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rH CONGRESS OF THE 
1 
ar Session 
1 
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t+-l C L  1 
OF THE PHILIPPINES 
S.B. NO. 
Introduced by Sen. Jinggoy Ejercito Estrada 
EXPLANATORY NOTE 
2overnment works in a system of bureaucracy. 
In a bureaucracy, the 
anch of the government is divided into sections known as the Department. 
ment has its own specific role, task and a sector of our country to attend to. 
tars, there has been a demand for the efficiency and productivity of our 
sectors due to economic crisis. 
itive Order No. 546 created the Ministry of 
Transportation and 
tion which was later on renamed to Department of Transportation and 
tion. The DOTC is tasked with policy, planning, programming, coordinating, 
g, regulating and administrative entity of the executive branch of 
in the promotion, development, and regulation of a dependable and 
network of transport and communication systems in the country. 
rtter serve the people, devolution of powers within the ranks of the DOTC is 
his bill proposes the separation of the DOTC i+$ two more specific 
l to be known as the Department of Transportation (D?) and the Department 
cation (DOC). Through the proposed separation of the DOTC, each of the 
3n and Communication sectors would be served more efficiently and 
It of the foregoing, approval of the proposed separation of the Department 
ation and Communication into the Department of Transportation and the 
of Communication is earnestly sought. 
Senator 


THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE 
First Regular Sessio 
! I -. 
" -p 
XI- 
SENAT 
S.B. NO. 
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Introduced by Sen. Jinggoy Ejercito Estrada 
AN ACT 
SEPARATING THE DEPARTMENT OF TRANSPORTATION AND COMMUNICATION 
INTO THE DEPARTMENT OF TRANSPORTATION AN5 THE DEPARTMENT OF 
COMMUNICATION REDEFINING ITS POWERS, FUNCTIONS, APPROPRIATIONG 
FUNDS THEREFOR, AND FOR OTHER PURPOSES, THEREBY AMENDING 
EXECUTIVE ORDER NO. 546 
Be it enacted by the 
Congress assembled. 
Senate and fhe House of Representatives of the Philippines in 
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CHAPTER I 
GENERAL PROVISIONS 
SECTION 1. Declaration of Policy. It is hereby declared the policy of the state 
to guarantee the efficient and effective provision of the sectors of transportation and 
communication to the people. It is likewise the policy of the state to recognize the 
importance and role of the transportation and communications sectors in the 
development of our country. But in order to ensure a more efficient provision of its 
services, the devolution of the Department of Transportation and Communication into 
two (2) separate departments, hereinafter referred to as the Department of 
Transportation and the Department of Communication, is deemed necessary. 
SECTION 2. Creation of the DEPARTARENT OF TRANSPORTATION (073 and 
the DEPARTNINENT OF COMMUNICAT/OM (DOC). 
In order to efficiently and 
effectively address the problems of having a solitary agency manage the Transportation 
and the Communications sectors, this bill proposes the creation of two (2) distinct 


departments to be known as: I) the Department of Transportation (DT) and 2) the 
Department of Communication (DOC), 
having separate functions, powers, and 
mandates. 
CHAPTER II 
THE DEPARTMENT OF TRANSPORTATION 
SECTION 3. Mandate. The Department of Transportation shall be the principal 
policy, 
planning, 
programming, 
coordinating, 
implementing, 
regulating 
and 
administrative entity of the executive branch of the government in the promotion, 
development, and regulation of a dependable and coordinated network of transport 
systems in undertaking of the following objectives: 
Advance the development of a dependable and coordinated network of 
Transportation systems; 
Guide government and private investments in the development of the 
country’s inter-modal transport systems in a most sound, effective, and 
systematic 
behavior 
for 
maximum 
safety, 
service, 
and 
cost 
productiveness; 
Impose appropriate measures so that technical, economic and other 
conditions for the continuing economic feasibility of the transport sector 
are not endangered and do not encourage distortions in the transport 
systems. 
Formulate, and implement an integrated approach towards the 
development of the country’s transportation sector, developing and 
implementing a comprehensive medium and long-term action plans for its 
development; 
Formulate, enforce and strengthen quality standards for air, land and sea 
Faring vehicles to ensure the best quality of service to the riding public; 
Exercise quasi-judicial and quasi-legislative functions through its bureaus 
and attached agencies necessary to pursue its mandate 
Exercise other powers and functions and perform such acts as may be 
deemed necessary, useful, incidental or auxiliary to accomplish its 
mandate and objectives. 
SECTION 4. Authority and Responsibility. Authority and responsibility of the 
Department shall be vested in the Secretary of the Department of Transportation. The 
Secretary shall be assisted by two (2) Assistant Secretaries (one for every bureau of 


