Republic of the Philippines
HOUSE OF REPRESEN ATIVES
Quezon City

SIXTEENTH CONGRESS
Second Regular Session

4923

HOUSE BILL NO,

Introduced by"Hon. Jerry P, Trefias

EXPLANATORY NOTE

The Special Education Fund (SEF) was created by Republic Act 7160 or the Local
Government Code of 1991 in order to augment the ability of local governments to increase the
funding for public schools within their respective jurisdictions. Since the enactment of the said
law and the implementation of the SEF, locai governments across the country have used the
additional collection of 1% of the assessed value of rea! properties to help fund the various needs
of the public schools, such as the construction and repair or school buildings

However, the local governments and the public schools of the country have been limited
by the scope of the application of the SEF under the existing provision (Section 272) of the Local
Government Code which enumerates the allowed purposes where the collected funds could be
allocated. Unfortunately, based on the experience of numerous local governments, including the
Lone District of Hoilo City which I represent in Congress, the public schools desperately need
financial support from the SEF for the creation of extension classes, new teacher items and
contractual positions, the payment of the salaries and allowances of created new teacher items
and contractual positions, and for the purchase of motor vehicles for Department of Education
personnel. Regrettably, the existing law does not permit the SEF to be used for these expenses,

It is therefore necessary to amend the existing provision in the Local Government Code
to allow the local governments to use the SEF for the aforementioned purposes, View of the

foregoing, approval of this legislative measure is earnestiy sought.
*
JERRY PATRENAS


4 Republic of the Philippines
HOUSE OF REPRESENTATIVES
gi Quezoa City

5 SIXTEENTH CONGRESS
8 Second Regular Session

HOUSE BILLNO,__ 4923

Introduced by Hon. Jerry P. Trefias

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

AN ACT EXPANDING THE PURPOSE AND APPLICATION OF THE SPECIAL EDUCATION
FUND (SEF), AMENDING FOR THE PURPOSE SECTION 272 OF REPUBLIC ACT NO. 7160,
OTHERWISE KNOWN AS THE 'LOCAL GOVERNMENT CODE OF 1991'

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

"SEC. 272, Application of 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 equelly between the
provincial and municipal school boards: Provided, however, That the proceeds shall be
27 allocated for the ESTABLISHMENT AND CREATION OF EXTENSION CLASSES,
CREATION OF NEW TEACHER ITEMS AND CONTRACTUAL POSITIONS,
PAYMENT OF SALARIES, ALLOWANCES AND OTHER BENEFITS FOR THE
CREATED TEACHER ITEMS AND CONTRACTUAL TEACHING POSITIONS,

3: PAYMENT OF ALLOWANCES AND OTHER BENEFITS FOR DEPARTMENT
32 OF EDUCATION PUBLIC SCHOOL TEACHERS, PURCHASE OF MOTOR

33 VEHICLES FOR DEPARTMENT OF EDUCATION PERSONNEL, 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.”

Section 2. Separability Clause. If any provision or part hereof is held invalid or unconstitutional, the
remainder of the law or the provision not otherwise affected shall remain valid and subsisting,

Section 3. Repealing Clause. Any law, presidential decree. or issuance, executive order, lett
struction, administrative order, rule or regulation contrary to or inconsistent with the provisions of this
Act is hereby repealed, modified, or amended accordingly.

ty Clause. This Act shall take effect after fifteen (15) days following its publication in
sper of general circulation, or in the Official Gazette.

Approved,