FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 514 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Never in contemporary history has the world experienced the upsurge of 
modern information technology from today. We are swarmed with information, 
facts and ideas, which continue to increase everyday, by volume and density. 
Thus, the world has literally and figuratively shrunk and dwindled as events and 
occurrences are disseminated and dispatched simultaneously or processed and 
flown from one corner of the earth to another in mere nanoseconds. 
This 
phenomenal development serves as a framework for the country's development 
and growth. Handled positively, it ensures immediacy of action and increased 
responsiveness to events and assured global competitiveness. 
On the other 
hand, it may also be a bane to progress and truthfulness for his modern 
technology may be manipulated, controlled and maneuvered to suit vested 
interests. 
Although we are one of those countries today gearing towards 
computerization to cope with the challenges and demands of the so-called 
"Information Age", it is lamentable to say that we are still way behind other 
countries with respect to information technology. Our educational institutions, 
government agencies, corporate firms and ordinary citizens are ill equipped in 
computer knowledge. Moreover, we are lacking sorely in qualified instructors, 
most of them, at best are themselves in the process of continuing education. 
Hence, there is an urgent need for world-class Information Technology (IT) 
professionals in order to produce globally competitive workforce. 
The spread of information technology on the electronic highway has also 
given rise to the proliferation of pornographic materials in the Internet. 
The 
outright denial by persons concerned can be a classic example of the deceit, 
peril or hazard that the government should seek to prevent. There is a need to 
regulate this industry to avert moral degradation among our youth. 
This proposed measure, therefore, seeks to create a National Council for 
Information Technology and Development which will pave the way for an 
extensive use of IT for the country's benefit by upgrading computer literacy and 
education. 
The Board of Directors shall manage the Council. 
It shall be 
composed of various concerned government agencies and representatives from 
the private sectors to assure effective cooperative effort towards the realization of 
its thrusts and objectives. The Council shall likewise regulate local access to 
commercial online services to prevent minors from being exposed to cyberspace 
abuses such as pornography and violence. 


Considering the importance and relevance of this proposed measure, 
early passage of this bill is earnestly sought. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
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Senate Bill No. 
514' 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
CREATING THE NATIONAL COUNCIL FOR INFORMATION TECHNOLOGY 
AND DEVELOPMENT (NCITD), DEFINING ITS OBJECTIVES, POWERS AND 
FUNCTIONS, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. 
Short Title. 
This Act shall be known as the "National 
Council for Information Technology and Development Act of 2010". 
SEC. 2. 
Statement of Policy. It is hereby declared the policy of the 
State to provide a high quality information technology industry on a worldwide 
basis to cope with the rising economic global competitiveness, growth and 
welfare. 
Towards this end, there is a need to create National Council for 
Information Technology and Development which shall provide and regulate the 
information superhighway for the country in preparation for the next millennium. 
SEC, 3. Creation of the National Council for Information Technology 
and Development (NCITD). To implement the above mentioned policy, there is 
hereby created a National Council for Information Technology and Development, 
herein referred to as NCITD. 
SEC, 4. Composition of the NCITD. The NCITD shall be composed of 
the NCI'I"D Board and the NCITD Secretariat. 
. SEC. 5. Composition of the NCITD Board. The NCITD Board shall be 
composed of the following: 
1. 
NCITD Director-General-Chairperson; 
2. Technical Education and Skills Development Authority (TESDA) 
Director-General-Deputy Chairperson 
3. 
Representative from the Department of Education, Culture and Sports 
(DECS) - Ex officio Member; 
4. Representative from the Commission on Higher Education (CHED) Ex-
officio Member; 


