Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
Second Regular Session
HOUSEBILLNo.    9871
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Introduced by REPRESHNTATIVH JONATHAN KEITH T. FLORES
EXPLANATORY NOTH
The  Technical  Education and  Skills Development Authority  (TESDA) was  established  on
August  25,  1994  by  virtue  of Republic  Act  No.  7796  or  the  "Technical  Education  and  Skills
Development Act of 1994". Since its creation, TESDA has remained an essential contributor to the
National Government and its mission to provide Filipinos with quality-assured technical education
and skills development programs, and to mobilize technical-vocational institutions in the Philippines.
Over two decades after its establishment, TESDA is now the leading government agency that
sets the direction and ensures the efficient delivery of technical education and skills development
programs across various sectors all over the country. However, TESDA has also experienced its share
of challenges and limitations, especially within the context of today's ever-changing local and global
environment. To address concerns such as the strengthening of TESDA' s organizational structure and
the modemization of skills training facilities, the overall system of the Authority must be advanced
through an augmented budget along with adequate personnel, and resources.
Hence,  this  proposed  measure  seeks  to  repeal  Republic  Act No.  7796  or the  "Technical
Education  and  Skills  Development Act  of 1994"  and to  strengthen the  powers  and  organization
functions of TESDA by elevating it into a department. The department shall become the primary
policy formulation, planning, coordinating, implementing, regulating, and administrative entity of the
government for technical education and training and certification of policies, plans, and programs. It
shall be headed by a Secretary, four (4) Undersecretaries, and four (4) Assistant Secretaries.
Such change will be necessary in addressing concerns and implementing reforms fitting with
the Fourth Industrial Revolution and other advancements. With this proposed legislative measure,
TESDA will be  strengthened as an implementing and regulatory institution of the  Technical  and
Vocational Sector of the country's trifocal education system. Most importantly, this measure is filed
to benefit the interest and needs of the hard working and skilled Filipino workforce.
In view of the foregoing, approval of this bill is earnestly soucht.
JONAT
2nd
N KEIT
istrict, Buki
T. FLORHS
n


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
Second Regular Sess`ion
Housn BILL No.
Introduced by REPRESENTATIVE JONATIIAN KEITH T. FLORES
AN ACT
CREATING    THE    DEPARTMENT    OF    TECHNICAL    EDUCATION    AND     SKILLS
DEVELOPMENT,  DEFINING  ITS  POWERS  AND  FUNCTIONS,  REPEALING  FOR  THE
puRpOsH  REpuBLlc  ACT  NO.   7796,  OTHERwlsE  KNOwN  As  Tlm  TECHNlcAL
EDUCATION AND SKILLS DEVELOPMENT AUTHORITY OR TESDA ACT 0F 1994, AND
APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and House Of Representatives Of the Philippines in Congress assembled:
SECTION 1. Sftorf rj#c. - This Act shall be known as the "Department of Technical Education
and Skills Development (DTESD) Act".
SHC. 2. Dcc/¢r¢tr.o# a/Po/I.ey. -It is hereby declared the policy of the State to provide relevant,
accessible,  high  quality  and  efficient  technical  education  and  skills  development  in  support  of the
development  of high  quality  Filipino  manpower  responsive  to  and  in  accordance  with  Philippine
development goals and priorities.
The  State  shall encourage active participation of various concerned sectors, public  as well as
private technical-vocational iustitutious (Tvls) particularly private enterprises, being direct participants
in and immediate beneficiaries of a technically educated and trained workforce, in providing technical
education services and training opportunities.
SEC. 3. 04jccrfucs. -The objectives of this Act are:
a)   To promote and strengthen the quality of technical education and skills development programs
to attain global competitiveness and inclusive growth;
b)   To focus technical education and skills development on meeting the changing demands for
quality manpower particularly in support of the development thrust of the country;
c)   To  encourage  critical  and  creative  thinking  by  disseminating  the  scientific  and  technical
knowledge base of manpower development progranis;
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d)   To  recognize  and  encourage  the  complementary  roles  of public  and  private  institutions,
enterprises, local government units (LGUs) and civil society organizations (CSOs) in technical
education and skills development;
e)   To develop the capacities of.stakeholders to participate in the planning and delivery of quality
technical education and skills development systems;
I)   To inculcate desirable values through the development of moral character with emphasis on
work ethics, self-discipline, self-reliance and nationalism;
g)   To strongly support the implementation of the Philippine Qualifications Framework or the PQF
Act (Republic Act No.10968), the Ladderized Education Act (Republic Act No.10647) and
the Dual Training System Act (Republic Act No. 7686); and other laws, decrees and orders on
education;
h)   To maximize returns to the country's investment in technical education and skills development
through an efficient graduates' employment facilitation program within the framework of the
national employment service network system; and
i)    To support in the poverty alleviation efforts by providing the marginalized and vulnerable
segments of the country's population access to income generating technical education and
skills development opportunities.
