Eighteenth Congress
First Regular Session

HOUSE BILL NO. 2182

Introduced by
REPRESENTATIVE LOREN B. LEGARDA

AN ACT CREATING THE DEPARTMENT OF TECHNICAL EDUCATION
TRAINING AND CERTIFICATION, PROVIDING FOR ITS POWERS, STRUCTURE
AND FOR OTHER PURPOSES
Explanatory Note

As the agency responsible for training and capacitating the country’s workers,
the Technical Education and Skills Education (TESDA) was established to
encourage the full participation of and for the mobilization of the industry, labor, local
government units and technical-vocational institutions in the skills development of
the country’s human resources.

Our country has a strong manufacturing scene and a growing information
technology (IT) and business processing outsourcing (BPO) industry, which fused
the country’s position as an economic zone. Some 200 IT companies are included in
the 365 ASEAN economic zones while many multinational corporations involved in
poultry, food processing, automotive, finance, and electronics manufacturing have
also started to expand in the country from 2016 to 2017".

In order to comply with the growing demand of labor resources, TESDA is
developing strategies on Technical Vocational Education and Training (TVET) for

https://www.tesda.gov.ph/Uploads/File/Planning2018/LMIR/LMIR%20Re%20Philippines%20Top%20Investme
1nt%20Destination_7.24.18_ FOR%20WEBSITE%20UPLOADING. pdf


global competitiveness and social equity. However, these strategies may not be
attained if TESDA’s organizational structure, its own manpower and ability to
produce higher quality of learning and training materials are still among the primary
hindrances that prevent the progress of TESDA.

This bill seeks to create a Department of Technical Education Training and
Certification, which will take the place and absorb the current TESDA. It is high time
to empower TESDA and enable the agency to fulfill its mandate as the leading
partner in the development of the Filipino workforce.

In lieu of the foregoing, immediate passage of this bill is earnestly sought.

= TORENLEGARDA


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Eighteenth Congress
First Regular Session

HOUSE BILL NO. 2182

Introduced by
REPRESENTATIVE LOREN B. LEGARDA

AN ACT CREATING THE DEPARTMENT OF TECHNICAL EDUCATION
TRAINING AND CERTIFICATION, PROVIDING FOR ITS POWERS, STRUCTURE
AND FOR OTHER PURPOSES
Be it enacted in the Senate rind House of Representatives of the Philippines in

Congress assembled:
SECTION 1. Title. This Act shall be known as the "Technical Education, Training
and Certification Act of 2019".
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to
provide relevant, accessible, high quality and efficient technical education, training
and Certification in support of the development of high quality Filipino manpower
responsive to and in accordance with Philippine development goals and priorities.
The State shall encourage active participation of various concerned sectors,

public as well as private tech-voc institutions particularly private enterprises, being
direct participants in and immediate beneficiaries of a technically educated and
trained workforce, in providing technical education services and_ training
opportunities.
SEC. 3. Statement of Goals and Objectives. - It is the goal and objective of this
Act to:

+ Promote and strengthen the quality of technical education and training

programs to attain global competitiveness;


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Focus technical education and training and certification on meeting the
changing demands for quality manpower particularly in support of the
industrialization thrust of the country;

Encourage critical and creative thinking by disseminating the scientific and
technical knowledge base of manpower development programs;

Recognize and encourage the complementary roles of public and private
institutions in technical education and skills development and training
systems;

inculcate desirable values through the development of moral character with
emphasis on work ethic, self-discipline, self-reliance and nationalism.

Strongly support the implementation of the Philippine Qualification Framework
(E.0. 83), the Ladderized Education Program (R.A.10647) and the Dual
Technical Training System (R.A. 7686).

