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

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No. 7912

INTRODUCED BY REPRESENTATIVE MARLYN B. ALONTE

AN ACT TO DEVELOP AND STRENGTHEN THE AGRICULTURAL EDUCATION AND TRAINING
IN THE COUNTRY THROUGH THE INSTITUTIONALIZATION OF MANPOWER DEVELOP-
MENT FOR AGRICULTURAL ENTREPRENEURSHIP IN THE POST-SECONDARY LEVEL

EXPLANATORY NOTE

In a developing country like the Philippines, the agriculture sector does not only provide food
security. It also serves as one of the primary sources of livelihood for an average 11.4 milion
Filipinos since 2008 (or about one-third of overall employment). Hence, the industry needs all
the support it can get.

One such support that could be extended to the Philippine agriculture industry is programs that
could strengthen agriculture education, which does not only teach the rudiments of the sector,
but other equally important skills as well—agricultural entrepreneurship included. Although agri-
culture-related courses produce sizable number of graduates each year, there seems to be a
continuous decline of employment in this sector in the past decade.

To address this, the proposed measure aims to support current agricultural entrepreneurship
training initiatives that shall be delivered through various means, such as in-school, on the job,
and online (considering the current pandemic situation). These training initiatives shall equip
students with the skills to become agricultural entrepreneurs or agri-preneurs. Proposed is a lad-
derized system of agricultural education and training in the post-secondary level, which can be
an extension of the Rural Farm Schools curriculum. This way, the agriculture industry will be
seen not only as a means of daily subsistence but moreso as a profitable profession or business
enterprise.

Hence, the passage of this bill is eamestly sought.

waStrN ALONTE


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

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No, 7912

INTRODUCED BY REPRESENTATIVE MARLYN B. ALONTE

AN ACT
TO DEVELOP AND STRENGTHEN THE AGRICULTURAL EDUCATION AND
TRAINING IN THE COUNTRY THROUGH THE INSTITUTIONALIZATION OF
MANPOWER DEVELOPMENT FOR AGRICULTURAL ENTREPRENEURSHIP IN
THE POST-SECONDARY LEVEL

Be it enacted by the Senate and the House of Representatives of the Philippines in the Con-
gress assemble:

Section 1. Title. — This Act shall be known as the "Entrepreneurial Agricultural Educa-
tion Act of 2020"

Sec. 2. Declaration of Policy. ~ It is hereby declared the policy of the State to pro-
mote the sustained development of a reservoir of national talents consisting of Filipino scien-
tist, entrepreneurs; professionals, managers, high-level technical manpower and skilled
workers and craftsmen in all fields. Towards this end, manpower education and training in
the agricultural sector must be developed and strengthened in order to provide the country
with a pool of educated and skilled agricultural manpower equipped with appropriate skills in
agriculture and business, and desirable work habits and attitudes.

Sec. 3. Agricultural Manpower Education and Entrepreneurship System. ~ The State
hereby establishes the Agricultural Manpower Education and Entrepreneurship System
(AMEES) that will assume a leadership role in the post-secondary, vocational or tertiary lev-
el of agricultural and entrepreneurship education, following the completion of the rural farm
school's curriculum in the secondary level

Sec. 4. Objectives. ~ This Act primarily aims to develop and strengthen the agricul-
tural education and training in the country through the institutionalization of manpower de-


velopment for agricultural entrepreneurship in the post-secondary level. It shall have the fol-
lowing specific objectives:

a. Encourage the application of manpower development for agricultural en-
trepreneurship 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 sectors especially in rural ar-
eas;

c. Enhance the managerial skills and technical competence of students of ag-
riculture by equipping them with analytical and creative thinking and prob-
lem-solving abilities; manipulative competencies suitable for occupational
standards and requirements; values and attitudes with emphasis on work
ethics, quality orientation, discipline, honesty, self-reliance and patriotism;
and,

d. Strengthen training cooperation between agricultural, industrial and busi-
ness establishments and educational institutions by designing and imple-
menting relevant training programs in close coordination with local gov-
ernment units.

