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FOURTEENTH CONGRESS OF THE )REPUBLIC OF THE PHILIPPINES )Second Regular Session 1

S E N A T E~ ~ ~ ~ ~Y .

//COM MITTEE REPORT NO. 93Prepared jointly by the Comm ittees o n Science an d Techn ology, CivilService and Government Reorgan ization and Finance onAUG 1 4 2000Re: S. No. ;? 5 a6Recommending its approval in substitution of Senate Bill Nos. 320and 920.Spons ors: Senators Angara and Legarda

MR. PRESIDENT:The Committees on Science and Technology, Civil Service andGovernment Reorganization and Finance, to which were referred S . No.320, introduced by Senator Jinggoy Estrada, entitled:

AN ACTCREATING THE NA TIONAL COUNC IL FOR INFORMATIONTECHNOLOG Y AND DEVELOPMEN T (NCITD), DEFINING ITSOBJECTIVES, PO WERS AND FUNCTIONS, APPROPRIATINGFUNDS THEREFOR, AND FOR OTHER PURPO SESAnd S. No. 920, a uthored by Senator Lega rda, entitled:

AN ACTCREATING THE D EPARTMENT OF INFORMATION ANDCOMM UNICATIONS TECHNO LOGY, DEFINING ITS POWERS A NDFUNCTIONS, APPROPRIATING FUND S THEREFORE, AND FOROTHER PURPOSES

have considered the same and have the honor to report them back&.theSenate with the recommendation that the a ttached Senate Bill No. C G 6, prepared by the Comm ittees, entitled:AN ACTCREATING THE DEPARTM ENT OF INFORMATION ANDCOMM UNICATIONS TECHNOLO GY, DEFINING ITSP OWERS AND FUNCTIONS, APPROPRIATING FUNDSTHEREFORE, AND FOR OTHER PURPOSES.

bc ~ l ~ p i ~ ~ ~ dii substitution of S Nos. 320 a n d 920, with Senators Estradn. Legartla andAngat-a :IS t1uihors thereor.

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Respectfully submitted:

SE N. ANTONIO F. TRILLANES IVCl ia i rmanCt t c . On Civi l Serv ice & Govt .l icorganimtioriMembcr. Ct te . On Finance

C 11airni anCtte. On Science & T e c h n o l o g yVicc Cl i a irm an , C t t e . On FinanceMem ber , C t te . On Civ il Serv ice CGov t Reorganizat ion

YhairmanCoininit tee on inaiiceMem ber , C t te . On Science & T e c h n o l o g y

SEN. YANFJLO PING LACSO NActing Chairman, Ctte. On Civil Service& Govt. ReorganizationMember, Ctte. On Finance

MEMBERS:/A/\SEN. PIA Coi .CAYETANOVicc Chairpers

Member, Ctte. On Financean d Technology

SE N. RIIRIAM DEFENSOR-SANTIAGOVicc C h i m e i s o n . Comlnittee on Finance

/ S E N . R I C H A R D J . G O RDO Nn Civil Service andarid Finance

g&I N . GREGORIO B. HONASAN I 1Mcmhcr Cttes. On Civil Servic e andGovern rent Reorganization arid Financei

SEN. JOKER P. ARROYOVic e Chaii-uiian, Cttc. O n Finan ce

c(Lito M. LAPID ~rEMernbci-, Clte. On FinanceS

Member, Cites. On Civil Sei-vicc andGo vt . Reorgaiiizntion m t / Finance

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Respectfully submitted:

SEN. JU A N P O N C E ENIULECh n i l ma nCoiniiiittee on Finance

Member, Ctte. 011 cierrce & Techno logy

SEN . PANFILO PING LACSONActing Chaimian, Cttc. On Civil Scrvice8~Govt. ReorganizationMember, Ctte. On Finance

MEMBERS:

SIN. P IA Coi i ipa i l rra S. CAYETANO\ICC Clxlirpcrson.Cttc. 011 cience/vlcriihci.. CYtc On Finaiicc