Maximize returns to the country’s investment in technical education and
training through an efficient graduates’ employment facilitation program within
the framework of the national employment service network system;

Help in the poverty alleviation efforts by providing the marginalized and
vulnerable segments of the country’s population access to income generating

Technical Education and Training opportunities;

SEC. 4. Definition of Terms. - As used in this Act:

"Skill" shall mean the acquired and practiced ability to carry out a task or job;
“Skills Development’ shall mean the process through which learners and
workers are systematically provided with learning opportunities to acquire or
upgrade, or both, their ability, knowledge and behavior pattern required as
qualifications for a job or range of jobs in a given occupational area;
Technical Education shall refer to the education process designed at upper
secondary and lower tertiary levels, aligned with the levels of the PQF, with


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the pathways to higher education through the credit transfer system based on
leaming outcomes aimed at preparing technicians, technologists,
paraprofessionals and other categories of workers and/or entrepreneurs by
providing them with a broad range of general education, theoretical, scientific
and technological studies, and related job skills training;

"Trade" shall mean any group of interrelated jobs or any occupation which is
traditionally or officially recognized as craft or artisan in nature requiring
specific qualifications that can be acquired through work experience and/or
training;

"Middle-Level Manpower" refers to those:

4. who have acquired practical skills and knowledge through formal or
non-formal education and training equivalent to at least a secondary
education but preferably at post-secondary education with a
corresponding degree of diploma; or

2. skilled workers who have become highly competent in their trade or
craft as attested by industry;

“Private Enterprises" refers to an economic system under which property of
all kinds can be privately owned and in which individuals, alone or in
association with another, can embark on a business activity. This includes
industrial, agricultural, or agro-industrial establishments engaged in the
production, manufacturing, processing, repacking or assembly of goods
including service-oriented enterprises;

“Training” is teaching or developing oneself or others, any skills and
knowledge that relate to specific useful competencies;

“Trainorsitrainers" shall mean persons who provide training to trainees

aimed at developing the latter's capacities for imparting attitudes, knowledge,


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skills and behavior patters required for specific jobs, tasks, occupations or
group of related occupations.

"Trainees" shall mean persons who are participants in a vocational,
administrative or technical training program for the purpose of acquiring and
developing job-related skills;

“Apprenticeship” training within employment with compulsory related
theoretical instruction involving a contract between an apprentice and an
employer on an approved apprenticeable occupation;

“Apprentice” is a person undergoing training for an approved apprenticeable
occupation during an apprenticeship agreement;

“Apprenticeship Agreement" is a contract wherein a prospective employer
binds himself to train the apprentice who in turn accepts the terms of training
for a recognized apprenticeable occupation emphasizing the rights, duties
and responsibilities of each party;

"Apprenticeable Occupation" is an occupation officially endorsed by a
tripartite body and approved for apprenticeable by the Authority;

"Learners" refers to persons hired as trainees in semi-skilled and other
industrial occupations, which are non-apprenticeable. Learnership programs
must be approved by the Authority;

“User-Led" or "Market-Driven Strategy" refers to a strategy which promotes
strengthened linkages between educationalfraining institutions and industry
to ensure that appropriate skills and knowledge are provided by the
educational system;

“Dual System/Training" refers to a delivery system of quality technical and
vocational education which requires training to be carried out alternately in
two venues: in-school and in the production plant. In- school training provides

the trainee the theoretical foundation, basic training, guidance and human


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formation, while in-plant training develops his skills and proficiency in actual
work conditions as it continues to inculcate personal discipline and work
values;

"Levy Grant System" refers to a legal contribution from participating
employers who would be beneficiaries of the program (often as a percentage

of the payroll), which is subsequently turned over or rebated to enterprises

offering employee-training programs.

Leading Technology Centers- refers to public, private or jointly operated
centers by government and private entities where advanced or latest training
technologies are used for technical education and training in priority
qualification areas;

Philippine Qualifications Framework - a national policy describing the
levels of educational qualifications and sets the standards for qualification
outcomes. It is a quality assured national system for the development,
recognition and award of qualifications based on standards of knowledge,
skills and values acquired in different ways and methods by learners and
workers of a certain country. It is likewise competency-based and labor
market driven assessment- based qualification recognition.

