THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
5 FEB 28 ? 7 : j  
First Regular Session 
1 
SENATE 
S. No. 
1935 
Introduced by Senator Richard J. Gordon 
EXPLANATORY NOTE 
The country is besieged by a multitude of problems, but none as 
tremendous and far-reaching as the critical condition of our educational 
system today. The substandard quality of our teachers, the dismal performance 
of our students, and the staggering shortage in classrooms and educational 
materials are roadblocks that keep us from moving forward. Thus, keeping in 
mind that it is the avowed policy of the State, embodied in Section 17, Article II 
of the Constitution, to "give priority to education, science, and technology," it is 
in pursuit of this mandate that we must focus on improving the system of our 
schools and the education of our children for the future. 
First, our teachers - entrusted with the primary responsibility for the 
education of our children - are painfully inadequate in both quality and 
quantity. An alarming 81% of the country's teachers failed the English 
Proficiency Test, an exam that measures their reading comprehension, verbal 
and oral skills. They are educators who cannot educate. They need to be 
trained and re-trained, year in and year out, and be kept up to date on 
developments in their respective fields - particularly information technology - 
so that excellence eventually becomes the norm. 
Second, our students - the hope and future of our nation - are 
undernourished and undereducated. They are faring miserably in English, Math 
and Science. A miniscule 0.64% of incoming high school students obtained a 
mark of 75% or higher in the 2004 High School Readiness Test. The country 
ranks 4 3 r d  out of 45 countries in math and science proficiency. Considering 
that the nation's children must contend with poverty, learn their lessons on an 
empty stomach, attend class under an acacia tree, and listen to teachers 
whose competencies leave much to be desired, their poor performance is 
unsurprising, but more importantly, unacceptable and deserving of urgent 
remedial attention. 
Finally, our educational resources are sorely lacking. As of 2004, in 
order to meet the target classroom-student ratio of 1:45, the country needs 
32.315 Billion pesos to construct an additional 55,145 classrooms, hire 
20,874 teachers and purchase 26.85 million textbooks. Given the looming 
fiscal crisis, we therefore need to adopt innovative means to augment the 


budget of the education sector, to ensure that they are equipped to provide the 
necessary services, which we as a nation, and as a matter of national policy, 
have identified as crucial to national development. 
We MUST act. This bill seeks to address the foregoing needs, by ushering 
in a new era for education through the creation of the Philippine Education 
Rehabilitation Corporation, a government corporation whose mission is to 
bridge the gap between the above-mentioned educational demands and the 
nation's meager supply. And anchored on the principle of short-term sacrifice 
for long-term gain, this bill seeds to tap the already existing text-messaging 
phenomenon as a source of funds earmarked solely for education - one of the 
most basic needs of our people - for a limited term of only 5 years, to fund the 
most urgent revitalization of our education sector. 
. 
' 
Given these pressing reasons, the prompt passage of this law is 
earnestly sought. 
/Rlc- 
Senator 


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THIRTEENTH CONGRESS OF THE REPUBLIC 
1 
OF THE PHILIPPINES 
1 
5 
FER28  PI:!^ 
First Regular Session 
1 
,-- 
SENATE 
S. €3. No. 
I935 
Introduced by Senator Richard J. Gordon 
AN ACT 
CREATING THE PHILIPPINE EDUCATION REHABILITATION CORPORATION, 
ESTABLISHING THE SPECIAL EDUCATION REVITALIZATION FUND, AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the “Education 
Revitalization Act.” 
Sec. 2. Declaration of Policy. - It is hereby declared the policy of the 
State to give priority to education by responding to the overriding need for 
nationwide educational rehabilitation and revitalization, through the creation of 
an independent body dedicated to addressing the educational gaps, 
concretizing the country’s education programs and plans, and ensuring the 
proper administration and use of funds earmarked solely for education. 
The State further recognizes that education is the key to conquering 
poverty, that an educated public is crucial to the long-term development of the 
nation, and that it is imperative that we remove the enormous disparities with 
our foreign counterparts with respect to educational access and achievement 
by constructing additional school buildings or classrooms, augmenting the 
training of our teachers, and procuring all other educational materials 
necessary to improving the quality of education. 
Sec. 3. Philippine Education Rehabilitation Corporation. - There is 
hereby created a body corporate to be known as the Philippine Education 
Rehabilitation Corporation (hereinafter referred to as the “Corporation”) .to 
carry out the purposes of this Act. The Corporation shall be an independent 
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government instrumentality attached to the Department of Education for 