SEC. 4. De¢"../I.o# a/ rcriiis; - As used in this Act:
a)   4zxprc#/z.cesfeJ.p refers to the training within employment with compulsory related theoretical
instruction  involving  a  contract  between  an  apprentice  and  an  employer on  an  approved
apprenticeable occupation;
b)  .4ppre#/I.ce refers to a person undergoing training for an approved apprenticeable occupation
during an apprenticeship agreement;
c)   4zxpre#/z.cesfoJZ? 497.eeme#/ refers to a contract wherein a prospective employer binds himself
to train the apprentice who in turn accepts the terms of training for a recognized apprenticeable
occupation emphasizing the rights, duties and responsibilities of each party;
d)  4apre#fz.ceab/c Occwpcr/i.o# refers to an occupation officially endorsed by a tripartite body and
approved as apprenticeable by the Department;
e)    Dci¢J rrcH.#z.ng Sys/em refers to an instructional delivery system of technical and vocational
education  and  training  that  combines  in-plant  training  and  in-school  training  based  on  a
training  plan  collaboratively  designed  and  implemented  by  an  accredited  dual  system
educational institution/training center and accredited dual system agricultural, industrial and
business establishments with prior notice and advice to the local government unit concerned.
Under this system, said establishments and the educational institution share the responsibility
ofprovidingthetraineewiththebestpossiblejobqualifications,theformeressentiallythrough
practical  training  and  the  latter  by  securing  an  adequate  level  of specific,  general  and
occupation-related theoretical instruction. The word "dual" refers to the two parties providing
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instruction:  the  concept  "system"  means  that  the  two  instmcting  parties  do  not  operate
independently of one another, but rather coordinate their efforts.
I)   £czc}dcrz.zed ec7#ccr/z.o# refers to the hamonization of all education and training mechanisms
that allow students and workers to progress between technical-vocational and higher education
programs,  or vice-versa.  It opens opportunities for career and educational advancement to
students and workers. It creates a seamless and borderless education and training system that
will allow transfers in terms of flexible entry and exit between technical-vocational and higher
education programs in the post-secondary school educational system;
g)   £e¢dz.#g recfe#o/og); Ce#Jer refers to centers that provide high quality and efficient technical
education, training and certification in support of the development of high quality Filipino
manpower responsive to and in accordance with Philippine development goals and priorities;
h)   I,ecrr#er refers to persons hired as trainees in semi-skilled and other industrial occupations
which are non-apprenticeable. Learnership programs must be approved by the Department;
i)    I,ev)/ Grcr77/ Sys/em refers to a legal contribution from participating employers who would be
beneficiaries of the program (often as a percentage of the payroll) which is subsequently turned
over or rebated to enterprises offering employee training programs;
j)    A4lz.c}#/e-£eve/ A4¢#power refers to those who have acquired practical  skills and knowledge
through  formal  or  non-formal  education  and  training  equivalent  to  at  least  a  secondary
education but preferably at post-secondary education with a corresponding degree of diploma;
or skilled workers who have become highly competent in their trade or craft as attested by the
industry;
k)   Pfoi./zZxpj#e g#cr/z/}ca/z.o#s Fr¢meworfr /POF/ refers to the national policy which describes the
levels of educational qualifications and sets the standards for qualifications outcomes. It is a
quality assured national system for the development, recognition and award of qualifications
based on standards of knowledge, skills, and values acquired in different ways and methods by
learners and workers of a certain country;
I)    Prz.vafe E#/erprz.se refers to an economic system under which property of all kinds can be
privately owned and in which individuals, alone or in association with another, can embark on
a business  activity.  This  includes  industrial,  agricultural,  or  agro-industrial  establishments
engaged  in  the  production,  manufacturing,  processing,  repacking  or  assembly  of goods
including service-oriented enterprises;
in) Skz.// refers to the acquired and practiced ability to carry out a task or job;
n)   Skz.//s Deve/apme#/ refers to the process through which learners and workers are systematically
provided with learning opportunities to acquire or upgrade, or both, their ability, knowledge
and behavior pattern required as qualifications for ajob or range ofjobs in a given occupational
area;
o)   recfo#z.ca/ Ed#ca/I.o# refers to the education process designed at upper secondary and lower
tertiary levels, aligned with the levels of the PQF, with the pathways to hither education
3