Sec. 5. Definition of Terms, — For purposes of this Act, the following terms shall

mean:

a. Agricultural Entrepreneurship refers to the process of identifying, starting
and managing a farm business or enterprise, sourcing and organizing the
required resources and taking both the risks and rewards associated with
the venture;

b. Manpower education and training refers to the instructional delivery sys-
tem of agricultural, technical and vocational education and training that
combines hands-on and in-school training based on a training plan de-
signed and implemented by an accredited manpower education and train-
ing institution for agricultural entrepreneurship and accredited dual system
agricultural, industrial and business establishments with prior notice and
advice to the local government unit concerned;


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

d. Farm Business Schools are post-secondary schools where students, who
are graduates of the Rural Farm Schools or any qualified secondary insti-
tution specializing in agriculture, shall be trained on agricultural entrepre-
neurship;

e. Accredited dual training system educational institution or training center
refers to a public or private institution duly recognized and authorized by
the TESDA in coordination with the agricultural sector, business and in-
dustry, to participate in the manpower education and training for agricul-
tural entrepreneurship;

f. Accredited dual training system agricultural, industrial and business estab-
lishment refers to a juridical entity duly recognized and authorized by the
TESDA to participate in the dual system for manpower education and
training for agricultural entrepreneurship; and,

g. Establishments refer to enterprises or services, or both, of agricultural, in-
dustrial, or business establishments.

See. 6. Institutionalization of the Manpower Education and Training for Agricultural

Entrepreneurship. ~The manpower education and training for agriculture entrepreneurship,
hereafter the System, shall be institutionalized in the Philippines. It shall form as part of the

post-secondary education curriculum as provided in this Act.

Sec. 7. Coverage. ~ This Act shall apply to all public and private educational institu-

tions or training centers, and agricultural, industrial and business establishments duly accred-

ited to participate in the manpower education and training for agricultural entrepreneurship.

Sec. 8. Components of the Manpower Education and Training for Agricultural Entre-

preneurship. ~ The manpower education and training for agricultural entrepreneurship shall

have the following components:

1. There shall be a ladderized system of agriculture entrepreneurship educa-
tion that begins in the post-secondary level following the completion of
the Rural Farm School curriculum as provided in Republic Act No. 10618
(Rural Farm Schools Act of 2013), or upon graduation in any qualified
secondary institution, and culminates in applicable collegiate courses. The


post-secondary program shall involve the conferment of a Diploma in Ag-
ricultural Entrepreneurship upon graduation of the trainee from the Farm
Business Schools 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;

. There shall be created for each administrative region (excluding the Na-
tional Capital Region) an AMEES Development School or Farm Business
School, and such other schools as may be established by law;

. There shall be an instructional delivery system of agricultural, technical
and vocational education and training in each Farm Business School that
implements blended learning consisting of hands on, in-school and online
modules based on a training plan designed and implemented by an ac-
credited manpower education and training institution for agricultural en-
trepreneurship and accredited dual system agricultural, industrial and
business establishments with prior notice and advice to the local govern-
ment unit concerned. Under this dual system, said establishments and the
educational institution share the responsibility of providing the trainee
with the best possible competencies and experience, the former essential-
ly through practical training, and, when possible, remote training, and the
latter, by providing an adequate level of specific, general and theoretical
instruction on agriculture and entrepreneurial management;

. The AMEES shall include instruction on vital values on citizenship, govern-
ance, entrepreneurship, work ethics, quality orientation, discipline, hones-
ty, and self-reliance;

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

. The AMEES shall also be promoted among poor farming families and out-
of-school youth in the rural areas and in agrarian reform communities.
The AMEES shall ensure that poor and deserving youths receive the nec-
essary grants and scholarships.


Sec. 9. Board of Trustees. ~ There shall be a Board of Trustees, herein referred to as
the Board, composed of the Secretary of the Department of Agriculture (DA) as ex-officio
Chairman, the Chairman of the Commission on Higher Education (CHED) as ex-officio Vice

Chairman, and the following members:

1.

5.

The Chairman of the Technical Education and Skills Development Authori-
ty (TESDA);

. The Director of the Bureau of Micro, Small and Medium Enterprise and

Development (BMSMED);

. The Director of the DA-Agricultural Training Institute (ATI);
. Two (2) Representatives from the private sector representing higher edu-

cation, industry, agriculture, and new and emerging agricultural technolo-
gies; and,
Representative from a non-governmental organization.

The representatives from the private sector and non-government organizations shall

be appointed by the Chairman, subject to the confirmation of the Board of Trustees.

The members of the Board shall serve for four years.

Sec. 10. Powers and Functions of the Board. — The Board shall exercise the following

powers and functions:

Formulate policies and guidelines for the administration and operation of
the AMEES;

. Formulate policies on the appointment, promotion, retention, removal, re-

newal, rewards and incentives for administrators, faculty and staff;

. Craft and approve the AMEES curricula;
|. Approve the criteria for the selection and admission of students;
. Approve the grant of scholarship, stipend and such allowances for stu-

dents;

, Approve the graduation of successful candidates from the various AMEES

campuses or farm business schools;

|. Formulate policies and rules of discipline for students, faculty and staff;
. Approve the AMEES 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;

j. Develop policies for the expansion of enrollment in the campuses under
the AMEES;

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

|. Prepare strategic plans to enhance the capability of the AMEES in develop-
ing human resources with focus on youth with special aptitudes and incli-
nation to agriculture and entrepreneurship;

m. Identify training centers /institutions that will provide manpower training
and education; and,

n. Perform such other functions as may be necessary to implement the pro-
visions of this Act.

