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IMPLEMENTING RULES AND
REGULATIONS OF
REPUBLIC ACT NO. 8747


 


IMPLEMENTING RULES AND REGULATIONS OF
REPUBLIC ACT NO. 8747
[AN ACT REQUIRING DISCLOSURE OF YEAR 2000 STATEMENTS AND READINESS OF COMPUTER BASED SYSTEMS, PRODUCTS, AND SERVICES, PROVIDING FUNDS THEREFORE
AND FOR OTHER PURPOSES]
 chanroblesvirtualawlibrary

Pursuant to the provisions of Section 9, Republic Act No. 8747, the following rules and regulations are hereby promulgated.chanrobles virtual law library
RULE I
DEFINITION OF TERMS

1.  Act - whenever used in these rules shall refer to Republic Act No. 8747 otherwise known as the "Philippine Year 2000 Disclosure and Readiness Act".

2.  Commission - whenever used in these rules and regulations shall refer to the Presidential Commission on Year 2000 Compliance created by virtue of Executive Order No. 14 issued on 19 August 1998.chanrobles virtual law library

3.  Y2K Solution Provider - shall refer to any company or entity providing a Year 2000 remediation product or service.chanrobles virtual law library

4.  Task Force - shall refer to the National Y2K Contingency Task Force.chanrobles virtual law library

5.  Y2K Bug or Millennium Bug - shall refer to the inability of computer-based systems and products which include software and hardware, and products with embedded systems, herein referred to as "systems and products" to function properly at the turn of the century.chanrobles virtual law library

6.  Y2K Compliant Systems and Products - shall refer to systems and products that have satisfied the criteria defined by the British Standards Institute such as:
    1.  No value for current date will cause any interruption in operation;

    2.  Data-based functionality must behave consistently for dates prior to, during, and after the Year 2000;

    3.  In all interfaces and data storage, the century in any date must be specified either explicitly or by unambiguous algorithms or inferencing rules;

    4.  Year 2000 must be recognized as a leap year;
or other criteria identified by the Commission shall function as they are supposed to function after the turn of the century.chanrobles virtual law library
7.  Y2K Ready - shall refer to the state inferred to persons or entities whose Y2K compliant systems and products, if interfaced with extraneous systems and products, may not necessarily produce Y2K compliance, but nevertheless have already in place a contingency plan to deal with the effects of the Y2K bug.chanrobles virtual law library

8.  Embedded Systems - shall refer to processes or chips in computers, or in electronic, mechanical or other products containing programmed instructions that perform control, protection and monitoring functions.chanrobles virtual law library

9.  Life Threatening - shall refer to systems and products perceived to cause health hazards or pose danger to personal safety if not remediated.chanrobles virtual law library

10.  Year 2000 Processing - shall refer to processing including calculating, comparing, sequencing, displaying, or storing and transmitting or receiving of data from, into, between the 20th and 21st centuries, and during the Years 1999 and 2000 and leap year calculations.chanrobles virtual law library

11.  Maker - shall refer to a person or entity including the Philippine Government or any political subdivision thereof that develops, prepares and issues a Year 2000 statement.chanrobles virtual law library

12.  Year 2000 Statement - shall refer to any communication or other conveyance of information expressed in plain written English by a party to another:
    1.  Concerning an assessment, projection, or estimate regarding Year 2000 processing capabilities or systems and products;

    2. Concerning plans, objectives, or timetables for implementing or verifying the Year 2000 processing capabilities of systems or products;

    3.  Concerning test plans, test dates, test results or operational problems or solutions related to Year 2000 processing by systems or products;

    4.  Reviewing, commenting on or otherwise directly or indirectly relating to Year 2000 processing capabilities;

    5.  Concerning contingency plans expressing at least worst case scenarios as a result of a Y2K bug; and   han robles virtual law library

    6.  An assertion of whether or not the systems and products are Y2K ready.chanrobles virtual law library
13.  Year 2000 Readiness Disclosure - shall refer to any written Year 2000 statement submitted by the maker to the Commission or to another concerned government agency as may be determined by the Commission, and assertion covered by Section 4(i)(6) of the Act to private entities with whom the maker may have transactions with.chanrobles virtual law library

