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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Twentieth Congress
First Regular Session

House Bill No. 1269

Introduced by Honorable Roy M. Loyola

EXPLANATORY NOTE

Under the Local Government Code of 1991 (LGC), the Special Education Fund,
sourced from the additional levy of one percent of the assessed value of real
Property collected by local governments. It further mandates that SEF proceeds
shall be used “for the operation and maintenance of public schools, construction and
repair of school buildings, facilities and equipment, educational research, purchase
of books and periodicals, and sports development as determined and approved by
the Local School Board.’

In 2011, the Philippine Institute for Development Studies assessed the
application of the LGC and Republic Act No. 9155? and found that although not
inconsistent with each other, the provisions of the said laws are not congruent with
one another and that the mismatches cause confusion and in general, a lack of
clarity in the implementation of both laws especially with respect to the utilization of
the SEF. Specifically, the study highlighted that the term “operation and
maintenance of public schools" in Section 272 of the LGC is subject of varying
interpretations which although gives local school boards flexibility to respond to
actual needs at the level of the schools, it likewise blurs accountability considering
that good expenditure assignment in fiscal decentralization requires clarity in the
assignment of functions across levels of governments.

In the 16th Congress, as Chairperson of the Committee on Local Government,
the Committee undertook a review of the Local Government Code and among the

| Republic Act (R.A.) No. 7160, Sec. 235
? ibid, Sec. 272
> Governance of Basic Education Act of 2001


provisions covered by said review is the SEF. As a result of the hearing and the
consultations made, we are proposing in this measure the amendment of Section
272 by expanding the list of expenses where the proceeds of the fund may be used.
By expanding the coverage of the SEF, we will be institutionalizing and advocating
for the rights and due compensation of our education sector personnel and learners,
to give our future workforce a robust, more responsive support and boost Filipino
competitiveness in the global economy.

In view of the foregoing, the passage of this bill is earnestly sought.

OY M. LOYOLA
esentative
Fifth District, Cavite


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
‘Twentieth Congress
First Regular Session
House Bilt No,_1269
Introduced by Honorable Roy M. Loyola
AN ACT
EXPANDING THE PURPOSE AND APPLICATION OF THE SPECIAL
EDUCATION FUND, AMENDING FOR THE PURPOSE SECTION 272 OF
REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE “LOCAL
GOVERNMENT CODE OF 1991” AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines
in Congress assembled:

Section 1. Section 272 of Republic Act No. 7160 is hereby amended to read
as follows:

“Sec. 272. Application of the Proceeds of the Additional One Percent SEF

Tax. — The proceeds from the additional one percent (1%) tax on real

property accruing to the Special Education Fund (SEF) shall be

automatically released to the local school boards: Provided, That in case

of provinces, the proceeds shall be divided equally between the provincial

and municipal school boards: Provided, however, That the proceeds shall

be allocated, [ferthe—operation—and_maintenance—of_publie—schoels;



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DETERMINED AND APPROVED BY THE LOCAL SCHOOL BOARD, FOR

THE FOLLOWING EXPENSES:

1.

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OPERATION AND MAINTENANCE OF PUBLIC SCHOOLS;
ACQUISITION OF SCHOOL SITES OR LANDS;
CONSTRUCTION AND REPAIR OF SCHOOL BUILDINGS,
LEARNING CENTERS, LIBRARIES, AND SCHOOL
DORMITORIES;

FACILITIES AND EQUIPMENT INCLUDING BUT NOT
LIMITED TO INFORMATION TECHNOLOGY EQUIPMENT
AND COROLLARY SUPPORT SERVICES, SCHOOL
FURNITURE AND FIXTURES, AND MEDICAL AND DENTAL
‘SUPPLIES;

PAYMENT OF COMPENSATION AND AUTHORIZED
ALLOWANCES, COMPETENCY TRAININGS AND OTHER
BENEFITS OF LOCALLY-HIRED TEACHING AND NON-
TEACHING PERSONNEL: PROVIDED, THAT THE RATES OF
COMPENSATION AND AUTHORIZED ALLOWANCES OF
LOCALLY-HIRED TEACHING AND NON-TEACHING
PERSONNEL SHALL BE DETERMINED BY THE LSB- BASED
ON FUNDS AVAILABLE, BUT AT RATES NOT TO EXCEED
THE SALARY SCHEDULE BEING IMPLEMENTED BY THE
LGU CONCERNED;