through the credit transfer system based on leaming outcomes aimed at preparing technicians,
technologists,  para-professionals  and  other  categories  of workers  and/or  entrepreneurs  by
providing   them   with   a  broad   range   of  general   education,   theoretical,   scientific   and
technological studies, and related j ob skills training;
p)   rrode refers to any  group of interrelated jobs or any  occupation which is traditionally  or
officially recognized as craft or artisan in nature requiring specific qualifications that can be
acquired through work experience and/or training;
q)    rrczz.#ee refers to persons who are participants in a vocational,  administrative or technical
training program for the purpose of acquiring and developing j ob-related skills;
r)   rrcr!.#er refers to persons who direct the practice of skills towards immediate inprovement in
some task;
s)   rrcrz.7cz.ng refers to teaching or developing oneself or others, any skills and knowledge that relate
to specific useful competencies;
t)    rrcrz.7¢er 's trczz.#z.#g refers to training trainers aimed at developing the latter's capacities for
imparting attitudes, knowledge, skills and behavior patterns required for specific jobs, tasks,
occupations or group of related occupations; and
u)   User-I,ed"  or  "A4crrkef-Drz.ve# SircI/eg)/ refers  to  a  strategy  which promotes  strengthened
linkages between educational/training institutions and industry to ensure that appropriate skills
and knowledge are provided by the educational system.
SEIC.  S.  Creation  and  Mandate  Of  the  Department  Of  Technical  Education  and  Skills
DctJc/apn®eHf. - There is hereby created a Department of Technical Education and Skills Development
(DTESD),  which  shall  be  the  primary  policy  formulation,  planning,  coordinating,  implementing,
regulating and administrative entity of the government for technical education and skills development
(TESD) agenda.
SEC. 6. Powers ¢#d Fw#cfrous. -The DTESD shall have the following powers and functions:
a)   Formulate a roadmap for Philippine TESD and set the general directions for education and
training policies and standards that shall be embodied in a National Technical Education and
Skills Development Plan OVTESDP);
b)   Formulate and recommend national policies and guidelines and conduct in-depth studies on
all policy areas and options that will promote technical education and skills development in
consultation with the  relevant  stakeholders,  and  address job  mismatch between technical
vocational education and training (TVET) and industry requirements;
c)   Assess, review, harmonize and coordinate all TESD policies and programs to ensure overall
consistency and implementation of the national policies;
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d)   Organize and constitute various standing committees, subsidiary groups, or technical working
groups  for  efficient  integration,  coordination  and  monitoring  of TESD  programs  at  the
national, regional, and local levels;
e)   Enter into, make, execute, perfomi and cany-out domestic and foreign contracts subject to
existing laws, rules and regulations;
I)   Restructure the entire sub-sector consisting of all iustitutious and programs involved in the
promotion and development of middle-level manpower through upgrading, merger and/or
phase-out following a user-led strategy;
g)   Approve training standards and assessment packages as established and conducted by private
industries;
h)   Establish  and  administer  a  system  of accreditation  of both  public  and  private  technical
vocational institutions;
i)    Establish, develop and support institutions trainers' training and/or programs;
j)    Exact reasonable fees and charges for such assessment and trainings conducted and retain such
earnings for its own use, subject to guidelines promulgated by the DTESD;
k)   Allocate resources for the programs and projects it shall undertake pursuant to the approved
NTESDP;
I)    Determine and approve systematic funding schemes such as the levy and grant scheme for
technical education and skills development purposes.
in)  Create,  when deemed necessary,  an Advisory  Committee which shall provide  expert and
technical  advice to the  Secretary  to  be chosen from the  academe  and the private  sector:
Provz.dec7,  That in case the Advisory Committee is created, the DTESD is hereby authorized
to set aside a portion of its appropriation for its operations;
n)   Review and recommend action to  concerned authorities on proposed technical  assistance
programs and grants-in-aid for technical education and skills development, including those
which may be entered into between the Government of the Philippines and other nations,
including international and foreign organizations, both here and abroad;
o)   Promulgate rules and regulations for the implementation of its policies and related laws; and
p)   Perform such other functions as maybe needed to achieve its goals and objectives to the fullest
and as may be provided by this Act.
