REPUBLIC ACT NO. 7796
August 8, 1994
RULES AND REGULATIONS IMPLEMENTING THE
TESDA ACT OF 1994AN
ACT
CREATINGTHE
TECHNICALEDUCATION AND SKILLS DEVELOPMENTAUTHORITY, PROVIDING FOR ITS POWERS,STRUCTURE AND FOR OTHER PURPOSESSECTION 1.
Title. — This Act shall be known as the “Technical
Educational and Skills Development Act of 1994” or the“TESDA Act of 1994.”
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SECTION 2.
Declaration of Policy. — It is hereby declared thepolicy of the State to provide relevant, accessible, high quality andefficient technical education and skills development in support of thedevelopment of high quality Filipino middle-level manpower
responsive to and in accordance with Philippine development goals
and priorities.
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The State shall encourage active participation of various concerned
sectors, particularly private enterprises, being direct participants inand immediate beneficiaries of a trained and skilled work force, inproviding technical education and skills development opportunities.
SECTION 3.
Statement of Goals and Objectives. — It is the goal
and objective of this Act to:chanroblespublishingcompany

a) Promote and strengthen the quality of technical educationand skills development programs to attain international
competitiveness.
b) Focus technical education and skills development on
meeting the changing demands for quality middle-levelmanpower;c) Encourage critical and creative thinking by disseminating
the scientific and technical knowledge base of middle-levelmanpower development programs;d) Recognize and encourage the complementary roles of public
and private institutions in technical education and skills
development and training systems; ande) Inculcate desirable values through the development of moral
character with emphasis on work ethic, self-discipline, selfreliance and nationalism.
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SECTION 4.

Definition of Terms. — As used in this Act:a)
“Skill” shall mean the acquired and practiced ability to carry out
a task or job;b)
“Skills Development” shall mean the process through whichlearners and workers are systematically provided with learning
opportunities to acquire or upgrade, or both, their ability, knowledge
and behavior pattern required as qualifications for a job or range ofjobs in a given occupational area;c)“Technical Education” shall refer to the education process
designed at post-secondary and lower tertiary levels, officiallyrecognized as non-degree programs aimed at preparing technicians,
para-professionals and other categories of middle-level workers byproviding them with a broad range of general education, theoretical,
scientific and technological studies, and related job skills training;d)“Trade” shall mean any group of interrelated jobs or any
occupation which is traditionally or officially recognized as craft orartisan in nature requiring specific qualifications that can be acquired
through work experience and/or training;e)“Middle-Level Manpower” refers to those :1)
who have acquired practical skills and knowledge throughformal or non-formal education and training equivalent to at least asecondary education but preferably a post-secondary education with acorresponding degree or diploma; or2)skilled workers who have become highly competent in theirtrade or craft as attested by industry.
f)“Private Enterprises” refers to an economic system under which
property of all kinds can be privately owned and in which individuals,
alone or in association with another, can embark on a businessactivity. This includes industrial, agricultural, or agro-industrial
establishments engaged in the production, manufacturing,processing, repacking or assembly of goods including service-oriented
enterprises;
chanroblespublishingcompanyg)“Trainers” shall mean persons who direct the practice of skills
towards immediate improvement in some task;h)“Trainors/trainers” shall mean persons who provide training totrainers aimed at developing the latter’s capacities for imparting
attitudes, knowledge, skills and behavior patterns required forspecific jobs, tasks, occupations or group of related occupations;i)“Trainees” shall mean persons who are participants in a
vocational, administrative or technical training program for the
purpose of acquiring and developing job-related skills;
j)“Apprenticeship” training within employment with compulsory
related theoretical instructions involving a contract between an
apprentice and an employer on an approved apprenticeable
occupation;
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k)“Apprentice” is a person undergoing training for an approved
apprenticeable occupation during an established period assured by anapprenticeship agreement;l)“Apprenticeship Agreement” is a contract wherein a prospective
employer binds himself to train the apprentice who in turn accepts
the terms of training for a recognized apprenticeable occupationemphasizing the rights, duties and responsibilities of each party;m) “Apprenticeable Occupation” is an occupation officiallyendorsed by a tripartite body and approved for apprenticeship by the
Authority;n)“Learners” refer to persons hired as trainees in semi-skilled andother industrial occupations which are non-apprenticeable.
Learnership programs must be approved by the Authority.
o)“User-Led” or “Market-Driven Strategy” refers to a strategy
which promotes strengthened linkages between educational/training
institutions and industry to ensure that appropriate skills andknowledge are provided by the educational system;p)“Dual System/Training” refers to a delivery of quality technicaland vocational education which requires training to be carried out
alternatively in two venues: In school and in the production plant.
In-school training provides the trainee the theoretical foundation,
basic training, guidance and human formation, while in-plant
training develops his skills and proficiency in actual work conditions
as it continues to inculcate personal discipline and work values;q)“Levy Grant System” refers to a legal contribution fromparticipating employers who would be beneficiaries of the program(often as a percentage of the payroll) which is subsequently turned
over or rebated to enterprises offering employee training programs.
SECTION 5.
Technical Education and Skills Development
Authority; Creation. — To implement the policy declared in this Act,
there is hereby created a Technical Education and Skills Development
Authority (TESDA), hereinafter referred to as the Authority, whichshall replace and absorb the National Manpower and Youth Council