Ladderization - is a new system of education in the Philippines that allows
learners to progress between Technical Vocational Education and Training
(TVET) and College, and vice-versa. Ladderized Education opens
opportunities for career and educational advancement to students and

workers.

SEC. 5. Creation of Department of Technical Education Training and
Certification. - To implement the policy declared in this Act, there is hereby created
a Department of Technical Education and Training (DepTeTC), herein referred to as


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the Department which shall replace and absorb the TECHNICAL EDUCATION AND

SKILLS DEVELOPMENT AUTHORITY (TESDA).

SEC. 6. Mandate- The Department shall be the primary policy, planning,

coordinating, implementing and administrative entity of the Executive Branch of the

government that will plan develop and promote the technical education, training and

certification agenda.

SEC. 7. Powers and Functions - The Department shall exercise the following

powers and functions:

1. The Department shall primarily be responsible for formulating, continuing,

coordinated and fully integrated technical education, training and certification

policies, plans and programs taking into consideration the following:

The State policy declared herein of giving new direction and thrusts to
efforts in developing the quality of Filipino human resource through
technical education and skills development;

The implementation of the above-mentioned policy requires the
coordination and operation of policies, plans, and programs of different
concerned sectors of Philippine society;

Equal participation of representatives of industry groups, trade
associations, employers, workers and government shall be made the rule
in order to ensure that urgent needs and recommendations are readily
addressed; and

Improved linkages between industry, labor and government and the
communities shall be given priority in the formulation of any national-level
plan and TETC delivery;

The successful implementation of programs shall not only fill in the needs
of the economy for middle level manpower but likewise lead to poverty

alleviation;


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The Department, shall have the following powers:

1. Promulgate, after due consultation with industry groups, trade associations,
employers, workers, policies, plans, programs and guidelines as may be
necessary for the effective implementation of this Act;

2. Organize and constitute various standing committees, subsidiary groups, or
technical working groups for efficient integration, coordination and monitoring
technical education and skills development programs at the national, regional,
and local levels;

3. Enter into, make, execute, perform and carryout domestic and foreign
contracts subject to existing laws, rules and regulations.

4. Restructure the entire sub-sector consisting of all institutions and programs
involved in the promotion and development of middle-level manpower through
upgrading, merger and/or phase-out following a user-led strategy;

5. Approve training standards and assessment packages as established and
conducted by private industries;

6. Establish and administer a system of accreditation of both public and private
institutions;

7. Establish, develop and support institutions’ trainors' training and/or programs;

8. Exact reasonable fees and charges for such tests and trainings conducted
and retain such earnings for its own use, subject to guidelines promulgated by
the Department;

9. Allocate resources for the programs and subjects it shall undertake pursuant
to approved National Technical Education and Training Plan;

10.Determine and approve systematic funding schemes such as the Levy and
Grant scheme for technical education and training purposes;

11.Create, when deemed necessary, an Advisory Committee which shall provide

expert and technical advice to the Secretary to be chosen from the academe


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and the private sector: Provided, That in case the Advisory Committee is
created, the Department is hereby authorized to set aside a portion of its
appropriation for its operation; and
12.Perform such other duties and functions necessary to carry out the provisions
of this Act consistent with the purposes of the creation of DepTeTC.
‘SEC. 8. Power to Review and Recommend Action. - The Department shall review
and recommend action to concemed authorities on proposed technical assistance
Programs and grants-in-aid for technical education or Training, or both, including
those which may be entered into between the Goverment of the Philippines and
other nations, including intemational and foreign organizations, both here and
abroad.
SEC. 9. Composition. - The Department shall be headed by a Secretary composed
of the Office of the Secretary, the Offices of the Undersecretaries and the Assistant
Secretaries.
SEC. 10. — Secretary of Technical Education, Training and Certification. The
Secretary shall be appointed by the President, subject to the confirmation of the
Commission on Appointments. The Secretary shall have the following functions:
a) Provide executive direction and supervision over the entire operations of the
Department and its attached agencies;
b) Establish policies standards for the effective and efficient delivery of the
Department services, in line with the program of government;
c) Review and approve requests for financial and manpower resources of All
operating units of the Department;
d) Designate and appoint officers and employees of the Department, excluding
the Undersecretaries, Assistant Secretaries, and Regional Directors, in

accordance with the civil service laws, rules and regulations;


