EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
y (Ottitf o( Il)f fei-crftai'ji
*19 
AUG 27 
P 3 « 2
S E N A T E
Introduced by Senator SONNY ANGARA
AN ACT
INSTITUTIONALIZING A SCHOOL MODERNIZATION AND INNOVATION 
PROGRAM 
FOR 
PUBLIC 
ELEMENTARY 
AND 
SECONDARY 
SCHOOLS 
PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The era of globalization has placed extreme pressure on our government to 
produce highly specialized and technical personnel in a relatively short period of 
time. Given the rapid changes and developments in the field of Information 
Technology and emergence of knowledge-based society, the Philippines has to 
reorient the thrusts of its educational system to meet the growing needs and 
demands of a highly competitive world market.
To achieve this arduous task, there is a need to formulate a viable, 
comprehensive and sustainable long-term modernization plan for schools primarily at 
the elementary and secondary levels.
At present, the students in public schools have been left behind by their 
counterparts in the private schools. Only half of high schools nationwide reportedly 
have computer laboratories. Most of these need to be repaired or upgraded 
however, as the computers in these laboratories are not properly maintained after 
they've been delivered to schools.
Given the scarce resources of the national government, there is a need to be 
more cost-effective and innovative in our approach to finance school modernization 
programs. This can be achieved through active partnership with local government 
units and private sector such as foundations private corporations and business 
groups.


The School Modernization and Innovation bill aims to:
a. 
Provide a broad framework for the institutionalization of a comprehensive and 
sustainable modernization program for the public schools;
b. 
Encourage the schools to become more innovative and resourceful in 
developing and implementing programs geared towards modernization;
c. 
Develop mechanisms that will define the roles and responsibilities of the 
officials from the regional, division down to the school levels in the 
implementation of school modernization programs;
d. 
Provide mechanism on how the private sector can participate in the program;
e. 
Define regional and school modernization plans responsive to the needs of 
the students in the area.
The bill also seeks to establish the School Modernization and Innovation Trust 
Fund which will augment the regular appropriations that will be provided under the 
annual General Appropriations Act to finance the priority programs for school 
modernization and improvement of public elementary and secondary schools.
This is the opportune time for the government to seriously consider ways of 
increasing the share of budget devoted to computerization of schools, upgrading of 
libraries and science laboratories. Moreover the application of information technology 
in classroom instruction would increase efficiency in teaching and learning process 
and enhance competencies of students.
In view of the foregoing, the immediate passage of this bill is earnestly
sought.
SONNY ANGARA


EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHIUPPINES 
)
First Regular Session 
)
Senate
«&Uicr o[ t|)( ftrtrrtarp
T9 
AUG 27 
P3 ;02
S E N A T E
Introduced by Senator SONNY ANGARA
AN ACT
INSTITUTIONALIZING A SCHOOL MODERNIZATION AND INNOVATION 
PROGRAM 
FOR 
PUBLIC 
ELEMENTARY 
AND 
SECONDARY 
SCHOOLS 
PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House o f Representatives o f the Philippines in 
Congress assembled:
1 
Section 1. Title. -  This Act shall be known as the "School Modernization and
2 
Innovation Act."
3 
Sec. 2. Declaration o f Policy. -  It is hereby declared the policy of the State to
4 
promote a comprehensive and sustainable modernization program for all public
5 
elementary and secondary schools aimed at improving the effectiveness and
6 
efficiency of delivery of basic education. The State shall likewise take into account
7 
the regional and sectoral needs and conditions in developing a viable long-term
8 
modernization plan. The State shall also encourage the participation of the private
9 
sector and local government units in strengthening programs which provide relevant
10 
and adequate skills for public school children necessary for them to be global
11 
competitive.
12 
Sec. 3. Statement o f Purpose. -  This Act seeks to attain the following
13 
objectives:
14 
a) 
To provide a broad framework for the institutionalization of a comprehensive,
15 
and sustainable modernization program for the public schools;
16 
b) 
To encourage the schools to become more innovative and resourceful in
17 
developing and implementing programs geared towards modernization;
1


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c) 
To develop mechanisms which will define the roles and responsibilities of the
2 
officials from the regional, division down to the school levels in the
3 
implementation of the school modernization programs;
4 
d) 
To provide mechanisms on how the private sector can participate in the
5 
program; and
6 
e) 
To define a regional, division and school modernization and innovation plan
7 
responsive to the needs of the students in the area.
8 
Sec. 4. Implementing Agency. -  The Department of Education, hereinafter
9 
referred to as the "Department", shall be the main implementing agency of the
10 
School Modernization and Innovation Act. The Secretary of Education shall be
11 
responsible of ensuring the smooth implementation of the modernization plan for
12 
schools.
13 
Sec. 5. Components. -  The School Modernization and Innovation Program
14 
shall consist of the following:
15 
a) 
Computerization of public elementary and high schools. The DepEd, in
16 
coordination with other appropriate government agencies, shall determine the
17 
appropriate number of information technology (IT) equipment depending on
18 
the number of student enrollment. The Science high schools in every region
19 
nationwide shall be given priority in the allocation of funds for the
20 
computerization.
21 
b) 
Upgrading of Libraries in public elementary and secondary schools. A well-
22 
equipped library shall be established in every public elementary and
23 
secondary high school. The library should be provided with at least five (5)
24 
computers, which have Internet access to assist the students in their research
25 
work.
26 
c) 
Promotion of an integrated distance-learning program. The distance learning
27 
program aims to enable the students from local and foreign private schools to
28 
share their knowledge and expertise in the areas of Science and Technology,
29 
Mathematics, English and Communication to students in public schools
30 
through modern system of instructional and communication technology. It
31 
may adopt an interactive system of instruction through television, modern
32 
satellite communication or cable system whichever is appropriate and feasible


