Republic of the Philipines
House of Representatives
Quezon City

: D
r JUL 2013 ©
SIXTEENTH CONGRESS 1 UE
First Regular Session al

House Bill No, 516

INTRODUCED BY HON. MARCELINO “MARCY’ R. TEODORO.

EXPLANATORY NOTE

Article Il, Section 24 of the 1987 Constitution provides that “[T]the State recognizes the vital
role of communication and information in nation-building.

In keeping with the said constitutional provision, this bill proposes the creation of the
Department of Information and Communications (DICT) to address the existing problem of the
Department of Transportation and Communications handling two different and major concerns. Further
the bill, seeks to create a single and well-focused agency that will concentrate on Information and
Communication Technology (ICT) which is an emerging, fast-evolving and increasingly complex
phenomenon. In doing so, the proposal hopes to develop a world-class Philippine ICT and ensure a
better future for all Filipinos

The DICT shall have the following functions:

1, Promote and oversee the development of ICT systems and ensure the growth of reliable and
cost-efficient communications facilities and services;

2. Promote technical trainings and scholarships that will enable Filipinos to compete in a fast-
evolving information and communication era;

3. Create a coordinating body called the Council of the Chief Information Officers which is
composed of representatives from every government agency;

4. Create a special account in the general fund called the E- Government Fund which shall be
administered by the proposed DICT and which may be augmented by donations, contribution
and grants from local and international funding agencies

5, Provide for the absorption into the proposed DICT all operating units currently existing in the
Commission on Information and Communications Technology (CICT), which directly support
communications, the National Computer Center and all offices, service, divisions, units, and
personnel of the Department of Transportation and Communication with functions
responsibilities dealing with communication;

6. Attach the National ‘Telecommunication Commission, Philippine Postal Corporation and
Telecommunications Office (TELOF) to the proposed DICT.

In view of the foregoing arguments, immediate passage of this bill is earnestly sought

a

MARCELINO “MARCY” R. TEODORO
Representative, Ist District,
City of Marikina



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 1516

INTRODUCED BY REP. MARCELINO “MARCY” R. TEODORO

AN ACT CREATING THE DEPARTMENT OF IRMATION AND
COMMUNICATIONS TECHNOLOGY, DEFINING ITS 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 “Department of
Information and Communications Technology Act of 2013.”

SEC. 2. Creation of the Department. ~ There is hereby created the Department
of Information and Communications Technology, hereinafter referred to as the
Department,

SEC. 3. Declaration of Policy. — \t is the policy of the State to promote the
utilization of information and communications technology, hereinafter referred to as ICT,
‘as a vital tool for nation-building and economic growth that is government-enabled,
private sector-led, citizen-centric and market-based, Towards this end, the government
shall prioritize the effective coordination and implementation of its national and local
ICT and ICT-enabled services, programs, projects and other related initiatives, and
reorganize and revitalize all relevant governmental institutions in order to achieve a
streamlined and efficient structure that is responsive and attuned to national goals and
objectives. It shall likewise be the policy of the State to provide an environment that will
support investments in cost-efficient ICT infrastructure, systems and resources to ensure
universal access and high-speed connectivity at fair and reasonable costs; a level-playing
field for strategic alliances with investors in order to have balanced investments between
high-growth and economically depressed areas, ensure consumer protection and welfare
as well as preserve the right of individuals and entities to privacy and confidentiality of
information; and promote accountability through transparent governance and effective
delivery of government frontline services,

SEC. 4. Definition of Terms. — As used in this Act, the following terms are
defined as follows:

(a) Broadcast refers to the sending of information to two (2) or more receiving
devices simultaneously — over a data communications network, voice mail, electronic
mail system, local TV/radio station or satellite system. Broadcast involves sending a
transmission simultaneously to all members of a group. In the context of an intelligent
communications network, such devices could be host computers, routers, workstations,
voice mail systems or just about anything else. In the less intelligent world of “broadcast
media,” a local TV or radio station might use a terrestrial antenna or a satellite system to
transmit information from a single source to any TV set or radio capable of receiving the
signal within the area of coverage


