FOURTEENTH CONGRESS OF THE REPUBLIC 
)  
OF THE PHILIPPINES 
)  
Third Regular Session 
)  
I 
! 
COMMITTEE REPORT 
Submitted Jointly by the Committees on Education, Arts and Culture; Finance; 
and Public Works 
OCT 0 6 2009 
Re: ..... "'iJla~'" Bill No. 
3 4 71 (Prepared by the Committees) 
Recommending its approval in substitution of S. B. Nos. 104, 168, 528, 848, 
and 911 
Sponsors: Senators MAR Roxas, Ramon Revilla Jr., and Edgardo J. Angara 
Mr. President: 
The Committees on Education, Arts and Culture; Finance; and Public Works 
to which were primarily and secondarily referred Senate Bill No. 104, introduced by 
Senator Roxas, entitled: 
"AN ACT  
AMENDING REPUBLIC ACT NO. 7880, OTHERWISE KNOWN AS THE 'FAIR  
AND EQUITABLE ACCESS TO EDUCATION ACT'"  
Senate Bill No. 168, introduced by Senator Revilla Jr., entitled: 
"AN ACT  
ESTABLISHING A PROGRAM FOR THE ACQUISITION OF SCHOOL SITES AND  
THE CONSTRUCTION, MAINTENANCE, REHABILITATION, AND REPAIR OF  
SCHOOL BUILDINGS IN THE PUBLIC ELEMENTARY AND SECONDARY  
SCHOOLS NATIONWIDE, APPROPRIATING FUNDS THEREFOR AND FOR  
OTHER PURPOSES"  
Senate Bill No. 528, introduced by Senator Ejercito Estrada, entitled: 
"AN ACT  
ESTABLISHING A PROGRAM FOR THE CONSTRUCTION, MAINTENANCE,  
REHABILITATION, AND REPAIR OF SCHOOL BUILDINGS IN THE PUBLIC  
ELEMENTARY AND SECONDARY SCHOOLS NATIONWIDE, APPROPRIATING  
FUNDS THEREFOR, AND FOR OTHER PURPOSES"  
Senate Bill No. 848, introduced by Senator Lapid, entitled: 


"AN ACT  
ESTABLISHING A PROGRAM FOR THE ACQUISITION OF SCHOOL SITES AND  
THE CONSTRUCTION, MAINTENANCE, REHABILITATION, AND REPAIR OF  
SCHOOL BUILDINGS IN THE PUBLIC ELEMENTARY AND SECONDARY  
SCHOOLS NATIONWIDE, APPROPRIATING FUNDS THEREFOR AND FOR  
OTHER PURPOSES"  
and Senate Bill No. 911, introduced by Senator Angara, entitled: 
"AN ACT  
ESTABLISHING A PROGRAM FOR THE ACQUISITION OF SCHOOL SITES AND  
THE CONSTRUCTION, MAINTENANCE, REHABILITATION, AND REPAIR OF  
SCHOOL BUILDINGS IN THE PUBLIC ELEMENTARY AND SECONDARY  
SCHOOLS NATIONWIDE, APPROPRIATING FUNDS THEREFOR AND FOR  
OTHER PURPOSES"  
have considered the same and have the honor to report th!f4~'f to the Senate with 
the recommendation that the attached bill, S.B. No. 
, prepared by the 
Committees, entitled: 
AN ACT 
AMENDING REPUBLIC ACT NO. 7880, OTHERWISE KNOWN AS "AN ACT 
PROVIDING FOR THE FAIR AND EQUITABLE ALLOCATION OF THE 
DEPARTMENT OF EDUCATION, CULTURE AND SPORTS' BUDGET FOR 
CAPITAL OUTLAY" 
be approved in substitution of S. B. Nos. 104, 168, 528, 848, and 911, with Senators 
Roxas, Revilla Jr., Ejercito Estrada, Lapid, and Angara, as authors thereof. 
Respectfully submitted: 
~P(~RA
Chairperson 
nairperson 
Committee on Finance 
Committee on Education, Arts 
Member, Committee on Education, 
and Culture 
Arts and Culture 
Member, Committee on Public 
Member, Committee on Public Works 
Works 
Member, Committee on Finance 


e-­
NG" REVILLA JR. 
