Republic of the Philippines

House of Representatives

Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Seasion

HOUSE BILL No. 103€

Introduced by Representative FRANCISCO JOSE F. MATUGAS IT

EXPLANATORY NOTE

AN ACT CREATING THE DEPARTMENT OF TECHNICAL EDUCATION
AND SKILLS DEVELOPMENT (“DTESD”), DEFINING ITS MANDATE,
POWERS AND FUNCTIONS, REPEALING FOR THE PURPOSE REPUBLIC
ACT NO. 7796, OTHERWISE KNOWN AS THE “TESDA ACT OF 1994” AND
APPROPRIATING FUNDS THEREFOR

Republic Act No. 7796 or the “TESDA Act of 1994”, approved on August 26,
1994, paved the way for the creation of the Technical Education and Skills
Development Authority (*TESDA”). Section 2 of the law specifically mandated
TESDA to carry out the government's efforts in providing relevant, accessible, high
quality and efficient technical education and skills development in support of the
development of high-quality Filipino middle-level manpower responsive to the
country’s development goals and priorities.

By virtue of said law, the former National Manpower and Youth Council
(CNMYC’), the Bureau of Technical Vocational Education of the then Department of
Education, Culture and Sports (‘BTVE-DECS’) and the apprenticeship program of
the Department of Labor and Employment (“DOLE”) were integrated into TESDA.
‘The merger of these entities was based on the recommendation of the Congressional
Commission on Education (“EDCOM") that had undertaken a nationwide review of
the state of the Philippine education and training system in 1991.

Twenty-five (25) years hence, TESDA has become the leading authority in
ensuring that technical education and skills development (‘TESD") is relevant.
efficient, accessible, and of high quality. However, the agency has been facing
enormous challenges due to changes in the local and global environment. There are
limitations to what TESDA can do which can be addressed if it will be elevated into
a line Department of the government. TESDA must address the need for modern
facilities and equipment in order to be at par with the requirements of the challenge
posed by the Fourth Industrial Revolution and other advancements that may
happen in the future. It must also be bestowed with police powers to impose
sanctions and penalties ~— to.-~— erring «= TESD ~—_ implementers.



This Bill seeks to repeal R.A. 7796 and to strengthen the powers and
organizational functions of TESDA by elevating it into a department. The proposed
Department shall be the primary policy formulation. planning, coordinating.
implementing, regulating, and administrative entity of government for technical
education and training and certification policies, plans and programs. It shall be
headed by a Secretary. four (4) Undersecretaries and four (4) Assistant Secretaries.

The functions of the new Department will be carried out by the various
bureat service offices. and Regional, Provincial and District Offices.
Implementation of direct training programs will be done by the technology
institutions.

With the proposed legislative measure, TESDA will be strengthened as an
implementing and regulatory institution of the Technical and Vocational Sector of
the country’s trifocal education system. The agency will have better capacity to
fulfill its vision as the transformational leader in the technical education and skills
development of the Filipino workforce.

‘The immediate passage of this bill is earnestly sought.

FRANCISCO JPSE F. MATUGAS IL
Surigao del Norte, First District
(Siargao Island)


Gap:
Republic of the Philippines

House of Representatives
Quezon City, Metro Manila

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NINETEENTH CONGRESS
First Regular Session

HOUSE BILL no. LO3E

epresentative FRANCISCO JOSE F. MATUGAS I

introduced by

AN ACT CREATING THE DEPARTMENT OF TECHNICAL EDUCATION
AND SKILLS DEVELOPMENT (“DTESD”), DEFINING ITS MANDATE,
POWERS AND FUNCTIONS, REPEALING FOR THE PURPOSE REPUBLIC
ACT NO. 7796, OTHERWISE KNOWN AS THE “TESDA ACT OF 1994” AND
APPROPRIATING FUNDS THEREFOR

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the “Department of
Technical Education and Skills Development (DTESD) Act.”

SEC. 2. Declaration of Policy. - 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 prioritics.

‘The State shall encourage active participation of various concerned sectors,
public as well as private technical-vocational institutions (“TVIs”), 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. Objectives. - The objectives of this Act are:

(a) Promote and strengthen the quality of technical education and skills
development programs to attain global competitiveness and inclusive growth;

(b) Focus technical education and skills development on meeting the

changing demands for quality manpower particularly in support of the development


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, enterprises, local government units (“LGUs”) and Civil Society
Organizations (“CSOs”) in technical education and skills development;

(e) | Develop the capacities of stakeholders to participate in the planning
and delivery of quality technical education and skills development systems;

(f) _ Inculeate desirable values through the development of moral character
with emphasis on work ethics, self-discipline, self-reliance and nationalism;

(@ Strongly support the implementation of the Philippine Qualification
Framework Act (R.A. 10968), the Ladderized Education Program (R.A. 10647), the
Dual Training System (R.A. 7686), and other laws, decrees and orders on education;

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

Gi) Help in the poverty alieviation efforts by providing the marginalized
and vulnerable segments of the country’s population access to income generating
technical education and skills development opportunities.

