Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
FIFTEENTH CONGRESS
First Regular Session

House Bilt No, 2464

Introduced by Hon. Nelson L. Dayanghirang

EXPLANATORY NOTE

The era of globalization has placed extreme pressure on our government to
produce highly specialized and technical personnel in a relatively short period of
time. Given the rapid changes and developments in the field of Information
Technology and emergence of knowledge-based society, the Philippines has to
reorient the thrusts of its educational system to meet the growing needs and
demands of a highly competitive world market.

To achieve this arduous task, there is a need to formulate a viable,
comprehensive and sustainable long-term modernization plan for schools
primarily at the elementary and secondary levels

At present, the students in public schools have been left behind by their
counterparts in the private schools, Based on preliminary report of Department of
Education (DepEd), only 50% of the 4336 high schools nationwide have
computer laboratories. But most of them need to be repaired or upgraded
because after these computers have been delivered to schools, they have not been
properly maintained. A computer laboratory consists of a minimum of 10

computers.

Given the scarce resources of the national government, there is a need to be

more cost-effective and innovative
modernization programs, This can be acl

our approach to finance school
ved through active partnership with

local government units and private sector such as foundations private
corporations and business groups.

‘The School Modemization and Innovation bil

a)

>)

aims to’

Provide a broad framework for the institutionalization of a
comprehensive and sustainable modernization program for the public
schools,

Encourage the schools to become more innovative and resourceful in
developing and implementing programs geared towards
modernization;


¢) Develop mechanisms that will define the roles and responsibilities of
the officials from the regional, division down to the school levels in the
implementation of school modemization programs,

4) Provide mechanism on how the private sector can participate in the
program;

) Define regional and school modernization plans responsive to the
needs of the students in the area

‘The bill also seeks to establish the School Modemization and Innovation Trust Fund
which will augment the regular appropriations that will be provided under the annual General
Appropriations Act to finance the priority programs for school modernization and
improvement of public elementary and secondary schools.

This is the opportune time for the government to seriously consider ways of
increasing the share of budget devoted to computerization of schools, upgrading of
libraries and science laboratories. Moreover the application of information technology
in classroom instruction would increase efficiency in teaching and learning process and
enhance competencies of students.

In view of the foregoing, the immediate passage of this bill is eamestly sought

ane

orn


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City:

FIFTEENTH CONGRESS
First Regular Session

2464

‘House Bill No.

Introduced by Hon, Nelson L. Dayanghirang

AN ACTINSTITUTIONALIZING A SCHOOL MODERNIZATION AND
INNOVATION PROGRAM FOR PUBLIC ELEMENTARY AND
SECONDARY SCHOOLS, PROVIDING FUNDS THEREFOR, AND FOR
OTHER PURPOSES

Be it enacted by the Senate and House of Representatives
assembled -

in Congress

SECTION 1. Title. — This Act shall be known as the "School
Modemization and Innovation Act of 2010"

SECTION. 2. Declaration of Policy. — It is hereby declared the policy of
the State to promote a comprehensive and sustainable modernization program for all
public elementary and secondary schools aimed at improving the effectiveness and
efficiency of delivery of basic education. The State shall likewise take into
account the regional and sectoral needs and conditions in developing a viable
long-term modernization plan, The State shall also encourage the participation of
the private sector and local government units in strengthening programs which
provide relevant and adequate skills for public school children necessary for
them to be global competitive.

SECTION. 3. Statement of Purpose. — This Act seeks to attain the
following objectives

a) To provide a broad framework for the institutionalization of a
comprehensive and sustainable modernization program for the public

schools.

b.) To encourage the schools to become more innovative and resourceful in developing
and implementing programs geared towards modemization.
+ ¢) To develop mechanisms which will define the roles and responsibilities of
the officials from the regional, division down to the school levels in the
implementation of the school modemization programs

4) To provide mechanisms on how the private sector can participate in the
program.


e) To define a regional, division and school modemization and innovation
plan responsive to the needs of the students in the area.

SECTION 4. Implementing Agency. - The Department of Education,

hereinafter referred to as the "Department", shall be the main implementing agency of the
School Modernization and Innovation Act. The Secretary of Education shall be
responsible of ensuring the smooth implementation of the modemization plan for schools.