Mem er, Committee on Education, Arts and Culture 
Member, Committee on Finance 
Members 
~M~~GO 
Vice Chairperson, Committee on Finance 
Member" ommittee on Public Works 
Vice Chairperson, Committee on Finance 
Meillber, Committee on Public Works 
,/ 
BSS. AQJ NO III 
Vice Chairperso ,Committee on Finance 
Member, Committee on Education, Arts 
'and Culture 
Member, Committee on Public Works 
~Uy-P-ID----..-; 
Member, Committ~~ Education, Arts 
and Culture 
Member, Committee on Finance 
Member, Committee on Public Works 
~o€s. 
FRANCIS G. ESCUDERO 
Member, Committee on Education, Arts 
and Culture 
Member, Committee on Public Works 
JOKER P. ARROYO 
Vice Chairperson, Committee on Finance 
Member, Committee on Public Works 
LOREN B. LEGARDA 
Vice Chairperson, Committee on Finance 
Member, Committee on Education, Arts 
and Culture 
PIA "COMPANERA" S. CAYETANO 
Member, Committee on Education, Arts 
and Culture 
Member, Committee on Finance 
RICHARD J. GORDON 
Member, Committee on Education, Arts 
and Culture 
Member, Committee on Finance 
Member, Committee on Public Works 
Member, Committee on Education, Arts 
and Culture 
Member, Committee on Finance 


M.A. MADRIGAL 
PANFIL a M. LACSON 
Member, Committee on Education, Arts 
Member, Committee on Finance 
and Culture 
Member, Committee on Finance 
ALAN PETER S. CAYETANO 
Member, Committee on Education, Arts 
and Culture 
Member, Committee on Finance 
Member, Committee on Public Works 
MANNY VILLAR 
Jl;lember, Committee on Education, Arts 
and Culture 
Member, Committee on Finance 
Member, Committee on Public Works 
Member, Com ittee on Education, Arts 
and Culture 
Member, Committee on Finance 
Member, Committee on Public Works 
ANTONIO F. TRILLANES IV 
Member, Committee on Finance 
Ex-Officio Members 
/-­
UEL F. ZUBIRI f, ~~ 
.--J ~
Majority Leader 
Minority Leader 
HaN. JUAN PONCE ENRILE 
. President 
Senate of the Philippines  
Pasay City  


FOURTEENTH CONGRESS OF THE REPUBLIC )  
OF THE PHILIPPINES 
)  
Third Regular Session 
)  
SENATE 
S. B. No. 3471 
(In substitution of Senate Bill Nos. 104, 168, 528, 848, and 911) 
Prepared by the Committees on Education, Arts and Culture; Finance; and Public 
Works with Senators Roxas, Revilla Jr .• Ejercito Estrada. Lapid, and Angara as authors 
thereof 
AN ACT 
AMENDING REPUBLIC ACT NO. 7880. OTHERWISE KNOWN AS "AN ACT 
PROVIDING FOR THE FAIR AND EQUITABLE ALLOCATION OF THE 
DEPARTMENT OF EDUCATION. CULTIJRE AND SPORTS' BUDGET FOR 
CAPITAL OUTLAy' 
Be it enacted by the Senate and the House ofRepresentatives ofthe Philippines in Congress 
assembled: 
SECTION 1. Republic Act No. 7880 is hereby amended, and thesubsequem 
2 
sections thereby renumbered, by inserting a new Section 3, to read as follows: 
3 
4 
"SEC. 3. COVERAGE. - THE PROVISIONS OF THIS ACT SHALL 
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COVER ALL FUNDS AND BUDGET APPROPRIATED AS CAPITAL 
6 
OUTLAY 
FOR 
THE 
DEPARTMENT 
OF 
EDUCATION 
(DEPED) 
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INCLUDING, BUT NOT LIMITED TO, THE FUNDS APPROPRIATED FOR 
8 
THE SCHOOL BUILDING PROGRAM AND LOCALLY-FUNDED PROJECTS 
9 
OF THE DEPARTMENT OF EDUCATION." 
