Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

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H. B. No. 437

Introduced by HONORABLE 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. According to 2006 statistics, only about 4% of public high schools have
facilities that give students internet training or access. Only 39% of the 5,443 public high
schools in the country have computer equipment platforms that can be wired to the internet.

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 institutionalization 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;

c) Develop mechanisms that will define the roles and responsibilities of the officials
from the regional, division down to the schoo! levels in the implementation of school
modernization programs;

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

e) 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.

a
JUAN EDGARDO “SONNY” M. ANGARA

Representative
Lone District, Province of Aurora


FIFTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES —)
First Regular Session )

Q7
H.B.No. 43%

Introduced by Honorable 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 of the Philippines in
Congress assembled:

SECTION 1. Title. This Act shall be known as the “School Modernization and
Innovation Act of 2010.”

SEC, 2. Declaration of Policy. Itis 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 institutionalization of a comprehensive, and
‘sustainable modernization program for the public schools;

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

c

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;
and

e

To define a regional, division and school modernization and innovation plan
responsive to the needs of the students in the area.

SEC. 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.

SEC. 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 fifty
percent (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 two (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 modem science equipment,
which is essential in improving the competencies of the students in the area of
science and technology.

SEC. 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.

SEC. 7. Financing of the Program. The Department of Budget and Management shall
allocate ten percent (10%) of the total appropriations of the annual budget of DECS for the
financing of the School Modernization and Innovation Program.

SEC. 8. Formulation of Schoo! Modernization and Innovation Plan at School 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 modemization and innovation plan for
public elementary and secondary schools nationwide which will be implemented
within a period of ten (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 financial 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.

SEC. 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,

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 earings of the
Philippine Amusement Gaming Corporation (PAGCOR);

3) The equivalent of ten percent (10%) annual share on the Total gross collections
of the travel tax;

4) The equivalent of twenty percent (20%) of any additional increase annually in the
fees for vehicle registration;

5) The equivalent of two percent (2%) of the additional increase annually in revenue
collections;


6) The equivalent of ten percent (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 fifty percent (50%) of the entire annual income shall be retained in the
Bureau of the Special Treasury.

SEC. 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.

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;

b) Unless otherwise stipulated by the private donor, only earnings of private

contributions shall be used for administrative expenses; and

©) 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.

SEC. 11. Mandatory Allocation. Each local government unit is hereby directed to
allocate at least five percent (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

SEC. 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 software; and

d) Procurement of science equipments for science laboratories in schools.

SEC. 13. Order of Priority in the allocation of funds. In order for the school to be
given priority in the allocation of funds from the School Modemization 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 forty percent (40%) counterpart funding
from either the local government unit, private corporations, foundations, business
groups or private individuals for every program which will be implemented; and

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

SEC. 14. Selection Process. The individual schools nationwide are directed to develop
project proposals in line with the modernization thrusts of their region and submit to their
respective 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 two (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
three (3) Division Superintendents and two (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 Five Hundred
Thousand (P500,000.00) Pesos 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.

SEC. 15. Private Sector Participation. The members of the private sector are hereby
encouraged to provide technical and/or financial support 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 allowed to deduct from their gross


income one hundred percent (100%) of the expenses directly used to finance the
implementation of the program in the schools.

The schools which would be able to seek at least forty percent (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

SEC. 16. Implementing Rules and Regulations. The Secretary of Education shall
promulgate thie implementing rules and regulations within ninety (90) days after the approval of
this Act

SEC. 17. Separability Clause. f 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.

SEC. 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.

SEC. 19. Effectivity. This Act shall take effect fifteen (15) days following the publication
in at least two (2) newspapers of general circulation.

Approved,