EIGHTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodrigue

House Bill No. 429
EXPLANATORY NOTE

Industry participation in the training of Science and Technology (S&T) labor force is
urgently needed to boost the economy of country-side Philippines where under-employment
statistics exceeds the national average of twenty percent (20%). Graduates of public higher
education institutions must possess the skills and competencies required by their industrial
prospective employers and/or by the business techno-preneurial environment. Full
employment and/or engagement in entrepreneurial activities is an effective means to reduce
poverty incidence in the country and to break the vicious cycle of poverty in Philippine
countryside. The Industry-Academe Technological Park is a strategic response to this call.
The Techno-Park is lodged with the University of Science and Technology of Southern
Philippines (USTP) under Republic Act 10919.

Access to quality public higher education for the poor remains concentrated in the
National Capital Region whilst statistics show that the highest poverty incidence is in
Mindanao and Southern Philippines. This is ironic since those living under the poverty
threshold are precisely the ones who are economically unable to further their education in
Manila and the National Capital Region. Relevance of public higher education and training is
an issue that directly impacts unemployment and underemployment. The industrial
‘employers perennially complain of the mismatch in the skills and competencies learned from
Universities and the skil requirements in the actual workplace.

The establishment of USTP responds to this fundamental problem of job-generation
and economic productivity for the underprivileged sector of the Philippine society particularly
in Mindanao through the Techno-Parks strategy. To realize this goal, the Techno-Parks
located in Alubijid, Misamis Oriental and Ciaveria, Misamis Oriental need to be developed to
attract industry locators to these parks. Likewise, it is deemed important that these
developments be in accordance with sustainable and inclusive growth. The initial
development phase of the Techno-Parks requires resources that can be provided by the
State as an investment. Thereafter, the Techno-Parks can sustain their operations
independent of state subsidy.

in view of the foregoing, immediate approval of this measure is eamestly requested.

x

Rl B. mnie


EIGHTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES
First Regular Session

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez

House Bill No. _429

AN ACT
ESTABLISHING THE TECHNO-PARKS DEVELOPMENT FUND (TPDF) FOR THE
UNIVERSITY OF SCIENCE AND TECHNOLOGY OF SOUTHERN PHILIPPINES (USTSP),
AND APPROPRIATING FUNDS THEREFOR

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

Section 1. Short Title. - This Act shall be known as the TECHNO-PARKS DEVELOPMENT
FUND (TPDF) of the University of Science and Technology of Southem Philippines.

Section 2. Declaration of Policy. -It is the declared policy of the State to establish, maintain,
and support a complete, adequate and integrated system of higher education relevant to the
needs of the people and society, with primary focus on research and development for
science and technology through partnership with the industries.

Section 3. General Mandate. — The TPDF is hereby established to ensure the sustainable
partnership with the industry locators in the Technological Parks of the University of Science
and Technology of Southem Philippines for efficient and effective delivery of higher
education and training.

Section 4. Creation of the Techno-Parks Development Fund. The Techno-Parks
Development Fund is hereby established with an initial funding of Four Billion Pesos
(PhP4,000,000,000.00) and subsequent allocations of One Billion Pesos
(PhP 1,000,000,000.00) per year for the next five years. The required funding shall be
sourced out of:

4% of the proceeds of the PAGCOR;

1% of the travel tax collection;

1% of the value-added taxes collected from the sale of petroleum and petroleum-
based products.

Seventy five percent (75%) of the initial funding shall be used for site preparations of the
Techno-Parks of USTSP to make them attractive to industry locators. Thereafter, only 15%
shall be used to cover the costs of operations of the Techno-Parks while the remaining 85%
shall be invested through a duly recognized Government Financial institution (GF). Interests
and proceeds from the operations of the Techno-Parks shail form part of the Fund.

Section 5. Administration of the Fund, - There shall be created a TPDF Secretariat to be
headed by a Fund Director with the rank of a Director Ili who shall report directly to the
University President. The TPDF Secretariat shall be budgetarily and administratively
separate from the University. Secretariat. Staff under the Fund Director shall have expertise
in the fields of financial investment, accounting, and financial analysis. The University Board
of Regents shall appoint members of the Secretariat through the recommendation of the
University President.


Section 6. Duties and Responsibilities of the Fund Secretariat. The Secretariat shall have
the following duties and responsibilities

a.
b.
c.

4.

Prepare and recommend a Long-Term investment Plan for the Fund;

Prepare and recommend an Annual Investment Plan for the Fund;

Prepare and recommend a Long-Term Lease Agreement between any
industry locator and the University;

Coordinate with appropriate agencies of the Government for the collection of
funds due to the Techno-Parks of USTSP;

Provide Secretariat and logistical support to the Industry-Academe Council as
provided for under RA 10919;

Ensure the availability of fund support for the operations of the Techno-Parks
for higher education and training including, but not limited to, research and
scientific track system for the faculty of the University.

Section 7. Repealing Clause. — All laws, decrees, executive orders, rules and regulations
and other issuances, or parts thereof, inconsistent with the provisions of this Act, are hereby
repealed or modified accordingly.

Section 8. Separability Clause. — If any part or provision of this Act is declared
unconstitutional, or other parts or provisions hereof which are not affected thereby shall
continue to be in full force and effect.

Section 9. Effectivity. - This Act shall take effect fifteen (15) days after its publication in at
least one (1) national newspaper of general circulation.

Approved,