Republic of the Philippines
House of Representatives
Quezon City

FIFTEENTH CONGRESS
First Regular Session

COMMITTEE REPORT NO.

Submited by the Committee on Government Reorganization and Information and

Communications Technology and Appropriations on > HPL DB :
Re: House BillNo.__ 466

Recommending its approval in substitution of House Bil} Nos. 16, 64, 498, 1230, 1508 and
1896;

a and Abaya

Sponsors: Reps. Jalosjos, Ti

Mr. Speaker:

The Comvnittees on Government Reorganization, Information and Communications

Technology and Appropriations, to which were referred House Bill No. 16, introduced by
Representative Roilo Golez entitled :

“AN ACT
CREATING THE DEPARTMENT OF INFORMATION AND COMMUNICATIONS
TECHNOLOGY, DEFINING ITS POWERS AND FUNCTIONS, APPROPRIATING
FUNDS THEREFOR, AND FOR OTHER PURPOSES”

House Bill No. 64 introduced by Representative Luis R. Villafuerte entitled:

“AN ACT
CREATING THE DEPARTMENT OF INFORMATION AND COMMUNICATIONS
TECHNOLOGY, DEFINING ITS POWERS AND FUNCTIONS, APPROPRIATING
FUNDS THEREFOR, AND FOR OTHER PURPOSES”
House Bill No. 498 introduced by Representative Juan Edgardo M. Angera entitled:

“AN ACT
CREATING THE DEPARTMENT OF INFORMATION AND COMMUNICATIONS
TECHNOLOGY, DEFINING ITS POWERS AND FUNCTIONS, APPROPRIATING
FUNDS THEREFOR, AND FOR OTHER PURPOSES”
House Bill No. 1230 introduced by Representative Winston T. Castelo entitled:

=AN ACT

Ne


CREATING THE DEPARTMENT OF INFORMATION TECHNOLOGY AND.
COMMUNICATIONS, DEFINING ITS POWERS AND FUNCTIONS, APPROPRIATING
FUNDS THEREFOR, AND FOR OTHER PURPOSES”

House Bill No. 1508 introduced by Representative Marcelino R. Teodoro entitled:

“AN ACT
CREATING THE DEPARTMENT OF INFORMATION AND COMMUNICATIONS,
TECHNOLOGY, DEFINING ITS POWERS AND FUNCTIONS, APPROPRIATING
FUNDS THEREFOR, AND FOR OTHER PURPOSES”

and House Bill No. 1896 introduced by Representative Ben P. Evardone entitled:

“AN ACT
CREATING THE DEPARTMENT OF INFORMATION AND COMMUNICATIONS
TECHNOLOGY, DEFINING ITS POWERS AND FUNCTIONS, APPROPRIATING
FUNDS THEREFOR, AND FOR OTHER PURPOSES”
4667

have considered the same and recommend the approval of House Bill No. ip
substitution thereof with Representatives Roilo Golez, Sigfrido R. Tifiga, Luis R. Villafuerte.
Juan Edgardo M. Angara, Marcelino R. Teodoro, Winston T. Castelo, Ben P. Evardone.
Cesar G. Jalojos, Joseph Emilio A. Abaya, Roman T. Romulo, Angelo B. Palmones, Mel
Senen S. Sarmiento, David L. Kho, Jerry P. Treiias, Tomas V. Apacible, Bernadette Herrera-
Dy, Rufus B. Rodriguez, Rene L. Relampagos, Ramon H. Durano IV, Sharon Garin, Arthur
R. Defensor, Jr., Ma. Milagros H. Magsaysay, Carlos M. Padilla, Dante Antonio L. Tinio.
Teodorico T. Haresco, Jr, and Daryl Grace J. Abayon as authors thereof.

Respectfully submitted:

THE HONORABLE SPEAKER
HOUSE OF REPRESENTATIVES. 3
Quezon City


oa ane No

So

Republic of the Philippines
HOUSE OF REPRESENTATIVES:
7 ~ Quezon City

FIFTEENTH CONGRESS:
First Regular session

. 367
‘House Bill No. 46
(in Substitution of House Bill Nos. 16, 64, 498, 1230, 1508 and 1896)

Introduced by Representatives Roilo Golez, Sigfrido R. Tinga, Luis R. Villafuerte, Juan
Edgardo M. Angara, Marcelino R. Teodoro, Winston T. Castelo, Ben P. Evardone, Cesar G.
Jalosios, Joseph Emilio A. Abaya, Roman T. Romulo, Angelo B. Palmones, Mel Senen S
Sarmiento, David L. Kho, Jerry P. Trefias, Tomas V. Apacible, Bernadette Herrera-Dy, Rufus
B. Rodriguez, Rene L, Relampagos, Ramon H. Durano IV, Sharon Garin, Arthur R.
Defensor, Jr, Ma. Milagros H. Magsaysay, Carlos M. Padilla, Dante Antonio L. Tinio,
Teodorico T. Haresco, Jr. and Daryl Grace J. Abayon

AN ACT
CREATING THE DEPARTMENT OF INFORMATION AND COMMUNICATIONS
TECHNOLOGY, DEFINING ITS POWERS AND FUNCTIONS, APPROPRIATING
FUNDS THEREFOR, AND FOR OTHER PURPOSES

Be it enacted by the Senate and the 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 2011.”

SEC. 2. Creation of the Department - There is hereby created the Department of
Information and Communications Technolo;

SEC. 3. Declaration of Policy.

hereinafter referred to as the Department.

Itis 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-centrie 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
yelevamt 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

4


Coen au wna

= 6

12

to have balanced investments between high-growth and economically depressed areas; ensure
consumer protection and welfare as well as preserve the rights of individuals and entities to
privacy and confidentiality of information; and promote accountability through transparent
govemance, and effective delivery of government frontline services.

SEC. 4, Definition of Terms. - As ‘used in this Act, the following terms are defined

as follows:

(@ Broadcast refers to the sending of information to two or more receiving devices
simuhaneously — 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 constintional
offices.

__. (©). 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

2 {


we An ew

16
11
13
14
15

7
18

20
21
22
23
24
25
26
27
28
29
30
31

32

34

infrastructure, the components of which include the telephone system, the
Intemet, fax machines and computers;

(f) 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;

(2) ICT Sector or ICT Industry refers to all telecommunications carriers
Joperators, ICT equipment and solutions manufacturers and providers, internet
service providers, ICT training institutions, software developers and ICT-enabled
service providers;

(h) 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. S. 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-efficient communications facil , 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 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 information
communications technology to the various processes and functions of Government.

In fulfilling its mandate, the Department shall be guided by the following struegic
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;

3


aa w RON

SeBRDADEB HTS Ow

20

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;

1) 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;

3) Ensure the growth of the 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;

1) 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 infrastructures and assets of individuals and
businesses; and

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

SEC. 6. Powers and Functions. — To carry out its mandale, the Department shall

exercise the following powers and functions:

4


Caer anuwe wna

(a) Formulate, recommend, and/or implement national policies and guidelines in the

_ SCT sector that wil) promote wider use and development of ICT, and its

applications, such as e-commerce, in coordination with Department of Trade and
Industry (DTD, among others,;

(b) Initiate, harmonize and/or coordinate all ICT plans and initiatives of government
agencies to ensure overall consistency and harmony with the objective of 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;

(a) 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;

(e) Leverage resources and activities in the various National Government agencies for
data base building activity, information and resource sharing and agency
networking linkages;

(f) 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 ail e-
governance systems and applications as provided for in the Government
Information Systems Plan and/or the Medium Term Philippine Development Plan
(MTPDP),

{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;

5 f


(i) Develop, implement and improve, in coordination with concemed 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 goverument information
and communications infrastructure;

(j) Encourage and establish guidelines for private sector funding of ICT projects for
government agencies in order to fast-track 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 and other institutions concerned;

(J) 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 and the
academe;

(m)Provide poticy-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

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

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

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

(@) Harmonize, synchronize and coordinate with appropriate agencies alt [CT and e-
commerce policies, plans and programs;

(2) Coordinate with the Department of Trade and Industry in the promotion of trade
and investment opportunities in ICT and ICT-enabled services;

(s) Promote strategie partnership and alliances among and between local and
international (CT firms and institutions, research and development, educational
and training institutions, and technology providers, developers and manufacturers,

° 4


eo WAH eR WN

Seaanaranres

to speed up industry growth and enhance global competitiveness in coordination
with concemed agencies;

(©) 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 1CT-enabied 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 resources 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;

(w)Formulate guidelines and policies defining the manner of cooperation between
Internet Service Providers (ISP), telecommunication companies (Telcos) and law
enforcement agencies during official investigations on violations of existing !aws
relating to information communications technology.

SEC. 7. Composition. - The Department shall be beaded by a Secretary to be

20 appointed by the President, subject to the confirmation by the Commission on Appointments.
21 The President shall also appoint not more than four (4) Undersecretaries and four (4)
22 Assistant Secretaries.

Any person appointed as Undersecretary or Assistant Secretary of the Department

24 — must be a citizen and resident of the Philippines, of good moral character, of proven integrity,
25 and with experience or expertise in either of the following: electronic govemance. cyber
26 services, information technology infrastructure, e-commerce, cyber security, data privacy, or
27 ‘fuman capital development.

28

At least one (1) of the Undersecretaries and one (1) of the Assistant Secretaries shall

29 be amember of the Philippine Bar. The Assistant Secretaries referred to herein shall be career
30 officers with appropriate eligibilities as prescribed by the Civil Service Commission.

31

SEC. 8. Secretary of Information and Communications Technology. - The authority

32 and responsibility for the exercise of the mandate of the Department and for the discharge of

ws

its powers and functions shall be vested in the Secretary of Information and Communications

7 jo


1
2
3
4
5
6
7
8

9
10
u
12
13
14
15
16
7
18
19
20
21
22
23
24
25
26
27
28
29
30
yu

Technology, hereinafter referred to as the Secretary, who shall have supervision and control
over the Department. For such purposes, the Secretary shall:

a)

by

°)

d

e)

8)

h)

ky

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

Establish policies and standards for the effective, efficient, and economical operation
of the Department, in accordance with the programs of Goverament;

Rationalize delivery systems necessary for the effective attainment of the objectives
of the Department, including the creation of such offices as may be necessary 10
ensure the fulfillment of the Department’s mandate, subject to the approval of the
Department of Budget and Management (DBM);

Review and approve requests for financial and manpower resources of all operating
offices of the Department;

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 the
National ICT policies, initiatives and guidelines in coordination with concerned
government units, local government units (LGUs), public and private interest groups,
including non-government organizations (NGOs) and people’s organizations (POs);
Advise the President on the promulgation of executive and adminiswative orders and
regulatory and legislative proposals on matters pertaining to CT development and
promotion;

Serve as.a member of the Government Procurement Policy Board-as established by
Republic Act No. 9184 otherwise known as Government Procurement Reform Act;
Serve as the Chairperson of the Board of the Philippine Postal Corporation in
accordance with Republic Act No. 7354 otherwise known as Postal Service Act of
1992, and the Corporation Law;

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

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

8

it


1
2
3
4
5
6
7
8

9
10
il
12
13
14
15
16
wv
18
19
20
21
2
23
24
25
26
27
28
29
30
31
32
33

by one (1) Assistant Regional Director. The Regional Offices shall have, within their
respective administrative regions, the following functions:

a) Implement Jaws, policies, plans, programs, projects, rules and regulations of the

Department;

b) Provide efficient and effective service to the people;

©) Coordinate with regional offices of other departments, offices, and agencies;

d) Coordinate with LGUs;

¢) 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.

See. 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 Jeast a third 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, academe, the 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-ageney 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 intemet or other emerging technologies: Provided,
That the fund shall not be used to cover personal services expenditures: Provided, further,

B


‘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 the
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.
inciuding 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 also be made with the
respective umbrella organizations of the ICT sector.

‘The implementing agencies which were granted finding 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);
. Telecommunications Office (TELOF);

10 ii)

»


20
21
22
23
24
25
26

All offices, services, divisions, units and personne] 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
on Transportation and Communication (DOTC), which is hereby renamed 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);

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 academe
and federation of private industries directly involved in ICT, as weil 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 shal) appoint officers and employees of the Department in
accordance with the Civil Service Law, niles and regulations.

SEC. 17. Magna Carta. — Employees of the Department shail 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.

" a


23
24

25
26
27
28
29
30
31
32

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 patter of the Department, or who are not re-appointed shall be deemed separated
from the service, whether permanent, temporary, contractual ot casual employees, and shall,
within ninety (90) days therefrom, receive the retirement benefits to which they may be
entitled to under existing laws, miles 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 Commission on Information

and Communications Technology 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 inremally
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.

ir


awe wd

“4

SEC. 22. Repealing Clause - All laws, decrees, executive orders, rules and
regulations and other issuances or paris 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 shal] remain in full
force and effect.

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

Approved

13


House of Representatives
Committee Affairs Department

FACT SHEET
House Bill Nos. 16, 64, 498, 1230, 1508 and 1896

AN ACT GREATING THE DEPARTMENT OF INFORMATION AND
COMMUNICATIONS TECHNOLOGY

Introduced by: REPRESENTATIVES ROILO S. GOLEZ, LUIS R. VILLAFUERTE,
MARCELINO R. TEODORO, JUAN EDGARDO M, ANGARA, WINSTON T. CASTELO and
BEN P. EVARDONE

Committee Referral: COMMITTEE ON GOVERNMENT
REORGANIZATION (Primary)
Committee Chairperson: Rep. Cesar G. Jalosjos
Committee Referral: COMMITTEE ON INFORMATION
AND COMMUNICATIONS TECHNOLOGY (Secondary)
Committee Chairperson: Rep. Sigtrido R. Tinga
Committee Referral: COMMITTEE ON APPROPRIATIONS (Secondary)
Committee Chairperson: Rep. Joseph Emilio A. Abaya

OBJECTIVES:

* To integrate the management of two diverse concems, transportation and
communications, into one department, the Department of Transportation and
Communications (DOTC)

* To develop -a Philippine information and communications” technology
according to world class standards, thereby ensuring a better future for all
Filipinos.