(NMYC), the Bureau of Technical and Vocational Education (BTVE)and the personnel and functions pertaining to technical-vocational
education in the regional offices of the Department of Education,
Culture and Sports (DECS) and the apprenticeship program of the
Bureau of Local Employment of the Department of Labor and
Employment.
SECTION 6.
Composition of the Authority. — The Authority shallbe composed of the TESDA Board and TESDA Secretariat.
SECTION 7.
Composition of the TESDA Board. — The TESDA
Board shall be composed of the following:
The Secretary of Labor and Employment Chairperson
Secretary of Education, Culture and Sports
Secretary of Trade and Industry
Secretary of Agriculture
Secretary of Interior and Local Government
Director-General of the TESDA Secretariat-

Co-Chairperson
Co-Chairperson
MemberMemberMemberIn addition, the President of the Philippines shall appoint thefollowing members from the private sector: two (2) representatives,
from the employer/industry organization, one of whom shall be awoman; three (3) representatives, from the labor sector, one of whomshall be a woman; and two (2) representatives of the national
associations of private technical-vocational education and training
institutions, one of whom shall be a woman. As soon as all themembers of the private sector are appointed, they shall so organize
themselves that the term of office of one-third (1/3) of their number
shall expire every year. The member from the private sector
appointed thereafter to fill vacancies caused by expiration of terms
shall hold office for three (3) years.
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The President of the Philippines may, however, revise themembership of the TESDA Board, whenever the President deems it
necessary for the effective performance of the Board’s functions
through an administrative order.

