REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES

Quezon City
VED
SIXTEENTH CONGRESS 02 JUL 2013
First Regular Session or
House BillNo. __ 937

Introduced by MAGDALO Party List Representatives FranciseoAshley L: Acedillo’and
Gary C. Alejano

Explanatory Note

‘The Philippines has a significant advantage among other Asian countries in ICT ~ an English
speaking, highly educated, easily trainable, and skilled workforce with a growing track record of
successful ICT work; a basic policy environment that is right for business; government
commitment at the highest levels, with strong private sector support in the pursuit of a common
ICT agenda; and rising entrepreneurial abilities suitable for a globalizing economy. With its rich
human resources and strategic location in Asia and the Pacific, the Philippines has the potential
to fully benefit from an ICT-driven development strategy.

It is therefore necessary for the government to build the country’s ICT infrastructure, the so
called national information superhighway, to help facilitate the storage of massive amounts of
data and to provide a faster and free flow of information within the Philippines and the rest of the
world.

Section 24, Article II of the 1987 Philippine Constitution declares that the State recognizes the
vital role of communications and information in nation-building. To implement this State policy,
a Department of Transportation and Communications was created under the Administrative Code
of 1987 to maintain and expand a viable, efficient, safe and dependable transportation and
communications systems as effective instruments for national recovery and economic progress.
However, due to the divergent issues on transportation and communications, a single department
should focus on each one to intensify government initiatives and cope up with the demands of
globalization.

This bill therefore seeks to create the Department of Information and Communications
Technology as the primary policy, planning, coordinating, implementing, regulating and
administrative entity of the executive branch of the Government that will promote, develop, and
regulate integrated and strategic Information and Communication Technology systems and
reliable and cost-efficient communication facilities and service.

The measure hopes to ensure that the communications and technology sector shall be given
priority in the government. It also hopes to provide the proper environment needed in order to
strengthen this sector and propel the country’s edge in ICT.

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

Meg

by "ISCO ASHLEY L. ACEDILLO GARY C. ALEJANO.


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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

53
House Bill No. 937

Introduced by MAGDALO Party List Representatives Francisco Ashley L. Acedillo and
Gary C. Alejano

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 in Congress
assembled:

SECTION 1. Short Title. - This Act shall be known as "Department of Information and

Communications Technology Act of 2013".

Sec. 2. Declaration of Policy. — It is 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 resources as
instruments of nation-building and global competitiveness;

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

c. To foster and accelerate the convergence of ICT facilities;

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

. To ensure the availability and accessibility of information and communications
services in areas not adequately served by the private sector;

£ To promote the widespread use and development of emerging ICT;

g, To promote and assist the development of local ICT content, applications and services;


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h. To establish a strong and effective regulatory system that will ensure consumer
protection and welfare and foster a healthy competitive environment;

i. 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;

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 personal
information;

1. To encourage the use of ICT for the development and promotion of 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;

n, To ensure the security of ICT infrastructures and assets of individuals and businesses
stored therein;

o. To empower, through the use of ICT, the disadvantaged segments of the population,
including persons with disabilities, such as the physically, emotionally or mentally challenged,
and;

p. To assist in disaster risk reduction management thru ICT in warning people of disasters

thru proper dissemination of information.

SEC. 3. Definition of Terms. —

a) “Information and Communications Technology” or ICT 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 computer 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” ot “E-Government” shall mean the application of ICT
in government processes to bring about efficient, responsive, ethical, accountable and transparent

government service;


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<) “ICT Sector” shall mean telecommunications operators, ICT equipment
manufacturers, content providers, ICT solution providers, Intemet service providers, ICT training
institutions, software developers and ICT-enabled service providers;

) “ICT-Enabled Services Sector” shall mean offshoring and outsourcing service
providers, including call centers, back office processing, software development, medical or legal
transcription, animation, game development, engineering or architectural design, and other
services that require the intrinsic use of a networked information infrastructure, and;

e) “Chief Information Officer” or “CIO” shall mean the title given to the board
level head of ICT 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-declared policy and
assume the communications-related powers and functions of the Department of Transportation

and Communications (DOTC).

SEC. 5. Mandate. — The Department shall be the primary policy, planning, coordinating,
implementing, regulating and administrative entity of the executive branch of the Government

that will plan, promote and help develop the country’s ICT sector.