(b) Chief Information Officer (CIO) refers to a third-ranking, career executive in
charge of the information and communications _technology/information
technology/management information systems (ICT/IT/MIS) office in a department,
bureau or government-owned or -controlled corporation/government financial institution,
including legislative, judicial and constitutional offices,

(c) Cybersecurity refers to securing the cyberspace from known and unknown
attacks from d dos, Malwares and ‘Trojans, among others, through the creation of
technical defenses

(d) E-Governance or Electronic Governance refers to the application of
information communications technology to the processes of government functioning to
bring about efficient, ethical, accountable, responsive and transparent governance.

(e) Information and communications technology (ICT) refers to 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 networked information infrastructure, the components of
which include the telephone system, the Internet, fax machines and computers.

(® 1CT-enabled service providers refer to offshoring and outsourcing service
providers, including contact centers, medical or legal transcription, animation,
engineering or architectural design services, software development, business process
outsourcing services and other providers of services that require the intrinsic use of a
networked information infrastructure.

(g) ICT sector or ICT indusiry refers to all telecommunications carriers/operators,
ICT equipment and solutions manufacturers and providers, Internet service providers,
ICT training institutions, software developers and ICT-enabled service providers.

(ht) M-Governance or Mobile Governance refers to the application of mobile
technology to the process of government functioning to bring about efficient, ethical,
accountable, responsive and transparent governance

SEC. 5. Mandate. — The Department shall be the primary policy, planning,
coordinating, implementing, regulating and administrative entity of the executive branch
of the government that will plan, promote and help develop the country's ICT sector and
ensure reliable and cost-efticient communications facilities, other multimedia
infrastructure and services

‘The Department shall likewise be responsible for overseeing the government's
integrated and strategic ICT systems and improving the acquisition, utilization and
optimization of the government's ICT in order to improve the productivity, efficiency,
effectiveness and responsiveness of national and local government programs, The
Department shall furthermore be responsible for ensuring the application of ICT to the
various processes and functions of the government.

In fulfilling its mandate, the Department shall be guided by the following strategic
objectives:

(a) Ensure the provision of a strategic, reliable, cost-efficient and citizen-centric
ICT infrastructure, systems and resources as instruments of nation-building and global
competitiveness;

(b) Foster a policy environment that will promote a broader market-led ICT and
ICT-enabled services sector, a level playing field, partnership between the public and the


private sectors, strategic alliance with foreign investors and balanced investments
between high-growth and economically-depressed areas,

(c) Foster and accelerate the convergence of ICT facilities such as, but not limited
to, the development of networks;

(d) Ensure universal access and high-speed connectivity at fair and reasonable
costs;

(e) Ensure the availability and accessibility of ICT services in areas not
adequately served by the private sector,

(f) Promote and encourage the widespread use, creative development and access
to ICT with priority consideration on the requirements for growth of the Philippine ICT
industry;

(g) Promote and assist the development of local and national content application
and services in the area of ICT by sourcing or providing funds and construction
assistance for ICT-hubs and/or technical support to local-based providers in these
endeavors and in the marketing of the local products to the global community,

(h) Establish a strong and effective regulatory and monitoring system that will
ensure investor and consumer protection and welfare, and foster a healthy competitive
environment;

(i) Promote the development of ICT expertise in the country's human capital to
enable Filipinos to compete in a fast-evolving information and communication age;

(j) Ensure the growth of ICT and ICT-enabled industries, including mobile
technologies, application and services;

(k) Protect the rights of individuals to privacy and confidentiality of their personal
information;

() Encourage the use of ICT in support of efforts or endeavors for the
development and promotion of the country's agriculture, arts and culture, history,
education, public health and safety, and other socio-civic purposes;

(m) Sustain the development of the nationwide postal system as an integral
component of the overall development of ICT in the country;

(n) Ensure the security of ICT infrastructure and assets of individuals and
businesses; and

(0) Empower, through the use of ICT, the disadvantaged segments of the
population, including persons with disabilities (PWDs) or who are differently-abled.