The TESDA Board shall meet at least twice a year, or as frequently as
may be deemed necessary by its Chairperson. In the absence of the
Chairperson, a Co-Chairperson shall preside. In case any member ofthe Board representing the Government cannot attend the meeting,he or she shall be regularly represented by an undersecretary or
deputy-director general, as the case may be, to be designated by suchmember for the purpose.
The benefits, privileges and emoluments of the Board shall beconsistent with existing laws and rules.
SECTION 8.
Powers and Functions of the Board. — The
Authority shall primarily be responsible for formulating, continuing,coordinated and fully integrated technical education and skills
development policies, plans and programs taking into consideration
the following:a)the State policy declared herein of giving new direction andthrusts to efforts in developing the quality of Filipino human resource
through technical education and skills development;b)
the implementation of the above-mentioned policy requires thecoordination and cooperation of policies, plans, and programs ofdifferent concerned sectors of Philippine society;c)equal participation of representatives of industry groups, tradeassociations, employers, workers and government shall be made therule in order to ensure that urgent needs and recommendations arereadily addressed; andd)improved linkages between industry, labor and government
shall be given priority in the formulation of any national-level plan.
The Board, shall have the following powers:
1)
promulgate, after due consultation with industry groups, tradeassociations, employers, workers, policies, plans, programs andguidelines as may be necessary for the effective implementation ofthis Act;2)organize and constitute various standing committees,
subsidiary groups, or technical working groups for efficient
integration, coordination and monitoring technical education andskills development programs at the national, regional, and local
levels;3)enter into, make, execute, perform and carry-out domestic andforeign contracts subject to existing laws, rules and regulations;4)
restructure the entire sub-sector consisting of all institutions
and programs involved in the promotion and development of middlelevel manpower through upgrading, merger and/or phase-out
following a user-led strategy;
5)
approve trade skills standards and trade tests as establishedand conducted by private industries;
6)
establish and administer a system of accreditation of bothpublic and private institutions;7)
establish, develop and support institutions’ trainors’ training
and/or programs;
8)
lend support and encourage increasing utilization of the dual
training system as provided for by Republic Act No. 7686;
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9)exact reasonable fees and charges for such tests and trainings
conducted and retain such earnings for its own use, subject toguidelines promulgated by the Authority;
10) allocate resources, based on the Secretariat’s recommendations,for the programs and projects it shall undertake pursuant to approved
National Technical Education and Skills Development Plan;
11) determine and approve systematic funding schemes such as the
Levy and Grant scheme for technical education and skills
development purposes;12) create, when deemed necessary, an Advisory Committee whichshall provide expert and technical advice to the Board to be chosenfrom the academe and the private sector: Provided, That in case theAdvisory Committee is created, the Board is hereby authorized to set
aside a portion of its appropriation for its operation; and13) perform such other duties and functions necessary to carry out
the provisions of this Act consistent with the purposes of the creationof TESDA.
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SECTION 9.
Power to Review and Recommend Action. — The
Authority shall review and recommend action to concerned
authorities on proposed technical assistance programs and grants-inaid for technical education or skills development, or both, including
those which may be entered into between the Government of thePhilippines and other nations, including international and foreignorganizations, both here and abroad.
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SECTION 10.
The TESDA Secretariat. — There is hereby created aTechnical Education and Skills Development Authority Secretariat
which shall have the following functions and responsibilities:a)to establish and maintain a planning process and formulate anational technical education and skills development plan in which themember-agencies and other concerned entities of the Authority at
various levels participate;b)
to provide analytical inputs to policy decision-making of the
Authority on allocation of resources and institutional roles andresponsibilities as shall be embodied in annual agencies technicaleducation and skills development plans, in accordance with the
manpower plan for middle-level skilled workers as approved by the
Authority;c)
to recommend measures, and implement the same upon
approval by the Authority, for the effective and efficient
implementation of the national technical education and skills
development plan;d)to propose to the Authority the specific allocation of resources
for the programs and projects it shall undertake pursuant to approved
national technical education and skills development plan;e)to submit to the Authority periodic reports on the progress andaccomplishment of work programs of implementation of plans andpolicies for technical educational and skills development;
chanroblespublishingcompanyf)to prepare for approval by the Authority an annual report to the
President on technical education and skills development;g)
to implement and administer the apprenticeship program asprovided for in Section 18 of this Act;h)to prepare and implement upon approval by the Authority aprogram for the training of trainers, supervisors, planners andmanagers as provided for in Section 23 of this Act;i)to enter into agreement to implement approved plans andprograms and perform activities as shall implement the declared
policy of this Act; andj)to perform such other functions and duties as may be assignedby the Board.
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SECTION 11.
Director-General. — The TESDA Secretariat shall beheaded by a Director-General, who shall likewise be a member of the
TESDA Board. The Director-General shall be appointed by the
President of the Philippines and shall enjoy the benefits, privileges ad
emoluments equivalent to the rank of Undersecretary.
As Chief Executive Officer of the TESDA Secretariat, the DirectorGeneral shall exercise general supervision and control over its
technical and administrative personnel.
SECTION 12.
Deputy Director-General. — The Director-Generalshall be assisted by two (2) Deputy Directors-General to be appointed
by the President of the Philippines on recommendation of the TESDA
Board. One to be responsible for Vocational and Technical Education
and Training and one to be responsible for Policies and Planning.