SEN. JOKER P. ARROYOVicc Chnirman, Ctte . 011 iirrinccil lld -lcchno Iogy

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SWI

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AN ACTCREATING TH E DEPARTMENT O F INFORMATION ANDCOMMUNICATIONS TECHNOLOGY, DEFINING ITS POWERS ANDFUNCTION S, APPROPRIATING FUNDS THEREFOR E,AND FOR OTHER PURPOSES

l3cz i / enacted by the Senate an d th e House of Representatives of tile Philippines inC'ongmss nsscmblcd:SECTION 1 . Short Title. This Act shall be known as the "Department of Informationand Coiiimunications Technology Act o f 2005."S E C . 2. Dcclrirntion ofPolicy. I t i s hereby declared the policy of the State:

a. To enswe the provision o f a strategic, reliable, cost-efficient and citizen-ccnlricinformation and coniniunications technology (ICT) infrastructure, systems an dresources as instruinents of nation-building and global com petitiveness;

b. To foster a policy environment that will promote a broader market-lcddevelopment of th e ICT and ICT-enabled services sectors, a level playing field,partilership between the public and the private sectors, strategic alliance w i t hforeign investors and balanced investments between high-growth an deconoinicall y-depressed areas;

c. To foster and acc elerate the convergence of ICT facilities;

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I . ,1 .IC.

T o ensure th e growili of the 1CT and ICT-enabled services sectors;I o 131-escrve hc rights of individuals to privacy an d confidentiality of thcirpersonal i niortnation;To encournge the use of ICT for the tlevelopment and promotion o r the countrysarts an d culture, history, education, public health and safety. and other socio-civic puq>oses;

I.

111. To sustain the dcvelopment of the national postal system as an integralcomponent of thc overall developnrent of lCT in tlie country;

t i . To ensure the security of ICI inrrastiuctures and assets of individuals andbusinesses stored therein;

o. To empower, through the use of ICT, the disadvantaged segments of thepopulation, including persons with disabilities, such as the physically,emotionally or inentally challenged.

S E C . 3. D(:fi!ii/ion y 7 i~ rnu .As used il l this Act, tlie following terms arc dcfinetl asIhl ows :

a. lnfoniiation and Communications Technology or ICT hall mean thetotality of electronic means to collect, store, process and present itifonnationto end-users in support of their activities and services. I t consists of computet-systems, orlice systems and coiisuiner electronics. as well as networkedinformation infrastructure, the com ponents of which include telephone, cable.wireless and satellite systems, the fntemet, lax machines and computers;

b . Electmnic Government or E-Govemment s h a l l mean the application ofI C T in government processes to bring about efficient, responsive, ethical.accountable and transparent governm ent service;

c. ICT Sector shall mean telecoininunicatious operators, ICT equipiiiciitmanufacturers, ICT solut ion providers, Internet service providers, ICTtraining institutions, so ttwarc develop ers and ICT-enabled servic e providers;

d . ICT-Etiabled Services Sector shall mean dEshoring and outsourcing serviceproviders, including call centers, back office processing, softwaredevelopment, medical or legal transcription, animation, game development,engineering or architectural design, and othcr services that require tlie intrinsicuse of a networked information infi-astructurc;

e. Chief Inforination Officer o r T10 shall mean the title given to the hoardlevel head of ICT in an organization responsible fo r the development andtnaintenance of the organizations ICT systems and applicatioiis.

S E C . 4. Crcc// ioii of /h e I I e p o r t m m / qf /n j i i rmot ;o~ wd Conir,lrrrlicntiorls Tech/ioiogi~.T l w c is hcrehy crcated th e Department of Inforination and Coiniiiunications Technology.Iict-ciiiaftcr rcfer rcd to as the Department, which shall carry ou t the above-declared policy

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I13-I567 t~inctiotis:

i i n d m t i n i c tlic coiiiinunications-related powers a n d functions of the Departincnt of1.1 anspoi-tntion and Communications (DOTC).SEC. 5. A % I I I ~ ( / ~ L ~ .he Dep:ii?iiient shall bc the primary policy, planning, coordinaltng,iniplcinciiting. regulating and administrative entity of the executive brancli of thcGovcriiiiiciit tliat wi l l plan, promotc and help develop the countrys ICT sector.S E C . 5 . foiwi..s urrd FwicIioiu Tlic Dcpw.tiiien1 shall exercise fhe following ~?ow crs i d

