SIXTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES — )
First Regular Session )

Sven

cl

HOUSE OF REVRESEN ares

Eee

Introduced by Representative Ben P, Evardone
Lone District, Eastern Sam;

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EXPLANATORY NOTE

This bill seeks to create a Department of Information and Communications Technology
(DICT) in light of the imminent need to establish a strategic, reliable, cost-efficient and citizen-centric
ICT foundation that will tap market-driven solutions to make the country and its citizens globally
competitive, promote balanced national economic growth and support nation-building.

ICT, as we know it today, encompasses every type of electronic medium that stores, processes
and transmits information from creators to end-users. This largely comprises the Internet, which has
become the world’s major highway for information and communications and has practically
revolutionized how we think about and behave in the world we live in. And despite the Philippines?
overall socioeconomic condition, Filipinos have shown their proficiency in taking advantage of ICT.
based platforms. ‘This observation has never been more pronounced with the country’s rapi
‘emergence as one of the world’s most prolific business process outsourcing (BPO) hubs, which has
then paved the way not only for millions of dollars of investments to enter the local economy but also
for providing scores of Filipinos to get employment without having to leave their homeland and
families.

While the Commission of Information and Communications Technology (CIC) already
exists by virtue of Executive Order No. 269, its current mandate does not measure up to the original
intent the Constitution has framed under Section 24, Article II, wherein the State is cognizant of the
vital role communication and information play in nation-building, Even E,O. 269 explicitly stated that
the CICT would only serve as a “transitory” body that is advisory in nature and would eventually be
superseded by the DICT pending the passage of formal legislation that will create a specific Cabinet
position to carry out ICT-related tasks in behalf of the government,

Among the salient features of the bill are:

* Transferring the communications aspect from the Department of Transportation and
Communications (DOTC) to the newly-created Department of Information and
Communication Technology, along with it existing agencies such as the National
‘Telecommunications Commission and the Philippine National Postal Corporation;

* Allowing the DICT to draw up various economic incentives, such as build-operate-transfer
(BOT) schemes that draw strength from government's aims to establish a solid ICT
infrastructure backbone, which will then sustain the country’s information and
communication requirements in the years to come; and

+ Ensure faimess with regard to protecting the rights of consumers and business to privacy,
security, and confidentiality,



‘The immediate passing of this Bill will enable both the State and its constituents to take
advantage of ICT’s power and ensure that the benefits of developing the country’s core ICT
competencies, from the construction of vital communications and information infrastructure to
forging linkages among various sectors that rely on ICT, will accrue to the public-at-large.

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

BENEVARDONE
Representatives


SIXTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES — )
First Regular Session )

HOUSE OF REPRESENTATIVES

1815

House Bill No.

Introduced by Representative Ben P, Evardone
Lone District, Eastern Samar

AN ACT
CREATING THE DEPARTMENT OF INFORMATION AND
COMMUNICATIONS TECHNOLOGY, DEFINING ITS POWERS AND
FUNCTIONS, AND 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 2013”.

f 2. 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.

3. Declaration of State Policy. —It is the policy of the
State to promote the utilization of information and communications
technology, hereinafter referred to as ICT, as a vital tool for nation-
building and economic growth that is government-enabled, private sector-led,
citizen-centric and market-based. Towards this end, the govern shall prioritize
the effective coordination and implementation of its national and local ICT and


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ICT-cnabled services, programs, projects and other related initiatives, and

in order to

reorganize and revitalize all relevant governmental institutions
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 costeftivient ICT
infrastructure, systems and resources to ensure universal access and high-speed
connectivity at fair and reasonable costs; a level-playing field for strategic
alliances with investors in order to have balanced investments bewveen
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 governance and effective delivery of government frontline services.
SEC. 4. Definition of Terms, ~ As used in this Act, the following
terms are defined as follows;
(a) Broadcast refers to the sending of information to two (2) or more
simultaneously ~ over a data communications network, voice

receiving devi

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

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 ofthe information and communications

technology/information technology/management information _ systems
(ICTAT/MIS) office in a department, bureau or government-owned or
-controlled corporation/government financial institution, including legislative,

Judicial and constitutional offices.


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(©) Cybersecurioy refers to securing the cyberspace trom known and

unknown attacks from d dos, Malwares and Trojans, among others, through the
creation of technical defenses.