the department), unless otherwise determined by the President of the Republic of the 
Philippines. 
SECTION 5. 
owers and Functions. To accomplish its mandate, the 
Department of Environment shall have the following Powers and Functions: 
Coordinate and oversee all activities of the Department relative to the 
Transportation sector; 
Formulate and recommend national policies and guidelines for the 
preparation and implementation of an integrated and comprehensive 
transportation system at the national, regional and municipal level. 
Manage and establish comprehensive programs for the transportation 
sector, and for the said purpose, may call on any agency, corporation, or 
any entity, whose development programs include transportation as an 
integral part to participate in, and assist in the implementation of such 
programs; 
Regulate, as may be deemed necessary, activities relative to the 
transportation sector, and prescribe or collect fees in the exercise of such 
power; 
issues, reviews and provides direction to transportation research and 
development programs of the government in coordination with the 
respective entities concerned; 
Performs such other functions as may be deemed necessary to carry into 
effect the provisions of this Act; 
Exercise other powers and functions, and perform such acts as may be 
deemed necessary, useful, incidental or auxiliary to accomplish its 
mandate and objectives. 
SECTION 6. Organization of the Department 
The Department of 
Transportation shall be composed of the Department proper made up of the immediate 
Office of the Secretary, Administrative and Legal Affairs Service, Financial and 
Comptrollership, Planning Services and the following 
1 ) Air 
Transportation Office; 2) Civil Aeronautics Board; 3) EDSA MRT 3 Project; 
4) 
Maritime Industry Authority; 5) METRO, Inc.; 6) Office of Transportation Cooperatives; 
7) Land Transportation Office; 8) Land Transportation Franchising and Regulatory 
Board; and, 9) PMO Fishing Ports. 
attached agencies: 


SECTION 7. The Bureaus specified in Section 6 of this Act would still have the 
same functions and powers but will report directly to the Department of Transportation 
CHAPTER 111 
THE DEPARTMENT OF COMMUNICATION 
SECTION 8. Mandafe. The Department of Communication shall be the primary 
policy, 
planning, 
programming, 
coordinating, 
implementing, 
regulating 
and 
administrative entity of the executive branch of the government in the promotion, 
development, and regulation of a dependable and coordinated network of 
communication systems in pursuance of the following objectives; 
Guide the government and private institutions in the development of the 
country’s inter-modal system of communication systems in a most 
practical, effective, and orderly fashion fro maximum satisfaction, service, 
and cost effectiveness; 
Provide, extend and operate by itself or though or together with other 
entities, private or government, local or national, telephones (landline- 
based 
and 
cellular 
phones), 
telegraph, 
telex, 
and 
other 
telecommunications services throughout the country whenever economic, 
social and political development activities warrant the provisions thereof; 
Provided, however, that the national economic viability of the entire 
network or components thereof is maintained at reasonable rates; 
Develop an integrated nationwide transmission system by itself or through 
or together with other entities in accordance with national and international 
telecommunications service standards to meet all communication service 
requirements including; among others, radio and television broadcast 
relaying, leased channel services and data transmission; 
Establish, operate and maintain by itself or through or together with other 
entities an international switching system for incoming and outgoing 
international telecommunications services; 
Encourage the development of a domestic telecommunications industry in 
coordination with the concerned entities, particularly the manufacture of 
communicationsleledtronics equipment and components to complement 
and support, as much as possible, the expansion, development, 
operations and maintenance of nationwide telecommunications network; 
Provide for an efficient, fast and reliable Philippine Postal System for the 
country ; 


Formulate and implement an 
integrated approach towards the 
development of the country’s communications sector, developing and 
implementing comprehensive medium and long-term action plans for its 
development; 
Ensure the efficient functioning of our telecommunications systems, 
admonish corporations and other entities, if deemed necessary, in the 
event that the said entities provide sub-par service to their paying 
customers; 
Exercise other powers and functions, and perform such acts as may be 
deemed necessary, useful, incidental or auxitiary to accomplish its 
mandate and objectives. 
TlON 9. Authority and Responsibility. nuthority and responsibility of the 
Department shall be vested in the Secretary of the Department of Communication. The 
Secretary shall be assisted by three(3) Assistant Secretaries (one for every bureau of 
the department), unless otherwise determined by the President of the Republic of the 
Philippines. 
SECTION 10. Powers and Funcfions. To accomplish its mandate, the 
Department of environment shall have the following Powers and Functions: 
Coordinate and supervise all activities of the Department relative to the 
Communications sector; 
Formulate and recommend national policies and guidelines for the 
preparation and implementation of an integrated and comprehensive 
communications system at the national, regional and municipal level. 
Manage, as may be deemed necessary, activities relative to the 
communications sector, and prescribe or collect fees in the exercise of 
such power; 
Issues, reviews and provide direction to communication research and 
development programs of the government in coordination with the 
respective entities concerned; 
Administer and establish a comprehensive and integrate programs for the 
communications sector, and for the said purpose, may call upon on any 
agency, corporation, or any other entity, whether private or public, whose 
development programs include Communications as an indispensable part 
to participate in, and assist in the implementation of such programs; 