The Deputy Directors-General shall enjoy the benefits, privileges andemoluments equivalent to the rank of Assistant Secretary.
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SECTION 13.
Chief of Services for Administration. — The
Director-General shall also be assisted by a Chief of Services for
Administration who shall be a Career Civil Service Official to beappointed by the TESDA Board.
SECTION 14.
Structural Organization and Personnel. — The
TESDA Secretariat, in addition to the offices of the Director-General,
Deputy Director-General and Chief of Services for Administration
shall be composed of the following offices to be headed by an
Executive Director to be appointed by the Director-General and shallhave the rank and emoluments of Director IV.
a)Planning Office (PO) — The Planning Office shall be under the
Office of the Deputy Director-General and shall have the following
functions:1)
to design and establish planning processes and methodologies
which will particularly enhance the efficiency of resource allocation
decisions within the technical education and skills development
sector;2)
to lead in the preparation and periodic updating of a national
plan for technical education and skills development which shallbecome the basis for resource allocation decisions within the sector;
3)
to conduct researches, studies and develop information systems
for effective and efficient planning and policy-making within the
sector;4)
to develop and implement programs and projects aimed atbuilding up planning capabilities of various institutions within the
sector; and5)
to perform such other powers and functions as may be
authorized by the Authority.

b)
Skills Standards and Certification Office (SSCO). — The Skills
Standards and Certification Office shall be under the office of the
Deputy Director-General and shall have the following functions:1)
to develop and establish a national systemstandardization, testing and certification in the country;ofskills2)
to design, innovate and adopt processes and methodologies
whereby industry groups and workers’ guilds take note on
progressively the responsibility of setting skills standards for
identified occupational areas, and the local government units actively
participate in promoting skills standards, testing and certification;3)
to establish and implement a system of accrediting private
enterprises, workers’ associations and guilds and public institutions
to serve as skills testing venues;
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4)
to conduct research and development on various occupational
areas in order to recommend policies, rules and regulations for
effective and efficient skills and standardization, testing andcertification system in the country; and5)
to perform such other duties and functions as may be
authorized.
c)National Institute for Technical Vocational and Education
Training (NITVET). — The National Institute for TechnicalVocational and Education Training to be under the office of the
Deputy Director-General and shall have the following functions:1)
to serve as the research and development arm of thegovernment in the field of technical-vocational education andtraining;
2)
to develop curricula and program standards for various
technical-vocational education and training areas;3)
to develop and implement an integrated program for continuing
development of trainors, teachers and instructors within the technicaleducation and skills development sector;

4)
to develop programs and projects which will build up
institutional capabilities within the sector; and5)
to perform such other powers and functions as may be
authorized.
d)Office of Formal Technical Vocational Education and Training(OFFVET). The Office of Formal Technical Vocational Education andTraining to be under the office of the Deputy Director-General andshall have the following functions:chanroblespublishingcompany

1)
to provide policies, measures and guidelines for effective andefficient administration of formal technical-vocational education andtraining programs implementing by various institutions in the
country;2)
to establish and maintain a system for accrediting, coordinating
integrating, monitoring and evaluating the different formal technicalvocational education and training program vis-a-vis the approved
national technical education and skills development plan;3)
to establish and maintain a network of institutions engaged ininstitutionalized technical-vocational education and training,particularly with local government units; and4)
to perform such other duties and functions as may be
authorized.
e)
Office of the Non-Formal Technical-Vocational Education andTraining (ONFTVET). — The Office of the Non-Formal TechnicalVocational Education and Training to be under the Office of the
Deputy Director-General and shall have the following functions:1)
to provide direction, policies and guidelines for effective
implementation of non-formal, community-based technicalvocational education and training;2)
to accredit, coordinate, monitor and evaluate various nonformal technical-vocational education and training programs

implemented by various institutions particularly, by local government
units;
3)
to establish and maintain a network of institutions including
local government units, non-government organizations implementing
non-formal, community-based technical-vocational education andtraining;
4)
to perform such other powers and functions as may be
authorized.
f)
Office of Apprenticeship (OA). — The Office of Apprenticeshipshall be under the Office of the Deputy Director-General and shallhave the following functions:1)
to provide direction, policies andimplementation of the Apprenticeship system;