@

of information communications technology (© the processes of government

:-Governance or Electronic Governance refers to the application

functioning to bring about efficient, ethical, accountable, responsive and

transparent governance.

(&) Information and communications technology (ICT) relers to the

totality of electronic means to collect, store, process and present information to

ende-users in support of their activities and services. It consists of computer

systems, office systems and consumer electronics as well as networked

information infrastructure, the components of which include the telephone
system, the Internet, fax machines and computers.

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

(g) ICT sector or ICT industry refers to all telecommunications
carviers/operators, ICT equipment and solutions manufacturers and providers,
Internet service providers, ICT training institutions, software developers and
IcT-

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

the executive branch of the government that will plan, promote and help

develop the country's ICT sector and ensure reliable and cost-efficient

communications facilities, other multimedia infrastructure and services.


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‘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 ICTT to the various processes and

functions of the government,

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

(@) 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 @ broader market-led

ICT and ICT-cnabled 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;

(©) Foster and accelerate the convergence of ICT facilities such as, but
not limited fo, 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;

(8) Promote and encourage the widespread use, creative development

and access to ICT with pr

sity 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



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(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;

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

(k) Protect the rights of individuals to privacy and contidentiality of

their personal information;

(Encourage the use of ICT in support of efforts of endeavors for the
development and promotion of the country’s agriculture, arts and culture,
history, education, public health and safety, and other socio-civie purposes;
(m) Sustain the development of the nationwide postal system as an
integral component of the overall development of ICT in the country;
(n) Ensure the security of ICT infrastructure and assets of individuals
id

(0) Empower, through the use of ICT, the disadvantaged segments of

and busine

the population, including persons with disabilities (PWDs) or who are
differently-abled
SEC. 6. Powers and Functions. ~ To carry out its mandate, the

Department shall exer

ise the following powers and functions:

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

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

(© Represent and negotiate for Philippine interests on matters

pertaining to ICT in international bodies;


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(@ 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 ot
organization, whether public or private, whose development programs in ICT

are integral parts thereof, to participate and assist in the preparation and

plementation of various programs among which are an integrated National
Government Portal and the National Government Data Center;

(©) Leverage resources and activities in the various National
Government Agencies (NGAs) for database building activity, 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;

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

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

(i) Develop, implement and improve, in coordination with concemed
government agencies and industry associations, the government’s ICT
application capabilities and determine the personne! qualification and other
standards essential to the integrated and effective development and operation

of government information and communications infrastructure;


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(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;

(&) Assess, review and provide direction to ICT research and

development programs of the government in coordination with the Department
of Science and Technology (DOST) and other institutions concerned;
(1) Establish and prescribe rules and regulations for the establishment,

operation and maintenance of ICT facilities in a

not adequately served by
the private sector, in consultation with the private business sector, local

government units (LGUs) and the academe;

(m) Provide policy direction and guidance on ICT-related aspects for

the operation and mai

jenance of @ nationwide postal system that shall include

mail processing, logisties services, money remittance and payment services and

other banking services, in accordance with the rules and regulations of the
Bangko Sentral ng Pilipinas;

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

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

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

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

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

(8) Promote strategic partnership and alliances among and between
local and intemational ICT firms and institutions, research and development,

educational and training institutions, and technology providers, developers


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and manufacturers to speed up industry growth and enhance global

competitiveness, in coordination with concerned agencies;

(O Plan and/or

plement such activities as may be appropriate and/or

necessary {0 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 concemed 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 concemed agencies;

ets and infrastructure

(v) Maximize the use of existing government as
by encouraging private sector investments and partnerships in its operation to

achieve total digital inclusion and access to the global information highway;

and

(w)

cooperation among Internet service providers (ISPs), tel

rmulate guidelines and policies defining the manner of

communication

companies (TELCOs) and law enforcement agen

ies during official
investigations on violations of existing laws relating to ICT.

