Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
Second Regular Session

House Bill No. __ 4988

Introduced by HON. JOCELYN 8. LIMKAICHONG

EXPLANATORY NOTE

Manpower development programs in the agricultural sector have
been focused primarily on technologists and scientists. Every year,
universities and colleges in the country produce sizable numbers of
graduates in agriculture-related courses. Many of these graduates find
work in government agencies, companies engaged in agriculture, but
unfortunately a good number do not end up working in agri-related
jobs.

However, because of this bias, few graduates have ventured into
the business of farming or agricultural (or agri) entrepreneurship. This
has contributed to the historical underperformance of Philippine
agriculture and the transformation of the country from an agricultural
exporter into a major importer of agricultural products. In fact, the
Philippines is already the largest importer of rice in the world. The
same bias has tended to perpetuate the negative outlook that
agriculture is less of a profession or a business enterprise than a
means to daily subsistence: agriculture is often equated with poverty
and underprivileged status. An abundance of anecdotal reference
points to children of farmers preferring education in the professions or
work in the factories or in the service sector in large urban areas than
to farming.

There have been initiatives to address the need for agricultural
entrepreneurship training programs. Family Farm Schools (in same
cases they are known as Rural Development Schools) have been
established in various parts of the country since 1988 based on the
original French model. Such schools provide boys and girls with vital
actual experience in agricultural operations and farm management
during the formative high school years. As a proof of the effectiveness
of the system, about 2,500 schools around the world have copied the
French model. The experience has been the same: farms operate as
business enterprises with significant results in profits for farming
families and increases in food production.


The concept of Family Farm Schools may be extended to the
post-secondary and collegiate level. In 1994, Congress enacted
Republic Act No, 7686 (The Dual Training System Act of 1994), which
institutionalized the duat training system, fusing technical and
vocational education with actual training. This dual training system
has since produced thousands of graduates who have given technical
and vocational education an impetus into the industrial,
manufacturing, and service sectors.

‘The new approach to education in agriculture espoused in this
bill takes inspiration from RA No. 7686. Through the measures
proposed in this bill, the country will train men and women as
agriculture entrepreneurs, with actual or “hands on” experience in
farming business, who would consider agriculture as an
entrepreneurial activity, This can be accomplished through a
ladderized system of agricultural education and training that begins
from secondary education. Further, this new approach aims to
alleviate poverty among farmers.

The bill does not seek to create new government agencies at a
time when there is renewed thrust to streamline the bureaucracy. It
also will not entail large appropriations. Instead, it empowers the
Department of Agriculture, through the Agricultural Training
Institute, to pursue the plans, goals and objectives of the bill, in
partnership with the private sector and non-governmental
organizations (NGOs). Thus, this is a Private Public Partnership for
manpower development for the agriculture sector.

In view thereof, approval of this bili is earnest



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIVTEENTH CONGRESS
Second Regular Session

Introduced by HON. JOCELYN 8. LIMKAICHONG

AR ACT
TO STRENGTHEN
AGRICULTURAL EDUCATION AND TRAINING IN THE PHILIPPINES
BY INSTITUTIONALIZING

Section 1. Title. - This Act shall be known as The Agriculture
Entrepreneurship Act of 2011.

Section 2. Declaration of Policy. - It is hereby declared the policy
of the State to develop and strengthen manpower education and
training for agricultural entrepreneurship in order to provide the
country with a pool of an educated and skilled agricultural manpower
equipped with appropriate skilla in agriculture and business, and
desirable work habits and attitudes. The manpower development plan
for agriculture entrepreneurship, as successfully implemented in
other countries, shall be adopted in duty accredited vocational and
technical schools, in cooperation with accredited agricultural,
industrial and business establishments, as one of the preferred means
of creating a dependable pool of well-trained farmers, agriculturists
and entrepreneurs for the economy.

To achieve this, the State hereby establishes the Agricultural
Manpower Education and Entrepreneurship System (AMES) that will
assume a leadership role in secondary and tertiary level agricultural
and entrepreneurship education.