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

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

b) _ Initiate, harmonize and coordinate all ICT plans and initiatives of government
agencies to ensure overall consistency and harmony with e-government objectives in particular,

and national objectives in general;


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©) __ Represent and negotiate for Philippine interest on matters pertaining to ICT in
international bodies;

4) Develop and maintain national ICT development plans and establish and
administer comprehensive and integrated programs for ICT with due consideration to advances
on 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 thereof, to participate and assist in the preparation and implementation of such
programs;

e) Promote knowledge, information and resource sharing, database building and
agency networking linkages among various government agencies;

f) Ensure the development and protection of an integrated government information
and communications infrastructure and coordinate all relevant government entities, taking into
consideration the inventory of existing manpower, plans, programs, proposals, software and
hardware, and the installed systems and programs;

2) Provide an integrated framework in order to optimize all government ICT
resources and networks and the identification and prioritization of all e-government systems and
applications as provided for in the Government 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 government's ICT capabilities and determine the
personnel qualifications and other standards essential to the effective 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 retu-on-investment for the private sector, including but not limited to

Build-Operate-Transfer (BOT) mechanisms:


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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 concerned;

1) Establish and prescribe rules and regulations for the establishment, operation and
maintenance of ICT infrastructure in unserved and underserved areas, in consultation with the
private sector, local government units (LGUs) and the academe;

m) Provide policy-direction and guidance in ICT-related aspects for the operation and
maintenance of a nationwide postal system that shall include mail processing, delivery services,
and money remittances and payment services;

n) 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
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;

q) 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;

1) In coordination with concerned agencies, promote strategic partnership and
alliances among and between local and international ICT firms and institutions, research and
development, educational and training 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 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:


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t) In coordination with concerned agencies, establish and recommend the adoption
of qualification standards and enhance the career opportunities of ICT workers in government;

u) In coordination with the Department of Education, Commission on Higher
Education, and Technical Education and Skills 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 ICT-enabled services
sectors;

v) Facilitate the creation of the Chief Information Officer (CIO) Couneil, which shall
consist of CIOs of national government agencies (NGAs) with at least the rank of Assistant
Secretary, with the Secretary serving as the Chairman, to assist the Department in implementing
e-government initiatives, and;

w) Administer the E-Government Fund as specified in Section 15 and, in
coordination with the Department of Budget and Management, establish guidelines for the
disbursement and management of the E-Government Fund, including the monitoring and

evaluation system of projects funded under the said fund.

SEC. 7. Composition. - The Department of Information and Communications
Technology shall be headed by a Secretary. The Department proper shall 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 confirmation by the Commission on
Appointments.

The Secretary shall have the following functions:

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

Department and its attached agencies;
b) Establish policies and standards for the effective, efficient and economical operation

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


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©) Rationalize delivery systems necessary for the effective attainment of the objectives
of the Department, in accordance with the programs of Government,

d) Review and approve request for financial and manpower resources of all operating
offices of the Department;

e) 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;

f) Coordinate with LGUs, other agencies and public and private interest groups,
including non-government organizations (NGOs) and people's organizations (POs)
on Department policies and initiatives;

2) Advice the President on the promulgation of executive and administrative orders and
regulatory and legislative proposals on matters pertaining to ICT development;

h) 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;

i) Formulate such rules and regulations and exercise such other powers as may be
required to implement the objectives of this Act, and;

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

from time to time.

SEC. 9. Undersecretaries. - The Secretary shall be assisted by three (3) undersecretaries,
who shall 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.


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SEC. 10. Assistant Secretaries. — The Secretary shall be assisted by three (3) assistant
secretaries who shall be career officers appointed 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 of proven integrity.

SEC. 12. Regional Offices. - The Department shall be authorized to establish, operate,
and maintain 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 assigned by one
(1) Assistant Regional Director. The Regional Offices shall have, within their respective
administrative regions, the following functions:

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

b. Provide efficient and effective service to the people;

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

d. Coordinate with LGUs, and;

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

Secretary.

SEC. 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 Information and Communications
Technology Office (ICTO);
2. National Computer Center (NCC);

3. Telecommunications Office (TELOF);


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4. All operating units of the Department of Transportation and Communications

(DOTC) 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.

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, and;

2. Philippine Postal Corporation.

c. The laws and rules 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 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. 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 find cross-agency and citizen-centric government ICT projects. The Fund 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 Inteet or other emerging technologies. However,
internal IT systems meant to support the agencies’ IT operations shall be charged against the

agencies’ own budgetary allocation.


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SEC. 16. Implementation of the RPWeb. — 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 Infrstructure (GI1), is hereby transferred
to the Department. For this purpose, the Department shall continue utilization of all funds,

monies, interests, and properties outstanding and accruing from the RPWeb.

SEC. 17. 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 well as other NGAs, LGUs and government
‘owned and -controlled corporations (GOCCs), may be appointed to these working groups.
Government IT professionals may also be tapped to partake in the work of the Department

through these working groups.

SEC. 18. Structure and Staffing Pattern. - The Department shall determine its
organizational structure and create new divisions or units as it 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 Carta. - Employees of the Department shall be covered by Republic
‘Act No. 8439, which provides a magna carta for scientists, engineers, researchers and other

science and technology personnel in the government.

SEC. 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.

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SEC. 21. Appropriation. — The amount needed for the initial implementation of this Act
shall be taken from the current fiscal year’s appropriation of the former CICT through the Office
of the President and all agencies herein absorbed by or attached to the Department. 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 shall be One

billion two hundred million pesos (P1,200,000,000.00).
SEC. 22. ~ 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. 23. Separability Clause. — If any provision of this Act shall be declared
unconstitutional or invalid, the other provisions not otherwise affected shall 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,

i