formats; to modify, improve, elaborate
and integrate data, information and content into an existing body of knowledge;
understand how copyright and licenses apply to data, information and content; to
identify, assess and troubleshoot technical problems when operating digital devices and
navigating digital environments; to develop computational thinking and be able to
understand and break down a complex problem into logical and sequential components,
and present, create and design solutions transmutable into human and/or computer
systems; to be able to code and/or design and develop computer programs; to identify,
evaluate, select and use digital tools to solve technical, conceptual and real-world
problems, create new bodies of knowledge, and innovate processes and products;

©

Digital safety and cyber-security — to protect devices, content, personal data, privacy,
reputation, and physical and mental health in digital environments; to be able to use
and share personally identifiable information protected by safety and security
measures; to understand risks and threats in digital environments; to know and
understand legal rights and obligations, and privacy policies within global and local
contexts;

f) Career-related competencies ~ to identify, assess and understand where one’s own
digital skills need to be improved or updated, and recognize, seek out and act on
opportunities for self-development or self-improvement to meet the demands of a
digital economy; to operate specialized digital technologies and to understand, analyze
and evaluate specialized data, information and digital content for a particular field; and,

Digital emotional intelligence — to recognize, navigate and express emotions in digital
environments, which require self-awareness, self-regulation, self-motivation, respect
for diversity, conflict management and empathy.

&

SEC. 11. Digital competency framework for teachers and trainers. The Department of
Education, Commission on Higher Education, Technical Education and Skills Development
Authority and other government agencies implementing sector-specific, non-formal skills


development programs shall formulate a uniform framework to upskill teachers and trainers to
utilize digital technologies to enable innovative pedagogies and enhance learning
environments. Aforesaid agencies shall develop effective and appropriate modules to develop
the following proficiencies of teachers and trainers:

a) Knowledge acquisition — to develop basic digital literacy and digital citizenship skills,
and to select and use appropriate instructional software to complement curriculum
objectives, assessment approaches, and a variety of teaching methods;

b) Knowledge deepening -to utilize digital technologies, such as visualization, simulation
and data analytics tools, to structure and facilitate dynamic, collaborative and student-
centered activities to understand concepts and relationships in real-world situations, and
apply the same to create solutions; and,

c

Knowledge creation — to strengthen self-awareness and self-improvement to contribute
to knowledge society, and to design ICT-enabled or -enhanced activities to engage
students in knowledge creation and innovation through complex problem-solving,
communication, collaboration, experimentation, critical thinking and creative
expression.

Implementing agencies shall develop diagnostic tools to evaluate the digital competencies of
teachers and trainers. The recognition, validation and accreditation of digital competencies
shall be integrated into the Philippine Qualifications Framework for continuing professional
development as provided in Republic Act No. 10697

SEC. 12. Alternative modes of learning delivery. Implementing agencies of digital skills
development programs shall take advantage of flexible learning methodologies and learner-
centered pedagogies, and make available open educational resources to increase access to
digital skills development modules.

SEC. 13. Private sector participation in digital skills development. The State shall
encourage employers to provide, where necessary, their employees access to educational and
training opportunities to develop digital literacy skills. An employer may develop, in
consultation with their employees and consistent with the digital skills framework provided in
Sec. 10 of this Act, and implement in-house training programs for their employees, or may
enroll their employees in digital skills development programs of accredited private training
providers, at no cost to the employee.

Workers may enroll in a private skills development program of their choice to complement the
education and training provided for by their employers. The Council shall formulate a voucher
subsidy program for all eligible workers to defray the cost of fees charged by the private
training provider.

For this purposes, the Council shall establish a uniform system of registration and accreditation
of private training providers, and regulation of the imposition and collection of training fees to
ensure the reasonableness and appropriateness of the same.

SEC. 14. Community learning centers. There shall be established at least one (1)
community learning center (CLC) in every municipality and city in the Philippines which shall
make available digital devices equipped with appropriate software and stable Internet


connection to provide people access online resources and content, and enable them to develop
skills and create new content or knowledge; Provided, That additional learning centers shall be
established such that there is one learning center per 50,000 persons in every city and every
municipality with a population of more than 100,000 persons; Provided, further, That existing
LCs, and public libraries and reading centers, constructed pursuant to Republic Act No. 7743,
shall be upgraded; Provided, finally, That the CLC shall be constructed in geographically
equitable and accessible locations, and in compliance with relevant building standards and
specifications, including the requirements to support or enhance the mobility of persons with
disability and senior citizens.

‘The Council, through its Secretariat and relevant Member Agencies, shall undertake the
construction, repair and rehabilitation of community learning centers, and the installation and
configuration of ICT hardware and software therein; Provided, That local government units
shall provide the site for CLCs and shall undertake its operation and maintenance. Local
government units may allocate such funds necessary for the operation and maintenance of
CLCs from the Special Education Fund, upon approval and authorization of the Local School
Board.