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Forindate, recommend and iinpleiiient national policies, plans, programs andg~iiclclincsfor the ICT and ICT-enabled services sectois that will proinotcwider use i o d development of ICT and provide increascd a n d coiivcii ieii[access by the citizens to the sam e;Initiate, Iiarinoni7,e and coord inate al l ICT plans and initiatives of governmentagencies to ensure overall consistency and harmony with e-govcminentobjectives in particular, atid national objectives in general;Repi-eseiit and negotiate for Philippine interest on matters pertaining to ICT ininternational bodies;Develop and maintain national ICT developiiient plans and establish nndadiiiiiiister comprehensive and integrated programs for 1CT with dueconsideration lo advances on convergence an d other emerging technologics;and for this purpose, may invite any agency, corporation or organization,whether public or private, whose development programs in ICT are an iiitcgralpart thereof, to participate and assist in the preparation an d implementation o fsuch programs;Promote knowledge, infoilnation and resource sharing, database huilding andagenc y networlting linkages am ong various gove rninent agencies;Ensure the development and protection of an integrated goveriniientinliirmatioii and communications infrastructure and coordinate al l rclcvantgoverninent entities, taking into consideration the inventory of existingmaiipower, plans, programs, proposals, software and hardware, and theinstalled system s and programs;Provide an integrated framework i n order to optimize all govcrlilnent ICYresoui-ces and networks and the identification and prioritization of al l c-government systems and applications as provided for iii the GovertimentInformation Systems Plan (GISP) and tlie Medium Term PhilippineDevelopment Plan (MTPDP);Coordinate and support tlie generation and acquisition of necessary resourcesas may be appropriate for the development. inarketing. growth andcompetitiveness o ft he Philippine ICT and ICT-enabled seivices sectors;

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i . Devclop, impleinent and improve, in coordination with concerned governmentagencies antl industry associations. the government's ICT capabilities andtietcnnine tlie personnel qualifications and other standal-ds essential t o theefl'ective developiiirnt and opcratioii of governiiienl inforination a n dc o n i n tin i ations in fias ru ct ure;Encourage and establish guidelines for the use of public-private partnerships inthe iiiipleiiientation of ICT projects for government agencies i n order to fast-track sa id projects and provide reasonable return-on-investtlient for tlie privatcsector, including but not limited to Build-Opel.ate-Transfer (BOT) mechanisms;

k . Assess, review a n d supporl IC T rcscarcli and developiueiit programs o f thegovernment i n coordination with the Department of S cience and Technologyan d other institutions concerned;Establish and prescribe rules and regulations for tlie establishment, operationand ~iiaintenance f ICT infrastructure in unserved and underserved areas, i nconsultation with the private sector, local government units (LGUs) and theacademe;

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111. Provide policy-direction and guidance in ICT-related as pects for tlie operationand niaintenance o f a nationwide postal system that shall include inailprocessing, delivery services, and money remittance and payme nt services;

11. Assist antl provide technical expertise i n the development of guidelines to theIntellectual Property Office ("0) i n the enforcenient and adminislration oflaws, standards, ru les, and regulations govci-ningICT ;

0, I n coordination with concerned agencies, the private sector and relcvantinternational bodies, ensure consumer protection and welfare, and protect therights of consum er and business users to privacy, security and confidentiality;I-lar-nionize, synchronize and coordinate w ith appropriate agencies all ICT andc-coinnierce policies, plans antl programs;

q. Coordinale with the Department of Trade and Industry in the promotion oftrade and investment opportunities and protection of' investor interests i n thcICT and ICT-enabled services sectors;

p

r. I n coordinatioii with concerned agencies, promote strategic partnership andalliances among and between local and international ICT firms and institutions,rescarcli and development, educational and training institutions, and technologypi-o\.itlers. developers a 1 ~ 1 aiinfacluret.s, to specd up industry growth ant lcr\hance global competitiveness;I n coordinatioii with concerned agencies, plan an d implenlent such activities asmay be appropriate to enliancc the competitiveness o f Pliilippinc worlte~-s,lirnis, and small an d inediuni enterprises i n the global mal-kets for ICT ant1IC"l-enahlet1 services ;

s.

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t. In coordination with concerned agencies, establish antl recommend tlicadoption o r qualification standards and enhance th e career opportunities of 1CTworkers i n government;

11. I n coordination with the Departiiient of Education, Commission on I-lighcrEducation and Teclinical Etlucatioii ant1 Skills Devclopnlcnt Aulliority.ihrmulate policies and initiatives to proniote ICT and ICT-enahlcd scr~ic'cseducation and the development. promotion ant l application of ICT iii educationi n a manner that is consistent with the national goals and objcctivcs. andI-csliniisibe to the human resource needs of the ICT and 1CT-enabled servicessectors;

v . Facilitate th e creation of the Chief Information Officer (CIO) Council, whichs h a l l consist of ClOs of national government agencies (NGAs) with at least therank of Assistant Secretary, with the Secretary serving as the Chaii-man, toassist the Department in iinpleiiienting e-gov ernment initiatives;

w.Administer the E-Government Fund as specified in Section 15 and, i ncoordination with tlie Department o f Budget and Management, establishguidelines for the disbursement and management of the E-Goveriuiient Fund,including the monitoring and evaluation system of projects funded under thesaid fund.

