FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
S. No. 
0 
Introduced by Senator JUAN MIGUEL F. ZUBlRl 
EXPLANATORY NOTE 
Schools today face enormous challenges especially with the ever growing 
demands for educational technology. The average public school in the Philippines is not 
designed to meet the demands of current and future technology. At present, the 
students in public schools have been left behind by their counterparts in the private 
schools. Based on preliminary report of Department of Education (DepEd), only 50% of 
the 4336 high schools nationwide have computer laboratories. But most of them need to 
be repaired or upgraded because after these computers have been delivered to 
schools, they have not been properly maintained. 
There is an overwhelming national need to improve the conditions of public 
schools, focusing on the rapid changes and developments in the field of Information 
Technology and emergence of knowledge-based society. To achieve this arduous task, 
the government needs to formulate a viable, comprehensive and sustainable long-term 
modernization plan for schools primarily at the elementary and secondary levels. 
The national government and schools cannot address the problem alone given 
their limited resources. These problems demand strong and sustained partnerships with 
other government units and private sectors such as foundations, private corporations 
and business groups. This bill seeks their participation for a more cost effective and 
innovative approach to financing school modernization programs. This bill also seeks to 
establish a 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. 
These modernization programs are essential if we are to create the schools our 
nation needs to compete in the 2Ist century. Modern educational facilities will result in a 
better-educated, more informed and more productive population. 
Thus, immediate passage of this bill is earnestly sought. 
- 
AN MIGUEL F. ZUBlRl 


1 
2 
3 
4 
S 
6 
7 
8 
9 
10 
11 
12 
13 
14 
1s 
16 
17 
18 
19 
20 
21 
FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
I 
Introduced by Senator JUAN MIGUEL F. ZUBlRl 
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 of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Title. - This Act shall be known as the “School Modernization and 
Innovation Act of 2007”. 
SECTION 2. Declaration offolicy. - It is hereby declared the policy of the State 
to promote a comprehensive and sustainable modernization program for all public 
elementary and secondary schools aimed at improving the effectiveness and efficiency 
of delivery of basic education. The State shall likewise take into account the regional 
and sectoral needs and conditions in developing a viable long-term modernization plan. 
The State shall also encourage the participation of the private sector and local 
government units in strengthening programs which provide relevant and adequate skills 
for public school children necessary for them to be global competitive. 
SECTION 3. Statement of Purpose. - This Act seeks to attain the following 
objectives: 
(a) To provide a broad framework for the institutionalization of a comprehensive, 
and sustainable modernization program for the public schools 
(b) To encourage the schools to become more innovative and resourceful in 
developing and implementing programs geared towards modernization 
(c) To develop mechanisms which will define the roles and responsibilities of the 
officials from the regional, division down to the school levels in the 
implementation of the school modernization programs 


1 
2 
3 
4 
5 
6 
I 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
21 
28 
29 
30 
31 
32 
33 
34 
35 
36 
31 
(d)To provide mechanisms on how the private sector can participate in the 
(e) To define a regional, division and school modernization and innovation plan 
program 
responsive to the needs of the students in the area. 
SECTION 4. lmplemenfing Agency. - The Department of Education, hereinafter 
referred to as the "Department", shall be the main implementing agency of the School 
Modernization and Innovation Act. The Secretary of Education shall be responsible of 
ensuring the smooth implementation of the modernization plan for schools. 
SECTION 5. Components. - The School Modernization and Innovation Program 
(a) Computerization of public elementary and high schools. At least one 
computer laboratory with a minimum of 10 computers shall be established in 
every public high school nationwide. The Science high schools in every 
region nationwide shall be given priority in the allocation of funds for the 
computerization. After more than 50% of the public high schools have been 
computerized, the public elementary schools shall start its own massive 
computerization program. 
shall consist of the following: 
(b) Upgrading of Libraries in public elementary and secondary schools. A well- 
equipped library shall be established in every public elementary and 
secondary high school. The library should be provided with at least 2 
computers which have Internet access to assist the students in their research 
work. 