guidelines

on

the

2)
to accredit, coordinate, monitor and evaluate all apprenticeshipschemes and program implemented by various institutions andenterprises;3)
to establish a network of institutions and enterprises
conducting apprenticeship schemes and programs;4)
to perform such other powers and functions as may be
authorized.
g)Regional TESDA Offices. — The Regional TESDA Offices shallbe headed by Regional Directors with the rank and emoluments of
Director IV to be appointed by the President.
The Regional TESDA Offices shall be under the direct control of the
Director-General and shall have the following functions:1)
to serve as Secretariat to Regional Technical Education Skills
Development (TESDA) Committees;2)
to provide effective supervision, coordination and integration oftechnical education and skills development programs, projects andrelated activities in their respective jurisdiction;3)
to develop and recommend TESDA programs for regional andlocal-level implementation within the policies set by the Authority;4)
to perform such other duties and functions as may be deemednecessary.
SECTION 15.
The Provincial TESDA Offices. — The Provincial
Offices shall be headed by Skill Development Officers who shall havethe rank and emoluments of a Director III.
The Provincial TESDA Offices shall be under the direct control of the
Director-General and shall have the following functions:chanroblespublishingcompany

1)

to serve as Secretariat to Provincial TESDA Committees;2)
to provide technical assistance particularly to local government
units for effective supervision, coordination, integration andmonitoring of technical-vocational education and training programs
within their localities;3)
to review and recommend TESDA
implementation within their localities; andprogramsfor4)
to perform such other duties and functions as may be
authorized.
Furthermore, the TESDA Secretariat may be further composed bysuch offices as may be deemed necessary by the Authority. The
Director-General shall appoint such personnel necessary to carry out
the objectives, policies and functions of the Authority subject to Civil
Service laws, rules and regulations.
SECTION 16.
Compliance with the Salaries Standardization Law.
— The compensation and emoluments of the officials and employeesof the Authority shall be in accordance with the salarystandardization law and other applicable laws under the national
compensation and classification plan.
SECTION 17.
Consultants and Technical Assistance, Publication
and Research. — In pursuing its objectives, the Authority is hereby
authorized to set aside a portion of its appropriation for the hiring ofservices of qualified consultants, and private organizations forresearch work and publication in the field of technical education andskills development. It shall avail itself of the services of otheragencies of the Government as may be required.
SECTION 18.
Transfer of the Apprenticeship Program. — The
Apprenticeship Program of the Bureau of Local Employment of the
Department of Labor and Employment shall be transferred to the
Authority which shall implement and administer said program inaccordance with existing laws, rules and regulations.
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SECTION 19.
Technical Education and Skills Development
Committees. — The Authority shall establish Technical Education and
Skills Development Committees at the regional and local levels tocoordinate and monitor the delivery of all skills development
activities by the public and private sectors. These committees shall
likewise serve as the Technical Education and Skills Development
Committees of the Regional and local development councils. The
composition of the Technical Education and Skills Development
Committees shall be determined by the Director-General subject tothe guidelines to be promulgated by the Authority.
SECTION 20.
Skills Development Centers. — The Authority shallstrengthen the network of national, regional and local skills training
centers for the purpose of promoting skills development.
This network shall include skills training centers in vocational andtechnical schools, technical institutes, polytechnic colleges, and allother duly accredited public and private dual system educational
institutions. The technical education and skills development centersshall be administered and operated under such rules and regulations
as may be established by the Authority in accordance with the
National Technical Education and Skills Development Plan.

SECTION 21.
Formulation of a Comprehensive Development Planfor Middle-Level Manpower. — The Authority shall formulate acomprehensive development plan for middle-level manpower basedon a national employment plan or policies for the optimum
allocation, development and utilization of skilled workers for
employment entrepreneurship and technology development foreconomic and social growth. This plan shall, after adoption by the
Authority, be updated periodically and submitted to the President of
the Philippines for approval. Thereafter, it shall be the plan fortechnical education and skills development for the entire country
within the framework of the National Development Plan. The
Authority shall direct the TESDA Secretariat to call on its memberagencies, the private sector and the academe to assist in this effort.
The comprehensive plan shall provide for reformed industry-based
training program including apprenticeship, dual training system andother similar schemes intended to:a)promote maximum protection and welfare of the workertrainee;b)
improve the quality and relevance and social accountability oftechnical education and skills development;
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d)expand the range of opportunities for upward social mobility ofthe school-going population beyond the traditional higher levels offormal education.
All government and non-government agencies receiving financial andtechnical assistance from the government shall be required toformulate their respective annual agency technical education andskills development plan in line with the national technical educationand skills development plan. The budget to support such plans shallbe subject to review and endorsement by the Authority to the
Department of Budget and Management.