SECTION 5. Components. - The School Modernization and Innovation

Program shall consist of the following:

a) Computerization of public elementary and high schools, At least one
computer laboratory with a minimum of 10 computers shall be established in
every public high school nationwide, The Science high schools in every region
nationwide shall be given priority to the allocation of funds for the computerization
After more than 50% of the public high schools have been computerized, the
public elementary schools shall start its own massive computerization
program,

b) Upgrading, of Libraries in public elementary and secondary schools, A
well-equipped library shall he established in every public elementary and
secondary high school. The library should be provided with at least 2 computers,
which have Intemet access to assist the students in their research work,

ec} Promotion of an integrated distance-learning, program. The distance
learning program aims to enable the students from local and foreign
private schools to share their knowledge and expertise in the areas of
Science and Technology, Mathematics, English and Communication to
students in public schools through modern system of instructional and
communication technology. It may adopt an interactive system of
instruction through television, modern satellite communication or cable
system whichever is appropriate and feasible in the area, The students as well
as teachers in public schools shall be provided with opportunities to avail of
the latest trends and developments in the field of educational, science, technology
and communication even from abroad through distance leaming programs,

4) Upgrading of Science Laboratories. Each public elementary and high school will be
provided with a well-equipped science laboratories with modern science
equipment, which is essential in improving, the competencies of the
students in the area of science and technology

SECTION 6, Phrased Implementation of the Program. - The Department

shall implement the program in phases to ensure continuity and sustainability of
the projects, The phase of implementation will be determined according, to the
priorities set by the Department as well as the absorptive capacity of the schools.

SECTION 7. Financing of the Program. The Department of Budget and

Management shall allocate 10% of the total appropriations of the annual budget of
DepEd for the financing of the School Modernization and Innovation Program

SECTION 8. Formulation of School Moderniziltion and Innovation Plan at School and


Regional Level.

a) National Modernization and Innovation Plan. The Secretary of Education in
consultation with regional directors and schools __ division
superintendents shall develop a comprehensive and sustainable
modernization and innovation plan for public elementary and secondary
schools nationwide which will be implemented within a period of 10
years
The plan shall be divided into short, medium and long term period of implementation.
It shall take into account the rapid changes in the field of information technology,
communication and instructional delivery in various part of the world. It shall also
identify sources of funding both from local and international financial institution as
well as the role of private sector, local government units and other members of the
civil society. It shall likewise define the national standards and framework, which will
be adopted in developing the individual plans.

b) Regional Modernization and Innovation Plan. The Regional Director in
coordination with the Schools Division Superintendents shall formulate a
modernization framework consistent with national standards which will
serve as the basis for the plan taking, into consideration the specific needs,
and requirements of the region. The regional plan shall highlight the
peculiarities and unique needs of the various schools within its
jurisdiction, :

©) School Modernization and Innovation Plan. Each school shall formulate its
own 10-year modernization plan which reflects the aspirations and goals
of the school based on the regional plan of action, The plan shall consist
of an assessment of the existing, needs of the school as well as an
inventory of existing educational facilities, priority programs for the
allocation of funds, strategies to mobilize financial resources to augment
regular budget and strategies to manage the use of personnél, physical and fiscal
resources, The individual plans of the schools shall be submitted to the regional
offices for consolidation

SECTION 9. School Modernization and Innovation Trust Fund. - A

School Modernization and Innovation Fund, hereinafier referred to as the Fund, is
hereby established, exclusively to augment the regular appropriations
provided under Section 7 to finance the priority programs fot school
modernization and improvement of public elementary and secondary schools.

a) The government's contribution to the Fund shall be the following:
1) The amount of Fifteen billion pesos (P15, 000,000,000) as seed
capital;

2) The equivalent of twenty percent (20%) of the annual gross
earnings of the Philippine Amusement Gaming Corporation
(PAGCOR)

3) The equivalent of 10%, annual share on the Total gross collections of
the travel tax


4) The equivalent of 20% of any additional increase annually in the fees
for vehicle registration;

5) The equivalent of 2% of the additional increase annually in
revenue collections.

6) The equivalent of 10% the sales of the lotto operations of the
Philippine Charity Sweepstakes Offices

The fund shall have a private portion to be raised from donations and gifts
and other conveyances including materials, equipment, properties and services by
gratuitous title

©) The fund shall be distinct and separate from the schools regular allotment
for maintenance and other operating expenses (MOOE).

d) The Department shall be authorized to use the annual interest income
of the Trust Fund provided that the expenditures will be used directly
for the implementation of the modernization programs and not oil
the regular programs of the Department. Provided further that 50% of
the entire annual income shall be retained in the Bureau of the Special Treasury.