(f) 
Accomplish such other functions to carry into effect the provisions of this 
Act. 
SECTION 11. Organization of the ~ e p a ~ ~ e n t ,  
The Department of 
Communication shall be composed of the Department proper made up of the immediate 
Office of the Secretary, Administrative and Legal Affairs Service, Financial and 
Comptrollership, Planning Services and the following attached agencies: 1 ) Municipal 
Telephone Project Office; 2) National Telecommunications Commission; and, 3) 
Telecommunications Office. 
SECTION 12. The three (3) attached agencies named in Section 11 of this Act 
and the National Telecommunication would still have the same functions and powers 
but will report directly to the newly created Department of Communication. 
CHAPTER IV 
AP P ROPRl AT10 N S 
SECTION 13. Appropriations. Such amount as maybe deemed necessary to 
effectively and efficiently carry out the provisions of this Act is hereby appropriated from 
the funds of the National Treasury not otherwise appropriated to each of the two (2) 
departments. Thereafter, such amount as may be deemed necessary for the continued 
operation and maintenance of the two (2) Departments shall be included in the General 
appropriations Act. Funds would be appropriated to ensure the effective discharge of 
the two (2) Department’s powers and functions. 
CHAPTER V 
MISCELLANEOUS PROVISIONS 
SECTION 14. Transitory Provisions. In accomplishing the 
acts of 
reorganization herein prescribed, the following transitory provisions shall be complied 
with, unless otherwise provided elsewhere in this Act: 
a) The transfer of a government unit shall include the functions, appropriations, 
funds, records, equipment, facilities, chosen in action, rights, other assets, 
and liabilities, in any, who of the separated unit as well as the personnel 


thereof, as may be necessary, who shall in a hold-over capacity, continue to 
perform their respective duties and responsibilities and receive corresponding 
salaries and benefits. 
These personnel from the separated unit whose 
positions are not included in the Department’s new position structure and 
staffing pattern approved and prescribed by the Secretary or who are not re- 
appointed shall be deemed separated from the service and shall be entitled to 
the benefits. 
The transfer of functions which results in the separation of the government 
unit that exercised them shall include the appropriates, funds, records, 
equipment, facilities, rights, other assets and personnel as may be the proper 
discharge of the transferred functions. 
The separated units remaining 
appropriations and funds, including its liabilities, if any, shall be allocated to 
such appropriate units as the Secretary shall determine or unless otherwise 
be disposed in accordance with the Government Auditing Code and other 
pertinent Laws, rules and regulations. 
SECTION 15. New Structure and Pattern. Upon approval of this proposed bill, 
the officers and employees of the Department shall, in a holder capacity, continue to 
perform their respective duties and responsibilities and receive the corresponding 
salaries and benefits unless in the meantime they are separated from the government 
serv i ce . 
SECTION 16. Periodic PePformance Evaluation. The Department of 
Transportation (DT) and the Department of Communication (DOC) are hereby required 
to formulate and enforce a system of measuring and evaluating periodically and 
objectively the performance of their respective Departments and submit the same bi- 
annually to the President of the Republic of the Philippines. 
SECTION 17. Place to transact business. The existing offices of the 
Department of Transportation and Communication would, for the time being, still be in 
use but will be divided into the Department of Transportation and Department of 
Communication until such time when a separate office shall have been made and/or 
upon the discretion of the officials concerned. 


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SECTION 18. ~
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of 
kes. Each Secretary of the Department of 
Transportation and the Department of Communication shall promulgate the necessary 
implementing details to carry out the organization’s respective mandate and other 
transitory matters that needs to be taken of the assure the orderly implementation of this 
Act, 
SECTION 19. Regulatory Fees. The Department of Transportation and the 
Department of Communication may impose fees in ways duly approved and provided 
for by the law for accomplishing its functions and mandate. 
SECTION 20. Separafely Clause. If, for any reason, any portion or part of this 
Act is declared unconstitutional or invalid, the rest of the provisions not affected thereby 
shall remain in full force and effect. 
SECTION 21. Repealing Clause. All laws, presidential decrees, executive 
order~s, letters of instruction, rules and regulations or parts thereof inconsistent with the 
provisions of this Act are hereby repealed or modified accordingly. Other sections of 
the Executive Order No. 546 not affected shall remain in full force and effect. 
SECTION 23. Effecfivify. This Act shall take effect fifteen (15)days after its 
complete publication in at least two (2) newspapers of general circulation. 
Approved,