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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

5388.

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

House Bill Ne

EXPLANATORY NOTE

Information and Communications Technology (ICT) is a vital tool in the development of an
electronic society. Being connected digitally provides us with easy access and fast links, thus,
making the use of ICT highly essential to our economic growth, educational advancement,
awareness enhancement, market facilitation, and public participation.

This bill proposes the creation of eighty one (81) nodes nationwide situated in areas that are
development corridors in order to pump prime economic activities and promote development in
other growth areas of the province. It hopes to minimize the so-called digital divide as well as
speed up the setting up ofa wireless communications infrastructure.

With ICT Hubs, provinces will be able to harness their potentials in terms of making their
provinces investor friendly. It is expected that they will electronically promote the provinces and
provide nerve centers to connect the same to the various agencies of the national government
thereby pushing the growth of e-Government locally and nationally. More importantly, with
these Hubs, the archipelagic feature of the country can be bridged electronically thereby creating
"One Philippines.”

As declared in Article 11 Section 24 of the Constitution, "The State recognizes the vital role of
communication and information in nation-building." Therefore, it is in pursuance of this policy
and the consideration of the above premises that the passage of this bill is earnestly requested.


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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No. 53828

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

AN ACT
ESTABLISHING AN ICT HUB IN EVERY PROVINCE 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 “One Philippines Act of
2017”.

SEC.2. Declaration of Policy. — It is the declared policy of the State to recognize the
vital role of communication and information in nation building. Toward this end, the State shall
provide for the creation and establishment of Information and Communications Technology Hub,

hereinafter referred to as ICT Hub, in every province.

SEC. 3. Location of ICT Hub. - Pursuant to the provincial development plan, the
province shall identify the area where the ICT Hub shall be established: Provided, That, the
area/s shall not be in the capital or urban center of the province: Provided, further, That, the area

is owned by the provincial government.

SEC. 4. Provincial ICT Plan, - The provincial board shall formulate and approve an ICT
Plan for the province taking into consideration its comparative advantage, funding mix, private

sector involvement, incentives to locators, local tax incentives, among others.

SEC. 5. Digital Infrastructure Fund. - A Digital Infrastructure Fund, hereinafter
referred to as Fund, in the amount of Fifty Billion Pesos (Php50,000,000,000.00) is hereby
appropriated as seed capital and national counterpart from the national government for the
establishment of the ICT Hub: Provided, That the Fund shall be disbursed in a pro-rata manner
based on the following criteria: telephone density, degree of digital divide, ICT penetration ratio,
presence of new alternative backbone networks, science and technology parks and industrial
estates with an ICT focus, among others.


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Subsequent appropriations shall be annually provided for in the General Appropriations
Act.

SEC. 6. Private Sector Incentive. - Any locator to the ICT Hub shall be given a 5-year
tax break from national taxes: Provided, That these locators are part of the Global 0 & O
Industry (Off-shoring and Outsourcing), such as, but not limited to: Animation, Customer
Contact, Back Office, Software Development, Medical & Legal Transcription and other Cyber
services: Provided, further, That sixty percent (60%) of its labor force shall be recruited locally:
Provided, finally, That, corporate income shall be declared and taxes shall be paid locally on the
sixth (6") year of its existence.

SEC. 7. Implementing Agency. - The Department of Information and Communications
Technology shall formulate the necessary implementing rules and regulations of this Act in
consultation with the League of Provinces.

SEC. 8. Separability Clause. - Any provision or provisions of this Act that may be
declared unconstitutional or invalid shall not have the effect of nullifying other portions or
provisions hereof as long as such remaining portions or provisions can still subsist and be given
effect in their entirety.

SEC. 9. Repealing Clause. - All laws, ordinances, rules, regulations, and other issuances
or parts thereof, which are inconsistent with this Act are hereby repealed or amended

accordingly.

SEC. 10. Effectivity. - This Act shall take effect fifteen (15) days from its publication in
the Official Gazette or in any two (2) newspapers of general circulation.

Approved,