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

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

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

Secretaries shall be a member of the Philippine Bar. The Assistant Secretaries


9
referred to herein shall be carcer officers with appropriate eligibilities as
prescribed by the Civil Service Commission

SI

‘The authority and responsibility for the exercise of the mandate of the

‘hnology. =

8, Secretary of Information and Communications

Department and for the discharge of its powers and functions shall be vested in
the Secretary of ICT, hereinafter referred to as the Secretary, who shall have
supervision and control over the Department, For such purposes, the Secretary
shall:

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

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

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

(@ 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 eivil service laws, rules

and regulations;

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

(g) Advise the President on the promulgation of executive and
administrative orders and regulatory and legislative proposals on matters

pertaining to ICT development and promotion;


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

(Serve as the Chairperson of the Board of the Philippine Postal

Corporation in accordance with Republic Act No. 7354, otherwise known as
the “Postal Service Act of 1992”, and the Corporation Law;

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

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

9. Regional Offi
establish, operate and maintain a regional office in e:

= The Department shall be authorized 10

ch of the administrative

regions of the country as the need arises. The regional office shall be headed
by @ Regional Director, who may be assisted by one (1) Assistant Regional
Di

regions, the following funet

ctor. The regional offices shall have, within their respective administrative

(@) 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;

(@) Coordinate with LGUs; and

(©) Perform such other functi

ns 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 eval

ting periodically and
objectively the performance of the Department and to submit the same
annually to the President and to appropriate congressional committees.

SEC. 11. Council of Chief Information Officers. ~ Every department

and agency of the national government or its equivalent office in any


i
constitutional body, state college or university and government-owned and
controlled corporation is hereby directed to appoint or designate at least «
third (3") ranking official as a Chief Information Officer,

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

academe, LGUs and private s\
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 bane 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 internet or other emerging

technologies: Provided, That the fund shall not be used to cover personal

services expenditures: Provided, further, That the rules and regulations on the
utilization of the fund shall be jointly formulated by the Department and the
DBM

‘The Department may accept donations, contributions and grants from

various sources, domestic ot 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


2
the books of the Department in accordance with pertinent accounting and
auditing rules and regulations.

In order (0 ensure full transparency, accountability and integrity on the

use of e-government funds, a set of guidelines for the disbursement and
‘management of the fund, including the monitoring and evaluation system of
projects funded under the e-government fund, shall be formulated, developed

and published by the Department, in coordination with the DBM. In the

preparation of said guidelines, consultations shall also be made with the
respective umbrella organizations of the ICT’ sector

‘The implementing agencies which were granted funding under the

e-government fund shall maintain primary responsibility over the use and

management of the allocated funds. ‘The agencies concemed shall regularly
submit performance and monitoring reports on the use of said funds (0 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 IC
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

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

(2) National Computer Center (NCC); and

(3) Telecommunications Office (TELOF)


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

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

(1) National Telecommunications Commission (NTC); and

(2) Philippine Postal Corporation.

‘The Department shall not exercise any power which will have the effect
of modifying

(©). The laws and rules on government reorganization as provided for in

the exercise by the NTC ofits quasi-judicial function.

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 Force

= The Department may
create sectoral and industry task forces, technical working groups, advisory
bodies or committees for the furtherance of its objectives. Additional private
sector representatives, such as from the academe and the federation of private
industries directly involved in ICT, as well as other NGAs, LGUs and
government-owned and -controlled corporations (GOCCs), may be appointed
to these working groups. Government IT professionals may also be tapped to
partake in the work of the Department through these working groups.

SEC. 16, Structure and Staffing Pattern, — The Department shall
determine its organizational structure and create new divisions or units as it

may deem necessary, subject to the approval of the DBM, and shall appoint


14
officers and employees of the Department in accordance with the Civil Service
Law, rules and regulations,

SEC.17. Magna Carta, ~ Employees of the Department shall be

covered by Republic Act No. 8439, which provides a magna carta for
scientists, engineers, researchers and other science and technology personnel in
the government.

SEC. 18. Separation from Service. ~ Employees separated trom 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 pattem of the Department or who are not reappointed

shall be deemed separated from the service, whether permanent, temporary,

contractual or casual employees, and shall, ninety (90) days therefrom,

receive the retirement benefits to which they may be entitled to under existing
Jaws, rules and regulations,

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

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

SEC. 20. Transitory Provisions, — Within sixty (60) to ninety (90)
days after the approval of this Act, the organizational structure, including the
creation of new offices, divisions or units as may be deemed necessary for the

Department to cary out its powers and functions under this Act, shall be


15
determined by the Secretary through @ 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 filed 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 issu

Wes as
may be necessary to ensure the effective implementation of this Act within one
hundred twenty (120) days from the approval thereof

SEC. 22, Repealing Clause. — All laws, decrees, 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 after fifteen
(15) days from its publication in at least two (2) newspapers of general
circulation.

Approved,