SEC. 7. Coxpasi./I.o" -  The DTESD shall be composed of the Office of the Secretary, and the
various bureaus, services, regional and provincial/district offices.
SHC. 8. Powers ¢#d FWHc#.o#s a/the Sccre/¢ry. The Secretary shall have the following powers
and froctions:
a)   Provide executive direction and supervision over the entire operations of the DTESD;
5


b)   Organize the DTESD for its efficient and effective performance of its functions to achieve the
objectives and mandate of this Act;
c)   Establish TESD policies and standards for the effective, efficient and economical operation of
the DTESD, in accordance with the programs of the government;
d)   Represent and advocate TESD concerns in national and international bodies;
e)   Mobilize resources and ensures prudent utilization of and access to TESD investments and
incentives according to national development plans and priorities;
I)   Designate  and  appoint  officers  and  employees  of the  DTESD,  including  regional  and
provincial directors, but excluding the undersecretaries and Assistant secretaries,              in
accordance with Civil Service laws, rules and regulations;
g)   Undertake consultations with other members of the Cabinet and officers of the government
relating to TESD concerns;
h)   Advise the President of the Philippines on the promulgation of executive and administrative
orders and formulation of regulatory and legislative proposals on matters pertaining to TESD;
i)    Promulgate  rules,  regulations  and other issuances  in canying  out the  DTESD's  mandate,
obj ective, policies, plans, programs and proj ects;
j)    Direct and manage the implementation of DTESD's programs and services; and
k)   Perfomi such other functions as may be authorized.
SEC. 9. U#dersccref¢ri.cs ¢#dAssis/&Hf Sccre/u[r..cs. - The Secretary shall be assisted by four (4)
Undersecretaries  and  four  (4)  Assistant  Secretaries  who  shall  be  appointed  by  the  President  upon
recommendation of the Secretary: Provjdec7, that the two (2) Undersecretaries and the two (2) Assistant
Secretaries shall be career officers.
The Undersecretaries and Assistant Secretaries shall assist the Secretary in the performance of his
powers and finctious to achieve the objectives of this Act.  The Undersecretaries and Assistant Secretaries
shall be given specific areas of responsibility.
SEC. 10. 9w¢/JJ3coffo#s ¢Hd4FTOJ.#/mie#ts. -The person appointed as Secretary, Undersecretary,
or Assistant Secretary of the DTESD must be a citizen and a resident of the Philippines, of good moral
character, of proven integrity, and with at least five (5) years relevant experience.
SEC.11. Bwrcaus, Scrw.cos, a#d Perso"#c/. -The bureaus under the Offlce of the Secretary
of DTESD  shall be headed by an Executive  Director to  be appointed by the President upon the
recommendation of the Secretary. The Executive Directors shall have the rank and emoluments of
Director IV.
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SEC. 12. Regivl¢/ OJj7ice - There shall be stablished a Regional Office in each region of the
country to be headed by the Regional Director with the rank and emoluments of Director IV and appointed
by the President upon the recommendation of the Secretary.  The Regional Office shall have the following
functions:
a)   Direct implementation of TESD programs, projects and related activities in the region;
b)   Develop  and recommends  TESD  programs  for local  level  implementation  within  set
policies;
c)   Deploy policies to stakeholders;
d)   Manage TESD resources in the region;
e)   Plan and implement policy inputs;
I)   Monitor and evaluate prograln implementation; and
g)   Perform such other functions as may be authorized.
SEC. 13. rrfec Prottl.#ci.a/ or Distrl.ct 0//3ces- The Provincial/District Office shall be headed by a
Provincial/District Director who shall have the rank and emoluments of a Director Ill and appointed by
the President upon the recommendation of the Secretary.  The Provincial/District office shall have the
following functions:
a)   Serve as secretariat to the Provincial TESD Committees;
b)   Provide technical assistance to the local government units for effective supervision, coordination,
integration of all technical education and training programs within their localities;
c)   Review and recommends priority technical education and training programs within their
localities; and
d)   Perform such other functions as may be authorized.