1 
in the area. The students as well as teachers in public schools shall be
2 
provided with opportunities to avail of the latest trends and developments in
3 
the field of educational, science, technology and communication even from
4 
abroad through distance learning programs.
5 
d) 
Upgrading of Science Laboratories. Each public elementary and high school
6 
will be provided with well-equipped science laboratories with modern science
7 
equipment, which is essential in improving the competencies of the students
8 
in the area of science and technology.
9 
Sec. 6. Phased Implementation o f the Program. -  The Department shall
10 
implement the program in phases to ensure continuity and sustainability of the
11 
projects. The phases of implementation will be determined according to the priorities
12 
set by the Department as well as the absorptive capacity of the schools.
13 
Sec. 7. Financing o f the Program. -  The Department of Budget and
14 
Management shall allocate at least ten percent (10%) of the total appropriations of
15 
the annual budget of the Department for the financing of the School Modernization
16 
and Innovation Program.
17 
Sec. 8. Formulation o f School Modernization and Innovation Plan at School
18 
and Regional Level. -
19 
a) 
National Modernization and Innovation Plan. The Secretary of Education, in
20 
consultation with Regional Directors and Schools Division Superintendents,
21 
shall develop a comprehensive and sustainable modernization and innovation
22 
plan for public elementary and secondary schools nationwide which will be
23 
implemented within a period of five (5) years. It shall take into account the
24 
rapid changes in the field of information technology, communication and
25 
instructional delivery in various part of the world. It shall also identify sources
26 
of funding both from local and international financial institutions as well as
27 
the role of private sector, local government units and other members of the
28 
civil society. It shall likewise define the national standards and framework,
29 
which will be adopted in developing the individual plans.
30 
b) 
Regional Modernization and Innovation Plan. The Regional Director, in
31 
coordination with the Schools Division Superintendents, shall formulate a
32 
modernization framework consistent with national standards which will serve


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c)
as the basis for the plan taking into consideration the specific needs, and 
requirements of the region. The regional plan shall highlight the peculiarities 
and unique needs of the various schools within its jurisdiction.
School Modernization and Innovation Plan. Each school shall formulate its 
own 5-year modernization plan which reflects the aspirations and goals of the 
school based on the regional plan of action. The plan shall consist of an 
assessment of the existing needs of the school as well as an inventory of 
existing educational facilities, priority programs for the allocation of funds, 
strategies to mobilize financial resources to augment regular budget and 
strategies to manage the use of personnel, physical and fiscal resources. The 
individual plans of the schools shall be submitted to the regional offices for 
consolidation.
Sec. 9. School Modernization and Innovation Trust Fund. -  A School 
Modernization and Innovation Fund, hereinafter referred to as the Fund, is hereby 
established, exclusively to augment the regular appropriations provided under 
Section 7 of this Act to finance the priority programs for school modernization and 
improvement of public elementary and secondary schools, 
a) 
The government's contribution to the Fund shall be the following:
1. The amount of Fifteen Billion Pesos (P15,000,000,000.00) as seed 
capital;
2. The equivalent of ten percent (10%) of the annual gross earnings of 
the Philippine Amusement Gaming Corporation (PAGCOR);
3. The equivalent of 10% annual share on the total gross collections of 
the travel tax;
The equivalent of 10 % of any additional increase annually in the fees 
for vehicle registration;
The equivalent of 2% of the additional increase annually in revenue 
collections;
6. The equivalent of 10% of the sales of the lotto operations of the 
Philippine Charity Sweepstakes Offices (PCSO).
4.
5.