10 
t 1 
SEC. 2. Section 3 of the same Act is hereby amended to read as follows: 
12 
"SEC. [3] 4. Definition of Terms. - As used in this Act, the following 
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terms are hereby defined as follows: 


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a) 
Capital Outlay -
refers to the provisions of the General 
2 
Appropriations Act, particularly those pertaining to the budget of 
3 
the [DECS] DEPED for elementary and secondary education for (i) 
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the acquisition and improvement of sites; (ii) the construction, 
replacement, rehabilitation and repair of buildings, classrooms, 
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libraries, workshops, toilets AND SANITATION FACILITIES and 
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other structures; and (iii) [furniture, fixtures, and equipment such 
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as, but not limited to, desks, chairs, laboratory and workshop 
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implements, computers, books,] OTHER PROPERTY, PLANT AND 
EQUIPMENT 
IN 
ACCORDANCE 
WITH 
THE 
CURRENT 
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GOVERNMENT ACCOUNTING STANDARDS PRESCRIBED B)' 
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THE COMMISSION ON AUDIT, SUCH AS 
FURNITURE, 
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FIXTURES, EQUIPMENT, COMPUTERS, and the other basic and 
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essential tools for learning whose beneficial use shall exceed one (1) 
year; [and] 
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b) CLASSROOM -
REFERS 
TO 
A 
STRUCTURE/BUILDING 
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INTENDED FOR INSTRUCTIONAL PURPOSES, INCLUDING 
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CHAIRS, DESK AND OTHER SIMILAR FIXTURES; AND 
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c) Classroom Shortage - refers to the number of classrooms whose 
construction, in considering the number of students divided by the 
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existing number of classrooms, shall result in a student-classroom of 
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[45:1] 40:1; classrooms, UNDER THIS DEFINITION, shall mean 
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those exclusively used for instructional purposes and shall exclude 
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offices libraries, laboratories, workshops and the like." 
26 
SEC 3. Section 4 of the same Act is hereby amended to read as follows: 
27 
"SEC. [4] 5. 
Allocation of Appropriation. - Notwithstanding any 
28 
provision of the law to the contrary, the annual [DECS] DEPED budget for 
29 
capital outlay, as defined in Section [3] 4(a), shall be allocated among the 
legislative districts in the following manner: 
31 
32 
[(a) On the first year of the effectivity of this Act: 
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(1) thirty percent (30%) of the total capital outlay to be allocated pro­
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rata according to each legislative district's student population in 
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relation to the total student population of the country; 
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(2) sixty percent (60%) ofthe total capital outlay to be allocated only 
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among those legislative districts with classroom shortages as defined in 
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Section 3 (b), pro-rata to the total classroom shortage of the country 
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pursuant to Section 3 (b) as determined by the DECS; and 
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(3) ten percent (10%) to be allocated in accordance with the 
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implementation of the policy of this Act as may be determined by the 
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DECS. 
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(b) On the second year and every year thereafter: 
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(1) fifty percent (50%) of the total capital outlay to be allocated pro-rata 
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according to each legislative district's student population in relation to 
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the total student population of the country; 
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(2) forty percent (40%) of the total capital outlay to be allocated onlv 
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among those legislative districts with classroom shortages, as defined in 
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Section 3 (b), pro-rata to the total classroom shortage of the countrv 
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pursuant to Section 3(b) as determined by the DECS; and 
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(3) ten percent (10%) to be allocated in accordance with the 
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implementation of the policy of this Act as may be determined by the 
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DECS]. 