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e) Exercise disciplinary powers over officers and employees of the Department
in accordance with law, including their investigation and the designation of a
committee or officer to conduct such investigation:

f) Prepare and submit to the President through the Department of Budget and
Management (DBM) an estimate of the necessary expenditures of the
Department during the next fiscal year, on the basis of the reports and
estimates submitted by bureaus and offices under him/her;

g) Advise the President on the promulgation of executive and administrative
orders and formulation of regulatory and legislative proposals on matters
pertaining to Technical Education, Training and Certification development.

h)

Formulate such rules and regulations and exercise such other powers as may
be required to implement the objectives of this Act: and

i) Perform such other tasks as may be provided by law or assigned by the

President.

SEC. 11. Undersecretaries. - The Secretary shall be assisted by four (4)
undersecretaries, who shall be appointed by the President upon the
recommendation of the Secretary.
SEC. 12. Assistant Secretaries. - The Secretary shall be assisted by four (4)
assistant secretaries who shall be appointed by the President upon the
recommendation of the Secretary.
SEC. 13. Bureaus and Services and Personnel. - The Department in addition to
the offices of the Secretary, Undersecretaries and Assistant Secretaries shall be
composed of the following Bureaus/Services to be headed by an Executive Director
to be appointed by the President upon the recommendation of the Secretary. The
Executive Directors shall have the rank and emoluments of a Director IV.

Planning Bureau (P.B.)


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1. Designs and establishes planning processes and methodologies which will

particularly enhance the efficiency of resource allocation decisions within the
technical education and Training sector;

2. Orchestrates the formulation of the National Technical Education and Training
Plan/Sectoral Plan/Regional/Provincial and maintains annual periodic review
and updating of the plans;

3. Orchestrates legislative liaisoning and coordination;

4. Maintains existing and establishes new frameworks to optimize the roles of
the sub-national TET Committees;

5. Conducts fora, researches, studies and develops labor and education and
training market information and knowledge management systems for effective
and efficient planning and policy making within the sector;

6. Prepares and issues Labor Market Intelligence Reports (LMIR) on a regular
basis;

7. Conducts Impact Evaluation Studies (IES) of Technical Education Training
and Certification programs;

8. Initiates and mobilizes external TETC financing from local and international
bodies in support of the broad investments and development programs under
the NTETP and the corporate plan;

9. Designs and develops special projects for foreign assistance;

Partnerships and Employment Facilitation Bureau (PEFB)

1. Establishes and maintains effective and efficient institutional arrangements
with partners and stakeholders to provide direct participation in the various
functions of the Department and access to TETC programs and services;

2. Develops and implements placement schemes designed for the effective

utilization of TET graduates either through wage and self employment using


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partnership and linkages with various employers and industries within the
framework of the national employment service network;

3. Provides technical assistance and training support to the network of
DepTETC employment facilitation centers all over the Country;

4. Establishes and maintains linkages with industry groups, employers, workers,
academe, civil society organizations/NGOs, NGAs, LGUs, basic sectors and
national and international networks and organizations related to TE and T;

5. Conducts studies on Public-Private Partnerships (PPP) and similar
arrangements in aid of policy making;

6. Engages partners/stakeholders in the identification and prioritization of the
skills needs of the basic sectors for skills training and employment
opportunities;

7. Develops and administer systems and procedures in the monitoring and
evaluation of programs related to partnerships, linkages and placement
services;

