EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
09:10 am
SENATE
Introduced by Senator Ralph G. Recto
AN ACT
REQUIRING THE DIGITALIZATION OF FRONTLINE SERVICES OF ALL 
GOVERNMENT AGENCIES AND APPROPRIATING FUNDS THEREFOR
EXPLANATORY NOTE
The restrained mobility of people due to the imposed physical distancing 
brought on by the COVID-19 pandemic radically changed consumer behavior towards 
digital transactions, for both private and public goods alike. Barred from leaving homes 
and wary of using cash as it is tagged as an agent for transmitting the virus, there 
was an increase in online transactions for buying goods and services.
Despite limited digital adoption, recent trends have shown that the Filipino 
people have accelerated their uptake of digital transactions in light of the COVID-19 
pandemic. According to the State of Digital Payments in the Philippines, digital 
transactions made by individuals in the Philippines have increased from 0.3% of total 
transactions in 2013, to 12% in 20181. For this year, UnionBank noted over one million 
fund transfer transactions in the month of March alone; while the Bank of the 
Philippines Islands noted a 25% increase in digital transactions including inter-bank 
transfers and bills payments during the first two weeks of the enhanced community 
quarantine.2 Similarly, the Bangko Sentrai ng Pilipinas noted a 57% increase in
1 Better than Cash Alliance. (2019). The State of Digital Payments in the Philippines. Retrieved from
https://www.betterthancash.org/tools-research/case-studies/countrY-diagnostic-the-philippines-2019-edition
2 Digital banking grows sharply during lockdown (2020, April 17), Philippine Star. Retrieved from
https://www.philstar.eom/business/2020/04/17/2007762/digital-banking-grows-sharply-during-lockdown


transactions using the fund transfer service InstaPay from April to May, and a 325% 
increase for PesoNet for the same period.3
In addition, some government offices have recognized the pressing need to go 
digital and have looked into the transition from analog to digital transactions. These 
include the Department of Trade and Industry for Business Name Registration System, 
the Philippine Statistics Authority for requesting civil registry documents, and Pag-IBIG 
for applications for and payments of loans, among others.
Despite limitations in internet penetration, the number of internet users in the 
Philippines has leapt from 55 million in 2015, to 73 million as of January 2020, with 
internet penetration at 67% for the same period.4 In a report by HootSuite and We 
Are Social, intenet users from the Philippines aged 16 to 64 years utilizing any device 
spent an average of 9 hours and 45 minutes per day5 on the internet, signifying that 
Filipinos have begun embracing the internet as a significant part of their daily lives.
Digitalization can reduce the costs of transactions at government offices— 
including the cost of travelling to and extended time spent at a government office that 
could have otherwise been used for more productive endeavors. In particular, face- 
to-face transactions now come with a higher potential cost during the time of 
pandemic, as public transportation remains limited, offices operate on limited capacity 
and time, and the potential to get Infected by COVID-19 remains high.
The proactive citizen-centric redesigning of frontline services across agencies, 
with health, safety, and convenience in mind provides significant gains to public 
welfare. In particular, ensuring safety of citizens and improving productivity in the 
public sector over the long term will justify the funding for digitalization program that
3 BSP chief: COVID-19 pandemic shows 'increasing importance' of digital transactions (2020, July 08), 
Inquirer.Net. Retrieved from https://business.inquirer.net/302013/bsp-chief-covid-19-pandemic-shows- 
increasing-importance-of-digital-transactions
4 We Are Social. (2020). Digital 2020: The Philippines. Retrieved from https://datareportal.com/reports/digital- 
2020-philippines
5 
We Are Social. (2020). Digital 2020: Global Digital Overview. Retrieved from
https://datareportal.eom/reports/digital-2020-global-digital-overview


will also be in line with the Department of Information and Communications 
Technology's (DICT) Philippine Digitai Transformation Strategy 2022, which aims to 
transform the government into a digital platform providing transparent and 
accountable governance, efficient operations, direct citizen engagement, and 
innovation; as well as supportive of the agency's Nationai Government Portai, which 
will contain all online information and public services of the government.
In light of the foregoing, immediate passage of the bill is earnestly sought.
FMPC/MRLG


EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
Second Regular Session 
)
SENATE 
S. No. 1750
RECEIVED
¥NDEX
Blits
Introduced by Senator Ralph G. Recto
AN ACT
REQUIRING THE DIGITALIZATION OF FRONTLINE SERVICES OF ALL 
GOVERNMENT AGENCIES AND APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
Section 1. Short Title. - This Act shall be known as the "E-Government Services
2 
Act of 2020".
3 
Sec. 2. Declaration of Policy and Objectives. - It is hereby declared a policy of
4 
the State to:
5 
(a) Recognize the vital role of information and communications technology in
6 
the social and economic development of the country;
7 
(b) Promote and support Innovations in providing better service to citizens and
8 
in raising efficiency and productivity in the public sector;
9 
(c) Build resilience in the face of external shocks such as natural disasters and
10 
pandemics where the mobiiity of citizens are restricted; and
11 
(d) Encourage the use of electronic documents and digital payments.
12 
For these purposes, the State shall pursue a citizen-centric digitalization of
13 
frontline services that wiil make government transactions more accessible and
14 
responsive to the changing needs of the people.
15 
Sec. 3. Coverage. - This Act shall apply to National Government Agencies, Local
16 
Government Units, and Government-Owned or Controlled Corporations and other
17 
government instrumentalities that provide frontline services.


1 
Sec. 4. Definition of Terms. - As used in this Act,
2 
(a) Digitalization refers to the adoption of information and communication
3 
technoiogies to upgrade processes for better ease and accessibiiity;
4 
(b) Frontline Services refer to the process or transaction between citizens as
5 
dients and government offices or agencies involving applications for any
6 
privilege, right, permit, reward, license, concession, or for any modification,
7 
renewal or extension of the enumerated applications and/or requests which are
8 
acted upon In the ordinary course of business of the agency or office concerned;
9 
(c) Electronic Documents refer to Information or 
the representation of
10 
information, data, figures, symbols or other modes of written expression,
11 
described or however represented, by which a right is established or an
12 
obligation extinguished, or by which a fact may be proved and affirmed, which
13 
is received, recorded, transmitted, stored, processed, retrieved or produced
14 
electronically;
15 
(d) Electronic Signatures refer to any distinctive mark, characteristic and/or
16 
sound in electronic form, representing the identity of a person and attached to
17 
or logically associated with the electronic data message or electronic document,
18 
or any methodology or procedures employed or adopted by a person and
19 
executed or adopted by such person with the intention of authenticating or
20 
approving an electronic data message or electronic document; and
21 
(e) Digital Payments refer to monetary transaction between two parties through
22 
a digital payment Instrument in which both payer and the payee use an
23 
electronic medium.
24 
Sec. 5. Digitalization of Government Frontline Services. - All government
25 
offices, in coordination with the Department of Information and Communications
26 
Technology (DICT), shall establish an electronic transaction system online which shall:
27 
(a) Accept the creation and filing of electronic documents with electronic
28 
signatures for the application for any privilege, right, permit, reward, license,
29 
concession, or for any modification, renewal or extension of the enumerated
30 
applications and/or requests;
31 
(b) Restrict face-to-face transactions with a requesting party during the
32 
assessment and evaluation of submitted electronic documents for an


1 
application or request, uniess such interaction is strictly necessary for the
2 
processing of the request or application; and
3 
(c) Require and/or accept payments, and issue receipts acknowledging such
4 
payments, through an online payment system accessible anytime and
5 
anywhere through any device connected to the internet.
6 
Sec. 6. Appropriations. - The amount necessary for the implementation of the
7 
provisions of this Act shall be included in the regular appropriations of the DICT
8 
foliowing its enactment into law. The local government units (LGUs) shail include in
9 
their respective appropriation ordinances such amounts needed for the
10 
implementation of this Act in their LGUs.
11 
Sec. 7. Impiementing Ruies and Reguiations (IRR). - Within sixty (60) days
12 
upon approvai of this Act, the DICT shali promulgate the necessary rules and
13 
regulations for the effective implementation of the provisions of the digitalization of
14 
frontiine services.
15 
Sec. 8. Separabiiity Ciause. - If any provision, section, or part of this Act shaii
16 
be deciared unconstitutionai or invaiid, such judgement shall not affect, invalidate or
17 
impair any other provisions, sections or parts hereof.
18 
Sec. 9. Repeaiing Ciause. - All provisions of existing laws, orders, rules and
19 
regulations or parts thereof which are in conflict or inconsistent with the provisions of
20 
this Act are hereby repealed, amended or modified accordingly.
21 
Sec. 10. Effectivity. - This Act shall take effect fifteen (15) days after its
22 
publication in the Officiai Gazette or in at least two (2) newspapers of general
23 
circulation.
Approved,