Republic of the Philippines
HOUSE OF REPRESENTATIVES

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL no, 7484

e—————————————

Introduced by HON. JESUS “BONG” C. SUNTAY

e———————_—_—————

EXPLANATORY NOTE

With the emergence of globalization, Philippines is compelled to compete with its neighboring
countries in terms of technical knowledge and skills. In response to this, the country rolled out the K-
12 Program since the year 2012. However, this step is not enough to fill the gaps of our education
system, To further enhance Filipinos’ technological knowledge and skills that will enable them to meet
the growing needs and demands of a highly competitive world market, this curriculum upgrade must
be complemented by a nationwide modernization program.

Technological facilities of elementary and secondary schools particularly public schools are
lagging behind. These proposed nationwide modernization program will include additional computer
laboratories, science laboratories, libraries, and promotion of integrated distance learning program. The
upgrade and enhancement of these learning facilities will help strengthen our education system. This
will make Filipinos more equipped and globally competitive.

Given the mass number of public elementary and high schools in the country, there is a need to
augment the regular appropriations through active partnership with local government units and private
sector such as foundations and business groups.

This bill seeks to establish the School Modernization and Innovation Trust Fund that will help
finance the School Modernization and Innovation Program for public elementary and secondary
schools.

It is high time for the government to consider increasing the share of budget to educational
institutions particularly for the computerization of schools, upgrading of libraries and science
laboratories. This action would not only enhance the competencies of students but would also increase
the efficiency of our teachers.

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

C. SUNTAY


©eaVauneune

10

1
12

2B
14
15
16
17
18
19
20
21

Republic of the Philippines
HOUSE OF REPRESENTATIVES

EIGHTEENTH CONGRESS
Second Regular Session
HOUSE BILL No._7484
ee
Introduced by HON. JESUS “BONG” SUNTAY
SUES ooo

AN ACT
INSTITUTIONALIZING 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 the House of Representatives of the Philippines in Congress

assembled:

SECTION I. Short Title. — This act shall be known as “School Modernization and Innovation
Act.”

SEC. 2. Declaration of Policy. — tis 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 globally competitive.

SEC. 3. Statement of Purpose. — This Act secks 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 modernization;

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 modernization programs;
d. To provide mechanisms on how the private sector can participate in the program; and
€. Todefine a regional, division and school modernization and innovation plan responsive

to the needs of the students in the area.


CeaNVauneuwune

10
om
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36

SEC. 4,

Implementing Agency. - The Department of Education, hereinafter refereed 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

modernization plan for schools,

SEC. 5.

Components. - The School Modernization and Innovation Program shall consist

of the following:

SEC. 6.

Computerization of public elementary and high schools. The DepEd, in coordination
with other appropriate government agencies, shall determine the appropriate number
of information technology (IT) equipment depending on the number of student
enrollment. The Science high schools in every region nationwide shall be given priority
in the allocation of funds for the computerization.
Upgrading of libraries in public elementary and secondary schools. A well-equipped
library shall be established in every public elementary and secondary high school. The
library should be provided with at least five (5) computers, which have Internet access
to assist the students in their research work.
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 wells 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 learning programs.
Upgrading of Science Laboratories. Each public elementary and high school will be
provided with well-equipped science laboratories with modem science equipment,
which is essential in improving the competencies of the students in the area of science
and technology.

Phased Implementation of the Program. — The Department shall implement the

program in phases to ensure continuity and sustainability of the projects. The phases of

implementation will be determined according to the priorities set by the Department as well as

the absorptive capacity of the schools

SEC. 7.

Financing of the Program. — The Department of Budget and Management shall

allocate at least ten percent (10%) of the total appropriations of the annual budget of the

Department for the financing of the School Modernization and Innovation Program.