Section 3. Objectives. — This Act shall have the following
objectives:


{a) Encourage application of manpower education and training
for agriculture entrepreneurship in agricultural, technical
and vocational education and training by both public and
private schools within the context of existing agricultural
training and educational system;

(b) Promote investment in manpower education and training for
agriculture entrepreneurship by both public and private
sectora especially in rural areas;

(¢) Enhance the technical competence of students of agriculture
by equipping them with analytical and creative thinking and
problem-solving abilities; manipulative competencies
Suitable for occupational standards and requirements;
values and attitudes with emphasis on work ethice, quality
orientation, discipline, honesty, self-reliance and patriotism;
and

(d) Strengthen training cooperation between agricultural,
industrial and business establishments and educational
institutions by designing and implementing relevant training
programs in clove coordination with local government units.

Bection 4. Definition of Terms. - For purposes of this Act, the

following terms shall mean:

{a) Appropriate Authority refers to the government entity in
charge of implementing the provisions of this Act on
manpower education and training for agriculture
entrepreneurship;

(b) Manpower Education and = Training for Agriculture
Entrepreneurship refers to the instructional delivery system
of agricultural, technical and vocational education and
training that combines hands-on training and in-echool
training based on a training plan designed and implemented
by an accredited manpower education and training for
agriculture entrepreneurship institution/training center and
accredited dual system agricultural, industrial and business
establishments with prior notice and advice to the local
government umit concerned. Under this system, said
establishments and the educational institution share the
responsibility of providing the trainee with the best possible
competencies and experience, the former essentially through
practical training and the latter, by providing an adequate
level of specific, general and ‘theoretical instruction on
agriculture and entrepreneurial management. Dual shall
refer to the two parties providing instruction; system docs


not connote independent action of the two parties but
connotes coordinated efforts;

{c) Trainee refers to a person qualified to undergo the manpower
education and training for agriculture entrepreneurship;

(d) Accredited Dual Training System Educational Institution or

Training Center refers to a public or private institution duly

and authorized by the appropriate authority in

coordination with the agricultural sector, business and

industry, to participate in the manpower education and
training for agricultural entrepreneurship;

(e) Establishments refers to enterprises or services, or both, of
agricultural, industrial, or business establishments;

() Accredited Dual Training System Agricultural, Industrial and
Business Establishments refers to a juridical entity duly
recognized and authorized by the appropriate authority to
participate in the dual system for manpower education and
training for agriculture entrepreneurship.

Section 5. Istitutionalization of the Manpower Education and
Training for Agriculture Entrepreneurship. - The manpower education
and training for agriculture entrepreneurship (herein referred to as the
System) shall be institutionalized in the Philippines in accordance
with the provisions of this Act.

Gection 6. Coverage. - This Act shall apply to all public and
private educational institutions or training centers, and agricultural,
industrial and business establishments duly accredited to participate
in the manpower education and training for agriculture
entrepreneurship.

Section 7. Components of the Manpower Education and Training
for Agriculture Entrepreneurship. - The manpower education and
training for agricultural entrepreneurship shall have the following
components:

1, There shall be a ladderized system of agriculture
entrepreneurship education that begins in the secondary level
and culminates in applicable collegiate courses. The secondary
level education shall follow the system of education of the
Family Farm Schools and/or Rural Development Schools. The
Post-secondary program shail involve the conferment of a
Diploma in Agriculture Entrepreneurship upon graduation of
the trainee who shall have the option to continue his studies in
partner universities for a degree in Bachelor of Science in
Entrepreneurial Management, major in Farm Business;


2. ‘There shail be created for each administrative region
{excluding the National Capital Region) an AMEE Development
School and such other schools as may be established by law;

3. There shall be an instructional delivery system of
agricultural, technical and vocational education and training
beyond the secondary level that combines hands-on training
and in-school training based on a training plan designed and
implemented by an accredited manpower education and training
for agriculture entrepreneurship institution/training centre and
accredited dual system agricultural, industrial and business
establishments with prior notice and advice to the local
government unit concerned. Under this dual system, said
establishments and the educational institution share the

competencies and experience, the former essentially through
practical training and the latter, by providing an adequate level
of specific, general and theoretical instruction on agriculture
and entrepreneurial management;