S E C . 7. C'omposi/iorz.The Depaitiiieiit of Information and Coiiimunieations Technologys l i i i l l hc headed by a Secretary. The Departiiieiit proper shall be coinposed of th e Officeo l ' t l i c Secretary, the offices of th e Undersecretaries and the Assistant Secretaries.SEC'. 8. Sccrr/nr:l: of Ir!fi~rrttntiorz rid Conzrriitnictrtiorrs Teclzriologv. The Secretary shallhc appoiiitcd by tlic I'resident, subject to confiriiiation by tlic Comniiissioii onAppointments.

Vie Secretary sha ll have the following functions:a . Provide executive direction and supervision over the entire operttions of th c

Department and its attached agencies;13. Establish policies atid standards for the effective, efficient and econonucal

oper:ition o f th e Departm ent, in accordance with the programs of Goveiiiment;C. I

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I-I-34507S0

IOI112I ?14I 5I 61718I (12 0117 1_ _1241526I2 87 030.3 I3 2. .3i4i s.3 0i7

I Coordinatc with LGUs, other agencies and puhlic and private interests groups,including non-governinent organizations (NGOs) ant l peoples orgonizatioiis(POs) on Depaitincnt policies and init iat ives;

g. Advice the President on the proniulgation of executive and administrativcordcrs a n d rcgulalory and legislative proposals on matters perteining to ICTtlevclopment:

11. Set-se as a member of th e Governinent Prncurement Policy Boarti asestablished b y Republic Act No. 91 84;Serve as the Chairinan o f tlic Bond of the Ihilippine Postal Corporation inaccordance with Republic Ac t No. 7354 a n d thc Corporation L aw;Fo i -m~ i l a t cuch rules an d regulations and e xercise such other powers as may herequired to iniplenient the objectives oftliis Act;

k. Perform such other tasks as may be provided by L aw or assigned by thePresident from tim e to time.

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SEC. 9 . Ui7dersccrctnrics. The Secretary shall be assisted b y three (3) Undersecretaries,\vI iu shall be appointed by the President upon tlie recommendation of th e Secretary:provided tliat one ( I of the Undersecretaries shall be a career officer coming fioni r:inltsof misting government inforination and communications agencies and offices orqtialilietl IC T professionals i n the private sector.S I X . I O . ,4ssistcrrit Sec-rctnries. The Secretary shall be assisted by three (3 ) AssistantSccrctaries wlio s h a l l be career officers appointed by the Iresident upon therccoiiiiiieiitlation of the Secretary.SEC. 11. Qrid~ficcitiorrs.N o person shall be appointed Secretary, Undersecretary o rAssistant Sccrctary of the Department unless he is a citizen and resident of theIliilippines of good rnoral character, and o f prove n integrity.S E C . 12. Regiorinl Qlficcs. The Department shall be authorized to establish, operate, andmaintain I

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a. The following agencies are herehy abolished, and their powers and functions,applicable funds and appropriations, records, equipment, property, andpel-sotinel transferred to the Depattmcnt:I, All operating units currently existing i n thc Commission on Iiifoi-mation

an d C om inun cat ions Tech ino I ogy (C CT)2. National Coinputel- Center (NCC);3 . ~TelecoiiimunicatioiisOffice (TELOF);4. All operating units of the Department of Transportation and

Communications (DOTC) with functions and responsibilities dealing w i t hcoinmunications.

