Senate Bill No. 2638

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SIXTEENTH CONGRESS OF THE PHILIPPINES

REPUBLIC OF THE PHILIPPINES


Second Regular Session

)
)
)

':5 FEB -9 P6:44

S.B. No.

2638

SENATOR SONNY ANGARA


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

EXPLANATORY NOTE

Section 24, Article II of the 1987 Philippine Constitution underscores the "vital
role of communications and information in nation-building."
Events and developments in recent years emphasize this point. For instance, the
Million People March in Luneta Park in August 2013 started in social media. Already the
"texting capital of the world," the Philippines was recognized as a "Social Networking
Capital of the World," with nearly 9 out 10 online Filipinos signed into Facebook. The
National Statistical Coordination Board (NSCB) reported that a little more than 3 out 10
Filipinos-'or 36 percent of the population-have access to the Internet, with such
penetration expanding.
Many emphasize that a digital revolution is taking root throughout the country,
dr1v1ng fundamental changes 1n the way we work, communicate, play, travel, learn,
participate-ultimately in the way we live.
These far-reaching transformations demand the full attention of government. The
state should ensure that such innovations benefit the Filipino people and contribute to
nation-building.
Hence, a Department of Information and Communications Technology (DICT)
should be established, mostly out of a reorganization of the current Department of
Transportation and Communications (DOTC). The needs of the information and
communications sector are distinct from transportation, and thus merit equally distinct
technical expertise and governmental support.
Throughout global society, many changes have occurred because of
developments in ICT. Many now speak of building up a knowledge-driven economy-a
goal which the Philippines cannot achieve without proper institutional focus and
adequate support.
Hence, the immediate passage of the foregoing measure is earnestly sought.

SENAT

SONNY ANGARA

16th CONGRESS OF THE REPUBLIC)


OF THE PHILIPPINES
)
Second Regular Session
)

'15 FEB -9 P6:45


SENATE

S. B. No.

2638

REi 'EI\'EI)

I~Y;--6--~

SENATOR SONNY M. ANGARA

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 2015 or the DICT Act."

SEC. 2. Creation of the Department- There is hereby created the Department

of Information and Communications Technology, hereinafter referred to as the

Department.

SEC. 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 governmental-enabled,

private sector-led, citizens-centric and market based. Towards this end, the government

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shall prioritize the effective coordination and implementation of its national and local ICT

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

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reorganize and revitalize all relevant governmental institutions in order to achieve a

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streamlined and efficient structure that is responsive and attuned to national goals and

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objectives. It shall likewise be the policy of the State to provide an environment that will

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support investments in cost-efficient ICT infrastructure, systems and resources, to

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

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level playing field for strategiC alliances with investors in order to have balanced

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investments between high-

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.

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

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(a) Broadcast refers to the sending of information to two or more receiving

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devices simultaneously-over a data communications network, voice mail,

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electronic mail system, local TV/radio station or satellite system. Broadcast

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involves sending a transmission simultaneously to all members of a group. In

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the context of an intelligent communications network, such devices could be

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host computers, routers, workstations, voice mail systems, or just about

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anything else. In the less intelligent world of "broadcast media", a local TV or

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radio station might use a terrestrial antenna or a satellite system to transmit

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information from a single source to any TV set or radio capable of receiving

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the signal within the area of coverage.

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(b) Chief Information Officer (CIO) refers to a third ranking career executive in

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charge of the information and communications technology/information

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technology/management

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department,

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corporation/government financial institution, including legislative judicial and

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constitutional offices.

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bureau,

information
or

systems

(ICT/IT/MIS)office

government-owned

or

in

controlled

(C) Cybersecurity refers to securing the cyberspace from known and unknown

attacks from a dos, malwares, and Trojans, among others, through the

creation of technical defences.

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(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;

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(e) Information and Communications Technology (ICT) refers to the totality of

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electronic means to collect, store, process and present information to end-

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users in support of their activities and services. I consists of computer

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systems, office systems and consumer electronics, as well as networked

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information infrastructure, the components of which include the telephone

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system, the Internet, fax machines and computers;

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(f) ICT-Enabled Service Providers refer to offshoring and outsourcing service

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providers, including contact centers, medical or legal transcription, animation,

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engineering or architectural design services, software development, business

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process outsourcing services, and other providers of services that require the

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intensive use of a networked information infrastructure;

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(g) ICT

Sector

or

ICT

Industry

refers

to

all

telecommunications

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carriers/operators, leT equipment and solutions manufacturers and providers,

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internet service providers, leT training institutions, software developers and

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leT-enabled service providers;

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(h) M-Governance or Mobile Governance refers to the application of mobile

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technology to the process of government functioning to bring about efficient,

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ethical, accountable, responsive and transparent governance.