SHC. 14. rcch"i.c¢/ Ed&cofro# aHd rm..mI.#g Cc#/crs. - The DTESD shall absorb and enhance
existing Technical Education and Training Centers and establish a network of national, regional and local
technical education and skills development centers for the purpose of promoting technical education and
skills development. This network shall include leading training technology centers, training centers in
technical-vocational  schools,  including TESDA-administered and  supervised Tvls,  including arts and
trades schools/colleges and polytechnic institutes, and all other duly accredited public and private dual
system educational institutions. The TESD centers shall be administered and operated under such rules
and regulations as may be established by the DTESD in accordance with the NTESDP.
These centers and schools shall have the following functions:
a)  Provide responsive formal and non-formal TESD programs;
b)  Conduct applied research and development programs and provides extension services in
coordination with Regional Offices (ROs)/Provincial Offices (POs);
c)  Undertake entrepreneurship development program;
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d)  Conduct outreach programs in coordination with ROsmos;
e)  Provide job linkages;
D  Provide assessment and certification;
g)  Devise mechanisms for sustainable operation and development;
h)  Monitor and evaluate prograni implementation; and
i)    Perform such other functions as may be authorized.
SIIC. 15. Strwc/wrc ¢#d Sraj7iHg Pfl!#t?rJI. - Subject to the approval of the Department of Budget
and Management (DBM), the DTESD shall determine its organizational structure, staffing, pattern,
qualification standards, and placement of personnel in the DTESD in accordance with the civil service
rules, and regulations.
SE:C. 16. Conapliance with the Salary Standardization Law. -The corm[pensat\on and ermch:urner\ts
of the officials and employees of the DTESD shall be in accordance with the Salary Standardization Law
and other applicable laws under the national compensation and clarification plan.
SHC. T] . Consultancy, Technical Assistance, Publication, and Research. -Ir\ pNIs:\ranee of its
objectives, the DTESD is hereby authorized to set aside a portion of its appropriation for the hiring of
services of qualifled consultants, and private organizations for research work and publication in the field
of technical education and training. It shall avail itself of the services of other agencies of the government,
as may be required.
SHC. TS. Formula[tion Of a Comprehensive Development Plan fior Middle Level Manpower. -
The DTESD shall formulate a comprehensive development plan for middle manpower based on a national
employment plan or policies for the optimum allocation, development and utilization of skilled workers
for employment entrepreneurship and technology development for economic and social growth. This plan
shall be updated periodically and submitted to the President for approval. Thereafter, it shall be the plan
for the technical education, training, and certification for the entire country within the framework of the
National Development Plan. The DTESD shall direct through its offices to call on public agencies, the
private sector and academe to assist in this effort. The comprehensive plan shall provide for a reformed
industry-based training program including apprenticeship, dual training system and other similar schemes
intended to:
a)   Promote maximum protection and welfare of the worker-trainee;
b)   Improve  the  quality  and  relevance  and  social  accountability  of technical  education  and
training;
c)    Accelerate the employment generation effort of the government; and
d)   Expand the range of opportunities for upward social mobility of the school going population
beyond the traditional higher levels of formal education. All government and non-government
8


agencies receiving financial and technical assistance from the government shall be required to
formulate their respective annual agency technical education and training plan. The budget to
support such plan shall be subject to review and endorsement by the DTESD to the DBM. The
DTESD  shall  evaluate  the  efficiency  and  effectiveness  of  agencies  skills  development
program and schemes to make them conform to the quantitative and qualitative objectives of
the national technical education and skills development plan.
SE:C. 19. Technical Education and Skilts Development Committees. -The DTESD shall estdbhish
Technical Education and Skills Development Committees at the regional and local levels to coordinate
and monitor the delivery of all training activities by the public and private sectors, and recommend policy,
program  and  project.  This  committee  shall  likewise  serve  as  the  Technical  Education  and  Skills
Development  Committees  of the  regional  and  local  development  councils.  The  composition  of the
Technical Education and Skills Development Committees shall be determined by the Secretary.
SIIC. 20. EH/cxpdsc-Based rroi.#..#g I+ogrom  - The DTESD shall promote Enterprise-Based
Training as a major mode of training rather than an employment arrangement and shall see to it that it is
not subject to abuse by unscrupulous entities.