(c) Promotion of an integrated distance-learning program. The distance learning 
program aims to enable the students from local and foreign private schools to 
share their knowledge and expertise in the areas of Science and Technology, 
Mathematics, English and Communication to students in public schools 
through modern system of instructional and communication technology. It 
may adopt an interactive system of instruction through television, modern 
satellite communication or cable system whichever is appropriate and feasible 
in the area. The students as well as teachers in public schools shall be 
provided with opportunities to avail of the latest trends and developments in 
the field of educational, science, technology and communication even from 
abroad through distance learning programs. 
(d) Upgrading of Science Laboratories. Each public elementary and high school 
will be provided with a well-equipped science laboratories with modern 
2 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
science equipment, which is essential in improving the competencies of the 
students in the area of science and technology. 
SECTION 6. Phased lmplernentafion of the Program. - The Department shall 
implement the program in phases to ensure continuity and sustainability of the projects. 
The phases of implementation will be determined according to the priorities set by the 
Department as well as the absorptive capacity of the schools. 
SECTION 7. Financing of the Program. The Department of Budget and 
Management shall allocate 10% of the total appropriations of the annual budget of 
DepEd for the financing of the School Modernization and Innovation Program. 
13 
14 
School and Regional Level. 
15 
16 
(a) National Modernization and Innovation Plan. The Secretary of Education in 
17 
consultation with regional directors and schools 
division superintendents 
18 
shall develop a comprehensive and sustainable modernization and innovation 
19 
plan for public elementary and secondary schools nationwide which will be 
20 
implemented within a period of 10 years. The plan shall be divided into short, 
21 
medium and long term period of implementation. It shall take into account the 
22 
rapid changes in the field of information technology, communication and 
23 
instructional delivery in various part of the world. It shall also identify sources 
24 
of funding both from local and international financial institutions as well as the 
25 
role of private sector, local government units and other members of the civil 
26 
society. It shall likewise define the national standards and framework, which 
27 
will be adopted in developing the individual plans. 
28 
(b) Regional Modernization and Innovation Plan. The Regional Director in 
29 
coordination with the Schools Division Superintendents shall formulate a 
30 
modernization framework consistent with national standards which will serve 
31 
as the basis for the plan taking into consideration the specific needs, and 
32 
requirements of the region. The regional plan shall highlight the peculiarities 
33 
and unique needs of the various schools within its jurisdiction. 
34 
35 
36 
37 
38 
SECTION 8. Formulation of School Modernization and Innovation Plan at 
(c) School Modernization and Innovation Plan. Each school shall formulate its 
own IO-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, 
3 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
21 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
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. 
SECTION 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 
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 (Pl5,000,000,000) as seed capital; 
2) The equivalent of twenty percent (20%) 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 
4) The equivalent of 20 %of any additional increase annually in the fees for 
travel tax; 
vehicle registration; 
5) The equivalent of 2% of the additional increase annually in revenue 
6) The equivalent of 10% of the sales of the lotto operations of the Philippine 
collections; 
Charity Sweepstakes Offices. 
The fund shall have a private portion to be raised from donations and gifts and 
other conveyances including materials, equipment, properties and services by 
gratuitous title. 
(b) The fund shall be distinct and separate from the schools regular allotment for 
maintenance and other operating expenses ( MOOE). 
(c) The Department shall be authorized to use the annual interest income of the 
Trust Fund provided that the expenditures will be used directly for the 
implementation of the modernization programs and not on the regular programs 
of the Department. Provided further that 50% of the entire annual income shall be 
retained in the Bureau of the Special Treasury. 
SECTION I O .  Management and Administration of the Fund. - The Fund shall 
be administered by the Department of Education. For sound and judicious management 
4 


1 
2 
3 
4 
S 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
2s 
26 
27 
28 
29 
30 
31 
32 
33 
34 
3s 
36 
37 
of the Fund, the Commission shall appoint a reputable government financial institution 
as portfolio manager of the Fund, subject to the following conditions. 
As administrator of the Fund, the Department shall prepare the necessary 
guidelines for its use, subject to the following conditions: 
(a) No part of the seed capital of the Fund, including earnings thereof shall be 
(b) Unless otherwise stipulated by the private donor, only earnings of private 
used to underwrite overhead expenses of the administration; 
contributions shall be used for administrative expenses; 
(c) The Department shall appoint and organize a separate staff that will be 
independent administratively from the Department. It shall also enjoy fiscal 
autonomy from the Department. 