SEC. 15. Recognition, validation and accreditation of competencies. Pursuant to Seo. 8
(g) of this Act, the Council shall formulate guidelines for recognition, validation and
accreditation of competencies and learning outcomes obtained in non-formal and informal
digital skills development programs. Inasmuch as Republic Act No. 10647 provides for a
ladderized education system that enables transition and progression of students between TVET
and higher education, the Council shall develop equivalencies for the competencies and
outcomes of sector-specific non-formal skills development programs and informal learning,
and integrate the same in the Philippine Qualifications Framework.

SEC. 16. Education to employment. Digital skills development programs shall include a
presentation of pathways for students after graduation from the program. Providers of digital
skills training shall formulate and implement job placement programs to assist graduates find
decent work, and enable viable and desirable job transition. For this purpose, the Council shall
strengthen academe-industry linkages.

ARTICLE IV
PHILIPPINE DIGITAL ECONOMY STRATEGY

SEC. 17. Philippine Digital Economy Strategy. The Council shall formulate the
Philippine Digital Economy Strategy, hereinafter referred to as PDES, to accelerate and harness
digital innovation to transform major industries and enhance their competitiveness and
resilience. The PDES shall:

a) Identify, measure and analyze current and emerging trends and changes in technology,
culture, trade, demography, health and climate that impact consumption, supply chains,
and labor markets;

b) Determine the physical, technical and investment requirements to increase access of the
population to affordable and high-speed Internet and ensure the equitable geographic
distribution of backbone ICT infrastructure;


Provide a framework for the utilization of digital technologies, such as but not limited
to robotics, artificial intelligence, Internet of Things and interoperable systems, cloud
computing, data analytics, three-dimensional printing, and digital payment systems, by
businesses to augment or automate business analytics, production, content creation,
marketing, trade and financial services;

G

d) Determine the need for upskilling and reskilling of current and future workforce to

enable job transition and occupational mobility;

) Promote innovative and flexible business models that utilize digital technologies for
personalization and interactive tactics, such as immersive consumer experience and
user-generated content, to penetrate markets,

f) Consolidate and streamline registration and regulatory structures and procedures, and
rationalize the grant of assistance and incentives to MSMEs, the business processing
outsourcing sector, creative industries, startups and agro-enterprises, as provided by
various laws, to minimize redundancies,

Identify a multidisciplinary research and development to support and sustain digital
innovation; and,

8)

h) Establish benchmarks, targets and indicators to guide periodic monitoring, review and

updating.

SEC. 18, Digital-creative economy nexus. The National Commission for Culture and the
Arts and its attached agencies, the Design Center, the Film Development Council of the
Philippines, Movie and Television Review and Classification Board, Optical Media Board, and
the National Book Development Board shall establish, as a component of the National Digital
Economy Strategy, programs that will leverage digital technologies to enable innovative
content creation stimulate growth of creative industries, and promote Filipino talent and
creative products, with distinctive design that represents our rich cultural heritage and identity,
in domestic and international markets.

SEC. 19, Integrated Performance and Incentive Framework. The Council shall establish
and recommend uniform criteria to the Board of Investments and Fiscal Incentives Review
Board for the evaluation of qualification of businesses utilizing digital technology to avail tax
and duty incentives and deductions, as provided for in various laws, such as but not limited to
Republic Act No. 6977, as amended by Republic Act No. 9501, or the “Magna Carta for Micro,
Small and Medium Enterprises”, Republic Act No. 11321, or the “Sagip Saka Act”; and
Republic Act No. 11337, or the “Innovative Startup Act”.

Nothing in this Act shall be interpreted or construed to diminish or limit, in whatever manner,
the incentives granted or provided under aforesaid laws, and existing orders, issuances and
regulations.

ARTICLE V
DIGITAL INFRASTRUCTURE


SEC. 20. Backbone ICT infrastructure. The Department of Information and
Communication Technology shall accelerate the construction of backbone ICT infrastructure
to enable widest broadband penetration.

For this purpose, the DICT shall ensure the full implementation of Republic Act No. 10929,
otherwise known as the Free Internet Access in Public Spaces Act, within five (5) years since
the approval of this Act.