8. Performs such other functions as may be authorized.

Incentives and Scholarship Bureau

1. Develops and implements incentive schemes and packages to encourage the
participation of employers and workers in technical education and Training in
industry;

2. Develops and implements scholarship and grant packages designed to
provide access to the Department's clientele particularly the unemployed,
underemployed, the working poor and the marginalized;

3. Develops and administer systems and procedures in the monitoring and
evaluation of programs related to incentive and scholarship administration;

4. Performs such other functions as may be authorized.

National Institute for Technical Education and Training (NITET)


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1. Recommends policies and guidelines for the maintenance and enhancement
of the efficiency and effectiveness in the management and operations of the
TETC delivery in schools, centers, enterprises and communities within
acceptable standards set;

2. Serves as the technology research and development arm of the government
in the field of TET;

3. Develops, orchestrates the implementation of continuing development
programs for trainers, teachers and instructors, partners/stakeholders in the
TET sector;

4. Develops and orchestrates the implementation of a national career guidance
program and system;

5. Conducts studies and researches, formulates policies and guidelines for the
optimum/sustainable utilization of existing specialized _ training
centers/institutions (e.g. KorPhil, TTCTCE, TWC, LSI and other centers of
technical excellence;

6. Identifies appropriate venues, from the network of public and private TET
providers, as laboratory and pilot-testing/incubation sites in the development
of training regulation, competency standards, assessment tools, curricula,
learning materials, mock-ups and simulators;

7. Promote and conduct an annual national skills competition and handles the
participation of the country in international skills tilts;

8. Performs such other functions as may be authorized.

Qualification and Standards Bureau (QSB)

1. Conducts research and development on various occupational areas in order
to recommend policies, rules and regulations for effective and efficient
competency standardization, assessment and certification system in the

country;


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7.

. Establishes and implements a system of accrediting experts from private

enterprises, group of workers’ associations and public institutions for the

development/updating of competency standards, curriculum exemplars;

. In collaboration with industry bodies, develops and establishes a national

system of competency standardization and development for TET in the

country;

. Facilitates the development, validation and evaluation of competency

standards in identified appropriate venues from the network of public and

private TET providers;

. Maintains the Philippine TVET Qualifications Framework (PTQF) as part of

the Philippine Qualifications Framework (PQF);

. Responsible for international benchmarking and comparability of standards

with other economies/countries; and,

Performs such other powers and functions as may be authorized.

Accreditation and Certification Bureau (ACB)

1.

Develops, maintains and manages the national assessment and certification

Program, systems and procedures;

. Establishes and maintains the implementation of a quality-assured system of

accrediting trainers, assessors and assessment centers in partnership with
industries, training centers/institutions;
Establishes and maintains a system of registering, accrediting TET

programs/providers in the schools, centers, enterprises and communities;

. Undertakes compliance review and rating system of TESD programs

implemented by various TVIs;

. Keeps custody of pertinent assessment and certification records and

maintains a registry of Certified Workers, Trainers, and Accredited

Competency Assessors and Accredited Competency Assessment Centers


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5.
6.

Maintains a compendium of registered TESD programs
Conduct researches/studies to ensure quality delivery and implementation of

assessment and certification and program registration

. Develops mechanisms to continuously ensure integrity of the assessment

and certification and program registration; and
Performs such other functions as may be authorized.

trative Service (AS)

. Provides overall policies, systems, programs and guidelines in the area of

human resource management and development, procurement management ,
legal management, building and facilities maintenance, records management

and cash management;

. Establishes a monitoring and reporting system on administrative services;

. Orchestrates the implementation, review and redevelopment of HRD Plan in

‘support of the Corporate Plan and the NTTDP;

. Leads in the establishment and implementation of integrated HR systems;

Provides administrative, general and legal services; and

Performs such other functions as may be authorized.

Financial and Management Service (FMS)

1.

4.

