SEVENTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
Second Regular Session )
SENATE +:
$.B. No. 1802 /

Introduced by Senator SONNY ANGARA

AN ACT
INSTITUTIONALIZING A SCHOOL MODERNIZATION AND INNOVATION
PROGRAM FOR PUBLIC ELEMENTARY AND SECONDARY SCHOOLS
PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES

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. Only half of high schools nationwide reportedly
have computer laboratories. Most of these need to be repaired or upgraded
however, as the computers in these laboratories are not properly maintained after
they've been delivered to schools.

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 modemization;

c. 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 school modernization programs;

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

e. Define regional and schoo! 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.

Cheorvarks



SEVENTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )

Second Regular Session ) "8 MAY 1 NT
|

SENATE Re
8.8. No, 1802

Introduced by Senator SONNY 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 the 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 2018.”

SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to
promote a comprehensive and sustainable modemization 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:



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(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 Modemization and Innovation Act. The Secretary of Education shall be
responsible of ensuring the smooth implementation of the modemization 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. The DepEd, in
coordination with other appropriate government agencies, shall determine
the appropriate number of information technology (IT) equipment
depending on the number of student enrollment. The Science high schools
in every region nationwide shall be given priority in the allocation of funds
for the computerization.

(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 five (5)
computers, which have Internet access to assist the students in their
research work.



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(c) Promotion of an integrated distance-leaming 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 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 at least ten percent (10%) of the total appropriations of
the annual budget of the Department for the financing of the School Modemization
and Innovation Program.

SEC. 8. Formulation of School 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 five (5)

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years. 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.

(c) School Modernization and Innovation Plan. Each school shall formulate its
own 5-year modemization 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 of this Act to finance the priority programs for school modemization and
improvement of public elementary and secondary schools.

(a) The government's contribution to the Fund shall be the following:
4) The amount of Fifteen Billion Pesos (PI5,000,000,000.00) as seed
capital;
2) The equivalent of ten percent (10%) of the annual gross earnings of the
Philippine Amusement Gaming Corporation (PAGCOR);



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3) The equivalent of 10% annual share on the total gross collections of
the travel tax;

4) The equivalent of 10 %of any additional increase annually in the fees
for vehicle registration;

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

6) The equivalent of 10% of the sales of the lotto operations of the
Philippine Charity Sweepstakes Offices (PCSO).

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).

(c) 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, that 50% of the entire annual
income shalll 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 Department 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;

(b) 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.



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SEC. 11. Assistance from Local Government Units. - Each local government
unit (LGU) shall 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.

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 Modemization Committees
created under Section 13 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;

(c) Procurement of computer equipments including maintenance of computer,
laboratories, audio visual and multimedia facilities, and appropriate
education technology softwares; and

(4) 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 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
the local government unit, private corporations, foundations, business
groups or private individuals for every program which will be implemented.

(c) The programs have been approved by either the Regional Modemization
Committee or 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.

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‘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
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 Division Superintendents and two 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 up to One million pesos (P1,000,000.00).

However, the approved project proposals with a funding requirement of more
than One million pesos (P1,000,000.00) will be forwarded to the National Executive
Modemization 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 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 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.

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SEC. 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.

SEC. 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.

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,