Sec. 11. Career Management Development Division. — The Career Management De-
velopment Division (CMDD) of the Agricultural Training Institute (ATI) of the Department
of Agriculture (DA) shall plan, set standards, coordinate, monitor and allocate resources in
the implementation of the provisions of this Act and in support of the in plant, on-the-job, or
remote training components of the AMEES: Provided, That the agricultural and agro-
industrial establishment shall be required to furnish the AMEES with the necessary infor-
mation for the purpose of supervision.

‘The CMDD shall be headed by a Division Chief (DC). The DC shall be assisted by
such other personnel as may be necessary for the effective discharge of the functions of the
office.

Sec. 12. Duties and Functions of the Division Chief. - The DC shall perform the fol-
lowing duties and functions:

1) Coordinate curriculum planning activities for the AMEES;

2) Coordinate publication of farm business outputs of the teachers, adminis-

trators and students from the AMEES;

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

4) Coordinate exchange programs with other educational institutions both lo-
cal and foreign, including youth development and empowerment organiza-
tions such as the 4-H Club;


5) Develop and coordinate linkages and networking among the campuses of

the AMEES with other institutions;

6) Coordinate the implementation of the program for the identification and

selection of scholars for the AMEES;

7) Provide for the secretariat services of the Board of Trustees; and,

8) Perform such other functions as may be deemed necessary for the effec-

tive discharge of the DC's duties.

Sec. 13. Status of Trainee. — Any student who is a bona fide graduate of a Rural Farm
School or any qualified secondary educational institution shall be eligible to enroll in a farm
business school. For the duration of the post-secondary manpower training under the System,
the trainee is to be considered not an employee of the business/industrial establishment but
rather a trainee of both the accredited dual training system educational institution and the ag-
ricultural, 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 agricul-
tural, industrial or business establishment shall be given priority of employment in that agri-
cultural, industrial or business establishment. The CHED shall keep a roll of these successful
trainees for purposes of identifying them for employment

Sec. 14. Obligations of the Accredited Educational Institutions or Training Centers. ~
The educational institutions or training centers that have entered into a memorandum of
agreement with agricultural, industrial or business establishments to undertake training shall:

a. Ensure that the necessary skills and knowledge are imparted to the trait

ee during his in-school trainings in accordance with an approved training
plan;
b. Design, implement and evaluate jointly the training plan with the accredit-
ed agricultural, industrial and business establishments;
. Provide the training instructors;
|. Provide specific, general and occupation-related theoretical instructions;
. Appoint industrial coordinators to supervise the in-plant or farm training;
Pay the trainee his daily allowance;
. Provide tools and equipment necessary for blended learning; and,
|. Perform such other tasks and activities as may be necessary in further-
ance of the objectives of the training.

so 7p an


Sec. 15. Obligations of Accredited Agricultural, Industrial and Business Establish-

ments, ~ The agricultural, industrial and business establishments shall have the following du-

ties and responsibilities:

a.

Ensure that the necessary skills and knowledge are imparted to the train-
ee during his hands-on trainings in accordance with an approved system-
atic training plan;

. Appoint the training officer/s to implement the training plan;
. Make available, free of charge, the, consumable materials and basic hand

tools and equipment necessary for the training;

. Allow the trainee to attend training and to take examinations, whether in-

school or online;

. Require the trainee to keep his report book up to date and inspect such

books;
Ensure that the trainee is encouraged to develop his personality and that
he is protected from physical or moral danger;

. Entrust to the trainee such jobs as are related to the purpose of his train-

ing and are commensurate with his capabilities;

. Pay to the accredited educational institution/training centre the daily al-

lowance of the trainee;

Allow the trainee the necessary time off for his in-school training; and,
Perform such other obligations in accordance with the provisions of this
Act and other prevailing laws of the Philippines.

Sec. 16. Obligations of the Trainee. ~ A trainee shall exert every effort to acquire the

skills and knowledge necessary for him to achieve the purpose of his training. Towards this

end, the trainee shall.

a.
b.

Carefully perform the jobs entrusted to him as part of his training;
Take part in training programs for which he has been granted time off
under this Act;

. Follow the instruction given to him as part of his training by the training

officer or any other person entitled to give him such instructions;

. Observe rules of behavior in the training premises;
. Use tools, instruments, machines and other equipment with due care;


f. Not reveal any business or trade secrets that have come to his knowledge

in the course of his training;

g. Keep his record books up to date; and,

h. Perform such other obligations in the attainment of the objectives of this

Act.