S;HC. Z1. Establishment and Administration Of National Training Standards. -rITpere srfuaixl be
national training standards to be established by DTESD-accredited industry committees. The DTESD shall
develop and implement a certification and accreditation prograni in which private industry groups and
trade associations are accredited to conduct approved assessment packages, and the local government units
to promote such assessment in their respective areas in accordance with the guidelines set by the DTESD.
The Secretary shall determine the occupational trades for mandatory certification. All certificates
relating to the national training standards and certification system shall be issued by the DTESD through
its Regional and Provincial Offices.
In consonance with the PQF, the DTESD shall closely collaborate with the Professional Regulation
Commission a'RC) as regards to the assessment of technicians, master craftsman and technologists.
SHC.  22. Ad".His/r¢#.o#  a/ rmi.#i.Hg Progr¢msL  -  The  DTESD  shall  design and  administer
training programs and schemes that will develop the capabilities of public and private institutions to
provide quality and cost-effective technical education and skills development and related opportunities.
Such training programs and schemes shall include teachers'/trainers' training in occupational trades and
related fields of employment, and value development as an integral component of all technical education
and training programs.
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SEC. 23. 4ssis/o#ce fo Exp/oj7crs ¢#d Orgr#i.zndoiisL - The DTESD shall assist any employer or
organization engaged in technical education and training schemes design to attain its objectives under
rules and regulations established by the DTESD for this purpose.
SEC. 24. Accredi./¢tion aHd jReg#/¢from a/7ESD I+ogroms. -All TESD shall be duly accredited
by  the  DTESD  before  it  is  offered  to  the  public  by  any  public,  private  entity  or  non-government
organization.
Non-compliance with the accreditation requirements of the DTESD shall form part of the bases
for  the  possible  suspension  or  cancellation  of the  entities'  license  to  operate  issued  by  competent
authorities.
SEC. 25.  Coordz.#afl.o# a/.4/J ZESD Schcmcs.  -In order to  integrate the national technical
education and  skills  development efforts,  all technical  education and  skills  development schemes  as
provided for in this Act shall comply with national standards as detemined by the DTESD particularly
those having to do with competency standards. For this purpose, existing technical education and skills
development programs in the Government and in the private sector, specifically those wholly or partly
financed with government funds, shall be reported to the DTESD which shall assess and evaluate such
programs to ensure their efficiency and effectiveness.
Noncompliance with the above-mentioned standards as well as reportorial requirements shall be
disqualified  from  any  form  of government  assistance  in  the  field  of technical  education  and  skills
development.
SEC. 26. E#/txprisc-Based PHrfillcrsforps o#d fi."*¢ges. - The DTESD shall establish effective
and efficient institutional arrangements with industry bodies and such other organizations or associations
to ensure direct participation of employers and workers in the design and implementation of technical
education and skills development schemes, competency standardization and certification; and such other
functions in the fulfillment of the DTESD's objectives.
SEC. 27. J#c/usg.ve rro..Hi.#g qppo#wwife§. - The DTESD shall likewise design and implement a
delivery system for community based technical education and skills development opportunities for the
marginalized  and  disadvantaged  sectors  of the  population,  including  the  beneficiaries  of Pantawid
Pamilyang Pilipino Program (4Ps) as provided under Republic Act No. 11310 or the Pantawid Pamilyang
Pilipino Program Act, providing them with new tools of wealth creation and with the capability to take on
higher value-added gairful activities; and, to share equitably in productivity gains eventually leading to
poverty alleviation and reduction.
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SEC. 28. S4I./Js Compc/I.fl.o#s. - To promote quality technical education and skills development in
the country and with the view of participating in international skills competitions, the DTESD, with the
active participation of private industries, shall organize and conduct annual skills competitions.
The DTESD shall promulgate the necessary rules and guidelines for the effective and efficient
conduct  of national  skills  competitions  and  for  the  country's  participation  in  intemationals  skills
competitions such as ASEAN and World Skills Olympics.
SEC. 29. 7lrfee rESD Dove/apn®ewf Fw#d. - A Technical Education and Skills Development Fund
is hereby established, to be managed/administered by the DTESD, the income from which shall be utilized
exclusively  in  awarding  of grants  and  providing  assistance  to  training  institutions,  industries,  local
government units for upgrading their capabilities and to develop and implement training and training-
related activities.