SEC. 3. Definition of Terms. — As used in this Act:

(a) Apprenticeship refers to the training within employment with
compulsory related theoretical instruction involving a contract between an
apprentice and an omployer on an approved apprenticeable occupation:

(b) Apprentice refers to a person undergoing training for an approved
apprenticeable occupation during an apprenticeship agreement:

(c) Apprenticeship Agreement 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) Apprenticeable Occupation refers to an occupation officially
endorsed by a tripartite body and approved for apprenticeship by the DTESD

created in this Act;

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(e) Dual Training System 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 aceredited dual system educational institution or 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 job 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) | Ladderized education 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

tem that will allow

creates a seamless and borderless education and training sy

transfers in terms of flexible entry and exit between technical-vocational and higher

education programs in the post-secondary school educational system;

(g) Leading Technology Center refers to a center 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) Learner refers to a person hired as a trainee in semi-skilled and other
industrial occupations which are non-apprenticeable. Learnership programs must
be approved by the DTESD created under this Act;

(i) 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;

6) Middle-Level Manpower refers to those: (a) 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 or diploma; or (b) skilled workers who have
become highly competent in their trade or craft as attested by industry;

(k) Philippine Qualifications Framework (PQF) refers to the national
policy 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
and workers of a certain country;

() Private Enterprise 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;

(m) Skill refers to the acquired and practiced ability to carry out a task or
job;

(n) Skills Development refers to 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:

(0) Technical Education 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 through the credit transfer system based on
learning 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;


(@ Trainee refers to persons who are participants in a vocational,
administrative or technical training program for the purpose of acquiring and
developing job-related skills;

() Trainer refers to persons who direct the practice of skills towards
immediate improvement in some task;

(s) Training refers to teaching or developing oneself or others, any skills
and knowledge that relate to specific useful competencies;

(t)  Trainer’s training 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

(uw) “User-Led” or “Market-Driven Strategy” refers to a strategy which
promotes strengthened linkages between educational or training institutions and
industry to ensure that appropriate skills and knowledge are provided by the
educational system.

SEC. 4. Creation and Mandate of the Department of Technical Education and
Skills Development. - There is hereby created a Department of Technical Education
and Skills Development, hereinafter referred to as DTESD.

The DTESD shall be the primary policy formulation, planning, coordinating,
implementing, regulating and administrative entity of the Government for technical
education and skills development.

SEC. 5. Powers and Functions. - The DTESD shall have the following powers
and functions:

(a) Formulate and recommend national policies and guidelines and
conduct in-depth studies on all policy areas and options that will promote technical
education and skills development in consultation with the relevant stakeholders;

(b) Assess, review, harmonize and coordinate all technical education and
skills development policies and programs to ensure overall consisteney and
implementation of national policies:

(c) Organize and constitute various standing committees, subsidiary
groups, or technical working groups for efficient integration, coordination and
monitoring of technical education and skills development programs at the national,

regional, and local levels;

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(d) Enter into, make, execute, perform and carry-out domestic and foreign
contracts subject to existing laws, rules and regulations;

(e) 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;

() Approve training standards and assessment packages as established
and conducted by private industries;

() Establish and administer a system of accreditation of both public and
private institutions;

(h) Establish, develop and support institutions trainers’ training and/or
programs;

(i) Exact reasonable fees and charges for such assessment and trainings
conducted and retain such earnings for its own use, subject to guidelines
promulgated by the DTESD;

(Allocate resources for the programs and projects it shall undertake
pursuant to the approved National Technical Education and Skills Development
Plan (NTESDP);

(k) Determine and approve systematic funding schemes such as the Levy
and Grant scheme for technical education and skills development purposes:

wo Create, when deemed necessary, an Advisory Committee which shall
provide expert and technical advice to the Secretary to be chosen from the academe
and the private sector. Provided, That in case the Advisory Committee is created,
the DTESD is hereby authorized to set aside a portion of its appropriations for its
operations;

(m)_ To review and recommend action to concerned authorities on proposed

technical assistance programs and grants-in-aid for technical education and skills

development, including those which may be entered into between the Government of

the Philippines and other nations, including international and foreign organizations,

both here and abroad:
(n)  Promulgate rules and regulations for the implementation of its policies
and related laws: and
(0) To perform such other functions as maybe needed to achieve its goals

and objectives to the fullest and as may be provided by this Act,


SEC. 6. Composition. - The DTESD shall be composed of the Office of the
Secretary, and the various bureaus, services, regional and provincial or district
offices. The Office of the Secretary shall house the Office of the DTESD Secretary,
the Offices of the Undersecretaries, the Offices of the Assistant Secretaries, and
their immediate support staff.