SEC. 5. Mandate- The Department shall be primarily 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

leT 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 leT systems and

improving the

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acquisition, utilization and optimization of Government's leT in order to improve

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the productivity, efficiency, effectiveness, and responsiveness of national and

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local government programs. The Department shall furthermore be responsible for

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ensuring the application of information communications technology to the various

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processes and functions of Government.

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


strategic objectives;

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a) Ensure the provision of a strategic, reliable, cost-efficient, and citizen-

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centric leT infrastructure, systems, and resources as instruments of

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nation-building and global competitiveness;

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b) Foster a policy environment that will promote a broader market-led leT

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and leT-enabled services sector, a level playing field, partnership

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between the public and private sectors, strategic alliance with foreign

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investors,

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economically-depressed areas;

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and

balanced

investments between

high-growth and

c) Foster and accelerate the convergence of leT facilities such as, but not
limited to, the development of networks;

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


reasonable costs;

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e) Ensure the availability and accessibility of ICT services in areas not


adequately served by the private sector;

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f) Promote and encourage the widespread use, creative development,

and access to ICT with priority consideration on the requirements for

growth of the Philippine ICCT industry

g) Promote and assist the development of local and national content

application and services in the area of ICT by sourcing or providing

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funds and construction assistance for ICT-hubs and/or technical

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support to local-based providers in these endeavours and in the

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marketing of the local products to the global community;

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h) Establish a strong and effective regulatory and monitoring system that

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will ensure investor and consumer protection and welfare and foster a

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healthy competitive environment;

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i) Promote the development of ICT expertise in the country's human

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capital to enable Filipinos to complete in a fast-evolving information

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and communication age;

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j)

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;

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I) Encourage the use of ICT in support of efforts or endeavors for the

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development and promotion of the country's agriculture, arts and

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culture. history. education, public health and safety, and other socio-

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civic purposes;

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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


business, and

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

population, including persons with disabilities (PWD) or who are

differently-a bled .

SEC. 6. Powers and Functions.- To carry out its mandate, the

Department shall exercise the following powers and functions:

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(a) Formulate,

recommend, and/or implement national policies and

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guidelines in the ICT sector that will promote wider use and

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development of ICT, and its applications, such as e-commerce, in

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coordination with Department of Trade and Industry (DTI), among

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others;

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(b) Initiate, harmonize and/or coordinate all ICT plans and initiatives of

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government agencies to ensure overall consistency and harmony with

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the objective of e-governance objectives, in particular, and national

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objectives in general;

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(c) Represent and negotiate for Philippine interests on matters pertaining


to ICT in international bodies;

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(d) Develop and maintain national ICT development plans and establish

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and administer comprehensive and integrated programs for ICT with

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due consideration to advances in convergence and other emerging

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technologies; and for this purpose, invite any agency, corporation or

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organization, whether public or private, whose development programs

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

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preparation and implementation of various programs among which are

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an

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Government Data Center;

integrated

National

Government

Portal

and

the

National

(e) Leverage resources and activities in the various National Government

agencies for dam base building activity, information and resource

sharing and agency networking linkages;

(f) Design, implement and ensure the protection of an integrated

government

information

development program that will coordinate all relevant government

entities, taking into consideration, the inventory of existing and

projected manpower,

hardware, and installed systems and programs;

plans,

and

communications

programs,

proposals,

infrastructure

software and

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(g) Provide an integrated framework in order to optimize all government

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ICT resources and networks and the identification and prioritization of

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all e-governance systems and applications as provided for in the

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Government Information Systems Plan and/or the Medium Term

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Philippine Development Plan (MTPDP)

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(h) Coordinate and support the generation and/or acquisition of all

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necessary resources and facilities as may be appropriate in and for the

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development, marketing, growth and competitiveness of the Philippine

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ICT and ICT-enabled services sector;

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(i) Develop, implement and improve, in coordination with concerned

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government agencies and industry associations, the government's ICT

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application capabilities and determine the personnel qualification and

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other standards essential to the integrated and effective development

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and

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infrastructure;

operation

of government information

and

communications

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0) Encourage and establish guidelines for private sector funding of ICT