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(a) TEN PERCENT (10%) OF THE TOTAL CAPITAL OUTLAY TO BE 
ALLOCATED 
PRO-RATA 
ACCORDING 
TO 
EACH 
LEGISLATIVE 
31 
DISTRICT'S STUDENT POPULATION IN RELATION TO THE TOTAL 
32 
STUDENT POPULATION OF THE COUNTRY; 
33 


(b) EIGHTY PERCENT (80%) OF THE TOTAL CAPITAL OUTLAY TO BE 
2 
ALLOCATED ONLY AMONG THOSE LEGISLATIVE DISTRICTS WITH 
3 
CLASSROOM SHORTAGES, PRO RATA TO THE TOTAL CLASSROO,\1 
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SHORTAGE OF THE COUNTRY PURSUANT TO SECTION 4(c) AS 
S 
DETERMINED BY THE DEPED; AND 
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(c) TEN PERCENT (10%) TO BE ALLOCATED IN ACCORDANCE WITH 
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THE IMPLEMENTATION OF THE POLICY OF THIS ACT AS MAY BF 
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DETERMINED BY 
DEPED." 
10 
11 
SEC. 4. Section 5 of the same Act is hereby amended to read as follows: 
12 
13 
"SEC. [5] 6. Use ofAllocation. ­ The total amount allocated herein shall 
14 
be 'used exclusively for capital outlay pursuant to the educational priorities of 
1 S 
the legislative district, as determined by the [DECS] DEPED upon prior 
16 
consulatation with the representative of each legislative district: Provided, 
17 
That the primary objective in the use of any allocation shall be to eliminate 
18 
SCHOOLBUILDING/classroom shortages if any: PROVIDED HOWEVER. 
19 
THAT FOR EVERY SCHOOLBUILDING/CLASSROOM CONSTRUCTED, 
20 
THE APPROPRIATE NUMBER OF TOILETS AND/OR SANITATION 
21 
FACILITIES SHALL ALSO BE CONSTRUCTED IN ACCORDANCE WITH 
22 
THE SCHOOL SANITATION AND HEALTH SERVICES CHAPTER OF THE 
23 
CODE ON SANITATION OF THE PHILIPPINES (CHAPTER VI, P.D. 856): 
24 
Provided, 
furthe~ That any amounts allocated in accordance with 
2S 
[subparagraph (1) of paragraphs (a) and (b)] PARAGRAPH (a) of the preceding 
26 
section shall be used only for the acquisition or improvement of school sites, 
27 
construction of schoolbuildings and classrooms and the purchase of material or 
28 
equipment that directly aid in education: Provided, furthermore, That th~ 
29 
amount so appropriated in accordance with [subparagraph (2) of paragraphs (a) 
30 
and (b)] PARAGRAPH (b) of the same section shall be used exclusively for the 
31 
construction of new schoolbuildings AND/OR CLASSROOMS: Provided. 
32 
finally, That if the amount so appropriated in [subparagraph (2) of paragraphs 
33 
(a) and (b)] PARAGRAPH (b) should exceed the amount required to meet 


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classroom shortage. the excess shall be integrated with [subparagraph (1) of 
2 
paragraphs (a) and (b)] PARAGRAPH (a) of the same section excluding capital 
3 
outlays of division offices, regional and central offices. 
4 
SEC. 5. Before Section 6 of Republic Act 7880, insert two (2) new sections to 
6 
read as follows: 
7 
8 
"SEC. 7. INCREASEINTHEANNUALBUDGETALLOCATION 
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THE BUDGET ALLOCATION PROVIDED FOR THE CAPITAL OUTLAY OF 
THE DEPED UNDER THIS ACT SHALL BE INCREASED ANNUALLY BY 
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TWENTY PERCENT (20%) TO COMPLY WITH THE TARGETED 
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CLASSROOM-STUDENT RATIO AND TO DECREASE CLASSROOM 
13 
SHORTAGE IN THE COUNTRY. 
14 
SEC. 8. REPORTORIAL REQUIREMENT.- THE DEPARTMENT OF 
16 
BUDGET AND MANAGEMENT (DBM), THE DEPARTMENT OF PUBLIC 
17 
WORKS AND HIGHWAYS (DPWH), AND THE DEPARTMENT OF 
18 
EDUCATION (DEPED) ARE HEREBY REQUIRED TO SUBMIT TO THE 
19 
RESPECTIVE COMMITTEES ON EDUCATION OF BOTH HOUSES OF 
CONGRESS AN ANNUAL REPORT ON THE RELEASE AND UTILIZATION 
21 
OF THE CAPITAL OUTLAY UNDER THIS ACT: PROVIDED, THAT SUCH 
22 
SUBMISSION SHALL BE SEPARATE AND DISTINCT FROM THE REPORTS 
23 
THEY SUBMIT TO CONGRESS RELATED TO DELIBERATIONS ON THE 
24 
ANNUAL GENERAL APPROPRIATIONS ACT." 
