Republic of the Philippines
HOUSE OF RE}PRESENTATIVES
Batasan Hills, Quezon City
NII`maTEENTH coNGREss
Second Regular Session
HouseBillNo.    9903
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Introduced by REP. PRINCESS RIIIAN MANGUDADATU SAKALURAN
EXPLANATORY NOTE
The  1987 Constitution of the Philippines Article XII,  Section  14  provides that "The
sustained  development  of a  reservoir  of national  talents  consisting  of Filipino  scientists,
entrepreneurs,  professionals,  managers,  high-level  technical  manpower and  skilled workers
and craftsmen in all fields shall be promoted by the State." The Constitution likewise asserts
in Article XIV, Section 1 that "The State shall protect and promote the right of all citizens to
quality education at all levels and shall take appropriate steps to make such education accessible
to all."
Also, Article XIV, Section 2 emphasizes the govemment's duty to ensure a complete
and  suitable  education  system  that  meets  the  needs  of the  people  in  an  ever-changing
environment. It also calls for support for students through scholarships and other aid, especially
for those  from  underprivileged backgrounds.  Additionally,  it promotes  alternative  leaming
approaches, including informal and community-based programs.
Critical to the promotion of sustained development of a highly skilled work force, the
Technical  Education and  Skills  Development Authority  (TESDA)  was  established through
Republic Act No. 7796 (TESDA Act of 1994) on August 25,1994.   Through the merging of
National  Manpower  and  Youth  Council  (NMYC),  Bureau  of  Technical  and  Vocational
Education  (BTVE),  and the  Apprenticeship Program  of the  Bureau  of Local  Employment
a3LE), TESDA is mandated to oversee skills development, set standards, accredit institutions,
fund projects, and support trainer programs for the development of a top-quality middle-level
manpower capable of adapting towards emerging issues and necessities of the Fourth Industrial
Revolution.
TESDA has aimed to set the direction, promulgate relevant standards, and implement
programs  geared  towards  a  quality-assured  and  inclusive  technical  education  and  skills
development  and  certification  system  for  the  country's  technical-vocational  education  and
training (TVET) system. The frequent transfer between various administrative entities has been
driven  by  different  factors,   including  changes   in   government  priorities,   administrative
restructuring,  and attempts to enhance coordination between TESDA and other government
agencies. However, these transfers have often resulted in disruptions to TESDA's operations,
delays  in  the  implementation  of programs,  and  challenges  in  maintaining  continuity  and
coherence in policy and programmatic efforts.
Recognizing the need for stability, coherence, and focused leadership in the promotion
of technical  education  and  skills  development,  this  bill  proposes  the  establishment  of the
Department  of Technical  Education and Skills Development (DTESD)  as a permanent and
dedicated government agency. By elevating TESDA into a department, the bill aims to provide


TESDA with the  necessary  institutional  franiework,  authority,  and  resources to  effectively
cany out its mandate in a sustained and coherent manner.
The creation of the DTESD is envisioned to address the ever-changing labor landscape
and its frequent transfers between different government offices. By consolidating efforts in
TVET  development  under  a  single  department,  the  bill  seeks  to  streamline  governance,
enhance coordination, and ensure the continuity and effectiveness of policies and programs
aimed at developing a skilled and globally competitive workforce in the Philippines.
Approval of this bill is earnestly sought.
REP. P


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City
NINETEENTH CONGRESS
Second Regular Session
House Bill No.  9 3 3 3
Introduced by REP. PRINCESS RIIIAN MANGUDADATU SAKALURAN
AN ACT
CREATING THE DEPARTMENT OF THCHNICAL EDUCATION AND
SKILLS     DEVELOPMENT,     DEFINING     ITS     POWERS     AND
FUNCTIONS, REPEALING FOR THE PURPOSH REPUBLIC ACT NO.
7796, OTHERVISE KNOWN AS THE TECHNICAL EDUCATION AND
SKILLS  I)EVELOPMENT  AUTHORITY  OR  TESDA  ACT  OF  1994,
AND APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and House Of Represerttatives Of the Philippines in Congress
assembled:
SEC.I. S*orf rz.I/a. -This Act shall be known as the "Department of Technical
Education and Skills Development @TESD) Act".
SEC. 2. Dcc/¢r¢fi'on a/Po/i.c}7. -It is hereby declared the policy of the State to
provide relevant,  accessible,  high quality and efficient technical education and skills
development   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   technical-vocational   institutions   (Tvls)   being   direct
participants  in  and  immediate  beneficiaries  of a  technically  educated  and  trained
workforce, in providing technical education services and training opportunities.
SEC. 3. Dc,»i.fz.on a/ Terms. -As used in this Act:
a)   .dypre#/J.cesrfei.p refers to the training within employment with compulsory
related theoretical instruction involving a contract between an apprentice
and an employer on an approved apprenticeable occupation;
b)   4ppre#JJ.ce   refers   to   a  person  undergoing   training   for   an   approved
apprenticeable occupation during an apprenticeship agreement;
c)   4pre#/I.ces*i.p  4greemc#f  refers  to  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;
d)  4pprc#fz.ce¢b/c Occwp¢/I.o" refers to an occupation officially endorsed by a
tripartite body and approved as apprenticeable by the Department;
e)   Dw¢/ rroJ.#i.#g fys/em refers to an instructional delivery system of technical