4. The AMEE System shall inctude instruction on vital values
on citizenship, governance, entrepreneurship, work ethics,
quality orientation, discipline, honesty, and self-reliance;

5. The partnership between the public, private and voluntary
sectors shall be a crucial component of the AMEE System in
‘both academic content and in on-the-job or hands-on training;

6. The AMEE System shall be promoted among poor farming
families and out-of-school youth in the rural areas; the State
shall ensure that poor and deserving youths receive the
necessary grants and scholarships.

Section 8. Board of Trustees. - There shall be a Board of

Trustees composed of the Secretary of the Department of Agriculture
as ex-officio Chairman, the Secretary of Department of Education
(DepEd) as ex-officio Vice Chairman, and the following members:

1. The Chairman of the Commission on Higher Education
{CHED);

2. The Chairman of the Technical Education and Skills
Development, Authority (TESDA};

3. The Director of the Bureau of Micro, Small and Medium
Enterprise and Development (BMSMED);

4. The Chairman of the National Anti-Poverty Commission
(NAPC);


5. The Chairman of the National Youth Commission (NYC);

6. One representative each from the private sector representing
higher education, industry, agriculture, and new and emerging
agricultural technologies, and the voluntary sector or non-
governmental organizations, The private sector representatives
shall be appointed by the Chairman subject to the confirmation
of the Board of Trustees. For the first set of appointments, three
(3) of them shall serve for four (4) years, while the other two (2)
for two (2) years, thereafter, succeeding appointments shall have
a fixed term of four (4) years.

The Board shall exercise the following powers:

(a) Formulate policies and guidelines for the administration and
operation of the AMEE System;

(b) Formulate policies on the appointment, promotion, retention,
removal, renewal, rewards and incentives for administrators,
faculty and staff;

(c) Approve the curricula submitted by the Executive Director;

(d) Approve the criteria for the selection and admission of
students;

{e) Approve the grant of scholarshi

stipend and such
allowances for students;

() Approve the graduation of successful candidates from the
various AMEES campuses;

{g) Formulate policies and rules of discipline for students,
faculty and staff;

(h) Approve the AMEE System budget and appropriate to the
ends specified by law such sums as may be provided by law for
the support of the System;

(i) Receive grants whether cash, land, buildings and
improvements thereof; donations, contributions, bequest, gifts,
and to formulate policies for the administration thereof;

() Develop policies for the expansion of enrollment in the
campuses under the AMEE System;

(k) Set policies and criteria to rationalize the establishment of
AMEE schools under the System, for its evaluation and approval
thereof; and


() Prepare strategic plans to enhance the capability of the
System in developing human resources with focus on youth
with special aptitudes and inclination to agriculture and
entrepreneurship.

Section 9. Planning and Coordination for in-plant Training. - The
Agricultural Coordinating Office of the Agricuitural Training Institute
(AT) of the Department of Agriculture shall plan, set standards,
coordinate, monitor and allocate resources in the implementation of
the provisiona of this Act and in support of the in-plant training
component of the AMEE System: provided that the industrial
establishment shall be required to furnish the educational institution
with the necessary information for the purpose of supervision.

‘The Agricultural Coordinating Office shall be headed by an
Agricultural Coordinator (AC) with at least an officer-ievel rank. The
agricultural coordinator may be assisted by such other personnel as

may be necessary for the effective discharge of the functions of the
office.

