Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

THIRTEENTH CONGRESS
First Regular Session

H.No.___ 89

Introduced By Hon. Juan Edgardo “Sonny” M, Angara

EXPLANATORY NOTE

The era of globalization has placed extreme Pressure on our government
to produce highly specialized and technical personnel in a relatively short period
of time. Given the rapid changes and developments in the field of Information
Technology and emergence of knowledge-based society, the Philippines has to
reorient the thrusts of its educational system to meet the growing needs and
demands of a highly competitive world market.

To achieve this arduous task, there is a need to formulate a viable,
comprehensive and sustainable long-term modernization plan for schools
primarily at the elementary and secondary levels.

At present, the students in public schools have been left behind by their
counterparts in the private schools. Based on preliminary report of Department
of Education (DepEd), only 50% of the 4336 high schools nationwide have
computer laboratories. But most of them need to be repaired or upgraded
because after these computers have been delivered to schools, they have not
been properly maintained. A computer laboratory consists of a minimum of 10
computers.

Given the scarce resources of the national government, there is a need to
be more cost-effective and innovative in our approach to finance school
modernization programs. This can be achieved through active partnership with
local government units and Private sector such as foundations private
corporations and business groups.

The School Modernization and Innovation bill aims to:

a) Provide a broad framework for the  institutionalisation 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;

¢) 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 schoo! modernization programs;

d) Provide mechanism on how the private sector can participate in the
program;

€) Define regional and school modernization plans responsive to the
needs of the students in the area.


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

This is the opportune time for the government to seriously consider ways
of increasing the share of budget devoted to computerization of schools,
upgrading of libraries and science laboratories. Moreover the application of
information technology in classroom instruction would increase efficiency in
teaching and learning process and enhance competencies of students.

In view of the foregoing, the immediate passage of this bill is earnestly

sought.
JUAN EDGARDO “SONNY” M. ANGARA


THIRTEENTH CONGRESS OF THE REPUBLIC. }
OF THE PHILIPPINES }
First Regular Session }
HOUSE OF REPRESENTATIVES

H. No. 89

Introduced by Rep. Juan Edgardo “Sonny” M. Angara

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 House of Representatives in Congress
assembled:

SECTION 1. Title. - This Act shall be known as the “School
Modernization and Innovation Act of 2004”.

SEC, 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.

SEC. 3. Statement of Purpose. - This Act seeks to attain the following
objectives:

a) To provide a broad framework for the institutionalisation of a

comprehensive and sustainable modernization program for the public

schools.


b) ‘fo encourage the schools to become more innovative and resourceful in
developing and implementing programs geared towards modernization

¢) 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 in the
program,

€) 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 School 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.

¢) 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 modern system of instructional and
communication technology. It may adopt an interactive system of
instruction through television, modern 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 laboratories 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 DECS for the financing of the School Modernization and Innovation Program.
SECTION 8, Formulation of School Modernization and Innovation Plan at

Schvol 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.

¢) 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 fin.incial 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 Modernization 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

modernization and improvement of public elementary and secondary schools.

y

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

3)

4)

5}

6)

earnings of the Philippine Amusement Gaming Corporation
(PAGCOR)

The equivalent of 10% annual share on the Total gross collections

of the travel tax
) The equivalent of 20 %of any additional increase annually in the
fees for vehicle registration;

The equivalent of 2% of the additional increase annually in

revenue collections.

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 modernization
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;

yD, 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.

°) 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 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,

<) The programs have been approved by either the Regional
Modernization Committee, and the National Executive Committee or
both depending on the fuiuing required.

SECTION 14. Selection Procvss. - The individual schools nationwide are

directed to develop project proposa's in line with the modernization thrusts of

their region and submit to their - espective 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 P500,000.00 and less.

However, the approved project proposals with a funding requirement of
more than 500,000.00 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 suppott 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 ;llowed to deduct from their gross income
100% of the expenses directly used t » 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 atleast two (2) newspapers of general circulation.

Approved,