26 
Sections 6 and 7 of Republic Act 7880 are hereby renumbered as 
27 
Sections 9 and 10 respectively. 
28 
29 
SEC. 6. 
Section 8 of the same Act is hereby amended and accordingly 
renumbered to read as follows: 
31 
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"SEC. [8] 11. Penal Clause. ­ ANY VIOLATION OF THE PROVISIONS 
33 
OF THIS ACT SHALL BE CONSIDERED AS DERELICTION OF DUTY AS 


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SET FORTH IN PERTINENT ADMINISTRATIVE AND CIVIL SERVICE  
2 
LAWS, AND SHALL 
BE 
ADMINISTRATIVELY DEALT WITH 
II\: 
3 
ACCORDANCE WITH APPROPRIATE EXISTING ADMINISTRATIVE 
4 
PROCEDURES AND PENALTIES. 
6 
Any public official or employee or private individual who willfully or 
7 
knowingly misappropriates the funds allocated herein or uses the same for 
8 
personal gain in violation of Section [5] 6 of this Act shall be punished witb 
9 
perpetual disqualification from public office and imprisonment for not le3s 
than six (6) years but not more than fifteen (15) years. 
1 1 
12 
SEC. 7. Section 9 of the same Act is hereby amended and accordingly 
13 
renumbered to read as follows: 
14 
"SEC. [9] 12. Release of Capital Outlays. 
The appropriation herein 
16 
provided for the construction, rehabilitation, replacement, completion and repair of 
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schoolbuildings shall be [directly released to and administered by the Department of 
18 
Public Works and Highways based on the work program submitted by the DECS: 
19 
Provided, That fifty percent (50%) ofthe total appropriation for capital outlay shall be 
released automatically on the first quarter of the calendar year, including its 
21 
corresponding notice of cash allocation.] RELEASED IN THE FOLLOWING 
22 
MANNER: 
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1. ON THE FIRST YEAR OF THE EFFECTIVITY OF THIS ACT: 
26 
A. FIFTY PERCENT (50%) OF THE SCHOOL BUILDING FUND 
27 
SHALL BE DIRECTLY RELEASED TO AND ADMINISTERED 
28 
THE DEPED OR THE LOCAL GOVERNMENT UNIT AS MAY BE 
29 
AUTHORIZED BY THE DEPED, UNDER THE LATTER'S SCHOOL 
BUILDING PROGRAM; 
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B. FIFTY PERCENT (50%) OF THE SCHOOL BUILDING FUND 
33 
SHALL BE DIRECTLY RELEASED TO AND ADMINISTERED BY 


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THE DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS 
2 
(DPWH) BASED ON THE WORK PROGRAM SUBMITTED BY THE 
3 
DEPED. 
4 
2, ON THE SECOND YEAR OF THE EFFECTIVITY OF THIS ACT: 
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A. SEVENTY PERCENT (70%) OF THE SCHOOLBUILDING FUND 
8 
SHALL BE DIRECTLY RELEASED TO AND ADMINISTERED B'{ 
9 
THE DEPED OR THE LOCAL GOVERNMENT UNIT AS MAY BE 
AUTHORIZED BY THE DEPED, UNDER THE LATTER'S SCHOOL 
11 
BUILDING PROGRAM; 
12 
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B. THIRTY PERCENT (30%) OF THE SCHOOLBUILDING FUND 
14 
SHALL BE DIRECTLY RELEASED TO AND ADMINISTERED BY 
THE DPWH BASED ON THE WORK PROGRAM SUBMITTED BY 
16 
THE DEPED. 
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3. ON THE THIRD YEAR AND EVERY YEAR THEREAFTER, THE 
19 
SCHOOLBUILDING FUND SHALL BE DIRECTLY RELEASED TO AND 
ADMINISTERED BY THE DEPED OR THE LOCAL GOVERNMENT UNIT 
21 
AS MAY BE AUTHORIZED BY THE DEPED, UNDER THE LATTER'S 
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SCHOOL BUILDING PROGRAM. 