KEY PROVISIONS:

* Creates the Department of Information and Communications Technology
which 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 cost efficient communications facilities and other mutti-
media infrastructure and services.

Provides that the Department shall be headed by a Secretary and four (4)
Undersecretaries, all of whom shail be appointed by the President.

#


«Creates a coordinating body called the Council of Chief Information Officers
that shall be composed of representatives from every government agency.

* Creates a Specia! Account in the General Fund called the E-government fund
that shall be administered by the Department and it maybe augmented by
donations, contributions and grants from local or international funding
agencies.

* Provides for the abolition of the Commission on Information and
Communications Technology (CICT) National Computer Center (NCC) and
Telecommunications Office (TELOF) and the transfer of their powers and
functions, applicable funds and appropriations, records, equipment, property,
and personnel to the Department.

* Attaches the National Telecommunications Commission (NTC) and Philippine
Postal Corporation to the Department.

RELATED LAWS:

» Republic Act No. 6656 - An Act to Protect the Security of Tenure of Civil
Service Officers and Employees in the Implementation of Government
Reorganization.

» Republic Act No. 8792 - Electronic Commerce Act

* Executive Order No. 366- Directing a Strategic Review of the Operations and
Organizations of the Executive Branch and Providing Options and Incentives
for Goverment Employees who may be affected by the Rationalization of the
Functions and Agencies of the Executive Branch.

Executive Order No. 125 A- Amending £.0. No. 125, entitled
“Reorganizing the Ministry of Transportation and Communications, defining its
powers and functions and for other purposes.

» Executive Order No. 269- Creating the Commission on Information and
Communications Technology.

Administrative Order No. 332- Directing all government agencies and
instrumentalities including local government units to undertake the electronic
interconnection through the intemet to be known as the RPweb.

H


apt fe Flips
‘Anuse of Representatives
& @nesnm lity, Metro Monrila

HON. JOSEPH EMILIO A. ABAYA
Congressman, Ist District, Cavite
Chairman, Committee on Appropriations

March 8, 2011

HON. CESAR G. JALOSJOS
Chairman ;
Committee on Government Reorganization

Dear Chairman Jalosjos:

Please be informed that the Committee on Appropriations, in its meeting held today, at
Conference Rooms 9 & 10, Ramon V. Mitra Building, approved to report out
Substitute Bill to House Bill Nos. 16, 64, 498, 1230, 1508 and 1896, entitled “AN ACT
CREATING THE DEPARTMENT OF INFORMATION AND COMMUNICATIONS
TECHNOLOGY, DEFINING ITS POWERS AND FUNCTIONS, APPROPRIATING
FUNDS THEREFOR, AND FOR OTHER PURPOSES” with the following
amendments:

1.

On Section 12, page 9, line 27, between the word “fund” and the preposition
“to insért the phrase “TO BE APPROPRIATED ANNUALLY UNDER THE
GENERAL APPROPRIATIONS ACT (GAA)" and on line 28, after the word
“Department’-delete the phrase “which is a Special Account in the General
Fund, created”

On the same Section and page, line 32, between the word “technologies” and
the arficie “The”, change the period (,) to colon (’) and add the following:

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 DICT AND THE DBM.

On the same Section and page, lines 32 to 33, delete the last sentence which
seads: “The Fund may be augmented by donations, contributions and grants
from local or international funding agencies.” and insert a new paragraph ip
read as follows:

THE DEPARTMENT MAY ACCEPT DONATIONS, CONTRIBUTIONS AND
GRANTS FROM VARIOUS SOURCES, DOMESTIC OR FOREIGN:
PROVIDED, THAT IN CASE OF DONATIONS FROM FOREIGN



. oO O

GOVERNMENTS, ACCEPTANCE THEREOF SHALL BE SUBJECT TO THE
PRIOR CLEARANCE OR APPROVAL OF THE PRESIDENT OF THE
FOREIGN] UPON RECOMMENDATION OF THE SECRETARY OF

FOREIGN / AFFAIRS. RECEIPTS FROM DONATIONS SHALL BE

ACCOH —DR FOR IN THE BOOKS OF THE DEPARTMENT IN

ACCORDANCE WITH, THE PERTINENT ACCOUNTING AND ‘ALIDITING -
RULES AND REGULATIONS.

2. On Section 17, page 11, line 23 between the comma (,) and conjunction “and”
insert the phrase SUBJECT TO THE APPROVAL OF THE DBM, -

3. On Section 20, page 12, line 10 after the word “Act” change the period (.) to
colon () and insert the phrase 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.

Thank you.

Very truly yours,

ce: Hon. Roilo Golez
Hon, Sigftido R. Tinga
Hon. Luis R. Vilafuerte
Hon. .Juan Edgardo M. Angara
Hon. Marcelino R. Teodoro
Hon. Winston T. Castelo
Hon. Ben P. Evardone



Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

FIFTEENTH CONGRESS
First Regular Session

‘House Bill No. 16

Introduced by Honorable Roilo Golez

EXPLANATORY NOTE

No less than the 1987 Philippine Constitution, Section 24, Article Il thereof, dectares that the State
recognizes the vital role of communications and infomation in nation-buiking. The Oupartinent of
‘Transportation and Communications was thus created under the Administrative Code of 1987 to
implement this state policy charged with the regulating and adludicatory and expand a viable,
citer. safe and dependable Iransporation and communications, systems as effective
instruments for national recovery and economic progress.

To meet the needs of an increasingly complex transportation and communications sector
and to keep up with the rapid pace of technology development particularly in. the fed of
‘communications technology, the present Degartment of Transportation and Communications must
be divided into two specialized agencies: one to focus on the needs of the transportation sector,
both reguiatory and adjudicatory, and the other tc meet the increasingly complex requirements of
the comimunications technology sector.

With the adoption of this legislative measure, the Department of information and
Communications wil be the primary govemment department tasked to formulate national policies
on information and communications technology related projects and programs of the government,
and charged with the coordination, planning, ‘and implementation of regulatory and administrative
functions of the present DOTC.

In view of the foregoing, the immediate passage of this bill is eamestty sought.

Al


O
9S

Republc of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

FIFTEENTH CONGRESS,
First Regular Session

House BitNo,__16

Introduced by Honorable Roilo Golez

7 AN ACT

CREATING THE DEPARTMENT OF INFORMATION AND COMMUNICATIONS TECHNOLOGY,

DEFINING ITS POWERS AND FUNCTIONS, APPROPRIATING FUNDS THEREFOR, AND FOR
OTHER PURPOSES

Be it enacted by the Senate and che House of Representatives of the Philippines in Congress
assenibied:

SECTION 1. Short Title - This Act shall be known as the “Department of Information and
Communications Technology Act”

SEC. 2. Creation of the Department - Thee is hereby created the Department of Information and
Communications Technology; hereinafter referred to as the Department.

SEC. 3. Declaration of Polley. - It is the policy of the state to promote the utilization of information
and Com-nunications Technology (ICT) as < vital tool for nation-building and economic growth that
is govemment-enabled, private sector-led, citizen-centiic and market-based. Towards tnis end,
goversment 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 govemmental institutions in order to achieve a streamlined and efficient
structure that is responsive and attuned te national goals and objectives. |t shall likewise be the
policy of the State to provide an environment that will support invesiments in cost-efficient ICT
infresTucture, systems and resources, to ensure universal access and high-speed connectivity at
fait and reasonable costs; a fevel playing field for strategic alliances with investors in order to have
balanzed investments between high-growth and economically depressed areas; ensure consumer
protection and welfare as well as preserve the rights of individuals and entities to privacy and
conficentiality of information; to promote accountability through transparent governance, and
effectve delivery of goverment frovitiine services.

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

a) “E-Govemance or Electronic Governance” - shall mean the application of information
communications technokgy to the processes of government functioning to bring about efficent,
ethical, accountable, responsive and transparent govemance;

ol?


QO
9

b) “CT Sector or ICT Industry” - shall mear, all telecommunications carriers opera tors, ICT
equipment and solutions manufacturers end providers, intemet service providers, IC” taining
institutions, software developers and ICT-enabled service providers;

©) "ICT-Enabled Service Providers” — shall mean 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 servicas that require the ininsic use of a networked information infras ructure;

d) ‘Information and Communications Technology’ ~ sha mean the tolaity of electronic
means to collect, store, process and present information fo end-users in support of thair activities
and services. It consists of computer systems, office systems and consumer elector ics, as well
as networked information infrastructure, the components of which include the telephcine system,
the Intemet, fax machines and computers;

e) “M-Governance or Mabile Govemance” — shall mean the application of mobile: technology
to the process of goverment functioning te brmg 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 promote, develop and oversee the government's integrated and strategic ICT systems and

ensure refiable and cost-efficient communications facilities and services.

The Department shall likewise be responsible for improving the acquisition, ufilization and

optimization of government's information anc communications technologies in order to improve the

productivity, efficiency, effectiveness, and responsiveness of national and local govemment

programs. The Department shall furthermore be responsible for ensuring the pplication of

information communications technology to the various processes of goverment functioning.

In fulfiling its mandate, the Department shal! be quided by the following strategic objectives:

a) Ensure the provision of a strategic, refiable, cost-efficient, and citizen-centic ICT

infrastucture, systems, aid resources as instruments of nation-building and global
competitiveness;

bd} Foster @ policy environment for_{CT sector that will promote marketled, broader

develepment of the ICT and iCT-enabled services sector, a level playing field, partnerships

between the public and the private sectors, strategic alliance with foreign investors and balanced

investments between high-growth and econamivally-depressed areas;

c} Foster and accelerate converganc2 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 avallability and accessib lity of ICT services in areas not adequately served by

the private sector,

f) Promote and encourage the widespread use, creative development, access to, ICT with

priority consideration on the requirements for growth of the Philippine ICT industry;

gf Promote and assist the development of local and national content application and services

in the area of ICT by sourcing oF 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 heatthy competitive environment ;

HY Promote the technical training and scholarships, and the development and use of expertise
in ICT and ICT-enabled services in the country’s Furman capital to enable Filipinos te compete in a
fast-evolving information and communicatior age;

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

k) Preserve the rights of individuals to privacy and confidentiality of their personal
information,

y Encourage the use of ICT in support of efforts or endeavors for the development and
promosion of the country's 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) Eneure the security of ICT infrastructures and assets of individuals and businesses; and

0) Empower, through the use of IC™, the disadvantaged segments of the population,
including persons with disabitites (PWD) or who are differertly-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 information and communications
technologies, and applications, ‘and increased and convenient access by the citizens to the same;
b) initiate, harmonize and/or coordinate all ICT plans end initiatives of goverment
departmentslagencies to ensure overall consistency and trarmony with the objective of electronic
governance, in particular, and national objectives and goals in general;

c} Represent and negotiate for Philippine interests on matters pertaining to ICT m
intemetiora! bodies;

d) Develop and maintain national IC™ development plans and establish and administer
comprehensive and integrated programs for :CT with due consideration to advances in

“gonvergerce and other emerging techaologes; and for this purpose, may invite any agency,

‘corporation or organization, whether public or private, whose development programs in ICT are an
integral part thereof, to participate and assist in the preparation and implementation of various
programs among which is an integrated National Government Portal;

e) Leverage resources and activities in the various National Government agencies for data
base buiding activity, information and resource sharing and agency networking linkages:

f Design, implement, and ensure the protecion of an integrated govemimen: information and
‘communications infrastructure development program that will coordinate all relevant goverment
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 ir order to optimize all government ICT resources and
Fetworks and the identification and prioritization of all e-government systems and applications as
provided for in the Govemment Information Systems Plan and/or the Medium Term Prilippine
Development Plan (MTPDP),

ff


fn) Coordinate and support-the generation andfor acquisition of all necessary resources and
facilities 2s may be appropriate in and for the development, merketing, growth and compettiveness
‘of the Phiippine ICT and |CT-enabled services;

i) Develop, implement and improve, in coordination with concemed govemment agencies
and industry associations, the goverment’s ICT application capabilities and determine the
personne! qualification and other standards essenfal to the integrated and effactive development
and operation of government information and communications infrastructure;

Encourage and establish guidelines fer private sector funding of ICT projects for
‘goverment agencies in order to fast-track said projects which provide reasonable cost-recovery
mechanisms for the private sector, includng but not limited to Bulld-Operate-Transfer (BOT)
mechanisms;

k) Assess, review and provide directica to CT research and development programs of the
government in coordination with the Department Of Science And Technology and other institutions
concemed;

9 Establish and prescribe cules 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 and the academe;

m) Support, assist, and presctibe rules and regulations on ICT-related aspects for the
operation and maintenance of a nationwice postal system that shall include mail processing,
delivery services, and money order services;

n} ‘Administer and enforce all laws, standards, rules, and regulations governing ICT, and in
coordination with the Intellectual Praperty Office (IPO}, ensure the protection of ICT~elated
intellectual property rights;

9) In coordination with concemed agencies, ensure consumer protection and welfare, and
protect the rights of consumer and business users to privacy, security and confidentiality,

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

q) Coordinate with the Oepartment cf Trade and Indusiry in the promotion of trade and
investment opportunities in ICT and !CT-enabled services;

A in coordination with concemed agencies, promote strategic parinership-and alliances
among and between local and international CT firs and institutions, research and development,
educational and training institutions, and technology providers, developers and manufacturers, to
speed up industry growth and enhance global competitiveness;

s) In coordination with concemed agencies, plan and/or implement such activities as may be
approoriate and/or necessary to enhance the competiiveness of Philippine workers, firms, and
small to medium enterprises in the global (CT market and ICT-enabled services market;

i In coordination with the Department of Education, Commission On Higher Education
{CHED) and Technical Education And Skilis Development Authority (TESDA), undertake initiatives
to promote ICT and {CT-enabled services in education and training and the development,
promotion and application of ICT in education in a manner that is consistent with rational goals and
objectives, and responsive to the human resources needs of the ICT and iCT-enabled services
sector in particular. .

wi


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

‘any person appointed 2s Undersecretary or Assistant Secretary of the Department must
be a citzen and resident of the Philippines. of good moral character, of proven integrity, and with
experi cr expertise in either of the following: electronic govemance, cyber services,
information technology infrastructure, or human capital development.