5. Representative from the Department of Science and Technology 
(DOST) Secretary - Ex-officio Member; 
6. Representative from the National Computer Center (NCC) - Member; 
7. Representative from the Philippine Computer Society (PCS) -
Member; 
8. Representative from the National Telecommunication Commission 
(NTC) - Member; and 
9. Three (3) representatives from the academic sector; 
In addition, the President of the Philippines shall also appoint the following 
representatives from the private sectors as additional members to the Board: 
1. Three (3) representatives from the business sector; 
2., Three (3) representatives from the association of technological 
institutions 
. 3. Of good moral character and standing in the community; 
SEC. 7. Compensation of the Board. The members of the Board who 
are government officials shall not receive additional compensation for the 
services rendered thereto. 
Mernbers of the Board who are not government 
officials shall receive per diems of Five Thousand Pesos (P5,OOO.OO) per meeting 
of the Board. 
SEC. 8. Term of Office of the Representative from the Private Sector. 
The representatives from the private sector shall serve office for a term of three 
(3) years without reappointment. The President may, however, revise the 
membership of the NCITD Board whenever he deems it necessary for the 
effective performance of the Boards functions through an Administrative Order. If 
any of the members fail to complete his term, any person appointed to fill the 
vacancy shall serve only for the unexpired portion of the term of the' Board 
member whom he succeeds. 
SEC. 9. Meetings of the Board. The NCITD Board shall meet at least 
once a month or as frequently its Chairperson may deem as necessary. In the 
absence of the Chairperson, the Deputy Chairperson shall preside. In case any 
member of the Board representing the government cannot attend the meeting, he 
or she shall designate a representative. 
SEC. 10. Statement of Goals and Objectives. NCITD shall attain the 
following goals and objectives: 
(a) Strengthen information technology and development in the country for 
international competitiveness; 
(b) Transport the Philippines into Asia's knowledge center and help bring 
the country to the forefront of Asian economies; 
(c) Improve speed and accuracy of information exchange and network 
profileration 


(d) Provide a conducive environment for an "information superhighway" 
for the smooth implementation of the International Agreement on 
Information Technology among members of the World Trade 
Organization (WTO; 
(e) Improve the linkages between industry and government in the 
formulation of any national level plans; 
(f) 
Recognize and encourage the complementary rules of public and 
.private institutions in information technology and development; 
(g) 
Inculcate desirable values among Filipinos especially the youth 
through regulation of the information technology and development; 
and 
(h) Provide a pool of qualified IT professionals by granting scholarships 
or free continuing education to deserving computer instructors in the 
country. 
SEC. 11. Powers and Functions of the Board. "The NCITD Board shall 
have the following powers and functions" 
(a) Formulate, upgrade and integrate information technology education 
and development, plans and programs; 
(b) Promulgate policies, rules, regulations and guidelines as may be 
necessary for the effective implementation of this Act and in 
accordance with the Ministerial Declaration of the Information 
Technology Agreement signed by the Members of the World Trade 
Organization (WTO); 
(c) Regulate the communication of obscene or indecent materials 
especially to minors but with due regard to the observance of due 
process at all times; 
(el) Provide course modules for computer education in all educational 
institutions in the country; 
(e) Establish, develop and support institutions trainors training 
and/or 
programs; 
(f) Provide directive to educational institutions to integrate computer 
course as part of the curriculum of all courses from the elementary 
through post-graduate studies; 
(g) Promote and develop human resources of the bureaucracy towards 
computer literacy; 
(h) Provide for the registration of the IT providers or information 
technology centers and require the securing of permit with the Board 
to operate as such; 
(i) Order the closure if Internet providers or information technology 
centers and other similar establishments engaged in accessing 
information that violates the provisions of this Act and the rules and 
regulations promulgated by the Board in pursuant thereto; 


U) Promote 
public consciousness 
in 
information 
technology and 
development; and 
(k) Promulgate rules and regulations necessary for the implementation of 
this Act; and 
(I) Exercise all the powers necessary to attain the purposes for which it is 
created. 
SEC. 12. NCITD Secretariat. There is hereby created a National Council 
for Information Technology and Development (NCITD) Secretariat that shall 
provide administrative and technical support service to the Board. It shall have 
the following functions and responsibilities: 
(a) To establish and maintain technology and development; 
(b) To recommend measures and implement the same upon approval by 
the NICTD Board for the effective and efficient implementation of the 
policies, 
plans and 
programs for information technology and 
development; 
(c) To submit periodic reports to the Board on the progress and 
accomplishments of the Council on the implementation of the plans 
and policies in pursuant to the declared objectives of this Act; and 
(d) To perform such other functions and duties as may be assigned by the 
Board. 
SEC. 13. Director-General. The NCITD Secretariat shall be headed by a 
Director-General, who shall likewise be the Chairman of the NCITD Board. The 
Director-General shall be appointed by the President and shall enjoy the benefits, 
privileges and emoluments equivalent to the rank of Undersecretary. 
As Chief Executive Officer of the NCITD Secretariat, the Director-General 
shall exercise general supervision and 
control over its technical and 
administrative personnel. 
SEC. 14. 
Deputy Directors-General. 
The Director-General shall be 
assisted by two (2) Deputy Directors-General to be appointed by the President of 
the Philippines upon recommendation of the NCITD Board. One of them shall be 
responsible for Information Technology and Development training and the other 
one shall be responsible for development of policies and planning. 
The Deputy Director-General shall enjoy the benefits, privileges and 
emoluments equivalent to the rank of Assistant Secretary. 
SEC. 15. Chief of Services for Administration. There shall be a Chief 
of Services for Administration who shall be a Career Civil Service official to be 
appointed by the NCITD Board. He/she shall also assist the Deputy Director-
General for policies and planning. 
SEC. 16. 
Compliance with the Salary Standardization Law. 
The 
compensation and emoluments of the officials and employees of NCITD shall be 
in accordance with the Salary Standardization Law and other applicable laws 
under the National Compensation and Classification Plan. 