and vocational education and training that combines in-plant training and
in-school  training based on  a  training  plan  collaboratively  designed  and
implemented by an accredited dual system educational institution/training
center  and  accredited  dual  system  agricultural,  industrial  and  business
establishments with prior notice and advice to the  local  government unit
concerned.  Under  this  system,  said  establishments  and  the  educational
institution  share the responsibility of providing the trainee  with the best
possible j ob qualifications, the former essentially through practical training
and  the  latter  by  securing  an  adequate  level  of  specific,  general  and
occupation-related theoretical instruction. The word `'dual" refers to the two
parties  providing  instruction:  the  concept  "system"  means  that  the  two
instructing parties do not operate independently of one another, but rather
coordinate their efforts.
f)    I,¢drferI.zed edwc¢fl.o#  refers  to  the  harmonization  of all  education  and
training mechanisms that allow students and workers to progress between
technical- vocational and higher education programs, or vice-versa. It opens
opportunities  for  career  and  educational  advancement  to  students  and
workers. It creates a seamless and borderless education and training system
that  will  allow  transfers  in  terms  of  flexible  entry  and  exit  between
technical-vocational and higher education programs in the post-secondary
school educational system;
g)   £c¢di.#g rccA#o/ag}; Ce#/er refers to centers that provide 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;
h)   £e¢rwer  refers  to  persons  hired  as  trainees  in  semi-skilled  and  other
industrial occupations which are non-apprenticeable. Leamership programs
must be approved by the Department;
i)    Levy   G"#/  fysJe"  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 enteaprises
offering employee training programs;
j)    MJ.ddJe-£evt7/ A4l¢xpower refers to those 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 skilled workers who
have  become  highly competent  in  their trade  or craft  as  attested  by the
industry;
k)   Philippine Qualiifilcations Frarl'Iework (PQF) rotors to the r["tional pohoy
which   describes  the   levels  of  educational  qualifications   and   sets  the
standards for qualifications 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;
1)    Priv¢/a E#Jerpri.sc 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;


in)  S#i./7 refers to the acquired and practiced ability to cany out a task orjob;
n)   S#J.J/a  Dove/apme#J  refers  to  the  process  through  which  learners  and
workers are systematically provided with leaming opportunities to acquire
or upgrade, or both, their ability, knowledge and behavior pattern required
as qualifications for a job or range ofjobs in a given occupational area;
o)   rech#J.c¢J Edwc¢fl.o"  refers  to  the  education  process  designed  at  upper
secondary and lower tertiary levels, aligned with the levels of the PQF, with
the pathways to higher education throuch the credit transfer system based
on leaming outcomes aimed at preparing technicians, technologists, para-
professionals  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;
p)   Trade refers to 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;
q)   rroJ.#ee   refers   to    persons   who   are   participants    in   a   vocational,
administrative or technical training program for the purpose of acquiring
and developing job-related skills;
r)    rr¢!.#cr  refers   to  persons   who  direct  the   practice   of  skills  towards
immediate improvement in some task;
s)    rraj.#i.#g refers to teaching or developing oneself or others, any skills and
knowledge that relate to specific useful competencies;
t)    rroj.#er's /raJ.#i.#g refers to training trainers aimed at developing the latter's
capacities for imparting attitudes, knowledge, skills and behavior patterns
required   for   specific   jobs,   tasks,   occupations   or   group   of   related
occupations; and
u)   "User-Led"  or  "Market-Driven  Strategy"  refers  to  a  strategy  which
promotes  strengthened  linkages  between  educational/training  institutions
and industry to ensure that appropriate skills and knowledge are provided
by the educational system.
EEC. 4. Creation and Mandate Of the Departi'i'Ient Of Technical Education
¢#d  S*J.//a  Deve/apmc#f.  -  There  is  hereby  created  a  Department  of Technical
Education  and  Skills  Development  (DTESD),  which  shall  be  the  primary  policy
formulation,   planning,   coordinating,   implementing,   regulating  and  administrative
entity  of the  government  for  technical  education  and  skills  development  (TESD)
agenda.
SEC. 5. Powers ¢#d F##c/i.o#S. - The Department shall exercise the following
powers and functions:
a)   Formulate a national technical education and  skills development program,
plans, policies, strategies to promote scientific and technical knowledge base
of manpower development  programs,  in  coordination  and  in  consultation
with national  and  local stakeholders,  local government units  (LGUs),  and
other government agencies;
b)   To  ensure  permanence  and  continuity  of technical  education  and  skills
development  program  at  par with  international  standards  to  attain  global
competitiveness;