ANY ADDITIONAL AUTHORIZED ALLOWANCES GRANTED

BY LGUS TO NATIONALLY-HIRED TEACHING AND


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NON-TEACHING PERSONNEL CHARGEABLE AGAINST THE
SEF AS OF 31 DECEMBER 1997: PROVIDED, THAT SUCH
ADDITIONAL AUTHORIZED ALLOWANCES GRANTED
THEREAFTER SHALL BE CHARGED TO THE GENERAL FUND:
PROVIDED, FURTHER, THAT IN CASE OF FOURTH TO
SIXTH CLASS MUNICIPALITIES, SUCH ADDITIONAL
AUTHORIZED ALLOWANCES MAY STILL BE CHARGED TO
SEF SO LONG AS THE SAME DOES NOT EXCEED 10%
THEREOF, SUBJECT TO EXISTING BUDGETING RULES
AND REGULATIONS;

OPERATION OF (I) NON-FORMAL EDUCATION PROGRAMS,
(II) EARLY CHILDHOOD EDUCATION, (III) SPECIAL
EDUCATION, (IV) SENIOR HIGH SCHOOL, (V) OPEN HIGH
SCHOOL PROGRAM, (VI) MADRASAH CLASSES, AND (VII)
REMEDIAL CLASSES, INCLUDING THE PAYMENT OF
SALARIES, AUTHORIZED ALLOWANCES, AND OTHER
BENEFITS OF LOCALLY-HIRED TEACHING AND NON-
TEACHING PERSONNEL OF THE PROGRAM, AND THE
CONDUCT OF TEACHERS’ COMPETENCY TRAININGS;
OPERATION OF ALTERNATIVE LEARNING SYSTEM (ALS)
INCLUDING PAYMENT OF SALARIES, AUTHORIZED
ALLOWANCES AND OTHER BENEFITS OF THE LOCALLY-

HIRED ALS LEARNING FACILITATORS;


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9. EDUCATIONAL RESEARCH;
10. PURCHASE OF BOOKS AND PERIODICALS;
11, SPORTS DEVELOPMENT;
12. MENTAL HEALTH PROGRAMS; AND,
13. FEEDING PROGRAMS.

NOTWITHSTANDING ANY PROVISION TO THE CONTRARY, ALL
EXPENSES ENUMERATED UNDER THIS SECTION SHALL BE SUBJECT TO
THE PREVAILING POLICIES AND GUIDELINES OF THE DEPARTMENT OF
EDUCATION (DEPED).

ALL LOCAL SCHOOL BOARDS SHALL SUBMIT AN ANNUAL REPORT
ON THE COLLECTION, ALLOCATION, AND UTILIZATION OF THE SPECIAL
EDUCATION FUND TO THE BUREAU OF LOCAL GOVERNMENT FINANCE
UNDER THE DEPARTMENT OF FINANCE (DOF-BLGF), COPY FURNISHED
THE LOCAL SANGGUNIAN CONCERNED, REGIONAL OFFICES OF THE
DEPARTMENT OF INTERIOR AND LOCAL GOVERNMENT (DILG), DEPED
AND THE DEPARTMENT OF BUDGET AND MANAGEMENT (DBM) ON OR
BEFORE 31 MARCH OF THE SUCCEEDING YEAR.

THE DOF-BLGF SHALL THEN SUBMIT TO THE SENATE COMMITTEES
ON LOCAL GOVERNMENT AND EDUCATION, ARTS AND CULTURE AND
HOUSE COMMITTEES ON LOCAL GOVERNMENT AND BASIC EDUCATION
AND CULTURE, A CONSOLIDATED REPORT ON THE COLLECTION AND
UTILIZATION OF THE SEF WITHIN NINETY (90) DAYS FROM RECEIPT OF
REPORTS FROM THE LGUS.

ALL REPORTS ON THE SEF SHALL BE POSTED IN AT LEAST THREE


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CONSPICUOUS PUBLIC PLACES, WEBSITES OF ALL LOCAL GOVERNMENT
UNITS, AND THE FULL DISCLOSURE POLICY PORTAL BEING
ADMINISTERED BY DILG.

Sec. 2. Implementing Rules and Regulations. —The DILG, DEPED AND
DBM, shall jointly promulgate the necessary rules and regulations for the faithful
and effective implementation of the provisions of this Act within ninety (90) days
from the date of its effectivity.

Sec. 3. Repealing Clause. — Any provision of laws, orders, agreements,
rules, or regulations contrary to and inconsistent with this Act is hereby repealed,
amended or modified accordingly.

Sec. 4. Effectivity. — This Act shall take effect fifteen (15) days after its
complete publication either in the Official Gazette, or in at least two (2) newspapers
of general circulation.

Approved,