Orchestrates and supports the implementation of the agency quality

management systems (QMS);

. Provides overall policies, systems, programs and guidelines on the

management and utilization of Department's financial resources;

. Establishes a monitoring and reporting system on the management and

utilization of Department's financial resources; and

Performs such other functions as maybe authorized.

Internal Control and Quality Management Service


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1

. Develops and implements internal performance and process standards to

ensure personnel and organizational efficiency and effectiveness;

2. Monitors and ensure the maintenance of the ISO status of the Department

and/or its sub divisions;

3. Performs other functions as maybe authorized;

Section 14. Regional Offic

. - The Regional Offices shall be headed by Regional

Directors with the rank and emoluments of Director IV to be appointed by the

Presi

jident. The Regional Offices shall be under the direct control of the Secretary

and shall have the following functions:

1.

6.

SEC.

Direct implementation of TETC programs, projects and related activities in the

region;

. Develop and recommend TETC programs for local level implementation
within set policies;

. Deploy policies to stakeholders;

.. Manage TETC resources in the region;

Plan and implement policy inputs; and

Perform other functions as may be authorized.

. 15. The Provincial/ District Offices. - The Provincial/ District Offices shall be

headed by Provincial/District Directors, who shall have the rank and emoluments of

a Director Ill.

The Provincial Offices shall have the following functions:

1.
2.

Serves as secretariat to the Provincial TET Committees;
Provides technical assistance to the local government units (LGUs) for
effective supervision, coordination, integration of all TET programs within their

localities;

3. Reviews and recommends priority TET programs within their localities; and

4. Performs such other functions as may be authorized.


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Sec. 16. Schools and Centers. The Technical Education and Training delivery of
the Department composed of leading technology centers, demonstration as well as
regular Institutions shall have the following functions:

1. Provide demonstration of leading training technology or regular TET programs
relevant to the needs of the economy as well as specific groups considered
as marginalized and/or vulnerable in accordance with the national TETC
agenda.

2. Conducts applied research and development programs and provides
extension services in coordination with ROs/POs;

3. Conducts outreach programs in coordination with ROs/POs;

4. Initiates resource and income-generation programs; and

5. Performs such other functions as may be authorized.

SEC. 17. Compliance with the Salary Standardization Law. - The
compensation and emoluments of the officials and employees of the Department
shall be in accordance with the salary standardization law and other applicable laws
under the national compensation and classification plan.

SEC. 18. Consultants and Technical Assistance, Publication and Research. - In
pursuing its objectives, the Department is hereby authorized to set aside a portion of
its appropriation for the hiring of services of qualified consultants, and private
organizations for research work and publication in the field of technical education
and skills development. It shall avail itself of the services of other agencies of the
Government as may be required.

SEC. 19. Formulation of a Comprehensive Development Plan for Middle-Level
Manpower. - The Authority shall formulate a comprehensive development plan for
middle-level manpower based on a national employment plan or policies for the
optimum allocation, development and utilization of skilled workers for employment

entrepreneurship and technology development for economic and social growth. This


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plan shall be updated periodically and submitted to the President of the Philippines
for approval. Thereafter, it shall be the plan for the technical education, Training and
Certification for the entire country within the framework of the National Development
Plan. The Department shall direct through its Offices to call on public agencies, the
private sector and the academe to assist in this effort. The comprehensive plan shall
provide for a reformed industry-based training program including apprenticeship,
dual training system and other similar schemes intended to:
+ Promote maximum protection and welfare of the worker-trainee;
+ Improve the quality and relevance and social accountability of technical
education and Training;
+ Accelerate the employment-generation effort of the government; and
+ Expand the range of opportunities for upward social mobility of the school-
going population beyond the traditional higher levels of formal education. All
government and non-government agencies receiving financial and technical
assistance from the government shall be required to formulate their respective
annual agency technical education and skills development plan in line with the
national technical education and training plan. The budget to support such
plans shall be subject to review and endorsement by the Department to the
Department of Budget and Management. The Department shall evaluate the
efficiency and effectiveness of agencies skills development program and
schemes to make them conform with the quantitative and qualitative
objectives of the national technical education and skills development plan.
SEC. 20. Technical Education and Training Committees. - The Department shall
establish Technical Education and Training Committees at the regional and local
levels to coordinate and monitor the delivery of all training activities by the public and
private sectors. These committees shall likewise serve as the Technical Education

and Training Development Committees of the Regional and Local Development


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Councils. The compositions of the Technical Education and Training Committees
shall be determined by the Secretary of the DepTeTC.

