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THIRTEENTH CONGRESS 0 
REPUBLIC OF THE PHILIPPI 
First Regular Session 
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Introduced by Senator Jinggoy Ejercito Estrada 
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EXPLANATORY NOTE 
Never in contemporary history has the world experienced the upsurge of modern 
information technology than 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 this modern technology may be manipulated, controlled and maneuvered to suit 
vested in teres ts. 
Although we are one of those countries today gearing towards computerization to 
cope with-the chalkiiges 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. 
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This proposed measure, therefore, seeks to create a National Council for 
Information Techqology and Development which will pave the way for an extensive use 
of IT for the county's benefit by upgrading computer literacy and education. The Board 
of Directo7s'-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. 
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Considering the importance and relevance of this proposed measure, early 
passage of this bill is earnestly sought. 
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THIRTEENTH CONGRESS OF THE 
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'04 JtlN 30 RQ :oa 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
Introduced by Senator Jinggoy Ejercito Estrada 
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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 I. 
Short  title.^- This Act shall be known as the "National Council for 
Information Technology and Development Act of 2004". 
SECTION 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. 
SECTION 3. Creation of the National Council for lnformation 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. 
SECTION 4. Composition of the NCITD. - The NCITD shall be composed of the 
NCITD Board and the NCITD Secretariat. 
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SECTION 5. Composition of the NCI 
Board. - The NClTD Board shall be 
composed of the following: 
1. NCITD Director-General-Chairperson; 
2. Technical Education and Skills Development Authority (TESDA) Director - 
General - Deputy Chairperson 
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3. 
4. 
5. 
6. 
7. 
8. 
9. 
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Representative from the Department of Education, Culture and Sports 
(DECS) - Ex-officio Member; 
Representative from the Commission on Higher Education (CHED) Ex-officio 
Member; 
Representative from the Department of Science and Technology (DOST) - 
Secretary - Ex- officio Member; 
Representative from the National Computer Center (NCC) - Member. 
Representative from the Philippine Computer ociety (PCS) - Member; 
Representative from the National Telecommunication Commission (NTC) - 
Member; and 
Three (3) representatives from the academic sector. 
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; 
SECTION 6. Qualifications of Members of the 
member of the Board, he must have the following qualifications: 
1. Must be a natural-born citizen of the Philippines; 
2. At least twenty-five (25) ‘years of age at the time of his appointment; and . 
3. Of good moral character and standing in the community; 
SECTION 7. Compensation of the Boa 
- The members of the Board who are 
government officials shall not receive additional compensation for the services rendered 
thereto. Members of the Board who are not government officials shall receive per diems 
of Five Thousand Pesos (P5,OOO.OO) per meeting of the Board. 
SECTION 8. Term of Office of the Representatives 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. 
SECTION 9. Meetings of the Board. - The NCITD Board shall meet at least 
once a month or as fG?iuently 
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. 
SECTION IO. Statement of Goals and Objectives. - NClTD shall attain the 
following goals and objectives: 
(a) Strengthen information technology and development in the country for 
(b) Transform the Philippines into Asia's knowledge center and help bring the 
international competitiveness; 
country to the forefront of Asian economies; 
(c) Improve speed and accuracy of information exchange and network 
proliferation; 
(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 (VVTO); 
(e)fiprove linkages between industry and government in the formulation of any 
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national level plans; 
(f) Recognize and encourage the complementary rules of public and private 
institutions in information technology and development; 
(9) 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. 
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SECTION 1 1. Powers and Functions of the Board. - The NClTD Board shall 
have the following powers and functions: 
(a) 
Formulate, upgrade and integrate information technology education and 
(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 (VVTO); 
Regulate the communication of obscene or indecent materials especially 
to minors but with due regard to the observance of due process at all times; 
(d) 
Provide course modules for computer education in all educational 
institutions in the country; 
(e) 
Establish, develop and support institutions trainors training and/or 
development, plans and programs; 
(0) 
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; 
(9) 
computer literacy; 
(h) 
Promote and develop human resources of the bureaucracy towards 
Provide for the registration of 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; 
development; and 
(k) 
(j) 
Promote 
public 
consciousness 
in 
information 
technology 
and 
Promulgate rules and regulations necessary for the implementation of this 
Act; and 
(I) 
created. 
Exercise all the powers necessary to attain the purposes for which it is 
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SECTION 12. NCIT 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) 
(b) 
To establish and maintain technology and development; 
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 technolcrgy and development; 
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(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 
persuant to the declared objectives of this Act; and 
(d) 
To perform such other functions and duties as may be assigned by the 
Board. 
SECTION 13. Director-General. - The NClTD Secretariat shall be headed by a 
Director-General, who shall likewise be the Chairman of the NClTD 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 NGITD Secretariat, the Director-General shall 
exercise general supervision and control over its technical and administrative personnel. 


SECTION 14. Deputy ~ ~ r e ~ t o r s - ~ e n e r a ~ .  
- 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. 
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The Deputy Directors-General shall enjoy the benefits, privileges and 
emoluments equivalent to the rank of Assistant Secretary. 
SECTION 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 NClTD Board. Me/she shall also assist the Deputy Director-General for policies 
and planning. 
SECTION 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. 
SECTION 1 7. 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. 
SECTION 18. Scholarship rants. - 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. 
SECTION 19. Registration of Information Technology (IT) providbrs' or' IT 
Centers. - All IT providers and IT Centers shall be required to register with, and secure 
a permit from the NClTD 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. 
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SECTION 20. 
. - The following shall be considered prohibited 
a) Causing or allowing to be transmitted by the use of computers or electronic 
communications any indecent or immoral scenes or anything that is contrary to 
public morals; 
acts: 
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 ceqters and other similar establishments. 
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SECTION 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 (P50,000.00), or both, at the discretion of the court. If an IT 
provider 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. 
SECTION 22. NCITO 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. 
SECTION 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 NClfD Board, appoint the private sector representatives 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. 
SECTION 24. Periodic Performance Evaluation and 
eview - 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. 
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SECTION 25. lmplementin Rules and Re 
issue, within a period of ninety (90) days after the effectivity of this Act, the rules and 
regulations for the effective 
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implementation of this Act. 
The-NCITD Board shall submit to both Houses of Congress copies of the 
implementing rules and regulations within thirty (30) days after its promulgation. 
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SECTION 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. 
SECTION 27. Separability Clause. - If any provision of this Act is .
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declared 
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unconstitutional, the same shall not affect validity and effectivity of the, other provisions 
hereof. 
SECTION 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,