Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

2883

House Bill No.

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

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

EXPLANATORY NOTE

Globalization has put pressure on Third World countries like the Philippines in
producing highly-specialized and technical people in a short span of time or suffer the
consequence of being left behind. Coupled by rapid changes, developments and
innovations in the field of Information Technology and the emergence of knowledge-
based society, the country finds it necessary to review and recalibrate the thrusts of its
educational system to be able to meet the growing needs and demands of a highly-
competitive world market

There is therefore an urgent need to formulate a viable, comprehensive and
sustainable long-term plan on how to modemize our schools both at the elementary and
secondary levels.

Statistics would show that at present, public school students pale in comparison
with their counterparts in private schools. Based on a preliminary report of Department
of Education (DepEd), only 50% of the 4,336 high schools nationwide have computer
laboratories consisting of a minimum of ten computers. Out of this 50%, most of their
computers need repair or need upgrading due to lack in proper maintenance.


Knowing of the National Government's lack in resources, there is a need for cost-
effective and innovative approaches on how to finance school modernization programs
One such approach is in utilizing the active partnership of local government units with
the private sector such as foundations, private corporations and business groups

The proposed bill aims to: (a) provide a broad framework for the
institutionalization of a comprehensive and sustainable modernization program for the
public schools; (b) encourage the schools to become more innovative and resourceful in
developing and implementing programs geared towards modernization; (c) 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
modernization programs; (d) provide mechanism on how the private sector can
participate in the program; and (e) define regional and school modernization plans
responsive to the needs of the students in the area

The bill also seeks to establish a corresponding School Modernization and
Innovation Trust Fund to help augment regular appropriations provided under the
annual General Appropriations Act. The combined amount will be able to finance the
priority programs for the modernization and improvement of public elementary and
secondary schools.

This is timely for government to find serious ways of increasing the share of the
national budget in prioritizing the computerization of schools, upgrading of libraries and
science laboratories. And with the application of information technology in classroom
instruction, it is the authors’ hope there will be an increase in teaching efficiency,
learning processes and competencies of our students.

We are therefore enjoining our colleagues to ensure the immediate passage of

this bill into law.

DIOSDADO. PAGAL ARROYO GLORIA MACAPAGAL ARROYO
Second District, Camarines Sur Second District, Pampanga


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

2883

House Bill No.

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO.

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 in Congress
assembled:

SECTION 1. Title. — This Act shall be known as the "School Modernization and
Innovation Act of 2013."

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 modernization

(c) 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 Ill the
program

(e) To define a regional, division and school modernization 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 modernization plan for schools,

SECTION 5. Components. — The Schoo! 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 in 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 be established in every public elementary and secondary
high school. The library should be provided with at least 2 computers which have
Internet access to assist the students in their research work.

(c) 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 modem system of instructional and communication technology.
It may adopt an interactive system of instruction through television, modem
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 learning programs.


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

SECTION 6, 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.

SECTION 7. Financing of the Program. - The Department of Budget and
Management shall allocate 10% of the total appropriations of the annual budget of the
DepEd for the financing of the Schoo! Modernization and Innovation Program:

SECTION 8. Formulation .of Schoo! 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 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 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
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.

(c) 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 personnel, physical and fiscal resources, The individual plans of the
schools shall be submitted to the regional offices for consolidation.


SECTION 9. School Modemization 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
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 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% of 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.

(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 modemization programs and not on 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.

(c) 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 in schools

SECTION 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 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.

(c) 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 proposals 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
Five Hundred Thousand Pesos (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 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 individuals 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

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
be 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,