SECTION 11. Mandatory Allocation. - Each local government unit is hereby 
directed to allocate at least 5% of their Special Education Fund to augment the 
appropriations for the financing of programs in line with the thrusts of the school 
modernization and innovation program. 
SECTION 12. Uses of the Fund. - The School Modernization and Innovation 
Fund shall be used to finance the following: 
(a) Projects, which have been approved and certified as priority by the National 
Executive Committee and Regional Modernization Committees created under 
Section 9 based on the guidelines and criteria formulated by the Department. 
(b) In service training of the teachers in the area of computer literacy and 
(c) Procurement of computer equipments including maintenance of computer 
laboratories, audio visual and multimedia facilities, and appropriate education 
technology softwares 
instructional communication technology. 
(d) Procurement of science equipments for science laboratories in schools 
SECTlON 13. Order of Priority in the allocation of funds. In order for the 
school to be given priority in the allocation of funds from the School Modernization 
Innovation Trust Fund, The following criteria should be met: 
(a)The programs, which will be funded, should be in line with the formulated 
regional and school modernization plans. 
(b) The school should have mobilized additional 40% counterpart funding from 
either the local government unit, private corporations, foundations, business 
groups or private individuals for every program which will be implemented. 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
(c) The programs have been approved by either the Regional Modernization 
Committee, and the National Executive Committee or both depending on the 
funding required. 
SECTION 14. Selection Process. - The individual schools nationwide are 
directed to develop project proposals in line with the modernization thrusts of their 
region and submit to their respective regional offices to determine its feasibility and 
contribution to the overall thrusts of school modernization in the country. 
A National Executive Modernization Committee shall be established. It shall be 
headed by the Secretary of the Department of Education, the Undersecretary for 
Programs and Directors of Elementary and Secondary Education and 2 representatives 
from the private sector. It shall be in-charge in evaluating projects with national 
application and coverage. 
A Regional Modernization Committee headed by the Regional Director and 
composed of 3 Division Superintendents and 2 Representatives from Parent Teachers 
Association in the region shall be established to evaluate all project proposals at the 
regional level. The Regional Modernization Committee shall have the authority to 
approve and recommend release of funding for projects with a funding requirement of 
P500,OOO.OO and less. 
However, the approved project proposals with a funding requirement of more 
than P500,OOO.OO will be forwarded to the National Executive Modernization Committee 
chaired by the Secretary of Department of Education or his duly designated 
representative for final review and approval. 
The Department shall promulgate guidelines for the selection of the project 
proposals, which will be funded by the School Modernization and Innovation Fund. 
SECTION 15. Private Sector Participation. - The members of the private sector 
are hereby encouraged to provide technical and/or financial support to the schools as 
they pursue their modernization plans. The private corporations, foundations, business 
groups or individuals who shall provide support to modernization programs shall be 
allowed to deduct from their gross income 100% of the expenses directly used to 
finance the implementation of the program in the schools. 
The schools which would be able to seek at least 40% counterpart funding 
support from private corporations, foundations, business groups individuals as well as 
local government in their respective local communities shall be given the priority the 
provision of direct grants and funding from the School Improvement and Innovation 
Fund particularly in programs which are mentioned in Section 9. 
6 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
SECTION 16. lmplemenfing Rules and Regulations. - The Secretary of 
Education shall promulgate the implementing rules and regulations within (90) ninety 
days after the approval of this Act. 
SECTION 17. Separability Clause. - If any portion or provision of this Act shall 
be declared unconstitutional, such declaration shall not invalidate other parts thereof, 
which shall remain in full force and effect. 
SECTION 18. Repealing Clause. - All laws and rules and regulations or parts 
thereof inconsistent with the provisions of this Act are hereby repealed or modified 
accordingly. 
SECTION 19. Effectivity. - This Act shall take effect fifteen (15) days following 
the publication in at least two (2) newspapers of general circulation. 
Approved, 
7