SEC. 21. Apprenticeship Program. - The Department shall promote apprenticeship
as a major mode of training rather than an employment arrangement and shall see
to it that it is not subject to abuse by unscrupulous entities;

SEC. 22. Technical Education and Training Centers. - The Department shall
establish and/or cause the establishment of a network of national, regional and local
skills training centers for the purpose of promoting skills development. This network
shall include leading training technology centers, skills training centers in vocational
and technical schools, technical institutes, polytechnic colleges, and all other duly
accredited public and private dual system educational institutions. The technical
education and Training centers shall be administered and operated under such rules
and regulations as may be established by the Department in accordance with the
National Technical Education and Training Plan.

SEC. 23. Establishment and Administration of National Training Standards. -
There shall be national training standards to be established by Department-
accredited industry committees. The Department shall develop and implement a
certification and accreditation program in which private industry groups
and trade associations are accredited to conduct approved assessment packages,
and the local government units to promote such assessment in their respective
areas in accordance with the guidelines to be set by the Department. The Secretary
shall determine the occupational trades for mandatory certification. All certificates
relating to the national training standards and certification system shall be issued by
the Department through its Regional and Provincial Offices. In consonance with the
Philippine Qualification Framework (PQF), the Department shall closely collaborate
with the Professional Regulation Commission (PRC) as regards to the assessment

of technicians, master craftsman and technologists.


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SEC. 25. Administration of Training Programs. - The Authority shall design and
administer training programs and schemes the will develop the capabilities of public
and private institutions to provide quality and cost-effective technical education and
skills development and related opportunities. Such training programs and schemes
shall include teacher's trainors' training, skills training for entrepreneur development
and technology development, cost-effective training in occupational trades and
related fields of employment, and value development as an integral component of
all skills training programs.

SEC. 26. Assistance to Employers and Organizations. - The Authority shall assist
any employer or organization engaged in skills training schemes designed to attain
its objectives under rules and regulations which the Authority shall establish for this
purpose.

SEC. 27. Accreditation and Regulation of Technical Education and Training

Programs. All technical education and training programs shall be duly accredited by

the Department before i

is offered to the public by any public, private entity or non
government organization. Non-compliance with the accreditation requirements of the
Department shall be form part of the bases for the possible suspension or
cancellation of the entities’ license to operate issued by competent authorities.

SEC. 28. Coordination of All Skil

Training Schemes. - In order to integrate the

national skills development efforts, all technical education and skills training
schemes as provided for in this Act shall be coordinated with the Department
particularly those having to do with the setting of trade skills standards. For this
purpose, existing technical education and skills training programs in the Government
and in the private sector, specifically those wholly or partly financed with government
funds, shall be reported to the Department which shall assess and evaluate such

programs to ensure their efficiency and effectiveness. Non-compliance with the


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above mentioned reportorial requirements could disqualify erring entities for any
form of government assistance in field technical education and training.

SEC. 29. Enterprise Based Partnerships and Linkages. - The Authority shall
establish effective and efficient institutional arrangements with industry bodies and
such other aggrupation or associations to provide direct participation of employers
and workers in the design and implementation of skills development schemes, trade
skills standardization and certification and such other functions in the fulfillment of
the Department's objectives.