The Authority shall evaluate the efficiency and effectiveness ofagencies skills development program and schemes to make them
conform with the quantitative and qualitative objectives of thenational technical education and skills development plan.
SECTION 22.
Establishment and Administration of National
Trade Skills Standards. — There shall be national occupational skills
standards to be established by TESDA-accredited industry
committees.
The Authority shall develop and implement acertification and accreditation program in which private industry
groups and trade associations are accredited to conduct approved
trade tests, and the local government units to promote such trade
testing activities in their respective areas in accordance with theguidelines to be set by the Authority.
The Secretary of Labor and Employment shall determine theoccupational trades for mandatory certification.
All certificates relating to the national trade skills testing andcertification system shall be issued by the Authority through the
TESDA Secretariat.
SECTION 23.
Administration of Training Programs. — The
Authority shall design and administer training programs and schemesthat will develop the capabilities of public and private institutions toprovide quality and cost-effective technical educational and skills
development and related opportunities. Such training programs andschemes shall include teacher’s trainors’ training, skills training forentrepreneur development and technology development, costeffective training in occupational trades and related fields of
employment, and value development as an integral component of all
skills training programs.
SECTION 24.
Assistance to Employers and Organizations. — The
Authority shall assist any employer or organization engaged in skills
training schemes designed to attain its objectives under rules andregulations which the Authority shall establish for this purpose.
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SECTION 25.
Coordination of All Skills Training Schemes. — Inorder to integrate the national skills development efforts, all technicaleducation and skills training schemes as provided for in this Act shallbe coordinated with the Authority particularly those having to do withthe setting of trade skills standards. For this purpose, existing
technical education and skills training programs in the Government
and in the private sector, specifically those wholly or partly financedwith government funds, shall be reported to the Authority which shallassess and evaluate such programs to ensure their efficiency andeffectiveness.
SECTION 26.
Industry Boards. — The Authority shall establish
effective and efficient institutional arrangements with industry
boards and such other bodies or associations to provide direct
participation of employers and workers in the design andimplementation of skills development schemes, trade skills
standardization and certification and such other functions in thefulfillment of the Authority’s objectives.
SECTION 27.
Incentives Schemes. — The Authority shall develop
and administer appropriate incentives schemes to encourage
government and private industries and institutions to provide highquality technical education and skills development opportunities.
SECTION 28.
Skills Development Opportunities. — The Authority
shall design and implement an effective and efficient delivery systemfor quality technical education and skills development opportunities
particularly in disadvantaged sectors, with new tools of wealthcreation and with the capability to take on higher value-added gainful
activities and to share equitably in productivity gains.
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SECTION 29.
Devolution of TESDA’s Training Function to Local
Governments. — In establishing the delivery system provided for in
the preceding Section, the Authority shall formulate, implement andfinance a specific plan to develop the capability of local government
units to assume ultimately the responsibility for effectively providing
community-based technical education and skills development
opportunities: Provided, however, That there shall be formulated andimplemented, an effective and timely retraining of TESDA personnel
that would be affected by the devolution to ensure their being
retained if the concerned local government units would not be able toabsorb them.

SECTION 30.
Skills Olympics. — To promote quality skills
development in the country and with the view of participating ininternational skills competitions, the Authority, with the active
participation of private industries, shall organize and conduct annual
National Skills Olympics. The Authority, through the TESDA
Secretariat, shall promulgate the necessary rules and guidelines forthe effective and efficient conduct of Annual National Skills Olympics
and for the country’s participation in international skills Olympics.
SECTION 31.
The TESDA Development Fund. — A TESDA
Development
Fundisherebyestablished,tobemanaged/administered by the Authority, the income from which shallbe utilized exclusively in awarding of grants and providing assistanceto training institutions, industries, local government units for
upgrading their capabilities and to develop and implement training
and training-related activities. The contribution to the fund shall be
the following:a)a one-time lump sum appropriation from the National
Government;b)an annual contribution from the Overseas Workers Welfare
Administration Fund, the amount of which should be part of thestudy on financing in conjunction with letter (D) of Section 34;
c)donations, grants, endowments, and other bequests or gifts,andd)

any other income generated by the Authority.