1 
The fund shall have a private portion to be raised from donations and gifts
2 
and other conveyances including materials, equipment, properties and services by
3 
gratuitous title.
4 
b) 
The fund shall be distinct and separate from the schools' regular allotment for
5 
maintenance and other operating expenses (MOOE).
6 
c) 
The Department shall be authorized to use the annual interest income of the
7 
Trust Fund provided that the expenditures will be used directly for the
8 
implementation of the modernization programs and not 
on the regular
9 
programs of the Department; Provided, that 50% of the entire annual income
10 
shall be retained in the Bureau of the Special Treasury.
11 
Sec. 10. Management and Administration o f the Fund. -  The Fund shall be
12 
administered by the Department of Education. For sound and judicious management
13 
of the Fund, the Department shall appoint a reputable government financial
14 
institution as portfolio manager of the Fund, subject to the following conditions:
15 
As administrator of the Fund, the Department shall prepare the necessary
16 
guidelines for its use, subject to the following conditions:
17 
a) 
No part of the seed capital of the Fund, including earnings thereof shall be
18 
used to underwrite overhead expenses of the administration;
19 
b) 
Unless otherwise stipulated by the private donor, only earnings of private
20 
contributions shall be used for administrative expenses;
21 
c) 
The Department shall appoint and organize a separate staff that will be
22 
independent administratively from the Department. It shall also enjoy fiscal
23 
autonomy from the Department.
24 
Sec. 11. Assistance from Locai Government Units. -  Each local government
25 
unit (LGU) shall allocate at least 5% of their Special Education Fund to augment the
26 
appropriations for the financing of programs in line with the thrusts of the school
27 
modernization and innovation program.
28 
Sec. 12. Uses o f the Fund. -  The School Modernization and Innovation Fund
29 
shall be used to finance the following:
30 
a) 
Projects, which have been approved and certified as priority by the National
31 
Executive Committee and Regional Modernization Committees created under


1 
Section 
13 based on the guidelines and criteria formulated by the
2 
Department;
3 
b) 
In service training of the teachers in the area of computer literacy and
4 
instructional communication technology;
5 
c) 
Procurement of computer equipment including maintenance of computer,
6 
laboratories, audio visual and multimedia facilities, and appropriate education
7 
technology software; and
8 
d) 
Procurement of science equipment for science laboratories in schools
9 
Sec. 13. Order o f Priority in the Allocation o f Funds. -  In order for the school
10 
to be given priority in the allocation of funds from the School Modernization
11 
Innovation Trust Fund, the following criteria should be met:
12 
a) 
The programs, which will be funded, should be in line with the formulated
13 
regional and school modernization plans;
14 
b) 
The school should have mobilized additional 40% counterpart funding from
15 
the local government unit, private corporations, foundations, business groups
16 
or private individuals for every program which will be implemented.
17 
c) 
The programs have been approved by either the Regional Modernization
18 
Committee or the National Executive Committee, or both depending on the
19 
funding required.
20 
Sec. 14. Selection Process. -  The individual schools nationwide are directed to
21 
develop project proposals in line with the modernization thrusts of their region and
22 
submit to their respective regional offices to determine its feasibility and contribution
23 
to the overall thrusts of school modernization in the country.
24 
A National Executive Modernization Committee shall be established. It shall be
25 
headed by the Secretary of the Department of Education, the Undersecretary for
26 
Programs and 
Directors of Elementary and 
Secondary 
Education 
and two
27 
representatives from the private sector. It shall be in-charge in evaluating projects
28 
with national application and coverage.
29 
A Regional Modernization Committee headed by the Regional Director and
30 
composed of three Division Superintendents and two Representatives from Parent
31 
Teachers Association in the region shall be established to evaluate all project
32 
proposals at the regional level. The Regional Modernization Committee shall have


1 
the authority to approve and recommend release of funding for projects with a
2 
funding requirement of up to One million pesos (P1,000,000.00).
3 
However, the approved project proposals with a funding requirement of more
4 
than One million pesos (P I,000,000.00) will be forwarded to the National Executive
5 
Modernization Committee chaired by the Secretary of Department of Education or
6 
his duly designated representative for final review and approval.
7 
The Department shall promulgate guidelines for the selection of the project
8 
proposals, which will be funded by the School Modernization and Innovation Fund.
9 
Sec. 15. Private Sector Participation. -  The members of the private sector are
10 
hereby encouraged to provide technical and/or financial support to the schools as
11 
they pursue their modernization plans. The private corporations, foundations,
12 
business groups or individuals who shall provide support to modernization programs
13 
shall be allowed to deduct from their gross income 100% of the expenses directly
14 
used to finance the implementation of the program in the schools.
15 
The schools which would be able to seek at least 40% counterpart funding
16 
support from private corporations, foundations, business groups individuals as well
17 
as local government in their respective local communities shall be given the priority
18 
the provision of direct grants and funding from the School Improvement and
19 
Innovation Fund particularly in programs which are mentioned in Section 9.
20 
Sec. 16. Implementing Rules and Reguldi\ous. -  The Secretary of Education
21 
shall promulgate the implementing rules and regulations within (90) ninety days
22 
after the approval of this Act.
23 
Sec. 17. Separability Clause. -  If any portion or provision of this Act is
24 
subsequently declared invalid or unconstitutional, other provisions hereof which are
25 
not affected thereby shall remain in full force and effect.
26 
Sec. 18. Repealing Clause. -  All other laws, acts, presidential decrees,
27 
executive orders, presidential proclamations, issuances, rules and regulations, or
28 
parts thereof which are contrary to or inconsistent with any of the provisions of this
29 
Act are hereby repealed, amended, or modified accordingly.
30 
Sec. 19. Effectivity. -  This Act shall take effect fifteen (15) days after its
31 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,