14.  Year 2000 Remediation Product or Service - shall refer to a licensed software program, device sold or service rendered by a person or entity specifically designed to test and correct Year 2000 processing problems with respect to systems and products manufactured or rendered by another person or entity.chanrobles virtual law library

15.  Mission-critical - shall refer to sectors belonging to utilities, telecommunications, transportation, finance, healthcare, manufacturing, and government services; or in other sectors and entities as may be determined by the National Security Council (NSC) after due publication in a newspaper of general circulation, whose impact is life-threatening, has the potential of affecting larger groups of the population and a greater impact on the economy, or may jeopardize national security, regardless of whether they are private or public sectors or entities.chanrobles virtual law library

16.  Y2K Remediation - shall refer to all Y2K-related activities by an entity including but not limited to the completion of the following five (5) stages:
    1.  Awareness
    2.  Assessment or Inventory
    3.  Conversion and/or Replacement
    4.  Testing
    5.  Integration or Implementation
 
RULE II
DISCLOSURE OF YEAR 2000 STATEMENT


Section 1. Coverage. - This Act shall apply to all computer-based systems, products, and products with embedded systems.chanrobles virtual law library han robles virtual law library

Section. 2.  Entities Required to Disclose. - All government entities, private corporations, partnerships, associations, and individuals within the mission critical sectors as defined by the Act and this rules and who are engaged in mission-critical activities are required to disclose to the Commission or to other government agencies determined by the Commission their Year 2000 statement.chanrobles virtual law library

Section 3. Form and Contents of Year 2000 Statement. - Year 2000 Statement shall be made in a disclosure form provided by the Commission to be signed by the President or Chief Executive Officer of the company or country manager/representative in cases of multinational companies or by the agency heads for government agencies and shall state the following:

    a.  name and address of the government or private entity;

    b.  nature of business or products and services;

    c.  business or government registration;

    d.  assessment, projection or estimate on the Y2K processing capabilities of their systems and products;

    e.  plans, objectives or timetables for implementing or verifying the Y2K processing capabilities of their systems and products;

    f.  test plans, dates and results or other operational problems or Y2K solutions to their systems and products;

    g.  results of review and comments on their Y2K processing capabilities;

    h.  contingency plans expressing the worst case scenarios that may occur due to the Y2K bug;

    i.  assertion whether or not their systems or products are Y2K ready.chanrobles virtual law library
Section 4. Disclosure to Consumer. - As part of the assertion mentioned in the preceding section made by manufacturer, distributor, importer or seller of any product with embedded chips and in addition to the minimum requirements enumerated under Article 77 of RA 7394 (Consumer Act of the Philippines) and its implementing rules and regulations, all labels and packaging of all computer systems and other information technology-based product, which are actually Y2K compliant, shall bear the phrase "Y2K Compliant". The Year 2000 readiness disclosure shall be made readily available upon demand.chanrobles virtual law library

Section 5. Year 2000 Statement When and To Whom Submitted. - All Y2K Statements shall be submitted to the Y2K Commission or to other government agencies as determined by the Commission through mail or by messenger no later than every 15th day of each month. The Commission or other government agencies shall inscribe a reference number in every disclosure received.chanrobles virtual law library

Section 6. Publication of Year 2000 Readiness Disclosure. - Only assertions made by entities within the mission critical sectors and those required by the Commission to disclose their Y2K statement shall be published once every month in a newspaper of general circulation. The publication must include a listing of those entities that have asserted as being Y2K ready, not Y2K ready or not having disclosed at all.chanrobles virtual law library

The Commission shall publish the assertions every 30th of each month but only if it will not prejudice national security as determined by the National Security Council.chanrobles virtual law library

Entities within the mission critical sectors may publish or advertise in print, broadcast media and other collateral or in the web sites their Year 2000 Readiness Disclosure or Y2K Statement, provided it is consistent with the report submitted to the Commission or to other government agency and contain the statement "In compliance of Republic Act 8747".chanrobles virtual law library han robles virtual law library

RULE III
PROTECTION AND LIABILITY ON
YEAR 2000 STATEMENT


Section 1. Protection to Maker of Year 2000 Statement. - Any of the assertions enumerated in Section 4(i ) of Republic Act No. 8747, made in good faith, shall not be admissible against the maker of the disclosure to prove the accuracy or truth of such assertions in any action brought against the Maker or where the Maker is summoned at the instance of a defendant.chanrobles virtual law library