Sec. 17. Memorandum of Agreements. — Prior to the commencement of any manpow-
er training, a memorandum of agreement (MOA) shall be signed by all parties which shall
stipulate the following, among others:

a) the training plan;

b) the nature and objective of the training;

c) the commencement and duration of the training period, including the total

number of in-plant/farm training hours;

d) the normal daily training hours;

) the trainee's allowance and the rate to be applied, which shall not be less

than seventy-five (75) per cent of the applicable minimum daily wage;

f) the rights and obligations of the parties concerned in addition to those

provided in Sections 14, 15 and 16;
g) the definition of the status of the trainee according to Section 13 of this
Act;

h) the conditions for the termination of the training agreement;

i) the performance, monitoring and evaluation system; and,

j) such other essential particulars as would mutually benefit all parties con-

cerned.

Sec. 18. Loan Programs for the Purchase of Blended Learning Tools and Equipment.

To achieve the objectives under Sec. 14 of this Act, concessional loan programs shall be
developed by appropriate Government Financial Institutions (GFls) for the purchase of
blended learning tools and equipment by Accredited Educational Institutions or Training
Centers, such as computers, laptops, tablets, and other ICT devices and equipment necessary
to conduct and access related trainings and learning materials.

Sec. 19. Incentives for the Trainees.

a. Every agricultural, industrial and business establishment undertaking
training, in accordance with the provisions of this Act, shall sign a life and/or acci-


dent 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.

b. Upon graduation, the students will be provided funding as start-up
capital for their farm business. Financial services and programs shall be made avail-
able to them as stipulated in Republic Act No. 10000 or the "The Agri-Agra Reform
Credit Act of 2009". Students should be able to avail of loans without the need for
collateral. A government guarantee fund shall be set aside for this purpose in case
of a default or failure to pay the debt: Provided, That a proof is presented that the
student suffers from financial hardships and is no longer able to pay his loan.

& The government shall also extend incentives to students for the pro-
duction and propagation of organic farm inputs by maximizing their use in all gov-
ernment and government-supported agricultural production, research and demon-
stration programs, as embodied in Republic Act No. 10068 or the "Organic Agricul-
ture Act of 2010".

Sec. 20. Incentives for Participating Establishments, ~ To encourage agricultural, in-
dustrial and business establishments to participate in the system, they shall be allowed to de-
duct from their taxable income the amount of one hundred and fifty per cent (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 per cent (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 incen-
tives under Republic Act No. 8525 or the "Adopt-a-School Act of 1998".

‘The Department of Finance shall issue the necessary rules and regulations to imple-
ment the provisions of this Section.

Sec. 21. Non-diminution of Incentives. ~ Nothing in this Act shall be construed to di-
minish or reduce any privilege already enjoyed by the parties concerned under existing laws,
decrees or executive orders.

Sec. 22. Other Exemption from Taxes and Duties. ~ Any donation, contribution, be-

quest, subsidy or financial aid which may be made for the operation of the system shall con-


stitute 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 qualifi-
cations that:

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

b) they should be actually, directly and exclusively used in connection with
the dual training system and any unauthorized use shall subject the ac-
credited dual training’ private educational institutions to payment of taxes
and duties thereon; and,

) they are not available locally in sufficient quantity of comparable quality,
and at 35 reasonable prices.

Provided, however, That taxes and duties pertaining to the importations of accredited

government and dual training educational institutions are deemed automatically appropriated.

‘The Department of Finance (DOF) shall accumulate the necessary rules and regula-
tions to implement the provisions of this section.

Sec. 23. Revolving Fund. — Any law, rule or regulation to the contrary notwithstand-
ing, the accredited dual training system educational institution/training center is hereby au-
thorized 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.

Sec. 24. /mplementing Rules and Regulations. ~ The CHED, DA, TESDA and DOF,
in coordination with other industries concerned, shall issue the necessary rules and regula-
tions for the effective implementation of this Act within a period of ninety (90) days after its
effectivity.

See. 25. Separability Clause. — If any part or provision of this Act is declared uncon-
stitutional or invalid, other parts or provisions thereof which are not affected thereby shall
continue to be in full force and effect.

Sec. 26. Repealing Clause. — All laws, decrees, executive orders, rules and regula-
tions or other issuances or parts thereof, inconsistent with this Act, are hereby repealed,
amended or modified accordingly


Sec. 27. Effectivity. - This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in two (2) newspapers of general circulation.
Approved,