c)   To recommend to the executive and legislative branches, priorities and grants
on technical education and skills development and research;
d)   Assess, review, harmonize and coordinate all TESD policies and programs
to ensure overall consistency and implementation of the national policies;
e)   Organize and constitute various standing committees, subsidiary groups, or
technical   working   groups   for   efficient   integration,   coordination   and
monitoring of TESD programs at the national, regional, and local levels;
I)   Enter  into,  make,  execute,  perform  and  carry-out  domestic  and  foreign
contracts subject to existing laws, rules and regulations;
g)   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;
h)   Approve  training  standards  and  assessment  packages  as  established  and
conducted by private industries;
i)    To instill necessary values through the development of ethical character with
emphasis on work ethics, self-discipline, self-reliance and nationalism;
j)    To support the implementation of the philippine Qualifications Framework or
the  PQF  Act  (Republic  Act  No.   10968),  the  Ladderized  Education  Act
(Republic Act No.10647) and the Dual Training System Act (Republic Act
No. 7686); and other laws, decrees and orders on education;
k)   To maximize returns to the country's investment in technical education and
skil]s development through  an efficient graduates'  employment facilitation
program within the framework of the national employment service network
system; and
I)    To support in the poverty alleviation efforts by providing the marginalized
and  vulnerable  segments  of  the  country's  population  access  to  income
generating technical education and skills development opportunities.
in)  To  promote  and  strengthen  the  quality  of technical  education  and  skills
development   programs   to   attain   global   competitiveness   and   inclusive
orowth;
n)   To focus technical education and skills development on meeting the changing
demands for quality manpower particularly in support of the development
thrust of the country;
o)   To encourage critical and creative thinking by disseminating the  scientific
and technical knowledge base of manpower development programs;
p)   To recognize and encourage the complementary roles of public and private
institutions,  enterprises,  local  government  units  (LGUs)  and  civil  society
organizations (CSOs) in technical education and skills development;
q)   Promulgate such rules and regulations and exercise such other powers and
functions  as  may  be  necessary  to  carry  out  effectively  the  purpose  and
objectives of this Act;
r)    Perform such other functions as may be necessary for its effective operations
and  for  the  continued  enhancement,  growth  or  development  of  higher
education
SEC. 6. Compos'#i.o#. -The Deparfuent shall be composed of the Office of the
Secretary, and the various bureaus, services and regional and provinciavdistrict offices.
The Office  of the  Secretary shall house the Office of the Department Secretary, the
Offices  of the  Undersecretaries,  the  Offices  of the  Assistant  Secretaries,  and  their
immediate support staff.