Such assertions shall be deemed not to have been made in good faith if:
      a.  the assertion was material to the cause of action;

      b.  where the assertion was with respect to the maker's own products or systems, that the assertion was made (i) with actual knowledge that the assertion was false, misleading or inaccurate, or (ii) with intent to deceive or mislead, or (iii) with reckless disregard as to the accuracy of the assertion; and

      c.  where the assertion was with respect to the products or systems not the maker's own, that the assertion was made (i) with actual knowledge that the assertion was false, misleading or inaccurate, or (ii) with intent to deceive or mislead, or (iii) without notice in that assertion that (1) the maker has not verified the contents of the republication, or (2) the maker is not the source of the assertion and such assertion is based on information supplied by another person or entity identified in that assertion.chanrobles virtual law library
Section 2. Liability for Malfunctioning. - All manufacturers, distributors, producers, importers, vendors, dealers, entities covered by, but not limited to those listed under Sec 4(l) of the Act shall be liable for damages under existing laws for any malfunctioning or defects of their systems and products by reason of not being Y2K ready.chanrobles virtual law library

Section 3. Effect of Non-Disclosure. - Failure of government entities, private corporations, partnerships, associations and individuals within the mission critical sector to disclose their Year 2000 statements as required by Section 2 of Rule II of these Rules, shall create the disputable presumption that their systems or products are not Y2K ready but only for purposes of any action brought by another party against them.chanrobles virtual law library

RULE IV
Y2K REMEDIATION


Section 1. Y2K Remediation of Government Agencies. - All government agencies may undertake Y2K remediation activities using Y2K solution providers either from the private or public sector, including the Technology & Livelihood Resource Center (TLRC).chanrobles virtual law library

Funds needed by individual government agencies for their Y2K remediation activities and all other Y2K activities shall be primarily sourced from the agencies' existing appropriations and savings. The government agency concerned may realign funds from any budget expense class of existing agency programs and projects for Y2K remediation activities and directly related Y2K readiness activities. Prior approval by the DBM is not necessary for the realignment of funds by government agencies.chanrobles virtual law library

Government agencies shall submit to the Commission a summary report on their budgetary realignments and adjustments within thirty (30) days from such realignment or adjustment.

Section 2. Canvassing of Y2K Solutions. - All acquisition of Y2K solutions by government entities shall be made through canvass notwithstanding the amount involved. The canvass shall be conducted by the concerned government entity; however, notice shall be given to the Commission and the TLRC prior to the conduct of canvassing and which notice shall be published once in newspaper of general circulation.chanrobles virtual law library

The acquisition of Y2K solutions package after the canvass, including but not limited to procurement or upgrading of computer equipment, systems and other IT resources, by a government entity shall not require prior clearance from any government agency.chanrobles virtual law library

Section 3. Canvassing Procedures. - Canvassing of Y2K solutions for government agencies shall be made through the following procedures:

    a.  The Canvassing Committee existing in every government agency shall be responsible in canvassing the Y2K solutions for their agency.chanrobles virtual law library

    b.  Government agencies must choose from at least three (3) solution providers, including the Technology & Livelihood Resource Center, for their Y2K solutions and indicating therein the cost and quality of their respective products and/or services.chanrobles virtual law library

    c.  The Canvassing Committee shall evaluate the proposals within seven (7) days and thereafter submit their evaluation to the Agency Head who shall have the sole authority to determine the most qualified solution provider.chanrobles virtual law library

    d.  Rules on canvassing provided in the preceding sub-paragraphs shall not apply if a government agency avails of the Y2K services and solutions of TLRC.
han robles virtual law library
Section 4. Review and Validation. - When deemed necessary by the Commission, the Y2k remediation undertaken by a private and government entity within the mission critical sector shall be reviewed and validated by an independent third party auditor duly registered with the Commission.chanrobles virtual law library

Section 5. Liability of Government Heads. - Any head of government agencies who fail to comply with any provision of the Act and the Rules and Regulations issued thereof shall be charged administratively without prejudice to the filing of civil and criminal cases against them.chanrobles virtual law library

RULE V
CONTINGENCY PLANNING

Section 1. Objectives. - Pursuant to Section 11 of the Act, contingency planning shall be formulated with the following objectives:

      Create a management and organizational structure and its networks and linkages to ensure formulation, implementation, and advocacy of national Y2K contingency plan;

      Coordinate formulation of procedures for dealing with Y2K-related disasters to include preventive, corrective and restorative measures; and

      Enhance national Y2K preparedness through effective coordination of nationwide public information activities.chanrobles virtual law library

Section 2. Creation and Composition of the National Y2K Contingency Task Force. - A National Y2K Contingency Task Force (NYCTF) is hereby created with the following agencies as members:   han robles virtual law library
 
    Chairman - Director General, National Security Council
    Co-Chairman - Chairman, Presidential Commission on Year 2000 Compliance
    • Chairman, National Disaster Coordinating Council
Members - Secretary, DOE

- Secretary, DPWH

    • Secretary, DOTC
    • Secretary, DOH
    • Secretary, DOF
    • Secretary, DTI
    • Secretary, DBM
    • Secretary, DILG
    • Secretary, DOST
    • Director-General, NEDA
    • Governor, BSP
    • Director- General, NCC
    • Director-General, TLRC
    • Director-General, PIA
    • Director-General, NICA
    • Commissioner, NTC
The members may designate their permanent alternates as their respective Action Officers to the Task Force whose ranks shall not be lower than Undersecretary or its equivalent.chanrobles virtual law library

Section 3. Function. - The Task Force shall be the central coordinating mechanism for the formulation, advocacy, and implementation of a National Y2K Contingency Plan (NYCP). The National Security Council, as lead agency, shall formulate the National Y2K Contingency Plan in collaboration with the Commission, the National Disaster Coordinating Council (NDCC) and the OPRs and other support agencies, taking into consideration the contingency plans of entities within the mission-critical sectors.chanrobles virtual law library

Section 4. Offices of Primary Responsibility (OPR). - Specific agencies are hereby designated as the Offices of Primary Responsibility (OPR) to provide direction to, and in coordinating with their respective private sector counterpart to ensure the formulation, integration, advocacy and implementation of Sectoral Y2K Contingency Plans:
 

      DOE/DPWH - Power, Oil and Gas/Water
      NTC - Telecommunications/Broadcasting
      DOTC - Transportation
      DOH - Healthcare
      DOF/BSP - GFIs/Banks
      DTI - Manufacturing
      DBM/DILG - National Gov't Agencies/Local Government Units
Section 5. Specific Tasks. - The Task Force shall have the following specific tasks:
    a.  Provide general approaches and strategies for effecting the appropriate Y2K-related emergency responses;

    b.  Manage and coordinate the development of Y2K contingency plans;

    c.  Oversee and coordinate contingency operations in the national, sectoral, and regional/provincial levels; and

    d.  Manage and coordinate the conduct of information campaigns to sustain order and public confidence.chanrobles virtual law library
Section 6. Organizational Set-up. - To support the National Y2K Contingency Task Force the regional, provincial, city and municipal disaster coordinating councils shall constitute themselves as the Y2K Contingency Task Forces for their particular areas. These task forces shall also create Technical and Administrative Working Groups to support their respective operations.chanrobles virtual law library

Section 7. Contingency Operations. - The Task Force shall establish coordinating channels to ensure effective implementation of Y2K contingency operations. A National Y2K Contingency Center (NYCC) shall be created by the Task Force to address coordination and operational requirements in the implementation of national, sectoral and local Y2K contingency plans. The Task Force shall ensure that the NYCC shall have in place intelligence, communications, alert and feedback systems to address its operational requirements. Likewise, sectoral contingency operations shall be implemented by the sectoral OPRs' nerve centers; and local contingency operations shall be implemented by the regional, provincial, city and municipal disaster action centers.chanrobles virtual law library

Section 8. Y2K Communication Plan. - The Commission and Task Force shall implement a nationwide information and advocacy campaign to generate public awareness on the Y2K problem and preparedness for its possible effects.chanrobles virtual law library

    a.  The Philippine Information Agency (PIA) shall be the primary agency to prepare and implement a communication plan to attain this objective. The PIA shall be assisted in its task by the Commission, the NDCC and the NSC. It shall prepare a budget plan to support identified Y2K advocacy activities to be endorsed by the Commission and the NSC to the DBM for necessary funding.chanrobles virtual law library chanroblesvirtualawlibrary

    b.  The PIA shall effect close coordination among national government, local government, and the private sector within the identified seven mission critical areas in conducting calibrated information campaigns. The PIA shall also undertake the following tasks to ensure proper formulation of the Communication Plan:
    1.  Undertake calibrated information drives directed at the national, sectoral, regional and sub-regional levels.chanrobles virtual law library