The Assistant Secretaries referred to herein shall be career officers with appropriate
eligbilties as prescribed by the Civil Service Commission.

SEC. &. Secretary of Information and Communications Technology. - The authority and
Tesporsibiliy for the exercise of the mandate of the Department and forthe discharge of ts powers
‘and functions shall be vested in the Secretary 0° Information and Communications Technology,
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 ils attached agencies,
b) Establish policies and standards for the effective, efficient, and ‘economical operation of the
Deparment, in accordance with the programs of Goverment;
c) Rationalize delivery systems necessary for the effective attainment of the objectives of the
Deparment, including the creation of regional andior field offices;
4) Review and approve requests for francial 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
accorcance with Civil Service laws, rules ant regulations,
f) Coordinate with local goverment units (LGUs), other agencies, and public and private
interest groups, including non-government erganizations (NGOs) and people's organizations {POs)
on Department policies and initiatives;

‘Advise the President of the Repubic of tve Philippines on the promulgation of executive
‘and administrative orders and regulatory and legislative proposals.on matters pertaining to ICT
develepment and promotion;
hy Formulate such rules and regulations and exercise such, other powers as may be
necessary to implement the objectives and purposes of this Act; and
D) Perform such other tasks as may be provided by law or assigned by the President of the
Republic of the Philippines from time to time.
SEC. 9. Council of Chiet Information Officers - Every department and agency of the national
goverment or its equivalent office in any constitutional body, state college or university, and
govemment-owned and -controlled corporation, is hereby directed to designate at least the third
ranking official as a Chiet Information Officer. The said Officers shall collectively form the Councii
‘of Chief Information Officers. The Secretary shall 9e the Chairman of the Council.
The Council shall serve a3 a coordinating body to assist the Secretary in implementing plans for a
unified gevernment-wide portal, set ‘standards for goverment web sites, and establish rules and
guidelines for the provision of information and other ICT e-government initiatives.

w7


“

In periorming its duties, the Council shalt also consult requiarly with Chief Information Officers of
focal government units on \CT~elated activities through their national association and/or through
the leagues of local govemments.

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

‘SEC. 10. E-government Fund - There shail be an ‘e-government fund to be administered by the
Department, which is a Special Account in the General Fund, created specifically to fund cross-
agency goverment ICT projects which shall be used fo support and co-finance projects that
enable the goverment to expand its ability to conduct activities electronically and provide frontiine
services through the development ard implementation of innovative uses of the intemet or other
emerging technologies. The Fund may be augmented by donations, contributions and grants from
local cr international funding agencies.

in order to engure full transparency, accountability and integrity on the use of e-govemment funds,
aset of guidelines for the disbursement and management of the fund, including the monitoring and
evaluation system of projects funded under ive e-govemment fund, shall be formulated, developed,
and published by the Department, in. coordination with the Department of Budget and
Management. tn the preparation of sald quidelines, consultations shall also be made with the
respective umbrella organizations af the infcrmaticn technology and communications sector.

‘The implementing agencies granted funding under the e-government fund shall maintain primary
responsiblity over the use and management of the allocated funds. The agency concemed shal
regularly submit performance and monitoring reports on the use of said funds to the DICT.

In correction with the implementation of the e-govemment fund, the Department shall provide or
arrange the appropriate or relevant ICT education or iraining program for government ICT in order
to enzbie the trainees fo comprehend the ICT development cycle appropriate to a given project, as
‘well as to ensure that goverment project managers shall acquire expertise for the timely delivery
of sysiems according to a prescribed content and dudget.

SEC. 11. Periodic Performance. — The Secretary is hereby required to formulate and enforce a

_system of measuring and evaluating petiodicaty and. objectively. the performance of the
Department and to submit the same annually to the President of the Republic of the Phifippines
and tc appropriate Congressional Committees.

SEC. 12. implementing Rules and Regulations.- The Department shail promulgate and issue
such rules end regulations and other issuances within 90 days from the approval of this Act as may
be necessary to ensure its effective implementation.

SEC. 13. Transfer of agencles-and personnel. -
The following agencies and instituticns are hereby absorbed in the Department:
a) All operating units currenty existing in the Commission on Information and

Communications Technology (CICT), which directly support communications, including the
‘Telecammunications Policy Planning Office.

H


b) The National Computer Center unde: the Department of Science and Technology and

fo All offices, services, divisions, units, and personnel of the DOTC wih functions and
responsibilities dealing with communication;

Ail offices, services, divisions, units and personne! 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
which is hereby named the Department of Transportation.

The toregong tranefer of powers and functors shall include ali applicable furds and
appropriations, records, equipment, property and personne! as may be necessary.

‘The following agencies are hereby attached to the Department for policy and program coordination
and srall continue to operate and function in accordance with their charters, laws or orders,
creating them, and with such other functions and responsibilities mandated by law and insofar as
they are consistent with this Act:

a) National Telecommunications Commission;

b} Philippine Postal Corporation; and

co} Telecommunications Office (TELOF;.

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

SEC. 14. Separation from Service -Emeloyees separated from the service as a result of the
reorganization shall, within ninety (90) days therefrom, receive the retirement benetits to which they
may be entitled under existing laws, rules and requiabons.

‘Those incumbents whose positions are not included in the new position structure and staffing
patter of the Deparment, or who are not re-appointed shall be deemed separated from the senmce,
‘whether permanent, temporary, contractual or casual employees, and shal, withir ninety (G0) days
therefrom, receive the retirement benefits to whicn they may be entitled under existing laws, rules
and reguiations.

SEC. 15. Appropriations - The amount needed for the initial implementation of this Act shai be
taken from the current years appropriations of the Commission on Information and
Communications Technology and all Goverment agencies herein absorbed ox attached to the
Department. Thereafier the amount needed for the operation and maintenance of the Department
and its Line Agencies shail be included in the annual General Appropriations Act.

‘The budget of the Philippine Postal Corperation shall be charged from its intemally generated
funds.

SEC, 16. Transitory Provisions - Withic three (3) months after the approva! of this Act, the
organizatoral structure including the creation of new division or units as may be deemed
necessary for the Department to cary out its powers and functions under this Act, shal be
determined by the Secretary through a Committee that he shall establish for the purpose.

‘The new organizational structure and staffing pattem of the Department shall be evaluated
and aoproved by the DBM.

a


‘Tne authorized positions created urder the organizational or reorganization plan shail be
fled with regular appointments, as the exigencies of the service will require and depending upon
the position involved, by the President. af the Philippines or the Secretary of the Department as the
case may be, in accordance with the Civil Service rules and regulations.

SEC, 17, Repeating Clause - All laws, decrees, executive orders, rules and regulations end other
‘neuarces or parts thereof which are mconsistent with this Act are hereby repealed, amended or
modified accordingly.

SEC. 18. Separability Clause - If any provision of this Act shail be declared unconstitutional or
invalic, the other provisions not otherwise affected shalt remain in full force and effect.

SEC. 19. Effectivity Clause - This Act shell take effect afer fifteen (18) days from its publication
in at least two (2) papers of general circulation,
Approved


V eh oe

Republic af the Philtepines
HOUSE OF REPRESENTATIVES
7 OSuegen City

FIFTEENTH CONGRESS
Firs: Regular Session

HOUSE BILL NO. 64

EXPLANATORY NOTE

This bill reenacts House Bill No. 4300 which has been approved
by the 14™ Congress of the Fouse of Representatives and has been
transmitted to and received by the Senate on 11 August 2008.

‘The importance of information and communications technology
(ICT) is embodied in the following sentences:

The State recognizes the vital role of communication
and information in nation building.
Article I, Sec. 24, 1987 Constitution

Technology is the foundation of future economic
development.

President Gloria Macapagal Arroyo's
State of the Nation Adgress, July 23, 2001

Modern and up-to-date ICT is vital to the growth of the economy.
Given a globalized environment and the emergence of the so-called
new economy, the country shoud be equipped to deal with new
demands-and challenges to be competitive. -—~ os

In the United States, the widespread use of ICT in the 90's is
believed to have resulted in efficiency gains and have contributed to
the improvement in overall productivity. The use of modem ICT has
improved the way of doing business which resulted in the sharp
reduction of business transaction costs.

Electronically assisted business transactions favor the business
sector because the delivery of goods and services entails less paper
work with utmost accuracy and speed. Firms that take advantage of
the availability of electronic commerce enjoy a competitive edge.
These firms would have the capability to expand their market horizon
and business contacts both locally and globally.


CG O

Modern ways of commurication can mobilize rural development.
The World Bank noted in its report of a group of subsistence farmers in
the country have become pineapple specialists, using telex and fax
machines to communicate cirectly with researchers and market
representatives, This is an example where existing communication
technologies alone bring convenience In transmitting Information.

The use and development of ICT in the Philippines grew rapidly
over the last decade. The country has huge potential in further
developing its ICT capability vith its highly skilled and trainable work
force. With this competitive advantage over its Asian neighbors, it can
encourage foreign investors to do business in the country.

Recognizing the important role of ICT in national development,
there is a need to have a concerced effort between the government
and the business sector to pursue an ICT development strategy for the
country. The business sector will play the lead role in driving ICT
development. The government, on the other hand, will provide an
efficient and effective business environment, regulatory framework,
and the services needed for ICT to develop and thrive.

Therefore, there is a need for a bill that will create a Department
of Information and Communications Technology (DICT) which will be
responsible in providing the 9olicy and legal environment and the
institutional mechanisms that will promote the development of ICT In
the country. This Department will also ensure the availability of
enabling factors such as infrastructure support, financial resources and
qualified / skilled numan resources, etc.

The Department will effectively split the Department of
Transportation and Communications (DOTC), transferring all powers
and functions related to communications to the new Department and
the remaining transportation segment shall remain with the DOTC+that
shall be renamed as the Department of Transportation.

In view of the foregoing, the approval cf this bill is earpestly
sought.

wd
LUIS R. VILLAPUERTE



‘Republiz uf the Philtypines
HOUSE OF REPRESENTATIVES
Ques Cay

FIFTEENTH CONGRESS
First Regular Session

House stitNo, 64

_ AN ACT CREATING THE DEPARTMENT OF INFORMATION AND
COMMUNICATIONS TECHNOLOGY, DEFINING ITS POWERS
AND FUNCTIONS, APPROPRIATING FUNDS THEREFOR,
AND FOR OTHER PURPOSES
Be it enacted by the Senate anf House of Representatives of the
Philippines in Congress assembied:
1 Section 1. Short Title - This Act shail be known as the
2 “Department of Information and Communications Technology Act”.
3 Sec. 2. Creation of the Department — There is hereby created
4 the Department of Information and Communications Technology,
5 hereinafter referred to as the Department.
6 Sec. 3. Declaration of Policy - It is the policy of the State to
7 promote the utilization of Information and Communications
2 Technology (ICT) as 2. vital tool for nation-building and economic
9 growth that Is government-enabled, private sector-led, citizen-centric
10 and market-based. Towards this end, government shall prioritize the
11 effective coordinazion and implementation of its national and local ICT
12 and ICT-enabled services, programs, projects and other related

13 initiatives and reorganize and revitalize all relevant governmental

14 institutions in order to achieve a streamlined and efficient structure


16

17

4 Qe eo)

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; ensure 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 rights of individuals and
entities to privacy and confidentiality of information, to promote

accountability through transparent governance, and effective delivery
of government frent line services.
Sec. 4. Definition of Terms. - As used in this Act, the
following terms are defined as follows:
(a) “E-Governance or Electronic Governance” shall mean the
application of information communications technology to the processes
~of government functioning to bring about efficient, ethical,
accountable, responsive and transparent governance; —
(b) “ICT Sector or ICT Industry” shall mean all
telecommunications carriers / operators. ICT eauipment and solutions
manufacturers and providers, internet service oroviders, ICT training
institutions, software developers ard 1CT-enabled service providers;
(c) “ICT-Enabled Service Providers” - shall mean all offshoring
and outsourcing service provicers, including contact centers, medical

or legal transcription, animation, engineering or architectural design


20

2

22

23

24

W “oO

services, software development, business process outsourcing services
and other providers of services that require the intrinsic use of a
networked information infrastructure.

(a) “Information and Communications Technology” shall mean
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 cornputer 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 cornputers.

(e) “M-Governance or Mobile Governance” shall mean 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 shali be the primary policy,
planning, coordinating, implementing, regulating and administrative
entity of the Executive Branch of the government that will promote,
develop and oversee the government's integrated and strategic ICT
systems and ensvre reliable and cest-efficient communications facilities
and services.

The Department shall likewise be responsible for improving the
acquisition, utilization and optimization of government’s information
and communications technologies in order to improve the productivity,

efficiency, effectiveness, and responsiveness of national and local



1

13

14

3

16

17.

18

23

24

_o O
government programs. The Department shall furthermore be
responsible for ensuring the application of information communications
technology to the various processes of government functioning.