The TESDA Board shall be the administrator of the fund, and as such,shall formulate the necessary implementing guidelines for the
management of the fund, subject to the following: a) unlessotherwise stipulated by the private donor, only earnings of private
contributions shall be used; and b) no part of the seed capital of thefund, including earnings, thereof, shall be used to underwrite
expenses for administration.

The Board shall appoint a reputable government-accredited
investment institution as fund manager, subject to guidelines
promulgated by the Board.
SECTION 32.
Scholarship Grants. — The Authority shall adopt asystem of allocation and funding of scholarship grants which shall be
responsive to the technical education and skills development needs ofthe different regions in the country.
SECTION 33.
TESDA Budget. — The amount necessary to financethe initial implementation of this Act shall be charged against theexisting appropriations of the NMYC and the BTVE. Thereafter, suchfunds as may be necessary for the continued implementation of thisAct shall be included in the annual General Appropriations Act.
SECTION 34.
Transitory Provisions. — a) Within two (2) months
after the approval of this Act, the President shall, in consultation with
the Secretary of Labor and Employment and the Secretary of
Education, Culture and Sports, appoint the private sector
representatives of the TESDA Board.
b)Within three (3) months after the appointment of the private
sector representatives, the President shall, upon the recommendationof the Board, appoint the Director-General.
c)Within four (4) months after the appointment of the DirectorGeneral, the Board shall convene to determine the organizational
structure and staffing pattern of the Authority.
chanroblespublishingcompanyd)Within one (1) year after the organization of the Authority, theBoard shall commission an expert group on funding schemes for the
TESDA Development Fund, as provided in Section 31, the results ofwhich shall be used as the basis for appropriate action by the Board.
e)
The personnel of the existing National Manpower and YouthCouncil (NMYC) of the Department of Labor and Employment andthe Bureau of Technical and Vocational Education (BTVE) of the
Department of Education, Culture and Sports, shall, in a holdovercapacity, continue to perform their respective duties andresponsibilities and receive their corresponding salaries and benefits
until such time when the organizational structure and staffing patternof the Authority shall have been approved by the Board: Provided,
That the preparation and approval of the said new organizational
structure and staffing pattern shall, as far as practicable, respect andensure the security of tenure and seniority rights of affected
government employees.
Those personnel whose positions are not included in the new staffing
pattern approved by the Board or who are not reappointed or whochoose to be separated as a result of the reorganization shall be paid
their separation or retirement benefits under existing laws.
SECTION 35.
Automatic Review. — Every five (5) years, after theeffectivity of this Act, an independent review panel composed of three(3) persons appointed by the President shall review the performanceof the Authority and shall make recommendations, based on its
findings to the President and to both Houses of Congress.
SECTION 36.
Implementing Rules and Guidelines. — The TESDA
Board shall issue, within a period of ninety (90) days after theeffectivity of this Act, the rules and regulations for the effective
implementation of this Act.
The TESDA Board shall submit to the Committees on Education, Arts
and Culture of both Houses of Congress copies of the implementing
rules and guidelines within thirty (30) days after its promulgation.
Any violation of this Section shall render the official/s concerned
liable under R.A. No. 6713, otherwise known as the “Code of Conduct
and Ethical Standards for Public Officials, and Employees” and otherexisting administrative and/or criminal laws.
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SECTION 37.
Repealing Clause. — All laws, presidential decrees,
executive orders, presidential proclamation, rules and regulations orparts thereof contrary to or inconsistent with this Act are hereby
repealed or modified accordingly.

SECTION 38.
Separability Clause. — If any provision of this Act isdeclared unconstitutional, the same shall not affect the validity andeffectivity of the other provisions hereof.
SECTION 39.
Effectivity Clause. — This Act shall take effect fifteen(15) days after its complete publication in two (2) newspapers ofgeneral circulation.
Approved: August 25, 1994
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