    2.  Provide technical assistance in the preparation of necessary information materials on the country’s Y2K preparedness situation for nationwide dissemination.chanrobles virtual law library

    3.  Design communication interventions and strategies and utilize media to effectively communicate Y2K-related information at all levels. It shall formulate key messages and identify source strategies and resource persons and appropriate channel strategies in radio, print, television and other forms of media to communicate them to the public.chanrobles virtual law library

    4.  Formulate and implement a dissemination strategy geared to: harnessing the resources of other OPS Bureaus; mobilizing the PIA regional offices to organize the national and local media during Y2K regional consultations as well as the regional association of government information offices; and, organizing a Y2K Speakers Pool.chanrobles virtual law library
RULE VI
CONGRESSIONAL OVERSIGHT COMMITTEE
Section 1. Composition. - The Congressional Oversight Committee on the Y2K bug shall be composed of five (5) Senators and five (5) Members of the House of Representatives and co-chaired by the Chairs of the Committee on Science and Technology of the Senate and House of Representatives.chanrobles virtual law library

Section 2. Contents of Y2K Report. - Pursuant to the requirement of the Act and for purposes of appraising the Congressional Oversight Committee, the Commission and the Task Force shall submit to the Committee on a monthly basis a comprehensive progress report that shall contain essential information on Y2K but not limited to the following:

    a.  consolidated figures on budgetary realignment, use of savings, and other adjustments by the implementing and concerned government agencies to include source of funds to be re-aligned, the particular Y2K remediation and contingency activity to be funded, and the source of funds;

    b.  assessment report on the state of Y2K readiness of the seven (7) mission critical sectors, and other sectors as may be determined by the NSC to include:cralaw

      b-1. progress of Y2K remediation projects of individual entities;

      b-2. overall progress of Y2K sectoral remediation;

      b-3. problems encountered; and,

      b-4. recommendations

    c.  status of submission of Y2K disclosure statements;

    d.  work program of all implementing agencies of the Act;

    e.  progress report on the Contingency Planning activities and updated National Y2K Contingency Plans; and

    f.  other pertinent information as may be required by the Committee;
Provided, that copy of the report shall be furnished to the House Committee on Appropriations, Senate Committee on Finance, the Committees on Science and Technology of both Houses, the Department of Budget and Management, and the Commission on Audit within thirty (30) days from any budgetary realignment.chanrobles virtual law library han robles virtual law library

Section 3. Primary Function of the Committee. - The report submitted by the Commission as required in the preceding section shall be reviewed and assessed by the Committee for appropriate action. The Committee may call on the Commission and the Task Force to respond, through letters, inquiries that it may deem necessary to be clarified. It may also call upon the Commission and the Task Force to appear in a forum designated by the Committee.chanrobles virtual law library han robles virtual law library
 

RULE VII
FINAL PROVISIONS


Section 1. Assistance to the Commission. - The Commission, in addition to its powers and functions provided under Section of Executive Order No. 14, may require other government agencies to assist the Commission in the implementation and enforcement of the Act and other laws, rules and regulations issued by reason thereof.chanrobles virtual law library

Section 2. Amendatory Clause. - Any provisions of these Rules and Regulations may be amended by the implementing agencies and may take effect only after the ratification of the Commission.chanrobles virtual law library

Section 3. Separability Clause. - If any provision or portion of these Rules is declared invalid or unconstitutional, the remaining portions or provision hereof shall continue to be valid and effective.chanrobles virtual law library

Section 4. Effectivity Clause. - These Rules shall take effect immediately upon publication in a newspaper of general circulation.chanrobles virtual law library han robles virtual law library

Approved by the Presidential Commission on Year 2000 Compliance on the ninth day of July, nineteen hundred and ninety nine in Makati City.chanrobles virtual law library   han robles virtual law library
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