CoV nneune

10
1
12
13
14
15
16
7
18
19
20
2
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37

SEC.8. Formulation of School Modernization 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
clementary and secondary schools nationwide which will be implemented with a period
of five (5) years. 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 intemational financial
institutions 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 modemization 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 5-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 personnel, physical and fiscal resources.
The individual plans of the schools shall be submitted to the regional offices for

SEC. 9. School Modernization and innovation Trust Fund. — A School Modernization
and Innovation Fund, hereinafter referred to as the Fund, is hereby established, exclusively to
augment the regular appropriations provided under Section 7 of this Act to finance the priority
programs for school modemization and improvement of public elementary and secondary
schools.

a. The government's contribution to the Fund shall be following:
1. The amount of Fifteen Billion Pesos (P15,000,000,000.00) as seed capit:
2.The equivalent of ten percent (10%) 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;


Carn nneune

10
1
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36

4. The equivalent of 10% 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% of the sales of the lotto operations of the Philippine
Charity Sweepstakes Offices (PCSO).

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.

b. The fund shall be distinct and separate from the schools’ regular allotment for
maintenance and other operating expenses (MOOE).
¢. 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 on the regular programs of the Department: Provided,
That 50% of the entire annual income shall be retained in the Bureau of the Special
Treasury.
SEC. 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
Department 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 carnings 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 Departments. It shall also enjoy fiscal autonomy from the
Department.

SEC. 11. Assistance from Local Government Units.

Each Local Government Unit (LGU)
shall 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.
SEC. 12. Uses of the Fund. — The School Modemization and Innovation Fund shall be used

to finance the following:


Cor 49H ez wKHR

10
11
2
13
14
15
16
7
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37

a. Projects, which have been approved and certified as priority by the National Executive
Committee and Regional Modernization Committees created under Section 13 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 equipment including maintenance of computer, laboratories,
audio visual and multimedia facilities, and appropriate education technology software;
and

4. Procurement of science equipment for science laboratories in schools

SEC. 13. Order of Priority in the Allocation of Funds. ~In order for the school to be given
priority in the allocation of funds from the School Modernization Innovation Trust Fun, the
following criteria should be met

a. The programs, which will be funded, should be in line with the formulated regional and
school modemization plans;

b. The school should have mobilized additional 40% counterpart funding from the Local
Government Unit, private corporations, foundations, business groups or private
individuals for every program which will be implemented,

c. The programs have been approved by either the regional Modernization Committee or
the National Executive Committee, or both depending on the funding required.

SEC. 14, Selection Process. — The individual schools nationwide are directed to develop
project proposals in line with the modemization thrusts of their region and submit to their
respective regional offices to determine its feasibility and contribution to the overall thrusts of
school modemization 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 two representatives from the private
sector. It shall be in-charge in evaluating projects with national application and coverage.

A Regional Modemization Committee headed by the Regional Director and
composed of three Division Superintendents and two Representatives from Parent Teachers
Association in the region shall be established to evaluate all project proposals at the regional
level. The Regional Modemization Committee shall have the authority to approve and
recommend release of funding for projects with a funding requirement of up to One Million
Pesos (P1,000,000.00).

However, the approved project proposals with a funding requirement of more than
One Million pesos (P1,000,000.00) 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.

6


Car nneawune

10
a
12
13
14
15
16
7
18
19
20
24
22
23
24
25

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

SEC. 15. Private Sector Participation. — The members of the private sector are hereby
encouraged to provide technical and/or financial support to the school as they pursue their
modernization plans. The private corporations, foundations, business groups or individuals 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 40% counterpart funding support
from private corporations, foundations, business groups individual as well as local government
in their respective local communities shall be 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.

SEC. 16. Implementing Rules and Regulations. — The Secretary of Education shall
promulgate the necessary rules and regulations for the effective implementation of the
provisions of this Act.

SEC.17. Separability Clause. — If any provision or part of this Act is held invalid or
unconstitutional, the remaining parts or provisions not affected shall remain in full force and effect.

SEC. 18, Repealing Clause. — All laws, executive orders, presidential decrees or issuances,
letter of instruction, administrative orders, rules, and regulations as well as local ordinances contrary to
or inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

SEC.19.  Effectivity Clause. — This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in a newspaper of general circulation.

Approved,