SEC. 6. Powers and Functions. — To carry out its mandate, the Department shall
exercise the following powers and functions

(a) Formulate, recommend and/or implement national policies and guidelines in
the ICT sector that will promote wider use and development of ICT, and its applications,
such as e-commerce, in coordination with the Department of Trade and Industry (DTI),
among others;


(b) Initiate, harmonize and/or coordinate all ICT plans and initiatives of
government agencies to ensure overall consistency and harmony with e-governance
objectives, in particular, and national objectives, in general;

(c) Represent and negotiate for Philippine interests on matters pertaining to ICT in

international bodies,

(d) Develop and maintain national ICT development plans and establish and
administer comprehensive and integrated programs for ICT with due consideration to
advances in convergence and other emerging technologies; and for this purpose, invite
any agency, corporation or organization, whether public or private, whose development
programs in ICT are integral parts thereof, to participate and assist in the preparation and
implementation of various programs among which are an integrated National
Government Portal and the National Government Data Center;

(ec) Leverage resources and activities in the various National Government
Agencies (NGAs) for database building activity, information and resource sharing and
agency networking linkages,

(0) Design, implement and ensure the protection of an integrated government
information and communications infrastructure development program that will coordinate
all relevant government entities, taking into consideration the inventory of existing and
projected manpower, plans, programs, proposals, software and hardware, and the
installed systems and programs;

(g) Provide an integrated framework in order to optimize all government ICT
resources and networks and the identification and prioritization of all e-governance
systems and applications as provided for in the Government Information Systems Plan
and/or the Medium-Term Development Plan (MTDP);

(h) Coordinate and support the generation and/or acquisition of all necessary
resources and facilities as may be appropriate in and for the development, marketing,
growth and competitiveness of the Philippine ICT and ICT-enabled services sector,

(i) Develop, implement and improve, in coordination with concerned government
agencies and industry associations, the government's ICT application capabilities and
determine the personnel qualification and other standards essential to the integrated and
effective development and operation of government information and communications
infrastructure,

(j) Encourage and establish guidelines for private sector funding of ICT projects
for government agencies in order to fast-track the said projects which provide reasonable
cost-recovery mechanisms for the private sector including, but not limited to, build-
operate-transfer (BOT) mechanisms,

(k) Assess, review and provide direction to ICT research and development
programs of the government in coordination with the Department of Science and
Technology (DOST) and other institutions concerned;

(1) Establish and prescribe rules and regulations for the establishment, operation
and maintenance of ICT facilities in areas not adequately served by the private sector, in
consultation with the private business sector, local government units (LGUs) and the
academe;

(m) Provide policy direction and guidance on ICT-related aspects for the
operation and maintenance of a nationwide postal system that shall include mail


processing, logistics services, money remittance and payment services and other banking
services, in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas,

(n) Administer and enforce all laws, standards, rules and regulations governing
ICT;

(0) Ensure the protection of ICT-related intellectual property rights in
coordination with the Intellectual Property Office (IPO), the Optical Media Board (OMB)
and other concerned agencies

(p) Protect the rights of consumer and business users to privacy, security and
confidentiality in coordination with concerned agencies;

(q) Harmonize, synchronize and coordinate with appropriate agencies all ICT and
e-commerce policies, plans and programs,

(r) Coordinate with the DTI in the promotion of trade and investment
opportunities in ICT and ICT-enabled services;

(s) Promote strategic partnership and alliances among and between local and
international ICT firms and institutions, research and development, educational and
training institutions, and technology providers, developers and manufacturers to speed up
industry growth and enhance global competitiveness, in coordination with concerned
agencies,