SEC. 7. 7ltic Secre/¢ry. - The Secretary shall have the following functions:
a)   Advise  the  President  of the  Philippines  on  matters  related  to  technical
education and skills development;
b)     Establish policies and standards for the efficient and effective operations of
the Department in accordance with programs of the government;
c)     Promulgate rules, regulations and other issunnces necessary in canying out
the Department' s mandate, objectives, policies, plans, programs and proj ects;
d)     Exercise control and supervision, including 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;
e)   Designate and appoint officers and employees of the Department, excluding
the  Undersecretaries,  Assistant  Secretaries,  and  Regional  and  Assistant
Regional  Directors,  in  accordance  with  the  civil  service  laws,  rules  and
regulations;
f)     Coordinate with  other agencies and instrumentalities of the government to
ensure  the  effective  and  efflcient  implementation  of housing  and  urban
development prograns;
g)     Formulate such rules and regulations and exercise such other powers as may
be required to implement the objectives of this Act; and
h)     Perform such other functions as may be provided by law or assigned by the
President.
SEC. 8. The Undersecretaries and Assistant Secretaries. -The SecrctELry shall
be assisted by four (4) Undersecretaries and four (4) Assistant Secretaries, who shall be
appointed by the President, upon the recommendation of the Secretary: Provj.dec7, That
at least one (1) Undersecretary and one (1 ) Assistant Secretary shall be career officers.
They shall have the powers and functions as provided for in Chapter 2, Book IV of the
Administrative  Code  of 1987.  The  Secretary  is  further  authorized to  delineate  and
assign other functional areas or responsibilities of the Undersecretaries and Assistant
Secretaries.
SEC.  9. gw¢/JJ}c¢J!.o"s  ¢Hd 4flpoJ.#fmc#/. -  No  person  shall  be  appointed
Secretary, Undersecretary and Assistant Secretary of the Department unless he or she
is a citizen and resident of the Philippines, of good moral character, of proven integrity,
and with relevant competence and expertise.
SEC. 10. Bwrc¢us, Servi.ces, ¢#d Perso##c/. -The bureaus under the Office of
the Secretary of DTESD shall 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 Director IV.
SEC. 11. iRcgj.owfl[/ OJrJFce -There shall be stablished a Regional Office in each
region  of the  country  to  be  headed  by  the  Regional  Director  with  the  rank  and
emoluments of Director IV and appointed by the President upon the recommendation of
the Secretary.  The Regional Office shall have the following functions:
a)   Direct   implementation   of  TESD   programs,   projects   and   related
activities in the region;


b)   Develop    and    recommends    TESD    programs    for    local    level
implementation within set policies;
c)    Deploy policies to stakeholders;
d)   Manage TESD resources in the region;
e)   Plan and implement policy inputs;
I)    Monitor and evaluate program implementation; and
g)   Perform such other functions as may be authorized.
SEC.  12.  7lfoe Prow.#ci.¢40is/rick 0/orces- The Provincial/District Office shall
be headed by a Provincial/District Director who shall have the rank and emoluments of a
Director Ill   and   appointed   by   the   President   upon   the   recommendation   of  the
Secretary.   The Provincial/District office shall have the following functions:
a)    Serve as secretariat to the Provincial TESD Committees;
b)   Provide  technical  assistance  to  the  local  government  units  for  effective
supervision, coordination, integration of all technical education and training
programs within their localities;
c)   Review and recommends priority technical education and training programs
within their localities; and
d)   Perform such other functions as may be authorized.
SEC.  13.  Technical  Education  and  Training  Centers.  - The DrFESD  shall
absorb and enhance existing Technical Education and Training Centers  and establish a
network  of national,  regional  and  local  technical  education  and  skills  development
centers for the purpose of promoting technical education and skills development. This
network shall include leading training technology centers, training centers in technical-
vocational schools, including TESDA- administered and supervised Tvls, including arts
and  trades  schools/colleges  and  polytechnic  institutes,  and  all  other  duly  accredited
public and private dual system educational institutions.
The TESD centers shall be administered and operated under such rules and regulations
as may be established by the DTESD in accordance with the NTESDP.
These centers and schools shall have the following functions:
a)   Provide responsive formal and non-formal TESD programs;
b)   Conduct applied research and development programs and provides extension
services  in  coordination  with  Regional  Offices  (ROs)frrovincial  Offices
(POs);
c)   Undertake entrepreneurship development program;
d)   Conduct outreach programs in coordination with R0s/POs;
e)   Providejob linkages;
f)    Provide assessment and certification;
g)   Devise mechanisms for sustainable operation and development;
h)   Monitor and evaluate program implementation; and
i)    Perform such other functions as may be authorized.
SEC. 14. Srrac/wrc ¢#d S/Hj7i#g P¢#em - Subject to the approval of the Deparfuent
of Budget and Management (DBM), the Secretary shall determine the organizational structure
and create new divisions or units as may be necessary, and appoint officers and employees of
the Department and the Commission hereinafter created in accordance with the civil service
laws, rules and regulations. The remuneration structure of the position in the staffmg pattern