SEC. 30. Inclusive Training Opportunities. - The Authority shall likewise design
and implement a delivery system for community based technical education and
training opportunities for the marginalized and disadvantaged sectors of the
population, providing them with new tools of wealth creation and with the capability
to take on higher value-added gainful activities and to share equitably in productivity
gains eventually leading to poverty alleviation and reduction;

SEC. 31. Skills Olympics. - To promote quality skills development in the country
and with the view of participating in international skills competitions, the Department,
with the active participation of private industries, shall organize and conduct annual
National Skills Olympics. The Department shall promulgate the necessary rules and
guidelines for the effective and efficient conduct of Annual National Skills Olympics
and for the country's participation in international skills Olympics.

SEC. 32. The TET Development Fund.- A Technical Education and Training
Development Fund is hereby established, to be managed/administered by the
Department, the income from which shall be utilized exclusively in awarding of
grants and providing assistance to training institutions, industries, local government
units for upgrading their capabilities and to develop and implement training and
training-related activities. The contribution to the fund shall be the following:

+ Aone-time lump sum appropriation from the National Government;


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+ An annual contribution from the Overseas Workers Welfare Administration
Fund, the amount of which should be part of the study on financing in
conjunction with letter (D) of Section 34;

+ Donations, grants, endowments, and other bequests or gifts, and any other
income generated by the Department.

The Secretary shall be the administrator of the fund, and as such, shall formulate
the necessary implementing guidelines for the management of the fund, subject to
the following:

a) Unless otherwise stipulated by the private donor, only earnings of private
contributions shall be used; and

b) No part of the seed capital of the fund, including earnings, thereof, shall be
used to underwrite expenses for administration.

The Secretary shall appoint a reputable government-accredited investment
institution as fund manager, subject to existing government regulations.
SEC 33. Technical Assistance, Incentives and Scholarship Grants. - The
Department shall adopt a system of providing technical assistance, incentives and
scholarship grants which shall be designed to encourage public and private sector
and clientele participation in technical education and training activities along the
priorities identified by the National Development Plan/Agenda.

SEC 34, Placement Centers. There shall be established a network of placement
centers or PLACERS in all the Provincial/ District Offices to cater specifically to the
job placement of TET institutions. These Centers shall be financed and administered
by the Department but will form part of the National Employment Service Network of
the DOLE;

SEC 35. Budget. - The amount necessary to finance the initial implementation of

this Act shall be charged against the existing appropriations of the TESDA.


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Thereafter, such funds as may be necessary for the continued implementation of this
Act shall be included in the annual General Appropriations Act.

SEC 36. Transitory Provisions. - The personnel of the TESDA shall, in a holdover
capacity, continue to perform their respective duties and responsibilities and receive
their corresponding salaries and benefits until such time when the organizational
structure and staffing pattern of the Department shall have been approved: Provided,
That the preparation and approval of the said new organizational structure and
staffing pattern shall, as far as practicable, respect and ensure the security of tenure
and seniority rights affected government employees. Those personnel whose
positions are not included in the new staffing pattern or who are not reappointed or
who choose to be separated as a result of the reorganization shall be paid their
‘separation or retirement benefits under existing laws.

SEC. 37.Implementing Rules and Guidelines. - The Department shall issue,
within a period of ninety (90) days after the effectivity of this Act, the rules and
regulations for the effective implementation of this Act. The Department shall submit
to concerned Committees of both Houses of Congress copies of the implementing
tules and guidelines within (30) days after its promulgation. Any violation of this
Section shall render the official/s concerned 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.

SEC. 38. Repealing Clause. - All laws, presidential decrees, executive orders,
presidential proclamations, rules and regulations or part thereof contrary to or
inconsistent with this Act are hereby repealed or modified accordingly.

SEC. 39. Separability Clause.- If any provision of this Act is declared
unconstitutional, the same shall not affect the validity and effectivity of the other

provisions hereof.


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SEC. 40. Effectivity.- This Act shall take effect fifteen (15) days after its complete

publication in two (2) newspapers of general circulation.

Approved,