SEC. 17. Consultants and Technical Assistance, Publication and 
Research. In pursuing its objectives, NCITD is hereby authorized to set aside a 
portion of its appropriation for hiring of services of qualified consultants and 
private organization for research work and publications in the field of information 
technology and development. It shall avail the services of other agencies of the 
government as may be required. 
SEC. 18. Scholarship Grants. NCITD shall adopt a system of allocation 
and funding of scholarship grants that shall be responsive to information 
technology education and development needs of the different regions in the 
country. 
SEC. 19. Registration of Information Technology (IT) providers or IT 
Centers. All IT providers and ITC Centers shall be required to register with, and 
secure a permit from the NCITD Board to operate as such. The registration and 
permit issued by the Board shall be a condition precedent for securing a 
business permit or license from the appropriate office of the NCITD. 
acts: 
SEC. 20. Prohibited Acts. The following shall be considered prohibited 
(a) Causing or allowing to be transmitted by the use of computers or 
electronics communication any indecent or immoral scenes or anything 
that is contrary to public morals; 
(b) Failure on the part of an educational institution to integrate the 
computer course as part of its curriculum; and 
(c) Failure to register and secure a permit with the NCITD Board for the 
, operation of information technology centers and other similar 
establishments. 
SEC. 21. Penalty. Any person who commits any of the prohibited acts 
provided under this Act shall suffer the penalty provision mayor or pay a fine of 
not less than Fifty Thousand Pesos (P50,OOO.OO), or both, at the discretion of the 
court. If an IT provide or Center to which a permit is issued to operate as such 
commits the violation, the penalty shall include the suspension or revocation of 
its license or permit. 
SEC. 22. NC/TD Budget. The amount necessary to finance the initial 
implementation of this Act shall be charged against the existing appropriations of 
the Department of Science and Technology (DOST). Thereafter, such funds as 
may be necessary for the continued implementation of this Act shall be included 
in the annual General Appropriations Act. 
SEC. 23. Transitory Provision. 
(a) Within two (2) months after the approval of this Act, the President of 
the Philippines shall, in consultation with the government agencies 
composing the NCITD Board, appoint the private sector representative 
of NCITD. 
(b) Within three (3) months after the appointment of the private sector 
representatives, the President shall, upon the recommendation of the 
Board, appoint the Director-General. 


SEC. 24. Periodic Performance Evaluation and Review. Every three 
(3) years after the effectivity of this Act, an independent review panel composed 
of three (3) persons appointed by the President shall review the performance of 
NCITD and shall make recommendations based on its findings to the President 
and to both Houses of Congress. 
SEC. 25. Implementing Rules and Regulations. 
The NCITD Board 
shall issl.)e, with a period of ninety (90) days after the effectivity of this Act, the 
rules and regulations for the effective implementation of this Act. 
. SEC. 26. Repealing Clause. All laws, presidential decrees, executive 
orders, presidential proclamations, rules and regulations or parts thereof contrary 
to or inconsistent with this Act are hereby repealed or modified accordingly. 
SEC. 27. Separability Clause. 
If any provision of this Act is declared 
unconstitutional, the same shall not affect validity and effectivity of the, other 
provisions hereof. 
SEC. 28. Effectivity. This Act shall take effect after fifteen (15) days 
after its complete publication in at least two (2) newspapers of general 
circulation. 
Approved,