(t) Plan and/or implement such activities as may be appropriate and/or necessary
to enhance the competitiveness of Philippine workers, firms and_ small-to-medium
enterprises in the global ICT market and ICT-enabled services market in coordination
with concerned agencies;

(u) Undertake initiatives to promote ICT and ICT-enabled services in education
and training and the development, promotion and application of ICT in education in a
manner that is consistent with national goals and objectives, and responsive to the human
resource needs of the ICT and ICT-enabled services sector in particular in coordination
with concerned agencies;

(v) Maximize the use of existing government assets and infrastructure by
encouraging private sector investments and partnerships in its operation to achieve total
digital inclusion and access to the global information highway; and

(w) Formulate guidelines and policies defining the manner of cooperation among
Internet service providers (ISPs), telecommunication companies (TELCOs) and law
enforcement agencies during official investigations on violations of existing laws relating
to ICT.

SEC. 7. Composition, ~ The Department shall be headed by a Secretary to be
appointed by the President, subject to confirmation by the Commission on Appointments
The President shall also appoint not more than four (4) Undersecretaries and four (4)
Assistant Secretaries.

Any person appointed as Undersecretary or Assistant Secretary of the Department
must be a citizen and resident of the Philippines, of good moral character, of proven
integrity and with experience or expertise in cither of the following: electronic
governance, cyber services, information technology infrastructure, e-commerce, cyber
security, data privacy or human capital development.


At least one (1) of the Undersecretaries and one (1) of the Assistant Secretaries
shall be a member of the Philippine Bar. The Assistant Secretaries referred to herein shall
be career officers with appropriate cligibilities as prescribed by the Civil Service
Commission

SEC. 8. Secretary of Information and Communications Technology. ~ The
authority and responsibility for the exercise of the mandate of the Department and for the
discharge of its powers and functions shall be vested in the Secretary of ICT, hereinafter
referred to as the Secretary, who shall have supervision and control over the Department.
For such purposes, the Secretary shall

(a) Provide executive direction and supervision over the entire operations of the
Department and its attached agencies;

(b) Establish policies and standards for the effective, efficient and economic:
operation of the Department, in accordance with the programs of the government;

(c) Rationalize delivery systems necessary for the effective attainment of the
objectives of the Department, including the creation of such offices as may be necessary
to ensure the fulfillment of the Department's mandate, subject to the approval of the
Department of Budget and Management (DBM);

(d) Review and approve requests for financial and manpower resources of all
operating offices of the Department,

(e) Designate and/or appoint all officers and employees of the Department, except
the Undersecretaries, Assistant Secretaries and Regional and Assistant Regional
Directors, in accordance with civil service laws, rules and regulations;

(# Establish coordinative mechanisms to ensure the successful implementation of
national ICT policies, initiatives and guidelines in coordination with concerned
government units, LGUs, public and private interest groups, including nongovernment
organizations (NGOs) and people's organizations (POs);

(g) Advise the President on the promulgation of executive and administra
orders and regulatory and legislative proposals on matters pertaining to ICT development
and promotion;

(h) Serve as member of the Government Procurement Policy Board as established
by Republic Act No. 9184, otherwise known as the “Government Procurement Reform
Act”;

(i) Serve as the Chairperson of the Board of the Philippine Postal Corporation in
accordance with Republic Act No, 7354, otherwise known as the “Postal Service Act of
1992”, and the Corporation Law;

(j) Formulate such rules and regulations and exercise such other powers as may be
necessary to implement the objectives and purposes of this Act; and

(k) Perform such other tasks as may be provided by law or assigned by the
President from time to time

SEC. 9. Regional Offices. ~ The Department shall be authorized to establish,
operate and maintain a regional office in each of the administrative regions of the country
as the need arises. The regional office shall be headed by a Regional Director, who may
be assisted by one (1) Assistant Regional Director. The regional offices shall have, within
their respective administrative regions, the following functions:


(a) Implement laws, policies, plans, programs, projects, rules and regulations of
the Department;