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 gtobal competitiveness;

(b) Foster a policy environment for ICT sector that will promote
market-led, broader development of the ICT and ICT-enabled services
sector, a level playing field, partnerships between the public and the
private sectors, strategic alliance with foreign investors and balanced
investments between high-growth and economically-depressed areas;

(©) Foster and accelerate 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 availatility 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

a E


18

19

20

a1

22

23

c oO

providing funds and construction assistance for ICT-hubs and/or
technical support to local providers in these endeavors and in the
rearketing of the local products to the global conimunity;

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

@® Promote technicai training and scholarships, and the
development and use of expertise in ICT and ICT-enabled services for
the country’s human capital to enable Filipinos to compete in a fast-
evolving information and communication age;

(i) Ensure the growth of the ICT and 1CT-enabled industries,
induding mobile technologies, application and services;

{k) Preserve the rights of individuals to privacy and
confider tiality of their personai information;

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

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

(n) Ensure the security of ICT infrastructures and assets of

individuals and businesses; and


20

21

22

23

24

Cc ‘ ae)

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

Sec. 6. Powers and Functions - To carry out its mandate, the
Department shalt 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 information and communications technologies, and
applications, and increased ard convenient access by the citizens to
the same.

(b) Initiate, harmonize and/or coordinate all ICT plans and
initiatives of government departments/agencies to ensure overall
consistency and harmony with the objective of electronic governance,
in particular, and national objectives and goals 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 t> advances ‘in convergence and other
emerging technologies; and fcr this purpose, may invite any agency,
corporation or organization, whether publi: or private, whose
development programs in ICT are an integral part thereof, to
participate and assist in the preparation and implementation of various

programs among which is an integrated National Government Portal;


20

2a

22

24

C O 7”

(e) Leverage resources and activities in the various national
government agencies for data base building activities, information and
resource sharing and agency networking linkages;

@ 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 anc networks and identify and prioritize all
e-government systems and applications as provided for in the
Government Information Systems Plan and/or the Medium Term
Philippine Development Plan (MTPDP);

(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-enablec services;

(@) Develop, implement end improve, in coordination with
concerned government agericies and industry associatons, the
government's ICT application capabilities and determine the personnel
qualification and other stancards essential. to the integrated and
effective developnent and operation of government information and

communications infrastructure;


C

oO

(j) Encourage and establish guidelines for private sector funding
of ICT projects for government agencies in order to, fast-track 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 and other institutions
concerned;

() 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 and the academe;

({m) Support, assist, and prescribe rules and regulations on ICT-
related aspects for the operation and maintenance of a nationwide
postal system that shall include mail processing, delivery services, and
money order services;. —

(n) Administer and erforce ali laws, standards, rules, and
regulations governing ICT, ard in coordination with the Intellectual
Property Office (IPO), ensure the orotection of ICT-related intellectual
property rights;

(0) In coordination with concerned agencies, ensure consumer
protection and welfare, and protect the rights of consumers and

business users to privacy, security and confidentiality;


19

20

2

22

24

v sO .

(p} Harmonize, synchronize and coordinate with appropriate
agencies all ICT and e-commerce policies, plans and programs;

(q) Coordinate with the Department of Tracie and Industry in the
promotion of trade and investment opportunities in ICT and ICT-
enabled services; ,

(F)_ In coordination with concemed agencies, 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;

(s) In coordination with concerned agencies, 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;

{t) In coordination with the Department of Education, --
Commission on Higher Education (CHED) and Technical Education and
Skills Development Authority (TESDA), undertake initiatives to
promote ICT and ICT-enabled services 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 resources needs of the ICT and ICT-enabled

services sector in particutar;



20

21

22

23

Cr 2)

Sec. 7. Composition. - The Department shall be headed by a
Secretary to be appointed by the President, subject to the 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, and of proven integrity and with experience or
expertise in either of the following: electronic governance, cyber
services, information technology infrastructure, or human capital
development.

‘The assistant secretaries referred to terein shall be career
officers with appropriate eligibilities 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 Information and
Communications Technology, 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;


20

21

23

Ue Oo

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

(©) Rationalize delivery systems necessary for the effective
attainment of the objectives of the Department, including the creation
of regional and/or field offices;

{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.

(f) Coordinate with lecal goverment units (LGUs), other
agencies, and public and private interest groups, including
nongovernment organizations (NGOs) and people's organizations (POs)
on Department policies and initiatives;

{g) Advise the President of tre Republic of the Philippines onthe
promulgation of executive and administrative orders and regulatory
and legislative proposals on matters pertaining to ICT development
and promotion;

(h) Formulate such rules an¢ regulations and exercise such other
powers as may be necessary to implement the objectives and purposes

of this Act; and


19

20

21

24

L ; O

(i) Perform such other tasks as may be provided by law or
assigned by the President of the Republic of the Philippines from time
to time. :

Sec. 9. 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 controllec corporation, is hereby directed to
designate at least the third ranking official as a Chief Information
Officer. The said officers shall collectively forrn the Council of Chief
Information Officers. The Secretary shall be the Chairman of the
Council.

The Council shail serve as a coordinating body to assist the
Secretary in implementing plans for a unified government-wide portal,
set standards for government websites, an:l establish cules and
guidelines for the provision of nformation and other ICT e-government
initiatives.

In performing its duties,.the Council shali also consult regularly
witn Chlef Information Officers of local government units on ICT-
related activities through their national association and/or through the
leagues of local governments.

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

Sec. 10. E&-government Fund - There shall be an e-

government fund to be administered by the Department, which is a



20

2

22

23

Qo ©)

Special Account in the General Fund, created 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. The Fund may be augmented by
donations, contributions and grants from local or international funding
agencies.

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 Department of Budget and
Management (D&M). In the preparation of said guidelines,
consultations shall be made with the respective umbrella organizations
of the information technology znd communications sector. —

The implementing agencies granted funding under the e-
government fund shail maintain primary responsibility over the use
and management of the allocated funds. The agency concemed shall
regularly submit performance anc monitoring reports on the use of
said funds to the Department of Information and Cormiunications

Technology (DICT).


19

20

21

22

23

24

a oan)

In connection with the implementation of the e-government
fund, the Department shail provide or arrange the appropriate or
relevant ICT education or training program for government ICT in
order to enable the trainees to comprehend the ICT development cyde
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.

Sec. 11. Periodic Performance - The Secretary is hereby
required to formulate and enforce a system to periodically and
objectively measure and evaluate the performance of the Department
and to submit the same annuaily to the President of the Republic of the
Philippines and to appropriate Congressional Committees.

Sec. 12. Transfer of Agencies and Personnel. — The
following agencies and institutions are hereby absorbed in the
Department:

(a) All operating units currently existing in the Commission on
Information and Communications Technology (CICT), which directly
support communications, including the Telecommunications Policy
Pianning Office;

(b) The National Computer Center under the Department of
Science and Technology (DOST); and

(c) Al} offices, services, divisions, units, and personnel of the

Department of Transportation and Communications (DOTC) with

functions and responsibilities dealing with communications.


L

2

3

an

5

6

7

g

9

18

19

20

21

24

All offices, services, divisions, units and._/rsonnel 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 which i's hereby renamed the Department of
Transportation.

The foregoing transfer of powers and furictions shall include all
applicable funds and appropriations, records, equipment, property and
personnel as may be necessary.

The following agencies are nereby attached to the Department
for policy and program coordinaticn and shall continue to operate and
function in accordance with their charters, laws or orders creating
them, and with such other functions and responsibilities mandated by
Jaw and insofar as they are consistent with this Act:

(a) National Telecommunications Commission;

(b) Philippine Postal Corporation; and

(c) Telecommunicatiors Office (TELOF).

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

Sec. 13. Separation from Service - Employees separated
from the service as a result of the reorganization shall, within ninety
(90) days therefrom, receive the retirement senefits to which they

may be entitled under existing laws, rules and regulations.


19

20

2

22

24

C O

Those incumbent employees whose positions are not included in
the new position structure and staffing pattern of the Department, or
who are not re-appointed 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 under existing laws, rules and
regulations.

Sec.14. Appropriations - The amount needed for the initial
implementation of this Act shall be taken from the current year's
appropriations of the Commission on Information and Communications
Technology 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 jine agencies shall be
included in the annual General Appropriations Act.

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

Sec. 15. Transitory Provisions - Within three (3) months
after the appjoval Of this Act, the organizational structure including the
creation of new division or units as may be deemed necessary for the
Department to carry out its pcwers and functions under this Act, shall
be determined by the Secretary through a Committee that he shail
establish for the purpose. ‘

The new organizational structure and staffing pattern of the

Department shall be evaluated and approved by the DBM.


c 2)

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

Sec. 16. Implementing Rules and Regulations. - The
Department shall promulgate and issue such rules and regulations and
other issuances within ninety (90) days from the approval of this Act
as may be necessary to ensure its effective implementation.

Sec.. 17. Separability Clause - If any provision of this Act
shall be deciared unconstitutional or invalid, the other provisions not
otherwise affected shall remain. in full force and effect.

Sec. 18. Repeating Clauses - All laws, decrees, executive
orders, rules and regulations and other issuances or parts: thereof
which are inconsistent with this Act are hereby repealed, amended or
modified accordingly. - =

Sec. 21. Effectivity Clause - This Act shall take effect after
fifteen (15) days from its pudlicetion in at least two (2) papers of
general circulation.

Approved,



Republic 0: the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS:
First Regular Session

H.B.No. 493

Introduced by HONORABLE JUAN EDGARDO “SONNY” M. ANGARA.

EXPLANATORY NOTE

is DM seeks to reorganize the Department of Transpartation and Communication by
creating @ separate Department of infirmaton and Communioations to address the dketnes
needs of the communications and transportation sector.

Seotion 24, Articie 11 of the 1967 Prulippine Constitution declares that "the State
recognizes the vital mie of communications and information in nation-building’. To implement
this State policy, a Department of Transportation and Communications was created under te
Administrative Code of 1Y87 to maintain snc’ expand a viable, efficient, safe and dependable
transportation and communications systems as effective instruments for national recovery and
economic progress. Due to the divergent issues on transportation and communications, a single
department should focus on ach one to intensify government Initiatives and cope up with the
demands of globaiization.

Under this proposed measure, the Department of Information and Communications shal!
be the primary paficy, planning, coordinséing, implementing, regulating and administrative ontity
of the executive branch of the Goverment that wif promote, develop, and regulate integrated
and strategic ICT systems and rokable arxt cost-efficient communication facilities and semiee,
This will ensure thal the communications and information technology seclor of the country be
given appropriate focus and be included as one of the prioritiés of the government.

(n view of the foregoing, immediate passage af the bill is eamently sought. -

sitio ser ts
Represent

Lone District, Province of Aurara

4


CO

FIFTEENTH CONGRESS OF THE
REPUBLIC OF THE PHILIPPINES
First Regular Session

H.B.No, 498

Introduced by Honorable JUAN EDGARDO “SONNY” M. ANGARA

AN ACT
CREATING THE DEPARTMENT OF INFORMATION AND COMMUNICATIONS
TECHNOLOGY, DEFINING ITS POWERS AND FUNCTIONS, APPROPRIATING
FUNDS THEREFORE,

AND FOR OTHER PURPOSES,

Be it enacted by the Senate and House of Representatives of the Philippines i
Congress assembied: " °

SECTION 1. Short Tite. This Act shai be known as the “Department of information
and Communications Technology Act of 2010."

SEC. 2. Declaration of Paticy. It is hereby declared the policy of the State:
To ensure the provision of a strategic, reliable, ‘cost-efficient and citizen-centric

Information and communications technology. (ICT) infrastructure, systems and
Fesources as instruments of nation-building and global competitiveness;

To foster a policy environment that will promote a broader marketed deveiopment of

the ICT and ICT-enabled services sectors, 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;

¢. To foster and accelerate the convergence of ICT facilities; a

‘To ensure universal access and high-speed connectivity at fair and reasonable costs;

To ensure the availability and access:bility of informstion and communications services

in areas not adequately served ky the orvate sector, .

f, ‘To promote the widespread tse and development of emerging ICT;

g. To promote and assist the development of local (CT content, applications and services;

h. Ta establish a strong and effective seguiatory system that will ensure consumer
protection and welfare and foste- a healthy competitive environment;

1. To promote the development of ICT expertise in the country’s human capital to enable
Filipinos to compete in a fast-evolving information and communications age;

|. To encure the growth of the ICT and ICT-enabled services sectors;

k. To preserve the rights of individuals to privacy and confidentiality of their personal
‘information;

1. To encourage the use of ICT far the development and promotion of the country’s arts

and culture, history, education, public health and safety, and other socio-c’vic purposes;

td


oO 2 oe O

m. To sustain the development of the national postal system as an integral component of
the overall development of IC in the country, .

1. To encure the security of ICT infrast-uctures and assets of individuals and businesses
‘stored therein;

0. To empower, through the use of (CT, the disadvantaged segments of the population,

including persons with disabilities, such as the Physically, emotionally or mentally
challenged.

SEC. 3. Definition of Terms. As used in this Act, the following temis are defined as

follows: ‘

3. “Information and Communications Technology” or ICT shail mean the totality of
electronic means to collect, store, process and present information tc 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 witich include telephone, cable, wireless and satellite systems.

‘the Intemet, fax machines and computers;

“Electronic Goverment” or “E-Govemment” shall mean the application of ICT in

government processes to bring about efficient, responsive, ethical, accountable and

transparent goverment service;

¢. “ICT Sector” shall mean te'ecommunications operators, ICT equipment
manufacturers, ICT solution providers, intemet service providers, ICT training
institutions, software developers and ICT-enabled service providers:

4. “ICT-Enabled Services Sector’ shat! mean offshoring and outsourcing service
Providers, including cat centers, back office processing, sofware development,
medical or legal transcription, animation, game development, engineering of
architectural design, and other services that require the intrinsic use of a networked
information infrastructure; © _

©. "Chief (nformation Officer” or “ClO” shall mean the title given to the board level head
of {CT in an organization responsible for the development and maintenance of the
‘organization's ICT systems and applications,

SEC. 4. Creation of the Department of information and Communications
Technology. There is hereby created the Department of information and Communications
Technology, hereinafter referred to as the Department, which shall carry out the above-deciared
Policy and assume the communicatiors-related powers and functions of the Department of
Transportation and Communications (DOTC).