SECTION 10, Management and Administration of the Fund. - The Fund
shall be administered by the Department of Education. For sound and judicious
management of the Fund, the Commission shall appoint a reputable government
financial institution as portfolio manager of the Fund, subject to the following
conditions.

As administrator of the Fund, the Department shall prepare the necessary
guidelines for its use, subject to the following conditions:
a) No part of the seed capital of the Fund, including earnings thereof
shall be used to underwrite overhead expenses of the administration;
b) Unless otherwise stipulated by the private donor, only earnings of
private contributions shall be used for administrative expenses;

c) The Department shall appoint and organize a separate staff that will be
independent administratively from the Department, It shall also enjoy fiscal
autonomy from the Department

SECTION 11. Mandatory Allocation. - Each local government unit is
hereby directed to allocate at least 5% of their Special Education Fund to
augment the appropriations for the financing of programs in line with the thrusts, of
the school modernization and innovation program.

SECTION 12. Uses of the Fund. - The School Modernization and
Innovation Fund shall be used to finance the following:

a.) Projects, which have been approved and certified as priority by the National
Executive Committee and Regional Modernization Committees created
under Section 9 based on the guidelines and criteria formulated by the
Department,


b,) In service training of the teachers in the area of computer literacy and
instructional communication technology

©) Procurement of computer equipments including; maintenance of
computer laboratories, audio visual and multimedia facilities, and
appropriate education technology softwares

d.) Procurement of science equipments for science laboratories of schools

SECTION 13. Order of Priority in the allocation of funds. In 1 order for the
school to be given priority in the allocation of funds from the School
Modernization Innovation Trust fund, The following criteria should be met

a) ‘The programs, which will be funded, should be in line with the
formulated regional and school modernization plans.

b) The school should have mobilized additional 40%: counterpart
funding, from either the local government unit, private corporations,
foundations, business groups or private individuals for every
program which will be implemented

©) The programs have been approved by either the Regional
Modernization Committee, and the National Executive Committee or
both depending on the funding required

SECTION 14. Selection Process. - The individual schools nationwide are
directed to develop project proposal’s in line with the modernization thrusts of
their region and submit to their respective regional offices to determine its
feasibility and contribution to the overall thrusts of school modernization
in the country

‘A National Executive Modernization Committee shall be established, It
shall be headed by the Secretary of the Department of Education, the
Undersecretary for Programs and Directors of Elementary and Secondary
Education and 2 representatives from the private sector. It shall be in- charge in
evaluating projects with national application and coverage.

A Regional Modernization Committee headed by the Regional Director
and composed of 3 Division Superintendents and 2 Representatives from Parent Teachers
Association in the region shall be established to evaluate all project proposals
at the regional level. The Regional Modernization Committee shall have the
authority to approve and recommend release of funding for projects With a
funding requirement of P500,000.00 and less.

However, the approved project proposals with a funding requirement of
more than P500,000.00 will be forwarded to the National Executive
Modernization Committee chaired by the Secretary of Department of Education
or his duly designated representative for final review and approval.

The Department shall promulgate guidelines for the selection of the
project proposals, which will be funded by the School Modernization
and Innovation Fund


SECTION 15. Private Sector Participation. - The members of the private
sector are hereby encouraged to provide technical and/or financial support to
the schools as they pursue their modernization plans. The private
corporations, foundations, business groups or individual who shall provide support to
modernization programs shall be allowed to deduct from their gross income
100% of the expenses directly used to finance the implementation of the
program in the schools.

The schools which would be able to seek at least counterpart funding, support
from private corporations, foundations, business groups individuals a well
as local government in their respective local communities shall he given the
priority the provision of direct grants and funding from the School
Improvement and Innovation Fund particularly in programs which are
mentioned in Section 9,

SECTION 16. Implementing Rules and Regulations. - The Secretary of Education
shall promulgate the implementing rules and regulations within (90) ninety days after the
approval of this Act

SECTION 17. Separability Clause. - If any portion or provision of this
‘Act shall he declared unconstitutional, such declaration shall not invalidate other parts
thereof, which shall remain in full force and effect.

SECTION 18, Repealing Clause. - All laws and rules and regulations or

parts thereof inconsistent with the provisions of this Act are, hereby repealed or
modified accordingly

SECTION 19. Effectivity. - This Act shall take effect fifteen (15) days
following the publication in at least two (2) newspapers of general circulation.

Approved,