SEC. 7. Powers and Functions of the Secretary. - The Secretary shall have the
following functions:

(a) Provide executive direction and supervision over the entire operations
of the DTESD;

(b) Organize the DTESD for the efficient and effective performance of its
functions to achieve the objectives and mandate of this Act;

(c) Represent and effectively advocate technical education and skills
development (TESD) concerns in national and international bodies;

(d) Establish TESD policies and standards for the effective, efficient and
economical operation of the DTESD. in accordance with the programs of the

government;

(e) Mobilize resources and ensure prudent utilization of and access to
TESD investments and incentives according to national development plans and
priorities;

@é Designate and appoint officers and employees of the DTESD, excluding

rant Secretary, and Regional Directors, in accordance with

the Undersecretary, As:
the Civil Service Laws, rules and regulations;

(g) Undertake consultations with other members of the Cabinet and
officers of the government relating to TESD concerns;

(h) Advise the President on the promulgation of executive and
administrative orders and formulation of regulatory and legislative proposals on
matters pertaining to TESD;

(i) Promulgate rules, regulations and other issuances in carrying out the

DTESD’s mandate, objectives, policies, plans, programs and projects;

@ Direct and manage the implementation of DTESD’s programs and

services; and

(k) Perform such other functions as may be authorized.


SEC. 8. Undersecretaries and Assistan! Secretaries. - The Secretary shall be
assisted by four (4) Undersecretaries and four (4) Assistant Secretaries who shall be
appointed by the President upon recommendation of the Secretary: Provided, That
the two (2) Undersecretaries and the two (2) Assistant Secretaries shall be career
officers.

The Undersecretaries and Assistant Secretaries shall assist the Secretary in
the performance of his powers and funetions to achieve the objectives of this Act
The Undersecretaries and Assistant Secretaries shall be given specific areas of
responsibility.

SEC. 9. Qualifications and Appointments. - The person appointed as
Secretary, Undersecretary, or Assistant Secretary of the DTESD must he a citizen
and a resident of the Philippines, of good moral character, of proven integrity, and
with at least five (5) years relevant experience.

SEC. 10. Bureaus, Services, and Personnel. -'The bureaus under the Office of
the Secretary of DTESD shall be headed by an Executive Director to be appointed
the President upon the recommendation of the Secretary. The Executive

Directors shall have the rank and emoluments of Director IV.

SEC. 11. Regional Offices. - There shall be established, a Regional Office in
each region of the country to be headed by a Regional Director with the rank and
emoluments of Director TV and appointed by the President. The Regional Office
shall have the following functions:

(a) Direct implementation of TESD programs, projects and related
activities in the region:

(b) Develop and recommend TESD programs for local level
implementation within set policies;

(©) Deploy policies to stakeholders;

(d) | Manage TESD resources in the region:

(e) Plan and implement policy inputs:

(© Monitor and evaluate program implementation; and

(g) Perform such other functions as may be authorized.

SEC. 12. The Provincial or District Offices - The Provincial or District Office
shall be headed by a Provincial or District Director who shall have the rank and


emoluments of a Director III. The Provincial or District Office shall have the
following functions:

(a) Serve as secretariat to the Provincial Technical Education and Skills
Development Committee;

(b) Provide technical assistance to the local government units for effective
supervision, coordination and integration of all technical education and training
programs within their localities;

(© Review and recommend 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 DTESD shall
absorb and enhance existing Technical Education and Training Centers; and
establish a network of national, regional and local TESD centers for the purpose of
promoting TESD. This network shall include leading training technology centers,
training centers in vocational and technical schools, technical institutes, polytechnic

colleges. 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 provide
extension services in coordination with Regional Offices (ROs) or Provincial Offices
(POs);

(©) Undertake entrepreneurship development program;

(d) Conduct outreach programs in coordination with ROs/POs;

(e) Provide job linkages;

(f) Provide assessment and certification;

(g) Devise mechanisms for sustainable operation and development;

(h) Monitor and evaluate program implementation; and
(Perform such other functions as may be authorized.
SEC. 14. Structure and Staffing Pattern. - Subject to the approval of the DBM,

the DTESD, through the Secretary, shall determine its organizational structure,


staffing pattern, qualification standards, and placement of personnel. Personne) in
the DTESD shall be appointed in accordance with civil service laws, rules, and
regulations.