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projects for government agencies in order to fast-track said projects

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which provide reasonable cost-recovery mechanisms for the private

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sector, including but not limited to Build-Operate-Transfer (BOT)

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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;

(I) 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 policy-direction and guidance on ICT related aspects for the

operation and maintenance of a nationwide postal system that include

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mail processing, logistics services, money remittance and payment

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services and other banking services in accordance with the rules and

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regulations of the Bangko Sentral ng Pilipinas;

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

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(0) Ensure the protection of ICT-related intellectual property rights in

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coordination with the intellectual Property Office (IPO), the Optical

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Media Board (OMB), and other concerned agencies;

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

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(s) Promote strategic partnership and alliances among and between local

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and international ICT firms and institutions, research and development,

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educational and training institutions, to speed up industry growth and

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enhance global competitiveness in coordination with concerned

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agencies;

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(t) Plan and/or implement such activities as may be appropriate and/or necessary

to enhance the competitiveness of Philippines 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

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education in a manner that is consistent with national goals and objectives,

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and responsive to the human resources needs of the ICT and ICT - enabled

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services sector in particular in coordination with concerned agencies;

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(v) Maximize the use of existing government assets and infrastructure by

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encouraging private sector investments and partnerships in its operation to

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

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(w) Formulate guidelines and policies defining the manner of cooperation

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between Internet Services Providers (ISP), telecommunication companies

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(Telcos) and law enforcement agencies during official investigations on

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violations of existing laws relating to information communications technology.

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

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appointed by the President, subject to the confirmation by the Commission on

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Appointments. The President shall also appoint not more than four (4) Undersecretaries

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and four (4) Assistance Secretaries.

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Any person appointed as Undersecretary or Assistant Secretary of the

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Department must be a citizen and resident of the Philippines, of good moral character,

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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.

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

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and Communications technology, hereinafter referred to as the Secretary, who shall

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have supervision and control over the Department. For such purposes, the Secretary

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shall:

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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

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operation of the

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Government;

Department,

in

accordance with the

programs of

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c) Rationalize delivery systems necessary for the effective attainment of the

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objectives of the Department, including the creation of such offices as may be

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necessary to ensure the fulfillment of the Department's mandate, subject to

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the approval of the Department of Budget and Management (DBM);

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

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e) Designate and or appoint all officers and employees of the Department,

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except the Undersecretaries, Assistant Secretaries and Regional and

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Assistant Regional Directors, in accordance with Civil Service laws, rules and

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regulations;

f) 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 organization (NGOs) and

people's organization (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 a member of the Government Procurement Policy Board as

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established by Republic Act No. 9184 otherwise known as Government

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Procurement Reform Act;

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i) Serve as the Chairperson of the Board of the Philippine Postal Corporation in

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accordance with Republic Act No. 7354 otherwise known as Postal Service

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Act of 1992, and the Corporation Law;

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j)

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.

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SEC. 9. Regional Offices. - The Department shall be authorized to establish,

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operate and maintain a Regional Office in each of the administrative regions of the

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country as the need arises. The regional office shall be headed by a Regional Director,

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who may be assisted by one (1) Assistant Regional Director. The Regional Offices shall

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have, within their respective administrative regions, the following functions:

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


the Department;

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b) Provide efficient and effective service to the people;

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c) Coordinate with regional offices of other departments, offices, agencies;

d) Coordinate with LGUs;

e) 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.

SEC. 11. Council of Chief Information Officers. - Every department and

agency of the National Government or its equivalent office in any constitutional body,

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state college or university, and government - owned and controlled corporation, is

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hereby directed to appoint or designate at least a third ranking official as a Chief

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Information Officer.

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The Council of Chief Information Officers shall be composed of eleven (11)

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members with fixed terms of office, to be appointed by the Secretary from sectoral

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representatives of government departments, constitutional bodies, academe, and the

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LGUs and private sector ICT-oriented NGOs. The Secretary shall be the Chairperson of

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the Council.

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The Council shall serve as a coordinating body to assist the Secretary in the

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establishment of poliCies, standards, rules and guidelines for the provision and other

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leT e-governance initiatives. It shall also assist the Secretary in the monitoring and

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evaluation of the Government Information System Plan.

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

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SEC. 12. E-government Fund. - There shall be an e-government fund to be

25

appropriated annual under the General Appropriations Act (GAA) to be administered by

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the Department, specifically to fund cross-agency government ICT project which shall

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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 of 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

10

Affairs. Receipt from donations shall be accounted for in the books of the Department in

11

accordance with the pertinent accounting and auditing rules and regulations.