The AC shall perform the following roles and functions:

1. Coordinate curriculum planning activities for the AMEE
System;

2. Coordinate publication of research outputs of the teachers,
administrators and students from the AMEE System;

3. Provide legal and technical support to the members of the
System;

4, Coordinate exchange programs with other educational
institutions both local and foreign;

5. Develop and coordinate linkages and networking among the
campuses of the AMEE System with other institutions;

6. Coordinate the implementation of the program for the
identification and selection of scholars for the AMEE System;

7. Provide for the secretariat services of the Board of Trustees;
8, Perform other functions as may be deemed necessary.

For the efficient and effective implementation of the foregoi
functions, the AC shall be provided with a staff. ne

Section 10, Status of Trainee. For the duration of the post-
secondary training under the system, the trainee is to be considered


RAKES SSISIRRRON

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not an employee of the business/industrial establishment but rather a
trainee of both the accredited dual training system educational
institution and the agricultural, industrial and business
establishments: provided that the union or the workers of the latter
have been duly informed in advance of such an agreement.

A trainee who has successfully completed a training program in

a particular agricultural, industrial or business establishment shall be

gren Priority of employment in that agricultural, industrial or

business establishment. The appropriate authority shall keep a roll of

these successful trainees for purposes of identifying them for
employment.

Section 11. Incentives for Participating Establishments. To
encourage agricultural, industrial and business establishments to
participate in the system, they shall be allowed to deduct from their
taxable income the amount of One Hundred and Fifty percent (150%)
of the system expenses paid to the accredited dual training system
educational institution for the establishment's trainees: provided that
such expenses shall not exceed five percent (5%) of their total direct
labor expenses but in no case to exceed Twenty-Five Million Pesos
(P25,000,000.00) a year.

Donations for the operation of the system shall be deductible
from the taxable income of the donors. Donations to government-run
educational institutions shall be awarded incentives under the “Adopt
A School Program.”

The Department of Finance shall issue the necessary rules and
regulations for the purpose of tax incentives provided herein.

Section 12. Obligations of Accredited Agricultural, Industrial
and Business Establishments. The Agricultural, Industrial and
Business Establishments shall:

{a) ensure that the necessary abilitics and knowledge for the
trainee to achieve the purpose of his training are imparted to him
and shall provide such training systematically in accordance with
an approved training plan;

(b) appoint the training officer to implement the training plan;

(c) make available, free of charge, the consumable materials and
basic hand tools and equipment necessary for his training;

{G) allow the trainee to attend his in-school training and to sit for
his examinations;


1 (e} require the trainee to keep his report book up to date and

2 inspect such books;

4 (f) ensure that the trainee is encouraged to develop his

5 personality and that he is protected from physical or moral

‘6 danger;

7

8 {g) entrust to the trainee such jobs as are related to the purpose
9 of his training and are commensurate with his capabilities;

n (h) pay to the accredited educational institution/training centre
2 the daily allowance of the trainee; and

13

m1 {i) allow the trainee the necessary time off for his in-school

ts training.

16

v Section 13. Obligations of the Trainee. A trainee shall exert

18 every effort to acquire the abilities and knowledge necessary for him to
19 achieve the purpose of his training. Towards this end, he shall:

2t (a) carefully perform the jobs entrusted to him as part of his

2 training;

2B

24 (b) take part in training programs for which he has been granted
2s time off under this Act;

26

a {c) follow the instruction given to him as part of his training by
2 the training officer or any other person entitled to give him such
~ instructions;

30

3 {d) observe rules of behavior in the training premises;

2

3 (c) use tools, instruments, machines and other equipment with
co due care;

33

36 (f) not reveai any business or trade secrets that have come to his
37 knowledge in the course of his training; and

38

eo (g) keep his record books up to date.

“

4. Section 14. Obligations of the Accredited Educational

42 Institutions/Training Centers. The educational institutions/ training
43 centers that have entered into a memorandum of agreement with
44 agricultural, industrial or business establishments to undertake
45 training shall:

a” (a) design, implement and evaluate jointly the training with
the accredited establishments; pn

Be


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(b) provide specific, general and occupation-related theoretical
instruction;

(c) appoint industrial coordinators to supervise the in-
plant/farm training;

(d) pay the trainee his daily allowance; and

(c) perform such other tasks and activitics as may be necessary
and in furtherance of the objectives of the training.