ARTICLE VI
SMART CITIES

SEC. 21. Smart cities. The Council, the Department of Human Settlements and Urban
Development, the Department of Environment and Natural Resources, Department of
Transportation and other concerned agencies shall formulate a Smart Cities Framework to
guide municipalities and cities in developing policies, plans and programs towards digital
inclusion and transformation urban development. The Smart Cities Framework shall conform
with the following principles

a) Smart Economy — utilization of digital technology and innovative business models; the
development of digital skills of the workforce; and the adoption of sustainable
production systems to enhance efficiency and competitiveness;

b)

Smart People — promotion of lifelong learning, digital inclusion, creativity and
innovation; development of knowledge, skills and values to adapt, compete and flourish
in a digital economy and society, to enable job transition, occupational mobility,
innovation, and digital entrepreneurship;

c) Smart Governance — utilization of new technologies and methodologies, such as
crowdsourcing, to strengthen connections and interactions between the local
government and citizens, businesses, and civil society;

d

Smart Mobility — promotion of new and multiple sustainable modes of transportation,
including mass transportation, such as electric vehicles, autonomous vehicles,
bicycling, and carpooling, to enable affordable, efficient and safe mobility for all;

e) Smart Environment — utilization of innovative technology to manage and monitor waste
production, pollution, and carbon emission, promote energy efficiency and accelerate
local energy transition; and, utilization of data analytics for planning and management
of built and natural environments to improve efficiency, minimize environment impact
and build resilience; and,

£) Smart living — increasing access of all citizens to electronic services, digital platforms
and ecosystems to promote digital inclusion, strengthen civic engagement and social
cohesion, and expanding access to ICT-enabled and -enhanced healthcare systems.

ARTICLE VIE
SMART GOVERNANCE STRATEGY

SEC. 22, Smart Governance Strategy. The Council and the Anti-Red Tape Authority
shall develop a Smart Governance Strategy, hereinafter referred to as SGS, to guide the phased


transition of processes and procedures towards full automation and enhanced interoperability
to eliminate bureaucratic red tape, improve efficiency of government services, support
planning and decision-making, promote transparency and strengthen citizen engagement and
participation, as provided for in Republic Act No. 9485, as amended by Republic Act No.
11032.

The SGS shall provide for a framework to rationalize the structure of all departments, bureaus,
offices, agencies, or instrumentalities of the government, including government-owned and -
controlled corporations, state universities and colleges, and local government units, to abolish
positions that will be rendered redundant by automation; Provided, That the Legislature,
Judiciary and constitutional commissions may, on a voluntary basis, apply the parameters
contained therein; Provided, further, That the SGS shall identify the skills or competencies
necessary to adapt to digital transformation of government services; Provided, finally, That
reskilling and upskilling programs shall be established for government employees.

The SGS shall also identify standards, targets and indicators to guide the gradual digital
transformation of the bureaucracy.

SEC. 23. Government information systems. All concerned agencies shall within two (2)
years establish the information systems and data registries on health, agriculture, business
enterprises and other relevant demographic, economic and social statistics as provided in
various laws, such as but not limited to UHC, AFMA, Sagip Saka, SMSE, and shall regularly
update the same to enable access to public information, and promote transparency,
accountability and participatory governance.

ARTICLE VIIL
FINANCING:

SEC. 24, Public-private partnership. The Council shall develop policies to promote and
encourage partnerships between the government and private sectors or non-government
organizations for the implementation of this Act, subject to existing rules and regulations on
public-private partnerships.

SEC. 25. Appropriations. The amount of one hundred million pesos (100,000,000.00) as
initial funding for the Council to be charged against the unexpended Contingency Fund of the
Office of the President is hereby appropriated. Thereafter, the amount needed for the
implementation of this Act shall be included in the annual General Appropriations Act.

ARTICLE IX
MONITORING AND OVERSIGHT

SEC. 26, Implementing rules and regulations. The Council shall issue the implementing
rules and regulations within sixty (60) days from the effectivity of this Act.

SEC. 27. Congressional oversight. The Council shall, on the first Monday of July every
year, submit a report to Congress of the achievement of objectives and targets of this Act.

For this purpose, there is hereby created a Congressional Oversight Committee. The Committee
shall be composed of five (5) Senators and five (5) Representatives to be appointed by the


Senate President and the Speaker of the House of Representatives, respectively. The Minority
shall be entitled to pro rata representation.

SEC. 28. Sunset review. Within five (5) years after the effectivity of this Act, or as the
need arises, the Congressional Oversight Committee shall conduct a sunset review. For
purposes of this Act, the term “sunset review” shall mean a systematic evaluation by the
Congressional Oversight Committee of the accomplishments and impact of this Act, as well as
the performance and organizational structure of its implementing agencies, for purposes of
determining remedial legislation.

ARTICLE X
FINAL PROVISIONS

SEC. 29. Repealing Clause. All other laws, decrees, executive orders and rules and
regulations contrary to or inconsistent with the provisions of this Act are hereby repealed or
modified accordingly.

SEC. 30. Separability Clause. If any provision of this Act is held invalid or
unconstitutional, the same shall not affect the validity and effectivity of the other provisions
hereof.

SEC. 31. Effectivity. This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in any newspaper of general circulation.

Approved,