shall   strictly   conform   to   Republic   Act   No.   6758,   otherwise   knoiwn   as   the   Salary
Standardization Law, as amended.
SEC.  1S.  Consultancy,  Technleal  Assistance,  Publication,  and  Research.  -  Lr\
pursuance of its objectives,  the DTESD  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 training. It shall avail
itself of the services of other agencies of the government, as may be required.
S;rmc. \6. Formulation Of a Comprehensive Development Plan for Middle Level
„¢xpowc/.  - The DTESD shall formulate a comprehensive development plan for middle
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  plan   shall  be  updated
periodically and submitted to the President 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 DTESD shall direct through its offices to call on public
agencies, the private sector and 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:
a)   Promote maximum protection and welfare of the worker-trainee;
b)   Improve the quality and relevance and social accountability of technical education and
training;
c)    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 training plan. The budget to support such
plan shall be subject to review and endorsement by the DTESD to the DBM. The
DTESD  shall  evaluate  the  efficiency  and  effectiveness  of agencies  skills
development program and schemes to make them conform to the quantitative
and   qualitative   objectives   of  the   national  technical   education   and   skills
development plan.
EEC. T]. Technical Education and Skllls I)evelopmerit Committees.  -The
DTESD shall establish Technical Education and Skills Development Committees at the
regional and local levels to coordinate and monitor the delivery of all training activities
by the public and private sectors, and recommend policy, program and project. This
committee  shall  likewise  serve  as the  Technical  Education  and  Skills  Development
Committees of the regional  and local development councils. The composition of the
Technical Education 'and Skills Development Committees shall be determined by the
Secretary.
SEC. 18. E"fexprJ.Fe-Based rroJ.#i.„g Progrom - The DTESD shall promote
Enterprise-Based  Training  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.
S;EC. L9 . Establishment and Administration Of National Training Standards.


- There  shall be national training standards to be established by DTESD-accredited
industry committees.  The  DTESD  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 lceal government units to
promote such assessment in their respective areas in accordance with the guidelines set
by the DTESD.
The   Secretary   shall   determine   the   occupational   trades   for   mandatory
certification. All certificates relating to the national training standards and cer[ification
system shall be issued by the DTESD through its Regional and Provincial Offices.
In consonance with the PQF,  the DTESD  shall closely collaborate with the
ProfessionalRegulationcommission(PRC)asregardstotheassessmentoftechnicians,
master craftsman and technologists.
SEC. 20. Admi.ni.s'tratz.o« a/ rrm!i.»f.«g Progr¢»2si.  - The DTESD shall design
and administer training programs and schemes that 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  teachers'/trainers'  training  in occupational  trades and  related  fields of
employment,  and  value  development  as  an  integral  component  of  all  technical
education and training programs.
SE:C. 21. Assistance  to Emplayers and  Organizations.  -The DTESD  shall
assist  any  employer  or  organization  engaged  in  technical  education  and  training
schemes design to attain its objectives under rules and regulations established by the
DTESD for this purpose.
SEC. T2. Accreditation and Regulation Of TESD Progralns. - AIL TESD shall
be duly accredited by the DTESD before it is offered to the public by any public, private
entity or non- government organization.
Non-compliance with the accreditation requirements of the DTESD shall form
part of the bases for the possible suspension or cancellation of the entities' license to
operate issued by competent authorities.
SEC. 23. Coordi.#¢fz.om a/A// 7ESD Schemc£. -In order to integrate the national
technical   education   and   skills   development   efforts,   all   technical   education   and
skills  development  schemes  as provided  for in this Act  shall comply with national
standards as determined by the DTESD particularly those having to do with competency
standards.  For  this  purpose,   existing  technical  education  and   skills  development
programs  in  the Government and  in  the private  sector,  specifically those wholly or
partly financed with government funds, shall be reported to the DTESD which shall
assess and evaluate such programs to ensure their efficiency and effectiveness.
Noncompliance  with  the  above-mentioned  standards  as  well  as  reportorial
requirements shall be disqualified from any form of government assistance in the field
of technical education and skills development.
SE:C. 24. Entexprise-Based Partnerships and Linkages. - The DTESD shall