SEC. 15. Compliance with the Salary Standardization Law. - The
compensation and emoluments of the officials and employees of the DTESD shall be
in accordance with the salary standardization law and other applicable laws under
the national compensation and classification plan.

SEC. 16. Consultants and Technical Assistance, Publication and Research, -
In pursuit of its objectives, the DTESD is hereby authorized to set aside a portion of
its appropriations 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.

SEC. 17. Formulation of a Comprehensive Development Plan for Middle Level
Manpower. - The DTESD shall formulate a comprehensive development plan for
middle level manpower based on a national employment plan or policy 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 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 DTESD shail, through its offices, 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, relevance and social accountability of technical
education and training;

(©) Accelerate the employment generation effort of the government; and

(ad) 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

sistance from the government shall be required to formulate their respective

10


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 NTESDP.

SE
DTESD shall establish Technical Education and Skills Development Committees at

18. Technical Education and Skills Development Committees. - The

the regional and local levels to coordinate and monitor the delivery of all training
activities by the public and private sectors, and recommend policies, programs and
projects. 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. 19. Enterprise-Based Training Program. - 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.

SEC.
- There shall be national training standards to be established by DTESD-accredited

. Establishment and Administration of National Training Standards.

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 local 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
certification system shall be issued by the DTESD through its Regional and
Provincial Offices.

In consonance with the Philippine Qualifications Framework (PQF), the
DTESD shall closely collaborate with the Professional Regulation Commission
(“PRC”) with regard to the assessment of technicians, master craftsmen and

technologists.

abr


SEC. 21. Administration of Training Programs. - 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.

SEC. 22. Assistance of Employers 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. 23. Accreditation and Regulation of Technical Education and Skills
Development Programs. - All technical education and skills development programs
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 entity's
Jicense to operate issued by competent authorities.

SEC. 24. Coordination of All Technical Education and Skills Development
Schemes. — 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 TESD 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 shail 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.

SEC. 25. Enterprise-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 fulfilment of the DTESD’s objectives.

- The DTESD shail likewise

em for community based TESD opportunities

SEC, 26. Inclusive Training Opportunities.

design and implement a delivery
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. 27. Skills Compe

skills development in the country and with the view of participating in international

ions. - To promote quality technical education and

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

and for the country’s

effective and efficient conduct of National Skills competitio:
participation in internationals Skills competitions such as ASEAN and World Skills
Olympics

SEC. 28. The TESD Development Fund. - A Technical Education and Skills
Development Fund is hereby established. to be managed and administered by the
DTESD, the income of 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) Aone-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.

13


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. 29. 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 publie and private sector
and clientele participation in technical education and training activities along the
priorities identified by the National Development Plan.

SEC. 30. Placement Centers. - There shall be established a network of
placement centers or PLACERS in all the Provincial or District Offices to cater
specifically to the job placement of graduates of TESD institutions. These Centers
shall be financed and administered by the DTESD. In coordination with the
Department of Labor and Employment (DOLE), these centers shail be part of the
National Employment Service Network of the DOLE.

SEC. 31. Separation and Retirement from Service. - Employees who are
separated from service within six (6) months from the effectivity of this Act, as a
result of the abolition of TESDA or reorganization undor the provisions of this Act,
shall receive separation benefits to which they may be entitled under existing laws,
orders and issuances: Provided, 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. 32. Transitory Provision. — The Technical Education and Skills
Development Authority (TESDA) created under Republic Act No. 7796 is hereby
abolished and all personnel and resources therein shall be transferred to the
DTESD.

The TESDA Board created under Section 6 and 7 of R.A. 7796 is likewise

abolished.

14


The TESDA Secretariat created under Sections 10-15 of R.A. 7796 shall
comprise the initial manpower complement of the DTESD, Provided, 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
perform 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. 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 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 exi:

ing laws.

SEC. 33. Appropriations. - 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. 34. 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.

this Act shall be held unconstitutional or invalid, the remaining provisions not

Separability Clause. - If, for any reason, any portion or provision of

affected thereby shall continue to be in full force and effect.
SEC. 36. Repealing Clause, - All laws, decrees, executive orders, rules and
regulations, issuances of parts thereof inconsistent with the provisions of this Act
are hereby repealed or modified accordingly.
SEC. 37. Effectivity. - ‘This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,