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SENATE OF THE PHILIPPINES 
SIXTEENTH CONGRESS 
First Regular Session 
I 
I 
) 
SENATE 
Senate Bill No. 1234 
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Introduced by SENATOR JOSEPH VICTOR G. EJERCITO 
EXPLANATORY NOTE 
The digital age is upon us, yet we have been behind the curve for 
far too long. 
Since the 12th Congress, this bill has been repeatedly introduced 
but failed to pass as a law. 
It cannot be argued that BPO industry has contributed much to 
the economy. It created so many jobs to our skilled professionals. 
Business analysts predict that by 2016, revenues derived from IT-BPO 
industry will be as much as US$ 25 Billion and employment increase to 
about 1.3 million. These figures alone will contribute amounts to 8.6 
percent of our country's Gross Domestic Product. 
The Philippines have already overtook India as the contact center 
capital of the world in 2010 and add to this the recognition of the IBM 
company by being the top destination country for business support 
functions such as shared services and the Business Processing 
Outsourcing (BPO). 
It is clear that what is at stake in the Information and 
Communication Technology industry is growth and jobs. Thus, there is a 
need to have a dedicated premier government agency devoted to 
developing and promoting a national ICT strategy. 
Through the DICT, we can now focus government resources on 
ensuring universal access and literacy, expanding the use of emerging 
technologies, and fostering an effective regulatory system for business-
three crucial elements of a national ICT strategy. 
Thus, the prompt approval of this bill is most earnestly sought . 
• 
----cs G:. . 
JOSEPH VICTOR G. EJERCITO 


SENATE OF THE PHILIPPINES 
SIXTEENTH CONGRESS 
First Regular Session 
) 
) 
) 
SENATE 
Senate Bill No. 
1234 
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'13 
AUG -6 P5:03 
Introduced by SENATOR JOSEPH VICTOR G. EJERCITO 
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 of 
2013". 
SECTION 2. Creation of the Department. - There is hereby created 
the Department of Information and Communications Technology, 
hereinafter referred to as the Department. 
SECTION 3. Declaration of 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 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 relevant 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 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 governance and effective delivery of government 
frontline services. 
SECTION 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 receiving devices simultaneously - 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 (CIa) refers to a third-ranking career 
executive 
in 
charge 
of 
the 
information 
and 
communications 
technology / information technology/management information systems 
(leT /IT /MIS) office in a department, bureau or government-owned or-
controlled corporation/ government 
financial 
institution, 
including 
legislative, judicial and constitutional offices. 
(c) 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 infrastructure, the components of 
which include the telephone system, the Internet, fax machines and 
computers. 
(f) 
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 
carriers/operators, leT equipment and solutions manufacturers and 
providers, Internet service providers, leT training institutions, software 
developers and leT-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. 
SECTION 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 reT sector and ensure 
reliable and cost-efficient communications facilities, other multimedia 
infrastructure and services. 
The Department shall likewise be responsible for overseeing the 
government's integrated and strategic reT systems and improving the 
acquisition, utilization and optimization of government's reT 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 leT to the 
various processes and functions of the government. 
rn 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 leT infrastructure, systems and resources as instruments 
of nation-building and global competitiveness; 
(b) Foster a policy environment that will promote a broader market-
led reT and reT-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; 
(c) Foster and accelerate the convergence of reT 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 reT services in areas 
not adequately served by the private sector; 
(1) 
Promote 
and 
encourage 
the 
widespread use, 
development and access to reT with priority consideration 
requirements for growth of the Philippine leT industry; 
creative 
on the 
(g) Promote and assist the development of local and national 
content application and services in the area of leT by sourcing or 
providing funds and construction assistance for leT-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 leT expertise in the country's 
human capital to enable Filipinos to compete in a fast-evolving 
information and communication age; 
0) Ensure the growth of reT and reT-enabled industries, including 
mobile technologies, application and services; 


(k) Protect the rights of individuals to privacy and confidentiality of 
their personal information; 
(I) 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 leT in the country; 
(n) Ensure the security of ICT infrastructure and assets of 
individuals and businesses; and 
(0) Empower, through the use of leT, the disadvantaged segments 
of the population, including persons with disabilities (PWDs) or who 
are differently-abled. 
SECTION 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 leT 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 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; 
(d) Develop and maintain national ICT development plans and 
establish and administer comprehensive and integrated programs for leT 
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 (NGAs) for database building activity, information 
and resource sharing and agency networking linkages; 
. 
(I) 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 all e-governance systems and applications as provided 
for in the Government Information Systems Plan and/or theMedium-
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 
ICT and ICT-enabled services sector; 
(i) 
Develop, implement and Improve, in coordination with 
concerned 
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 
government 
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 (DOST) 'and other institutions 
concerned; 
(1) 
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 (LGUs) and the academe; 
(m) Provide policy 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 Pilipinas; 
(n) Administer and enforce all laws, standards, rules and 
regulations governing ICT; 
(0) Ensure the protection of ICT-related 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; 
(r) Coordinate with the DTr in the promotion of trade and 
investment opportunities in rCT and ICT-enabled services; 
(s) Promote strategic partnership and alliances among and between 
local and international rCT 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, in coordination with concerned 
agencies; 
(t) 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 rCT market and rCT-
enabled services market in coordination with concerned agencies; 
(u) Undertake initiatives to promote rCT and rCT-enabled services 
in education and training and the development, promotion and 
application of rCT in education in a manner that is consistent with 
national goals and objectives, and responsive to the human resources 
needs of the rCT and rCT-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; and 
(w) Formulate guidelines and policies defining the manner of 
cooperation among Internet service providers (ISPs), telecommunication 
companies (TELCOs) and law enforcement agencies during official 
investigations on violations of existing laws relating to rCT. 
SECTION 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 referred to herein shall be career officers with appropriate 
eligibilities as prescribed by the Civil Service Commission. 
SECTION 
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 rCT, 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; 


(c) 
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); 
(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) Establish coordinative mechanisms to ensure the successful 
implementation of national ICT policies, initiatives and guidelines in 
coordination with concerned 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; 
(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"; 
(i) 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; 
OJ 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. 
SECTION 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 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; 
(c) 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. 
SECTION 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. 
SECTIONll. Council of Chief Information 
Officers. 
department and agency of the national government or its 
office 
in 
any 
constitutional 
body, 
state 
college 
or 
and government-ownedand -controlled corporation is hereby 
appoint or designate at least a third (3rd) ranking official 
Information Officer. 
Every 
equivalent 
university 
directed to 
as a Chief 
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 academe, 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 ICTe-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. 
SECTION 
12. E-Govemment 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-agency government leT 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 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 
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, 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 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. 
SECTION 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); and 
(3) Telecommunications Office (TELOF). 
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 (DOTC), which is hereby renamed as 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); and 
(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. 


SECTION 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. 
SECTION 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 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. 
SECTION 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 officers and employees of the Department in accordance 
with the Civil Service Law, rules and regulations. 
SECTION 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. 
SECTION 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 pattern of the Department or who are not 
reappointed 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 to under existing laws, rules and regulations. 
SECTION 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 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 internally generated funds. 
SECTION 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 cr!"!ated 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. 
SECTION 
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. 
SECTION 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. 
SECTION 23. Separability Clause. - If any provlslOn of this Act 
shall be declared unconstitutional or invalid, the other provisions not 
otherwise affected shall remain in full force and effect. 
SECTION 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,