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PROVIDED, THAT THE DBM AND THE DEPED SHALL FORM 
WITHIN THE LAST QUARTER OF EVERY YEAR A COMMITTEE, TASKED 
26 
TO DRAW A SCHOOL BUILDING EXPENDITURE PROGRAM WHICH 
27 
SHALL BE IMPLEMENTED IN THE IMMEDIATELY SUCCEEDING YEAR, 
28 
WHICH AMONG OTHERS, SHALL INCLUDE A LIST OF SCHOOL 
29 
BUILDING/CLASSROOM TO BE FUNDED BY THE SAID SUCCEEDING 
YE~R'S BUDGET. THE DRAWING OF THE PRORAM TOGETHER WITH 
3 I 
THE LIST SHALL BE DEEMED COMPLETE AND FINAL ON 31 DECEMBER 
32 
OF EVERY YEAR, EVIDENCED BY THE SIGNATURES OF BOTH THE DBM 
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AND DEPARTMENT OF EDUCATION (DEPED) SECRETARIES; 
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PROVIDED FURTHER, THAT THE DBM SHALL ISSUE THE 
2 
SPECIAL ALLOTMENT RELEASE ORDER (SARO) (OR ITS EQUIVALENT) 
3 
FOR PROJECTS IN THE LIST, TOGETHER WITH THE RELEASE OF CASH 
4 
AMOUNT EQUIVALENT TO AT LEAST FIFTEEN PERCENT (15%) OF 
EACH TOTAL PROJECT COST, ON OR BEFORE JANUARY 31; 
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PROVIDED FURTHERMORE, THAT THE BIDDING AND THE 
8 
AWARDING FOR SAID PROJECTS SHALL HAVE BEEN COMPLETED 
9 
WITHIN SIXTY (60) DAYS AFTER THE ISSUANCE OF THE SARO; 
11 
PROVIDED FINALLY, THAT THE NOTICE OF CASH ALLOCATION 
12 
(NCA) (OR ITS EQUIVALENT), WHICH SHALL CONTAIN THE BALANCE 
13 
OF THE TOTAL PROJECT COST, SHALL BE RELEASED AND COMPLETED 
14 
WITHIN THIRTY DAYS AFTER THE AWARDING OF THE PROJECT TO 
THE IMPLEMENTOR. 
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FAILURE TO COMPLY WITH ANY OF THE PROVISIONS OF TI-IIS 
18 
SECTION SHALL RENDER THE SECRETARIES OR THE CONCERNED 
19 
STAFF LIABLE UNDER THE PENAL PROVISIONS OF THIS ACT. 
21 
SEC. 8. Another new Section is hereby added to RA 7880 to read as follows: 
22 
"SEC. 13. MISCELLANEOUS PROVISIONS. 
ALL REFERENCES TO 
23 
THE "DEPARTMENT OF EDUCATION, CULTURE AND SPORTS" 11'\ 
24 
REPUBLIC ACT 7880 ARE ACCORDINGLY AMENDED TO READ 
"DEPARTMENT OF EDUCATION (DEPED)." 
26 
THE OTHER SECTIONS IN RA 7880 AFFECTED BY THE 
27 
PRECEDING SECTIONS ARE HEREBY RENUMBERED ACCORDINGLY. 
28 
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SEC. 9. Repealing Clause. - All laws, decrees, orders, rules and regulations, and 
all other issuances or parts thereof, which are inconsistent with this Act are deemed 
31 
repealed or modified accordingly. 
32 


SEC. 10. Separability Clause. - The provisions of this Act are hereby· declared 
2 
to be separable and, in the event any provision is declared unconstitutional, the other 
3 
provisions which are not affected thereby shall remain in full force and effect. 
4 
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SEC. 11. Effectivity. - This Act shall take effect fifteen (15) days following its 
6 
publication in a newspaper of general circulation in the Philippines. 
7 
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APPROVED, 
9