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In order to ensure full transparency, accountability and integrity on the use of e-

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government funds, a set of guidelines for the disbursement and management of the

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fund, including the monitoring and evaluation system of projects funded under the e-

15

government fund, shall be formulated, developed, and published by the Department, in

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coordination with the DBM.

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also be made with the respective umbrella organizations of the leT sector.

In the preparation of said guidelines, conSUltations shall

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The implementing agencies which are granted funding under the e-government

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fund shall maintain primary responsibility over the use and management of the allocated

20

funds.

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reports on the use of said funds to the Department.

The agencies concerned shall regularly submit performance and monitoring

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In connection with the implementation of the e-government fund, the Department

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shall provide or arrange the appropriate or relevant leT education or training program in

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order to enable the trainees to comprehend the leT development cycle appropriate to a

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given project, as well as to ensure that government project managers shall acquire

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expertise for the timely delivery of systems according to a prescribed content and

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budget.

However, internal IT systems meant to support the agencies IT and operations

shall be charged against the agencies won 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);

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3) Telecommunications Office (TELOF);

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All offices, services, divisions, units and personnel not otherwise covered by this

12

Act for transfer for absorption into the new Department shall continue to perform

13

their transportation-related functions and therefore, shall be retained under the

14

Department on Transportation and Communication (DOTC), which is hereby

15

renamed the Department of Transportation.

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b) The following agencies are hereby attached to the Department for policy and

17

program coordination, and shall continue to operate and function in accordance

18

with the charters, laws, or orders creating them, insofar as they are not

19

inconsistent with this Act;

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1. National Telecommunications Commission (NTC);

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2. Philippine Postal Corporation

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

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modifying the exercise by the NTC of its quasi-judicial function.

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c) The laws and rules on government reorganization as provided for in Republic Act

25

No. 6656, otherwise known as the Reorganization Law, shall govern the

26

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

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.

of its objectives.

Additional

private

sector

Government IT

10

professionals may also be tapped to partake in the work of the Department through

11

these working groups.

12

SEC. 16. Structure and Staffing Pattern. - The Department shall determine its

13

organizational structure and create new divisions or units as it may deem necessary,

14

subject to the approval of the DBM, and shall appoint officers and employees of the

15

Department in accordance with the Civil Service Law, rules and regulations.

16

SEC. 17. Magna Carta. - Employees of the Department shall be covered by

17

Republic Act No. 8439, which provides a magna carta for scientists, engineers,

18

researchers and other science and technology personnel in the government.

19

SEC. 18. Separation from Service. - Employees separated from the service as a

20

result of the reorganization shall, within ninety (90) days therefrom, receive the

21

retirement benefits to which they may be entitled under existing laws, rules and

22

regulations.

23

Incumbents whose positions are not included in the new position structure and

24

staffing patter of the Department, or who are not re-appointed shall be deemed

25

separated from the service, whether permanent, temporary, contractual or casual

26

employees, and shall within ninety (90) days therefrom, receive the retirement benefits

27

to which they may be entitled to under existing laws, rules and regulations.

SEC. 19. Appropriations. - The amount needed for the initial implementations 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.

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.

10

Thereafter, the amount needed for the

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

11

SEC. 20. Transitory Provisions. - Within sixty (60) to ninety (90) days after the

12

approval of this Act, the organizational structure including the creation of new offices,

13

divisions or units as may be deemed necessary for the Department to carry out its

14

powers and functions under this Act, shall be determined by the Secretary through a

15

Committee that shall be established for the purpose.

16

The authorized positions created under the organizational or reorganization plan

17

shall be filled with regular appointments as the exigencies of the service will require and

18

depending upon the position involved, by the President or the Secretary of the

19

Department as the case may be, in accordance with the Civil Service rules and

20

regulations.

21

SEC. 21. Implementing Rules and Regulations. -

The Department shall

22

promulgate and issue such rules and regulations and other issuances as may be

23

necessary to ensure the effective implementation of this Act within one hundred twenty

24

(120) days from the approval thereof.

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SEC. 22. Repealing C/ause-

All laws, decrees, executive orders, rules and

27

regulations and other issuances or parts thereof which are inconsistent with this Act are

28

hereby repealed, amended or modified accordingly.

SEC. 23. Separability C/ause- 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.

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

Approved

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