establish effective  and efficient  institutional arrangements with  industry bodies and
such other organizations or associations to ensure direct participation of employers and
workers   in   the   design   and   implementation   of  technical   education   and   skills
development  schemes,  competency standardization and certification; and such other
functions in the fulfillment of the DTESD's objectives.
SEC.  25.  J»c/«sz.ve  rro7.«z.»g  qzxpo"««f.Jf.es.  -  The  DTESD  shall  likewise
design and implement a delivery system for community based technical education and
skills development opportunities for the marginalized and disadvantaged sectors of the
population. including the beneficiaries of pantawid Pamilyang Pilipino Program (4Ps)
as  provided  under  Republic  Act  No.11310  or  the  Pantawid  Pamilyang  Pilipino
Program Act, 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. 26. S*I.J/a Coxpe/I.frous.  - To promote quality technical education and
skills development in the country and with the view of participating in  international
skills competitions, the DTESD, with the active participation of private industries, shall
organize and conduct annual skills competitions.
The  DTESD  shall  promulgate  the  necessary  rules  and  guidelines  for  the
effective and efficient conduct of national skills competitions and for the country's
participation  in  intemationals  skills competitions such as ASEAN and World  Skills
Olympics.
SEC. 27. rrfec 7ESD DctJc/opme#l F##d. - A Technical Education and Skills
Development Fund is hereby established, to be managed/administered by the DTESD,
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:
a)   A one-time lump sum appropriation from the National Government;
b)   An annual contribution from the Overseas Workers Welfare Administration
Fund, the amount of which shall be determined by the Overseas Workers
Welfare Administration and based on the study on financing capacity of the
OWWA fund;
c)   Donations, grants, endowments, and other bequests or gifts, and any other
income generated by the DTESD.
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 the administration of the Fund.
The  Secretary  shall  appoint  a  reputable  government-accredited  investment


institution as fund manager, subject to existing government rules and regulations.
SEC. Z8. Technical Assistance, Incentives  and Scholarship Grants.  - The
DTESD   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.  29.  P/¢ceme#/  Ce#/ere.   -  There  shall  be  established  a  network  of
placement  centers   or  PLACERS   in   all  the   Provincialroistrict   Offices  to   cater
specifically to the j ob placement of graduates ofTESD institutions. These Centers shall
be financed and administered by the DTESD.  In coordination with the Department of
LaborandEmployment(DOLE),thesecentersshallbepartoftheNationalEmployment
Service Network of the DOLE.
SE:C. 30.   Separation  and Retirement from Service.  - Empkyees who a.Ie
separated from service within six (6) months from the effectivity of this Act as a result
of the abolition/reorganization under the provisions of this Act shall receive separation
benefits  to  which  they  may  be  entitled  under  existing  laws,  orders  and  issuances:
Provj.c7ec7, that those who are qualified to retire under existing retirement laws shall be
allowed to retire and receive retirement benefits to which they may be entitled under
applicable laws, orders and issuances.
SEC.  31.  rro"si./ory  Protijsi.o#.  -  The  TESDA  Secretariat  created  under
Sections 10-15 of R.A. 7796 shall comprise the initial manpower complement of the
DTESD, Prat;z.c7Gc7, that, no employee shall be terminated by virtue of this transfer.
The laws and rules on government reorganization as provided under Republic
Act No. 6656, otherwise known as the Reorganization Law, shall govern the transfer
and reorganization process of the DTESD.
The Personnel of the TESDA shall, in a holdover capacity, continue to perfoim
their respective duties and responsibilities and receive their corresponding salaries and
benefits until such time when the organizational structure pattern of the DTESD shall
have  been approved.  Prov!.decJ,  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 of 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. 32. .4ppraprJ.¢fz.our.  - The amount needed for the initial implementation
of this  Act  shall  be taken  from  the  current  fiscal  year's  appropriation  of TESDA.
Thereafter, the amount needed for the operation and maintenance of the DTESD shall
be included in the General Appropriations Act.
SEC. 33. Implementing Rules and Regulations.  - The DTESD 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.


SEC.  34.Mandatory   Review  Of  the   lmplementation   Of  this  Act. -The
Department shall conduct a review of the implementation of this Act at the end of the
third (3rd) year from the date of its effectivity and submit a report to Congress.
SEC. 35. Scp¢rodJ./fry CJ¢wFc. -If, for any reason, any portion or provision of this Act
shall be held unconstitutional or invalid. the remaining provisions not affected thereby shall
continue to be in full force and effect.
SEC. 36. jRepc¢/J.#g Cto#Se. - Republic Act No. 7796 is hereby repealed.  All laws,
presidential decrees, executive orders, rules and regulations, issuances or parts thereof which
areinconsistentwiththeprovisionsofthisActarerepealed,amendedormodifledaccordingly.
SEC. 37. EJorcc/I.vJ.fy. -This Act shall take effect fifteen (15) days after its publication
in the Oj#jc7.a/ Gcee#e or in a newspaper of general circulation.
Approved,