SEC. 5. Mandate. The Department shali 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 (CT sector.

I


Cc Que

‘SEC. 6, Powers and Functions. The Department shall exercise the following powers
and functions: -

8 Formulate, recommend and implement national policies, plans, programs and

guidetines for the ICT and ICT-enabled services sectors that will promote wider use
and development of ICT anc provide increased and convenient access by the citizens
to the same;

a

Initiate, harmonize and coordinate all ICT Plans and initiatives of government
agencies fo ensure overall consistency and harmony with e-government objectives in
Particular, and national objectives in general
Represent and negotiate for Phdippine
international bodies;

Develop and maintain national ICT development pians and establish and administer
comprehensive end integrated programs for ICT with due consideration to advances
fon convergence and other emerc'ng technologies; and for this purpose, may invite
any agency, corporation or organization, whether public or private, whose
development programs in (CT are an integral part thereof, to Participate and assist in
the preparation and implementation of such program:
@. Promote knowledge, information and resource sharing, database building and agency

networking linkages among various government agencies;

Ensure the development and protection of an integrated government information and
communications infrastructure anc coordinate all relevant government entities, taking
inte consideration the inventory of existing manpower, plans, prograns, proposals,
software and hardware, and the Installed systems and programs;

g. Provide an integrated framework in order ty optimize alt gavemment ICT resources
and networks and the identification and prioritization of all e-government systems and
applications as provided for in the Goverment Information Systems Pian {GISP) and

-——-the Medium Term Philippine Development Plan (MTPDP);

h. Coordinate and support the generation and acquisition of necessary resources as
may be appropriate for the development, marketing, growth and competitiveness of
the Philippine ICT and ICT-enabled services sectors;

i. Develop, implement and improve, in coordination with concemed goverment

agencies and industry associations, the government's ICT capabilities and determine
‘the personnel qualifications and other standards essential to the effective

°

lerest on matters pertaining to ICT in

development and operation of government information and communications
infrastructure;

j. Encourage and establish guidelines for the'use of public-private partnerships in the
implementation of ICT projects for government agencies in: order to fast-track said
projects and provide reasonable return-on-investment for the private sector, including
but not limited to Bulld-Operate-Transfer (BOT) mechanisms;

k. Assess, review and support ICT research and development programs of the
government in coordination with the Department of Science and Technology and
other Institutions concemed; ar

. Ned


C O ; ;
Establish and prescribe rules and regulations for the establishment, operation and
maintenance of (CT infrastructure ir unserved and underserved areas, in consultation
with the private sector, local govemment units (LGUs) and the academe;

Provide policy-direction and guidance in ICT-related aspects for the operation and
maintenance of a nationwide postal system that shail include m: Procassing, delivery
services, and money remittance anc! payment services;

. Assist and provide technical expertise in the development of guidelines to the

Intellectual Property Office (IPO) in the enforcement and administration of laws,
standards, rules, and regulations governing ICT «

In coordination with concemed agencies, the private sector and relevant intemational
bodies, ensure consumer protection and welfare, and protect the rights of cansumer
‘and business users to privacy. security and confidentiality;

. Harmonize, synchronize and coordinate with appropriate agencies all ICT and e-

commerce policies, plans and programs;

Coordinate with the Department of Trade and Industry in the promotion of trade and
investment opportunities and protection of investor interests in the ICT and ICT-
enabled services sectors;

In coordination with concemed agencies, promote strategic partnership and alliances
among and between local and intemational ICT finns and institutions, research and
development, educational and training institution

and technology providers,
developers and manufacturers, to speed up industry growth end enhance globat
competitivenes

tn coordination with concemed agencies, plan and implement such activities as may
be appropriate to enhance the competitiveness of Philippine workers, firms, and small
‘and medium enterprises in the global markets for ICT and ICT-enabled services;

in coordination with concemed agencies, establish and recommend the adoption of
qualification standards and enhance the career opportunities of_ICT workers in

government;

In coordination with the Department of Education, Gommission on Higher Education
and Technical Education and Skits Development Authority, formulate policies and
initiatives to promote ICT and ICT-enabled services education and the development,
promotion and application of ICT in education in a manner that is consistent with the
national goals and objectives, and responsive to the human resource needs of the
ICT and (CT-enabled services sectors;

Facilitate the creation of the Chief information Officer (CIO) Council, which shall
consist of CIOs of national govemment agencies (NGAs) with at least the rank of
Assistant Secretary, with the Secretary serving as the Chaiman, to assist the
Department in implementing e-government initiatives,

Administer the E-Government Fund as specified in Section 15 and, in coordination
with the Department of Budget and Management, establish guidetines for the
disbursement and management of the E-Government Fund, including the monitoring
and evaluation system of projects funded under the said fund.

4 B


SEC. 7. Composition. The Department of information and Communications Technology

shall be headed by a Secretary. The Department proper shali be composed of the Office of the
Secretary, the offices of the Undersecretaries and the Assistant Secretaries.

SEC. 8, Secretary of Information and Communications Technology. The Secretary
shall be appointed by the President, subject to corifirmation by the Commission on
Appointments.

‘The Secretary shail have the following tunctions:

a. Provide executive direction and supervision over the entire operations of the

Department and its attached agencies;

Establish policies and standards fcr the effective, efficient and economical operation

of the Department, in accordance with the programs of Goverment,

Rationalize delivery systems necessary for the effective attainment of the obrectives

of the Department, in accordance with the programs of Government;

Review and approve request for financial and manpower resources of all operating

offices of the Department;

Designate and appoint officers and employees of the Department, excluding the

Undersecretaries, Assistant Secretaries, and Regional and Assistant Regional

Directors, in accordance with the Civil Service laws, rules and regulations;

Coordinate with LGUs, other agencies and public and private interests groups,

including non-government organizations (NGOs) and people's organizations (POs) on

Department policies and initiatives;

@. Advice the President on the promulgation of executive and admiristrative orders and
regulatory and legistative proposals on matters pertaining te ICT development;

Serve as a member of the Government Procurement Policy Board as established by

Republic Act No. 9184;

i. Serve as the Chairman of the Board of the Philippine Postal Corporation in
accordance with Republic Act No. 7354 and the Corporation Law,

|. Formulate such rutes and regulations and exercise such other powers as thay be
required to implement the objectives af this Act;

k Perform such other tasks as may be provided by Law or assigned by the President
from time to time.

SEC, 9. Undersecretaries. The Secretary shall be assisted by three (3)
‘Undersecretaries, who shail be appointed by the President upon the recommendation of the
Secretary: provided that one (1) of the Undersecretaries shall be a career officer coming from
ranks of existing government information and communications agencies and offices or qualified
ICT professionals in the private sector.

I



: QO oe O

SEC. 10. Assistant Secretaries. The Secretary shall be assisted by three (3) Assistant

Secretaries who shall be career officers aprointed by the President upon the recommendation
“of the Secretary. .

SEC. 11. Qualifications. No person shall be appointed Secretary, Undersecretary or
Assistant Secretary of the Department unless he is a citizen and resident of the Philippines of
good moral character, and af proven integrity.

SEC. 12. Regional Offices. The De;artment shall be authorized to establish, operate,
and maintain Regional Office in each of the adminisirative regions of the country as the need
arises. The regional office shali be headed by a Regional Director, who may be assisted by one

(1) Assistant Regional Director. The Regonal Offices shal have, within their respective
administrative regions, the following functions:

@ Implement laws, policies, plans, programs, projects, rules and regulations of the
Department;

b. Provide efficient and effective service to the people;

©. Coordinate with regional offices of other departments, offices, and agencies;

d. Coordinate with LGUs:

e.

Perform such other functions as may be provided by law cr assigned by the
Secretary.

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);
3. Telecommunications Office (TELOF); .
4. All operating units of the Depastment of Transportation and Communications
(OTC) with functions and responsibilities dealing with communications.
All offices, services, divisions, units and personnel not otherwise covered by this Act
for transfer to the Department shall be retained under the DOTC, which is hereby
renamed the Department of Transportation.

6} The following agencies ar2 hereby attached to the Department for policy and
‘program coordination, and shall continue to operate and function in ascordance with
the charters, laws or orders creating them, insofar as they are not inconsistent with
this Act
4. National Telecommunications Commission;

2. Phitippine Postal Corporation.

r


¢) The las and rules on government reorganization as provided for in Republic Act No. |
6656, otherwise known as the Reorganization Law, shall govern the ization

process of the Department,

SEC. 14) Postal Regulatory Authority. The exclusive power and autharity to fegulate
the postal delivery services industry, as pro for under Presidential Decree No. iia and
Republic Act No! 7354, is hereby transferred tothe Department.

SEC. 18, E-Government Fund, Thore shall be an E-Govemment Fund to be
administered bythe ‘Department, which is a Bpecial Account in the General Fund, created
‘specificalty to fund cross-agency and citizen-centric government ICT projects. The Fund shall be
used to support|and co-finance projects that prable the goverment to expand its ability to
conduct activities electronically and provide ffontline'services through the development and
implementation ¢f innovative uses of the weamet or other emerging technologies. Hpwever,

intemal IT systems meant to support the agenties ST operations shall be charged against the |
agencies’ own budgetary allocation. : |

SEC. 16, implementation of the Rb Web In consonance with the ves of |
Administrative Order No. 332 and Republic ‘Act No. 8792, tha primary respons bility qver the
implementation of the RPWeb or the electrcnie online, network of the government which shail |
serve as initial platform of the Goverment infomation infrastructure (Gil), is hereby red
to the Department. For this purpose, the Department shall continue utilizaticn of all funds,
monies, interests, and properties outstanding and accruing from the RPWeb.

SEC. 17.| Sectoral and industry Task Forces. The Department may create Lectoral |
and industry task forces, technical working groups, advisory bodies or committees| for the
furtherance of ft cbjectives. Additonal private! sector representatives, such’as ‘rom aadéine |
and faderstion of private industries directly involved in ICT, a8 wo as ather NGAs, LGUs and
government owned and.controlied comporations (GOCEs), may be appointed to these working
groups. Govemment IT professionals may aso be tapped to partake in the work of the |
Department through these working groups. !

SEC. 18. Structura and Staffing Patter. The Department shall determine its
‘organizational. structure and create new divisions or units as it may deem necessary, and shall

|
appaint officers: and employees of the Departnent In accordance with the CiMil Service Law,
rules, and regulations.

SEC, 19) Magna Carta. Employees of the ‘Depariment shali be covered by Reppblic Act
8439, which provides 8 magna carta for scientists, engineers, researchers and other, science

and technology personnel in the government. | |
i fe |

7


SEC, 20. Separation from Service. Employees separated from the service as a result
of this reorganization shall, within ninety (90) days therefrom, receive the separation and
retirement benefits to which they may be entitled under Executive Order No. 366, Provided that

such separation pay and retirement benefits shall have priority of payment out of the savings of
the department or agency.

SEC. 21. Appropriation. The amount needed for the initial implementation of this Act
shail be taken from the current fiscal year’s appropriation of the CICT through the Office of the
President and all agencies herein absorbed by or altached to the Departnent. Thereafter, the
amount needed for the operation and maintenance of the Department shall be included in the
General Appropriations Act, provided that for the next fiscal year, the amount shail be One
Billion Two Hundred Million Pesos {P1,200,000,000.00},

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

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

SEC. 24. Effectivity Clause. This Act shall take effect fifteen (15) days from its
Publication in at least two (2) papers of general circulation.

Approved,


Republic o€ the Philippines
. _ Bouse of Representatives
‘Quezon City
Fifteenth Congress
First Regular Session

1230

HOUSE BILL NO.

Introduced by Honorable Winston Castelo

EXPLANATORY NOTE

Section 24, Artie II (Declaration of Principles and State Policies) of the 1987
Constitution states;

"SEC. 24, The Stabe recognizes the vital role of communication
and information In nation-building.” ‘

To give recognition to the vital importance of Information technology In
national development, this bill seeks to reorganize and rationalize certain
goverment functions. This bill proposes to create a new agency which shall be
known as the Department of Information Technology and Communications (DITC)
that will effectively merge the communications arm of the Department of
Transportation and Communications (DOTC) with the information technology division
of the Department of Science and Technclogy (DOST), Commission on Information
and Communications Technology (CICIT) and the National Computer Center (NCC)
which is presently under the Office of the President. These are offices in charge of
‘communications and information technology planning for the government.

Through this bill, we look forward to the use of information technology and
modem communication to spur the growth of the economy, improve the efficiency of



ren io - pi beee e)

government and the delivery of public services. In this way, ‘we overcome
geographic limitation to achieve the goal of globalization by transcending cultural
and territorial barriers.

To attain this objective, there is a need to provide a national and integrated
government program that will optimize the utilization of information technology and
communications facilities. Moreover, it is of critical importance that the information
technology and communications services of the government be integrated.
Information technology offers tremendous potential to meet basic human needs and
develop human resources

Countries around the world realize the inherent advantages of dealing In an
environment that is uniform and dosely knit. The integration of everything from
tpade and technology is an inevitable consequence of globalization. At the heart of
this global momentum is information technology and modern co He

N4


Republic of the Philinpines
Rouse of Representatives
‘Quezon Cty

Fifteenth Congress
First Regular Session

a 41230

HOUSE BILL NO.

Introduced by Honorable Winston Castelo

AN ACT
CREATING THE DEPARTMENT OF INFORMATION TECHNOLOGY AND
COMMUNICATIONS, DEFINING ITS POWERS AND FUNCTIONS,
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES.

Be it enacted by ihe Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. This Act shall be known as the "Department of Information
‘Technology and Communications Act of 200%."