The contribution to the fund shall be the following:
a)  A one-time lump sum appropriation from the National Government;
b)  An annual contribution from the Overseas Workers Welfare Administration Fund, the amount
of which shall be detemined by the Overseas Workers Welfare Administration and based on
the study on financing capacity of the OWWA fund;
c)  Donations, grants, endowments, and other bequests or gifts, and any other income generated
by the DTESD.
The Secretary shall be the administrator of the fund, and as such, shall formulate the necessary
implementing guidelines for the management of the fund, subject to the following:
a)  Unless otherwise stipulated by the private donor, only earnings of private contributions shall
be used; and
b) No part of the seed capital of the fund, including earnings, thereof, shall be used to underwrite
expenses for the administration of the Fund.
The  Secretary  shall  appoint  a reputable  government-accredited  investment  institution  as  fund
manager, subj ect to existing goverrment rules and regulations.
SELC. 30. Technical Assistance, Incentives and Scl.olarship Grants. -The D:TEED shall aidapit a.
system of providing technical assistance, incentives and scholarship grants which shall be designed to
encouragepublicandprivatesectorandclienteleparticipationintechnicaleducationandtraihingactivities
along the priorities identified by the National Development Plan/Agenda.
SEC. 31. PJ¢ccme"/ Ce#/ere.  - There shall be established a network of placement centers or
PLACERS in all the Provincial/District Offices to cater specifically to the job placement of graduates of
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TESD institutions. These Centers shall be fmanced and administered by the DTESD.  In coordination with
the  Department  of  Labor  and  Employment  (DOLE),  these  centers  shall  be  part  of  the  National
Employment Service Network of the DOLE.
SELC. 32.  Separation and Retirementfirom Service. -Employees who are sepaira:ted from seIviee
within six (6) months from the effectivity of this Act as a result of the abolition or reorganization under
the provisions of this Act shall receive separation benefits to which they may be entitled under existing
laws, orders and issuances:  Prow.ded, that those who are qualified to retire under existing retirement laws
shall be allowed to retire and receive retirement benefits to which they may be entitled under applicable
laws, orders and issuances.
SEC. 33. rrousI./ory ProtJis..o#. -The TESDA Secretariat created under Sections 10-15 of R.A.
7796 shall comprise the initial manpower complement of the DTESD: Prow.ded, that, no employee shall
be terminated by virtue of this transfer.
The  laws  and rules  on government reorganization as provided under Republic Act No.  6656,
otherwise known as the Reorganization Law, shall govern the transfer and reorganization process of the
DTESD.
The Personnel of the TESDA shall, in a holdover capacity, continue to perform their respective
duties and responsibilities and receive their corresponding salaries and benefits until such time when the
organizational structure pattern of the DTESD shall have been approved: Provz.cJed, That the preparation
and approval of the said new organizational structure and staffing pattern shall, as far as practicable,
respect and ensure the security of tenure and seniority rights of affected government employees. Those
personnel whose positions are not included in the new staffing pattern or who are not reappointed or who
choose to be separated as a result of the reorganization shall be paid their separation or retirement benefits
under existing laws.
SEC. 34. 4aproprfofro#s. -The amount needed for the initial implementation of this Act shall be
taken from the current fiscal year's appropriation of TESDA.  Thereafter, the amount needed for the
operation and maintenance of the DTESD shall be included in the General Appropriations Act.
SEC. 35. Jxp/cnSeH/I.#g Rndc§ ¢#d jRcgw/¢fro#s. - The DTESD, in consultation with concerned
government agencies including the Presidential Legislative Liaison Office (PLLO), shall issue, within a
period of ninety (90) days after the effectivity of this Act, the rules and regulations for the effective
implementation of this Act.
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SEC. 36. Separ¢bl./try C7¢iisc.  - If, for any reason, any portion or provision of this Act shall be
held unconstitutional or invalid, the remaining provisions not affected thereby shall continue to be in full
force and effect.
SEC. 37. Repca/i.ng CJ¢usc. - Republic Act No. 7796, otherwise known as the  "7ESD4 ,4c/ a/
/994, "  is  hereby  repealed.    All  laws,  presidential  decrees,  executive  orders,  rules  and  regulations,
issuances or parts thereof which are inconsistent with the provisions of this Act are repealed, amended or
modified accordingly.
SEC. 38.   EJ7rcctr.tJrty.  -This Act shall take effect fifteen (15) days after its publication in the
OJ7}cja/ Gaze//e or in a newspaper of general circulation.
Approved.
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