Section 18. Non-diminution of incentives. Nothing in this Act
shall be construed to diminish or reduce any privilege already enjoyed
by the parties concerned under existing laws, decrees or executive
orders.

fnstitution/ Traini
establishment begins with an accredited education
institution/training centre and the trainee or his representative, the
individual establishment shall provide the accredited educational
institution/training centre and the trainee with a copy of the signed
agreement.

The Memorandum of ‘Agreement shail set forth, among others,
the following:

(a) the training plan;

(b) the nature and objective of the training;

(c} the commencement and duration of the training period,

inchiding the total number of in-school and in-plant/farm

training hours;

(d} the norma! daily training hours;

{e) the trainee's allowance and the rate to be applied, which in

no case shall start below seventy-five percent (75%) of the

applicable minimum daily wage for days spent in the

establishments;

{f) the rights and obligations of the parties concemed in addition
to those provided in Sections 12, 13 and 14;

{g) the definition of the status of the traince according to Section
10 of this Act;


3

(h) the conditions for the termination of the training agreement;
(i) the performance, monitoring and evaluation system; and

(i) such other essential particulars as would mutually benefit all
parties concerned.

Section 17. insurance Coverage of the Trainee. Every
agricultural, industrial and business establishment undertaking
training, in accordance with the provisions of this Act, shall sign a life
and/or accident insurance policy on the life of the trainee with the
insured and the spouse, children or parents of the trainee as the
beneficiaries thereof: provided that the agricultural, industrial and
business establishments shall pay for the premiums of said insurance

policy.

Section 18. Revolving Fund. Any law, rule or regulation to the
contrary notwithstanding, the accredited dual training system
educational institution/ training centre is hereby authorized to retain
as a revolving fund the amount paid to it by the agricultural,
industrial and business establishments representing the actual dual
training expenses. The fund shall be used to improve the operation of
the dual training system.

Section 19. implementing Rules. The appropriate authority and
the Department of Finance, upon prior consultation with the business
and industry concerned, shall issue the necessary rules and
regulations for the effective implementation of this Act within a period
of ninety (90} days after its effectivity. Any violation of this section
shall render the concerned officials liable under R.A. No. 6713,
otherwise known as the "Code of Conduct and Ethical Standards for
Public Officials and Employees” and other existing administrative
and/or criminal laws.

Section 20. Other Exemption from Taxes and Duties. Any
donation, contribution, bequest, subsidy or financial aid which may
be made for the operation of the system shall constitute an allowable
deduction from the income of the donors for income tax purposes and
shall be exempt from donor's tax, subject to such conditions as
provided under the National Internal Revenue Code, as amended.
Essential equipment, apparatus and materials imported by accredited
dual training private educational institutions shall be exempt from
taxes and duties: provided that the importation of these items shall be
subject to the following qualifications:

(a) that the importation shall be certified by the appropriate
authority;

(b) that they should be actually, directly and exclusively used in


connection with the dual training system and any unauthorized
use shall subject the accredited dual training private
educational institutions to payment of taxes and duties thereon;
and

(c) that they are not available locally in sufficient quantity of
comparable quality, and at reasonable prices:

Provided, however, that taxes and duties pertaining to the

ippactatingaa’ aconstitad worsremears snd, dual srainine educational

The Department of Finance shali accumulate the necessary
rules and regulations to implement the provisions of this section.

Bection 21. Appropriations. For the initial implementation of
this Act, an amount of Fifty Million Pesos (P50,000,000.00) shall be
charged against the current year’s appropriation of the contingency
fund. Thereafter, such sums as may be necessary for its continued
implementation shall be included in the annual General
Appropriations Act.

Section 22. Separability Clause. If for any reason any provision
of this Act is declared invalid or unconstitutional, the rest shall not be
affected thereby.

Section 23. Repealing Clause. All laws, decrees, orders, rules
and regulations or parts thereof inconsistent with this Act are hereby
repealed or modified accordingly.

Section 24, Effectivity. This Act shall take effect fifteen (15)
days after publication in two (2) national newspapers of general
cireulation.

Approved,