(b) Provide efficient and effective service to the people;
(c) Coordinate with regional offices of other departments, offices and agencies;
(d) Coordinate with LGUs; and

(e) Perform such other functions as may be provided by law or assigned by the

Secretary

SEC. 10. Periodic Performance. ~ The Secretary is hereby required to formulate
and enforce a system of measuring and evaluating periodically and objectively the
performance of the Department and to submit the same annually to the President and to
appropriate congressional committees

SEC. 11. Council of Chief Information Officers. — Every department and agency
of the national government or its equivalent office in any constitutional body, state
college or university and government-owned and -controlled corporation is hereby
directed to appoint or designate at least a third (3") ranking official as a Chief
Information Officer.

The Council of Chief Information Officers shall be composed of eleven (11)
members with fixed terms of office, to be appointed by the Secretary from sectoral
representatives of government departments, constitutional bodies, the academe, LGUs
and private sector ICT-oriented NGOs. The Secretary shall be the Chairperson of the
Council

The Council shall serve as a coordinating body to assist the Secretary in the
establishment of policies, standards, rules and guidelines for the provision and other ICT
e-governance initiatives. It shall also assist the Secretary in the monitoring and evaluation
of the Government Information System Plan.

The Secretary shall convene the Council en banc or by sector at least once every
semester within a calendar year.

SEC. 12. E-Government Fund. — There shall be an e-government fund to be
appropriated annually under the General Appropriations Act (GAA) to be administered
by the Department, specifically to fund cross-agency government ICT projects which
shall be used to support and co-finance projects that enable the government to expand its
ability to conduct activities electronically and provide frontline services through the
development and implementation of innovative uses of the internet or other emerging
technologies: Provided, That the fund shall not be used to cover personal services
expenditures: Provided, further, That the rules and regulations on the utilization of the
fund shall be jointly formulated by the Department and the DBM

The Department may accept donations, contributions and grants from various
sources, domestic or foreign: Provided, That in case of donations from foreign
governments, acceptance thereof shall be subject to the prior clearance or approval of the
President of the Philippines upon recommendation of the Secretary of Foreign Affairs.
Receipts from donations shall be accounted for in the books of the Department in
accordance with pertinent accounting and auditing rules and regulations.

In order to ensure full transparency, accountability and integrity on the use of e-
government funds, a set of guidelines for the disbursement and management of the fund,
including the monitoring and evaluation system of projects funded under the e-


government fund, shall be formulated, developed and published by the Department, in
coordination with the DBM. In the preparation of said guidelines, consultations shall als:
be made with the respective umbrella organizations of the ICT sector.

The implementing agencies which were granted funding under the e-government
fund shall maintain primary responsibility over the use and management of the allocated
funds. The agencies concerned shall regularly submit performance and monitoring
reports on the use of said funds to the Department

In connection with the implementation of the e-government fund, the Department
shall provide or arrange the appropriate or relevant ICT education or training program in
order to enable the trainees to comprehend the ICT development cycle appropriate to a
given project, as well as to ensure that government project managers shall acquire
expertise for the timely delivery of systems according to a prescribed content and budget

However, internal IT systems meant to support the agencies’ IT operations shall
be charged against the agencies’ own budgetary allocation

SEC. 13. Transfer of Agencies and Personnel. ~ (a) The following agencies are
hereby abolished, and their powers and functions, applicable funds and appropriations,
records, equipment, property and personnel transferred to the Department:

(1) All operating units currently existing in the Commission on Information and
Communications Technology (CICT);

(2) National Computer Center (NCC); and
(3) Telecommunications Office (TELOF),

All offices, services, divisions, units and personnel not otherwise covered by this
Act for transfer or absorption into the new Department shall continue to perform their
transportation-related functions and, therefore, shall be retained under the Department of
Transportation and Communications (DOTC), which is hereby renamed as the
Department of Transportation

(b) The following agencies are hereby attached to the Department for policy and
program coordination, and shall continue to operate and function in accordance with the
charters, laws or orders creating them, insofar as they are not inconsistent with this Act

(1) National Telecommunications Commission (NTC); and
(2) Philippine Postal Corporation

‘The Department shall not exercise any power which will have the effect of
modifying the exercise by the NTC of its quasi-judicial function,

(c) The laws and rules on government reorganization as provided for in Republic
Act No, 6656, otherwise known as the Reorganization Law, shall govern the
reorganization process of the Department.

