Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No._______ 
Introduced by HON. ALAN "ALDU" R. DUJALI 
EXPLANATORY NOTE 
Article II Section 17 of the Constitution provides that, “The State shall give priority to 
education, science and technology, arts, culture, and sports to foster patriotism and nationalism, 
accelerate social progress, and promote total human liberation and development.” In addition, 
Article II Section 13 of the Constitution declares that, “The State recognizes the vital role of the 
youth in nation-building and shall promote and protect their physical, moral, spiritual, intellectual, 
and social well-being. It shall inculcate in the youth patriotism and nationalism, and encourage 
their involvement in public and civic affairs.”   
By virtue of Republic Act No. 5447 of 1968, the Special Education Fund (SEF) was created 
“to contribute to the financial support of the goals of education as provided by the Constitution.” 
With regard to its utilization, Section 272 of the Local Government Code of 1991 provides that, 
“The proceeds shall be allocated 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 this regard, the SEF may be utilized for the implementation of activities 
of the Boy Scouts of the Philippines (BSP), the Girl Scouts of the Philippines (GSP), and the 
National Teachers’ Month (NTM) celebration due to their shared fundamental intent of educating 
and developing our youth. 
Through a joint circular of the Department of Education, the Department of Budget and 
Management, and the Department of the Interior and Local Government in 2020, the guidelines 
on the use of the SEF was revised to include the activities of the BSP and the GSP. 
Presidential Proclamation 242 of 2011 declares the period of September 5 to 
October 5 as NTM and Republic Act No. 10743 of 2016 declares October 5 as National Teacher’s 
Day (NTD) to celebrate our teachers and their invaluable efforts; hence, the SEF may also be 
utilized to further its objectives.  
This bill seeks to amend the Local Government Code to expand the use and purpose of 
the SEF to include the activities of the BSP, GSP, and NTM celebration.  
In view of the foregoing, the approval of this bill is earnestly sought. 
HON. ALAN "ALDU" R. DUJALI 
Representative 
2nd District, Davao Del Norte 
January 30, 2023
2:27 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No._______ 
Introduced by HON. ALAN "ALDU" R. DUJALI 
“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” 
 Be it enacted by the Senate and House of Representatives in Congress assembled: 
SECTION 1. Short Title. SEF Expanded Purpose Act. 
SEC. 2. Section 272 of Republic Act No. 7160 is hereby amended to read as follows: 
SECTION 272. Application of Proceeds of the Additional One Percent SEF Tax. - The 
proceeds 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 for the 
FOLLOWING: [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.] 
(1) OPERATION AND MAINTENANCE OF PUBLIC SCHOOLS
(2) CONSTRUCTION AND REPAIR OF SCHOOL BUILDINGS AND OTHER
FACILITIES OF PUBLIC SCHOOLS
(3) ESTABLISHMENT AND MAINTENANCE OF EXTENSION CLASSES WHERE
NECESSARY
(4) PURCHASE OF EQUIPMENT, BOOKS AND PERIODICALS FOR SCHOOL USE
(5) EDUCATIONAL RESEARCH
(6) SPORTS DEVELOPMENT
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(7) SCOUTING ACTIVITIES OF THE BOY SCOUTS OF THE PHILIPPINES AND THE 
GIRL SCOUTS OF THE PHILIPPINES 
 
(8) SCHOOL ACTIVITIES IN RELATION TO NATIONAL TEACHERS’ MONTH   
 
AS DETERMINED AND APPROVED BY THE LOCAL SCHOOL BOARD. 
 
  
SEC. 3. Implementing Rules and Regulations. The Department of the Interior and 
Local Government, the Department of Education, and the Department of Budget and 
Management shall, within thirty (30) days from the effectivity of this Act, promulgate the 
implementing rules and regulations to effectively carry out the provisions of this Act.  
SEC. 4. Repealing Clause. — All laws, decrees, executive orders, rules and 
regulations, and other issuances, or part or parts thereof, which are inconsistent with the 
provisions of this Act are hereby repealed, amended, or modified accordingly.  
SEC. 5. Effectivity Clause. — This Act shall take effect after five (15) days from its 
publication in the Official Gazette or in at least two (2) national newspapers of general 
circulation whichever date comes earlier. 
Approved,