SEC, 2, Declaration of Policy. — The State shall provide the policy
environment for the full development of Filipino capability and the resurgence of
communications structures suitable to the needs and aspirations of the nation and
the.balanced flow of information into, out of, and across-the-country, in aconrdance:
with a policy that respects the freedom of speech and of the press. For this purpose,
the State shall provide a national and integrated government program that will
optimize the utilization of information technology and communications facilities
‘towards the attainment of continued economic growth and development.

SEC. 3. Creation of Department of Information Technology and

Communications. - There Is hereby created a Department of Infomation



Cr ‘)

Technology and Communications, heyinatier referred to as the DITC, which shalt
assume the communication functions of the Department of Transportation and
Communications and such other functions as may be assigned to it by law.

SEC, 4. Objectives. — The Department of Information ‘Technology and

Communications shall have the following objectives: ‘

{@) Promote the development of dependable and coordinated information
technology and communications systems; ,

(b) Guide the development of information technology and communication
systems In a most practical, expeditious, and orderly fashion of maximum
service, safety and cost effectiveness;

({c) Impose appropriate measures so that technical, economic and other
conditions for the continuing economic viability of the information
technology and communications entities are not Jeapardized;

(d) Develop an integrated plan for a nationwide information technology and
communications service requirements;

(e) Encourage the development of the information technology and
communications industiies and to complement and support, as much as
possible, theexpansion, development, operation and maintenaiiee of the
hationwide computer and telecommunications network; and

(f) Provide for a safe, retiable and efficient posta! system for the country.

SEC. 5, Authority and Responsibility. - The authority and responsibility
for the exercise of the mandate of the DITC and for the discharge of ts powers and
functions shait be vested in the Secretary of Information Technology and

of


2 ostees “ wu ° Br @.

Communications, hereinafter referred to as the Secretary, who shall have
supervision and control over the DITC and who shalt be appointed by the President
of the Republic of the Philippines. .

SEC. 6, Powers and Functions, - To accomplish its mandate, the DITC
shall have the following powers and functions: t

(a) Formulate and recommend national policies and guidelines for the
preparation and implementation of integrated and comprehensive
information technology and communications system at the national,
regional and local levels;

(b) Establish and administer comprehensive and Integrated programs for
information technology and communications, and for this purpose, may
call on any agency, corporation, or organization, whether public of
private, whose development programs Include Information technology
and communications as an integrat part thereof, to participate and assist
in the preparation and implementation of such programs; *

(c) ,Assess, review and provide direction to information technology and
communications research and development programs of the goverment:
in coordination with other institutions concemed;

(d) Administer and enforce atl laws, rules and regulations in the field of
Information technology and communications;

(e) Establish, operate and maintain a nationwide postal system that shall
include mail processing, delivery services, and maney order services and
promote the art of philately;



() Establish and prescribe rules and regulations for the establishment,

— operation and maintenance of such telecommiunications facilities in areas

not adequately served by the private sector in order to render such

domestic and overseas services that are necessary with due
consideration for advances in technology;

(g) Establish and prescribe rules and regulations for the operation and
maintenance of a nationwide postal system that shal) include mail
processing, delivery services, money order service and promotion of
philately;

(h) Establish and prescribe the corresponding nules and regulations for the
enforcement of Saws governing information technology, ‘postal services,
Including the penalties for violations thereof, and for the deputation of
appropriate law enforcement agencies in pursuance thereof; and

(i) Perform such other powers and functions as may be prescribed by law,
or as may be necessary, incidental, or proper to ts mandate, or as may
be assigned from time to time by the President of the Philippines.

SEC. 7. Officers of the DITC- The Secretary shall be assisted by three (3)
Undersecretaries who shall be appointed by the President upon the recommendation
of the Secretary.

The Secretary shall also be assisted by six (6) Assistant Secretaries appointed
by the President-upon the recommendation of the Secretary, each af whom shall be
responsible for the following four (4) staff offices composed of eight (8) services and
three (3) line offices, and shall report to the respective Undersecretaries assigned by



Qos om

the Secretary, which Undersecretary shall have control and supervision over said
respective services and offices:

(a) Difice of the Assistant Secretary for Administrative and Legal Affairs:

1. Administrative Service, and
2. Legal Service
(b) Office of the Assistant Secretary for Finance and Comptrollership:
1. Finance and Management Service, and
2. Comptrollership Service
(c) Office of the Assistant Secretary for Pianning and Project Development:
1, Planning Service, and
2. Project Development Service
(d) Management Information Service anc Project Management:
1. Management Information Service, and
2. 2. Project Management Service 4

(e) Office of the Assistant Secretary for Postal Services

(f) Office of the Assistant Secretary for Telecommunications

(g) Office of the Assistant Secretary for Information Technology

Each of. the above-named .services shal! be headed by a service chief—
appointed by the Secretary.

SEC. 8. Structural Organization. - The Office of the Secretary shall have
direct line supervision and control over the regional offices. It shall be responsible
for developing and implementing policies, plans, programs and projects for the
department.


ee mee Qo

The DITC which is comprised of the offices cf the Secretary, Undersecretary and
Assistant Secretaries shall include the reg:onal offices and the attached agencies of
the

ore

SEC. 9. Reglonal Offices. - The DITC shall have three (3) Reglonal Offices
in each of the Administrative regions of the county: the Regional Office for
Information Technology, the Regional Office for Telecommunications and the
Regional Office for Postal Services. Eacn Regional Office shail be headed by a
Regional Director and assisted by an Assistant Regional Director,

The Regional Offices shall essentially be line in character and shall be
responsible for the delivery of all front line services of the DITC. .

For such purposes, 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 DITC; ‘

(b) Provide efficient and effective service to the people;

(©) Coordinate with regional offices of other departments, offices and

agencies; -

(d) Coordinate with local government units;
(e) Perform such other functions as may be provided by law.
SEC. 10. Appointed by Officials and Employees. ~ All other officers not
appointed by the President and all rank and file, contractual or casual employees,
shall be appointed by the DITC Secretary.


SEC. 11, Nature of the Appointment of Officials and Employees. ~
Appoiniinent tb the positions with rank lower than that of the assistant secretaries of
the DITC shalt be made only upén merit and fibless and shall be governed by
relevant laws, rules and regulations on the matter.

SEC. 12. Agencles Attached and Placed Under the Control and
Supervision of the DITC, ~ The DITC shail exercise Control and supervision over
the following agencies, any provision of the law or their respective charters to the
contrary
notwithstanding:

(1) National Computer Center (NOC)

(2) National Felecommunications Commission (NTC}

(3) Philippine Postal Corporation (PPC)

(4) Science and Technology Information Institute (STII)

All actions taken and exercised by the governing boards and executives of the
abovenamed agencles which affect and bear on the policies, programs, projects,
rules and regulations of the DITC shall require the prior approval of the Secretary.

SEC. 13. Security of Tenure. - In the Implementation of this Act, the
Exediitive Branch of the government shall insure that there shall be no undue
separation of personnel. In the event that the faying-off of personne! becomes
unavoidable because of the aboittions of their office or positions, impact mitigation
measures shall be adopted, such as redeployment of separated employees of one
department or agency to other appropriate departments, agencies or entities.

SEC. 14. Separation Benefits. - Employees who may be separated or
removed from the service by reason of this Act, shall be granted a gratuity

&



ane)

equivalent to one hundred fifty percent (150%) of thelr basic monthly pay for every
year of service, based off the highest salary received. For those employees who have
been in the goverment service for at least fifteen (15) years and are at least fifty
years od, they may opt to avail of the early retirement benefits equivalent to
seventy five percent (75%) of the amount: they would have been entitled to receive
as full retirement benefits had they remained in the service for the mandated period.

SEC. 15. Rules and Regulations. - Within sixty (60) days from their
appointment, the Secretary shall promulgate rules and regulations for the effective
implementation of this Act.

SEC. 16. Appropriation. ~ Such sum as may be necessary for the
implementation of this Act shall be taken from the current fiscal year appropriations
of the Department of Transportation and Communications (DOTC). Thereafter, the
amount needed for the operations and maintenance of the DITC shall be included in
the General Appropriations Act.

SEC. 17. Repealing Clause. — All laws, decrees, executive orders, rules and
regulations, and other issuances or parts thereof which are inconsistent with this Act
are hereby repealed, amended or modified accordingly.

SEC. 18. Effectivity."— This Act shall take effect after fifteen (15) days
following its publication in two (2) national newspapers of general circulation.

: Approved,



se eee

0

Republic of the Phifippines
HOUSE OF REPRESENTATIVES
‘Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regutar Session

House Bit No. 1508 *

INTRODUCED BY HON. MARCELINO "MARCY" R. TEODORO

EXPLANATORY NOTE

Aticie ||, Section 24 of the 1987 Constitution states that “[T]the State recognizes

the vital role of communication and information in nation-building.

Hence, in keeping with the said constitutional provision, this bill proposes the

creation of the Department of Informaticn and Communications (DICT), which shalt

L
2
3.

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

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

Create a coordinating body called the Council of Chief Information Officers which
is composed of tepreserratives from every gavernment agency;

Create a special account in the general fund called the E-government Fund shall
be administered by the proposed DICT and which may be augmented by
<onations, contributions and grants from focal and intenational funding agencies;
Provide for the absorption into the proposed DICT all operating units

existing in the Commission on Information and Communications Technology
(CICT), which directly support communications, the National Computer Center and
all offices, services, divisions, units, and personnel of the Oepastment of
‘Transportation and Communications with functions and responsibilities dealing
with communication; and

Attach the National Telecommunications Commission, Phifppine Postal
‘Corporation and the Telecommunications Office (TELOF} to the proposed DICT.

It is the objective of this measure to address an existing problem whereby two

diverse concems, transportation and communications, are presently being handled by just
‘ona department — the Department of Transportation and-Communications (DOTC).
Likewise, to create a single and well-focused agency that will concentrate on Information
and Communication Technology (ICT) which is an emerging, fast-evotving, and
increasingly complex pheriamenon. And eventually, to develop a world-class Philippine
ICT, thereby ensuring a better future for all Flapinos.

In view of the foregoing, approval of this measure is immediately sought.

Representative, 1°! District
City of Marikina



s - one

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
Fast Regular Session
1508

House Bill No.

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

AN ACT
CREATING THE DEPARTMENT OF INFORMATION 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".

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

‘SEC. 3. Daclaration of Policy. ~ itis the policy of the State to promote the utilization
of Information and Communications Technology (ICT) as a vital tool for
nation-building and economic growth thal is govemmentenabled, private
sectorted, citizen-centric and market-based. Towards this end, goverment shalt
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 achive
a streamlined and efficient structure that is responsive and atiuned to national
goals and objectives. It shall likewise be the policy of the State to provide an
environment that will support investiients in cost-efficient {CT infrastructure,
systems and resources to ensure universal access and high-speed connectivity at
fair and reasonable costs; ensure a ievel 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 rights of individuals and entities to privacy and confidentiality of
information; and to promote accountability through transparent govemance, and
effective delivery of government frontline services.

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

(a) “E-Govemance or Electronic Governance’ shall mean the application of
information and communications technology to the processas’ of government
functioning «to bring about efficient, ethical, accountable, responsive and
transparent govemance.

(6) "ICT ‘Sector or IGT ‘Industy” shall mean all telecommunications
cariers/operators, ICT equipment and solutions manufacturers and Providers,

4


gos O

intemet service providers, ICT training institutions, software developers and
ICT-enabled service providers.

{)"1CT-Enabled Service Providers" shail mean 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.

(d) “Information and Communications Technology” shall mean the totality of
electronic means to collect, store, process and present information to end-users in
support of their activities and services.

Itconsists of computer systems, office systams and consumer electronics, as well
5 networked information infrastructure, the components of which include the
telephone system, the Internet, fax machines and computers.

_ (} "W-Govemance or Mobile Govemance" shall mean the application.of mobile

technology to the process of government functioning to bring about efficient,
ethical, accountable, responsive and transparent govemancs.

SEC. 5. Mandato. — The Department shall be the primary pollcy, planning.
coordinating, implementing, regulating and administrative entity of the Executive
Branch of the govemment that will promote, develop and oversee the
govemment's Integrated and strategic ICT systems and ensure reliable and
cost-efficient communications facilities and services.

The Department shall likewise be responsible for improving the acquisition,
utilization and optimization of government's information and communications.
technologies in order to improve the productivity, efficiency, effectiveness, and
responsiveness of national and local govemment programs.

processes
government functioning. In fulfiling its mandate, the Department shall be guided oy
the following strategic objectives:

a} Ensure the provision of a strategic, reliable, cost-efficient, and citizen-centic
ICT infrasteacture, systems, and resources as instruments of nation-building and
global competitiveness;

b} Foster a policy environment for the ICT sector that will promote markebled
broader development of the ICT and ICT-enabled services sector; a level playi
field, partnerships between the public and the private sectors, strateglc alliance
with foreign

investors and balanced investments between high-growth and
conomically-depressad areas;

c) Faster and accelerate convergence of ICT facilites such as, but not imited to,
the development of networks;

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

©) Ensure the availability and accessibility of ICT services in areas not dequately
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;

9) 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 foca-hztsed providers in these
endeavors and in the marketing of the local products to the global cor r
h) Establish a strong and effective regulatory and ‘moniloring system that will
ensure investor and consumer protection and welfare and foster a healthy
competitive environment;

4) Promote technical training and scholarships, and the development ard use of.
expertise in {CT and ICT-enabled services for the county's human capital to
€nabfe Filipinos ta compete in a fastevalving information and communications age;
j; Ensure the growth of the ICT and ICT-enabled industries, Inctuding mobile
fechnologies, applications and services;

k) Preserve 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 arts and culture, history, education, public health
and safety, and other socio-civic purposes;

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

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

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

SEC. 8. Powers and Functions, — To camry out its mandate, the Department shall
exercise the follawing powers and functions:

{@) Formulate, recommend and/or implement-national policies and guidalines in
the ICT sector that will promote wider use and development of information and
communications technologies and applications, and increased and convenient
access by the cilizens to

the same;

(b} Initiate, harmonize and/or coordinate all ICT plans ‘and initiatives of goverment
departments/agencies to ensure overall consistency and hannony with the
objective of electronic governance, in particular, and national objectives and goals
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, may Invite any agency, corporation or organization, whether public or
private, whose development programs In ICT are an integral part therecf, to
Participate and assist in the preparation and implementation of various programs
among which Is an integrated National Govemment Portal;

(e} Leverage resources and activities In the various national gavernment agencies
for data base building activities, information and resource sharing and agency
networking linkages;

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

{9} Provide an Integrated framework in order to optimize all goverment ICT
Tesources and networks and identify and prioritize all e-govemment systems and
applications as provided for in the Goverment Information Systems Plan and/or
the Medium Term Philippine Davelopment Pian {MTPDP},

{h) Coordinate and support the generation and/or acquisition of all necessary
resources and facilities as may be appropriate in and for the development,

HW


marketing, growth and competitiveness of the Philippir e ICT and ICT-anabled -
services;

(0 Develop, Implement and improve, in coordination with concemed government
____. agencies and Industry associations, the goverment's IC:T application capabilities

‘and determine the personnel qualification and other standards essential to the
integrated and effective development and operation o” government information
and communications infrastructure; .