SEC. 14. Postal Regulatory Authority. ~The exclusive power and authority to
regulate the postal delivery services industry, as provided for under Presidential Decree
No. 240 and Republic Act No. 7354, is hereby transferred to the Department.

SEC. 15. Sectoral and Industry Task Forces. - The Department may create
sectoral and industry task forces, technical working groups, advisory bodies or
committees for the furtherance of its objectives. Additional private sector representatives,


such as from the academe and the federation of private industries directly involved in
ICT, as well as other NGAs, LGUs and government-owned and -controlled corporations
(GOCCS), may be appointed to these working groups. Government IT professionals may
also be tapped to partake in the work of the Department through these working groups

SEC. 16, Structure and Staffing Pattern. ~The Department shall determine its
organizational structure and create new divisions or units as it may deem necessary,
subject to the approval of the DBM, and shall appoint officers and employees of the
Department in accordance with the Civil Service Law, rules and regulations

SEC. 17. Magna Carta, ~ Employees of the Department shall be covered by
Republic Act No. 8439, which provides a magna carta for scientists, engineers,
researchers and other science and technology personnel in the government

SEC. 18, Separation from Service. ~ Employees separated from the service as a
result of the reorganization shall, within ninety (90) days therefrom, receive the
retirement benefits to which they may be entitled under existing laws, rules, and
regulations

Incumbents whose positions are not included in the new position structure and
staffing pattern of the Department or who are not reappointed shall be deemed separated
from the service, whether permanent, temporary, contractual or casual employees, and
shall, within ninety (90) days therefrom, receive the retirement benefits to which they
may be entitled to under existing, laws, rules and regulations

SEC. 19. Appropriations. — The amount needed for the initial implementation of
this Act shall be taken from the current year's appropriations of the CICT and all
government agencies herein absorbed or attached to the Department. Thereafter, the
amount needed for the operation and maintenance of the Department and its line agencies
shall be included in the annual General Appropriations Act: Provided, That the amount to
be appropriated for the new Department shall be based on the organizational structure
and staffing pattern approved by the DBM.

The budget of the Philippine Postal Corporation shall be charged from its
internally generated funds

SEC. 20. Transitory Provisions, — Within sixty (60) to ninety (90) days after the
approval of this Act, the organizational structure, including the creation of new offices,
divisions or units as may be deemed necessary for the Department to carry out its powers
and functions under this Act, shall be determined by the Secretary through a committee
that shall be established for the purpose.

The new organizational structure and staffing pattern of the Department shall be
evaluated and approved by the DBM

The authorized positions created under the organizational or reorganization plan
shall be filled with regular appointments, as the exigencies of the service will require and
depending upon the position involved, by the President or the Secretary of the
Department, as the case may be, in accordance with the civil service rules and
regulations.

SEC. 21. Implementing Rules and Regulations. — The Department shall
promulgate and issue such rules and regulations and other issuances as may be necessary
to ensure the effective implementation of this Act within one hundred twenty (120) days
from the approval thereof.



SEC. 22, Repealing Clause. — All laws, decrees, orders, rules and regulations
and other issuances or parts thereof which are inconsistent with this Act are hereby
repealed, amended or modified accordingly.

SEC, 23, Separability Clause. — \f any provision of this Act shall be declared
unconstitutional or invalid, the other provisions not otherwise affected shall remain in full
force and effect.

C. 24. Effectivity. — This Act shall take effect after fifteen (15) days from its
publication in at least two (2) newspapers of general circulation

Approved,