All ollices, services, divisions, units and personnel not otherwise covercd h ytliis Act for transfer to the Department shall be retained under the D OT C, which ishereby renamed th e Department of Transportation.b. The following agencies are hereby attached to the Department for policy a nd

program coordination, and shall continue to operate and hnction i naccordance with the charters, laws or orders creating them, insofar as they arenot inconsistent with this Act:I . National Telecoiiitnunications Comm ission;2 . Philippine Postal Corporation.

c. The laws and rules on government reorganization as provided for in RepublicAct No. 6656. otherwise known as the lieorganization Law, shall govern thereorgan irntion pi-ocess of the Department,

S E C . 14. /-'o.~/n/ cp/ntor;y Au/ / ior i [y .The exclusive power and authority to regulate thepostal tlclivery services industry, as provided for under Presidential D ecree No. 240 andI?epublic Act No. 7354, is hereby transferred to the Department.SIX. IS . E-Goi,eixwieii/ Fiirid. There shall be an E-Government Fund to be administeredby tlie Departinent, which is a Special Account in tlie General Fund, created s pecificallyto firrid cross-agency and citizen-centric govcrnment 1CT projects. The Fund shall betiscd to support and co-finance projects that enable the government to expand its ability toconduct activities electronically and provide li.ontline services through the developmentarid iiiipleriientatio~iof innovative uses of the Internet or other emerging technologies.I Iuwcver, internal IT systems meant to support the agencies' IT operations shall hcdial-get1 against thc a genc ies' o w n budgetary allocation.S E C . 16. /nip/e,7ieii/n/ion q / the X/'Wevc6. 111 conso nanc e w ilh the objec tives ofAh in i s t rn t ive Order N o. 332 and Republic Act No. 8792, the primary respoiisihilityover th e iinplcmcntation of the IIPWeh or [lie electronic online rietwoi-k of th eg._ovcrniiicnt whic h shall serve as initial platrotin of the Government InformationIn l ' rastruct~1re (GII). is lierehv transferred to the Deimtmcnt. For this purpose. thc

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Ucliartincnt shall continue utilization of all funds, monies, interests. and propertiesoii st atid ins wid accruing from t lie RPW e b .S EC. 17. S c d o r o i md I/7dw/r:v 7osk Focws . Thc Departiiient m ay create sectoral i indindustry (ask times. (cclintcal working gi-oulis, advisory bodies o r conmiittees f ix thelilt-tlicrance of its ohjectivcs. Additional private sector representatives. sucli :IS fromiiciidcnic ant1 ictleration oi private industries directly iuvolved i n ICT. as well as othcrNGAs. L G U s ontl government owned and controlled corporations (GOCCs), may beappo in ted to tliese working groups. Goveiiiment IT professionals m ay also he tapped t opLtrtnlic i n the w ork of the Dep aim ent through these working groups.SEC. 18. Srf.icc/irre nrid Stqffhg f n t t o n . The Department shall determiiic itsorgniiizational structure and create new divisions or units as i t may deem necessary. antlslid1 appoint officers and employees of the Depatltnent i n accordance with the CivilService LAW, rules, and regulations.SEC. 19. MogfinCcuYn. Employees of the Department shall he covered by Republic Act8430, which provides a magna r a t a for scientists, engineers, researchers an d othersciencc and technology personnel in the government.SEC. 20. Sq7nrntiori from Service. Employees separated from the service as a result ofiliis reorganization shall, within ninety (90) days therefrom, receive the separation antlrctii'cnicnt benefits to which they may be entitled under Executive Order No. 366.I'rovttlecl that such separ ation pay and retirement bene fits shall have priority of paymentou t 0 1 the savings of the department or ag ency.SIX. 2 1. , , l / ~ ~ j i . ~ ~ ~ f ~ ; ~ r / i o ~ ~ .he amount needed for the initial iniplenlentation of this Acts l i a l l he taken from the current fiscal year's appropriation of the ClCT through the Ol'fjcc01 ' tlic i'rcsidcnt a n d all agencies herein absorbed by or attached to the Departnicnt.'flicrcatlei-, tlie aniou nt needed for the operation and maintenance of'the D epartment sha l lhe included in the Ge neral Appropriations Act, provided that for the next fiscal year, theaniount shall he One Billion Two Hundred Million Pesos (1'1,200,000,O0O.OO).SEC. 22. /?q~eci/ i / ig louse. A11 laws, decrees, executive orders, ru les and regulations ant lother issuanccs or parts thereof which are inconsistent with this Act are liereby rcpcaletl.ii n cnt l ctl or in od fied accordinglySEC. 23 . S c p r d d i [ v C l a ~ r s c . I f any provision of this Act shall be declared~~ i~cons t i l u t iona lr invalid, tlie other provisions not othetwise affected shall remain in fullforce and efl'ect.S E C . 24. cfli,r/ii,i/y Clouse. This Act shall take effect fifteen (15) days fi-onl itspublicaticin i n at lcast two (2) papers of general circulation~ / ~ / J l ' O l ' ~ ' d

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