() Encourage and establish guidelines for private sector funding of ICT projects for
government agencies in order to fast-track said projects which provide reasonable
‘ost-recovery mechanisms for the private sector including, but not ilmited to,
Bui ite-

Transfer (BOT) mechanisms; :

{«) Assess, review and provide direction to iCT research and development
Programs of the govemment in coordination with the Department of Science and
‘Technology and other institutions concemed; :

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

(m) Support, assist, and prescribe rules and regulations on IT-related aspects for
the operation and maintenance of a nationwide postal sysiem that shall include
mail processing, delivery services, and money order services;

(n) Administer and enforce a laws, standards, rules and regulations governing
ICT, and in coordination with the Intellectual Property Office (IPO), ensure the
protection of ICT-telated intellectual property rights;

(0) In coordination with concemed agencies, ensure consumer protection and
welfare, and protect the rights of consumers and business users to privacy,
security and confidentiality,

(p} Harmonize, synchronize and coordinate with appropriate agencies all ICT and
commerce policies, plans and programs;

(a) Coordinate with the Department of Trade and Industry in the promotion of tade
and investment opportunities in (CT and ICTenabled services;

(r} In coordination with concemed agencies, promote strategic partnership and
alliances among and between local and international ICT firms and institutions,
Tesearch and development, educational and training Institutions, and technology
providers, developers and manufacturers, to speed up industry growth and
enhance giobal competitiveness;

(s) In coordination with concemed agencies, 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 the Department of Education, Commission on Higher
Education (CHED) and Technical Education and Skills Development Authority
(TESDA), undertake initiatives to promote ICT and ICT-enabled services in
education and training and the development, promotion and application af ICT in
education in a manner that is consistent with national goals and objectives, and
responsive to the human resources needs of the ICT and iCTenabled services
sector in particular.

SEC. 7. Composition. — The Department shall be headed by a Secretary to be
appointed by the President, subject to the confirmation by the Commission on
Appointments. The President shall also appoint not more than four (4)
undersecretaries and four (4) assistant secretarles. :

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 either of the following:


electronic govemance, cyber services, information technology infrastructure, or
buman capital development.

The assistarit secretaries referred to herein shall be-career officers with
appropriate eligibilities as prescribed by the Civil Service Commission.

SEC. 8. Secretary of Information and Communications ‘Technology. ~ The.
authority and responstbtty 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
Information and Communications Technology, hereinafter referred to as tha
Secretary, who shail have supervision and control over the Department.

For such purposes, the Secretary shall:

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

() Establish policies and standards for the effective, efficient, and economical
operation of the Department, in accordance with the programs of goverment,

{c) Rationalize delivery systems necessary for the effective attainment of the
objectives of the Department, including the creation of regional and/or field offices;
(@) 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:

(8) Coordinate with local government units (LGUs), other agencies, and public and
‘private interest groups, including nongavemment organizations (NGOs) and
people's organizatians (POs) on Department policies and initiatives;

(c) Advise the President of the Republic of the Philippines on the promulgation of
executive and administrative orders and regulatory and legislative proposals on
Matters pertaining to ICT development and

(h) Formulate such rules and regutations and exercise such other powers as may
be necassary to implement the objectives and purposes of this Act; and

{) Perform such other tasks as may be provided by law or assigned by the
President of the Republic of the Philippines from time to time.

SEC. 9. Council of Chief Information Officers. — Every department and agency of
the national government or its equivalent office in any constitutional body, state
collage or university, and government-owned and controtlad corporation, is hereby
directed ta designate at least the thirc ranking official as a Chief Information Officer.
‘The said officers shall collectively form the Council of Chief Information Officers.
‘The Secretary shalt be the Chairman of the Council.

The Council shall serve as a coordinating body to assist the Secretary in
Implementing plans for a unified govemmentwide portal, set standards for
government websites, and establish rules and guidelines for the provision of
information and other ICT e-government initiatives.

In performing its duties, the Council shall also consult regularly with Chief
Information Officers of local goverment units on ICT-related activities through
their national association and/or through the leagues of local governments.

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

SEC. 10. E-Govemment Fund. - There shalt be an e-govemment fund to be
administered by the Department, which is a Special Account in the General Fund,
created specifically to fund cross-agency government ICT projects which shail be

°c)


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 intemet or other
emerging technologies. _ . -—

‘The Fund may be augmented by donations, contributions and grants from local or
intemational funding agencies.

tn 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 evahation system of projects funded under
the e-government fund, shall be formulated, developed and published by the
Department, in coordination with the Department of Budget and Managament
(DBM). In the preparation of said guidelines, consultations shall also be made with
the respective umbrea organizations of the information technology and
communications sector. . n
The implementing agencles granted funding under the e-government fund shall
maintain primary responsibifity over the use and management of the allocated
funds. The agency concemed shall regularly submit performance and monitoring
reports on the use of said funds to the Department of Information and
Communications Technology (DICT).

In connection with the implementation of the e-government fund, the Department
shall provide or arrange the appropriate or relevant [CT education of raining
program for government ICT 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 toa prescribed content and budget.

SEC. 11. Periodic Performance. — The Secretary is hereby required to formulate
and enforce a system to penodically and objectively measure and evaluate the
performance of the Department and to submit the same annually to the Preskdent
of the Republic of tha Philippines and to appropriate Congressional Committess.

SEC. 12. Transfer of Agencies and Personnel. - The following agencies and
institutions are hereby absorbed in the Department:

(a) All operating units currently existing-in the Commission on Information aid ——

Communications Technology (CICT), which directly support communications,
including the Telecommunications Policy Planning Office;

() The National Computer Center under the Department of Science and
Technology (DOST); and

{c) AB offices, services, divisions, units, and personnel of the Department of
Transportation and Communications (DOTC) with functions and responsibilities
dealing with communication.

All offices, services, divisions, units and personnel not otherwise covered by this
Act for transfer or absorption into the new Department shail continue to perform
their transportation-related functions and therefore, shali be retained under the
Department of Transportation and Communications which |s. hereby Tenamed the
Department of Transportation.

The foregoing transfer of powers and functions shall include all applicable funds
and appropriations, records, equipment, property and personnel as may be
necessary.

af


The following agencies are hereby attached to the Departmant for policy and
program coordination and shall continue fo operate and function in accordance
‘with their charters, laws or orders creating them, and-with such other functions and
responsibilities mandated by law and insofar as they are consistent with this Act:

{a) National Teleoommunications Commission;
{b) Philippine Postal Corporation; and
{c} Telecommunications Office (TELOF).

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

SEC. 13. 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.

‘Those incumbent employees whose positions are not Included in the new position
structure and staffing pattem of the Department, or who are not re-appointed shall
be deemed separated from the service, whether ‘permanent, temporary,
contractual or casual employees, and shal, within ninety (90) days therefrom,
receive the retirement benefits to which they may be entitled under existing laws,
Tules and regulations.

SEC. 14. Appropriations. - The amount needed for the initial implamentation of
this Act shall be taken from the current year's appropriations of the Commission on
Information and Communications Technology and all government agencies herein
absorbed or attached to the Department. Thereafter, the amount needed for the
eperation and maintenance cf the Department and Its line agencies shall be
Included in the annual General Appropriations Act.

‘The budget of the Philippine Postal Corporation shall be charged from its intemally
generated funds,

SEC. 15. Transitory Provisions. — Within three (3) months after the approval of this
Act, the organizational structure including the creation of new 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 he shall establish for the purpose. ~

‘The new organizational structure and staffing pattem 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 of the
Philippines or the Secretary of the Department as the case may be, in accordance
with the civil service rules and regulations.

SEC. 16. Implementing Rules and Regulations. — The Department shall
Peomulgate and issue such mules and regulations and other issuances within ninety
(90) days from the approval of this Act as may be necessary to ensure Its effective
implementation.

SEC. 17. Separability Clause. — 1 any provision of this Act shall be declared

unconstitutional or invalid, the other provisions not otherwise affected shall remain
in full force and affect.



RIRe:
bears

1 apeESs



The immediate passing of this bill will enable both the state and ite
constituents to take advantage of ICT’s power and ensure that the benefits of
developing the country*s core }CT competencies, from the construction of vital
information and communications infrasiructuve to forging linkages among various
sectors that rely on ICT, will accrue to the pubtic-at-large,

In-view of the foregcing, imniediate
requested.

passege of thic bill is earnestly

naan
BEN P. EVARDONE

Represeatative, Lone District of Eastem Samar



6)

___FIETEENTH CONGRESS ——
OF THE REPUBLIC OF THE PHILIUPINES }
First Regular Session i)

HOUSE OF REFRESENTATIVES

Howse oat rio, 1896

Intraduced by Represcatative Bea P, Evardone

AN ACT
CREATING THE DEPARTMENT OF INFORMATION AND
COMMUNICATIONS TECHNOLOGY, DEFINING ITS POWERS AND
FUNCTIONS, APPROPRIATING FUNDS THEREFORE, AND FOR OTHER
PURPOSES

Be it enacted by the Senate and the 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 Technolagy Act of 2010."

SEC. 2. Declaration of Policy. Itis hereby declared the policy of the State:

a To ensure the provision of a strategic, reliable, cost-efficient and citizen-centric
information and communications technology (ICT) infrastructure, systems and resoucecs
‘as -nstruments of nation-building and global comp2titivencss; .

b. To foster @ policy environment that will promote a broader market-led
development of the ICT and ICT-enabled services sectors, « level playing field,
partnership between the public and the prvate sectors, strategic alliance with forsign
+ investors and balanced investments between high-growth and economically-depressed

areas;

4. To ensure universal access and high-speed connectivity at fair and reasonable
casts;
€ To ensure the availability and accessibil:ty of information and communications
secvice in areas not adequately served by the private sector; -—_—_.
£. To promote the widespread usc and deve-opment of emerging ICT; «
g. To promote and assist the develapment of focal ICT content, applications and
services; ’
. hi. To establish a strong and effective regulatory system that will ensure consumer
protection and welfare and foster a healthy competitive environment;
|. To promote the development of ICT expertise in the country's human capital 10
enable Fifipinos to compete in a fast-cvolving information and communications age: -
J. To ensure the growth of the ICT and ICT-enabled services sectors; =
k to preserve the rights of individuals to privacy and confidentiality of their
pessonal informatign;
|. To encourage the use of {CT for the development and promotion or the
‘country’s arts and culture, history, education, public health and safety and other socio
civic purposes;
m. To sustain the development of the national postal system as an integral
component of the overall development of ICT in the country;
nn. To ensure the security of ICT infrastructures and assets of individuals and
‘businesses stored therein; =
©. To empower, through the use of ICT, the disadventaged segments of the
Population, including persons with disabilices, sach as the physically, emotionally or
mentally chaltenged.

SEC. 3, Definition of Terms. As used in this Act, the following terms are defined
8s follows:



4. “Information and Communications fechnology™ or “ICT” shall mean -the -
otatity of electronic means 10 collect, store, process and present information to end-users
in support of their activities and services. it consists of compoter systems, office systems
and consumer electronics, as well as networked information infrastructure, the
components of which include telephone, cable, wireless and satellite systems, the
internet, fax machines and computers;

b. “Electronic Government” or “E-Gov. ronuent” shall mean the application of

ICT im government processes to bring about efficient, respon:
ard transparent government service;

“ICT Sector” shall mean ticcommunication operators, ICT equipment
manufacturers, ICT solution providers tntemet service providers, ICT taining
institutions, software developers and ICT. shled secvice providers:

4. “ICT-enablest Services Sectur” vill mean offhoring and outsourcing service
providers, including call centers, back of” cx processing, software development, medical
or legal cranscription, animation, game development, engineering or architectural des
and other services that require the intrinsic use of @ networked information infrastructures

©. “Chief Information Officer” or C10" shall mean the title given to the board
evel heed of [CT in an organization responsible for the development and maintenance of
the organization's ICT systems end applicetions,

ethical, accountable

SEC. 4. Creation of the Deparment of Information and Communications
Technology (DICT) — There is hereby created the Department of Information and
Cotamunications Technology. Hereafter referred to as the Department, which shall carry
out the above-declared policy and assure the communications-related powers and
functions of the Department of Transportation and Communications (DOTC),

SEC. 5. Mandse ~ The Department sill be the primary policy, planaing,
coordinating, implementing, regulating, anc administrative entity of the executive branch
‘of the Government that will plan, promote and help develop the country’s ICT sector,

SEC. 6 Powers and Functions. The Department shall exercise the following
Powers and functions:

2. Formulate, recommend and implement national policies, plans, programs and
guidelines for the ICT and [CT-enabled services sectors that will promote wider use and
development of ICT and provide increased and convenient access by the citizens to the
same;

». Initiate, harmonize and coordina:: all LT plans and initiatives of government
agencies to ensure overall consistency and harriony with e-government objectives in
particular, and national objectives in generz!