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administrative purposes only. The Corporation shall exist for a limited term of 
five (5) years, or only until such time that the Education Revitalization Plan in 
Section 6 of this Act has been carried out. 
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Sec. 4. Board of Directors. The powers of the Corporation shall be vested 
in and exercised by a Board of Directors, composed of a Chairperson and six 
(6) members from the private and public sectors, as follows: one (1) 
representative from the business sector, two (2) representatives from the 
education sector, one (1) representative from the construction industry, and in 
an ex-officio capacity, the Secretary of the Department of Education and the 
Secretary of the Department of Science and Technology; provided, that the 
Chairperson and members of the Board of Directors shall be persons of proven 
integrity, independence, and administrative proficiency, and fully committed to 
the objectives of this Act. 
Such amount as may be necessary for the initial organization and/or 
operational expenses of the Corporation shall be set aside from the special 
fund herein created; provided, such amount shall not exceed one percent (1%) 
of the Fund. 
Sec. 5. 
Powers and Functions. -The Corporation shall exercise the 
following powers and functions: 
(1) To control, administer, and manage the Fund in accordance with this 
Act; 
(2) To acquire, manage and hold such real and personal property as may 
be necessary to carry out the purposes and objectives of this Act; 
(3) To enter into, make, perform and carry out contracts of every class, 
kind and description which are necessary to the realization of its 
purposes with any person, firm or corporation, private or public; 
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(4) To apply for, receive and accept grants and donations and other 
conveyances by gratuitous title, including funds, materials, equipment 
&hd services needed to accomplish its objectives under this Act: 
(5) To construct, acquire, operate or maintain on its own or through 
contract, build-operate-transfer scheme or joint-venture, the required 
utilities and infrastructure necessary for the accompliShment df the 


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objectives of this act, including but not limited to schools, classrooms, 
and teacher-training camps, in conformity with existing applicable laws; 
(6) To adopt, alter and use a corporate seal; to contract, lease, sell, 
dispose, acquire and own properties; to sue and be sued in order to carry 
out its duties and functions as provided for in the Act; and to exercise the 
power of eminent domain for public use and public purpose; 
(7), To call upon and coordinate with other government and non- 
form; 
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institutions and agencies for assistance in any 
regulations and undertake any and all 
Plan. - The Corporation shall, within 
to implement this Act. 
three (3) months ffom the effectivity of this Act adopt and immediately cause to 
be implemented a five-year Education Revitalization Plan which shall specify 
the projects to be completed by the Corporation every year in accordance with 
target areas identified by the Department of Education, such as but not limited 
to the construction of classrooms, new or improved teacher-training programs, 
and the acquisition of educational materials. The Plan shall be subject to 
annual review by the Board of Directors. 
Sec. 7. Special Education Revitalization Fund. - A Special Education 
Revitalization Fund (the “Fund”) is hereby established, earmarked solely and to 
be used exclusively for the purposes stated herein. 
For the purposes of this Act, there shall be levied, assessed and 
collected on all local mobile phone text messages a tax of one peso (P 1.00) 
per message sent, for a limited period of five (5) years from the effectivity of 
this Act. All proceeds from the tax shall accrue exclusively to the Fund. 
Government corporations are also hereby authorized to give grants to the 
Fund. All amounts and proceeds from donations and other conveyances 
including funds, materials, propetty and services, by gratuitous title shall also 
accrue exclusively to the Fund. 
With the exception of the amount set aside for the initial organization 
and/or operational expenses of the Corporation under section 4, all amounts 
qccyuipg tq the Fund shall be earmarked solely and used exclusively for the 


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construction and/or repair of school buildings, facilities, classrooms and 
equipment; hiring and training or re-training of teachers; implementation of in- 
school health and nutrition or feeding programs; and the purchase of books or 
other educational materials. No money shall be released without any identified 
program and/or project, nor shall it be used to pay obligations incurred before 
the approval of this Act. 
At no time shall any portion of the Fund be used to augment 
maintenance and other operating expenses of any other national government 
agency, government owned or controlled corporation, local government units or 
their subdivisions. 
Sec. 8. Report to Congress. - The Corporation shall submit to the 
Department of Education and to Congress a detailed quarterly report on the 
funds allocated, indicating the amount released, obligated and disbursed 
under this Act, including but not limited to funds for the construction or repair 
and reconstruction of infrastructure projects, the list of contractors and 
projects being financed, and the accomplishments for the expended 
appropriation, including the percentage of completion. 
The Corporation shall also submit as part of the quarterly report a list of 
all donors and the nature of their donations. 
The Corporation shall cause to be disseminated in the community the list 
of beneficiaries and contractors mentioned above. 
Sec. 9. Congressional Oversight Committee. - There is hereby created a 
Congressional Oversight Committee, which shall be composed of three (3) 
representatives each from the Senate and House of Representatives, to be 
appointed by the Senate President and the Speaker of the House of 
Representatives, to monitor the implementation of this Act. The Committee 
shall conduct an annual review of this Act in aid of legislation. 
Sec. 10. Repealing Clause. - All laws, decrees, orders, rules and 
regulations or other issuances or parts thereof inconsistent with the provisions 
of this Act are hereby repealed or modified accordingly. 
Sec. 11. Separability Clause. - If any portion or provision of this Act is 
declared unconstitutional, the remainder of this Act or any provisions not 
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affected thereby shall remain in force and effect. 


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Approved, 
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Sec. 12. Effectivity. - This Act shall take effect after fifteen (15) days 
following the completion of its publication either in the Official Gazette or in a 
newspaper of general circulation in the Philippines. 
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