. Represent and negotiate for- Philippine amerest on matters pertaining to 1CT tn
international bodies;

@. Develop and maintain national ICT development plans and establish and
adcninister comprehensive and integrated programs for {CT with due consideration to
advances on convergence and other emerging technologies; and for this purpose, may
invite sny agency, corporation or organization, whether public or private, whose
development programs iz ICT are an integral part thereof, to participate and assist in the.
Preparation and implementation of such programs. :

©. Promote knowledge, information and resource sharing, database building and
agency necworking linkages amnong various goverument agencies;

f. Ensure the development and protection of an inteyrated government
information and communications infrastrucnsre and coordinate.all relevant government
entities, taking into consideration the inventory of existing manpower, plans, programs,
Proposais, software and hardware, and the irstalled systems and programs; * :

& Provide an integrated framework in cder to optimize all government ICT
resources and networks and the identification, and prioritization of all government
systems and applications as provided for in the Goverment Information Systems Plan
{GISP) and the Medium Term Philippine Development Plan (MTPDP). .

h Coordinate and support the generation and acquisition of necessary resources as
may be appropriate for the development, marketing, growth and competitiveness of the
Philippine ICT and ICT-enabled services sectors, ,

i. Develop, implement and improve, in coordination with concemed government
agencies and industry associations, the governments ICT capabilities and determine the



Personne! qualifications and other standards essential to the effective development and
operation of goveriment information and conununtications infrastructure;

J, Encourage and establish guidelines for the use of public-private partnerships in
the implementation of ICT projects for government agencies in order to fast-track said
projects snd provide reasonable return-on-investment for the private sector, including but
fot limited to Build-Operate-Transfer (BOT) mechanisms;

k. Assess, review and support ICT research and development programs of the
government in coordination with the Departinent of Science and Technology and other
institutions concerned;

1. Establish and prescribe rules anc! regulations for the establishment, operation
and maintenance of {CT infrastructure in m:scrvec and underserved areas, in consultation
with the private sector, locat government u.ts (LGUs) and the academe;

m. Provide policy-direction and guisutec in IT-related aspects for the operation
and maintenance of a nationwide postal systera chat shall include mail ‘processing,
delivery services, and money remittance and payment services;

1. Assist and provide technical expertise in the development of guidelines to the
Intellectual Property Office (170) in the enforcement and administration of laws,
sta dards, rutes, and regulations governing (CT ; -

0, In coordination with concerned agencies, the private sector and relevant
international bodies, ensure consumer protection and welfare, and protect the rights of
consumer and business users to privacy, security and confidentiality;

p. Harmonize, synchronize and coordinate with appropriate agencies all ICT and
e-commerce policies, plans and programs;

@. Coordinate with the Department of Trade and tndustry in the promotion of
trade and investment opportunities and protection of investor interests in the [CT and
ICT-enabled services sectors;

1. In coordination with concerned agencies, promote strategic partnership and
alliances among and between local and international [CT firms and institutions, research.
and development, educational and Uaining institutions, and technology providers,
developers and manvfacturers, to speed up industry growth and enhance global
comperitiveness;

5. [a coordination with concerned agencies, plan and implement such activities as
may be appropriate to enhance the competitiveness of Philippine workers, firm:
small and medium enterprises in the global ctarkets for ICT and ICT-enhanced services

t. In coordination with concemed agencies, establish and recommend the adopti
or qualification standards and enhance the carser oppornmities of [CT workers in
government;

11, In coordination with the Deparment of Education, Commission on Higher
Education and Technical Education and Skills Development Authority. formulate policies
and initiatives to promote ICT and ICT-entanzed services education and the
development, promotion and application of ICT in educstion in a manner that is
sonsistent with the national goals and objectives, and responsive to the human resource
needs of the ICT and ICT-enabled services sectors.

v. Facilitate the creation of the Chief Information Officer (CIO) Council, which
shall consist of C¥Os of national government agencies (NGAS) with at least the rank of
Assistant Secretary, with the Secretary serving as the Chairman, (o assist the Department
in implementing e-government initiatives;

w, Administer the E-Govemmen: Fund as specified in Section {5 and, in
coordination with the Department of Budget and Management, establish guidelines for
the disbursement and management of the E-Government Fund, inciuding the monitoring
and evaluation system of projects funded under the said fund.

SEC. 7. Composition. The Department of Information and Communications
‘Technology shatt be headed by a Secretary. The Department proper shall be composed of
the Office of the Secretary, the offices af the Undersecretaries and the Assistant
Secretaries,

SEC. &. Secretary of information and Communications Technology. The
‘Secretary shall be appointed by the President, subject 1o confirmation by the Comumission
‘on Appointments.

‘The Secretary shall have the fallawing functions:

and

g]


oe

b. Provide executive direction and supervision over the
—Departinent and its attached agencies;
h. Establish policies and standards for the effective, cfficient and economical
‘operatign af the Depariment, in accordance with the programs of Government;
'p Rationalize detivery systems necessary for the effective attainment of the
objectives of the Department in accordance with die programs of Government; :
1. Review and approve request for financial and manpower resources ofall
operatidg offices of the Department;
©. Designate and appoint officers ard employees of the Department, excluding the
Undersecretaries. Assistant Secretaries, and Regional and Assistant Regional Directors,
in accordance with the Civil Service laws, rules and regulations; '
: f: Coordinate with LGUs, other agencies and public and privat
including non-government organizations (NGOs) and people’s organizations (PQs) on *
Department policies and initiatives,

&. Advice the President on the promutgation of executive and adminiswative
orders and regulatory and legislative proposals on matters. pertaining to ICT
development; :

hh Serve as a member of the Government Procurement Policy Board ax
established by Repubtic Act No. 9184;

i, Serve as the Chairman of the Board of the Philippine Postal Corporation in
accordance with Republic, Act No. 7354 and the Corporalion Law;

4. Formulate such rules and regulations and exercise such other powers as may be
required to implement (be objectives of this Act,

k. Perform such other tasks as may be provided by Law ar assigned by the
President from time to time.

SEC. 9. Undersecretaries. The Secretary shall be assisted by three (3)
Uniersecretaries, whicl shall be appointed by the President upon the recommendation of

2 Seoretary: provided that one (1) of the Undersecretaries shall be 9 career officer
coming from ranks of existing government information and communications agencies -
and offices or qualified ICT peafessionals in the private sector.

operations of the

SEC. 10, Assistant Secretaries. The Secretary shall be assisted by three (3)
Assistant Sceretaries who shall be careers officers appointed by the President upon the
recammendation of the Secretary.

SEC. 11, Qualifications. No person shall be appointed Secretary, Undersecretary
or Assistant Secretary of the Department unless he is a citizen and resident of the
Philippines of good moral character, and of proven integrity.

SEC, 12. Regional Offices, The Department shall be authorized to establish,
‘operate, and maintain Regional Office in each of the administentive regions of the country
as the need arises. The regional office shali be headed by a Regional Director, who may
he assisted by one (1) Assistant Regional Dire-tor, The Regional Offices shall have,
within their respective administrative regiorg, the following functions:

1. Implement laws, policies, plans, programs, projects, rules and regulations of the
Department;

b, Provide efficient and effective service to the people;

©. Coordinate with regional offices of other Departments, offices, and agencies;

d. Coordinate with LGUs;

©. Perform such other functions a1 may be provided by law or assigned by the
Secretary.

SEC. 13. Transfer of Agencies and Mersonne!.

a. The following agencies are hereby abolished, and their powers and functions,
applicable funds and appropriations, records, equipment, property, and personnel
transferred fo the Department

1. All operating units currently existing im che Commission on information and
Commuications Technology (C{CT);

2. National Computer Center (NCC);

3. Telecommunications Ofhce (TELOF),



oe Qu 9

4. Atl operating-smits of the Department of Transpartation and Communications.
{DOTC) with functions and responsibilities dealing with communications.

All offices, services, divisions, units anc personnel not otherwise covered by this
‘Act for transfer to the Department shall be retained under the DOTC, which is hereby
renamed the Department of Transportation.

b. The folowing agencies are hereby attached to the Department for policy and
program coordination, and shall continue to operste 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;
2. Philippine Postal Corporation.

&, The laws and rales on government reorganization as provided for in Republic
Act No. 6656, otherwise known as the Reorganization Law, shall govem the
reorganization process of the Department,

SEC. 14. Postal Regulatory. Authority. The exclusive power and authority t0
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. E-Government Fund There shall be an E-Government Fund to be
administered by the Department. which is a Special Account in the General Fund, created
specifically to fund cross-agency and citizen-centric government ICT projects. The Fund
shatl be used to support and co-finance projects that enabie the government to expand its
ability to conduct activities electronically and pravide frontline services through the
development and implementation of innovative uses of the Intemet or other emerging
technologies.

+ However, internal IT systems mesnt to support the agencies’ IT operations shat!
tbe charged against the agencies’ own budgetary allocation,

SEC. 16. Implementation of the RPWeo. In consonance with the objectives of
‘Administrative Order No. 332 and Republic Act No. 8792, the primary responsibility
over the implementation of the RPWeb or the electronic online network of the
government which shall serve as initial platform of the Government. Information
Infrastructure (GI), is hereby transferred to the Department. For this purpose, the
Department shall continue utilization of all funds, monies, interests, and properties
‘outstanding and sccruing-frourthe RPWeb, ~~ -

SEC. 17. Sectoral and industry Tusk Forces. The Department may create sectoral
and industry task forces, technical working grous, advisory bodies or committers for the
fanherance of its objectives. Additional private sector representatives, such as from
academe and federation of private industries directly involved in ICT, as well as other
NGAs, LGUs and government owned and controlled corporations (GOCCs), may be
appointed (0 these working groups. Gavernment IT professionals may also he tapped tn
partake in the work of the Department through these working groups.

SEC, 18, Structure ond Staffing Pattern The Department shall determine its
organizational structure and create new divisions or units as i¢ may deem necessary, and
shall appoint officers and employees of the Department in accordance with the Civil
Service Law, rules, and regulations,

SEC. 19, Magna Caria. Employees of the Department shall he covered by
Republic Act 8430, which provides a magna carta for scientists, engineers, researchers
and othr science and technology personnel in the government.

SEC. 26. Separation from Service. Employees separated fiom the service as a
result of this reorganization shall, within ninety (90) days thereftom, receive. the
‘separation und retirement benefits to which they may be entitled under Executive Order



Mea bese

No. 366, Provided that such seperation pay and retirement benefits shall have priority of
payment out of the savings of the department or agency.

SEC. 21. Appropriation. The amount needed for the initial implementation of this
‘Act shall be taken from the current fisca! year’s appropriation af the CICT through the
Office of the President and all agencies herein atsorbed by or attached to the Department.
‘Thereafter, the a moun! needed for the operation and maintenance of the Department shall
be included in the General Appropriations Act, provided that for the next fiseal year, the
amount shall he One Bitlion Two Hundred Million Pesos (P1,200,000,000.00).

SEC. 22. Repealing Clause. AN laws. decrees, executive orders, cules and
regulations and other issuances or parts thereaf which sre inconsistent with this Act are
hereby repealed, amended, or modified accordingly. -

SEC. 23. Separability Clanse, Mf any provision of this Act shalt be declared
unconstitutional or invalid, the other provisions not otherwise affected shall remain in fli
ferve and effect.

SEC. 24. Effectivity Clause. This Act shalt take effect fiftecn (15) days from its
Publication in at least owo (2) papers of general circufation.

Approved



Re . .

House of Representatives

COMMITTEE ON GOVERNMENT MORENO a ee
‘Conumittee Affairs Deparunent = a

3” Flr, Ramon V. Mitra Bldg, Batasan Complex, Cé Ms, 1126 Quezon City ~

Tel, Nos. +632 9315736 (direct line) +632 9315001 GbcalyaqasSE i) - .
cu

March 21, 2011

MEMORANDUM

ae 3
FOR ‘The Honorable SPEAKER aoa
THRU ‘The DEPUTY SECRETARY GENERAL
Conunittee Affairs Department

RE SPOT REPORT ON THE JOINT MEETING OF THE COMMITTEES ON
GOVERNMENT REORGANIZATION AND INFORMATION | AND
COMMUNICATIONS TECHNOLOGY ON MARCH 21, 2013, 2:30 £M AT
CONFERENCE ROOMS 14 AND 15, RV MITRA BUILDING, HOUSE OF
REPRESENTATIVES, QUEZON CITY

Here are the highlights of the abave-mentioned meeting for your Houor's information.

1. The Joim Committees today approved the Covnmittes Report on the substitute bill for House Bill Nos
16. 64, 498, 1230, 1508, and 1896 that all sought to create she Department of information and
Cominunications Technology.

2. The substitute bill incorpocated the approved amendinents sponsored by Ure Honorable Tomas V
‘Apacible thal tic creation of the acganizational structure of the Departinent and ue formulation of the
baplemeniing Regulations shall be completed within sixy (60} to minety (90) days and onc teendred
twenty (120) days. respectively, after the approval of the Act

3. The joint Commitless also approved the mocion of the Honorable Rufus Radriyuey that all Menibers
resent shalt be named as co-anthors of the bill

‘Noted by:

OFFICE OF THE DEP. . LAKE
ce: The Deputy Speaker
“The Chairperson, Commitee on Riles RAUL A. DA.

‘The Secretary General RECEIVED

“The Exccutive Director, CAD $34 ca _—HOUSE OF REPRESENTA
Tv
‘The Deputy mE PRESENTATIVESDATE. BY eee

‘The Service Di 4
he Service DUNSion CRG of the Secic

(Cc